Business News in Nigeria Friday, 29 September 2023

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Here are your top 5 news items for the Business News in Nigeria today - Economic Sector | Exchange Rate | Telecoms Sector | Taxation | Climate Change

 

CBN will spend $3bn loan to stabilise economy – NEC– Punch

The National Economic Council on Thursday affirmed that the $3bn emergency loan-for-crude oil the Federal Government secured in August would be deployed to stabilise the naira, whose value has continued to fluctuate in the Investors & Exporters’ window and worsened in the parallel market, hitting N1000/$ earlier this month.

Addressing State House correspondents after the 136th NEC meeting, which was held at the Aso Rock Presidential Villa, Abuja, the Nasarawa State Governor, Abdullahi Sule, said, “So, we are very confident and we still believe very strongly that with the plan that will come out and with all these items that have been listed on the improvement of revenue, the $3bn shall be useful to us down the line.”

On August 16, the Nigerian National Petroleum Company Limited revealed that it secured an emergency $3bn crude repayment loan from Afrexim Bank to relieve pressure on the naira. It said the loan would enable it to settle taxes and royalties in advance.

 

Naira hits record low, now N1,008 at parallel market – The Sun

Nigeria’s naira fell to an all-time low at the parallel market on Thursday, trading at N1008/$1 largely due to speculative demand as businesses turned to the dollar as  a store of value. 

This is even as a recent assessment of oil prices conducted revealed that the brent crude had surged to $97.24 per barrel, marking its highest point since November 2022. 

According to abokifx, the dollar which traded at N1000, closed at N1008 and this has led to concerns that the present administration is still struggling to solve the challenge of FX. Daily Sun had earlier reported that with speculative activities and excess demand being shifted to the informal market, the widening gap between the official market and parallel market has increased to about N252.92. 

Currently, the country faces acute shortage of foreign currency and the newly appointed Central Bank of Nigeria (CBN) Governor, Yemi Cardoso, has stated.

 

Telcos plan different tariffs for calls, data in states – Punch

Nigerians may soon be paying different prices in different states for calls, data, SMS, and other telecommunication services, telecommunication firms have said. According to the telcos, this measure is to mitigate against multiple taxation and business environments across different states. They stated that it was no longer appropriate for Nigeria to continue to have one national tariff since the cost of providing service across the states was different. 

The Chairman, Association of Licensed Telecoms Operators of Nigeria, Mr Gbenga Adebayo, disclosed this in Lagos during his goodwill address at ‘The Nigeria eGovernment Summit 2023’ themed, ‘eGovernment: Pathway to a prosperous nation,’ on Thursday. 

He said, “We have been talking about multiple taxation for many years. It may not be appropriate to continue to have one national tariff because if the cost of providing services in one region is high.

 

FG targets wealthy Nigerians in new tax drive – Punch

The Federal Government is planning to overhaul the nation’s tax system to shift more of the burden to wealthy citizens while cutting corporate taxes. The move — part of President Bola Tinubu’s reforms to overhaul the beleaguered economy – aims to lift the country’s tax take to 18 per cent of Gross Domestic Product within three years from 11 per cent now, according to a Bloomberg report.

A tax amnesty to encourage compliance is also under consideration. The plan is to make “the rich pay what is fair and those who are too poor can be protected,” said Taiwo Oyedele, who is leading a panel appointed by Tinubu to drive the changes. “We also envisage a reduction in the corporate income tax rate,” to below the current effective rate of more than 40 per cent to help boost business.

 

AfDB unveils climate funding guidelines for Nigeria, others – Punch

The African Development Bank Group has published country-by-country economic reports to guide Nigeria and other African policymakers to access the needed climate finance. This was revealed in a statement by the development bank on Thursday. The reports were launched ahead of the 28th United Nations Conference on Climate Change.

Chief Economist and Vice President of the African Development Bank Group, Prof Kevin Urama, said the reports would help evoke “sound, practical and implementable policies” to enhance private sector financing for climate change and green growth.

“As countries prepare for COP28, the reports provide each African country with independent, verified analysis and recommendations for evidence-based negotiations during the global conversation on climate finance and green transitions,” Urama said. According to the AFDB, the new Country Focus Reports provide analysis and policy recommendations to strengthen countries’ active participation at COP 28, which takes place in Dubai, United Arab Emirates between November and December 2023.

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