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Nigeria generates N600.1 Billion from VAT in Q2 2022

By
Ojukwu Emmanuel
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0
FIRS signpost

A report from the National Bureau of Statistics (NBS), reveals that Nigeria generated N600.15 billion as value-added tax (VAT) in the second quarter of 2022. 

This figure represents a 1.96 percent increase from the N588.96 billion generated in the first quarter of 2022.

According to the report , local payments of VAT amounted to N359.12 billion in Q2 2022, on a quarter-to-quarter basis, while electricity, gas, steam, and air conditioning supply, recorded the highest growth rate with 116.47 percent.

On the other hand, activities of extraterritorial organizations and bodies had the lowest growth rate with 42.39 percent.

The report reads;

“On the aggregate, value-added tax (VAT) for Q2 2022 was reported at N600.15 billion, showing a growth rate of 1.96 percent on a quarter-on-quarter basis from N588.59 billion in Q1 2022.

“Local payments recorded were N359.12 billion, while foreign VAT payment contributed N111.13 billion in Q2 2022. On a quarter-on-quarter basis, electricity, gas, steam and air conditioning supply recorded the highest growth rate with 116.47 percent, followed by accommodation and food service activities with 42.44 percent”

“On the other hand, activities of extraterritorial organizations and bodies had the lowest growth rate with 42.39 percent.

“This was followed by activities of households as employers, undifferentiated goods- and services-producing activities of households for own use with 36.57 percent.

“In terms of sectoral contributions, the top three largest contributors in Q2 2022 were manufacturing with 33.08 percent, information and communication with 18.98 percent, and mining and quarrying with 10.60 percent.

“On the other hand, activities of households as employers, undifferentiated goods- and services-producing activities of households for own use recorded the least share with 0.03 percent.

“This was followed by activities of extraterritorial organizations and bodies with 0.05 percent; and water supply, sewerage, waste management and remediation activities with 0.13 percent.”

The main VAT rate in Nigeria is 7.5%, which was raised from 5% on 1st February 2020.

 

Nigeria Wants a Growth Maker and Leader As President To Scale Abundance

By
Ndubuisi Ekekwe
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1

The family invited me to speak at Musa Yar’Adua Center in Abuja shortly after Buhari took over. I had made a case that Nigeria must return to Yar’Adua’s budgetary brilliance. I had called his budgets the finest in Nigeria since 1999. (Sani Abacha was a dictator but he crafted really good budgets; I recalled how students in FUTO jubilated in their dorms after his 1997 budget. His disciplined approach kept Naira stable for years.)

Obi, Atiku and Tinubu must revisit Yar’Adua’s short era. His budgets were evidently Keynesian with a sharp focus on how aggregate demand could influence economic output; sure, he needed to do that since he led the nation during a global recession. And that is the beauty of Yar’Adua because during the Great Recession, he grew the economy! Between 2008 and 2010, his GDP average growth was 7.98% (OBJ, GEJ, and Buhari* averaged 6.95%, 4.8% and 0.81% respectively). Nigeria did not experience the Great Recession except in the stock market. People, in the main markets, from Onitsha to Kano to Ife to Uyo the economy was okay.

Another component was also his vision for building new centers of growth. His budget for the Niger Delta was so big that when he died, the next administration had to cut it! Reading his budget, he believed that the Niger Delta, if well invested in, could unlock more growth for the nation, well ahead of what oil & gas was providing.

When a man can grow an economy during recession this big, a nation cannot allow his legacy to be forgotten. Some of the recent budgets we have seen are paddles of ephemeral political hacks. I am hoping that Obi, Atiku and Tinubu will give us economic visions for the future that all Nigerians will unite for.

Indeed, even in a global recession, Nigeria can keep growing because we’re very far from the optimal state. No excuses; we want growth. I hold seven degrees and very privileged to understand many things, from finance to engineering to management: I will be looking at the manifestoes as the campaign season begins. We will provide guidance here, with facts. I challenge everyone to vote for #growth and #competence. 

Thinking Alternative Energy Amidst Fuel Crisis: What is Nigeria Doing to Harness Africa’s Highest Solar Energy Potential Worldwide?

By
Tiamiyu Ismail
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0

Strongly driven by the climate change impacts on the global economy, the alternative energy campaigns aspire toward reaching a major turning point in achieving the sustainable development goals, especially in developing countries of the world where the impacts of Climate change have been estimated to be most felt. In Africa, nearly 80 percent of the population in rural regions that depend on farming and agricultural activities is most vulnerable to the impacts of Climate Change.

Besides the Climate change impact which is often thought of as a consequence of the excessive use of or overdependence on fossil fuels, the ongoing Russia-Ukraine war which has significantly disrupted the global supply chain for energy and gas now heralds a sober reflection and reconsideration of alternative energy investment in many world countries that have had their share of pains from the gas and energy shortfall due to the war whose end is hitherto unknown.

For example, Nigeria which is the highest oil producing country in Africa and the sixth largest in the world within the Organization of Petroleum Exporting Countries (OPEC) has experienced series of economic hardships lately due to external and internal factors impacting the oil sector and mainstay of the nation’s economy. While the demand and price of crude oil produced in the country have been seriously decimated at the international market due to the Russia-Ukraine war, the incidence of crude oil theft internally have skyrocketed, with the country losing about 500,000 barrels per day.

The consequent proposal by the Federal Government for the removal of fuel subsidy in the country effective from 2023 has not really gone down well with majority of the citizens who believe fuel subsidy removal will not only increase the cost of production for the industries but will also increase the cost of living for the average citizens.

The big question therefore is; what is the nation doing to harness its alternative energy resources? Will the fuel subsidy, if eventually removed, be the opportunity cost for improved solar energy services in the country?

According to data from the Global Solar Atlas for The World Bank as analyzed by Statista, Africa has the highest potential for solar energy worldwide with an estimated average capacity of 4.51kwh/kwp-day compared to 4.48 and 4.37 estimated for Central and South America and North America respectively.

The following chart depicts the average long-term practical potential solar energy output by global region:

It is reported that roughly 20 percent of the world’s population lives in 70 countries which possess excellent conditions for solar power, that is, a long-term output that exceeds 4.5kwh/kwp-day. On world region basis, only the countries in Africa are said to collectively average this threshold.

However, despite presenting unique opportunities to provide affordable, reliable and sustainable electricity that could service a large share of humanity which will improve economic activities and quality of lives within the region, Africa’s solar energy potential has remained largely untapped, especially in the less developed countries of the continent.

As Naira Fades, Nigeria Needs A New Type of Leader

By
Ndubuisi Ekekwe
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2

Naira moves to the 11th of all the worst performing currencies in the world (19 of them). Now, we are in the companies of Zimbabwe, Syria, Sudan, Iran, and Venezuela. Even Ukraine is doing better despite the missiles flying around its cities. People, no matter how you pray, talk or sing, can we for once look for competent people to run Nigeria, from local to federal levels, and leave our tribes and religions for once out of the equation? 

One of my finest moments as a young graduate was joining a Lagos bank IT Group in the morning and being instructed to go home – and return in the evening for a night shift. During that night shift, my supervisor (just two years ahead of me in the graduation year) was amazing.  I watched as Uche did things and by 6.30am, he said “Nd, the system is ready for all branches.” That was an accomplishment because if he had tripped, the bank would not open for customers the next day!

As we rotated, from Barth, to Blaise, to Nago, I saw young people holding responsibilities. The Software Automation Unit (SAU) is the heart of the bank; the most classified unit in any bank because you have access to the jewel of the bank.

Those were Nigerians – disciplined, competent and holding enormous responsibilities. As Nigeria continues to fade with the Naira in the miry clay, we need a leader who can motivate, inspire and connect a generation of Nigerians to #believe.

Yes, a person who can engineer Nigeria into rebirth and restoration to offer a prosperous nation that is colorful, fluidic, vibrant and open for change. Yes, a person of immense intelligence, competence, pragmatism, and unimpeachable. A person of integrity, broad knowledge, enormous vision and solid experience; one who can stimulate more vibrancy in the private sector and move the public sector out of its stasis. We need a leader!

Comment on Feed

Comment 1: Sir, I always see all our politicians as same people , who promise heaven and earth, speaks all the vocabularies in the world and once elected forgets the Task ahead and began to play a Blame game instead of focusing on improving the livelihood of the citizenry and campaign promises . May God help us

My Response: “Sir, I always see all our politicians as same people” You may be wrong. Under Obasanjo, there were jobs. Banks used big halls to hire. Under OBJ, many relocated from US back to Nigeria. Under OBJ, Nigeria was not on denial; he fought insecurity finishing bad guys. Under Jonathan, Nigeria recorded the highest per capital income in record. Yes, Nigeria was on ascension. Check this plot, the curve changed in 2015 after rising for years. The politicians are not the same!

Comment 2: “a person who can engineer Nigeria into rebith and restoration…Ndubuisi Ekekwe no one man can do that. It will be a collective efforts and determination.

My Response: Tell that to South Korea. Tell that to Rwanda. Even Nigeria was on ascension. Under Obasanjo, many relocated back to Nigeria. You underestimate the power of that word “leader”. Everyone has to contribute but someone has to LEAD. That is what it is all about.

Comment 3: “Woe unto a nation whose king is a child”
I was discussing with someone on the need for good leadership. The person told me that Nigerians need to change because the leader can’t do it alone. While I agree that Nigerians need to change, the change starts from the top. Good body cannot have a rotten head. A nation is a reflection of its leader (President)

Nigerians don’t hold leaders accountable and we mostly resort to blaming fellow victims. We have seen them as problem children and we should just leave them alone. Unfortunately, leaving them alone is causing destruction. Nigeria needs a leader with a vision and the capacity to effect change.
Nigeria shall rise again!

 

Naira Ranks 11th in the List of 19 Worst Performing Currencies in the World for 2022

Naira Ranks 11th in the List of 19 Worst Performing Currencies in the World for 2022

By
Ojukwu Emmanuel
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0
Nigerian naira banknotes are seen in this picture illustration, September 10, 2018. REUTERS/Afolabi Sotunde/File Photo

The President Buhari administration has been described as incompetent, as the nation’s currency, the Naira, is currently a mess, among several other problems.

According to Hanke’s Currency watchlist, compiled by Steve Hanke and John Hopkins University, it revealed the Naira ranked as the 11th worst-performing currency in the list of 19 worst performing currencies in the world and the fourth worst in Africa.

According to the data, the Naira had lost 48.87% of its value against the US dollar as of September 2, 2022, compared to its value in January 2020.

Steve H. Hanke a professor of Applied Economics expressed his displeasure about how the Nigerian government is handling the Naira.

He said;

“In this week’s Hanke’s #CurrencyWatchlist, Nigeria takes the 11th place. The naira has depreciated against the USD by 48.87% since Jan 2020. With Sleepy Buhari at the helm, the Nigerian naira is tanking.”

The exchange rate between the naira and the US dollar has plummeted from N565/$1 to N705/$1, representing a N140/$ loss year to date in the black market.

Amid double-digit inflation, Nigeria’s foreign reserves are dwindling as the government races to shore up a swooning currency.

Despite the numerous attempts by the Central Bank Of Nigeria CBN, to make the naira stable, the currency has continued to decline.

To defend the Naira, the Apex Bank introduced a slew of regulations, from barring the sale of dollars to BDCs to the RT200 scheme, which is designed to provide an N65 rebate on export revenues.

Nonetheless, its intervention comes at a cost in terms of Nigerian foreign reserves, which have not been growing at the expected rate despite high oil prices.

However, the CBN has maintained artificial stability in the official forex window by selling foreign exchange from its reserves.

The official exchange trades at around N430/$, expanding the gap between the official market and black market Consequently, Nigeria’s external reserves shrank by $1.496 billion year to date.

On a year-to-date basis, the reserve has reportedly lost $1.37 billion from $40.52 billion in December 2021 to $39.16 billion in June 2022. In the month of June, the external reserve gained $671.63 million, following a $1.1 billion decline in the previous month.

The drop in reserves is even more concerning given the recent spike in crude oil prices. International organizations have continually advised the CBN to abolish the official window.

Recall that the Vice President of Nigeria held a meeting with the World Bank Group President, David Malpass who advised Nigeria on the exchange rate unification.

President Malpass emphasized to the VP that a unified exchange rate will significantly improve the business-enabling environment in Nigeria, attract foreign direct investment, and reduce inflation.

He also discussed the importance of increasing domestic revenues through broadening Nigeria’s tax base and increasing the efficiency of tax administration.

What Countries Listed In The Worst Performing Currencies Should Expect

Financial experts believe that countries with worst performing currencies should expect the following;

  1. Reduction in foreign direct investment.

  2. Massive capital flight

  3. Increase inflation

  4. Reduced economic growth

  5. Reduced GDP (gross domestic product)

  6. Increase graduate unemployment

  7. Reduction in government’s expenditure on infrastructure projects

  8. Unstable prices of commodities make it difficult for any meaningful planning

  9. Reduction in trade volume

  10. Increase hardship in countries coupled with increasing crime rate etc.

 

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