5 December 2017

Nigeria: U.S. Businesses in Nigeria Paid N34.4 Billion Tax in 2016

A recent Economic Impact Survey of United States companies in Nigeria has shown that such business interests have contributed over N34.4 billion to the nation's tax revenue in 2016, even as the firms have expressed commitments towards deepening their investments in the country.

According to the business interests under the aegis of American Business Council (ABC), efforts are under way to raise stakes in key sectors of the economy under a favourable regulatory environment.

Giving insights into the first comprehensive business survey of US firms operating in Nigeria, in Lagos, yesterday, the President of the Council, Lazarus Angbazo explained that the companies impacted the Nigerian economy in 2016 through value added to the energy future, economic output, investment, jobs and social responsibility programmes to several communities.

Specifically, the Council noted that US companies generated N1 trillion revenue in 2016, while over N340 million was spent on training as well as over N217 million on corporate social responsibility activities.

He added the investments underscore the significant impact that US trade and Investment has on the economy.

With interests in the oil and gas sector, the information and communication sector as well as other industries, Angbazo added that the investments seek to deepen ties between Nigeria and the US and also drive policy and regulatory reforms.

Discussing the findings of the survey, Darrell McGraw of PwC stated that US business interests in the country are still few, adding that efforts are underway to encourage new investors to explore opportunities in the Nigerian market, especially the consumer goods market.

"American companies are willing to invest and take advantage of the opportunities in Nigeria's consumer markets. The Centre for trade hub has moved to Nigeria. This reaffirms the fact that Nigeria is treated as the regional hub for American companies' operations in West Africa.

"To take advantage of the African Growth and Opportunity Act (AGOA) deal, Nigeria needs to be strategic about the sectors to which they want to export commodities. There is a huge demand for food products in the US markets and Nigeria can fill that demand gap if it gets it right", he added.

Indeed, data for the report was derived from responses by 48 American companies operating in Nigeria, with many of them seeking government's intervention in the areas of foreign currency access and policy, crime and security, among others.

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