Economy
Heavy Taxes, Levies Making Nigeria Pariah to Investment—NECA DG
By Adedapo Adesanya
The Director-General of Nigerian Employees Consultative Association (NECA), Mr Adewale-Smatt Oyerinde, has said organised businesses are bleeding and continue to struggle for survival, and could make Nigeria a pariah to investment.
This is as he urged the federal government to urgently suspend the astronomical increase in excise duty and the introduction of new taxes and levies across the board.
Mr Oyerinde, according to the News Agency of Nigeria, said that the suspension of the increase was imperative as “The Road-map as previously agreed on Excise should be adhered to, in the spirit of policy consistency.
“The increases, if implemented, will be counter-productive as it will aggravate the current rate of unemployment, encourage smuggling and discourage Foreign Direct Investment (FDI).
“It will also reduce the purchasing power of Nigerians and actively promote the relocation of businesses to other countries (Corporate-Japa).
“With the multi-dimensional challenges currently faced by organised businesses, a gift that Nigerians do not want is an increase in taxes.’
He also said that government should not leave behind a legacy of tax burdens that would endanger the fragile growth achieved in the economy on the altar of revenue generation.
He, however, advised the government to reappraise its adherence to the principles and spirits of fiscal discipline as enshrined in various legislations.
According to Mr Oyerinde, with over 60 different taxes, levies and fees paid by businesses annually in Nigeria, “we are fast becoming a pariah state to investors.”
“As the Voice of Organised Business in Nigeria and a critical stakeholder in Nigeria’s economic renaissance, we reaffirm our commitment to decent work, responsible enterprises and the protection of workers and enterprise rights through all legal and legitimate means.
The NECA boss also felicitated with the Nigerian workers as they celebrated the 2023 International Workers Day with the theme “Worker’s Rights and Socio-economic Justice”.
He said that the theme was apt as workers had continued to contribute to the economic and socio-political progress all over the world and Nigerian in particular.
“As the global economy continues to witness disruptions coupled with political upheaval in many regions, the need to continue to protect not only workers’ rights but also human and Enterprise rights cannot be over-emphasised.
“Worker’s rights encompass a range of issues, including living wages, decent work, access to medical care, safety and health at work, bridging gender gaps, and freedom from discrimination.
“These rights thrive in an environment that promotes socio-economic justice. All these are in the different International Labour Organisations (ILO) fundamental instruments, which Nigeria is a signatory to,’’ he said.
Mr Oyerinde added that it is a time of deep reflection on the state of the struggle across the past, present, and possible future.
According to him, this reflection will give us a clear scorecard of how we have really managed the struggle.
“This includes the struggle for enterprise’s sustainability and competitiveness, wealth creation and equitable distribution, and an environment where social and economic justice is guaranteed.
“As we appraise the past and navigate a path towards the future, we urge organised Labour and indeed all stakeholders that no effort should be spared in promoting and defending Institutions that have been created to advance Industrial Harmony and Social Dialogue.
“We must continue to deepen our engagement through Social Dialogue with the view of leaving a long-lasting legacy of productivity, equitable distribution of wealth and social justice for generations unborn,’’ he said.
He also called on the Organised Labour to continue to partner to advocate for a hospitable business environment that would ensure equitable distribution of wealth for the collective good.
Mr Oyerinde commended the government and other Social Partners on the recent approval of the draft Labour Bills by the Federal Executive Council (FEC).
“We urge expeditious action that will facilitate the passage of the Bill within the shortest possible time,‘’ he said.
By Dipo Olowookere
About 0.04 per cent was recovered on Friday from the loss recorded by the Nigerian Exchange (NGX) the previous due to profit-taking.
Yesterday, investors were in the market with renewed vigour, mopping up stocks trading at relatively cheaper prices.
According to data, the insurance counter gained 0.41 per cent, the banking sector appreciated by 0.38 per cent, and the consumer goods index grew by 0.14 per cent.
The gains achieved by these three sectors were enough to lift Customs Street at the close of business despite the 0.26 per cent decline printed by the industrial goods segment and the 0.14 per cent loss suffered by the energy industry. The commodity counter was flat during the session.
A total of 43 equities gained weight on the last trading day of this week, while 26 equities shed weight, indicating a positive market breadth index and strong investor sentiment.
Red Star Express increased its share price by 10.00 per cent to N13.20, NCR Nigeria grew by 9.97 per cent to N128.55, SCOA Nigeria inflated by 9.96 per cent to N14.90, Omatek appreciated by 9.94 per cent to N1.77, and Deap Capital expanded by 9.85 per cent to N4.46.
On the flip side, McNichols decreased by 8.81 per cent to N6.00, Legend Internet crumbled by 7.56 per cent to N5.50, Cornerstone Insurance crashed by 6.48 per cent to N6.35, C&I Leasing contracted by 6.29 per cent to N8.20, and Austin Laz slipped by 5.78 per cent to N3.75.
Yesterday, 539.9 million shares valued at N16.7 billion were transacted in 48,023 deals versus the 1.0 billion shares worth N31.6 billion executed in 51,227 deals in the preceding day, implying a shrink in the trading volume, value, and number of deals by 46.01 per cent, 47.15 per cent, and 6.26 per cent apiece.
Zenith Bank was the most active for the day with 54.6 million stocks sold for N3.8 billion, Jaiz Bank traded 41.5 million units worth N359.4 million, Secure Electronic Technology transacted 37.7 million units valued at N39.2 million, Access Holdings exchanged 30.5 million units for N699.2 million, and Lasaco Assurance transacted 27.2 million units worth N68.3 million.
When the market closed for the day, the All-Share Index (ASI) went up by 72.21 points to 166,129.50 points from 166,057.29 points and the market capitalisation gained N31 billion to N106.354 trillion from N106.323 trillion.
By Adedapo Adesanya
It was a positive ending for the Naira this week after it further appreciated against the US Dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEX) on Friday, January 16 by N1.33 or 0.09 per cent to sell for N1,417.95/$1 compared with the previous day’s N1,419.28/$1.
The domestic currency also gained N2.41 against the Euro in the official market to close at N1,647.51/€1 versus the preceding session’s closing price of N1,649.92/€1, however, it suffered a N7.97 loss against the Pound Sterling in the same market window to trade at N1,901.32/£1, in contrast to Thursday’s closing price of N1,893.35/£1.
In the same vein, the Nigerian Naira depleted against the Dollar at the GTBank FX counter by N2 to quote at N1,427/$1 compared with the previous day’s N1,425/$1, but strengthened against the greenback at the black market yesterday by N5 to settle at N1,485/$1 versus the N1,490/$1 it was exchanged a day earlier.
Improved supply conditions helped keep the market within range as exporters’ and importers’ inflows in addition to non-bank corporate supply enhanced liquidity as the Central Bank of Nigeria (CBN) made no visible intervention.
Stronger external inflows from foreign portfolio investors (FPIs) and improving current account dynamics, continue to align with structural support in the wider economy.
Nigeria has seen projections of a stronger economic or gross domestic product (GDP) growth and lower inflation in 2026, with these forecasts citing improved macroeconomic fundamentals and reform impacts.
As for the cryptocurrency market, it was mixed following selloff in precious metals and lower US stocks appeared to be denting crypto sentiment.
Gold and silver, both of which also enjoyed big rallies earlier this week, tumbled 1.2 per cent and 5 per cent, respectively while key US stock indexes — the Nasdaq, S&P 500 and Dow Jones Industrial Average — all reversed from early gains to modest losses in Friday trade.
Dogecoin (DOGE) shrank by 2.2 per cent to $0.1370, Ripple (XRP) slipped by 0.8 per cent to $2.05, Ethereum (ETH) went down by 0.7 per cent to $3,228.56, and Bitcoin (BTC) slumped by 0.6 per cent to $95,086.80.
Conversely, Litecoin (LTC) appreciated by 3.2 per cent to $74.48, Solana (SOL) rose by 0.4 per cent to $143.70, Cardano (ADA) jumped by 0.2 per cent to $0.3942, and Binance Coin (BNB) increased by 0.1 per cent to $935.88, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) remained unchanged at $1.00 each.
By Adedapo Adesanya
Oil prices settled higher amid lingering worries about a possible US military strike against Iran, a decision that may still occur over the weekend.
Brent crude settled at $64.13 a barrel after going up by 37 cents or 0.58 per cent and the US West Texas Intermediate (WTI) crude finished at $59.44 a barrel after it gained 25 cents or 0.42 per cent.
The US Navy’s aircraft carrier USS Abraham Lincoln was expected to arrive in the Persian Gulf next week after operating in the South China Sea.
Market analysts noted that it doesn’t seem likely anything will happen soon. However, the weekends have become the perfect time for actions so as not offset the markets.
The market had risen after protests flared up in Iran and US President Donald Trump signalled the potential for military strikes, but lost over 4 per cent on Thursday as the American president said Iran’s crackdown on the protesters was easing, allaying concerns of possible military action that could disrupt oil supplies.
Iran produces approximately 3.2 million barrels per day, accounting for roughly 4 per cent of global crude production, so it was not a coincidence that markets rallied sharply through Tuesday and Wednesday as President Trump canceled meetings with Iranian officials and posted that “help is on its way” to Iranian protesters, raising fears of potential US military strikes that sent prices surging toward multi-month highs.
Weighing against those fears are potential supply increases from Venezuela.
The Trump administration is exploring plans to swap heavy Venezuelan crude for US medium sour barrels that can actually go straight into Strategic Petroleum Reserve (SPR) caverns, since not all all oil belongs in the reserve.
According to Reuters, the Department of Energy is considering moving Venezuelan heavy crude into commercial storage at the Louisiana Offshore Oil Port, while US producers deliver medium sour crude into the SPR in exchange.
Analysts expect higher supply this year, potentially creating a ceiling for the geopolitical risk premium on prices.
Some investors covered short positions ahead of the three-day Martin Luther King holiday weekend in the US.
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