The mining sector has been in existence in Nigeria as far back as the 1900s, and in the past was a major revenue source for the Nigerian government. By the 1940s, Nigeria was a major producer of tin, columbite and coal and it was not until the discovery of oil in 1956 that the development of the sector regressed, as government and other stakeholders in the industry began focusing on the new resource.
Mining activities before 2007 in Nigeria were carried out in accordance with the provisions of the Federal Minerals and Mining Act (FMMA) of 1999. In 2007, the Nigerian Mining and Minerals Act (NMMA) was enacted, repealing the FMMA of 1999, for the purpose of regulating the exploration and exploitation of minerals in Nigeria.
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Finance Act (2020): Fallacies in FIRS’ new powers over SMEs
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By Innocent Okwuosa
IT is no longer news that the Finance Act (2020), which was signed into law on December 31, 2020 by President Muhammadu Buhari, came into effect on January 1, 2021. What is trending news now, is the realisation that the Act may have introduced about 80 changes to 14 different laws that will affect Nigerians in their different economic endeavours.
These changes, according to commentators, will affect individuals when it comes to the tax they pay, be it income tax or VAT on purchases. The changes will affect big companies as well as small companies. Being an accountant, I am interested in FIRS and the prescription of alternative accounts for small and medium entreprises, SMEs.
A. OVERVIEW
President Muhammadu Buhari signed the Finance Act 2020 into law
on December 31, 2020. The new legislation followed hot on the heels
of the Finance Act 2019
1 which amended several tax
statutes. The Finance Act 2020 was enacted in furtherance of the
Federal Government s progressive reform of the business climate
in Nigeria, and the need to constantly restructure the tax system
to align and conform same with international best practices, and
make it respond effectively to the changing socio-economic
landscape.
Specifically, the Finance Act 2020 amended fourteen (14)
principal tax and tax-related legislation. The thrust of the
legislation includes boosting government revenue, preventing base
erosion, streamlining areas of regulatory conflict and clarifying
Oil Producing Trade Section (OPTS), comprising 30 indigenous and international members operating about 90% of the total oil and gas production in Nigeria yesterday saihd the Petroleum Industry Bill, PIB would stifle their businesses and the growth of the Petroleum sector.
The Chairman of OPTS, Mike Sangster who spoke on behalf of the group at the beginning of the two day public hearing on the PIB organized by the ad-hoc Commitee of the House of Representatives said that some aspects of the bill were inimical to future investments.
Titled “A Bill for an act to provide legal, governance, regulatory and fiscal framework for the Nigerian petroleum industry, the development of host community and for related matters”, the proposed piece of legislation is chiefly seeking to scrap the Petroleum Equalisation Fund (PEF) and Petroleum Products Pricing Regulatory Agency (PPPRA) and replace them with a new agency to be called Nigerian Midstream and Downstream Regulatory Author
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It is no longer news that President Muhammadu Buhari signed the
Finance Act 2020 (FA20) into law on 31 December 2020 alongside the
2021 National Budget. The FA20 brought about several amendments to
14 Nigerian tax and fiscal legislations in fulfillment of the
Buhari administration s promise of ongoing tax and fiscal
reforms.
A notable amendment to the Companies Income Tax Act (CITA) is
the amendment of Section 33 which provides for the minimum tax
regime applicable to companies in Nigeria. In this article, we will
be examining the minimum tax regime prior to the enactment of the