Key business stories this week include the approval of tax reform bills by the House of Representatives, CBN’s call for measures against naira abuse, new directives from PenCom on pension benefits, NERC’s grid code review panel, a drop in Nigeria’s crude oil production, Renaissance’s acquisition of SPDC, and adherence to a 5% lending limit by the CBN.
This week, business activities in Nigeria will focus on seven significant stories that warrant attention. The House of Representatives has approved the finance committee’s report on tax reform bills, maintaining the Value Added Tax (VAT) rate at 7.5% after a detailed plenary discussion on March 13. This decision followed a public hearing on the proposed tax laws, despite pushback from various stakeholders.
Furthermore, Olayemi Cardoso, Governor of the Central Bank of Nigeria (CBN), emphasized the need for stricter regulations against the abuse of the naira, following revelations of illicit transactions across major commercial centers. During a security workshop, he noted the loss of respect for the national currency and called for stricter law enforcement measures to combat these issues effectively.
The National Pension Commission (PenCom) has empowered pension fund administrators (PFAs) with the authority to approve retirement benefits without waiting for prior regulatory clearance, effective June 1. This reform aims to streamline the pension disbursement process and reduce bureaucratic delays affecting retirees under Nigeria’s contributory pension scheme.
In the electricity sector, the Nigerian Electricity Regulatory Commission (NERC) has inaugurated a grid code review panel dedicated to enhancing operational efficiency. This panel will assess proposed amendments to the grid code, which dictates the technical requirements for connecting to the national electricity grid, prior to stakeholder review.
On the crude oil production front, OPEC reported a decline in Nigeria’s average daily output to 1.46 million barrels per day in February. The data indicates a concerning trend, as the country’s production figures are sourced from direct communication with relevant authorities.
Additionally, Renaissance Africa Energy Holdings has finalized its acquisition of Shell’s entire equity interest in the Shell Petroleum Development Company of Nigeria (SPDC), signifying a noteworthy shift in ownership within the oil sector. The renamed entity will be known as ‘Renaissance Africa Energy Company Limited’ moving forward.
Finally, Atiku Bagudu, Minister of Budget and Economic Planning, reaffirmed that the CBN will adhere to a strict 5% limit on its ways and means financing to the federal government for the 2024-2025 fiscal year, thus promoting investor confidence in Nigeria’s fiscal management.
This week’s business landscape in Nigeria features critical developments, including significant tax reforms, measures to combat currency abuse, enhanced pension disbursement protocols, electricity grid regulation updates, oil production data, and major corporate acquisitions. These initiatives reflect ongoing efforts to stabilize the economy, improve regulatory frameworks, and maintain investor confidence in the country’s financial management.
Original Source: www.thecable.ng
