The Nigerian Senate passed a Finance Bill last week which intends to hike the Value Added Tax (VAT) from five percent to 7.5 percent. This has left many Nigerians especially business owners and financial experts infuriated.
Segun Ajayi-Kadiri, Director-General of Manufacturers Association of Nigeria( MAN), argued that the increase is ill-timed and ostensibly aimed at increasing the government’s revenue portfolio.
However, Chairman of the Finance Bill Committee, Senator Olamilekan Adeola, advocates that the bill will amend Nigeria’s tax provisions making them more responsive to the tax policies of the federal government. More details here.
Below is the Ventures Africa Weekly Economic Index, for the week ending 22nd of November 2019. This economic index gives you a glimpse into other recent activities in Nigeria’s economy as well as changes and prices that could affect the economy:
Nigerian Stock Exchange
Data released by the Nigerian Stock Exchange (NSE) as of November 22nd 2019, showed that the NSE All-Share Index appreciated by 0.52% while Market Capitalization depreciated by 0.34% to close the week at 26,991.42 and N13.027 trillion respectively. All other indices finished higher with the exception of NSE Premium, NSE Banking, NSE-AFR Bank Value and NSE Industrial Goods indices which declined by 0.49%, 0.86% 0.28% and 2.25% respectively.
Top five price gainers and decliners in the week under review:
Top five price gainers
Neimeth International Pharmaceuticals Plc.
Cornerstone Insurance Plc.
Chams Plc.
Ikeja Hotel Plc.
Conoil Plc.
Top five price decliners
Lasaco Assurance Plc.
Jaiz Bank Plc.
Associated Bus Company Plc.
Sterling Bank Plc.
AIICO Insurance Plc.
How did the Naira fare?
The Naira decreased against the dollar at the close of last week. The exchange rate slid to 363 Naira per dollar on the 22nd of November 2019, slightly higher than 362 recorded a week before.
How did the price of oil fare?
Brent oil prices closed out the week on the 22nd of November 2019 at $66.07 per barrel, an increase from the $63.46 recorded a week earlier.
By Treasure Nnabugwu.
The post Weekly Economic Index: Nigerians in outrage over 50% VAT hike appeared first on Ventures Africa.
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