Key stories to follow this week include the approval of tax reforms by the House of Representatives, the Central Bank’s concerns over naira abuse, empowered pension fund administrators, and a drop in crude oil production. Additionally, Renaissance has completed an acquisition, and the CBN will adhere to lending limits to the government.
The week of March 17 to March 21 features several significant business stories to monitor. Firstly, the House of Representatives approved tax reform bills, maintaining the Value Added Tax (VAT) at 7.5%. This decision followed a thorough public hearing where various stakeholders expressed concerns about the proposed tax laws.
Secondly, the Central Bank of Nigeria (CBN) has raised alarms regarding the misuse of the naira in illicit transactions. CBN Governor Olayemi Cardoso highlighted these abuses during a security workshop, asserting that such actions diminish the currency’s value and jeopardize Nigeria’s national identity. He called for stricter measures to combat this issue, emphasizing the role of law enforcement.
Additionally, the National Pension Commission (PenCom) has empowered pension fund administrators (PFAs) to approve retirement benefits independently, effective June 1. This development aims to streamline the disbursement process under Nigeria’s contributory pension scheme, eliminating the need for prior regulatory clearance.
Furthermore, the Nigerian Electricity Regulatory Commission (NERC) has established a grid code review panel to enhance power sector efficiency. This panel will evaluate amendments to the grid code, a critical framework that governs technical requirements for electricity connections.
In the oil sector, OPEC reported a drop in Nigeria’s crude oil production to 1.46 million barrels per day (bpd) in February, reflecting direct communications with Nigerian authorities. This decline could impact the country’s revenue and economic stability.
Moreover, Renaissance Africa Energy Holdings has finalized its acquisition of Shell’s complete stake in the Shell Petroleum Development Company in Nigeria. The company will rebrand SPDC as ‘Renaissance Africa Energy Company Limited’ going forward.
Lastly, Budget and Economic Planning Minister Atiku Bagudu affirmed that the CBN will adhere to a 5% limit on its lending to the federal government through ‘ways and means’ financing. This guideline aims to foster greater investor confidence in Nigeria’s debt management policies.
In summary, this week’s crucial business stories highlight significant developments in Nigeria’s economic landscape, including tax reforms, regulatory changes in pensions, concerns over currency misuse, and shifts in the oil sector. Each of these factors plays a pivotal role in shaping the country’s financial environment and investor confidence.
Original Source: www.thecable.ng
