SPONSORED PHOTOS: FIRS, JTB and SMEDAN MSMEs SENSITISATION IN KANO
The Federal Inland Revenue Service (FIRS), Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) and the Joint Tax Board (JTB) jointly organised a one-day workshop for awareness creation and sensitization for small and medium enterprises on the importance and procedure for payment of taxes.
The sensitisation is a part of programmes rolled out by FIRS, JTB and SMEDAN to harness the Micro, Small and Medium Scale Enterprises (SMEs) in Nigeria and make them viable. See photos from the event which was held at the Royal Tropicana Hotel, Kano, Kano State on Wednesday, July 25th, 2018.
Why FIRS, JTB, SMEDAN focus on sensitizing over 37million MSMEs in Nigeria—by JTB, Secretary
When properly harnessed, the Micro, Small and Medium Enterprises (MSMEs) sub-sector of Nigeria, which is currently over 37 million in number, will be the springboard for Nigeria’s economic growth, the Executive Secretary of Joint Tax Board (JTB), Oseni Elamah, has said.
Elamah made this remark in Kano on Wednesday at a workshop jointly organised by the Federal Inland Revenue Service (FIRS), Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) and JTB for awareness creation and sensitization on small and medium enterprises on the importance and procedure for payment of taxes.
The sensitisation is a part of programmes rolled out by FIRS, JTB and SMEDAN to harness the Micro, Small and Medium Scale Enterprises and make them viable.
Elamah, who also represented the Executive Chairman of FIRS, Tunde Fowler, at the event said that all over the world, MSMEs are seen as the medium for accelerating the attainment of broad socio-economic objectives, especially for emerging economies. These, he said include poverty reduction, employment generation, wealth creation, income redistribution, trade equilibrium, entrepreneurial diversity, and revenue generation, among others.
“They (MSMEs)are largely unincorporated entities operating as enterprises with registered business names existing within the ambit of the informal sector. They play critical and significant roles via several economic pathways that go well beyond job creation and support growth that contribute significantly to improved living standards and act as a catalyst in promoting local capital formation”, he said.
The Director General and Chief Executive Officer of SMEDAN, Umaru Radda, who was represented by Director Policy, Advocacy and Coordination, Monday Ewans, said the workshop was also meant to help the MSMEs access their rights from the government.
“Though they are numerous incentives and support facilities available to MSMEs in Nigeria, (eg: Federal Government Special Intervention Fund for the MSMEs, Bank of Industry and Central Bank of Nigeria Intervention Fund, etc) access by MSMEs to such incentives and facilities have been hampered by some bottlenecks. Also, lack of understanding of some of his government funds, absence of supportive environment and poor access to finance have reduced the competitiveness of MSMEs in Nigeria.
Ewans added: “This sensitization programme is therefore aimed at sensitizing the MSMEs on the officially approved taxes and procedures for paying them. Fortunately, the FIRS and the JTB have stream-lined the procedures and enhanced the ease of payment of these taxes”.
The SMEDAN CEO also said that the MSMEs when harnessed will play a role in job creation and serve as a tool for economic development. He said SMEDAN works with them to help to reduce unemployment.
The JTB Secretary said the impact that MSMEs have on the economy of Nigeria is better appreciated when we look at some of the contributions they make to the national economy.
“Available statistics from a 2016 survey by the National Bureau of Statistics (NBS) in partnership with the Small and Medium Scale Enterprises Development Agency of Nigeria (SMEDAN) indicate that there are over 37 million MSMEs operating in the country. This figure is bound to have experienced some increase since the survey was carried out some two years ago. Micro (36,994,578) Small (68,168) Medium (4,670) Total 37,067,419.
“Furthermore, with over 59million Nigerians employed by MSMEs, it accounts for over 84% of the total national labour force. Contribution to National GDP as at 2016 stood at 48.5% with a 7.3% contribution to total national export”, he said.
Elemar in his presentation said Small and Medium Enterprises require education and enlightenment on extant tax laws especially those directly related to their operations, such as Personal Income Tax, Value Added Tax and Withholding Tax. Operators, he added, also require accurate information in relation to changes and emerging trends in the application and administration of various tax laws.
“This is especially more so given the fact that the country’s tax administration system is currently on the threshold of a paradigm change in synergy with global best practice and emerging trends in information communications technology.
“With the consolidation of the nation’s taxpayer database and expected commencement of the Automatic Exchange of Information with other countries of the world, it is essential that operators in this sector adapt to these trends if they are to become serious players in the global market place and to avoid being caught in a paradigm paralysis”, he said.