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
Access Bank Group, Aig-Imoukhuede Foundation Pledge $300m to Transform Africa’s Economic Landscape
“We can’t wait to be saved; Africans need to solve Africa’s problems. This $300 million commitment reflects this reality’’ – Aig-Imoukhuede
AJAGBE ADEYEMI TESLIM
SPONSORED BY: H&H
The Aig-Imoukhuede Foundation and Access Bank Group have pledged $300 million in charitable commitments over the next 20 years. Access Bank has committed $200 million and Aig-Imoukhuede Foundation committed $100 million.
President Paul Kagame, President of the Republic of Rwanda and Aigboje Aig-Imoukhuede, Chairman, Access Holdings PLC, at the Africa CEO Forum 2024 in Kigali…Thursday.
This will fund African government initiatives with a proven potential to transform national economic performance.
Speaking about the commitment, Aigboje Aig-Imoukhuede, Chairman, Access Holdings and Co-Founder, Aig-Imoukhuede Foundation, said, “We can’t wait to be saved, Africans need to solve Africa’s problems. This $300 million commitment reflects this reality.”
President Paul Kagame, President of the Republic of Rwanda and Aigboje Aig-Imoukhuede, Chairman, Access Holdings PLC, at the Africa CEO Forum 2024 in Kigali…Thursday.
Appropriately, this announcement was made at the Africa CEO Forum 2024 in Kigali, Rwanda, where the theme of this year’s event is ‘At the table or on the menu?’. At the event, CEOs from across the continent joined to discuss how Africa can demand a seat at the global table, rather than continuing to wait to be invited.
The fund will see the creation of an African-led Super NGO in partnership with academics, experts and philanthropists across the globe who are committed to closing the gap between Africa and the rest of the world. The NGO will work with African governments to provide the funding, governance and talent required to successfully execute game changing government reform programs, especially in the delivery of digital public infrastructure.
The development comes at a time when Ajay Banga, President of the World Bank, has warned wealthy countries that it would be short-sighted to “ignore” Africa. This landmark Africa-led initiative could not have been better timed.
Aigboje Aig-Imoukhuede, Chairman, Access Holdings PLC and Co-founder, Aig-Imoukhuede Foundation and Ofovwe Aig-Imoukhuede, Co-founder, Aig-Imoukhuede Foundation, on the sidelines of the Africa CEO Forum 2024 in Kigali…Thursday.
“We African leaders cannot sit back and watch the 4th Industrial Revolution transform the rest of the world while leaving Africa falling further behind. We have to create our own ‘table’ by using technology to unlock the power of our youth, giving Africa a greater voice in the world. It’s today’s leaders who will determine whether or not we grab this opportunity,” Aigboje Aig-Imoukhuede continued.
The availability of digital public infrastructure is a proven and cost-effective way for developing nations to break free of the status quo. It provides citizens with access to the same public goods and services available to citizens of advanced nations.
The India Stack has become a shining example of what can be achieved when visionary public and private sector leaders partner for development.
The Access Bank and Aig-Imoukhuede Foundation inspired NGO will make such partnerships a reality and delivering measurable improvements to the lives of Africans across the continent.
Notes to Editor:
For media inquiries, please contact:
communication@aigafrica.org or +234 808 5716 788
mediarelations@accessbankplc.com or +234 803 320 4315
ABOUT THE AIG-IMOUKHUEDE FOUNDATION
The Aig-Imoukhuede Foundation is a public sector-focused philanthropic organisation founded by Aigboje and Ofovwe Aig-Imoukhuede to improve the lives of Africans through transformed public service delivery and increased access to quality primary healthcare. The Aig-Imoukhuede Foundation accomplishes its mission by supporting the reform initiatives of public sector entities, providing financing, technical support, and capacity-building programmes and resources for the public sector workforce. The Foundation also provides funding and strategic support to drive the work of affiliate organisations such as Africa Business Coalition for Health (ABC Health), the Private Sector Health Alliance of Nigeria (PSHAN), the Nigerian Solidarity Support Fund (NSSF) and others.
For more information, please visit www.aigimoukhuedefoundation.org.
Business
AIGBOJE AIG-IMOUKHUEDE APPOINTED PRESIDENT OF FRANCE NIGERIA BUSINESS COUNCIL
AIGBOJE AIG-IMOUKHUEDE APPOINTED PRESIDENT OF FRANCE NIGERIA BUSINESS COUNCIL
AJAGBE ADEYEMI TESLIM
SPONSORED BY: H&H
At the esteemed Choose France Summit 2024, held on Monday, May 13, 2024, Aigboje Aig-Imoukhuede, the Chairman of Access Holdings PLC, was formally appointed as the President of the France Nigeria Business Council (FNBC) by the President of the French Republic, President Emmanuel Macron.
Aigboje Aig-Imoukhuede having a handshake and a tête-à-tête with President Macron at the Council’s meeting with the President, and Gilbert Chagoury looking on.
The France Nigeria Business Council (FNBC) stands as a pivotal coalition of Nigerian private sector business leaders, committed to enhancing bilateral relations between Nigeria and France. Its core objectives revolve around the facilitation of trade, investments, infrastructural development, job creation, and cultural integration between the two nations.
Since its establishment in June 2021 under the auspices of President Emmanuel Macron, the FNBC has diligently utilised its member network to champion investments across key business sectors, fostering cultural understanding and driving economic growth between Nigeria and France. Notably, it has catalysed Nigerian businesses’ ventures into investment opportunities within France.
Comprising 13 distinguished members, the Council boasts prominent figures including Aigboje Aig-Imoukhuede (President), Abdul Samad Rabiu, Gilbert Chagoury, Mike Adenuga, Aliko Dangote, Jim Ovia, Tony Elumelu, and John Coumantaros. Additionally, Kola Karim, Leo Stan Ekeh, Daisy Danjuma, Gbenga Agboola, and Jean Haas serve as integral members, with Jean Haas holding the position of Secretary.
Aig-Imoukhuede’s appointment follows the passing of Herbert Wigwe, the Council’s former President, in February 2024.
Aigboje Aig-Imoukhuede having a handshake and a tête-à-tête with President Macron at the Council’s meeting with the President, and Gilbert Chagoury looking on.
The Choose France Summit is an annual gathering that convenes business magnates, investors, and governmental dignitaries to explore investment prospects within France. The highlight of the Summit was the Presidential Dinner, characterised by high-level engagements and mutual commitments between participating parties.
Business
ACCESS BANK (SL) LTD STRENGTHENS LEADERSHIP TEAM WITH KEY BOARD APPOINTMENTS, NAMES NEW CHAIRMAN
AJAGBE ADEYEMI TESLIM
SPONSORED BY: H&H
Access Bank Sierra Leone Ltd (‘Access Bank (SL) Ltd’) has announced the appointment of new executives to its Board of Directors (‘the Board’), further strengthening its leadership team and advancing the implementation of its growth and transformation strategy.
These appointments also reflect the Bank’s commitment to fostering growth and development while maintaining the highest standards of governance and stewardship.
Joining the Board as Non-Executive Directors are Maurice Nathaniel Cole, Nsikak N. Usoro, Michala Mackay, Ibrahim Khalil Lamin, and Kolawole Augustine Ajimoko.
The appointees boast a wealth of expertise from diverse sectors, including banking, telecommunications, corporate governance, compliance, and finance. Their combined experience and vision will contribute to shaping the future trajectory of Access Bank (SL) Ltd.
Cole will serve as Chairman, following the exit of Alice Marie Onomake and will bring his experience to the fore as Access Bank (SL) Ltd works to consolidate its market position and deliver value for all its stakeholders.
“We are thrilled to welcome our new executives to Access Bank (SL) Ltd,” said Ganiyu Sanni, Country Managing Director, Access Bank Sierra Leone Ltd. “Their leadership and vision will be invaluable as we navigate through challenges and pursue sustained success. We extend our gratitude to outgoing Chairman, Alice Marie Onomake, and Non-Executive Director, Aminata B. Dumbuya, for their dedicated service and contributions to the Bank.”
Access Bank (SL) Ltd remains committed to excellence, transparency, and accountability as it embarks on this exciting new chapter. The Bank looks forward to leveraging the collective expertise of its leadership team to drive innovation, foster growth, and create lasting impact for its customers and communities.
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