On Wednesday, Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy, Tax Reforms, disclosed that the federal government is poised to present an “Emergency Economic Intervention Bill” to the National Assembly for deliberation and approval.
Speaking at the MTN Capital Market Day in Abuja, held at the Transcorp Hilton, Oyedele focused on tax reforms affecting the telecom sector. He stated, “We currently have a draft of the Emergency Economic Intervention Bill, designed to amend various laws, including those governing the payment of taxes and levies in foreign currencies such as Dollars.”
The proposed bill is expected to impact taxes like Petroleum Profits Tax and Companies Income Tax for foreign organizations. Oyedele emphasized the significant financial scope of these changes, estimating annual figures in the range of $3 billion to $3.5 billion.
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Oyedele also shared insights into ongoing amendments to Nigeria’s Constitution, aiming to link shared revenues with the responsibilities of the various tiers of government. He underscored the need for accountability in relation to the tasks performed by each tier.
Responding to queries about unclaimed dividends, Oyedele suggested utilizing these funds to boost the capital market, thereby fostering economic development. However, he acknowledged that the matter is still under discussion.
Addressing the growth of Micro, Small, and Medium Enterprises (MSMEs), Oyedele urged investors to advocate for the removal of disincentives to investment. He stressed that eliminating these obstacles would not only save the private sector from complexities but also generate substantial economic gains without costing the government.
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Highlighting quick wins within the ongoing tax reform, Oyedele assured that the President is actively implementing some of the recommended changes. The Presidential Tax Reforms team is scheduled to engage with the Federal Executive Council (FEC) in the upcoming week to discuss further measures for expeditious implementation.
Olutokun Toriola, the CEO of MTN Nigeria, shared the company’s successes, emphasizing its status as the largest telecom market in Africa with over 200 million subscribers and a penetration rate of approximately 43%. Despite economic challenges, MTN has maintained robust commercial momentum, with data revenue surpassing N749 billion, driven by increased demand supported by expanded 4G and 5G network coverage. Toriola affirmed MTN’s leading position in providing communication services in Nigeria, projecting long-term growth.
