Daily Watch – MultiChoice agrees to $37.3M tax, Ghana’s crude oil earnings tank
9th February 2024
The Nigerian Labour Congress (NLC) and Trade Union Congress (TUC) gave a two-week ultimatum to the government to meet demands ranging from wage hikes to improved access to public utilities and accused it of failing to uphold pledges to soften the impact of reforms. The unions in a statement gave the government 14 days to deal with “issues crucial to the well-being of Nigerian masses and workers.” They did not say what they would do if it didn’t meet demands. In a related development, the Nigerian National Petroleum Corporation Limited (NNPCL) said it has no plans to increase petrol prices after last week’s devaluation of the Naira, its second in less than a year. In Niger State, the governor has banned the mass purchases of foods in the state’s local markets by traders from other states in the country, following protests by residents this week.
Africa’s biggest pay-TV company MultiChoice Group, said that its subsidiaries have reached a settlement with Nigerian tax authorities and agreed to pay a total tax amount of about $37.3 million. The Federal Inland Revenue Service (FIRS) froze MultiChoice Nigeria’s accounts in 2022 and served MultiChoice Group with a ₦1.8 trillion ($1.27 billion) tax claim for its Nigeria operation and a $342 million claim for value-added taxes. The group said in a statement the total tax amount of ₦35.4 billion to be paid by MultiChoice Nigeria and MultiChoice Africa Holdings will be offset against the security deposits and good faith payments made to date.
Ghana’s total earnings from exports of crude oil, production activities, surface rental and corporate taxes for 2023 witnessed some significant decline. A review of Ghana’s Petroleum Funds report by Joy Business from 2022 to 2023 showed that it fell by more than $400 million. In 2022, Ghana recorded $1.424 billion as total receipts compared to the $1.062 billion in 2023. The government registered $364 million in 2023 concerning corporate taxes paid by the oil exploration companies operating on Ghana’s oil fields, compared to $388 million in 2022. The 2023 Ghana Petroleum Funds report showed that the Ghana Stabilisation Fund was estimated at $190 million ending December 2023. The Ghana Heritage Fund had more than $1 billion. This means that Ghana has been able to save $1.2 billion, through savings of these two funds as well as the investments.
The Economic Community of West African States (ECOWAS) has urged Burkina Faso, Niger and Mali to reconsider their decision to quit the political and economic alliance, it said, warning of the hardships the move would force on their citizens. Its mediation and security council met in Nigeria’s capital, Abuja, to discuss the issue and an electoral crisis in Senegal, where the unprecedented postponement of a presidential vote has sparked public outcry and international alarm. Council Chairman Yusuf Maitama Tuggar said the juntas’ move “would bring more hardship and will do more harm to the common citizens of those three countries.” “And that is why we continue to urge those three countries to remain. And ECOWAS is going to redouble its efforts towards diplomacy, towards dialogue, towards reconciliation,” he said.