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Ease Of Doing Business: FG Moves To Improve Ranking

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The Federal Government, says all tiers of government are now being proactive to improve the country’s 2018 ranking on the Ease of Doing Business.
Mr Aminu Bisalla, Permanent Secretary, Ministry of Industry, Trade and Investment, said this in Abuja at a meeting with the commissioners for trade and commerce from the states.
“All arm of government are now involved to ensure that the country improves in its ranking of ease of doing business.
“As part of effort aimed at facilitating the ease of doing business in Nigeria, registration is now very easy, small businesses can now establish without facing any difficult situation.
“More states have lands that are accessible,  business owners can use the land to  get loan and I am very optimistic that the next ranking will see Nigeria progress tremendously.
“A lot is being done to reposition the economy in areas where we have comparative advantage.
“We have realised that the engine of growth is the private sector  and the only way to succeed in vitalising the economy is to make it very easy for businesses to flourish,’’ Bisalla said.
In July 2016, President Muhammadu Buhari established the Presidential Enabling Business Environment Council (PEBEC), with a mandate to remove bureaucratic and regulatory constraints to doing business in Nigeria. The Council is chaired by the Vice President, Yemi Osinbajo.
The council released three main pillars of the next phase of interventions and reform to improve its image on ease of doing business report by the World Bank in 2018.
The pillars comprises Deepening Existing Reforms, Sub-national Reforms and Trading within Nigeria.
Nigeria’s ranking in the latest report by the World Bank for 2017 improved marginally from 170 to 169 out of the 190 countries
Nigeria’s overall global ranking improved by 44.63 per cent points average, against 44.02 per cent age points, or 0.61 per cent in 2016.
Bisalla said that in the past, the major challenge for small business owners was multiple taxation which made it difficult for small businesses to develop.
According to him, with the effort made so far by the government, business can now flourish and with that, there will be more employment in the country.
Dr Jumoke Oduwole, Senior Special Assistant to the President on Industry, Trade and Investment, in a paper, said, there were compelling imperatives for sub-national reforms at the states level.
The paper is tilted “Reforming Nigeria at the sub-national level: Bringing Enabling Environment Reforms to all Nigerians’’.
Oduwole, who is the Secretary to the council, said that the reforms were in the best interest of each state to support economic growth and development.
She said that the reform progress would serve as a tool for investors to measure viability of proposed investment in a state, adding that, some states were already implementing the reforms.
Oduwole said a lot could be achieved with limited resources by applying best practices like efficiency, transparency, performance management and key performance indicators.
“Sub-national rankings are important as Micro, Small and Medium Enterprises (MSMEs) make up to 90 per cent of business in Nigeria.
“The local business plays a vital role in ability of MSMEs to thrive, a friendly business environment MSMEs to move from the informal to the formal sector,’’ she said.
Oduwole said that drastic and fast-paced business reforms must be conducted simultaneously to improve the business environment and attract foreign investors.
She said that reforms must be adopted within the next 12 months to reflect in the 2018 ease of doing business report.
According to her, going forward, the council is focusing on three key areas which are deepening existing sub-national and additional reforms.
Ms Cemile Hacibeyoglu, from the World Bank Group, said successful reforms should include all relevant agencies and the private sector.
Hacibeyoglu  said the sub-national  doing business studies  were aimed to promote competition and motivate regulatory reforms, to improve the business environment and achieve convergence among locations towards the best regulatory practices.

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5 important things to know about trading in the stock market

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As a person who is interested in the stock market, you probably know that it comes with a risk like any other financial decision. 

 

Trading in the stock market can be a great way to gain financial success and diversify your investment portfolio. You can trade on the market on your own as well as with brokerage companies like HFM, which can become a reliable service provider in your activities. 

 

But before you put down any amount of money, there are 5 key things you should keep in mind.

 

Let’s explore what is the stock market and what you should know about it together.

 

What is the stock market?

The stock market is a vibrant and reliable platform that ensures fair trade between buyers and sellers of securities. It allows them to discover the price of shares, serving as an indicator of economic conditions. All transactions are secure, liquid, and transparent thanks to continuous competition in the open market which safeguards fairness while providing great liquidity options.

 

5 things about trading in the stock market

Let’s take a closer look at some moments that are important for efficient trading in this financial market.

  • Buy low, sell high

Despite the short-term downturn in oil prices, most consumers are still benefitting from cheaper fuel costs. However, any market dip is often seen as a sign of an impending bear market. In reality, though, stocks have historically been one of the best long-term investments and will likely continue to rise over time with or without intermittent corrections along the way.

  • Think long-term

Trading on short-term earnings reports or data is not the best way to maximize profits as a trader. Instead, opportunities arise when a stock or sector that has been overlooked by the market shows resilience and delivers consistent returns in spite of economic conditions. An example is transportation stocks like airlines and railroads which can offer considerable gains when industry trends shift favorably.

  • There is no certain metric 

Professional and amateur traders alike all have their preferred methods when it comes to assessing stock values, from price-earnings ratios to dividend yields and profit margins. However, there is no single metric that can definitively distinguish between good stocks versus bad ones.

  • Dividends are on your side

Dividend-paying stocks provide a degree of stability in comparison to other types of investments. However, caution must be taken when evaluating offers that seem too good to pass up – they may not hold their value as expected over time.

  • Know what you need

The brokerage industry has become increasingly competitive, with firms vying to offer the best trading options. However, for most traders, their basic needs can be met by any provider. When placing an order it’s important to know what type you are entering. A market order will execute immediately at whatever price is available while limit orders only complete when within predetermined parameters.

 

Conclusion

In conclusion, trading in the stock market can prove to be a great opportunity if you make smart investments. Knowledge is key when it comes to successfully navigating the stock market, so always take the time to do your research and create an investment plan. Make sure that you understand where you want your money to go and how long you are willing to wait for a return on your investments. 

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NASS Asks CBN To Extend Deadline On Old Naira Notes By Six Months

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The two chambers of the National Assembly have asked the Central Bank of Nigeria (CBN) to extend the deadline for acceptance of the old Naira notes.
The House of Representatives and the Senate in separate resolutions on Tuesday asked the CBN to extend the deadline till 31 July.
House of Representatives
The decision of the House to ask for the extension followed a motion of urgent public importance moved by Sada Soli (APC, Katsina) during plenary.
Moving the motion, Mr Soli said banking and other financial institutions are struggling to cope with the rush by citizens to change their old currencies to new notes. He said the shortage of new notes is creating panic.
“Banks and POS outlets are struggling with the shortage of the redesigned new Naira notes ahead of the CBN deadline of January 31, 2023, consequently making it difficult for them to comply with the CBN directives as regards availability of the new notes for customers.
“Despite several concerns and appeals by the National Assembly, the Governors Forum, the Bank Customers Association of Nigeria, and a host of other stakeholders in the country for the CBN to extend the period for the currency swap of the new Naira notes as well as review of the cashless policy, the CBN has remained adamant on the given deadline,” he said.
He stated that the CBN should instead phase out the old currency within a longer period, like a year adding that the policy must get the buy-in of the people for it to work.
He informed his colleagues that traders in Katsina State have started rejecting the old notes.
Speaking in support of the motion, Ahmed Jaha (APC, Borno), said the CBN has been making efforts in Borno State to swap the old notes for new ones, however, the efforts are not enough to meet the deadline.
He stated that the activities of Boko Haram insurgents have shut down banking operations in most parts of Borno State.
“I just came back from my constituency yesterday; I want to use this opportunity to commend the CBN for taking certain steps to address this issue in my constituency. As I am talking to you, CBN staffs have been in my constituency since yesterday. They went there with some amount to swap the little currency with people. It is a very good move but I also realised that the amount taken there is not enough to swap the available old currency.
“For the past 10 years, my constituency is (has been) operating without a single bank branch. People transact in cash,” Mr Jaha said.

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FG Rakes In N11.5trn From Company Tax Under Buhari

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A data report has revealed that the Federal Government under the present administration of President Muhammadu Buhari has made N11.5trillion from taxes paid by companies and business organizations.
The data from Company Income Tax (CIT) reports, which was published by the National Bureau of Statistics (NBS) between 2015 and 2022, showed CIT collected by the Federal Inland Revenue Service stood at N1.3tn when the President assumed office in 2015.
This amount dipped by 26 per cent in 2016 when the country’s economy went into recession due to a significant drop in oil prices.
It started an upward trajectory between 2017 and 2020, as the government generated a total of N5.3trillion during this period.
Companies Income Tax is a tax on the profits of incorporated entities in Nigeria. It also includes the tax on the profits of non-resident companies carrying on business in Nigeria.
The tax is paid by limited liability companies, inclusive of the public limited liability companies, and is commonly referred to as a corporate tax.
The CIT rate is 30 per cent for large companies (i.e. companies with gross turnover greater than NGN 100m), assessed on a preceding year basis (i.e. tax is charged on profits for the accounting year ending in the year preceding assessment).
According to the data, the highest contributors to the CIT were the manufacturing, Information Communication Technology and financial services sectors.
Also, a critical evaluation of 2022 CIT records showed a significant hike in taxes paid by companies across the board.
From the data, tax from firms in the information and communication sector rose by 158.51 per cent from N51.05bn in the third quarter of 2021 to N131.97bn in the corresponding period in 2022.
In the same vein, manufacturers paid the most taxes during the period in review, as the Federal Government increased the number of taxes collectable by the Federal Inland Revenue Services from 39 to 61 items.
Some of the new taxes as contained in the schedule to the taxes and levies (Approved list for collection) Act (Amendment Order), 2015, include: national information technology development levy, economic development levy, environmental (ecological) fee or levy; inter-state road taxes; mining, milling and quarrying fee; infrastructure maintenance charge; social services contribution tax, and wharf landing fee where applicable.
Others are entertainment tax, produce sales tax, property tax (where applicable); fire service charge; slaughter or abattoir fee, where state finance is involved, among others.
Further checks revealed that CIT paid by manufacturers increased by 52.3 per cent from N91.2bn paid in the third quarter of 2021 to N138.9bn in the corresponding quarter of 2022.
The scenario has created room where it appears the productive sector was being overburdened by taxes because of the government’s inability to widen the tax bracket and capture more taxpayers.

By: Corlins Walter

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