Economy

The Value of a Savings Culture

Published

4 years ago

01/12/2021

By FBNQuest

If you are just starting your career, then you must be excited to be earning money. You probably feel liberated by your ability to make choices like going on a vacation, buying a car, or renting a flat in the part of town you prefer to live. Earning a living certainly has its perks.

It is not unusual for young people to indulge themselves when they begin to earn money. However, it is also important to consider the power the income from a job or business provides; an opportunity to create your financial future.

The choices you make early in your career about your money may determine your options in the future. Retirement may seem so far off that you see no reason to pay attention to it now. What you do not realise is that building a sizable nest egg becomes more difficult later in your career. Likewise, acquiring a house or having a family is often easier if you are proactive in gathering resources to achieve your goal.

A savings culture or investing is a sure way to build momentum towards achieving your short and long-term financial obligations. The funds that you save for short-term goals should be kept in cash and cash equivalents because your objective should be to preserve their value in a liquid asset. The resources that you save towards your long-term goals should be invested in assets that may be less liquid but offer higher returns.

The types of assets you invest in your savings will significantly impact your return and consequently, the amount available to finance your plans for a family or other financial goals. A major reason for this is the concept of compound interest. This is the process by which a sum of money grows exponentially due to interest building upon itself over time.

The key is to start saving and investing as early in your career as possible. The sooner you start putting money away, the sooner it begins to earn interest. If invested properly, the money can grow substantially over time. But putting off investments could mean you miss an opportunity to grow your wealth easily and automatically.

Having a plan helps you to build the discipline that is required to invest successfully. You are more responsible for your financial success when a plan is executed in a systematic way. This should also give you the confidence that while you are building a career, you are also making steady progress towards your financial goal.

It is advised that you make wise investments decisions. Explore options that allow you to automate your savings and investment in the form of automatic withdrawals from your bank account. After making this arrangement, stay the course. Consider that by starting early, you are positioned to benefit from the well-established trend that investments in riskier assets such as stocks potentially outperform less risky short-term assets such as cash equivalents over time. Especially when diversification is appropriately adopted in investing.

All this is easier said than done. A savings and investment plan is more than just a list of goals and deadlines. Practically, it can be more complicated than that, as you consider the fine details and peculiarities of your status and responsibilities. To help you achieve the outcomes you want, relationship managers at FBNQuest are available to work with you to craft a plan that offers a range of products that suit your specific investment and financial goals. We look forward to helping you achieve your financial goals. Contact us today and stay ahead of the curve to indulge yourself early in your career at the expense of a great financial future.

Economy

NIN to Serve as Tax ID for Nigerians—FIRS

Published

3 minutes ago

23/12/2025

Adedapo Adesanya

By Adedapo Adesanya

The Federal Inland Revenue Service (FIRS) has declared that the National Identification Number (NIN) issued by the National Identity Management Commission (NIMC) has now automatically become a Tax ID for Nigerians.

The service announced this in a public awareness campaign on the new tax laws posted on X, formerly known as Twitter, on Monday.

The new tax laws go into effect in two weeks and to ease administration and collection of taxes, NIN, which was introduced as a way of identity, will now serve as Tax ID. This declaration comes amidst concerns over a provision of the tax laws mandating Tax ID for bank account ownership.

With this development, all Nigerians with NIN now automatically have a Tax ID and can be easily brought into the tax net, provided they receive taxable income. The new tax law has set N800,000 per annum earning as the cut-off annual income threshold which the Nigerian state will charge no personal income tax.

For registered businesses, the FIRS said their RC number issued by the Corporate Affairs Commission (CAC) automatically becomes their tax ID under the new tax system.

According to the FIRS, the Nigeria Tax Administration Act (NTAA) billed to come into force from January 2026, mandates the use of Tax ID for certain transactions.

It, however, noted that this requirement is not new, adding that it has existed since the Finance Act 2019 and has been strengthened under the NTAA.

“The Tax ID unifies all TINS previously issued by FIRS and states IRS into a single identifier.

“For individuals, your NIN automatically serves as your Tax ID, while for registered companies, your CAC RC number is used.

“You do not need a physical card, the Tax ID is a unique number linked directly into your identity,” the FIRS stated.

The FIRS added that the new tax ID systems simplify identification, reduce duplication, closes loophole for tax evasion and ensure fairness so that everyone who earns taxable income contributes their share.

Economy

Seplat Completes Conversion of Onshore Assets to PIA Fiscal Regime

Published

4 hours ago

23/12/2025

Adedapo Adesanya

By Adedapo Adesanya

Seplat Energy Plc has completed the conversion of its operated onshore oil and gas assets to the fiscal regime of Nigeria’s Petroleum Industry Act (PIA), marking a major regulatory milestone for the company.

In a statement issued on Tuesday, the dual-listed Nigerian energy firm said its subsidiaries, Seplat West Limited and Seplat East Onshore Limited, finalised the conversion from the former Petroleum Profits Tax framework to the PIA regime following the fulfilment of all technical and regulatory requirements.

The PIA, signed into law in August 2021, was introduced to modernise governance, improve transparency, attract investment, and make Nigeria’s petroleum fiscal framework more competitive globally.

The conversion covers assets previously held under Oil Mining Leases (OMLs) 4, 38, 41 and 53. During the first nine months of 2025, these assets recorded an average working interest production of 42,591 barrels of oil equivalent per day, accounting for approximately 31 per cent of Seplat’s total output.

According to the company listed on both the Nigerian Exchange Limited and the London Stock Exchange, the PIA framework is expected to support increased investment, production growth and improved operational efficiency. The anticipated impact of the conversion had already been factored into Seplat’s medium-term guidance presented at its Capital Markets Day in September 2025.

Seplat noted that it executed Conversion Contracts with its joint venture partners in February 2023 and has since worked closely with the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) to complete the process. New Petroleum Mining Lease (PML) and Petroleum Prospecting Licence (PPL) numbers have now been issued, with PIA-based operations expected to commence from January 1, 2026, subject to regulatory guidance.

Commenting on the development, Chief Executive Officer Roger Brown said the successful conversion reflects the company’s commitment to regulatory compliance and value creation.

“Conversion to the PIA fiscal regime has been an important focus for Seplat, and we are delighted to have delivered, alongside our respective joint venture partners, the conversion of our onshore operated assets within the timeline outlined at our recent Capital Markets Day,” Mr Brown said.

He added that the transition positions the company for improved profitability and stronger cash flow margins in its onshore business.

Seplat also disclosed that it is continuing efforts to convert its offshore assets to the PIA regime, with a target completion date of 2027.

Economy

NASD Index Rises 0.16% on Renewed Investors’ Appetite

Published

7 hours ago

23/12/2025

Adedapo Adesanya

By Adedapo Adesanya

The NASD Over-the-Counter (OTC) Securities Exchange rose by 0.16 per cent on Monday, December 22 as investors showed hunger for unlisted stocks.

Trading data showed that the volume of securities traded at the session surged by 532.9 per cent to 12.6 million units from the previous 1.9 million units, as the value of transactions jumped by 64.3 per cent to N713.6 million from N80.3 million, though the number of deals moderated by 13.5 per cent to 32 deals from the 37 deals recorded in the previous trading session.

Infrastructure Credit Guarantee Company (InfraCredit) Plc ended the day as the most traded stock by value on a year-to-date basis with 5.8 billion units sold for N16.4 billion, followed by Okitipupa Plc with 178.9 million units worth N9.5 billion, and MRS Oil Plc with 36.1 million units transacted for N4.9 billion.

InfraCredit Plc also finished the trading day as the most traded stock by volume on a year-to-date basis with 5.8 billion units traded for N16.4 billion, trailed by Industrial and General Insurance (IGI) Plc with the sale of 1.2 billion units for N420.7 million, and Impresit Bakolori Plc with a turnover of 537.0 million units valued at N524.9 million.

The unlisted securities market printed a price loser, FrieslandCampina Wamco Nigeria Plc, which dropped 20 Kobo to sell at N53.80 per share versus last Friday’s closing price of N54.00 per share.

However, the loss was offset by the trio of NASD Plc, Golden Capital Plc, and UBN Property Plc.

NASD Plc gained N5.00 to close at N60.00 per unit versus N55.00 per unit, Golden Capital Plc appreciated by 77 Kobo to N8.45 per share from N7.68 per share, and UBN Property Plc improved by 22 Kobo to N2.43 per unit from N2.21 per unit.

As a result, the market capitalisation increased by N3.38 billion to N2.125 billion from N2.121 trillion, and the NASD Unlisted Security Index (NSI) grew by 5.65 per cent to 3,552.06 points from 3,546.41 points.