THE TAXAIDER NEWSLETTER VOL 4, ISSUE 1 (JANUARY 2022)

First Thoughts: Trusting Your Gut

I’ve been there, and I’m sure you have too. You knew something was up, but you didn’t listen to your gut and now you’re regretting it.

Telling yourself that you are “just being paranoid” or “paranoid for no reason” doesn’t help, it only makes you feel worse.

The reality is that your gut is never wrong. Your gut is a completely dependable source of information about what is going on around you. It may not be consciously accessible, but it is always there, assessing what is going on around you. And it knows before your conscious mind does, whether something feels right or not.

The only problem is that your conscious mind – the part of your brain which thinks in words and images can override your gut instinct. But when this happens, it usually means that there are problems in the situation which need to be addressed. The reason why most people don’t trust their instincts is because they don’t know how to sort out what their instincts are telling them from other kinds of thoughts and feelings which might arise in the same situation.

You can learn how to trust your gut instinct. Be spontaneous. Listen to yourself. Your gut instinct will guide you in the right direction, and you should be able to trust it. But what if you can’t? You need to learn how to control it, or else you’ll find yourself making some very big mistakes.

In this issue, we discuss:

  1. Key Highlights Of Nigeria’s Finance Act 2021
  2. Tax Due Diligence: What You Need To Know
  3. Taxation Of Insurance Business: What You Need To Know 
  4. Constituent Entities Resume CBC Reports Filing In Nigeria 

The International Monetary Fund (IMF) has reaffirmed a growth rate of 2.7 percent for Nigeria in 2022. This growth projection is 0.1 percent higher than the 2.6 percent IMF’s forecast in October 2021. IMF disclosed this in its latest World Economic Outlook (WEO) report released. It also raised the 2023 projection from an initial 2.3 percent to 2.7 percent. The World Bank had projected a 2.5 percent growth rate for Nigeria in 2022, owing to the rebound to higher oil prices as well as accelerated growth in telecommunication and financial services. Read more HERE

The monetary policy committee of the Central Bank of Nigeria (CBN) has voted to retain the monetary policy rate (MPR), which measures interest rate, at 11.5 percent. The monetary policy rate (MPR) is the baseline interest rate in an economy, every other interest rate used within an economy is built on the MPR. Read more HERE

The federation accounts allocation committee (FAAC) says it shared N699.824 billion among the three tiers of government for December 2021.  This represents an increase of N23.878 compared to N675.946 disbursed in the previous month.  This was contained in a communiqué issued at the end of a virtual meeting of FAAC for January 2022. 

According to the statement, out of the N699.824 billion shared, the federal government received N279.457 billion, the state governments got N221.190 billion, and the local government councils received N163.879 billion. Read more HERE

The Debt Management Office (DMO) says the country’s January bond issuance valued at N214.05 billion ended with an oversubscription of N139 billion.  It said the auction, which ended on January 19, has a settlement date of January 22, 2022. The agency offered two tranches of bonds worth N75 billion each. According to DMO, it offered a reopened 10-year bond at 12.50 percent and a newly-issued 20-year bond at 13.00 percent. Read more HERE

Please stay tuned to our TaxThursday bulletins, our website, and of course our mobile application, TBook.

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Till Next Time

EK (e.abdulrahman@taxaide.com.ng)

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