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FG earned N2.81trn from VAT, CIT in nine months

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The federal government generated over N2.81 trillion from both Value Added Tax (VAT) and Company Income Tax (CIT) in the first three quarters of the year, the National Bureau of Statistics (NBS) has revealed.

While the sum of N1.14 trillion was recorded for VAT receipts for the period, CIT collections stood at N1.33 trillion.

VAT collections for the first, second and third quarters of 2021 amounted to N496.39 billion, N512.25 billion and N500.49 billion respectively, indicating marked improvement in collections over the corresponding quarters of 2020 when consumption tax amounted to N1.07 trillion.

According to the Value Added and Company Income Tax (Q3 2021) report posted on its website yesterday, year-on-year, the VAT upsurge showed growth rates of 52.93 per cent, 56.56 per cent and 17.84 per cent in Q1, Q2, and Q3 2021.

The improvement in VAT collections further confirmed the resilience and recovery of the Nigerian economy following the devastating impact of the COVID-19 pandemic.

However, the sectoral distribution of VAT during the review period showed that other manufacturing activity; professional services activity and state ministries and

parastatals accounted for the top three largest share of revenue in Q1 2021 with N49.41billion or 21.97 per cent, N42.50 billion or 18.90 per cent, and N26.96 billion or 11.99 per cent respectively.

However, according to the report, non-import VAT (local) was N224.85 billion; non-import (foreign) VAT was N171.66 billion, while NCS-Import VAT stood at N99.88 billion.

Similarly, in Q2, the other manufacturing activity, professional services activity and commercial and trading activity accounted for the top largest collections with N44.89 billion or 23.95 per cent, N29.30 billon or 15.63 per cent and N21.96 billion or 11.71 per cent respectively.

Also, non-import VAT, both local and foreign stood at N187.43 billion and N207.69 billion respectively, while NCS-Import VAT stood at N117.13 billion.

The NBS noted that in the third quarter, the manufacturing activity, information and communication and mining and quarrying accounted for the top three largest share of total

VAT – amounting to N91.20 billion or 30.87 per cent, N59.25 billion or 20.05 per cent and N28.44 billion or 9.62 per cent respectively.

On the other hand, CIT collections for the first three quarters amounted to N392.65 billion, N472.07 and N472.52 billion respectively.

In terms of sectoral distribution, breweries, bottling and beverages , professional services activity and state ministries and parastatals accounted for the top three largest share in Q1 with N23.26 billion or 15.27 per cent, N18.17 billion or 11.93 per cent and N17.35 billion or 11.39 per cent respectively. Also, during the quarter, local CIT amounted N152.33 billion, the foreign component stood at N184.47 billion while other payments totaled N55.85 billion.

However, in Q2, company taxes from professional services, other manufacturing and banks and financial institutions stood at N130.09 billion (31.14 per cent), N87.27 billion (20.89 per cent) and N60.01 billion (14.36 per cent) respectively.

Of the aggregate, local and foreign CIT recorded N417.74 billion N51.61 billion respectively while other payments stood at N2.72 billion

In the same vein, in Q3, manufacturing activity recorded N64.48 billion; information and communication (N58.15 billion) and mining and quarrying (N36.01 billion) as the top three largest share of revenue at 22.08 per cent, 19.91 per cent and 12.33 per cent respectively.

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Google set to invest $9.5bn in US

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Google has announced plans to invest $9.5bn in its US offices and data centers around the country in 2022, up from more than the $7bn it spent in 2021.

According to CNN, the big bet on office space was coming at a point Google was embracing a hybrid work model. The Alphabet-owned company has called for many of its employees to work in an office three days a week after two years of being fully remote.

The Chief Executive Officer of Alphabet and Google, Sundar Pichai, said, “It might seem counterintuitive to step up our investment in physical offices even as we embrace more flexibility in how we work.

“Yet we believe it’s more important than ever to invest in our campuses and that doing so will make for better products, a greater quality of life for our employees, and stronger communities.”
Google said it would open an office in Atlanta this year and continue to develop and expand office space in Austin and New York. It added that it planned to continue investing in data centers in Iowa, Nebraska, and Tennessee, among other states.

As part of the announcement, Google said it expected to create at least 12,000 new full-time jobs at the company this year.

Google and other tech companies were among the first businesses to shift to remote work when the pandemic hit in early 2020. But that shift always appeared to be temporary. Like others in Silicon Valley, Google had previously invested billions in expansive campuses and lavish office benefits for workers.

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European markets pull back amid doubts over latest Russian pledges over Ukraine

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European stocks retreated on Wednesday following the latest round of talks between Russia and Ukraine, aimed at finding a solution to the conflict.

The pan-European Stoxx 600 fell 0.8% in early trade, with autos shedding 1.9% to lead losses, while oil and gas stocks gained 1.7%.

In terms of individual share price movement, Finland’s Nokian Tyres fell 6.6%, while Sweden’s Lundin Energy added 4.7%.

Investor sentiment was boosted on Tuesday following negotiations between Russian and Ukrainian officials in Turkey, at which Russia’s deputy defense minister claimed Moscow had decided to “drastically” cut back its military activity near Ukraine’s capital.

Alexander Fomin, who spoke following the talks in Istanbul, said Russia would slow its military operations near Kyiv and Chernihiv in order for peace talks to progress. Russia previously claimed that it would reduce military operations in other parts of Ukraine but then continued its advance.

Growing hope for a cease-fire appeared to boost investor sentiment Tuesday, as Dow Jones Industrial Average futures rose 200 points, or 0.6%. S&P 500 futures also climbed 0.6%, while Nasdaq 100 futures climbed 0.7%. Meanwhile, the price of U.S. benchmark West Texas Intermediate crude oil, which spiked on the heels of Russia’s invasion of Ukraine, fell more than 4% to $100 per barrel.

Doubts have set in over the pledge, however, and while the Russian military has begun moving some of its troops in Ukraine away from areas around Kyiv to positions elsewhere in Ukraine, Pentagon Press Secretary John Kirby warned the troop movements do not amount to a retreat.

Shares in Asia-Pacific were mixed in Wednesday trade as investors watch for developments surrounding the war in Ukraine. Stateside, traders are keeping tabs on a slew of key economic reports, while also monitoring the Federal Reserve’s planned interest rate hikes.

The Job Openings and Labor Turnover Survey on Tuesday showed 11.3 million job openings, higher than the 11.1 million expected. The ADP will also release its private payrolls data ahead of the closely watched monthly jobs report, on Friday.

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Lagos Assembly kicks against harassment of residents by police

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Lagos State House of Assembly Speaker, Mudashiru Obasa, yesterday, cautioned police in the state against harassment, intimidation and extortion of residents.

Obasa said this on the floor of the House when lawmakers honoured outgoing Commissioner of Police, Mr. Hakeem Odumosu, who has been promoted to Assistant Inspector-General, and is due to retire in January 2022.

Obasa said Odumosu was honoured as the first Commissioner of Police in the state to stand before the lawmakers and address Lagosians on his experience policing the state.

The Speaker thanked Odumosu for his openness and responsiveness to issues affecting the peace of the state.

“It is important to call on those behind you to know that the relationship between the police and the people need to be constantly improved upon,” Obasa said, adding that men of the Nigeria Police Force need to build more trust among the people.

“Everybody must be treated with respect, dignity and honour. And that is how we can earn respect. Policing should not be about harassment and extortion but building trust among the people and making them comfortable,” Obasa said.

The Commissioner of Police, who led a team of officers to the House, thanked the lawmakers for their support. According to him, nothing could have been achieved in terms of security and peace in the state without assistance of the House.

He said he would remain grateful to Lagosians for making it possible for him and his team to effectively manage the security of the state.

Odumosu, who described Lagos as ‘mini-Nigeria’, said proactivity of the Assembly led to the creation of laws that helped the police remain successful in the state.

He said the Cultism Prohibition Law also helped to reduce illegal associations in tertiary institutions in the state and enlightened property owners and residents.

“We promise to continue to excel in providing watertight security for people of the state,” he told the lawmakers. He also promised he would encourage his successor to sustain the relationship between the police and the House, while urging the lawmakers to extend their support to his successor.

“Policing Lagos is not a tea party. Without the laws in Lagos, it would have been difficult to police the state. Don’t get tired, don’t relent in making laws that would make Lagos maintain its place as the most peaceful state in Nigeria,” he said.

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