Business
Experts Warn Government Against Implementation of Proposed Additional 20 Percent Ad-Valorem Tax on Non-Alcoholic Beverages
Experts Warn Government Against Implementation of Proposed Additional 20 Percent Ad-Valorem Tax on Non-Alcoholic Beverages
…To Avert Economic Woes
AJAGBE ADEYEMI TESLIM
Sponsored by: H&H
As the controversy surrounding the proposed additional 20 per cent ad-valorem tax on non-alcoholic drinks mounts, economic experts have warned of the dire consequences it would create if the government proceeds with the introduction of the additional excise tax, taking into view, the devastating effect of the recent N10 (Ten Naira) per litre excise tax.
The experts, Olufemi Awoyemi, Founder and Chairman, and Teslim Shitta-Bay, Chief Economist /Managing Editor, both of Proshare Limited, Nigeria’s foremost Financial Information Hub, and Taiwo Oyedele, a Fiscal Policy Partner and Africa Tax Leader at PricewaterhouseCoopers (PWC) a reputable accounting firm, opined that the new ad-valorem or percentage tax of 20 per cent on carbonated soft drink products could put some revenue gains on government coffers, but its adverse impact on the economy would outweigh the gains.
Their viewpoints came on the heels of the recent sectoral heads meeting of the carbonated soft drinks sub-sector of the Manufacturers Association of Nigeria (MAN) in Lagos, where they lamented that since the introduction of the N10 [Ten Naira] per litre excise tax on soft drinks, there has been a serious decline in volume and revenue which was at –10 per cent between June and September 2022 and estimated to reach –25 per cent by the end of the year.
Awoyemi said while it is good for the government to generate revenue through its tax policy, there is a need for a balance to create an environment for the manufacturing companies to thrive, as they have just recovered from the coronavirus (COVID-19) pandemic, foreign exchange challenges, high cost of raw materials and technology adoption, among others.
He posits that the proposed additional 20 per cent ad-valorem tax on soft drinks will impact negatively on the government, manufacturing companies, and citizens, and should be done in a way that recognises the rate of economic recovery, which means in relation to their ability to be more efficient.
He said this calls for critical review because if the government only looks at the money that will be generated without its effect on the soft drink manufacturers which will shut down their production plants due to revenue shortfalls and the layoff of workers, together with the high cost of the products, it would be catastrophic to the nation.
“The ad-valorem tax can be done in a way that recognises the rate of economic recovery, by taxation in relation to efficiency and productivity while considering the social and fiscal implications of it, which includes the timing of the tax and the rate of increase. Putting these factors into consideration will prevent the lingering economic catastrophe and will prevent policymakers from having a militarised economic mindset that scares investors,” the economic expert enthused.
“If the government looks only at the economic gains without what the soft drink sector will go through, without an equilibrium, there will be a conundrum, and that means government plans will be defeated,” Awoyemi stated.
While affirming that it is economically advisable to adhere to the International Monetary Fund (IMF) and the World Bank recommendations on the improvement of certain areas of the economy through taxation, it should be looked at from what obtains in the country and not in other climes.
“I believed the tax advocates had no social impact assessment before proposing the excise tax on carbonated drinks. The one-sided narrative that considered economic justification of taxes without social impact assessment has unintended consequences,” he averred.
On the issue, Shitta-Bay asserted “a tax is designed to create an environment for expansion, consumption, and productivity, so you need a tax that is not primitive”.
He said “the scale of the tax in the carbonated soft drink sector is too high., that the proposed 20 ad-valorem tax on the value of the product plus a recent N10 per litre excise tax will create difficulties for manufacturers in the sector.
The renowned economist explained that the immediate pain points would include the high unit cost of products, fall in demand, decline in corporate revenues, lower foreign direct investment (FDI), and rising job losses.
Teslim added that if the ad-valorem tax is to reduce sugar intake, it would be worthy of note to state that sugar consumption in Nigeria is one of the lowest consumers on the planet, with 8 kg per person, while the United Kingdom records 36 kg per person and the United States of America 40 kg per person.
Oyedele stated, “We know the government needs money because it does not have enough to fund critical infrastructure, overheads and the rest of them, and the best thing to do is to strike a balance, that delicate balance, as to what to task, what rate of tax would be appropriate for each sector and when to impose that tax.”
He said the Federal Government should fix an excise tax that should not be burdensome to the soft drink sector, for the companies to thrive since they contribute hugely to the country’s GDP, and employment level.
“It doesn’t mean whether the recommendation is coming from the World Bank, IMF or the ECOWAS committee, the government should sit and say to itself, what should l do for my economy at this particular time? It should also look at the products, like soft drinks, how critical it is to Nigerians whose income per head is very low,” Oyedele affirmed.
Business
Fidelity Bank Supports Modupe Cole Memorial School, Lagos
Fidelity Bank Supports Modupe Cole Memorial School, Lagos
AJAGBE ADEYEMI TESLIM
SPONSORED BY: H&H
In continuation of its drive to alleviate the impact of economic hardship and suffering among indigent Nigerians, Fidelity Bank Plc recently donated food items to Modupe Cole Memorial Childcare and Treatment Home School in Akoka, Lagos.
CAPTION:
L- R. Tolulope Rojaiye, Team Member, Brand and Communications, Fidelity Bank Plc; Osho Olufunmilayo Bamidele, Vice Principal 2, Modupe Cole Memorial Childcare and Treatment Home School; and Victoria Mbonu, Class President, Intellect Nexus Inductee Class, Fidelity Bank Plc; during a Corporate Social Responsibility (CSR) donation event executed by Fidelity Bank at Modupe Cole Memorial Childcare and Treatment Home School, Akoka, Lagos recently.
The donation which aligns with the Bank’s Corporate Social Responsibility (CSR) pillars of education and health, was championed by the Intellect Nexus Class of 2024 under the Fidelity Helping Hands Program (FHHP). Through this initiative, Fidelity Bank staff identify community needs, raise funds to address them, and receive matching support from the bank to implement impactful projects.
Explaining the bank’s commitment to supporting its host communities, the Divisional Head, Brand and Communications Division, Fidelity Bank Plc, Dr. Meksley Nwagboh, noted that, “At Fidelity Bank, we recognise the symbiotic relationship we have with the communities where we operate. This informs our decision to not only provide our host communities with relevant financial services but to also impact them with developmental projects.
“We are inspired by the great work being done here at Modupe Cole Home School and our donation is a small token of appreciation for this as we aim to support the well-being of these exceptional children.”
On his part, the Vice Principal of the school, Mr. Isiaka Ajani, expressed gratitude for the bank’s consistent support noting that Fidelity Bank’s gesture is a huge encouragement to the school.
“We say thank you for the gift items that you have brought to us today, and this shows that we are not alone in the mission to provide care and education to children with special needs.
“This institution is a testament to the belief that there is ability in disability. We have children here who have passed common entrance examinations and gained admission into higher institutions despite their challenges. It is our mission to help them achieve their potential.
“The school had made effort to provide academic and vocational training programs in bead-making and hairdressing, and specialized care for residents with severe disabilities for its 476 residents, many of whom have been abandoned by their families.” He stated.
Fidelity Bank is a full-fledged customer commercial bank with over 8.3 million customers serviced across its 255 business offices in Nigeria and the United Kingdom as well as on digital banking channels.
The bank has won multiple local and international awards including the Export Finance Bank of the Year at the 2023 BusinessDay Banks and Other Financial Institutions (BAFI) Awards, the Best Payment Solution Provider Nigeria 2023 and Best SME Bank Nigeria 2022 by the Global Banking and Finance Awards; Best Bank for SMEs in Nigeria by the Euromoney Awards for Excellence 2023; and Best Domestic Private Bank in Nigeria by the Euromoney Global Private Banking Awards 2023.
Business
Access Bank to Host Pioneering Africa Trade Conference in Cape Town
Access Bank to Host Pioneering Africa Trade Conference in Cape Town
AJAGBE ADEYEMI TESLIM
SPONSORED BY: H&H
Access Bank PLC is set to host its first-ever Africa Trade Conference (ATC), a landmark event focused on advancing Africa’s economic transformation under the theme, ‘Empowering Africa Through Trade, Innovation, and Sustainable Growth’. Scheduled for March 12, 2025, in Cape Town, South Africa, the conference is poised to bring together the most influential voices in trade, finance, and policy to address the future of commerce across the continent.
With Africa’s trade finance gap estimated at $81 billion annually, the conference aims to tackle the systemic challenges hindering trade, particularly for SMEs and domestic firms. By fostering collaboration among key stakeholders, the Conference will explore innovative solutions, sustainable trade practices, and strategies for expanding African economies into global value chains.
Roosevelt Ogbonna, Group Managing Director/Chief Executive Officer, Access Bank PLC, emphasised the importance of the Africa Trade Conference, in addressing these pressing issues. “The Africa Trade Conference represents a crucial step in redefining Africa’s trade potential. By creating platforms for dialogue, innovation, and actionable solutions, Access Bank is enabling African businesses to connect and thrive in the global economy.”
Access Bank’s presence across 24 countries globally, including 16 in Africa, provides a unique advantage in facilitating inter- and intra-African trade. The Bank’s growing network positions it as a key player in addressing trade complexities and promoting inclusive growth across the continent.
Seyi Kumapayi, Executive Director, African Subsidiaries, Access Bank, highlighted the broader vision of the forum, saying, “The Africa Trade Conference is a platform to not only address Africa’s trade challenges, but to champion the continent’s opportunities. Through strategic partnerships, tailored financial solutions, built on the ethos of sustainability, we are paving the way for Africa’s businesses to take their place on the global stage.”
This flagship event will convene a distinguished line-up of seasoned speakers, and top executives from leading international banks, Development Finance Institutions (DFIs), and captains of industry in Africa.
The ATC will also shine a spotlight on the transformative potential of the Africa Continental Free Trade Area (AfCFTA), which aims to reduce trade barriers, enhance infrastructure, and integrate African economies into global trade networks.
Furthermore, the event will explore critical themes shaping the continent’s economic future, including the transformative role of digitisation and innovation in global trade, solutions for overcoming trade barriers to enhance market access, as well as sustainable trade practices and innovative financing models, thereby providing a comprehensive roadmap for advancing Africa’s position in global commerce. Please visit https://africatradeconference.accessbankplc.com/ for more information.
Business
Union Bank Rewards 360 Customers with N21 Million in First Save and Win Palli Promo 4 Draw
Union Bank Rewards 360 Customers with N21 Million in First Save and Win Palli Promo 4 Draw
AJAGBE ADEYEMI TESLIM
SPONSORED BY: H&H
Union Bank, Nigeria’s leading financial institution, has kicked off its Save and Win Palli Promo 4campaign on a high note following the announcement of its first set of winners in its inaugural monthly draws.
The first live draw of this season, which took place at the Bank’s Head Office in Marina, Lagos, rewarded 60 customers with ₦100,000 each. Additionally, 300 other winners went home with ₦50,000 worth of gift vouchers during the inaugural live draw, which was conducted transparently and digitally under the supervision of relevant regulatory bodies. The winners cut across the nation.
Speaking at the first monthly draw, Gloria Omereonye, Union Bank’s Area Business Executive for Lagos Island 1, stated, “Union Bank is always dedicated to rewarding customers for their loyalty and financial discipline.
We are pleased that our promo has continued to achieve its noble goals of providing succour to our customers through our gifts and rewards, especially in these economically trying times, while facilitating a sustainable savings culture for future goals and objectives.”
Save & Win Palli Promo is a nationwide campaign designed to reward both new and existing customers with cash prizes. Season 4, which began in December 2024 and runs until May 2025, offers customers the opportunity to win ₦131 million in cash prizes, Motorcycles, Tricycles, Fuel Vouchers, and a star prize of ₦5 million, which will be handed out to three lucky winners at the grand finale.
Open to new and existing customers, the Save and Win Palli Promo requires participants to save a minimum of ₦10,000 and perform a minimum of five transactions monthly to qualify for draws. Monthly winners can receive ₦100,000, while quarterly draws will reward lucky savers with Motorcycles, Tricycles, and other exciting prizes.
Customers who save in multiples of ₦10,000 will increase their chances of winning.
New customers can join the promo by downloading the UnionMobile app to open an account or visiting any Union Bank branch.
Existing customers can reactivate accounts by calling the 24-hour Contact Centre at 07007007000 or visiting a branch.
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