RMAFC Okays New Tax Policy
The Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) has endorsed the new national tax policy recently announced by the federal government to shore up the country’s dwindling revenue base, occasioned by the shortfall in oil prices as well as activities of militant and vandals in the Niger Delta.
The acting Chairman of the commission, Shettima Umar Abba Gana, had in July 2016, canvassed the upward review of value added tax from 5 per cent to about 7.5 per cent in order to improve the country’s revenue base.
‘Why foreign investors shun Nigeria’
Foreign investors are wary of doing business in Nigeria because the country is perceived as not investor friendly.
Speaking with reporters yesterday in Abuja, a foreign investment broker and Managing Director/ Chief Executive Officer of Footprint to Africa, Osita Oparaugo, said investors are put off by how difficult it is to do business in the country and the painful fact that both private and public entities in the country have no scruples discarding an agreement reached with foreign investors if they discover that the initial agreement was not in their favour.
JAIZ Bank to list on NSE today
JAIZ Bank Plc will be listing on the Nigerian Stock Exchange today (Thursday) following a confirmation by the bourse in the late hours of Wednesday. The top management of the bank is expected to visit the Exchange to list and present capital market stakeholders with facts behind the listing.
Med-view Airline Plc, on January 31 this year, was listed on the NSE “by introduction”. It was the first airline to list its shares on the local bourse in the last decade. The listing is coming barely 24 years after moribund ADC Airlines was listed on the NSE.
Petrol stations mark up pump price
Contrary to a relatively stable pump price of fuel in Lagos and a few states across the country, there were indications that some petrol marketers were over-shooting the prescribed price ceiling of N145 per litre.
A visit by our correspondent to some petrol stations in Badagary area of Lagos indicated that many of them were selling at between N147 and N150 per litre. The National Bureau of Statistics, Premium Motor Spirit (Petrol) Price Watch had indicated that Lagos have been recording average fuel price of about N144.4 per litre in the last three months, though national average and South West average stood at N146.7 and N148.4 respectively as at December 2016.
PwC: Nigerian firms lack capacity for oil, gas exploration
PricewaterhouseCoopers (PwC), an auditing firm, has said Nigerian indigenous oil firms still lack capacity to carry out oiland gas exploration despite the push by the Content Act passed into law in 2010. Its Director, Tax and Regulatory Services, Kenneth Erikume, said since the passage of the Act, aside funding challenges, indigenous operators still lacked sufficient capacity to explore for oil and gas.
Given these challenges, the Federal Government needs to focus more on building capacity at the local level and getting the Nigerian Content Development and Monitoring Board (NCDMB) to drive the acquisition of technical know-how requisite for the industry.
Conditionalities cut off MSMEs from N220bn CBN Fund
OPERATORS in the nation’s MSMEs sector says tough conditions have barred majority of them from being able to access Central Bank of Nigeria’s N220 billion Micro, Small and Medium Enterprises Development Fund ( MSMEDF).
According to National Bureau of Statistics, there are over 17 million companies in the MSME sectors in Nigeria. Recall that CBN launched the N220 billion on August 15, 2013 in recognition of the significant contributions of the sub-sector to the economy and to address the existing huge financial gap.
Agusto & Co Unveils 2017 Insurance Industry Report
Agusto & Co., a Pan-African credit rating agency in Nigeria, has released its 2017 insurance sector outlook. The “Insurance Industry Report” by the firm unveiled in Lagos recently estimated a gross premium income (GPI) growth of eight per cent for the insurance sector this year.
The firm based its projection on a probable devaluation of the nation’s currency, anticipated increase in infrastructure during the year as well as continued growth in life business in the sector.
Distressed pharmaceutical manufacturers seek N300bn for competitiveness
MANUFACTURERS Association of Nigeria, MAN, says it want the federal government to stimulate pharmaceutical manufacturing companies in the country with N300 billion so that they can be competitive in the regional and international market.
The key players in the industry which is one of sectors hardest hit by dollar scarcity to bring in raw materials used for pharmaceutical manufacturing, are May and Baker, Neimeth, Emzor Pharmaceuticals, etc.
Fed Govt inaugurates committee for fuel supply
The Federal Government has set up a committee to provide a framework for the importation and supply of petroleum products, the National President, Independent Petroleum Marketers Association of Nigeria (IPMAN), Mr. Chinedu Okoronkwo, has said.
He said the committee comprised officials of the Ministry of Petroleum Resources, Nigerian National Petroleum Corporation (NNPC) and its depots, privately-owned depots, Major Marketers Association of Nigeria (MOMAN), Independent Petroleum Marketers Association of Nigeria (IPMAN), Depot and Petroleum Products Marketers Association (DAPPMA) and relevant stakeholders.
Dangote chief lists solutions for power sector crises
As Nigerians and businesses grope in darkness, Honorary Adviser to the President of Dangote Group, Engr. Joe Makoju, has advocated adequate funding and restructuring of the power sector to achieve relative stability in electricity generation and distribution. He said the power sector is currently bankrupt to the point of threatening the health of financial institutions and the wider national economy.
Nigeria moves to enact anti-piracy law
The Federal Government has commenced the process of enacting a law in Nigeria that will specifically address legal issues relating to activities of pirates and sea robbers on the nation’s territorial waters.
This was disclosed by the Director-General of Nigerian Maritime Administration and Safety Agency, Dr. Dakuku Peterside, recently. Peterside said that the draft bill for the law was being worked on at the Federal Ministry of Justice before it would go to the National Assembly as an executive bill.
NCDMB warns operators to remit contributions to Fund
The Nigerian Content Development and Monitoring Board (NCDMB) has warned contractors in the upstream segment of the petroleum industry to remit their contributions to the Nigerian Content Intervention Fund (NCIF).
Its Executive Secretary, Simbi Wabote, at a stakeholders meeting on NCIF remittances in Lagos, reminded stakeholders that the Nigerian Content Act provides that one per cent of every contract in the upstream sector of the oil and gas industry should be deducted at source and paid into the Fund.
BEDC to Provide Free Pre-paid meters to Electricity Consumers
Relief has come the way of electricity consumers in Delta and neighbouring states as Benin Electricity Distribution company (BEDC) is set to distribute pre-paid meters free of charge to consumers in its coverage areas.
The company said the decision was in response to the directive of the Nigerian Electricity Regulatory Commission (NERC) to DISCOs to make meters available to consumer at no cost.
Stockbrokers eye improved operations with cloud technology
stockbroking chiefs and major stakeholders in the capital market are confident that the adoption of a cloud-enabled operational technology by the Nigerian stockbroking industry will improve efficiency.
Marlin, a cloud-based stockbrokerage application, was introduced to the stockbroking community at a seminar at the Nigerian Stock Exchange (NSE) in Lagos. Marlin, which automates the entire process and workflow of all brokerage firms, was launched in Nigeria by Info Tech Financial Technologies Limited,
FG approves fresh incentives for farmers equipment
The Presidential Task Force on Food Security, yesterday, submitted an Interim Report to the Federal Executive Council (FEC) meeting at the Villa, Abuja. The task force, which was set up last week, explained that the country was not experiencing food shortage rather Nigerians are groaning under high cost of food prices, due mainly to the increase in transportation of farm produce.
To this end, the task force said it is considering using railway wagons to transport food stuff so as to avoid the multiple taxation on transporters by local governments.
Presidency, Senate seek banking sector restructuring
The Presidency and the Senate on Wednesday recommended strategies for the restructuring of the banking sector, with a view to providing friendly environment for investments to thrive.
The Acting President, Prof. Yemi Osibanjo, while speaking at one-day public hearing in Abuja, which was organised by the Senate Committee on Banking, Insurance and Other Financial Institutions, urged the upper chamber of the National Assembly to provide the legal framework that would facilitate credit information sharing between credit bureaux and lenders.
United Capital hinges economic rebound on favourable policy
The nation’s economic rebound has been hinged on policy acceleration, even as participants at the investors’ forum organised by United Capital Plc urged government at all levels to ensure that reforms and programmes are pursued vigorously.
Also, stakeholders stressed the need to promote national savings culture, noting that the level of savings in an economy has a multiplier effect on investment. According to them, persistent slow economic progress could permanently damage medium-term growth prospects, amid enormous investment opportunities that could attract both indigenous and foreign investors.
Power generation rises to 3,730MW as vandalism declines
The gradual decline in the spate of gas pipeline vandalism seems to be rubbing off on the power sector as the latest industry data obtained on Wednesday in Abuja showed that electricity generation peaked at 3,730.5 megawatts on Tuesday.
This is a confirmation of statements made by the Minister of Power, Works and Housing, Babatunde Fashola, at an event in Abuja on Tuesday, when he pleaded with vandals to stop destroying power installations, adding that the recent rise in electricity generation would be better if they refrained from pipeline vandalism.
Firm seeks government backing for investment in construction
A call has gone to the Federal Government to galvanise indigenous investment in the construction sector to achieve its infrastructure development target. The Chairman of Carija Engineering Company (Nigeria), Mr. Sheba Palama made the call yesterday during the official opening of the company’s head office in Orhuwhorun, Udu Council Area of Delta State.
According to Palama, Nigeria is a developing country, which needs more companies to handle the infrastructural development in various areas.He assured his audience of the company’s capacity to meet Nigeria’s infrastructural needs as a developing country.
Manufacturers eye alternative power supply as outage bites
As the persistent poor power supply from the national grid and rising cost of diesel continue to take a toll on their operations, manufacturers are looking to build power plants in cluster areas, writes ’FEMI ASU. Frustrated by the nation’s power crisis with no end in sight, manufacturers are poised to develop power plants in parts of the country to ensure regular power supply in their factories.
Manufacturers and other businesses in the country have, over the years, continued to rely heavily on diesel-powered generators for electricity but the recent sharp increase in the price of Automotive Gas Oil (diesel) has pushed up their cost of production.
Insurance company SA merges with Standard Life
Foremost underwriting company, Standard Alliance Insurance Plc, has formally merged with its sister company, Standard Life Assurance, to become a one big insurance company, underwriting life and non-life insurance businesses. The court-sanctioned merger makes Standard Alliance Insurance Plc a leading composite insurance company with a shareholders fund of N6.392billion and asset base of N13.651billion.
Speaking on the merger, the Group Managing Director, Standard Alliance, Mr. Bode Akinboye, explained that “the merger was a deliberate and strategic decision by the boards of both companies to form a frontline composite insurance company which will play a leading role in the nation’s insurance sector with the ultimate goal of making the company the most preferred place to invest in.”
Fuel scarcity looms in S’West over Ibadan depot closure
An impending fuel scarcity looms in some South West states, including Oyo, Osun and parts of Ondo State, over the grounding of the Nigerian National Petroleum Corporation (NNPC) depot in Ibadan, Oyo State.
Ibadan depot services Oyo, Osun and some parts of Ondo State. The depot has been grounded for over two years, just like Ejigbo depot in Lagos, Ore in Ondo State, with only Mosimi depot in Sagamu, Ogun State, offering skeletal services in the South West region. Chairman, Independent Petroleum Marketers Association of Nigeria (IPMAN), Ibadan Depot branch, Alhaji Raheem Rasaq Tayo, said the acute shortage of petroleum products in the region has led to a situation where private depot owners hike prices of products at will.
Inaction on fiscal policies heightens investment risks
Stakeholders and operators in the private sector have expressed worry about the continued inaction of the Federal Government in the area of fiscal policies initiation and execution. They have also raised concern over the prolonged failure to appoint substantive chief executives for critical agencies of government, one year after their boards were dissolved.
According to the operators, the extended leave of President Muhammadu Buhari could further erode confidence in his administration, already under pressure from investors, adding that the Nigerian economic environment is with riddled with uncertainty and several agency heads operating in acting capacity.
N’Assembly approves $1bn Eurobond sale as investors worry over oil, forex risk
Nigeria’s parliament has approved the Federal Government’s request to sell a $1 billion Eurobond to help the country finance its budget deficit, Senate spokesman said on Wednesday. Following its first recession in 25 years, Nigeria has been desperately looking for money to make up for shortfall in its budget. Its revenues have plunged along with global oil prices and militant attacks in its crude-producing heartland, the Niger Delta.
Finance Minister, Kemi Adeosun, Central Bank Governor, Godwin Emefiele, and other senior government officials have been meeting investors this week in London and the United States on a roadshow to issue the bond with a 15-year maturity.