Economy
Multiple Taxation Hinders Business Growth—Elumelu
By Dipo Olowookere
Chairman of Heirs Holdings, Mr Tony Elumelu, has appealed to government to urgently address the issue of multiple taxation in the country, pointing out that the problem has continued to hinder the growth of businesses in Nigeria.
Speaking on Thursday at the Lagos Business School Alumni Association 2017 Conference, the former Group Managing Director of United Bank for Africa (UBA) Plc also noted that the restructuring of government regulations and taxation will go a long way in providing friendly environment to the business community as well as increase the revenue of government.
Mr Elumelu, who was guest speaker at the occasion, spoke on the conference theme ‘The Effects of Multiple Government Regulations and Taxation on Business Growth in Nigeria.’
During his address, the Chairman of UBA Plc emphasized the need for government to embark on radical approach that would shape behaviours of entrepreneurs and business owners towards payment of taxes in a more obligatory manner.
According to Mr Elumelu, who also is the Chairman of Transcorp Plc, submitted that, “Multiple regulations hinder business growth; and we need to regulate our tax laws and practices in a manner that would create enabling environments for businesses, particularly start-ups and SMEs to thrive in the economy.
“If taxes are well regulated for businesses, there would be increase in government revenue, more businesses would grow, thereby helping to curb unemployment and improving the economy significantly.”
The business mogul stressed the need for a comprehensive reorientation exercise across all tax agencies that would ensure that officers have the right values required for the job and that due process is followed at all times in government regulations for businesses.
“We should use tax as a dynamic fiscal tool to shape corporate behaviour and ensure that our business climate is conducive for investors to thrive for a more robust economy that will in turn increase the tax base,” he said.
Mr Elumelu thanked the LBS for addressing real challenges that business communities face exemplified by choosing the topic of discourse, which is very vital to Nigeria’s economic growth.
He also applauded the institution’s faculty for helping to sharpen the competitiveness of professionals by bridging the gap in knowledge acquisition.
In his presentation of the Economic Outlook for 2018, Dr Biodun Adedipe, Founder/Chief Consultant of B. Adedipe Associates, advised Nigeria to deviate from operating a mono-cultural economy which has proved detrimental to its growth.
“While thinking of ways to grow our economy to a sustainable level, we must realise that mono-cultural economy has not helped our cause. Over dependence on hydro-carbon and imports have done more harm than good.
“Therefore, I strongly advocate import substitution because no country grows sustainably by importation alone. We must produce and grow locally to be self-sufficient, and we must create environments for small businesses to grow to attain that level,” he said.
On his part, Chairman of Lagos State Internal Revenue Service (LIRS), Mr Hamzat Ayodele Subair, who was represented by Tokunbo Akande, revealed that before now, the lack of viable data on financial record had hampered the process of effective tax systems in the state, and the rest of Nigeria.
He however assured that the Lagos State government, through the LIRS, is working hard to harmonise its tax practices by creating a single billing system where each tax payer would have a complete list of his or her tax schedule to avoid multiplicity of tax systems and agents.
Head of Tax and Corporate Advisory Services at PwC Nigeria, Mr Taiwo Oyedele, examined tax administration and taxation of businesses during the panel discussion, and revealed that the multiple arms of government had led to multiplicity of agencies which had replicated themselves in the nation’s tax systems.
“The solution we need is to have sound institutions, put our best foot forward and coordination among all levels of government operations,” he said.
LBS Faculty and Professor of Legal, Social and Political Environment of Business, Prof. Olawale Ajai, who was the Conference Chairman, stated that business growth should generate economic growth for the nation, which is why citizens should encourage the growth of small scale businesses.
According to him, “it is on policy makers to facilitate regulatory frameworks that would enable economic growth in Nigeria.”
“A reorientation of policy makers and tax administrators is critical to the nation’s economic success and we must collaborate and partner to bring about an enabling environment for local businesses,” he added.
On her part, President of Lagos Business School Alumni Association and MD/CEO Standard Chartered Bank Nigeria, Mrs Bola Adesola, expressed that the objectives of the association was to promote continuous education for members, support LBS in its aims and objectives, render service to society especially in the area of public and private management.
She also welcomed the latest additions to the Alumni Association and urged them to continue taking the opportunities afforded to them and be ambassadors of the great institutions.
Dean of Lagos Business School, Dr Enase Okonedo, thanked Mr Elumelu and the other speakers for the insight and knowledge shared.
She also expressed gratitude to the Alumni for their contributions to the school and society. She disclosed that Alumni had continuously contributed to education; renovated and built schools, and have been commended by government at all levels for their efforts.
She applauded their efforts at adding value to the society and encouraged them to be the change they want to see in society.
The 2017 Lagos Business School Alumni Association was hosted by Chief Executive Programme (CEP 24) and International Management Programme (IMP02) Classes.
Nonso Ezeh, CEP 24 Class President, and Oba Segun Aderemi, IMP02 Class President, thanked all the alumni present and extended their greetings to the institution for impacting positively on the society.
By Aduragbemi Omiyale
The Stanbic IBTC Bank Nigeria Purchasing Managers’ Index (PMI) for the Nigerian private sector in July 2026 contracted to 52.5 points from 53.4 points in June 2026, a statement made available to Business Post has shown.
This occurred despite the business environment sustaining its growth last month, with an increase in new orders experienced, as inflationary pressures softened, and output and employment modestly rising.
The Head of Equity Research West Africa at Stanbic IBTC Bank, Mr Muyiwa Oni, said the PMI indicated that the private sector recorded its slowest since March 2026, as businesses also increased their input purchasing activity to keep up with current demand requirements and prepare for future workloads.
“Nigerian businesses reported improved customer demand in July while better pricing and new product launches also helped them to capture new orders arising from the increase in demand. These factors helped to keep the private sector activity in an expansionary territory, although this moderated when compared to June,” he was quoted as saying.
It was stated that while input costs increased at their slowest pace in five months, panellists reported higher costs for fuel and raw materials. Selling prices also softened in line with the picture for input costs in July.
Headline inflation eased slightly to 15.91 per cent y/y in June from 15.93 per cent y/y in May, snapping three consecutive months of price increases.
Although July inflation is likely to be higher m/m, it is expected to print lower, likely at 15.72 per cent y/y, primarily driven by favourable base effects from the corresponding period of last year, because there are no expectations of the magnitude of m/m inflation witnessed in July 2025 (1.99 per cent) to materialise this year.
“We retain our 2026 growth forecasts at 4.1 per cent as we see the oil sector growing by 3.45 per cent y/y in 2026, from 8.50 per cent y/y in 2025, while the non-oil sector is likely to grow by 4.11 per cent y/y, from 3.71 per cent y/y in 2025.
“The risks to our outlook include country-wide insecurity which may constrain food production, exchange rate pressures resurfacing, extreme-weather related conditions and higher fertiliser prices impacting crop yield, and a volatile global environment which may affect sentiment and constrain capital flows,” Mr Oni noted.
By Adedapo Adesanya
Sahara Upstream, a Nigeria-focused crude producer, has deployed a new 380,000-barrel tanker to boost exports from the OML 18 block as part of a wider push by domestic operators to invest in infrastructure and lift output and exports for Africa’s biggest oil producer.
The MT D Adesanya, which can hold more than 62,000 cubic metres of crude, will operate alongside the MT D Bayero, receiving crude from shuttle vessels at Bonny Anchorage, one of Nigeria’s main crude export hubs, before transferring it to the FSO Cawthorne storage facility.
Sahara said the tanker would help cut turnaround times, currently about 30 to 48 hours, and support a planned 50 per cent increase in exports from the block’s current level of about 950,000 barrels per month.
The block currently produces about 36,000 barrels per day, according to data from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), with Sahara targeting output of 60,000 barrels per day.
OML 18 is one of the Niger Delta’s oldest producing assets. It began production in 1970 and contains an estimated 1.5 billion barrels of oil equivalent in reserves.
Shell, Total and Eni sold their combined interests to Eroton in 2015 as part of a broader shift toward domestic ownership in Nigeria’s upstream sector.
This development comes as Sahara Upstream is deepening its exploration and production footprint through Asharami Energy Limited (AEL), its upstream E&P business, which says it is targeting 350,000 barrels of oil per day by 2030 through its subsidiary, Enageed Resources Limited (ERL).
The growth target comes as AEL also marks a major safety milestone, achieving 6 million Lost Time Injury (LTI)-free man-hours in its OML-148 operations — reinforcing the company’s commitment to operational excellence and safety leadership.
According to Asharami Energy, the milestone reflects its ability to execute complex operations safely, in line with Sahara’s Beyond XXX vision, which builds on the group’s 30-year legacy of responsible enterprise while marking its next chapter of impact, innovation, and sustainable growth.
The developments position Sahara Upstream and its subsidiaries among the domestic operators driving increased investment in Nigeria’s oil and gas infrastructure, as the group works to scale up production and exports for Africa’s biggest oil producer.
By Aduragbemi Omiyale
One of the leading energy firms in Nigeria, Aradel Holdings Plc, has expressed its desire to optimise its enlarged portfolio and improve operational efficiency in the second half of 2026.
The company is planning to build on the success it recorded in the first half of the year, where it grew its revenue by 577 per cent to N2.5 trillion from N368.1 billion in H1 2025.
The significant rise in earnings was driven by higher production volumes together with stronger realised crude oil and gas prices, with the average at $90.4/bbl and $2.08/mmscf, respectively.
In the period under review, the Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) increased by 688 per cent to N1.4 trillion from N176.4 billion in the corresponding period of last year, while the operating profit surged by 789 per cent to N1.1 trillion from N118.6 billion due to higher revenue and crude handling income at N149.8 billion, partly offset by underlift cost and general and administrative costs.
The net cash generated from operations was N975.6 billion between January and June 2026 versus N140.8 billion in the same period of 2025, reflecting the cash generation of the enlarged organisation.
The net debt contracted by 70 per cent on a year-to-date basis to N46.5 billion from N475.1 billion as of December 31, 2025.
Aradel, in the period under consideration, improved its post-tax profit by 30 per cent to N191.0 billion from N146.4 billion, a development that impressed its chief executive, Mr Adegbite Falade, who said, “A firmer price environment supported performance, generating net cash from operating activities of N975.6 billion and a closing cash balance of N1.7 trillion.”
“Our enlarged portfolio provides more opportunities to generate stronger cash flow and returns for shareholders and unlocking that potential is our main focus.
“We reaffirm our full year production guidance of 110 – 140 kboepd and remain committed to operating responsibly in a changing energy landscape and to delivering lasting value for our stakeholders,” he stated.
