This week features key business stories such as the approval of tax reform bills maintaining VAT at 7.5%, concerns over naira abuse, and PenCom’s directive empowering PFAs. Additionally, NERC has formed a panel for grid code review, and Nigeria’s oil production has decreased. Lastly, Renaissance has acquired Shell’s assets and the CBN commits to a 5% lending limit.
This week, between March 17 and March 21, several significant business stories warrant attention. The House of Representatives has adopted the committee on finance’s report concerning tax reform bills, maintaining the Value Added Tax (VAT) at 7.5%. This decision followed careful consideration and a public hearing amidst opposition to the proposed laws.
Olayemi Cardoso, Governor of the Central Bank of Nigeria (CBN), expressed concerns regarding illicit transactions that abuse the naira. During a security workshop in Abuja, he mentioned various troubling incidents of naira commoditization found in commercial centers across the country. Cardoso emphasized the need for stringent measures against such disrespect, which undermines the national currency’s value and integrity.
The National Pension Commission (PenCom) has empowered pension fund administrators (PFAs) to autonomously approve and process certain retirement benefits starting June 1. This directive aims to eliminate bureaucratic delays and facilitate faster pension disbursement under the contributory pension scheme.
The Nigerian Electricity Regulatory Commission (NERC) has established a Grid Code Review Panel to enhance power sector efficiency. This panel will assess potential amendments to the grid code, which defines the technical requirements for national electricity grid connections, ensuring a systematic review process involving stakeholders.
According to the Organization of Petroleum Exporting Countries (OPEC), Nigeria’s crude oil production fell to an average of 1.46 million barrels per day (bpd) in February. This data was verified through direct communication with Nigerian authorities, highlighting the ongoing fluctuations in oil production.
Renaissance Africa Energy Holdings has successfully completed the acquisition of Shell’s entire equity in the Shell Petroleum Development Company of Nigeria (SPDC), with plans to rename the company as ‘Renaissance Africa Energy Company Limited.’ This acquisition marks a significant shift in the Nigerian energy landscape.
Finally, Atiku Bagudu, Nigeria’s Minister of Budget and Economic Planning, asserted that the CBN will adhere to a 5 percent limit on ways-and-means financing for the federal government. This limitation is expected to bolster investor confidence in Nigeria’s fiscal management for the upcoming 2024-2025 budget period.
This week’s critical business updates include the stabilization of VAT rates after tax reform discussions, increasing regulations to combat currency abuse, and significant changes in pension fund operations. Furthermore, the establishment of a grid regulatory panel and variances in oil production underscore the ongoing transformations within Nigeria’s economic framework. These developments, along with the completed acquisition by Renaissance Africa Energy, highlight dynamic shifts and the government’s commitment to fiscal discipline.
Original Source: www.thecable.ng
