The Chairman of the Federal Inland Revenue Service (FIRS), Zacch Adedeji, has provided assurances that the agency will not introduce additional taxes in Nigeria.

Adedeji disclosed ongoing efforts to bolster the revenue base through strategic measures. He disclosed this during a visit by the management team of Guinness Nigeria Plc, led by Chief Executive Officer Adebayo Alli, to the Revenue House in Abuja on Wednesday.

He reiterated FIRS’s commitment to aligning with the directives set forth by the President, particularly in maintaining a single-digit tax system.

A statement issued on the visit by Dare Adekanmbi, the Special Adviser on Media to the FIRS chairman, quoted Adedeji as follows:

“The President gave a directive that he wants a single digit tax in the country, meaning that the maximum number of taxes we will have after the work of the Presidential Committee on Fiscal Policy and Tax Reforms will be nine taxes,” he said.

“For us at FIRS, we have responded to that directive. We want to grow the pie such that even if we are taking the same percentage of the bigger pie, the result will be huge.”

Adedeji highlighted FIRS’s focus on expanding the revenue pie rather than imposing additional tax burdens. He expressed confidence in enhancing revenue collection without resorting to new taxes or tax hikes.

He expressed optimism that by God’s grace, “we will not introduce additional taxes nor increase any form of tax,”

“We are only determined to increase the pie. We have restructured our operations at FIRS in such a way that we are now effectively carrying out our duty of assessing, collecting and accounting for taxes. We used to have functional types of taxes, but we have identified that the only customers we have are the taxpayers,” he said.

Furthermore, Adedeji noted FIRS’s efforts to enhance customer relations through operational restructuring. He emphasized the importance of categorizing taxpayers into large, medium, and small businesses based on turnover to streamline tax assessment and collection processes. This approach aims to create a conducive environment for taxpayers while ensuring effective tax administration.

Additionally, he highlighted government initiatives aimed at stimulating economic growth, including the consumer credit scheme and the introduction of a single-window platform for logistics at ports. These initiatives seek to boost the purchasing power of Nigerians, enhance productivity, and facilitate smoother business operations, benefiting companies like Guinness.

Late last year, in a move to eliminate multiple taxation, the Presidential Committee on Fiscal Policy and Tax Reforms proposed the stoppage of 190 taxes choking businesses in the country.

The Chairman of the committee, Mr Taiwo Oyedele, while presenting his report to the President said the panel suggested the merger of over 200 taxes being paid by Nigerian businesses into 10.

While the Organized Private Sector has thrown its support behind the federal government’s move to curtail multiple taxation, it expressed concern about states. Nigerian states hold the highest stake when it comes to multiple taxation and have shown no sign of willingness to curtail it.

The tax reform committee did not announce how it plans to get the states to stop increasing their number of taxes.

The opening of the Dangote oil refinery is set not only to reshape the African energy industry but also to shake up European refineries, bolstering Nigeria’s ambitious energy independence project.

Representing a colossal investment of $20 billion, the refinery, which commenced operations in January, boasts a staggering capacity to refine up to 650,000 barrels per day (bpd). This monumental project marks a pivotal moment for Nigeria, Africa’s most populous nation and top oil producer, long hampered by a lack of refining capacity that forced it to rely heavily on fuel imports.

Reuters reports that analysts are predicting that the commencement of operations at the Dangote refinery could signal the demise of the decades-old gasoline trade from Europe to Africa, valued at a staggering $17 billion annually. Quoting data from Kpler, the report notes that approximately one-third of Europe’s average gasoline exports in 2023, totaling 1.33 million bpd, found their way to West Africa, with Nigeria emerging as a primary destination.

Eugene Lindell, head of refined products at consultancy FGE, notes the vulnerability of European refineries in the face of intensified competition.

“The loss of the West African market will be problematic for a small set of refineries that do not have the kit to upgrade their gasoline to European and U.S. specification,” he said.

Andon Pavlov, an analyst at Kpler, goes further, estimating that as much as 300-400,000 bpd of European refining capacity is now at risk of closure due to the impending gasoline oversupply. Refineries such as the UK’s Grangemouth and Germany’s Wesseling are among those most vulnerable to premature shutdowns.

The challenges facing the European refining sector extend beyond competition from burgeoning African refineries. Since 2009, around 30 refineries in Europe have shuttered their operations, grappling with competition from newer, more advanced plants in the Middle East and Asia. The COVID-19 pandemic further exacerbated these challenges, leading to demand destruction and additional closures.

According to data from the consultancy IIR, since 2016, Europe has experienced a loss of 1.52 million barrels per day (bpd) in operational crude distillation capacity. Currently, Europe’s operational crude distillation capacity stands at 13.93 million bpd. This decline highlights shifts and changes within the European crude oil refining industry over the specified timeframe.

Additionally, the transition towards renewable energy sources is placing further pressure on fossil fuel refineries. Companies like Petroineos and Shell have cited this transition as a driving force behind their decisions to shutter plants like Grangemouth and Wesseling.

A European refinery executive who spoke to Reuters anonymously said that refineries near the coast, which are geared towards exports, are more at risk, while inland refineries are less vulnerable as they rely on local demand.

“The changes won’t happen overnight, but they could ultimately lead to closures of refineries and their conversion to storage terminals,” he added, referring to the challenging market environment.

Despite the impending challenges, the Dangote refinery’s emergence as a regional powerhouse in gasoline production is poised to coincide with the implementation of new environmental regulations in Northwest Europe. These regulations are expected to compel refineries to either adapt to stringent standards or face closure, further complicating the European refining industry.

Amidst these seismic shifts, West Africa’s role as a primary outlet for gasoline that fails to meet European standards is set to undergo a fundamental transformation.

European refineries face a challenge in meeting regional diesel demand while producing an excess of gasoline, relying on exports to balance supply. In contrast, the Dangote refinery, backed by Africa’s wealthiest individual, Aliko Dangote, was designed to address this disparity by focusing on gasoline production. Capable of producing up to 53 million liters of gasoline per day, equivalent to about 300,000 barrels per day (bpd), the refinery aims to meet local gasoline needs and potentially reduce Africa’s reliance on gasoline imports.

First, Abia State does not have internal funds to build any stadium. But Abians have the capabilities to work with investors to build a stadium. Our aspiration is to have a FIFA-level stadium in our state, and I am happy that our leadership has started some basic things.

This makes sense since Abia has Nigeria’s most successful football club with a brand reputation that is unmatched among young people. If we provide Enyimba FC with a home, we can build a new vista in Abia’s economy. Yes, sports is business, and Abia wants to make sports business, not just an entertainment vector. We have Abia Warriors there.

Papillo, Nwankwo Kanu, one of Africa’s finest strikers is handling the affairs of the club, and will continue to ensure that Enyimba remains the best. Sir Obilor Ananaba, Abia’s commissioner for Sports, is coordinating the sports infrastructure. His Excellency, Dr Alex Otti, is the grand strategist, making sure Abians get the dividends of democracy.

Some initial phases for the 35,000 FIFA-approved stadium have commenced in Aba, Abia State, with soil tests, environmental impact assessments, etc.  The next phase is YOU – the investor; we want you to come. We’re also looking for a sports TV channel investors because if we have to make sports a business, Abia Sports needs to be on the air.

Secondary Technical School Ovim will play a game in the Governor’s Secondary School Unity Games; if there is a TV channel, I would have asked the principal/the state to allow me call the game. Imagine the fun if Sausa, ex-football strategist of STS Ovim, is in the booth, calling the match.

Let us know the depth of your imaginations, and Abia will explain how we’re the best place in Africa to make those happen. #InvestInAbia

Ndubuisi Ekekwe

Member, Abia State Global Economic Advisory Council

Co-Chair, Abia State Economic Transformation Council

2021 Most Outstanding Abia Professional in the Diaspora

2021 Abia Ambassador

First, Abia State does not have internal funds to build any stadium. But Abians have the capabilities to work with investors to build a stadium. Our inspiration is to have a FIFA-level stadium in our state, and I am happy that our leadership has started some basic things.

This… pic.twitter.com/gypVLkLcOL

— Ndubuisi Ekekwe (@ndekekwe) March 28, 2024

Comment on Feed

Comment: “As always only the ultra-wealthy gain from [constructing a stadium via PPP in Aba]. How does this improve the lives and living conditions of the poor and middle-class Abians? Please enlighten me.”

My Response: You keep missing the links because you see things from a pessimistic view. If I ask you about the largest companies in Madrid or Barcelona, you may have the answers, but you do not expect that in Africa.  It is unfortunate that people cannot see a future where Enyimba FC could become one of the largest companies in Aba just like Real Madrid is a top-10 company in Madrid.  

Our current limitations must not cloud our ability to think. Abia has a literacy rate of 96% (federal data), and it has one of the lowest poverty rates in the world (UNESCO data), so, if we take those, some basic things have been done. What we need now is acceleration. And upon this stadium, we can have a unicorn with  mini companies supporting it.