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FIRS Circular on Advance Payment of Company Taxes and the Issues Therein

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Federal Inland Revenue Service FIRS

By Moruff Adenekan

The Federal Inland Revenue Service (FIRS) recently issued a circular calling on corporate organisations to “commence payment of their annual returns earlier than their due dates, apart from their normal monthly obligations.”

According to that circular, dated 22 April, 2020 and titled Update on Palliative Measures to Cushion Effect of COVID-19 on Taxpayers, the federal tax collector sad that this appeal “has become necessary in order to ease some of the cashflow gaps being experienced by governments at this critical time.”

The circular went on to rationalise this call thus: “As is currently obvious, the economic downturn that resulted from the global shutdown occasioned largely by the COVID-19 pandemic has continued to put pressure on revenue generating agencies including the FIRS, thereby straining governments to bridge budget funding gaps.”

Muhammad Nami, the executive chairman of the agency, who personally signed the circular, said the directive is specifically addressed to the operators in select sectors, that, according to him, are experiencing a boom as a result of the effects of the pandemic.

According to him, “we wish to acknowledge that some sectors such as Telcos, financial institutions, e-commerce, supermarkets, manufacturers/processors of certain products etc are experiencing a boom due to the increased transactions as a result of the lockdown or even despite the pandemic.”

Knowing the way our government and its agencies work, we know that it is just a matter of time before this appeal, according to the circular, becomes a directive, order or an edict that will seek to criminalise and punish any corporate body that fails to comply with it. But before we even get there, let us critically examine this appeal by the FIRS.

To begin with, these corporate bodies, as is even acknowledged by the circular, already have their monthly filings that they do to the FIRS, and this is not affected by the COVID-19 pandemic realities. What the agency is saying is that these monthly returns are no longer enough for it and so needs some more.

One of the issues with this circular is how can the FIRS enforce this so-called appeal? The law has already stipulated the time that these corporate bodies must do their filings and any effort put at trying to coax these corporates, even if the agency enacts an edict to that end, would surely be resisted by these companies, and I see a long tortuous litigation as a result.

Again, the circular displayed some kind of ignorance on the interconnectivity of sectors in an economy. When the economy is booming, all sectors experience a boom and when it is at a standstill or semi-standstill, hardly does any sector, formal or informal, get exonerated.

All sectors and players in this economy feel the gloom occasioned by the COVID-19 lockdown so, one may ask, where is the increased earnings that the FIRS is talking about, coming from?

Let us take the financial sector for instance. The banks may be doing more transactions – ATMs, transfers, POS payments etc – now but to what amount? People, at lockdown, are making more online payments but they are mostly for food, groceries and other essentials, which are mostly minute purchases. Is FIRS telling us that there are people still buying and paying for lands and cars or building houses, or taking chieftaincy titles today?

If you take a look outside your window, you may have noticed an increase in traffic of delivery men on our roads during this lockdown and this may make you think that the e-commerce companies are making a killing this period.

After reading this piece, take another look at the delivery men and you would see that they are mostly delivering food, groceries and other essentials.

The fact is that e-commerce is much more than groceries and this category of trade does not make up to five percent of the e-commerce players revenue.

Even the groceries and other essentials are not even exclusive on the e-commerce portals as markets, supermarkets and pharmacies are open in all neighbourhoods and take a substantial part of the food and groceries business.

Suppliers, most of whom do not have exemption letters, find it impossible to move even groceries and food items to the e-commerce warehouses as security agents do not let them move around.

The e-commerce operators and their logistics partners are not even allowed to move around things like electronics, gadgets and other non-essential goods that used to make up the bulk of their earnings.

How can these companies even compute their taxes in advance since the company tax is determined by the aggregate income less all costs for the year? Are they supposed to guestimate these figures to arrive at an amount payable to FIRS? What if their guestimate short-changes them? We all know that it is not the speed that the FIRS come for the balance in case of an underpayment that it uses in refunding an excess.

Let us even examine the reason for this “appeal” as canvassed by the FIRS “to ease some of the cash flow gaps being experienced by governments.”

The circular admits that the governments are experiencing the cash crunch effects of the lockdown. The question here is why do the governments look towards the companies in dealing with cash flow gaps instead of looking inwards on how to cut governance costs?

How can the government allow our elected public officers to be living in obscene wealth, moving about in convoys of expensive cars, appointing hundreds of aides, throwing expensive birthday parties in Dubai and London, and earning millions in allowances at a time that the global and national economies are experiencing a downturn?

At a time, Nigerian government is appealing for support in the fight against the COVID-19 pandemic, the same government, for example, is importing the 2020 model of Toyota Camry for each of the 360 members of the House of Representatives.

Instead of cutting the cost of governance, the government is sending the FIRS to snuff out the little air that is sustaining the companies that are already gasping for breath.

It is a pity that while governments, the world over, are looking for ways of cushioning the effects of COVID-19 pandemic for corporates, the Nigerian government, through its agencies, are adding to the burden of these companies.

The government should better ask the Federal Inland Revenue Service to rescind its appeal for advance payment of the company tax, and look for ways to cut the cost of governance in its quest to bridge the prevailing budget funding gaps.

Moruff Adenekan is a public relations practitioner based in Lagos

Adedapo Adesanya is a journalist, polymath, and connoisseur of everything art. When he is not writing, he has his nose buried in one of the many books or articles he has bookmarked or simply listening to good music with a bottle of beer or wine. He supports the greatest club in the world, Manchester United F.C.

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Building 234 Solutions: A Response to Everyday Workforce Challenges

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Owoloye Emmanuel 234 Solutions

By Owoloye Emmanuel

Every business starts with a problem. For us, that problem was hiding in plain sight.

Across organisations, we kept seeing HR professionals, payroll teams, and business leaders spend significant time navigating processes that should be simpler. Employee records sat across multiple systems, payroll processes required manual intervention, and routine workforce tasks often became more complicated than they needed to be.

As businesses grow, workforce operations naturally become more complex. Yet many organisations still rely on disconnected tools and workflows that create unnecessary friction for both employers and employees.

The consequence is more than operational inefficiency. HR teams spend valuable time managing systems instead of supporting people. Business leaders struggle to access timely workforce insights, while employees experience delays in processes that should be seamless.

These weren’t isolated challenges. They were recurring realities across workplaces, regardless of industry or size.

That observation led us to a simple question: what if workforce management could be easier?

What if HR, payroll, and workforce operations could work together within a single, connected experience?

That question became the foundation for 234 Solutions.

We are building 234 Solutions with a clear belief that workplace technology should reduce complexity, not add to it. Our goal is to help organisations spend less time navigating processes and more time focusing on productivity, growth, and people.

As we prepare for launch, our focus remains simple: building practical solutions for real workplace challenges and helping organisations create better experiences for the people who power them every day.

Owoloye Emmanuel is the founder of 234 Solutions

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The Role of TV in Preserving African Stories and Identity

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Preserving African Stories

Scroll through social media today, and you will notice something interesting: everyone is either reacting to a series, quoting a movie line, or debating a character as though they personally know them. Beneath the memes and binge-watch culture, however, lies something deeper. Television remains one of the most powerful tools shaping how Africans see themselves, remember their history, and tell their own stories. In a continent as diverse and expressive as Africa, that matters more than ever.

TV as a Cultural Archive, Not Just Entertainment

Long before streaming algorithms began shaping our viewing habits, television was already preserving African identity. From Nollywood dramas that capture the rhythm of everyday Lagos life to documentaries exploring Maasai traditions and Ghanaian folklore, TV has served as a living archive of the continent’s stories.

It preserves more than entertainment; it preserves language, culture, humour, values, and shared experiences. Unlike fleeting social media content, television allows stories to unfold with depth, exploring the realities of family, tradition, ambition, and modern African life without reducing them to stereotypes. That is the power of TV: preserving not just stories, but perspective.

Why Representation on TV Still Matters

There is a subtle but important truth: if people do not see themselves on screen, they may begin to believe their stories are not worth telling. This is why African TV content is more than entertainment; it is affirmation.

Seeing a character who speaks like you, struggles like you, or celebrates like your community does something powerful. It validates identity and challenges outdated narratives that have historically defined Africa through external lenses.

This is where MultiChoice Group, through platforms such as DStv and GOtv, plays an important role. They do not simply broadcast content; they help distribute cultural memory at scale.

GOtv, DStv, and the Everyday African Viewer

Think about a typical evening in many African homes: the TV is on in the background, someone is laughing at a comedy show, another person is watching a local series, and someone else is catching up on the news. That shared viewing experience remains very real.

Through platforms such as DStv and GOtv, African households are exposed to a blend of local storytelling and global content. More importantly, they have helped amplify African-produced content by bringing Nollywood films, African reality shows, talk shows, and documentaries into mainstream rotation.

It is not just about access. It is about visibility.

A young filmmaker in Lagos today is more likely to believe their story matters because they have seen similar stories broadcast widely. A child in Accra grows up hearing familiar accents and seeing environments that look like their own on screen, not as exceptions, but as the norm.

TV Is Also Shaping Modern African Identity

African identity is not static; it is evolving. Television reflects that evolution in real time.

Today, audiences see:

  • Young Africans balancing tradition and modern dating culture

  • Stories tackling mental health in African households

  • Fashion and music influences spreading through TV series

  • Political satire shaping public conversation

Conversations that were once confined to homes are now being explored on screen, giving audiences the language to discuss issues that were previously unspoken.

In many ways, television is doing what oral tradition has always done: passing stories, values, humour, warnings, and history from one generation to the next. The difference is that today’s griots are writers, directors, and broadcasters.

The Future: From Watching to Owning Our Narratives

The next stage of African storytelling is not just about being seen; it is about ownership.

As more African creators produce content and platforms continue to invest in regional storytelling, television becomes more than a mirror. It becomes a tool for shaping how Africa is represented to itself and to the world.

While streaming continues to grow, television, particularly accessible platforms such as GOtv, remains one of the most effective ways to reach everyday audiences across different income levels and regions. After all, storytelling only matters if people can access it.

African stories are not new. They have always existed in families, on streets, in markets, in history books, and through oral traditions. What television has done, and continues to do, is give those stories a stage wide enough for millions to experience them at once.

The next time you watch a local series or documentary on DStv or GOtv, remember that you are not just being entertained. You are participating in the preservation of African identity itself.

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The Future of AI in Nigerian SMEs: Overcoming Barriers to Implementation

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Kehinde Ogundare 2025

By Kehinde Ogundare

Ask a tech entrepreneur in San Francisco what AI means for their business, and they are likely to talk about competitive advantage, product differentiation, and scale. Ask a small business owner in Kano or Onitsha the same question, and the conversation shifts entirely.

For many Nigerian SMEs, the priority is keeping the lights on, managing costs, and finding sustainable ways to grow in a challenging economic environment. This difference in perspective explains why the global AI conversation, often shaped by assumptions about stable infrastructure, deep capital, and abundant technical talent, frequently fails to address the realities facing Nigerian SMEs.

This matters because Nigerian SMEs are not a peripheral concern. In 2024 alone, MSMEs contributed 46.32% to Nigeria’s GDP, accounting for 96.9% of businesses and 87.9% of employment. These businesses are the backbone of the Nigerian economy, and if AI is going to mean anything for Nigeria’s development, it has to work for them in the daily conditions they actually operate in.

However, research drawing on empirical data from 144 Nigerian SMEs found that inadequate infrastructure, low digital literacy, skills shortages, and regulatory gaps are collectively preventing them from meaningfully engaging with AI. Awareness of AI is high and growing. What is missing is a clear and honest conversation about what adoption actually requires in this specific context. The barriers are real, but none of them are insurmountable. The question is whether the tools, pricing models, and support structures being offered to Nigerian SMEs are designed with those barriers in mind, or whether they have been built for another market entirely.

Subscription models making AI affordable for small businesses

When most small business owners hear “AI,” they imagine expensive software, specialist consultants, and a hefty upfront bill.

That assumption is not entirely wrong, but it describes a particular way of buying technology, not AI itself. The shift that makes AI genuinely accessible at the SME level is the move away from large, one-time capital purchases towards tools that charge a predictable monthly subscription. Businesses can pay for what they use, scale back when necessary, and avoid the debt that a major technology investment can create.

The deeper opportunity here is consolidation. Many SMEs are already spending money across multiple disconnected tools—one for invoicing, another for customer records, another for stock tracking—none of which talk to each other. An integrated platform that handles several of these functions together, with AI built in, can actually cost less than the sum of those separate subscriptions while giving business owners a clearer picture of their operations.

With margins already under pressure, any technology a business adopts needs to visibly show an increase in productivity or bottom line. Subscription-based, integrated platforms, priced transparently and honestly, are the model that best fits this reality.

Infrastructure challenges demand a mobile-first approach

No conversation about technology in Nigeria is complete without confronting the infrastructure problem, and AI is no exception. Nigeria continues to face major infrastructure barriers, including limited broadband access, unreliable power supply, and high data costs, all of which constrain deeper AI adoption. These are structural features of the operating environment that any sensible technology strategy must account for today.

The electricity situation alone is significant. The World Bank estimates that the lack of stable electricity costs Nigeria’s economy approximately $26.2 billion annually, equivalent to about 2% of GDP, forcing many businesses to run on expensive diesel generators. That cost ripples outward.

In practical terms, AI tools built for Nigeria cannot assume a stable broadband connection or a computer that is always powered on. The tools that will actually get used are the ones that work on a smartphone, consume minimal data, and can function offline when connectivity drops, syncing back up when it returns. The mobile phone is already how many Nigerian SME owners run their businesses. AI that meets them there, rather than demanding infrastructure they do not have, is AI that has a genuine future in this market.

The direction is clear: build capability from within, using tools that make that possible. Recent AI performance research reveals that 64% of African workers are already actively using AI at work, signalling massive grassroots readiness and driving forward-thinking organisations across Nigeria, Kenya, and South Africa to aggressively prioritise internal upskilling frameworks to bridge the talent gap.

As the policy groundwork is being laid, the commercial ecosystem is beginning to respond. What remains is a clear-eyed acceptance that AI tools built for this market need to look different from those built for markets with different realities. Low cost, low bandwidth, and usability for non-technical people are not modest ambitions; they are the actual requirements. Build for those realities, and AI has a real future in Nigeria’s SME economy.

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