Connect with us

Business & Economy

FG Implements New Tax Deduction Regulations to Enhance Compliance and Economic Development in Nigeria

Published

on

 

Our Reporter

Finance Ministry has introduced new regulations for the deduction of tax from source.

These regulations we gathered aren’t known as the Deduction of Tax at Source (Withholding) Regulations 2024, provide guidelines for deducting tax from payments made to taxable individuals and entities under various tax acts.

According to the statement by Minister of Finance and Coordinating Minister of the Economy, Adebayo Olawale. “The implementation of these regulations will begin on July 1st, 2024. The regulations state that eligible transactions will be subject to deductions at specified rates, which vary depending on the nature of the transaction and the residency status of the recipient. Reduced rates will apply to recipients who reside in countries with which Nigeria has a treaty for the avoidance of double taxation.

According to him entities such as corporations, government departments, statutory bodies, and payment agents are responsible for making deductions at source. However, small companies and certain unincorporated bodies are exempt from this requirement if the supplier has a valid Tax Identification Number (TIN) and the transaction value is N2,000,000.00 or less per month.

The Minister said, It is important to note that deductions made at source should not be considered as separate taxes or additional costs. Instead, they are treated as advance or final taxes for the supplier. The obligation to deduct at source arises when payment is made or when the amount due is settled, whichever occurs earlier.

He added that, once deductions are made, the amounts should be remitted to the relevant tax authority within specified timelines. Returns and evidence of remittance must be submitted, including information about the person from whom the deduction was made, the nature of the transaction, and the amount deducted”.

“To ensure compliance with the regulations, receipts for tax deducted must be issued using a provided template. These receipts can be submitted to the relevant tax authority as evidence for claiming tax credit”.

The Minister further stressed that failure to comply with the deduction requirements may result in penalties and interest charges. However, certain transactions, such as compensating payments under a Registered Securities Lending Transaction and dividend payments to Real Estate Investment Trusts or Real Estate Investment Companies, are exempt from deduction at source.

The new Deduction of Tax at Source (Withholding) Regulations aim to simplify tax compliance and administration, reduce discrepancies between corporate and non-corporate structures, and align with global best practices. These regulations replace all previous rules regarding deductions at source, except for Pay-As-You-Earn tax.

The Ministry of Finance expects that these regulations will promote easier tax compliance, ensure fairness in the tax system, and contribute to the overall economic development of Nigeria.

Business & Economy

Pastor Reuben Initiative extols founder’s philanthropic gesture

Published

on

By

Pastor Reuben Wilson

 

By Idibhar Agadaga, Baylesa

The Director General Pastor Reuben Initiative for Good Leadership and Accountability (PRIFGLA), Eseimokumo Frank Soko has commended Pastor Reuben Wilson’s selfless contributions to the development of Bayelsa State and the Niger Delta region.

Speaking on an enlighment program on Royal FM, 95.5, Eseimokumo Frank Soko, highlighted Wilson’s commitment to education, noting that he has sponsored over 200 students across various universities in the region.

According to Soko, Wilson’s philanthropic efforts extend beyond education, as he has also provided monthly stipends to members of the Initiative ànd numerous individuals in need.

He particularly extolled Wilson’s selfless and sacrificial lifestyle which have positively impacted the lives of many Bayelsans.

He emphasized that Wilson’s charitable works is not limited to any particular political party or affiliation as beneficiaries come from diverse backgrounds including PDP, APC and Labour Party members.

On his part, PRIFGLA’s National Secretary and Special Adviser on Student Matters and Scholarships, Ogbomo Erepamowei, shared Wilson’s inspiring personal story, which has driven his passion for helping others.

Ogbomo noted that despite facing challenges in his own educational journey, Wilson has demonstrated remarkable resilience and generosity, supporting students in various institutions across the Niger Delta.

He added that over 200 students are under scholarship sponsored by Pastor Reuben Wilson in various universities across the Niger Delta region.

In a final statement, Soko expressed gratitude to Wilson, describing him as a “sacrificial leader” who has positively impacted the lives of those working with him.

Continue Reading

Business & Economy

Three Oil Coys admit owing FG over $5.5m  *As Reps Issue 2-Weeks Ultimatum For Payment

Published

on

By

By Our Reporter
Following the ongoing efforts by the National Assembly to generate revenue for the federal government, three major oil companies operating in Nigeria Chorus Energy, Dubril Oil company limited, and Belema Oil have all admitted to owing $5,543,491.45 to the Nigeria’s Federation Account.
This revelation came during Tuesday investigation by the House of Representatives Committee on Public Accounts prompted by the Auditor General’s annual report.
The committee heard detailed testimonies from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), presented by Mr. Balarabe Haruna, which outlined the outstanding debts of the companies.
According to NUPRC, the debts are as follows: Chorus Energy owes a total of $814,680.06 and N181,954,238.43, comprising $396,907.76 for crude oil by price and $417,772.13 for crude oil by production.
Dubri Oil owes $3,025,193.71, which includes $646,605.55 for crude oil by production and $2,378,588.15 for gas flare.
Eroton Exploration & Production owes $78,486,333.27, made up of $45,094,125.31 for crude oil by production, $33,392,207.96 for gas flare, and $916,027.00 for concession rentals.
Belema Oil owes $1,703,617.68, including $977,793.54 for crude oil by price, $511,870.14 for gas flare, and $213,954.00 for concession rentals.
In response, the Chief Financial Officer of Chorus Energy, Mr. Oluseyi Simon, explained that the company’s debt arose after an increase in the crude oil price rate from 0.5% to $3.5.
He noted that the company has consistently paid its liabilities and that it had already paid $5.3 million in 2024 alone.
Simon assured the committee that the remaining balance would be cleared before the end of the month.
Meanwhile, Mr. Clement, the Acting Managing Director of Dubri Oil, acknowledged the debt and explained that the company’s financial difficulties stemmed from a decline in production during the first quarter of 2024.
He emphasized that the company had been trying to mitigate the situation through workovers on its wells, but the efforts were unsuccessful.
However, Clement assured the committee that Dubri Oil planned to begin drilling new wells and, once production increased, would settle the outstanding debt.
He further revealed that Dubri Oil had been in discussions with the Economic and Financial Crimes Commission (EFCC) and had agreed to a payment schedule, with an expected resolution by the third quarter of 2025.
Belema Oil also confirmed the debt, citing operational challenges as the cause of the indebtedness.
According to the company’s Managing Director, Ahmad H. Sambk said Belema Oil had been unable to meet its production targets since August 2022 due to issues with the evacuation pipeline system, which had experienced significant leakages, leading to the loss of nearly 5 million barrels of crude oil.
These challenges had resulted in a complete shutdown of operations, preventing the company from fulfilling its financial obligations.
Chairman of the investigation sub-committee, Hon. Akinlade Isaq, expressed anger over the failure of oil companies to meet their financial obligations and stressed the urgency of retrieving the owed funds.
“Paying off these outstanding debts is not just a matter of financial responsibility, it is a critical step toward improving governance in Nigeria,” Isaq stated.
The committee then unanimously gave the oil companies a strict two-week ultimatum to settle their debts.
The committee also issued a warning to any oil companies that failed to respond to invitations for hearings, stressing that non-compliance would lead to severe repercussions.
In addition to the aforementioned companies, the committee also disclosed the indebtedness of other oil operators that failed to appear today as follows;
“For Conoil Producing, the company owes $3,884,308.56 for crude oil by production and $708,600.06 for Gas flare and $475,785.40, bringing the total to $4,592,908.62.
Continental Oil has a total debt of $57,053,842.22, which includes  $44,519,936.05 for crude oil by production, $12,533,906.17 for gas flare and $250,650.00 for concession rentals.
Enageed Resources owes a total of $15,001,089.91, consisting of $11,647,300.01 for crude oil by production, $3,353,789.90 for gas flare and $469,552.00 for concession rentals.
Energia limited owes a total of $19,260,982.13, made up of $6,675,524.25 for crude oil by price, $9,768,926.81 for crude oil by production,$10,208.89 for gas sales, $2,806,322.19 for Gas flare and $305,995.40 for concession rentals.
Continue Reading

Business & Economy

New Bayelsa Secretariat: Govt Appeals To Host Communities To Maintain Peace

Published

on

By

Gov Douye Diri of Bayelsa

 

By David Owei, Bayelsa
The Bayelsa State Government has appealed to the people of Yenagoa and Ovom communities currently locked in a dispute over ownership of the land, where the new 9-storey secretariat is sited, to sustain their age long unity and peaceful coexistence.

The Deputy Governor, Senator Lawrence Ewhrudjakpo, made the appeal at separate meetings with the leaders and critical stakeholders of both communities in Government House, Yenagoa on Tuesday.

Senator Ewhrudjakpo, in a statement by his Senior Special Assistant on Media, Mr Doubara Atasi, pointed out that there was no need for both communities to feud over the land as government had acquired it for development purposes several decades ago.

According to the Deputy Governor, every land acquired by government with compensation paid becomes its property, stressing that all the communities lying within 15-kilometre radius from Yenagoa make up the Bayelsa State capital.

While acknowledging the sacrifices being made by the communities hosting the state capital, he assured that government would continue to protect their interests by performing its corporate social responsibility.

Senator Ewhrudjakpo, however, warned that the present administration would not fold its arms and watch any community or group of people cause crisis to disrupt the prevailing peace in the state for whatever reason.

He particularly cautioned the youths of Ovom against the alleged unwholesome practice of going to ministries, departments and agencies to demand a change in the letterheads and signboards of MDAs to reflect Ovom.

His words: “There is no long-term benefit in conflict. People can disagree, but they can reconcile their differences through the roundtable.

“Yenagoa and Ovom communities have a long history of peaceful coexistence as two sister communities in the Atissa Kingdom in the Yenagoa Local Government Area.

“As communities in the epicenter of the state capital, Ovom and Yenagoa have made huge sacrifices, and they cannot afford to fight themselves over land already acquired by government.

“Our position is that none of the communities own the land of the project site for the new state Secretariat; the ownership of that land now belongs to the Bayelsa State Government by virtue of the Capital City Development Law.

“However, government will continue to protect the interest of the communities who have donated the lands for public use and development.

“We are also receiving reports that some youths of Ovom are going to ministries, departments and agencies demanding for a change of address to reflect Ovom. That attitude is not right, and therefore, must be stopped forthwith.

“We should all know that like any other capital city in this country, the name of Yenagoa has influence over all other communities lying within the 15-km radius of the state capital, and as such Yenagoa is reflected in all addresses.”

In her remarks, the Member representing Yenagoa Constituency 1 in the State House of Assembly, Hon. Ayibanengiyefa Egba, expressed gratitude to the state government for its swift intervention and called on the communities to embrace peace as brothers to foster development and progress.

Others who spoke briefly at the two meetings include the former Technical Adviser to the Governor on Conflict Resolution, Chief Boma Spero-Jack, Hon. Markson Fefegha, Chief Couple Anyamalem, Chief Stephen Abaribote, and Chief Loveday Abaribote.

Top government functionaries present included the commissioners for works, information, marine and blue economy, lands and survey, and that of community development.

Also in attendance were the Chairman of Yenagoa Local Government Area, Hon. Bulodisiye Ndiware, the Acting Surveyor General of Bayelsa State, Geku Tonye Margareth; the Technical Adviser to the Governor on Boundary Matters, Hon. Salem Vote, among others.

Continue Reading

Latest

Sports22 hours ago

Igali advocates for inclusion of Traditional Wrestling ‘Kuwa’ and Canoeing in National Sports Festival *Receives Bayelsa Athletes at 13th ECOWAS African Wrestling games

  By David Owei, Bayelsa The Bayelsa State Commissioner for Sports Development, Dr Daniel Igali, has called on the National...

Politics23 hours ago

IPU cannot consider Natasha’s petition – Jimoh Ibrahim

Senator Jimoh Ibrahim, Chairman of the Senate Inter-parliamentary Committee, remarked that the purported petition from the suspended Senator Natasha is...

Politics23 hours ago

Senate moves to establish Early Voting for Nigerians on essential duties during elections …..As Bill scales 2nd reading 

By George Mgbeleke The Senate on Thursday passed to second reading a Bill to amend the Electoral Act to provide...

Law & Crime23 hours ago

Rivers Crisis: State Assembly in another troubled water  ……. Wants DSS to Probe CJ over alleged age forgery 

By Our Reporter Barely 24 hours in the fight against the state governor,  Siminalayi Fubara,  Rivers State House of Assembly...

Arts & Life Style24 hours ago

Lalong seeks Constitutional roles for traditional rulers, says it’s panacea for insecurity

  By George Mgbeleke Senator Simon Bako Lalong representing Plateau South Senatorial District in the 10th National Assembly has maintained...

Politics2 days ago

No Individual Bigger Than PDP, Says Diri

By David Owei ,Bayelsa Governor of Bayelsa State, Senator Douye Diri, has said that the Peoples Democratic Party (PDP) was...

General News2 days ago

Natasha: Senate passes vote of confidence in Akpabio  …..says sexual harassment allegation is before the court

By George Mgbeleke Satisfied with the way suspension of Senator Natasha Akpoti-Uduaghan (PDP Kogi Central) for misconduct and her sexual...

Law & Crime2 days ago

How Kwara’s UBEC N5.78 Billion Funds Was Allegedly Diverted

  By Our Reporter The trial of the immediate past Governor of Kwara State, Alhaji Abdulfatah Ahmed, and his Finance...

Law & Crime2 days ago

FCT Police Neutralizes Infamous Kidnapper Dogo Saleh *Recover AK-47, other weapons

  In it bid to rid the Abuja of criminal al sorts crimes and criminals, the FCT Police Command has...

Politics2 days ago

Rivers Crisis:How Rivers State Assembly denied me access to present 2025 budget-Gov.Fubara •Commissions Bori Zonal Hospital

  By Our Reporter In compliance with the directives of the Rivers State Assembly’s  represent the the 2025 budget proposal...

Trending