The Downward Spiral and the Glimpse of hope.
So early last week, we had the official confirmation that Nigeria had sunk into recession yet again, the second one in five years. This was courtesy of the nation’s GDP contracting by 3.6 percent in Q3 2020 after shrinking by 6.1 percent in the previous quarter. According to the International Monetary Fund (IMF)’s forecast, the Nigerian economy will contract by 4.3 per cent this year, which would be the largest contraction in nearly 40 years. What a year it has been!
Sometimes, I want to just wish 2020 away with a wave of my hand or perhaps just hit the reset or rewind button and rewrite the entire year the way I and millions of people in Nigeria and all over the world had hoped it would be. Alas, 2020 is gradually winding to a halt and 2021 beckons. Officially, in 36 days, this ‘one year of a kind’ would be history and we would be able to heave a sigh of relief as we look forward to what 2021 has to offer. If you ask me, this feeling would at best be termed wishful thinking especially considering the new year would simply pick up from where the previous one left off. You can’t expect an overnight miracle or some imaginary wind that would just blow away all the troubles of 2020 and usher in Eldorado in 2021. If any soothsayer told you that, you need to go collect your money back and maybe with some interest for that level of deception.
The change we desire begins with putting the right plans in place. Your expectations for the new year would and should be a function of the plans you have put in place just before the year begins. This is applicable on all levels – personal, corporate, government and what have you. My message to you is clear. What do you plan to do with the next 36 days that would decide how your 2021 is going to be? Are you going to allow the recession swallow you up too and hang with all the naysayers who complain, or you would simply rise above this sad reality and create your own reality? Truth is, a lot of people actually do thrive in recessions and that could be your story. How do you want to tell it? I rest here!
In this Issue:
- We look at the subject of automation of tax assessments in ‘Tax Assessment in Nigeria: The Automation Way’. It is indeed a must-read.
- We take a look at the Internally Generated Revenue by State Governments in Nigeria in the first half of 2020 (H1 2020) considering the realities of the Covid-19 pandemic. You can see the full story on our blog here.
- You could also read up our previous posts on How To Avoid the Cost of Non-compliance of taxes in 2021 here.
- We also review the performance of Nigeria’s sectors in Value Added Tax (VAT) remittances in Q3 2020. Read more here.
- We also report that the Federal Inland Revenue Service (FIRS) has generated N4.178 trillion in 10 months. Read more here.
- In a rather interesting development, the Federal Government is considering an income tax exemption for minimum wage earners. Read more here.
- The Government Explains Target of Its Economic Response to Covid-19. Read more here.
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Please don’t forget to follow us on Social Media. You can find us on Twitter, Facebook, Instagram and LinkedIn. We appreciate your feedbacks as usual. Please continue to send them. Feel free to read more of our publications on our website. You can email us on intelandcomms@localhost or if you prefer, call us on 0700TAXAIDE.
Till Next Time