Taiwo Oyedele, chairman of the presidential fiscal policy and tax reforms committee, says the federal government is working on a system that will provide tax relief to 95 percent of the informal sector.

Oyedele delivered a speech on Sunday during the committee’s last meeting in Abuja.

According to Oyedele, the idea is to free companies with annual revenue of N25 million or less from the different levies that are impeding their development.

‘’So, we think that 95 percent of the informal sector should be legally exempted from all taxes; withholding tax, company income tax, even payee on their staff,” he said.

‘’We’re using data to inform our decisions. Currently, if you earn N25 million a year or less, you don’t have to pay company income tax, you don’t have to worry about VAT.

‘’We think that the informal sector are people who are trying to earn legitimate living, we should allow them to be and support them to grow to a point where they can then have the ability to pay taxes.”

Oyedele said the new reforms being proposed would focus on the top 5 percent of that sector, the middle class, and the elite for taxes.

The tax expert said the committee is drafting the laws to effect the necessary changes in the fiscal policy and tax reform ecosystem of the country.

The new laws, he said, would ensure that reviews become sustained by all governments coming in, adding that “we don’t want this whole effort to go down the drain, after one or two years”.

On compliance, the committee chairman urged

all stakeholders to fully cooperate with the government in implementing a new fiscal and tax policy that would be used for the general good of the citizens.

“We think that the days of being above the law in paying taxes are over. The same thing we’re saying to our leaders, whether they are elected or appointed,” he said.

“We think they have to lead by example by showing that they have paid the taxes, not only on time, but correctly to the lawful authorities as contained in the various laws.”

Oyedele said some of the taxes complained about by Nigerians are those already in the constitution, which the committee has looked at and called for their review.

He said the committee report would be made to pass through the normal process of legislation in order to give it the full legal backing.

“So, our expectation is, as we progress now from ideation, proposal to implementation, you’ll see less and less of those issues and then you’ll see harmony in the direction of the fiscal system,” he said.

‘’Not only in the number of taxes we collect, you will also see an improvement in how those monies are being spent.

Oyedele added that the committee has been working with the sub-nationals and the local government councils in its task of harmonising the taxes into a single-digit system.

“So, we’re convinced, and that’s what the data tells us, that the right path we need to follow is the path where we repeal many of these taxes, harmonise whatever is left,” he said.

“We think we can keep that within single digits across local, state and federal governments combined, and then improve the efficiency of collecting those taxes.

The tax expert said he is convinced that Nigeria needs to increase the threshold of exemption for small businesses, for low income earners “because if they cannot make ends meet, the last thing you want is someone asking you to pay tax”.

• Bribery Allegation Part Of Orchestrated International Campaign To Discredit Nigerian Government – FG

The federal government has accused Binance of blackmail after the company alleged officials demanded $150 million in cryptocurrency payments as a bribe to settle the prosecution of its executives in Nigeria.

The CEO of Binance, Richard Teng, stated on Tuesday that some unidentified individuals in Nigeria have demanded large sums in cryptocurrency in order to “go away” from their troubles in that nation.

Teng’s accusation came after the company’s head of financial crime compliance, Tigran Gambaryan, and regional manager for Africa, Nadeem Anjarwalla, were taken into custody in Nigeria on February 28.

The two executives were detained as part of a probe bordering on Binance’s illegal operations in Nigeria and foreign exchange rate manipulations.

While criminal charges have been filed against Binance and Gambaryan, Anjarwalla fled detention on March 22.

However, Anjarwalla was reportedly arrested by the Kenya Police Service in April and the International Criminal Police Organisation (Interpol) is working towards extraditing him to Nigeria.

In a statement by Rabiu Ibrahim, special assistant to the minister of information and national orientation, the government said the allegation by Binance is an attempt by the cryptocurrency exchange to launder its impaired image as an organisation that does not play by the rules and laws guiding business conduct in sovereign nations.

“In a blog post that has now been published by many international media organisations, in an apparent well-coordinated public relations effort, Binance Chief Executive Officer Richard Teng made false allegations of bribery against unidentified Nigerian government officials who he claimed demanded $150m in cryptocurrency payments to resolve the ongoing criminal investigation against the company,” the ministry said.

“This claim by Binance CEO lacks any iota of substance. It is nothing but a diversionary tactic and an attempted act of blackmail by a company desperate to obfuscate the grievous criminal charges it is facing in Nigeria.

“The facts of this matter remain that Binance is being investigated in Nigeria for allowing its platform to be used for money laundering, terrorism financing, and foreign exchange manipulation through illegal trading.

“While this lawful investigation was going on, an executive of Binance, who was in court-sanctioned protective custody, escaped from Nigeria, and he is now a fugitive from the law. Working with the security agencies in Nigeria, Interpol is currently executing an international arrest warrant on the said fugitive.”

The ministry said the bribery allegation is part of an orchestrated international campaign by Binance to undermine the Nigerian government.

The ministry said Binance is facing criminal prosecution in many countries including the United States.

“Just a week ago, the founder and former CEO of Binance, Changpeng Zhao, was sentenced to prison in the United States, after pleading guilty to charges very similar to what Binance is being investigated for in Nigeria. In addition, Zhao agreed to pay a fine of $50 million, while Binance is liable for $4.3 billion in fines and forfeitures to the US Government,” the government said.

“We would like to remind Binance that it will not clear its name in Nigeria by resorting to fictional claims and mudslinging media campaigns. The only way to resolve its issues will be by submitting itself to unobstructed investigation and judicial due process.”

The ministry said the Nigerian government will continue to act within its laws and international norms and will not succumb to any form of blackmail from any entity, local or foreign.

Central Bank of Nigeria (CBN) has issued a circular, dated May 6, 2024, directing banks to suspend the collection of processing fees on cash deposits until September 30, 2024.

The circular, signed by the Director of Banking Supervision, Adetona Adedeji, was issued in response to concerns raised by bank customers over the collection of processing fees for cash deposits that began on May 1.

Banks were previously required to charge two percent on deposits above NN500,000 for individuals, and two percent on deposits above N3m for corporate account holders.

However, the CBN has now instructed financial and non-financial institutions to suspend these charges until the end of September 2024. This move is expected to ease the financial burden on bank customers and promote cash deposits in the country.

“Please refer to our letter dated December 11, 2023, referenced BSD/DIR/PUB/LAB/016/023 on the above subject, suspending processing charges imposed on cash deposits above N500,000 for Individuals and N3,000,000 for corporates as contained in the “Guide to Charges by Banks, Other Financial Institutions and Non-Bank Financial Institutions” issued on December 20, 2019,” CBN said.

“The Central Bank of Nigeria hereby extends the suspension of the processing fees of two per cent and three per cent previously charged on all cash deposits above these thresholds until September 30, 2024.”

The apex bank directed financial institutions to continue to accept all cash deposits from the public without any charges till the end of the third quarter.