Category: Business

Revenue collected by Distribution Companies (DISCOs) in the first quarter of 2023 was N247.33 billion from N232.32 billion collected in the fourth quarter of 2022. 

On a year-on-year basis, revenue generated in the first quarter rose by 20.81 per cent from N204.74 billion recorded in Q1 2022.

In it’s Electricity Report Q1 2023, the National Bureau of Statistics (NBS), noted that despite the increase in revenue, electricity supply by DisCos to Nigerians declined by 1.74 per cent. 

NBS stated: “However, on a year-on-year basis, electricity supply declined by 1.74% compared to 5,956 (Gwh) reported in Q1 2022.”

The report stated that total customer numbers in Q1 2023 stood at 11.27 million from 11.06 million in Q4 2022, showing an increase of 1.89%. 

“On a year-on-year basis, customer numbers in Q1 2023 rose by 5.99% from 10.63 million reported in Q1 2022. 

“Similarly, metered customers stood at 5.31 million in Q1 2023, indicating a growth of 3.61% from 5.13 million recorded in the preceding quarter.

“On a year-on-year basis, this grew by 10.86% from the figure reported in Q1 2022 which was 4.79 million. In addition, estimated customers during the quarter were 5.96 million in Q1 2023, higher by 0.40% from 5.93 million in Q4 2022. 

“On a year-on-year basis, estimated customers increased by 1.99% in Q1 2023 from 5.84 million in Q1 2022,” the report stated.

The Nigeria Labour Congress (NLC) has warned that the plan to increase electricity tariff by July 1 would further compound the current hardship of ordinary Nigerians.

If implemented, it would be a 40 per cent increase. 

In a statement the NLC called on the authorities to shelve the planned hike saying it was anti-people and insensitive.

NLC had on June 3 indicated its intention to call out workers for a strike beginning from Wednesday, June 7 in protest against the removal of subsidy and subsequent hike in fuel price.

However, the federal government had procured an injunction from the NIC restraining NLC from proceeding with the proposed nationwide strike.

Subsequently, the NLC had called off the strike after meeting with a federal government’s team on Monday.

However, in a communique issued at the end of an emergency of its National Executive Council (NEC) on Tuesday in Abuja, the NLC accused the NIC of favouring the Federal Government against the interest of the masses and workers in the country.

General Secretary of the Congress jointly signed the communique.

It said that the NEC meeting was called to discuss the outcome of the dialogue between the NLC and the Federal Government on the petroleum product price hike.

The NLC said NEC in session resolved that there was need to show government that it was important to comply with laid down laws and court rulings.

“Especially as it concerns obedience to the rulings of the Courts and their brazen disregard to the 2023 Appropriation Act.

“To therefore support and accept the decision of the leadership of Congress to suspend the proposed strike action in compliance with the flawed rulings of the NIC.

“Also to allow negotiations to flow freely and enable final agreement during or after the 19th June, 2023, negotiation round with the federal government.

“To however register in strongest terms its disgust and disapproval with the ruling of the NIC for its continuous weaponisation of the instrument of Exparte injunction in favour of the government. 

It’s against the interests of Nigerian workers in defiance of the position of the Supreme Court on the use of this instrument,” it said.

Congress further stated that all Affiliates and State Councils of Congress are hereby directed to suspend further action and mobilisation until the outcome of the final negotiations.

The Federal Inland Revenue Service (FIRS) has partnered with the Market Traders Association of Nigeria (MATAN) to collect and remit Value Added Tax (VAT) to the FIRS from the country’s markets, especially in the informal sector. 

The Association which has a membership of well over 40 million traders across the country’s 774 local governments, and 36 States plus the Federal Capital Territory is the biggest player in Nigeria’s market space.

Special Assistant Media & Communication to the FIRS Executive Chairman, Johannes Oluwatobi Wojuola, in a statement said details of the FIRS’ partnership with the traders were disclosed Wednesday at a Stakeholders Engagement Programme on the VAT DIRECT Initiative, held in Lagos State.

The partnership will see the Service collaborating with the association to deploy technology to enumerate traders for collecting and remitting VAT to the Service, consequently leading to an expansion of the tax net and increased revenue for the Federation.

The VAT DIRECT Initiative (VDI) is a program designed to foster collaboration between the FIRS and the market place, especially the informal sector, in the collection and remittance of the Value Added Tax (VAT) using technology. 

Speaking during the Stakeholder Engagement, Executive Chairman FIRS Mr. Muhammad Nami, highlighted that the initiative was the first of its kind, and that it was crucial to revenue generation and also to eliminating multiple taxation, especially from the informal sector.

Nami, who is also the Chairman of the Joint Tax Board (JTB) further stated that the government is worried about the multiplicity of taxes, and that the Service and JTB were working on various modalities of addressing this challenge and that this partnership has laid a very good foundation for the government to address the issue of multiple taxation and extortion by tax officials, tax agents and touts in the market place. 

He further noted that the Service would collaborate with security agencies, especially the Nigeria Police, to deal with illegal tax collection by touts in markets. 

“One important area of our collaboration is the issue of providing adequate security in the markets. We are aware of the challenges that you have faced in the past with miscreants, self-imposed tax collection agents, and touts. 

“I want to assure you that as part of this initiative, we will be collaborating with the relevant security agencies particularly the Nigeria Police Force to tackle all forms of touting and illegal tax collection by miscreants and keep them away from your markets.” 

Mr. Nami further noted that the success of this collaboration would lead to increased revenue for the country, and in turn provide government the needed resources to fund infrastructure and other social amenities. 

“The successful outcome of this collaboration and additional revenue accruable will have multiplier effects on all sectors of the economy as the government will have more revenue to provide the needed social amenities and infrastructure in critical sectors. 

“An improved VAT collection will improve the revenue base of the States and Local Governments at the sub-national level and the citizens will be the ultimate beneficiaries.

“This initiative is very important to the government, particularly at this moment of dwindling revenues from the petroleum sector and therefore, requires that we put all hands on deck and optimally explore all available opportunities. 

“The administration of VAT in the informal sector is characterized mainly by a low level of compliance and a lack of awareness in terms of obligation and liability. It, therefore, becomes necessary to leverage the MATAN platform to positively change the status quo,” Mr. Nami stated. 

He also noted that to ensure transparency and accountability of the project operations, a combined monitoring and evaluation team comprising both organisations would be formed. 

During the Stakeholder Engagement, the Executive Chairman, FIRS also unveiled an Identity Card that is to be given to each trader upon enumeration; the card contains their tax identification number and other personal details. 

The VAT Direct Initiative Stakeholder Engagement was attended by the Secretary of the Joint Tax Board, representatives from Deposit Money Banks, Iyalojas of markets across the country, members of various trade clusters, representatives from all major markets across the country, as well as officers of the Federal Inland Revenue Service.

The nation’s domestic equity market sustained a growth profile on Wednesday, appreciating by N117 billion, as a selloff in shares of some small and medium stocks lifted activities in the market.

Market capitalisation of listed equities increased by 0.36 per cent to N32.302 trillion from N32.185 trillion reported the previous day.

The NGX All Share Index also appreciated by 213.93 basis points to 59323.95 points from 59110.02 points recorded on Tuesday.

A review of the Investment showed that Afromedia led gainers table in percentage terms, gaining 10 per cent to close at N0.22 per share, ETranzact followed with a gain of 9.91 per cent to close at N5.88 per share, Neimeth International Pharmaceutical gained 9.88 per cent close at N1.78 per unit, FTNCocoa added  9.88 per cent to N1.78 per shares.

Unity Bank gained 9.76 per cent to close at N1.35 per share.

On the contrary, Jaiz Bank topped losers chart, in percentage terms, dropping by 10 percent to close at N1.53 per share, Meyer Paint trailed with a loss of 9.88 per cent to close at N2.19 per unit, Ikeja Hotel fell by 9.86 per cent to close at N3.20 per share, Tantalizer dipped by 9.06 per cent to close at N0.20 per unit, Cadbury Nigeria Plc down by 9.04 per cent to close at N17.10 per share.

Volume of trades increased as investors traded 643.031 million shares valued at N6.107 billion in 7806 deals against 588.854 million shares valued at N8.960 billion in 8272 deals.

Transactions in the shares of Universal insurance led activity with 141.136 million shares valued at N35.042 million, GTCO Plc followed with account of 42.365 million shares cost N1.360 billion, Japaul Gold traded 37.685 million shares worth N23.280 million, United Bank for Africa sold a total of 31.667 million shares cost N362.033 million while AccessCorps exchanged 25.727 million shares valued at N383.652 million.

The Manufacturers Association of Nigeria (MAN) has said that Nigeria’s economy loses as much as N10.1 trillion annually to epileptic power supply.

MAN is the umbrella body of all manufacturers in Nigeria.

According to the body, the amount is 2 percent of Nigeria’s Gross Domestic Product (GDP).

“Consequently, access to electricity has remained a hurdle for millions of Nigerians. According to the 2021 report by the International Energy Agency, Nigeria’s 86 million is the largest number of people in the world without access to electricity”, Director-General (DG) of the Association, Segun Ajayi-Kadir said.

He noted that the current power supply across the country is totally apparently inadequate to satisfy the energy requirements of the manufacturing sector and the entire population.

“As the largest energy access deficit in the world, Nigeria’s shortage of electricity supply has been identified as a hindrance to the profitability of manufacturers with an annual economic loss valued at about N10.1 trillion or two per cent share of the country’s GDP,” he said.

The MAN DG, therefore backs the ongoing electricity industry reforms of the present administration saying a stable power sector will guarantee sustainable economic growth and development.

The manufacturers lamented the unfavourable situation in the power sector has placed Nigeria among the worst countries to do business with a rank of 171 out of 190.

Ajayi-Kadir, while assessing the possible impact of the Electricity Act 2023 signed by President Bola Tinubu, said the Act, if well implemented, promises to be a major game-changer for the manufacturing sector as it would address the numerous constraints within the sector.

Ajayi-Kadir, stated that the Electricity Act 2023 has favourable implications for the manufacturing sector as it will help reduce cost of alternative energy, competitive and lower electricity tariff, improvement in inflow of Foreign Direct Investment (FDI) and manufacturing performance.

He noted further that it will help increase Internally Generated Revenue (IGR), improved infrastructure and less tax burden on manufacturers, more investment in renewables, backward integration and energy security, and stable power supply and proper planning.

Ajayi-Kadir recalled that over the past decades, the Nigerian power sector has encountered much turbulence in its electricity value chain due to poor policy enforcement, over-regulation, instability of gas supply and bottlenecks in its transmission network.

“These problems have culminated into erratic electricity supply, frequent power outages and persistent collapses of the national grid. For many years, the situation has stunted the growth of the economy.

Ajayi-Kadir, however, stated that notwithstanding, the Electricity Act 2023, if well implemented promises to be a major game changer for the manufacturing sector through some favourable implications.

He said for instance, that it will reduce cost of alternative energy, pointed out, for instance, that last year, total amount spent by members of MAN on alternative energy surged from N77.21 billion in 2021 to N144.47 billion.

‘If fully implemented to the letter, the new Electricity Act will see to the drastic fall in the cost of alternative energy incurred by our members and we expect this to boost our profit margin,’ Ajayi-Kadir said.

While also noting that the new Act will usher in a regime of competition and lower electricity tariffs, the DG, said as an advocacy Association, MAN has always pushed for the need to charge cost-reflective electricity tariffs to avoid extortion of its members.

“Fortunately, it is of great delight that this new Act fits like a glove as it will help actualize a cost-reflective tariff considering the healthy price competition it will bring between the states and private investors,” he stated.

 The Naira on Tuesday appreciated against the dollar at the Investors and Exporters window exchanging at N756.61.

The Naira gained by 1.79 percent when compared with N770.38 it was exchanged to the dollar on Monday.

The open indicative rate closed at N701.75 to the dollar on Tuesday.

An exchange rate of N781 to the dollar was the highest rate recorded within the day’s trading before it settled at N756.61.

The Naira sold for as low as 465 to the dollar within the day’s trading.

A total of 134.47 million dollars was traded at the official Investors and Exporters window on Tuesday. 

The Nigeria Export Processing Zones Authority (NEPZA) has attracted 346.6 million dollars in Foreign Direct Investments (FDI) from 2020 to the first quarter of 2023 through the free trade zones scheme.

The Managing Director of NEPZA, Prof. Adesoji Adesugba, said this at a briefing with the Commerce and Industry Correspondent Association of Nigeria (CICAN) in Abuja.

While giving an overview of his performance between 2020 and 2023, Adesugba said that NEPZA also attracted N360.7 billion in local direct investments to the Nigerian economy during the same period.

The NEPZA boss said that trade zones in the country generated 30,741 employment from 2020 to the first quarter of 2023, adding that skills transfer within the 39 months period was put at 8,157.

He expressed concern that out of 55 free trade zones in the country, only 30 are functional while others are being refurbished or constructed for operations.

According to him, Nigeria can do more by providing enabling environment for trade zones to turn around the economic fortunes of the country.

“So far we have 541 enterprises operating in the free trade zones but we need to be more aggressive in making Nigeria’s free trade zones more enterprising as the target is to have at least 10,000 free trade zones.

“Ogun and Delta are already leading the way. This is very important because these zones not only serve Nigeria but also the African continent with over 70,000 jobs being created,” he said.

Adesugba said that NEPZA approached the Central Bank of Nigeria (CBN) with a proposal to have a bank administering the operations and transactions at the free trade zones.

He expressed optimism that the CBN would approve the Authority’s proposal.

Adesugba also said efforts were in place to drive a robust free trade zone operation in Nigeria by liaising with the Nigerian Stock Exchange (NSE).

According to him, NEPZA is working with the Nigerian Stock Exchange to have a speedy listing of companies of free trade zones on the stock exchange.

“All stakeholders have agreed and we are only waiting for the endorsement of the Federal Ministry of Justice. The plan is to have this achieved within the first 100 days of the administration of President Bola Tinubu,” he said.