Business & Finance

Examining the Recent Amendments to the Customs, Excise Tariff, etc. (Consolidation) Act (CETA)

By Dolapo AterePosted on October 15, 2023Posted in Business & FinanceTagged Excise duty, Finance Act, Finance Minister, Import levy, taxNo Comments

The Finance Act of 2023 (FA2023 or the Act) was officially signed into law on May 28, 2023, under the leadership of His Excellency, former President Muhammadu Buhari, GCFR. The commencement date for these amendments is September 1, 2023, as per the Finance Act (Effective Date Variation) Order of 2023, signed by His Excellency, President Bola Ahmed Tinubu, GCFR, on July 6, 2023. This Act represents the fourth iteration of the Finance Act series, which commenced in 2019. It primarily refines and clarifies certain modifications introduced by its predecessors, namely the Finance Acts of 2019, 2020, and 2021, aligning them more closely with the government’s fiscal objectives and the current economic landscape. This article will focus on amendments made by the Finance Act 2023 to the Customs, Excise Tariff, etc. (Consolidation) Act (CETA) and an overview of its economic Impact.

Nigeria’s Tax Reform: Easing the Burden on the Taxpayer and Tax Collector

By Dolapo AterePosted on October 8, 2023Posted in Business & FinanceTagged CIT, FIRS, Fiscal Policy, IGR, Nigeria, PAYE, Reforms, taxNo Comments

In an ever-evolving economic landscape, Nigeria stands at a critical juncture, poised to reform its tax system to address the longstanding challenges faced by both taxpayers and tax collectors. The burden of taxation has weighed heavily on individuals and businesses for years, often accompanied by inefficiencies in revenue collection that hinder the government’s ability to provide essential services. However, with a renewed commitment to tax reform exemplified by initiatives like the newly established Presidential Fiscal Policy and Tax Reform Committee, Nigeria is embarking on a transformative journey aimed at not only lightening the load on its taxpayers but also streamlining the processes for tax collection. This paradigm shift signifies an important moment in the nation’s fiscal history, promising improved equity, transparency, and efficiency in the tax system, ultimately fostering economic growth and development for the benefit of all stakeholders. Therefore, the objective of this article is to examine reforms that can alleviate the challenges faced by both tax collectors and taxpayers.

Financial Planning for the Single Tech Professional: A Case Study of Bayo’s Journey

By Adebowale AterePosted on July 19, 2023Posted in Business & FinanceTagged Asset, Balance sheet, Cashflow, Equity, Finance, Liability, Personal finance1 Comment

Let us take a closer look at the financial summary of Bayo, a single tech professional living alone. Based on the information available, we can help him plan his finances effectively. Kindly note, the methodology used in this case study is not following an accounting standard, nor would I call it proper accounting even though we are following some principles. Some rules have been modified to fit our objectives.

Understanding and Tracking Your Finances with a Spreadsheet

By Adebowale AterePosted on July 17, 2023Posted in Business & FinanceTagged Assets, Investing, Liabilities, Personal finance, Spreadsheet1 Comment

Let’s say you want to start investing, creating an emergency fund, making provisions for current and future expenses, saving towards a goal, understanding your current financial position, and planning for the future. How do you keep track of your finances? How do you identify your expense pain points? While there are applications that can help with this, it’s important to have a thorough understanding of your financial standing through a spreadsheet that you create yourself. Everyone’s situation is different, but there is a foundation that we can all start from.

Equities Valuation: The Impact of Including Share Buybacks in the Dividend Discount Model

By Adebowale AterePosted on July 14, 2023Posted in Business & FinanceTagged Apple, DCF, DDM, Hershey, Model, Share BuybacksNo Comments

There are both advantages and disadvantages to including share buybacks cash flows in the valuation. One advantage is that it provides a more accurate representation of how the company is returning cash to its shareholders. Since share buybacks are another means by which companies return cash to shareholders, it makes sense to include them in the valuation. Another advantage is that including share buybacks can provide a more accurate picture of the company’s financial health. If a company consistently buys back shares, it may indicate confidence in its future earnings.

On the other hand, one disadvantage of including share buybacks cash flows in the valuation is that it can make the valuation more complex. Since share buybacks are not as straightforward as dividends, accurately factoring them into the valuation can be more challenging. Additionally, share buybacks can be less predictable than dividends, making it more difficult to accurately forecast future cash flows.

The Hershey Company: Unwrapping the Potentials and Digging into the Chocolate Numbers

By Adebowale AterePosted on July 12, 2023Posted in Business & FinanceTagged Chocolate, DCF, Hershey, Nestle, ValuationNo Comments

The Hershey Company is a leading American multinational chocolate manufacturer that also produces baked goods, beverages, and other products. Operating under 80 brands in 70 countries, Hershey’s is a global leader in chocolate, sugar confectionery, and chocolate related grocery products. The company prides itself on its values driven approach to snacking, offering moments of goodness through its more than 90 brands and products. Hershey’s values include togetherness, integrity, making a difference, and excellence.

Hershey’s offers a wide variety of flavours, sizes, and variations of its products. Popular items include Hershey’s Milk Chocolate Bar, Hershey’s Special Dark Mildly Sweet Chocolate Bar, Hershey’s Air Delight Chocolate Bar, Hershey’s Milk Chocolate with Almonds Bar, Hershey’s Cookies ‘ Creme Bar, Hershey’s Drops, and Hershey’s Miniatures. The company sells its products to a diverse range of customers through various channels, including its own retail stores and online. With a wide range of products catering to different income and age groups, Hershey’s target market is essentially everyone.

An Analysis of Apple Inc.’s Financial Performance and Growth Prospects

By Adebowale AterePosted on July 10, 2023Posted in Business & FinanceTagged Apple, DCF, Facebook, Google, iPhone, ValuationNo Comments

Apple is the largest technology company in the world in terms of revenue and market capitalization and is
among the Big Five American information technology companies, which also includes Alphabet (Google), Amazon, Meta (Facebook), and Microsoft. The Americas is Apple’s biggest regional market, encompassing both North and South America. Other significant markets include Europe (comprising European countries as well as India, the Middle East and Africa), Greater China (encompassing mainland China, Hong Kong, and Taiwan), Japan, and the Rest of Asia Pacific (including Australia and other Asian countries not included in the company’s other reportable segments).

FMN Plc Investment Pitch – GA Academy 3.0

By Oluwatobi SholankePosted on June 17, 2023Posted in Business & FinanceTagged Flourmill, GDP, Inflation, recommendation, Revenue, Stock, Stock pitch, ValuationNo Comments

This stock pitch was prepared by Basirat Adebiyi, Abbas Bashar, Oluwatobi Sholanke, and Chigbo Oguejiofor as part of their project during the recently concluded Gifted Analysts Academy 3.0

Flour Mills Nigeria Plc: Showcasing Unprecedented Progress in the Growth of Organic Sales and Profitability

By Adebowale AterePosted on June 7, 2023Posted in Business & FinanceTagged Agriculture, DCF, Flourmill, Food, Honeywell, Nigeria, Valuation1 Comment

With the Nigerian government’s
ongoing focus on promoting agricultural development through its policies and budgetary plans, Flour Mills Nigeria Plc can leverage this support to build a strong agribusiness that can meet domestic food demand, generate export revenue, and create jobs. How
effectively is the company taking
advantage of this opportunity?

Weekly Economic & Market Commentary (26-03-2023)

By Abuh JonathanPosted on March 26, 2023Posted in Business & FinanceTagged Commentary, News, WeeklyNo Comments

Last week was an eventful one for the global and domestic economy as we move towards the end of the first quarter of 2023. In the global space, the US Federal Reserve raised the federal fund rate by 25bps to a range of 4.75% – 5.00%, signaling an end to its aggressive rate hikes amidst the banking sector crisis. Locally, the DMO had a successful bond auction in March, raising N563bn which exceeded its planned target of N360bn, with strong demand seen across four different bond maturities. Likewise, the Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) increased the MPR by 50bps from 17.5% to 18% in March 2023, making it the second consecutive hawkish tone this year, albeit less aggressive compared to January. Other notable domestic happenings last week were the latest data on currency in circulation, equities market update and happenings in the currency space.