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Category: Business

  • Nigeria’s equity market continues positive run, gains N851bn

    Transactions on the floor of the Nigerian Exchange (NGX) on Monday appreciated by N851 billion as an investment in the shares of FBNHoldings, Union Dicon, Sterling Bank Transcorp and others lifted market activities.

    The market capitalisation of listed equities increased by 2.48 percent to N35.177 trillion from N34.326 trillion reported the previous day.

    The NGX All Share Index also appreciated by 1562.82 basis points to 64603.69 points from 63040.87 points traded on Friday.

    An analysis of the investment during the day showed that five listed companies recorded 10 percent gain. The report indicated that Jaiz Bank, MRS Plc, and Neimeth international Pharmaceutical gained 10 percent to close at N1.98 per unit, N109.45 per share, and N2.20 per unit respectively.

    Daar Communications and Dangote Cement also added 10 percent each to close at N0.22 and N330.10 per unit respectively.

    On the contrary, Pharm Deko topped the losers chart on Monday, declining by 9.85 percent to close at N1.83 per share, Union Dicon trailed with a drop of 9.50 percent to close at N8.10, Berger Paints down by 9.09 percent to close at N10.00, Guinea Insurance dropped by 7.69 percent to close at N0.24 per unit, Champion Breweries dipped by 5.43 percent to close at N4.35 per unit.

    The volume of activities increased as investors traded 1.839 billion shares valued at N22.033 billion in 14584 deals against 1.227 billion shares cost N13.847 billion exchanged hands the previous day in 10393 deals.


    Transactions in the shares of FBNHoldings led market activity with 198.221 million shares valued at N4.417 billion, Universal Insurance followed with an account of 184.655 million shares cost N53.464 million, Sterling Bank traded 161.679 million shares valued at N724.332 million, Transnational Corporation of Nigeria traded 156.417 million shares cost N706.915 million while AIICO Insurance sold a total of 98.321 million shares valued at N73.579 million.

  • Lagos jacks up Nigeria’s foreign capital inflow to $1.13bn

  • 24 Central Banks will have digital currencies by 2030 – Survey

    A survey by the Bank for International Settlements (BIS) shows that 93 percent of central banks are already researching Central Bank Digital Currencies (CBDCs).

    According to the survey, there could be up to 15 retail and nine wholesale CBDCs in circulation by 2030.
    According to a survey, over half of the world’s central banks are conducting experiments or working on a CBDC pilot. Almost a quarter of all central banks are already piloting their retail CBDC projects, and the number of wholesale CBDCs in the works is much lower.
    Geoeconomically, nations within emerging markets and developing economies are leading CBDC adoption.

    Their share in piloting the retail (29 per cent) and wholesale (16%) CBDCs almost doubled that of advanced economies, which stands at 18 per cent and 10 per cent, respectively.
    Both developing and advanced economies mostly share the motivation behind their CBDC projects — financial stability and cross-border payments efficiency. However, developing countries are more often driven by financial inclusion reasons.

    The share of central banks likely to issue retail CBDC within the next three years grew from 15 per cent to 18 per cent in 2022. At the same time, 68 per cent of central banks still state their unreadiness to issue retail CBDC “any time soon.”
    So far, there are still only four CBDCs in circulation: in the Bahamas, the Eastern Caribbean, Jamaica and Nigeria. Yet, based on the central bankers’ answers, the survey predicts 15 retail and nine wholesale CBDCs will be live by the end of the decade.
    At the end of June, the Reserve Bank of India reported ongoing negotiations with at least 18 central banks worldwide regarding the possibility of cross-border payments via its CBDC, the “digital rupee.”

    In July, the Federal Reserve Bank of New York’s Innovation Center completed its proof-of-concept of a regulated liability network for a CBDC.

  • Harmonisation, digitalisation will enhance revenue collection in FCT – Perm Sec

    The Permanent Secretary, Federal Capital Territory Administration (FCTA), Mr Adesola Olusade, said on Monday that the harmonisation and digitisation of revenue collection would enhance revenue collection in the Federal Capital Territory (FCT).

    Olusade said this in a keynote address during a one-day town hall meeting on revenue harmonisation in Abuja, with the theme, “Harmonisation Drive: Shaping Our Future Together”.

    The meeting was organised by the FCT-Internal Revenue Service (FCT-IRS).

    The permanent secretary said that by adopting modern technology, digital platforms, and efficient processes, the FCT would enhance the effectiveness and efficiency of revenue collection.

    This, according to him, will not only improve service delivery but also contribute to the ease of doing business, thereby making FCT an attractive destination for local and foreign investors.

    “It will lead to increased revenue generation, which in turn will provide the necessary resources to invest in critical sectors such as healthcare, education, transportation, and infrastructure development.

    “This will directly impact the lives of residents, improving access to quality healthcare, enhancing educational facilities, and ensuring a well-planned and sustainable urban environment,” Olusade said.

    He said that streamlining and optimising revenue collection processes would enhance transparency and accountability in revenue collection, and ensure that funds were efficiently utilised for the benefit of FCT residents.

    He added that the harmonisation would also eliminate duplication, reduce bureaucratic bottlenecks, and create a more conducive environment for businesses and investors.

    According to him, consolidating revenue collection systems will promote fairness and equity in revenue collection, attract more investment, stimulate economic growth, and create employment opportunities.

    “This will enhance the FCT’s reputation as an investment-friendly destination, contributing to the overall development of the region.

    “By ensuring that all eligible individuals and businesses contribute their fair share, we can distribute the burden of taxation more equitably and reduce the tax evasion that hampers revenue generation.

    “The move will enable us to provide essential services, infrastructure, and social amenities that improve the quality of life for all residents of the FCT.”

    The permanent secretary, however, said that the success of the harmonisation drive would largely depend on the active participation and engagement of all stakeholders.

    He commended stakeholders for their efforts, dedication and contributions, saying “together, we can create a harmonised revenue collection system that benefits all residents of the Federal Capital Territory.

    “By working collaboratively and leveraging our collective strengths, we can overcome challenges, seize opportunities, and pave the way for a prosperous future,” he added.

    Also, the Executive Chairman, Federal Inland Revenue Service, Alhaji Muhammad Mani, commended the FCT-IRS for making technology a pivotal point of its operational policy.

    Mani, who was represented by Mr Shetitima Tamadi, Coordinating Director, FRIS, noted that the digital revolution was transforming tax administration globally, stressing the need for the revenue hamornisation drive to leverage on technology to achieve more results.

    According to him, the adoption of digital platforms in revenue collection in the FCT holds the greatest prospects of streamlining operational cost, blocking revenue leakages and ensures accurate revenue data.

    The Executive Chairman, FCT-IRS, Mr Haruna Abdullahi, said that the harmonisation drive was not just about increasing revenue but also about building a system that works for all.

     Abdullahi said that FCT-IRS Act entrusts the service with the duty to collaborate with relevant stakeholders and agencies in harmonising and improving tax practices.

    “This is aimed at optimising our revenue generation efforts, while ensuring simplicity, transparency, and accountability in tax systems.

    “Harmonising our revenue collection systems will unlock the full potential of our resources and pave the way for sustainable growth, improved service delivery, and enhanced quality of life for our citizens,” he said. 

  • Metre producers call for end to W/Bank-funded bid process in Nigeria

    The Association of Meter Manufacturers of Nigeria (AMMN) has expressed its opposition to the World Bank-funded bid process for the supply and installation of 1.2 million smart electricity metres to the distribution companies (Discos) under Phase 2 of the National Mass Metering Programme (NMMP).

    In a letter addressed to the Director General of the Bureau of Public Procurement (BPP), the association called for the immediate suspension of the bid process.

    The letter, jointly signed by the Acting President of the association, Ademola Agoro, and the Secretary, Duro Omogbenigun, urged the BPP DG to intervene and direct the Transmission Company of Nigeria (TCN), Nigerian Electricity Regulatory Commission (NERC), and the Central Bank of Nigeria (CBN) to honor the pending four million meters supply contract awarded to AMMN members under Phase 1 of the NMMP since November 2022.

    The association argued that the recently advertised bid process favored foreign firms without any investment track record in the country, contradicting the federal government’s policy of backward integration. It warned that if the tender is allowed to continue, it would constitute a breach of the contract awarded to AMMN members in Phase 1 of the program.
    The letter further reads: “That your office be aware that this particular bid process is being opened to foreign companies (manufacturers, suppliers, and exporters) of fully-built electricity meters with planned Custom Duty waiver granted to them to import meters into Nigeria.
     “These importers, who are primarily foreigners, have yet to make a verifiable investment in the backward integration programme of the federal government, nor have they made any investment in local manufacturing and assembling of meters in Nigeria, which has always been the standard requirements for Meter Assets Providers (MAP) in Nigeria to show proof of investments in the backward integration and must have Meter Assembling/Manufacturing Plants and factories in Nigeria.  
    “You may further be reminded that TCN and NERC, under Phase 1 of the Mass Metering Project of the Federal Government, a bidding process that your office supervised and gave a “Letter of No Objection to”, awarded 4 million meters to the local meter manufacturers in 2022.”

    As a result of backward integration, the body said its members had scaled up their production capacities by obtaining facilities from the banks to meet the supplies of these meters to the distribution companies.
    It added that they had readied to supply these meters before the government abandoned the awards already made to its members and went ahead to advertise the World Bank-funded international procurement for 1.2 million meters under Phase 2, which the requirements, the association said were majorly in favour of foreign companies.  
    Specifically, the meter manufacturers urged the BPP and the federal government to save the local metering sector from total collapse and save the investments and jobs of Nigerians.

    As part of their prayers, the association called on the BPP DG to direct the immediate suspension of the TCN bid process for Phase 2, pending proper consultation of the stakeholders in the power sector, especially the meter manufacturers.
    It said such action would help to address its members’ concerns regarding the pendency of Phase 1 of the NMMP and the award of the contracts for the supply of four million meters already awarded to their members since November 2022, which had not been funded till date.
    They also pleaded with the BPP boss to direct the TCN, NERC, and CBN to honour the award of contracts for the supply of four million meters as awarded to the local meter manufacturers in Phase 1 of the NMMP.

    The association further requested the BPP CEO to “Direct consultation among local stakeholders during the suspension of Phase 2, to create viable options and strategies to restructure the evaluation criteria and guidelines of Phase 2 World Bank Bid to prioritise local meter manufacturers, thereby align Phase 2 with the Local Content Policy and Backward Integration Programme laws of the Federal Republic of Nigeria to catalyse economic growth and development.
    “We pray and hope for your urgent intervention to address this issue”.
    While appreciating the good intentions of TCN and NERC to achieve the mass metering of Nigerians and bridge the metering gap in the sector towards solving the nation’s electricity problems, the association also stated that such good intentions should be executed while taking into consideration the sanctity of contracts.


    It noted that such good intentions by the TCN and NERC should reflect the present economic state of Nigeria where the nation imports fully-manufactured products but make policies that encourage building local production capacity to create employment for the teeming youthful population.  
    The association, however, warned that the proposed World Bank-funded bid process would lead to a disastrous outcome for its members as well as local meter manufacturing and assembling companies in Nigeria, who have invested over $500 million in the industry.
    It added that the bid process would also cause massive job losses in the industry that currently employs over 10,000 Nigerians in direct employment and more than 30,000 Nigerians in indirect labour with competitive wages comparable to the communications sector.    


    “Our members have invested considerable resources in the metering sector with capacities to improve if only Government could sustain its present policy of allowing only genuine local meter manufacturers and assemblers to continue to supply meters to the Discos without skewed tender processes like the proposed World Bank Bid that seems to shut out local manufacturers from even participating in the process,” the association added.  
    The association insisted that any attempt by the government to jettison the laudable policy of growing and buying made-in-Nigeria products at the expense of encouraging mass importation of products, including meters into Nigeria under any guise without comprehensive consultations with the stakeholders in the sector would only wipe out the investments of the investors in the industry.

  • Don’t pay advert revenue to DOAS, firm urges FCT residents

    Don’t pay advert revenue to DOAS, firm urges FCT residents

    Residents of the Federal Capital Territory (FCT) have been advised to pay their respective advertisement revenue to the Areas Councils where they operate their businesses and not to the Department of Advertisement and Signage (DOAS).

    In a statement on Sunday in Abuja, signed by the management of Pro Tax Pro Nigeria Initiative, they warned that any business that continues to make payments to the Department of Advertisement and Signage (DOAS) of the Federal Capital Territory (FCT) was doing that at their own risk.

    “Any individual or organization therefore who deals with DOAS, FCTA harmonized mobile advertising revenue for the six area councils or any other agency other than the six area councils or their technical partners with regards to mobile advertisements and signage’s (including mobile, 1st party and 3rd party advertisement) does so at his/her detriment and would be deemed to have contravened the area councils constitutional mandate on regulations of advertisements,” the statement said.

    The company noted that with two court judgments nullifying the existence of the DOAS, it would be out of place for businesses to still make payment for advertisement and signage to the DOAS.

    The statement read in part: “Following the judgment of the FCT High Court delivered on the 11th September 2020 by Hon. Justice Muawiyah Baba Idris of Court no. 26, Nyanya, Abuja, which is now on appeal no. ca/abj/cv/1082/2020 between Hon. Minister of the FCT and Metro Auto Workshop & 4 others. 

    “The Court held thus: the department of advertisement and signage of the FCTA is hereby nullified having been created contrary to section 1(3) and paragraph 1 (k) (i) of the 4th schedules to the constitution of the federal republic of Nigeria 1999 as altered”.

    “The said judgment which nullified the Department of Advertisement and Signage (DOAS) has not been stayed by either the FCT high court or the court of appeal, the implication of this position in law is that (DOAS) is no longer in existence until the court of appeal says otherwise.

    “Also, in the case of Pro Tax Pro Nigeria Initiative & 1 ors vs. Hon. Minister of FCT & 2 others suit no. cv/1646/2020, the FCT High Court presided by Hon. Justice K. N. Ogbonnaya made similar pronouncement nullifying the Department of Advertisement and Signage (DOAS) from usurping the constitutional revenue powers of the area council.”

    The management of the company insisted that until the appeal filed by the FCT Minister is vacated at the Court of Appeal, the High Court judgment is still valid and subsisting in the eyes of the law.

    “Consequently, the general public is by this notice advised to disregard henceforth all revenue collections with respect to advertisements and signage’s (including mobile, 1st party and 3rd party advertisement) by anybody under whatever name called including but not limited to DOAS or FCTA harmonized mobile advertising revenue for the six area councils as there is no such body known to law until the court of appeal decides on the two appeals pending before it. 

    The general public is by this notice advised to be properly and adequately guided,” the company said.

  • Agric ministry, Delifrost sign pact to boost milk production in Nigeria 

    The Federal Ministry of Agriculture and Rural Development and Delifrost Caterers have signed a Memorandum of Understanding (MoU) to boost production in Nigeria. 

    Speaking at the signing ceremony of the MoU, the Regulatory Officer of Delifrost Caterers Glory Eboh commended the ministry for the collaboration. 

    Eboh thanked the Permanent Secretary, Ernest Afolabi Umakhihe for his effort in making the agreement a reality, saying without his support and understanding the collaboration would not have been successful. 

    “We are very grateful to you once again, by signing this MoU you have shown that you have the heart to grow agriculture in the country.

    “The speed at which you accepted to sign the MoU and your contributions even before then showed that you are indeed a pillar of development in the agricultural sector,” she said.

    She further stated that signing the MoU would boost the capacity of milk production and collection in communities in Niger State as it would open up other areas of opportunities in the agricultural sector of the country.

    The signing of the MOU was witnessed by Isimbabi S. Garba, Director Legal Services, Federal Ministry of Agriculture and Rural Development who has also been at the forefront of ensuring that the collaboration comes to fruitfulness through various contributions.

    Speaking in the same vein, the representative of Delifrost Caterer Ltd, Alhaji Usman A. A. Dan Malam also praised the Permanent Secretary for his effort in ensuring that the MOU becomes a reality.

    Dan Malam added that Delifrost Ltd would leave no stone unturned in bringing new technology and innovation to boost agricultural development in the country.

    Responding, the Permanent Secretary said that the collaboration between the two agencies would open new spheres in agriculture and generate employment opportunities in the country.

    Umakhihe charged the Delifrost team to ensure that agriculture is developed to meet international best practices. He further pledged the readiness of the ministry to invest more in the collaboration.

    Similarly, the Director, Department of Animal Husbandry Services, Federal Ministry of Agriculture and Rural Development, Mrs Winnie Lai-Solarin noted that the new partnership would go a long way in creating employment opportunities for workers in the agricultural sector while bringing new investment opportunities to the country.

  • Prudential Zenith grows profit by 18% in 2022

    Prudential Zenith grows profit by 18% in 2022

    Prudential Zenith Life Insurance Limited (PZL) says it has recorded a profit after tax of N1.33 billion for the year ended December 31, 2022.

    The figure represented 18 percent increase when compared to N1.131 billion recorded in 2021.

    The company said this in a statement signed by the Head, Corporate Communications, PZL, Mr Bob Ononu, and made available at the weekend in Lagos.

    Ononu said that the company’s audited financial results for the year under review were approved by PZL’s Board and the National Insurance Commission (NAICOM).

    He stated that the result indicated that the firm achieved an impressive growth, despite a challenging business environment, characterised by rising inflation, deteriorating foreign exchange position and temporary cash shortages.

    He noted that the reported financial growth was released one month after PZL celebrated 175 years with Prudential Plc. and the parent company’s eight Prudential Plc’s subsidiaries in Africa.

    The company’s spokesperson stated that its top-line Gross Written Premium (GWP) declined by 15 per cent to N6.39 billion, compared to N7.5 billion in 2021.

    He said the insurers underwriting costs were effectively managed, resulting in an eight per cent growth in underwriting profit while investment income grew by 28 per cent year-on-year.

    According to him, the growth was due to a substantial increase in the company’s interest-generating assets.

    Ononu said that the shareholders equity grew by 11 per cent to N1.34 billion, between 2022 and 2021, reflecting an increase in retained earnings.

    “The 175-year milestone not only signifies Prudential’s rich heritage and enduring success, but also exemplifies the company’s commitment to continuous evolution and meeting the ever-changing needs of customers.

    “Prudential has over the years transformed countless lives through innovative insurance solutions that empower individuals and businesses to achieve financial security and prosperity,” he said.

    Comenting on the insurer’s 175 years celebration, Mr Chuks Igumbor, Managing Director, PZL, appreciated its customers and staff, while urging them to always uphold the firm’s core values and strive to help customers get the best of life.

    Prudential Plc is a leading provider of life and health insurance, as well as asset management services in 24 markets across Asia and Africa.

    The insurance company promotes financial inclusion and ensures healthcare affordability and accessibility, protects individuals’ wealth, helps them grow their assets, and empowers them to save for their goals.

  • Tinubu sets up Tax Reforms Committee

    Special Adviser (Special Duties, Communications and Strategy) to the President, Dele Alake, in a statement Friday, said, the committee will be chaired by Fiscal Policy Partner and Africa Tax Leader at PriceWaterhouseCoopers (PwC), Mr. Taiwo Oyedele.

    It will comprise experts from both the private and public sectors and have responsibility for the various aspects of tax law reform, fiscal policy design and coordination, harmonization of taxes, and revenue administration.

    Special Adviser to the President on Revenue, Mr. Adelabu Zacch Adedeji, explained that President Tinubu recognizes the importance of a sound fiscal policy environment and an effective taxation system for the functioning of the government and the economy.

    ”Nigeria ranks very low on the global ease of paying taxes while the country’s Tax to GDP ratio is one of the lowest in the world and well below the African average.

    ”This has led to an overreliance on borrowing to finance public spending which in turn limits the fiscal space as debt service costs consume a greater portion of government revenue, annually resulting in a vicious cycle of inadequate funding for socio-economic development.

    ”While some incremental progress has been recorded over the years, the outcomes have not been transformative enough to change the narrative,” he said.

    Adedeji outlined the key challenges in Nigeria’s tax system to include multiple taxes and revenue collection agencies, fragmented and complex tax system, low tax morale, high prevalence of tax evasion, high cost of revenue administration, lack of coordination between fiscal and economic policies, and poor accountability in the utilization of tax revenue.

    The establishment of this committee reflects President Tinubu’s commitment to addressing these challenges and bringing about transformative reforms in fiscal policy and taxation.

    The committee’s primary objective is to enhance revenue collection efficiency, ensure transparent reporting, and promote the effective utilization of tax and other revenues to boost citizens’ tax morale, foster a healthy tax culture, and drive voluntary compliance.

    These efforts will not only improve Nigeria’s revenue profile but also create a more conducive and internationally-competitive business environment.

    ”Our aim is to transform the tax system to support sustainable development and achieve a minimum of 18% Tax to GDP ratio within the next 3 years without stifling investment or economic growth.

    ”It should be noted that this committee will not only advise the government on necessary reforms, but will also drive the implementation of such recommendations in support of the comprehensive fiscal policy and tax reform agenda of the current administration,” the SA on Revenue added.

  • Germany to boost Africa infrastructure with €10m

    The African Development Bank (AfDB) said the German Government will provide 10 million Euros, to replenish the  New Partnership for Africa’s Development Infrastructure Project Preparation Facility (NEPAD-IPPF) Special Fund.

    The support will be done through the KfW.

    NEPAD-IPPF is a multi-donor Special Fund, hosted by AfDB with a leading project preparation facility in Africa that plays a catalytic role in providing technical and financial assistance for the preparation of regional infrastructure projects and programs.

    Its mandate is to spur sustainable infrastructure development on the African continent through the preparation of bankable, investment-ready projects.

    According to the Bank, the fund will help boost the development in the African continent. The fund would be provided by the German Federal Ministry for Economic Cooperation and Development (BMZ).

    The agreement was signed in Berlin by Helmut Gauges, Head of Financial Cooperation in Sub-Saharan Africa on behalf of KfW, and AfDB Vice-President and Chief Financial Officer, Hassatou N’Sele.

    According to the statement, Germany’s support will bolster NEPAD-IPPF’s efforts towards priority areas such as green and climate-smart infrastructure.

    It said it would ensure stronger focus on the second Priority Action Plan of the Programme for Infrastructure Development in Africa for the period 2021-2030 (PIDA-PAP 2).

    It said it would also support Africa’s transformation under the Africa Continental Free Trade Area (AfCFTA) by boosting intra- and extra-African trade.

    The KfW Director, Christoph Tiskens, said the partnership would support infrastructure development on the continent.

    Tiskens said this would focus on areas such as climate change, gender, Agenda 2063, and a stronger focus would be on attaining the Sustainable Development Goals (SDGs).

    “The KfW, on behalf of the German Government, is a key partner of AfDB and will continue to support facilities that play a key role in economic growth and poverty reduction,”Tiskens said.

    The AfDB Vice-President and Chief Financial Officer, said the support of partners such as Germany would enable AfDB to deliver on its important development mission.

    N’Sele said this was especially as economies in Africa navigated new challenges in the face of overlapping global crises.

    “With the replenishment of NEPAD-IPPF Special Fund, we are determined to further support our clients.

    “While helping them realise their economic potential through increased infrastructure investments, contributing to green growth, inclusion, and job creation,” she said.