Economy
Heavy Taxes, Levies Making Nigeria Pariah to Investment—NECA DG
By Adedapo Adesanya
The Director-General of Nigerian Employees Consultative Association (NECA), Mr Adewale-Smatt Oyerinde, has said organised businesses are bleeding and continue to struggle for survival, and could make Nigeria a pariah to investment.
This is as he urged the federal government to urgently suspend the astronomical increase in excise duty and the introduction of new taxes and levies across the board.
Mr Oyerinde, according to the News Agency of Nigeria, said that the suspension of the increase was imperative as “The Road-map as previously agreed on Excise should be adhered to, in the spirit of policy consistency.
“The increases, if implemented, will be counter-productive as it will aggravate the current rate of unemployment, encourage smuggling and discourage Foreign Direct Investment (FDI).
“It will also reduce the purchasing power of Nigerians and actively promote the relocation of businesses to other countries (Corporate-Japa).
“With the multi-dimensional challenges currently faced by organised businesses, a gift that Nigerians do not want is an increase in taxes.’
He also said that government should not leave behind a legacy of tax burdens that would endanger the fragile growth achieved in the economy on the altar of revenue generation.
He, however, advised the government to reappraise its adherence to the principles and spirits of fiscal discipline as enshrined in various legislations.
According to Mr Oyerinde, with over 60 different taxes, levies and fees paid by businesses annually in Nigeria, “we are fast becoming a pariah state to investors.”
“As the Voice of Organised Business in Nigeria and a critical stakeholder in Nigeria’s economic renaissance, we reaffirm our commitment to decent work, responsible enterprises and the protection of workers and enterprise rights through all legal and legitimate means.
The NECA boss also felicitated with the Nigerian workers as they celebrated the 2023 International Workers Day with the theme “Worker’s Rights and Socio-economic Justice”.
He said that the theme was apt as workers had continued to contribute to the economic and socio-political progress all over the world and Nigerian in particular.
“As the global economy continues to witness disruptions coupled with political upheaval in many regions, the need to continue to protect not only workers’ rights but also human and Enterprise rights cannot be over-emphasised.
“Worker’s rights encompass a range of issues, including living wages, decent work, access to medical care, safety and health at work, bridging gender gaps, and freedom from discrimination.
“These rights thrive in an environment that promotes socio-economic justice. All these are in the different International Labour Organisations (ILO) fundamental instruments, which Nigeria is a signatory to,’’ he said.
Mr Oyerinde added that it is a time of deep reflection on the state of the struggle across the past, present, and possible future.
According to him, this reflection will give us a clear scorecard of how we have really managed the struggle.
“This includes the struggle for enterprise’s sustainability and competitiveness, wealth creation and equitable distribution, and an environment where social and economic justice is guaranteed.
“As we appraise the past and navigate a path towards the future, we urge organised Labour and indeed all stakeholders that no effort should be spared in promoting and defending Institutions that have been created to advance Industrial Harmony and Social Dialogue.
“We must continue to deepen our engagement through Social Dialogue with the view of leaving a long-lasting legacy of productivity, equitable distribution of wealth and social justice for generations unborn,’’ he said.
He also called on the Organised Labour to continue to partner to advocate for a hospitable business environment that would ensure equitable distribution of wealth for the collective good.
Mr Oyerinde commended the government and other Social Partners on the recent approval of the draft Labour Bills by the Federal Executive Council (FEC).
“We urge expeditious action that will facilitate the passage of the Bill within the shortest possible time,‘’ he said.
By Dipo Olowookere
The Nigerian Exchange (NGX) Limited suffered a 0.11 per cent loss on Thursday after the bears made a comeback after being chased away by the bulls a day earlier.
The local bourse was under attack despite a positive market breadth index and strong investor sentiment after it ended with 29 appreciating stocks and 23 depreciating stocks.
Business Post observed that profit-taking in some mid-equities plunged Customs Street during the trading session, with Fidson shedding 9.60 per cent to trade at N17.90.
Ecobank Nigeria depreciated by 9.51 per cent to sell for N31.40, Guinea Insurance lost 8.33 per cent to quote at 66 Kobo, Prestige Assurance slipped by 7.50 per cent to N1.11, and Sunu Assurances crashed by 6.44 per cent to N5.52.
On the flip side, PZ Cussons gained 10.00 per cent to settle at N32.45, Oando improved by 10.00 per cent to N52.80, Honeywell Flour appreciated by 9.96 per cent to N13.03, Caverton jumped by 9.80 per cent to N2.69, and Livestock Feeds rose by 9.35 per cent to N6.90.
Yesterday, the energy counter appreciated by 0.88 per cent and was the only gainer among the key sectors of the market.
The insurance sector went down by 0.92 per cent, the banking index depreciated by 0.75 per cent, the industrial goods space crumbled by 0.43 per cent, and the consumer goods sector lost 0.17 per cent, while the commodity counter closed flat.
Consequently, the All-Share Index (ASI) decreased by 123.53 points to 107,675.46 points from 107,798.99 points and the market capitalisation retreated by N77 billion to N67.102 trillion from N67.179 trillion.
A total of 423.4 million equities worth N9.6 billion were traded in 11,112 deals on Thursday compared with the 245.5 million equities valued at N8.4 billion transacted in 10,098 deals on Wednesday, representing a rise in the trading volume, value, and number of deals by 72.46 per cent, 14.29 per cent and 10.04 per cent, apiece.
The activity chart was topped by FCMB with 102.3 million stocks valued at N1.1 billion, Zenith Bank transacted 33.3 million equities worth N1.6 billion, Access Holdings exchanged 31.2 million shares for N801.9 million, Jaiz Bank traded 24.4 million equities worth N82.0 million, and Caverton sold 20.9 million stocks valued at N54.6 million.
By Adedapo Adesanya
The federal government, the 36 states, and the 774 local government areas of the federation have shared a total of N1.703 trillion in revenue generated in January 2025.
This amount represents an increase of 19.6 per cent or N279 billion from the N1.424 trillion generated in December 2024.
This is according to a press release by the Director (Press and Public Relations) at the Office of the Accountant General of the Federation, Mr Bawa Mokwa, on Thursday,
The N1.703 trillion total distributable revenue comprises N749.727 billion in statutory revenue, N718.781 billion in Value Added Tax revenue, N20.548 billion from the Electronic Money Transfer Levy, and N214 billion in augmentation.
The statement was based on a communique issued by the Federation Account Allocation Committee (FAAC) after its monthly meeting for February 2025.
It noted that the total gross revenue amounted to N2.641 trillion, which was slightly higher than the N2.310 trillion recorded in the previous month.
The total deduction for cost of collection was N107.786 billion while total transfers, interventions, refunds and savings was N830.663 billion.
It was disclosed that the federal government received N552.591 billion, state governments were allocated N590.614 billion, and the Local Government Councils received N434.567 billion, while an additional N125.284 billion was shared with benefiting states as derivation revenue as 13 per cent of mineral revenue.
The statement further noted that the gross statutory revenue for the month under review stood at N1.848 trillion, an increase of N622.125 billion from the N1.226 trillion recorded a month earlier.
Gross VAT revenue for the month was N771.886 billion, rising by N122.325 billion from N649.561 billion in December.
From the N749.727 billion statutory revenue, the federal government got N343.612bn, the state governments were given N174.285 billion, and the councils received N134.366 billion, while N97.464 billion was also allocated to states benefiting from derivation revenue.
Further, from the N718.781 billion VAT revenue, the federal government received N107.817 billion, state governments were got N359.391 billion, and Local Government Councils shared N251.573 billion.
For the N20.548 billion Electronic Money Transfer Levy (EMTL), the federal government received N3.082 billion, state governments received N7.192 billion, and Local Government Councils received N10.274 billion.
The N214 billion augmentation was shared with the federal government receiving N98.080 billion, state governments receiving N49.747 billion, and Local Government Councils receiving N38.353 billion, while N27.820 billion was shared among the benefiting states as derivation revenue.
The communique also highlighted increases in collections from VAT, Petroleum Profit Tax, Companies Income Tax, Excise Duty, Import Duty, and CET Levies, while there was a significant decrease in EMTL and Oil and Gas Royalty receipts.
By Adedapo Adesanya
Oil prices rose more than 2 per cent on Thursday amid supply concerns after the US President, Mr Donald Trump, revoked a licence granted to US oil major, Chevron, to operate in Venezuela.
The news led Brent crude oil futures to spike by $1.53 or 2.1 per cent to $74.06 a barrel while the US West Texas Intermediate (WTI) crude oil futures increased by $1.64 or 2.4 per cent to $70.26.
The Chevron licence revocation means the company will no longer be able to export Venezuelan crude.
However, if Venezuelan state oil company, PDVSA, exports oil previously exported by Chevron, US refineries will be unable to buy it because of U.S. sanctions.
President Trump said this was due to the lack of electoral reform in the South American country alongside with insufficient action on migration.
Chevron has been exporting around 240,000 barrels of Venezuelan crude to the US daily after former US President Joe Biden granted them a waiver.
The amount constitutes around 25 per cent of the country’s total oil production and generates substantial revenues that stay in the Venezuelan economy.
Meanwhile, market analysts noted that the move could also lead to the negotiation of a fresh agreement between the Chevron and PDVSA to export crude to destinations other than the US.
This development could also impact the Organisation of the Petroleum Exporting Countries and its allies, OPEC+, to which Venezuela is a member.
Chevron’s exit could reduce Venezuela oil’s production, giving OPEC+ capacity to increase output.
However, investors were still keeping an eye on signs of a potential peace deal in Ukraine, which could result in higher Russian oil flows.
President Trump said Ukrainian President Volodymyr Zelenskiy will visit the US on Friday to sign an agreement on rare earth minerals.
However, the Ukrainian leader said the success of talks would hinge on continued US aid.
The market was pressured by news that US economic growth slowed in the fourth quarter amid cold weather and concerns that tariffs will hurt spending through higher prices.
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