Daily Watch – Tax defaulters get 30 days, PMB bars ministers from direct access

The total liabilities of 58 insurance companies in Nigeria have increased to ₦1.084 trillion, according to data from the Nigerian Insurers Association. The figure is expected to rise above the ₦1.25 trillion by the time all underwriting firms release their 2018 financial statements. The NIA said that, of the ₦1.084 trillion liabilities posted in their 2017 financial year, Non-Life companies recorded ₦551.53 billion while Life Insurers posted ₦532.97 billion. A further breakdown of the figure shows that Insurance Funds Liabilities was ₦463.6 billion, with Life insurance Companies recording Investment Liabilities to the tune of ₦114.29 billion while Borrowing attracted ₦14.6 billion, even as ₦53.72 billion was posted under Trade Payable. Under Share Capital, insurance companies recorded ₦169.63 billion, ₦126.8 billion under Reserves, Share Premium was ₦73.7billion and Other Liabilities attracted ₦68 Billion, thereby, translating to a cumulative ₦1.084 trillion in the financial year under review. There was, however, an improvement of ₦88 billion from ₦992.18 billion Total Liabilities posted in 2016 financial year while underwriters recorded ₦894.96 billion in their 2015 financial year-end.

 

President  Buhari has barred all the newly appointed ministers from direct contact with him. He has instead asked that they make their submissions through the office of his Chief of Staff and the Secretary to Government of the Federation. Specifically, Buhari instructed that all submissions for his attention, and requests, should be passed on to the CoS while those emanating from the Federal Executive Council must go to the SGF. Among other things, Buhari noted that the two-day retreat organised for incoming ministers discussed solutions relating to addressing insecurity; macroeconomic stability; agriculture and food security; energy security for petroleum products and electricity; transportation and critical infrastructure; industrialisation and SME development; human capital development; social inclusion; anti-corruption; housing financing and consumer credit. The President asked all ministers to see this opportunity to serve as an honour, to give their best to deliver on this mandate, for a more prosperous Nigeria, not for some, but for all Nigerians.

 

The Federal Inland Revenue Service has asked companies with liens on their bank accounts to regularise their tax status and pay the tax due within a 30-day ultimatum period or face the risk of having the agency recover the tax liabilities from directors, managers, secretaries and other management staff of such companies. This is in line with the decision of the FIRS to publish a list of over 19,000 corporate tax defaulters with the names of their bankers. The tax agency had in March this year issued a warning to taxpayers on the impending lien to be imposed on their bank accounts for non-compliance with provisions of the enabling tax legislation on value-added tax and withholding tax. The warning was as a result of an earlier notice from the agency, in May 2018, mandating banks to place a lien on the accounts of tax defaulters and requesting for a list of companies, partnerships, and enterprises with a banking turnover of ₦1 billion and above. This activity is aimed at discovering those companies that are complying with the tax laws and those that are not complying. So far, the non-compliant organisations have paid about ₦12.66 billion. The FIRS says it will sell the properties of tax evaders in the country while the FG would freeze bank accounts linked to the defaulters. 

 

Data from the Debt Management Office shows that the six geopolitical zones of the country were exposed to the total domestic debt of ₦3.97 trillion as of 31 March. The report showed that the South-West region has the highest domestic debt compared to other regions of the country. The geopolitical zone was exposed to a domestic debt of ₦1.04 trillion in the period, indicating  26.2 percent of the country’s total subnational domestic debt. In the zone, Lagos accounts for much of the indebtedness of the zone as it has a domestic debt of ₦542.23 billion,  51.92 percent of the domestic debt owed by the six states in the region. The South-South region has a domestic debt burden of ₦949.4 billion, accounting for 23.91 percent of the country’s domestic debt. The North-Central region has a domestic debt burden of ₦648.63 billion, accounting for 16.34 percent of the country’s subnational domestic debt. The FCT Administration has a debt of ₦163.52 billion, 25.21 percent of NC’s domestic debt. The North-West has a domestic debt burden of ₦485.39 billion, accounting for 12.23 percent of subnational local debt with Kano having the highest burden of ₦121.31 billion; 24.99 percent of the domestic debt of the region. The South-East geopolitical zone is the least indebted zone with ₦305.67 billion local debt accounting for 7.7 percent of the country’s subnational debt. Imo tops the region with ₦97.85 billion, accounting for 32.01 percent of the regional local debt.