Economy
NEPZA Opposes Provisions of Customs Service Bill on Free Zones
By Adedapo Adesanya
The Nigeria Export Processing Zones Authority (NEPZA) has opposed some sections of the proposed Customs Service reform bill, citing three reasons why an amendment to give the Nigeria Customs Service (NCS) powers to make regulations in free zones will weaken and subvert the nation’s Special Economic Zones.
In a submission to the ongoing public hearing on the Custom Reform Bill at the House of Representatives, the agency said, “Free Zones are areas designated as such by the President to serve as one-stop-shop investment hub wherein incentives are provided in form of tax holidays, simplified Customs and Immigration processes, amongst others, with a view to attracting investors.
“The One-Stop-Shop concept, in furtherance of which Regulations were made for all the active Free Zones with the involvement of the Nigeria Customs Service and all relevant stakeholders, would be eroded if the provisions of the bill are allowed.”
It argued that “by providing regulations for the free zones, the Nigeria Customs Service would be setting a dangerous precedent, as other agencies would want to do same.”
The Authority in its response also held that the development, if not nipped in the bud, would result in either multiple regulations that might be contradictory, thereby creating avoidable legal tussles or making registration of enterprises unnecessarily cumbersome and unattractive.
It further submitted that: “the proposed sections of the bill which seek to make the Free Zones Customs- Controlled Zones invariably seek to create antithetical Free Zones Customs Territory alien to the global free trade zone model used around the world.”
While listing specific areas of the Bill it finds objectionable, NEPZA stated that it had through the operations of the free zones contributed tremendously to the national economy, noting that the Lekki Free Zone Quadrant that comprised Lekki Free Trade Zone, Lagos Free Zone, Dangote Free Zone Enterprises and the Alaro City Free Zone, as well as the Calabar Free Zone, and the Kano Free Zone were alluring testaments of how it continued to fast track the country’s industrialisation.
“Dangote Free Zone, a national asset is a zone with enormous prospects for the Nigerian economy. With the heightened insecurity in Nigeria amidst the COVID-19 pandemic, the introduction of a new bureaucratic bottleneck such as this proposed legal framework would only scare away investors and retard the free trade zone scheme.
“Bureaucratic bottlenecks have been identified as one of the reasons for Nigeria’s low ranking on the World Trade Organisation’s index of Ease of Doing Business.
“The free zone scheme, therefore, seeks to tackle the problem of corporate investments characterized by bureaucratic challenges, multiple taxation, conflicting regulations,” the agency said.
NEPZA also used the opportunity to allay the fears of the NCS about revenue leakages, adding that it had put in place proper customs procedures and regulations to guide investors operating in the zones in order to avoid or prevent bureaucratic bottlenecks while ensuring that all applicable laws, regulations and guidelines were duly observed.
These safeguards, NEPZA noted, could be ascertained in its enabling Act, as well as the regulations of the respective free zones.
It, therefore, urged the National Assembly to be circumspect by avoiding the temptation of allowing any legal framework that would cripple NEPZA and the free zone scheme.
By Dipo Olowookere
The upward movement witnessed at the Nigerian Exchange (NGX) Limited in the past trading session continued on Wednesday by 1.17 per cent.
The bullish momentum was buoyed by bargain-hunting in mid and large-cap shares on the platform amid renewed confidence in Nigerian equities.
Though the insurance counter closed lower by 0.04 per cent due to profit-taking, the gains by the others ensured that the domestic bourse remained in the green territory.
The industrial goods index appreciated by 2.11 per cent, the consumer goods sector surged by 1.44 per cent, the banking industry increased by 0.49 per cent, and the energy space rose by 0.20 per cent.
Consequently, the All-Share Index (ASI) went up by 1,272.64 points to 107,847.62 points from 106,574.98 points and the market capitalisation gained N794 billion to settle at N67.290 trillion compared with the previous day’s N66.496 trillion.
The volume and value of transactions as well as the number of deals decreased yesterday by 7.52 per cent, 15.25 per cent, and 1.19 per cent, respectively.
This was because investors bought and sold 442.6 million stocks worth N10.0 billion in 15,376 deals at midweek versus the 478.6 million stocks valued at N11.8 billion in 15,561 deals.
Sterling Holdings traded 49.6 million shares for N296.8 million, Ellah Lakes exchanged 34.5 million equities valued at N133.9 million, Zenith Bank transacted 25.6 million stocks worth N1.3 billion, Access Holdings sold 19.6 million shares valued at N553.7 million, and AIICO Insurance traded 18.5 million equities worth N32.2 million.
Business Post reports that Customs Street ended midweek with a positive market breadth index after 51 stocks closed in green and 16 stocks ended in red, indicating a strong investor sentiment.
VFD Group and Ikeja Hotel were the best-performing equities on Wednesday after chalking up 10.00 per cent each to sell for N52.80 and N14.85 apiece, Honeywell Flour gained 9.99 per cent to quote at N12.66, Transcorp Hotels also improved its value by 9.99 per cent to N126.10, and Eterna rose by 9.93 per cent to N48.70.
However, the worst-performing equity for the day was CWG with an 8.95 per cent loss to trade at N8.65, Regency Alliance slumped by 7.89 per cent to 70 Kobo, Lasaco Assurance tumbled by 7.25 per cent to N3.20, Royal Exchange plunged by 7.22 per cent to 90 Kobo, and SCOA Nigeria crashed by 6.54 per cent to N3.43.
By Adedapo Adesanya
The four tax reform bills transmitted to the National Assembly last year by President Bola Tinubu have finally scaled second reading in the House of Representatives.
The bills, which have generated criticisms across the country, scaled the second reading on the floor of the Green Chamber on Wednesday, five months after the President transmitted them to the parliament for consideration following the recommendations of the Presidential Committee on Fiscal Policy and Tax Reforms led by a tax expert, Mr Taiwo Oyedele.
The bills include the Nigeria Tax Bill 2024, the Tax Administration Bill, the Nigeria Revenue Service Establishment Bill, and the Joint Revenue Board Establishment Bill.
They are gearing up for public hearing, which should be announced soon.
The four bills met minimal opposition in the Senate but faced a higher level scrutiny at the 360-member House of Reps as well as criticisms from northern statesmen, including governors and leaders.
During the midweek plenary, Mr Sada Soli feared that some sections of the new bills might contradict the 1999 constitution. According to the lawmaker, the issue of derivation must be clearly defined to avoid any ambiguity.
He was hopeful that the committee saddled with the responsibility to scrutinise the bills would address the issues that might arise before the bills are passed.
Other lawmakers also drew attention to the 40 acts which the bill sought to amend and requested they should be laid before the National Assembly.
The lawmakers said the issue of multiple taxation involving property purchase provided in the bill should be addressed, as the provision stated that the buyer and seller must pay tax.
In response, the Chairman of the tax reforms committee, Mr Oyedele, who has tirelessly defended the bills since they were presented, lauded the efforts of the lawmakers.
“We are grateful to the lawmakers for their robust debates and diligent consideration of the bills and look forward to continued engagement with the National Assembly and active participation in the public hearing process.
“May Nigeria win!,” he wrote.
By Adedapo Adesanya
The NASD Over-the-Counter (OTC) Securities Exchange fell by 0.49 per cent on Tuesday, February 11 as investors recalibrated their portfolios, selling off some securities they fell have yielded returns since they were acquired from the market.
This action by the market participants depleted the value of the trading platform by N8.86 billion during the trading session to N1.803 trillion from the N1.812 trillion it closed in the preceding session and the NASD Unlisted Security Index (NSI) went down by 15.65 points to settle at 3,184.02 points compared with 3,199.67 points recorded at the previous session.
UBN Property Plc declined by 17 Kobo to end at N2.05 per share compared with Monday’s closing price of N2.22 per share, Geo Fluids Plc decreased by 30 Kobo to N4.24 per unit from N4.54 per unit, Central Securities Clearing System (CSCS) Plc lost N1.50 to settle at N23.00 per share versus N24,50 per share, and FrieslandCampina Wamco Nigeria Plc crumbled by 12 Kobo to close at N39.98 per unit, in contrast to the preceding session’s N40.10 per unit.
Conversely, Air Liquide Plc appreciated by 41 Kobo to N8.33 per share from N7.92 per share and Afriland Properties Plc increased by 75 Kobo to sell for N18.65 per unit versus N17.90 per unit.
During the trading session, there was a 270.2 per cent rise in the volume of securities traded by investors to 1.9 million units from 502,112 units, the value of securities transacted grew by 223.4 per cent to N48.2 million from N14.9 million, and the number of deals went up by 63.2 per cent to 31 deals from 19 deals.
Impresit Bakolori Plc finished the day as the most active stock by value (year-to-date) with 519.5 million units worth N504.3 million, trailed by FrieslandCampina Wamco Nigeria Plc with 7.4 million units valued at N293.2 million, and Geo-Fluids Plc with 9.3 million units sold for N44.8 million.
Similarly, Impresit Bakolori Plc ended the session as the most active stock by volume (year-to-date) with 519.5 million units worth N504.3 million, followed by Industrial and General Insurance (IGI) Plc with 69.6 million units sold for N23.6 million, and Geo-Fluids Plc with 10.7 million units valued at N51.2 million.
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