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Manufacturers Warn of Imminent Collapse of Soft Drinks Sector

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soft drinks sector

By Modupe Gbadeyanka

The proposed introduction of a 20 per cent ad-valorem excise tax by the federal government on non-alcoholic beverages, which covers the widely consumed Carbonated Soft Drinks (CSD) segment, could lead to the collapse of the soft drinks sector, the CSD arm of the Manufacturers Association of Nigeria (MAN) has cried out.

The group urged the government to rescind its decision on the matter, stressing that such a move would spell doom for the sector as the effect of the prevailing N10 per litre tax regime was already crippling the sector with its biting effects on their businesses, a sector that accounts for 33 per cent of the entire manufacturing sector in Nigeria.

Rising from a meeting last Thursday in Lagos, the sectoral group said “the additional 20 per cent will not only kill the sector but result in the loss of revenue by the federal government and a consequential phenomenal loss of jobs by various layers of the Nigerian workforce,” noting that it was already having devastating effects on the end cost to consumers, considering their poor economic condition.

The group called for the suspension of the excise tax being proposed by the federal government to forestall the collapse of the industry.

Corroborating this position, the Corporate Affairs and Sustainability Director of the Nigerian Bottling Company (NBC), Mr Ekuma Eze, pointed out that the N10 per litre currently in practice has no bearing on profitability for any of the members of the sectoral group.

He stated that since the introduction of the N10 per litre excise tax, businesses in the sector have been experiencing a worrisome decline; the average loss in volume and revenue is 10 per cent between June to September 2022, and it is estimated that the decline will further worsen to 25 per cent by December 2022.

It was stated that with the proposed 20 per cent ad-valorem tax introduction, the collapse of the soft drink market is imminent. This will be catastrophic as thousands of jobs will be affected, and the ultimate aim of the government in collecting revenue will be completely defeated.

Interestingly, the manufacturing industry contributes 15 per cent to the Gross Domestic Product (GDP) of the Nigerian economy, while the food and beverage sector contributes 5 per cent, and with a payment of N202 billion to the government on Value Added Tax (VAT), and N207 billion in Company Income Tax, an enormous amount that would be lost by the federal government if the sector is allowed to collapse, which will have a multiplier effect on infrastructural development and growth of the already troubled economy.

According to the Nigeria Bureau of Statistics (NBS), the food and beverage division of the economy in the last five years generated 1.5 million jobs, both direct and indirect, and it was from 2020 to date that some companies in the sector strived to pay Minimum Tax, which is a pointer to the fact that the business climate is deteriorating, as the companies are finding it difficult to carry out their operations effectively.

Modupe Gbadeyanka is a fast-rising journalist with Business Post Nigeria. Her passion for journalism is amazing. She is willing to learn more with a view to becoming one of the best pen-pushers in Nigeria. Her role models are the duo of CNN's Richard Quest and Christiane Amanpour.

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FedEx Fully Enters Nigerian Market to Meet International Shipping Demands

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FedEx Express

By Adedapo Adesanya

FedEx Express (FedEx), a subsidiary of FedEx Corporation, the world’s largest express transportation company, has announced establishing a direct commercial presence in Nigeria to meet the country’s growing international shipping demands.

Although FedEx has been facilitating trade in Nigeria since 1994, offering its international solutions through Red Star Express Plc; with this latest initiative, FedEx will continue to leverage the capabilities and infrastructure of the service provider, Red Star Express Plc, that will continue to provide pick-ups, deliveries, customs clearance services, and retail locations across the country.

In a press release seen by Business Post on Wednesday, the company said that with a direct presence in the country, businesses and customers in Nigeria now have greater access to a wider portfolio of FedEx Express shipping solutions, while Red Star Express continues to provide the infrastructure for ground operations.

The statement noted that, “Customers will also have access to a range of FedEx digital tools that make shipping easier and more efficient through its website. These services include opening a new account, tracking shipment status, creating shipping air waybills, scheduling courier pickups, and managing billing.”

With the direct presence, FedEx will now have dedicated Sales and Customer Technology teams on the ground to interact and provide enhanced logistics expertise to help local businesses grow internationally.

Speaking on this, Mr Taarek Hinedi, vice president for FedEx Middle East and Africa operations, said, “Today we are closer to our customers than ever before. This strategic step makes it easier for local businesses to ship with us as they look to tap more import and export opportunities and grow their customers around the world.”

“Nigeria is on the right path for further growth, and FedEx is committed to supporting this growth and connecting Nigeria to some of the biggest trading partners located in Asia and Europe. The FedEx network is crucial to provide businesses with greater connectivity between Africa and Europe as well as within the Asia Pacific, Middle East, and Africa (AMEA) region,” said Mr Hinedi.

“As Nigeria continues with its 2021 to 2025 National Development Plan to increase the share of its exports to Africa up to 35 per cent from a base figure of 20 per cent, businesses will require a range of international services and solutions to help boost the economy,” he added.

FedEx also said it remains committed to supporting the Nigerian government’s Economic Recovery and Growth Plan (ERGP) to drive structural reforms to diversify its economy and reduce dependency on oil.

The FedEx direct presence in the country will help connect Nigerian business owners, exporters, importers, and consumers to more than 220 countries and territories worldwide, covering more than 99 per cent of the world’s gross domestic product.

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Real Estate Company Promises to Develop Remoland

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real estate company Adron Homes

By Adedapo Adesanya

A real estate company, Adron Homes, has promised to contribute its input to the development of Remo in Ogun State.

The group managing director and chief Executive Officer of Adron Homes, Mr Adetola EmmanuelKing, gave this assurance when he led the other senior management team to visit the Akarigbo of Remo, Oba Babatunde Adewale Ajayi.

The team visited the monarch to celebrate his 60th birthday and his 5th-year reign as the paramount ruler of Remoland.

Mr Adetola said, “Five years of your pragmatic leadership, coupling your unifying qualities, abilities, and relentless attraction of investors to Remoland and the state at large, has transformed the entire Remo land into a development hub.

“Remo Growth & Development Foundation, formed under your headship and influence, promoted self-expression and developed a bond beyond Remoland to other countries where Remo indigenes are domiciled.

“We have reached a point in the growth of Nigeria as a whole where we cannot be undermined because of your leadership as the Akarigbo of Remoland.”

He further stated that Remo is now a safe area to live and conduct business without risk to people’s lives or property.

Also speaking, the non-executive director of Public Affairs and International Relations of Adron Homes, Ms Kemi Osude Laniyan, reaffirmed the company’s commitment to helping the communities of Remoland.

“As a company, through our CSR, have consistently put our host communities’ welfare at the forefront of our activities, we have touched their lives in various areas, such as education, security, and health, to name just a few, and we will continue to affect the lives and welfare of people positively,” she said.

In his remarks, the traditional ruler thanked his guests for the visit, promising to keep steering the activities of the Remoland to greater heights.

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Quickteller Paypoint Rewards Over 1,000 Agents

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Quickteller Paypoint agents

By Modupe Gbadeyanka

Over 1,000 agents of Quickteller Paypoint have been rewarded with exciting prizes from the company’s ongoing Double Up Promo.

Five of the winners, Bamidele Aminat, Ishaya Galion, Ayinla Habeeb of Achiever’s world, Edozie Joy, and Ilonwa Peter of Oxford Logistics, visited the Quickteller Paypoint premises to receive their prizes and celebrate their win.

The campaign was introduced by the financial inclusion services vehicle of Interswitch as part of its effort to reward agents’ loyalty.

The promo, which began in September, has seen participation from over 2,000 individuals/businesses within the Quickteller Paypoint agency network.

After a series of raffle draws monitored closely by relevant regulatory bodies like the Federal Competition and Consumer Protection Commission (FCCPC), the Lagos State Lottery Board (LSLB), and the National Lottery Regulatory Commission (NCLRC), more winners emerged from another raffle draw concluded recently.

Speaking on the Double Up Promo, the Marketing Manager of Quickteller Paypoint, Bunmilofe Akingbola, stated that the prize presentation ceremony was done to reward the effort and dedication of its agents across the country towards driving the goal of the consumer digital payments platform.

“Our major focus at Quickteller Paypoint is to deepen financial inclusion by bringing financial services closer to Nigerians, especially those who are in financially excluded regions, and we are really excited about the capable partners we have found in our agents across the country.

“Today, we are rewarding these reliable agents through our Double Up Promo, thereby enhancing their lives. While we impact the lives of these agents, we are also enthusiastic about being able to reach more financially excluded Nigerians and touch more lives through avenues like this.”

Winners who emerged from the draws showed excitement and gratitude to Quickteller Paypoint for recognising their role in driving the growth of financial inclusion across the country and rewarding them for playing such a noble role.

They also opined about the financial freedom they have enjoyed since becoming Quickteller Paypoint agents, explaining that it is very lucrative and the Quickteller Paypoint team is very supportive.

At the heart of Quickteller Paypoint is the urge to deploy technological solutions to help drive the growth of financial inclusion in Nigeria and Africa at large. Through this promo, the company reaffirms its vision to onboard more potential agents who can also create income for themselves while making Nigeria a more financially included economy.

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