Business

Trade war looms as UK set to spurn EU offer on Northern Ireland

Fears that the UK is heading for a trade war with the EU have been fuelled by strong indications from the government that it thinks proposals to be unveiled in Brussels on Wednesday over Brexit arrangements do not go far enough.

The Brexit minister, David Frost, will use a speech in Portugal on Tuesday to say that the EU scrapping its prohibition on British sausages to resolve the dispute over the Northern Ireland protocol does not meet the UK and unionists’ demands.

Lord Frost will call for “significant” changes to the post-Brexit agreement he negotiated, including over the role of the European court of justice, something the EU is highly unlikely to concede to.

“Without new arrangements in this area, the protocol will never have the support it needs to survive,” he will warn on the eve of a significant move by the EU to resolve the row.

Ireland’s foreign minister, Simon Coveney, reacted with incredulity at the UK’s “red line” and its timing just days before what he said was a “serious” offer from the EU.

He tweeted: “EU working seriously to resolve practical issues with implementation of Protocol – so UKG creates a new “red line” barrier to progress, that they know EU can’t move on … are we surprised? Real Q: does UKG actually want an agreed way forward or a further breakdown in relations?”

Frost immediately responded to Coveney, saying his demands over the ECJ were nothing new.

“I prefer not to do negotiations by Twitter, but since @simoncoveney has begun the process … the issue of governance & the CJEU [court of justice of the European Union] is not new. We set out our concerns three months ago in our 21 July Command Paper. The problem is that too few people seem to have listened,” he said.

1. I prefer not to do negotiations by twitter, but since @simoncoveney has begun the process…

…the issue of governance & the CJEU is not new. We set out our concerns three months ago in our 21 July Command Paper.

The problem is that too few people seem to have listened.

— David Frost (@DavidGHFrost) October 9, 2021
The EU’s Brexit commissioner, Maroš Šefčovič, will table four papers on Wednesday on the subject of how the Northern Ireland protocol can be improved – which he has described as “very far-reaching”.

Included will be a proposed “national identity” exemption for British sausages from the EU’s prohibition on prepared meat from a third country, sources said.

However, Mujtaba Rahman, the managing director of the Eurasia Group consultancy, warned in a note to clients on Saturday that the absence of concessions on the ECJ will give Frost the justification for triggering article 16, the mechanism for putting the Northern Ireland protocol into formal dispute process or putting it into abeyance by disapplying the arrangements altogether.

“There is a huge amount of cynicism in the EU about what the government’s actual objectives are. Is it to fix substantive issues in Northern Ireland or is it to keep an ideological fight with the EU rolling because it serves certain sections of the Tory party?” said Rahman.

“The French president and the German chancellor and the European Commission president cannot wake up every single day to a new argument with Boris Johnson. At some point they need to send a stronger, simpler message.

“Use of a termination clause within the trade and cooperation agreement itself can be triggered unilaterally and would fully suspend the zero tariff/quota trade deal between the two sides.”

This cross-retaliation mechanism allowing trade penalties for breaches of the withdrawal agreement was agreed by both sides, but others think the EU will not be so keen to go nuclear.

Catherine Barnard, professor of EU law at the University of Cambridge, believes short sharp shocks in the form of tariffs on such British products as Scottish whisky or salmon are more likely.

She also said that the ECJ is not a significant issue in relation to the trade of goods. Its annual report cites just 24 cases relating to customs union laws currently pending, among more than 1,045 in total.

Frost also told delegates at the Conservative party conference last week that the rules required the EU to be “proportionate” but said he still hoped to come out of negotiations with a fresh deal.

Retaliatory measures are unlikely until next year, with the EU expected to respond with infringement and legal proceedings as its first response to any suspension of the Northern Ireland protocol by the UK.

The protocol, designed to avoid a hard border between the UK and the single market operating in the Republic of Ireland, placed a border in the Irish Sea, enraging unionists who see checks on goods coming into Northern Ireland from Britain as an attack on the integrity of the UK and their British identity.

The EU is expected to propose eliminating checks on goods destined to remain in Northern Ireland, with checks only on those products that are intended for sale in the republic.

Both sides have said they expect to go into a period of intense negotiation, which Frost put at three weeks, after the EU’s response to the UK’s demands are published on Wednesday.

However, one school of thought is that Frost and the home secretary, Priti Patel, are being used to keep the Brexit pot boiling to show how the UK is sticking up against “EU bullies”.

Others think the fight over Northern Ireland is more fundamental. One former Downing Street official said he had been told that Boris Johnson “was going round telling people he had been misled” over the protocol and was determined it would have to be rewritten.

Frost will say on Tuesday that “the UK-EU relationship is under strain” but if the two sides can put the protocol “on a durable footing, we have the opportunity to move past the difficulties of the past year”.

Business

FG Gives Approval For Marketers To Lift Fuel From Dangote Refinery

The Federal Government has given approval for marketers to begin the lifting of premium motor spirit commonly known as fuel from the Dangote Refinery without going through the Nigerian National Petroleum Company Limited (NNPCL).

According to a Friday statement by the Minister of Finance and the Coordinating Minister of the Economy, Wale Edun, the move followed a directive from the Federal Executive Council (FEC) and the implementation of the new naira-based sales mechanism.

“New Direct Purchase Model: The most significant change under the new regime is that petroleum product marketers can now purchase PMS directly from local refineries,” the minister who chairs the Implementation Committee on the Sales of Crude Oil and Refined Products in Naira said.

“This marks a departure from the previous arrangement where the Nigerian National Petroleum Corporation (NNPCL) served as the sole purchaser and distributor of PMS from the refineries.

“This direct purchasing mechanism allows marketers to negotiate commercial terms directly with the refineries, fostering a more competitive market environment and enabling a smoother supply chain for petroleum products.

“Local Production of PMS: With the commencement of local PMS production, the market is better equipped to support these direct transactions. This transition is expected to enhance efficiency in product availability and stabilize market conditions for the benefit of all Nigerians.

“The Committee recognizes that there are questions and discussions regarding this change in the market structure. We are committed to providing clarity on this development and will continue to engage with stakeholders to ensure a seamless transition process.”

Business

FIRS launches USSD code *829# for taxpayers’ satisfaction

In a bid to enhance ease of doing business, the Federal Inland Revenue Service (FIRS), on Wednesday, launched an Unstructured Supplementary Service Data (USSD) Code *829# specifically targetted at improving taxpayers’ satisfaction.

FIRS chairman, Zacch Adedeji, launched the code at the Revenue House in Abuja as part of activities making this year’s Customer Service Week which has the theme Above and Beyond.

The initiative makes Nigeria the sixth African country to deploy USSD code for simplifying tax payment processes. .

A statement by Dare Adekanmbi, Special Adviser on Media to the FIRS chairman said taxpayers on any mobile telecommunication network in the country can now get across to FIRS real-time on issues relating to retrieval of Taxpayers Identification Number (TIN), verification of Tax Clearance Certificate (TCC), information on tax types and rates, locate the nearest FIRS office, and as well as get answers to general tax-related inquiries.

Speaking at the ceremony, Adedeji said the instant messaging protocol demonstrated further commitment of the agency to simplifying tax administration and ensuring that “every taxpayer—whether in bustling cities or remote areas—can engage with FIRS seamlessly.”

He called on taxpayers to enjoy the benefits that the USSD code offers and utilise the code for all their enquiries.

“With the *829# USSD code, taxpayers now have the power to: retrieve their Taxpayer Identification Number (TIN), verify their Tax Clearance Certificate (TCC), access information on tax types and rates, locate the nearest FIRS office, and get answers to general tax-related inquiries.

“Without the need for internet access, all of these services are now available with a simple mobile phone. This technological leap reflects our dedication to creating a tax system that is efficient, transparent, and responsive to the needs of taxpayers”, he said.

The agency also launched Customer Centricity Guide, a booklet containing policies, processes and procedures to ensure that FIRS keeps the taxpayers in their rightful position as ‘kings.’

“Equally important is the unveiling of the Customer Centricity Guide. This guide embodies our commitment to putting taxpayers at the centre of our service delivery.

“It outlines the principles and values that will drive our interactions with taxpayers by ensuring that every engagement is defined by respect, professionalism, and efficiency.

“The guide serves as a reminder to us all that the taxpayer is not just a client, but a valued partner in nation-building. Through the combination of the *829# USSD code and the Customer Centricity Guide, we are reinforcing a culture of service excellence and making tax compliance not just a duty but an experience that fosters trust and voluntary participation.

“As we celebrate this achievement, I encourage everyone to make full use of the *829# service and embrace the Customer Centricity Guide. Your feedback will be crucial as we continue to enhance these services and meet the evolving needs of our taxpayers,” he said.

The national coordinator of Servicom, Nnenna Akajemeli, praised the effort of the FIRS towards taxpayers’ satisfaction, noting that the efforts are evident.

“There are many things to congratulate the FIRS on. One is the launch of the USSD code *829# and the customer centricity guide. These initiatives which are simplifying tax and ensuring that citizens and taxpayers are delighted at the quality of service you render,” she said.

FIRS Director, Taxpayers’ Service Department, Loveth Onanuga noted the agency recognized that customer-centricity means more than just satisfying customers’ basic wants, but also going “above and beyond what customers anticipate and astonishing them with great service” in line with the theme of the week.

Business

NACCIMA raises concerns over hike in petrol prices

The Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA) has expressed concern over the increase in petrol pump prices in Lagos and Abuja.

Mr Dele Oye, National President, NACCIMA, made this known in a statement on Wednesday in Lagos.

Oye said that the prices, which had reached N998 and N1,030 per litre respectively, were placing a strain on businesses and households across the country.

He spoke on the potential economic consequences of the price hike, warning that the increase could lead to higher transportation costs, exacerbate inflation and severely impact small and medium-sized businesses.

He said that the decision, influenced by several underlying factors, warranted careful examination of its potential repercussions on the economy, particularly in the realms of pricing for goods, services and transportation.

“With transportation costs directly tied to fuel prices, this increase will serve as a catalyst for higher freight charges.

“Given that fuel is a primary driver of inflation, the rise in petrol prices will exacerbate the already high inflation rate in Nigeria.

“Households will find themselves paying more not only for fuel, but also for everyday goods and services, prompting a vicious cycle of rising costs and economic hardship.

“The recent fuel price increase will have a profound impact on micro and nano businesses, many of which rely heavily on petrol generators to power their operations,” he noted.

According to him, the overall economic landscape for SMEs can shift from potential growth to survival.

He explained that this would not only impact individual enterprises, but also limit job creation and economic development in communities across Nigeria. explained.

The NACCIMA president called on the Nigerian National Petroleum Corporation Ltd. (NNPCL) to demonstrate the necessary goodwill to support Dangote refinery operations.

This, he said, would ideally stabilise local petrol prices, reduce Nigeria’s dependence on imported petrol and contribute to national self-sufficiency.

Oye also called on the Central Bank of Nigeria to be more effective in implementing monetary policies that stabilise or strengthen the Naira

He noted that as importation costs rise due to currency depreciation, domestic fuel prices would likely continue on an upward trajectory.

“It is imperative that we advocate for robust strategies that not only stabilise fuel prices but also bolster domestic production capabilities, ensuring that the Nigerian economy can navigate these turbulent times more effectively.

“As stakeholders, NACCIMA will continue to engage with government entities to encourage a more conducive climate for growth and sustainability,” he said.