Welcome, Guest: Register On Nairaland / LOGIN! / Trending / Recent / New
Stats: 3,183,462 members, 7,920,766 topics. Date: Wednesday, 14 August 2024 at 12:20 PM

50 Naira Wise, Billion Naira Foolish!, By Reno Omokri - Politics - Nairaland

Nairaland Forum / Nairaland / General / Politics / 50 Naira Wise, Billion Naira Foolish!, By Reno Omokri (1261 Views)

The Real Meaning Of NNPC And DSS By Reno Omokri / Facts Versus Fiction By Reno Omokri: Excerpts / Now That Stephanie Otobo's Mother Has Exposed Her Daughter By Reno Omokri (2) (3) (4)

(1) (Reply) (Go Down)

50 Naira Wise, Billion Naira Foolish!, By Reno Omokri by OKDnigeria: 1:29pm On Feb 01, 2016
The tail end of 2015 already gave
discerning Nigerians a sign that the
coming year would be challenging and
many citizens expected the introduction
of policies that would help ameliorate the
difficulties of these austere times and the
President Muhammadu Buhari led
administration did not disappoint them.


Commendably, the government reduced
the price of Premium Motor Spirit by 50
kobo.


The benefits of this sort of humane
gesture from the Federal Government
however seems to have been soured by
the announcement by the Central Bank of
Nigeria that it would be implementing a
stamp duty policy.


The reason the Central Bank of Nigeria
introduced the cashless policy now in
place was because over 50 percent of the
Nigerian population is unbanked.


The policy was meant to attract the
unbanked population to bring their
money into the banking sector and
thereby increase the capital available to
banks to grow the economy and also
reduce corruption and crime by having an
electronic trail of all financial
transactions.


But with the implementation of the ₦50
stamp duty charge, whereby ₦50 is
assessed as tax out of a deposit of ₦1000,
the Central Bank of Nigeria will end up
driving people away from the formal
banking sector which will negate the gains
of the cashless policy.


If an average Nigerian earning a minimum
wage considers that a ₦1000 deposit into
his account by a friend will leave him
with only ₦950, it only makes sense that
he will have a higher incentive to leave
the banking sector and keep his money at
home.


This action will have three consequences.
The first is that the amount of money
available in the banking sector will reduce
as people pull out funds from Nigerian
banks to keep at home or possibly to
open accounts in neighbouring nations.


The second consequence is that
incidences of crime and corruption will
increase as people keep more cash at
home where it cannot be traced, rather
than in banks where it can be traced.


The final consequence is that our real
Gross Domestic Product (GDP) will shrink
because money will flow from the formal
sector to the informal sector, thus making
it impossible to accurately measure our
real GDP.



In my opinion, the solution to this will be
to adjust the stamp duty policy to make it
applicable to only people who maintain a
particular balance so that it does not
affect low and middle income earners.



A person who maintains a balance of
more than a million Naira will be better
able to afford such a tax and will have
less incentive to leave the banking sector
than a low income earner with a few
thousands of Naira.


I know that the economy is facing some
challenges and there is the need to
diversify our revenue base, however, in
trying to do that, we should not be ₦50
smart and a billion Naira foolish!


These are challenging times for Nigeria’s
economy and such times need a steady
hand at the helm; one that will not panic.


Thankfully, President Muhammadu
Buhari has shown that he has resolve. It is
now left for those around him to bring to
his attention the unintended
consequences that will (not may) occur if
this policy is continued.


I have read people on both sides of the
divide argue this matter on social media.
Some argue that the law allowing this
policy preceded the Buhari administration
and as such no one should blame him.
That kind of thinking really saps one’s
energy. Must everything be reduced to
who to blame?


When your house is on fire, your focus
should not be on who to blame but on
who can put out the fire. There is plenty
of time for blame games later.
If the house is burnt down, of what profit
will it be to argue about whether it was
painted white or black?


Nigeria does not need panic measures,
rather she needs tonic measures! A tonic
is a supplement given to someone who
has been experiencing weakness in an
area in which he or she had once
experienced strength for the purpose of
rejuvenating that person.


To the opposition I say that I supported
ex-President Goodluck Ebele Jonathan
during the 2011 elections and I am
convinced that he was and is still the best
choice. But Nigerians preferred President
Muhammadu Buhari and he is now my
president; I accept his leadership and I
will do everything I can to help him
succeed. We must all wish him well.


We should not speak negatively about
President Buhari or of Nigeria under his
leadership. Can we speak negatively
about our nation and at the same time
pray positively about ourselves? Can we
prosper in our home after cursing it with
your mouth?


blogs.premiumtimesng.com/?p=170856
Re: 50 Naira Wise, Billion Naira Foolish!, By Reno Omokri by collinsVP: 1:30pm On Feb 01, 2016
This is absolutely on point. There are more subtle ways to generate revenue, devoid of backlash as encapsulated in the above article.

VAT could have been more appropriate because, it leaves one with no option of opting out, especially when imposed on goods that have high demand, but not necessarily essential goods. Invariably people hardly realize they pay this kind of tax.

arguably on the other hand, #50 duty on cash, deposits amounts to double taxation to the best of my knowledge, and there should be a rethink.

1 Like

Re: 50 Naira Wise, Billion Naira Foolish!, By Reno Omokri by TippyTop(m): 1:32pm On Feb 01, 2016
But with the implementation of the ₦50
stamp duty charge, whereby ₦50 is
assessed as tax out of a deposit of ₦1000,
the Central Bank of Nigeria will end up
driving people away from the formal
banking sector which will negate the gains
of the cashless policy.
Re: 50 Naira Wise, Billion Naira Foolish!, By Reno Omokri by PoliticalThuG(m): 1:32pm On Feb 01, 2016
...Buhari is busy chasing thieves without knwing that he himself is a thief stealing 50 naira from every nigerian that has a bank account...

2 Likes

Re: 50 Naira Wise, Billion Naira Foolish!, By Reno Omokri by thaoriginator: 1:33pm On Feb 01, 2016
Jah jah nuh fi judge yuh fi di cloth weh you wear..
Re: 50 Naira Wise, Billion Naira Foolish!, By Reno Omokri by huntila(m): 1:35pm On Feb 01, 2016
Yes. Money that were traced before through transfer would not be seen . It will encourage more cash in the system.
Why do we have inconsistent policies?
Re: 50 Naira Wise, Billion Naira Foolish!, By Reno Omokri by obasiken: 1:41pm On Feb 01, 2016
Raising Taxes is a slippery slope for any right thinking government. There are many other ways to fund the budget. Govt has to think out of the box. Let them start from reducing recurrent expenditure in Federal budget.

1 Like

Re: 50 Naira Wise, Billion Naira Foolish!, By Reno Omokri by feldido(m): 1:55pm On Feb 01, 2016
Everything about Buhari is Archaic

2 Likes

Re: 50 Naira Wise, Billion Naira Foolish!, By Reno Omokri by Pidggin(f): 2:00pm On Feb 01, 2016
He who lacks education will suffer from the consequence of ignorance

1 Like

Re: 50 Naira Wise, Billion Naira Foolish!, By Reno Omokri by daniska3yaro(m): 2:05pm On Feb 01, 2016
Hmm
Re: 50 Naira Wise, Billion Naira Foolish!, By Reno Omokri by OLADD: 2:40pm On Feb 01, 2016
Omokri, nobody derives pleasure in negative criticism of Buhari or his govt but available facts indicate a man who's pitiably lost and bereft of ideas on how to positively turn Nigeria around without inflicting more pains. Virtually all his policies are infested with economic anguish and stings. From increase in Electricity Tariff without commensurate meter availability and distribution, ban on dollar dominated debit cards with its attendant diaspora wailings, restrictions on BDC operations without virile alternative forex mkt, removal of subsidy on Kerosene(the common man source of energy) without sustainable palliatives, proposed reintroduction of toll fees, lopsided and selective "fight against corruption", to technically defective anti-insurgency drive, nothing suggests either Buhari or APC has a well-crafted clue on revamping the nation's economy or solve its myriad of political, sociocultural and security challenges. Not all Nigerians are good in despicable praise singing. We either call a spade by its name or live in foolery perpetually. As for me, I'll rather choose the former

3 Likes 1 Share

Re: 50 Naira Wise, Billion Naira Foolish!, By Reno Omokri by biafranbaby(m): 2:47pm On Feb 01, 2016
collinsVP:
This is absolutely on point. There are more subtle ways to generate revenue, devoid of backlash as encapsulated in the above article.

VAT could have been more appropriate because, it leaves one with no option of opting out, especially when imposed on goods that have high demand, but not necessarily essential goods. Invariably people hardly realize they pay this kind of tax.

arguably on the other hand, #50 duty on cash, deposits amounts to double taxation to the best of my knowledge, and there should be a rethink.


Please, how do you collect VAT from gala seller?
Re: 50 Naira Wise, Billion Naira Foolish!, By Reno Omokri by ochilikoko(m): 2:49pm On Feb 01, 2016
All the FG special advisers should be arrested and probed asap. They have fail to live upto expectation. I pity Osibanjo whose image will be drawn to d mud.
Re: 50 Naira Wise, Billion Naira Foolish!, By Reno Omokri by Nobody: 2:51pm On Feb 01, 2016
50 naira deductible is for current accounts only, how many poor people operate current accounts? The policy was well thought out before approval. Reno spare us the rant
Re: 50 Naira Wise, Billion Naira Foolish!, By Reno Omokri by Akanbiedu(m): 2:55pm On Feb 01, 2016
Obiagelli:
50 naira deductible is for current accounts only, how many poor people operate current accounts? The policy was well thought out before approval. Reno spare us the rant

It's Reno's turn to rant, let him rant.

is allowed, is allowed, - ranting is allowed.

2 Likes

Re: 50 Naira Wise, Billion Naira Foolish!, By Reno Omokri by Nobody: 3:01pm On Feb 01, 2016
Akanbiedu:

It's Reno's turn to rant, let him rant.
is allowed, is allowed, - ranting is allowed.
My bad
Re: 50 Naira Wise, Billion Naira Foolish!, By Reno Omokri by collinsVP: 3:04pm On Feb 01, 2016
biafranbaby:


Please, how do you collect VAT from gala seller?

strictly speaking, you collect from their source supply, not from the hawkers we buy from. mind you the VAT effect on their profit, could be so insignificant, such that, they might still sell at #50 per one.
Re: 50 Naira Wise, Billion Naira Foolish!, By Reno Omokri by biafranbaby(m): 5:03pm On Feb 01, 2016
collinsVP:


strictly speaking, you collect from their source supply, not from the hawkers we buy from. mind you the VAT effect on their profit, could be so insignificant, such that, they might still sell at #50 per one.

Then it won't be VAT.
Re: 50 Naira Wise, Billion Naira Foolish!, By Reno Omokri by collinsVP: 5:12pm On Feb 01, 2016
biafranbaby:


Then it won't be VAT.

CONCEPTS in practice are applied with desecration not hook line and sinker.

thanks
Re: 50 Naira Wise, Billion Naira Foolish!, By Reno Omokri by Chubhie: 5:22pm On Feb 01, 2016
PoliticalThuG:
...Buhari is busy chasing thieves without knwing that he himself is a thief stealing 50 naira from every nigerian that has a bank account...

Re: 50 Naira Wise, Billion Naira Foolish!, By Reno Omokri by biafranbaby(m): 7:33pm On Feb 01, 2016
collinsVP:


CONCEPTS in practice are applied with desecration not hook line and sinker.

thanks

VAT is not a concept.

What you are proposing is another tax on the supplier: tax on his turnover. That would be double taxation as he would already be paying tax on his profits. Double taxation is not allowed (maybe in a Zoo, who knows).
Re: 50 Naira Wise, Billion Naira Foolish!, By Reno Omokri by collinsVP: 9:36pm On Feb 01, 2016
biafranbaby:


VAT is not a concept.

What you are proposing is another tax on the supplier: tax on his turnover. That would be double taxation as he would already be paying tax on his profits. Double taxation is not allowed (maybe in a Zoo, who knows).

Biko ejim chineke na ayo gi, Emekatakwana kpomu aha na odinairu! muana udi mmadugi anagi akpa nkata. ozo dika ibeya bu na iga eje gusie akwukwo gi ike, tupu iputa igwe kwuo okwu.

zoo gbagoro zoo gbada. Iberibe
Re: 50 Naira Wise, Billion Naira Foolish!, By Reno Omokri by biafranbaby(m): 9:47pm On Feb 01, 2016
collinsVP:


Biko ejim chineke na ayo gi, Emekatakwana kpomu aha na odinairu! muana udi mmadugi anagi akpa nkata. ozo dika ibeya bu na iga eje gusie akwukwo gi ike, tupu iputa igwe kwuo okwu.

zoo gbagoro zoo gbada. Iberibe

Nna, kedu mgbe obidoro sebere anyi?

(1) (Reply)

Disgraced Rochas Okorocha Calls Himself Igbo Leader Lashes Ipob / See What A Pdp Agent Wrote About Buhari / On Pdp's New Zoning Formula

(Go Up)

Sections: politics (1) business autos (1) jobs (1) career education (1) romance computers phones travel sports fashion health
religion celebs tv-movies music-radio literature webmasters programming techmarket

Links: (1) (2) (3) (4) (5) (6) (7) (8) (9) (10)

Nairaland - Copyright © 2005 - 2024 Oluwaseun Osewa. All rights reserved. See How To Advertise. 37
Disclaimer: Every Nairaland member is solely responsible for anything that he/she posts or uploads on Nairaland.