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Category: Business

  • BREAKING! Court denies Binance executive, Gambaryan bail …see why

    BREAKING! Court denies Binance executive, Gambaryan bail …see why

    A Federal High Court in Abuja on Friday denied the bail application of a crypto currency firm executive, Tigran Gambaryan.

    Justice Emeka Nwite, while delivering the ruling, held that the bail application is refused as he has carefully gone through the application submitted before him and resolved that the defendant will jump bail if granted.

    Gambaryan, his company, Binance Holdings Limited, and a fellow top executive currently on the run, Nadeem Anjarwalla, were charged by the Economic and Financial Crimes Commission, with money laundering and terrorism financing .

  • President Tinubu Commissions Lithium Processing Factory in Nasarawa

    President Tinubu Commissions Lithium Processing Factory in Nasarawa

    President Bola Ahmed Tinubu, represented by the senate President, Godswill Akpabio, on Friday, unveiled a Lithium processing factory constructed by Avatar New Energy Materials Limited, a Chinese company.

    The event, held at Kama Otto in Nasarawa Local Government Area, exemplified a robust partnership between the federal government, the state, and private investors.

    Dignitaries at the event included the Nasarawa State Governor, Engr. Abdullahi Sule, Governor Usman Ododo of Kogi State, Minister of Solid Minerals Development, Dele Alake, federal lawmakers, former state leaders, and traditional rulers.

    President Tinubu, in his address, hailed the collaboration as a testament to Nigeria’s commitment to economic diversification. He emphasized the strategic significance of the Lithium Company, foreseeing its role in positioning Nigeria as a major player in the global Lithium market.

    Tinubu stated, “Realising the benefits of Lithium and other mineral resources, our administration will continue to pay particular attention to the maximum utilisation of the product for the benefit of our people.”

    Furthermore, he articulated the government’s aspiration for comprehensive value chain processing of Lithium and other minerals. Tinubu urged both domestic and international companies to engage with Avatar Company, emphasizing its pivotal role in Nigeria’s growth trajectory.

    Acknowledging the support received during the previous Presidential election, Tinubu expressed gratitude to the people of Nasarawa with the tangible contribution of the Lithium processing factory. He underscored the transformative impact of Nigeria’s participation in the production value chain of Lithium, heralding a new era of technological partnership and empowerment.

    Governor Abdullahi Sule commended President Tinubu and the local communities for their instrumental support in attracting such investment to Nasarawa. He highlighted the remarkable transformation of the region, previously plagued by security challenges, into a conducive environment for industrial development.

    The Minister, Dele Alake emphasized the profitability and feasibility of similar ventures, noting the increasing interest from investors. He advocated for robust protection of Lithium battery companies from foreign competition, citing their pivotal role in Nigeria’s economic resurgence.

  • More Woes For Nigerians As Presidency Moves To Increase VAT Rate

    More Woes For Nigerians As Presidency Moves To Increase VAT Rate

    The current financial woes of the Nigerian is set to get worse as the Presidential Committee on Fiscal Policy and Tax Reforms has put forth a proposal to increase the current Value Added Tax (VAT) rate. 

    Mr. Taiwo Oyedele the chairman of the committee, has highlighted the need for this change during a policy exposure session. 

    Currently set at 7.5 per cent, the proposed adjustment aims to restructure the revenue-sharing formula, with states and local governments set to receive a larger portion. 

    Oyedele stressed the importance of ensuring transparency and neutrality in VAT collection, emphasizing that the burden should fall on the ultimate consumer. 

    To mitigate the impact on small businesses and the underprivileged, certain essential goods and services would remain exempt from VAT. 

    He said, “We are proposing that the federal government’s portion should be reduced from 15 per cent to 10 per cent. States’ portion will be increased, but they would share 90 per cent with local governments.

    “In 1986, we had sales tax collected by states. The military came up with VAT in 1993 and stopped sales tax, so they said it would collect VAT and return 15 per cent as cost of collection, and that is the 15 per cent charged today came about. But we think it is too much.

    So we must make it transparent and neutral, and this is what over 100 countries where they have VAT are doing.

    “Nigeria’s economy is more than 50 percent in services and if I just stop at this, many states will be broke because VAT collection will go down by more than 50 percent and it won’t even fly.

    “So we, therefore, need to adjust the VAT rate upward. We would ensure that it doesn’t affect businesses. The only thing is to look at basic consumption from food, education, medical services, and accommodation will carry zero per cent VAT. So, for the poor and small businesses, no VAT.”

  • CBN Suspends Charges On Cash Deposits 

    CBN Suspends Charges On Cash Deposits 

    The Central Bank of Nigeria has decided to stop charging fees on cash deposits until September 30, 2024.

    The central bank shared this information in a memo dated May 6, 2024, signed by Adetona Adedeji, who is the director of banking supervision at CBN.

    CBN said,“Please refer to our letter dated December 11, 2023, referenced BSD/DIR/PUB/LAB/016/023 on the above subject, suspending processing charges imposed on cash deposits above N500,000 for Individuals and N3,000,000 for Corporates as contained in the “Guide to Charges by Banks, Other Financial Institutions and Non-Bank Financial Institutions” issued on December 20, 2019,”

    “The Central Bank of Nigeria (CBN) hereby extends the suspension of the processing fees of 2% and 3% previously charged on all cash deposits above these thresholds until September 30, 2024.”

  • Central Bank of Nigeria Mandates Registration of All PoS Operators with CAC

    Central Bank of Nigeria Mandates Registration of All PoS Operators with CAC

    In a bid to tackle fraudulent activities and bolster transparency within the financial sector, the Central Bank of Nigeria (CBN) has issued a directive requiring all point-of-sale (PoS) operators to register with the Corporate Affairs Commission (CAC) within a two-month timeframe.

    According to reports, PoS terminals have been implicated in a significant portion of fraud incidents, accounting for a staggering 26.37% of such cases in 2023 alone. This move by the CBN seeks to address these concerns and ensure the integrity of transactions conducted through PoS systems.

    With Nigeria boasting 1.8 million PoS agents as of 2022, the directive mandates that all operators must undergo registration with the CAC to continue conducting business in the country.

    The announcement came following a meeting between representatives from the fintech industry and Hussaini Magaji (SAN), the Registrar-General/Chief Executive Officer of the CAC, held in Abuja on Monday, May 7th. Magaji emphasized that the registration deadline of July 7th is in accordance with legal obligations and aligns with the directives of the CBN.

    “The Corporate Affairs Commission and Fintech companies in Nigeria, better known as PoS operators, have agreed to a two-month timeline to register their agents, merchants, and individuals with the CAC in line with legal requirements and the directives of the Central Bank of Nigeria,” stated Magaji.

    The collaborative effort between the CAC and fintech companies underscores the commitment to regulatory compliance and the promotion of a secure financial ecosystem in Nigeria.

  • More Burden on Nigerians as the Central Bank Slams Another Tax on Bank Customers

    More Burden on Nigerians as the Central Bank Slams Another Tax on Bank Customers

    It will seem like there may be no respite soon for the toiling mass of Nigerians as they continue to be bombarded by all manners of taxes, tariffs and levies by the government and service providers with the latest being the introduction of a 0.5 per cent “cybersecurity levy” by the Central Bank of Nigeria (CBN).
    Earlier in the day, First Bank Nigeria Plc led others in the reintroduction of two percent processing charge on deposits above N500,000 and three per cent charge on amounts above N3,000,000 for corporate customers. The reintroduction of these charges is coming about four months after the Central Bank of Nigeria suspended such charges for cash deposits above N500,000.
    In a circular signed by Chibuzor Efobi, Director of Payments System Management and Haruna Mustafa, Director of Financial Policy and Regulation, the CBN said collection of the new levy shall commence in two weeks from yesterday, May 6th, 2024 and it shall be remitted to the Office of the National Security Adviser (ONSA).
    Even though the apex bank was silent on the use into which the ONSA will put the proceeds of the new tax to be paid by bank customers, it explained that deduction and collection of the cybersecurity levy is consequent upon the enactment of the Cybercrime (Prohibition, Prevention etc) Amendment Act of 2024.
    It was explained in the circular that Section 44 (2)(a) of the Act, provides for the collection of “a levy of 0.5% (0.005) equivalent to a half percent of all electronic transactions value by the business specified in the second schedule of the Act, is to be remitted to the National Cybersecurity Fund (NCF), which shall be administered by the Office of the National Security Adviser (ONSA).”
    It was further stated that the CBN shall rely on commercial, merchant, non-interest and payment service banks, as well as mobile money operators for the collection of the levy. It also stated that any defaulting institution that fails to remit funds collected shall be liable to a fine of not less than two percent of the annual turnover of the defaulting business.
    “Deductions shall commence within two (2) weeks from the date of this circular for all financial institutions and the monthly remittance of the levies collected in bulk to the NCF account domiciled at the CBN by the 5th business day of every subsequent month,” the bank stated.

  • FG Registers New Trade Union 

    FG Registers New Trade Union 

    The Federal Government has registered a new trade union.

    This means that illegal price fixing and exploitation of customers in Nigerian markets may soon be a thing of the past.

    These are some of the roles members of the newly registered National Union of Market Trade of Nigeria are to perform as workers.

    At its executive inauguration, officials of both the Ministry of Labour and Employment, and, the Nigeria Labour Congress, NLC however told the new union to avoid clashes with related workers groups and government established agencies in the market.

    The National Union of Market Trade of Nigeria is the latest affiliate of the NLC and with this latest addition, the labour centre now has 46 affiliates.

  • Guinness Nigeria reports N62bn loss despite price hikes

    Guinness Nigeria reports N62bn loss despite price hikes

    Despite the hikes in prices of it’s products, Guinness Nigeria has reported a loss of N61.7 billion for the nine-month period ended March 31, 2024, compared to a profit of N5.9 billion in the same period of 2023 despite an increase in price.

    The brewer recorded 28 per cent growth in revenue to N220.3 billion compared to N172.5 billion in the same period last year.

    The Managing Director/CEO of Guinness Nigeria Plc, Adebayo Alli, who expressed this said that, while the current macroeconomic environment will continue to present challenges, “I am confident in the resilience of our business and our ability to navigate the volatility.”

    “Our focus remains steadfast on innovation and stepping up operational excellence to meet our consumers’ evolving tastes and preferences.

    “Furthermore, the company intensified its focus on consumer engagement and trade support, leveraging its digital platforms.

    Notably, categories such as non-alcoholic malt, ready-to-serve beverages, and international premium spirits witnessed substantial revenue growth, underscoring the effectiveness of these strategies,” he said.

    Recall that earlier in May, Guinness Nigeria implemented a price increase on all its products, which was ascribed to the rising cost of production and cost of doing business.

    It said in a notice titled, “Price Increase by Guinness Nigeria Plc – Selected Brands,” which was signed by its Ag. commercial director, Olusanya Adesanya, that the new range of prices would take effect from today.

    “Following the prevailing economic realities which have impacted significantly on the costs of our production materials and cost of doing business, this is to inform you that we plan to take a price increase on selected SKUs in our Beer and MSS category,” Guinness Nigeria said.

    “This new price structure will be effective from Wednesday, March 13, 2024, (Go-Live date), and further details will be communicated subsequently,” it said.

    Guinness further told its customers to, “please note the following conditions regarding the price increase. Maximum purchase volume before price increase at old pricing is capped at one-week depletion subject to stock availability.

    Affected products are Guinness Stout, Guinness FES, Guinness Smooth, Malta Guinness, Dubic Malt, Smirnoff Ice, Orijin, Orijin Bitters, Gordon’s Pink Berry, Gordon’s Sunset Orange, Gordon’s Moringa Citrus, Smirnoff X1 Smooth and Choco, Captain Morgan and Orijin Herbal Gin.

    Guinness price of about N500 now sells for N800 and N900, indicating 80 per cent increase. Big stout retails N1000 from N700, which is a 43 per cent increase.

    Trophy’s price increased by 40 per cent to N700 from N500 while Guilder retails N1000 from N600, indicating 67 per cent increase.

    Guinness Nigeria, a Nigerian-based subsidiary of Diageo Plc of the United Kingdom, was incorporated in 1962 with the building of a brewery in Ikeja. The brewery was the first Guinness operation outside Ireland and Great Britain. Other breweries have been opened over time: Ogba brewery in 1963 and Benin City brewery.

  • Again, Dangote reduces diesel, aviation fuel prices 

    Again, Dangote reduces diesel, aviation fuel prices 

    Dangote Petroleum Refinery has once more announced a further crash in the prices of diesel and aviation fuel to N940 and N980 per litre, respectively.

    This comes in the wake of its widely celebrated price crash to N1,000 barely two weeks ago.

    The new price of N940 is applicable to customers buying five million litres and above from the refinery, while N970 is for customers buying one million litres and above.

    While speaking on the new development, the Head of Communication, Dangote Group, Anthony Chiejina, pointed out that the new price is in consonance with the company’s commitment to cushion the effect of economic hardship in Nigeria.

    “I can confirm to you that Dangote Petroleum Refinery has entered a strategic partnership with MRS Oil and Gas stations, to ensure that consumers get to buy fuel at affordable price, in all their stations be it Lagos or Maiduguri. You can buy as low as 1 litre of diesel at N1,050 and aviation fuel at N980 at all major airports where MRS operates,” Chiejina said.

    He added that the partnership will be extended to other major oil marketers.

    “The essence of this is to ensure that retail buyers do not buy at exorbitant prices. The Dangote Group is committed to ensuring that Nigerians have a better welfare and as such, we are happy to announce these new prices and hope that it would go a long way to cushion the effect of economic challenges in the country,” he stated.

  • CBN sells $10,000 to BDCs at N1,021 per dollar

    CBN sells $10,000 to BDCs at N1,021 per dollar

    The Central Bank of Nigeria, CBN, has approved the sale of an additional 10,000 dollars to 1,583 eligible Bureaux De Change, BDC, operators in the country to meet the demands of the market.

    The CBN’s Director, Trade and Exchange Department, Dr Hassan Mahmud, made this known in a letter addressed to the President, Association of Bureau De Change Operators of Nigeria, ABCON, on Tuesday in Abuja.

    Mahmud said that the CBN would sell to the BDCs at the rate of N1,021 to a dollar.

    “The BDCs are, in turn, to sell to eligible end users at a spread of not more than 1.5 per cent above the purchase price,” he said.

    He directed all eligible BDCs to commence payment of Naira deposit to some designated CBN Naira deposit account numbers.

    “All BDCs are advised to continue to abide by the rules and conditions as stipulated in our earlier operational guidelines,” he added.

    Recall that on April 8, the apex bank approved the sale of 10,000 dollars to 1,588 eligible BDC operators at the rate of N1,101 to the dollar amid efforts to stabilize the Naira at the FX market.

    The development comes amid the recent drop in the value of the Naira against the dollar. From last month to date, the Naira has depreciated four times.