₦airaland Forum

Treasury Bills Yields Rise Ahead of Wednesday's Primary Auction
https://businesspost.ng/economy/treasury-bills-yields-rise-ahead-of-wednesdays-primary-auction/

By Adedapo Adesanya

The Naira depreciated further at the Investors and Exporters segment of the foreign exchange market on Tuesday, October 15, 2019 as the federal government announced the complete closure of land borders with neighbouring countries.

At a briefing on Monday, Nigeria’s head of customs said government has placed a total ban on the importation and exportation of goods through the land borders. This decision has generated mixed reactions in the country.

However, despite the closure of its land borders, importation and exportation of goods can be still be carried out using alternative routes available such as the sea and the airways.

At the forex market on Tuesday, the local currency suffered another depreciation for the second consecutive trading day of the week as it went down by 10 Kobo or 0.03 percent against the US Dollar to trade at N362.63 from N362.53 which it traded on Monday.

According to data obtained by Business Post from FMDQ, the trading platform where trades at the I&E window are tracked, the turnover at the investors’ segment significantly rose yesterday by 254 percent or $55.67 million to $77. 57 million from $21.90 million on Monday.

However, at the Interbank segment of the market, the Naira/USD exchange rate saw neither growth nor decline as it remained flat on Tuesday at N306.95/$1.

Also, at the parallel market, the performance of the Naira when compared with the major listed currencies remained unchanged against the American and British currencies, but fortified against the Euro.

The Naira closed flat against the Dollar at N360/$1 on Tuesday and remained unchanged against the Sterling at the black market at N450/£1 despite the fact that the Pound has jumped to its highest level in five months on reports the two sides in the Brexit talks are inching towards a draft deal at the end of the month.

However, the Naira gained N3 against the Euro to close at N392/€1 in contrast to N395/€1 it traded on Monday.

https://businesspost.ng/economy/naira-further-depreciates-tuesday-after-total-border-closure/

By Adedapo Adesanya

Total Currency-in-Circulation (CIC) rose by 0.8 percent to N2.3 trillion as at the end of December 2018 according to the 2018 Annual Report released by the Central Bank of Nigeria (CBN) through the Currency Operations Department (COD).

This rise in circulation according to the report reflected the high dominance of cash in the economy and increase in economic activities.

In terms of volume, the proportion of higher denomination banknotes – N100, N200, N500 and N1000 in total rose from 41.9 percent to 44.3 percent while in terms of value, it rose from 96.9 percent to 97.6 percent.

On the other hand, the lower denomination currency notes – N5, N10, N20 and N50 continued to be dominant in terms of volume compared to higher notes as it constituted 55.7 percent of the total, while in value terms, it constituted only 2.4 percent of the total banknotes.

The ratio of CIC to nominal GDP, which measures the moneyness of the economy recorded slight falls by 0.1 percentage point to 1.8 percent in the period under review and according to the report, this decline occurred as a result of increase in e-payment products such as electronic payment cards.

The report also indicated that the COD during the period under review recorded significant progress in the accomplishment of its strategic objectives, which included: development of a Clean Notes Policy and Banknote Fitness Guidelines; the tiered pricing for the processing of lower denomination banknotes, increased volume of issuable banknotes and effective distribution of banknotes.

It also registered more Cash-In-Transit (CIT) and Cash Processing Companies (CPC), which encouraged private sector participation; commissioning of the temporary exhibition “Naira Our National Pride” for public enlightenment on banknote basic security features.

Other noteworthy achievements made in 2018 include the development of the Cash Activity Reporting Portal (CARP) for transmission of financial industry currency management data to Nigeria Inter-Bank Settlement System (NIBSS); approval granted by management for the establishment of mobile courts, in collaboration with Legal Services Department (LSD), for the speedy prosecution of suspects apprehended for currency-related offences; and a pilot run on recycling of banknotes waste into re-usable materials to reduce its carbon footprints and comply with environmental sustainability practices.

https://businesspost.ng/economy/over-n2-trillion-cash-in-circulation-cbn/

Dangote Flour May be Delisted on NSE as Shareholders Okay Sale
https://businesspost.ng/economy/dangote-flour-may-be-delisted-on-nse-as-shareholders-okay-sale/

Seplat Acquires Eland for £382m to Buoy Profit, Value for Shareholders
https://businesspost.ng/economy/seplat-acquires-eland-for-382m-to-buoy-profit-value-for-shareholders/

NSE Rules on Online Trading Portal Takes Effect October 21
https://businesspost.ng/economy/nse-rules-on-online-trading-portal-takes-effect-october-21/

Nigeria Considers 30-Year Economic Growth Plan
https://businesspost.ng/economy/nigeria-considers-30-year-economic-growth-plan/

IMF Cuts Global Growth Forecasts by 3%
https://businesspost.ng/economy/imf-cuts-global-growth-forecasts-by-3/

Over N2 Trillion Cash in Circulation—CBN
https://businesspost.ng/economy/over-n2-trillion-cash-in-circulation-cbn/

Nigeria's September Inflation Jumps to 11.24% as Food Prices Rise
https://businesspost.ng/economy/nigerias-september-inflation-jumps-to-11-24-as-food-prices-rise/

FG Fully Hands Over Transcorp Hotels to Elumelu
https://businesspost.ng/travel/fg-fully-hands-over-transcorp-hotels-to-elumelu/

Access Bank's PayDay Loan Records Over N1bn Daily Lending
https://businesspost.ng/banking/access-banks-payday-loan-records-over-n1bn-daily-lending/

Nigerian Stocks Rebound After 0.09% Growth on Monday
https://businesspost.ng/economy/nigerian-stocks-rebound-after-0-09-growth-on-monday/

Naira Falls as I&E Records $21.9m Transactions Monday
https://businesspost.ng/economy/naira-falls-as-ie-records-21-9m-transactions-monday/

Oil Drops 2% After First Phase of US-China Trade Deal
https://businesspost.ng/economy/oil-drops-2-after-first-phase-of-us-china-trade-deal/

NASD securities Exchange Closes Flat on Monday
https://businesspost.ng/economy/nasd-securities-exchange-closes-flat-on-monday/

T-Bills Yields Drop 0.06% Amidst Monday's Funding Pressures
https://businesspost.ng/economy/t-bills-yields-drop-0-06-amidst-mondays-funding-pressures/

By Adedapo Adesanya

The headline inflation rate in Nigeria increased to 11.24 percent (year-on-year) in September 2019 from the 11.02 percent it recorded in August 2019, data from the National Bureau of Statistics (NBS) revealed on Tuesday.

Business Post reports that the inflation jumped by this higher margin as the effect of the border closure by federal government as well as stringent economic policies continue to bite hard on the nation, causing prices of goods and food items to rise at the market.

According to the stats office, the consumer price index (CPI), which measures inflation, rose in the period under review by 0.22 percent when compared with the previous month.

The border closure, which did not reflect much in the August figures because it was only captured for 11 days during the 31 days reference period, heavily impacted on the September figures.

In the report released this morning, the bureau noted that increases were recorded in all Classification of Individual Consumption According to Purpose (COICOP) divisions that yielded the headline index.

On month-on-month basis, the headline index increased by 1.04 percent in September 2019, which is 0.05 points higher than the rate recorded in August 2019 at 0.99 percent.

The data showed that the percentage change in the average composite CPI for the twelve months period ending September 2019 over the average of the CPI for the previous twelve months period was 11.268 percent, showing 0.003 percent point from 11.271 percent recorded in August 2019.

Increases also reflected in both urban and rural inflation as urban inflation rate increased by 11.78 percent (year-on-year) in September 2019 from 11.48 percent recorded in August 2019, while the rural inflation rate increased by 10.77 percent in September 2019 from 10.61 percent in August 2019.

On a month-on-month basis, urban index rose by 1.13 percent in September 2019, indicating a 0.09 rise compared to 1.04 percent recorded in August 2019, while the rural index also rose by 0.96 percent in September 2019, up by 0.03 from the 0.93 percent recorded in August 2019.

The corresponding twelve-month year-on-year average percentage change for the urban index is 11.63 percent in September 2019 which is higher than 11.62 percent reported in August 2019, while the corresponding rural inflation rate in September 2019 is 10.94 percent compared to 10.95 percent recorded in the previous month.

The data indicated that price of food such as bread and cereals, oils and fats, meat, potatoes, yam and other tubers, fish and vegetables all recorded increases in prices.

According to the NBS, the composite food index rose by 13.51 percent in September 2019 from 13.17 percent in August 2019.

It was stated that this rise in the food index was caused by increases in prices of Bread and cereals, Oils and fats, Meat, Potatoes, Yam and other tubers, Fish and Vegetables.

On month-on-month basis, the food sub-index increased by 1.30 percent in September 2019, up by 0.08 percent points from 1.22 percent recorded in August 2019.

The average annual rate of change of the Food sub-index for the twelve-month period ending September 2019 over the previous twelve-month average was 13.47 percent, 0.01 percent points from the average annual rate of change recorded in August 2019 (13.46) percent.

https://businesspost.ng/economy/nigerias-september-inflation-jumps-to-11-24-as-food-prices-rise/

T-Bills Yields Drop 0.06% Amidst Monday's Funding Pressures
https://businesspost.ng/economy/t-bills-yields-drop-0-06-amidst-mondays-funding-pressures/

Analysts Foresee Slight Decline in T-Bills Stop Rates
https://businesspost.ng/economy/analysts-foresee-slight-decline-in-t-bills-stop-rates/

International Breweries Holds EGM to Approve N165bn Rights Issue
https://businesspost.ng/economy/international-breweries-holds-egm-to-approve-n165bn-rights-issue-others/

Royal Exchange Eyes 60% Contribution of Retain Market to Revenue
https://businesspost.ng/economy/royal-exchange-eyes-60-contribution-of-retain-market-to-revenue/

Analysts Foresee Slight Decline in T-Bills Stop Rates
https://businesspost.ng/economy/analysts-foresee-slight-decline-in-t-bills-stop-rates/

Shares of These Firms Have Remained Suspended Since 2017
https://businesspost.ng/economy/shares-of-these-firms-have-remained-suspended-since-2017/

Expert Suggests to FG Other Ways to Finance 2020 Budget
https://businesspost.ng/economy/expert-suggests-to-fg-other-ways-to-finance-2020-budget/

MTN Nigeria Board Meets October 29 for Q3 Earnings
https://businesspost.ng/economy/mtn-nigeria-board-meets-october-29-for-q3-earnings/

LASACO Assurance to Cut Shares to 1.83bn from 7.33bn, Raise Fresh N11bn
https://businesspost.ng/2019/10/11/lasaco-assurance-to-cut-shares-to-1-83bn-from-7-33bn-raise-fresh-n11bn/

Oil Output: OPEC Considers More Cuts Two Months' Time
https://businesspost.ng/2019/10/11/oil-output-opec-considers-more-cuts-two-months-time/

Dangote Flour Board Postpones 2019 AGM
https://businesspost.ng/2019/10/11/dangote-flour-board-postpones-2019-agm/

Subscription for October 2019 FGN Savings Bond Closes Today
https://businesspost.ng/2019/10/11/subscription-for-october-2019-fgn-savings-bond-closes-today/

Equities Lose N7.4bn Thursday as Selloffs Persist
https://businesspost.ng/2019/10/11/equities-lose-n7-4bn-thursday-as-selloffs-persist/

Naira Gains Strength on Low Dollar Demand Thursday
https://businesspost.ng/2019/10/11/naira-gains-strength-on-low-dollar-demand-thursday/

30-Day Treasury Bills Yield Drops to 10.87%
https://businesspost.ng/2019/10/11/30-day-treasury-bills-yield-drops-to-10-87/

NASD Exchange Rises 0.26% as Friesland Hits N130.35 Per Share
https://businesspost.ng/2019/10/11/nasd-exchange-rises-0-26-as-friesland-hits-n130-35-per-share/

Brent Touches $59, WTI $53 as US-China Leaders Meet Thursday
https://businesspost.ng/2019/10/11/brent-touches-59-wti-53-as-us-china-leaders-meet-thursday/

30-Day Treasury Bills Yield Drops to 10.87%
https://businesspost.ng/2019/10/11/30-day-treasury-bills-yield-drops-to-10-87/

CCNN Suspends Trading of Shares for Three Weeks
https://businesspost.ng/2019/10/10/ccnn-suspends-trading-of-shares-for-three-weeks/

Niger Insurance Awaits NAICOM to Approve Edwin Igbiti as MD/CEO
https://businesspost.ng/2019/10/10/niger-insurance-awaits-naicom-to-approve-edwin-igbiti-as-md-ceo/

CBN Loan Policy Could Weaken Banks’ Asset Quality—IMF
https://businesspost.ng/2019/10/09/cbn-loan-policy-could-weaken-banks-asset-quality-imf/

Zenith Bank Launches Z-Money to Penetrate Retain Segment
https://businesspost.ng/2019/10/09/zenith-bank-launches-z-money-to-penetrate-retain-segment/

CBN Loan Policy Could Weaken Banks’ Asset Quality—IMF
https://businesspost.ng/2019/10/09/cbn-loan-policy-could-weaken-banks-asset-quality-imf/

Zenith Bank Launches Z-Money to Penetrate Retain Segment
https://businesspost.ng/2019/10/09/zenith-bank-launches-z-money-to-penetrate-retain-segment/

One-Year T-Bills Yield Falls to 14.63% Tuesday
https://businesspost.ng/2019/10/09/one-year-t-bills-yield-falls-to-14-63-tuesday/

By Dipo Olowookere

Nigerians have been informed by the federal government that the proposed hike of the Value Added Tax (VAT) next year will not affect the poor as being feared by many.

Minister of Finance, Budget and National Planning, Mrs Zainab Ahmed, said this on Monday at the opening of the 25th Nigerian Economic Summit (NES#25) taking place at Transcorp Hilton Hotel, Abuja.

She said at the yearly gathering that the raising of VAT to 7.5 percent from the present 5 percent would affect the wealthy in the society more than the poor in the country.

“The proposed VAT increase is likely to impact more on consumption by the urban communities and the wealthier sections of the population, than on the poor,” Mrs Ahmed said at the event, which was declared open by President Muhammadu Buhari.

The Minister said the 7.5 percent VAT increase proposal was in line with the recommendations of the Presidential Committee on the Funding Options for the Minimum Wage Increase.

According to her, “This administration remains committed to increasing finance for investment health and education, to improve our human capital development indices.”

“However, our target is also to increase funding for capital expenditure such that this constitutes at least 30 percent of federal budgeted expenditures. Given these aspirations, the government has been compelled to review our fiscal policies including the proposed VAT rate increase,” she declared.

She noted that Nigeria’s VAT as a share of Gross Domestic Product (GDP) has declined in the last four years (2015 – 2018), adding that the present level was below the median of 5 percent of GDP in other comparable African countries.

She attributed Nigeria’s low VAT-to-GDP to the low nominal VAT rate, which at 5 percent is the lowest in the African region (which averages at about 16 percent).

Speaking on theme of this year’s summit, Nigeria 2050: Shifting Gears, the Minister emphasised the imperatives for the country to move to a more robust competitive private sector economy with focus on the implications of the projected population of the country hitting over 400 million, making Nigeria the third most populous country in the world by 2050.

According to her, the structure of this population shows that majority will be under the age of 35, representing a large percentage of Africa’s young working-age population. The opportunities are endless, as are the risks, however, if we do not accelerate our efforts towards sustainable and inclusive growth, and improved human capital.

Based on these, the Minister said, “​There is an urgent need to design policies that will not only address the rising population but ensure paradigm shift to a competitive private sector led economic growth and development.”

“The agenda for this summit is therefore, to provide strategic and innovative ways of getting the maximum benefits from the expected demographic dividends,” she further declared.

Mrs Ahmed noted that as you are aware, the summit organised by the Federal Ministry of Finance, Budget and National Planning and the Nigeria Economic Summit Group has indeed remained the foremost platform for the public and private sector stakeholders to discuss issues and challenges facing the nation with a view to evolving common strategy and policy frameworks for addressing them.

“This summit, though a celebration of 25 years of its commencement, is a testament to a successful partnership between the public and private sectors.

“​These 25 years of collaborative engagement has helped in shaping the policies of government. Let me briefly state that past summit outcomes have contributed to policies on Power sector reforms, Agriculture sector reform, and the Pension Reform among others,” she said.

The Minister said she sees a future where the majority of Nigerians have been sustainably lifted out of poverty, and have access to fundamental services including education, health care, water supply and sanitation. A future where all are financially included, with affordable access to financial products and services. A future where no one is left behind.

“​I see a future Nigeria with a thriving and booming private sector led economy that can translate into domestic revenues for governments to reinvest in sustainable growth levers.

“​I see a future where our young and vibrant population is well educated (particularly in STEAM [Science, Technology, Engineering, the Arts and Mathematics] education) – creating a workforce with the skills that well position our youth to be gainfully employed. This includes high value digital jobs that will not only tap into but also drive the limitless global digital economy.

“​I see an advanced high-tech manufacturing sector that is globally competitive, and can ensure value addition for our natural endowments in raw materials.

“I see a safe and secure environment where people and businesses move freely and fearlessly to go about their trade, work and other daily activities.

“​This future we crave for will not be created by luck, neither will it be created by the Federal Government nor by State Governments alone. It will require collective action by all stakeholders including citizens and the private sector.

"As we all know the private sector has a crucial role to play. This future will require comprehensive targeted reforms, tough decisions, a radical shift in the current culture, including attitudes towards taxes and public finance. Just as the saying goes ‘no pain no gain’- I must say, the journey will be a painstakingly tough and will require sacrifices on all sides- including Government, the private sector, citizens and other stakeholders,” the Minister stated.

Speaking further, Mrs Ahmed said the future requires huge financial investments on multi-faceted physical and social areas by both the federal, state and local governments to be able to provide quality, useful, accessible and affordable education, healthcare, transportation, housing, electricity, water.

“Additionally, we must be in a position to provide digital connectivity and innovation, and rise above the tide of disruption that the Fourth Industrial Revolution will bring.

“​The outputs of this 25th Anniversary Summit will be critical as we work towards co-creating the Nigeria we envision and we deserve. They will aid Government in developing and implementing the next generation of National Plans, and towards implementing policies and programmes,” she said.

Concluding, the Minister said, “As representatives of government, the private sector, civil society, and most importantly as Nigerians, [we must] join hands to co-create a future Nigeria in which: (a) no one is left behind; (b) growth is not only competitive but is also inclusive and sustainable; (c) and in which we as the Giant of Africa will lead the way in terms of innovation, industrialization, and human capital on the continent and beyond.”

https://businesspost.ng/2019/10/08/proposed-7-5-vat-wont-affect-poor-nigerians-fg/

Proposed 7.5% VAT Won't Affect Poor Nigerians—FG
https://businesspost.ng/2019/10/08/proposed-7-5-vat-wont-affect-poor-nigerians-fg/

Nigerian Stocks Extend 2019 Loss to 14.70% Tuesday
https://businesspost.ng/2019/10/08/nigerian-stocks-extend-2019-loss-to-14-70-tuesday/

Cutix Plans Major Acquisition for Expansion, Profit
https://businesspost.ng/2019/10/08/cutix-plans-major-acquisition-for-expansion-profit/

SEC Lifts Embargo on 9 BGL Officials as Ban Expires
https://businesspost.ng/2019/10/08/sec-lifts-embargo-on-9-bgl-officials-as-ban-expires/

Oil Falls as US Blacklists 28 Chinese Firms Ahead of Trade Talks
https://businesspost.ng/2019/10/08/oil-falls-as-us-blacklists-28-chinese-firms-ahead-of-trade-talks/

Union Bank Board Meets for Q3 Results, Begins Closed Period
https://businesspost.ng/2019/10/08/union-bank-board-meets-for-q3-results-begins-closed-period/

FCMB Appoints Olufemi Badeji Executive Director
https://businesspost.ng/2019/10/08/fcmb-appoints-olufemi-badeji-executive-director/

Ecobank Nigeria Assures Cancer Patients Financial Support
https://businesspost.ng/2019/10/08/ecobank-nigeria-assures-cancer-patients-financial-support/

Airtel Donates ICT Centre to Imodi Ijebu Community
https://businesspost.ng/2019/10/08/airtel-donates-ict-centre-to-imodi-ijebu-community/

Dangote Flags Off Waste-to-Wealth Initiative for Sustainability Week
https://businesspost.ng/2019/10/08/dangote-flags-off-waste-to-wealth-initiative-for-sustainability-week/

Nigerian Stock Exchange Fines These Three Companies N39.2m
https://businesspost.ng/2019/10/07/nigerian-stock-exchange-fines-three-companies-n39-2m/

NSE Seeks Stockbrokers, Fund Managers Ties to Boost Retail Investment
https://businesspost.ng/2019/10/05/nse-seeks-stockbrokers-fund-managers-ties-to-boost-retail-investment/

Our Q3'19 Earnings Won't be Ready Due Date—FCMB
https://businesspost.ng/2019/10/07/our-q319-earnings-wont-be-ready-due-date-fcmb/

BUA Group Vows to Crash Prices Flour, Sugar, Others
https://businesspost.ng/2019/10/07/bua-group-vows-to-crash-prices-flour-sugar-others/

MTN Storms Markets to Absorb Traders as MoMo Agents
https://businesspost.ng/2019/10/07/mtn-storms-markets-to-absorb-traders-as-momo-agents/

32 Stocks Depreciate NSE Index by 2.48% in Four Trading Days
https://businesspost.ng/2019/10/06/39-stocks-depreciate-nse-index-by-2-48-in-four-trading-days/

NAICOM Accepts Readmission of Dione to SUNU Assurances Board
https://businesspost.ng/2019/10/05/naicom-accepts-readmission-of-dione-to-sunu-assurances-board/

Nigeria to Cut Oil Production–Minister
https://businesspost.ng/2019/10/07/nigeria-to-cut-excess-oil-production-minister/

By Modupe Gbadeyanka

The Federal Road Safety Corps (FRSC) has unveiled detailed, but stress-free ways to obtain drivers’ licence at its offices across the country.

Business Post gathered the process was made known to the public as part of its efforts to educate motorists and road users on how to get the vital item used first to show authorisation to drive a vehicle in the country and also as a means of identification.

In a post on its Facebook page on Friday, the road agency said the first step in obtaining the drivers’ licence is to obtain and complete Form MVA 11 from Motor Licencing Authority (MLA).

The next step is to attend driving test with the appropriate authority for desired category of driver’s licence 11 Form and if successful, a certificate would be issued indicating the class of licence qualified for.

Thereafter, applicant will pay the prescribed fee to the Motor Licencing Authority (MLA), which then sends the form to FRSC (IPC) for processing.

The driver applicant then proceeds to FRSC Information Processing Centre (IPC) for physical capture of photograph, finger print and signature and the processed licence is sent to MLA for distribution to successful applicants.

According to the FRSC, an experienced driver may in addition obtain trade test certificate Issues (3), (2) and (1) from the ministry of labour and productivity.

It said the minimum age for driving is 18 years, while the terminal age for driving is 70 years.

Concluding, the agency noted that changing category of drivers’ licence requires a new test.

Below is the step-by-step process.

https://businesspost.ng/2019/10/04/frsc-explains-simple-ways-to-obtain-drivers-licence/

NSE Eyes 2020 for Demutualization, Writes SEC for No Objection
https://businesspost.ng/2019/10/04/nse-eyes-2020-for-demutualization-writes-sec-for-no-objection/

Union Bank Obtains 10-Year $200m Loan for SMEs
https://businesspost.ng/2019/10/04/union-bank-obtains-10-year-200m-loan-for-smes-women/

Beta Glass to Complete $30m Expansion Project June 2020
https://businesspost.ng/2019/10/04/beta-glass-to-complete-30m-furnace-project-june-2020/

Naira Gains N5 Against Euro, N3 Against Pound at Black Market
https://businesspost.ng/2019/10/04/naira-gains-n5-against-euro-n3-against-pound-at-black-market/

Talking Mutual Funds
https://businesspost.ng/2019/10/04/talking-mutual-funds/

Senate Proposes 10% Tax on Use of GSM, Pay TV
https://businesspost.ng/2019/10/03/senate-proposes-10-tax-on-use-of-gsm-pay-tv/

FMBN Finances 27,584 Housing Units to Cut Deficit
https://businesspost.ng/2019/10/03/fmbn-finances-27584-housing-units-to-cut-deficit/

FRSC Explains Simple Ways to Obtain Drivers' Licence
https://businesspost.ng/2019/10/04/frsc-explains-simple-ways-to-obtain-drivers-licence/

By Adedapo Adesanya

Following the strong opposition to the increase in Value Added Tax (VAT) proposed by the federal government and announced by Minister of Finance, Mrs Zainab Ahmed few weeks ago, the Senate has proposed an imposition of tax on communication and cable television services.

The bill for an Act to establish the Communication Service Tax was moved on the floor of the Senate on Wednesday and sponsored by former Senate Leader, Mr Mohammed Ali Ndume.

The Communication Service Tax Bill proposes to charge nine percent tax for the use of the communication services like calls and data usage and an extra one percent charge on Social Intervention Programme.

According to sponsorof this bill, the introduction of this new tax would replace the proposed 2.2 percent increase in the VAT suggested by federal government.

Mr Ndume said the imposition of tax on communication service was a better way of distributing wealth in such a way that would not affect an average citizen of the country.

The Senator explained that increasing VAT would have very serious effect on the economy as it could affect prices of goods and services and take them beyond the reach of the people.

“While the 2.2 percent increase in the VAT affects all Nigerians, the 10 percent Communication Services tax affects only those who could afford the use of GSM in the country.

“It is the lack of distribution of resources in the country that is fueling insecurity and all manners of criminality in the country,” he said.

“There shall be imposed, charged payable and collected a monthly Communication Service Tax to be levied on charges payable by a user of an Electronic Communication Service other than private Electronic Communication Services,” a part of the Communication Service Tax Bill read.

The bill further stated that, “The tax shall be levied on Electronic Communication Services supplied by Service Providers.

“For the purpose of this clause, the supply of any form of recharges shall be considered as a charge for usage of Electronic Communication Service.

“The tax shall be levied on such electronic communication services like voice calls, SMS, MMS, data usage – both from telecommunication services providers and internet service – as well as pay per view TV stations.

“The tax shall be paid together with the electronic communication service charge payable to the service provider by the consumer of the service,” it further read.

On the agencies charged with the responsibility of collecting the tax, the bill said, “The Federal Inland Revenue Service (FIRS) established under section 1 of the Federal Inland Revenue Service (Establishment) Act, 2007 shall be responsible for collection and remittance of tax, any interest and penalty paid under this Bill.”

“The FIRS shall pay the tax collected together with any interest and penalty into the Federation Account,” it added.

The bill further stated that all service providers shall file a tax return to account for the tax and proposed a penalty that reads, “A service provider who without justification fails to submit to the FIRS the tax return by the date is liable to a pecuniary penalty of N50, 000.00 and a further penalty of N10,000.00 for each day the return is not submitted.”

https://businesspost.ng/2019/10/03/senate-proposes-10-tax-on-use-of-gsm-pay-tv/

By Adedapo Adesanya

Following the strong opposition to the increase in Value Added Tax (VAT) proposed by the federal government and announced by Minister of Finance, Mrs Zainab Ahmed few weeks ago, the Senate has proposed an imposition of tax on communication and cable television services.

The bill for an Act to establish the Communication Service Tax was moved on the floor of the Senate on Wednesday and sponsored by former Senate Leader, Mr Mohammed Ali Ndume.

The Communication Service Tax Bill proposes to charge nine percent tax for the use of the communication services like calls and data usage and an extra one percent charge on Social Intervention Programme.

According to sponsorof this bill, the introduction of this new tax would replace the proposed 2.2 percent increase in the VAT suggested by federal government.

Mr Ndume said the imposition of tax on communication service was a better way of distributing wealth in such a way that would not affect an average citizen of the country.

The Senator explained that increasing VAT would have very serious effect on the economy as it could affect prices of goods and services and take them beyond the reach of the people.

“While the 2.2 percent increase in the VAT affects all Nigerians, the 10 percent Communication Services tax affects only those who could afford the use of GSM in the country.

“It is the lack of distribution of resources in the country that is fueling insecurity and all manners of criminality in the country,” he said.

“There shall be imposed, charged payable and collected a monthly Communication Service Tax to be levied on charges payable by a user of an Electronic Communication Service other than private Electronic Communication Services,” a part of the Communication Service Tax Bill read.

The bill further stated that, “The tax shall be levied on Electronic Communication Services supplied by Service Providers.

“For the purpose of this clause, the supply of any form of recharges shall be considered as a charge for usage of Electronic Communication Service.

“The tax shall be levied on such electronic communication services like voice calls, SMS, MMS, data usage – both from telecommunication services providers and internet service – as well as pay per view TV stations.

“The tax shall be paid together with the electronic communication service charge payable to the service provider by the consumer of the service,” it further read.

On the agencies charged with the responsibility of collecting the tax, the bill said, “The Federal Inland Revenue Service (FIRS) established under section 1 of the Federal Inland Revenue Service (Establishment) Act, 2007 shall be responsible for collection and remittance of tax, any interest and penalty paid under this Bill.”

“The FIRS shall pay the tax collected together with any interest and penalty into the Federation Account,” it added.

The bill further stated that all service providers shall file a tax return to account for the tax and proposed a penalty that reads, “A service provider who without justification fails to submit to the FIRS the tax return by the date is liable to a pecuniary penalty of N50, 000.00 and a further penalty of N10,000.00 for each day the return is not submitted.”

https://businesspost.ng/2019/10/03/senate-proposes-10-tax-on-use-of-gsm-pay-tv/

By Dipo Olowookere

Former Minister of Defence, Lt. Gen. Theophilus Yakubu Danjuma (Rtd), has retired as a Director and Chairman of the Board of Directors May & Baker Nigeria Plc.

A statement issued by the firm disclosed that the former military top brass exited the position at the board meeting of the company held on Friday, September 27, 2019 at MUSON Centre, Onikan, Lagos.

In the disclosure to update the Nigerian Stock Exchange (NSE), shareholders and the investing public, May & Baker said wife of the retiring Chairman, Senator Daisy Ehanire Danjuma, has been appointed to fill the vacant position with immediate effect.

Mrs Danjuma was born on August 6,1952 in Benin City, Edo State. She was first appointed to the board of directors of the firm on July 30, 1999 until October 8, 2003 and later on May 30, 2019.

The new Chairman is a law graduate of the Ahmadu Bello University, Zaria with over four decades post-call experience having been called to the Nigerian bar in 1977.

She worked as a State Counsel in Lagos State Ministry of Justice (DPP), a pioneer legal counsel to the Legal Aid Council. She was Company Secretary/Legal Adviser to the Nigerian Television Authority (NTA) from 1982 to 1992.

Mrs Danjuma was elected Senator from 2003-2007 and while at the upper chamber of the National Assembly, she was a member of the Commonwealth Parliamentary Association (CPA) and Chairman, Women and Child Right Committee of the Economic Community of West African States (ECOWAS Parliament).

She was also the Chairman, Senate Committee on Women Affairs and Youth Development and served as member, Senate Committees on Health, Education, Finance, Land and Transport of the National Assembly.

She was the Chairman of South Atlantic Petroleum Limited from 1999 to 2003. She is an alumnus of the Lagos Business School (LBS) and a member of the International Bar Association (IBA), the Nigerian Bar Association (NBA) and the International Federation of Female Lawyers (FIDA).

Mrs Danjuma is a Trustee of the Obafemi Awolowo Foundation and HID Awolowo Foundation. She is the Chairman, Board of Trustees of Lagos Public Interest Law Partnership and currently the Executive Vice Chairman of South Atlantic Petroleum Limited.

https://businesspost.ng/2019/10/03/ty-danjuma-quits-as-may-baker-chairman-wife-takes-over/

Only 110 People Pay Above N10m in Taxes in Lagos–Sanwo-Olu
https://businesspost.ng/2019/10/02/only-110-people-pay-n10m-in-taxes-in-lagos-sanwo-olu/

FBN Holdings Begins Closed Period Today
https://businesspost.ng/2019/10/03/fbn-holdings-begins-closed-period-today/

Keystone Bank Launches ‘Growbiz Account Save and Win’ Promo
https://businesspost.ng/2019/10/02/keystone-bank-launches-growbiz-account-save-and-win-promo/

Zedvance Gives Zero-Interest Loans for Customer Service Week
https://businesspost.ng/2019/10/03/zedvance-gives-zero-interest-loans-for-customer-service-week/

TY Danjuma Quits as May & Baker Chairman, Wife Takes Over
https://businesspost.ng/2019/10/03/ty-danjuma-quits-as-may-baker-chairman-wife-takes-over/

Access Bank to Give DiamondXtra Customers Daily Cash Prizes
https://businesspost.ng/2019/10/03/access-bank-to-give-diamondxtra-customers-daily-cash-prizes/

CBN Fines 6 Banks on NSE, 6 Others N500bn for Loan Policy Violation
https://businesspost.ng/2019/10/03/cbn-fines-6-banks-on-nse-6-others-n500bn-for-loan-policy-violation/

S&P Expects Growth in Ecobank’s Profits, 40% Dividend Payout
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NASD OTC Closes Flat as Volume, Value of Trades Drop
https://businesspost.ng/2019/10/03/nasd-otc-closes-flat-as-volume-value-of-trades-drop/

Nigeria’s Economy Under Threat as Brent Falls to $57
https://businesspost.ng/2019/10/03/nigerias-economy-under-threat-as-brent-falls-to-57/

Naira Remains Flat Across FX Market Segments Wednesday
https://businesspost.ng/2019/10/03/naira-remains-flat-across-fx-market-segments-wednesday/

Market Capitalisation Loses N153bn After Independence Day Break
https://businesspost.ng/2019/10/03/market-capitalisation-loses-n153bn-after-independence-day-break/

By Adedapo Adesanya

Governor of Lagos State, Mr Babajide Sanwo-Olu, has disclosed that out of the 4.5 million taxable adults living in the metropolis, only 110 pay taxes worth over N10 million.

Mr Sanwo-Olu made this disclosure during the question and answer segment of The Platform Nigeria, an event organised by The Covenant Christian Church Place, Iganmu, Lagos, a religious organisation headed by Pastor Poju Oyemade. The annual programme was themed Redesigning the Nigerian Economy With New Ideas for this year’s edition.

“You will be amazed to know that the number of people who pay more than N10 million tax in Lagos is about 110 people,” The Governor declared while fielding questions from convener of the televised event.

However, the Governor asserted that his administration was not eager to increase tax rate in the state to meet its financial needs, but would concentrate on expanding the tax net of people who pay taxes in the state.

“We are not saying that we should increase tax, but we encourage people to be on the tax net,” he said.

Mr Sanwo-Olu further revealed that only about 700,000 people of the 4.5 million eligible taxpayers in the state pay taxes, which is just a little more than 15 percent.

“We are also appealing to our tax agency to be more proactive and reach out to people who are not paying tax,” the Governor, who was greeted with applause, said.

The Lagos state Governor also called for what he tagged Creative Financing, which he said would take a large chunk of pressure off the need for taxation.

“We can do what we call asset securitization, which will look at all the assets we have and know which of them can we leverage something out of and put into capital expenditure,” Mr Sanwo-Olu stated.

https://businesspost.ng/2019/10/02/only-110-people-pay-n10m-in-taxes-in-lagos-sanwo-olu/

By Dipo Olowookere

Chairman of United Bank for Africa (UBA) Plc, Mr Tony Elumelu; MD/CEO of UBA, Mr Kennedy Uzoka; and some other persons have been prohibited from trading shares of the financial institution from Wednesday, October 2, 2019 (today), Business Post reports.

A notice from the lender said the affected can only resume transacting securities of the company 24 hours after the release of the firm’s unaudited accounts and financial statements for the third quarter ended September 30, 2019 to the Nigerian Stock Exchange (NSE).

This action was taken to prevent these persons from either mopping up or offloading shares the company at the market because of the vital information about the bank’s Q3 earnings at their disposal.

“No director, person discharging managerial responsibility, employee with sensitive information, adviser, and consultant of the bank and their connected persons may directly or indirectly deal in the securities (shares and bonds) of the bank until 24 hours after the release of the group unaudited accounts and financial statements for the third quarter ended September 30, 2019 to the Nigerian Stock Exchange,” a notice from UBA declared.

In the disclosure, UBA said it announced this closed period because its board would be having a meeting in Abuja on Friday, October 18, 2019 by 10am to consider, amongst other matters, the third quarter results of the firm.

“The board of directors of United Bank for Africa Plc is scheduled to meet in Abuja at 10:00am on Friday, October 18, 2019 to consider, amongst other matters, the group unaudited accounts and financial statements for the third quarter ended September 30, 2019,” it said.

“In compliance with the post listing requirements of the Nigerian Stock Exchange for quoted companies, United Bank for Africa Plc hereby declares the commencement of the closed period for trading in the bank’s shares from Wednesday, October 2, 2019 in respect of the group unaudited accounts and financial statements for the third quarter ended September 30, 2019,” it added.

Business Post reports that shares of UBA were traded at the stock exchange on Wednesday (today) at N6.15 each, going down by 5 kobo or 0.81 percent from the N6.20 per unit it traded at the last trading session.

From the UBA 2018 financial statements analysed by Business Post, Mr Elumelu directly controls 189,851,584 shares of the company and indirectly controls 2,045,354,57 units, while Mr Uzoka has a direct control 37,173,909 equities.

Wife of former Governor of Cross River State, Mrs Owanari Duke, another director, has a total of 86,062 shares of UBA, while the Vice Chairman of UBA, Mr Joe Keshi, controls 433,499 units.

https://businesspost.ng/2019/10/02/elemelu-uzoka-others-barred-from-trading-uba-shares/

Elemelu, Uzoka, Others Barred from Trading UBA Shares
https://businesspost.ng/2019/10/02/elemelu-uzoka-others-barred-from-trading-uba-shares/

Utilizing Technology will be Profitable for Capital Market – NASD
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Buhari Threatens Revenue Generating Agencies
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NPF MfBank Gets NSE Approval for Public Offer, Rights Issue
https://businesspost.ng/2019/10/02/npf-mfbank-gets-nse-approval-for-public-offer-rights-issue/

Rates to Rise as CBN Sells N133.97bn Treasury Bills Today
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Weak Economic Data Weakens Crude Oil Prices
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NSE Approves Rights Issue of Wapic Insurance
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Rates to Rise as CBN Sells N133.97bn Treasury Bills Today
https://businesspost.ng/2019/10/02/rates-to-rise-as-cbn-sells-n133-97bn-treasury-bills-today/