Nigeria Archives - Gifted Analysts

Navigating Tax and Regulatory Hurdles in Nigeria’s Fintech Sector

By Dolapo AterePosted on October 30, 2023Posted in EconomyTagged cbn, Crypto, Fintech, Nigeria, Payments, taxNo Comments

The rapid growth and innovation within the Nigerian Fintech industry have transformed the financial landscape and presented unique and complex tax challenges. As Fintech companies continue to disrupt traditional financial services and expand their operations, navigating the evolving taxation landscape has become critical. The growth and competition within the payment gateway industry, as exemplified by companies like Flutterwave, Paystack, Remita, Interswitch, and others, are truly remarkable to witness. As reported by the Central Bank of Nigeria (CBN), E-payment transactions in 2022 reached an impressive volume of 22 billion. At the same time, data from the Nigeria Inter-Bank Settlement Systems (NIBSS) shows that electronic transactions amounting to ₦38.9 trillion were conducted through the NIBSS Instant Payment platform (NIP) as of November 2022 (+50.2% vs November 2021: ₦25.9 trillion). This is a testament to the robust expansion of the Fintech sector in Nigeria, attracting policymakers in terms of supporting their growth and boosting tax collections from the sector. We will delve into the problems and obstacles at hand, while also exploring potential solutions for the way forward.

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.

Q4-2022 sees Nigeria’s External Position Improve with a Return to Surplus

By Rachael OlaiyaPosted on September 5, 2023Posted in EconomyTagged Crude Oil, Current Account, exports, External Position, imports, Nigeria, Trade1 Comment

In Q4-2022, Nigeria’s external position improved, as the current account returned to a surplus position, primarily propelled by a higher trade balance surplus and reduced shortfalls in the services and primary income accounts. Specifically, the current account balance attained a surplus of $2.3 billion, a significant turnaround from the $2.1 billion deficit recorded in Q3-2022.

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?

Beyond Nigeria’s GDP numbers: Is it icing on the cake or the cake itself?

By Lawal Adekunle HamzahPosted on September 13, 2022Posted in Articles, EconomyTagged Agriculture, Economy, Finances, GDP, insurance, Nigeria, Non-oil sector, Oil production, Oil Sector2 Comments

According to the National Bureau of Statistics (NBS), Nigeria’s Gross Domestic Product (GDP) rose by 3.54% y/y in real terms in the second quarter of 2022 (Q2-2022). This shows that the economy expanded in Q2-2022 by 0.44% when compared to the 3.11% y/y recorded in the preceding quarter (Q1-2022) as the non-oil sector remains the key driver of growth. Similarly, this outturn represents an economic expansion on a year-on-year basis, albeit at a slower rate when compared to Q1-2021 (5.01% y/y) as the growth rate declined by 1.47%.

Nigeria’s inflation rate hits 19.64% in July 2022, the highest in 17 years

By Solomon Sele AyebawanaemiPosted on August 23, 2022Posted in Articles, Business & Finance, EconomyTagged Core inflation, Economy, Food prices, Inflation, NBS, NigeriaNo Comments

An examination of the NBS inflation data shows that this is the highest since September 2005 when the inflation rate hit 24.32% year-on-year. On a month-on-month basis, the headline inflation rose by 1.82% in July 2022. This is the same as the rate recorded in June 2022 (1.82% m/m). In our view, higher energy prices and continued depreciation of the local currency against the US Dollar were the key drivers behind this uptick.

DANGCEM Stock Pitch – by Fatai Aminat Ajiun

By Aminat Ajiun FataiPosted on June 12, 2022Posted in Business & FinanceTagged BUACEMENT, DANGCEM, LAFARGE, Nigeria, Profit After Tax, Real estateNo Comments

All forecasted indices highlighted on Dangote Cement Plc. pointed towards growth as it had been since its commencement of business. Though the major risk the company is exposed to are exchange rate fluctuations and interest rates which are beyond the control of the company, a BUY is highly recommended for Dangote Cement Plc. as it has been indicated and believed that the company will continue to grow into the foreseeable future. Our blended target price of N312/share points to a 13% upside compared to the last closing price of N277/share (7th June 2022).

BUACEMENT: A Dive into Company Performance and Financial Analysis

By Jude NwaonuPosted on May 7, 2022Posted in Business & FinanceTagged BUACEMENT, DANGCEM, DCF, DDM, Financial Performance, GDP, Nigeria, ValuationNo Comments

We issue a sell recommendation on BUA Cement PLC(BUACEMENT.NSE) Based on a target price of ₦58.6k representing a 13% downside on the closing price of ₦70.75 as of march 30th, 2022. Our valuation is based on a methodology mix of Discounted cash flow model (70%), Dividend discount model (10%) and Multiples valuation (20%).

FMN Plc: The Home of Good Food is Moving Beyond Levels

By Olayinka LamidiPosted on May 6, 2022Posted in Business & FinanceTagged Dividend, Flourmill, FMN, GDP, Inflation, NBS, Nigeria, Valuation1 Comment

Flour Mill of Nigeria Plc is one of the leading FMCG and a top market player in the flour-based product market. It is the first company to have constructed Nigeria’s first
wheat mill plant. With 60 years of success celebration, the firm has been able to diversify its core business of food through backward integration into other three revenue-generating segments which include Agro-allied, Sugar, and support services. Growth in these three classes of revenue has been impressive at a CAGR of 23.58%
over the past five years. These three segments reported total revenue of N293 billion (or 38.01% of total revenue) in FY-2021 compared to the N102 billion (or 19.4% of
total revenue) in FY-2017. The firm’s ability to expand its portfolio size with an explosive growth of this 23.58% CAGR validates its capacity to provide long-term value creation to shareholders while pursuing a de-risk business opportunity.

Fiscal Stability – A Need for States to Look Inward

By Popoola AkintayoPosted on February 18, 2022Posted in EconomyTagged FGN, Fiscal Policy, Lagos State, Nigeria, Revenue, States7 Comments

The existing revenue-sharing structure of the government stifles innovation and prevents the state from looking inward to improve revenue since the Federal Allocation remains intact. The major source of revenue for most States is the funding from FAAC, with many contributing little to the pool. Oil revenues which make up more than 42% of government income are generated from activities in oil-producing states, mainly in the South-South region, a fraction of the nation.