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LCCI Asks FG to Suspend 7.5Per Cent VAT

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Lagos Chamber of Commerce & Industry (LCCI) has called on the Federal Government to, among other things, suspend the implementation of the 50 per cent increase in Value Added Tax (VAT) till the end of the year in view of the negative impact of COVID-19 on businesses.

LCCI Asks FG to Suspend 7.5Per Cent VAT

Dr. Muda Yusuf, director-general, LCCI, said the measure, including other proposals, were necessary to save the economy from collapse.

In a statement, Yusuf, proposed tax breaks and concessions for investors by suspending  taxes for health sector investors, agriculture and agro– processing, aviation and hospitality sectors for at least one year, saying it has become imperative to discus policy measures and reforms that need to happen for the realisation of desired continuity outcomes.

Yusuf said the Federal Government  should either  inject liquidity or pursue policy measures that offer some accommodation that  will facilitate economic and business recovery, saying though digital platforms have become more vibrant, they were “not sufficient to generate the desired momentum of economic activities as interactions and connectivity among economic agents are at the lowest ebb.”

He called on the government to set a post pandemic rescue plan agenda for the economy.

In addition, the LCCI boss called for an extension of filling of yearly returns, including payment of due amounts to June 30.

He pushed for unconditional waiver of penalties and interests of outstanding tax payments, temporary suspension of the recently- introduced 50 per cent increase in VAT till the end of  the year.

He raised  the alarm on the sustainability and business continuity over the  pandemic.

He said: “The pandemic has derailed business projections and several risks have crystallised. Businesses have been grounded by the lockdown; supply chains disrupted and aggregate demand depressed. Investment assumptions have collapsed across sectors. Businesses are faced with a force majeure and the shocks are profound and unprecedented.

“The mortality of Small Medium Enterprises  (SMEs) is set to heighten as they have tenuous capacity to absorb shocks, especially of a scale that we are witnessing,” he said.

To save the economy from collapse, Yusuf canvassed  the  need to salvage investments across all levels, including micro, small, medium and large enterprises, pointing out that without investments, there can be no jobs, as aggregate demand would remain weak and government revenue  in jeopardy as tax revenue plummets; and economic sustainability will be at risk.

On employees, the LCCI chief said PAYE (Pay As You Earn) should be suspended for six months, saying: “This would put some money back in the hands of the employees during this period to strengthen the purchasing power of citizens and stimulate output within the economy.


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E-Financial

Lagos State Appoints MoneyMaster as Payment Partner for “Ounje Eko” Programme

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“Ounje Eko”, the food price discount initiative of the Lagos State Government, has appointed leading payment service bank, MoneyMaster Payment Service Bank Limited (MMPSB), as its collaborator in the bid to ensure ease of payments at the market.

MoneyMaster is one of the Central Bank of Nigeria-licensed Payment Service Banks (PSBs) to promote financial inclusion across Nigeria.

Under the partnership, MMPSB will apply its cutting-edge payment solution to engender easy payment and reconciliation in order to make   the experiences of Lagosians who will be getting their food supplies from the markets pleasurable. Its payment solution is also all-encompassing and ensures real time value to payment destinations.

The mobile bank was appointed as the collection and payment partner for “Ounje Eko” Food Markets programme which is a government initiative serving the five divisions of Lagos State. Consequent on this, MoneyMaster Payment Service Bank will collect payments in 57 LCDAs in the state.

The partnership gives credence to the quality of payment solutions that MoneyMaster is reputed for in its services to its growing business clientele in private and public sectors.

 


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E-Financial

CBN, EFCC Probe Banks, Firms over Alleged Forex Racketeering

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Central Bank of Nigeria (CBN), is investigating irregular foreign exchange transactions and forward contracts valued at approximately $2.4 billion.

CBN, EFCC Probe Banks, Firms over Alleged Forex Racketeering

The  inquiry follows an extensive audit by Deloitte, which scrutinized $7 billion in dollar debts accumulated under the bank’s previous leadership.

In the aftermath of the 294th Monetary Policy Committee meeting in Abuja, Yemi Cardoso, governor of CBN,  disclosed to journalists that the investigation, supported by the Economic and Financial Crimes Commission, among other security bodies, aims to clarify the legitimacy of these FX allocations identified as problematic by the audit.

“It was determined that a number of these transactions did not qualify…they were outright illegal. The law enforcement agencies are now looking into those transactions that as far as we are concerned, are not valid to be paid,” Cardoso detailed, emphasizing the unlawful nature of these forex deals.

The crux of the investigation lies in the audit findings that a significant portion of the scrutinized transactions lacked proper documentation and, in many instances, were deemed outright illegal.

However, the unfolding investigation has raised concerns within the organized private sector, with some entities contemplating legal action against commercial banks for unresolved forex bids.

Despite these tensions, Governor Cardoso reassures that the foreign exchange market remains open and transparent, inviting stakeholders to address their forex needs through the official channels.

Furthermore, Cardoso clarified the distribution of fertilizers to farmers as a one-off measure and not indicative of a shift back to direct interventions by the CBN, underscoring a commitment to strategic, regulatory governance rather than direct market involvement.

 

 

 

 

 

 

 

 


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CBN Urges Banks to Expedite Action on Recapitalisation

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Central Bank of Nigeria (CBN) has directed deposit money banks in the country to expedite action to increase their capital base from the current ₦25bn.

CBN Urges Banks to Expedite Action on Recapitalisation

Olayemi Cardoso, governor of CBN

Olayemi Cardoso, governor of CBN, stated this during the apex bank’s 294th meeting of the Monetary Policy Committee (MPC) on Tuesday in Abuja, when the MPC hiked the interest rate by 22.75% to 24.75%.

The apex bank chief said the MPC examined developments in the banking sector and expressed satisfaction that the industry remained stable. The committee, however, said to guard against risk, commercial banks in the country should accelerate their recapitalisation efforts.

Cardoso said, “The MPC also reviewed developments in the banking system and noted that the industry remains safe, sound, and stable. The committee thus called on the bank to sustain its surveillance and ensure compliance of banks with existing regulatory and macro-potential guidelines.

“The MPC also enjoined the banks to expedite actions on the recapitalisation of banks to strengthen the system against potential risks in an increasingly globalised world.”

 

 

 

 


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