Category:

Business

SMEDAN
BusinessHeadlines

Majority of Nigerian MSMEs are Nano-Businesses – SMEDAN

by Folarin Kehinde
written by Folarin Kehinde

Against popular notion, the new national policy on MSMEs categorizes Nigerian businesses with an annual turnover of less than 3 million naira as nano or micro-micro businesses and not even small businesses.

This was one of the revealing takeaways from the maiden edition of the virtual MSMEs Educational Series with the theme Understanding the New National Policy on MSMEs, organized by the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) and facilitated by Femi Boyede Consulting Limited.

Distinguishing the new classifications, Mr Onesi-Lawani Daberuje, SMEDAN’s Deputy-Director at the Department of Policy, Planning, Research, Monitoring & Evaluation explained that, “the bulk of the supposed microenterprises under the old policy are ‘Mom-and-Pop’ enterprises (i.e. Tiny and family-owned, controlled and operated businesses).

If a business has an annual turnover of less than 3 million naira, it is a nano business or a micro-micro/homestead business, while businesses with an annual turnover of 3 – 9 million naira are classified as small businesses.”

Mr. Onesi-Lawani also shared some of the priority areas of the new national policy on MSMEs which includes the empowerment of women and youths, as the policy has created provision for access to women funding as well as linkages to MSMEs export.

Highlighting the key points from the webinar, the convener, Mr. Femi Boyede explained that the main concerns of participants during the event will be formally presented to SMEDAN.

Stressing that information remains one of the key ingredients for success in business, he regretted the poor level of business education among the over 30 million registered Nigerian MSMEs.

“In the next series, we will customize the webinar to be more constructive and beneficial for participants.

It is not only about SMEDAN, we are exploring the possibilities of bringing other relevant government agencies such as NAFDAC and commercial banks to this platform.”

The webinar which took place on Saturday, 24th September 2022 was officially opened by Mr. Monday Ewans, the Director, Enterprise Development who represented Mr. Olawale Fasanya, the Director General of the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN).

In his opening remark, he explained that the webinar series is meant to serve as an MSMEs clinic for the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN).

“Through this educational series, we want to bring the MSMEs together to practically learn, and to give them an opportunity to table their challenges and get practical solutions from experts with a view of becoming conversant with issues that affect their businesses, starting with the new national policy on MSMEs.” Mr. Ewans said.

0 comments
0 FacebookTwitterPinterestThreadsBlueskyEmail
NCC
BusinessHeadlines

FG To Make N500 Billion From 5G in 2023 – NCC

by Folarin Kehinde
written by Folarin Kehinde

The Nigerian Communication Commission (NCC) has announced that it plans to generate over N500 billion for the Federal Government in 2023 fiscal year, by auctioning 5G spectrum technology.

Executive Vice Chairman of the NCC, Prof. Umar Danbatta disclosed this at an  interactive meeting on 2023-2025 Medium Term Expenditure Framework and Fiscal Strategy Paper, MTEF-FSP, organised by the Senate Committee on Finance.

Danbatta said the projected revenue would be realised from the auctioning of two 5G spectrums,saying that the bidding process for auctioning of the spectrums  for 2023 had began.

He also disclosed that NCC had generated N257 billion in the first quarter, of 2022, while N195 billion was remitted to the government coffers.

Danbatta further said from April to August, N318 billion was generated, while N214 was remitted.

According to him, the fund realised was occasioned by the auctioning  of  two 5G spectrums at the rates of N263 million and N273 million dollars.

On broadband penetration in Nigeria, he said stood at 44 per cent, saying that about 150 million Nigerians have access to the Internet, with over 80 million having access to high speed internet.

According to him, the target was to hit 75 per cent penetration in 2025, adding that it was hopeful of achieving 50 per cent penetration by end of 2022.

He advised Nigerians to make use of the 112 emergency national number to report issues of  emergency, like fire outbreak, accidents, among others and toll free number 622 to lodge complaints on issues relating to drop calls.

0 comments
0 FacebookTwitterPinterestThreadsBlueskyEmail
Business

Nigeria’s Debt Hits N42.8trillion – DMO

by Folarin Kehinde
written by Folarin Kehinde

Nigeria’s total public debt stock rose from N41.60trillion (100.07 billion dollars) in March to N42.84trillion (103.31 billion dollars) in June.

The Debt Management Office (DMO), led by Patience Oniha, provided the figure in a statement on Tuesday.

The total debt represents the domestic and external debt stocks of the Federal Government, the 36 State Governments and the Federal Capital Territory (FCT).

Though the foreign component of the debt remained at the same level of N16.61trillion (39.96 billion dollars), the local component increased to N26.23trillion (63.24 billion dollars).

The DMO noted that more than 58 per cent of the external debt stock are concessional and semi-concessional loans.

They were obtained from the World Bank, International Monetary Fund, Afrexim and African Development Bank, and countries including Germany, China, Japan, India and France.

The total domestic debt stock went up from N24.98trillion (60.1billion dollars) in March to N26.23 trillion (63.24 billion dollars) in June.

This followed Federal Government’s borrowings to part-finance the deficit in the 2022 Appropriation (Repeal and Enactment) Act, as well as new borrowings by state governments and the FCT.

“The Debt-to-GDP as at June 30, was 23.06 per cent compared to the ratio of 23.27 as at March 30. It remains within Nigeria’s self-imposed limit of 40 per cent”, the statement added.

0 comments
0 FacebookTwitterPinterestThreadsBlueskyEmail
BusinessHeadlines

Udom Establishes Automobile Assembly Plant In Akwa Ibom

by Folarin Kehinde
written by Folarin Kehinde

Governor Udom Emmanuel of Awka Ibom State, has facilitated the establishment of the first automobile assembling plant in Awka Ibom State.

The project is carried out by a partnership between MIMSHAC company, Israel and Awka Ibom State government.

MIMSHAC company intends to build a fully automated and filtering manufacturing company in Africa in addition to the car assembling plant in the state.

According to Mr Valentino Nnaemeka Okorie, the plant would employ over three thousand Abkwa Ibom Indigenes.

MIMSHAC’s Israeli partner, Mr Ronen Golan, appreciated Governor Udom Emmanuel for affording them the opportunity to invest in Akwa Ibom which he is particularly proud of and assured the press that the assembling of automobiles will begin in earnest at the plant in November 2022.

Mr Okorie said that MIMSHAC constructed the plant in partnership with the Isreali to ensure they transfer their technology to the qualified engineers who will work at the plant.

He assured the engineers that MIMSHAC intends to source for consumables and furniture locally from small and medium-scale businesses.

Automobile engineers who hail from Akwa Ibom, expressed satisfaction at the professionalism of the practical interview process and thanked Governor Emmanuel for establishing the car assembling plant which will provide employment opportunities for them.

0 comments
0 FacebookTwitterPinterestThreadsBlueskyEmail
Buhari
BusinessHeadlines

Buhari Grants 16 Trillion Naira Tax Waiver To Dangote, Others

by Folarin Kehinde
written by Folarin Kehinde

President Muhammadu Buhari administration has reportedly approved a waiver of N16.76tn in revenue to tax reliefs and concessions given to large companies between 2019 and 2021.

The beneficiaries of the tax reliefs and concessions included Dangote, Lafarge, Honeywell and 43 other major beneficiaries.

At least 46 companies had benefitted from various tax incentives and duty waiver schemes as of the end of 2021, while the requests of 186 companies were still pending, Pointblanknews.com learnt.

This is according to the tax expenditure statement (TES) reports in the Medium-Term Expenditure and Fiscal Strategy documents posted on the website of the Budget Office of the Federation.

The TES deals with revenue forgone on Company Income Tax, Value Added Tax, Petroleum Production Tax, and Customs Duty.

In the TES report, Federal Government had forgone revenue of N4.2tn in 2019 from two main sources, CIT and VAT.

The estimated amount of revenue forgone for CIT was N1.1tn while N3.1tn was for VAT.

“The most significant conclusion is the large size of Nigeria’s revenue forgone from just two of the main taxes, i.e., CIT and VAT. Nigeria’s non-oil revenue potential is at least twice its current collections.

“The preliminary estimate of revenue forgone from CIT incentives and concessions in 2019 is N1.1tn; for contrast, 2019 CIT collections was N1.6tn. The preliminary estimate of revenue forgone from VAT policy choices and compliance gaps is estimated to be NGN 3.1tn and could possibly be more. It is worth reiterating that revenue forgone from Customs Duty, Excises, Petroleum Production Tax, Personal Income Tax and concessions under the Oil and Gas Zones legislation is still to be computed,” The TES report read.

According to the TES report, the figure for revenue foregone would likely exceed N4.2tn if there were sufficient data, especially from Customs Duty, Excises, PPT, Personal Income Tax and concessions under the Oil and Gas Zones legislation.

The report also said by 2020, the figure rose to N5.8tn, with the majority of it coming from revenue forgone under VAT. A breakdown showed that N4.3tn was forgone under VAT; N457bn under CIT; N307bn under PPT, and N780bn under customs duty.

It was discovered that five countries accounted for about 86 per cent of total customs relief, with China accounting for nearly two-thirds of total relief granted. Netherlands, Togo, Benin and India were the other top sources of supplies benefitting from the reliefs.

In 2021, the total figure continued to rise, hitting N6.79tn, with revenue foregone on VAT accounting for most of it. A breakdown showed that N3.87tn was forgone under VAT, N548.40bn under CIT; N337.70bn under PPT; N1.84tn under customs duty; and N111.15bn under imports VAT.

The Nigerian government had to forgo a total of N16.79tn in tax reliefs for the three-year period, Customs duty waivers and concessions, according to an analysis by The PUNCH.

Under this figure, tax exemptions covered imported goods covered by diplomatic privileges, military hardware, fuels and lubricants, hospital and surgical equipment, aircraft (their parts and ancillary equipment), plant and machinery imported for use by companies in export processing zones, health and medical supplies to abate the spread of COVID.

Other exemptions were said to be included reliefs on the presidential initiative on COVID-19 supplies, Import Duty and VAT on commercial airlines.

It was also noted that five countries accounted for about 92 per cent of total Customs relief with China accounting for nearly half of the total relief granted. Singapore, Netherlands, Togo, Benin Republic and India were the other top sources of supplies benefitting from the reliefs.

They were beneficiaries of the pioneer status tax relief under the Industrial Development Income Tax Act with tax reliefs for a three-year period.

This was contained in the Q4 2021 PSI report released by the Nigeria Investment Promotion Commission.

The pioneer status is an incentive offered by the Federal Government, which exempts companies from paying income tax for a certain period. This tax exemption can be full or partial.

The incentive is generally regarded as an industrial measure aimed at stimulating investments in the economy.

The products or companies eligible for this pioneer status were said to be those that do not already exist in the country.

These companies are Dangote Sinotrucks West Africa Limited, Lafarge Africa Plc, Honeywell Flour Mills Nigeria Plc, Jigawa Rice Limited, and Stallion Motors Limited.

Others are African Foundries Limited, Royal Pacific Group Limited, Kunoch Hotels Limited, Princess Medi Clinics Nigeria Limited, Medlog Logistics Limited, and Masters Liquefied Gas Limited.

Whereas, Nigeria’s budgetary situation is dire, as seen by low tax receipts. According to the Federal Inland Revenue Service, the country generated N6.4tn in taxes in 2021. This amounts to approximately $15.433 billion.

0 comments
0 FacebookTwitterPinterestThreadsBlueskyEmail
BusinessHeadlines

Kuda Bank Losses Over $16 Million Dollars In Two Years

by Folarin Kehinde
written by Folarin Kehinde

Kuda Bank MFB, a disruptive fintech and neobank has been recording financial losses in the past two years. Within a two year period, the net loss of the bank stands at over $16 Million dollars.

By the end of the 2021 financial year, the company recorded a loss of ₦6,092,554,866 ($14,214,681), a 602% rise from the ₦868,062,000 ($2,025,295) loss it made in 2020, according to its financial report. .

The financial report indicated that the company’s revenue increased by 4,315% from ₦72,649,000 in 2020 to ₦3,207,177,570 in 2021. However, after every expense had been deducted, the company closed the year at a net loss, with high credit loss/impairment charge and operating expenses contributing the most to the loss.

Bad loans delivered the hardest stroke

The report said that “the nonperforming loan (NPL) recorded by the firm is too high for the comfort calculated at 69%”, and this, as expected, drove the neobank to a high impairment rate—valued at ₦2,258,698,669. For context, loans are considered impaired when, based on current information and events, it is probable that the creditor will be unable to collect all interest and principal payments due according to the contractual terms of the loan agreement.

Specifically, in the analysis part of the report, the impairment is said to have eroded 96% of the interest income made from the loan offer. What this means, in general, is that Kuda extended a lot of bad credit through its overdraft product and that ate into its balance sheet.

Kuda, a few days before it announced its $25 million Series A round in March 2021, started piloting its overdraft product with over 2,500 users who “have been using their Kuda accounts actively”. By June, it claimed that the product had hit 50,000 users weekly. The company once said in a statement that at the end of the second quarter of 2021, they had disbursed $20 million worth of credit to over 200,000 qualified users, with a 30-day repayment period.

In fact, the company’s co-founder and CEO Babs Ogundeyi once claimed that the neobank has seen “minimal” default because of its approach. “We use all the data we have for a customer and allocate the overdraft proportion based on the customer’s activities, aiming for it not to be a burden,” Ogundeyi said in that statement.

It’s worth mentioning that traditional banks generate a big part of their revenue from lending. In fact, while Kuda’s NPL ratio ended the year at 69%, the average ratio in the traditional banking industry dropped to 4.8% in the same period. Traditional banks mostly extend credit to a few low-risk businesses with substantial collateral that already mitigates defaulting, while Kuda only works with users’ activities on its app. Still, the difference between the two ratios is disturbing.

The aforementioned financial report analysis similarly stated that “the firm’s risk appetite, criteria and strategy relating to retail and business loan calls for immediate restructuring.”

source

0 comments
0 FacebookTwitterPinterestThreadsBlueskyEmail
Ncc chrome extensions
BusinessHeadlines

Five Chrome Extensions Stealing User Information – NCC Warns

by Folarin Kehinde
written by Folarin Kehinde

The Nigerian Communications Commission (NCC) has identified five malicious chrome extensions that they urge Nigerians to delete immediately.

According to the commission, the extensions surreptitiously track online browser activities and steal users’ data.

These extensions were identified by the Computer Security Incident Response Team of the NCC (NCC – CSIRT) and announced it on their website at ncc.gov.ng.

The five malicious extensions are McAfee Mobile, Netflix Party, Netflix Party, Full Page Screenshot Capture Screenshotting, FlipShope Price Tracker Extension, and AutoBuy Flash Sales.

These extensions have been downloaded over 1 million times at the time of writing this report. Their sole intentions are to steal user data and monitor their online activities.

According to NCC-CSIRT the five google chrome extensions identified have a high probability and damage potential, have been downloaded more than 1.4 million times, and serve as access to steal users’ data.

Part of the advisory from NCC reads: “The users of these chrome extensions are unaware of their invasive functionality and privacy risk.

Malicious extensions monitor victims’ visits to e-commerce websites and modify the visitor’s cookie to appear as if they came through a referrer link.

Consequently, the extensions’ developers get an affiliate fee for any purchases at electronic shops.

NCC also stated that although the google team removed several browser extensions from its Chrome Web Store, keeping malicious extensions out may be difficult.

The NCC-CSIRT, thus, recommended that telecom consumers observe caution when installing any browser extension.

These include removing all listed extensions from their chrome browser manually. Internet users are to pay close attention to the promptings from their browser extensions, such as the permission to run on any website visited and the data requested before installing it.

Although, some extensions are seemingly legit, due to the high number of user downloads, these hazardous add-ons make it imperative for users to ascertain the authenticity of extensions they access.

0 comments
0 FacebookTwitterPinterestThreadsBlueskyEmail
BusinessHeadlines

Breaking: Nigerian Inflation Hits 20.52 In 2022

by Folarin Kehinde
written by Folarin Kehinde

The National Inflation rate has hit 20.52 percentage in August, 2022.

The Consumer Price Index (CPI) which measures inflation rose to 20.52 per cent year on year in August compared to 17.01 per cent in the corresponding period in 2021, the National Bureau of Statistics (NBS) said Thursday, 15 September 2022.

It said the 3.52 per cent rise indicated that the headline inflation rate increased in August 2022 when compared to the same month in the preceding year.

According to the CPI report for August 2022,  which was posted on the NBS website, food hike stood at 23.12  per cent on a year-on-year basis in the period under review,  which was 2.82 per cent higher than the 20.30 per cent recorded in August 2021.

However, core inflation, which excludes the prices of volatile ag­ricultural produce stood at 17.20 per cent year on year in August,  up by 3.79 per cent when compared to 13.41 per cent recorded in August 2021.

Details later…

0 comments
0 FacebookTwitterPinterestThreadsBlueskyEmail
BusinessHeadlines

Google Launches $4 Million Dollars Fund For African Startups

by Folarin Kehinde
written by Folarin Kehinde

Google has announced the selection of 60 eligible startups across Africa with $4 million dollars funding to enable them scale up their ongoing work; Nigeria came tops with 23 slots.

The programme, which is called Google Black Founders Fund (BFF) for startups in Africa, is the second phase of the global tech giant’s funding for African startups.

Folarin Aiyegbusi, Google’s Head of Startup Ecosystem, Sub Sahara Africa, said in a statement on Tuesday that the startups joining the programme would receive a total of $4m in funding

Aiyegbusi said that the startups would also receive support to enable them to scale up their ongoing work.

He said that the programme reinforced Google’s commitment to empowering entrepreneurs and startups in the region as a vital prerequisite to driving employment and growth on the continent.

“Africa is a diverse continent with massive opportunities, but the continent is faced with the challenge of limited diversity in venture capital funding flow.

“We hope that the Black Founders Fund programme will be able to bridge the gap of disproportionate funding between expat startups over local and black-led companies

“Each of the selected startups would receive support in the form of a six-month training programme that includes access to a network of mentors to assist in tackling challenges,’’ Aiyegbusi said.

According to him, the startups will also be part of tailored workshops, support networks and community building sessions.

Aiyegbusi said that the 60 grantees would also get non-dilutive awards of between $50,000 and $100,000 and up to $200,000 in Google Cloud credit.

He said that grantees, made up of 50 per cent women-led businesses, hailed from Botswana, Cameroon, Ethiopia, Ghana, Kenya, Nigeria, Rwanda, Senegal, South Africa and Uganda.

According to Aiyegbusi, the startups specialised in sectors such as fintech, healthcare, e-commerce, logistics, agtech, education, hospitality and smart cities.

He listed the top five countries with the most startups selected for the programme as Nigeria with 23 grantees, Kenya with 12 grantees, and Rwanda with six grantees.

Aiyegbusi said that South Africa had five grantees and Uganda had four grantees.

According to him, Botswana and Senegal have one selected startup each, Cameroon and Ghana both have three grantees each while Ethiopia has two selected grantees.

Aiyegbusi said that the Google for Startups programme, which was launched in April 2012, had created over 4,600 jobs and raised more than $290 million dollars in funding.

He added that the programme would introduce the grantees in Africa to Google’s products, connections, and best practices.

Aiyegbusi said that it would help the founders to level the playing field as they built better products and services that added value to the African economy.

According to him, funding for the programme will be distributed through Google’s implementation partner, CcHUB.

Aiyegbusi said that the equity-free cash assistance to startups would enable the startups to take care of immediate needs such as paying staff, funding inventory, and maintaining software licences.

He explained that this was to help the grantees buffer the cost of taking on debt in the early stages of their businesses, as many of them had no steady revenue streams yet.

Aiyegbusi said that funding Black Founders in Africa fueled generational and systemic change.

Also speaking at the event was the Director General, National Information Technology Development Agency, Kashifu Inuwa, who said that the recently passed Nigeria Startup Bill by the National Assembly will help to institutionalize legal frameworks that will enhance startup growth in Nigeria.

source: pointblanknews

0 comments
0 FacebookTwitterPinterestThreadsBlueskyEmail
BusinessHeadlines

FG Approves Nigeria-Kuwait Air Deal

by Folarin Kehinde
written by Folarin Kehinde

The Federal Government’s, Federal Executive Council (FEC) has approved the signing of a Bilateral Air Services Agreement between Nigeria and Kuwait.

Minister of Aviation, Hadi Sirika, disclosed this on Wednesday while briefing State House Correspondents after FEC meeting presided over by President Muhammadu Buhari.

Sirika said that the agreement would open up airline services between the two countries in accordance with the provisions of the International Civil Aviation Organisation (ICAO).

“That memo has to do with the signing of Bilateral Air Service Agreement between the Federal republic of Nigeria and the State of Kuwait.

“ In that memorandum as approved, the text was earlier on initialled and was cleared by the Federal Ministry of Justice.

“It provided that the content of the agreement should have reciprocal rights and privileges for both Nigeria and Kuwait with the airlines involved.

“This will open up opportunities for air transportation between the two countries, in accordance with the International Civil Aviation Organisation (ICAO) convention of Dec. 7, 1944, to which both countries are signatories.’’

The minister debunked media reports alleging that N14 billion had been spent on the planned floating of a National carrier for the country.

He said that that Nigeria Air would be a reality as it would be introduced for the benefit of Nigeria and the rest of Africa.

Sirika said that FEC also approved a contract for the hiring of consultants for revalidation and collection of aviation height clearance for high rise buildings and masts that could obstruct flight operations in Nigeria.

He said that the contract would run at no cost to the budget because the revenues accrued there-in would be used to pay the consultants.

“We got approval for the award of contract for the engagement of consultants for revalidation and collection of aviation height clearance on behalf of the Nigerian Civil Aviation Authority (NCAA).

“ The contract was approved with a scale and at no cost to the budget.

“For more clarity, the aviation height clearance is extremely important to the safety of air operations.

“What concerns us in civil aviation is how efficient you depart from point A to point B.’’

He said there had been air crashes in the past due to the location of communication masts citing the incident in Jos, Plateau.

Sirika said that having masts around the airport, or its vicinity or even a building, so long as it caused unsafe operations, needed to be regulated by the NCAA.

He said that the consultants would go after people with such masts or buildings, to ensure they abided by the regulations.

0 comments
0 FacebookTwitterPinterestThreadsBlueskyEmail
Newer Posts
Older Posts