NGX Group achieves impressive N700m profit before tax in H1 2023

The Nigerian Exchange Group Plc (NGX Group) on Friday said it recorded a profit before tax of 700 million in its unaudited results for the half year ended June 30. Mr Oscar Onyema, the Group Managing Director/Chief Executive Officer of NGX Group, said in a statement made available on Friday in Lagos that the group demonstrated resilience by the result. Onyema said that the group’s half-year financial results for the ongoing year reflects the impact of economic headwinds. He said with market friendly pronouncements, already made by the new government, trading and listing activities would continue the positive impact experienced in June. “Consistent with our strategic objective to maximise shareholder value, the Board of Directors has consented to an interim dividend of 25k per ordinary share of 50k, which translates to a total payout of N495.53 million. “This initiative underscores better flow through of dividend from an associate company and first-time dividend payment from our flagship subsidiary. “It also emphasises our continued commitment to working collaboratively with our shareholders and other stakeholders in creating and distributing value, even in challenging market conditions,” he said. According to him, the group’s gross earnings recorded a decrease of 12.5 per cent to N3.70 billion from N4.22 billion as of June 2022. Onyema said that other income increased by 24.9 per cent to N490 million from N393 million in the same period. Onyema said that the NGX group’s revenue decreased by 16.3 per cent to N3.2 billion in June from N3.82 billion recorded in June 2022. He noted that the record was driven by 14.6 per cent decline in treasury investment income, which is 27.1 per cent of revenue to N869 million in June. The managing director noted that the record was relative to N1.02 million in the comparative period in 2022, primarily driven by a comparative reduction in its treasury holdings year-over-year. Onyema said the group’s transaction fees recorded 21.2 percent decline, which is 57.2 percent of revenue to N1.83 million in June from N2.32 million recorded in June 2022, due to a drop in trading activities in the Exchange He stated that the group recorded 6.7 percent increase in listing fees, which is 12.1 percent of revenue to N388.1 million in June from N363.8 million in June 2022. According to him, the increase was buoyed by improved listing on the Exchange in the first half of the year, which was relative to the first half of 2022. Onyema said, the group’s rental income, which is 2.2 percent of revenue earned from NGX Real Estate lease of office floor spaces recorded 38.6 percent increase from N51.8 million in June 2022 to N71.7 million as of June. He said that the group recorded 39.5 percent decline in other fees, indicating 1.3 percent of its revenue to N42.1 million in June from N69.7 million in June 2022. According to him, this represents rental income from the trading floor, annual charges from brokers, dealing licenses, and membership fees earned by the group. The managing director stated that the group recorded 33.3 percent decline in operating profit of N1.08 million in June from N1.61 million in June 2022, as a result of the 16.3 percent decline in revenue year-on-year. “Profit before income tax declined by 40.6 percent to N726 million in June from N1.22 million in the corresponding period of 2022, due to a reduction in the top line year-on-year. “Profit after income tax declined by 45.9 percent to N444.1 million from N820.2 million. This also resulted in a decline in profit after tax margin to 12.03 percent from 19.45 percent recorded in June 2022. “Total assets decreased by 3.7 percent to N54.94 billion from N57.06 billion in December 2022, driven primarily by 33.1 percent decline in trade and other receivables to N712.86 million from N1.07 million in December 2022. “Also, moderated by a 5.31 percent growth in cash and cash equivalent to N5 billion from N4.75 billion in December 2022,” he said. According to him, the group’s total liabilities saw 12.3 percent reduction, falling from N20.3 billion in December 2022 to N17.8 billion. Onyema explained that the decrease was primarily due to the repayment of a term loan that was used to finance investments in selected associates.

CIT Returns: FIRS extends filing date till August 31st

In a bid to encourage compliance, the Federal Inland Revenue Service (FIRS) has extended the due date for filing Company Income Tax returns.  Special Assistant (Media & Communication) to the Executive Chairman of FIRS, Johannes Oluwatobi Wojuola, in a statement to journalists Monday, said the filing for CIT will not attract penalties or interest. The Service said: “Companies that were unable to file their Companies Income Tax returns for the 2023 year of assessment (YOA) that fell due on the 30th of June 2023 have been given up to 31st August, 2023 to submit their returns to the Federal Inland Revenue Service (FIRS).” According to the Service, it received numerous calls from companies requesting the extension of time to submit their Companies Income Tax (CIT) returns as they were unable to meet up with the deadline due on 30th June 2023.  A public notice signed by FIRS boss, Muhammed NAMI, notes that as a measure of goodwill and in line with relevant provisions of the Companies Income Tax Act, “all companies whose CIT returns for the 2023 year of assessment that fall due between 30th June and 31st August 2023 (both days inclusive) are given up to 31st August 2023 to submit the returns to the Service.” The FIRS noted that the relevant Companies’ Income Tax returns will not attract late filing penalties or interests if payments were made on or before 31st August 2023, noting further that where companies fail to file by the extended date, the penalty and interest for late payment will be computed from the original due date.  “The relevant CIT returns shall, therefore, not attract Late Filing Penalty or interest for late payment if submitted to the Service on or before 31st August 2023. “Where relevant CIT returns are not filed by the extended date, penalty and interest for late payment shall be computed from the original due date and not the extended date.” The Service also stated that the extension of the filing date is only for Companies’ Income Tax and does not include returns for withholding tax, value-added tax, and personal income tax (PAYE), among others.  “The Service invites all relevant taxpayers to take the opportunity afforded by this extension to submit their CIT returns within the specified time, pay the taxes due and avoid payment of penalty and interest,” the notice read.

Q1 2023: FG rakes in N709.59bn VAT

Nigeria’s aggregate Value Added Tax (VAT) for Q1 2023 has been reported at N709.59 billion, the National Bureau of Statistics (NBS), has said.  According to the NBS Value Added Tax report for Q1, 2023, a growth rate of 1.75 percent on a quarter-on-quarter basis from N697.38 billion in Q4 2022. Local payments recorded were N436.10 billion, Foreign VAT payments were N151.13 billion, while import VAT contributed N122.37 billion in Q1 2023. On a quarter-on-quarter basis, the activities of households as employers, undifferentiated goods- and services producing activities of households for own use recorded the highest growth rate with 349.86%, followed by construction with 95.64%. On the other hand, the report noted that activities of extraterritorial organizations and bodies had the lowest growth rate with–53.54%, followed by real estate activities with– 47.01%. In terms of sectoral contributions, the top three largest shares in Q1 2023 were manufacturing with 29.65%; information and communication with 19.29%; and mining & quarrying with 12.24%. The report said: “Conversely, activities of extraterritorial organizations and bodies recorded the least share with 0.02%, followed by activities of households as employers, undifferentiated goods- and services-producing activities of households for own use with 0.03%; and water supply, sewerage, waste management, and remediation activities with 0.04%.” However, on a year-on-year basis, VAT collections in Q1 2023 increased by 20.56% from Q1 2022.  Similarly, aggregate Company Income Tax (CIT) for the first quarter of 2023 was reported at N469.01 billion, indicating a growth rate of -37.79% on a quarter-on-quarter basis from N753.88 billion in Q4 2022. According to the NBS, local payments received were N300.78 billion, while Foreign CIT payment contributed N168.23 billion in Q1 2023. On a quarter-on-quarter basis, the financial and insurance activities recorded the highest growth rate with 50.42 per cent, followed by construction with 42.32 per cent. “On the other hand, water supply, sewerage, waste management, and  activities had the lowest growth rate with – 69.38%, followed by other service activities with -60.13%. In terms of sectoral contributions, the top three largest shares in Q1 2023 were financial & insurance activities with 22.94%; manufacturing with 20.91%; and information and communication with 11.89%. “Conversely, the activities of households as employers, undifferentiated goods-and services-producing activities of households for own use recorded the least share with 0.01%, followed by water supply, sewerage, waste management, and remediation activities with 0.04%; and activities of extraterritorial organizations and bodies with 0.12%. “However, on a year-on-year basis, CIT collections in Q1 2023 decreased by 14.96% from Q1 2022,” the NBS stated.