14 Jun

Daily Watch – Emefiele targets 11% inflation at year end, VAT income plummets in Q1

  • The NBS says that the total revenue generated by the country through Value Added Tax dropped from ₦207.35 billion in the fourth quarter of 2016 to ₦204.77 billion in the first quarter of 2017. The manufacturing sector generated the highest amount of VAT with ₦28.73 billion, followed by professional services and commercial trading, with ₦20.82 billion and ₦12.89 billion, respectively. Mining sector recorded the least VAT collection of ₦35.07 million. The report came as the FIRS intensified its tax collection drive by sealing off the premises of some tax-owing companies in Port Harcourt, Rivers state.
  • The FG has started the process of raising $600 million for the development of the solid minerals sector. Acting President, Yemi Osinbajo, said that the funds will be raised through the Nigerian Sovereign Wealth Investment Authority and the Nigerian Stock Exchange. “We have secured funding from both domestic and international sources for investment in the solid minerals sector. From the public purse, the Ministry of Mines and Steel Development has been granted access to the mining sector component of our Natural Resources Development Fund for the sum of ₦30 billion, an intervention fund from the Federal Government. This is to help provide cheap loans and grants to industry participants as well as for directly investing in foundational infrastructure,” Osinbajo said. Minister of Mines and Steel Development, Kayode Fayemi, said it was important for the nation to bring critical stakeholders together in order for Nigeria to become a destination to be reckoned with in the international mining community.
  • CBN governor, Godwin Emefiele, has said that the regulator was targeting an inflation rate of between 10-11 percent at the end of this year. Speaking at a meeting with the Senate Committee on Banking on the high interest rates, Emefiele said that although the inflation rate has been trending downwards, it remained very high (17.24 percent). Emefiele said that the CBN is working out an arrangement the banks on how to focus more on lending to SMEs.
  • Daar Communications has reported loss before tax of ₦3 billion for 2016. The firm’s filings at the Stock Exchange show that 2016’s losses are worse than the ₦1.48 billion posted a year ago. In 2016, revenues stood at ₦3.73 billion compared to ₦7.09 billion in 2015. Meanwhile, Skye Bank informed the NSE, shareholders and other stakeholders of its inability to file the audited financial statement for the year ended December 31, 2016 within the extended time granted by the NSE.
  • The senior special assistant to the president on prosecutions, Okoi Obono-Obla, says 20 percent of the 2017 budget will be financed with monies recovered in the government’s war on corruption. Obono-Obla added that the FG would liaise with the national assembly for permission before the funds would be used. He also took the chance to deny speculation that the APC was going through leadership crisis.