Business
Don Backs FG’s Planned VAT Increase
Following the planned in
crease in Value Added Tax (VAT) from five per cent to 10 per cent by the Federal Government, a university lecturer, Dr. Steve Wordu, has thrown his weight behind the policy.
Wordu, a sociology lecturer in the University of Port Harcourt who bared his mind while speaking to our correspondent in an exclusive interview in Port Harcourt on Thursday said that Nigeria was an under taxed economy.
He said various sources of taxes were not properly explored in order to generate revenue for the government.
VAT, specifically according to him is taxation on certain services and items that are highly consumed by the elite and rich.
He said since it was an indirect tax on leisure items, the federal government increasing VAT rate from five per cent to 10 per cent “is a good one and a welcome development”.
He said the policy would help to boost the federal revenue and at the same time discourage consumption of certain products and services.
However, he expressed reservations on the mode of collecting the VAT proceeds and how such funds were disbursed.
“But the issue or grouse I have with VAT is on how it is collected and how it is distributed”, he said.
Given that the service providers or hoteliers are the ones that give a check off of the VAT proceeds, Wordu expressed reservations on how prudent these funds are handled.
According to him, the improper supervision of these funds could defeat the purpose of the whole process.
“How it is supervised may also defeat the purpose for which the VAT is collected because service providers can collect the VAT and not remit it accordingly”.
He said in order to checkmate such occurrence, tax officers should be able to ensure that those service providers remit such funds promptly and adequately to wherever it is supposed to be paid into.
Again, he opined that since VAT was collected by the Federal Government, the distribution of the accruing revenue to states should also be looked into.
He described as unreasonable the system where the federal government collects VAT and remits to the states.
Wordu advocated for a reversal of the practice.
“Let states collect VAT and remit to the federal government whatever percentage they should give to the federal government and not the other way round,” he said.
For instance, he explained that some states are not VAT viable yet they would benefit from the federal pool.
“For example, Bornu State where you have Boko Haram, such states cannot generate VAT because the services that are required have been closed.
“Yet they are expected to benefit from VAT whenever it is distributed by the federal government”, he said.
He explained that some states were deliberately killing their economy by ignoring whatever that would generate tax through one guise or the other, even as he said such states were only dependent on oil.
He further said VAT was another form of revenue generation avenue like tourism, so the state of insecurity in some states and laxity in governance of such states have deprived the government of VAT.
Such states, he said do not deserve to benefit from VAT proceeds because it was like reaping where one did not sow.
MoniePoint Inc. a digital financial firm in Nigeria, has said it is empowering community pharmacists across the country with innovative payment solutions to improve access to drugs.
The financial firm said it had also provided loans for pharmacists under the aegis of the Association of Community Pharmacists of Nigeria (ACPN) to drive healthcare delivery in the country.
MoniePoint in a release titled, “Inside Nigeria’s community pharmacies: How Moniepoint drives healthcare access with payments and funding”, has reaffirmed its commitment to providing digital payment solutions to improve health outcomes in Nigeria.
The release examined how community pharmacies play a crucial role as vital access points for medical care in Nigeria, especially in areas with limited hospital or clinic access.
According to the release, the ACPN National Chairman, Ambrose Igwekwam, highlighted the critical role played by community pharmacies in Nigeria’s healthcare system over the years.
Igwekwam, however, expressed concerns over the challenges confronting the nation’s pharmaceutical industry which he said was hindering access to affordable medicines.
The pharmacist listed poor infrastructural systems, power, transportation, regulatory bottlenecks, importation dependency, and limited research opportunities as major challenges facing the pharmaceutical sector.
He also stressed the need for robust collaborative efforts with institutions like Moniepoint to strengthen the sector.
“As Nigeria continues to grow, improving local pharma manufacturing to meet the demands of this growth presents a key opportunity for us all.
“There is also the African Continental Free Trade Area Agreement, which is expected to boost our industry, especially when we start producing our drugs locally, which will provide the much needed foreign exchange from exports.
“We are also seeing advancements in digital health and technology which would hopefully deepen the practice of e-prescription in Nigeria”, the ACPN boss said.
Corlins Walter
In order to enhance customer service and streamline operations, the Chartered Insurance Institute of Nigeria (CIIN) has called on stakeholders in the insurance industry to embrace Artificial Intelligence (AI).
The President of the institute, Yetunde Ilori, made this call at the 2024 Office Representatives Committee (ORC) Workshop, organised by the institute, with the theme “AI and the Future of the Insurance Industry”, in Lagos.
Ilori at the event, emphasised the importance of AI adoption, noting that it was not a threat to jobs but rather a tool to improve efficiency across the insurance sector.
“It is not about AI taking over our jobs, but about us using AI to simplify processes and give maximum satisfaction to all the customers we serve whether as underwriters, brokers, loss adjusters, or in educating our members”, she said.
The workshop, which brought players in the insurance sector together, aimed to address how AI could be leveraged to transform business processes and improve customer interactions.
The Chairman of the ORC, Monica Nwachukwu, underscored the role of AI in modernising the industry, adding, “AI can automate customer and claims processes, allowing insurers to provide faster and more efficient services to their customers”.
She explained how AI could help extract data from legacy systems, enhancing decision-making processes.
“By integrating AI with APIs, insurers can feed valuable data into AI solutions to improve operations and customer service”, she added.
In his address, the Managing Partner of A4S and Training Heights, Orlando Odejide, stressed the need for companies to align their strategies with future technologies like AI, especially as they prepare for 2025.
“Any organisation that wants to grow into the future must have its strategic plan in place. If your strategy for 2025 is not ready, it should be done by October”, he advised.
He encouraged participants to think critically about how AI could be integrated into their business models to ensure they remain competitive.
“The idea is for you to use this workshop as a platform to think about your organization and how AI can help streamline your processes and improve growth”, Odejide noted.
In order to gain global respect and recognition, the National Space Research and Development Agency (NASRDA) has reaffirmed its determination to pursue its goal in ensuring that Nigeria’s space capabilities are recognised on the world stage.
The agency also reaffirmed its commitment to positioning Nigeria as a key player in the global space economy.
In a statement by the Director of Media and Corporate Communications, Dr. Felix Ale, NASRDA revealed that the Director-General of the agency, Matthew Adepoju, emphasised this during recent engagements at the 79th United Nations General Assembly and the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA) and Global Alliance Business Association international conference in Michigan, United States.
The statement noted that Adepoju outlined a forward-thinking agenda, stressing the importance of Nigeria’s space programme as a leader in research, exploration, and technological innovation.
“Our goal is to ensure that Nigeria’s space capabilities are recognised on the world stage.
“We must foster collaborations with global space agencies to enhance our satellite capabilities and technological infrastructure”, he stated.
The NASRDA boss said the agency is focusing on enhancing satellite capabilities, expanding international collaborations, and leveraging space science for national development.
He said NASRDA will have no stone unturned in pursuit of excellence, ensuring the agency secures the necessary resources and recognition to propel it forward.
“The relationships we build today will pave the way for tomorrow’s advancements in space science.
“Innovation and progress thrive in an environment built on collaboration and inclusivity”, he stated.
He emphasised that with the support of the government, international partners, and a dedicated team, NASRDA is poised to make significant strides in the evolving global space landscape.
“We are on the brink of a new era for Nigeria’s space agency. Together, we will ensure our nation stands out in the global space economy”, he said.
Corlins Walter