Telcos, others urged to pay taxes early
The Federal Inland Revenue Services (FIRS) has urged telcos and other companies, in sectors positively affected by the lockdown, to pay their Company Income Taxes (CITs) prior to the statutory deadlines. CITs are assessed as 30% of a company’s profits in its previous financial year. FIRS received CITs of ₦95.7 billion in Q1 2020, a 135% increase over the Q1 2019 CITs of ₦40.7 billion.
World Bank projects a 20% decline in remittances
The World Bank is projecting a 20% decline in diaspora remittances to Sub-Saharan Africa. This projection is due to COVID-19’s impact on migrant wages and employment. In 2019, Nigeria recorded about $25 billion in remittances, higher than foreign direct and portfolio investments, which were around $922 million and $16 billion respectively. Remittances are usually sent for real estate projects and to meet the welfare needs of families at home.
Nigerian banks at risk from oil slump
Nigerian independent oil producers, who account for a fifth of Nigeria’s oil, have raised the alarm about their ability to pay back ₦3 trillion in debt. As oil prices dropped below $20 last week, Nigerian independent oil producers are calling on the government to intervene to avoid a banking crisis. Despite calls to reduce their exposure to the oil and gas sector, a third of all bank loans are made to oil drillers.
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