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FG Experienced a Staggering 37.8% Decline from Company Income Tax in Q1 2023

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FG Experienced a Staggering 37.8% Decline from Company Income Tax in Q1 2023

FG (federal government) of Nigeria witnessed a significant decline in company income tax (CIT) collection during the first quarter (Q1) of 2023, according to reports from multiple sources. The total CIT generated amounted to N469.01 billion, reflecting a notable decrease of 37.8% compared to the previous quarter’s figure of N753.88 billion. This decline in tax revenue raises concerns about the economic impact and challenges faced by businesses in Nigeria.

FG Experienced A Decline of 37.8% From Company Income Tax in Q1 2023
Image source: https://nairametrics.com/

The National Bureau of Statistics (NBS) released a report highlighting the key details regarding the CIT collection in Q1 2023. Local payments contributed N300.78 billion, while foreign CIT payments accounted for N168.23 billion during the same period. The financial and insurance activities sector recorded the highest growth rate of 50.42% on a quarter-on-quarter basis, followed by the construction sector at 42.32%.

However, water supply, sewerage, waste management, and remediation activities experienced the lowest growth rate at -69.38%, while other service activities followed closely at -60.13%. In terms of sectoral contributions, the top three sectors with the largest shares in Q1 2023 were financial and insurance activities (22.94%), manufacturing (20.91%), and information and communication (11.89%). Activities such as households as employers, undifferentiated goods- and services-producing activities of households for own use, though, recorded the least share (0.01%).

While the decline in CIT collections is a cause for concern, it is essential to examine the factors contributing to this downturn. One significant factor is the reduction in Nigeria’s economic growth during Q1 2023, primarily attributed to the negative consequences of the naira redesign policy implemented by the Central Bank of Nigeria. This policy led to a scarcity of cash and affected numerous companies’ ability to carry out transactions, particularly in the informal sector.

The Q1 2023 Gross Domestic Product (GDP) growth rate stood at 2.31% year-on-year in real terms, marking a decline of 1.21% compared to the previous quarter and 0.8% compared to the corresponding period in 2022. The Statistics Bureau attributed this slowdown in GDP growth to the cash crunch experienced during the first quarter.

It is worth noting that on a year-on-year basis, CIT collections in Q1 2023 decreased by 14.96% compared to the same period in 2022. The federal government will need to closely monitor and address these challenges to ensure the stability and growth of the economy. Enhancing revenue generation through effective tax administration and creating an enabling environment for businesses will be crucial in navigating these uncertainties.

Despite the decline in CIT collections during Q1 2023, it is important to highlight that in the previous year, the federal government witnessed a significant increase in CIT revenue, amounting to N2.83 trillion. This represented a remarkable growth of 116.75% compared to the N1.69 trillion recorded in 2021.

As Nigeria moves forward, it becomes imperative to address the challenges faced by businesses and foster an environment conducive to economic growth. Measures aimed at improving cash flow, streamlining tax policies, and supporting key sectors will play a vital role in revitalizing the economy and ensuring sustained revenue generation for the federal government.

To remain abreast of the most recent developments in the political sphere, opt for Reportera as your preferred news source.

Oladiti Oluwajuwon is an experienced writer with 5+ years' expertise in captivating blog posts, articles (spiritual, educational, academic), and insightful news pieces. With a keen eye for detail, he specializes in diverse content, including political news and academic info such as degrees, schools, and admission requirements.

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African Union Takes Action: Republic of Niger Suspended Amidst Political Unrest

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In a decisive move that reverberated across the continent, the African Union (AU) announced the suspension of the Republic of Niger from its membership ranks.

This momentous decision was unveiled during the African Union’s Peace and Security Council meeting held in Addis Ababa, Ethiopia on Tuesday, August 22.

African Union:Picture Source- Pinterest

The suspension stems from the recent political turmoil that engulfed the nation, with the African Union pointing to the coup orchestrated by Gen Abdourahamane Tchiani on Wednesday, July 26. As part of a series of sanctions imposed on the francophone West African country, the Republic of Niger faced the repercussions of its internal upheaval.

The African Union’s stance was uncompromising, as it made it clear that Western nations seeking to meddle in African affairs should refrain from interfering. This firm message was directed from the heart of Addis Ababa, Ethiopia, where the AU’s call for autonomy echoed loudly.

The events leading up to Niger’s suspension unfolded against a backdrop of political uncertainty and unrest. The coup in Niger, orchestrated by Gen Abdourahamane Tchiani, prompted the Afican Union to take action. Their decision to suspend Niger was not taken lightly and was ratified during the Peace and Security Council meeting in Addis Ababa, Ethiopia on August 22.

The aftermath of the military takeover in left President Mohamed Bazoum in captivity, held under the close watch of the juntas in Niger. Despite international pressure, the release of the president and his family remains elusive. This tense situation compelled the Economic Community of West African States (ECOWAS) to intervene, imposing sanctions on Niger and establishing a deadline for the initiation of military intervention by the sub-regional body’s standby forces.

The suspension of the Republic of Niger from the African Union serves as a stark reminder of the continent’s commitment to upholding stability and safeguarding democratic governance. The swift response underscores the African Union’s dedication to maintaining order and security within its member states, sending a resounding message to the global community about the importance of respecting Africa’s sovereignty.

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Peter Obi: “I Campaigned For Presidency Because I Can Say It Any Day, I Will Solve The Problem Of Nigeria”

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In a recent tweet that has caught the attention of many, @MissPearls shares an inspiring declaration made by former Anambra state governor and Labour Party presidential candidate, Peter Obi. According to @MissPearls, Peter Obi proclaimed, “I campaigned for Presidency because I can say it any day, I Will SOLVE THE PROBLEM OF NIGERIA. All these confusion everywhere can BE SOLVED, and I am PREPARED for it”

Peter Obi: I Campaigned For Presidency Because I Can Say It Any Day, I Will Solve The Problem Of Nigeria.

Peter Obi’s bid for the presidency in the recent elections stirred considerable excitement and garnered support from diverse quarters, particularly the youth demographic. The former governor is known for his progressive ideas and pragmatic approach to governance, which resonated with many Nigerians who sought change and effective solutions to the country’s myriad challenges.

Despite his extensive support and well-articulated vision, Peter Obi’s presidential ambitions faced formidable opponents in the election. The Independent National Electoral Commission (INEC) released results that placed him behind the All Progressives Congress (APC) candidate, Bola Ahmed Tinubu, who emerged as the winner, and Atiku Abubakar of the Peoples Democratic Party (PDP), who came second. However, these results were met with skepticism due to apparent electoral irregularities that marred the integrity of the process.

In response to the controversial election outcome, both Peter Obi and Atiku Abubakar filed legal challenges against the INEC’s declaration. This move underscores their commitment to upholding the democratic process and ensuring that the voice of the electorate is accurately reflected. As the election Tribunal Judges prepare to deliver their verdict, Nigeria watches with bated breath, eager to witness justice being served.

Meanwhile, the administration of Mr. Bola Ahmed Tinubu has taken significant policy actions since assuming office. The removal of fuel subsidies and the decision to float the Naira have triggered mixed reactions across the nation. While these measures may be intended to foster economic stability and growth, the immediate consequences have been felt by everyday Nigerians. The cost of living has surged, and the socio-economic effects on the rich and the poor have become more pronounced.

As the Nigerian population navigates these shifts, the aftermath of the election and the ensuing governance strategies offer a critical juncture for evaluating the nation’s trajectory. The voices of discontent, expressed by citizens facing the brunt of these policies, highlight the necessity for leaders to prioritize the well-being of the populace while pursuing economic advancements. It is essential for the government to strike a balance between fiscal prudence and safeguarding the interests of the vulnerable segments of society.

The policy changes implemented by Bola Tinubu have shed light on the delicate balance between progress and the welfare of the people. As the nation waits for the tribunal’s judgment and the dust settles on the recent election, Nigeria stands at a crossroads, with the potential to reshape its future trajectory and address the systemic challenges that have held it back for far too long.

Fore more updates, follow us on Twitter @ReporteraNews.

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Youths in Kano Defy Police Ban to Protest Alleged Tribunal Bribery

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Hundreds of determined youths in Kano took to the streets, defying a police ban, to protest what they perceive as attempts to manipulate the state election petition tribunal. This incident unfolded against the backdrop of a ban on protests by the Commissioner of Police, Usuani Gumel, following revelations of alleged plots to obstruct justice through financial inducement in legal proceedings.

Youths in kano

The rally, which unfolded outside the state government house, saw impassioned youths brandishing placards with messages that underscored their commitment to justice and the integrity of the electoral process. Their actions were sparked by concerns over an alleged plan to bribe the state election petition tribunal, casting a shadow over the fairness of the process.

The ban on protests was issued in response to recent revelations made by Justice Flora Azinge, who unveiled purported schemes by lawyers to disrupt the course of justice through financial incentives. The Commissioner of Police cited “confirmatory intelligence products” as the basis for this decision, leaving a contentious atmosphere surrounding the freedom of assembly and the right to peaceful protest.

This ban, however, failed to deter the resolute youths who carried a variety of placards conveying their strong stance against corruption, manipulation, and injustice. The slogans they chanted resonated with their determination to safeguard the sanctity of the electoral process and uphold transparency in governance.

Among the messages displayed, one placard caught the eye with its direct callout: “Gandollar, stop spoiling the name of Tinubu.” This highlights the allegation that financial impropriety is tainting the reputation of key political figures.

In a video circulated online, the enthusiastic protesters chanted slogans that echoed their deep-seated concerns. Chants of “No to corruption,” “No to injustice,” and “No to manipulation” reverberated through the crowd, embodying the youth’s unwavering commitment to fair and accountable governance.

Addressing the gathering, Governor Abba Kabir Yusuf praised the peaceful conduct of the protesters and assured them that their concerns would be relayed to President Bola Tinubu. This gesture recognizes the role of the youth in shaping political discourse and underscores the importance of their voices in the pursuit of a just society.

In conclusion, the youths in Kano have seized the moment to voice their concerns and demands for an unbiased electoral process. Their defiance of the police ban serves as a reminder that public sentiment cannot be easily suppressed. As this incident unfolds, it raises important questions about the delicate balance between freedom of assembly, legitimate protest, and maintaining public order. It also underscores the critical role of the youth in shaping the political landscape and demanding accountability from their leaders.

For the latest news updates, follow us on Twitter @ReporterNews. Stay informed and engaged with evolving stories from all around the world.

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