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New Vehicle Registration Scheme Begins March 31

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  • New Vehicle Registration Scheme Begins March 31

The Federal Government has fixed March 31, 2017 for the commencement of registration of automobiles being imported into the country under the Vehicle Identification Number scheme.

It is expected that the scheme will put an end to the smuggling of vehicles into the country through the land borders, and eliminate revenue leakage by ensuring that appropriate duties are paid on imported vehicles.

The Minister of Finance, Mrs. Kemi Adeosun, who disclosed this during the opening of a workshop on the integration of the National Vehicle Identification System held at the Customs Command and Staff College, Gwagwalada, Abuja on Monday, said the initiative aimed to introduce technology to counter the activities of smugglers and boost revenue collection.

In attendance at the workshop were the Comptroller General of the Nigeria Customs Service, Col. Hameed Ibrahim Ali (retd); Secretary of the Joint Tax Board, Muhammed Abubakar; Corps Marshal, Federal Road Safety Corps, Boboye Oyeyemi; and Assistant Inspector-General of Police, Alkali Usman, who represented the Inspector-General of Police.

Adeosun, according to a statement by her Special Adviser on Media, Festus Akanbi, stated that revenue would be increased by reducing leakages through the nation’s porous borders, adding that there would also be a reduction in imports under-declaration and evasion of duty payment.

The minister stated, “Going forward, we are introducing a new system where all vehicles will be registered using the Vehicle Identification Number, effective March 31, 2017. Customs clearance will be linked to the VIN, and this in turn, will be required by each state government at the point of vehicle registration.

“Effectively, any vehicle on which duty has not been paid will not be able to be registered and driven in Nigeria. We are using technology to make smuggling an unprofitable venture.”

She explained that members of the public would be advised to ensure that they obtained proof of customs duty payment when purchasing a vehicle to avoid being saddled with the liability of unpaid duties and related penalties.

The minister noted that the country was losing billions of naira annually to the activities of smugglers and described the VIN system as a powerful tool against the illicit and dangerous practice.

Adeosun added, “The VIN provides a form of identity for each vehicle that will be linked to proof of ownership and connected to a centralised database. Another advantage of the VIN is that the original vehicle manufacturers will be aware of the vehicles imported into Nigeria.

“This information is important where safety and other recalls are issued internationally. The manufacturers will now have no excuse for not extending the benefits of such recalls to Nigerian customers.

“The objective is to ensure transparency and accountability in the collection of duties and create a central system for tracking all vehicles coming into Nigeria independent of point of entry, shared database for all regulatory and enforcement agencies and requirements. As we expand the database to cover all cars, we will be able to tackle car theft and non-insurance of vehicles, among others.”

According to the minister, the collaboration between the Customs, FRSC and the Federal Inland Revenue Service will be instrumental to achieving this objective.

She added that the programme was also expected to significantly boost vehicle security and ease of transfer of vehicles from one owner to the other.

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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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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Tony Elumelu Acquires Shell, Total, ENI Stakes in OML 17

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Tony Elumelu Acquires Shell, Total, ENI Stakes in OML 17

Tony Elumelu owned Heir Holdings Limited and its related company Transnational Corporation of Nigeria Plc on Friday announced it has completed the purchase of 45 percent stake in Oil Mining Lease (OML 17) through TNOG Oil and Gas Limited.

The acquisition includes all assets of Shell Petroleum Development Company of Nigeria Limited (30 Percent), Total E&P Nigeria Ltd (10 percent) and ENI (five percent) — in the lease.

It was further stated that TNOG Oil and Gas Limited will also have the sole right to operate OML 17.

The field presently has a production capacity of 27,000 barrels per day. Also, there are estimated 2P reserves (proven and probable) of 1.2 billion barrels and an additional one billion barrels in possible reserves — all of oil equivalent.

A consortium of global and regional banks and investors provided a financing component of $1.1 billion for the largest oil and gas financing in Africa in over a decade.

In a statement released on Friday, Shell said the completion was after all the necessary approvals have were received from authorities.

“A total of $453m was paid at completion with the balance to be paid over an agreed period. SPDC will retain its interest in the Port Harcourt Industrial and Residential Areas, which fall within the lease area,” the SPDC said.

Speaking after the completion of the deal, Elumelu said “We have a very clear vision: creating Africa’s first integrated energy multinational, a global quality business, uniquely focused on Africa and Africa’s energy needs. The acquisition of such a high-quality asset, with significant potential for further growth, is a strong statement of our confidence in Nigeria, the Nigerian oil and gas sector and a tribute to the extremely high-quality management team that we have assembled.

“As a Nigerian, and more particularly an indigene of the Niger Delta region, I understand well our responsibilities that come with stewardship of the asset, our engagement with communities and the strategic importance of the oil and gas sector in Nigeria. We see significant benefits from integrating our production, with our ability to power Nigeria, through Transcorp, and deliver value across the energy value chain.

“I would like to thank Shell, Total and ENI, for the professionalism of the process, the Federal Government of Nigeria, the Ministry of Petroleum Resources, and the NNPC for the confidence they have placed in us.”

Tony Elumelu is the Chairman of Heirs Holdings Limited, Transcorp and United Bank for Africa Plc.

Also, read Transcorp Plc Acquires FGN’s 100% Equity in Afam Power for N105 Billion

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Exporters Say CBN Pre-export Requirements is Frustrating Export of Goods

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Exporters Say CBN Pre-export Requirements is Frustrating Export of Goods

Exporters have said the recently introduced pre-export requirements by the Central Bank of Nigeria is creating unnecessary bottlenecks for exporters and the movement of goods out of the country.

Exporters, who spoke under the aegis of the Network of Practicing Non-oil Exporters of Nigeria (NPNEN), said the electronic Nigeria Export Proceed Form now required by financial institutions from exporters had come with so many challenges.

Ahmed Rabiu, the President, NPNEN, explained that the new policy had several requirements that often led to delays and loss of income on the part of exporters.

He said, “We acknowledge the CBN’s desire to ensure that all exports out of Nigeria are documented in order to ensure that the proceeds of such exports are repatriated.

“However, the reality on the field shows that the process is causing undue delays and consequently, encouraging corruption.

According to them, in the new pre-export requirements, the Central Bank of Nigeria wants an export transaction to be initiated through eNXP processing on the trade monitoring system.

After which exporters are expected to have a pre-shipment inspection agent, the Nigeria Customs Service and other designated government agencies carry out their pre-export inspections.

The exporters said the pre-shipment inspection agent was expected to issue a clean Certificate of Inspection while Customs would issue the Single Good Declaration. All these they said takes time and delay goods from leaving the country on time.

Pointing to a recent report, they said about N868 billion worth of goods bound for export were stuck at the ports due to the new policy.

Speaking further Rabiu said, “For example, for the PIA to issue the CCI, the exporter is required to upload a certificate of origin as one of the supporting documents for the eNXP.

“The PIA is also required to upload the CCI to the TRMS(M) and until this is done, the Customs service will not issue the Single Good Declaration.”

He added, “After issuing the SGD, the customs is further required to upload it into the TRMS before the goods are allowed to be gated into the port and loaded on the vessel by the shipping line.

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