Business

FG To Tax Cryptocurrency, Other Digital Assets In 2023

Despite a subsisting 2021 directive of the Central Bank of Nigeria (CBN) to deposit money banks to close all accounts of people or entities involved in cryptocurrency transactions within their systems and warning to citizens to desist from crypto assets as they are used to fund illegal dealings, the Federal Government has disclosed to tax cryptocurrency and other digital assets by 2023.

Zainab Ahmed, minister of finance, budget and national planning, however, said the government was going ahead with its plan to tax those areas.

Spokesperson to Vice-President Yemi Osinbajo, Laolu Akande, in a statement, quoted the minister to have said this while speaking on the main features of the bill, in her address to an extraordinary virtual meeting of the national economic council (NEC) on Thursday.

The minister said the bill is anchored on five fundamental policy drivers, namely; tax equity, climate change, job creation/ economic growth, tax incentives’ reform and revenue generation/tax administration.

She said the bill sought to amend relevant taxes, excises and duty statutes in line with the macroeconomic policy reforms of the federal government and that it also aims to amend and make further provisions in specific laws in connection with the public financial management of the federation.

Ahmed listed other aspects of the finance bill to include chargeable assets; exclusion of losses and replacement of business assets.

“For instance, under the Tax Equity pillar, all sectors of the economy would be brought into the tax net including Capital Gains Tax from digital assets, cable undertakings, lottery and gaming business,” the statement quoted Ahmed as saying.

“Similarly, under the Climate Change and Green Growth pillar of the bill, there would be incentives for the natural gas sector and discouragement of gas flaring.

“Under the pillar of Tax Incentives’ Reforms, there would be new deductions for Research and Development, and Investment Tax Credits; Reconstruction Investment Allowance; Rural Investment Allowance; Incomes in Convertible Currencies to be exempt, among others.

“Also the bill contains an amendment under Chargeable Assets stating that “subject to any exceptions provided by this Act”, all forms of property shall be assets for this Act, whether situated in Nigeria or not, including options, debts, digital assets and incorporeal property generally.”

The minister said the proposed bill clarified the taxation of cryptocurrency and other digital assets in line with the government’s policy thrust of enhancing cross-border and international taxation of growing e-commerce with emerging markets.

She said that by doing so, Nigeria would join the league of jurisdictions currently taxing digital assets, including the UK, the US, Australia, India, Kenya and South Africa.

According to the statement, after Ahmed’s presentation, the governors of Sokoto, Borno, Kaduna, Kebbi and Ogun states, among others, commented on the bill and fllowing their comments, the NEC resolved to update the draft finance bill with additional inputs from state governors as the bill goes ahead to the federal executive council (FEC) before the president sends it to the national assembly.

Business

NERC Deregulates Prepaid Meter Prices

Govt directs electricity companies to charge Nigerians per hour

The Nigerian Electricity Regulatory Commission (NERC), in a move to deregulate the metre supply and pricing market, released an order on Monday on the deregulation prices for metres deployed under the Meter Asset Provider (MAP) Scheme.

According to the order, the commission said the move was necessitated after MAPs and other operators requested a further review of metre prices in consideration of the significant changes in foreign exchange and inflation rates since NERC’s last price review in September 2023.

It said the significant changes in these macroeconomic variables had constrained the abilities of metre providers to supply metres at the approved regulated price.

“The commission has noted the need for the efficient pricing of meters to respond more quickly to changes in macroeconomic parameters, particularly exchange rates.

“The commission has further taken cognisance of the constraints/challenges faced by MAPs and LMMAs and therefore approved the deregulation of prices of meters deployed under the MAP scheme with effect from May 1, 2024,” NERC stated.

It added, “With effect from May 1, 2024, all prices of meters under the MAP scheme shall be determined through a competitive bidding process with customers provided with a choice of authorised vendors.”

As a result, NERC said it has henceforth deregulated the pricing of meters deployed under the MAP scheme.

“The cost of prices of meters deployed under the MAP scheme is hereby deregulated to enable end-use customers acquire meters from MAPs of their choice based on competitive open market prices determined from transparent bidding frameworks,” the commission stated.

It said, “All MAP permit holders are henceforth eligible to provide services and transact for the provision of meters and metering services with any Disco in the Federal Republic of Nigeria with their existing permit.

“The lifting of the restriction on permitting to operate in all Discos is subject to the mandatory requirement for MAPs to comply with the associated Disco specific requirements/specifications.

“All Discos shall ensure the effective and seamless integration of smart meters deployed by MAPs with the Disco’s head-end systems and meter data management systems.”

Business

CBN stops OPay, Palmpay, others from onboarding new customers

Central Bank of Nigeria (CBN) has stopped mobile money operators including fintech firms like OPay, Palmpay, Kuda Bank, and Moniepoint from onboarding new customers.

A source at the bank, who confirmed the development to Channels TV however, said no circular was served by the apex bank in that respect.

The affected fintech companies were reported to have accounts being used for illicit foreign exchange transactions.

OPay confirmed the development in a statement on Tuesday, saying it has paused the onboarding of new customers to “support government efforts to clean up the financial industry”.

Business

Kaduna refinery to start producing at 60% capacity by the end of the year- NNPCL,

The Management of the Nigerian National Petroleum Company Limited, NNPCL, has said that the rehabilitation of the Kaduna Refining and Petrochemicals Company, KRPC, would be completed by the end of 2024.

The Managing Director of KRPC, Mustafa Sugungun, made this disclosure on Monday during an oversight visit to the refinery by members of the Senate Ad Hoc Committee on Petroleum Downstream led by Senator Ifeanyi Ubah.

He pointed out that the 110,000-barrel-per-day refinery will start producing at 60 per cent capacity by the end of the year, while full production will take place subsequently.

According to him, the rehabilitation work, which is presently at 40 per cent, is expected to be completed within the stipulated time frame

He said, “Our rehabilitation is going on well and steadily according to the plan we have. We are planning to bring this plant to 60 per cent nominal capacity by December 31st, 2024.

“Currently, we are heading towards 40 percent of rehabilitation. We remain committed to bringing back the plant at least 60 percent of our nominal capacity,” he said.

On his part, Ubah said that the oversight visit was part of the collaborative efforts of the President Bola Tinubu administration and the National Assembly to ensure that all the nation’s refineries are brought back to life, and consequently enable the country to end the importation of petroleum products.

The Kaduna refinery was established in 1980 to supply petroleum products to Nigeria’s Northern region, with a capacity of producing 110,000 barrels per day of crude oil.

For many years, the Kaduna refinery, just like its counterparts in Port Harcourt and Warri, has not been functional, leaving the country to rely heavily on imported petroleum products.