My Blog

Category: Economy

  • CBN directs payment service providers to begin PoS transaction tracking

    CBN directs payment service providers to begin PoS transaction tracking

    The Central Bank of Nigeria has directed all Payment Service Providers to route all transactions from PoS terminals at merchant and agent locations through an approved CBN Payment Terminal Service Aggregator.

    The Apex Bank explains that this directive is without prejudice to whether such transaction was physical or electronic.
    It also issued a 30-day deadline requiring service providers to comply with enhanced routing guidelines for Point of Sale transactions.
    This move aims to strengthen the monitoring of electronic transactions across Nigeria and decentralise PoS transaction routing, addressing concerns about the centralisation of such transactions under a single entity.
    The apex bank, in a circular signed by Oladimeji Yisa Taiwo on behalf of the CBN’s Payments System Management Department on Thursday, stated that all PoS transactions from merchant and agent locations must now be routed through any CBN-licensed PTSA.
    The circular read, “To achieve the objective of tracking electronic transactions in Nigeria, the Central Bank of Nigeria, in August 2011, granted a Payment Terminal Service Aggregator license to Nigeria Interbank Settlement System Plc.
    In furtherance of the above, the CBN hereby directs acquirers to route all transactions from PoS terminals at merchant and agent locations, whether on physical or electronic PoS terminals, through any CBN-licensed Payment Terminal Service Aggregator.”
    “PTSAs are required to send PoS transactions to only processors certified by the relevant Payment Scheme, nominated by the Acquirer, and licensed by the CBN.”
    This development follows the expiration of the 5th September deadline for PoS agents to formally register their businesses with the Corporate Affairs Commission.
    Although the directive was challenged in court, the CAC recently announced that it has commenced taking drastic actions, including shutting down PoS businesses that failed to register.
    The directive on PoS business registration comes against the backdrop of frequent fraud incidents involving PoS terminals and the Central Bank of Nigeria’s plans to prevent trading in cryptocurrency or virtual currency.
    According to a report by Nigeria Inter-Bank Settlement System Plc, PoS terminals accounted for 26.37% of fraud incidents in 2023
  • Nigeria suspends import duties on selected food items

    Nigeria suspends import duties on selected food items

    The Nigeria Customs Service Board has reiterated that the temporary implementation of a zero-duty levy on selected food imports is designed to alleviate the current food shortage and reduce soaring food prices across the country.

     

    This was disclosed in a post is the Federal Ministry of Finance official X handle on Wednesday, September 11.

     

    The post reads: “The Nigeria Customs Service Board addressed the press on a key decision concerning the temporary implementation of a zero-duty levy on selected food imports.

     

    “The measure is designed to alleviate the current food shortage and reduce soaring food prices, which have been a major contributor to inflation across the country.

     

    “‘We discussed how to collaborate effectively to make food more affordable and accessible in the short term’, the Minister explained. He emphasised that while this initiative offers immediate relief, President Tinubu remains focused on long-term solutions, particularly boosting domestic food production. HM Edun highlighted ongoing efforts to increase the availability of essential farming inputs, such as fertilizer and seeds, particularly for small-scale farmers, which is expected to enhance local food production and ensure food security in the long run.

     

    “In addition to the zero-duty measure, the Minister commended the Nigeria Customs Service Board for its regular meetings to review the Service’s financial performance and operational activities. He praised the Comptroller General and the leadership of the Service for upholding the core values of Transparency, Integrity, and Merit, noting these values are essential for effective governance and the efficient operation of the Service.

     

    “The Minister concluded by reaffirming the President Tinubu-led administration’s commitment to tackling both short-term and long-term food security challenges, while continuing to work closely with the Nigeria Customs Service and other stakeholders to ensure smooth implementation of key policies.”

     

  • Flood cuts off 5 villages in Kaduna LG

    A flood disaster has severed the road connecting Saminaka town to five agrarian communities, including Marjire, in Lere Local Government Area of Kaduna State.

     

    The collapse of a bridge on the outskirts of Saminaka has isolated these communities from the local government headquarters.

     

    Governor Uba Sani has assured that his administration will take immediate action to address the plight of the affected communities. Speaking through his Chief of Staff, Malam Liman Sani Kila, who led the Flood Impact Assessment Committee to Lere LGA, the Governor emphasized his commitment to developing the rural economy.

     

    Malam Sani Kila promised that, in addition to reconstructing the damaged road and bridge, relief materials would be provided to the affected communities.

     

    He stated, “We have seen the extent of the damage and understand the urgency of the situation. Five communities have been cut off, and their commercial activities severely impacted. We assure that Governor Uba Sani is committed to addressing the plights of the citizens, and our committee will brief him on this development today.”

     

    Lere Local Government Chairman, Hon. Mathew Bulus Gambo, expressed gratitude to Governor Uba Sani for setting up a high-powered committee to address the issue. He noted that the collapse of the bridge has crippled economic activities in the affected areas, emphasizing the importance of prompt action.

     

    The committee also visited other flood-affected locations within the local government, including Wawan Rafi Village, where another bridge collapsed, as well as Nasarawa and Ungwan Shuru areas of Saminaka township.

     

  • FG Responds to Maiduguri Floods

    FG Responds to Maiduguri Floods

    The Minister of Environment, Mallam Balarabe Abbas Lawal, has addressed the severe flooding that has impacted various states across Nigeria.

     

    The floods, attributed to unusual rainfall patterns and ongoing climate change, have displaced over 1 million people and caused extensive property damage.

     

    The National Emergency Management Agency (NEMA) reports that the flooding has led to substantial humanitarian challenges, with significant economic losses.

     

    In response, the Federal Ministry of Environment had previously issued flood awareness directives to state governments and relevant agencies, including early warnings for high-risk areas.

     

    The Alau Dam flooding, in particular, has devastated communities in Borno State, prompting urgent collaborative recovery efforts. The Ministry continues to work with state authorities and international partners to address the crisis and support affected individuals.

     

    The public is advised to relocate from flood-prone areas, follow evacuation orders, and stay informed through official channels. The Ministry remains committed to mitigating the impacts of flooding and enhancing community resilience.

     

    For further updates, residents are encouraged to adhere to safety guidelines and report any incidents of flooding.

     

     

  • Money Laundering: EFCC to investigate Bank Executives

    Money Laundering: EFCC to investigate Bank Executives

    The Economic and Financial Crimes Commission (EFCC) has said bank executives are complicit in aiding money laundering in the country, adding that it would commence prosecution soon.
    Speaking at the 17th annual conference of the Chartered Institute Bankers of Nigeria, the Chairman of the EFCC, Ola Olukoyede said the commission will soon start prosecution of bank executives involved in corruption.
    According to him, findings revealed complicity in money laundering, illegal forex sales and trading among bank officials.
    While calling on the CIBN to step up its regulatory functions to guard against fraud, the EFCC boss said major financial fraud were conducted through the nation’s banking system.
    The commission recently urged the National Assembly (NASS) to enact a law which supports the whistle-blower policy of the government.
    Olukayode who made the call at the Nigerian Bar Association (NBA) conference in Lagos, noted that once the law is enacted, it will make it mandatory for law enforcement agencies to protect the whistle-blowers.
    The EFCC chairman also called on lawyers across the country to always observe due diligence in their practices.
    This, according to him, is necessary for them to know the background of their clients so as not to run foul of the Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) regulations.
    He said, “As lawyers, we are supposed to hold a position of trust in our professional conduct. While we try to comply with international laws and regulations, we should also do what is right for ourselves to protect the sanctity of our profession, which is very key.
    “Don’t try to protect suspected criminals, people who must have committed financial crimes. So, if you know who we are looking for, you must bring that person to the open and we will do our part.
    “Doing the right thing doesn’t necessarily come from the way of international conventions. If you do the right things, they will automatically take you out of the grey list.
    “It is expedient on you to, at least, know who your client is. You are expected to be paid from a legitimate source.
    “If you are a victim of crimes, you will understand what I am saying. As lawyers, you must not, in any way, derogate or demean your professional commitment to your clients.
    “Even a part of the money laundering Act that we have evaluated doesn’t stop me from enforcing the regulations of the EFCC Act and other financial laws in Nigeria.”
  • FG announces N100M AI fund for Nigerian startups

    FG announces N100M AI fund for Nigerian startups

    The Federal Government of Nigeria, through the National Centre for Artificial Intelligence and Robotics, NCAIR, has announced the launch of a N100 million AI Fund in collaboration with Google.
    This initiative aims to support Nigerian startups that are leveraging Artificial Intelligence, AI to develop innovative solutions across various sectors.
    The fund will provide up to N10 million in funding to selected startups, along with access to Google’s AI tools, mentorship, and global network.
    The Minister of Communications, Innovation and Digital Economy, Dr. Bosun Tijani, stated, “The AI Fund is a significant step in nurturing homegrown innovation and driving the growth of Nigeria’s digital economy. By supporting our startups, we are investing in the future of our nation.”
    The AI Fund is open to Nigerian-based startups that are focused on AI-driven technology solutions with the potential for significant impact. Applications are now being accepted, and the recipients will be announced in October.
    National Coordinator of NCAIR, Dr. Bunmi Ajala, highlighted the collaborative effort: “Our partnership with Google is a reflection of our shared vision for Nigeria’s technological advancement. The AI Fund is designed to empower our entrepreneurs with the resources they need to create impactful AI solutions. We are excited to see the transformative innovations that will emerge from this program.”
    Also, the West Africa Director, Google, Olumide Balogun, reiterated Google’s commitment: “Google’s support for the AI Fund is part of our broader mission to enhance digital capabilities across Africa. We are committed to providing Nigerian startups with the tools, mentorship, and resources they need to innovate and succeed on a global stage.”
    The AI Fund seeks applications from Nigerian startups that meet the following criteria: startups with their headquarters in Nigeria, it must have at least one Nigerian founder, focus on developing scalable AI-driven solutions and possess a live product demonstrating early traction and market fit.
    Interested startups can apply through the link as a rigorous selection process will identify promising startups with not only innovative AI solutions but also the potential for significant impact and scalability.
    Successful applicants will be announced in October 2024, with the programme officially commencing shortly thereafter.
  • VAT remains 7.5%, not increased – Wale Edun

    VAT remains 7.5%, not increased – Wale Edun

    Finance and Coordinating Minister of the Economy, Wale Edun, has affirms that the rate of VAT stays at 7.5% not 10% as speculated in some media reportage.

     

    Edun, in a statement he personally signed on Monday, September 9, emphatically affirmed that the VAT rate as contained in relevant tax laws and chargeable on goods and services remains 7.5%.

     

    The statement reads: “The current VAT rate is 7.5% and this is what the government is charging on a spectrum of goods and services to which the tax is applicable. Therefore, neither the Federal Government nor any of its agencies will act contrary to what our laws stipulate.

     

    “The tax system stands on a tripod, namely tax policy, tax laws and tax administration. All three must combine well to give us a sound system that gives vitality to the fiscal position of the government.

     

    “Our focus as a government is to use fiscal policy in a manner that promotes and enhances strong and sustainable economic growth reduces poverty as well as makes businesses flourish.

     

    “The imputation in some media reports on the issue of VAT and the opinion articles that have sprouted from them seem to wrongly convey the impression that the government is out to make life difficult for Nigerians. That is not correct. If anything, the Federal Government has, through its policies, demonstrated that it is committed to creating a congenial environment for businesses to thrive.

     

    “In fact, it is on record that the Federal Government, as part of efforts to bring relief to Nigerians and businesses, recently ordered the stoppage of import duties, tariffs and taxes on rice, wheat, beans and other food items.

     

    “For emphasis, as of today, VAT remains 7.5% and that is what will be charged on all the goods and services that are VAT-able.”

     

     

  • Still on the Dangote Refinery ‘Clearer Fuel’

    Still on the Dangote Refinery ‘Clearer Fuel’

    President of Dangote Group, Alhaji Aliko Dangote, has shed light on why the first batch of Premium Motor Spirit (PMS), commonly known as petrol, produced at his refinery appears noticeably clearer than the petrol currently available in the market.
    During a broadcast from his refinery in the Ibeju-Lekki area of Lagos State, Dangote explained that the clarity of this petrol is indicative of its higher environmental standards.
    He emphasized that the cleaner petrol is designed to be more eco-friendly, potentially reducing health risks associated with the pollutants found in traditional petroleum products.
    Dangote also highlighted the benefits of this refined petrol in protecting vehicle engines from the damage typically caused by the lower-quality petrol available on the market.
    “This is the sample of the petrol. You see it as a different colour but that is the real deal. You are now going to have a good and real product,” Dangote stated.
    Speaking about the diesel produced at the refinery, Dangote added, “I am sure Nigerians have not seen this colour of diesel before.
    “This is called Euro-5 diesel. It contains less than 10 parts per million (PPM) of sulfur. This will help vehicles, engines, and generators last longer.”
    He further emphasized the importance of this development for public health and environmental safety, stating, “The health of the people and the environment will not be compromised. This is the real deal.”
  • FG, Chinese firm sign MoU on electric bicycles, renewable energy

    FG, Chinese firm sign MoU on electric bicycles, renewable energy

    Currently battling with the menace of commercial motorcycles and tri-cycles clogging up urban traffic, the Federal Government on Tuesday signed a Memorandum of Understanding with a Chinese Company for the assembly of electric tricycles.
    The company that goes by the name of Mutual Commitment Company Limited shall also establish a renewable energy training centre.
    The MoU signing ceremony, facilitated by the Rural Electrification Agency, was attended by the Minister of Power, Adebayo Adelabu, and the Managing Director of REA, Mr Abba Aliyu.
    In a statement on Tuesday by Adelabu’s spokesman, Bolaji Tunji, it was disclosed that the event took place in Beijing on the eve of the opening of the African-China Co-operation Summit.
    Adelabu was quoted as saying that the MoU event was important and will go down as a memorable day for Nigeria.
    He congratulated the REA and the National Power Training Institute of Nigeria on the event, saying it will aid in achieving Nigeria’s vision for the renewable energy sub-sector of the entire electricity sector value chain.
    Adelabu added, “I know Nigeria and China have a lot of things in common, one of which is the fact that Nigeria and China are both high population countries and with a country with high population, you have so much pressure.
    “The first pressure is that of energy access, and the second is job creation. So when you take steps to achieve both, it is a thing of joy. I am particularly happy that this is happening during the tenure of President Bola Tinubu, as it is in line with achieving the Renewed Hope Agenda of the administration for the country.”
    The minister reiterated the fact that Tinubu has prioritised the power sector as the driver for all other critical sectors of the economy and, he is giving the sector all the support to ensure it delivers his electoral promises.
    He highlighted that energy access and expansion is the government’s major priority because nothing can be achieved without a strong, stable, functional, and reliable electricity sector.
    “We have relied so much on centralisation of our power sector for so long that it is not taking us anywhere,” he stated.
    Adelabu revealed that almost 40 per cent of Nigeria’s population lacks access to energy with its attendant consequences.
    “So, moving away from centralisation, we have decided to adopt the distributed power model to ensure that every Nigerian has access to energy. A lot of our population resides in rural areas, and a lot of our educational and tertiary health institutions are isolated, and they are still facing epileptic power supply.
    “We have also found out that the adoption of the distributed energy model will expand the energy net for our rural dwellers, the rural businesses, our universities and tertiary health institutions; which is why the focus is on renewable energy which we believe is scalable and can exist in isolation of national grid that is currently facing lots of pressure,” he explained.
    According to him, as Nigeria continues to expand energy access, the country also wants to achieve a transition to cleaner sources of energy that are sustainable and environment-friendly.
    He said the MoU would achieve the vision for the renewable energy sub-segment of the power sector.
    “We will be able to produce jobs for our large youthful population that is growing every day. Our polytechnics, technical colleges, and universities are turning up graduates every year without assurance of job placement. This will go a long way to make it happen. At the same time, we will be able to achieve our energy access expansion,” he added.
    He noted that northern African countries such as Tunisia, Morocco, Egypt, and Algeria have achieved 100 per cent electrification of their countries and in South Africa, about 95 per cent.
    “Unfortunately, Nigeria is still at 62 per cent, though there are still some African countries with worse levels of achievements, but this is not where we belong. If these countries can achieve this, why is it not possible for Nigeria with the level of our natural endowment? We have the gas, and the dams are also there for the hydropower electric. The wind, both desert and coastal, is there while sunshine is also effective. So, what are we waiting for?
    “A step like today’s will enable us to move up on our level of electrification. This will consequently lead to growth in our Gross Domestic Product because of the economic activities that would be created. This will also save us foreign exchange expenditure on importation and create jobs for our people if we assemble these things locally,” he posited.
  • Dangote Refinery: End of fuel queues

    Dangote Refinery: End of fuel queues

    For the first time in 28 years, Dangote Refining and Petrochemical Company commences the production of fuel in Nigeria.

    “This marks the end of fuel scarcity and fuel queues in Nigeria” Alhaji Aliko Dangote, the President of Dangote Refining and Petrochemical Company said.

    “No more foreign exchange woes to import fuel,” he said.

    Seeing, it is claimed in Nigeria, is believing and Alhaji Aliko Dangote has demonstrated that axiom as he lifted a sample of petrol produced in his factory today, at Ibeju Lekky, Lagos.

    “I hope the attainment of this milestone by the refinery will change the dynamics not only in Nigeria but the entire sub-saharan Africa” an elated Dangote said.

    He drew attention to the unique crystal clear colour of the product and said that it represents “the highest quality which is friendly with car engines and meets the best international standards.”

    He appreciated President Tinubu for the support of his government which has enabled the commencement of the refining activities in the factory.

    With this major breakthrough the Dangote Refinery has broken the jinx about petrol refining in Nigeria which happened for the last time 28 years ago.

    Dangote also posited that with the commencement of this operation, the refinery had assisted Nigeria to kill several birds with one stone.

    Linking it to the leadership of the country, he said the refinery now has an opportunity to produce energy for growth and productivity.

    Hopes that the move will stabilise the Naira, reduce inflation and improve the quality of life.

    He asserted also that there will be no more import of polypropylene.

    Also appreciated the government for the opportunity to purchase crude in Naira.