The Nation Newspaper

Category: Industry

  • BoI gets CBN licence

    BoI gets CBN licence

    The Bank of Industry (BoI) has secured Central Bank of Nigeria (CBN) licence after meeting the requirements for Development Finance Institutions (DFI).

    A statement by BoI said  CBN  approved its application for the licence, in line with the CBN guidelines which stipulate, “all existing DFIs whether established directly by an Act of the National Assembly, incorporated under Companies and Allied Matters Act (CAMA) or any other law shall be required to obtain license from the CBN.”

    Similarly, the bank noted that to drive industrialisation, it has embarked on strategic and tactical initiatives to reposition its operations.

    “BoI wishes to reiterate our readiness to continue to provide financial support to SMEs and Large Enterprises with good business propositions. The Bank will also continue to provide business support and capacity building for SMEs.

    “We have in recent times taken bold steps, both strategic and tactical, to reposition the Bank among which are the formulation of Strategic Plan 2015-2019; institutionalisation of corporate governance structures; implementation of enterprise wide risk management and compliance systems; and introduction of mobile and digital platforms for interfacing with Nigerian SMEs, thus improving our efficiency.

    ”We have also Introduced cluster specific SME products for Agro-processing, Nollywood, Fashion business, and others; we also expanded our branch network from seven  to 14 offices to bring our services closers to our customers; our operations have also been certified  as we  recently secured the ISO 9001:2008 Quality Management Systems (QMS) Certification as well as secured good credit ratings from Agusto & Co (A-) and Fitch Ratings (BB-).

    ”Our ongoing SME Cluster development initiative will ensure that all credible SMEs in Nigeria can feel the impact of BOI in due course”, the statement read in part.

     

  • Wanted: Progressive taxation

    Wanted: Progressive taxation

    The Organised Private Sector (OPS) is worried about the multiple taxes being paid by its members.  It attributes the high cost of doing  business to the taxes, contending that they could discourage investors, if not scrapped. The body is urging the government to streamline its tax policy and create a conducive environment for local production. OKWY IROEGBU-CHIKEZIE writes.

    The shift in focus from oil revenue to Internally Generated Revenue (IGR), analysts say, is a positive development. They noted that it will have a long-term effect and foster rapid economic development. They are also of the opinion that it will make the states more resourceful and enhance their entrepreneurial capabilities as they seek avenues to generate more revenue.

    A recent World Bank report stated that reforms such as improvement of tax agencies could lead to much higher tax collection. Kieran Holmes of the Britain’s Department for International Development helped Rwanda to increase its tax revenue by six-and-half-times after automation of the tax collection process.

    Lagos State government was also reported to have made N276.1 billion in 2014 and N384.2billion in 2013 from taxes, because of automation and reform of its tax systems.

    Tax experts in developed countries also believe that the more tax revenue a country generates, the greater developmental growth it attains. They also agree that for the private sector to be constructively engaged in taxation principles, there is the need to satisfactorily provide basic structures and facilities that support positive economic amenities and performance.

    According to the United States National Infrastructure Improvement Act of 2006, the amenities include water supply and distribution system, wastewater collection and treatment facilities and surface transportation facilities. Others are mass-transit, airports and airway, resource recovery facilities, waterways, flood-control facilities, docks or ports, school buildings and solid-waste disposal facilities.

    President, Lagos Chamber of Commerce and Industry (LCCI), Remi Bello asked for a review of the tax regime to make the tax system more progressive in character, especially with regard to consumption tax.

    “VAT on luxury items and services should be reviewed, tax administration needs to be strengthened for effectiveness and reduction of leakages in tax revenue. The issue here is not about increased tax rates, but making the system more efficient.” he added.  Bello said the Organised Private Sector (OPS) is in support of efficiency in taxation and the supporting infrastructure to stimulate business operations.

    The LCCI boss outlined some of the challenges faced by the economy especially with regards to self-reliance and poor productivity. He urged government to accelerate investment in infrastructure and build quality institutions for better productivity and competitiveness in the economy. “It is difficult to diversify an economy where there are no infrastructures, where institutions are very weak and where the cost of funds is prohibitive. These are fundamental issues”, he said.

    Manufacturers Association of Nigeria (MAN) also said they are not averse to taxation but that their position is that it must be progressive and supportive of the sector. They identified Rivers, Anambra and Lagos states as some of the most unfriendly areas in the country in terms of excessive taxation.

    MAN made this known in a 96-page report it submitted to the National Economic Council, (NEC), on the business environment in some states and Federal Capital Territory, Abuja, last year.

    The document was entitled, ‘’MAN Presentation on Multiple Taxation Across the country at various levels and its effects on Manufacturing Sector’s Productivity.’’

    The report, showed that apart from the 19 taxes or levies approved by the Federal Government as contained in the Taxes and Levies (Approved List for collection) Act Cap T2 LFN, 2004, there were multiple taxation on investors or entrepreneurs in 17 states of the country.

    It stated that manufacturers pay 44 additional taxes or levies in Lagos State, just as 59 additional taxes/ levies were paid by them in Anambra State.

    According to MAN, 54 additional taxes or levies were paid in Rivers State while manufacturers paid a total of 97 taxes or levies in the state.

    However, in Edo State, manufacturers pay altogether, 16 taxes and levies while 20 different taxes and levies were paid in Delta State.

    In Kaduna, manufacturers pay altogether, ‘’22 approved and other charges,’’ with the local governments imposing nine additional taxes/ levies.

    In Kogi, the state government collects 18 taxes and levies while the local governments imposed five other multiple taxes or levies on entrepreneurs.

    In some of the unfriendly states identified by MAN, the state governments, local governments and development centres task entrepreneurs same taxes or levies they had paid to the Federal Government, even when the levies or taxes were on the exclusive list.

    ‘’In addition to the taxes paid/payable to the local governments under the Act 2004, a total of 24 additional taxes and levies are collected by the local governments in Lagos State…,’ the report stated.

    Under the harsh tax environment, the federal, state and local governments collect multiple taxes/levies on seven items respectively, while six other forms of taxes were jointly collected by both the federal and Lagos State governments separately. Furthermore, the Lagos State and its local governments collect 32 other multiple taxes from investors apart from those paid to both federal and the state governments.

    Apart from the 19 taxable items in the 2004 Act, 11 other forms of taxes were also said to have been introduced by the Anambra State government, while 39 other forms of double taxation were collected by the local governments in the state.

    ‘’In addition to the taxes paid/ payable to local governments under the Act 2004, a total of 36 other taxes and levies are collected by the local governments in Anambra State,’’ it added stating further that some of the levies included, ‘’ reform and conveyance permit, route identification, unified council emblem, loading and off-loading permit, oil and gas sticker, environmental pollution, mobilization fee; community fee and gate way permit, among others.

    In both Anambra and Lagos States, residents who go to the markets to buy food items pay land taxes before they were allowed to load their food items into vehicles in the motor parks.

    However, in Enugu State, where manufacturers pay 23 additional taxes and levies, the manufacturers identified only six forms of multiple taxations by both the state and local governments. They include property rent/ground rent tax, environmental levy/ Effluent tax and Sanitation rate/ refuse disposal levy.

    Members of the Cocoa Produce Merchants Association of Nigeria in Ondo State also raised an alarm over the effect of multiple taxes on their businesses.

    The Chairman of the association, Abiodun Jacob, and the Secretary, Oyelere Adebayo, said the various taxes levied on members of the association has created a great burden for them and the general public.

    The association had in a statement said Cocoa merchants in Ondo state are being levied heavily by the state government through its produce department, claiming that they pay nothing less than N500, 000 for the warehouse where they operate and at the same time made to pay another levy on same title in the name of another heading as business premises fees.

    The association said the measures by the produce department would affect the poor farmers and the economy of the state drastically, appealing to the state government to quickly redress the issue.

  • 2015 Agrikexpo holds Nov

    Agrikexpo, the foremost event for agribusiness development in West Africa,  will hold in November at the Eko Convention Centre, on Victoria Island, Lagos.

    Now in its fourth edition, the 2015 Agrikexpo is chosen and partnered by the European Union (EU-Nigeria Business Forum, Federal Ministry of Agriculture and Natural Resources, and National Agency for Food, Drug Administration and Control (NAFDAC).

    According to the Director, Public Communications, 151 Products Limited, the organisers of the expo, Mr. Alex Oke, the event  is a rallying point for agribusiness development, and is coming at a time the nation is focused on taking agriculture to the next level.

    He said this year’s event would feature several seminars that would focus on poultry, agrochemicals and food technology, as West Africa is indeed, a fast emerging destination for agricultural investments in view of its vast arable land.

    The Coordinator, Nigeria Agriculture Business Group (NABG), Mr. Emmanuel Ijewere, said he is proud to be associated with the event -AGRIKEXPO/FOODBEXT, hence he has invited all stakeholders and members of the association to the event.

    The NABG is the umbrella association for all agribusiness stakeholders in Nigeria determined to see to the total transformation of the agric sector.

    AGRIKEXPO is coordinated by Foodbext West Africa, which is totally dedicated to food/beverage products/services, including processing and packaging product, and has been endorsed by the various market associations for food and beverage products from Nigeria and neighbouring countries.

    The Head of Delegation, EU delegation to Nigeria/ECOWAS, Mr. Michel Arrion, said the synergy between the EU-Nigeria Business Forum and Agrikexpo is a good opportunity for European companies to interact with Nigerian firms for the maximisation of value with both events.

    Sam Ohuanbunwa, Chairman, 151 Products Limited, used the opportunity of the recent interaction with newsmen to thank the Federal Ministry of Agriculture and Natural Resources, and NAFDAC for their continued support and collaboration, especially at this time the nation had intensified the focus on agricultural development.

    “It is clear that agriculture holds a great potential for Nigeria as globalisation continues to erase the economic boundary between nations,” he said.

  • JCI fetes Asia business community

    The Junior Chamber International Nigeria (JCIN) has concluded plans to host a business forum – ‘Let’s go to Asia’ on Setember 27, at the Intercontinental Hotel, Lagos.

    Let’s go to Asia is a prelude to the centenary anniversary of JCI holding in Kanazawa, Japan.

    The forum is offers a platform of opportunities to promote business relationships between young Nigerian business leaders and Asian companies.

    On the initiative, JCIN National President Mr Seun Osikalu said: “Our members invest a lot of resources on their various travels around the world for JCI programmes and conferences. These events provide enormous opportunities for our members to establish lifelong relationships and we want our members and interested members of the public to take deliberate advantage of such opportunities. We have partnered with Asian trade and commercial missions in Nigeria to come sell their countries and they are excited at the prospects that the forum offers.”

    Also, the National Director of Business Affairs, Mr Jide Benson said: “We reckon that since a large delegation of our members will be attending the week-long world congress in Kanazawa Japan, which will be an opportunity for direct interaction with business organisations and people in the Asiatic regions – Korea, Taiwan, Indonesia, Singapore, Phillipines, Malaysia, Japan and others – so we thought it fit to be equipped with the right information and knowledge before departure. The region, being the hub for manufacturing and production, has a lot to offer discerning business people.”

    The event is a fee for interested persons and is open to members and non members seeking opportunities to be tapped in Asia and JCI Nigeria is proud to see the need and take the lead.

    The Junior Chamber International is a world federation of  young (community  and business) leaders that provide development opportunities for active citizens to create positive change.

    Entrepreneurship is one of the ideals that the organisation promotes sand the LTGA is geared towards this area.

  • BoI partners 122 BDSPs on SME promotion

    BoI partners 122 BDSPs on SME promotion

    To address the bane of Small and Medium Enterprises (SMEs), the Bank of Industry has signed a service pact to engage 122 Business Development Service Providers (BSDPs).

    Its Managing Director, Mr Rasheed Olaoluwa stated this at the 7th luncheon of Ikorodu Chamber of Commerce and Industry. Its the theme was Role of the Bank of Industry in the Development of Nigeria’s Industrial Sector in the current dispensation.

    He said the BSDPs would sharpen loans application, documentation and pre-disbursement conditions, business plans and feasibility study, progress rate as well as reduce Time Around Time (TAT).

    His words:“This is in fulfilment of our core mandate of providing long-term financial and business support services to large, medium and small projects.”

    According to him, the bank plays a major role in financing businesses through products and services like micro-credit lending, SME lending, large enterprise lending, cassava bread fund, cement fund, sugar development council fund, rice intervention fund, business fund for women including other packages. He explained that such assistance is rendered to scrupulous clients who display a good track record that meets loan repayment.

    ICCI president Mr Jamiu Saka praised BOI for sensitising SMEs about various aids and disbursements available to them, noting that businesses and establishments are eager for favourable times under the current dispensation.

    “As we all know, it is a new dawn in Nigeria and expectations are very high of a change for better in the life of the nation. Businesses and industries especially look forward to and are sincerely entitled to improvement in their fortunes, howbeit in terms of provision of better infrastructure, conducive environment and not at the least, access to loans and credit to finance their operations,” he said.

    Reiterating that SMEs have a strong hold on economic growth and promotion of even development, Saka said the luncheon was an avenue to scale the readiness of BOI to realise the desired growth and development.

    In a related development, BoI has an investment commitment of $6 million (N1.2 billion) in SMEs. According to a statement released in Lagos, the bank said the investment commitment came through the $60-million Venture Capital Fund raised by Grow Africa Equity Partners Limited.

    It said the Venture Capital Fund focuses on providing equity capital with strategic and operational support to early stage.

    The statement quoted BoI Managing Director as saying:“Nigerian businesses cannot be built on debt alone. It has long been part of  the bank’s vision to find ways to provide sorely needed equity capital and business advice to promising Nigerian businesses. Our partnership with Grow Africa is one of the avenues for realising this vision and we remain committed to the pursuit of our core mandate,” the statement reads.”

    It also quoted Olaoluwa as stating that the investment commitment was informed by the track record of Grow Africa’s partners. He said: “Our commitment was also informed by the developmental impact of their existing portfolio and their strong pipeline for potential new investments.”

    In statement also, the Chairman of Grow Africa Equity Partners Limited, Adedotun Sulaiman, said Nigerian businesses could become global leaders with the right type of support. “Over the past 10 years, I have provided capital and advice which have helped several businesses grow from ideas into multi-billion Naira industrial leaders.”

    He noted that the partnership, will spur more entrepreneurs to realise their dreams of creating leading companies and delivering massive value to Nigeria.’’

    On his part, Managing Director of the firm, Afam Edozie, said: “we are extremely pleased with this partnership with BoI. This is a strong signal of the bank’s commitment to supporting indigenous Fund Managers to catalyse growth and sustainable development in Nigeria.”

    He added that the new investment will increase development impact and socio-economic benefits through the creation of additional jobs, development of local entrepreneurship and will create additional fiscal revenue to government. He further praised  BoI’s dedication and passion in helping to build world-class industries in Nigeria.

  • Overcoming challenges in sugar production

    Overcoming challenges in sugar production

    Following the Federal Government’s policy of increasing local production of sugar through mini plant technology,   the National Sugar Development Council (NSDC) and other organs of government have taken steps to ensure compliance and delivery of incentives to address challenges, reports OKWY IROEGBU-CHIKEZIE.

    Despite  the huge potential for the production of sugar, Nigeria produces less than two per cent of its  requirement, estimated at 1.7 million tonnes, according to the United States Department of Agriculture (USDA).

    Data obtained from the National Sugar Development Council (NSDC) indicate that sugar consumption in 2012 was 1.1m tonnes against the domestic production of 10,843 tonnes.

    Within the period, 1.1m tonnes was imported at $517.2 million. To address the shortage, the Federal Government has come out with a policy to increase local production. The policy aims at instituting mini sugar plant technology and a package of incentives.

    But industry watchers, who applaud the policy, said with a landmass of over 500,000 hectares suitable for cane and capable of producing over five million metric tonnes of sugarcane, the nation had no business importing sugar.

    Nigeria produces two per cent of its requirement, importing 98 per cent of the commodity. This was attested to by AFDB President Dr. Akinwumi Adesina.

    The Nation checks revealed that  due to challenges faced by sugar cane farmers, which have made the commodity highly unexploited, key players have remained in the business by importing  from Brazil.

    There are five major players in the industry: Dangote Sugar Refinery (DSR), BUA Sugar Refinery, Savannah Sugar and Josepdam Sugar Company, and Flour Mills of Nigeria.  Dangote Sugar produces 1.44 million tonnes.  BUA adds 720,000 metric tonnes.

    Dangote Refinery, which supplies 70 per cent of the local market requirement, plans to spend $1.5 billion to increase output over the next five years.

    “In the next five years, we should be able to produce 1.5 million metric tonnes locally, from around 50,000 metric tonnes now,” Abdullahi Sule, Managing Director of DSR, told Reuters in Abuja.

    To revamp the sector, the Federal Government has initiated incentives for an enabling environment for investors.

    Among the incentives are zero per cent duty on machinery and spare parts by companies, as well as 10 per cent import duty and 50 per cent levy on imported raw sugar. There is equally a 20 per cent duty and 60 per cent levy on imported refined sugar.

    The government has also begun a credit support scheme for sugarcane growers through the Central Bank of Nigeria (CBN) and commercial banks; in addition to provision of infrastructure, such as access roads, boreholes, power lines, land acquisition, and health care facilities for new sugar estates.

    To reinforce its commitment, it has banned refined sugar in retail-ready packets into the country.

    According to industry watchers, privatisation of sugar estates has improved the subsector; it is now better managed. This, to them, can be attributed to the Nigerian Sugar Master Plan (NSMP) and the National Sugar Development Council.

    But the challenge remains evolving strategies to meet the demands of about 168 million consumers and prevent huge spending on imports.

    Industry players contend that there is an urgent need to establish mills where sugarcane can be crushed. They also add that sufficient portions of land should be made available to grow the plant. Sugar cane farmers complain of dearth of industrial buyers which leads to immense post-harvest wastage.

    Analysts believe that the establishment of a board to link buyers (companies) and sellers (farmers) could be a way out.

    Reacting to the development, the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA) lauded the policy, describing it as a bold step which, if well implemented, will  have a multiplier effect on the sugar sector.

    “If we don’t want to move backward, we should take our destiny in our  hands to reduce importation, save the naira and the exchange rate and give jobs to our people,” said former NACCIMA Director-General, John Isemede.

    He said the private sector strongly believes that with these incentives, new investors will come into the sector while existing ones may expand their operations which would create jobs.

    “Those who are service providers, those who are into agro chemical and implements will have jobs,” he emphasised.

    However, he urged that priority should be given to companies and individuals in form of tax holidays, so that: ”We  do not leave our gates open for people to come in only to invest and after four-to- five years, because you have given them pioneer status, they will relocate to neighbouring countries.”

    “There should be a road map and it should be properly monitored so that we do not solve one problem and create multiple other problems. So, the position of NACCIMA, or the OPS, is that it is a welcome development because it will create jobs, it will reduce the price of sugar

    “In addition, it will help the country to move from its present level of the consumption of granulated sugar to cube and brown sugar, the one used for cake-making, so, it is a welcome development”.

    He noted that extant companies in the sector, such as Dangote Sugar Refinery and BUA Sugar Refinery, are into pack sizes now, and they have big sugar cane farms.

    “Dangote has a big farm in Numa, Adamawa State, which is the Savannah Sugar Company. So, they can now continue to invest more. You heard of Bacita Sugar, there is one in Hadejia and there is another one in Kwara. So, these are opportunities that we have to tap into to develop our economy,” he added.

    Managing Director, A &P Foods Limited, Sameer Vaswani, manufacturers of HAANSBRO brand of biscuits, chewing gums and sweets, also hailed the policy.

    Vaswani said: “The three main raw materials required for biscuit production are flour, sugar and palm oil. The long-term policy of encouraging local sugar cane plantations and growing of sugar cane locally is a fantastic policy but it needs time as sugarcane planting and harvesting cannot just start overnight.”

    In order to ensure availability of sugar cane, Executive Secretary, National Sugar Development Council, Abuja, Dr. Latif Busari, unveiled plans to cite 236,000 land banks in 17 states for sugarcane production.

    He listed the states as  Katsina, Zamafara, Jigawa, Imo, Ogun, Kwara, Kogi, Edo, Cross River, Benue, Taraba, Ogun, Plateau, Ondo, Anambra  and Adamawa.

    According to him, the industry is a promoter of investment, job and wealth creation and a tool for rapid rural development as it creates communities that are self-sufficient.

    As an example, he said that in India, the sugar industry employs one million people directly and six million indirectly, stressing that it is what it will do for Nigeria.

    He advised the Federal Government to encourage states to make land available to existing and prospective investors for the project. He said the expected cost of implementing the project to raise local sugar production for self-sufficiency as in the cement is about $3.1 billion. This will stem the tide of importation and enhance the production of ethanol and electricity generation.

    In an interview, former Minister of Trade and Investment, Mr. Olusegun Aganga, said compared to other West African countries, Nigeria produces two per cent of the 2.5 million metric tonnes of sugar required for its 170 million population while over 75 per cent of raw sugar is imported and granulated by a few investors in the sugar sector. Thus, the country is the lowest producer in the region, in spite of abundant raw materials for sugar production across the country.

    For instance, Benin Republic produces 25.6 per cent of its sugar requirement; Burkina Faso, 47 per cent; Cote d’Ivoire 54 per cent; Senegal, 48 per cent and Mali, 28 per cent.

  • Gabon is top sub-Saharan African country in retail growth

    Gabon is the most attractive sub-Saharan African country for international retailers to target due to strong economic growth and a stable middle class, according to A.T. Kearney’s African Retail Development Index.

    The study, which evaluated 48 countries in the region, ranked Gabon ahead of Botswana, Angola and Nigeria, Africa’s biggest economy and most populous country.

    The index, published by the United States (US) consultancy, is compiled based on size of the urban population, business efficiency and risk of investment.

    “Scale will come to sub-Saharan Africa only when a few things happen, particularly the development of a shopping culture,” A.T. Kearney consultants including Mike Moriarty and Jaco Prinsloo said in the report. “The first priority in most markets is for basics and dry goods, but over time fresh supply chains and modern shopping space will be increasingly needed.”

    South African retailers including Shoprite Holdings Ltd., Woolworths Holdings Ltd and Pick n Pay Stores Ltd. are expanding on the continent to take advantage of higher economic growth rates than in their home market and rising household incomes.

    U.S. chain Wal-Mart Stores Inc is also adding new stores in sub-Saharan Africa through its Johannesburg-based, Massmart Holdings Ltd. None of the four chains have entered Gabon.

  • Diversification: Experts canvass appropriate taxation

    Diversification: Experts canvass appropriate taxation

    How should Nigeria diversify its economy to save it from the effects of falling oil prices?

    Appropriate taxation is the answer if the economy must be diversified. This is the view of experts and operators in real sector.

    In separate interviews, some of them noted that states that find it difficult to pay salaries have                                                                                                                                              poor Internally-Generated Revenue (IGR), in addition to the non-remittance of their monthly allocation from the Federation Account due to the fall in global oil prices. They argued that appropriate taxation is a viable way of diversifying the economy.

    For instance, the former Minister of Industry and Deputy President, Lagos Chamber of Commerce and Industry (LCCI), Mrs Nike Akande, made a case for appropriate taxation, noting that in the face of dwindling revenue from the Federation Account and the failure of state governments to meet their obligations, there is the need to encourage individuals and corporate bodies to pay taxes.

    “Without adequate taxation the government would not be able to provide key infrastructure. Everybody that is in a position to pay tax should do so without prompting, that is the only way government can work. The challenging economic environment provides opportunity for innovative policies that should encourage people to pay their taxes and for government to reward those who are faithful to their civic responsibility,” Chief Akande said.

    Akande, who is also a tax ambassador for Lagos State, an award she got for her diligence in income tax payment, praised the state government for its innovative tax policies which resulted in exemplary governance and competitive infrastructure.

    She, however, cautioned that multiple taxations is unhealthy for the manufacturing sector, calling for the harmonisation of taxes among the various levels of government to create an enabling environment for businesses to thrive.

    She advised the government to support the ‘Buy Nigeria’ campaign, noting that it is the only way products can be more competitive and the local industries stimulated.

    Her words: “A lot of people are buying locally-made and designed fabrics now. If our local designers become more creative, more people will patronise them. When l was a minister, l made sure that l wore locally made fabrics in all my official engagements. l would wish that the government continues to promote the use of local fabrics. If you tax manufacturers without encouraging them to grow with innovative policies and supportive infrastructure, you will kill the local industries.”

    President, Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), Mr Bassey Edem, also harped on the need to harmonise state and local government tax agencies that introduce spurious taxes inimical to the growth of businesses.  He said though he supports taxation, multiple and spurious taxation are injurious to business.

    He called for a stop to the exportation of raw materials. Rather, he said local industries should be encouraged  to use available local materials, add value to them and provide finished products that can earn foreign exchange.

    Edem further urged the government to invest in the energy sector by harnessing alternative sources of energy, such as wind, coal and solar, to improve electricity supply to support the manufacturing sector.

    President, Nigeria Association of Technology Incubation Entrepreneurs (NATIE), Mr. Duro Kuteyi, said manufacturers were not unwilling to pay taxes, but would want to be taxed fairly.

    Lauding the appointments at the Federal Inland Revenue Services (FIRS), he urged the government to look into the challenges facing Small and Medium Enterprises (SMEs) in terms of cost of infrastructure, multiple taxation and cost of funds.

    “Manufacturers are expecting a reduction in tax rates. We are also looking at the FIRS to have a window for us to discuss and for them to understand how the economy has dealt with the SMEs before now. Smuggling is killing the efforts of SMEs, big multinationals producing raw materials are also killing the SMEs by taking up their product and producing them en-masse. They should not also compete with SMEs in producing the same products because we cannot compete with them on spread, distribution network and financing,” he said.

    Kuteyi appealed to the government to address the challenge of power supply. According to him, fixed electricity charges on all sizes of SMEs are affecting operators severely. “They don’t want to listen. The government should really look at more protection for SMEs to thrive,” he added.

  • China needs economic reforms, says EU

    China needs economic reforms, says EU

    The European Union Chamber of Commerce in China has said China needs to accelerate its reforms to stop the slide in its economic growth.

    “The economy is slowing, and promised reforms are taking too long to implement,” the chamber’s president, Joerg Wuttke said.

    The yearly increase in Gross Domestic Product (GDP) has slowed to around 7 per cent, cooling the enthusiasm of many foreign investing companies.

    “It’s not the end of the world for us,” Wuttke said, ahead of the release of the chamber’s annual position paper, European Business in China.

    “One of the most urgent problems was the high level of China’s debt,” he said.

    The country’s total debt is estimated at 282 per cent of GDP, according to financial consultants McKinsey.

    “Around a fifth of the debt is held by government bodies, and nearly a quarter by financial institutions, with 44 per cent by non-financial corporations, and the remaining 13 per cent by households, ‘’Wuttke said.

  • JCI Nigeria fetes Asia business community

    The Junior Chamber International Nigeria (JCIN) has concluded plans to host a business forum – ‘Let’s go to Asia’ on Setember 27 at the Intercontinental Hotel, Lagos. Let’s go to Asia is a prelude to the Centenary anniversary of the JCI holding in Kanazawa Japan. The forum is a platform of opportunities to promote business relationships between young Nigerian business leaders and Asian companies.

    On the initiative, JCIN National President, Mr Seun Osikalu, said: “Our members invest a lot of resources on their various travels around the world for JCI programmes and conferences. These events provide enormous opportunities for our members to establish lifelong relationships and we want our members and interested members of the public to take deliberate advantage of such opportunities. We have partnered with Asian trade and commercial missions in Nigeria to come sell their countries and they are excited at the prospects that the forum offers.”

    Also, the National Director of Business Affairs, Mr Jide Benson said: “We reckon that since a large delegation of our members will be attending the week-long world congress in Kanazawa Japan, which will be an opportunity for direct interaction with business organisations and people in the Asiatic regions – Korea, Taiwan, Indonesia, Singapore, Phillipines, Malaysia, Japan and others – so we thought it fit to be equipped with the right information and knowledge before departure. The region being the hub for manufacturing and production has a lot to offer discerning business people.”

    The event is a fee for interested persons and is open to members and non members seeking opportunities to be tapped in Asia and JCI Nigeria is proud to see the need and take the lead.

    The Junior Chamber International is a world federation of young (community and business) leaders that provide development opportunities for active citizens to create positive change.

    Entrepreneurship is one of the ideals that the organisation promotes sand the LTGA is geared towards this area.