The Nation Newspaper

Category: Business

  • Minister seeks efficiency at port

    The Minister of Transport, Senator Idris Umar, has urged stakeholders in the maritime industry to collaborate with the Federal Government in its quest to ensure sanity and efficiency to the ports.

    Speaking at the launch of an Integrated Port Community Information System in Port Community Information System (IPCIS), he said, President Goodluck Jonathan’s administration is determined to make the ports attractive for business and urged the stakeholders to embrace the IPCI system.

    The benefits of the new system include ship reporting; on-line automated notice of arrival and departure of vessels, tracking; automatic identification system, weather current and tide information, port community system, cargo tracking, smart port technology, unattended asset sensor, and also useful in operation of inland container deport.

    The system could also provide solutions to various aspects of challenges in port operation; reduce cost, offers steady profits to stakeholders and act as trade facilitator centre.

    In his own remark, the Managing Director, Nigerian Ports Authirity (NPA), Mallam Habib Abdullahi said the system was launched as part of the efforts of NPA to promote efficiency at ports.

     

  • Customs fails to meet N320b target

    The Apapa Area One Command of the Nigeria Customs failed to meet its N320 billion revenue target last year.

    The command made N283 billion.

    On export, the command got as N129.9 billion, leaving a shortfall of N37 billion.

    Sources said the commodities exported included palm kernel cake, cocoa beans and wheat bran pallets, cashew nuts, sesame seeds, ginger, hibiscus flower, gum Arabic, processed rubber, shrimps, and lead ingot.

    Others were 4,625,837 square feet of processed leather, 74,547 cases of Dettol brand of disinfectant, Maggi Crayfish, 29,062 cartons of biscuits, 97,100 bags of assorted bathroom slippers and 1,655,320 litres of ethyl alcohol.

    Investigation also revealed that there has been an increase in the number of containers scanned at the Apapa port.

    The command scanned 18,489 containers last year.

    A breakdown of containers at the port shows that 3,390 were scanned for the first quarter with an average of 113 containers daily; the second quarter recorded 4,225 with a daily average of 142 containers.

    For the third quarter, 4,832 containers were scanned with a daily average of 161; 6,042 containers were scanned in the last quarter with an average of 201 scanned daily.

    Sources said a total of 14,128 containers were exited from the port using the fast track method.

    “Currently, 119 companies have availed themselves of this service and have achieved a monthly average of 1,177 containers exiting the ports under the scheme, a total of 14,128 containers were exited using fast track method,” the source said.

    Despite the fact that the command was N40 billion short of the expected revenue target for last year, Umar said an unprecedented N283 billion was collected as total revenue between January and December last year.

     

  • Minister, FIRS disagree over new property tax for Abuja

    Minister, FIRS disagree over new property tax for Abuja

    Federal Capital Territory (FCT) Minister Senator Bala Mohammed and the Federal Inland Revenue Service (FIRS) yesterday disagreed over a proposed property tax law for the FCT.

    The is coming even as the FIRS said it remitted N131.5 billion to FCT in the last eight years as Federal Capital Territory Administration’s (FCTA) share of taxes it collected in the zone.

    The disagreement came into the open at a joint session of the Senate and House of Representatives Committees on FCT and Finance public hearing on Bills for an Act to establish FCT Board of Internal Revenue Service and FCT Property Tax.

    The Minister supported the establishment of the revenue board, but the FIRS vehemently opposed the creation of a parallel revenue body in the FCT.

    The FIRS specifically said the introduction of new tax laws in the FCT will encroach on its mandate to collect taxes for the territoty.

    The agency called for the suspension of the proposed property tax in the FCT.

    Coordinating Director Support Services Group of FIRS, Osy Chuke, who represented the Acting Executive Chairman of the Agency at the session, said: “Our view is that the Constitution does not envisage the creation of two revenue collecting agencies of the Federal Government overseeing the FCT, given that the FCT is an agency of the Federal Government, just like the FIRS.

    “It should also be noted that there will be need for several legislative amendments to accommodate an FCT Internal Revenue Service.

    “The legislation to be amended will include: FIRS Act, Taxes and Levis Approved List of Collection Act; Personal Income Tax Act; the Stamp Duties Act and Capital Gains Tax Act.”

    He added that the proposed FCT IRS would encroach on the mandate of the FIRS in many ways, by providing for the collection of taxes that already are being collected by the FIRS.

    He said:“The creation of the two agencies to administer taxes in the FCT may not be efficient especially if the current efforts of government to streamline agencies and reduce duplication of duties are considered.

    “It should be noted that the FCT presently collects ground rent and tenement rates on properties through the Abuja Geographical Information System (AGIS) and the Abuja Municipal Area Council (AMAC).”

    Chuke pointed out that it is the wish of the FIRS that its current status as the collecting agency of the FCT should be maintained, saying the agency has been collecting taxes for the FCT over the years.

    It was also his view that the introduction of the proposed property tax be suspended until such a time that the Nigerian tax system can support the introduction of the new tax.

  • $67b reserves: Adamant Ezekwesili challenges govt to public debate

    $67b reserves: Adamant Ezekwesili challenges govt to public debate

    A former Vice President of the World Bank, Africa Region, Mrs. Oby Ezekwesili, yesterday remained adamant, saying the Federal Government should account for how it spent the $67billion reserves inherited from the former administration of ex-President Olusegun Obasanjo.

    She also challenged the Federal Government to a debate on all the issues she raised.

    She, however, added that she has nothing to hide on how she managed funds allocated to the Federal Ministry of Education during her 10-month tenure.

    Ezekwesili, who made her position known in a statement in Abuja last night, said she remains resolute in demanding accountability on the management of the Foreign Reserves and the Excess Crude Account.

    She said: “I remain resolute in demanding full disclosure and accountability by the Federal Government on the issues of poor management of oil revenues- especially the Excess Crude Account and the Foreign Reserve Account.

    “The recent reaction by the spokesperson of the Administration failed to respond responsibly to my demand for accountability.

    “In my Convocation Lecture at the University of Nigeria , I had stated concerning the poor management of oil revenues as follows:

    “While these countries moved up the manufacturing and economic development ladder in my 50 years of existence, all I can say for Nigeria is that during the same period I have known at least five cycles of commodity booms that offered us rare opportunities to use revenues generated from oil to transform our economy. Sadly, each cycle ended up sliding us farther down the productivity ladder.”

  • States’ financial condition worsening, says Senator

    States’ financial condition worsening, says Senator

    Vice Chairman, Senate Committee on Interior, Senator Olubunmi Adetunmbi, yesterday raised the alarm over the financial viability of states in the Federation.

    Adetunmbi, who spoke at a press conference in Abuja, said the financial viability of some states was worsening.

    The lawmaker had last year sponsored a motion on looming bankruptcy in states. The motion jolted some states while some others dismissed the assertion as unfounded.

    But Adetunmbi stated yesterday that “our states are not healthier than they were when that motion was raised,” adding that the financial condition of some states is “worsening.”

    He said:“The borrowing in states is going up for short term financing of operations. They are going to the bond markets to raise long time funds to finance infrastructure.

    “The wage bill in states is not going down because the public service continues to remain the largest employer of labour in those states which ought not to be so. Government is not supposed to be the largest employer of labour.

    “The total national civil service in Rwanda is less than a thousand people,” he said.

  • Naira weakens on oil imports demand for dollars

    Naira weakens on oil imports demand for dollars

    The naira fell the most in almost a week on demand for dollars to fund gasoline imports.

    It weakened 0.1 per cent, the most since January 23 to N157.13 a dollar, according to data compiled by Bloomberg.

    Nigeria relies on imports to meet 70 per cent of its fuel needs because of inadequate refining capacity, according to the Petroleum Ministry. Fuel imports have been a source of pressure on the naira, the Central Bank of Nigeria, has said.

    “Some oil importers got their import permit from the Pipeline and Petroleum Pricing Regulatory Agency last week and are demanding dollars,” Tunde Ladipo, Chief Executive Officer of Valuechain Investment Limited., said by phone today.

    The CBN kept its benchmark interest rate unchanged for the eighth time on January 21. The regulator, which sells dollars to lenders at auctions on Mondays and Wednesdays to stabilise the naira, sold $150 million at yesterday’s auction, unchanged from the sale on January 23, it said in an e- mailed statement.

    The inflation rate in December eased to 12 per cent, from 12.3 per cent in the previous month, as the effects of flooding that damaged agricultural output last year began to subside.

    The yield on the country’s 16.39 per cent domestic bonds due January 2022 fell two basis points to 11.28 per cent in the secondary market, according to January 25 data on the Financial Markets Dealers Association website.

    The yield on $500 million of Eurobonds due January 2021 rose three basis points to 3.802 per cent today.

  • Fed Govt to commercialise FHA

    Fed Govt to commercialise FHA

    The Federal Government has unveiled plans to re-structure and commercialise the Federal Housing Authority (FHA) to address Nigeria’s housing deficit.

    The decision became imperative, following the need to meet its housing target as well as redress inefficiency of the agency.

    The restructuring and commercialisation exercise will be implemented by a 10-man committee in 18 months. It would be supervised by the Bureau of Public Enterprises (BPE).

    The Minister of Housing and Urban Development, Ms. Amal Pepple, disclosed this while inaugurating the Technical Board of the agency, yesterday in Abuja.

    She said: “The authority does not generate enough income to meet its wage bills; pay retirement benefits to its 816 pensioners and fulfil all aspects of its operations. It carries book of accounts, two major liabilities in form of loans, namely the N7.2 billion FGN loan granted between 1996 and 2001, as well as the N1.09 billion loan granted by the Federal Mortgage Bank.

    “Currently, it is only surviving because it is in custody of depositors funds, which if withdrawn, will render the authority completely insolvent.”

    However, the Minister explained that the agency was able to deliver 37, 000 housing units in 80 estates within 40 years.

    According to her, “the agency’s achievements have remained low and the dreams of its founding fathers have not been attained.”

    She emphasised that the restructuring is to ensure efficient and robust delivery of affordable housing.

    “I am glad to inform you that government has fully accepted the committee’s recommendation for an 18-month transition period for the restructuring and commercialisation exercise to be supervised by the BPE,” she said

  • Customs fails to meet N320b target

    The Apapa Area One Command of the Nigeria Customs failed to meet its N320 billion revenue target last year.

    The command made N283 billion.

    On export, the command got as N129.9 billion, leaving a shortfall of N37 billion.

    Sources said the commodities exported included palm kernel cake, cocoa beans and wheat bran pallets, cashew nuts, sesame seeds, ginger, hibiscus flower, gum Arabic, processed rubber, shrimps, and lead ingot.

    Others were 4,625,837 square feet of processed leather, 74,547 cases of Dettol brand of disinfectant, Maggi Crayfish, 29,062 cartons of biscuits, 97,100 bags of assorted bathroom slippers and 1,655,320 litres of ethyl alcohol.

    Investigation also revealed that there has been an increase in the number of containers scanned at the Apapa port.

    The command scanned 18,489 containers last year.

    A breakdown of containers at the port shows that 3,390 were scanned for the first quarter with an average of 113 containers daily; the second quarter recorded 4,225 with a daily average of 142 containers.

    For the third quarter, 4,832 containers were scanned with a daily average of 161; 6,042 containers were scanned in the last quarter with an average of 201 scanned daily.

    Sources said a total of 14,128 containers were exited from the port using the fast track method.

    “Currently, 119 companies have availed themselves of this service and have achieved a monthly average of 1,177 containers exiting the ports under the scheme, a total of 14,128 containers were exited using fast track method,” the source said.

    Despite the fact that the command was N40 billion short of the expected revenue target for last year, Umar said an unprecedented N283 billion was collected as total revenue between January and December last year.

     

  • Embraer wins $4b order 

    Brazil’s  aircraft manufacturer Embraer  has  clinched a deal worth $4-billion to supply larger regional jets for American Airlines’regional network, sending shares soaring on hopes for stable production this year.

    Embraer and Republic Airways Holdings Inc. signed a contract for 47 E-175 jets, with an option to acquire an additional 47 aircraft. The new aircraft will be operated by Republic under AMR Corporation’s  American Eagle brand.

    The contract provides a relief for the order-starved Brazilian plane maker after it lost the first major U.S. order for regional jets under labour deals allowing regional affiliates to fly larger planes. In December, Canadian rival Bombardier Inc. booked a Delta Air Lines deal about $3.29-billion.

    And the battle for pent-up demand in the U.S. is just getting started, according to Paulo Cesar de Souza e Silva, the Head of Embraer’s commercial aviation unit.

    “America is still going to buy more of that size plane,” Mr Silva said in a telephone interview, laying out the sales campaigns ahead. “We’ve got American, United, U.S. Airways and regional operators too. In the next 18 months those campaigns will determine orders for about 400 planes.”

    Shares of Embraer jumped over 11 per cent in early Sao Paulo trading, their biggest one-day rise in almost four years, before paring their gains to be up nine per cent.

    Embraer’s new contract is subject to court approval due to bankruptcy proceedings at American Airlines – approval that the plane maker said it expects by the end of March.

    Delivery of the dual-class 76-seat jets would then begin in the middle of 2013, with two or three jets arriving per month, according to American Airlines. American agreed to have Republic acquire and operate the planes under a 12-year contract.

    Mr Silva said the Republic contract did not involve resale of any used planes, which was a part of Bombardier’s Delta deal.

    Embraer’s output this year has hinged on securing demand for open production slots after a scarcity of big orders bled its order backlog, a pipeline of future revenue, to a six-year low. Some analysts had already cut their 2013 and 2014 output forecasts amid the drought of new orders.

    “We are very confident that we’re going to maintain production levels this year,” said Mr Silva.

    The new planes flying in the American Airlines network will be the first to feature a series of mid-generation upgrades, including new wingtips and other aerodynamic changes to boost fuel efficiency by five per cent.

    Part of an industry push for more efficient aircraft, the upgrades are aimed at holding on to customers impatient for an overhauled lineup of Embraer’s regional E-Jets with Pratt & Whitney’s geared turbo fan, which aren’t due for delivery until 2018.

     

  • Minister seeks efficiency at port

    The Minister of Transport, Senator Idris Umar, has urged stakeholders in the maritime industry to collaborate with the Federal Government in its quest to ensure sanity and efficiency to the ports.

    Speaking at the launch of an Integrated Port Community Information System in Port Community Information System (IPCIS), he said, President Goodluck Jonathan’s administration is determined to make the ports attractive for business and urged the stakeholders to embrace the IPCI system.

    The benefits of the new system include ship reporting; on-line automated notice of arrival and departure of vessels, tracking; automatic identification system, weather current and tide information, port community system, cargo tracking, smart port technology, unattended asset sensor, and also useful in operation of inland container deport.

    The system could also provide solutions to various aspects of challenges in port operation; reduce cost, offers steady profits to stakeholders and act as trade facilitator centre.

    In his own remark, the Managing Director, Nigerian Ports Authirity (NPA), Mallam Habib Abdullahi said the system was launched as part of the efforts of NPA to promote efficiency at ports.