October 27, 2022

Banks’ tax remittance to FG up 42% to N124bn

Banking hall

By Peter Egwuatu

Despite the economic headwinds, leading banks in Nigeria paid N124 billion as tax in the first half of 2022, H1’22, representing an increase of  41.9 percent against N87.547 billion in the corresponding period of  2021, H1’21.

The tax figure also represents 17.7 percent of the bank’s Profit Before Tax, PBT, declared in HI’22 as against 14.7 percent in H1’21.

The PBT of the banks rose 18.4 percent to N703.64 billion in H1’22 against N594.303 billion in H1’21.

Findings by Vanguard show that Tier-1 banks accounted for 62.7 per cent of the total tax paid to the Federal Government in H1’22 as against 66.13 per cent in H1’21.

Details of individual bank’s tax figure show that Guaranty Trust Bank led with N25.692 billon followed by Zenith Bank with N18.592 billion and UBA with N15.415 billion. The other tier-1 banks, First Bank and Access paid N 9.121 billion and N 9.052 billion respectively.

Meanwhile, the Federal Government received N1.09 trillion from indirect taxes in the H1’22, according to data from the National Bureau of Statistics.

This represents a 10.29 per cent increase from N984.33billion collected in the corresponding period of 2021.

Indirect taxes are calculated based on current basic prices. They are taxes paid to the government by a producer or retailer and later passed on to the consumer. They include value-added taxes, customs or import duties, among others. 

NPA blames obsolete processing system for Apapa traffic, embraces tech

By Godwin Oritse

THE Nigerian Port Authority, NPA, yesterday, blamed the perennial gridlock on the Apapa port corridor on the obsolete cargo processing and clearing system introduced over 50 years ago.

Speaking at the 55th Session of the State House Briefing, the Managing Director and Chief Executive Officer of NPA, Mohammed Bello Koko, noted that the Tin Can and Apapa ports were built in the 1970s with a manual processing system which consequently caused gridlock in the axis as Lagos State population grew.

He said, however, that technology has now been introduced into the system, adding that such processes will be replicated in the Lekki Port and other ports across the country.

He stated: “The current and existing ports of Tin-Can and Apapa’s problem are that these ports were built in the 1970s and the city has caught up with those ports and that is why we have perennial traffic and gridlock.

‘‘We used to have manual manifest of trucks movements into the ports. The two ports handle, approximately, 1500 truck movements daily. We entered into partnership with truck Transit Park and an electronic call-up system which we named ‘Eto’ (Yoruba name for orderliness), was introduced resulting in relative easing in the traffic situation in the Lagos ports.

“With the result of this, we are trying to deploy it to other port locations. We will deploy to Lekki and other port locations. What we have done is to ask the private sector to set up truck parks. Through that, the system has created employment and also added value. We are also sure that by the time the road construction, especially the one leading to Tin Can, are done things will get better.”