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Rice Importers Anticipate Price Crash

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  • Rice Importers Anticipate Price Crash

Prices of rice in Benin Republic have crashed to as low as N11,000 a bag owing to Nigeria’s ban on importation of rice through the land borders, investigation by our correspondent has shown.

There are also fears that the nation’s ports may soon be facing congestion as all imports will now be directed to the seaports.

Our correspondent learnt from a source in Seme that many ships carrying the product had landed at the Cotonou port, facing low demand. This has reportedly made the importers to decide to sell at low prices.

“Those who imported the rice cannot take them back and they are trying to sell at the minimal price,” the source said.

It was gathered that due to increasing pressure from the Nigeria Customs Service, dealers had started to shun Cotonou rice.

Although the ban on imported rice will take effect in January 2017, the NCS had been raiding markets and seizing the product.

Also, the renewed focus on local rice by the Federal Government and the major rice producing states in Nigeria had positioned the product as one whose price would soon witness a downward movement.

Ebonyi State Government recently placed a ban on imported rice. And according to the Commissioner for Information, Emma Onwe, the state currently produces enough rice to feed its populace.

Apart from Ebonyi, Lagos State has also finalised plans to make local rice from Kebbi State available to Lagos residents at a subsidised price of N13,000 per 50kg bag.

But some dealers have anticipated a further crash in prices with competition between the Cotonou rice and LAKE (Lagos Kebbi) rice.

But there are fears that the situation may lead to port congestion since all rice imports will now be directed to the seaports.

But Nigerian Ports Authority faulted the argument, saying it would only boost the port operation currently ‘dry’ due to low imports.

Speaking in an interview with our correspondent, the General Manager, Public Affairs, NPA, Chief Michael Ajayi, said, “There will be no congestion. They are banning importation of rice through the land borders; they are also banning vehicles through the land borders. Go to the car parks, they are empty. SIFAX Port and Cargo has constructed a terminal for vehicles and spent billions of naira but the place is empty and Nigerians are supposed to work there.

“There can never be congestion because every terminal is running a race to meet its gross registered tonnage. If they meet the GRT, they enjoy some credit and if they do not, they are penalised.”

Ajayi said that the government had improved the clearing system at the ports and there had been a reduction in time spent on cargo and ship loading.

According to him, Vice-President Yemi Osinbajo is heading a committee to ensure that all bureaucracies concerning clearance of goods are properly structured.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

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Nigeria Corporations Paid N238.1 Billion Income Tax Via E-channels in 2020

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Nigeria Corporations Paid N238.1 Billion Income Tax Via E-channels in 2020

Companies in Nigeria have started embracing electronic payment platforms established to ease the tax payment process and facilitate accountability.

According to the National Bureau of Statistics (NBS), businesses operating in Nigeria paid the highest amount of taxes through electronic channels in five years in 2020.

The statistics office puts the total amount paid in Company Income Tax (CIT) through the electronic channels at N238.1 billion in 2020.

The amount represents 16.9 percent of the total CIT paid in 2020 as more businesses adopt safer online payment methods.

NBS noted that payments were done through E-transact, E-tax pay and Remita.

However, a further breakdown of the report showed taxes fell by 13.5 percent from N1.63 trillion in 2019 to 1.41 trillion in 2020 due to the lockdown that crippled business activities in the first half of the year.

Taxes paid by Nigerian owned companies declined by 2.78 percent from N813.17 billion in 2019 to N790.58 billion in 2020. While taxes paid by international companies declined from N615.52 billion achieved in 2019 to N388.77 billion in 2020.

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Aliko Dangote Remains Africa’s Richest Man With $12.1 Billion Net Worth -Forbes

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Aliko Dangote Remains Africa’s Richest Man With $12.1 Billion Net Worth -Forbes

Nigerian industrialist, Aliko Dangote, is Africa’s richest person for the tenth year in a row.

In the Forbes Africa latest billionaires list, Dangote’s total net worth stood at $12.1 billion, a $2 billion increment when compared to last year. Thanks to the 30 percent increase in the price of Dangote Cement share.

Nassef Sawiris of Egypt followed Dangote with $8.5 billion net worth with the majority of his investments coming from construction and other investments.

In third place was Nicky Oppenheimer of South Africa with an $8 billion total net worth.

Mike Adenuga and Abdulsamad Rabio, the two Nigerians, came fifth and sixth with $6.3 billion and $5.5 billion net worth, respectively.Forbes Africa's billionaires list

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Portland Paints, Chemical and Allied Products Plc Agreed to Merge

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Portland Paints

Portland Paints, Chemical and Allied Products Plc Agreed to Merge

Portland Paints and Products Nigeria Plc and Chemical and Allied Products Plc have agreed to merge, according to the latest statement from both companies.

In a statement released through the Nigerian Stock Exchange, the Board of Directors of CAP said we are “pleased to inform you that following discussions and negotiations, the Boards of CAP and Portland Paints have reached an agreement to undertake a merger between both entities (the “Merger” or the “Proposed Merger”).

Accordingly, we “hereby present to you the terms and benefits of the Proposed Merger for your consideration and seek your support and approval to effect the Proposed Merger.

“The Proposed Merger presents a compelling opportunity to create significant value for shareholders of CAP and achieve the company’s strategic growth objectives as a larger company with a broader product portfolio, more corporate owned brands and diversified revenues.

“The resultant entity is also expected to benefit from enhanced distribution capabilities in addition to economies of scale and operational efficiencies.”

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