Business

‘Tax reform’ll eliminate regulatory bottlenecks, boost MSMEs growth’

Published

2 days ago

March 24, 2025

The Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) has expressed optimism that the tax reform bill will eliminate regulatory challenges and spur the growth of micro, small, and medium enterprises (MSMEs).

Speaking at a stakeholder engagement on tax reforms in Abuja on Friday, Charles Odii, SMEDAN’s Director-General, said the bill aims to remove multiple taxation and exempt businesses with annual earnings below N100 million from key tax obligations.

“We have 39,654,385 nano, micro, small, and medium enterprises (MSMEs) in Nigeria, and the first step towards ensuring their success is sensitisation,” Odii stated. “If this tax reform bill is passed, many small businesses will no longer be required to pay VAT, CIT, PAYE, and several other taxes.”

The event, themed “Understanding the Tax Reform Bills: Benefits and How MSMEs Can Maximise Tax,” brought together key stakeholders, providing business owners with clarity on the bill’s provisions.

Odii also commended the House of Representatives for passing the bill and urged the Senate to follow suit. He stressed that when small businesses thrive, the entire economy benefits.

Support from MSME Association

Abdulrashid Yerima, President of the Nigeria Association of Small and Medium Enterprises (NASME), praised the proposed reforms, highlighting how they address major concerns such as multiple taxation and arbitrary levies by regulatory agencies.

“Our members have long struggled with excessive taxation at different levels—import duties, levies on turnover, and arbitrary charges from state and local governments,” Yerima said. “The chairman of the tax reform committee has clarified that many of these burdens will be eliminated once the bill becomes law.”

He further emphasized the need for proper implementation to prevent unauthorized tax collectors and non-state actors from imposing illegal levies on small businesses.

With MSMEs playing a crucial role in Nigeria’s economy, stakeholders believe the tax reform bill could provide much-needed relief and foster business expansion.

Business

Dangote polypropylene production will revive textile industry, save Nigeria $267m — MAN

Published

5 hours ago

March 26, 2025

Online Editor

The Manufacturers Association of Nigeria (MAN) has stated that the production of polypropylene by the Dangote Petroleum Refinery & Petrochemicals will revive Nigeria’s struggling textile industry and save the country $267 million in import costs.

In an interview on the Channels Business Incorporated Programme, the Director-General of MAN, Segun Kadir-Ajayi, highlighted the struggle of the textile industry, which was once thriving and employed over 25,000 workers aged between 18 and 40 in the northern region alone. He explained that many companies have been forced to shut down due to the absence of local polypropylene production and the scarcity of foreign exchange required for imports.
He further stated that the production of polypropylene by Dangote Refinery and Petrochemicals will ensure that Nigeria, which currently imports 90% of its annual polypropylene requirements (amounting to 250,000 metric tonnes), will now become a net exporter, generating foreign exchange to strengthen the economy.

“For us in the manufacturing sector, this is a welcome development. It more than covers the 250,000 metric tons that constitute our national demand, which has been severely lacking. You can imagine the sectors it will impact—the textile industry, the plastic industry, the furniture industry. We are looking at an amount in the region of $267 million being saved. This is the amount spent every year in scarce dollars to import these materials. It is a welcome development for manufacturers, as it will incentivize investment in the sector,” he said.

Dangote’s $2 billion Petrochemical Plant in Ibeju-Lekki, Lagos, is designed to produce 77 grades of polypropylene. With a capacity of 900,000 metric tonnes per year and a turnover of $1.2 billion, it aims to meet the growing demand in plastic processing industries both in Africa and globally. The plant is expected to boost investment in downstream industries, create jobs, increase tax revenues, reduce foreign exchange outflow, and contribute to the country’s GDP growth.

Business

Heritage bank depositors appeal to National Assembly for intervention

Published

6 hours ago

March 26, 2025

Online Editor

Depositors of Heritage Bank with deposits exceeding N5 million have appealed to the National Assembly to intervene and assist in the resolution of the bank’s license by the Central Bank of Nigeria (CBN).
The depositors claimed that the revocation has left them in financial distress, with their livelihoods and businesses hanging in the balance.

In a statement, the depositors expressed frustration that despite previous assurances from the CBN that the bank was not in distress, they have been unable to access their funds.

The situation, according to them, has led to widespread economic hardship with businesses shutting down, life savings crumbling, and daily expenses coming to a standstill.

The statement reads, “Some depositors have died from heart attacks, while others are hospitalized. We are at a loss, and our families are suffering.

“We are perplexed by the action exhibited by the CBN after Unity Bank merged with Providus Band, which ensured a smooth transition of depositors. We are aware that First Bank was paid N460b of its deposits in Heritage Bank before its liquidation. Why should we be treated differently, subjected to an everlasting process to recover our funds from the sale of Heritage Bank’s properties?

“We plead that you intervene by advising CBN to pay all depositors in full without further delay. Advise that a few other banks absorb the depositors while ensuring a smooth transition as was done in the case of Unity Bank and Providus Bank.

“Utilize Heritage Bank’s reserve ratio to settle depositor’s claims. Treat depositors equally as was done with First Bank and verify NDIC’s claim of paying the insured sum to 85% of depositors and ensure prompt payment to all eligible depositors.”

Business

Naira appreciates N1,590/$ in parallel market

Published

1 week ago

March 18, 2025

Online Editor

The Naira appreciated to N1,590 per dollar in the parallel market on Monday, strengthening from N1,600 per dollar recorded over the weekend.

However, in the Nigerian Foreign Exchange Market (NFEM), the local currency depreciated to N1,549 per dollar, according to data from the Central Bank of Nigeria (CBN). The indicative exchange rate rose slightly from N1,548 per dollar last Friday, marking a N1 depreciation.

As a result, the gap between the parallel market and the NFEM rate narrowed to N41 per dollar, down from N52 per dollar last weekend.

The exchange rate movement reflects ongoing fluctuations in Nigeria’s forex market as authorities continue efforts to stabilize the currency.