Connect with us

Markets

20m Nigerians to Lose Access to Telecoms Services – ATCON

Published

on

Telecommunications
  • 20m Nigerians to Lose Access to Telecoms Services

The Association of Telecommunication Companies of Nigeria has said the passing into law of the nine per cent Communications Service Tax bill currently before the Senate would deprive 20 million Nigerians access to telecommunications services.

This was contained in a statement issued on Saturday in Lagos by ATCON’s President, Mr. Olusola Teniola, after he led a delegation of his members on a courtesy visit to the Senate President, Dr. Bukola Saraki.

He urged the Senate to use its legislative powers to reduce the nine per cent CST to 0.2 per cent.

According to the ATCON president, the nine per cent new tax on telecommunication services being proposed by the National Assembly will exclude 20 million Nigerians, which represent 10 per cent of the country’s population, from accessing telecommunication services, the News Agency of Nigeria reports .

“ATCON’s mandate is to make meaningful input to all aspects of economic development, including legislation and management of telecommunication industry, so it continues to oil growth and development. The ongoing work on the proposed nine per cent Communication Service Tax Bill is a trending subject.

“We will be happy to support the government to make the best of our tax efforts, which certainly are key components of strengthening the economy and sustaining our industry. Contrary to uninformed opinions, we do not object to reforms in taxation, neither do we regard taxes as burden,” Teniola said.

He added, “We ask for a reconsideration of the CST Bill; we recommend, as an alternative, a tax reform that increases the current Value Added Tax by a new one per cent added for the purpose of development of communications. Another alternative is that the tax being proposed in the bill should be limited to 0.2 per cent.”

Teniola pleaded that the template, with which the telecommunication industry was viewed and assessed, should be slightly modified.

“The truth is that there is severe over-taxation in our industry. It explains the slow penetration of services into areas yet to be covered by our services across the country. Contrary to popular belief, telecommunication operators and service providers are barely sustaining their existence in these hard times.

“There are reasons to suggest that the desire to widen the tax net is laudable and that as things stand telecommunication is about one of the few areas where the net-capture may be widened,” the ATCON boss stated.

Responding, Senate President, Bukola Saraki assured the ATCON leadership that the Senate would only make laws that would boost the economy.

“The ICT sector is critical to the Nigerian economy; as a result, the Senate will never make laws that will push the sector into a negative performance. Rather, the Senate will make laws that will increase its performance to generate revenue and create jobs,” Saraki said.

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 long experience in the global financial market.

Continue Reading
Comments

Markets

Crude Oil Rises Above $43 Per Barrel on Improved Demand

Published

on

oil jerk

Crude Oil Rose Above $43 Per Barrel on Improved Demand

Global oil prices surged on Wednesday as global demand for the commodity improved.

The Brent crude oil, against which Nigerian crude oil is priced, increased from $42.68 per barrel it traded on Tuesday to $43.48 per barrel on Wednesday during the New York trading session.

Crude oil rises on improved demandsWhile the US West Texas Intermediate crude oil surged by 80 cents from $40 per barrel to $40.80 per barrel.

The surge in prices was after OPEC and allies, known as OPEC plus, announced on Wednesday that they would restore part of capped crude oil production back to the oil market next month.

“As we move to the next phase of the agreement, the extra supply resulting from the scheduled easing of production cuts will be consumed as demand continues on its recovery path,” Saudi Energy Minister Prince Abdulaziz bin Salman said at the start of an OPEC+ video conference on Wednesday. “Economies around the world are opening up, although this is a cautious and gradual process. The recovery signs are unmistakable.”

OPEC plus had capped production by 9.7 million barrels per day in April and later reduced it to 7.7 percent earlier this month as more economies reopened for operations.

However, while the number of new COVID-19 cases continues to surge in the United States, the world’s largest economy, OPEC plus said demand for its commodity has risen in recent weeks, hence, the need to increase oil production.

Continue Reading

Markets

South Africa’s Inflation Dips to 15 Year Low of 2.1% in May

Published

on

chinese

South Africa’s Inflation Rate Declines to 15 Year Low in May

South Africa, Africa’s second-largest economy, said its inflation rate moderated to a record 15-year low in the month of May.

According to South Africa’s national statistics agency, Consumer Price Index, which measures inflation rate, moderated to 2.1 percent year-on-year, below the 3 percent to 6 percent range targeted by the central bank.

This, experts attributed to drop in fuel cost and the slow down in general spending due to COVID-19 lockdown.

Busisiwe Radebe, an economist with Nedbank, said “This number won’t be a surprise to the Monetary Policy Committee (MPC). Inflation will have to surprise in a major way to what they have in their forecasts. What they will be concerned about most is growth.”

In May, the nation’s central bank had lowered the interest rate to a record low of 3.75 percent to stimulate the recession and lockdown ravaged economy. The bank did strike a cautious tone, warning monetary policy alone could not spur economic growth.

“At the May meeting, the feeling was the bank had reached the trough in rate cuts. So they’ll probably hold rates,” Radebe said. He added that a shift in the central bank’s 7 percent GDP contraction would be key indicator.

Continue Reading

Investment

Barclays Tell High Net Worth Investors to Shun Africa and Other Emerging Economies

Published

on

Barclays Bank

Barclays to High Net Worth Clients, Stay Off Africa and Other Emerging Economies

Barclays, one of the world’s largest investment banks, has started advising high net worth clients to stay off Africa and other emerging economies.

According to Barclays, despite the recent recovery noticed in emerging-market stocks, investors are better off avoiding the risks that still abound in emerging nations. Barclays Plc, however, advised high net worth clients to focus on U.S equities despite the S&P’s breakneck rally.

The investment bank said emerging economies do not have enough fiscal buffers to spend their way out of the COVID-19 pandemic and will likely continue to struggle in the near-time compared to the US with 12 percent of gross domestic product fiscal-support.

It said the huge US stimulus may halt rebound in emerging-markets stocks as more money is expected to flow into the world’s largest economy and its European counterparts.

“Compared to the U.S., emerging-market economies appear more vulnerable,” said Haider, the London-based managing director and head of global growth markets. “Their central banks have less room to maneuver, their governments may not be able to provide unlimited support and equity markets, given their sector mix, can be more challenged by an economic slowdown.”

Barclays added that even after 33 percent rebound in stocks of emerging markets since the panic selloff subsided in March, stocks are still down by 9 percent from year-to-date while the US S&P 500 stocks are up by 45 percent. Presently, their stocks trading at a 36 percent discount to US stocks, up from 25 percent three months ago.

Continue Reading
Advertisement
Advertisement
Advertisement
Advertisement

Trending