The Nation Newspaper

Category: Industry

  • Experts renew call for tax laws, processes’ review

    Tax practitioners have renewed the call for a review of the nation’s tax laws and their processes, saying it is the only way to drive increased revenue and the Gross Domestic Product (GDP).

    Given Nigeria’s declining revenue base, the experts, who gathered at the maiden edition of GTL Trustees Limited’s Annual Thought Leadership Roundtable Series, in Lagos, during the week, stressed the need for the government to create a robust framework for taxing the informal sector and high net worth individuals.

    They noted that the failure to tackle the myriads of problems besetting tax administration amid global outlook of low oil price would continue to limit the nation’s revenue base and create some level of inequity in the system.

    PricewaterhouseCoopers (PwC), a leading professional services firm, has put the tax-to-GDP contribution at an abysmal six per cent.

    The PwC added that this figure was far less impressive compared with what obtains in other countries, using the same socio-economic parameters where tax-to-GDP could be as high as 15 to 25 per cent.

    “While Ghana and Egypt tax contribute 16 per cent, Morocco and South Africa tax to GDP ratio is put at 22 and 27 per cent, respectively,” PwC said.

    The experts, therefore,  suggested that tax reforms should be carried out urgently to effect relevant and necessary changes in the tax system and address both contentious and contemporary issues.

    a Partner and West Africa Tax leader with Deloitte Nigeria, Yomi Olugbenro specifically regretted that some aspects of the nation’s tax system were posing a threat to investment inflow.

    The government, he noted, must adopt an approach that would help provide a workable tax system and boost the revenue earning capacity.

    According to him, rather than compelling a larger percentage to be more tax compliant, the government should deal with trust deficit.

    Trust deficit, he said, arises when citizens believe that the government will act in their best interest, and it then  becomes harder for government to secure public support for reforms.

    Olugbenro added that taxes paid by the citizenry are meant to support the government to provide social services and development projects hence, when that contract is not being fulfilled, the government finds it difficult to secure citizens’ support

    Oasis Group Limited, Managing Director, Adewale Adegbite, urged government at all levels to accelerate technology adoption in tax administration to boost compliance and improve efficiency.

     

     

     

     

  • How to make ECOWAS trade liberalisation work, by LCCI

    The Economic Community of West African States (ECOWAS) Trade Liberalisation Scheme is supposed to be the operational tool for promoting intra-regional trade and boosting economic activities. However, some aspects of its implementation appear to have made the realisation of its objectives difficult, particularly for real sector operators. But the Lagos Chamber of Commerce & Industry has suggested ways to make the scheme work. Assistant Editor OKWY IROEGBU-CHIKEZIE reports.

    Members of the Lagos Chamber of Commerce & Industry (LCCI), particularly exporters, are literarily up in arms against Economic Community of West African States (ECOWAS) Trade Liberalisation Scheme (ETLS) administration. Their grouse: the ETLS, under its current management by the Foreign Affairs Ministry, is not serving exporters’ and other real sector operators’ interests well.

    They noted, for instance, the difficulties in exporting goods from Nigeria to other West African countries as a result of bureaucratic bottlenecks of product registration under the scheme, negate ETLS objective.

    The ETLS is the main operational tool for promoting free trade within the West African sub-region. The scheme was in line with the regional trade bloc’s objective of establishing a common market through trade liberalisation by abolishing, among member states, Customs duties on imports and exports and abolishing non-tariff barriers.

    It was envisaged that a free trade area will, among others, increase intra-regional trade, boost economic activities and increase the sub-region’s competitiveness in the global market. However, the administration of the scheme, under its current management of the Foreign Affairs Ministry, has come under criticisms by the LCCI and other real sector operators.

    Some of them, who spoke with The Nation, lamented that bureaucratic bottlenecks have made product registration extremely difficult for exporters. They insisted that to mitigate exporters’ sufferings, ETLS’s administration should be moved from the Ministry of Foreign Affairs to the Ministry of Industry, Trade and Investment, specifically the Nigeria Investment Promotion Commission (NIPC) to serve exporters better.

    LCCI President Mr. Babatunde Paul Ruwase, who pushed that the scheme’s administration be excised from of the Foreign Affairs Ministry, however, identified other gray areas that needed to be smoothened if Nigerian exporters must benefit fully from the scheme. He said, for instance, that there is need to address the multiplicity of foreign exchange (Forex) rate in the economy.

    Ruwase lamented that the gap between the Central Bank of Nigeria (CBN’s) N305 rate and other rates at N360 and above, has continued to create undue arbitrage for banks and transparency issues. “The supply side of electronic forex market, transfers and card transactions are still being compelled to surrender their forex at N305 rate instead of N360. This will continue to discourage forex supply through these channels,” he said.

    The LCCI, according to him, therefore, recommends that this arbitrage opportunity be closed by applying Bureau de Change (BDC) rate to forex supply transactions in the inward transfer and card transactions segments.

    Ruwase also said efforts should be made to build external reserves further to hedge against potential decline in the price of oil. “This can be achieved by attracting larger investment inflows from Nigerians in the Diaspora and foreign direct investors looking to participate in Brownfield and Greenfield infrastructure investment in Nigeria,” he added.

    The LCCI president also drew attention to excise duty on locally- manufactured goods. While recalling that the government recently commenced the enforcement of the approved amendment to the excise duty rates for alcoholic beverages, spirits and tobacco in Nigeria, he expressed the Chamber’s worry over the move to extend the duty to cover several other basic items.

    Ruwase lamented that the Nigerian Customs Service (NCS) excise duty list on its website was inclusive of many basic and essential products such as soap and detergent; toilet papers; cleansing or facial tissue and Spaghetti/Noodles.

    Noting that these are products consumed largely by ordinary Nigerians, he, however, argued that any the imposition of excise duty on them would further aggravate the poverty situation in the country and undermine the welfare of citizens. This, according to him, is particularly so, considering the fact that poverty incidence in the country was already over 60 per cent.

    He further lamented that the planned extension of excise duty to soaps and detergent will invariably increase their prices, make them inaccessible for the common man, and further heighten their plight amidst the current economic challenges that have reduced their purchasing power.

    The LCCI chief said excise duty rates penalises domestic production and incentivises importation, which conflicts with the vision of the Economic Recovery and Growth Plan (ERGP) regarding economic diversification, job creation and local value addition. He also made a case for tax incentives to manufacturing firms.

    Pointing out that the manufacturing sector is one of the most vulnerable sectors in the Nigerian economy, he said the sector is already grappling with several challenges that have continued to undermine its productivity and competitiveness.

    Ruwase listed some of them to include high operating cost, high energy cost, consumers’ weak purchasing power, unfriendly tax environment, high regulatory compliance cost, and influx of smuggled products and high cost of logistics.

    He argued that if the government cannot give tax incentives to manufacturing firms, it should not impose additional tax burden on them, given the challenging operating environment for production in the economy.

    According to him, it is even worse when such burden is on necessities consumed largely by the ordinary people. He said the LCCI was requesting an urgent rethink of the proposition to increase or impose excise duty on the production of basic needs in the economy.

    He also spoke on the outcome of the recent CBN Monetary Policy Committee (MPC) meeting, noting that although, the monetary policy rates were retained, making it the 10th retention of the rates by the MPC, this may not be unconnected to the CBN’s worry about the risks to inflation, exchange rate, foreign reserves and capital flows.

    While asking that priorities be given to job creation and poverty reduction, which he claimed are the cardinal programmes of the present administration, he said low interest rate will stimulate investment, impact positively on growth, create more jobs, increase income, and boost output, which will ultimately have a moderating effect on inflation.

    His words: “We commend the creation of a single digit interest rate window through the issuance of commercial papers by the large corporates, especially for the real

  • AfDB targets five million increase in Africa’s fish production

    The African Development Bank (AfDB) through its Technologies for African Agricultural Transformation (TAAT) programme is targeting a five million tonnes’ increase in Africa’s aquaculture production  by 2025.

    AfDB President Dr. Akinwumi Adesina and TAAT Programme Co-ordinator Dr. Chrysantus Akem said this at a workshop organised for focal countries under the TAAT programme in Abuja, during the week.

    Akem said TAAT programme, an initiative of the AfDB under the “Feed Africa”, was targeting to increase inland water fish to enable Africa to become self-sufficient in fish production.

    He noted that the programme’s priority was also to enlarge the cassava, rice, wheat, orange fleshed potatoes, maize, beans, sorghum and millet, livestock production and small ruminants.

    According to him, the AfDB initiated the programme with $120 million, hoping to use it as start up money to tap into $700 million that the World Bank has made available in its African Agricultural Transformation Programme.

    Akem explained: “TAAT was conceived to make sure that the Feed Africa is carried forward to bring together a number of value chains to see how to transform agriculture across Africa.

    “AfDB realised that there are lots of technologies, but they are either in shelves or in publications and Africa continues to import, spending more than $35 billion just on food crops, most of which it can produce.

    “AfDB took the lead in reviewing all available technologies to see how to transform agriculture in Africa. Bill and Melinda Gates have made available more than $230 million through AGRA to also support the programme.

     

     

  • NGO to organise skill acquisition for women IDP

    A Non-Governmental Organisation (NGO), Voice for Sisters Empowerment Foundation based in Jos, has concluded arrangements to organise skills acquisition programme for women in Internally Displaced Persons’ camp (IDPs) in Heipang, Barkin Ladi Local Government Area of Plateau State.

    Its founder, Mrs Abiola Dejo-Richards, made this known when she visited the camp to donate food items and toiletries.

    She said majority of the IDPs were women who required economic empowerment to provide for their children and also the sick and elderly left in their care.

    Represented by the Plateau Co-ordinator of the NGO, Mrs. Adefunke Treasure Dejo-Richards said the empowerment would commence at their subsequent visit.

    She said “We have collated the number of women and youths and would return to organise skills acquisition programme on beads making, disinfectants and soap making, among others.

    “We urge government to ensure speedy resettlement of the IDPs through reinforced commitment to protect lives and property.”

  • FBNQuest Asset Management highlights investment opportunities for Nigerians in London

    FBNQuest Asset Management, a part of the FBN Holdings Plc group, has called on Nigerians in Diaspora to take advantage of the numerous investment opportunities available in Nigeria. This call was made at the just concluded Nigerians in Diaspora (NIDOA) Global Development Conference in London.

    The conference presented a rare opportunity for Nigerians in the diaspora to engage in constructive and interactive sessions with key decision makers across different industries in Nigeria, encouraging stakeholders to partner and collaborate on investment schemes. A major highlight of the event was the pre-launch of the $20 Million Diaspora Housing Investment Fund – a closed end investment fund to be privately placed and constituted under a Trust Deed with a suitable Commercial Trustees to be selected. The fund will be established through the issuance of the similitude of a real estate investment trust scheme which will provide opportunities for individual and institutional investors to participate in the Nigerian real estate sector.

    The conference yielded fruitful discourse and exchange of ideas that examined the intersections between investment in human capital, natural resources, entrepreneurship, innovation and technology in Nigeria. As one of the major sponsors of the conference, FBNQuest Asset Management called on Nigerians in Diaspora to offer strategic expertise in their various endeavours to impact the country with knowledge and financial capacity, especially by way of investment. Speaking during the conference, Managing Director, FBNQuest Asset Management, Mr. Ike Onyia said “We want to partner with the Diaspora community through NIDO and its members. As a member of one of the leading financial services groups in Africa, we are well-positioned to serve the diaspora community professionally and to ensure their aspirations in the area of maximising investment returns are fulfilled”.

    Speaking further, Mr. Onyia said, “FBNQuest Asset Management is open to partnerships that will unlock the potential of the Nigerian diaspora community as a source of economic development. We provide bespoke solutions to organizations and individual investors looking to set up structures that can help them achieve their investment goals. As a trusted advisor and credible partner with sound local knowled

    FBNQuest Asset Management, a part of the FBN Holdings Plc group, has called on Nigerians in Diaspora to take advantage of the numerous investment opportunities available in Nigeria. This call was made at the just concluded Nigerians in Diaspora (NIDOA) Global Development Conference in London.

    The conference presented a rare opportunity for Nigerians in the diaspora to engage in constructive and interactive sessions with key decision makers across different industries in Nigeria, encouraging stakeholders to partner and collaborate on investment schemes. A major highlight of the event was the pre-launch of the $20 Million Diaspora Housing Investment Fund – a closed end investment fund to be privately placed and constituted under a Trust Deed with a suitable Commercial Trustees to be selected. The fund will be established through the issuance of the similitude of a real estate investment trust scheme which will provide opportunities for individual and institutional investors to participate in the Nigerian real estate sector.

    The conference yielded fruitful discourse and exchange of ideas that examined the intersections between investment in human capital, natural resources, entrepreneurship, innovation and technology in Nigeria. As one of the major sponsors of the conference, FBNQuest Asset Management called on Nigerians in Diaspora to offer strategic expertise in their various endeavours to impact the country with knowledge and financial capacity, especially by way of investment. Speaking during the conference, Managing Director, FBNQuest Asset Management, Mr. Ike Onyia said “We want to partner with the Diaspora community through NIDO and its members. As a member of one of the leading financial services groups in Africa, we are well-positioned to serve the diaspora community professionally and to ensure their aspirations in the area of maximising investment returns are fulfilled”.

    Speaking further, Mr. Onyia said, “FBNQuest Asset Management is open to partnerships that will unlock the potential of the Nigerian diaspora community as a source of economic development. We provide bespoke solutions to organizations and individual investors looking to set up structures that can help them achieve their investment goals. As a trusted advisor and credible partner with sound local knowledge and a rich pedigree, we will help them navigate through opportunities in the homeland’’.

    FBNQuest Asset Management is a leading asset manager in Nigeria for individual and institutional investors, guiding clients through Africa’s dynamic markets, while identifying the best opportunities to shape portfolios in line with specific investment goals. The firm was recognised as the ‘Best Asset Manager in Nigeria’ in the prestigious Euromoney Private Banking and Wealth Management Survey 2017, which is the industry’s leading barometer of the world’s best service and product providers. The survey covers 15 different product and client categories and has ranking results in 70 countries, in which FBNQuest Asset Management emerged number one in Nigeria.

  • Fed Govt to boost intra-African trade with infrastructure

    The Federal Government will drive products’ competitiveness with metrological infrastructure.

    Federal Ministry of Industry, Trade and Investment Permanent Secretary Mr. Edet Akpan stated this at the opening of the 12th General Assembly of the Intra-African Metrology Systems (AFRIMETS).

    The forum was hosted by the Standards Organisation of Nigeria (SON), in collaboration with the United Nations Industrial Development Organisation (UNIDO), in Enugu.

    Akpan, represented by a SON Governing Council member, Dr. Ifeanyi  Okoye, said the  government, through the ministry, SON and with the support and collaboration of UNIDO and the European Union (EU), is committed to establishing a virile national measurement system.

    He said this could be seen from the ongoing development of the National Metrology Institute (NMI) in Enugu.

    The commitment is aimed at developing, strengthening and upgrading the national metrological infrastructure to facilitate trade, enhance export, accelerate economic development, protect the environment and ensure the health as well as safety of consumers in the country and beyond, Akpan said.

    He said there has been huge investment in human capacity development in metrology and instrumentation over the years by SON. He acknowledged the supply of some equipment by the UNIDO, which are awaiting installation, assuring that the institute would fully become operational before the end of this year.

    According to him, the formation of the Metrology Society of Nigeria (MSN) and the hosting of the 12th AFRIMETS General Assembly are some of the positive signs of the growth, development and awareness on the science of measurements, accuracy and traceability.

    Earlier, SON Director-General Mr. Osita Aboloma expressed delight at the overwhelming attendance of 21 African member-countries and development partners at the AFRIMETS technical meetings and general assembly in Enugu, Nigeria.

    He said the country’s membership of AFRIMETS and other continental and international standardisation bodies through the SON is a deliberate effort in ensuring that the country participate actively in the development of international standards with a view to benefitting immensely from the domestication of same.

    Declaring the event open, Enugu State Governor Ifeanyi Ugwuanyi reaffirmed the state’s preparedness to support the NMI project by reconstructig the road leading to the site. He pointed out that its actualisation would lead to rapid economic development of the nation.

    Represented by the Commissioner for Special Duties, Cornell Onwubuya, he commended SON for the giant stride.“We’ll continue to support SON in its efforts to rid the Nation of substandard products and promote rapid industrialisation,” he siad.

    Also, UNIDO Regional Director, Mr. Jean Bakole reiterated the organisation’s commitment to the actualisation of the National Quality Infrastructure (NQI) project, of which metrology is a key component.

    He acknowledged the support of the EU towards the UNIDO Country project including the NQI, among others. He stressed that the NMI development was a pride to the UN family.

    AFRIMETS Chairman Mr. Dennis Moturi expressed the organisation’s appreciation to the Federal Government and people for the hosting of the General Assembly. He said SON has been a good representative of the nation in the metrology fraternity.

     

  • FIIRO chief seeks increased funding for agric

    The Federal Government has been urged to increase budgetary allocation to agriculture to boast food production.

    The Federal Institute of Industrial Research Oshodi (FIIRO) Director-General, Prof Gloria Elemo, who gave the advice at the fifth convocation lecture of the Landmark University, Kwara State, said poor funding was a major impediment to agric revolution.

    She identified other factors impeding the revolution to include increasing population and the un-quenching thirst for white-collar jobs.

    In the lecture titled: Driving agricultural revolution: A spur for industrial breakthrough and sustainable development, she lamented that 46 per cent of Nigerians still live below the poverty line, irrespective of the huge untapped indigenous technologies in the country.

    She said FIIRO would continue to promote agriculture and improve on its value chain through proper processing technologies to enhance economic growth.

    Dr Elemo said cassava initiates in which over 25 by-products have been developed from cassava; the ready to use therapeutic food for the elderly; the development of nutraceutical for sickle cell anemia patients; the high nutrient density biscuits that can meet one third dietary needs for school-age children are some of agro-based research results from FIIRO.

    She said agriculture, now more than ever, was needed to stimulate growth and development in urban and rural areas through all levels of value chain.

    Lending his voice to the topic of the day, Landmark University Chancellor Bishop David Oyedepo said the institution was poised to revolutionise agriculture, urging graduands to take advantage of the numerous opportunities in the sector.

    To this end, the two institutions signed an MoU to kick-start agricultural revolution through staff exchange, human capacity building, joint ventures and students industrial training.

  • Govt endorses two varieties of GM cotton for farmers

    Cotton farmers in Nigeria may have been given a lifeline following the registration of two Bt Cotton varieties by the National Committee on Naming, Registration and Release of Crop Materials.

    The genetically-modified (GM) Bt Cotton is said to have failed in Burkina Faso, with farmers making claims from Monsanto

    The Director/CEO, National Biotechnology Development Agency (NABDA), Prof. Alex Akpa, said the approval and registration were granted at the 26th meeting of the committee which held recently in Ibadan, Oyo State.

    Akpa said the registration marked the entry into the nation’s agricultural system, the first home-grown genetically modified crop.

    “Bt Cotton varieties that have just been registered are highly viable when compared to the local conventional alternative; the yield is 4.1 to 4.4 tonne per hectare while the local variety is 600 to 900kg per hectare,” he said.

    According to him, there are other crops undergoing confined field trials at various stages in different research institutes across the country.

    He said: “With this development, Nigeria has demonstrated that it has the institutional capacity and human resources to safely deploy genetic engineering in the agricultural sector. This feat achieved by this registration goes to show also that the Federal Government’s investment in our research institute is not in vain. With encouragement and support from the government, Nigeria has registered its home-grown GM cotton, saving our farmers the trouble of contending with the local conventional variety which is no longer accepted at the international market,” he added.

    Akpa noted that the development has a wider implication for the socio-economic development of Nigeria as the comatose textile industries that have been under lock and key over the years now have a hope of resuming production as farmers will have access to high- yielding cotton variety.

    He said the new variety has the potential of being adopted in all cotton growing zones of Nigeria with maturity of 150  to 160 days.

  • ‘Why National Tobacco Control Act implementation was delayed’

    The need to regulate some provisions of the National Tobacco Control Act has caused the delay in its implementation, National Co-ordinator, Non-Communicable Disease Control Division, Federal Ministry of Health, Dr Nnenna Ezeigwe, has said.

    Dr Ezeigwe made this known in her presentation at a one-day training of some government officials on Tobacco Taxation in Nigeria in Keffi, Nasarawa State during the week.

    The training was organised by the Civil Society Legislative Advocacy Centre, in collaboration with Tobacco Tax Advocacy in Africa.

    Represented by the Head  Tobacco Control Unit, Dr Malau Toma, Dr Ezeigwe said 70 per cent of the provisions required regulations before the full implementation of the law.

    She said those provisions had been worked on, presented and approved by the Federal Executive Council (FEC).

    According to her, it will be sent back to National Assembly for final approval soon.

    Dr Ezeigwe said: “We have developed a work plan on other ones that require no regulation like tobacco smoking in public places, ban on selling cigarette in one stick as well as sending minor to buy tobacco. Necessary measures are being put in place to commence enforcement on those provisions that do not need any regulation.”

    She further said the Ministry of Health had paid advocacy visits to law enforcement agencies for collaborations to ensure the smooth implementation of the Act, underscoring the need for continuous media sensitisation to educate the citizenry on the act.

    Dr Ezeigwe also suggested ratification and implementation of protocols to eliminate illicit trade in tobacco products.

     

     

  • Nestle sees huge export benefits in AfCFTA

    Head of Corporate Communication and Public Affairs, Nestle Nigeria Plc, Gloria Nwabuike, has said there is  a lot of potential in the African Continental Free Trade Agreement (AfCFTA).

    She stated this a media parley in Lagos.

    She said: “We see a lot of potential in the African Continental Free Trade Agreement (AfCFTA). It will make it easier for us to get the documentation, all the approvals and all that we need to export because for us, that is something that really causes a lot of delays, bottlenecks, and all that, and looking at the shelf-life of products, that is a struggle for us a lot of the time. So, the AfCFTA should actually make it easier for us to operate in this environment in the way that we have been operating already.’’

    “You know that Nestle is present not only in Nigeria but across West Africa, also across East Africa and across South Africa. The way we operate at Nestle is to consolidate our base and then export to neighbouring countries, so our products are already going across the continent, for instance, the Nescafe we have here are imported from Ivory Coast leveraging on our regional hubs and the GoldenMorn which is made in Nigeria, is going across the borders to other countries.