Federal Government Gives N16 Trillion in Waivers to Dangote and Others, Report Says
- Dangote, Honeywell, Lafarge and other companies were granted trillions in waivers and concessions by the Federal government
- Countries like Togo, India, Benin, China and more were given customs duty waivers in three years
- The Nigerian government has forfeited about N16.79 trillion in waivers and concessions to companies and countries
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The Nigerian government has waived about N16 trillion in revenue for tax reliefs and concessions given to large firms between 2019 and 2021, a new finding reveals.
By December 2021, 46 companies benefited from different tax inducements and duty waiver programmes, while about 186 requests from other companies are still pending.
Source: UGC
Companies are given waivers and concessions
In a document posted on its website, the Budget Office disclosed its tax expenditure statements in the Medium-Term Expenditure and Fiscal Strategy.
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The tax expenses deal with revenue forfeited on Company Income Tax, Value Added Tax, Petroleum Production Tax and Customs Duty.
In the report for 2019, the Nigerian government had forgone N4.2 trillion in revenue from two revenue sources, CIT and VAT.
For the CIT, the estimated revenue forfeited was about N1.1 trillion for VAT.
The Punch reports that the most important conclusion in the large size of Nigeria’s revenue foregone from just two significant taxes, mainly from CIT and VAT.
Nigeria’s non-oil revenue potential is at least twice its current collections.
The report says the figure for revenue forfeited would likely surpass N4.2 trillion if more data were available, notably from Customs Duty, Excises, PPT, and Personal Income Tax concessions under the Oil and Gas Zones Act.
The figure increased to N5.8 trillion in 2020, most coming from revenue forgone under VAT.
In a breakdown, N4.3 trillion was forfeited under VAT, N457 billion under CIT, N307 billion under PPT and N780 billion under customs duty.
Five countries benefit from waivers and concessions
About five countries were granted 86 per cent of customs relief. China accounted for almost two0-third of total replacements granted. Netherlands, Togo, Benin and India were the primary sources of supplies that benefited from the relief.
The total amount continued to climb in 2021 and hit N6.79 trillion, with revenue forfeited on VAT accounting for most of it.
Another breakdown showed that N3.87 trillion was forgone under VAT, N548 billion under CIT, N337.70 billion under PPT, N1.84 trillion under customs duty and N111.15 trillion under imports VAT.
In three years, the Nigerian government had forfeited a total of N16.79 trillion in tax reliefs, Customs duty waivers and concessions.
Other beneficiaries of tax reliefs include and concessions include Dangote, Lafarge, Honeywell and 43 others.
Dangote moves four places up, loses N10.428 billion in one month
Recall that Legit.ng reported that despite moving four places up on the billionaire's table, Nigeria's billionaire and industrialist, Aliko Dangote, lost about N10.4 billion of his fortune.
In the latest ranking by Bloomberg, Dangote placed 76 on the table, four places up from his 80th position last month, but the move did not translate to improvement in his fortunes.
Africa's richest man lost a whopping N10.4 billion due to the fall in the share of his cement company, Dangote Cement.
Source: Legit.ng
