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FG okays finance bill, to cut import duty on buses, others

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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.”

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I have sacks of new naira notes, says bandit, displays some in viral video

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As many Nigerians groan over inability to access funds from banks, a bandit kingpin terrorising communities in Kaduna has released a video clip showing off the redesigned naira notes.

In the video, Kachalla Baleri could be seen alongside some armed men displaying N1000 and N200 notes.

This is coming just as videos of some party goers spraying new naira notes are still trending.

The bandit kingpin who claimed to have used some of the new notes to buy ammunition said only God knows the amount of the new naira notes he has stored in sacks.

“We want to send a message to Nigerians, their leaders, and the masses, to be fair and just because of God and his holy prophet,” Baleri said.

“All the tribalism that is happening in the country will not solve anything unless things are done because of God.

“They (government) redesigned the naira, poor people who are innocent don’t even know about it. Some don’t even own up to N10,000. He has to wake up early in the morning to go and hustle.

“What of those who have millions in the cities? You see, it is between them. The money they are saying people are changing, we that are in the bush are changing it, some people who are in the cities haven’t even received it.

“But you see, the people they are referring to as terrorists have hold of the money. This is the new N1000 note, this is the new N200 note.

“We are just showing them a little out of what we have. We have plenty sacks of the new money and Only God knows the amount of the new notes that we have.”

A voice could be in the background of the video saying “I have N10 million at home”.

“We have bought ammunition that we will fight them (government), and we are waiting for what they will say next on the new naira notes,” Baleri added.

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BREAKING: CBN Issues fresh directive to banks on new naira notes

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The Central Bank of Nigeria (CBN) has directed deposit money banks (DMBs) to commence the payment of the redesigned naira notes over the counter, subject to a maximum daily payout limit of N20,000.

The directive is coming on the heels of business grinding to a halt over the scarcity of the redesigned notes, having deposited old notes with the commercial banks.

The CBN reiterated its commitment to Nigerians to ensure the effective distribution of the newly introduced naira banknotes, urging them to exercise patience as the CBN is working assiduously to address the challenge of queues at ATMs.

The statement which was signed by the Director Corporate Communication, Osita Nwanisobi, said the CBN observed with grave concern, the activities of persons who sell the newly redesigned banknotes and those who flagrantly abuse the legal tender by hurling wads of naira notes in the air and stamping on the currency at social functions.

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Nwanisobi said: “We have equally noticed the queues at Automated Teller Machines (ATMs) across the country and an upward trend in the cases of people stocking and aggregating the newly introduced banknotes they serially obtain from ATMs for reasons best known to them.

“Also worrisome are the reported cases of unregistered persons and non-bank officials swapping banknotes for members of the public, purportedly on behalf of the CBN.

“We wish to state unequivocally that, contrary to the practice of these unpatriotic persons, it is unlawful to sell the Naira, hurl (spray), or stamp on the currency under any circumstance whatsoever. “

The statement quited Section 21(4) which states that “It shall also be an offence punishable under
Sub-section (1) of this section for any person to hawk, sell or otherwise trade in
the Naira notes, coins or any other note issued by the Bank.”

Nwanisobi said the CBN is collaborating with the Nigeria Police, Federal Inland Revenue Service (FIRS), the Economic and Financial Crimes Commission (EFCC) and the Nigerian Financial Intelligence Unit (NFIU) to address the unpatriotic practice.

He warned Nigerians, particularly those at social functions such as birthdays, weddings and funerals, to desist from disrespecting the naira or risk being arrested by law enforcement agencies.

He also admonish members of the public to embrace and adopt other payment channels for their transactions.

Daily Trust

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CBN governor, bank chiefs on a collision course over amount of new notes

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The cash crunch that hit most banks in the country since Monday, January 30, 2023 continued yesterday as banks said they had not been getting enough cash from the Central Bank of Nigeria (CBN) to disburse to their customers.

Consequently, the Association Senior Staff of Banks Insurance and Financial Institutions (ASSBIFI) has challenged the Central Bank of Nigeria (CBN) to make public how much new naira notes it had pushed into circulation, even as it expressed worry over the scarcity of new and old naira notes in the country.

The president of ASSBIFI, Comrade Olusoji Oluwole, lamented that Nigerians are going through excruciating difficulties in order to feed and do business transactions because of the cash crunch brought by the policy. He called for a review of the policy in order to save Nigerians from further hardship.

Oluwole urged the CBN to publicly declare how much of the new Naira notes has been printed and distributed so far to banks for disbursement compared with what has been withdrawn from the public.

The ASSBIFI helmsman disclosed that its independent study showed that the volume of the new notes in circulation is highly insufficient and most of the Automated Teller Machines (ATMs) have no new notes to dispense, while some of those dispensing are still paying out old notes.

“Nigerians have been reduced to moving from one ATM point to another in search of new Naira notes that should have been abundantly supplied. Pressure has been on bank workers who interface with the angry public in the process of depositing old or withdrawing the new notes, and we request urgent actions by the CBN to avoid attacks and other unruly actions against these bank workers as their safety and health are of great concern to the union to us in ASSBIFI,” Oluwole said.

A banker who craved anonymity said addressing the scarcity of cash is something that only the CBN can do, even as he said there ought to be discussions between the CBN and the committee of bank chief executives on how to address the ongoing scenario.

“The CBN should know what our requirements are, they should know what we require and how much will serve our customers. A bank that has over 300 branches and the CBN is giving them only N350 million; that means N1 million per branch. How do we deal with this?

The cash crunch that hit most banks in the country since Monday, January 30, 2023 continued yesterday as banks said they have not been getting enough cash from the Central Bank of Nigeria (CBN) to disburse to their customers.

Consequently, the Association Senior Staff of Banks Insurance and Financial Institutions (ASSBIFI) has challenged the Central Bank of Nigeria (CBN) to make public how much new Naira notes it had pushed into circulation, even as it expressed worry over the scarcity of new and old Naira notes in the country.

The president of ASSBIFI, Comrade Olusoji Oluwole, lamented that Nigerians are going through excruciating difficulties in order to feed and do business transactions because of the cash crunch brought by the policy. He called for a review of the policy in order to save Nigerians from further hardship.

Oluwole urged the CBN to publicly declare how much of the new Naira notes has been printed and distributed so far to banks for disbursement compared with what has been withdrawn from the public.

The ASSBIFI helmsman disclosed that its independent study showed that the volume of the new notes in circulation is highly insufficient and most of the Automated Teller Machines (ATMs) have no new notes to dispense, while some of those dispensing are still paying out old notes.

“Nigerians have been reduced to moving from one ATM point to another in search of new Naira notes that should have been abundantly supplied. Pressure has been on bank workers who interface with the angry public in the process of depositing old or withdrawing the new notes, and we request urgent actions by the CBN to avoid attacks and other unruly actions against these bank workers as their safety and health are of great concern to the union to us in ASSBIFI,” Oluwole said.

A banker who craved anonymity said addressing the scarcity of cash is something that only the CBN can do, even as he said there ought to be discussions between the CBN and the committee of bank chief executives on how to address the ongoing scenario.

“The CBN should know what our requirements are, they should know what we require and how much will serve our customers. A bank that has over 300 branches and the CBN is giving them only N350 million; that means N1 million per branch. How do we deal with this?

“We can’t even pay with the old note and we don’t have the new notes. The new trend is that, because banks don’t want to get in trouble, they are paying customers in N100 and N20 notes. And that is because they don’t want more problems. Customers are protesting that they want their money and since the lower denominations are still legal tender, banks are paying with them.

“There is a shortage of cash everywhere. We did not envisage what is happening now. The only place where a solution can come is from CBN. The CBN should release more cash, and at the CEO level, there should be engagements with CBN on this,” the banker stated.

The president, Nigeria Labour Congress (NLC), Comrade Ayuba Wabba, has attributed the current scarcity of old/new Naira notes coupled with fuel scarcity and hike in pump prices to systemic failure and corruption.

Speaking in an exclusive interview with LEADERSHIP in Lagos yesterday, Wabba said: “Millions of man-hours are lost with many people now rendered unproductive by scarcity of old, new Naira notes while people now spend hours on queue for fuel in a society blessed with abundant human and natural resources.

“The unbanked people living in rural areas and marketers are feeling the pain more as they don’t have any other means of survival. There are no old and new maira notes for people to transact business. Why the haste in implementation of Naira redesign which could have been allowed to flow side by side for months before old notes are eventually mopped up.”

Nationwide, bank tellers have been turning customers away as they say there is no cash to pay them, and queues at the few Automated Teller Machines (ATMs) that are paying cash are growing longer.

Ngozi, a trader who sells electrical materials alongside her husband in Lagos said she is already running low on cash and does not know if she will be able to open her shop by the end of the week if the cash crunch continues.

“All the people that have been patronising my shop have been doing transfers which even misbehaves. I went to the bank to collect cash so that we can have money to run around and I was told that I can only get N2000. I have money in the bank and I can’t take it. It is very frustrating,” she said.

The cash crunch that hit most banks in the country since Monday, January 30, 2023 continued yesterday as banks said they have not been getting enough cash from the Central Bank of Nigeria (CBN) to disburse to their customers.

Consequently, the Association Senior Staff of Banks Insurance and Financial Institutions (ASSBIFI) has challenged the Central Bank of Nigeria (CBN) to make public how much new Naira notes it had pushed into circulation, even as it expressed worry over the scarcity of new and old Naira notes in the country.

The president of ASSBIFI, Comrade Olusoji Oluwole, lamented that Nigerians are going through excruciating difficulties in order to feed and do business transactions because of the cash crunch brought by the policy. He called for a review of the policy in order to save Nigerians from further hardship.

Oluwole urged the CBN to publicly declare how much of the new Naira notes has been printed and distributed so far to banks for disbursement compared with what has been withdrawn from the public.

The ASSBIFI helmsman disclosed that its independent study showed that the volume of the new notes in circulation is highly insufficient and most of the Automated Teller Machines (ATMs) have no new notes to dispense, while some of those dispensing are still paying out old notes.

“Nigerians have been reduced to moving from one ATM point to another in search of new Naira notes that should have been abundantly supplied. Pressure has been on bank workers who interface with the angry public in the process of depositing old or withdrawing the new notes, and we request urgent actions by the CBN to avoid attacks and other unruly actions against these bank workers as their safety and health are of great concern to the union to us in ASSBIFI,” Oluwole said.

A banker who craved anonymity said addressing the scarcity of cash is something that only the CBN can do, even as he said there ought to be discussions between the CBN and the committee of bank chief executives on how to address the ongoing scenario.

“The CBN should know what our requirements are, they should know what we require and how much will serve our customers. A bank that has over 300 branches and the CBN is giving them only N350 million; that means N1 million per branch. How do we deal with this?

“We can’t even pay with the old note and we don’t have the new notes. The new trend is that, because banks don’t want to get in trouble, they are paying customers in N100 and N20 notes. And that is because they don’t want more problems. Customers are protesting that they want their money and since the lower denominations are still legal tender, banks are paying with them.

“There is a shortage of cash everywhere. We did not envisage what is happening now. The only place where a solution can come is from CBN. The CBN should release more cash, and at the CEO level, there should be engagements with CBN on this,” the banker stated.

The president, Nigeria Labour Congress (NLC), Comrade Ayuba Wabba, has attributed the current scarcity of old/new Naira notes coupled with fuel scarcity and hike in pump prices to systemic failure and corruption.

Speaking in an exclusive interview with LEADERSHIP in Lagos yesterday, Wabba said: “Millions of man-hours are lost with many people now rendered unproductive by scarcity of old, new Naira notes while people now spend hours on queue for fuel in a society blessed with abundant human and natural resources.

“The unbanked people living in rural areas and marketers are feeling the pain more as they don’t have any other means of survival. There are no old and new maira notes for people to transact business. Why the haste in implementation of Naira redesign which could have been allowed to flow side by side for months before old notes are eventually mopped up.”

Nationwide, bank tellers have been turning customers away as they say there is no cash to pay them, and queues at the few Automated Teller Machines (ATMs) that are paying cash are growing longer.

Ngozi, a trader who sells electrical materials alongside her husband in Lagos said she is already running low on cash and does not know if she will be able to open her shop by the end of the week if the cash crunch continues.

“All the people that have been patronising my shop have been doing transfers which even misbehaves. I went to the bank to collect cash so that we can have money to run around and I was told that I can only get N2000. I have money in the bank and I can’t take it. It is very frustrating,” she said.

A roadside fruit seller said all her regular customers have been paying her with transfers and the few who are paying cash have paid with the new notes.

“All the transfers that my customers did yesterday, I am yet to get the alert but since they are my regulars, I am not so worried. This scarcity of cash has to end soon”, she said.

A business woman in Lagos, Mrs Kome Enobong, told LEADERSHIP that she left her home as early as 7am to her bank to withdraw some of the funds in her account, only to be told that there is no money to give to her.

“I have visited three Union Bank branches, but I couldn’t withdraw my money. I was told that there is no money in the bank to give to me. This is my money that I have worked for. The ATMs are not dispensing cash either. How am I going to feed my children, because right now, I don’t even have money on me?,” Mrs Enobong lamented.

A teacher, Mr James Niyi who also shared his ordeal with LEADERSHIP, said, “I cannot withdraw my own hard earned money from my bank. I had to use POS, where I spent N1,000 to get N10,000. This is really pathetic,” Niyi said, calling on CBN to intervene.

A POS operator, Mr Okanlawon noted that, they have not been able to do business as usual as there is no cash to give to customers who continue to throng his shop in search of cash. “My customers have been begging me for cash but what can I do if I don’t have the cash to give them? If this continues, I hope that people don’t take to the streets to riot over scarcity of cash.”

As of yesterday, some POS operators were charging N1,500 for N10,000 withdrawals while some were charging N1,000.

Mrs Akin, a civil servant, said after lots of begging and shouting in the bank, she was able to get N5,000, paid in N5 notes.

LEADERSHIP had, on Tuesday, reported that business activities were paralysed in Lagos State as bank customers queued for long hours at Automated Teller Machine (ATM) terminals across Lagos State to withdraw cash.

Similarly, electronic banking transfer through the mobile app, or USSD code, as well as Point of Sales (POS) machines network were extremely poor as people could not pay for services rendered through the electronic banking system.

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