Economy Archives — Page 2 of 7 — Business Bells

Business Bells

Category: Economy

  • Only FIRS Should Collect VAT And Share, Not States, Says Umahi

    Only FIRS Should Collect VAT And Share, Not States, Says Umahi

    Ebonyi State Governor David Umahi says the state is not in support of Rivers, Lagos  and other states in their moves to collect Value Added Tax.

     

    Umahi stated this at a dinner organised in honour of a former Chief of Army Staff and Nigerian Ambassador to the Republic of Benin, Amb. Tukur Buratai, on Monday night.

     

    Umahi said Ebonyi was solidly and would continually throw its weight behind the Federal Inland Revenue Service’s collection of VAT.

     

    Speaking at the dinner held at the Governor’s Lodge, Centenary City, Abakaliki, Umahi reiterated that the state would not support any of the states collecting VAT, adding “Evil will continue to thrive if good people keep quiet.”

     

    He said, “We must make Ebonyi State very exceptional by rising to the challenges. When we shout true federalism, I say, I agree; but it should be administrative restructuring.

     

    “Ebonyi State is not in support of any state collecting VAT. We are in support that FIRS should continue to collect tax and share.”

     

    While urging the country’s leaders to speak up against dissenting voices that were capable of polarising the nation, Umahi stressed he was open to debate with any governor from the stable of the Peoples Democratic Party, who felt he had delivered more democracy dividends to his people than the APC-led administration in Ebonyi State.

     

    “People are taking special interest in Ebonyi State and her Governor, positively and negatively; but it is very important to be in the news than for you to say there are 36 states, you will name 35 and say what is the other state?

     

    “We have aborted it; we are now a state to reckon with and we have no apologies.

     

    “When I say I have no apologies, you can talk everything about me but you can not say we have not delivered and so when people open their mouths in PDP to talk about APC, they should know that I belong to APC and if they like, let PDP offer any of their best Governors to come for debate with me and I will defeat any of them; it’s not just to be talking and talking. You don’t sit on people’s sweat and resources and be talking nonsense.

     

    “We have no regrets taking our people to the centre. We have always played at the centre. We are not playing party politics, we are playing politics that will be an advantage to our people, criticise me; no problems. But we need resources, we need friendship with the centre,” Umahi stated.

  • Nigeria’s Cryptocurrency Market Grows by 1,200% in One Year – Report

    Nigeria’s Cryptocurrency Market Grows by 1,200% in One Year – Report

     

    The cryptocurrency market in Nigeria and other African countries have grown by 1200 per cent in one year.

     

    This was disclosed in a report by Chainalysis on Tuesday.

     

    According to the report, the African region has one of the highest grassroots adoptions in the world, with Kenya, Nigeria, South Africa, and Tanzania ranking in the top 20 of its Global Crypto Adoption Index.

     

    The report added that Africa has the third-fastest growing cryptocurrency economy, and a bigger share of its overall transaction volume made up of retail-sized transfers than any other region at just over 7 per cent, versus the global average of 5.5 per cent.

     

    The report said that Africa was the smallest cryptocurrency economy of any region under review, having received $105.6 billion worth of cryptocurrency between July 2020 and June 2021.

     

    It added that Peer to Peer platform is more prominent in Africa than other regions, and many African cryptocurrency users also rely on P2P platforms for remittances and commercial transactions.

     

    It said, “Cross-region transfers also make up a bigger share of Africa’s cryptocurrency market than any other region at 96 per cent of all transaction volume, versus 78 per cent for all regions combined. Thanks in part to this recent growth, no region uses P2P platforms at a higher rate than African cryptocurrency users, as they account for 1.2 per cent of all African transaction volume and 2.6 per cent of all volume for Bitcoin specifically.

     

     

  • JUST IN: Buhari Seeks National Assembly Approval For Fresh External Loans

    JUST IN: Buhari Seeks National Assembly Approval For Fresh External Loans

     

    President Muhammadu Buhari has requested the National Assembly to approve for it $4,054,476,863 and €710 million.

     

    Buhari is also seeking the nation’s legislature’s approval for grant components of $125 million in the 2018-2020 external rolling borrowing plan.

     

    This is contained in a letter addressed to both chambers of the National Assembly and read on the floor at the resumption of plenary by the presiding officers on Tuesday.

     

    Part of the letter read, “I write on the above subject and submit the attached addendum to the proposed 2018-2020 external rolling borrowing plan for the consideration and concurrent approval of the senate for the same to become effective.

     

    “The distinguished Senate President may recall that I submitted a request on 2018-2020 borrowing plan for the approval of the senate in May 2021.

     

    “However, in view of other emerging needs and to ensure that all critical projects approved by Federal Executive Council as of June 2021 are incorporated, I hereby forward an addendum to the proposed borrowing plan.

     

    “The projects listed in the external borrowing plan are to be financed through sovereign loans from the World Bank, French Development Agency, EXIM Bank and IFAD in the total sum of $4,054,476,863 and €710 million and grant components of $125 million.”

     

    Details later…

     

     

  • FG to Borrow $3bn via Eurobonds in October

    FG to Borrow $3bn via Eurobonds in October

    The Federal Government has disclosed plans to raise $3bn from Eurobond sales in the second week of October.

     

    The Minister of Finance, Budget and National Planning, Zainab Ahmed, who disclosed this during an interview on Bloomberg TV on Thursday said that the $3bn constituted half of the amount needed from external borrowings to fund the 2021 budget deficit.

     

    Ahmed said, “We should be going to the market in the second week of October. The government has approved to raise $6.1bn from overseas. So we are looking at doing half of that in the Eurobond market and the other half from bilateral and multilateral sources. Depending on how the market goes, maybe we can do a little bit more.’’

     

    The minister noted that the Federal Government was targeting single-digit inflation by 2023.

     

    She also said the $3.3bn Special Drawing Rights from the International Monetary Fund had helped to boost the country’s external reserves and will help stabilise the naira.

     

    She said, “We certainly feel we have passed the worst of it. Our projection is that inflation will continue to go down throughout 2021 and 2022. Our target is to get to single-digit inflation by 2023.”

     

    “The central bank is doing everything within limited constraints to stabilise the currency. The SDR of $3.35bn just received from the International Monetary Fund have helped shore up the reserves and will help stabilise the currency.

     

    “Also, the withdrawal by the central bank of funding to unauthorised dealers will increase supply to the formal market to meet demand.”

     

    On the country’s debt, she said, ‘’The government is now working to reduce its debt-service burden by increasing revenue, restructuring its debt portfolio through the conversion of expensive short-term notes into longer tenors, and also reducing its overall borrowing.

     

    “Our target is to triple revenues from about eight per cent of the Gross Domestic Product to 15 per cent, and also grow the economy by seven per cent.”

     

  • Bitcoin, Other Cryptocurrencies Pose Huge Danger to Global Economy -EFCC Boss

    Bitcoin, Other Cryptocurrencies Pose Huge Danger to Global Economy -EFCC Boss

     

    The Chairman, Economic and Financial Crimes Commission, EFCC, Abdulrasheed Bawa, has said Bitcoin and other cryptocurrencies portend huge risks to the world economy.

     

    According to him, many criminals now play significant roles in crypto-currency markets, adding that virtual currencies had become their preferred medium of exchange.

     

    The EFCC chairman stated this  on Monday at the 38th Cambridge International Symposium on Economic Crime, themed, ‘Economic Crime-Who pays and who should pay?’

     

    The event was organised by the Centre for International Documentation on Organised and Economic Crime, Jesus College, University of Cambridge, United Kingdom, a statement by the EFCC spokesman, Wilson Uwujaren, stated.

     

    Bawa was quoted as saying, “The developments in new technologies and the growth of cryptocurrencies portray a far greater danger to the world economy than ever before with many criminals playing significant roles in crypto-currency markets.

     

    “Criminals now elect to transact or receive illegal monies (such as ransom money) for cyber-attacks in cryptocurrencies with Bitcoins and Ethereum as the most commonly used mediums for these exchanges.”

     

    He lamented that the sophistication and complexity that defines the dynamics of economic crime in the 21st Century continues to evolve, spurred by technological advancement in the global economy that has become borderless and transnational.

     

    This he said had “inevitably led to the prioritisation of law enforcement action on crimes that drive Illicit Financial Flows across the globe”

     

     

     

  • Naira Sinks to N530 Against Dollar, As Pound Hits N720

    Naira Sinks to N530 Against Dollar, As Pound Hits N720

    The naira plunged to a fresh record low against the dollar, the British pound sterling and euro on Thursday amid the lingering scarcity of foreign exchange in Nigeria.

     

    The value of the naira fell against the US currency on at both the parallel market and the Investors’ and Exporters’ foreign exchange window.

     

    The local currency, which stood at 526/$1 on Tuesday, fell to 530/$1 at the parallel market on Thursday from 528/$1 on Wednesday.

     

    The naira dipped to 720 against the pound at the parallel market from 717/£1 on Wednesday, while the euro rose to N620 from N616 on Wednesday.

     

    At the I&E window, the naira weakened further to 411.67/$1 on Thursday from 411.50/$1 on Wednesday, according to FMDQ Group.

     

    No less than 55 per cent to 60 per cent of Nigerian forex transactions are traded at this window, which is used by the CBN and most exporters and investors, according to Financial Derivatives Company Limited.

     

    “It serves as not only a source of price discovery but also a barometer for measuring potential and actual CBN intervention in the market. Some of the exchange rate determinants are balance of payments, capital inflows and trade balance,” the FDC said.

     

    The PUNCH had reported on Tuesday that the naira extended its decline on Monday, sliding to an all-time low of 527 against the dollar at the parallel market.

     

    The naira had strengthened to 506/$1 on August 4 after plunging to 525/$1 at the parallel market on July 28, a day after the Central Bank of Nigeria stopped foreign exchange sales to Bureaux de Change.

     

    The CBN Governor, Mr Godwin Emefiele, had on July 27, at the end of the Monetary Policy Committee meeting, announced the stoppage of forex sale to the BDCs, saying they had turned themselves into “agents that facilitate graft and corrupt activities of people who seek illicit fund flow and money laundering in Nigeria.”

     

    In a related development, the country’s external reserves have risen above $34bn for the first time in more than two and a half months, according to the CBN.

     

    The reserves, which had been wobbling in recent weeks, jumped from $33.40bn at the end of July to $34.02bn on August 31, the highest since June 9.

     

    The CBN data showed that the reserves fell to a record low of $33.09bn on July 12 from $34bn on June 10.

     

  • Stanbic IBTC Bank Nigeria PMI: Softer Inflows of New Work Prompt Moderation in Private Sector Activity Growth in August

    Stanbic IBTC Bank Nigeria PMI: Softer Inflows of New Work Prompt Moderation in Private Sector Activity Growth in August

    Business conditions in Nigeria’s private sector improved modestly midway through the third quarter, but the rate of growth slowed to a six-month low.

     

    Softer upticks in output, new orders and employment contrasted with quicker expansions in held inventories as firms seek to take advantage of faster lead times, and protect against any future supply shocks.

     

    However, a loss of momentum in demand resulted in a dip in optimism. Sentiment was the third-weakest in the series history.

     

     Meanwhile, purchase prices continued to rise sharply, although the rate of inflation softened from that seen in July.

     

    The headline figure derived from the survey is the Purchasing Managers’ Index™ (PMI®).

     

    Readings above 50.0 signal an improvement in business conditions on the previous month, while readings below 50.0 show a deterioration.

     

     At 52.2 in August, down from 55.4 in July, the headline PMI registered a rate of growth that was the softest since February.

     

    New orders rose for the fourteenth month in succession during August which panelists linked to greater domestic demand.

     

    The rate of expansion eased notably from that seen in the previous survey period, however, with some firms mentioning that higher prices led to weaker sales growth.

     

    Consequently, firms raised their output levels at a softer pace, and one which was subdued in the context of historical data. Those firms increasing output mentioned higher customer numbers. Of the four monitored subsectors, two recorded growth.

     

     Manufacturers registered the steepest uptick, followed by wholesale & retail. Meanwhile, services saw a marginal decline, while agriculture recorded a sharp contraction.

     

    To cater for higher output levels, firms raised their headcounts marginally during the month. A further increase in staffing levels underpinned a solid reduction in outstanding business. In fact, backlogs fell at the fourth quickest rate in the series history.

     

    Quieter road conditions and prompt payments led to shorter delivery times in August. Quicker lead times allowed firms to add to their inventory holdings. Stocks of purchases rose at a sharp and accelerated pace which firms linked to efforts to protect against any future supply shocks.

     

    Turning to prices, higher raw material, commodity, and staff costs as well as unfavourable exchange rate movements led to a marked uptick in input prices. Firms looked to raise selling prices in a bid to protect profit margins.

     

    Finally, sentiment moderated to the third-weakest in the series. Panel comments suggested the longer-term economic implications of COVID-19 weighed on optimism.

     

  • FG Distributes Debit Cards For Payment of Stipends To Vulnerable People in Osun

    FG Distributes Debit Cards For Payment of Stipends To Vulnerable People in Osun

     

    The Federal Government, through the Ministry of Humanitarian Affairs, Disaster Management and Social Development, has embarked on the disbursement of monthly stipends, using debit cards, to 15,562 poor and vulnerable persons in Osun.

     

    According to the News Agency of Nigeria, at the Boripe Local Government Secretariat, on Tuesday, 187 vulnerable persons were issued Debit Cards for the payment of their monthly stipends.

     

    Osun Coordinator of Household Uplifting Programme-Conditional Cash Transfer, Iyabo Ayofe, explained that the FG has now digitalised the payment system.

     

    Ayofe told the beneficiaries that their stipends would be paid/loaded on the debit cards henceforth, stating that they can always withdraw their money on any Point of Sales machine or Automated Teller Machines at any time.

     

    She said that the debit card has now erased the “cash by hand” mode of payment, and that anytime the beneficiaries are notified of payment, they can go to the ATM or use the POS closer to them to collect their money.

     

    “The cards being issued to beneficiaries today are preloaded with N30,000 for the payment of the backlog of 2020 stipends.

     

    “About 4,000 of the beneficiaries, however, would have more than N30,000 loaded on their cards because these categories of beneficiaries have additional health expenses and dependants like pregnant women, breastfeeding mothers and those with children from zero to five years.

     

    “This digitalisation mode of payment makes payment easy, eliminates attack on beneficiaries by criminals and makes it easier for beneficiaries to withdraw their money wherever they are, at any point in time,” she said.

     

    She, however, said the distribution of the debit cards to beneficiaries would only cover eight local government areas (as the pilot phase), but would be extended to the remaining 22 local government areas and area offices subsequently.

    (NAN)

  • House Committee on Finance Commends FRC For Blocking Revenue Leakages

    House Committee on Finance Commends FRC For Blocking Revenue Leakages

     

    The Chairman, House Committee on Finance, Rt. Hon. Abiodun Faleke has given kudos to Fiscal Responsibility Commission, FRC for providing the data which helped the Committee to determine the unremitted operating surplus of Government Owned Enterprises (GOEs) during the first phase of interactive session on 2022-2024 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP).

     

    He noted that Nigeria has no reason to borrow in order to finance deficit budget if only we do the right thing by blocking revenue leakages in the GOEs expenditure which over the years have made their management constituted themselves into “government within a government” because of their financial recklessness.

     

     Faleke assured Nigerians that his Committee is determined to sanction any government agency that refuses to present the MTEF and FSP from 2022-2024 as well as operating surplus remittance form 2018 till date saying that such agency would not be considered in the appropriation bill of 2022.

     

    He frowned at flagrant disregard for extant laws that guide public finance pointing out that most of the GOEs laws and regulations are self-serving and against the national interest of Nigeria while promising to amend those laws to be in conformity with accountability and transparency.

     

    The ranking lawmaker opined that Nigeria urgently needs meticulous budgeting process that is open and transparent which would ensure adequate funding of Federal government projects that would impact positively on the lives of Nigerians.

     

    The Committee Chairman pointed out that his Committee with the partnership with Fiscal Responsibility Commission may have save billions of naira for the Federal government by ensuring that the GOEs remit operating surplus into the Consolidated Revenue Fund account during the interactive session.

     

    The Committee will resume its final interactive session at the House of Representatives on September 17, 2021.

     

  • Just In: CBN Pegs Transfer Limits To N50k As E-Naira Takes Off October 1

    Just In: CBN Pegs Transfer Limits To N50k As E-Naira Takes Off October 1

     

    The Central Bank of Nigeria (CBN) has set an initial transaction limit of N50,000 for non- account preparatory to the take-off of its digital currency set for October 1.

     

    In a guide released by the apex bank to Deposit money banks, the CBN stipulated a transaction limit for customers, non-interest-bearing Central Bank Digital Currency (CBDC) status, and an account value limit.

     

    There are three levels to the CBN “Speed wallet” issued primarily to meet the October 1, 2021, deadline.

     

    As a means to transact value, the wallet doesn’t compete with existing banks but is awaiting the creation of wallets by banks and other innovators.

     

    Tier one

     

    With the first tier, Speed Wallet can be used by anyone who does not have a bank account. However, users will have to submit a passport photo, a name, birth date and place, a phone number, and their address.

     

    A N50,000 limit is in place for “Send & Receive”. The minimum requirement is the individual’s National Identity Number (NIN), which will be validated. A cumulative balance of N300,000 is fixed each day.

     

    Tier Two

     

    An account with an existing bank is required for users of Tier Two wallets.

     

    The user is limited to sending and receiving N200,000 per day with a Cumulative Balance of N500,000 daily. A Bank Verification Number (BVN) is the minimum requirement for this level.

     

    Tier Three

     

    Tier three allows daily transactions of N1 million, with daily cumulative balances of N5 million. In order to qualify, you need to have at least a BVN.

     

    Those who possess this merchant level can send or receive a million naira daily. A merchant can move as much money as they want into their bank accounts.

     

    However, In context, the Central Bank further disclosed, neither merchants nor customers using the wallet will be charged a fee.

     

    The report stated that the e-Naira is a legal tender for the entire country. It also mentioned that it will have non-interest-bearing CBDC status, a transaction limit for customers, and a value-based transaction limit.

     

    The CBN also outlined that Nigerian banks will be allowed to invite all their customers to register for the e-Naira.

     

    “Besides pre-generated codes, the banks can send invitation codes for onboarding to a specific list of selected customers. Onboarding will be done for customers who have a code assigned by their banks. The banks have already validated and verified these customers.”

     

    It further disclosed that the wallet provided by its institution was merely a stop-gap measure for meeting the deadline, given that banks and other licensed operators may provide their own wallets since it didn’t intend to compete against the banks.

     

    “As a National Critical Infrastructure, the e-naira system will be subject to comprehensive security checks, all data and personally identifiable information (PII) will be kept off the ledger and will not be stored on the ledger,” the Apex bank added.

     

    In order to catalyse the adoption of e-Naira, banks will facilitate onboarding and provide world-class customer service.