Investments worth $10 billion has flowed into the country due the import prohibition policy imposed on 41 items, Godwin Emefiele, Governor of Central Bank of Nigeria ( CBN ) has said.
The Apex Bank boss made the disclosure before lawmaker at an interactive session by the Joint Committees joint House Committee on Finance, Appropriation; Aids, Loans & Debt Management and Budget Research on the 2018-2020 Medium Term Expenditure Framework/Fiscal Strategy Paper.
Represented by Adebayo Adelabu, CBN Deputy Governor on Operations, Emefiele said a reduction in inflation rate from 18.9% to a little above 15% has been achieved by key fiscal policies introduced by the present administration which were aimed at stabilizing the economy.
Local manufacturing of some of the prohibited items in the country including building materials such as granite, marble, among others, have been commenced by some companies established across the country, adding that this would generate employment for Nigerians.
The official exchange rate of N305/$ and the parallel market’s N360/$ have been stable over the past few months, he said. This was due to the intervention of the CBN in Agriculture, Solid minerals, manufacturing sectors and Petroleum sector which has been yielding positive results, he said.
The CBN and Federal Account Allocation Committee (FAAC) agreed that proceeds from the foreign exchange transaction would be remitted into the Federation Account for the three tiers of government to share, and reduce budget deficit.
Members,however took him to task on the bailout given to states and he said CBN does not bailout to state as provided in the CBN Act, 2007.
He added that since they cannot afford the high interest rate from commercial banks,mIntervention fund were given to critical sectors of the economy at single rate and was channeled through development financial institutions (DFIs).
However, Permanent Secretary of Federal Ministry of Finance, Mahmud Dutse, who respresented Kemi Adeosun, Minister of Finance requested the support of the National Assembly towards boosting the 20% independent revenue from government owned enterprises, saying there were plans to plan to sanction Chief Executives of agencies who fail to adhere to the policy.
He said Nigeria’s tax regime should be reviewed as it is one of the lowest in the world and less than one-third of Africa’s ratio.
He said in line with ECOWAS tariff policy, the only proposal for tax review applies to excise duties on alcohol and cigarette
Executive Chairman, Federal Inland Revenue Service (FIRS) Tunde Fowler, in his presentation p disclosed that total sum of N3.233 trillion was realsied over the past 10 months, an amount that represented 79.35 percent of its collection target for 2017 fiscal year.
The FIRS justification for 2018-2020 revenue framework, he said, was based on the Federal Government Economic Recovery and Growth Plan (ERGP).
He said its tax assessment between 2013 and 2015 revealed N1 trillion after its tax audit exercise based deployed technology which has aided the tax agency to increase its revenue.
Various measures have been adopted by FIRS the service to ensure increased collections of federal government dues in the corporate and individual taxes.
Fowler added that the new modalities structured for optimal access of accruable due from the Voluntary Assets and Income Declaration Scheme had yielded over $54 million (N16.73 billion) and N207.41 billion) totalling about N16.40 billion at the federal level only.
“We have stepped up enforcement activities against task defaulters on different fronts these include placing non-compliance stickers on business premises of tax payers who have back-logged of taxes owed and have not made any move to liquidate such.
“We have adopted substitution as an enforcement tool by putting a lien on the bank account of errand tax payers. This in my view will serve as deterrent to defaulters and consequently increase tax collection.
“FIRS has so far collected over N6 billion and 4.2 million dollars (over N1.4billion) totalling over N7.7 billion. This drive is continuous and will be unrelenting going forward,’’ he said.
Fowler revealed that as from 31st December, 2017, 34 companies will no longer enjoy pioneer status.
Bala Wunti, NNPC Corporate Planning & Strategy in his presentation expressed confidence that the 2.3mbpd oil production and $45 per barrel are possible and that positive results are being yielded by the negotiation between Federal Government and Niger Delta stakeholders.
Nigeria, he said, recorded 18% over-performance in the 2017 crude oil benchmark based on improved dynamics in supply and demand at the international market, just as he expressed regrets over shutting down of major export infrastructure including Trans-Forcados Pipeline.
, Minister of State for Budget & National Planning, Zainab Ahmed, in her speech earlier said total oil production is pegged at 2.51 million barrels per day while budget oil production volume net incremental was pegged at 2.3mbpd; $45 oil benchmark; while exchange rate was pegged at N305/$ for fiscal year 2018.
