Economy

Manufacturers Want FG, States to Urgently Resolve VAT War

Published

3 years ago

09/09/2021

By Adedapo Adesanya

The Manufacturers Association of Nigeria (MAN) has appealed to the federal and state governments to urgently find a mutually acceptable way forward on the collection of taxes on sales and consumption to address anxiety and confusion in the business community.

Mr Segun Ajayi-Kadir, Director-General of MAN, made this plea via a statement issued in Lagos, noting that as leading payers of Value Added Tax (VAT) in Nigeria, having contributed N44.9 billion in the first half of 2021, the manufacturing sector was going to be the hardest hit by the looming impasse.

Mr Ajayi-Kadir said that the business community could not afford the anxiety and confusion currently generated by the VAT war between the central government and the Rivers State government, which is attracting other states to follow suit.

In August, the Rivers State government had obtained a court judgement that said the government had the constitutional right to collect VAT from companies operating in the state because it was under the concurrent list. This inspired the sub-national government to enact a law on this matter.

Other states of the federation, including Lagos, is in the progress of doing the same and the Federal Inland Revenue Service (FIRS) is not happy about this. In fact, it approached a Federal High Court to obtain a stay of execution but its suit was thrown out, forcing it to appeal the earlier judgement.

On Wednesday, the Rivers State government held a stakeholders’ meeting with oil companies operating in the state and the Governor, Mr Nyesom Wike, warned them not to pay the VAT to the federal government. He also warned that if the FIRS continues to harass firms in the state, he would eject the agency.

For the manufacturers’ group, the sector should not be made to suffer while the two tiers of government fight over who should control consumption tax.

The MAN DG stressed that manufacturers should not be put in a situation where they would have to pay both governments the same tax, saying such a move would amount to overkill for the struggling manufacturing sector and a recovering economy.

Mr Ajayi-Kadir said that the recent controversy over the control of the VAT between the federal and state governments in the face of the court judgements and the strong statements emanating from the two tiers of government were unhealthy for business.

“Manufacturers, like many other business operators in Nigeria, are deeply concerned about what becomes of their fate come September 20 when businesses are expected to file VAT claims and beyond.

“The contentions are worrisome and potentially inimical to the smooth operations of our businesses as on the one hand, The Federal Inland Revenue Service (FIRS) is insisting on continuing to collect VAT.

“Rivers State Government is ordering the immediate and complete collection of the same tax while Lagos State is preparing the grounds to go the way of Rivers and who knows, other States may be warming up to join the fray.

“What we expect therefore is for the federal and state governments to stop the grandstanding and find a mutually acceptable way forward,” he said.

Consequent to a court ruling, Governor Nyesom Wike of Rivers States had directed the Rivers State Revenue Service (RSRS) to immediately commence collection of VAT from corporate bodies and businesses in the state, a move that has created friction with the FIRS.

Meanwhile, Lagos State also decided to follow this path as the VAT bill has passed the first and second time in the state House of Assembly with the document referred to the Committee on Finance, which has been asked to submit its report on Thursday (today).

Economy

Afriland Properties, Geo-Fluids Shrink OTC Securities Exchange by 0.06%

Published

25 minutes ago

12/12/2024

Adedapo Adesanya

By Adedapo Adesanya

The duo of Afriland Properties Plc and Geo-Fluids Plc crashed the NASD Over-the-Counter (OTC) Securities Exchange by a marginal 0.06 per cent on Wednesday, December 11 due to profit-taking activities.

The OTC securities exchange experienced a downfall at midweek despite UBN Property Plc posting a price appreciation of 17 Kobo to close at N1.96 per share, in contrast to Tuesday’s closing price of N1.79.

Business Post reports that Afriland Properties Plc slid by N1.14 to finish at N15.80 per unit versus the preceding day’s N16.94 per unit, and Geo-Fluids Plc declined by 1 Kobo to trade at N3.92 per share compared with the N3.93 it ended a day earlier.

At the close of transactions, the market capitalisation of the bourse, which measures the total value of securities on the platform, shrank by N650 million to finish at N1.055 trillion compared with the previous day’s N1.056 trillion and the NASD Unlisted Security Index (NSI) went down by 1.86 points to wrap the session at 3,012.50 points compared with 3,014.36 points recorded in the previous session.

The alternative stock market was busy yesterday as the volume of securities traded by investors soared by 146.9 per cent to 5.9 million units from 2.4 million units, as the value of shares transacted by the market participants jumped by 360.9 per cent to N22.5 million from N4.9 million, and the number of deals increased by 50 per cent to 21 deals from 14 deals.

When the bourse closed for the day, Geo-Fluids Plc remained the most active stock by volume (year-to-date) with 1.7 billion units valued at N3.9 billion, followed by Okitipupa Plc with 752.2 million units worth N7.8 billion, and Afriland Properties Plc 297.5 million units sold for N5.3 million.

Also, Aradel Holdings Plc, which is now listed on the Nigerian Exchange (NGX) Limited after its exit from NASD, remained the most active stock by value (year-to-date) with 108.7 million units sold for N89.2 billion, trailed by Okitipupa Plc with 752.2 million units valued at N7.8 billion, and Afriland Properties Plc with 297.5 million units worth N5.3 billion.

Economy

Naira Weakens to N1,547/$1 at Official Market, N1,670/$1 at Black Market

Published

1 hour ago

12/12/2024

Adedapo Adesanya

By Adedapo Adesanya

The euphoria around the recent appreciation of the Naira eased on Wednesday, December 11 after its value shrank against the US Dollar at the Nigerian Autonomous Foreign Exchange Market (NAFEM) by N5.23 or 0.3 per cent to N1,547.50/$1 from the N1,542.27/$1 it was valued on Tuesday.

It was observed that spectators’ activities may have triggered the weakening of the local currency in the official market at midweek as they tried to fight back and ensure the value of funds in foreign currencies strengthened.

The domestic currency was regaining its footing after the Central Bank of Nigeria (CBN) launched an Electronic Foreign Exchange Matching System (EFEMS) platform to tackle speculation and improve transparency in Nigeria’s FX market.

At midweek, the Nigerian currency depreciated against the Pound Sterling by N3.56 to close at N1,958.68/£1 compared with the preceding day’s N1,955.12/£1 and against the Euro, it slumped by 34 Kobo to trade at N1,612.66/€1, in contrast to the previous session’s N1,613.00/€1.

As for the black market segment, the Naira lost N45 against the American currency during the session to quote at N1,670/$1 compared with the N1,625/$1 it was traded a day earlier.

A look at the cryptocurrency market showed a recovery following profit-taking as the US Consumer Price Index report matched economist forecasts.

The news was enough to convince traders that the Federal Reserve is certain to trim its benchmark fed funds rate another 25 basis points at its meeting next week.

The move also saw Bitcoin (BTC), the most valued coin, return to the $100,000 mark as it added a 2.9 per cent gain and sold for $100,566.12.

The biggest gainer was Cardano (ADA), which jumped by 15.00 per cent to trade at $1.16, as Litecoin (LTC) appreciated by 10.4 per cent to sell for $121.76, and Ethereum (ETH) surged by 7.0 per cent to $3,929.30, while Dogecoin (DOGE) recorded a 6.7 per cent growth to finish at $0.4181.

Further, Binance Coin (BNB) went up by 5.2 per cent to $716.72, Solana (SOL) expanded by 4.6 per cent to $229.77, and Ripple (XRP) increased by 4.2 per cent to $2.43, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) closed flat at $1.00 apiece.

Economy

Dangote Refinery Makes First PMS Exports to Cameroon

Published

2 hours ago

12/12/2024

Aduragbemi Omiyale

By Aduragbemi Omiyale

The Dangote Refinery located in the Lekki area of Lagos State has made its first export of premium motor spirit (PMS) just three months after it commenced the production of petrol.

In September 2024, the refinery produced its first petrol and began loading to the Nigerian National Petroleum Company (NNPC) on September 15.

However, due to some issues, the facility has not been able to flood the local market with its product, forcing it to look elsewhere.

In a landmark move for regional energy integration, Dangote Refinery has partnered with Neptune Oil to take its petrol to neighbouring Cameroon.

Neptune Oil is a leading energy company in Cameroon which provides reliable and sustainable energy solutions.

Dangote Refinery said this development showcases its ability to meet domestic needs and position itself as a key player in the regional energy market, adding that it represents a significant step forward in accessing high-quality and locally sourced petroleum products for Cameroon.

“This first export of PMS to Cameroon is a tangible demonstration of our vision for a united and energy-independent Africa.

“With this development, we are laying the foundation for a future where African resources are refined and exchanged within the continent for the benefit of our people,” the owner of Dangote Refinery, Mr Aliko Dangote, said.

His counterpart at Neptune Oil, Mr Antoine Ndzengue, said, “This partnership with Dangote Refinery marks a turning point for Cameroon.

“By becoming the first importer of petroleum products from this world-class refinery, we are bolstering our country’s energy security and supporting local economic development.

“This initial supply, executed without international intermediaries, reflects our commitment to serving our markets independently and efficiently.”