Nigeria country report

Economic overview

Real GDP growth was estimated at 2.3% in 2019, possibly higher than 1.9% in 2018. Development was principally in transport, an improved oil area, and data and interchanges innovation. Agribusiness was harmed by inconsistent flooding and by clashes among herders and nearby ranchers. Assembling keeps on experiencing an absence of financing. Last family utilization was the key driver of development in 2019, strengthening its 1.1% commitment to genuine GDP development in 2018. 

The push to bring down swelling to the 6%–9% territory confronted basic and macroeconomic imperatives, including rising food costs and back payments installments, bringing about a rate assessed at 11.3% for 2019. 

With financial incomes underneath 7% of GDP, expanded public spending broadened the shortfall, financed for the most part by getting. Toward the finish of June 2019, absolute public obligation was $83.9 billion—14.6% higher than the prior year. That obligation spoke to 20.1% of GDP, up from 17.5% in 2018. 

Domestic public debt added up to $56.7 billion, and outside open obligation $27.2 billion. The portion of two-sided obligation in all out obligation was assessed at 12.1%, and that of eurobonds at 40.8%. High obligation administration installments, assessed at the greater part of governmentally gathered incomes, made monetary dangers.

Main sectors of industry

Media communications which is a sub-area under the Information and Communication area detailed a 18.1% GDP development rate in the second quarter of it was one of the quickest developing areas in the nation. The area almost multiplied the 9.71% GDP development rate recorded in the primary quarter of 2020. The Telecommunications area incorporates GSM Giants like MTN and Airtel. 

The Financial Institutions sub-area revealed a GDP development pace of 28.41% one of the quickest in the economy. This area incorporates banks and other non-banking money related organizations. The area recorded a 24$ GDP Growth rate in the primary quarter of 2020. 

The wellbeing area which many idea will profit hugely from the Covid-19 Pandemic just revealed a GDP development pace of 1.89% up from 1.06% in the main quarter of the year.

Taxation in Nigeria

Taxes in Nigeria are of two categories: federal taxes and state taxes. Federal taxes include Companies Income Tax, Value Added Tax, Education Tax, etc. State taxes, on the other hand, include Personal Income Tax, Business Premises Tax, Development levy, etc.

Company income tax is chargeable on all companies (other than organizations occupied with oil tasks) enlisted in Nigeria. It is a yearly assessment on the benefits of enlisted organizations, which benefits must gather in, be gotten from, brought into, or got in Nigeria. 

The rate of an organization’s personal duty is fixed at 30% of taxable income. 

ll registered organizations are relied upon to enlist and have a VAT enlistment testament, with their VAT enrollment numbers intensely showed on all solicitations. Despite the fact that organizations don’t pay VAT, they are commanded by the legislature to gather VAT from purchasers, at that point dispatch to the pertinent assessment body. 

Stamp Duty is chargeable as indicated by a scale fixed by the Joint Tax Board. This is tax paid to the administrative or state governments on reports, for example, transports marked down, bills of trade, promissory notes, arrangements, contracts, and so on 

This is a 10% tax imposed on Capital Gains (Profit) emerging from a deal, trade or other aura of properties known as chargeable resources. Capital additions are the benefits that a speculator acknowledges when the individual in question sells the capital resource at a cost that is higher than the purchase price.

Investing in Nigeria

The main reasons to invest in Nigeria include:

  • Largest Economy in Africa
  • Abundant Resources like mineral, agricultural and human resources.
  • Political Stability
  • Free Market Economy thanks to the policies and programmes put in place by the government
  • Attractive incentives for investments
  • Free Flow of Investment
  • Fast Growing Financial Sector
  • Skilled and Low Cost Labour