Some shareholders have urged the Federal Government to pump more funds into the capital market to stabilize the economy for better performance.
Chief Edem Duke, the Minister of Tourism, Culture and National Orientation, on Thursday said that tourism remained a critical contributor to Gross Domestic Product (GDP) of major economies.
The News Agency of Nigeria (NAN), reports that the get together, which took place at the Mirage Hotel, Calabar featured steel band from Trinidad and Tobago.
Prof. Rukkayyatu El Rufai, Minister of Education, has advised the Federal Polytechnic, Offa, Kwara, to commercialise its research products in order to complement government’s effort to reduce poverty.
The Civil Society Legislative Advocacy Centre (CISLAC) in Abuja urged the Federal Government to implement the 2010 African Union Declaration on the health sector.
The National Emergency Management Agency ( NEMA) has called on Nigerians to imbibe the culture of disaster risk reduction.
The North-West Zonal Coordinator of NEMA, Alhaji Musa Ilallah, made the call in Sokoto at the opening of the 2012 workshop on strengthening disaster preparedness and mitigation at the state and local government levels.
Represented by Alhaji Aliyu Kafin-Dangi , Head , Training in the North-West zonal office , Kaduna, Ilallah also stressed the need for coordinated efforts by stakeholders in disaster management.
" These are those at the federal, state and local governments and other stakeholders . This is necessary for an overall success in disaster management.
" We must continue to see ourselves as partners in progress in disaster management in the country," Ilallah said.
He said the workshop was to coordinate and facilitate a process for development of appropriate systems , procedures , expertise and resources at all levels for effective mitigation and efficient response to disasters.
" It is also aimed at improving the capacity of local government officials in providing a mechanism for integration and coordination at the state and local government levels," he said.
The Director-General, Sokoto State Emergency Management Agency (SEMA), Alhaji Hassan Maccido, who was represented by Alhaji Mustapha Umar, commended NEMA for its sustained efforts in the prevention and mitigation of disasters.
Maccido said the workshop would improve the knowledge of the participants and facilitate disaster prevention and management at the grassroots.
Alhaji Tukur Ladan, from Silame Local Government, on behalf of the participants, lauded NEMA for the conference.
Dr Emmanuel Ekuwem, former National President Association of Telecoms Companies of Nigeria (ATCON) has urged the government and private industry on the need to heighten broadband services towards achieving economic growth.
PERSISTENT profit taking at the resumption of equity trading on Monday on the Nigerian Stock Exchange (NSE), has resulted to a further slide in All-Share Index by 0.2 per cent.
Specifically, the market capitalization fell by N18 billion while the All-Share Index went down by 55.4 basis points to close trading in the day at N8.737 trillion and 27,346.66.
Investment experts have attributed the lull in share transaction to the yuletide season, wherein majority of investors engage more in trading off their holdings for profit taking rather purchase of shares.
The market had last Friday though in the laggard trend recorded , market capitalization of N8.755 trillion and All-Share Index of 27,402.06 and a volume trade of 217.8million worth N2.44 billion swapped in 3,710 deals, as against Monday’s volume of 116.1 million valued at N1.2billion done 2,006 deals.
Further review of the market showed sentiment turning red for Ikeja Hotel, Livestock Field, Fidson Healthcare, John Holt and Guaranty Trust as they depreciated in value by 5.00, 4.86, 4.76, 4.76 and 4.76 per cent to close the day at N0.76, N1.37, N1.00, N3.40 and N22.25 respectively.
Conversely, Forte Oil, NPF, RT Briscoe, Japaul Oil and Transnational Corporation of Nigeria appreciated marginally by 4.90, 4.85, 3.73, 3.57 and 3.26 per cent to close trading in the day at N8.13, N1.08, N1.39, N0.58 and N0.95 respectively.
As usual, Financial Services sector led the market transaction volume in the day with 45.6 million units valued at N483.1 million exchanged in 748 deals as against 111.2 million units valued at N950 million exchanged in 1,682 deals recorded in previous session.
Transaction volume on the exchange moved down by -46.7 per cent to close at 116.1 million units exchanged in 2,006 deals as against a rise recorded in the previous trading day last Friday wherein volume traded rose 217.8 million units valued at N2.44billion exchanged in 3,710 deals.
Zaria (Kaduna), Dec. 22, 2012 (NAN) The Institute for Agricultural Research (IAR) in Zaria, Kaduna State, has developed and released improved varieties of crops to farmers across the country.
Kano, Dec. 24, 2012 (NAN) The Federal Government has spent more than N24.3 billion on the rehabilitation of railway track from Lagos to Kano.
Niger Commissioner for Information Alhaji Danladi Abdulhamid on Tuesday said the state government has spent over N1billion on disaster related issue from 2007, among which was the 2011 December Madalla bomb blast.
Mr Victor Eyaru, President, National Association of Air Traffic Controllers (NATCA) has called on the Federal Government to declare national emergency on aviation communication facilities in the Nigeria airspace.
The relevance of tax in the global economy cannot be under-estimated. In the developed world and in some of the emerging economy, emphasis is highly placed on revenue-drive through taxation to boost economy. However, in Nigeria the case is different because the cumbersome tax administration system. For instance, the 2012 World Bank in collaboration with PricewaterhouseCoopers report ranked Nigeria economy 138 out of 183 on the ease of paying tax.
According to the report, Nigeria dropped from its 134th position last year, to 138, making it the worst for the country, since the annual report was first published in 2006.Responding to the development, Mr Taiwo Oyedele, Partner/Tax and Corporate Advisory Service Leader, PricewaterhouseCoopers told News Agency of Nigeria (NAN) that the report showed the weakness of nation’s tax system. According to Oyedele, the report was a yearly report put together by the World Bank and PricewaterhouseCoopers.
According to him, the aim was to ascertain the countries doing well in terms of revenue generation using the instrument of taxation to boost her economy. Oyedele said that the report examined three aspects of tax payment, which were “the tax cost, ease of paying tax and the time involved in tax compliance”. The tax expert said that among the three tax indicators, Nigeria ranked 180 making it the worst in Africa on the time it took to comply with tax issues and only ahead of three countries in the world: Vietnam (181), Bolivia (182) and Brazil (183).
Oyedele explained that a medium size company in Nigeria made 35 tax payment annually, paid 32.7 per cent of its business profit in taxes and spends 938 hours to comply. He added, Nigeria ranked 123 on number of tax payment, 56 on total tax rate and 180 on time required to comply out of 183 economies. “The World Bank and PricewaterhouseCoopers looked at how difficult it is pay tax which is called ease of paying tax in 183 countries around the globe. “The body also examined the number of tax payment and the amount of time it takes to comply with tax issues, the time it takes to calculate your tax, file result and collect Tax Clearance Certificate (TCC). “They looked at these three factors and calculate the average for every country,” he said.Oyedele attributed the enormous time required for tax compliance in Nigeria to the bureaucratic, complex and cumbersome tax administration system. He said that Nigeria should avoid multiplicity of taxes where Federal, State and Local Governments collect different taxes thus making it difficult for tax payers to comply.Oyedele condemned the uncoordinated policies by the government were issues relating to tax administration were not well implemented.
“The National Tax Policy approved by the Federal Executive Council and the National Executive Council is there to guide tax administration. The idea is to reduce the number of taxes and be able to streamline our tax system,” he said. Oyedele suggested the adequate use of Information Communication Technology (ICT) to facilitate tax administrations in the country. Also speaking, Mr Rasaq Quadri, President West Africa Union of Tax Institutes said that the report may not necessarily represent the actual state of the nation’s economy. Quadri said that certain factors like security, epileptic power supply, transportation and other infrastructural challenges may have been put into consideration. “For instance, there is no investor that will like to invest where his life and business is not secured. “We should stop deceiving ourselves by saying that we are talking to investors, direct foreign investment when there are no amenities on ground,” he said. Quadri said if Nigeria economy must grow in 2013, there was need to diversify into agriculture, tourism and other non-oil sectors. He that the United Arab Emirate (UAE) solely depends on tourism to drive her economy, adding that Nigeria had numerous untapped tourism centres.
Quadri also suggested the immediate implementation of the recommendation by the working group constituted by the Federal government in 2002 to under-study the ways to improve the nation’s tax system. According to him one of the recommendations was that we should have a virile tax administration, good tax policy and laws. “Unfortunately, the National Tax Policy has been launched in February but since then it has not been implemented,” he said.
Quadri said that the implementation of the tax policy would enable us do away with the direct system of taxation and embrace indirect system of taxation where people would pay as they consumed. He said that the pay as you consumed system of tax as practiced in most part of the world would raise the revenue profile of the country. The tax expert condemned the five per cent Value Added Tax (VAT) practiced in Nigeria, saying it slowed down the nation’s revenue portfolios. He said that there was a need to increase it in the interest of the economy noting that the taxation industry was bright because of the abundant human and natural resources. He urged government to create an enabling business environment that would encourage investors, ‘Once there adequate and functional infrastructure, every other thing will fall into place. Quadri commended the federal government for the new Personal Income Tax Act (PITA) Amendment 2011 saying it had draw the President and every other political office holders into the tax dragnet. Mr Chukwuemeka Eze, former president, Chartered Institute of Taxation of Nigeria (CITN), Ikeja branch said that the taxation sub-sector had faired well in year 2012.
Eze said that various reforms like the PITA and Industrial Trust Funds (ITF) Act were brought into limelight in the year under-review despite the fact that they were introduced last year. He said that the introduction of the rule of Transfer Pricing (TP) by the Federal Inland Revenue Service was also another milestone in the taxation industry. On the World Bank ranking, Eze said that the ranking portend danger for the economy because it showed that we do not have “sufficient power economically to absorbed shocks”. He said that the inflationary rate was 12.3 per cent in the economic index because we spent too much on recurrent expenditure. Eze said that for the nation improve economically in 2013, government should invest more on infrastructure like power, transportation and well security. He said those indices would encourage rapid economic transformation in the country.Mr Peter Olarenwaju, member CITN said the tax industry was vibrant in the year 2012 despite some challenges in the nation’s economy.
Olarenwaju said the World Bank ranking was as a result of poor utilisation of the nation’s resources. He urged the government to implement the various tax laws in the country to enable the tax authorities discharged their duty effectively in 2013. Similarly, Mr Anthony Aslem, a tax expert said that Nigeria had no justification to be ranked so low in the Word Bank reports. Aslem said that the taxation industry was bright if the “right pegs were put into the right holes” He urged government to put taxpayers’ money into use in 2013 saying that was the only way to encourage tax compliance.
The Nigerian capital market, which was severally hit by the impact of the last global financial crisis in 2008, has seen massive recovery this year. In what many analysts described as response to fundamental respite in economic down turn across the globe and series of attempt at reforms at the local level, the local bourse has seen large flows of investment in the second half of the year.
Nigeria and two other oil-producing African nations are preparing to sell as much as $3.75 billion in international bonds in 2013, the most from the continent ever, after yields sank below Italy and Spain and investors set aside concerns sparked by Ivory Coast’s default almost two years ago, reports Bloomberg.
Nigeria, the continent’s top oil producer plans to borrow $1 billion on overseas markets, twice as much as in 2011, while Angola is seeking $2 billion of debt.
Ghana, which issued the first Eurobonds in sub- Saharan Africa outside of South Africa in 2007, may sell a further $750 million, Deputy Finance Minister Seth Terkper said by phone from Accra December 13.
Sales the past 14 months by Namibia and Zambia drew five to 20 times more demand than sought. As the World Bank estimates sub-Saharan Africa needs $93 billion a year to overcome poor road networks and shortages of power and water, governments are taking advantage of historic- low yields across emerging markets.
Yields on Nigeria’s dollar bonds due January 2021 have dropped 201 basis points this year to 4.1 percent, while similar-maturity debt sold by Spain yields 5.18 percent and that for Italy 4.38 percent. Ivory Coast, which defaulted on $2.3 billion of bonds in January 2011, rewarded investors with the world’s best returns.
“Given their inherent financing needs and the lack of capital, it would be beneficial for African issuers to access cheap financing while it is available,” Kojo Amoo-Gottfried, a London-based analyst at FM Capital Partners Ltd., which manages about $1 billion, said by phone December 11. “Conducive market conditions will not persist indefinitely.”
Average emerging-market dollar-denominated bond yields have fallen 85 basis points, or 0.85 percentage point, this year to a record 5.57 percent, according to JPMorgan Chase & Co.’s EMBI Global Index.
The International Monetary Fund estimates developing nations will post growth rates next year almost four times faster than the developed world. Even with the declines, average yields compare with 1.8 percent on 10-year U.S. Treasuries, luring investors seeking higher returns.
Sub-Saharan Africa’s gross domestic product will expand 5.7 percent in 2013, the fastest pace after developing nations in Asia, from 5 percent this year, the IMF said October 9, boosted by higher commodity prices.
Investors are looking to tap into “a good growth story,” Aurelien Mali, a senior analyst at Moody’s Investors Service, said in a Nov. 7 phone interview from London.
While yields on Ghana’s dollar notes due October 2017 have dropped 164 basis points this year to 4.89 percent, those on five-year cedi-denominated debt stood at 21.25 percent, according to Standard Chartered Plc prices. The higher domestic yields reflect “underdevelopment of the domestic capital market and also the fact there is macroeconomic instability, inflation volatility and public finance with fiscal deficit volatility,” Mali said. “There is not a lot of credit stability for those markets.”
The drop in dollar funding costs reflects a “bubble” for emerging markets and doesn’t compensate for the risks investors are taking on, Charles Robertson, global chief economist at Renaissance Capital, said in a November 13 interview in London.
Nigeria’sinflation rate has stayed above the Central Bank’s 10 percent target this year, with price growth accelerating 12.3 percent in November. Sub-Saharan Africa’s second-biggest economy also relies on crude exports for about 95 percent of foreign-currency earnings and 80 percent of government revenue.
Ghana’s cedi has dropped 14 percent this year against the dollar, the worst performing currency in Africa after Sudan’s pound and Malawi’s kwacha. Kenya’s shilling plunged as much as 32 percent last year amid a fourfold surge in inflation.
“We are in a hard currency bond bubble globally,” Robertson said. “Local debt is the better prospect” because yields are higher than foreign securities to compensate for risk, he said.
Nigerian President Goodluck Jonathan said in his budget speech in October that the West African nation will sell its second Eurobond in 2013. Yields on Angola’s next international bonds may be lower than the 7 percent on seven-year debt sold in August because market conditions have improved, VTB Bank OJSC Chairman Andrey Kostin, which helped Angola sell its notes, said Oct. 31 after meeting the country’s President Jose Eduardo dos Santos and Vice President Manuel Vincente.
Kenya, Rwanda, Tanzania, Uganda and Mozambique may also issue their first foreign-currency bonds in the next few years, Moody’s said in October. Of the 54 countries in Africa, 13 have sold foreign-currency denominated debt on international markets, according to Moody’s. Dollar funding shields investors’ from currency swings and inflation, while giving issuers access to financing at lower rates than at home.
Investors are favouring African dollar bonds because they are scarce and holding them means they can diversify their portfolios, said Moody’s Mali. About 10 percent of the region’s external debt stock is international issuance, he said.
As Ivory Coast resumed interest payments in June and got an agreement from bondholders to service arrears by 2014, the government’s notes due December 2032 have returned 87 percent this year to 93.09 cents on the dollar, with yields dropping 765 basis points to 7.23 percent, according to data compiled by Bloomberg.
“If you’re looking for yield its really one of the last frontiers to find it,”Daniel Broby, deputy chief executive officer of Silk Invest Ltd., which holds Nigerian, Zambian and Senegalese Eurobonds, said in a Dec. 12 phone interview from London. “The risk is they get greedy. I just hope that in this rush for this window they act prudently.”