The Nation Newspaper

Tag: Alcohol

  • Why operators are kicking against alcohol, tobacco tariff hike

    The upward review of excise duty on alcohol and tobacco kicked off Monday. The government envisaged that the new rates, which will be spread over a three-year period, will raise revenue and reduce the health hazards from tobacco-related diseases and alcohol abuse. But local manufacturers are kicking, insisting that the policy will hurt investments and trigger massive job losses. They are calling for a reversal to save the nation’s fledgling manufacturing industry, writes Assistant Editor CHIKODI OKEREOCHA.

    The new excise duty regimes on locally produced alcoholic beverages and tobacco products, which kicked off last Monday may have set the stage for a major confrontation between the Federal Government and local manufacturers.

    Already, members of the Distillers and Blenders Association of Nigeria (DIBAN), a sectoral group of the Manufacturers Association of Nigeria (MAN), are literarily up in arms, calling on the Federal Government to halt the implementation of the hike and hold genuine consultation with stakeholders in the wines and spirits market.

    DIBAN Chairman Patrick Anegbe did not mince words when he said the policy’s implementation must be reversed to save the jobs of over 25, 000 Nigerians and over 250, 000 connected Small and Medium Enterprises (SMEs) staff. “Our industry investment of over N420 billion is being threatened by the recent upward review of excise duties on locally produced wines and spirits,” he added at a press conference on “The new hike in excise duty on alcoholic beverages” organised by the group in Lagos, on Wednesday.

    The Federal Government may have inadvertently drawn the battle line between it and local manufacturers particularly distillers when its upward review of excise duty on local alcohol and tobacco came into force on Monday, after a 90-day grace to local manufacturers. Under the new rates, approved in March by President Muhammadu Buhari, beer and stout will attract 0.30 per centilitre this year and 0.35 per centiliter in 2019 and 2020. Wine will attract N1.25 per centiliter in 2018 and N1.50 per next year and 2020. Also, N1.50 per centiliter was approved for spirits in 2018, N1.75 next year and N2 in 2020.

    Similarly, in addition to the 20 per cent ad valorem rate, each stick of cigarette will attract N1 specific rate (N20 per pack of 20 sticks) in 2018; N2 specific rate per stick (N40 per pack of 20 sticks) in 2019, and N2.90k specific rate per stick (N58 per pack of 20 sticks) in 2020. The excise duty hike on both products, according to Minister of Finance, Mrs. Kemi Adeosun, would be spread over a three-year period to moderate the impact on prices of the products.

    With the implementation of the new excise duty regime, it was envisaged that Nigeria’s cumulative specific excise duty rate for tobacco, for instance, would be 23.2 per cent of the price of the most sold brand, which is still lower than Algeria, South Africa and The Gambia, which have 38.14 per cent, 36.52 per cent and 30 per cent.

    Mrs. Adeosun had in March said peer country comparisons carried out showed that Nigeria was behind the curve in the review of excise duty rates on alcoholic beverages and tobacco.

    She said the Tariff Technical Committee (TCC) recommended the slight adjustment in the excise duty charges after cautious considerations of the government’s fiscal policy measures for the year and the reports of the World Bank and the International Monetary Fund (IMF) Technical Assistance Mission on Nigeria’s fiscal policy.

    The minster added that the effect of the excise duty rates adjustment on trade and investment was also assessed by the Federal Ministry of Trade and Investment, which adopted the recommendations of the TTC.

    She also said the new excise duty regimes were in line with the Economic Community of West African States (ECOWAS) directive on the harmonisation of member-states’ legislations on excise duties.

    The ECOWAS Council of Ministers had at its 62nd and 79th Ordinary Sessions in Abuja in May 2009 and December 2017, issued directives on the harmonisation of the ECOWAS Member-States’ Legislations on Excise Duties.

    The directives, The Nation learnt, sought to harmonise member-states’ legislations on excise duties on non-oil products and also stipulate the scope of application, rate of taxation, taxable event and amount.

    The overall objectives of the review of the excise duty rates for tobacco and alcohol, according to Adeosun, were to raise government’s fiscal revenues and reduce the health hazards associated with tobacco-related diseases and alcohol abuse.

    But some experts, stakeholders and local manufacturers particularly distillers are not swayed. For instance, as far as Anegbe is concerned, the policy was a purely IMF sponsored agenda camouflaged as a health concern. He said DIBAN, under the auspices of MAN, therefore, rejects what he described as “the new astronomical hike in excise duty being selectively imposed on the local spirits and wine industry.”

    According to Anegbe, the new duty on local wines and spirits translated to an increase of over 500 per cent, from the current average of N30 per litre to N150 per litre in the first year and N200 per litre subsequently. “This translates to an increase from current average duty of N270 to N1, 350 per case (carton) in the first year and N270 to N1, 800 per case (carton) from the second year,” he lamented.

     

    The fears, the worries

    Anegbe expressed fears that if the implementation of the new duty is sustained, there will be massive job losses arising from low demand of local products. He also said it will lead to the collapse of the indigenous wines and spirits segment and pave way for the complete takeover of the market by imported and smuggled brands.

    Besides, the spillover effect, he said, will be massive as key sectors of the economy and businesses such as packaging industries, bottles, cartons, labels, cork, laminates, glue, ink, printing, laboratory, marketing, consulting, and media, among others, will suffer.

    The DIBAN Chairman also argued that the imposition of exorbitant duties on locally manufactured goods contradicts government’s objective of growing local industries and shoring up revenues. He said, for instance, that the massive staff lay off, which is sure to hit the sector, will take its toll on revenue generated by government on Pay As You Earn (PAYE) taxes, which is estimated at N60 billion per annum.

    “At 600mn litres and N200 per litre, government is asking for N120 billion in tax whereas the industry does not even generate up to half of that in sales. Therefore, jacking up the duty by 500 per cent overnight will deter businesses and investors from investing in Nigeria,” Anegbe said, adding that many foreign investors have seen a huge market in Nigeria’s alcohol industry, which is estimated at over $2 billion.

    As if the negative impacts of the policy were not bad enough, the DIBAN chief said there was no prior engagement or consultation with indigenous producers of wines and spirits before adopting the new excise duty. “The Association made unsuccessful frantic attempts at getting the attention of the Minister of Finance to hear us put before migration from the current ad valorem to the specific scheme,” he said.

    Some development experts have come down hard on the new policy, describing it as wrongly-headed and counter-productive. For instance, Business Renaissance Group President Mr. Omife Omife said the policy could affect investments in the manufacturing sector. He, therefore, called on the Federal Government to reverse the policy.

    “Nothing should be done to endanger the sector. It is apparent that the announced astronomical increase in excise duty is bound to endanger the sector if not reviewed and rescinded,” he said.

    Omife warned, for instance, that with the new tariff regime, firms in the sector would face high risk of possible shutdown, especially in the low price segment, which accounts for 78.65 per cent volume of the spirits and wines segment.

    He noted that the new excise duty would also penalise average Nigerians as they would no longer be able to afford the new prices that include the exorbitant excise duty.

    The expert also pointed out that given the challenges of border control and illicit market, the attractiveness of the price increase driven by higher duty would result in smugglers bringing in unregistered and untaxed products. This, he said, would result to loss of revenue to the government.

    “The astronomical increase in the tariff is counter-productive and will lead to massive job loss, turn the country into a dump yard for foreign products, further pauperise Nigerians and stifle growth in an otherwise resilient sector of the economy,” Omife argued.

    Prior to the take off of the policy, the Senate also kicked, insisting that the tariff hike will hurt local distillers of beverages.

    In a motion titled, “Urgent Need to Review the Proposed Excise Tariff Increment in Order to Save Local Distillers of Beverages from Looming Extinction,” Senator Benjamin Uwajumogu (APC, Imo North) said with the tariff increase, the fate of the industry hangs in the balance.

    Uwajumogu, argued, for instance, that the beverage industry, which is one of the oldest surviving sectors, employs about 250, 000 Nigerians and that one of the consequences of the tariff hike would be the potential loss of these jobs.

    He added that direct and indirect job losses would further worsen the deteriorating unemployment situation in the country with the attendant social consequences.

    “The tariff increase will kill the fledgling industry, which is presently fragile and may wreak incalculable damage on our economy.

    “It will also lead to increase in smuggling activities, huge capital flight across borders to more investor friendly countries, with the attendant danger of increase in restiveness amongst the citizenry under enormous socio economic pressure,” Uwajumogu said.

    The Senator also said the negative impact on the economy, which is still emerging from recession, would further destroy the chances of the economy for full recovery, warning that an investment portfolio exceeding N420 billion was under real threat of extinction.

    However, there are some stakeholders who feel that the new tariff regime was a welcome development. For instance, the policy bodes well with religious organisations, local and international Non-Governmental Organisations (NGOs), who have been vigorously campaigning for the control of what they termed as the “tobacco epidemic” and the need to discourage alcohol abuse.

    Some of them believe that Nigeria lacks very stringent policies or measures on the production and marketing of tobacco and alcohol. They argue that the country requires vigorous and multi-pronged strategies in the control of the two products beyond the “Drink Responsibly” and “Smokers are Liable to Die Young” themes commonly used by brewers and tobacco companies, in their marketing campaigns.

    This was why the duty hike gladdened the Environmental Rights Action/Friends of the Earth Nigeria (ERA/FoEN). ERA/FoEN in a statement by its Head of Media and Campaigns, Philip Jakpor, said the group’s Deputy Executive Director, Akinbode Oluwafemi, lauded the Federal Government for the review.

    He also went a notch higher, calling on the Federal Government to match its rates with that of other countries across Africa, noting that the new rates still fell short of the more aggressive but very effective recommendations of the World Health Organisation (WHO) in Article 6 of the Framework Convention on Tobacco Control (FCTC), which is 70 per cent excise on tobacco products.

    Will government bow to superior economic arguments and reverse the policy? Are morality and health concerns enough reasons to sustain the policy? Therein lies the dilemma.

     

  • Buhari okays new excise duty rates for alcohol, tobacco, others

    President Muhammadu Buhari has approved an amendment to the excise duty rates for alcoholic beverages and tobacco with effect from today.

    The President granted a grace period of 90 days to manufacturers before the take off of the new excise duty regime.

    There is, however, no increase in excise duty of other local excisable products.

    Minister of Finance, Mrs. Kemi Adeosun, who broke the news in Abuja, said the new duty rates were spread over a three-year period from this year to 2020 to moderate the impact on prices of the products.

    She said the new duty regimes followed all-inclusive stakeholder engagements by the Tariff Technical Committee of the Federal Ministry of Finance with key industry stakeholders.

    According to her, the upward review of the excise duty for alcoholic beverages and tobacco was to achieve a dual benefit of raising the government’s fiscal revenues and reducing the health hazards associated with tobacco-related diseases and alcohol abuse.

    “The Tariff Technical Committee (TCC) recommended the slight adjustment in the excise duty charges after cautious considerations of the Government’s Fiscal Policy Measures for 2018 and the reports of the World Bank and the International Monetary Fund Technical Assistance Mission on Nigeria’s Fiscal Policy.

    “The effect of the excise duty rates adjustment on trade and investment was also assessed by the Federal Ministry of Trade and Investment and it adopted the recommendations of the TTC. Furthermore, peer country comparisons were also carried out showing Nigeria as being behind the curve in the review of excise duty rates on alcoholic beverages and tobacco,” Mrs. Adeosun said.

    Following the President’s approval, Mrs Adeosun said the new excise duty rate on tobacco was now a combination of the ad-valorem base rate and specific rate while the ad-valorem rate was replaced with a specific rate for alcoholic beverages.

    “For alcoholic beverages, the current ad-valorem rate will be replaced with specific rates and spread over three years to moderate the impact on prices. This will curb the discretion in the Unit Cost Analysis (UCA) for determining the ad-valorem rate and prevent revenue leakages,” she said.

    On tobacco, the finance minister said: “The government will maintain the current ad-valorem rate of 20 per cent and introduce additional specific rates with the implementation to be spread over a three-year period to also reasonably reduce the impact on prices.”

    Under the new excise duty, rates for tobacco in addition to the 20 per cent ad-valorem rate, each stick of cigarette will attract a N1 specific rate per stick (N20 per pack of 20 sticks) in 2018, N2 specific rate per stick (N40 per pack of 20 sticks) in 2019 and N2.90k specific rate per stick (N58 per pack of 20 sticks) in 2020.

     

    Mrs Adeosun explained that Nigeria’s cumulative specific excise duty rate for tobacco was 23.2 per cent of the price of the most sold brand, as against 38.14 per cent in Algeria, 36.52 per cent in South Africa and 30 per cent in Gambia.

    The new specific excise duty rate for alcoholic beverages cuts across beer and stout, wines and spirits for the three years 2018 to 2020.

    Under the new regime, beer and stout would attract N0.30k per centiliter (Cl) in 2018 and N0.35k per Cl each in 2019 and 2020. Wines would attract N1.25k per Cl in 2018 and N1.50k per Cl each in 2019 and 2020, while N1.50k per Cl was approved for Spirits in 2018, N1.75k per Cl in 2019 and N2.00k per Cl in 2020.

    She added that the new excise duty regimes are in line with the Economic Community of West African States (ECOWAS) directive on the harmonisation of member-states’ legislations on excise duties.

    It would be recalled that the ECOWAS Council of Ministers had at its 62nd and 79th Ordinary Sessions in Abuja in May 2009 and December 2017, respectively, issued directives on the harmonisation of the ECOWAS Member States’ Legislations on Excise Duties.

    The directives seek to harmonise member-states’ legislations on excise duties of non-oil products and also stipulate the scope of application, rate of taxation, taxable event and amount.

     

  • While celebrating cannabis day…

    When the word “cannabis” is used or spoken of, a negative connotation readily comes to mind. It usually goes by different street names like weed, igbo etc.

    Each year on the 20th of April, cannabis advocates around the global world gather to celebrate cannabis culture even though it might be legal or illegal in some countries.

    It is a genus of flowering plant in the family cannabaceae. It is often used as a recreational drug which is only behind alcohol and tobacco.

    Medically, has long been used for hemp fibre, oils and other medicinal purposes. In the United States, it was believed that over 100 million Americans have tried cannabis, with twenty-five million Americans having used it within the past year.

    In Nigeria, there seems to be a widespread abuse of the plant, especially amongst the youths. We find it being abused in parties, gatherings and dark corners in our milieu.

    Smoking it causes a lot of damage to the human body. It shrinks the brain of a person, and can eventually cause grave psychological disorders or death.

    Other side effects of cannabis include the destruction of the lungs and risk of developing cancer of the respiratory tract.

    The effects experienced by users and abusers are variable and will depend upon the dose, method of administration, prior experience, any concurrent drug use, personal expectations, mood state and the social environment in which the drug is used.

    Asides the overtly destructive nature of cannabis, it still has its usefulness, especially within the legal framework of the country. It can be used to provide warmth especially in very cold regions of the world. It is also used in improving appetite in those who are HIV/AIDS positive. Quite ironically, medical conditions like lung cancer and Emphysema have been shown to regress when cannabis is introduced into the mix.

    On the overall scale, the (illegal) use of cannabis should be seriously dissuaded and condemned as this could portend serious health and social risks for us all.

  • Kano Hisbah arrests ‘prostitutes’, seize alcoholic beverages

    No fewer than 10 suspected prostitutes were arrested operatives of the Kano State Hisbah Board, following raids conducted within the Kano metropolis.

    It was gathered that all the suspects apprehended by the state Sharia enforcer were young girls aged between 20 to 25.

    Spokesman of the board, Malam Umar Yakasai said the raids were carried out last week, adding that the suspected women of easy virtue were mostly not from Kano state.

    He explained that some of the suburbs raided by Hisbah were Badawa, Na’ibawa and Race Course.

    He said most of the girls arrested were spotted loitering or waiting by the roadsides apparently soliciting for their prospective customers.

    “Our men saw the girls waiting by the roadsides searching for potential partners to pick them up in their vehicles around 10pm. We knew they were into immoral activities from the way they dressed,” he said.

    Yakasai added that the agency had already charged four of the suspects to court, while the others who he said were first timers, were handed over to their parents and relatives after being admonished.

    He, however, called on parents and guardians to always monitor the movement and activities of their wards to prevent them from falling into immoral acts.

    Also,Yakasai disclosed that the board had confiscated two mini trucks filled with alcoholic beverages.

    He said the drivers of the vehicles and other suspects connected with the smuggling of the prohibited drinks to Kano have been taken to court.

    He added that the illegal drinks were being brought from Lagos, Enugu, and Oyo states.

  • Why energy drinks don’t go with alcohol

    Something that happened two Fridays ago, precisely March 9th , completely changed our lead story for this week. There are stories that can wait but some can not really wait. This one cannot, because of the life-saving message which must be passed on.  On the said date, as we sat down to some refreshing soft drinks and barbecued meat, we observed some men mixing energy drinks and stout at the popular Anchor bar in the Ikeja.

    As the fairly well dressed middle aged men downed their drinks in relish, oblivious that they had gotten our attention, a cardiologist surgeon with the University Teaching Hospital Enugu, Dr Okey Maduebo, opened his mouth in horror and pity.

    “Do these men know the implication of what they are drinking? How can people just dig their own grave?” asked the cardiologist while still staring at the men who did not even take cognisance of the presence of other people in the bar.

    Still aghast, he questioned: “How can anyone mix an alcoholic beverage and energy drink? That combination will place a lot of stress on the heart. They are mixing stimulant [energy drink] with a depressant [alcohol]. The body will basically be fighting itself to act one way or the other.”

    As the three relatively well dressed men continued opening more cans of Red bull drink and stout alcoholic drink, the cardiologist who was now visibly horrified excused himself from our table and briskly walked to the already slightly tipsy men.

    Introducing himself, he asked if he could join them. As far as the men were concerned, they did not see any danger associated with their actions. They were just looking for a quick way to get ‘high’.

    “After a hard day’s job and with the economic down turn in the country, what do you expect us to do? Do you want us to die of hypertension? Stout is not strong enough for me; though I cherish the taste, I still need a stimulant like Red bull or monkey shoulder to get it to the strength I want.” explained one of the men who simply identified himself as Jide.

    Though we have published stories on this page about energy drinks, we are being compelled to feature this story because of the above incident.

    A lot is being said about energy drinks. Most consumers just take the energy drinks for that burst of extra energy without knowing the side effects. Recently, a study published in the journal ‘Drug and Alcohol Dependence’ warned that adolescents and young adults who consume many energy drinks are much more likely to use cocaine and amphetamines later in life.

    According to the study, people who drank large volumes of the highly caffeinated beverages were also much more likely to develop alcoholism than their peers.

    Researchers from the University of Maryland, stated in the journal that “just over half of the 1,099 participants were deemed to be on a ‘persistent trajectory’ indicating they persistently used energy drinks over a four-year period. This significantly increased their risk of developing alcoholism by the age of 25.”

    Participants on the mid to high end of the spectrum studied had a significantly higher risk of moving on to drugs like cocaine and other stimulates.

    Consumers should also take note of some of the common ingredients that are added to these drinks for that quick energy boost.

    • Caffeine: The gold star in energy boosts, caffeine is commonly found in coffee and soft drinks to keep you alert and awake. It has been suggested that a combination of caffeine and taurine provides the mental and physical boost one would hope to obtain after consuming an energy drink.
    • Taurine: This is a type of amino acid commonly found in energy drinks, and enhances neurological function.
    • Vitamin B group. Various Vitamin B groups are commonly found on labels of energy drinks, as most of them enhance muscular, metabolic, nervous, and other bodily functions.

     

    Here are some reasons why you should stay away from energy drinks:

    • Weight gain: Since pre-packaged energy drinks are often filled with high levels of sugar, they can be calorie bombs. Excessive sugar intake, when left unchecked, can lead to obesity, which opens the gateway for many other chronic medical problems. Be sure to treat energy drinks as rare, last-resort, energy-boosting options rather than part of your regular daily diet.
    • Cardiovascular problems: Those who overdose on energy drinks are at a higher risk for developing cardiovascular problems, such as irregular, rapid heartbeat, and increased blood pressure. The worst case scenario would be heart failure.
    • Psychological hindrances: While that occasional energy drink can help enhance alertness, too much may actually decrease your ability to function. Nervousness, irritability and anxiety can increase overtime, as well as the uncomfortable and distracting “jitters” common in that of an over-caffeinated person. Insomnia or disruptive sleep cycles can also develop, which can lead to a lower quality of life over all.
    • Potential metabolic issues: When you drink an energy drink, you are encumbering your body to metabolise and process the overwhelming amount of vitamins, additives and sugars. Your body goes into overdrive and produces stress hormones to help cope with the task at hand. Over time, this inward and outward stress on your body can be more detrimental than helpful as metabolic issues may arise and lead to medical complications.
    • Dependence: Energy drinks can be highly addictive if used excessively on a daily basis. Withdrawal symptoms may be present if someone tries to stop, including headaches and mood swings.

    If you feel like an energy drink is still for you, be sure to utilise these tips when choosing a drink:

    • Try to limit energy drink intake to about 16 ounces, or 500 millilitres per day.
    • Drink plenty of water with an energy drink, as they are not meant to replenish your fluids but to give you a jolt of energy instead.
    • Stay away from energy drinks if you have underlying health conditions, such as pregnancy or cardiovascular problems.
    • Energy drinks are not recommended for young children.
    • Never mix energy drinks with alcohol. Although it is often a popular cocktail concoction, it can place a lot of stress on your body and heart, as you are mixing a stimulant (energy drink) with a depressant (alcohol). Your body will basically be fighting itself to act one way or the other.

    Energy drinks are fine when consumed in moderation. Habitual energy drink users may be better off with one to two cups of good old fashioned coffee as a more natural alternative without the additives and sugar. Seek a doctor’s opinion if you are constantly feeling fatigued or feel you’ve grown a dependency for energy drinks. Medical conditions, such as anaemia, can make a person more tired than usual.

     

    • Follow us on Face book, and also Twitter

     

  • Hoteliers react to ban of alcohol by Kwara govt.

    Some hotel associations have  called  on the Kwara State Government to reverse its law prohibiting the sales, production and consumption of alcohol in the state.

    They said the enforcement of such a law  would have a drastic effect on the nation’s economy and the hospitality industry.

    They spoke with our reporter in separate interviews on Friday in Lagos.

    The Kwara State Government had  on March 13 banned the public sales,  consumption and production of alcohol in the state.

    Mr Adeniyi Ologun, the Executive Secretary of the Hotel and Personnel Services Employers’ Association of Nigeria ( HOPESEA ) said that such a decision would cause restrictions on freedom to invest.

    Ologun said that the development was a minus for investors in the hospitality industry.

    He said that  hoteliers had tried to make huge gains from the sales of alcohol to be able to pay the various  taxes levied on them over the years.

    “Implementing the new law will force several of our members  out of job and it  will be compounding our problems, ” he said.

    Also, Mr Ayo Olumoko, the Deputy President , Federation of Tourism Association of Nigeria ( FTAN ), Southwest zone said that considerations should be given to Christians and hospitality players in the state.

    He said the state government banning sales, consumption and production of alcohol  would have adverse effect on them.

    Olumoko said that the development was an indication that the state was trying to be counted as a Sharia state.

    He said that since  the state comprised of both Christians and Muslims, both religions’ interests  must be considered by the government while enacting any law.

    “Not now that there is an economic downturn when people are looking for things to recreate with  and make themselves happy that the state should enforce its ban on alcohol.

    “This will also affect our cultural and traditional activities.

    “Some of those alcohol that had been banned are used by the elders to perform cultural rites during traditional ceremonies.

    “I think the Kwara State Government  needs to  reflect on the effect of such a decision on Christians, our traditional activities and the hospitality firms,” he said.

    Also, Mr Lanre Awoseyin, the President of the Nigeria Hotel Association ( NHA ) said that the ban would not be adhered to because Nigerians generally were fun lovers.

    He said that this decision would give room to trade restrictions and reduce internally generated revenue for the state government.

    According to him, the taxes they generate from each hospitality firm will no longer be and people will continue to consume it in secrecy.

    “I am speaking from experience; you see, even in the north where a law like this was made in the past, it never worked.”

    Awoseyin said that people were still transporting alcohol there only that they would not expose them to the public while in transit.

    They would cover them inside truck, he said.

    NAN

  • Excise duty: Cigarettes, alcohol to cost more

    Smokers have got some bad news- lighting up will cost. Also to pay more are alcoholic drinks consumers.

    President Muhammadu Buhari has approved an amendment to the excise duty rates for alcoholic beverages and tobacco with effect from June 4.

    Finance Minister Kemi Adeosun broke the news yesterday in a statement by her media aide Oluyinka Akintunde.

    She said the new excise duty rates were spread over a three-year period from 2018 to 2020 to moderate the impact on prices of the products.

    The minister added that Buhari granted a grace period of 90 days to manufacturers.

    She said  the new excise duty regimes was decided at an all-inclusive stakeholder engagements by the Tariff Technical Committee of the Federal Ministry of Finance with key industry stakeholders.

    Mrs. Adeosun said: “The Tariff Technical Committee (TCC) recommended the slight adjustment in the excise duty charges after cautious considerations of the government’s Fiscal Policy Measures for 2018 and the reports of the World Bank and the International Monetary Fund Technical Assistance Mission on Nigeria’s Fiscal Policy.

    “The effect of the excise duty rates adjustment on trade and investment was also assessed by the Federal Ministry of Trade and Investment and it adopted the recommendations of the TTC.

    “Peer country comparisons were also carried out showing Nigeria as being behind the curve in the review of excise duty rates on alcoholic beverages and tobacco.”

    Mrs.  Adeosun said the new excise duty rate on tobacco was a combination of the existing ad-valorem base rate and specific rate while the ad-valorem rate was replaced with a specific rate for alcoholic beverages.

    “For alcoholic beverages, the current ad-valorem rate will be replaced with specific rates and spread over three years to moderate the impact on prices. This will curb the discretion in the Unit Cost Analysis (UCA) for determining the ad-valorem rate and prevent revenue leakages.

    “For tobacco, the government will maintain the current ad-valorem rate of 20 per cent and introduce additional specific rates with the implementation to be spread over a three-year period to also reasonably reduce the impact on prices,” she said.

    Under the newly approved excise duty rates for tobacco in addition to the 20 per cent ad-valorem rate, each stick of cigarette will attract a N1 specific rate per stick (N20 per pack of 20 sticks) in 2018, N2 specific rate per stick (N40 per pack of 20 sticks) in 2019 and N2.90k specific rate per stick (N58 per pack of 20 sticks) in 2020.

    The minister explained that Nigeria’s cumulative specific excise duty rate for tobacco was 23.2 per cent of the price of the most sold brand, as against 38.14 per cent in Algeria, 36.52 per cent in South Africa and 30 per cent in Gambia.

    The new specific excise duty rate for alcoholic beverages cuts across Beer & Stout, Wines and Spirits for the three years 2018 to 2020.

    Under the new regime, Beer & Stout would attract N0.30k per centiliter (Cl) in 2018 and N0.35k per Cl each in 2019 and 2020.

    Wines will attract N1.25k per Cl in 2018 and N1.50k per Cl each in 2019 and 2020, while N1.50k per Cl was approved for Spirits in 2018, N1.75k per Cl in 2019 and N2.00k per Cl in 2020.

     

  • Review tariff on alcohol, tobacco, union urges govt

    • Says 2,000 jobs lost in two years

    The Food, Beverage and Tobacco Senior Staff Association (FOBTOB) has urged the Federal Government to re-evaluate the recommendation to raise tariff on alcohol and tobacco to prevent job losses.

    FOBTOB General Secretary Mr Iji Solomon made the call when he spoke to reporters.

    Finance Minister Mrs Kemi Adeosun had recommended an increased tariff on alcohol and tobacco because of their health implications and to raise revenue.

    According to Solomon, the recommendation to raise tariff on the products could affect their manufacturers and lead to redundancy.

    “There is no doubt that the minister proposed the increase based on ECOWAS Common External Tariff, but it should not be at the detriment of local manufacturers or the economy,” he said.

    The union’s scribe said the price disparity for each of the products by the minister was not understandable but that any increase would impact on the workforce.

    He said the “Ad valorem” tariff (Value Tax) was a normal tariff on products in the industry but it could increase the unit tax of tobacco.

    According to Solomon,  about 2,000 workers have lost their jobs in the last two years because of the closure of companies and economic indices.

    He said the only tobacco company in Nigeria needed incentives while distilleries should be encouraged to employ more workers rather than sack them.

    “Many distilleries closed business because they can no longer access foreign raw materials for  production. Only a few are working and any increase will lead to redundancy.

    “Since the distiller companies use local materials, increase in tariff can lead to their collapse. Secondly, with an increased tariff, the distillers will be unable to compete with imported ones,” he said.

    Solomon urged the government to collaborate with industry stakeholders such as Food, Beverage and Tobacco Employees and Manufacturers Association of Nigeria (MAN) on the issue.

  • Heavy drinkers at risk of dementia

    Heavy drinkers at risk of dementia

    According to a definition by Wikipedia, dementia is a broad category of brain diseases that cause a long-term and often gradual decrease in the ability to think and remember that is great enough to affect a person’s daily functioning.

    Other common symptoms include emotional problems, problems with language, and a decrease in motivation.

    A newly published study has analyzed that more than a million patients diagnosed with the illness between 2008 and 2013. More importantly, heavy drinkers are at serious risk of dementia.

    The study which was published in the Lancet Public Health journal, included 1,109,343 patients discharged from French hospitals during the period.

    The study revealed that alcohol use disorders were the strongest modifiable risk factor for the disease.

    Researchers said nearly 40% of the 57,353 cases of early-onset of the disease (below 65 years) were directly alcohol-related, and 17.6 per cent had an additional diagnosis of alcohol use disorders.

    It is advisable that heavy drinkers go for regular medical care, with treatment or intervention done when necessary.

    Lead author Michael Schwarzinger also noted in the report that the research showed damage done to the brain by alcohol is never repaired.

    For heavy drinkers who had been sober for a time, the level of risk of the disease is “about the same”, he said.

    Some common types of dementia are:

    1. Alzheimer’s disease
    2. Vascular dementia
    3. Dementia with Lewy bodies (DLB)
    4. Syphillis
    5. Parkinson’s disease
    6. Frontotemporal dementia
    7. Creutzfeldt-Jakob disease
    8. Normal pressure hydrocephalus
    9. Huntington’s disease
    10. Wernicke-Korsakoff Syndrome
  • NINIOLA: Why I stay away from alcohol

    NINIOLA: Why I stay away from alcohol

    Drumroll Records artiste, Niniola Apata, gained prominence in 2013 when she finished as third runner-up on Project Fame West Africa, a feat which she admits propelled her to glory. She speaks with OVWE MEDEME about her debut album, titled This Is Me, life as an artiste, growing up and other issues.

    HOW excited are you to be dropping your album?

    I am super excited; I am very thankful to everybody who has supported me from day one. I’m thankful to God first of all. This is my debut album and I’m just very grateful because it is the first time I will be putting out an album. I have like ten songs already, but this is a proper album and I’m super excited.

    Why did it take you this long to release an album?

    I wanted people to understand Niniola, because I have RnB songs but my root genre is Afro House. I also released some RnB songs and when I felt like I was ready to put out.

    Why the title, This Is Me?

    This is me, as honest as I can be, vocally. On the album, I don’t just have my root genre, which is Afro House, I also have RnB, and I can jump on any beat, so long as I feel good about it. There is a folk song. There is RnB song and there’s also something for those who just want to turn up. They are not left out.

    Where do you draw the line between commercial music and good music?

    There are lots of classifications, even when it comes to the genre of music, but I don’t see it as that. It’s just like when you say one is black or white. For me, if I hear the beat and I love it, if something strikes a chord, or it strikes my soul, then it’s good music. That’s why for me, music has no language whatsoever. That’s why you listen to a South African song and appreciate the music. As long as it strikes a chord in you that touches your soul, that’s good music.

    Your music titles are mostly in local languages

    I am very comfortable in my own skin. I am comfortable speaking my language. I sing in Yoruba, pidgin and English. Even in the album, there is Swahili. I don’t sit down and choose the title first. I write all my songs, so after writing the songs, the title comes to me.

    By picking titles in local languages, don’t you think you are limiting your audience?

    Not at all, I am proud of my language and it is what has taken me thus far. That is why, right now, in South Africa, Maradona has blown. And it’s in Yoruba. I’m proud of my language and it’s also a way to sell myself by being very original and also to sell my country at the same time.

    Maradona has gone far and wide. When you were dropping the song, did you think it would be this big?

    When we recorded the song, we knew it was a good song, but we did not envision the way it was going to spread. We didn’t know. It just happened and I’m still very thankful to God and even to everybody who has supported, and also, the songs that preceded Maradona, because we had already won fans with those songs. Some people just joined the train when we released the song, but those other people, who had been there from day one, helped to spread the gospel.

    You album has no female collaboration. Was that deliberate?

    For me, before I think of collaborating with anybody, the beat matters. The music comes first. I just don’t sit down and think of who is popular and then collaborate with them. No, the music will determine. When I have my music, I think of whose voice best suits it, before I collaborate. So, for me, no female really came to mind on this project because I really wanted to sing. That’s why the songs I collaborated in, my voice came first. That’s why it’s titled This Is Me.

    So no female came to mind. Won’t they feel slighted?

    I don’t think so because when it comes to music, it’s not about catching feelings. Sheyi Shay featured me in a song, and also, this is not the end of the world. This is just the beginning. There are other projects coming up.

    You’ve been around for a while now. What’s your impression of the Nigerian music industry?

    It just made me realise that there is a lot to the industry than people see on the outside. Before I came in, I just thought if you are talented and can sing, then that’s it. But when I came in, I realised that wasn’t it and thank God that project fame gave me my prize money. I invested the money in my career.

    Are you saying without that money you wouldn’t have made it this far?

    You can’t do anything without money sir. I remember I wrote Igbadi, my debut single in March and I didn’t have the money to shoot the video until November/December, and that is not really good. So, you need money. I can’t go to the video director and be telling him stories.

    What aspect of your career did you invest the money in?

    I invested in the resources, my voice and everything. Till now, I still study songwriting online. I make sure that I keep improving my art. A few years ago, if anybody had told me that I would be writing my songs, I wouldn’t have believed. Because to me, I just thought I couldn’t write. It was on the show, we had to sing other people’s songs. But it gets to a point where I have to perform my own personal composition, Itura. And on the show, the judges weren’t really comfortable with it. They were saying it was too deep, but I liked it and I needed somebody to speak for me. Finally, it was Cobhams who stood up to say he’s a songwriter and that a writer has the right to tell the story however he or she wants to tell the story and that I have told my story brilliantly. That was an encouragement and it made me realise that there’s nothing I can’t do.

    When your sister, Teniola’s song trended, how did that make you feel?

    She’s my younger sister. I felt very good because I remember we used to sing together on the stairs. Sometimes both of us stuck our heads out of the window, singing and shouting.

    Do you feel threatened by her success?

    No way. I’m very happy about my sister’s growth because I don’t have to look over my shoulders to know if she’s moving. I remember when she was coming up, she told me that she didn’t want to be in my shadows. And I agreed with her. So she just decided to come on her own, bearing her name.

    You seem to lose your senses when performing on stage, especially when you are twerking. Is it deliberate?

    It is not twerking. It is Oyinbo people that call it twerking.

    Do you perform under any form of influence?

    No, I don’t. My head will scatter, because I have a light head.

    So, you are saying you don’t take alcohol?

    I don’t. It used to be once in a blue moon, but now I don’t bother because if I drink a little, I go gaga.

    Away from music, what is Niniola afraid of?

    Niniola is not afraid of anything because I have God. We are human beings and if you think you won’t face challenges, it is a lie. But when you have God, nothing is impossible.

    How did you get a broken tooth?

    I was in JSS 2 then. I remember I was in the house. My elder brother was playing with my cousin. He was pouring cold water on her. So he said he was going to pour it on me, so I started running and I fell, face down. It was on a Sunday and I had to go to school the following day. There happened to be a schoolmate in the house at the time, and the following day, when I got to school, everybody was talking about my teeth because that girl had already told everyone. And I was embarrassed. It took me a while to get over it.

    Is this all of you, or are there parts of you not included in the album?

    This Is Me is just a taste; little snippets, bits of Niniola because there’s more to come.

    Who is the real Niniola?

    Niniola is a quiet person, but when I’m on stage, I’m different. Niniola loves music and most of the time, I’m working in the studio. I love to cook, I love to dance. Basically, I’m just quiet.

    How long does it take you to dress up?

    It takes a while. It depends. It could take up to two hours.

    Are you in a relationship?

    Yes, I am.

    Anyone we know?

    No, he’s not in the industry.