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Jemimah Iwok published in bellafricana, Entrepreneurship

Bellafricana challenges creative Business owners during the COVID-19 season

The world is slowing to a stop. There’s so much panic in the air. Business owners are scared, worried, frustrated. They are beginning to feel the effect of this global pandemic on their businesses. Organizations are shutting down or have had to resort to working remotely.

Some countries have even implemented periodic long lockdowns. Now more than ever, creative business owners will have to fight for online visibility. They will have to get more personal with their audiences should they want to make sales. They have to get more creative with marketing lest the competition swallow them up. Businesses will have to sell more tactically or risk being labelled insensitive.

Sometimes last week, the Bellafricana team had one of the usual strategy sessions to brainstorm ways which we can help our creative members thrive this period. As you know, Bellafricana is very passionate about helping, supporting, and empowering creative business owners in whatever way we can. So we kept thinking: “How can we eliminate these problems business owners will face?, or atleast reduce it and keep their minds positive”

Then the Light bulb moment struck and the Idea was born. Now, don’t get too impatient. Everything will start to make sense now.

We came up with a challenge to all creative business owners out there. Will they give in to the fear this season brings? Or will they fight the negativity?

Known as the Bellafricana Creative’s Challenge, it is a 30-day challenge containing daily tasks that participants (business owners especially) are expected to take part in.

Bellafricana creatives challenge

Where is this challenge taking place?

It is held primarily on Instagram. However, business owners are allowed to do the challenge on other platforms as well.

What will this Bellafricana Creatives Challenge do for you?

It will help you:

  1. connect with your customers on a personal level.
  2. have massive sales on standby the moment the restrictions are lifted.
  3. get to rediscover more about your business and gather more creative connections.
  4. Stay relevant and at the top of your customers’ minds, seeing that majority will be online this period.
  5.  Have lots of fun while maintaining a positive mindset.

Check out some samples of the daily challenges below:

Day 1: Bellafricana creatives challenge

Day 1: Bellafricana creatives challenge

Isn’t it so amazing the great works Bellafricana is doing for the creative community? If I can say so myself.

If we can each be a positive voice in our community then we stand a better chance of spreading more encouragement.

Connect with Bellafricana here: @bell_africana, a community platform enabling creative indigenous businesses thrive. To become a member, click here

If you are a creative entrepreneur, you can also take part in the Bellafricana Creatives Challenge? Click on this link to get your your own calendar: 

What do you think about this challenge, would be lovely to hear from you? Let me know in the comments.

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Jemimah Iwok published in Entrepreneurship, Gift Items, Meet The Founders

Lessons learned from Mrs Achenyo Idachaba, founder Mitimeth Nigeria

Achenyo Idachaba

It is interesting to note that businesses exist, who have managed to sprout amidst the creativity drought in today’s African business space. One of such businesses is Mitimeth (a Bellafricana member), founded by Mrs Achenyo Idachaba.

Thanks to her initiative, an invasive water weed (known as the Water Hyacinth) which obstructed water ways, depleted water nutrients, thereby reducing the population of fish (and by extension, the livelihood of fishermen) found use in a much more sustainable, eco-friendly way.

This “Eco-preneur” (Achenyo) has been featured on CNN, and her TED talk has garnered over a million views.

After reading the full story here, I thought of so many lessons and I wanted to share some of them with you:

 

1. Perspective is Everything

After reading her story, one word came to mind: Perspective.Thanks to my Boss, this one word is something I doubt I’ll ever forget.Where others saw a menace, Achenyo saw a business opportunity. This reminds me of a quote by Alphonse Karr :“We can complain because rose bushes have thorns, or rejoice because thorns have roses.”

Sometimes, a positive outlook on a seemingly threatening problem is all the boost we need to turn things around for the better.

2. Passion first, reward later.

I’m quite certain that we’ve reached that point in our careers/ businesses/ lives that the only thing stopping us from just packing up and leaving, is that 7-letter word.

Passion is that burning fire that should never be extinguished.This is because, when all else fails, it is the one thing that stands the test of time.

This makes me want to go back and do a thorough self assessment. What made me start this in the first place? If the monetary reward were eliminated, would I still be motivated to do it?

3. Add Value

Today, Mitimeth has empowered over 400 people with skills to provide them with daily sustenance, and hopes to do more.

While we might not be in the position to achieve similar feats, we can apply this in our business dealings with our customers (both prospective and current). John C Maxwell says : “Adding Value to others is the best way to add value to yourself”.

4. Enjoy the Process

These days, people appear to be focused on the end result, and rightly so. I mean, why start up anything if you don’t have the end goal in mind. Right?

However, understanding that the journey is a very integral part of the destination will help us live in the moment, thereby refueling that zest that will take us to the end.

I hope to let these four points be my guiding principles henceforth. Will you do the same?

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Jemimah Iwok published in Articles, Uncategorized

Does your Business have a workflow?

workflow

Everything called “business” existing today still has its crux hinged around the exchanging of goods(products) or services for paymnt, and no matter how small or big these products and services to be offered are, there is a process which involves several techniques, rules and procedures that simply cannot be overlooked that goes behind.

For example: Have you noticed how your tailor converts those yards of uncut fabric into beautifully crafted dress designs? And to your specifications too?

The whole transformation process starts from obtaining your body measurements and desired style. She then carefully cuts the fabric into different shaped pieces before she then starts sewing it together to form your dress.

Another designer goes behind to work on the embellishments and finishing touches, putting careful detail into every flow of tasks that’s needed to make a perfect dress.

What do these processes indicate? A system. Workflow, if you will.

What really is a workflow?

A workflow refers to any action or series of actions which are automated by other means e.g. tools, digital methods that can be triggered to occur by human actions. Thus, making all the tasks, information and data (carried out by staff and employees) streamlined to the achievement of the business/company’s goals.

Workflows essentially help reduce the stress of dealing with each step of the process manually and also cuts down precious time being wasted in achieving set targets and ultimately business goals.

Does your business need a workflow? Absolutely! Working hard is great, but working smart helps you get the job done quickly while you still retain your edge in the game.

Why your Business Should Have a workflow

Adopting a well-tailored workflow in your business can bring about a very sporadic change to your business management methods, optimize your business processes and ultimately its overall growth-rate.
Below are some noteworthy reasons why you should consider creating a workflow for your business today.

1. Improved Time Management

 

Time #management Almost all businesses are deadline driven and most of the time, they all usually end up wasting so much precious time getting manually involved with every stage of the process.

They eventually do not have time to bring in more creativity and by so doing jeopardizing quality. With the help of a good process automation software, you can automate several tasks such as project reminders, sending company mails out, setting up meetings, document reviews etc, and cut down on some wasted time.

2. Enhanced means of Communication

workflow

Poor communication between employer and employees and also amidst employees too is one of the biggest hinderance to business growth. This causes a general misunderstanding of company goals and objectives which may lead to poor and inaccurate decisions on anyone’s part.

Having a uniform automated communication channel eliminates the possibilities of human error.It will be ultimately pivotal to the overall team morale.

3. Designation of responsibilities

workflow responsibilities

As a business owner, you want to make sure that responsibilities are properly assigned to all of your employees with regards to the skill and capacity they each possess. This is to ensure that hands and brains are maximized to the fullest towards achieving set business objectives.

Each stage of the workflow helps define the specific responsibilities to be carried by each person more efficiently.

4. Enhanced Creativity & Productivity

The use of workflows overtime enhances creativity and ultimately productivity.

This is due to the fact that the bulk of the time-consuming processes are out of the way and there is now enough room for fresh views, ideas, reviews, criticisms, etc. amongst employees. The business’s growth is hinged to the employees’ creativity while the employee’s career growth is hinged to the company’s overall success.
Workflows make it easier for everyone.

Will you be willing to try this? I would love to hear from you.

 

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Jemimah Iwok published in Clothings, Fashion, Gift Items, Uncategorized

Last minute Mother’s Day Gift package on a budget

An important day every month of March yearly holds a significance not because of a serendipitous cosmic event or some famous historical birth but because it is the day the world agrees that mothers should be acknowledged and motherhood, celebrated.

On this special day, not only mothers but mentors, Godmothers, teachers, and absolutely every person that represents a mother figure are brought to the very forefront by their offspring and loved ones in recognition of the courage and selflessness that they embody through the rigor of child bearing and motherhood.

Well I’m sure you have realized that the D-day is here and if you still have not found the perfect Mother’s Day Gift gift item for her, this list is just perfect for you!

Let’s help you get your “mamushka” the perfect Mother’s Day Gift gift on a budget shall we?

1. Handprinted fabrics

Hardly will you find an African mother who does not treasure the looks of a beautifully designed fabric on her. These fabric are handprinted with love and care, and it is a certainty that she will love them.

a. Get handprinted fabric like this from Mimiremi Textiles here

Mimiremi textiles handprinted fabric

 

b. Patterned hand-dyed adire fabric says will make your mom’s day. Trust us when we say so. Get beautiful adire fabric from Adire lounge here.

Adire lounge fabric 1
Adire lounge fabric
Adire fabric 2
Adire lounge fabric

c. Asologe Fashion House is another store to find unique and versatile Adire prints. You can get Adire on Lace, fused with Aso-oke, and lots more. Your mom will sure love them. You can place your order here

Asologe 3

Asologe 3
Asologe 3

 

2. Skincare products

Another gift idea for your Mom would be a skincare set. Treat her skin to luxury skincare products that she’ll cherish for a long time.

See skincare products here:

modara naturals Mom's day set
modara naturals Mom’s day set

a. Get this special mother’s day skincare giftbox from Modara Naturals here:

Haske Body Butter
Sha Face Oil
Brilho Body Oil
Sinmi Foot Scrub
Ori Body Butter
Laushi Coffee Scrub
Safi Coconut Oil
Asakwa Black Soap

Plus a customized Modara towel.

Price- ₦20,000

organic life plus mom's day set
organic life plus mom’s day set

b.  This set of body oils and facial cleansers from Organic Life Plus will do wonders to your Mom’s skin. They also come with a customized box. Order yours here

rb organics face set
rb organics face set

c. You can also order a full face set from RB organics

This set contains:

Wash ₦2,500
Cream ₦4,000
Toner ₦2,500
Mask ₦4,000
Vitamin C Serum ₦8,500
Discount price ₦20,000

You get to save ₦1,500 from ordering the full set too😍. Amazing isn’t it? Order them here

3. Bags

If you have a budget planned and you desire to bring a wide and genuine smile to her face then you should go for a very classy and fashionable handbag. Guess what? You can never go wrong with bags!

When donned properly, they bring the perfect embellishment to any outfit and make her ooze style. Where can you get them? See a list of bags from Bellafricana verified brands that you can get gorgeous bags from:

a. Morin O bags are made from original, leather and would definitely put a wide grin on your Mom’s face.

 

Morin-O bag
Morin-O bag
Morin-O bag
Morin-O bag

 

Order bags from Morin O here

b.  Ethnik by Tunde Owolabi is another brand that serves trendy, African-Inspired, and irresistible bags. Mom will be so pleased with these:

Ethnik Utu bag
Ethnik Utu bag
Ethnik Naserian bag
Ethnik Naserian bag

Order them here

c. O’Eclat bags are your go-to if you need bags that never go out of style, and will keep Mom trendy and Chic. Shop them here

oeclat bags

oeclat bags

d. Think Oba couture if you’re opting for Embossed animal leather bags that are spacious!

Oba couture bag
Oba couture bag
Oba couture bag
Oba couture bag

e. Mira Oma Luxury is another brand that we trust for quality handmade bags that you can gift your mom. Order for them here

Miraoma bag set
Miraoma bag set
mira oma laptop bag
mira oma laptop bag

4. Shoes

It’s Mother’s Day and You really want to make sure you tell your mum how beautiful she is, truth is, every mother wants to know that they are still looking young and beautiful and there’s no better way to tell her than getting her a pair of nicely crafted shoes.

Boxing up anything from flat soles to sneakers (for the funky mum) delivers the message beautifully well.

Check out these beautiful shoes below:

 

Ethnik eyo sneakers in yellow
Ethnik eyo sneakers in yellow
Ethnik Eyo sneakers
Ethnik Eyo sneakers

Get them Here

b. If your mom would rather be comfortable with flats, Here are some sandals from Oba couture she would absolutely love. Shop them here

Oba couture pam slippers

Oba Couture flat sandals
Oba Couture flat sandals

Which of these would you get for your mom? Tell me in the comments.

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Jemimah Iwok published in Clothings, Fashion

The AMVCAs: Creative styles by Made-in-Africa Brands

Yesterday was the Africa Magic Viewers’ Choice Awards (AMVCA), an award show dedicated to rewarding hard work and talent in the movie industry.

I watched some part of the show, at least long enough to see jaw-dropping red carpet looks by celebrities.

Most interesting is the fact that a lot of them were styled by Nigerian fashion designers, and as Bellafricana is a  lover of the creative and African, I couldn’t help but share some looks wit you.

Here’s bringing you some of the most creative looks on the red carpet, all styled by Nigerian Fashion designers.

1. Talk show host and actress, Nancy Isime in an Xtrabrideslagos (XBL) masterpiece

Nancy Isime by Medlin Boss

2. Actress, film maker and Entrepreneur, Mercy Aigbe in a stunning gown by Luminee

Mercy Aigbe in Luminee

 3. Actress, Venita Akpofure in Trishocouture

4. Actress, Sharon Ooja in Gorgeous piece by Somobysomo

5. Actress and Filmmaker, Adunni Ade in Luminee

6. Actress, Idinma Okojie in breathtaking piece by Mazelle studios

7. Actor, Elozonam in T.I Nathan

 

8. Content creator and Infuencer  Denola Grey in Mazelle studios
Denola Grey in Mazelle studios
9. Influencer and Entrepreneur Mike Edwards in David Wej

There you have it. What other creative style by Indigenous brands did we miss out? Kindly leave a comment below!

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Jemimah Iwok published in Entrepreneurship

What to consider when planning a collaboration

“Effectively, change is almost impossible without industry-wide collaboration, cooperation, and consensus.”

-Simon Mainwaring

A business collaboration is an excellent way of getting things done for your business, especially when you are looking to leverage on the audience and resources of other businesses to actualize your business dreams or idea.

Collaborations could throw in a lot of relief in solving a business challenge. They also present opportunities to build the network you need to massively grow your business.
In truth “one tree cannot make a forest”. However, just before you decide to go all in to enjoy the benefits of collaboration, there are certain questions you should not only ask yourself but also have well defined answers for.

  1. WHAT VALUE YOUR INTENDING PARTNER WILL GET FROM

    Collaborations are not “parasitic” schemes where one party spends and the other party grows.

    Rather, they are more “symbiotic” in operation and are mutually beneficial to both parties at the long run.

    So, while you look after your own interests, you also want to think of what benefits the other party would gain partnering with you.

    Make sure the value you’re offering is one you’d like to receive if the roles were reversed.

  2. HOW WELL IT TIES TO YOUR GOAL

The pressure to “flow with the tide” when it comes to working with others could escalate. This might force you as a partner to agree decisions and ideas that could turn out to be detrimental to your own business goals.

What are your business goals? Does your intending partner have similar goals?
Knowing all of these will ensure that you both are in the same league.

3.  HOW IT WILL WORK OUT ON A SMALL SCALE

 

A whole lot of excitements envelopes the thought of “available resources” when it comes to collaborating with the “big fishes”.

Yes, you want to get right to work and finally bring that idea to fruition, you want to start with that fantastic project that no one has done before, Nice!

before you go all out and invest your time and resources into an idea with your collaborators, you might want to try it out on a smaller scale and see how it performs.
Doing that will help you determine if its something you want to do in the long run.

4. HOW MUCH TIME YOU’RE WILLING TO INVEST

Collaborations can be time consuming, especially with a poorly selected strategy.

It becomes a serious risk when targets have been set and deadlines for delivery have been put in place and you cannot put in the extra number of hours required to pull it off.

This could lead to frustration and ultimately loss of money and investments on both ends at the long run.
So, determine beforehand, how much time you are willing to spend (planning and preparation), and how much of your regular business time you are willing to spare.

5. THE LEGAL IMPLICATIONS

This is the most important part of any form of business agreement. All parties are to be well and duly informed of the legal implications of their actions in business. This is to be done by a lawyer.

When collaborations fail, all parties tend to go emotional about loss and hence things could go awry between both parties. That is why it is very important that both parties come to a legal agreement binding all parties involved and the course of action that should be taken as pertaining to the existing business law of the country at that particular time.

After considering these factors, you’re well on your way to planning a collaboration that will hugely boost your business.

The Bellafricana community is a platform where you can foster collaborations which can help drive great results for your business. Click on this link to sign up to our membership platform

References

https://www.fastcompany.com/90472869/why-tim-ferriss-focus-on-daily-habits-is-not-the-real-secret-to-success

https://www.smartcompany.com.au/business-advice/strategy/factors-consider-partnering-business/

 

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Jemimah Iwok published in Fashion

Did I hear you say Leather-Inspired Gifts?

Yes! You heard it right. Leathers are the perfect gift for anyone. Whether it be bags, shoes, wristwatches, cardholders, briefcases, clutches or what have you, when it comes to boxing up Leather as a gift for that special person, you can never go wrong.

If you are looking for quality and affordable Leather brands in Nigeria you can trust, no worries! We have curated this list just for you.

  1. Miraoma Luxury

Miraoma logo

Mira Oma is a luxury brand distinct in creating quality leather accessories made with an African twist.Its uniqueness is accredited to innovative fusion of ethnic fabrics, ornaments and exotic leather materials.

Miraoma shoes

Bags from Miraoma

Specializing in clutches, totes, cardholders, briefcases, cross body and messenger bags, their designs are exquisitely for men and women.

Miraoma bag set

 

You can visit their website, and Instagram page.

2. Morin O

morin o

Using the finest of Leather from Nigeria, Italy, India and skin farms in Africa, all Morin.O handbags and accessories are handcrafted to accentuate your style.

Morin O red bag

morin O pink bag

 

All these and more make their leather products ranging from handbags, travel accessories to belts and wallets the perfect gift item.

 

morin 0 leather slippers

You can visit their website, and Instagram page.

3. Oba Couture
Oba couture logo

When it comes to Luxury and Leathery Finesse, Oba couture is your brand!

 

 

Their products include handbags, sandals, shoes and other leather goods with a culture of fine craftsmanship, design and innovation. Their products make just the perfect gift for anyone.

You can visit their Instagram page

4. Ethnik By Tunde Owolabi

ethnik logo

Ethnik’s design philosophy is to produce sustainable fashion accessories that are uniquely Afrocentric, drawing inspiration from the Yoruba culture of Nigeria and other African cultures by telling their story through patterns and colors woven into beautiful fabrics.

ethnik bag and shoe
Ethnik boasts only of the highest quality and skillfully crafted leather products ranging from bags, to matching shoes and other accessories.

bag by ethnik bag by ethnik

You can visit their website, and Instagram page.

5. Pere Lei

pere lei

PereLei is also a leather goods brand that creates finely crafted leather pieces utilizing the finest array of colors, textures and skins.

Products include bags, shoes accessories, corporate souvenirs and other Leather inspired gifts.

6. O’eclat

 

Oeclat logo

O’Eclat Designs (pronounced O-eyklah) produces premium quality and affordable handcrafted leather handbags and accessories inspired by the rich African culture and tradition.

oeclat bag

oeclat belt bag

Just one glance at any of their products and you will have found just the perfect gift for that special person.

oeclat purse

You can visit their website, and Instagram page.

 

7. Detail Africa Luxury

logo detail africa

Yes! They put in the most careful detail to all of their leather products with classy urban and contemporary touches. Detail Africa design their products through excellent craftsmanship and is evident in their outlooks and quality of the products.

Bag detail africa back pack detail africa

And yes! They are affordable. Browse through their collection for your choice of gift items today.

You can visit their website, and Instagram page.

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Jemimah Iwok published in Fashion

Looking for quality Boots made in Nigeria?

As far as footwears are concerned, boots always seem to get more work done than regular shoes. While shoes are busy arguing semantics in a boardroom, boots are out in the garage actually doing work.

Boots are relatively versatile, as they can suit both casual and formal styles and in addition to comfort, they also provide good support for the feet.

Over the years, a few things have been found to be the true points of attraction to quality boots – Craftsmanship, how long these brands have been making products, overall rebellion against cheap widely popular footwear that has no soul, no longevity, and no visual appeal.

Unfortunately, boot lovers have to resort to seeking for renown brands abroad and have to wait out long periods of time, and also pay outrageous shipping fees before these products can be delivered in their own country.

 

BootsbyMetal is a boots brand that not only prides in the fact that it is fast becoming the trademark for quality boots over the years, but also in the fact that it is made in Nigeria.

BootsbyMetal boasts of world class quality products and knows exactly what to consider when producing for all classes of customers.

All Sizes

One of the major concerns for people with under and beyond average-sized feet when considering boots is if their sizes are currently in stock. Nobody wants to get a pair of kicks that lacks or shoots a couple of inches because they can’t readily find their size. All sizes can be purchased readily from any of the retail stores and in very rare cases where you want something even more fitted and streamlined, you could opt for the Custom Build option.

Comfortable insoles

The insole is the inner part of the shoe that touches the sole of the foot. A good insole supports each part of the foot but remains flexible and adapts to the foot’s movement.

You can test for comfortable insoles by walking around, standing on the tip of your toes to see if your toes have enough space to stretch out without being pushed to the tip and top of the shoe.

These boots have been specially patterned to grip the heel just right so you can walk comfortably.

Flexibility

The flexibility of the outside and top of the boot are important, as those parts also affect comfort. Quality Boots must be flexible enough to bend slightly but not so much as to bend in half. Also, there is support for the arch section of the boots which not only enhances fluid movement but also helps maintain balance as well.

Black-leather-bootsbymetal-shoes-made-in-Nigeria-1

Quality Materials to suit your Lifestyle

These locally made boots are made from different materials such as Leather, from full-grain to nubuck, animal skin, or synthetic fabrics such as cordura, which are resistant to abrasions.

Leather boots soften and mold to your feet as you use them, but they require extra care to keep the leather from cracking.

Meanwhile, synthetic material is easier to maintain but usually lacks the classic elegance leather boots offer.

BootsbyMetal offers a wide range of options to suit your lifestyle and your willingness to look after the material.

Boots bymetal shoes

 

WHY GO METAL?

As we proceed further into the year, some may choose to refresh their style, including giving boots a try and others may choose to try out a new brand. Here are some good reasons to get yourself a pair of Metal boots:

• Top Notch Quality
• Affordability
• Easy purchase with local currency
• Custom Build Services
• Wide range of choices
• No time delays in purchase and delivery

Want to order now?
Visit www.bootsbymetal.com to place your order now!

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Jemimah Iwok published in Entrepreneurship

Why should creative businesses join a community?

 
           “Alone, we can do so little; together, we can do so much”
              – Helen Keller

Many businesses today play the solitude game, and it has become profoundly important to drive conversations that spell out the need for creative businesses to join relevant business communities.

It is especially important for small businesses trying to sell and carve a niche for themselves locally to leverage on the inummerable benefits that come along with being part of a community where focus is directed more on partnerships, collaboration, and positive work culture.

How community membership benefits your business
  • A Sense of Connection

One major benefit a community provides is a unique support network for businesses (and individuals) that lends something that we all look for: a sense of belonging. That feeling of being connected and accepted by your peers is important for our personal growth and development.

By feeling like you belong, you have the confidence to take risks and try new things – which is the only way we can grow as a business and as a professional.

community

By feeling like you belong, you have the confidence to take risks and try new things – which is the only way we can grow as a business and as a professional.

  • Access to seasoned professionals

Another major advantage of belonging to one of these communities is getting access to seasoned professionals who have seen it all and have some great “war stories” to share.

Not only do these mentors have great advice about proven best strategies, but these more experienced professionals also know a lot more people than you do and are often willing to connect you to additional resources.

Numbers are the real strength of a community. While being an entrepreneur can be exciting and satisfying, it’s also challenging, so it helps to know you have the support of an entire community.

Strength in Numbers
Whether you want to form a coalition to challenge industry regulations or just need someone to listen, having peers to support you is critical.

 

  • Leadership/ Training Opportunities

Actively participating in community groups will eventually get you the chance to step forward and distinguish yourself as a thought leader within your industry.

You can help others, teach them, guide them to achieve more with the help of your unique experience. You’ll

  • Attention to industry trend movements

It is easy to work in a vacuum, handling daily operations, putting out fires, and living and breathing your own business.

However, you may find that it distracts you from what is going on around you, including events and breakthroughs that impact your industry or the overall business environment.

industry trend movement

Joining a community keeps you attuned to what is happening that could impact your business, as well as to ideas that might change your strategy or perception of what your customers need and want.

If you’re a creative business owner, and need a supportive community where you can get access to perks like:

Trading funds without collateral

Discounts and notifications on exhibition on Opportunities

Trainings to help grow your business, and lots more, you need to join the Bellafricana family.

The Bellafricana community boasts of a network of like minded creative businesses, who look out for each other, and treat one another as family. See what a Bellafricana Member has to say about this:

Didi Green

To join our community of audacious, talented and creative african inspired businesses, click on the link here

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Jemimah Iwok published in News

How the new finance bill affects businesses in Nigeria

The president of the Federal Republic of Nigeria, President Muhammadu Buhari not too long ago signed the Finance bill into law.

The Finance bill subsequently amended to “The Finance Act” saw to it that Value Added Tax (VAT) formerly 5% was increased to 7.5% for any product and services sold in Nigeria.

The President in a bid to shed light on the decision had explained that:
“This Finance Bill has five strategic objectives in terms of achieving incremental but necessary changes to our fiscal laws”

These objectives are:

  • Promoting fiscal equity by mitigating instances of regressive taxation
  • Reforming domestic tax laws to align with global best practice
  • Introducing tax incentives for investments in infrastructure and capital markets
  • Supporting Micro, Small and Medium-sized businesses in line with our Ease of Doing Business Reforms; and Raising Revenues for Government.

The new law states that small businesses with a turnover of less than N25 million are to be exempted from Companies Income Tax, while it lowers the tax rate for companies making up to N100 million from 30 percent to 20 percent.

This is expected to come as a relief to the lot of Small and Medium Enterprises (SMEs) in Nigeria, most of which already struggle to stay afloat in a hostile business environment.

What the increase in VAT really means

When the rate was 5%, it means that for a price of ₦1000 the buyer will pay an extra of ₦50 as VAT to government making the bill a total of ₦1050. If the item is to be used or for consumption, then that is where the VAT story ends.

But if the Item is to be sold, or used to produce something else which will be sold at say₦1500, then VAT of ₦75 needs to be charged, so the buyer pays ₦1575.

Since the first buyer payed VAT of ₦50 (input VAT) when the initial item was bought, he/she is entitled to deduct it from the VAT of ₦75 just charged (output VAT) and only pay the difference of ₦25 ( ₦75 – ₦50) to the Federal Inland Revenue Service (FIRS).

The above scenario is the same but the VAT has now been increased from 5 percent to 7.5 percent.

A Positive Effect?

Small and Medium scale enterprises in Nigeria are starved of capital as poor access to finance constitutes a major constraint for businesses.

Similar challenges encountered by the sector include the high cost of doing business and multiplicity of taxes, a problem the new bill looks to eliminate.

In analysis of the bill, some industry players had this to say:

“The initiative is laudable and the modifications to the fiscal rules around taxation are clearly aimed at creating an enabling business environment and alleviating the tax burden for small and medium enterprises”
-KPMG (accounting firm)

“With unrestricted access into the bank accounts of companies, businesses are now open to paying taxes more than ever. And to reduce tax evasion”
-Tayo Oluwole (Tax consultant)

“It is clear the amendments that the Act makes to existing tax laws will have a “significant impact” on businesses operating in the country.”
-Andersen Tax (website)

In consideration of standard of living and ease of doing business, the Finance Bill seeks to cushion the harsh effects of the 7.5% VAT by introducing other palliative measures.

For example, stamp duty on receipts became ₦50 for every transaction worth ₦10,000 and above, instead of the ₦1,000 threshold earlier used by banks.

Also, for Company Income Tax (CIT), businesses with a turnover of less than N25 million will be exempted.

CIT for businesses with sales of between 25 to 100 million falls from 30% to 20%. Also,businesses which pay their taxes on time will get a reprieve of 2%.

 

What do you think of the new finance bill? Have you started implementing it in your business? I would love to know!

 

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