Business
FG okays finance bill, to cut import duty on buses, others
The Federal Government plans to reduce the import duties and levies being paid on buses, tractors and other vehicles used for mass transit as a way to cut the cost of transportation and reduce inflation rate in the country.
This is part of the package of the new finance bill approved by the Federal Executive Council on Wednesday.
Minister of Finance, Budget And National Planning, Zainab Ahmed, gave the indication while speaking with state house correspondents after the FEC meeting in Abuja, adding that bill would now be transmitted to the National Assembly for consideration and passage into law.
Ahmed said the bill was coming with some reforms that would improve the country’s tax laws and reduce some taxes especially for small businesses in addition to those already reduced in the 2019 finance bill.
She said, “These reforms will commence and will be closely followed by the cessation rules for small businesses as well as providing incentives for mass transit by reducing import duties and the levies for large tractors, buses and other vehicles. The reason for us is to reduce the cost of transportation, which is a major driver of inflation, especially food production.
“In the last finance bill, 2019, we reduced taxes from 30 per cent to 20 per cent for enterprises that have a turnover of between N25m and N100m.”
Ahmed also assured that there will be no increase in taxes, adding, “We also have proposed measures to create a legal instrument that supports a crisis intervention fund such as, the crisis intervention that we have had to put in place for COVID-19.
“So we hope that we don’t have other crises but we need to create such a fund so that it is available and it is legislated for. “We are also amending the Fiscal Responsibility Act to enhance fiscal efficiencies and also to control the cost revenue ratios of government-owned enterprises so that we will be able to realise more operating surpluses from these enterprises.”
The minister said, “In producing this bill, what we were doing was amending provisions in 13 different taxes which include the Capital Gains Tax Act, Companies Income Tax Act (CITA), Industrial Development (Income Tax Relief) Act (IIDITRA), Personal Income Tax Act (PITA), Tertiary Education Trust Fund Act, Customs & Excise Tariff (Consolidation) Act, Value Added Tax Act (VATA), Federal Inland Revenue Service (Establishment) Act, the Fiscal Responsibility Act and the Public Procurement Act.
“Some highlights of these provisions include amendments that we have had to make to provide incremental changes to tax laws. These amendments include providing fiscal relief for corporate taxpayers, for instance, by reducing the applicable minimum tax rate for two consecutive years; so from 0.5 per cent to 0.25 per cent.”
Business
Eko DisCo sells 60% stake to Transgrid Enerco
Eko DisCo sells 60% stake to Transgrid Enerco
Transgrid Enerco Limited has signed a share purchase agreement (SPA) with Eko Electricity Distribution Company (Eko DisCO) to acquire a 60% equity stake in the DisCO, Nigeria’s second-largest electricity distribution company.
Transgrid Enerco Limited was formed by North South Power Company Limited (NSP), Axxela Limited, and the Stanbic IBTC Infrastructure Growth Fund (SIIF).
The agreement was signed on Tuesday January 21, 2025, and the transaction will be completed in April 2025.
Reports earlier this month indicated that West Power and Gas Ltd (WPG), the parent company of Eko DisCo, was close to selling its entire stake after the North-South Power, Axxela, and Stanbic Infrastructure Fund consortium won the bid to acquire it.
It was stated that the bid to acquire Eko Disco started a year ago. While the amount in the deal was not stated, it is believed to be in excess of $200 million according to this news report.
Two of the companies — NSP and Axxela Limited — that formed the Transgrid Enerco consortium are in the Energy sector.
The NSP which owns Shiroro Dam will get direct control and insight into Eko DisCo’s operations enabling it to have a clear scope of the company’s cash flow distribution.
While Eko Disco meets remittance obligations to the market, the inability of other DisCos to meet these obligations means that power-generating companies like NSP do not get their full payments.
This acquisition allows NSP to have better control of how the company collects payment and perhaps influence other DisCos to employ more efficient payment collection tactics.
A similar deal occurred in 2023 when a Transcorp-led consortium — owners of Ughelli Power Plant — acquired 60% majority stake in Abuja DisCo.
Business
Telecom subscribers, FG heading for collision as NCC approves 50% tariff hike
Telecom subscribers, FG heading for collision as NCC approves 50% tariff hike
The Nigerian Communications Commission (NCC) on Monday announced a 50 per cent increase in tariff of services rendered by telecommunications companies (telcos) including calls and data use.
This is contained in a statement issued on Monday by the commission’s Director, Public Affairs, Reuben Muoka.
But the subscribers, under the umbrella body of Association of Telephone, Cable TV and Internet Subscribers of Nigeria (ATCIS-Nigeria) said the government had no power to fix prices in a liberalised market.
The NCC said the approval was pursuant to its power under Section 108 of the Nigerian Communications Act, 2003 (NCA) to regulate and approve tariff rates and charges by telecommunications operators.
The telecos had asked for approval for 100 percent increase owing to what they called unbearable cost of operation.
The regulator concurred the increase in tariff was in response to prevailing market conditions.
“The adjustment, capped at a maximum of 50 per cent of current tariffs, though lower than the over 100 per cent requested by some network operators, was arrived at taking into account ongoing industry reforms that will positively influence sustainability,” the commission said.
It further stated, “These adjustments will remain within the tariff bands stipulated in the 2013 NCC Cost Study, and requests will be reviewed on a case-by-case basis as is the Commission’s standard practice for tariff reviews.
“It will be implemented in strict adherence to the recently issued NCC Guidance on Tariff Simplification, 2024.
“Tariff rates have remained static since 2013, despite the increasing costs of operation faced by telecom operators.
“The approved adjustment is aimed at addressing the significant gap between operational costs and current tariffs while ensuring that the delivery of services to consumers is not compromised.”
The ATCIS-Nigeria said the Federal Government should not fix prices in a liberalised market.
The body, in a statement by its National Chairman, Sina Bilesanmi, said tariff hike was not one of the issues agreed at the last meeting with the regulator in Abuja.
Bilesanmi described telecoms sector pricing as a delicate area, and that the NCC should employ consultants to do data-based empirical cost analysis.
He said, “At the end of the meetings, we were expected to communicate an equilibrium price (a fair price agreeable to all) to the NCC for final approval,” adding that “any tariff hike will do more harm than good to the subscribers at a time they are struggling to cope.”
Business
Bitcoin hits record above $109,000 awaiting Trump
Bitcoin hits record above $109,000 awaiting Trump
Bitcoin hit a record high above $109,000 on Monday as Donald Trump, who has signalled plans to deregulate the cryptocurrency sector, prepares to be sworn in as US president.
Bitcoin surged to reach an all-time peak of $109,241 ahead of Trump’s inauguration ceremony, before falling back to $107,765 at around 0740 GMT.
The world’s biggest cryptocurrency has soared since Trump won the presidential election in November, with bitcoin surpassing $100,000 for the first time in early December.
It came after he nominated cryptocurrency backer Paul Atkins to head the US securities regulator, reinforcing optimism the new president will deregulate the sector.
Despite having once branded cryptocurrencies a “scam”, Trump changed his stance and was a major advocate of them during his election campaign.
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Over the weekend, he launched his own cryptocurrency, appropriately called $TRUMP, sparking feverish buying that sent its market capitalisation soaring to several billion dollars.
When bitcoin reached the landmark $100,000 level, Trump wrote on his Truth Social platform: “CONGRATULATIONS BITCOINERS!!! $100,000!!! YOU’RE WELCOME!!! Together, we will Make America Great Again!”
Cryptocurrencies have made headlines since their creation, from their extreme volatility to the collapse of several industry giants, foremost among them the FTX exchange platform.
Bitcoin was conceived in 2008 by a person or group writing under the name Satoshi Nakamoto.
It was pitched as a way to break free of mainstream financial institutions by establishing a decentralised platform for transactions.
The digital currency is created — or “mined” — as a reward when powerful computers solve complex problems to validate transactions made on a meddle-proof register known as the blockchain.
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