- NECA Opposes Stamp Duty Payment on Share Capital
To encourage the establishment of more companies in the country, the Nigeria Employers’ Consultative Association has called on the Federal Government to stop the payment of stamp duty on share capital.
The association suggested that a minimum flat fee should be introduced for the stamp duty payment, while responding to questions on how some proposed bills and amendment to some acts would affect private sector operators.
The employers’ group also called on the government to address the issue of appointment of auditors by Micro, Small and Medium Enterprises as contained in sections 357, 370-375 of the Companies and Allied Matters Act CAP C20, LFN 2004.
The Director-General, NECA, Mr. Olusegun Oshinowo, stated that for the country to improve on its ranking of ease of doing business and attract more investors, the act must align with international best practices that called for the elimination or reduction of payment of stamp duty on minimum share capital.
According to NECA, other clauses, which relate to multiple dictatorship and definition of small companies as provided in CAMA should be reviewed.
It said, “We also advocate that the requirement of a minimum share capital be abolished. Government should reduce significantly, or eliminate completely, the payment of stamp duty on share capital. Alternatively, a minimal flat fee should be introduced for the payment of stamp duty and incorporation/filing fees together regardless of the share capital of the company, in order to encourage the establishment of more companies.
“We believe that the MSMEs should be exempted from the requirement to appoint auditors whilst their annual turnover remains below a pre-determined threshold; exempt the MSMEs from the requirement to file audited financial statements along with their annual returns; and the format of the financial statements for the MSMEs should be simpler than for larger companies.”
The Senate had promised to fast-track the passage of over 40 priority bills recommended by the National Assembly Business Environment Roundtable, which would improve the Nigerian business environment and bring the country out of recession.
Commenting on the planned review of the Companies Income Tax Act, Oshinowo warned that the interpretation of Section 19 of the Act by the Federal Inland Revenue Service to impose an additional tax of 30 per cent corporate tax on dividend paid out of retained earnings after paying a 30 corporate tax to the government would amount to double taxation.
According to him, this will provide an incentive for companies to distribute all profits made in a particular financial year to shareholders even when there is compelling need to reinvest such profits in the business.
He added, “This policy encourages capital flight and incidental increase in the demand for foreign currency for repatriation instead of reinvestment, which is not good for the country. We request that the FIRS should issue a circular or financial order exempting retained earnings of all companies as long as corporate tax had earlier been paid in order to facilitate reinstatement of profits so as to generate more employment in Nigeria.
“Government must walk the talk by ensuring that all its agencies should guarantee that any policy they will be introducing henceforth must facilitate the ease of doing business and commerce, and not create bottlenecks.”
The association, however, approved of the National Development Bank of Nigeria (Establishment) Bill, the National Road Fund (Establishment) Bill, and the Petroleum Industry Bill all of which were aimed at improving the business environment in the country.
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.”
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.
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.”
Cryptocurrency4 weeks ago
US Securities and Exchange Commission Goes After Ripple(XRP)
News3 weeks ago
Heartbroken American Mistress Displays Dangote’s Buttocks in a Viral Video
News3 weeks ago
FCMB Group MD Links to Death of Tunde Thomas, Husband of Married Staff He Fathered Her Kids
Crude Oil4 weeks ago
Crude Oil Rose to Almost $52 Per Barrel After Trump Signs Stimulus Package
Finance3 weeks ago
President Buhari Increases Npower Budget by N365 Billion
Technology4 weeks ago
Facebook, Apple Privacy War Deepens as Facebook Removes Apple’s Verification
News3 weeks ago
Tunde Thomas: FCMB Commences Review Into Allegations of Unethical Behavior Against MD Nuru
Investment2 weeks ago
London Real Estate Company for African Investors Announces its Launch