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FG rebuffs private sector, imposes N10/litre tax on soft drinks

FG rebuffs private sector, imposes N10/litre tax on soft drinks

The federal government has introduced an excise duty of N10 per litre on all non-alcoholic, carbonated and sweetened beverages.

Zainab Ahmed, Minister of Finance, Budget and National Planning, disclosed this during the public presentation of the 2022 Appropriation Act yesterday in Abuja.

Excise duty is a form of tax imposed on the locally manufactured goods.

The new policy, now referred as ‘Sugar Tax’, is contained in the Finance Act signed into law by President Muhammadu Buhari on December 31, 2021.

Ahmed said the 2021 Finance Act also raised excise duties and revenues for the health sector.

The Minister said the excise duty on soft drinks would discourage excessive consumption of sugar beverages which contributes to diabetes, obesity among others.

She stated: “There’s now an excise duty of N10/ per litre imposed on all non-alcoholic and sweetened beverages; And this is to discourage excessive consumption of sugar in beverages which contributes to a number of health conditions including diabetes and obesity.

“But it is also used to revenues for health-related and other critical expenditures. This is in line with the 2022 budget priorities.”

On December 14, 2021, the Organised Private Sector, OPS, notified its rejection of the plans by government to reintroduce excise duty on carbonated drinks.

Communicating the position of the OPS, the Chairman, Mr Taiwo Adeniyi, stated: “It is instructive to note that Nigerian manufacturers have been contending with the dislocations caused by the pandemic and the recession that followed; they are also facing serious crisis resulting from liquidity challenges in the foreign exchange market, which is impacting adversely on the cost of production; in addition, they are faced with intense pressure arising from numerous structural bottlenecks that are creating sustainability challenges for investors, especially those in the SME segment.

Also of concern is significant spike in the cost of raw materials, cost of fund, high import duty, elevated energy cost, prohibitive cost of transportation and high cost of logistics/shipping.

“We therefore, urge Government to jettison the idea of reintroducing the Excise Duty on carbonated drinks but continue to support and promote the industry to attain full recovery after the onslaught of the pandemic and position it to further accommodate the teeming unemployed Nigerian, particularly the youths.”

Also president of the National Union of Food, Beverage and Tobacco Employees, NUFBTE , Union, Mr. Lateef Oyelekan, stated that: “Should this excise duty be imposed    these companies would have no choice than to lay off workers.

“Some may have to reduce production line instead of expansion, while some may even close down permanently. It has happened in the past. At the end, Nigerians are the ones that will suffer.

“These companies are already looking outside Nigeria for alternate production of their products and would rather move to a more favourable business climate in the West Africa region.”

Food

Dangote donates 80,000 bags of rice to Lagos residents as palliatives

The Aliko Dangote Foundation (ADF) on Wednesday donated 80,000 bags of 10kg of rice to vulnerable people in Lagos State to cushion the hardship in the country.

The foundation flagged off the distribution of the rice at the State House, Ikeja, Lagos on Wednesday with Governor Babajide Sanwo-Olu, Chairman of the foundation, Aliko Dangote and others present at the distribution event.

According to Dangote, the gesture was part of the over one million 10kg bags of rice that would be distributed to reach one million vulnerable people in the 774 local government areas of the country.

He said the distribution of the 80,000 bags of 10kg rice was another demonstration of the foundation’s commitment to upholding the values of compassion and solidarity that are at the core of humanity.

Dangote stated that the distribution of the rice was in addition to the daily distribution of 12,500 loaves of bread in Lagos, stressing that with the initiative, the foundation aspired to ameliorate some of the burdens faced by vulnerable communities across Lagos State.

Speaking at the event, Sanwo-Olu, applauded the many initiatives of Dangote to ameliorate the sufferings of Nigerians, while praising him for showing compassion to the needy in the society.

The governor said the gesture of the distribution of 80,000 bags of 10kg rice showed that the leadership of the Foundation prioritised the welfare of the people beyond the pursuit of profit and accumulation of wealth.

“Aliko Dangote is a Nigerian that has chosen to be different. You have choices but you have made the right one which is caring for the vulnerable. I appreciate Mr. Aliko Dangote for extending his kind gestures to the people at the bottom of the pyramid and we are grateful for supporting us in government. There is a lot of global disruption in different parts of the world, and it is a tough time to be in a position of leadership,” he said.

He encouraged other wealthy Nigerians to emulate Dangote, saying the distribution of the rice would support the initiative of the state in addressing the effects of the economic hardship.

Justifying the food intervention in Lagos, Dangote said: “While our traditional Ramadan food distribution has been focused on the Muslim Community, we recognize that the current circumstances where a significant proportion of Nigerians across the nation are experiencing severe hardship due to the prevailing high prices of food, require that we broaden our program to cover communities of all faiths.

“This is why we are extending the Ramadan initiative to cover all the thirty-six states and the Federal Capital Territory as a testament to our commitment to supporting our communities in line with our core values and the spirit of the Holy Month of Ramadan.”

The CEO of the ADF, Zouera Youssoufou, said the Foundation is partnering credible NGOs, civil societies, religious bodies among others to ensure the donations go to the most vulnerable in Lagos State.

She said the Foundation is guided by a vision of empowering Africans to achieve their self-actualization and full potential as it believes that every individual, regardless of their circumstances, deserves the opportunity to thrive and succeed.

“In times of hardship, it is imperative that we stand together as one nation, one community, extending a helping hand to our brothers and sisters in their time of need as we have done with our female empowerment programme in Lagos State which targeted 40,000 (Forty thousand) disadvantaged women,” she added.

Group Executive Director Commercial Operations at Dangote Industries Limited (DIL), Fatima Aliko-Dangote, noted that the flag off in Lagos was a follow-up to the 120,000 bags distributed in Kano on Saturday, said the intervention is targeted to reach the 774 local government areas in Nigeria.

“We have been doing this for a while but we didn’t publicise it because our chairman believes this is between him and God but this year we decided to publicise it so that we can encourage and inspire others to do so.

“There are many other things the Dangote foundation is also doing. We are also serving 2,500 breads all over Lagos daily. We started this in 2020 during COVID-19. Also in our hometown in Kano, we have been doing breakfast, lunch and dinner for the past 35 years. The foundation has invested in many things. Years back, we gave women some money to be able to invest in their businesses,” she said.

Speaking further, Dangote said that Lagos State held a special place in the hearts of the Group, hosting two of its major investments – Dangote Petroleum Refinery and Dangote Fertiliser Plant.

He disclosed that the Dangote Group is also working on the nutrition agenda and has made significant strides in food fortification, investing in iodized salt and vitamin A fortified sugar.

He stressed that the Group actively promotes food fortification within the Nigerian food industry and is exploring fortification methods for staples like rice and wheat and bouillon cubes to help ensure improved nutrition nationwide.

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Food

Ogun State Government Extends Easter and Ramadan Palliative Relief Efforts

Distribution of palliative to worshipers at the Reverend Mellor Methodist Church, Agbowa, Sagamu, this Sunday.

In line with the festive spirit of Easter and ongoing Ramadan observance, the Ogun State government has continued its distribution of palliatives across the state’s three senatorial districts. This initiative aims to alleviate the economic strains faced by residents amidst prevailing challenges.
The recent phase of distribution primarily targeted Christian communities, with many churches receiving the palliative offerings. Notably, some mosques also benefitted from this gesture, which is spearheaded by Governor Dapo Abiodun. The distribution, which included essential items such as rice, occurred on both Friday and Sunday across various churches and mosques within the state.
In the Ogun Central Senatorial District, congregants at St. Peter’s Cathedral, Ake, SS Peter and Paul Catholic Church in Isale Ake, and the Celestial Church of Christ (CCC) in Ijaiye, Abeokuta South Local Government Area, were among the beneficiaries. Expressing gratitude, recipients praised the governor’s compassionate gesture, acknowledging its role in alleviating the suffering of the people. Ven. Superior Joseph Talon, Mr. Abeeden Hammed, and Mrs. Julianah Adesanya conveyed their heartfelt appreciation and extended prayers for Governor Abiodun’s successful tenure.
Similarly, in the Ogun East Senatorial District, worshippers at the Cathedral Church of St. Paul, C&S, Orisun Emi Alafia, and the United Baptist Church in Sagamu were recipients of the palliative support. Individuals such as Mr. Emmanuel Adetunji, Mrs. Adenike Adekoya, and Mr. Oludayo Soyemi expressed their appreciation for Governor Abiodun’s commitment to the welfare of citizens, pledging continued support for his administration’s endeavors.
Bishop Bamidele Ibikunle of the Remo Diocese, Methodist Church Nigeria, described the palliative distribution as a welcome development. He emphasized its significance in alleviating the uncertainties surrounding sustenance during the festive period. The sentiment was echoed by other religious leaders and congregants who highlighted the relief provided by the gesture, particularly amid challenging times.
The distribution spanned various churches including St. Peter’s Anglican Cathedral Ake, Abeokuta (Ogun Central); St. Paul’s Anglican Cathedral Sagamu (Ogun East); SS Peter & Paul Catholic Cathedral Adatan Abeokuta (Ogun Central); and Catholic Cathedral Ijebu Ode (Ogun East), among others.
Additionally, some Islamic faithful across the state also received palliatives on Friday, with distributions taking place in mosques. During the distribution at the Ijebu-Ode Central Mosque, the Grand Chief Imam, Sheikh Miftaudeen Ayanbadejo, emphasized the need for temporary border openings to address the current hardship in the country effectively.
Amidst expressions of gratitude, residents like Mrs. Aminat Quadri and Lawal Sikiru lauded the government’s efforts in meeting the needs of the people during these challenging times. Furthermore, at the Ilaro Central Mosque, Chief Imam Alhaji Tajudeen Adewunmi appreciated Governor Abiodun’s commitment to bringing relief to the people, acknowledging the profound impact of the gesture in alleviating their suffering.
Beyond palliative distributions, Governor Abiodun’s administration has embarked on various social welfare initiatives, including cash awards to indigent learners in public primary and secondary schools, as well as disbursements to Ogun State students in higher institutions across the country. These efforts underscore the government’s dedication to improving the lives of residents and fostering inclusive development across the state.

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Food

Borno targets export of sesame, others as Zulum visits 20 hectares irrigation farm

Governor Babagana Umara Zulum said that Borno State is working towards attaining food sufficiency and the export of cash crops and other farm products such as maize and cassava, among others.

“Let’s carefully put things in order. Borno State will start exporting sesame and other cash crops in the near future,” Zulum said.

The governor stated this on Tuesday at the Koiri irrigation farm, one of the pilot drip irrigation schemes of his administration.

Koiri scheme, covering about 20 hectares of land, aims to produce 364 tons of maize and sesame in one crop cycle. With three cycles per year, the Koiri scheme is targeted to cultivate over 1,092 tons of maize and other crops annually.

Governor Zulum noted that his administration will focus on investing in irrigation agriculture to maximise food production in the state.

“We will subsequently change focus and invest our resources in irrigation farming or, rather, food production. I assure you that we will provide the political will needed to achieve food sufficiency,” Zulum said.

Governor Zulum, however, ordered the expansion of the scheme to 300 hectares, with 100 hectares to be cultivated in each senatorial zone.

The governor said, “We need to expand our scope. We should identify bigger land; we can expand with another 100 hectares each in Borno Central, South and North.”

Speaking further, he added, “My predecessor has procured about 10,000 hectares of drip irrigation kits. After this year’s rainy season, we hope the state will be able to cultivate at least 1000 hectares.”

Zulum was accompanied by the Secretary to the State Government, Hon. Bukar Tijjani, Commissioners for Agriculture and Natural Resources, Bawu Musami, Information and Internal Security, Professor Usman Tar, and members of the agric transformation team, among other government officials.

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