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FG saves N1.4trn from deregulation, to release N100bn for capital project –Osibanjo

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9 years ago

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Federal Government said yesterday that it has saved about N1.4 trillion that would have been paid as subsidy to oil marketers as a result of the successful deregulation of the downstream oil and gas sector a few months ago. The Vice-President, Prof. Yemi Osibanjo, disclosed this while speaking at the Lagos Chamber of Commerce and Industry, LCCI 2016 Presidential Policy Dialogue Session, in Lagos, saying that the Nigerian economy remained resilient despite the huge challenges and downside potentials.

He noted that most of the refineries in the country are expected to resume operation in full capacity before the end of 2017, having set a medium to long term strategy in motion to overhaul and sort them out. Osibanjo explained that the successful deregulation of the downstream oil and gas sector has resulted in conservation of budget resources and reduction in demand for Foreign Exchange, FX. He said that the action has further reduced the need to import petrol, which was also being smuggled to the neighbouring countries due to previous price differentials.

Also yesterday at the same event President, LCCI, Dr Nike Akande and President, Dangote Group, Alhaji Aliko Dangote, said that the right mix of policies that would create enabling environment for businesses and collaboration with the private sector are needed to boost and restructure the economy. Osibanjo said said: “The immediate impact of deregulation was the availability of PMS throughout the country. This was achieved by the price of N145 per liter as against well in excess of N200 per liter being paid in most parts of the country prior to deregulation. This action has also reduced daily demand for PMS from 1,600 trucks per day to 850 trucks per day.

“Of course, the medium to long term plan is to sort out the refineries; it is important for us to deal with refineries because as many of us have well known, one of the largest foreign exchange cost for us is the importation of petroleum products and at the moment, most of our refineries are operating at sub-optimum and what we are able to refine is negligible compared to what is required on daily basis. So, aside waiting for the Dangote refinery, which is 50,000 to 60,000 barrels, we also intend to fix the existing refineries. Hopefully, we expect that by the end of 2017, most of the refineries will be functioning to some reasonable capacity.”

“The recent introduction of flexible exchange rate regime, which was meant to ease pressure on external reserves, is of course one issue am sure many will still want to comment about. But I think that the immediate effect of the devaluation and depreciation of the Naira and some of the consequences which include inflation is to be expected and I believe that as we see the implementation of that policy and clearer focus on a truly flexible exchange rate, we will be able to see the actual benefit of this policy. I believe that the foreign exchange market will stabilize; confidence will be restored and there will be an increase in the supply of foreign exchange, especially due to inward investments,” he added.

Capital spending

In a bid to fast track infrastructure development in the country, he said the federal government was set to release another N100 billion in a couple of days in addition to N332 billion earlier released for capital projects. “We have also pledged to keep the capital spending in the budget at a minimum of 30 per cent; this is a target we are determined to keep since it is investment that grows the economy. Accordingly, we have made capital releases of N332 billion, which is more than the entire amount of capital released last year with another N100 billion set to be released in the next few days. The main sectors for which the funds have being released are power, works and housing, defence, transportation and agriculture,” he said.

Non-oil sector

He stated that due to the efforts being made by the administration to increase focus on non-oil sector and improve revenue generation, about 7,000 companies that were previously not in the tax net have been brought into the tax net. He added that one of the first areas the administration brought change in on assumption of office was in public financial management. “This has had a consequential effect of saving jobs, he said, adding, “The reality is that every ghost worker eliminated at the federal level is a job saved. Other policies used in this regard is the Treasury Single Account, TSA, which has brought transparency into inflows and outflows of the Nigeria economy.”

Ease of doing business

the Vice president disclosed that a Presidential Economic Committee has been inaugurated by the federal government to ease the cost of doing business in the country. According to the vice president, the task ahead of the government is clear. It is to ensure security, fight corruption, improve the economy and business environment.

“Our immediate task is to reduce fiscal and foreign exchange imbalances, boost foreign exchange liquidity, curb inflation, lower interest rate, ensure lending to the real sector. These challenges are significant but the opportunity to get it right is even more significant. For us, focus, steadfastness and consistency are crucial,” Osinbajo said.

He said that the government was committed to engage the private sector and institutionalise quarterly meetings with the sector to achieve an enabling environment for businesses to thrive. Osinbajo said that the cornerstone of this administration was increased investment in infrastructure and diversification of the economy for growth.

According to him, the economy is resilient, has robust market with innovative and dynamic entrepreneurs, huge natural resources endowment that will be leveraged upon for economic recovery.

In her welcome address, the LCCI president urged the government to improve its dialogue engagement with the private sector to generate feedback for favourable policies and economic growth. She said that creating an enabling environment through infrastructure improvement would increase the level of investment in the country.

Akande urged the government to fast track palliatives to cushion the harsh effects of the economic climate.

In his remarks, Alhaji Aliko Dangote, who faulted the reports that South Africa’s economy has has overtaken Nigeria by $4 billion, Nigeria’s GDP still remained the biggest in Africa

“In terms of economy, I don’t believe in that number that South Africa is now the biggest economy in terms of GDP, that they have overtook Nigeria by was 4 billion dollars. What are the measures used in this indices; let it be measured by our rate of foreign exchange and see if they will get that same figure. I want to assure Nigerians that we still remain the biggest economy in Africa and I believe that soon, things will stabilise and the economy will thrive again” he said.

While the root cause of these problems clearly pre-dates the present administration, government being a continuum has meant that Nigerians look up to those presently at the helm of affairs in the three-tiers of government to come up with creative solutions to address our current challenges.

We are under no illusion that government can do it alone and so we would like to use this opportunity to reaffirm the private sectors willingness to play its part. Nigerians are renowned for their drive, doggedness, tenacity, industry and creativity. these qualities are an embodiment of ‘’Nigeria Spirit’’ and are on display on daily basis in the private sector. All Government needs to do is to remove obstacles that stand in the way of bigger and more productive private sector.

 

 

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FG earned N2.78trn from Company Income Tax in second quarter 2025—NBS

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1 week ago

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November 28, 2025

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National Bureau of Statistics has said that Nigeria’s Company Income Tax rose sharply in the second quarter of 2025, hitting N2.78 trillion.

The figure represents a significant 40.27 per cent increase compared to the N1.98 trillion recorded in the first quarter of the year, reflecting both improved tax compliance and stronger corporate performance across key economic sectors.

The NBS report said that domestic company income tax payments accounted for the bulk of the revenue, contributing N2.31 trillion, while offshore collections stood at N469.36 billion during the period under review.

According to the NBS, the financial and insurance sector recorded the highest quarter-on-quarter growth, rising by an astonishing 772.29 per cent, driven by improved profitability among banks, fintechs, and insurance firms following robust half-year earnings.

This, according to NBS, was followed by wholesale and retail trade, as well as motor vehicle repair activities, which grew by 538.38%.

Activities of households as employers also surged by 526.79%, although their overall contribution to total company income tax remained negligible.

On the flip side, some sectors experienced sharp declines in company income tax remittances.

Activities of extraterritorial organizations and bodies dropped by –45.01%, while education, public administration, defence, and compulsory social security recorded declines of –26.61% and –18.17% respectively.

The contraction in these sectors, particularly education and public administration, highlights persistent structural and fiscal challenges confronting government-funded institutions.

In terms of contribution to total tax revenue, financial and insurance activities led with a dominant 44.13%, reflecting the sector’s continuing expansion and strong capital flows.

Manufacturing followed with 15.57%, bolstered by increased production output and improved supply chain activity.

Mining and quarrying ranked third, contributing 9.18%, supported by higher commodity prices and renewed interest in solid mineral development.

At the bottom of the contribution chart were activities of households as employers, which accounted for just 0.01%, as well as activities of extraterritorial organizations and bodies, and water supply, sewerage, waste management, and remediation services, each contributing 0.04%. Despite economic headwinds, year-on-year company income tax collection still rose by 12.66% when compared to Q2 2024, underscoring moderate but steady improvement in government revenue mobilisation.

Company income tax collection in the same period of 2024 rose by 150.83 per cent N2.47 trillion. In the first three months of the year, company income tax collection stood at N984.61 billion. According to the report, local payments in the period under review amounted to N1.35 trillion, while foreign CIT payments contributed N1.12 trillion. On a quarter-on-quarter basis, the agriculture, forestry, and fishing sectors exhibited the highest growth rate at 474.50%, followed by financial and insurance activities at 429.76%, and manufacturing at 414.15%.

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Lagos govt promises MSMEs continued visibility, market access

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3 weeks ago

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November 16, 2025

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Lagos State government has reaffirmed its unwavering commitment to supporting micro, small, and medium enterprises (MSMEs) across the state through visibility, capacity building, and market access. Commissioner for Commerce, Cooperatives, Trade, and Investment, Folashade Ambrose-Medebem, made the pledge on Sunday at the closing ceremony of the 2025 Lagos International Trade Fair (LITF). The 38th edition of the event, organised by the Lagos Chamber of Commerce and Industry (LCCI), had its theme as “Connecting Business, Creating Value.”

Ms Ambrose-Medebem said every entrepreneur, regardless of scale, deserves an enabling environment to thrive and contribute meaningfully to the state’s economic prosperity. She said the state, through strategic investments in infrastructure, institutional reforms, and continuous engagement with the private sector, was building a Lagos that worked for business. The commissioner added that the state would continue to foster innovation, competitiveness, and sustainability.

“As a government, we remain steadfast in our commitment to making Lagos the preferred destination for commerce and enterprise. This fair has once again demonstrated the power of connection: connection between producers and consumers, investors and innovators, the government and the private sector, and local entrepreneurs and global brands. Every handshake, every conversation, every business card exchanged here is a building block toward the future we are creating, a future of prosperity that leaves no one behind,” she said.

The commissioner urged businesses to continue to connect, collaborate, and create value, saying, “In Lagos, we do not just trade goods; we trade ideas, build futures, and transform lives. “Together, let us continue to make Lagos not just a place of commerce, but a symbol of progress, innovation, and endless opportunity.” Gabriel Idahosa, president of LCCI, urged governments at all levels to continue addressing the issues of creating an enabling environment in the country.Mr Idahosa said focus should be on infrastructure, security, and implementing the right policies to address the key drivers of high inflation.

This, he said, was needed to fully harness the vast enterprising resources of domestic and foreign investors for the diversification of our economy and the welfare of our people. He pledged the commitment of the organised private sector to stand solidly behind the state in its quest to actualise its innovative initiatives on all fronts. NAN

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Jumia posts $17.7m pre-tax loss in Q3, down 1% in 12 Months

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3 weeks ago

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November 12, 2025

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Jumia Technologies AG posts a $17.7 million loss before income tax in the third quarter of 2025, down 1% year-on-year from $17.8 million in the third quarter of 2024. The road to profitability has remained long as ecommerce continues to face uncertainties, including widening competition with rivals in the same industry. The e-commerce company revenue came in at $45.6 million compared to $36.4 million in the third quarter of 2024, representing a 25% year-over-year surge in the period. The company reported gross merchandise value of $197.2 million compared to $162.9 million in the third quarter of 2024, up 21% year-over-year. Excluding South Africa and Tunisia, physical goods GMV grew 26% year-over-year, Jumia revealed in the unaudited financials.

Jumia said in its report that the GMV growth was driven by supply and strong marketing execution, partially offset by lower corporate sales in Egypt. Excluding corporate sales, GMV in reported currency grew 37% year-over-year. Nigeria’s momentum accelerated, with order growth up 30% and GMV up 43% year-over-year, Jumia said. The e-commerce giant’s operating loss reduced by 13% year-over-year to $17.4 million compared to $20.1 million in the third quarter of 2024. The company’s adjusted earnings before interest tax depreciation and amortisation loss dropped by 17% to $14.0 million compared to $17.0 million in the third quarter of 2024.

Jumia reported a loss before income tax of $17.7 million, a slight reduction of 1% compared to $17.8 million in the third quarter of 2024. Liquidity printed at $82.5 million, a decrease of $15.8 million in the third quarter of 2025, compared to an increase of $71.8 million in the third quarter of 2024, which included the net proceeds from the August 2024 At-the-Market (ATM) offering, and a decrease of $12.4 million in the second quarter of 2025.

Its net cash flow used in operating activities settled at $12.4 million compared to net cash flow used in operating activities of $26.8 million in the third quarter of 2024 and $12.7 million used in the second quarter of 2025. The result includes a positive working capital contribution of $0.4 million.

Jumia reported that customers’ orders grew 34% year-over-year, driven by strong execution, enhanced product assortment, and healthy consumer demand across key categories. It said quarterly active customers ordering physical goods grew by 23% year-over-year, highlighting continued engagement and customer loyalty. As of September 30, 2025, the Company’s liquidity position was $82.5 million, comprised of $81.5 million in cash and cash equivalents and $1.0 million in term deposits and other financial assets, it said in the report Jumia’s liquidity position decreased by $15.8 million in the third quarter of 2025, compared to an increase of $71.8 million in the third quarter of 2024, which included net proceeds from the August 2024 At-the-Market (ATM) offering, and a decrease of $12.4 million in the second quarter of 2025.

Net cash used in operating activities was $12.4 million in the third quarter of 2025, compared to a net cash used of $26.8 million in the third quarter of 2024 and $12.7 million used in the second quarter of 2025. The result includes a positive working capital contribution of $0.4 million in the third quarter of 2025, compared to a negative working capital contribution of $9.1 million in the third quarter of 2024, primarily reflecting improvements in operating performance.

 In addition, the Company reported $1.4 million in capital expenditures in the third quarter of 2025, compared to $0.9 million in the third quarter of 2024, primarily reflecting investments in infrastructure and facility enhancements to support business growth. “This quarter marks a significant acceleration in customer demand and order growth, driven by strong execution across our markets and growing consumer trust in the Jumia brand. We believe Jumia has reached an inflection point as our compelling value proposition, and improved operational discipline position us for sustainable, profitable growth.

“We continue to strengthen our cost structure and sharpen operational discipline, reinforcing our path toward profitability. Our focus remains on execution and customer engagement as we build a more efficient business.
“We believe that we are on track to reach breakeven on a Loss before Income tax basis in Q4 2026 and achieve full-year profitability in 2027, positioning Jumia for long-term growth and value creation.”

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