Government to raise debt stock by N365b in Q2
Tax officials raid streets in search of evaders
A schedule of planned debt deals by the Federal Government in the second quarter of the year, showed that the country may raise between N274 billion and N365 billion to support the current fiscal challenges.
The debts, which would be naira-denominated bonds, have maturities from five to 20 years and would be a reopening of the previously issued liabilities.
Meanwhile, DMO will kick off the second quarter debt plans on Wednesday, as it seeks to raise N110 billion in bonds, made up of N50 billion paper maturing in 2036; N40 billion maturing in 2026; and N20 billion maturing in 2020, using the Dutch Auction System.
The monthly borrowing programme of government has, beside being an avenue to raise funds for fiscal shortfalls, supported the local bond market and created a benchmark for corporate issuance.
The schedule, published by the Debt Management Office (DMO), would include the auction of five-year paper this month worth between N15 billion and N25 billion.
It would also offer another bond worth between N35 billion and N45 billion in a 10-year debt, while its 20-year paper would seek to raise between N45 billion and N55 billion.
The debt office also plans to issue between N10 billion and N20 billion worth of five-year paper; N35 billion to N45 billion for 10-year bonds; and N45 and N55 billion of 20-year paper in May.
However, in June, DMO has plans to raise between N10 billion and N20 billion in five-year; N35 billion and N45 billion in 10-year; and N45 billion and N55 billion worth of 20-year paper.
Meanwhile, the Federal Government has unfolded plans to increase the number of eligible taxpayers in its list, even as indications emerged that tax officials have begun enumeration of small traders who account for almost half of the economy, but do not pay taxes.
Part of the 2016 budget assumptions was increase in tax revenue through the extension of compliance efforts to those who have long evaded the civic duty, even as report showed that there already over 500,000 captured.
Lagos State, which has over the years, shown zero tolerance for tax avoidance and evasion, is currently reported as having sent out its officers on street to register entrepreneurs, as well as make them pay tax for the first time.
According to Reuters, large firms have begun receiving phone calls from tax officials who are demanding tax returns.
The Federal Inland Revenue Service (FIRS) has used full-page newspaper advertorials to warn that companies that fail to file will be punished after April 1.
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