Author: The Nation

There are strong indications that electricity tariff may increase soon. While electricity tariff review (increase or decrease) is a bi-yearly exercise as provided for in the Multi-Year Tariff Order (MYTO) schedule in the sector,  the expected increase is not unconnected with the deregulation of the foreign exchange (Forex) market by the Central Bank of Nigeria (CBN).

Under the MYTO 2022, operators sourced forex at N441 to a dollar for purchase of equipment and especially gas needed for operations, but with the floating of the exchange rate, which yesterday exchanged for N756 to a dollar, the limit of exchange is no longer feasible.

Efforts to get the Distribution Companies (DisCos) to confirm the looming increase have proved abortive. The DisCos insisted that they did not know or received any directive on such  an increase.

“We have not been advised or directed on such. The Nigeria Electricity Regulatory Commission (NERC) is the only body that can order us on tariff review, and we have not received any correspondence on this from NERC. So, we are also watching the speculation that has rented the air,” a top management source in a leading Lagos-based DisCo told this reporter.

The sources, however, noted that going by the development in the forex market, consumers needed to be aware that what operators budgeted for at the old exchange rate of N441 to a dollar has since spiked meaning that more money is expected to be pumped into providing the required service to consumers.

The General Manager, Public Affairs of NERC, Dr. Usman Abba-Arabi, could not be reached on phone for confirmation, while messages sent to his Whatsapp number had not been responded to as at the time of going to press.

Analysts were worried that based on the prevailing floating exchange rate, a base tariff of N100 per kWh might be set given that the forex rate has almost doubled from the time it was pegged at N441.

The State Coordinator, Niger State Standard Organisation of Nigeria (SON), Adamu Ahmed Saleh, has issued MANCAP certification to seven companies in Suleja, Niger State.

The state Coordinator said the organisation presented MANCAP certificates to these companies as they  met  the requirements before putting their products in the market.

Saleh added that the issuance of this certificate promotes global competitiveness among domestic manufacturers. It also benefits the most when there is a healthy competition, it promotes industrial and economic development to ensuring made in Nigeria products meet the requirements of relevant industrial standard.

He said: “Consistent compliance with the products they are buying gets value for money for safe use. All products eligible for Nigeria market has to be certified. SON has the mandate to continually educate the government on the issue of standardisation.”

He lamented that most people build houses using substandard products which is not supposed to be. To also avoid building collapse, builders are supposed to approach SON to ensure quality materials are used, but they don’t do that, and it is completely wrong.

The categories of companies issued certification are food companies, like producers of table water, rice, potatoes chips, and foam mattress manufacturing companies. We work round the clock in Niger State to ensure products put out in the market carry MANCAP certification logo.

The Federal Government and the Enugu State government are to partner to complete and operationalise the international wing of the Akanu Ibiam International Airport, as well as build a cargo terminal to boost the state and nation’s economy and tourism capacity.

The Managing Director/ Chief Executive Officer, Federal Airports Authority of Nigeria (FAAN), Mr. Kabir Yusuf Mohammed, and   Enugu State Governor, Dr. Peter Mbah, made this known yesterday to reporters after a tour of the ongoing international terminal building and the proposed site for the international cargo terminal at the Akanu Ibiam International Airport, Enugu.

Mohammed commended Mbah’s zeal and sense of urgency towards the actualisation of the two terminals, saying there was no better time to discuss partnership than now.

 “We met with the governor here to collaborate with FAAN to make the international terminal functional. This is a time to look at things again and again before you will be able to get the right formula for it, and I believe His Excellency has that formula and within the shortest possible time, I can assure you that this terminal will be put to use.

 “The first place we went to is supposed to be the cargo terminal. We have a cargo warehouse in that location as well as the cargo terminal.’’

 “Enugu, as the capital of Southeastern region, is where we know that there is a lot of traders, who trade in different things across the globe.”

“So, having in place a cargo terminal here will go a long way in improving the economy of the South-East Zone and the nation,” the FAAN boss stated.

Also speaking to reporters, Dr. Mbah said the operationalisation of the international terminal and construction of the cargo terminal and warehouse at the airport was critical to Enugu’s drive for a $30 billion economy.

 “For us, the cargo terminal is critical. You know that we are migrating agriculture to agro-allied industrialisation. That means agriculture will not just be for food, it will also be for export. And the cargo terminal is critical if we are going to engage in exports. We need to be able to export from here. That is why we are looking at partnering with FAAN to ensure that we start and complete a cargo terminal and indeed operationalise it.

 “As you can see, the international wing is almost complete. So, we need to have it operationalised. Until we get it functional, we will not be able to make money from it, and it will not impact anybody. We will not be able to create value for the people of Enugu or South East and indeed the entire country.

 “Again, if you look at the huge economic development plan we have expressed to our people, tourism is core there. We are looking at attracting over three million visitors in Enugu yearly. That cannot happen just by road. It is going to occur by flying, getting people from all across the different parts of the world to come to Enugu; and that will mean having an international airport, this terminal, in operation. That is why we are looking at how we can work with FAAN to ensure the completion of this wing of the airport and indeed operationalise it,” Mbah stated.

On the challenge of funding, Mbah assured that FAAN and the state government would explore funding models to actualise the project.

He said: “Now, we believe that projects like these are bankable because they are also revenue-yielding projects. So, there is no reason why we cannot find a financing model that will work for us and ensure that this project is immediately realised. The ultimate thing is to get it operationalised immediately.”

Mbah also said the state government and the FAAN team also had fruitful discussions on timeline to ensure the speedy completion of both projects.

 “So, we are going to be working out a strategic framework of action of where we are going to, in all the functional areas, spell out timelines that we need to complete this project. But this time, it will not just be words; we will go beyond that to putting those words into action,” the governor assured.

The development, harmonisation and rationalisation of a national quality infrastructure will stop the rejection of Nigeria’s export products in the international market, the Chairman/Chief Executive, Nigeria Quality Council, Osita Aboloma, has said.

  In a statement, he said the various legs of the quality infrastructure, namely standards development, metrology, conformity assessment and accreditation require urgent harmonisation and rationalisation.

These, he said, would ensure cost effectiveness and efficiency in support of the acceptance of Nigeria’s export products around the world.

Responding to questions on the  assertion by the Director-General, NAFDAC, Prof. Mojisola Adeyeye, that 70 per cent of Nigeria’s food exports are rejected in Europe and United States, Aboloma corroborated the statement, adding that sanitary and phytosanitary requirements are some of the key issues to be surmounted to avoid the  rejects.

The requirements, according to him, are quarantine and biosecurity measures applied to protect human, animal and plant life or health risks arising from the introduction, establishment and spread of pests, diseases as well as from the use of additives, toxins and contaminants in food and feed.

Aboloma alluded to a report that Nigerians shipping goods to Ghana for certification to enhance export value as being unacceptable, stressing that the solution lies in accelerated development, harmonisation of the nation’s quality infrastructure for optimum value addition.

He stressed the need for greater synergy among organisations and institutions in the sectors, hosting the National Quality Infrastructure as well as greater awareness creation for operators along the export value chain.

According to him, the NQC was created to implement the Nigerian National Quality Policy (NNQP) document which provides for efficient and effective management of regulation to achieve protection of society and the environment as well as transparent and reliable state-regulatory systems, devoid of bureaucratic vagaries.

Others he said include the provision of a supportive National Quality Infrastructure (NQI), which consists of Standards, Metrology, Accreditation and Conformity Assessment Services that must be acceptable globally to enhance the competitiveness of products and services made in Nigeria.

Aboloma explained that Standards serve as benchmark for products and service quality; metrology ensures accuracy of measurements in industry for both equipment and products; accreditation assures mutual recognition of competencies in Nigeria across borders while conformity assessment entails inspection and testing of products to meet destination requirements.

The NQC according to him is domiciled in the Presidency under the Office of the Secretary to the Government of the Federation to reduce bureaucratic bottlenecks in the discharge of its mandate like similar bodies in other parts of the world.

He stated that countries in the Americas, Europe, Asia and Africa that have promoted harmonized quality infrastructure are reaping the benefits in huge inflow of foreign exchange from unhindered exports, listing America, India, United Kingdom, Morocco, Ghana and Kenya as good examples.

Aboloma stated that the NQC would promote industry access to conformity assessment services that are affordable and acceptable globally so that Nigerian made products can be marketed under the motto: “Tested once, certified once, and accepted everywhere”.

He emphasized that the Council would work to ensure that all Nigeria’s goods, services and persons’ certification comply with relevant standards, technical regulations and applicable accredited conformity assessment requirements of domestic, regional and international markets and yet be competitive. These he said will affirm Nigeria’s leadership in the African Continental trade and better position its huge market and its people to benefit optimally.

The NQC Chairman admonished Nigerian Exporters to take optimum advantage of the existing quality infrastructure in the country, to save the Nation scarce foreign exchange, increase the efficiency of the export value chain and mitigate the rejection of Nigerian made products across regional, continental and international borders.

Aboloma assured Stakeholders of the National Quality Council’s preparedness to work seamlessly and in close collaboration with all stakeholders in the public and private sectors to ensure rapid improvement in the Nation’s quality infrastructure.

This he said will promote efficient and effective service delivery as well as overall economic emancipation, in order to benefit immensely from the implementation of the African Continental Free Trade Area (AfCFTA) agreement.

The NQC Chairman appealed for maximum cooperation from all Ministries, Departments and Agencies (MDAs) of Government, the organized private sector groups, development partners and all other stakeholders in quality related activities to assist the Council achieve its mandate aimed at improved competitiveness of made-in-Nigeria goods and services in the global market.

• PwC: there are 60 official taxes, 200 others

If the Federal Government  ends the reign of waivers, impunity by the Ministries, Department and Agencies (MDAs), instutionalise efficient tax collection system and other reforms in the fiscal environment, it can raise revenue generation to the Federation Account to N40 trillion.

Fiscal Policy Partner and Africa Tax Leader at PwC, Taiwo Oyedele, who spoke at a forum entitled: “Fiscal Options and Post-Election Governance” organised by BudgIT to chart ways out of the constrained fiscal environment for President Bola Tinubu’s administration, described the country as poor  with many poor people.

He said the country could raise the N40trillion from theValue Added Tax (VAT), customs and excise, and property tax, if properly administered.

Comparing Nigeria with South Africa and Kenya, Oyedele said while the former collected N190trillion rand between 2021 and 2022, out of which he said 24trillion rand was income tax, Kenya collected an equivalent of N8trillion with its population of only 53 million, adding that the nation must optimise her resources.

He said Saudi Aramco generated $160bilion while the Nigerian National Petroleum Corporation Limited(NNPCL), on account of its inefficiency, says the Federal Government even owed it.

He advised the Federal Government to stop bleeding and plug the leakages as typified by fuel subsidy, end unproductive waivers and foreign exchange distortions, adding that there a lot of wasteful intervention in the system which the Federal Government must stop.

Similarly, he decried the high cost of tax collection, which is fuelling corruption and address the leadership challenge. He cited the National Assembly, Economic and Financial Crimes Commission (EFCC) and MDAs alleged by the Auditor-General of the Federation report of defaulting in tax payment.

He also stressed the need to harmonise the taxes in the country which he said are officially 60 and unofficially 200. According to Oyedele, the Manufacturers Association of Nigeria (MAN), Rivers State chapter, pays 197 different taxes.

He lamented that because of the broken social contract, there is low morale by people to pay tax, stressing that only 17 per cent believe in paying tax is right while 83 per cent doesn’t believe so.

He cited the Nordic Region consisting of Denmark, Norway, Sweden, Finland, and Iceland, as well as the Faroe Islands, and others pay high taxes while their governments spend more on their people, adding that it is the reason why the people are happy and their inequality is one of the lowest in the world.  He said tax was not the problem by the value. 

According to him, the fiscal and tax space of the country is ill, adding that low tax to gross domestic product (GDP) ratio, high borrowing costs informal tax collection by non-state actors and others are symptomatic of the ills affecting fiscal and tax system. He cited the collection of ‘taxes’ by road transport workers popularly called agberos in Yoruba parlance estimated at about N1billion yearly without anything to show for the collection as an example of the sickness in the tax structure.

He decried not only multiple taxes and earmarked levies but the existence of multiple collection agencies and blamed filing gap, under reporting and underpayment of taxes for the low tax revenue and urged the Federal Government to do away with tax ID system and use the National Identity Number (NIN) for individuals and Corporate Affairs Commission (CAC) registration for corporate organisations.

He also advised the government to review the national tax policy without necessarily overtaxing the people, change the tax culture and renew the social contract with the people.

He also insisted that politicians must pay tax before supretending over the national resources, adding that the Federal Government must also prioritise what the available scarce cash will be spent on.