Tinubu Orders Speedy Implementation Of Tax Reforms Report

President Bola Tinubu has instructed his Special Adviser on Policy Coordination, Hadiza Usman, to work with the Office of the Secretary to the Government of the Federation to coordinate the recommendations of the Presidential Fiscal Policy and Tax Reforms Committee for swift implementation across all Ministries, Departments, and Agencies.  This directive was issued during a meeting with the Chairman of the reforms committee, Mr. Taiwo Oyedele, who presented a 30-day report on “quick wins” at the Aso Rock Villa in Abuja. Special Adviser to the President on Media and Publicity, Ajuri Ngelale, revealed that President Tinubu met with Mr. Zack Adedeji, the Acting Chairman of the Federal Inland Revenue Service, and Mr. Taiwo Oyedele, the Chairman of the tax policy review committee.  The President emphasized the need for effective synergy in implementing tax policy recommendations across government institutions. President Tinubu has also prioritized the recommendations of the tax policy review committee at the next Federal Executive Council meeting scheduled for Monday, October 30, 2023. The aim is to expand the tax net, reach the 18% tax-to-GDP threshold, and enhance public service provision without burdening vulnerable segments of the population. The Presidential Committee on Fiscal Policy and Tax Reforms, established on July 7, 2023, is responsible for tax law reform, fiscal policy coordination, harmonization of taxes, and revenue administration. Its mission is to improve tax morale, promote a healthy tax culture, and encourage voluntary compliance with tax regulations by utilizing tax and other revenues effectively.

FEC Approves Creation Of $5bn Humanitarian, Poverty Alleviation Trust Fund

The Federal Executive Council (FEC) has approved the establishment of the Humanitarian and Poverty Alleviation Trust Fund to raise 5 billion dollars annually. The Minister of Humanitarian Affairs and Poverty Alleviation, Dr Betta Edu, disclosed this while briefing State House Correspondents on the outcome of the FEC meeting, held on Monday, at the Presidential Villa, Abuja. Edu said: “Every year we hope to be able to raise at least 5 billion dollars within this fund and this is from the various fund and sources. “We are hopeful that with the creation of this funding, we can sit down with all the key stakeholders including other ministries and actually work out the full modalities of implementation in Nigeria”. The minister expressed gratitude to President Bola Tinubu for the approval for the creation of the Humanitarian and Poverty Alleviation Trust Fund. “The council approved for the establishment of the Humanitarian and Poverty Alleviation Trust fund to actually be put together under a governing board. “And then of course, the implementation of that humanitarian and poverty trust fund, would be carefully worked out by members of the committee. “Of course, it will involve the Minister of Finance and other ministers that are relevant to the process. This is a flexible form of financing that is supposed to help Nigeria adequately respond to humanitarian crisis. “This will also respond to challenges as well as adequately address the issue of poverty in Nigeria and bring victory for the poor and indeed, bring help and succor which the Renewed Hope Agenda stands for,” she said. Edu further said that the fund was a flexible form of financing that could help the government get contributions from different sectors. She added that the fund would get contributions from the government, private sector, development partners, philanthropic individuals and other innovative form of funding. “This is to allow for emergency response to humanitarian crisis in Nigeria. Every other day we hear about crisis, the flood and the rest of it. So, we need to be able to respond adequately as a country. “Beyond this, the issue of poverty reduction is one of the agenda of the President Bola Tinubu in his eight-point agenda and we have to tackle it headlong,” she said The minister also revealed that the FEC has ratified the protocol on the protection of the rights of older persons in the country. “The Federal Executive Council, where the chairman of Council and members of council took decisions to ratify the protocol on the protection of the rights of older persons in Nigeria. “We have signed up to the African Charter and this has made us one of the countries within Africa that has approved that older people be protected and should not be discriminated against at any level. “And this gives them a lot of protection and the government of President Bola Tinubu is interested in their welfare and protecting their rights,” the minister said.

Nigeria, Angola Strengthen Bilateral Economic Ties 

Nigeria and Angola, in an effort to enhance economic growth and promote bilateral trade, have strengthened their cooperation. This was revealed during the inaugural Angola-Nigeria Business Forum held in Abuja recently. Speaking during the business forum in Abuja, the Secretary of State for International Cooperation and Angolan Communities, Domingos Lopes, who represented the Minister of External Relations, Angola, His Excellency Téte Antonio, stated that Angola will invest more in strengthening economic and commercial relationship with Nigeria in other to gain vast experience in the diversification of economic production. Angola’s Ambassador, Mr. Jose Bamoquina Zau, highlighted the determination to bring a significant number of Angolan investors to Nigeria, fostering strong partnerships in various sectors, including manufacturing, mining, oil and gas, commerce, tourism, and education. Nigeria’s Minister of Information and National Orientation, Alhaji Mohammed Idris, affirmed Nigeria’s eagerness to support Angola’s domestic and foreign aspirations, expecting reciprocity.  An 8-man Angola-Nigeria Business Council was inaugurated during the event. During her vote of thanks, the president of the Angola-Nigeria Business Council, Fifi Ejindu, said the council was established to serve as a driver for economic cooperation between the two countries, with the private sector of both nations taking the lead. She said, “We will continue in the council to seek opportunities for investment and support entrepreneurship on a global level. So, the job has just begun, but I assure you that we are very committed to this cause.”

Single Digit Interest Rate Will Transform Nigeria’s Agribusiness –Obasanjo

Former President Olusegun Obasanjo has said that a single digit interest rate on agricultural loans will help transform the agribusiness in the country. Obasanjo who said this at the launch of Youths in Agribusiness project at the weekend in Abuja, said that interest rate of less than 10 per cent would empower youths to go to the bank to borrow money for agriculture. Speaking on the theme of the event: “Enabling Scaling of Innovative Technologies for Sustainable Food Solutions,” the former President urged the Federal Government to fashion out a way that will make it easy for youth to access finance at the right rate.   “I believe any interest that is more than single digit is not good enough for agriculture.” OBJ as he is fondly called noted that agricultural stakeholders have done tremendous work in providing the right seed, hybrid seed, high yielding seed and knowledge that can be used to transform the agribusiness sector. “But we need more of these scientific and technological products in the farmers’ hands so that farmers can be better on what they get in terms of yields,” he said. He said that food production, food security and nutritional security were very important in Nigeria and there was also a need to create jobs for the teeming population of youth in the country. On his part, Wouter Plomp, Netherlands Ambassador to Nigeria said the Youth Agribusiness Programme would be a three-year initiative inspired by Nigerian tenacity and a sprinkle of Dutch innovation to support 8000 young agri-preneurs. He said the goal was to combat food insecurity by empowering youths to get access to finance and connect young agri-preneurs with local and international markets. According to him, the aim is not only to ensure Nigeria’s food security, but also place the nation at the forefront of global agricultural innovation. The Minister of Agriculture and Food Security, Sen. Abubakar Kyari, said the 2023 World Food Day campaign took water action for food by encouraging its wise utilisation to ensure stability in food security. The minister, who was represented by Engr. Adegbenro Adebiyi, Director Agribusiness and Market Development, said the aim of the project was to provide opportunities that would save and restore livelihoods and reduce food insecurity in the country.

Conducive Business Environment, Panacea To Ending Africa’s Youth Migration –Elumelu

The Founder/Chairman, Tony Elumelu Foundation (TEF), Mr. Tony Elumelu, has said that a conducive business environment is the panacea to Africa’s youth migration. Elumelu, who said this at a dinner held for visiting European Union Commissioner for International Partnerships, Ms Jutta Urpilainen in Abuja, added that youth migration can only stop when the continent’s leaders develop an economy where there is employment and prosperity. According to him, private sector players, development partners and the government must join hands saying that it was about time citizens were economically empowered rather than the occasional handouts that are doled out.   He said, “What is important is for all of us to demonstrate confidence and continue to push and advocate for better governance and the right enabling environment. “There are so many global private capitals looking for the right investment destination. If we turn our country to the right investment destination, capital will come and when capital comes, we are able to develop the country to create employment, jobs and fix insecurity and in that process, we create prosperity for posterity.” Speaking further, the TEF Founder said it was about time the EU and other development partners pool resources together to empower young Africans. “We want to see our young men and women live well in Africa in our lifetime and is this possible? Yes. But how do we make it possible? When all of us – successful rich Africans, friends of Africa like the EU – when we all team up to bring resources together, collaborate to prioritise young Africans, we will achieve that. “We believe the ultimate solution to insecurity is economic empowerment and we believe that in the 21st century, it is not about handouts but about economically empowering people so they can look after themselves.” Elumelu revealed that since its inception, the Foundation has spent over $100 million empowering over 18,000 young African entrepreneurs. According to him, they were able to create wealth through careful entrepreneurship empowerment. He said, “The Tony Elumelu Foundation has committed $100 million to impact 18,000 young African entrepreneurs by giving them a seed capital of $5,000 and training them for six weeks as well as providing mentors to coach them. They in turn have gone to create thousands of jobs, which is the impact we want to see. “The impact report of the foundation shows that it has created over 400,000 jobs and we will continue to invest more in youth entrepreneurship.” He said the partnership with the EU will further deepen the collaboration as the Foundation seeks to attract investments into the continent. In her remarks, Urpilainen said the EU is committed to its partnership with TEF, noting that the Foundation was doing a great job through the empowerment of young entrepreneurs across the continent. She said, “I wanted to get rid of this kind of donor-reciFoundation was doing a great job of pient relationship where we as donors tell and impose what we expect from Africans under our partnerships; “So, we really wanted to change the paradigm and create mutually beneficial partnerships. “And in order to be able to succeed, we also created this Global Gateway Investment Strategy and it was adopted two years ago.

FX Policy: LCCI Tasks CBN On Creative Financing Options

The Lagos Chamber of Commerce and Industry (LCCI) have urged the CBN to adopt creative financing options for clearing the short to medium-term backlog of foreign exchange. LCCI noted that the new FX policy of the CBN unbanning the 43 items that were excluded from accessing FX at the official market is a market-friendly step towards unifying the exchange rates and is expected to curtail inflationary pressures in the short term. The body also said the policy change was expected to reduce the demand pressure on the parallel market and ensure there is a gradual convergence in FX market rates. The President/Chairman of Council, LCCI, Asiwaju Michael Olawale-Cole, said this in a statement at the weekend, adding that the policy would promote orderliness and professional conduct by all market participants to ensure market forces determine exchange rates on a willing buyer- willing seller principle. “The Chamber recommends that the CBN adopt creative financing options for clearing the short to medium-term backlog and establish a mechanism to address forex unification under the current system. “The Chamber believes the authorities must pursue the right monetary policy reforms to improve the investment climate and boost investor confidence. We call on the CBN to ensure transparency and accountability in banks’ foreign exchange dealings at the Investors & Exporters window”. Recall that the CBN recently lifted the forex ban on 43 items and also promised to intervene in the FX market from “time to time”. The apex bank had in 2015 restricted the items from accessing FX from the I&E window, saying they were “not valid for foreign exchange and could be produced in the country. Items affected include rice, cement, palm kernel, meat and processed meat products, poultry, soap, and cosmetics among others. But in a statement, the bank’s Director of Corporate Communications Isa AbdulMumin said the ban has been lifted. “As part of its responsibility to ensure price stability, the CBN will boost liquidity in the Nigerian Foreign Exchange Market by interventions from time to time. As market liquidity improves, these CBN interventions will gradually decrease,” the Thursday statement read. “As part of its responsibility to ensure price stability, the CBN will boost liquidity in the Nigerian Foreign Exchange Market by interventions from time to time. As market liquidity improves, these CBN interventions will gradually decrease.” “The CBN has set as one of its goals the attainment of a single FX market. Consultation is ongoing with market participants to achieve this goal,” CBN added.

SMEDAN Empowers 40 Entrepreneurs With Laptops, ICT Skills

The Small and Medium Enterprise Development Agency of Nigeria (SMEDAN) has trained and empowered 40 entrepreneurs with Information Communication Technology (ICT) and digital skills in Ebonyi. The Director-General of SMEDAN, Dr Olawale Fasanya, said this during the closing ceremony of a three-day training and empowerment programme held in Abakaliki on Friday. The programme was targeted at young entrepreneurs to improve micro small and medium enterprises. Fasanya, who was represented by Mr Chigozie Asochukwu, SMEDAN Coordinator in Ebonyi, said that the importance of ICT in doing business cannot be over-emphasised. He said the empowerment programme, which was in collaboration with Dole International Company Ltd., was aimed at giving business owners e-commerce know-how to increase their contributions to the nation’s GDP. He reiterated the agency’s commitment to business growth, urging the beneficiaries to practice what they had learnt. “This will go a long way in enhancing productivity, customer engagement and give the entrepreneurs a competitive advantage in doing businesses. “It will help in digital knowledge and tools needed to grow businesses online as well as enable efficient communication, data management and analysis. “This is a three-day training and the participants were engaged in three module including Google digital skills, digital market fundamental and business formalisation,” Fasanya said. Mr Njoku Ozoemena, who spoke on behalf of “City Boys Movement”, said the training became necessary to enhance e-commerce in the country. Ozoemena hailed the Federal Government for putting up the programme and urged the trainees to utilise the knowledge. One of the beneficiaries, Kelechi Njoku, lauded SMEDAN for exposing them to modern skills for business and pledged to utilise what she had learnt. The agency later gave laptops to the trainees to enable them promote their businesses. 

Yuguda Tasks Private Sector On Infrastructure Funding

Director General of the Securities and Exchange Commission, Mr. Lamido Yuguda has tasked the private sector to rise up to the challenge of sourcing long term financing from the capital market that would fund the provision of infrastructure in the West African Sub region. Yuguda stated this at a pre-event press briefing on the forthcoming West Africa Capital Market Conference scheduled to hold in Lagos October 25-26 with the theme ‘Infrastructural deficit and sustainable financing in an integrated West Africa Capital Market’. According to Yuguda, “Infrastructure deficit refers to a situation where there is insufficient infrastructure relative to the needs of the population. Availability of infrastructure, such as power, telecommunications, roads, rail, schools, hospitals, shopping malls, hotels etc. is crucial to raising the living standards of the people”. He disclosed that in many countries, the responsibility for the provision of infrastructure has been steadily moving away from government to the private sector owing to increasing demand and reduced ability of the government to fund infrastructure alone, adding that the need to tackle the infrastructure deficit in the sub-region as well as embrace principles of sustainable finance to promote economic development are some of the issues to be discussed as the conference. The conference is being jointly organised by the  West Africa Securities Regulators Association (WASRA) comprising  the Securities and Exchange Commission (SEC) Nigeria, the Securities and Exchange Commission (SEC) Ghana, and Autorite de Marche’s Financiers or AMF-UMOA, in collaboration with Economic Community of West African States (ECOWAS), the West Africa Capital Market Integration Council (WACMIC), and the West African Monetary Institute (WAMI) are jointly organizing the 3rd biennial West Africa Capital Market Conference (WACMaC) 2023. The SEC boss said, “This deficit also poses a significant challenge to the region’s sustainable development. To address this gap, there is a growing need to adopt innovative financing mechanisms, and sustainable financing options to mobilize the desired funds to meet the region’s critical infrastructure needs, foster economic growth, and achieve sustainable development goals.  “The Conference will bring together a distinguished array of experts, regulators, policymakers, and industry leaders who will share their insights, experiences, and strategies to proffer solutions to the region’s massive infrastructure deficit. The WACMaC 2023 provides a unique platform to engage in meaningful discussions, share insights, and forge partnerships that will help shape the future of our capital markets. The DG added that this year’s conference is particularly significant, as over 300 stakeholders will converge at the Eko Hotels and Suites, Lagos from October 25-26, 2023 to hold discussions around the general theme with a view to contributing significantly to infrastructural development in Nigeria.

9 Years After, CBN Removes Restriction To FX On 43 Items

The Central Bank of Nigeria says it has removes restriction to foreign exchange placed on forty-three in 2015. According to a statement signed by Director, Corporate Communications, Isa AbdulMumin, importers of those items are now free to access the FX market to purchase foreign exchange. Former CBN Governor, Godwin Emefiele had in 2015, placed a restriction on 43 items that cannot access forex at the FX market. According to Emefiele, at the time, it was part of effort to encourage local production. “Importers of all the 43 items previously restricted by the 2015 Circular referenced TED/FEM/FPC/GEN/01/010 and its addendums are now allowed to purchase foreign exchange in the Nigerian Foreign Exchange Market,” the Apex Bank said. The regulator added that it will continue to promote orderliness and professional conduct by all participants in the Nigerian Foreign Exchange Market to ensure market forces determine exchange rates on a Willing Buyer – Willing Seller principle. “The CBN reiterates that the prevailing Foreign Exchange (FX) rates should be referenced from platforms such as the CBN website, FMDQ, and other recognised or appointed trading systems to promote price discovery, transparency, and credibility in the FX rates. “As part of its responsibility to ensure price stability, the CBN will boost liquidity in the Nigerian Foreign Exchange Market by interventions from time to time. As market liquidity improves, these CBN interventions will gradually decrease. “The CBN is committed to accelerating efforts to clear the FX backlog with existing participants and will continue dialogue with stakeholders to address the issue. “The CBN has set as one of its goals the attainment of a single FX market. Consultation is ongoing with market participants to achieve this goal. Participants and the general public are to be guided by the above,” it further said.

FG To Support Local Manufacturers With N75bn

Nigeria’s Vice President Kashim Shettima has said the federal government will support local manufacturers with N75 billion by March 2024 to strengthen the manufacturing sector. Shettima said this while declaring open the second National Conference on non-oil export organised by the Nigerian Export Promotion Council (NEPC) in Abuja. Represented by Dr Jumoke Oduwole, Special Adviser on Presidential Enabling Business Environment Council (PEBEC) and Investment, Shettima said N75 billion was earmarked to support 100,000 start-ups and Micro Small and Medium Enterprises (MSMEs) at single digit interest rates. The two-day conference is with the theme, “Building a Sustainable National Economy Through Non-Oil Export.” According to him, the federal government is also committed to providing necessary infrastructure that will support increased export of non-oil commodities. “There can never be a better time to envision a conference of this nature than now; a time to reflect on non-oil export. “Over the years, the nation’s major source had been 80 per cent dependent on oil revenue. “It is clear that as a nation, we can’t afford to work on this uncharted path. “Today, we find ourselves in protracted situation and challenges. All indications point to the fact that we have to prioritise our non-oil export. “And this administration will give every support to boost non-oil export,” he said. While pledging support towards made-in-Nigeria products, he assured of federal government’s commitment to provide infrastructure that would facilitate export trade. “We will prioritise capacity building for MSMEs, we will invest in human capital development. “We need to work diligently to utilise opportunity provided by African Continental Free Trade Area (AfCFTA) by deepening our existing values and expanding our forex earnings,” he said. Earlier, the Minister of Industry, Trade and Investment, Dr Doris Uzoka-Anite, expressed concern that Nigeria operated a mono-economy for long. The minister, however, expressed joy that government’s diversification efforts were beginning to yield positive results. “Nigerian non-oil exports grew by almost 40 per cent in 2022, reaching 4.820 billion dollars. “Semi-processed and manufactured products accounted for almost 37 per cent of these exports, surpassing agriculture’s 30 per cent. “This is a big step in the right direction. We no longer have the luxury of business as usual when it comes to the business of making sure Nigeria succeeds. “We can no longer afford to export raw materials cheaply and import finished products at premium prices. “That train has stopped and will not be starting again. Our focus for exports is locally manufactured value-added products that create both business and employment,” she said. Dr Ezra Yakusak, the Chief Executive Officer of NEPC, said the Council had significantly increased the contribution of the non-oil sector to the Nigerian economy. According to him, for first time, the performance of the non-oil export grew by 39.91 per cent in 2022 to 4.820 billion with about 214 different products exported, ranging from manufactured, semi-processed, solid minerals to raw agricultural products. He said Nigerian products were exported to 122 countries, and appealed to the federal government to address the strange disease afflicting ginger farm in Kaduna State. “I will not do justice to this address if I do not present the challenges being faced by farmers and exporters of ginger in Nigeria. “It is a known fact that Nigeria’s ginger has been adjudged as the best in the world due its unique aroma, pungency and high oleorosin content. “This makes Nigeria one of the largest exporters of ginger in the world.  However, the Council received several complaints of the outbreak of a strange disease ravaging ginger farms in Kaduna State. “So far, about 2,503.9 hectares of farmland have been affected with an estimated loss of over N8 billion,” he said.