No one can create jobs, grow economy under current interest rate – Dangote

President of the Dangote Group, Aliko Dangote, says the current interest rate of 26 per cent charged on bank loans is unfavourable for meaningful business growth.

Indeed, he said the high interest rate had made it difficult to create jobs to grow the economy.

He spoke on Tuesday during the opening session of a three-day summit organised by the Manufacturers Association of Nigeria (MAN) at the Banquet Hall of the State House, Abuja.

Dangote said many businesses could not cope with the current rate.

The Central Bank of Nigeria’s Monetary Policy Committee (MPC) had increased the Monetary Policy Rate (MPR) for the third straight time from 24.75 per cent to 26. 25 per cent.

Dangote said, “Nobody can create jobs with an interest rate of 30%. No growth will happen.”

He also called on the government to protect existing businesses in the country, especially manufacturers by providing an enabling environment for them to thrive.

According to him, an import-dependent country is equivalent to poverty importation.

“No power, no prosperity, no affordable financing, no growth, no development,” he lamented.

Dangote said for the government to address the challenges of unemployment, poverty and insecurity, the manufacturing sector must be empowered to function optimally.

MAN also criticised government policies and attitude, saying they were responsible for the low performance of the manufacturing sector in the country.

The event had in attendance Vice President Kashim Shettima and other government officials. President of MAN, Otunba Francis Meshioye, said over 70 manufacturers had exited the sector between 2019 and 2022.

He said it was time to take stock and rethink a way to support manufacturing businesses to achieve the agenda of the current administration.

Expect gazette exempting SMEs, farmers, manufacturers from paying withholding tax soon – Presidency

Newly approved withholding tax regulation exempting the Small and Medium Enterprises (SMEs), farmers and some manufacturers from paying withholding tax will be published in the official gazette in the coming days.

Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, disclosed this on Tuesday.

The new tax regime also includes a reduction of rates for businesses with low margins and measures to curb tax evasion.

Oyedele, in a post via X on Tuesday, said, “As part of the ongoing fiscal policy and tax reforms, a new withholding tax regime has been approved.

“The key changes introduced are to address the identified challenges and specifically include the exemption of small businesses from Withholding Tax compliance and reduced rates for businesses with low margins.

“Exemptions for manufacturers and producers such as farmers, measures to curb evasion and minimise tax avoidance.

“Ease of obtaining credit and utilisation of tax deducted at source, changes to reflect emerging issues and adopt global best practices and clarity on the timing of deduction and definition of key terms.”

Withholding tax (WHT) is an advance payment of income tax which may be used to offset or reduce tax liabilities, according to the Federal Inland Revenue Service (FIRS).

The WHT is deducted at varying rates ranging from five per cent to 10 per cent, depending on the transaction.

On June 3, Oyedele announced that the Federal Government had approved the exemption of small businesses earning N25 million and less from withholding tax.

Giving updates in a post on X on Tuesday, Oyedele said the approved regulation includes measures to curb evasion and minimise avoidance.

“Withholding tax was introduced into the Nigeria tax system in 1977 to serve as an advance payment of income tax on specified transactions,” he said.

“It was designed to provide the government with regular revenue flow and to serve as a means of curbing tax evasion.

“As the regime expanded over time to cover more transactions, various ambiguities and complications crept in.

“This resulted in many businesses, especially SMEs, being exposed to excessive burden of compliance and a strain on the working capital of low-margin businesses.”

Oyedele said some other unintended consequences included ambiguities regarding persons required to comply, eligible transactions, applicable rates, and timing of the obligation for remittance.

Carloha takes Chery Showroom to Ikeja City Mall, heart of Lagos, opens Thursday 

One of Nigeria’s fastest growing auto companies, Carloha Nigeria, is set to open Chery Showroom at the popular Ikeja City Mall, Lagos, as part of its expansion programme.

It announced in a statement that the spectacular Chery Showroom launch would take place on Thursday July 4, 2024.

“This landmark event promises to be a spectacular celebration of innovation, style, and automotive excellence,” it stated

It said the showroom would be smart and ultra-modern in every sense, showcasing cutting-edge technology, sleek designs and unparalleled performance.

It also said that the launch would offer plenty of fun for all new car enthusiasts.

Part of the statement read, “Whether you’re a car enthusiast, a potential buyer, or just looking for a fun day out, the Chery Showroom Opening is an event you won’t want to miss.

“The Chery Showroom at Ikeja City Mall is not only a place to buy a car, but also a destination for automotive enthusiasts, families, and anyone looking to explore the future of driving technology.

“With its prime location and state-of-the-art facilities, the showroom is set to become a hub of innovation and style in Lagos.”

Automobile industry experts and influencers will share their insights on the future of automotive technology and design with the audience at the event.

“Experience the thrill of driving a Chery! Our test drive sessions will allow you to get behind the wheel and feel the power, comfort, and innovation of Chery vehicles. Don’t miss out on this hands-on experience,” it stated.

As part of its package to celebrate its grand opening, Carloha said it would make vehicle ownership easy and accessible to its customers and prospects, including exclusive deals and discounts on all Chery models.

“Every Chery vehicle purchased from Carloha comes with six-year free services, and six-year warranty or 200,000 kilometres, whichever comes first.

The Sales and Marketing Director of Carloha, Mr. Joseph Omokhapue, said, “Opening a Chery Showroom in a shopping mall is a dream come true, as we can now reach some of our customers at the centre of Lagos, with Chery innovative technology, cutting-edge design, and superior performance.

He further said, “The Chery Showroom at Ikeja City Mall will not only be a place to buy a car but also a destination for automotive enthusiasts, families, and anyone looking to explore the future of driving technology.

“With its prime location and state-of-the-art facilities, the showroom is set to become a hub of innovation and style in Lagos.”

Amazing prices have also been arranged for customers visiting the Chery showroom at Ikeja City Mall.

“The Chery Showroom at Ikeja City Mall promises to be a premier destination for automotive enthusiasts and those looking for the perfect blend of style, performance, and innovat

ion,” the firm said.