Finance
Tinubu chairs steering committee for Digital Free Zones for Global Tech, Finance
The Federal Government has launched an initiative to establish Digital Free Zones in the country to position Nigeria as a hub for global digital trade and innovation.
President Bola Ahmed Tinubu is the chairman of the steering committee that has been inaugurated to oversee the establishment of the digital free zones.
The digital free zones is designed to attract and support tech, finance and service-oriented businesses, in a conducive environment tailored to the 21st-century digital trade and technological age.
According to a statement by
Director of Information and Public Relations Mohammed Manga, the steering committee includes the Honourable Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun as Vice Chairman, as well as other key government officials such as the Attorney General of the Federation and Minister of Justice, Prince Lateef Olasunkanmi Fagbemi SAN; the Honourable Ministers of Communications, Innovation and Digital Economy, Dr Bosun Tijani; Industry, Trade and Investment, Dr Doris Uzoka-Anite; Interior, Mr Olubunmi Tunji-Ojo; and the heads of relevant government agencies.
The statement explained that the Initiative for the Promotion of Digital Free Zones in Nigeria (DiFZIN) serves as the private-sector stakeholders’ representative and technical advisers on the committee. “DiFZIN, a non-profit advocacy and policy research organisation, is supported by a consortium of private sector development-focused and advisory institutions, including Africa Finance Corporation, PwC Nigeria, Charter Cities Institute, Future Africa, and Itana.
“The mission is to develop Nigeria’s free zones ecosystem into Africa’s primary hub for global technology, finance and service businesses.
“The committee will collaborate with relevant government agencies and private stakeholders to update Nigeria’s free zone policies and 30-year-old regulatory framework, technology and processes to align with global standards.
“This includes developing and publishing policy and operational frameworks to enable qualified global and local technology, finance and services-based businesses to establish Pan-African or global operations from Nigeria.”
Manga indicated that businesses operating within the zones will benefit from modernized free zone regulations, including tax, banking, and immigration incentives, simplified government compliance processes, and a stable regulatory environment.
“The strategic goals include boosting foreign direct investment, creating employment opportunities, and facilitating foreign exchange inflow through an innovative approach to the free zones ecosystem.
“The establishment of Itana, Africa’s first digital free zone management company, registered and licensed by NEPZA, underscores the Federal Government’s commitment to creating an enabling environment for global technology, finance and services-based businesses.”
Edun noted that “The pivotal role of free zones in catalysing and sustaining economic growth in Nigeria cannot be overemphasized.
“In this digital age, we must integrate technology-focused businesses to attract investments and showcase our domestic talents under a liberal regulatory framework.” The Government, he added, “aims to deliver these benefits through the digital free zones.”
In his remarks, the Minister of Communications, Innovation and Digital Economy, Dr Bosun Tijani stated that “As we embrace the concept of digital free zones in Nigeria, we are presented with a unique opportunity to drive local domiciliation of global technology companies to boost skills development and job creation in innovation and technology, and contribute to the local economy.
“An ecosystem tailored to fostering innovation, knowledge and skills development, and improved digital infrastructure is crucial for harnessing the potential of Nigeria’s digital economy.”
Dr. Olufemi Ogunyemi, MD/CEO of NEPZA assured that “NEPZA is committed to digital transformation through initiatives like the e-NEPZA platform, which will streamline government services and comply with the Federal Government’s ease of doing business policy. We look forward to partnering with DiFZIN to advance our digital processes.”
Also speaking, Mr. Luqman Edu, Executive Director of DiFZIN and CEO of Itana reiterated that “DiFZIN is committed to driving regulatory reforms in taxation, banking, immigration, and ease of doing business within the free zones ecosystem. Our goal is to create a conducive environment for global technology, finance and services-based businesses, positioning Nigeria as a hub for Africa, akin to Delaware for the US and Dubai for Asia.”
Mr Banji Fehintola, Executive Director and Head of Financial Services at AFC, informed that “AFC’s advisory team is skilled in providing tailored financial and technical advice across Africa. We look forward to collaborating with DiFZIN to modernize Nigeria’s free trade zones, attract investment, create jobs, and boost trade and commerce in Nigeria and Africa.”
“Digital Free Zones will leverage cutting-edge technologies like AI and Edge Computing, fostering an environment for innovation, job creation and economic expansion.
“These ecosystems will support business growth and competitiveness through a supportive regulatory framework, facilitating the seamless integration of emerging technologies into business operations.
The Federation Account Allocation Committee (FAAC) has distributed a total of N1.411 trillion to the federal, state, and local governments for October 2024.
This was announced at FAAC’s November meeting held in Bauchi, chaired by the Accountant General of the Federation, Dr. Mrs. Oluwatoyin S. Madein.
Director of Information and Public Relations, Mohammed Manga in a statement issued on Wednesday indicated that the disbursed amount was drawn from a gross total revenue of N2.668 trillion, comprising Gross Statutory Revenue, Value Added Tax (VAT), Electronic Money Transfer Levy (EMTL), and Exchange Difference (ED).
From the stated amount inclusive of Gross Statutory Revenue, Value Added Tax (VAT), Electronic Money Transfer Levy (EMTL), Exchange Difference (ED, the Federal Government received N433.021b, the States received N490.696b, the Local Government Councils got N355.621b , while the Oil Producing States received N132.404b as Derivation, (13% of Mineral Revenue).
The sum of N97.517b was given for the cost of collection, while N1.159trn was allocated for Transfers Intervention and Refunds.
The Communique issued by the Federation Account Allocation Committee (FAAC) at the end of the meeting indicated that the Gross Revenue available from the Value Added Tax (VAT) for the month of October 2024, was N668.291b as against N583.676b distributed in the preceding month, resulting in an increase of N84.616b.
From that amount, the sum of N26.732b was allocated for the cost of collection and the sum of N19.247b given for Transfers, Intervention and Refunds. The remaining sum of N622.312b was distributed to the three tiers of government, of which the Federal Government got N93.347b, the States received N311.156b and Local Government Councils got N217.809b.
Accordingly, the Gross Statutory Revenue of N1.336trn received for the month was higher than the sum of N1.043trn received in the previous month by N293.009b. From the stated amount, the sum of N70.072b was allocated for the cost of collection and a total sum of N1.060trn for Transfers, Intervention and Refunds.
The remaining balance of N206.319b was distributed as follows to the three tiers of government: Federal Government got the sum of N77.562b, States received N39.341b, the sum of N30.330b was allocated to LGCs and N59.086b was given to Derivation Revenue (13% Mineral producing States).
Also, the sum of N17.824b from Electronic Money Transfer Levy (EMTL) was distributed to the three (3) tiers of government as follows: the Federal Government received N2.567b , States got N8.555b, Local Government Councils received N5.989 Billion, while N0.713b was allocated for Cost of Collection.
The Communique also disclosed the sum of N646.000b from Exchange Difference, which was shared as follows: Federal Government received N259.545b, States got N131.644b, the sum of N101.493 Billion was allocated to Local Government Councils, N73.318b was given for Derivation (13% of Mineral Revenue), while the sum of N80.000b was allocated to Transfers, Interventions and Refunds.
Oil and Royalty, Excise Duty, Value Added Tax (VAT) Import Duty, Petroleum Profit Tax (PPT) and Companies Income Tax (CIT) increased significantly, while, Electronic Money Transfer Levy ( EMTL) and CET Levies decreased considerably.
According to the Communique, the total revenue distributable for the current month of October 2024, was drawn from Statutory Revenue of N206.319 Billion, Value Added Tax (VAT) of N622.312b, N17.111b from Electronic Money Transfer Levy (EMTL), and N566.000b from Exchange Difference, bringing the total distributable amount for the month to N1.411trn
In a bid to steer Nigeria’s economic recovery, the Federation Account Allocation Committee (FAAC) gathered in Bauchi for the 2024 National Council on Finance and Economic Development (NACOFED) Conference.
With the theme “Fostering Economic Growth in Challenging Times: Strategies for Policies and Partnership for Fiscal Sustainability and National Development,” the event drew policymakers and stakeholders to discuss strategies for fiscal sustainability and development.
Director of Information and Public Relations, Mohammed Manga in a statement on Monday quoted the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, to have emphasized the government’s dedication to refocusing resources on vital sectors like infrastructure, education, healthcare, and social services.
These he sais are aimed to reduce poverty and uplift Nigerians as part of President Bola Tinubu’s Renewed Hope Agenda.
He highlighted direct support programs, such as biometric-based payments for vulnerable households, to mitigate the effects of ongoing reforms.
Bauchi State Governor Senator Bala Mohammed praised the Federal Government’s vision, emphasizing the importance of unity in achieving sustainable development. Discussions centered on forging partnerships across government levels and with the private sector to spur job creation and economic resilience.
The conference concluded with FAAC delegates committed to implementing strategies for Nigeria’s economic revival, underscoring the power of collaboration for national progress.
Minister of Finance and Coordinating Minister of the Economy, Wale Edu, defended Nigeria’s recent economic reforms, particularly the adoption of market-driven exchange rates and the sale of crude oil in Naira.
Speaking at an interactive session with the Senate Committee on Finance, Edu highlighted the positive outcomes, especially in terms of increased government revenue.
Edu acknowledged the challenges faced in implementing the reforms but emphasized that the country is already beginning to experience the benefits.
According to him, he said the sales of crude oil in Naira, initiated by President Bola Tinubu, has been particularly impactful, contributing to a stronger domestic financial environment.
Edu’s remarks reflect a broader effort by the government to enhance fiscal management and ensure the long-term sustainability of the nation’s economic policies.
Chairman of the Senate Committee on Finance, Senator Sani Musa, stated that the session was convened to assess the effects of these reforms on the Medium Term Expenditure Framework (MTEF) and the Fiscal Strategy Paper for 2024-2026.
He said It also aimed to address concerns about shortfalls in revenue remittances from the Nigerian National Petroleum Corporation Limited (NNPCL), particularly regarding the foreign and domestic excess crude accounts.
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