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Category: Business and Economy

FCT IRS targets N100bn revenue collection in 2020
The Federal Capital Territory Internal Revenue Service (FCT IRS) says it is targeting to collect N100 billion revenue in the territory in 2020.
The Executive Chairman of FCT IRS, Mr Abdullahi Attah disclosed this in an interview with News Agency of Nigeria (NAN) in Abuja on Sunday.
He said based on the preparation put in place and the records of what the service had realised since it took over from the Federal Inland Revenue Service (FIRS), the target would be achieved.
According to him, the service to key into Integrated Tax Administration System (ITAS) by the end of this year would help to double or triple collection of tax in FCT.
He explained that the service would continue to sensitise the public on their activities, adding that inadequate awareness creation was still a challenge the FCT IRS was being confronted with.
“One of our challenges is on awareness creation, in the 1950s, 60s and 70s, Nigerians then understood the value of taxation and they filed their taxes without being asked.
“We are now planning to sensitise the citizens in this regard so they can pay their taxes and file return voluntarily.
“I know it will take a while but we will get there with massive campaign and awareness creation,” he said.
The chairman emphasised the need to focus on tax collection to boost revenue, adding that relying on oil was not good for a country like Nigeria.
He said that if Nigeria developed a culture to pay tax, it would help to further increase the Gross Domestic Product (GDP) of the country.
Speaking on the call to bring informal sector to the tax net, Attah said it was a welcome development.
He noted that though the service under his leadership was currently working to leverage the formal sector by ensuring those due to pay tax do so.
According to him, in spite its concentration on the formal sector, effort is also ongoing to bring the informal sector like traders and artisans to the tax net in due course.
“We may not get revenue from informal sector as much as we can from formal sector, for instance the tax you collect from 1,000 tricycle owners you can collect from few residents of Asokoro and Maitama.
“We are now concentating on the ‘Parato Principle’ of 20, 80, that is focusing on 20 per cent of people that will give you 80 per cent of the revenue.”
The chairman commended FIRS for the smooth hand over of tax collection to the FCT.
He also commended the FIRS for donating facilities, vehicles and personnel for the smooth take-off of FCT IRS in January 2018. (NAN)
March 9, 2020
Ministry of Industry applauds KADCCIMA for successful trade fair
Dr Nasiru Gwarzo, Permanent Secretary, Federal Ministry of Industry, Trade and Investment has commended the Kaduna Chamber of Commerce, Industry, Mines and Agriculture (KADCCIMA) for successful conduct of 41st Kaduna International Trade Fair.
Gwarzo made the commendation at the closing ceremony of the fair on Sunday in Kaduna, saying that the fair achieved feat with participation of 13 countries and 9 states.
He noted that the 41st Trade Fair recorded successes due to improved turnout of people and participation of exhibitors, investors and dignitaries.
“Improvement in the number of people; dignitaries, the presence of the military that added color to the fair,our neighbours, number of countries has increased to 13, and number of states from 6 to 9 as well as increase in the number of local manufacturers.
“Over 50 exhibitors and so many made in Nigeria products including made in Nigeria armoured vehicles,” he said.
He noted that the contribution of KADCCIMA to the development of national economy was well appreciated and reiterated government commitment to work with the agency to achieve the vision of sustainable and inclusive growth of the economy.
Gov. Nasir El-Rufai also congratulated KADCCIMA for successful hosting of the fair in the state.
El-Rufai, who was represented by Idris Nyam, Commissioner for Business, Innovation and Technology, noted that Kaduna was a fertile place for investment especially in agriculture urging prospective investors to feel free and invest in the state.
Also speaking, the President KADCCIMA, Dr. Muhibbat Dankaka, thanked the investors, exhibitors and other stakeholders who assisted in making the trade fair successful.
Dankaka commended El-Rufai for providing conducive environment for investors, manufacturers and other participants to carry out their activities peacefully during the fair.
The president also commended the Nigerian military for supporting KADCCIMA and agreeing to partner with the chamber every year.
Awards were presented to some dignitaries and best exhibitors.
The fair witnessed high turnout as families and other consumers were seen patronising vendors displaying local and foreign goods.( NAN)
March 9, 2020
Nigeria records N36.1 trn total trade in 2019 — NBS
The National Bureau of Statistics (NBS) says Nigeria recorded N36.152 trillion as value of total trade in 2019, representing a 14.05 per cent increase over 2018.
The bureau said this in its “Foreign Trade in Goods Statistics, Quarter Four, 2019”, released on Friday in Abuja.
However, this was lower than 36.86 per cent recorded in 2018 over 2017.
“The level of imports stood at N16.959 trillion while exports were valued at N19.192 trillion, resulting in a trade balance of N2.232 trillion.
“While imports rose by 28.8 per cent in 2019 over 2018, exports rose by only 3.6 per cent and the trade balance was 58.4 per cent less than in 2018.”
It said that in the fourth quarter of 2019, the value of total trade was N10.1 trillion, or 10.2 per cent higher than the value recorded in quarter three, 2019 and 25.9 per cent higher than in quarter four, 2018.
According to the report, Nigeria’s merchandise trade grew in quarter four, 2019 but imports rose faster, exceeding falling exports.
“The value of the export component (N4.770 trillion) fell by 9.79 per cent against quarter three, 2019 but rose by 7.06 per cent when compared with the corresponding quarter in 2018.
“On the other hand, the import component (valued at N5.349 trillion) increased by 37.20 per cent in quarter four against quarter three, 2019 and 49.34 per cent against quarter four, 2018.
“The faster increase in imports resulted in a negative trade balance of N579.06billion during the quarter under review, the first since mid- 2016.”
Giving an overview of total imports in the fourth quarter of 2019, the NBS said it stood at N5.349.63 billion, representing an increase of 37.2 per cent over the value recorded in quarter three, 2019 and 49.34 per cent over the corresponding quarter of 2018.
It added that in 2019, total imports grew by 28.8 per cent compared to 2018.
“The value of imported agricultural goods decreased by 2.8 per cent in quarter four, 2019 compared to quarter three, but rose 6.6 per cent compared to the corresponding quarter in 2018.
“The value of agricultural imports in 2019 was 12.7 per cent higher than in 2018.
“Raw material imports were 1.63 per cent higher in quarter four, 2019 compared to quarter three and 8.47 per cent higher compared to quarter four, 2018.
“Imports of raw materials grew 19.2 per cent in 2019 compared to 2018,” it said.
The report said that solid minerals imports decreased in value by 6.98 per cent in quarter four, 2019 relative to quarter three, 2019 but were higher by 5.11 per cent relative to quarter four, 2018.
However, the value of solid minerals imports rose by 28.1 per cent in 2019 compared to 2018.
The NBS said that the value of imported manufactured goods was 40.74 per cent higher in quarter four, 2019 than the level attained in quarter three 2019 and 77.50 per cent more than in quarter four, 2018.
This, it said, was due to the importation of other electrodiagnostic apparatus during the quarter.
It added that for 2019, the value of imported manufactured goods imports was 60 per cent higher than in 2018.
According to the report, the value of energy goods imports decreased by 65.27 per cent in quarter four, 2019 compared to quarter three, 2019 and by 75.86 per cent compared to quarter four of 2018.
It added that for 2019, the value of energy goods imports fell by 56.2 per cent compared to 2018.
On other oil products imports, the NBS said that they were 60.59 per cent higher in value in quarter four, 2019 than in quarter three and 2.11 per cent higher than quarter four, 2018.
“For annual 2019, the value of other oil products imports fell by 34.3 per cent relative to 2018 levels.”
For export, the NBS said total export was 9.79 per cent lower in value in quarter four, 2019 compared to quarter three, 2019 but 7.06 per cent higher relative to quarter four of 2018.
It added that in 2019, the value of total exports was 3.56 per cent higher than in 2018.
The NBS reported that in quarter four, 2019, crude oil remained the dominant export valued at N3.629 trillion and accounting for 76.1 per cent of total exports, while non crude oil exports amounted to N1.141 trillion or 23.9 per cent.
“However the value of crude oil exports in quarter four, 2019 was 3.16 per cent lower than in quarter three, 2019 and 0.88 per cent lower than the corresponding quarter of 2018.
“On an annual basis, the value of crude oil exports at N14.690 trillion, was lower than in 2018 by 3.08 per cent.”
The NBS added that for 2019, the value of oil exports was lower than in 2018 by 3.08 per cent.
The report said that other oil products export were 16.13 per cent higher in value in quarter four, 2019 compared to quarter three, 2019, but 4.85 per cent lower than the level in 2018.
It added that the value of other oil exports was 9.2 per cent lower in 2019 than in 2018.
According to it, agricultural goods exports grew in value by 61.89 per cent in quarter four, 2019 compared to quarter three 2019 but decreased by 30.23 per cent when compared with quarter four, 2018.
However, in 2019, the value of agricultural goods exports fell 10.74 per cent relative to 2018.
For raw material exports, there was a decline in value by 27.99 per cent in quarter four, 2019 against the level in quarter three, 2019 and by 48.18 per cent against quarter four, 2018, the report said.
On an annual basis, raw material exports fell 14.02 per cent in 2019 compared to 2018.
The NBS said that solid minerals exports in quarter four, 2019 was 69.58 per cent lower than the value recorded in quarter three, 2019 and 75.10 per cent less than quarter four, 2018.
It added that the 2019 value of solid minerals exports was 61.52 per cent lower than in 2018.
For manufactured goods, it said exports in quarter four, 2019 was 48.9 per cent less in value than recorded in quarter three of 2019 and 573.19 per cent higher than quarter four, 2018.
It said that in 2019, the value of manufactured goods exports was over 200 per cent higher than in 2018.
For crude oil, exports in quarter four, 2019 were 3.16 per cent lower than the value in quarter three, 2019 and 0.88 per cent lower than quarter four, 2018.
According to the report, energy goods exports in quarter four, 2019 grew by 7.29 per cent against the level in quarter three, 2019, but declined by 44.36 per cent when compared with quarter four, 2018.
It however, said that in 2019, the value of energy goods exports was lower by 25.49 per cent compared to 2018. (NAN)
March 7, 2020
2019: Access Bank posts N666.75bn gross earnings, declares 40k final dividend
Access Bank Plc has posted gross earnings of N666.75 billion for the financial year ended Dec. 31, 2019.
The bank’s audited result released by the Nigerian Stock Exchange (NSE) showed that gross earnings was higher by 26.10 per cent when compared with N528.75 billion in the comparative period of 2018.
Its profit before tax stood at N115.38 billion in contrast with N103.188 billion achieved in 2018.
Also, profit after tax rose to N97.51 billion from N94.98 billion, while earnings per share decreased from N3.31 to N2.90 during the period under review.
The Board of Directors recommended a final dividend of N14.22 billion, translating to 40k per share, higher than 25k per share paid in 2018.
Meanwhile, the bank had earlier proposed and paid interim dividend of 25k per share, bringing the total dividend per share for 2019 to 65k per share.
Also, net interest income stood at N277.23 billion, compared with N173.578 billion in 2018, while interest expense rose from N207.34 billion to N259.62 billion.
Net Impairment rose to N20.19 billion, compared with N14.66 billion in 2018.
Net fee and commission income increased to N74.04 billion as against N52.49 billion in 2018.
Loans and advances to customers grew to N2.91 trillion from N1.99 trillion in 2018, while deposits of customers stood at N4.26 trillion from N2.56 trillion in 2018.
Recall that the bank consumated a business combination with the defunct Diamond Bank.
Mr Herbert Wigwe, the bank’s Group Managing Director, said recently that it was now fully positioned in the retail market with the completion of the merger.
“Following the successful completion of the merger with Diamond Bank in March 2019, we have now fully positioned ourselves in the retail market with a view to bringing the power of banking to the doorsteps of millions.
“We are providing a broader platform to facilitate payments services in Nigeria and across Africa, by harnessing our significantly enhanced digital technology capabilities,” Wigwe said.
He said that the bank had made solid progress in line with its 2018-2022 five-year strategy and remained committed to the achievement of its strategic imperatives going forward.
According to him, the bank will continue to invest in its people, technology and most importantly, its product offerings to customers.
“Our focus is to become the world’s most respected African Bank by leveraging on the strength of our retail and wholesale business to provide unrivalled value to our customers,” he stated. (NAN)
March 7, 2020
China to lower logistics costs for enterprises amid epidemic
The China State Railway Group (CSR), says China’s railway department will lower miscellaneous freight charges periodically to reduce logistics costs of enterprises amid the epidemic.
The Chinese news agency which made this known on Friday said miscellaneous freight charges would be halved from March 6 to June 30.
It stated that this development was expected to ease logistics costs by 380 million yuan, about 54.75 million dollars for enterprises and shippers.
“The measure may effectively offset the impact of the epidemic on logistics services and help enterprises resume production as soon as possible.
“Meanwhile, the railway department will give full play to ensure the transport of supplies for epidemic control and work resumption with more precise plans,” it added. (NAN)
March 6, 2020
Don advocates review of fiscal federalism in Nigeria
A Professor of Economics, Israel Taiwo of the University of Ilorin, has advised the Federal Government to review the fiscal federalism in certain aspects with a view to decentralis and make it more viable
Taiwo made the call in his paper presentation at the 194th Inaugural Lecture of the university, entitled: “Economic policy reset for Nigeria: a perspective”.
The don, who teaches in the Faculty of Social Sciences of the university, stated that the review should cover the legal and institutional framework for the allocation of expenditure responsibilities.
He also explained that the review should include taxing powers, allocation of centrally collected revenue to the three tiers of government and coordination of the expenditure responsibilities of the three tiers.
“Improvement in the fiscal federalism arrangements would enhance public service delivery, promote efficient allocation of resources and strengthen the accountability system in terms of how public funds are utilised.
“In order to fine-tune fiscal federalism arrangements in Nigeria, the Federal Government in collaboration with state governments should adopt human capital development policy.
“They should also mitigate fiscal inequalities across jurisdiction and adopt at federal level, an expenditure model that enables the Federal Government to collaborate deeply with the state governments, like development partners do, for the provision of basic services at the subnational level,” he said.
The expert in Economics observed that the prospects of Nigerian economy are lukewarm in the medium-term based on projections made by several organisationsincluding the International Monetary Fund (IMF), the World Bank and Organisation of Petroleum Exporting Countries (OPEC).
He stated that: “The size of Nigerian economy would increase only marginally in the medium-term.
“Real GDP growth would average 2.6 per cent during 2020 to 2024, compared to 4.8 per cent in emerging market and developing economies and about 4 per cent in sub-Saharan Africa.”
According to Taiwo, there is need to also review Public Financial Management (PFM) to make the system open, orderly and capable of delivering public goods and services, as well as review of wage policy, debt policy and cost of borrowing policy, among others.
He therefore advised the Federal Government to adopt an expenditure model that enables the government to collaborate deeply with state governmente for the provision of basic services at the substantial level. (NAN)
March 6, 2020
Abia stakeholders reject EEDC’s planned tariff increase
Aba electricity consumers have rejected Enugu Electricity Distribution Company’s (EEDC) planned tariff increase in the state, citing the company’s poor management and poor services as reasons for rejection.
The Customers spoke during a “Stakeholders Consultations on Extraordinary Tariff Review Application” meeting in Aba on Wednesday.
Mrs Ifeoma Ezeka, from World Bank Estate, Aba, said EEDC has proved to be worse than NEPA in servicing consumers.
“We only get light by 12 a.m and it is taken by 4 a.m and not in the day so we cannot do anything in the night with electricity.
“The issue is not about tariff increase, but it is about getting things in order by EEDC.
“So I do not support tariff increase, but EEDC should recover the lost funds to improve facilities and services and forget the increase,” Ezeka said.
Mr Johnson Irogbulam from Ogbor Hill area said that considering the activities of EEDC staff, who give single flats up to N20,000 as monthly bills, they should not think of increasing tariff.
“If people are given a bill of N20,000 for a flat resident, that is more than 50 per cent increase EEDC is seeking, so it does not need tariff increase in Abia,” he said.
On his part, Mr Jonathan Efiaworia said EEDC is not properly covering Abia resulting in energy waste, stressing that improved management and recouping funds owed would give them the money they seek through tariff increase.
He said that the increase would not amount to improved infrastructure and better treatment of customers, but would ensure bill-paying consumers pay more for what others steal or is lost on the lines.
Chief Ike Opiigwe from Ogbor Hill said without the Distribution Company taking responsibility to maintain their equipment, improve their management, “the move to increase tariff will be a Christmas bonus to EEDC”.
He urged EEDC to stop leakages in finance and power supply to increase their income, noting that the DISCO should check its staff who steal from it.
“Some EEDC staff have customers who they collect money from and who do not pay their bills so we do not agree to the increase because we are suffering and contributing money to running of EEDC,” he said.
He however suggested that if they wanted to increase tariff they should not add more that 15 per cent.
Earlier, the Managing Director of EEDC, Mr Okey Nwosu, said issues for discussion on the tariff was very important to enable stakeholders contribute to the company’s progress.
He said there was the need for tariff increase now because the cost of doing business had increased for the company, noting that the Nigerian Electricity Regulatory Commission will take the discussion back to Abuja.
Nwosu, represented by Head, CTO, Mr Vincent Ekwuekwu, said their services would improve if tariff is increased, which is the reason for the consultation.
Mr Emeka Onyewule, the NERC representative from Abuja, said Aba is very important to the business of EEDC, but that it requires money to improve services.
He said stakeholders should contribute to the discourse to arrive at something better for parties but with the mindset that the government could increase the tariff without stakeholders’ input.
He said the stakeholders should not allow the DISCOs to shut down because people could run generators. (NAN)
March 5, 2020
AfCFTA: Stakeholders propose merger of SMEs to harness benefits
Stakeholders of Small and Medium Enterprises (SMEs) have proposed business mergers to maximally enjoy the benefits of the Africa Continental Free Trade Area (AfCFTA) scheduled to take off in July.
They made their views known in separate interviews with the News Agency of Nigeria (NAN) on Thursday in Lagos.
AfCFTA, which was signed by President Muhammadu Buhari in July, 2019, aims to unite 1.3 billion Africans with a 3.4 trillion dollars economic capacity.
Speaking, Dr Femi Egbesola, National President, Association of Small Business Owners of Nigeria (ASBON), strongly supported the merger proposition, saying that the more businesses become a coalition, the stronger.
Egbesola explained that SMEs were unable to do much in the previous opportunities because many business owners were trying to do things on their own.
He said that the AfCFTA terrain was one which they were not used to and as such, needed to pull energies and resources together to benefit maximally.
“In many other countries like India, and Ghana, people doing similar businesses come together to form a cluster or a sort of network.
“This has helped them to address the challenges as a group which yields better results than when it is just one entity.
“I also advise business membership organisation to also come together to form bigger coalitions with same mind and set goals to achieve greater results,” Egbesola said.
Also, Mr Solomon Aderoju, President Nigerian Association of Small and Medium Enterprises (NASME), said some SMEs which was lacking or was underperforming in a value chain of production could align with others.
Aderoju said this was to ensure global competitiveness in the trade agreement.
He explained that some small businesses that either lacked in finance, research, or marketability could identify their strengths and come together to harness greater benefit in the AfCFTA.
“If two or three of these businesses, along the same trade line, can come together, then things would be better for us all.
“If you are strong in trade, another is strong in capital, another in research, then, they can pull resources together and be a greater force in the trade circle.
“But, the problem is everybody wants to be on their own and as such may not be strong enough to compete favourable when the AfCFTA begins,” he said.
The NASME president, however, called for a proper legal framework to help address issues of rights, profit sharing and any other challenges to ensure smooth flow of operation amongst business entities.
He also urged the government to continue to engage factors and policies to address the cost of doing business and improve the nation’s ease of doing business rankings.
In his remarks, Dr Muda Yusuf, the Director-General, Lagos Chamber of Commerce and Industry (LCCI), urged SMEs to factor in business and personal compatibility in taking merger decisions.
Yusuf said that this was necessary because the merger phenomenon was not popular and akin to the Nigerian business climes.
“Size matters in competitiveness and competition, but compatibility matters too,” he said. (NAN)
March 5, 2020
NSE: Law Union, United Capital emerge best performing stocks in February
Law Union & Rock Insurance and United Capital (UCAP) have emerged the best performing stocks in percentage on the Nigerian Stock Exchange (NSE) for February.
Statistics obtained by News Agency of Nigeria (NAN) from the exchange indicated that Law Union & Rock rose by 32.35 per cent, while UCAP increased by 21.43 per cent.
Livestock Feeds trailed with 12.50 per cent, while Union Bank of Nigeria grew by 10.17 per cent.
Flour Mills during the period increased by 4.02 per cent, while Julius Berger appreciated by 1.13 per cent.
Conversely, FBN Holdings was the worst performing stock during the period under review, dropping by 33.33 per cent.
Chams came second with a loss of 31.43 per cent, while UACN lost 29.86 per cent.
ETI had 29.41 per cent, Redstar Express 26.97 per cent and Linkage Assurance dipped 26.32 per cent.
Consequently, the All-Share Index which opened at 28,843.53 dropped by 2,627.07 or 9.11 per cent to close at 26,216.46 in February.
Also, the market capitalisation declined by N1.2 trillion or 8.07 per cent to close at N13.66 trillion from N14.86 trillion posted in January.
The difference in the index and market capitalisation was due to the listing of additional shares of Abbey building and AIICO Insurance during the month.
Commenting on February market performance, Mr Ambrose Omordion, the Chief Operating Officer, InvestData Ltd., said that the market breadth for the month was negative and weak with six gainers and 67 losers.
Omordion said that the downturn defied positive factors such as the prevailing low rates and declining yields in the money and fixed income markets.
He attributed dwindling investor confidence in the economy and market to rising insecurity, inflation and lack of liquidity in the equity segment of the financial market.
Omordion added that the coronavirus outbreak induced selloffs in developed markets with a confirmed case in Nigeria contributed to the negative trend.
He, however, urged investors not to panic but should go for equities with intrinsic value.
“We advise investors to allow numbers to guide their decisions while repositioning for the year trading activities, especially now that stock prices remain volatile amidst improving company, economic and market fundamentals.
“The current undervalued state of the market offers investors opportunities to position for the short, medium and long-term, which is why investors should target fundamentally sound, and dividend-paying stocks for possible capital appreciation. (NAN)
March 4, 2020
Why we prefer second hand clothes- Jos residents
Some residents of Jos in Plateau, have said that they preferred second hand clothes, popularly called “Okirika”, because they were more durable compared to new ones usually obtained in boutiques.
A cross section of residents interviewed by the News Agency of Nigeria (NAN), on Monday in Jos, said that the second hand clothes were cheaper than the new ones.
Miss Precious Alani, a student of University of Jos, said she patronise second hand clothes because they were cheaper than the new ones.
Alani explained that as a student, she could only afford second hand clothes due to her meagre income, noting that the price of new ones were usually on the high side.
“I patronise second hand clothes because they are within my purchasing power; they are actually affordable.
“As a student, my income is hardly sufficient for me to go for new clothes, so my resolve at the moment is to buy second clothes that are cheaper and will last longer for me,” she said.
Mr Joshua Eddi, a civil servant, corroborated Alani’s claim saying that the new clothes produced in Nigeria were mostly inferior in quality, as they easily worn out within a short time.
Eddi said that the price of new clothes was not a factor preventing him from using them, but their quality.
“I prefer second clothes to ones produced in Nigeria because they are more durable and qualitative.
“I earn monthly salaries as a civil servant, so the money to buy new clothes is not the issue but the poor quality is what is pushing me to the second hand ones.
“For instance, I love wearing jeans, and when you go for new ones they fade easily compared with the ones we buy from ‘okrika’,” he said.
Mrs Garos Mancha, a banker, said she patronise second clothes because of their uniqueness.
“One rarely finds similar second hand shirts or pair of trousers around as the case with new ones,” Mancha said.

She said new clothes were usually produced in large quantity, making them easily available to different people at the same time.

“For me, I prefer second hand clothes because of the exclusivity and rareness. I hate it when I wear a shirt and see another person putting on exactly the same thing I am wearing.

“That is the common thing with new clothes produced in Nigeria. So, I go for second hand clothes because you hardly see people wearing same thing with me,’’ she said.

Selling of second hand clothes has been a thriving business, particularly among young people in Jos and its environs.

A visit to the famous terminus market, particular on Sundays, indicated that sellers of all kinds of second hand clothes have taking over the market with their products and making brisk business.(NAN)
March 4, 2020