2018 OUTLOOK Economy: Tax evaders, FG set for battle
The
election campaigns will spark economic activities in the country as many political parties will engage in massive spending on hand and the electoral umpire-Independent Electoral Commission of Nigeria will embark on procurement for the materials on the other hand.
Legal battles between tax evaders and FG
The deadline for the Voluntary Assets and Income Declaration Scheme (VAIDS), which expired yesterday will eventually land many tax evaders and the federal government in court. The government said it has no plan to exten the dealine or give new window again. According to VAIDS, punishment for evasion is severe: All tax evaders - when identified - are subject to the full force of Nigerian and international law:Imprisonment of up to five years; Severe extra penalties - up to 100% of the outstanding tax due, compound interest at 21% per annum, forfeiture of assets.
CBN may hold and later tighten rates
The central bank may continue to hold rates unchanged since the recovery is still at a slow stage.
As the MPC commtee said in their September meeting, the fragility of the growth makes it imperative to allow more time to make appropriate complementary policy decisions to strengthen the recovery. Secondly, the Committee was of the view that economic activity would become clearer between now and the first quarter of 2018, when growth is expected to have sufficiently strengthened and gains in receding inflation, very obvious. The tightening may manifest towards the end of the year.
Massive spending
Inflation to drop further
As the nation’s reserves continue to appreciate, the inflationary pressure in the economy continued to moderate with headline inflation (year - on - year), experts are of the view that the rate will not fall below single digit but it will close to that.
Privatisation of Ajoukuta company steel
Within the year there is likelihood that the federal government shop for new owner of Ajaukuta Steel Company Limited. The FG successfully ended the legal battle on the company last year and promise to hand it over to a competent operator.