Tax Reduction Designed To Make Nigerian Economy Attractive — Osinbajo


Vice- President Yemi Osinbajo has said the decision of the Federal Government to slash taxes was aimed at making the nation’s economy more attractive to investors.

The Vice President also disclosed that the 2020 Finance Bill is offering more incentives to make doing business in Nigeria more competitive.

Declaring open the third edition of the Nigeria Diaspora Investment Summit held virtually on Friday, Osinbajo said the tax incentives in the proposed 2020 Finance Bill include reduction in duties on tractors from 35 to 10 per cent; reduction in duties on motor vehicles for the transportation of goods from 35 to 10 per cent and reduction of levy on motor vehicles for the transportation of persons (cars) from 35 per cent to 5 per cent.

The theme of the summit is, ‘Post-COVID-19 resurgence: Targeting diaspora investment’.

Others are exemption of small companies from payment of education tax under the Tertiary Education Trust fund particularly by companies with less than N25m turnover; 50 per cent reduction in minimum tax from 0.5 per cent to 0.25 per cent for gross turnover for financial years ending between January 1, 2020 and December 31, 2021; granting of tax relief to companies that donated to the COVID-19 relief fund under the private sector coalition and introduction of software acquisition as qualifying capital allowance.

Commending the contributions of the Nigerian diaspora community in the development of the country, the Vice President noted that “our diaspora is one of our most vital resources, a literarily endless reservoir for talent, trade, investment, tourism, education, culture and sport opportunities.”

He added, “But perhaps, more important is the sheer range of well trained, honed and experienced talents that our diaspora represents. It is that potential not remittances that make our diaspora network an endless source of economic hope and social aspiration.”

Acknowledging the efforts of the Chairman of the Nigerians in Diaspora Commission Abike Dabiri-Erewa, particularly in harnessing the resources and talents of Nigerians abroad, Osinbajo said “the diaspora initiatives that we have, and all of your efforts are certainly appreciated and will result to a stronger economy for Nigeria and a better country.”

In her opening remarks, Dabiri-Erewa said the objective of the summit was to establish a platform where diaspora investors can interact with potential sponsors, partners, collaborators and government agencies with a direct roundtable deals for mutual benefits.

She noted, “The Summit is an avenue to expose the Nigerians in diaspora to key into the following investment sectors: Healthcare, Education, Agribusiness, Creative Entertainment and Sports, Telecommunication, ICT/Fintech and Manufacturing.”

On the benefits of the summit to Nigerians abroad, Dabiri-Erewa said it would strengthen their investment profile, expand the business network, showcase global best practices, provide opportunity to meet key decision makers and industry influencers, brand exposure and many more.

The Summit Coordinator, Dr Badewa Adejugbe-Williams, said she was impressed that participants took time out to participate in the programme despite the differences in time zone.

“This simply shows the resilience of Nigerians in diaspora and at home in seeing a new Nigeria in bringing about national development to their country,” she observed.