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The first stakeholders’ forum on tax incentives for Nigeria’s
motion picture industry was held at the Nigerian Film Corporation (NFC) annexe,
National Theatre, Lagos on July 15.

The meeting, jointly organised by the NFC and Federal Inland
Revenue Services (FIRS), was to enable interested parties to make input into
the draft proposal before it is forwarded to government. Filmmakers,
independent TV producers, heads of associations and guilds, representatives of
the National Film and Video Censors Board (NFCVB) and Federal Inland Revenue
Service, were among those at the meeting.

Tax is imperative

Opening the meeting, the managing director of the NFC, Afolabi
Adesanya, noted that the era of art patrons and marketers doling out money to
filmmakers is gone, hence filmmakers have to explore other means of funding
their productions.

He disclosed that the process of drawing up the tax incentives
started last year when a committee comprising the NFC and FIRS was inaugurated.
The team, he said, was tasked with recommending incentives that will integrate
film into the general economic development of the country.

Adesanya added that though the Nigerian film industry has not
done badly in the last decade, “it is yet to realise its potentials as creative
art and industry. Most policy makers still view film as mere entertainment,
thereby underplaying its potential to contribute to our Gross Domestic Product
(GDP) and national revenue base.”

He reiterated that the tax incentives, “will create a more
vibrant film industry, generate more employment, raise the level of Foreign
Direct Investment (FDI) into the sector, generate more revenue and income,
boost the pool of funds available for the development of the film industry
outside government treasury, and finally, promote socio-cultural development.”

Adesanya explained that stakeholders were invited to complement
the work of the committee because an all inclusive approach was needed.

Tex Benibo, executive director, operations, of the NFC,
presented some of the proposed incentives to the gathering before Adesoji
Omoyele of the FIRS went into the fine details. The official explained that the
ministry of finance considers some facts before giving tax incentives.
Government, he said, considers the legal basis of the tax relief; ascertains if
it is in tandem with the national tax policy; if it has precedence and conforms
to global best practices. He disclosed that though government wants to
streamline its tax incentives, “this can be pursued.”

No, it is not

The interaction that followed Omoyele’s presentation was
spirited, as some of the filmmakers saw nothing beneficial in the proposed
reliefs. “Is this tax incentive for us or the Federal Inland Revenue Services?
This is an industry that is comatose; a number of people haven’t worked in a
year or two. There are some instruments that are supposed to be here but are
not. I’m aware that NFC is working on the MOPICCON Bill [Movie Practitioners
Council of Nigeria], film fund, and film village, nothing has happened. Some of
us are beginning to think the chaos benefits government agencies. How are we
going to get this through? Because the NFC and FIRS are involved? Certain
structures are needed. We can’t move forward without an industry that is not
regulated. What we are doing right now, I don’t think it’s what is needed,”
stated Mahmood Ali Balogun.

Bond Emeruwa toed Balogun’s path. “How do you even determine
who is a filmmaker and who to tax?” he asked. He added that lack of unity among
filmmakers is responsible for the stunted growth of the sector.

For our future

Responding, Adesanya explained that the NFC is committed to the
success of the film policy, film fund, MOPICCON bill, and all other proposals
to aid the growth of the film industry. He added that work has been slow on the
bills because of the high turnover of ministers of information since 2005.

The former photojournalist/ reporter with ‘The Guardian’ stated
that the NFC has to start from scratch whenever a new minister is appointed,
and that all the bills were resubmitted to the minister of state for
information some weeks ago. “We remain committed to these bills. Go and make
private enquiries into the state of these bills,” the former general manager of
West African Motion Picture Company said.

He also responded to actor Segun Arinze’s question on what the
NFC is doing under the ministry of information, instead of culture. “That is
one of the dynamics of our society. The law establishing NFC is domiciled in
the ministry of information,” he replied. The NFC boss also tried to assure his
colleagues with, “We shouldn’t get discouraged. If you live in a dirty
environment, you will get malaria. You have to clear your environment first.
This exercise is for our future.”

Adesanya’s assurances, however, were not enough for
Ali-Balogun, who still asked, “What will stop this from going the way of
others? The success of this one is dependent on the other bills.”

“You must register your company if you want to benefit from
this. You need to have a corporate identity. You need to play your own vital
role to benefit from whatever incentives government gives,” Adesanya
reiterated.

Contributing to the discussion, cinematographer Isa Abubakar
expressed concern over the rebate on import duties on production equipment. He
noted that taxing such equipment does not make sense because lack of equipment
is responsible for the poor productions common in Nigeria.

Chris Friend of Video Lounge Nigeria supports paying tax but
wants the FIRS to justify why filmmakers should do so. “You must give us
something back if you want us to pay tax,” he said, adding that importation of
equipment shouldn’t attract any tax.

The stakeholders forum continues in Enugu and Kano.