Taxation is a necessary burden in Nigeria

Nume Ekeghe

A recent Economic impact survey of United States companies operating in Nigeria has shown that such business interests contributed over N34.4 billion to the nation’s tax revenue in 2016.

The details were contained in a report presented by the American Business Council (ABC) Lagos, titled “Nigeria Economic Impact Survey”.

The report, put together by the ABC in collaboration with Accenture, General Electric and PricewatershouseCoopers (PwC), represented the responses of 48 American companies operating in Nigeria.

The report highlighted the U.S companies’ impact on the Nigerian economy through gross value added to the nation’s energy future, economic output, investment, jobs and communities, remarked Lazarus Angbazo, ABC President.

Angbazo explained further that the aim of the survey was to assess the collective impact of the companies in terms of wealth and job creation in the country.

Also, the Capital Markets Partner, PwC, Mr. Darrell McGraw said: “It is a great time for American companies to be in Nigeria. In fact there is a clear optimism now. This survey reflects the contribution of 48 US companies operating in Nigeria and the responses reinforce the role of US companies in the economic health of Nigeria, Job creation, investment in training and development, tax contribution, corporate social responsibility and others. There are more than 48 companies operating in Nigeria. Let’s talk through some highlight of the survey and discuss the methodology.”

“One of the headline figures that really resonate the net revenue of one trillion naira in 2016, so this was the course of 2017, Oil and Gas revenue generated by these companies represented 18% of Nigeria real GDP in 2016. This is an impressive contribution. The total tax contribution of the US companies operating in Nigeria was over N34 billion in 2016. 34 billion naira contributed in tax collection in Nigeria in 2016, if we look at the percentage of tax collected within the tax net, it is 25% of the tax collected in 2016. We believed it is a significant contribution to the Nigerian Government.”