Business

FG considers suspension of sugar-sweetened beverage tax

Published

5 months ago

July 18, 2024

Nigeria’s Minister of Finance, Mr Wale Edun

FG considers suspension of sugar-sweetened beverage tax

The minister of finance and coordinating minister of the economy, Wale Edun has disclosed that the federal government is considering a temporary suspension of the sugar tax.

This was made known by Edun on Wednesday when the National Action on Sugar Reduction (NASR), a coalition of non-governmental organisations, visited him in Abuja.

Recall that the federal government on January 5, 2022 introduced an excise duty of N10/litre on all non-alcoholic, carbonated, and sweetened beverages.

The tax was introduced to discourage excessive consumption of sugar beverages which contributes to diabetes, obesity and other health issues.

Edun while speaking at the meeting said the potential temporary suspension of the sugar tax is under a six-month economic stabilisation plan.

“This measure aims to help beverage companies navigate the current economic difficulties without going under,” he said.

Edun said there are plans to reintroduce the tax once the economy stabilises, stressing that intervention aims to support the beverage industry “during this critical period”.

The minister said the implementation of the sugar tax would improve public health and generate additional revenue for the government.

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He agreed to the need for the presence of the tax, highlighting the dual pressures on beverage companies regarding job creation and poverty reduction, and the negative health consequences of their products.

Edun said while job creation by these companies was a positive outcome, the consumption of SSBs carries significant public health costs.

The minister said the government’s tax revenue from SSBs must be balanced against industry needs, including pricing and the cost of living.

He likened the arguments against the SSB tax to those made in the past against tobacco taxation, underscoring the importance of data-driven analysis in shaping public policy.

Edun said while the government is not in favour of companies selling unhealthy products, it recognises the need to support businesses and help people cope with the current cost of living.

“We support your need for revenue, but we must find a balance,” he said.

“The increase in foreign exchange rates is being passed on to consumers.

“While the official exchange rate was artificially pegged, products are often priced at the parallel market rate, meaning companies do not pass on the actual exchange rate to customers.”

Edun also encouraged the coalition and advocacy groups to continue providing incisive studies and robust data to strengthen the case for the sugar tax.

Speaking on behalf of the coalition, Bernard Enyia, co-chair of the NASR coalition, said the costs of insulin and diabetes care had doubled in the country.

Enyia, who is also the vice-president of the Diabetes Association of Nigeria, said the consumption of SSBs is linked to various health issues, including obesity and dental problems.

He said public health costs associated with these conditions are significant, impacting healthcare systems and reducing overall productivity.

FG considers suspension of sugar-sweetened beverage tax

Railway

Lagos Rail Mass Transit part of FG free train ride – NRC

Published

9 hours ago

December 21, 2024

Trends Admin

Lagos Rail Mass Transit part of FG free train ride – NRC

The Nigerian Railway Corporation (NRC) has disclosed that the Lagos Rail Mass Transit (LRMT) trains are included in the Federal Government’s free train ride initiative for the Christmas and New Year celebrations.

The LRMT, which currently includes the Phase 1 Blue Line Rail and the Phase 1 of the Red Line Rail, operates under the Lagos Metropolitan Area Transport Authority (LAMATA).

This announcement was made by Ben Iloanusi, the Acting Managing Director of the NRC, during an interview on NTA News TV on Friday, following the launch of the initiative earlier that day.

While Iloanusi stated that Phase 1 of both the Blue Line and Red Line Rail projects are part of the program, LAMATA has yet to confirm this inclusion.

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Iloanusi outlined the other routes benefiting from the scheme, which include the Lagos-Ibadan Train Service, Kaduna-Abuja Train Service, Warri-Itakpe Train Service, Port Harcourt-Aba Train Service, and the Bola Ahmed Tinubu Mass Transit in Lagos. Notably, little was previously known about the Bola Ahmed Tinubu Mass Transit service until this disclosure.

“Let me mention the routes where this free train service is happening. We have the Lagos-Ibadan Train Service, we have the Kaduna-Abuja Train Service, we have the Warri-Itakpe Train Service, we have the Lagos Rail Mass Transit trains, we have the Port Harcourt-Aba Train Service, and we have what we call the Bola Ahmed Tinubu Mass Transit, which is also in Lagos,” he stated.

Iloanusi provided operational updates, stating that passengers nationwide can access free tickets online or, for those unable to do so, at train stations where they will be profiled and validated.

He noted that passengers using NRC-managed services (excluding the Lagos Rail Mass Transit) should reserve tickets via the official website, www.nrc.gov.ng, with a valid ID required. He also advised travelers to plan, arrive on time, and bring valid identification.

Lagos Rail Mass Transit part of FG free train ride – NRC

Business

NNPC denies claim of Port Harcourt refinery shutdown

Published

10 hours ago

December 21, 2024

Trends Admin

Port Harcourt refinery

NNPC denies claim of Port Harcourt refinery shutdown

The Nigerian National Petroleum Company Limited (NNPCL) has denied claims in media reports that the newly refurbished Port Harcourt refinery has shut down.

The national oil company denied the claim in a press release issued by its Chief Corporate Communications Officer, Olufemi Soneye, on Saturday.

Soneye said the claim was false and urged Nigerians to disregard it. He stressed that the Port-Harcourt Refinery is fully operational.

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The statement read, “The attention of the Nigerian National Petroleum Company Limited (NNPC Ltd.) has been drawn to reports in a section of the media alleging that the Old Port Harcourt Refinery which was re-streamed two months ago has been shut down.

“We wish to clarify that such reports are totally false as the refinery is fully operational as verified a few days ago by former Group Managing Directors of NNPC.”

He noted that preparation for the day’s loading operation is currently ongoing, and added that claims of the shutdown are “figments of the imagination of those who want to create artificial scarcity and rip-off Nigerians.”

NNPC denies claim of Port Harcourt refinery shutdown

Business

CBN permits BDCs to buy up to $25,000 FX weekly from NFEM

Published

2 days ago

December 20, 2024

Trends Admin

CBN Governor, Olayemi Cardoso

CBN permits BDCs to buy up to $25,000 FX weekly from NFEM

The Central Bank of Nigeria (CBN) has granted Bureau de Change (BDC) operators temporary permission to purchase up to $25,000 weekly in foreign exchange (FX) from the Nigerian Foreign Exchange Market (NFEM).

This move, detailed in a circular dated December 19, 2024, is designed to meet seasonal retail demand for FX during the holiday period.

The circular was signed by T.G. Allu, on behalf of the Acting Director of the Trade and Exchange Department.

The arrangement will be in effect from December 19, 2024, to January 30, 2025.

Under the directive, BDCs may purchase FX from a single Authorized Dealer of their choice, provided they fully fund their accounts before accessing the market.

Transactions to occur at the prevailing NFEM rate

The transactions will occur at the prevailing NFEM rate, and BDCs are required to adhere to a maximum 1% spread when pricing FX for retail end-users.

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All transactions conducted under this scheme must be reported to the CBN’s Trade and Exchange Department.

The circular read in part:

“In order to meet expected seasonal demand for foreign exchange, the CBN is allowing a temporary access for all existing BDCs to the NFEM for the purchase of FX from Authorised Dealers, subject to a weekly cap of USD 25,000.00 (Twenty-five thousand dollars only).

This window will be open between December 19, 2024 to January 30, 2025.

“BDC operators can purchase FX under this arrangement from only one Authorized Dealer of their choice and will be required to fully fund their account before accessing the market at the prevailing NFEM rate. All transactions with BDCs should be reported to the Trade and Exchange department, and a maximum spread of 1% is allowed on the pricing offered by BDCs to retail end-users.”

The CBN assured the general public that PTA (Personal Travel Allowance) and BTA (Business Travel Allowance) remain available through banks for legitimate travel and business needs.”

These transactions are to be conducted at “market-determined exchange rates” within the NFEM framework.

This initiative reflects the CBN’s strategy to stabilize the FX market and manage seasonal surges in demand.