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 Adedapo Adesanya
Four securities weakened the NASD Over-the-Counter (OTC) Securities Exchange by 1.95 per cent on Friday, erasing N41.17 billion from the bourse, which had its market capitalisation at N2.567 trillion compared with the previous session’s N2.618 trillion.
In the same vein, the NASD Unlisted Security Index (NSI) decreased at the close of business by 85.28 points to 4,277.07 points from 4,362.32 points.
The price decliners were led by 11 Plc, which gave up N20.50 to sell at N200.50 per share compared with the preceding day’s N221.00 per share, FrieslandCampina Wamco Nigeria Plc dropped N16.94 to close at N155.20 per unit versus Thursday’s closing price of N172.14 per unit, Central Securities Clearing System (CSCS) Plc went down by N2.11 to N84.68 per share from N86.79 per share, and Afriland Properties Plc lost 11 Kobo to end at N16.74 per unit, in contrast to the N16.85 per unit it closed a day earlier.
During the trading day, the value of transactions jumped by 172.1 per cent to N29.9 million from the preceding session’s N10.9 million, and the volume of trades soared by 136.5 per cent to 955,096 units from the previous 403,901 units, while the number of deals went down by 11.4 per cent to 31 deals from 35 deals.
Great Nigeria Insurance (GNI) Plc remained the most active stock by value 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 worth N6.5 billion, and CSCS Plc with 68.6 million units sold for N4.7 billion.
GNI Plc also ended the session as the most traded stock by volume on a year-to-date basis, with 3.4 billion units exchanged for N8.4 billion, trailed by Infracredit Plc with 2.3 billion units traded for N6.5 billion, and Resourcery Plc with 1.1 billion units transacted for N415.7 million.
By Dipo Olowookere
The last trading session of this week on the floor of the Nigerian Exchange (NGX) Limited ended on a negative note, with a 0.66 per cent loss on Friday.
This was influenced by sustained selling pressure and cautious trading, which forced investors into profit-taking.
Data obtained by Business Post showed that the energy sector fell by 4.66 per cent, the insurance counter dipped by 2.23 per cent, the consumer goods index depreciated by 0.96 per cent, and the banking segment shed 0.28 per cent, while the industrial goods space remained unchanged.
At the close of business, the All-Share Index (ASI) of Nigeria’s stock exchange went down by 1,531.81 points to 232,049.02 points from 233,580.83 points, and the market capitalisation dropped N983 billion to settle at N148.905 trillion compared with Thursday’s N149.888 trillion.
Aradel was the worst-performing equity after it lost 10.00 per cent to close at N1,417.50. International Energy Insurance slipped by 9.95 per cent to N5.79, Trans-Nationwide Express depreciated by 9.89 per cent to N3.28, eTranzact crashed by 9.79 per cent to N14.75, and UPDC slumped by 9.72 per cent to N28.12.
The best-performing equity for the day was Universal Insurance, which gained 6.32 per cent to close at N1.01, McNichols grew by 5.52 per cent to N8.60, Linkage Assurance expanded by 4.67 per cent to N1.57, NGX Group appreciated by 4.35 per cent to N120.00, and Transcorp increased by 3.62 per cent to N41.50.
As look at the activity level indicated that investors traded 388.7 million stocks worth N18.4 billion in 44,631 deals compared with the 393.7 million stocks valued at N19.2 billion executed in 45,813 deals a day earlier, representing a decline in the trading volume, value, and number of deals by 1.27 per cent, 4.17 per cent, and 2.58 per cent, respectively.
By Adedapo Adesanya
The Naira recorded a loss of 82 Kobo or 0.06 per cent against the United States Dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEX) on Friday, June 26, exchanging at N1,380.93/$1, in contrast to the previous day’s rate of N1,380.11/$1.
Equally, the domestic currency further weakened against the Pound Sterling in the official FX market yesterday by N6.06 to settle at N1,824.90/£1 versus the preceding session’s N1,818.84/£1, and lost N10.74 on the Euro to sell at N1,577 .58/€1 versus N1,566.84/€1.
At the GTBank forex counter, the Naira depreciated against the greenback during the session by N4 to close at N1,387/$1, in contrast to Thursday’s value of N1,383/$1, and at the parallel market, it was unchanged at N1,395/$1.
Interbank FX activity among financial institutions has fluctuated amid a sharp slowdown in forex market interventions by the Central Bank of Nigeria (CBN), as it allows demand and supply to move the market.
Also, a stronger greenback has generally put significant pressure on emerging-market currencies.
Nigeria has accessed the first tranche of a proposed $5 billion derivatives financing arrangement with First Abu Dhabi Bank PJSC, the largest lender in the United Arab Emirates (UAE).
The $5 billion facility, approved by the National Assembly earlier this year, is part of the federal government’s plan to diversify external financing sources and reduce borrowing costs. Structured as a Total Return Swap with First Abu Dhabi Bank, proceeds are earmarked for refinancing debt and supporting infrastructure financing.
If the proceeds are brought into the country through the official FX market, the transaction will increase the currency reserves or Dollar liquidity.
At the cryptocurrency market, Solana (SOL) grew by 2.2 per cent to $71.92, Cardano (ADA) gained 1.1 per cent to trade at $0.1474, Ripple (XRP) also appreciated by 1.1 per cent to $1.05, Dogecoin (DOGE) expanded by 0.9 per cent to $0.0755, and Ethereum (ETH) improved by 0.4 per cent to $1,578.84.
On the flip side, TRON (TRX) slid 0.6 per cent to $0.3203, Binance Coin (BNB) slumped by 0.3 per cent to $564.33, and Bitcoin fell by 0.2 per cent to $60,219.37, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) traded flat at $1.00 each.
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