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10 months ago

12-02-2018

BUSINESS A.M. FEBRUARY,

BUSINESS A.M. FEBRUARY, MONDAY 12 - SUNDAY 18, 2018 28 MANUFACTURING & INDUSTRY Executive Order 5 Huge welcome trails ‘Nigerian jobs for Nigerian people’ policy IN BRITAIN, IT IS CALLED GIVING BRITISH JOBS TO THE BRIT- ISH. JUST LIKE DONALD TRUMP’S INSISTENCE THAT AMERI- CAN JOBS SHOULD FIRST BE FOR AMERICANS, NIGERIA’S PRESIDENT MUHAMMADU BUHARI’S EXECUTIVE ORDER 5, THAT PROHIBITS GIVING FOREIGNERS JOBS THAT CAN BE DONE BY NIGERIANS IS BEING WIDELY APPLAUDED BY THE CITIZENS. BUT IN AN ECONOMY WHERE THE NUMBER OF FOREIGN CONCERNS OVERSHADOWS LOCALLY OWNED COM- PANIES, IS THE ORDER THE ROUTE TO ELDORADO AS MANY NIGERIANS BELIEVE? AJOSE SEHINDEMI REPORTS. PRESIDENT MUHAMMA- DU BUHARI’S executive order tagged Executive Order 5 is to improve local content in public procurement with science, engineering and technology components with the intent to promote the application of science, technology and innovation towards achieving the nation’s development goals across all sectors of the economy. The order seeks to ensure that all procuring authorities shall give preference to Nigerian companies and firms in the award of contracts, in line with the Public Procurement Act 2007. While it also prohibits the Ministry of Interior from giving visas to foreign workers whose skills are readily available in Nigeria. It also states that where expertise is lacking, procuring entities will give preference to foreign companies and firms with a demonstrable and verifiable plan for indigenous development, prior to the award of such contracts. This new order, according to many analysts, citizens, unemployed graduates and local business owners, is akin to manna from heaven as most citizens are concerned by the unwholesome activities of expatriates run businesses in the country. The expatriates are accused of neglecting locals in employment opportunities as it got so bad that forklift drivers, truck drivers were being brought in to the country to the consternation of local drivers. Some Chinese restaurants have Chinese as waitresses and a visit to some parts of the country will see the huge numbers of foreigners doing menial jobs to the abandonment of locals. The Public Relations Consultants Association of Nigeria, PRCAN, reacting to the order, commended the President for signing the Executive Order. In a release signed by John Ehiguese and Israel Opayemi, President and Publicity Secretary respectively, the association described the president’s action as “exceptional, courageous and an act of nationalism which puts our country first over and above the popular penchant of government officials for all things foreign, and particularly Caucasian.” PRCAN further assured President Buhari of its readiness to play the role of whistleblowers in relation to the public relations and marketing communications sector, promising to avail the Presidency with the details of foreigners operating agencies illegally in defiance of the laws regulating the industry in Nigeria. “President Muhammadu Buhari can be rest assured of our support in this regard. We will compile the names and addresses of those currently operating illegally here against the extant law regulating the Public Relations practice in Nigeria. L-R: Kufre Ekanem, corporate affairs adviser, Nigerian Breweries Plc; Oladunni Morenike, Customs area comptroller, Lagos Industrial Area Command, Festac; Patrick Olowokere, corporate communications and brand PR manager, Nigerian Breweries Plc and Ajuziego Maureen, deputy comptroller, enforcement, Lagos Industrial Area Command, Festac, during a courtesy visit by the Nigeria Customs Service to the Lagos brewery Every country adopts a local content policy in order to grow its local economy and it is an acceptable practice “That law is among those you promised to enact and enforce in your capacity as the President of the Federal Republic of Nigeria to protect businesses in Nigeria. We will make this task easy for you so that relevant government agencies can enforce the Executive Order and other extant laws,” PRCAN said. To Ayo Teriba, the chief executive officer of Economic Associates, the order is in the right direction but should not be confined to just science, engineering and technology sectors of the economy. “It is a policy in the right direction and it should not be confined to those areas that the executive order is covering. It should be wider. Any job that a Nigerian can do, no foreigner should do it. “President Buhari has done well but they should expand the coverage of such executive orders to preserve the employment space for Nigerians,” he said. To Chijioke James, president of Electricity Consumers Association of Nigeria, it is a good move considering what Nigerian professionals stand to gain when the order becomes fully operational. However, the government must be careful not to prevent knowledge transfer from international experts. He said: “It is a known fact that a lot of Nigerians have skills and expertise and as such should be given the opportunity to serve and function in some areas where we currently have foreigners. This executive order is expected to address such situations and also provide more opportunities for Nigerians. “Every country adopts a local content policy in order to grow its local economy and it is an acceptable practice. This applies to the power as well as other sectors of the economy. Where we have Nigerian engineers who are competent and have what it takes to do the job, why should they not be given preference over others for jobs within the country? I’m all for it. It is just like other countries trying to encourage their local industry. I support anything that the government of Nigeria must do to encourage our local industry to grow”. All these are enough reasons for any Nigerian to smile but for an entrepreneur, Jaji Adewale, the managing director of Soajaji Nigeria Enterprises limited, the policy might fail due to inconsistency of government in enforcing policy decisions. He said the local content act has been in law in the country for a while but it was not enforced as if enforced, the new order won’t be needed. He said government must go beyond issuance of statements and threats and deal decisively with defaulters as they are going to be many. “Those that will default have connections with those in the top echelon of law making in the country. Will those making and enforcing the laws allow their friends and cronies to be punished for any infraction when their palms have been greased? This is Nigeria and there is what is called government magic.” James sounded a note of warning as he said, though the presidential order is good and acceptable because it will help grow the economy and generate employment, in trying to ensure that this works effectively, government must also consider several other issues that are involved. Government must make sure that it puts in place the required value chain and remove bottlenecks which often frustrate efforts to get things done in this country. Will the new order be enforced or will it be just policy statement from government? Only time will tell as commendations continue to pour in for the government. OPS says FIRS property valuation, assessment could shut down industries Ajose Sehindemi MEMBERS OF NIGERIA’S ORGANISED private sector (OPS) say they are gravely concerned about an ongoing exercise by the Federal Inland Revenue Service (FIRS) involving the revaluing and re-assessing of properties housing their businesses for the purposes of imposing new taxes. They believe this represents a threat to the continued existence of industries, many of which may be forced to shut down. The OPS say this amount to double taxation, besides being an illegal act by the FIRS as it was not backed by law and outside the mandate of the tax agency. Meeting the media for the Manufacturers Association of Nigeria (MAN) annual media luncheon, the OPS, comprising of MAN, the Nigerian Association of Small and Medium Enterprises (NASME), Nigeria Employers’ Consultative Association (NECA), the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), and Nigerian Association of Small Scale Industrialists (NASSI), said a section of the companies income tax law, which is being used for the exercise no longer exist. In a communiqué, the OPS stated: “Section 30 of the Companies Income Tax Act from where the FIRS purportedly derived its power for the exercise is no longer in force, pursuant to its deletion by section 12 of Companies Income Tax (Amendment) Act 2007. “The FIRS is very much aware that as a fundamental principle of our tax jurisprudence, the power to impose any tax on a citizen must be derived from an enabling legislation. “There already exists a plethora of property valuation-based taxes in Nigeria. The Land Use Charge payable in Lagos State, which is being replicated across the country, is based on property valuation. The governor’s consent fees payable on alienation of interest in property across the country is based on property valuation. Capital Gains Tax payable on disposal of property is somehow influenced by property valuation. Rent payable on lease of real estate property is subject to withholding tax deduction.” The group said the properties of its member companies were also subjected to valuation pursuant to the provisions of the Companies and Allied Matters Act (CAMA) Cap C20 Laws of the federation for the purposes of companies’ annual accounts leading to payment of tax on their profits. Segun Ajayi-Kadiri, MAN’s directorgeneral, in the communiqué, asserted that member companies of the association paid huge sums of money to state governments under the above heads of taxation, “which we believe the states are utilising efficiently for the benefit of all.” “Using the value of the property housing the offices of companies to generate figures that will be charged as Company Income Tax is wrong as some companies are tenants in their buildings,” he added. The OPS said the exercise will have dire consequences on firms, households and government, noting: “The FIRS’ intention to value and assess the same property for tax purposes expressly negates the Federal Government’s objective of improving the ease of doing business recently initiated. “It is capable of discouraging new private investments and will place existing companies in precarious situation, which may lead to the closing down of their businesses. “As companies close down, government’s tax revenue will be adversely affected. Already, the ratio of Nigeria’s tax-to-Gross Domestic Product is abysmally small at six per cent. This will further dip,” the OPS stressed. According to the group, households will also be at the receiving end of high commodity prices and unemployment that will accompany company closures, adding: “From the foregoing, we therefore see the FIRS’ initiative as unlawful, impracticable and an economic misadventure, which will not benefit the economy, government, companies and households as the country will be the ultimate loser.”

BUSINESS A.M. FEBRUARY, MONDAY 12 - SUNDAY 18, 2018 MARKETS DATA 29 Company Previous Closing Price The Nigerian Stock Exchange Official Price List February 9, 2018 Opening Price High Low Close Change% Trades Volume Value UNILEVER 47.6 48.5 49.5 48.5 49.45 1.85 81 7,183,461 352,836,634.10 JBERGER 26.05 27.3 27.3 27.3 27.3 1.25 19 238,160 6,412,476.00 STANBIC 45.05 46 46 46 46 0.95 22 103,426 4,753,425.85 GLAXOSMITH 19.25 20.2 20.2 20.2 20.2 0.95 10 80,711 1,629,157.70 DIAMONDBNK 2.76 2.85 2.96 2.71 2.94 0.18 318 37,613,482 107,459,268.41 STERLNBANK 2.23 2.25 2.36 2.2 2.36 0.13 152 18,939,420 43,690,756.42 NEM 1.8 1.89 1.89 1.89 1.89 0.09 22 3,239,038 6,114,805.82 UNITYBNK 1.75 1.67 1.83 1.67 1.83 0.08 64 7,117,121 12,581,524.25 CONTINSURE 1.55 1.62 1.62 1.62 1.62 0.07 4 227,600 363,087.00 WEMABANK 1.23 1.17 1.29 1.17 1.29 0.06 70 6,261,034 7,883,477.56 JAIZBANK 1 1 1.05 0.99 1.05 0.05 28 3,279,848 3,344,391.59 SKYEBANK [MRF] 1.02 1.02 1.07 0.97 1.07 0.05 314 149,581,385 155,947,573.99 LEARNAFRCA 1 1.02 1.05 1.02 1.05 0.05 11 1,464,820 1,519,656.50 TRANSEXPR 0.85 0.89 0.89 0.89 0.89 0.04 2 4,400,000 3,916,000.00 LINKASSURE 0.82 0.8 0.85 0.78 0.85 0.03 14 1,383,600 1,114,231.00 HONYFLOUR 2.92 2.9 2.96 2.9 2.95 0.03 40 2,122,400 6,217,600.73 FCMB 2.76 2.84 2.85 2.7 2.79 0.03 206 36,933,979 101,902,601.70 AFRINSURE 0.42 0.4 0.44 0.4 0.44 0.02 11 22,469,792 8,995,708.80 TRANSCORP 2.12 2.12 2.17 2.05 2.14 0.02 225 27,728,451 58,863,418.18 FIRSTALUM 0.44 0.46 0.46 0.46 0.46 0.02 6 455,010 205,504.60 AGLEVENT [BMF] 0.56 0.57 0.57 0.57 0.57 0.01 7 815,601 464,759.91 ABCTRANS 0.38 0.37 0.39 0.37 0.39 0.01 28 1,652,399 622,178.75 CILEASING 1.85 1.76 1.85 1.76 1.85 0 29 2,135,900 3,773,764.30 NASCON 21 20.9 21 20.9 21 0 33 1,248,200 26,200,530.00 PRESCO 70 70 70 70 70 0 19 469,716 32,879,878.65 MANSARD 2.57 2.57 2.57 2.57 2.57 0 9 400,100 1,025,567.20 PRESTIGE 0.56 0.58 0.56 0.56 0.56 0 60 35,033,760 19,619,045.64 INTBREW 59 61.95 60 59 59 0 55 4,211,890 248,766,034.50 ETI 19.65 19.65 19.65 19.65 19.65 0 33 103,414 2,036,721.00 LASACO 0.36 0.37 0.37 0.36 0.36 0 34 6,474,378 2,333,776.08 OANDO 5.99 5.99 5.99 5.99 5.99 0 51 421,693 2,525,941.07 PZ 24 23.1 24 23.1 24 0 52 1,036,830 24,951,097.00 UPL 2.25 2.25 2.25 2.25 2.25 0 7 652,323 1,471,781.75 HMARKINS 0.36 0.36 0.36 0.35 0.35 -0.01 17 4,704,010 1,681,333.50 WAPIC 0.65 0.67 0.64 0.64 0.64 -0.01 39 1,798,822 1,152,196.08 UNIC 0.38 0.37 0.36 0.36 0.36 -0.02 7 136,622 49,203.92 MULTIVERSE 0.42 0.4 0.4 0.4 0.4 -0.02 7 301,000 120,400.00 UCAP 4.32 4.22 4.32 4.2 4.3 -0.02 96 3,568,837 15,114,809.88 ROYALEX 0.44 0.42 0.42 0.42 0.42 -0.02 13 606,555 248,540.39 JAPAULOIL 0.44 0.42 0.42 0.42 0.42 -0.02 3 111,000 46,620.00 NPFMCRFBK 1.98 1.9 1.95 1.89 1.95 -0.03 24 1,118,336 2,127,982.14 UAC-PROP 2.99 2.95 2.95 2.95 2.95 -0.04 15 272,324 807,877.38 COURTVILLE 0.5 0.48 0.46 0.46 0.46 -0.04 2 110,000 50,800.00 CAVERTON [BLS] 3.04 2.89 3 2.89 3 -0.04 43 894,478 2,656,157.41 LIVESTOCK 1.1 1.05 1.05 1.05 1.05 -0.05 15 454,620 478,266.00 AIICO 0.8 0.76 0.76 0.73 0.73 -0.07 21 1,624,955 1,201,217.15 AFRIPRUD 4.9 4.9 4.8 4.8 4.8 -0.1 52 879,228 4,229,327.89 SEPLAT 685.1 685.1 685.1 685 685 -0.1 10 185,912 127,362,158.20 FIDELITYBK 3.38 3.32 3.44 3.22 3.26 -0.12 274 30,366,237 100,422,165.81 CUSTODIAN 4.17 4 4 4 4 -0.17 12 1,378,367 5,518,263.60 FIDSON 4.9 4.7 4.7 4.7 4.7 -0.2 19 534,263 2,513,710.81 DANGFLOUR 16.15 16 16.2 15.8 15.95 -0.2 125 3,567,101 57,029,210.60 DANGSUGAR 21.95 22.75 22.75 21.75 21.75 -0.2 89 2,434,414 53,403,713.55 BERGER 9.25 9 9 9 9 -0.25 4 130,414 1,194,703.90 UBA 12.35 12.35 12.35 12 12 -0.35 293 27,069,828 331,712,767.75 FLOURMILL 33 32.65 32.95 32.6 32.6 -0.4 101 1,319,453 43,139,893.75 UACN 17.2 17 17.5 16.75 16.75 -0.45 92 2,818,310 47,988,864.20 NB 137.4 140 140 135.9 136.9 -0.5 152 1,209,202 165,949,547.80 ACCESS 12.5 12.45 12.5 11.95 11.95 -0.55 141 4,656,330 57,341,834.20 CADBURY 15.5 14.75 14.8 14.75 14.8 -0.7 30 397,877 5,914,147.95 CCNN 19 18.15 18.15 18.15 18.15 -0.85 30 559,312 10,116,282.70 GUARANTY 49 48.8 48.95 47.5 48 -1 238 8,801,801 424,554,904.15 NESTLE 1372.8 1360 1360 1360 1360 -12.8 80 492,045 667,102,103.60

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