The Nation Newspaper

Category: Business

  • Taxation key to economic devt, says CITN

    The President of the Chartered Institute of Taxation of Nigeria (CITN), John Sunday Jegede, has said taxation, and not oil, remains the engine-room for sustainable economic development in the country. He said oil and gas will in the very near future dry up but taxation will always remain a source of revenue for countries.

    Jegede disclosed these during CITN’s 27th induction in which 546 new members were inducted.

    According to him, “It is no longer news that what is needed to drive our economy and assist in the realisation of vision 20-2020 and the transformation agenda of the Federal Government is the diversification of the economy with emphasis on taxation”.

    He said the Institute is determined to collaborate with various stakeholders to enhance manpower capacity of tax experts through training and retraining.

    Lagos State Attorney General and Commissioner of Justice, Mr Ade Ipaye, who was represented by Mr Gabriel Fashoto, said that tax reforms have assisted in ensuring that funds meant for development are channeled rightly for such projects.

  • Let your data be accurate, farmers told

    The Executive Director of Cocoa Research Institute of Nigeria (CRIN), Prof Malachy Akoroda, has called on Cocoa Producers to take accuracy of data seriously. He made the call during the Cocoa Transformation Agenda Implementation Plan where the year’s progress report was presented for deliberation.

    Akoroda wondered how any meaningful cocoa business can be done without statistics. “Not every local government in every state will produce cocoa. We have information from Geographic Information System (GIS) telling us the local government areas that can produce cocoa in Nigeria. We are told that 22 states are potentially capable and can produce cocoa but 14 states have traditionally been producing,” he stressed.

    It is not just any fertiliser that is suitable for cocoa soil enrichment, he said. Making clarification on cocoa fertiliser, he indicated that the NPK formula is 5-12-17, while Calcium and Magnesium are added at ratio of four to two. “If nutrient contents are used as basis of calculation, farmers will record gains after use, therefore, get this equation right,” he advised.

    He said states don’t have to wait for the Federal Government for everything. He said: “Your governments must help cocoa farmers in your states. What the Federal Government is doing should be a bonus, after doing your own. If a farmer does not keep record, the Growth Enhancement Support (GES) will not profit him. If tree crop unit officers don’t understand the details of GES, it will be a failure. Farmers need to keep record if they want to take cocoa as a business. Once I see a farmer with no record, I don’t discuss further. There is nothing to discuss,” he said.

    According to Akoroda, the Federal Government is working on rehabilitation of cocoa farms and has sent four Nigerians to train in Indonesia on rehabilitation of old cocoa farms. The trainees will in turn train Nigerians on best practices they have learnt. The training will be in CRIN on February 2013. He said there are early fruiting and early maturing varieties of cocoa that can be planted to replace the old, ageing cocoa trees.

    “What is the use of eight varieties of cocoa sitting in CRIN without getting to the farmers?” he asked? After research, there must be development, using the result; otherwise it will be a waste of time. States he said need to transfer the technology to farmers. States without reliable data should go back and get their figures right “so we can make preparation to serve the farmers,” he added.

    He said any state that does not know the number of people they want to serve is not serious.

    The expert drew attention to the need to plan for provision of pods and seedlings, stating, however, that, rather than wait for too long, the government officials should “turn (their) pods to seedlings to avoid wastage. He also alluded to the use of grafting for old farms.

    The executive director warned farmers not to buy fake cocoa chemicals, stating that the process of selecting agrochemicals is scientific, rigorous and has standards. “Do not let anybody tell you that without a process of science we can go to any manufacturer and tell him that this chemical is good, we want to buy it, he said. According to him, CRIN is mandated to decide on the choice of chemicals.

    The don explained that there are three varieties of improved cocoa seedlings: F1 Amazon, TC 1 – 8, WACRI and that they are good depending on agro-ecology.

    He said CRIN took a contract to distribute 1,200,000 pods (divided into yearly phases), starting this year with 95,000 pods to be delivered. “We have a table on how to deliver those pods. We should be working with numbers: when, where, what, who, why?

    The number of cocoa pods to be given to Mr Blue Shirt on, so and so date, and so forth,” he explained.

    Noting that CRIN is a government institution, he said : “You don’t need a permit to come to CRIN. The Federal Government is ready to pay us when they see evidence of supply.”

  • Expert seeks creation of database for fishermen

    The Federal Government has been urged to create a database of fishermen to facilitate efficient and targeted delivery of assistance to the agriculture and fisheries sector.

    A Professor of Fisheries at Lagos State University(LASU), Martins Agenuma Anetekhai, said the database would contain information such as names, addresses, farm locations, poverty level, calamity incidence, and vulnerability to climate change.

    According to him, since the country is highly reliant on agriculture for livelihood and sustenance, and the fisheries sector has always been greatly affected,there is the need for a dependable database to enable the government to administer rehabilitation programmes and other assistance for fishermen.

    The national registry of farmers and fishermen, he noted, would aid the government in carrying out specific proactive programmes to increase the protection of the agriculture and fisheries sector and to elevate their level of preparedness against various hazards.

    Anetekhai urged the government to make the fisheries sector a revenue earner and jobs supplier,adding that programmes should help establish these hopes and sustain the sector in reaching revenue targets.

    He explained that financial needs are particularly acute for fisher men , who can rarely access sufficient amount of finance to operate their businesses profitably.

    According to him, there are many fishermen that can increase profitability through technological upgrading, but also find it difficult to access finance for this.

  • ‘Value addition key to repositioning agric exports’

    Value addition is the solution to boost the value of Nigeria’s agricultural products in the global markets, the Minister of State for Trade and Investment, Dr. Sam Ortom, has said.

    He spoke at the Second International conference on Africa’s Indigenous Stimulants in Lagos.

    Ortom,who was represented by the Assistant Director, Commodities Division,Federal Ministry of Trade and Investment, Mrs Omololu Opeewe, urged the industry to pursue a strategy to increase added value of agricultural products to boost the nation’s annual export earnings, as most farm products are coarsely processed and sold at low prices.

    He listed stimulants, such as kola nuts,bitter kola, alligator pepper,moringa among others as key produce in the campaign to promote non-oil export.

    Ortom urged farmers and other stakeholders involved in the processing of kola nuts to see it as a national challenge and do all in their capacity to scale up the cultivation, and processing of these stimulants to international standards.

    He called on the agric industry to invest more in renewing technology and abide by international production standards to raise the added value of export products.

    He also called on stakeholders to maximise the economic benefits and potentials of kola nuts and bitter nuts by applying new and improved techniques in the cultivation, processing, storage, marketing and export of these crops so that Nigeria can generate job opportunities to reduce poverty and raise incomes for the farmers and the country.

    The Minister recognised the economic importance of the crop as a strategic commodity that will add to wealth creation and reduce the rate of unemployment in the country.

    He acknowledged the contribution of agencies, such as United States Agency for International Development, (USAID), Food and Agricultural Organisation, (FAO), Cocoa Research Institute of Nigeria (CRIN) and United Nation’s Industrial development Organisation (UNIDO), who have all contributed to the overall development of the industry.

    The Commissioner for Agriculture and Cooperatives, Prince Gbolahan Lawal, said the objective of organising the conference was to promote various stimulants.

    Lawal said the ministry is focusing on promoting agric trade, highlighting the merits of stimulants, such as kolanuts, bitter kola, alligator pepper and other produce. The Minisry, he added, is also strengthening production capacity of domestic enterprises.

    The Commissioner,who was represented by the Director Agric Services, Dr Olayiwole Onasanya, said African indigenous stimulants, especially kola nuts and bitter nuts are sources of wealth creation.

    He called for concerted efforts to ensure the stable supply of stimulants for the export market.

    He said the stimulants industry possesses numerous favourable conditions to develop into a key industry.

    He recognised the importance of the crop as strategic commodity that will add to wealth creation and reduce the rate of unemployment in the country.

    The Managing Director, Vertical Inspirations Limited, Ms Heather Akanni, called for the active participation of industrial leaders to help stimulants continue to grow and gain more recognition in the international market.

    She said there is a lucrative market for African stimulant products and urged local businesses to secure a firm foothold in the demanding market.

    To enter the market, she suggested that businesses should not only make high quality produce, but also seek to increase value for the market.

  • Bearish mood persists as index falls 0.13%

    The key market indicators at the Nigerian Stock Exchange slipped further by 0.13 per cent yesterday. The All-Share-Index shed 33.80 points to close at 26,269.61 points while the market capitalisation dropped N11 billion to close at N8.371 trillion.

    Sentiments skewed further to the sell side in the banking sector with more losses than gains. Five companies appreciated in the sector recording slim gains ranging from 0.24 per cent to 2.74 per cent.

    On the flip side, Unity Bank dropped additional 1.96 per cent while UBA and Skye Bank lost 0.87 per cent and 0.50 per cent.

    Top-tier banks such as Zenith Bank, FirstBank and GTBank were not spared either with losses of 1.66 per cent, 0.33 per cent, and 1.0 per cent.

    Guinness dropped full points, closing at N231.00. However, the recent correction could spur demand and halt the bearish trend. Nigerian Breweries and International Breweries on the other hand, closed flat with no change recorded.

    On the price movement tables, a total of 40 equities recorded price change with 17, appreciating while the remaining 23 reduced in value. Dangote Flour led the gainers’ table with an increase of N0.47 to close at N8. It was followed by Julius Berger with a gain of N1.50 to close N31.50.

    Others on the table include Fidson, UPL, Unilever, ChampionBreweries, Dangote Sugar, Union Bank, Wapic and NASCON.

    On the losers’ side, Custodian and Allied Insurance led with a drop of N0.08 to close at N1.17. It was followed by Presco with a drop of N0.87 to close at N14.50. Also on the list were UAC-Property, Learn Africa, FO, Livestock, RT Briscoe, Neimeth, Guinness and Bagco.

    Investors traded 159.951 million shares worth N1.391 billion across 3,185 deals. The Financial Services sector recorded the largest chuck with 100.959 million shares worth N696.352 million across 1,857 deals.

    Other actively traded sectors were consumer goods, oil and gas, industrial goods, conglomerates and services with 33.053 million shares, 11.513 million shares, 6.640 million shares, 2.931 million shares and 2.917 million.

  • Nigeria, seven others to benefit from $7.8m grant

    Nigeria and seven other African countries are to benefit from a $7.8 million grant from the Bill & Melinda Gates Foundation to improve their sustainable farming methods.

    The other countries are Kenya, Malawi, Mali, Burkina Faso, Zambia, Ethiopia and Tanzania.

    The grant, from the Gates Foundation Global Development Programme, will be used to help guide policymaking efforts to intensify farming methods that meet agricultural needs while improving environmental quality.

    According to the foundation, Michigan State University(MSU) researchers in the United States will use a $7.8 million grant to help the eight African nations improve their sustainable farming methods.

    Programmes such as this are paramount to Africa, as demonstrated by more than $2.5 billion in annual spending by African governments on agricultural intensification, said project co-director and MSU agricultural, food and resource economics faculty member,Thomas Jayne.

    “All of the partners have made a long-term commitment to help this region’s programs reach their full potential,” he said.

  • FIRS boss tasks ANAN on professionalism

    FIRS boss tasks ANAN on professionalism

    The Acting Executive Chairman, Federal Inland Revenue Service (FIRS) Alhaji Kabir Mashi has called on members of the Association of National Accountants of Nigeria (ANAN) to ensure that due diligence and professionalism are entrenched in the course of their works.

    Mashi, who made the call when executive of the Abuja chapter of ANAN visited him in his office, said accounting profession required such virtue in order to align with the global best practices.

    He said the association should not only seek members but ensure appropriate training programme that would enhance skill acquisition that would in turn put members on vantage position in the accounting profession.

    Mashi pledged continued support in the area of training both local and international for more than 350 ANAN members who are staff of the FIRS and urged them to encourage other staff to join the professional body.

    He also pledged support to ANAN as a body as part of an effort to deepen knowledge of Nigerian accountants that would assist the Service in its core mandate of tax revenue collection and accounting for the country.

    Earlier, the Chairman of Abuja branch of ANAN, Mrs. Rakiya Yusuf, who commended Mashi for sustaining reforms in the Nigeria tax system, solicited support for ANAN members and the association.

    She noted that the sustenance of the nation’s tax reform had resulted in increase tax revenue collection, focus on taxpayers services and gradual shift from a sole dependence on oil revenue.

  • Framework on Agency Banking out in December

    Framework that will define the mode of operation for Agency Banking will be out by the middle of next month, the Governor, Central Bank of Nigeria (CBN), Sanusi Lamido Sanusi has said.

    Speaking yesterday at the Enhancing Financial Innovation and Access (EFInA) forum in Lagos, he said that the CBN Committee of Governors is already fine-tuning the draft exposure of the agency banking.

    He said issues relating to number of agents, type and nature of agents including considerations for super agents are critical areas being considered in the draft exposure. He said all the processes for this line of banking to become functional in the country will be finalised by this year-end.

    Sanusi said there have been a lot of improvements in the Nigerian payment system, including the drive for financial inclusion. He said lenders have to address the need for special products that consider women and the handicapped to ensure that everyone is carried along.

    The CBN Governor said that Agency Banking provides financial services to the widely dispersed population at affordable price and has assisted some countries in decongesting existing customers from crowded branches. He added that it will equally serve same purpose in Nigeria.

    According to him, agency banking provides financial services by a third-party agent to customers on behalf of a licenced , prudentially-regulated financial institution.

  • Lagos targets N80b from bond issuance

    Lagos targets N80b from bond issuance

    Lagos State Government yesterday signed a financial deal with Chapel Hill Limited, lead issuing house, with the aim of raising N80 billion through bond, which will be channeled towards infrastructural renewal in the state.

    The sum is the highest ever by any state government through bond issuance and represents the first tranche of the total N167.5 billion the state is sourcing under its second bond series (by way of a book build) between now and 2019.

    It is also the fourth time the state is raising funds via bond issuance to drive its infrastructural development.

    The total sum is to be invested in infrastructural development which the Governor Babatunde Fashola led administration intends to focus on in the 2013 fiscal year.

    Amongst the ongoing projects to which the Bond will be channeled to include the expansion and reconstruction of the Lagos-Badagry Expressway, Blue line rail corridor, ferry terminals in parts of the state to boost water transportation, construction and completion of health institutions such as Ayinke House within the Lagos State University Teaching Hospital (LASUTH), Maternal Healthcare Centres among others.

    State Governor, Mr. Babatunde Fashola who addressed State House Correspondents shortly after the completion of the board meeting for the deal at Lagos House, Ikeja, which attracted financial houses and stock broking firms, assured stakeholders that the money would be tied to specific projects that add value to the state economy.

  • Naira gains on inflows

    Naira gains on inflows

    The naira strengthened on inflows for purchases of fixed-income securities after the Central Bank of Nigeria (CBN) held its benchmark interest rate at a record high early week to check inflation and stabilise the local currency.

    It gained 0.2 per cent to N157.65 a dollar after weakening 0.1 per cent on Tuesday. The naira has appreciated 3 per cent this year, the second-best performing currency tracked by Bloomberg in Africa.

    Nigeria is scheduled to sell 50 billion naira ($316.6 million) of 10-year and 7-year bonds today and is offering N116.18 billion of Treasury bills tomorrow.

    “Nigerian bond yields remain attractive to offshore investors, with the inflows boosting dollar supply,” Wale Abe, Chief Executive Officer of the Financial Market Dealers Association, which groups lenders trading in the money market, said by phone yesterday. “An interest rate of 12 per cent will check excess money supply and demand for dollars.”

    The apex bank sold $200 million at a foreign currency auction yesterday at N155.76 per dollar, it said in a statement on its website. The regulator sells dollars on Mondays and Wednesdays to keep the naira within a 3 per cent band around N155 a dollar.

    The naira’s appreciation could be traced to tight monetary conditions, improved supply of foreign exchange to the market by oil companies and increased inflows from portfolio investors, CBN Governor, Sanusi Lamido Sanusi, said yesterday.