Saturday, May 26, 2018 08:00 AM / Proshare Content
Nigeria: Economic Dashboard @ 250518
From the Editor’s Desk
The Federal Government on several occasions has reiterated its intention to bolster revenue generation by increasing indirect taxes; especially propping value added tax’s from 6% to 19%. Thus, we take a cursory look at indirect tax’s to gross domestic product coupled with its linkage to the end value of GDP both in current and basic prices. It should be noted that value added tax’s is also used as a medium for redistributing income and gauging consumption.
Net indirect tax deducted from GDP at constant (market adjusted) price fell from N221.12 billion to N138.13 billion, reflective of 60% fall in net indirect taxes at constant prices compare to the previous quarter. In the same vein, the value of net indirect tax’s at current price at the end of the first quarter of 2018 also dipped from N372.63 billion to N244.14 billion, implying a 53% decline compare to the previous quarter.
Fig 1: Indirect Taxes
The slump in the value of GDP at both conduits was largely responsible for the decline in indirect tax’s in Naira terms. Pinpointing to the limitation experienced by indirect tax’s whereby valuation to GDP slipped as the amount cave inwards. Even though price movement has been relatively favorable, seasonal and structural factors held it back.
Therefore it was time indirect taxes to GDP fell from 1.19% in the last quarter of 2017, to 0.85% as at the end of the last quarter of 2018.
According to the National Bureau of Statistics, the total amount disbursed by the Federation Account Allocation Committee for April 2018 stood at N638 billion, reflective of a 1.31% fall compared to the previous month. This reflects a second slip in the year 2018. Based on records available, total revenue from FAAC in 2018 stood at N2.567 trillion, reflective of a 35% increase in revenue compared to a year ago. Such improvement hinges largely on improved oil price and increase oil production.
Fig 2: FAAC April 2018
Revenue stream from statutory account for the same period stood at N480.95 billion, making it 13% fall in revenue from the statutory account; thus, largely responsible for the fall in FAAC for the same period. Value added tax’s also slipped from N89 billion in March to N83.7 billion. Therefore, revenue collected from Value added tax’s so far stands at N353.61 billion, which implies a 17% increase compared to 2017.
However, N65.7 billion was generated from foreign exchange equalization which contributed for the second time to FAAC for the year, while refunds from the Nigerian National Petroleum Corporation (NNPC) accounted for N11.27 billion to FAAC.
News Post: FAAC Disburses N638.09bn in April 2018 - NBS
Monday, May 28, 2018
The Central Securities Clearing System Plc (CSCS) Annual General Meeting (AGM) will take place this day in Lagos. Chemicals and Allied Products (CAP) Plc will be marked by the NSE; having declared a dividend of N2.05 in the preceding week.
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Tuesday, May 29, 2018
The TechPoint Inspired Conference and the Kedari Foundation Panel Discussion on “Accountability – A Success Booster in the WorkPlace” will take place this day in Lagos
Wednesday, May 30, 2018
The Diipsolution Africa Mining Exhibition and Award (DAMEA) is scheduled to commence in Lagos this day, while the Binkabi Meetup with its Chief Economist, Dr. Andrew S. Nevin and CEO, Quan Le takes place in Lagos.
The Home Advantage Africa Conference with the theme “Africa for Africans” will hold this day in Abuja, while International Breweries Plc Annual General Meeting (AGM) takes place in Imo State.
Thursday, May 31, 2018
The Institute of Chartered Accountants of Nigeria (ICAN), May & Baker Nigeria Plc and the Tourist Company of Nigeria Plc’s Annual General Meeting is scheduled to hold this day in Lagos.
The Nigerian American Chamber of Commerce (NACC) Leadership Development & Team Building Training will take place this day in Lagos, while the Future Project hosts the Nigerian Symposium for Young and Emerging leaders on the same day.
The Institute Of Directors (IoD) Advocacy Round Table Programme on Infrastructure will take place today in Lagos with the theme “Filling the Infrastructure Gap”.
Friday, June 1, 2018
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