The Federal Executive Council (FEC) has approved the signing of Double Taxation Avoidance Agreements between Nigeria and Ghana, Tanzania and Switzerland, in a move aimed at easing cross-border business and attracting more investment into the country. Finance Minister and Coordinating Minister of the Economy, Taiwo Oyedele, disclosed the approval after the FEC meeting in Abuja, saying the agreements would prevent businesses and investors from being taxed twice on the same income.
According to Oyedele, the treaties are expected to make it easier for Nigerian businesses to expand into the three countries while creating a more attractive environment for foreign investors looking at Nigeria. He said the Federal Government was working to build a stronger network of tax agreements, noting that Nigeria must remain competitive with other African economies. South Africa, he added, has more than 60 such agreements.
Beyond the tax agreements, FEC also approved a $1.25 billion financing facility from the International Development Association and the International Bank for Reconstruction and Development to support Nigeria’s Investment and Jobs Acceleration Development Policy Financing programme. Oyedele said the concessional facility, which has a repayment period of about 30 years, would be channelled towards accelerating investment and employment creation as the government continues its push to strengthen the economy.
The council also turned its attention to a growing concern within the Federal Government’s administrative and financial systems after the Independent Corrupt Practices and Other Related Offences Commission (ICPC) uncovered additional fictitious government agencies. President Bola Tinubu has ordered a comprehensive forensic review of government administrative, accounting and payroll systems to determine how a fake body, identified as the Presidential Foreign Intervention Promotion Council, managed to obtain an office, administrative code and Treasury Single Account code. Officials said no government funds were ultimately paid into the accounts linked to the fictitious agency.
The investigation will also examine the Integrated Personnel and Payroll Information System (IPPIS) amid concerns that fake agencies could potentially be linked to fictitious employees on the government payroll. Information Minister Mohammed Idris said at least two additional fake agencies were identified during the ICPC investigation, prompting the government to broaden its review. The government says the exercise will identify weaknesses, close loopholes and strengthen financial and administrative controls, while ensuring that scarce public resources are directed to legitimate government programmes and workers.
source: The nation
