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Category: Economy

  • FG Gazettes 2024 Withholding Tax Regulations

    FG Gazettes 2024 Withholding Tax Regulations

    The Federal government has published the Deduction of Tax at Source (Withholding tax) Regulations, 2024, in the official gazette.
    According to the Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, the regulation was gazetted today, Wednesday, 2nd October 2024.
    The Withholding Tax Regulations grant rates reduction and full exemption from withholding tax to many businesses, including Small and Medium Enterprises (SMEs) with annual turnover not exceeding ₦25 million.
    “The commencement date of the new Regulations is 30th September 2024, while implementation begins on 1st January 2025 to allow for a minimum of 90 days notice required for tax changes in line with the 2017 National Tax Policy,” Oyedele said.
    He explained that there is a provision permitting the Federal Inland Revenue Service with the approval of the Minister of Finance, to permit early application of the regulation from 1st July 2024.
    “However, there is a provision permitting the FIRS, with the approval of the Finance Minister, to issue guidelines for the implementation of the Regulations and where appropriate, permit early application of the Regulations from 1st July, 2024.
    “The essence of this provision is to enable persons who wish to adopt the Regulations early to do so given that it is generally providing reliefs to businesses rather than imposing a burden,” Oyedele explained.

  • Petrol landing cost drops amid naira appreciation

    The landing cost of petrol has dropped from the N981/litre recorded on September 25, 2024, to N945.63/litre as of September 27.
    This is according to data released by the Major Energies Marketers Association of Nigeria on Monday.
    The drop in the landing cost of petrol happened following the appreciation of the naira against the United States dollar.
    In the MEMAN report, a dollar was said to have been exchanged for N1,586.26 on September 27 while it was N1,667.22 on September 25.
    Also, Brent, the global benchmark for crude, dropped from the $73.67/barrel recorded in the last report released by MEMAN to $72.45 in the latest report on Monday.
    The fall must have also contributed to the reduction in the landing cost of imported petrol.
    The average ex-depot prices of PMS saw a marginal reduction in Lagos, Calabar, and Port Harcourt.
    The major marketers disclosed that the landing cost of diesel, which was N1,089/litre previously, dropped to N1,068.04/litre, while that aviation fuel also fell from N1,117.34/litre to N1,079.79/litre.
    It was observed that the difference between imported petrol and that of Dangote might be less than N46 if calculated by the N898/litre which the Nigerian National Petroleum Company claimed it bought the Dangote fuel.
  • Subsidy Has To Go – Dangote To Nigerian Government

    Subsidy Has To Go – Dangote To Nigerian Government

    As Nigerians grapple with prohibitive pump price of petrol and consequent spiraling inflation, Alhaji Aliko Dangote, the President and Chief Executive of Dangote Refinery, repeats the call for removal of fuel subsidy.
    The businessman asserted that the removal would determine the actual petrol consumption in the country.
    Speaking in a 26-minute interview with Bloomberg Television in New York on Monday, he confirmed ownership of two oil blocks in the upstream sector with an expected production date of next month.
    Dangote also stated that fuel production from his $20bn mega refinery in Lagos will help ease pressures on the naira.
    Speaking further, he noted that ending petrol imports will have a huge upside in easing currency pressures.
    According to him, “Subsidy is a very sensitive issue. Once you are subsidising something then people will bloat the price and then the government will end up paying what they are not supposed to be paying. It is the right time to get rid of subsidies.
    “But this refinery will resolve a lot of issues out there, you know, it will show the real consumption of Nigeria, because, you know, nobody can tell you. Some people say 60 million litres of gasoline per day.
    “Some say, it’s less. But right now, if you look at it by us producing, everything can be counted. So everything can be accounted for, particularly for most of the trucks or ships that will come to load from us. We are going to put a tracker on them to be sure they are going to take the oil within Nigeria, and that, I think, can help the government save quite a lot of money. I think it is the right time, you know, to remove the subsidy.”
    On whether the subsidy will make the refinery viable, Dangote said, “Well, you see, we have a choice of either one. We produce, we export, and when we produce, we sell locally. But we are a big private company. And yes, it’s true, we have to make a profit. We build something worth $20bn so definitely we have to make money.
    “The removal of subsidies is totally dependent on the government, not on us. We cannot change the price, but I think the government will have to give up something for something. So I think at the end of the day, this subsidy will have to go.”

  • FG to supply Dangote Refinery 12m barrels of crude in October

    The Federal Government and Dangote Refinery have finalized an agreement for the supply of 12 million barrels of crude oil to the facility in October.
    Aliko Dangote, the chief executive officer of Dangote Refinery, confirmed this information during an interview with Bloomberg TV in the United States.
    He stated that the crude oil supply is a component of an ongoing agreement with the federal government, aimed at allowing the refinery to process crude domestically and produce petrol, diesel, and jet fuel for the local market.
    This arrangement is part of the “Crude Oil for Naira” initiative, which represents a strategic collaboration between the Dangote Group and the Nigerian government.
    “We are working towards a solid agreement with the federal government that ensures energy security for the country. This means no more fuel queues,” Dangote stated.
    “The government has committed to providing us with crude oil, and in October, they will deliver 12 million barrels, which translates to roughly 390,000 barrels a day. We will refine this crude to produce gasoline, diesel, and aviation fuel for the local market. Any surplus will be exported.”
    Dangote further noted that it will help bring 50 to 60 per cent of currently non-operational filling stations back into service, drastically improving access to fuel across the country.
    “The deal with the government ensures that we sell the refined products to all marketers, which will mean the reopening of 50 per cent to 60 per cent of our petrol stations that have been idle. This will also reduce the costs tied to having ships floating off the coasts of Lomé and elsewhere. In terms of demurrage alone, we are looking at saving over $1 billion,” Dangote added

  • NiMet predicts three-day thunderstorms from Monday

    The Nigerian Meteorological Agency (NiMet) has predicted thunderstorms from Monday to Wednesday across the nation.
    NiMet`s weather outlook released in Abuja on Sunday forecast morning thunderstorms on Monday over parts of Sokoto state, Kebbi and Borno.
    According to it, thunderstorms are envisaged over parts of Borno, Yobe, Jigawa, Taraba, Adamawa, Gombe, Bauchi, Kano, Katsina, Kaduna, Zamfara, Kebbi and Sokoto States later in the day.
    “Thunderstorms are anticipated over parts of the Federal Capital Territory, Niger, Nasarawa, Benue, Plateau and Kwara States during the morning hours.
    “ In the afternoon and evening periods, isolated thunderstorms are expected over parts of Kwara, the Federal Capital Territory, Niger, Benue and Kogi states.
    “Rains are envisaged over the southwest inland, especially parts of Oyo, Ondo, Osun, Ekiti and Ogun extending to the coastal states of Lagos, Delta, Rivers, Cross River, Akwa Ibom and Bayelsa States during the morning hours, “ it said.
    The agency envisaged thunderstorms over parts of Enugu, Edo, Ebonyi, Ondo, Abia, Osun, Imo, Ekiti, Delta, Bayelsa, Cross River, Rivers and Lagos states later in the day.
    NiMet anticipated isolated thunderstorms over parts of Taraba, Kaduna, Katsina, Kano, Sokoto and Zamfara states during the morning hours on Tuesday.
    According to it, thunderstorms are expected over parts of Borno, Yobe, Jigawa, Bauchi, Taraba, Gombe and Adamawa states later in the day.
    “Thunderstorms are envisaged over parts of the Federal Capital Territory, Niger, Benue and Nasarawa States within the morning hours.
    “Later in the day thunderstorms are expected over the Federal Capital Territory, Niger, Nasarawa, Benue, Plateau and Kwara states.
    “Morning rains are envisaged over parts of Enugu, Ebonyi, Abia, Imo, Lagos, Bayelsa, Akwa Ibom, Cross river and Rivers States while the remaining parts of the South should be cloudy,” it said.
    It anticipated thunderstorms over parts of Oyo, Ekiti, Ogun, Ondo, Imo, Edo, Delta, Lagos, Bayelsa, Akwa Ibom, Cross river and Rivers States later in the day.
    The agency predicted morning thunderstorms over parts of Bauchi, Gombe, Adamawa, Borno, Zamfara, Sokoto and Kebbi states on Wednesday.
    According to it, isolated thunderstorms are expected over parts of Yobe, Bauchi, Gombe, Taraba, Kaduna, Kano and Katsina states.
    NiMet forecasts thunderstorms over parts of Niger and Kwara States while the remaining States in the North Central should be cloudy during the morning hours.
    “ Later in the day, thunderstorms are expected over parts of the Federal Capital Territory, Plateau, Nasarawa and Benue States.
    Rains are expected over parts of Cross River. Rivers and Akwa Ibom States during the morning hours with cloudy skies to the rest of the states in the South.
    “Later in the day, thunderstorms are expected over most parts of Imo, Abia, Anambra, Enugu, Ebonyi, Oyo, Osun, Ogun, Ekiti, Lagos, Ogun, Cross River, Akwa Ibom, Rivers, Bayelsa, Edo and Delta States,,“ it said.
    NiMet urged residents to avoid flood-prone areas as there is a high likelihood of urban flooding in major cities due to heavy downpours.
    According to it, strong winds may precede the rains in areas where thunderstorms are likely to occur, so the public should take adequate precaution.
    “Adhere to safety advisories issued by relevant authorities. Public and Airline operators are advised to get updated weather reports and forecasts from NiMet for effective planning in their operations.
    “Residents are advised to stay informed through weather updates from NiMet. Visit our website, www.nimet.gov.ng.”
  • Price of 5kg cooking gas jumped from N5,974 in July to N6,430 in August— NBS

    Price of 5kg cooking gas jumped from N5,974 in July to N6,430 in August— NBS

    The National Bureau of Statistics (NBS) says the average price of 5kg of cooking gas increased from N5,974.55 recorded in July 2024 to N6,430.02 in August 2024.
    This is contained in the bureau’s “Cooking Gas Price Watch’’ for August 2024 released on Sunday in Abuja.
    The report said the August price represented a 7.62 per cent increase, compared to what was obtained in July.
    The NBS said the average price of 5kg of cooking gas increased on a year-on-year basis by 56.25 per cent from N4,115.32 in August 2023 to N6,430.02 in August 2024.
    On state profile analysis, the report showed that Benue recorded the highest average price at N7,000 for 5kg cooking gas, followed by Rivers at N6,954.55, and Borno at N6,914.29.
    It said on the other hand, Taraba recorded the lowest price at N5,600.67, followed by Abuja and Kogi at N5,825.00 and N5,857.56, respectively.
    Analysis by zone showed that the South-East recorded the highest average retail price at N6,585.18 for 5kg cooking gas, followed by the South-South at N6,451.34.
    “The North-Central recorded the lowest average retail price at N6,344.29,” the NBS said.
    Also, the NBS said the average retail price for refilling a 12.5kg cooking gas increased by 9.05 per cent on a month-on-month basis from N14,261.57 in July 2024 to N15,552.56 in August 2024.
    The report said the average retail price for 12.5kg cooking gas rose by 69.15 per cent on a year-on-year basis from N9,194.41 recorded in August 2023 to N15,552.56 in August 2024.
    State profile analysis showed that Rivers recorded the highest average retail price of N17,086.36 for 12.5kg cooking gas, followed by Cross River with N17,050.00 and Abia with N17,012.52.
    On the other hand, the report showed that the lowest average price for 12.5kg of cooking gas was recorded in Bauchi at N13,425.00, followed by Nassarawa and Adamawa at N13,640.94 and N13,725.00 respectively.
    Analysis by zone showed that the South-South recorded the highest average retail price of N16,524.00 for 12.5kg cooking gas, followed by the South-East at N16,495.78
    The report said the North-Central recorded the lowest price at N14,767.41.
    Similarly, the NBS said the average retail price per litre of kerosene increased to N1,847.59 in August 2024 on a month-on-month basis, showing an increase of 4.39 per cent, compared to the N1,769.86 recorded in July 2024.
    According to its National Kerosene Price Watch for August 2024 on a year-on-year basis, the average retail price per litre of kerosene rose by 45.21 per cent from N1,272.40 in August 2023.
    On state profile analysis, the report showed that Zamfara recorded the highest average price at N2,566.67 per litre of kerosene in August, followed by Kano with N2,444.44 and Ogun with N2,388.89.
    “On the other hand, the lowest price was recorded in Taraba at N1,181.18, followed by Adamawa at N1,185.74 and Borno at N1,296.95.”
    The NBS said the analysis further showed that the North-West recorded the highest average retail price per litre of Kerosene at N2,118.29, followed by the South-South at N2,075.45,
    It said the North-East recorded the lowest average retail price per litre of kerosene at N1,454.38.
    The report said the average retail price per gallon of Kerosene paid by consumers in August 2024 was N6,441.94, indicating an 11.80 per cent increase from N5,762.10 recorded in July 2024.
    “On a year-on-year basis, the average price per gallon of kerosene increased by 48.04 per cent from N4,351.53 recorded in August 2023.
    On state profile analysis, it showed that Katsina recorded the highest average
    retail price at N8,200 per gallon of kerosene, followed by Kebbi at N8,075.00 and Kaduna at N8,038.46.
    The report said Nasarawa recorded the lowest price at N5,092.46, followed by Niger and Plateau at N5,104.17 and N5,445.83, respectively.
    Analysis by zone showed that the North-West recorded the highest average price per gallon of Kerosene at N7,787.64, followed by the South-West at N6,593.22.
    “North-Central recorded the lowest average price per gallon of Kerosene at N5,463.69,” the NBS said.
  • CBN Clarifies Status of Cybersecurity Levy

    CBN Clarifies Status of Cybersecurity Levy

    The Central Bank of Nigeria (CBN) has denied reintroducing the cybersecurity levy which collection was recently suspended.

    The levy, initially mandated at 0.5 percent for banks to collect on behalf of the National Security Adviser, was put on hold following backlash from the public and a directive from the Federal Executive Council.

     

    Despite ongoing rumors suggesting the levy’s reintroduction, the CBN firmly denied these claims in its recent Monetary, Credit, Foreign Trade, and Exchange Policy Guidelines for the 2024-2025 fiscal years.

     

    In a circular issued on September 17, the CBN addressed misunderstandings surrounding its guidelines, stating that the document reflects prior policies up to December 31, 2023.

     

    The CBN reiterated that the cybersecurity levy, suspended in May 2024, is no longer applicable, and stressed the importance of accurate reporting regarding its policies. The bank encouraged stakeholders to seek clarification before disseminating information.

     

  • CBN to maintain controversial cybercrime levy amid economic hardship

    CBN to maintain controversial cybercrime levy amid economic hardship

    In what some referred to as the unconventional stance of attempting to tax its way out of economic morass, the Central Bank of Nigeria (CBN) has confirmed it will continue enforcing the contentious cybercrime levy of 0.005 percent.
    According to the apex bank, the shall be payable on all electronic transactions as part of its updated guidelines for the 2024-2025 fiscal year.
    The cybercrime levy, introduced under the Cybercrime (Prohibition, Prevention, etc.) Act of 2015, aims to bolster Nigeria’s cyber security infrastructure.
    The Act mandates a small percentage of fees collected from electronic transactions to be allocated towards improving cybercrime prevention and prosecution measures.
    The levy has been a subject of controversy since its inception, with stakeholders debating its impact on financial transactions and its effectiveness in enhancing cybersecurity.
    Under the new guidelines, which are set to take effect from the beginning of the fiscal year, the CBN has outlined that the 0.005% levy will apply to all electronic transactions conducted within the country.
    This includes online payments, electronic fund transfers, and other digital financial services.
    The CBN’s decision to maintain the levy comes despite criticism from various quarters, including business associations and financial institutions, who argue that the levy increases transaction costs and may be a burden on consumers and businesses.
    Critics also question the transparency and accountability of how the funds collected from the levy are utilized.
    In response to these concerns, the CBN has emphasized that the levy is crucial for strengthening the country’s cyber defence capabilities, which are increasingly necessary for an era of rising digital threats and cybercrime.
    The bank has also committed to improving transparency and reporting on how the levy funds are spent to address concerns about its management.
  • NERC Transfers Regulatory Oversight Of Electricity Market To KSERC

    NERC Transfers Regulatory Oversight Of Electricity Market To KSERC

    The Nigerian Electricity Regulatory Commission, NERC has transferred regulatory oversight of the electricity market in Kogi State from the Commission to the Kogi State Electricity Regulatory Commission (KSERC).
    The commission said the transfer complies with the amended Constitution of the Federal Republic of Nigeria (CFRN) and the Electricity Act EA 2023 (Amended).
    This was contained in a statement issued by the commission on Wednesday morning.
    According to the statement, it can be recalled that with the EA 2023, the commission retains the role as a central regulator with regulatory oversight on the inter-state/international generation, transmission, supply, trading, and system operations.
    It noted that the EA also mandates any state that intends to establish and regulate intrastate electricity markets to deliver a formal notification of its processes and requests NERC to transfer regulatory authority over electricity operations in the state to the State Regulator.
    “Based on this, the Government of Kogi State complied with the conditions precedent in the laws, duly notified NERC, and requested for the transfer of regulatory oversight of the intrastate electricity market in Kogi State,” the statement reads.
    “The transfer Order by NERC has the following provisions:
    “Direct Abuja Electricity Distribution Company (AEDC) to incorporate a subsidiary (AEDC SubCo) to assume responsibilities for intrastate supply and distribution of electricity in Kogi State from AEDC.
    “AEDC shall complete the incorporation of AEDC SubCo within 60 days from 13th September 2024. The subcompany shall apply for and obtain licence for the intrastate supply and distribution of electricity from KSERC, among other directives.
    “All transfers envisaged by this order shall be completed by 12th March 2025.”
  • Wale Edun flags off Commencement Fuel Lifting from Dangote Refinery

    Wale Edun flags off Commencement Fuel Lifting from Dangote Refinery

    History was made this afternoon, Sunday, September 15, 2024 as the the Nigerian National Petroleum Company Ltd (NNPCL) commences lifting of fuel from the Dangote Refinery.

    Flagging off the epoch making exercise, Finance Minister and Coordinating Minister of the Economy, Wale Edun thanked Alhaji Aliko Dangote for the initiative that positions Nigeria for the attainment of energy efficiency.

    Nigeria, a prominent member of the OPEC is currently going through crippling fuel supply emergency running into weeks.