• World
  • Columnist
  • Commodities
  • WORLD BUSINESS & ECONOMY
  • Executive Knowledge Series
  • Finance
  • Manufacturing
  • Markets
  • Risk & Governance
  • Small Business
  • Technology, Media & Innovation
  • Comments
  • Business AM WebTV
  • Login

Businessamlive
  • FRONTPAGE
  • FINANCE
    • AllAsset ManagementAuditBankingBondBudgetCapital MarketsC&I LeasingCurrencyDealDebt marketForexFund RaisingFundingGovernmentHedge FundsInsuranceInvestmentInvestorInvestor ServicesMergers & AcquistionsMoney marketTreasury BillsMortgagePensionsPersonal financePonziQuantitative EasingshareTaxationTSAWealth Management
      Finance

      Nigeria, Africa remittances on target as Wari, Lycaremit sign partnership

      January 21, 2021

      Companies

      Total Nigeria, Mixta, Valency, list new CPs on FMDQ platform to enhance financial markets development

      January 19, 2021

      Finance

      Amidst N32.22trn public debt, analysts say Nigeria’s external debt service manageable

      January 19, 2021

      Finance

      Stringent regulations, business environment forced Stanbic IBTC out of BDC business

      January 15, 2021

  • MARKETS
  • ECONOMY
    • AllAfricaAgricAirportsAmericaAsiaAustraliaBreakthroughDealEuropeForeign InvestmentsforexGlobal marketGovernanceIMFMiddle EastNECANigeriaOutlookRich listSouth AfricaSport BusinessTradeU.KWest AfricaWorld Economic forum
      Markets

      Nairobi Stock Exchange pushes expansion plans with more listings in 2021, says CEO

      January 23, 2021

      Africa Investment Forum

      Africa’s $60bn losses in illicit capital flows due to multinationals’ tax avoidance, says AfDB Adesina

      January 22, 2021

      Frontpage

      Covid-19 vaccine: Nigeria, 54 others to benefit from African Union’s 270m doses

      January 21, 2021

      Finance

      Nigeria, Africa remittances on target as Wari, Lycaremit sign partnership

      January 21, 2021

  • COMMODITIES
  • ENERGY
    • AllConferenceElectricityOil and GasPowerRenewable
      Companies

      Appeal Court suspends order against shutting of SEPLAT headoffice

      January 23, 2021

      Frontpage

      OPEC welcomes push for electric vehicles, but says fossil fuel remains strong

      January 21, 2021

      National: Governance, Policy & Politics

      Nigeria ramps up domestic LPG consumption above 1MMT, says PPPRA

      January 20, 2021

      Companies

      TIPP Oil, German lubricant maker, targets 2021 Nigeria launch with eco-friendly scheme  

      January 19, 2021

  • TECHNOLOGY
  • MANUFACTURING
  • ANALYSIS
    • Analyst Insight

      CBN meeting and NSE in focus

      January 18, 2021

      Analyst Insight

      Once again, fiscal stimulus takes centre stage

      January 18, 2021

      Analyst Insight

      Organisations must learn from the WhatsApp story  

      January 18, 2021

      Analyst Insight

      Data privacy maturity model in organisations

      January 11, 2021

Frontpage

MAN’s director general laments commencement of new excise duty regime despite efforts to halt move

Chukwuemeka Obioma

Chukwuemeka Obioma is  Businessamlive Reporter.
You can contact him on chukwuemeka.obioma@businessamlive.com with stories and commentary.

June 5, 2018883 views0 comments

The director general of Manufacturers Association of Nigeria , Segun Kadiri, Tuesday lamented the new excise duty regime for tobacco and alcoholic beverages which kicked off on Monday June 4 as earlier announced by the government.

The DG  who spoke to business a.m said it was regrettable that efforts made by MAN to prevent the implementation of the new excise duty rates on tobacco and alcoholic beverages did not yield the desired results, adding that the new excise duty regime is another factor likely to slow down the performance of the sector in the months ahead.

“We made representations to the ministry of finance, we made representations to the ministry of industry, trade and investment. We appealed to them, telling them the implication of the increase, we had dialogue with them, but all this was to no avail,” Kadiri said.

Explaining further, Kadiri remarked: “Most of the industries that operate in that sector are small and medium scale industries and their price-sensitivity is quite high. They also supply to the low end of the market segment, so this increase is going to negatively affect them and put them out of business. We also know that this government is committed to ease of doing business and promoting the growth of the sector.The argument that it is for health reasons does not arise. Those companies meet standards that are set by the relevant regulatory agencies and they practice and preach responsible consumption. Once there are laws regulating their production activities, it is presumptuous to adduce health reasons to the increase.”

He urged the government to reverse the increase in excise duty adding that government could drastically review rates downwards if it wants to increase revenue.

“Government should reverse the increase, there shouldn’t be any such increase.If because government is worried about the dwindling fortunes in terms of revenue which obviously is ramping up now,the price of crude in the international market is rising…if government wants to increase revenue, the rates should be reviewed downwards, drastically reviewed downwards. Government should also go into communication with the operators in the sub-sector(manufacturers of tobacco and alcoholic beverages) to do what is tolerable to the operators on a scientific basis. There have been studies to show the sensitivity of pricing in that sub-sector,” he said.

Similarly, the DG also reacted to the Central Bank of Nigeria’s Purchasing Managers’Index (PMI) report on manufacturing,for the month of May, which stood at 56.5 index points and indicated expansion in the sector for the fourteenth consecutive month, albeit grew at a slower rate when compared to the index in the previous month.

Kadiri, who attributed the development to the lack of adequate power supply, which he said has hampered production activities in the sector, said it has become imperative for the government to address with sincerity of  purpose, challenges bedeviling the sector. According to him, electricity distribution to the sector has not been at an optimal rate and has impacted the sector negatively, a situation which must be urgently salvaged if the sector must compete favourably with its counterparts in other economies of the world.

Share on Facebook Tweet Email
TagsMAN
PreviousClaims and subrogation
NextEnergy economists say emerging trends have impacts, offer opportunities for Nigeria

Leave a comment

- Cancel reply

MARKET DATA

Market Videos

Recent Posts

  • Appeal Court suspends order against shutting of SEPLAT headoffice
  • Eko Atlantic City to utilise local content for economic diversification in Nigeria
  • Nairobi Stock Exchange pushes expansion plans with more listings in 2021, says CEO
  • Africa’s $60bn losses in illicit capital flows due to multinationals’ tax avoidance, says AfDB Adesina
  • Nigeria equities go bearish on selloffs in DangCem, AXA Mansard, UBA

World

Africa

Buhari, Okonjo-Iweala congratulate Adesina over reelection as AfDB President

Europe

EU businesses to cut investments in 2020, says EIB report

America

U.S. increases cost of visa application for Nigerians

Africa

Thatcher-Loving Nigeria Candidate Plans to Overhaul Economy

Africa

AfDB scales up industrialization pace on the continent, delivers improved business access to finance, skills, energy

Frontpage posts

0

Nigeria’s street forex market maintain stability as dollar trades at N360 in 9th consecutive survey

Frontpage July 31, 2018

1
2

Nigerian stocks’ climb halted as market index opens week 0.4% lower

Frontpage January 22, 2018

3

Investors’ massive sell-offs in Nigeria banking stocks forces index to shed 0.2%

Frontpage November 12, 2018

4

Debt profile: Some public debts yet to be captured —Minister

Frontpage October 18, 2019

5

Global debt rises 318% in Q1 as emerging markets turn epicentre of worries on strong dollar

Frontpage July 16, 2018

SUPPORT

  • Photo Gallery
  • Help Centre
  • About Us
  • Accessibility

LEGAL & PRIVACY

  • Terms & Conditions
  • Privacy
  • Cookies
  • Copyright

SERVICES

  • Conferences & Events
  • Analysts Research
  • Advertising Rate
  • Ebooks

TOOLS

  • Portfolio
  • Newsletters
  • News feed
  • Currency Converter

SUBSCRIBE

Join us to get latest updates on business related news.

[mc4wp_form id="3076"]
  • ABOUT US
  • CONTACT US
  • CAREERS
  • TERMS & CONDITIONS
  • PRIVACY POLICY
Copyright 2017. All rights reserved. BusinessAMLive. A Businessnewscorp Member Company.