Blog

By Biola Lawal
Abuja (Flowerbudnews):  The National Agency for Food and Drug Administration and Control (NAFDAC) has announced palliatives to help Micro Small and Medium Enterprises (MSMEs) survive the temporary economic fallouts of fuel subsidy removal.

The palliatives were also aimed at enhancing achievement of Federal Government’s ease of doing business in Nigeria, a statement by Sayo Akintola,, AFDAC Resident Media Consultant, disclosed.

The palliatives were approved at the recent meeting of NAFDAC council.

Prof Mojisola Adeyeye, NAFDAC Director General said that the Agency had reviewed downward, its administrative charges for late renewal of NAFDAC-regulated products to make the business environment more investment-friendly in response to the realities of the time.

This translates to a 65 per cent decrease in processing fees for the renewal of registration for locally manufactured products (which will be N44, 200) as against what is currently charged and 45 per cent of the processing fee for foreign products (which will be $ 450) as against what is currently charged.

In addition, the Director General disclosed that the Agency has also granted a 10 per cent review of tariff structure for facility and inspection fees for Special Economic Zones (SEZs)

As businesses across the world confront the disruptions caused by the global economic meltdown, Prof Adeyeye noted that NAFDAC would continue to adopt and implement practical measures to ensure that the projected growth in the micro, small and medium enterprises (MSMEs) sector is not seriously affected by the development.

She further explained that the response of the Agency was not just to give succour and assistance to existing MSMEs, but also ensure that there is practical and active fillip to new MSMEs so that the growth of this sector is not discouraged by the current economic trauma.

This is our moment and NAFDAC as a regulatory agency is prepared to back MSMEs and other businesses that are prepared for the innovative and interesting times that lie ahead of us, she added.

We have no excuse not to be one of the most productive and prolific economies in the world. We hope to achieve this aim in the incredible numbers of MSMEs that we have, she said, as she described NAFDAC palliatives for MSMEs as a thoughtful and strategic response to the realities of the present time.

These are all indicators of the new spirit of NAFDAC and foretaste of the support MSMEs stand to enjoy in wading through these trying times. But this is not a new undertaking for us. It is merely an extension or intensification of the Federal Governments long-standing commitment to MSMEs. (Flowerbudnews)

By Emmanuella Anokam

Some Oil and Gas Experts have said that the coming on stream of both Port Harcourt and Dangote refineries may lead to some marginal reduction in the cost of petroleum products and not a significant price crash.

The experts made this known in an interview with the News Agency of Nigeria (NAN) on Sunday in Abuja.

According to them, some ancillary costs such as freight and port charges, among others would have been eliminated to achieve the marginal reduction.

The Federal Government had on Dec. 21, announced the mechanical completion and flare start-up of the Port Hacourt Refining Company Limited (PHRC) and the subsequent streaming of its phase two in 2024.

This, according to the Minister of State Petroleum (Oil), Sen. Heineken Lokpobiri, will herald the commencement of the production of petroleum products after the Christmas break.

The PHRC comprised of two refining units, with the old plant having a refining capacity of 60,000 barrels per day (bpd) and the new plant 150,000 bpd, both summing up to 210,000 bpd.

Reacting to the development, an Associate Professor of Energy and Natural Resources, University of Abuja, Olanrewaju Aladeitan, said there should be some marginal reduction in petrol prices as some ancillary cost would have been eliminated.

However, he explained that the price of petroleum products may not come down significantly as to describe it as crashing.

“The price may not come down significantly considering the fact that crude oil and condensates supply for the domestic market under the Petroleum Industry Act is going to be based on a willing supplier and a willing buyer basis.

“And the fact that the supply of crude oil will be commercially negotiated having regard to prevailing international market price for similar grades of crude,” he said.

With this provision, he said there would be no dedicated percentage of crude for local refineries.

“Hence international market price which of course is denominated in dollars will still be the determinant of cost of the crude oil that would be refined.

“So I do not see how the price of Petroleum products will crash,” Aladeitan said.

Also speaking, Mr Yushau Aliyu, an Economic Expert, said reaching to a mechanical test of the refinery after a very long fruitless effort was an indication that part of our refined Premium Motor Spirit (PMS) deficit would be attended.

Aliyu described it as a good signal of recovering in the forex deficit which dominated the dwindling liquidity crisis.

“In addition, the new Nigerian National Petroleum Company Limited (NNPC Ltd.) is responding to the immediate solution for availability of PMS in the economy.

“We are expecting the NNPC Ltd.’s retail stations to reduce their pump price due to absence of landing cost in the short term effects,” he said.

Another oil and gas expert who preferred to remain anonymous said it was obvious that some people in the oil and gas sector were engaged in an act of sabotage.

He frowned at the situation where the government preferred to spend so much, including foreign currency, to import fuel, rather than fix it refineries.

“They claim that the 60,000 barrels capacity refinery in Port Harcourt is back on stream, while the 150,000 barrels capacity will work soon.

“We are waiting to see them work, including that of Warri and Kaduna. When they are put to use, let’s see why fuel prices will not crash,” the expert said.

NAN reports that pump price of PMS has increased to N660 per litre at various fuel stations, while NNPC Ltd.’s retail outlets sell at N617 since the removal of subsidy in May 2023 due to high crude cost and high foreign exchange rate.

The after effect of the removal and high cost of fuel brought untold hardship and suffering on Nigerians due to inflation, increase in goods and services, among others.

NAN

By Lucy Ogalue

The Nigerian Investment Promotion Commission (NIPC) said it had granted three years tax exemption to 34 companies in 2023.

Mrs Lovina Kayode, Head of Incentives Administration, NIPC, told newsmen in Abuja that the exemption was to promote the company’s investments drive towards developing the nation’s economy.

“This tax exemption known as Pioneer Status Incentives (PSI) is executed under the Investors Relations Department of the NIPC and allows a company three years of not paying Corporate Income Tax,” she said.

According to her, not all companies are granted incentives owing to the stringent procedures followed by the commission on waiver awards.

While acknowledging the high amount of revenue lost to waivers granted every year, Kayode said what mattered was the bigger picture, amount of forex brought into the country.

“The Federal Inland Revenue Service(FIRS) and our parent ministry, the Ministry of Industry, Trade and Investment, is also part of this process to ensure that right investors get this incentive.

“So far 34 applications have been approved, and one of the things we intend to do was to ensure that we were not just giving incentives to undeserving companies.

“Meanwhile, there is already a notion that Nigeria gives out too many waivers, incentives, and concessions.

“However, tax expenditure means what the government has lost by granting PSI, was just a small amount compared to the gains made by granting these incentives to qualified companies.”

She revealed the plans by the commission to publish impact assessment reports on the effectiveness of the pioneer status report on job creation and other economic activities to promote investments.

“On impact, that is one thing NIPC is planning on, next year, it is one of our biggest tasks to do an impact assessment.

“These incentives we gave out, how have they impacted the country in terms of job creation and what kind of import substitution has come about because we granted these incentives.

“And how much will the government gain after the three years of them (the companies defaulting paying these taxes?) ”

The Head, Policy and Advocacy of the commission, Mr. Salami Abayomi, expressed displeasure at the rate at which foreign companies/investors were leaving the country.

According to him, some challenges are responsible for this development, but the commission was working in collaboration with relevant agencies to address the issue.

He expressed optimism that by 2024, the efforts of the agencies in that regard would yield positive results.

Earlier, NIPC’s Executive Secretary, Aisha Rimi, reiterated the commission’s commitment to facilitate and assist investors to gain inroad into the country.

NAN

By Yunus Yusuf

The NIPCO Gas Limited says it has inaugurated Auto CNG station in Kubwa, Abuja in its commitment to drive positive change in the nation”s energy landscape.

The Managing Director of NIPCO, Mr Nagendra Verma in a statement on Sunday in Lagos, described the step as a significant stride towards providing economical, sustainable and environmentally friendly fuel for transportation.

Verma said that the feat underscored unwavering commitment to environmental stewardship.

“The station, which commenced operations over the weekend, is an affirmation of the company’s determination to ensure widespread availability of Auto CNG across Nigeria .

He said the project was significant as the nation grappled with the challenges of fuel expenses and environmental sustainability necessitating cleaner energy alternatives.

“NIPCO Gas is at the forefront of driving positive change in the country’s energy landscape.

“This newly commissioned station is a testament of the company’s mission to drive positive change in the country’s transportation sector,” the MD said.

According to him, it is the company’s belief that the path to a sustainable future starts with transformative initiatives, “and the launch of the Kubwa AutoCNG Station exemplifies our commitment in action”.

He noted that AutoCNG, known for its cost-effectiveness and significant lower carbon emissions compared to traditional fuels, was positioned as a beacon of environmentally responsible transportation.

Verma expressed the firm’s steadfast dedication to enhance CNG accessibility throughout Nigeria.

He elaborated the company’s investment in cutting-edge technologies and infrastructure, to ensure the widespread availability of CNG across the country.

Verma expressed optimism about the positive impact that increased CNG adoption would have on both the environment and the economy.

He added: “NIPCO Gas commitment extends beyond mere commercial operations.

“It aligns seamlessly with the national initiative championed by President Bola Tinubu, to make CNG readily available across Nigeria.

“This initiative, a strategic move to diversify the nation’s energy mix and reduce dependence on conventional fuels.”

According to him, the president’s visionary initiative aims to harness the potentials of Compressed Natural Gas (CNG) as a cleaner and more affordable alternative.

Verma said NIPCO Gas, in sync with the national agenda, had actively supported and implemented measures to contribute to the success of the initiative.

“With the launch of the AutoCNG Station in Kubwa, NIPCO Gas is not just embracing a sustainable energy solution.

“It is actively participating in a transformative movement that aligns with the broader goals of the nation,” the MD said.

He said that NIPCO Gas was a leading energy company committed to delivering reliable and sustainable energy solutions to communities across Nigeria.

“With a focus on innovation and environmental responsibility, NIPCO Gas strives to be a catalyst for positive change in the energy sector, promoting cleaner alternatives such as AutoCNG to contribute to a greener and more sustainable future,” he said.

NAN