I’m a fellow of the Chartered Institute of Taxation of Nigeria as well as being a lawyer and Energy/Electricity Law scholar. An elementary principle of taxation is that you pay taxes on earnings, income or profilts; not on losses.
I know for a fact, that as presently constituted and structured, no GENCO or DISCO will survive or make decent profits in the Nigerian Power Sector.
Please, quote me!!!
So, why should they even pay taxes. I honestly think they should get tax holidays or tax refunds for getting them to invest (as DISCOS or GENCO) in a sector ignorantly or deliberately designed to fail by a Government, that would rather deploy deceptions and half-truths to hurriedly package the sector for balcanisation or unprofitable sale. That’s my take. Please, quote me. I stand by my postion. By the way, all our informed -predictions on the sector are manifesting. Sadly unfortunate. We’re watching!!!
– Yemi Oke