This article outlines significant business stories in Nigeria for the week of March 17-21. Key highlights include the approval of tax reform bills by the House of Representatives, the CBN’s call for stricter measures against currency abuse, PenCom enhancing pension fund operations, NERC’s inauguration of a grid code review panel, a decline in crude oil production, Renaissance Africa’s acquisition of SPDC, and assurances regarding CBN lending limits.
In the upcoming week, several significant business developments are set to unfold in Nigeria. Firstly, the House of Representatives has approved tax reform bills, maintaining the Value Added Tax (VAT) rate at 7.5%. Chairman of the Finance Committee, James Falake, facilitated a motion for clause-by-clause consideration of the tax reports on March 13, following a public hearing that reflected various oppositions to the new tax laws.
Secondly, Olayemi Cardoso, the Governor of the Central Bank of Nigeria (CBN), has raised alarms regarding illicit transactions linked to the Naira and is advocating for stricter measures against such abuses. Addressing a security workshop in Abuja, Cardoso highlighted disturbing practices discovered in major cities and emphasized the necessity of law enforcement to counteract these actions, stating that the erosion of respect for the Naira diminishes its value.
Moreover, the National Pension Commission (PenCom) has empowered pension fund administrators (PFAs) to approve various categories of retirement benefits without prior regulatory clearance. This directive, effective June 1, aims to reduce bureaucratic delays and enhance the efficiency of pension disbursements for retirement savings account holders.
The Nigerian Electricity Regulatory Commission (NERC) has inaugurated a grid code review panel to augment power sector operations. This panel will assess and propose amendments to the existing grid code, which dictates the technical specifications for connection and utilization of the national electricity grid, subsequently requiring approval.
In the oil sector, Nigeria’s crude oil production has plummeted to an average of 1.46 million barrels per day (bpd) in February, according to the Organization of Petroleum Exporting Countries (OPEC). This data, derived from direct communication with Nigerian authorities, is a critical indicator of the country’s oil output trends.
In corporate news, Renaissance Africa Energy Holdings has successfully finalized the acquisition of Shell’s entire stake in the Shell Petroleum Development Company of Nigeria (SPDC), which will be renamed Renaissance Africa Energy Company Limited.
Lastly, Atiku Bagudu, the Minister of Budget and Economic Planning, assured the public that the CBN would adhere to a 5% cap on ways and means lending to the federal government. This measure is intended to enhance fiscal discipline and bolster investor confidence amid discussions concerning the 2025 budget.
These key stories indicate critical movements in Nigeria’s business landscape, encompassing fiscal policies, economic governance, energy sector developments, and corporate acquisitions. The measures introduced by regulatory bodies and government officials are aimed at stabilizing the economy and ensuring efficient operations within various sectors, reflecting a commitment to prudent financial management and growth.
Original Source: www.thecable.ng
