News

2023 Fiscal Policy: MAN decries increase, projects grave implications on Nigerian economy

Published

1 year ago

May 3, 2023

By Omolola Dede Adeyanju

In respect to the newly released 2023 fiscal policy measures and tariff amendment, the Manufacturers Association of Nigeria (MAN) has revealed foreseen implications on Nigerian economy.

As communicated through a press statement signed by the Director General of the association, Segun Ajayi-Kadiri mni, “the Manufacturers Association of Nigeria (MAN) has carefully studied the newly released Fiscal Policy Measures for 2023 by the Federal Ministry of Finance, Budget and National Planning, following the approval by President Muhammadu Buhari. The increases in Excise tax for 2023 and 2024 as provisioned in the said 2023 Fiscal policy, came as a surprise to us because, as a major stakeholder, MAN had actively participated in the deliberations on the proposal and presented various positions from its members across all sectors, especially those directly impacted by the proposed measures.

“What are the Issues? From the meeting held with the Honourable Minister of Finance, Budget and National Planning on the 29th March, 2023, MAN representatives were informed that the 2023 proposals on additional Excise tax increases were being stepped down until further consultations on the 2023 Finance Bill. Additionally, Nigeria Customs Service was notified by the Federal Ministry of Finance vide Memo Ref. No. F. 17417/351 of 15th February 2023 that the existing Fiscal Policy Measures for 2022 as they relate to Alcoholic Beverages and Tobacco Products will take effect from 1st June 2023 and 1st June 2024 as approved in the 2022 Fiscal Policy Measures roadmap for 2022 to 2024.

“Based on the above, MAN members had finalised their annual strategies and projections while exporting members had concluded pricing negotiations for orders to the end of fiscal period, on the strength of the agreed excise roadmap and recent assurance from the fiscal authority.

“The release of the 2023 Fiscal Policy Measures, just over one month to its expected implementation date and the end of the current administration, sends negative signals to the business community locally and internationally with implications for existing and potential investors.It is worrisome that the current situation is indicative of inconsistency in Government policy, given that industries that are affected by excise tax administration, already made 3-year strategic plans based on the agreed calendar as scheduled in the roadmap including domestic and export sales prices, revenue and volume projections, tax burden calculations, etc. This in our opinion, may create credibility issues for the country with existing and potential investors, impacting Foreign Direct Investments (FDI) and the country’s Ease of Doing Business index among other implications.It is therefore alarming and concerning that the implementation of the 2022 to 2024 approved excise roadmap, as contained in the 2022 Fiscal Policy (which commenced on 1st June 2022) has unfortunately not even been implemented for up to one year, before Government decides to ‘shift the goal post.’ This was done without any consultation on or assessment of the impact of the huge increases, which in some cases are up to 50 per cent on ad valorem and 75 per cent on specific duty rates, over and above the already approved high increases of up to 50 per cent and 45 per cent respectively.

“Ironically, based on data from our members, Government is unlikely to earn more revenue from further excise increases due to significant decline in sales by companies in the sector, yet the new policy is likely to fuel illicit trade, industry recession, capacity underutilisation, layoffs, etc. The unilateral action by the Government despite the complaint and persuasion by stakeholders for the fiscal authority to consider the consequence on the industries, businesses and the economy as a whole is quite unfortunate.The implications of the increase in Excise Duty for 2023: We would like to put on record that the real impact on our members in the industries under excise regime from the 2022 fiscal policy has been negative and this has created:

reduced production volumes with its attendant result on downward trend in capacity utilisation;
increased illicit trade in some of the affected products;
erosion of members’ market share and revenue, especially following continued devaluation of the Naira against major currencies,
inflation and increased security challenges faced around the country;
freeze on employment and redundancies in the manufacturing industry;
squeezed margins as our members are unable to pass additional costs to consumers by way of higher prices given their eroded income and dwindling purchasing power.

“Apart from the above challenges faced in the business environment, manufacturers also have to contend with currency devaluation and increasing inflation resulting in higher cost of production as our members have little to no access to foreign exchange at the official window and have to resort to the parallel market at an extra cost of around N300 to US$1.00. All these are without regard to the industry’s contribution to the Nigerian economy in the way of significant taxes being paid (Excise, Corporate Income Tax, Value Added Tax – VAT, etc.); export revenue in foreign currency; employment of thousands of Nigerians by the industry directly and indirectly including supply chain partners in the SME sector as well as Corporate Social Responsibility (CSR) to the local communities and other stakeholders nationwide. Other Issues: We commend the Federal Government on some of the approvals as provided for under the Supplementary Protection Measures (SPM) on Annex I, II and III of the 2023 Fiscal Policy guidelines, which is in support of MAN agenda of Resource-based Industrialisation.

“We however request that in addition to the issue of Excise tax increase, the Green Surcharge – Import Adjustment Tax (IAT) on Motor Vehicle (Chapter 87) should be reconcidered. While we support and respect government’s opinion and measures aimed at addressing climate change and Nigeria’s commitment to net zero emission, it would have been better if we exercise some level of strategic caution and allow for a period of realistic transition to clean energy. This is considering the fact that most of our members engage logistics companies, majority of whom are in the Small and Medium-scale Enterprise (SMEs) cadre, who would need some time to migrate to green fuel and who lack the financial capacity to purchase electric vehicles. Anything short of this will increase the input cost of products culminating in un-competitiveness as well as eliminating many SMEs in the logistics downstream of the manufacturing sector.

“The industry cannot afford any further increases at these extremely challenging times.”

News

Nigerian Army begins recruitment, warns against fraudsters

Published

4 mins ago

May 3, 2024

Walewale

The Nigerian Army has announced the commencement of recruitment applications for Non-Tradesmen and Women.

This is contained in a post on the official X handle of the Nigerian Army on Friday, stating that the application which is free, starts from 3rd May – 7th June.

Non-tradesmen and women are those who wish to join the Nigerian Army but have only the certificate from their Senior School Certificate Examination.

The post reads: “This is to inform the general public & all interested applicants that online application for 87 Regular Recruits Intake for Non-Tradesmen & Women has commenced.

“Application starts from 3rd May – 7th June 2024.

“Application Is Free at http://recruitment.army.mil.ng. Shortlisted candidates will participate in the State Recruitment Screening Exercise scheduled from 20th June – 3rd July 2024.

“Recruitment into the Nigerian Army Is FREE, Beware of Fraudsters.”

News

Turkey halts trade relationship with Israel

Published

6 mins ago

May 3, 2024

Walewale

Turkey has announced the suspension of all trade with Israel, saying it is because of the deteriorating humanitarian situation in Gaza.

The Turkish trade ministry stated that the suspension would remain in effect until Israel permitted an “uninterrupted and sufficient flow” of aid into Gaza.

The Turkish government declared that the trade suspension would apply to all products.

This new development comes amid escalating tensions over Israel’s offensive in the region.

Last year, trade between Turkey and Israel amounted to nearly $7 billion.

Responding to Turkey’s announcement, Israel’s foreign minister accused Turkish President Recep Tayyip Erdogan of acting dictatorially and disregarding the interests of Turkish citizens and businesses.

Israel said it would seek alternatives for trade, focusing on local production and imports from other countries.

Tensions between Turkey and Israel have been strained for years, with diplomatic relations experiencing ups and downs.

Turkey severed ties with Israel in 2010 after clashes between Israeli commandos and pro-Palestinian Turkish activists aboard a ship attempting to break Israel’s blockade of Gaza resulted in casualties.

Although diplomatic relations were restored in 2016, they soured again in 2018 when both countries expelled each other’s top diplomats over Israel’s handling of protests on the Gaza-Israel border.

However, the recent escalation in tensions between Turkey and Israel follows the deadly Hamas attack on Israel in October last year.

News

Press Freedom Day: NGE salutes journalists working under harsh economic conditions

Published

11 mins ago

May 3, 2024

Walewale

The professional body of editors and media executives in Nigeria, gave this commendation in a statement signed on Friday by its President, Mr Eze Anaba and the General Secretary, Dr Iyobosa Uwugiaren, to commemorate the 2024 World Press Freedom Day.

‘’We celebrate the courageousness and commitment of journalists across the country, who continue to risk everything to bring us the truth and reliable/credible information.

“We also acknowledge the growing threats to press freedom – from violence and censorship to disinformation and economic pressures.

‘’We pay tribute to the journalists who have lost their lives or faced persecution, and we stand in solidarity with those under threat or attack and those who continue to work under very harsh economic conditions,” the NGE said.

The forum reaffirmed that media freedom, freedom of expression and access to public information are crucial to democracy and must be at the heart of Nigerian government’s values and actions.

The NGE said it recognised the crucial role played by journalists, media workers and free/ independent media in protecting the country’s democracy and advised them not to give up, in spite of the prevailing economic challenges.

The guild also requested the National Assembly to initiate and adopt a law to protect journalists, who speak out on matters of public interest, especially against abusive and strategic lawsuits, which are regularly initiated to silence them.

According to the NGE, the 2024 World Press Freedom Day is dedicated to emphasising the importance of good journalism amidst the current global environmental crisis.

‘’In line with the theme of this year’s celebration, we believe that journalism and freedom of expression are crucial in the context of the current global environmental crisis.

‘’Journalism and freedom of expression help in raising public awareness about environmental issues; holding power accountable; amplifying marginalised voices; promoting transparency and accountability.

“It also help in fostering public debate/engagement, and providing a platform for solutions,” the body said

The NGE added that 2024 World Press Freedom Day provided an opportunity for every stakeholder in the media community to continue to drum it to the hearing of both state and non-state actors – about the importance of press freedom and the challenges being faced by journalists.

The editors said that such challenges included censorship, harassment, imprisonment and violence.

The guild said that there was urgent need by the government to take deliberate and sustained action to promote press freedom and good journalism in the country.

The NGE added: ‘’The federal government will fundamentally be promoting the enabling environment for media to operate responsibly if it adopts a law to protect persons who speak out on matters of public interest against abusive lawsuits meant to silence them.

‘’The federal government should take a clue from the European Union and other democracies around the world, who have adopted similar laws to protect journalists and media houses against Strategic Lawsuit Against Public Participation (SLAPP suit).

‘’More so, there are still many obnoxious and anti-media laws in our statutory books that are targeted at journalists and media houses. The National Assembly (NASS) must take immediate step to repeal them.’’

The guild also urged government at all levels, international organisations and civil society organisation to protect and promote press freedom;.

The editors urged them to ensure safety and security for journalists/media houses; and ensure that all restrictive laws and policies targeted at the media are repealed.

The guild said that it would continue to advocate for press freedom, freedom of expression and access to information, adding that they are crucial to good governance, democratic societies and fundamental human rights

The World Press Freedom Day, established by the United Nations General Assembly in 1993, is observed annually on May 3.

It is set aside to celebrate the fundamental principles of press freedom, assess the state of press freedom throughout the world, defend the media from attacks on their independence, and pay tribute to journalists who have lost their lives in the line of duty.

The day also acts as a reminder to governments of the need to respect and uphold the right to freedom of expression as enshrined in Article 19 of the Universal Declaration of Human Rights.

It highlights the importance of a free, independent, and pluralistic media in fostering transparency, accountability and democracy.