Economy
Abuja Chamber of Commerce Lauds FCTA’s Tax Harmonisation Policy
By Adedapo Adesanya
The Abuja Chamber of Commerce and Industry (ACCI) has welcomed the declaration by the Federal Capital Territory Administration (FCTA) to harmonise tax policy within the territory to ease the burden of multiple taxation on Small and Medium Enterprises (SMEs).
This was disclosed by ACCI president, Mr Al-Mujtaba Abubakar, who said the decision, confirmed the FCT Minister, Mr Muhammad Bello, acknowledged the challenges faced by businesses within the territory due to series of levies, charges and taxes from the Federal Government, FCTA and Area Council Administration.
Mr Abubakar noted that, “Multiple taxation within the FCT and the larger national economy has imposed crippling consequences on businesses. The fallout has been many failed businesses, the rising level of inflation, the non-thriving of existing ones and the lack of capacity to engage much-unemployed youth.
“We want to note that lower taxes when also harmonised enhance the prosperity of the economy. As an SME nation, expanding the base and health of the business sector is a smart choice to exit recession and adjust to the pandemic economic disruption.
“It is thus gratifying to note that FCTA is taking the lead to ease the tax burden on SMEs. Such an action will have a multiplier effect on the FCT economy, leading to more job creation and reduction of the poverty rate.”
“The path of lower taxation to speed up the growth of the economy is a tested tool that has helped many economies. Japan, Taiwan, South Korea, Singapore, old Hong Kong, Russia, Australia, and Israel are some of the non-western countries that have, in the last 100 years, managed to move their countries from developing to developed economies through a combination of lower tax rate and high tax base.
“The Abuja Chamber of Commerce and Industry is of the view that governments at all level should focus on increasing the tax base rather than the tax rate,” he added.
He noted that the tax policy reform being contemplated by the FCT administration is of direct significance and interest to the ACCI and expressed readiness to identify and work with the FCTA to accomplish the objectives.
“According to official data, as a percentage of GDP, Nigeria taxes represent 6.1 per cent, one of the lowest in the world. The tax-to-GDP ratio in South Africa was 29 per cent, Ghana 18 per cent, Egypt 15 per cent and Kenya 18 per cent says the OECD in a 2019 report.
“More businesses and citizens should be brought under the tax regime albeit with reduced and well-harmonised rates that are devoid of multiple taxations.
“We want to note that the tax policy reform being contemplated by the FCT administration is of direct significance and interest to us at the ACCI. Our members are negatively impacted by multiple taxation. The economy of the Territory is also stunted by this crippling tax regime. It is therefore our pleasure to identify and work with the FCTA to accomplish these noble objectives.
“We consequently call on the FCTA to engage critical stakeholders in this very laudable reform. This will ensure that all relevant inputs are integrated before the finalisation of the reform plan. The ACCI is ready to provide interactive policy reform platform in support of the process,” he said.
By Adedapo Adesanya
The NASD Over-the-Counter (OTC) Securities Exchange jumped 1.04 per cent on Wednesday, June 17, with the market capitalisation adding N26.99 billion to settle at N2.619 trillion compared with the previous session’s N2.592 trillion, and the Unlisted Security Index (NSI) rising by 45.1 points to close at 4,378.45 points, in contrast to the preceding day’s 4,333.35 points.
The rally was driven by the gains reported by two securities, which outweighed the losses posted by three securities, led by FrieslandCampina Wamco Nigeria Plc, which dipped by N1.95 to N178.19 per unit from N180.14 per unit. Geo-Fluids Plc lost 19 Kobo to close at N2.61 per share compared with Tuesday’s closing price of N2.80 per share, and Food Concepts Plc slid by 1 Kobo to N1.77 per unit from N1.78 per unit.
On the flip side, Central Securities Clearing System (CSCS) Plc recorded a N6.33 appreciation to trade at N86.57 per share versus the previous day’s N80.24 per share, and Light House Financial Services Plc grew by 10 Kobo to N1.13 per unit from the N1.03 per unit it closed a day earlier.
In the midweek session, the value of stocks traded by investors surged by 181.0 per cent to N128.3 million from the preceding session’s N45.6 million, the volume of securities increased by 305.6 per cent to 2.8 million units from Tuesday’s 688,290 units, and the number of deals executed jumped by 6.5 per cent to 33 deals from 31 deals.
At the close of trades, Great Nigeria Insurance (GNI) Plc remained the most active stock on a year-to-date basis, with 3.4 billion units valued at N8.4 billion, followed by Infrastructure Credit Guarantee (Infracredit) Plc with 2.3 billion units sold for N6.5 billion, and CSCS Plc with 67.3 million units exchanged for N4.6 billion.
GNI Plc also ended as the most traded stock by volume on a year-to-date basis, with 3.4 billion units worth N8.4 billion, followed by Infracredit Plc with 2.3 billion units sold for N6.5 billion, and Resourcery Plc with 1.1 billion units traded for N415.7 million.
By Dipo Olowookere
As part of moves to boost its internally generated revenue (IGR) and increase its streams of income, Ayobo-Ipaja Local Council Development Area (LCDA) is considering commercial ostrich and crocodile farming.
The council recently held a sensitisation programme, where agribusiness experts engaged stakeholders, including residents and entrepreneurs, on the viability of this.
The programme provided participants with the knowledge on investment requirements, training opportunities, startup funding, and regulatory frameworks guiding ostrich and crocodile farming in Nigeria.
The chairman of Ayobo-Ipaja LCDA, Mr Lukmon Agbaje, commended the initiative, reiterating his administration’s commitment to promoting innovative agricultural practices as a pathway to sustainable development.
He described agriculture as a critical driver of economic transformation, stressing that modern farming has evolved into a profitable business venture with immense potential for youth empowerment and enterprise development.
Mr Agbaje further assured participants of the council’s readiness to partner with investors, agricultural institutions, and other relevant stakeholders to facilitate training, capacity building, and access to opportunities across the agricultural value chain.
On his part, the council’s Head of Department of Agriculture, Mr Wale Atepe, emphasised the growing market demand for products such as leather, meat, feathers, and other valuable by-products, adding that strategic investment in the sector could unlock significant opportunities for employment, wealth creation, and export earnings.
By Adedapo Adesanya
The Naira depreciated against the United States Dollar by 0.21 per cent or N2.89 in the Nigerian Autonomous Foreign Exchange Market (NAFEX) on Wednesday, June 17, to N1,360.07/$1 from Tuesday’s closing rate of N1,357.18/$1.
In the same vein, the Nigerian Naira weakened against the Pound Sterling in the official market during the session by N4.42 to trade at N1,824.81/£1 versus the preceding session’s N1,820.39/£1, and lost N4.19 on the Euro to sell at N1,577.96/€1 compared with the previous day’s N1,573.79/€1.
However, at the GTBank segment, the local currency gained N1 against the greenback yesterday to exchange at N1,372/$1 versus N1,373/$1, and at the parallel market, it remained unchanged at N1,385/$1 at midweek.
The Naira’s performance comes amid tight inflows from exporters, non-bank corporates, and foreign investors, evidenced by the slow movement of the country’s gross external reserves level of $50.505 billion, despite muted inflows from oil sales after a recent drop in prices.
There have been reduced FX market interventions by the Central Bank of Nigeria (CBN) as it maintains its stance to keep the local unit stable enough to retain foreign investments.
The Nigerian government also dismissed a report suggesting that it was considering new taxes on telecommunications services and petroleum products, which would have spooked investors.
The federal government said that the reports misrepresented recommendations contained in the International Monetary Fund (IMF) Article IV Consultation Report on Nigeria, explaining that the recommendations were advisory and do not constitute government policy or binding obligations on Nigeria.
In the cryptocurrency market, prices were negative as traders and investors shrugged off a signed Iran peace deal that lifted stocks, after the Federal Reserve held interest rates but made clear it is more worried about inflation than growth.
Under the new Chair, Mr Kevin Warsh, the Federal Reserve left rates unchanged at 3.5 per cent to 3.75 per cent, in line with expectations, but its updated projections pointed to higher inflation and a slower pace of future rate cuts, and some officials floated the possibility that rates may still need to rise.
Cardano (ADA) slid 4.5 per cent to trade at $0.1731, Ripple (XRP) went down by 4.2 per cent to $1.16, Ethereum (ETH) shrank by 3.5 per cent to $1,727.55, Solana (SOL) lost 3.4 per cent to sell $71.05, Dogecoin (DOGE) also fell by 3.4 per cent to $0.0843, Binance Coin (BNB) slumped by 3.1 per cent to $587.53, and Bitcoin (BTC) crashed by 2.6 per cent to $63,892.28, while TRON (TRX) gained 0.7 per cent to finish at $0.3201, with the US Dollar Tether (USDT) and the US Dollar Coin (USDC) closing flat at $1.00 each.
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