China became Nigeria's largest trading partner in 2020

China becomes Nigeria Largest trading partner in 2020

01 China becomes Ni Largest trading partner in 2020

According to the Nigerian National Bureau of Statistics ( NBS) data, Nigeria's total global trade volume in 2020 reached 32.42 trillion Naira. Nigeria's top 5 trading partners were China (6.36 trillion Naira), India (3.46 trillion Naira), the Netherlands (2.62 trillion Naira), the United States (2.18 trillion Naira), and Spain (1.63 trillion Naira). In bilateral trade between China and Nigeria, Nigeria's imports from China reached 5.72 trillion Naira, accounting for 90% of bilateral trade.

Source: Lagos Voice

02 Nigeria will reopen Kano airport on April 5

According to the Nigerian Daily Trust reported on March 16, Kano International Airport will reopen for international flights on April 5, 2021.

Hadi Sirika, Nigeria's Aviation Minister, stated that Nigeria is reopening major international airports. He indicated that Port Harcourt and Enugu airports will reopen for international flights on April 15, 2021 and May 3, 2021, respectively.

03 Abuja hosts Science and Technology Innovation Expo

According to the Nigerian Daily Trust, Nigeria's Ministry of Science and Technology held a Science, Technology and Innovation Expo in Abuja on March 20, 2021.

Minister of Science and Technology, Ogbonnaya Onu, stated that the best way to alleviate poverty is to commercialize research and development into products and services needed by the general public, creating more wealth. The expo aims to promote the development of SMEs in Nigeria.

04 Ni February 2021 CPI increased by 17.33%

The Nigerian Bureau of Statistics released the February 2021 CPI report, showing that Nigeria's overall CPI increased by 17.33% in February, 0.86 percentage points higher than the previous month, setting a new high. The CPI in urban areas increased by 17.92%, and in rural areas by 16.77%, both higher than the previous month. Excluding the volatility of agricultural product prices, the core CPI increased by 12.38% in February, up 0.53 percentage points from the previous month.

Food prices increased by 21.79% in February, 1.22 percentage points higher than the previous month, mainly due to rising prices of bread and cereals, tubers, meat, vegetables, fruits, fish, and cooking oil.

05 Nigeria's Finance Minister says Nigeria has emerged from recession

According to the Nigerian Daily Trust Reported on March 15, Nigeria's Finance Minister, Zainab Ahmed, stated that Nigeria has emerged from recession. Nigeria's economic growth rate in the fourth quarter of 2020 was 0.11%. The previously predicted GDP growth rate for 2020 was -3.2%, while the actual growth rate was -1.92%.

Nigeria's Finance Minister stated that the government plans to increase spending and will need to increase borrowing.

06 Nigeria is committed to achieving tax digitalization

According to a recent report on the website of the Federal Inland Revenue Service (FIRS), the Nigerian Federal Government organized tax experts to hold a “First Annual National Tax Dialogue”, themed “Taxation in the Time of Pandemic”. Experts agreed that big data and information technology should be used throughout the entire tax collection process to strengthen tax administration, expand the tax base, and improve compliance.

Dr. Akinwumi Adesina, President of the African Development Bank, emphasized the impact of the COVID-19 pandemic on the African economy and the various interventions by the AfDB and governments. Due to the impact of falling oil prices and lockdowns on economic activity, Nigeria's economy contracted by 3% in 2020. With reduced oil revenue, debt is the biggest risk facing Nigeria. Nigeria needs to overcome the negative impacts of the COVID-19 pandemic and make taxation the main source of government revenue. Digitalization of tax administration is crucial to ensuring tax transparency, expanding the tax base, reducing compliance risks, and encouraging tax compliance.

Ekiti State Governor, Kayode Fayemi, stated that in the most challenging 2020 fiscal year, the FIRS achieved good results, collecting 4.9 trillion Naira in tax revenue, achieving 98% of its target. Of this, petroleum tax accounted for 30.6%, far lower than the previous 50%. Fayemi emphasized the use of information technology in taxation to improve nationwide tax compliance.

Logan Wort, Executive Secretary of the African Tax Administration Forum, pointed out that information technology will play a crucial role in Nigeria's taxation in the post-pandemic era. Nigeria should focus on e-commerce and the digital economy, where large multinational corporations (such as Google, Netflix, and Uber) earn huge tax-free profits. Nigeria should learn from Ghana's introduction of an e-commerce tax, which is expected to increase Ghana's tax revenue by $450 million.

Ali Isa Pantami, Minister of Communications and Digital Economy, stressed that taxpayers should be treated as kings and provided with better tax services. He advocated for more funding to build a data center for the FIRS.

Source: Economic and Commercial Office of the Embassy of China in Nigeria