Transcription
The recent task law that the president have uh made me mention that the presidency have made mention that we start in 2026 has been a problem or has been a cause of concern to so many Nigeria whether they are living in the diaspora or whether they are living in Nigeria. And it is because of this confusion that at first, even me, I was scared. And I was like, ah, okay, so does it mean that that I should start investing in Nigeria if the government is going to take up to 20%, 25%, or whatever the test tax bracket that my transaction runs into? Does it mean that I'm going to stop investing in Nigeria and focus on investing in the UK?
So I started to make research and after my research, I decided to bring it to my YouTube channel so that you can also share with others so that you can also understand about this task law. Now, I do not work with the presidency and it is not my work to start to break down the task law for you one by one. If you want to do that, you can tune in to NOA, the National Orientation Agency, so that the presidency can explain it for you. I am only going to corner it to the contest that concern me, which is agriculture.
You see, I am a farmer and anything that you want to talk about that involve farming in Nigeria, it always come back to me because I think, how can this profit me? Because long ago, I have already understood that my pathway to becoming a billionaire or a millionaire, a billionaire in dollar, in NRA, or a millionaire in dollar is through agriculture. I have already seen it and I know that before the year, before I retire at 45 years, by the grace of God, I should already be a millionaire in dollar and a billionaire in NRA. So if you are talking about task, I should be looking at how does it affect my industry which I have chosen to be the part that I will use or the vehicle to take me to billionaire status.
The tax law that the president says says that 20% that people will be exempted if you are earning about 800,000 naira or so, you'll be exempted from tax, but above that, you will pay 20%. I might not be accurate in the figure, but just do not try to decorate the figure. Just listen to the context of this message or the principles surrounding in this message. Recall that the president, even before this tax law, brought about a policy that gave a break, a 5 years break on agriculture. Meaning that this task that the president is talking about is not going to affect my industry in agriculture.
The president say that for the next 5 years, new agricultural ventures are not are going to be exempted from task, or new companies that have pivoted, probably before you were selling clothes or before you were selling car, you now pivot the company into agriculture that you are not going you are going to have a tax break for the next five years. So this means that this task is we are going people in agriculture is going to be exempted from this task of nesting because if you are giving us a task break in agriculture, I check it up. I made a research and I saw that if you are into aquaculture, if you are into primary production and some other aspect of agriculture that you are going to be exempted from this.
So you see that me, I'm into aquaculture, I'm into processing and I'm also into selling. So this means that I'm going to be removed from this. But what should I do in order for me not to be affected by this? I must make sure that I have good record. I must make sure that I track all my sales. I must make sure that I track all my expenses. So it's not because I'm having a task break that I will now start doing anything I want or now start trying to invade task.
Now I have talked about my company. What is my advice to people? If you are in the diaspora and you are looking at a way of investing in Nigeria, the best investment you can do right now in Nigeria is agriculture. Agriculture will not only give you the profit that you will need in Nigeria. Agriculture will also help you in order not to pay tax because we have a tax break. When you avoid task, it is legal. It is legal. But when you avoid task, it is illegal. So now I am not teaching you on how to avate task.
If you are evading task, you are falsifying your account. You are not reporting accurately your expenses and your income. You are not doing a good book. You are trying to in a way cut corners so as not to pay the government, to cheat them. You are vading task and if they catch you, you are going to jail. But when you are avoiding task, it means that legally you are looking for a way in order for you to have a lower tax. So if you are in agriculture and the government say, oh, you are in primary production, you are in aquaculture, just the way I'm investing in aquaculture, that you are going to we are going to give you a tax break for 5 years. It means that all the income you have in agriculture, you get to keep them for yourself.
Now, if you continue to go and invest in industry like oil, in industry that the government like, that's oil, diesel, petroleum, you continue to invest in industry that the government see that is increasing our forest instead of dropping the nera so that it can become part with the uh pounds or dollars, the government is saying that we are going to pay tax. Now, part of the the things I have, I did not say because of your my followers, I love you people and you know, I did not say, let me just learn about my industry and leave it alone. No, I said, let me also learn if you are in this other industry that you are going to be paying tax, how does this affect you?
When you go and read so many videos, they speak so many grammarss and you know, English is a challenge for me. Anytime I want to explain about this thing, I try to explain it in a way that a small child is going to understand. The government is not going to be tasking you on the money that you have in your bank account. The government is not going to be tasking you on the sales that you made made. Let's say for instance, you are selling clothes and you now went and in a year, you make a sales in a year. It is annual. You have to file your tax annually. It's not monthly. In a year, you now made a total sale of 1 million naira. I'm giving you instance of 1 million naira. Now, the government is not going to be taxing you on the sales of 1 million naira. The government is going to be taxing you on your income.
So now, what was the profit that is in that 1 million naira? You had a profit of 200,000 naira, which is 20% of the 1 million naira. Now, some people will hear that you are going to pay 20% tax and they will think that you are now going to take the 20% of 200,000 naira that you made and now give it to the government. No, that is not what the tax is saying. The tax is saying that you now, the profit is 200,000 naira. Now, inside that 200,000 naira that you have, which is the total profit of the total sales you made in that one year. What was your expenses in that one year?
Okay. I have two staff. The first staff name is Okon and the second staff name is Musa. I pay them salary of 20,000 naira. So like 22 naira and in a year I pay them a total salary of 10,000 naira. So minus 10,000 naira from 200,000, what is remaining is 190,000 naira. Now, apart from the 190,000 naira, what is next? The shop that I rented that I'm selling this clothes, I am paying 2020 naira every day in that shop. In a year, I paid a total of 20,000 naira in the shop as the rent of that shop. So that means inside that 190, I will now also remove 100 20,000 naira. The money is now remove remaining 170,000 naira. I bought fuel that I use anytime there is no light, 10,000 naira in one year. 170 minus 10,000, my income or profit is remaining 160. You understand?
I did this and I did that when I was selling in the shop. I eat food, yes. I gave my staff food to eat, yes. You will write it as a business expenses. I eat food when I was in the shop and I bought food. It is a business expenses. You do not go and stay in a shop selling clothes and when you are eating food during the business hour, you are now writing it as your personal expenses. No, it is a business expenses. The fuel that you use, which is transportation to transport yourself to come from your house to your shop and to go back. It is a business expenses and you have to impute it.
What this means is that you must be able now to keep receipt. You must be able to keep receipt. You must be able to keep receipt of all the transactions that you are making because that is what you will use to file your tax. That is what you use to file your tax. You are not evading task. You are simply showing truly what your task is. I am not a tax expert. But if it is 200,000 naira, that was your profit and after removing expenses, your total profit became 10,000 naira. Do you understand what I'm saying? If your profit become 10,000 naira or it fall below that 800,000 naira, the government is now telling you that you are not going to pay tax.
So if your profit, let me now use the TR tax bracket itself so that you understand. So if your total profit is, let me say your sales is 10 million naira, but your total profit is 1 million naira or 2 million naira, but after removing all these expenses like the ones I talked about, keep the receipt, make sure you find the receipt well, your food you eat, the transportation you use to do business, all those things are cost of running a business, electricity bill you are paying in the shop, the cost of advertisement, if you are running Facebook ad, the cost of money you are running to do Facebook ad, the data money you are paying to advertise your goods online, that write collect receipt of all those things, keep them, fight them, fight them. So if you minus from the 2 million naira profit and after my nursing expenses, your money, your income is now around 800,000, the government is telling you that you are not going to pay tax. You are not going to pay tax on the 800,000. But if your income at the end of the day now is now 1 million naira, from what I understand, you are now going to pay tax on 200,000 naira. You first remove the 800,000 that is not taxable. You now pay 20% on 200,000. 20% on 200,000 is 40,000 naira. Now, that is the total tax you are going to pay for the year.
If you do not understand this, comment, I do not understand and I want a further video on elaboration on this, and I'm going to answer you. And if you understand, subscribe, share this video and write on the comment section, Shaw Boy, and I will be here to bringing more videos for you. My name is Shaw Boy. They call me Shaw Boy here in the UK. I don't know what they call me in the country where you live. And if they call me any other thing that is not Shaw Boy, write it on the comment section and I will see you in the next one. This is Shaw Boy. Peace and love. Don't play.