Business
Smuggling: FG Should Reduce Import Duty On Vehicles -STOAN
The Seaport Terminal Operators Association of Nigeria (STOAN) has said that the Federal Government’s move to stop smuggling through the ban on importation of vehicles through the land borders should be complemented with a reduction in customs duty.
The spokesman of STOAN, Mr Bolaji Akinola, said this in an interview with newsmen in Lagos, yesterday.
The Tide reports that the Federal Government recently announced a ban on importation of vehicles through the land borders with effect from Jan. 1, 2017.
According to the STOAN spokesman, the move to stop smuggling of vehicles into the country through the ban will not yield the desired result if not complemented with a corresponding reduction in customs duty.
Akinola spoke against the backdrop of the new Vehicle Identification Number (VIN) scheme announced this week by the Federal Government.
“The rate of smuggling in Nigeria especially of vehicles is alarmingly high.
“This is essentially due to the high and prohibitive import duty on vehicle which is more than twice what obtains in other countries in the sub-region.
“While the VIN scheme sounds like a good idea, it may not do much to check smuggling.
“The main antidote to smuggling is the reduction of Customs duty on vehicles to bring it to the level obtainable in other West African countries, ‘’ the STOAN spokesman told newsmen.
He said that the duty should not be more than 10 per cent.
“Why exactly are people landing their vehicles in the ports of neighbouring countries and smuggled into Nigeria?
“It is to avoid the high Customs duties at the ports,’’ Akinola said.
He said it had become difficult to check smuggling through the land borders because of the preponderance of illegal entry routes into the country.
According to him, there are more than 1,600 illegal entry routes into Nigeria.
“The borders are porous. It will be difficult for any agency of government to effectively patrol and check the influx of goods and persons through those porous entry points.
“There is a need to mount barriers and build either strong high walls or electric fences at most of those entry points. Most importantly, government must deploy technology to secure our borders,’’ he told said.
Akinola said that the high rate of import duty on vehicle had shot up the prices of vehicles beyond the reach of many Nigerians as “the prices of vehicles have doubled over the past 18 months”.
“This is due to the high Customs duty, which is 35 per cent plus an additional surcharge of 35 per cent bringing the total government’s tariff to 70 per cent.
“This is way too high and when you place it side by side the high rate of foreign exchange, you see why Nigerians are paying more to acquire cars.
“The ban on importation through land borders is not enough to check smuggling and bring down the prices. Only a reduction of Customs duty will achieve that,” he said.
The STOAN spokesman also said that there were too many government agencies operating at the ports.
According to him, this (presence of many government agencies) is contributing to the high cost of doing business at the ports.
“The high cost of doing business at the port, which many allude to, is not because of high charges by operators but due to high Customs tariff and multiple checks by government agencies.
“Reduce Customs duty, reduce the huge crowd of government agencies operating at the ports and automate the Customs clearing process, which is way too manual and regressive.
“Someone described the Customs clearing process as archaic and way too expensive.
“There are multiple checks within and outside the ports, which must be tackled by government.
“A former Finance Minister, Dr Ngozi Okonjo-Iweala ejected many of the agencies a few years ago but they were all back in their multitude,” Akinola said.
He said that Nigerian ports had ample capacity to handle both imports and exports and to support the Federal Government’s revenue diversification drive.
“There is ample capacity at the ports. Most terminals are operating at less than half their capacities.
“Our ports were vibrant until the Jonathan administration enacted some policies that chased shippers away.
“This government will have its name in gold by reversing those ill-advised policies so as to bring back activities and jobs to the ports,” the STOAN spokesman said.
Business
Wigwe’s Luxury Yacht Goes For N8.74 Billion After Legal Proceedings
The daughter of late Nigerian banking executive, Herbert Wigwe has sold her father’s luxury yacht for $6.5 million which is the equivalent of N8.74 Billion following legal proceedings involving her, Otutochi Wigwe, and the company holding the vessel, Grosvenor Marine Ventures Limited.
This was contained in an online report obtained by The Tide Source in Port Harcourt recently.
The Source further clarified that $6. 5 Million dollars or N8.74 Billion was the asking price as at March this year but was unable to prove, if the said amount was exactly what the vessel went for.
The yacht, known as Chitochi, is a 2016 Custom Line 108 superyacht measuring approximately 33 metres (108 feet) in length. The transaction was handled by international yacht brokerage firm IYC, with its sales and charter consultant, Mark Elliott, overseeing the sale.
The disposal of the high-value vessel followed legal steps taken to address the corporate status of Grosvenor Marine Ventures Ltd., the company through which the yacht was held.
Otutochi Wigwe reportedly approached a court in the British Virgin Islands (BVI) to secure the restoration of the company to the corporate register, a move that enabled the necessary legal steps towards the sale of the vessel.
The proceedings were central to resolving the corporate issues affecting the company and facilitating the transaction, underscoring the legal complexities that may arise when valuable assets are held through corporate entities in foreign jurisdictions.
The sale is also significant in the context of estate administration, as luxury yachts require substantial financial commitments to maintain, even when they are no longer actively used by their owners or beneficiaries.
Such vessels typically attract considerable expenses, including crew salaries, insurance premiums, berthing charges, routine servicing and other maintenance costs, making their continued ownership a major financial responsibility.
Beyond the recurring expenses, luxury yachts are depreciating assets that may lose value over time. Their disposal can therefore form part of a strategy to preserve estate value, reduce liabilities and convert an expensive asset into liquid funds.
Wigwe, who was the former Group Chief Executive Officer of Access Holdings, died on February 9, 2024, in a helicopter crash in California, United States, alongside his wife, Chizoba; their son, Chizi; and former Nigerian Exchange Group chairman, Abimbola Ogunbanjo.
His death was widely mourned across Nigeria’s banking and business communities, where he was recognised for his contributions to the financial services industry, entrepreneurship and philanthropy.
Wigwe’s passing left behind an estate whose administration involves the management of assets and other financial interests, a process that can require legal and financial decisions to protect the interests of the estate and its beneficiaries.
The sale of Chitochi highlights the challenges associated with managing high-value assets held through corporate structures, particularly where the relevant companies and legal proceedings fall under different jurisdictions.
The $6.5 million transaction brings the yacht’s ownership chapter to a close while illustrating how legal procedures, financial considerations and estate management can intersect in the administration of the assets of a prominent business figure.
‘’We determined to get all our equipments and machinery functioning as we progress. For now we’ve about 105 workers, comprising daily paid harvesters and regular staffs. But aside these 105 staffs we also employ daily slashers who for now are about 100.
“During peak periods, hopefully on or before January 2026 we hope to increase our work force for maximum production”, the firm’s management Stated.
King Onunwor
Business
Firm Mulls Crash Down On Vegetable Oil Price …Targets Revenue Boost, Job Creation
Ariwera Ibibo-Howells, Yenagoa
Business
Traders Decry Continuous Increase In Prices Of Foodstuffs
Some traders at the Rumuwoji Market popularly known as Mile 1 Market have decried the continuous increase in the prices of food stuffs and other items in the ember season.
This was made known by the traders when The Tide visited the market recently.
The traders revealed varying changes in the prices of foodstuffs, with some commodities recording higher increase than others .
A trader Mrs Charity Obinna, at the market, said the price of yam remained the same last week and this week compared to the prices from last month to this month, adding that only a difference of about N100 to N200 was seen.
Another trader, Chukwuebuka Livinus who deals on garri, reported that the prices of some food commodities had been changing frequently.
According to him, the price of a bag of garri increased from N45,000 last week to N58,000 this week, representing an increase of N13,000.
Livinus described the increase as scary and called on the government to do something about it, especially as we get closer to the festive period.
A trader that deals on vegetables, Mrs Joy reported that a significant increase in the prices of pepper rose from N20,000 last week to N40,000 this week.
Similarly, the price of a bag of melon (egusi) increased from N420,000 toN490,000 this week.
In a separate report, Mrs Charity Obinna said that foodstuffs were generally cheaper last month than this month, with price differences ranging from N150 to N200 for some items.
Meanwhile, Giff Okoro reported a decrease in the price of tomatoes. According to her, a quantity of tomatoes that cost N45,000 last month now sells for N25,000, indicating a reduction of N20,000.
Another trader, Usman Ibrahim said the cost of transporting goods from the communities to urban areas where they are sold is one of the major reasons for high cost of goods.
He said transport cost has doubled due to the cost of petroleum products in Nigeria, adding the whole cost is part of the goods because “entrepreneurs must cover their cost and make their gains .
Ibrahim called on the government to help farmers and traders even with little capitals to expand and sustain their business.
Another trader, Mrs Choice Promise a fish retailer said a cartoon which sold at #35,000 last week now sells at #50,000 .
Promise complained that there is no gain or profit because the price has drastically increase and most people cannot afford to buy fish again.
“Mr. President’s Renewed Hope Agenda recognizes that economic ambition requires dependable infrastructure,” Tegbe said.
He added that investments in electricity infrastructure would strengthen the foundations for business expansion, employment and economic growth.
The Kankia substations comprise two 60 MVA, 132/33 kilovolt (kV) facilities designed to strengthen the transmission network serving Katsina State and neighbouring areas.
Tegbe said the infrastructure would improve the network’s ability to distribute available electricity, supporting commercial activities and household welfare.
He also urged residents to protect the facilities against vandalism and other activities that could disrupt electricity infrastructure, asking them to report suspicious activities to TCN or security agencies.
Katsina State Governor, Dikko Umaru Radda, described the project as a significant investment in the state’s electricity infrastructure.
Radda stated that improved electricity supply could support industrial development, economic growth and public service delivery.
He further commended the President, the Federal Ministry of Power and TCN for completing the project.
It would be noted that the latest projects come amid a broader government’s drive to address bottlenecks in Nigeria’s electricity transmission network, which has constrained the amount of electricity that can be delivered to distribution companies and end users.
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