Business News Archives — Page 2 of 32 — Business Bells

Category: Business News

LIRS Sets January 31 As Deadline For Filing Of Annual Tax Returns By Employers Of Labour

As the new year begins, Lagos State Internal Revenue Service (LIRS) has reminded businesses and employers of labour of their statutory obligation to file annual income tax returns pursuant to section 81 (2) of the Personal Income Tax Act (PITA) Cap P8 LFN 2004 (as amended).

The Executive Chairman of Lagos State Internal Revenue Service, Mr. Ayodele Subair said the Act stipulates January 31, 2022 as the deadline for filing of annual income tax returns, failing which penalty accrues.

Subair urged all businesses and employers of labour resident within Lagos State to file their annual income tax returns on or before January 31, 2022, to avoid payment of penalties as well as other statutory sanctions.

The agency, in a statement signed by Monsurat Amasa, LISR Head, Corporate Communications said the only available platform for filing of annual income tax returns in Lagos State is the LIRS e-Tax portal: https://etax.lirs.net.

“The e-Tax portal is built for convenience of taxpayers, is easy, convenient and safe. All businesses and employers of labor are advised to use the e-Tax portal to file their returns.

“Taxpayer ID of all employees is compulsory for the annual income tax returns to be successful filed on the e-Tax portal. Therefore, all employees and taxable persons within the State are advised to generate a taxpayer ID (where applicable) and file their individual annual income tax returns on the e-Tax portal.

“As part of the Agency’s quest to ease compliance obligations for taxpayers, it has designated some staff at its various offices to assist taxpayers with using the e-Tax portal and other filing related issues.

For more information or any inquiries, taxpayers are enjoined to visit LISR website: www.lirs.gov.ng, follow us on our various social media platforms: @lirsgovng, email: etaxinfo@lirs.net or call the LIRS customer care hotline: 0700CALL LIRS (0700-2255-5477).

Taxpayers are advised to stay safe and adhere to all Covid-19 guidelines as stipulated by the Lagos State Government and the relevant health authorities.

18 January 2022
BudgIT Uncovers 460 Duplicated Projects Worth N378.9bn in 2022 Budget

BudgIT, a civic-tech non-profit organisation, says 460 projects amounting to N378.9 billion were duplicated in the 2022 budget.

Iyanu Fatoba, communications associate at BudgIT, disclosed this in a statement.

On December 31, 2021, President Muhammadu Buhari signed the N17.13 trillion 2022 appropriation bill into law.

The presidency had submitted a proposed fiscal budget of N16.391 trillion to the national assembly, but the lawmakers later raised it to N17.127 trillion — an increase of N735.8 billion.

BudgIT said it uncovered the discrepancies after examining the 21,108 capital projects in the budget.

“Our preliminary analysis of the 21,108 capital projects in the 2022 approved budget revealed 460 duplicated projects amounting to N378.9 billion,” the statement reads.

“Recall that BudgIT observed 316 duplicated projects inserted into the 2021 FG Budget approved by NASS. ICPC verified 257 duplications, while the Budget Office confirmed the existence of only 185 duplicated projects worth N20.13bn, after which it informed the public that funds were not released for the projects in 2021.”

BudgIT also mentioned the occurrence of “inflated projects” amounting to billions of naira directly linked to the State House and the presidency.

It listed them to include N20.8 billion requested by the presidency to construct a 14-bed presidential wing at the existing State House Medical Center; N28.72 million requested for the purchase of two units of 10kg washing machine and six units of LG televisions in the State House, Lagos Liaison Office, among others.

Speaking of projects approved under ministries, departments and agencies (MDAs) that do not have the capacity to execute them, BudgIT said the National Agency for Great Green Wall (NAGGW) has N1.3 billion or 64% of its capital budget dedicated to purchasing motorcycles, street lights and other projects outside its mandate.

The organisation also raised questions on the ministry of environment which has an allocation of N67.8 million to construct “gun armories” in Cross River, Kaduna, Borno and Yobe states, even though the ministry is not a security agency.

It also said the River Basin Development Authorities (RBDA) had metamorphosed into an agency that constructs roads and supplies street lights.

“A cumulative total of N6.3billion was allocated to supplying street lights in 73 communities across the 36 states, while N14.8 billion was allocated for the construction of 219 roads across 36 states; whereas the majority of the roads are the responsibilities of state and local governments and not the federal government,” the statement reads.

Speaking on the findings, Gabriel Okeowo, BudgIT’s country director, described the duplicated projects as “loopholes for fraud”.

According to him, they are crimes against the 86 million Nigerians living below the poverty line, an injustice to hardworking taxpayers and an open mockery of countries and lending institutions that intend to lend Nigeria N6.29 trillion in 2022.

“BudgIT is currently finalising its detailed analysis of the approved FG 2022 budget which would be presented to all stakeholders in the executive and legislative arm of government as well as the general citizens,” Okeowo added.

“In the meantime, we call on the government to prioritise projects that are of utmost benefit and exercise discipline in implementing duplicated and poorly costed projects in the 2022 budget.”

BudgIT also urged Nigerians, CSOs, the private sector, the international community, and reformers to join the call for an urgent redress of the issues to ensure public funds work for all Nigerians and not for a privileged few politicians.

17 January 2022
Are Nigerians Buying Rice The Right Way?

How would you react to the question, are you buying the right rice? This question is pertinent as focus increasingly shifts to the quality and hygienic condition of rice as a guiding factor when purchasing it.

When you purchase rice, your objective is to buy healthy rice. Healthy rice is safe to consume but you need to consider a few factors. Especially when buying loose from open markets and nearby stores.

The plethora of rice brands in the market has offered consumers a variety of choices. More than the challenge of identifying the rice is to identify the right quality. Some are sold in loose form as seen in basins and loose containers while others are packaged. The form of presentation whether loose or packaged in the trade impacts negatively or positively on the quality of rice.

When rice is sold in the loose form, a lot of factors affect it negatively.

Firstly, the ageing of rice in loose form which can affect its physical and chemical properties and in turn its quality is a major consideration. Different rice brands have expiry dates which buyers of the commodities in cups, plastic containers and basins of various sizes are not aware of because it has been removed from the bags. It is therefore possible that many consumers buy rice that has expired, with the very high risk of consuming unwholesome products whose quality cannot be guaranteed and are therefore not safe for human consumption.

Another factor is the condition of the local market where rice is sold in. When sold in open market in loose form, there are very high chances of cross contamination by other food items like meat, vegetable fruits, corn etc as all items are sold near each other. The rice can be contaminated by stone, dust, husk and other foreign matters thereby impacting on the quality.

It can also be exposed to micro-organisms, rodents, insects and other disease-causing pathogens. While some of these contaminants may be removed during washing at home, not all of them may be removed. In recent times, where the scare of diseases has heightened, these factors are worth considering.

Furthermore, displaying rice in open containers that are not hygienic and on floors is very inimical to human health. In Nigeria, the World Health Organization estimates that more than 200,000 people die of food poisoning yearly from food-borne pathogens (especially Escherichia coli and Salmonella). These deaths are caused by contaminated foods through improper storage, processing, preservation, and handling.

When rice is sold loose, the consumer will be left second guessing the brand and may not be able to make informed choices. The unsuspecting consumer is also vulnerable to retailers who may want to capitalize on this to sell low quality rice for the price of high-quality rice.

Rice manufacturers take all necessary precautions to ensure quality and safety but exposure or loose rice at the market by retailers can compromise quality.

Big Bull Rice is a premium quality Parboiled rice, totally made in Nigeria. It is sortex cleaned,stone free and has a high swelling index. The production of Big Bull Rice goes through extreme measures to ensure safety. When you eat Big Bull Rice, you can be assured of the great lengths taken to ensure your health is safe.

It has been introduced in pocket friendly prices for each consumer – in packs as small as 750g and 2.25kg, so that everyone has access to quality rice without worrying about other irritants. The consumers need not worry about contamination and assured of the original Big Bull quality!

15 January 2022
Twitter Set To Pay Tax, Establish ‘Legal Entity’ In Nigeria As Suspension Is Lifted

Social media giant Twitter has agreed to pay “applicable tax” and establish a legal entity in Nigeria in the first quarter of 2022, a senior government official said on Wednesday.

Kashifu Inuwa Abdullahi, the director-general of the National Information Technology Development Agency, who headed the Nigerian team that negotiated with Twitter, said in a statement while announcing the lifting of the more than six-month-long suspension of the social media platform in the country.

Twitter will also appoint a “designated country representative to interface with Nigerian authorities” by 2023 and register with the Corporate Affairs Commissiion, Abdullahi said.

The platform is also expected to enroll Nigeria in its Partner Support and Law Enforcement Portals. The Law Enforcement Portal provides a channel for the law enforcement agencies to submit a report with a legal justification where it suspects that content violates Nigerian Laws.

“Twitter has agreed to act with a respectful acknowledgement of Nigerian laws and the national culture and history on which such legislation has been built and work with the FGN and the broader industry to develop a Code of Conduct in line with global best practices, applicable in almost all developed countries,” Abdullahi said.

Nigeria suspended Twitter in June 2021, days after the platform deleted a remark from Buhari’s account, provoking outcry over freedom of expression in Africa’s most populous country.

Nigerian officials defended the suspension saying Twitter was used to promote fake news and for destabilising activities, especially by separatists in the southeast.

Buhari’s government and Twitter have been in talks over a list of conditions for ending the suspension, including discussions on taxes, content, and registering locally in Nigeria.

“The issues are being addressed and I have directed that the suspension be lifted, but only if the conditions are met to allow our citizens to continue the use of the platform for business and positive engagements,” Buhari said in a speech marking Nigeria’s independence day.

13 January 2022
BREAKING: Buhari Lifts Ban On Twitter

The Federal Government has lifted the suspension on microblogging site, Twitter, seven months after it suspended the social media platform in Nigeria.

This was contained in a statement issued by the Chairman Technical Committee Nigeria-Twitter Engagement and Director-General National Information Technology Development Agency (NITDA), Kashifu Inuwa Abdullahi.

“The Federal Government of Nigeria (FGN) directs me to inform the public that President Muhammadu Buhari, GCFR, has approved the lifting of the suspension of Twitter operation in Nigeria effective from 12am tonight, 13th January 2022. The approval was given following a memo written to the President by the Honourable Minister of Communications and Digital Economy, Prof Isa Ali Ibrahim,” the statement added.

“In the Memo, the Minister updates and requests the President’s approval for the lifting based on the Technical Committee Nigeria-Twitter Engagement’s recommendation.”

The government and Twitter have been in negotiations since over restoring the service based on a set of conditions, including Twitter registering operations in Nigeria.

According to him, Twitter has agreed to demands for working in the country.

It added that the committee set up by the Federal Government engaged with the Twitter team to engage resolve the impasse, adding that the resolutions will bring “endless possibilities”.

“Therefore, our engagement will help Twitter improve and develop more business models to cover a broader area in Nigeria. Furthermore, the FGN looks forward to providing a conducive environment for Twitter and other global tech companies to achieve their potential and be sustainably profitable in Nigeria,” the statement added.

Nigeria halted Twitter operations in June after the company deleted a comment by Buhari, provoking an international outcry over freedom of expression.

Twitter did not immediately respond to a request for comment.

The United States, European Union, and Canada were among those who joined rights groups in condemning the ban as damaging to freedom of expression in Africa’s most populous country.

Twitter had a major role in political discourse in Nigeria, with the hashtags #BringBackOurGirls after Boko Haram kidnapped nearly 300 schoolgirls in 2014, and #EndSARS during anti-police brutality protests in 2020.

12 January 2022
Nigerians To Pay VAT On Amazon, Other Digital Services – Finance Minister

Nigerians may have to pay more for digital services as the Federal Government has introduced a policy requiring foreign companies that provide digital services in the country to collect and remit Value Added Tax, VAT to the Federal Inland Revenue Service.

The Minister of Finance, Budget and National Planning, Zainab Ahmed, said this during the public presentation of the 2022 budget in Abuja on Wednesday.

She said that the new policy is contained in Section 30 of the Finance Act which amended the provisions of Section 10, 31 and 14 on VAT obligations for non-resident digital companies.

The Minister said, “Section 30 of the finance act designed to amend section 10, 31 and 14 of VAT is in relations to VAT obligations for non-resident digital companies and the mechanism that will be used is to restrict VAT obligations mainly to digital non-resident companies who supply individuals in Nigeria who can’t themselves self-account for VAT.

“So if you visit Amazon, we are expecting Amazon to add VAT charge to whatever transaction you are paying for.

“I am using Amazon as an example. We are going to be working with Amazon to be agreed to be registered as a tax agent for the FIRS.

“So Amazon will now collect this payment and remit to FIRS and this is in line with global best practices, we have been missing out on this stream of revenue.

For clarification, the Minister said, the new law applies to foreign companies that provide digital services such as, “apps, high-frequency trading, electronic data storage, online advertising” among others.

Speaking further, Ahmed noted that in line with Section 4 of the Finance Act, non-resident companies are now expected to pay tax at 6 per cent on their turnover.

The Federal Government had in 2019 disclosed plans to tax foreign digital service providers offering services to Nigerians according to amended provisions in the 2020 Finance Act.

However, this is the first time the government is setting a specific tax rate.

Ahmed said, “Section 4 of the ACT which is taxation of e commerce businesses owned by non-resident companies on a fair and reasonable turnover basis has been set at 6 per cent.

“This provision empowers FIRS to access non-resident firms to tax on fair and reasonable basis of turnover and from digital services provided to Nigerian customers.”

She said the move was aimed at modernizing the taxation of Information Technology and the digital economy in line with current realities, adding that this is in conformity with the provisions of the National Development Plan 2021 – 2025.

Earlier in December 2021, Facebook, in a statement, disclosed that it will, from January 1, 2022, begin to charge VAT on the sale of advertisement to advertisers, regardless of whether they’re buying ads for business or personal purposes.

5 January 2022
Banks’ll Increase Credit To Economy in 2022, Says CBN

The Governor of the Central Bank of Nigeria, CBN, Godwin Emefiele, has said the banking sector will increase access to finance and credit for households in 2022.

Emefiele said this recently in Lagos, according to a statement on Thursday.

“The policy focus of the bank for 2022 is with a pledge to sustain improved access to finance and credit for households and businesses, mobilise investment to boost domestic productivity, enable faster growth of non-oil exports, and support employment generating activities,” he said.

He noted that the country had been able to contain some of the effects of the COVID-19 pandemic on the economy.

He stressed the need for all stakeholders to work to build a more resilient economy that would be better able to contain external shocks, while supporting growth and wealth creation in key sectors of our economy.

According to him, a major lesson from the COVID-19 pandemic was that deliberate efforts must be made to diversify the base of the Nigerian economy.

Emefiele said the country must do everything possible to reduce the importation of goods into the country.

“Proactive steps on the part of stakeholders in the private sector, in collaboration with the government in supporting the growth of sectors such as manufacturing, ICT, and infrastructure, will strengthen our ability to deal with the challenges of COVID-19, and stimulate further growth of our economy,” he added.

Speaking on the need to build an efficient infrastructure ecosystem in Nigeria and the role of improved infrastructure to the development of the Nigerian economy, he disclosed that all necessary approvals had been obtained for the full commencement of the Infrastructure Corporation in early 2022.

4 January 2022
Nigeria’s Inflation Rate May Be Among World’s Highest In 2022 – World Bank

The World Bank has said Nigeria may have one of the highest inflation rates globally in 2022, with increasing prices diminishing the welfare of Nigerian households.

According to the World Bank, Nigeria is projected to have one of the highest inflation rates globally and the seventh highest among Sub-Saharan African countries in 2022.

“In 2022, Nigeria is expected to have one of the highest inflation rates in the world and the seventh highest in Sub-Saharan Africa,” it said.

The bank said this in the November edition of its Nigeria Development Update.

According to the global financial institution, high inflation hampers the country’s attempt to achieve economic recovery and erodes the purchasing power of most vulnerable households.

The document read in part, “High inflation is frustrating Nigeria’s economic recovery and eroding the purchasing power of the most vulnerable households. In the absence of measures to contain inflation, rising prices will continue to diminish the welfare of Nigerian households.”

The bank further highlighted the adverse effects of inflation on Nigeria, which include pushing eight million Nigerians into poverty, and the possible disruption of consumption, investment and saving decisions, among other consequences.

“If inflation had been closer to the CBN’s goal of nine per cent in 2021, the average Nigeria’s consumption would have been 15 per cent higher, and eight million Nigerians would have not fallen into poverty.

“If double-digit inflation persists during 2022-2023, rising prices will distort consumption, investment, and saving decisions of the government, households, and firms, with adverse ramifications for long-term borrowing and lending.

“Over time, the disproportionate impact of inflation on lower-income households and those working in sectors with low savings (e.g, agriculture) will exacerbate inequality. Ultimately, inflation will not only negatively affect incomes, but also economic productivity and job creation, further constraining the recovery,” the bank said.

The Washington, United States-based institution also disclosed that over two years, an increase in food prices accounted for about 70 per cent of the annual increase in the rate of inflation.

It also said that inflationary pressures were trigged by multiple demand and supply shocks.

The document read in part, “Inflationary pressures are being generated by multiple demand and supply shocks. Supply shocks arising from disruption of supply chains linked to COVID-19 and associated containment measures have eased, but security issues, border closures, and limited access to markets continue to fuel inflation.

“The current mix of monetary, fiscal, foreign exchange, and trade policies also plays a prominent role as a driver of inflation. Trade and FX restrictions, including the closure of land borders starting in August 2019, have increased prices for food and consumer goods, and imports of over 40 goods, including many staple foods, are currently ineligible for FX through formal windows.

“Nigeria’s exchange-rate management has resulted in the rise of parallel rates, which are closely linked to food-price dynamics. Unable to access FX through the official exchange-rate window, businesses seek FX on the parallel market and other alternative sources.

“The parallel rate influences their business decisions, and fluctuations in the parallel rate pass through to market prices for goods and services. Moreover, monetary policy has not prioritized controlling inflation, and the monetary financing of fiscal deficit undermines the effectiveness of policies to contain demand-side inflationary pressures.”

3 January 2022
Businesses That’ll Shape Nigerian Economy in 2022

In 2022, all eyes will be on many Nigerian businessmen and corporate organisations whose decisions in the preceding year will greatly impact the country. The year 2021 saw major mergers and acquisitions involving quoted companies which operations will have significant impact on the economy.

Aliko Dangote/Dangote Refinery

Africa’s richest man, Aliko Dangote, will expectedly be of much influence on Nigeria’s economic scene this year. This is the year that the 650,000 b/d Dangote Refinery will begin production.

Dangote Refinery will fill a large vacuum in Nigeria’s products market that authorities hope will help stabilise the local supply of refined oil products. This will surely help to stop the country’s dependence on imported refined products. In doing this, it will help reduce Nigeria’s perennial foreign exchange (forex) crisis which is due in part to the huge amounts spent on the importation of refined petroleum products.

Karl Tariola/MTN and Mafab to deploy 5G

MTN Nigerian was awarded a 5G license in 2021, paving the way for the continent’s largest wireless carrier to supply faster internet to consumers and businesses.

In line with the objectives of the National Digital Economy Policy and Strategy (NDEPS) 2020-2030 for a Digital Nigeria and the positioning of the country as an early adopter of digital technology in the growing global digital economy, the successful and timely deployment of 5G is crucial.

5G is expected to facilitate several emerging technologies, generate innovative use cases, spur significant socio-economic growth and create jobs.

It will be critical because it will enable unprecedented levels of connectivity, upgrading 4G networks with five key functional drivers: superfast broadband, ultra-reliable low latency communication, massive machine-type communications, high reliability/availability and efficient energy usage.

Like MTN Nigeria, Mafab Communication will be one of the companies to watch in 2002 Led by Musbahu Muhammad Bashir as chairman, Mafab emerged on the scene to snatch one of the two 5G licences.

Mrs Zainab Shamsuna Ahmed

Nigeria’s Minister of Finance, Budget and National Planning, Zainab Shamsuna Ahmed, will be in the news this year for various reasons. Her ministry will superintend some of the policies that will have significant impacts on the lives of Nigerians.

The ministry will implement the planned removal of the subsidy on petroleum products, increase in import tariffs, increase in taxes and increase in electricity tariff. These are policies that by their nature are bound to be unpopular with the Nigerian masses because of the expected impact they will have on the average consumer’s welfare.

Mrs Ahmed will also be the one whose ministry will implement the N5,000 a month transport allowance for about 40 million poor Nigerians as a palliative for the expected impact of the subsidy removal. Zainab alongside other ministers and critical stakeholders would work hard to actualise the National Development Plan 2021-2025 which succeeds the Economic Recovery and Growth Plan (ERGP 2017-2020). The federal government said this would require N348.1 trillion.

The federal government is expected to provide N49.7 trillion or 14.3per sent, while the private sector will provide the balance of N298.3 trillion or 85.7per cent. The government believes these measures will increase revenues and by extension additional infrastructure for social and economic development.

Titan’s acquisition of 104-year-old Union Bank

This followed an agreement by Union Global Partners Limited, Atlas Mara Limited and majority shareholders to divest 88.39 per cent shareholding in Union Bank to Titan Trust Bank.

The board of Union Bank, in a notification to the Nigerian Exchange Limited (NGX) and the Securities Exchange Commission (SEC) on Thursday, explained that the agreement, which is subject to regulatory approvals and other financial conditions, would upon completion transfer of 89.39 per cent of Union Bank’s issued share capital to Titan Trust Bank.

According to the Chairman of Titan Trust Bank, Mr Tunde Lemo, “Our stakeholders are delighted as this transaction marks a key step for Titan Trust in its strategic growth journey and propels the institution to the next level in the Nigerian banking sector.

Abdulsamad Rabiu/BUA Group

The BUA Group will be one of the dominant players in the nation’s economy in the New Year.

The highly diversified group led by Abdul Samad Rabiu is expected to expand its cement output to 20 million metric tons by next year from three cement plants being constructed in three states: Sokoto, Edo and Adamawa.

The group also plans to list its consolidated food business on the NGX within the year. The food business includes flour and pasta, sugar, edible oils and rice.

Dahiru Mangal

Mangal Industries, owned by the Katsina-born industrialist, Alhaji Dahiru Mangal, in 2021 signed a contract with China-based Sinoma International Engineering for the delivery of a 3Mt/yr new integrated cement plant in the northern state of Kogi. The plant will cost US$600m and generate thousands of jobs during construction and when inaugurated in early 2024. Sinoma International Engineering will also build a dedicated 50MW power plant for the plant.

Mangal had said during the signing of the contract: “This investment is part of an ambitious investment programme under implementation by Mangal Industries. The factory will rely on the best available technology for cement production in line with the highest environmental standards.”

Mangal, who is the Chairman and Chief Executive Officer of AFDIN Group of companies Nigeria Limited comprising Max Air Limited, Katsina Dyeing, Printing Textiles Limited, AFDIN Football Club, AFDIN Construction Company Nigeria Ltd, Manasawa Oil, Mangal Oil and Manasawa Enterprises, a clearing and forwarding firm has also sold his 1,968,452,614 shares in Oando PLC.

Industry watchers believed that he would channel the money into some of his businesses.

Allen Onyeama/Air Peace

Air Peace is a star to watch. In 2021, the airline received the third of its brand new Embraer 195-E5 aircraft at the Nnamdi Azikiwe International Airport, Abuja, and disclosed that it would receive all the 13 aircraft it ordered from the Brazilian planemaker before the end of 2022, adding that it would create about 17,000 jobs.

The Chairman and Chief Executive Officer (CEO) of Air Peace, Allen Onyema, made this known in a speech just before the aircraft touched down at the Abuja airport from the Embraer facility in Sao Jose Dos Campos, Brazil.

“In addition to the order of 13 aircraft, which we would have receive before the end of 2022, we would make a further commitment of 10 additional aircraft, and by the time we have 30 aircraft we would employ about 17,000 personnel,” Onyema explained.

He said the airline would deploy the aircraft to international, regional and domestic destinations as it had started opening new routes in Nigeria.

He further said the new aircraft would hit the West Coast and African region as it extended its West Coast destinations to include Douala (Cameroon), Kinshasa (Congo), Niamey (Niger), Dakar (Senegal), as well as Monrovia (Liberia).

What Airtel/MTN PSB licence approval could mean for financial inclusion in Nigeria

On Friday, November 8, 2021, telecom giants, MTN and Airtel, in separate statements, revealed that the Central Bank of Nigeria (CBN) had approved in principle to operate Payment Service Banks (PSBs).

PSBs accept deposits from individuals and small businesses, carry out payment and remittance services within Nigeria, issue debit and prepaid cards, operate electronic purses and other activities prescribed by the CBN.

While the telcos would not offer a full suite of financial services, they would be able to provide users with entry into the financial system.

A significant reason for the optimism shown is the potential of telcos to fast-track the CBN’s financial inclusion goal. This is mainly due to their comprehensive coverage of the country, especially in rural areas that house most of the unbanked population.

With the infrastructural cost of setting up branches and security, banks are not opening branches in new locations, and in some cases, are shutting down operations.

According to the International Monetary Fund (IMF), Nigerian banks closed 234 branches and 649 Automated Teller Machines (ATMs) in 2020; bringing the number of banks in the country to 5,158 in 2020 from 5,392 in 2019.

Furthermore, MTN and Airtel have the largest and third largest subscribers at 67.5 million and 42 million respectively. Even accounting for multiple SIM cards as is common in the country; those figures are significantly higher than the top three Nigerian banks by customer base. According to data from the GSM Association, there were 97.5 million unique mobile subscribers in 2018.

It is not clear what will happen to thousands of Point of Sale (POS) operators working closely with other banks when the new entrants fully deploy their resources.

Tiamin’s N18bn rice farm

Tiamin Rice Limited is setting up an N18bn rice farm in Udubo, Gamawa Local Government Area of Bauchi State.

The company, which has a big rice mill in Kano, has remained a big player in the industry, employing hundreds of people, and has also contributed towards reducing rice importation in Nigeria.

The Managing Director (MD) of Tiamin Rice Limited, Aminu Ahmed, during the foundation laying ceremony of two blocks of six classrooms at Begu Village of Gamawa LGA in mid-December, said the farm was the largest modern farm in Nigeria, with 10,000 hectares, with a projection to produce 120,000 metric tons of rice per annum and other farm produce like maize.

He added that the land was fully acquired through the Bauchi State Government after payment of premium charges.

Jim Ovia

Jim Ovia, the man behind Zenith Bank, will be in the news again in 2022. Ovia is currently building $1.5bn Quantum Petrochemical Complex in Ibeno, Akwa Ibom State.

The petrochemical plant will support the local economy by supplying products to sectors such as construction, packaging, pharmaceuticals, agriculture and textile. This is in addition to creating jobs.

Cosgrove Smart Estate

Towards the end of 2021, the federal government inaugurated 160 furnished homes at the newly developed Cosgrove Smart Estate in Abuja.

The FCT Minister, Muhammad Bello, and the Minister of Youth and Sports Development, Sunday Dare, jointly expressed delight at the ability of the indigenous company to achieve a great leap in the evolution of the housing sector.

“Cosgrove is leading the pioneering of integration of technology in real estate, and we are very proud of the good work the company is doing,” the FCT minister said.

In his remark, the CEO of Cosgrove Investment Limited, Umar Abdullahi, said the delivery and commissioning of Cosgrove Smart Estate, Wuye, represented a long-held dream of both management and staff of Cosgrove, assuring that the firm would continue to focus on pioneering the integration of technology in real estate development in Nigeria.

“Cosgrove will remain committed to providing housing solutions to a discerning clientele who desire a high standard of living and seek to maximise the potentials of 21st Century technology,” the chairman added.

Daily Trust further reports that there are many players in agriculture, oil (like A.A.Rano, Shafa oil), mining, energy and other sectors that will undoubtedly shape Nigeria’s economy this year.

© Daily Trust

3 January 2022
Sanwo-Olu Signs N1.758 Trillions 2022 Budget of Consolidation into Law

Lagos State Governor, Mr. Babajide Sanwo-Olu on Friday signed the 2022 Appropriation Bill of N1.758 trillion christened ‘Budget of Consolidation’ into law.

Governor Sanwo-Olu, while signing the Bill at the Lagos House, Ikeja, said that the capital expenditure stands at N1.166 trillion, representing 66 percent of the budget estimates, while recurrent expenditure is N591 billion, representing 34 percent, to maintain the 66:34 percent budget tradition of Lagos State.

Speaking after signing the 2022 Appropriation bill, Governor Sanwo-Olu said the budget is to consolidate infrastructural development across the state in line with his administration’s T.H.E.M.E.S. developmental agenda to address issues on education, infrastructure, health, technology, social intervention, rail projects and other critical areas.

While explaining the rationale behind the increase in the 2022 Appropriation Bill from the initial N1.388 trillion budget estimates presented to the Lagos State House of Assembly on November 24, Sanwo-Olu said there is a need to capture all financing options for the Blue and Red line rail projects and other ongoing projects in the Budget of Consolidation.

Lagos State Governor, Mr. Babajide Sanwo-Olu signing the Y2022 Appropriation bill into law at the Lagos House, Alausa, Ikeja, on Friday, December 31, 2021. With him are Commissioner for Economic Planning & Budget, Mr. Sam Egube (left), Deputy Governor, Dr. Obafemi Hamzat (second left) and Chairman, Lagos House Assembly Committee on Appropriation, Hon. Gbolahan Yishua (right).

He said: “Let me state at this juncture that the difference between the budget amount presented by the Executive and the final amount passed by the Legislature is largely accounted for by the decision to further accelerate already existing infrastructure projects and bring them to substantial levels of completion.

“We have also decided to capture in the Budget, the financing being deployed towards the Blue Line and the Red Line rail projects by private sector consortia, up to a level that will not put pressure on our cash flow and debt sustainability.

“In addition, this 2022 Appropriation Bill recognises several other already-funded project transactions that are now being accounted for as corporate transactions. What this means is that we are now choosing to capture in the Budget the significant value already accruing to the State from these projects.

“As I said during the presentation to the House of Assembly, this will be the last full-year budget in the tenure of this administration. As a result, a major focus of this budget will be ensuring the completion of all ongoing projects that are critical to achieving our desire to build a Greater Lagos in line with the goals and objectives of the T.H.E.M.E.S development agenda.”

Commissioner for Economic Planning & Budget, Mr. Sam Egube; Lagos Deputy Governor, Dr. Obafemi Hamzat; Governor Babajide Sanwo-Olu; Chairman, Lagos House Assembly Committee on Appropriation, Hon. Gbolahan Yishua and the Deputy Majority Leader, Hon. Noheem Adams during the signing of the Y2022 Appropriation bill into law, at the Lagos House, Alausa, Ikeja, on Friday, December 31, 2021

He said the Commissioner for Economic Planning and Budget, Mr. Sam Egube would present to the public the full details and breakdown of the budget in due course.

Governor Sanwo-Olu also commended the Speaker and members of the Lagos State House of Assembly for their cooperation and support, especially in ensuring the quick consideration and passage of the 2022 Appropriation Bill, which he presented on Wednesday, November 24.

The Governor also appreciated Lagosians for their support in ensuring the impressive performance in the implementation of the 2021 budget, against all odds, especially the continuous challenge posed by COVID 19.

Lagos State Governor, Mr. Babajide Sanwo-Olu signing the Y2022 Appropriation bill into law at the Lagos House, Alausa, Ikeja, on Friday, December 31, 2021

“I believe very strongly that we, working together, and with everyone doing their part diligently, will achieve much more in 2022,” the Governor said.

Speaking earlier, the Speaker of the Lagos State House of Assembly, Rt. Hon. Mudasiru Obasa, stated that the budget was given expeditious approval with proper scrutiny within five weeks to ensure that all projects are executed.

Obasa, who was represented by the Chairman of the Lagos State House of Assembly Committee on Appropriation, Hon. Gbolahan Yishawu, said the Babajide Sanwo-Olu administration is heading in the right direction in ensuring that infrastructural projects are put in place across the state in line with the T.H.E.M.E.S. development agenda.

He also commended Governor Sanwo-Olu for completing all the projects he inherited and providing funds for all the ongoing projects in different parts of the State.

Also speaking, Commissioner for Economic Planning and Budget, Sam Egube, commended the Lagos State House of Assembly for the speedy passage of the 2022 Appropriation Bill.

He said he was excited and grateful to all stakeholders for leading the process to the signing of the biggest State’s budget.

It would be recalled that the Lagos State House of Assembly on Wednesday passed the 2022 budget estimates with a slight increase of the grand total from the initial N1.38 trillion to N1.758 trillion.

31 December 2021