Business community has urged the government and the Central Bank of Nigeria (CBN) to consider a more balanced approach to monetary policy.
They noted that while controlling inflation is crucial, mitigating adverse effects on business operations and economic growth is imperative.
They noted with concern the recent decision by the CBN to raise the Monetary Policy Rate (MPR) by 50 basis points, bringing it from 26.25 per cent to 26.75 per cent. Following the 296th Monetary Policy Committee (MPC) meeting, this increment comes amid escalating inflation and surging food prices.
Speaking, the director-general of Lagos Chamber of Commerce and Industry (LCCI), Dr. Chinyere Almona recommended that the government should release more capital expenditure to reflate business activities and support the contribution to economic growth, saying that the capital expenditure released so far is too small in the face of the magnitude of the infrastructural deficit that businesses suffer from.
“With the new capital expenditure component of N12.2 trillion and a release of only N1.84 trillion at mid-year, we definitely need to speed up the release of funds for capital projects in the next quarter to boost economic growth,” she added.
She also said “we should diversify our approach to controlling inflation beyond interest rate hikes. Policies that directly address supply-side constraints, such as improving agricultural productivity and stabilising energy prices, can help reduce inflationary pressures more effectively.
“Increased investment in infrastructure can alleviate production bottlenecks and reduce business costs. This will enhance productivity and competitiveness, helping to tame inflation from the supply side.”
The director-general of Manufacturers Association of Nigeria (MAN) Segun Ajayi-Kadir said that “we recognize the efforts made by the MPC to stabilise price, as well as the rationale behind its decisions. However, it is expedient that the survival of manufacturing in Nigeria is prioritised when making monetary policy decisions.
“This will enable the sector to effectively play its role as the key driver of employment creation, productivity, stable foreign exchange earnings, and economic sustained growth.” He implored CBN to be domestic production centric by taking a detour from continuous hike in MPR and allow time for the real sector to recover from the impact of previous hikes.
Ajayi-Kadir also directed the CBN to collaborate with the Ministry of Finance to facilitate stronger handshake and coherence between monetary and fiscal policies, calling for fiscal support system that will enable the manufacturing sector import raw materials, spares and machines that are not available locally at concessionary duty rate.
“Minimise pressure on foreign exchange reserves by incentivize backward integration and local sourcing to decrease reliance on imported products and raw materials.
“Enforce Executive Order 003 to enhance support for local industries and ramp-up domestic production by restricting access to forex for the importation of products manufactured locally.
“Address the issue of low manufacturing productivity and food production caused by the high-level of insecurity across the country to curb the persistent rise in inflation,” he added.
The Federal Competition and Consumer Protection Commission (FCCPC) has reveived a total of 294 merger applications since its inception, approving 22 in 2024, while eight applications remain under review.
The former acting executive vice chairman of the FCCPC, Dr. Adamu Abdullahi, shared this update during a briefing in Abuja, reflecting on his seven-month tenure. He emphasised that the Commission’s rigorous review process aims to prevent large companies from unjustifiably acquiring smaller competitors, thereby preserving consumer choices,
preventing
anti-competitive practices, protecting consumers, and fostering a vibrant and competitive marketplace.
Dr. Abdullahi said by scrutinising mergers and acquisitions, the FCCPC aims to maintain a level playing field and promote fair competition.
He also highlighted the FCCPC’s efforts to strengthen consumer protection frameworks through collaborations with both domestic and international bodies. He disclosed strategic partnerships with the ECOWAS Regional Competition Authority (ERCA), the Central Bank of Nigeria (CBN), and the Nigeria Data Protection Commission (NDPC).
Additionally, he revealed that the FCCPC has signed a Memorandum of Understanding (MoU) with the Russian Competition Authority (FAS) to enhance international cooperation.
Dr Abdullahi said these partnerships are vital for creating a fair and competitive market environment that is transparent.
Nigeria flared approximately 148.7 million standard cubic feet (mscuf) of gas in the first half of 2024, valued at about $359.85 million.
This is seven per cent higher than the 138.3mscuf of gas flared in the first half of 2023.
This is as stakeholders called for urgent action to address gas flaring and enhance gas commercialisation to alleviate power shortages and improve infrastructure.
Minister of state for Environment, Dr Iziaq Salako, who made the figures known, expressed concern that despite concerted efforts, the country is yet to record much progress in reducing gas flaring.
Salako stated this at the Third National Extractive Dialogue (NED) on Gas Flare Reduction 2024, held in Abuja on Wednesday.
The 2024 NED is jointly organised by Spaces for Change, the Ford Foundation, and the Nigerian Extractive Industries Transparency Initiative (NEITI) and is themed “Gas Flare Reduction: Catalyst for Accelerating Nigeria’s Path To Net-Zero Emissions and Sustainable Development.”
The minister reaffirmed the nation’s commitment to ending gas flaring to foster a conducive environment.
He pointed out the tangible progress made under Nigeria’s Gas Flare Commercialisation Programme, launched in 2016 to attract investment in gas capture technologies.
Salako however, noted that despite advancements, Nigeria still faces formidable obstacles in achieving its gas flaring reduction targets by 2030.
He listed Infrastructure deficits, regulatory shortcomings, and technology gaps as factors that have continued to impede progress.
The minister stressed the need for enhanced collaboration with international partners and increased investment in renewable energy solutions.
He said: “Historically, gas flaring has been a common practice in the Nigerian oil and gas industry due to the absence of infrastructure. As a result, the gas has been continuously burned in oil fields leading to the release of harmful pollutants into the atmosphere.
He added that, “Despite regulatory efforts, enforcement regulations have been challenging and many operators still flare gas due to insufficient penalties and the high cost of gas capture and utilisation technologies.
Nigeria’s policy on gas flaring has however evolved significantly over the years.
“As of today, Nigeria remains one of the top 10 countries in the world in terms of gas flaring volumes. The Nigerian National Petroleum Corporation (NNPC), reported that approximately 324 billion cubic feet of gas was flared in 2023 translating to significant economic losses and environmental damages including damage to the health of the people. This volume, though, represents a slight decrease from previous years, figures derived from the National Gas Flare Tracker shows that Nigeria has flared 148.7 million static cubic feet of gas in the first six months of 2024 which is about seven per cent above the same level above the for the same period in 2023,”
Also speaking, the executive director, Space for Change, Victoria Ibezim-Ohaeri pointed out that gas flaring has far-reaching socio-economic and environmental impacts, particularly on host communities.
“It exacerbates global warming, leads to economic losses, and squanders potential power generation resources.
Ibezim-Ohaeri, said since Nigeria has targeted 2060 as its year of energy transition, owing to climate change and also targeting to stop gas flaring, collaborative actions have become expedient.
However, it is within our power to change this narrative. By reducing gas flaring, we can significantly cut our carbon emissions, unlock economic value, and foster sustainable development that benefits all Nigerians”, she added.
Speaking for host communities in the Niger Delta region, HRH King Bubawaye Dakolo of Bayelsa State said operators and the government must compensate oil host communities for decades of gas flares that have left significant impact on the people.
The monarch stated that gas flaring, which poses a significant threat to the lives of people, has not been reduced in the Niger Delta communities.
Stressing the menace has not abated, he said: “So most of us have not seen any sign of reduction in gas flaring so far. Let me let everyone here know that where I live, the most polluting gas flare in the world is just a kilometre.
“It was burning when I left the Ikiteoma kingdom on Monday. And it is still burning now. For all the flares that I have known, well over 150 of them before PIA they are all still burning out as we speak.”
The monarch who described it as a misconception to say gas flaring has reduced, said the menace is as persistent as it was before the enactment of the Petroleum Industry Act (PIA).
He said since the law gives the operators the option of paying fines for gas flares, they lean on the leverage to perpetuate the crime against the host communities.
He described the PIA as a dangerous document from the perspective of the communities.
According to him, it is a misconception to say gas flare will be taken to the market because it is impossible as flared gas means burnt gas.
Dakolo said: “Inside just as PIA may imply is a Petroleum Industry Act. It is an Act that is meant for the operators of the industry leaving us completely out.
“And so, it is more like a dangerous document so far from the communities’ point of view. Why am I saying so?
“It says very nicely in section 104 that gas should not be flared, however, it goes down to say if you flare gas, you could flare as much as you want to flare and pay your so-called penalty of $2 for 1000 standard cubic feet of gas flared or 50 cents of the same volume flared if you are a small operator the way royalties are paid.”
He revealed how Shell Petroleum Development Company (SDPC) notified him of its plan to flare gas in his community in August 2014.
The monarch, who noted he would not prevent the oil giant since the PIA allowed the gas flare to the peril of the lives of the communities, threatened to video the gas flare.
According to him, gas flare still takes place under the nose of the communities unchecked.
He said, “And then last week on Thursday, Shell came to discuss with me that they are planning another flaring because they want to test well less than 50 meters from people’s houses, about 150 meters from my palace.
“And they say they came to solicit my support and I said what do you mean? Support! How can you get support from me? If you leave it to me, you won’t even do it. “However, I can’t tell you not to flare because the federal Government wants all the money even at the cost of our blood.
Meanwhile, NEITI executive secretary, Drm Orji Ogbonnaya Orji tasked the country with zero gas flare in 2025.
He said with the United Nations projection of Nigeria’s population to rise to over 260 million in 2030 and over 400 million by 2050, which is just ten years away from the country’s net zero target of 2060, NEITI predicts an upsurge in Nigeria’s energy demand that may surpass 47 per cent projected global increase by the same period in 2050.
Orji, who was represented by Dieter Bassi, said the theme of this Dialogue is therefore of huge interest to NEITI as an agency because the right time to table the issue of gas flaring as a national agenda for public discussion is now.
He said: “At a time when Nigeria is grappling with huge energy gaps, the global transition to renewable energy creates an even greater need for this timely intervention.
“NEITI highly commends the Spaces for Change for bringing this issue to the front burner.
“NEITI recognises that Nigeria needs to position itself as the technology frontier to take full advantage of the opportunities that lie in the energy transition journey especially as relates to gas production, utilisation, gas flaring and carbon emission reduction.
“The opportunities are in the areas of investments in technology and innovation that will ensure a Just Transition to net zero emission by 2060.”
The linkage of Bank Verification Number (BVN) to bank accounts has increased to 62.7 million in July, compared to 61.87 million recorded in early May, 2024, the Nigeria Inter-Bank Settlement System (NIBSS) has disclosed.
This indicates that a total of 854,267 account owners have registered for the BVN in the last two months, NIBSS in its recent BVN data revealed.
NIBSS data shows that as of December 2023, there were 60 million BVN registered. This indicates that this year’s database has grown by 2.7 million.
Recall that the Central Bank of Nigeria (CBN) instructed all banks to freeze any account not linked to the BVN by April 2024. This directive, which was issued in December 2023, may have caused the spike in BVN registration.
Although BVN is now required in order to register an account, the number of active bank accounts in the nation indicates that there is still a significant discrepancy between the number of accounts and the number of BVN.
According to Enhancing Financial Innovation and Access (EFInA) Access to Financial Services in Nigeria 2023 Survey report, five per cent (3 million) of banked adults do not have a BVN or NIN.
According to the recent banking data released by NIBSS, the number of active bank accounts in Nigeria stood at 219.6 million in March 2024. Meanwhile, only 62.7 million have BVN.
Going by the current number of BVNs, there is still a wide gap between the number of accounts and the registered BVNs.
The Federal Mortgage Bank of Nigeria, (FMBN) has delivered about thirty nine thousand (39, 000) new homes with about twenty five thousand five hundred (25, 500) mortgages since its establishment in 1993.
The managing director/chief executive officer of the FMBN Shehu Osidi who was speaking at the 18th Edition of Africa International Housing Show, also revealed that the Bank within this period has issued over one hundred and twenty thousand (120, 000) micro housing loans, all within a single-digit interest rate.
Osidi said under the National Housing Fund (NHF) Scheme, his Bank has registered about 26,350 organisations and over 5.8 million cumulative contributors with over 1 million accounting for the self-employed sector.
He revealed that the FMBN has so far also disbursed the cumulative of N440 billion under its various loan windows to drive affordable housing finance for the Nigerian economy. Adding that to its record, the sum of N84.8 billion has been refunded to 492,604 contributors who exited the Scheme in line with the provisions of the National Housing Fund (NHF) Act.
While reiterating that the occasion of the Africa International Housing Show, presents the FMBN the opportunity to showcase its invaluable historic contributions to affordable housing in Nigeria over the years, Osidi stressed that it will also unveil the potentials and strategic re-direction of the Bank to meet the growing challenges of housing in Nigeria under the Management led by him.
Under the Renewed Hope Cities and Programmes anchored by the Federal Ministry of Housing and Urban Development, the managing director revealed that his Bank extended about N100 billion off-taker guarantee to a consortium of developers.
“To support Mr President’s Housing Agenda, the Bank extended a N100 billion off-taker guarantee to the consortium of developers undertaking the Renewed Hope Cities & Estates Programme which commenced with the groundbreaking of the 3,112-housing unit Renewed Hope City in Karsana, being part of the 100,000 housing units to be built nationwide”, he said.
In a move to combat the persistent issue of crude oil theft and boost federal government revenue, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has kickstarted two key projects aimed at enhancing transparency and accountability in the upstream oil and gas sector.
The chief executive of NUPRC, Engr. Gbenga Komolafe, announced the implementation of these projects at the inauguration of the Metering Audit and Advance Cargo Declaration Project Teams, on Wednesday, in Abuja.
Recall that the Federal Executive Council (FEC) had approved a $21 million contract to audit metering and measurement equipment in the 187 oil flow stations in the country and also put in place an advance cargo declaration solution. These initiatives as earlier announced by minister of state for Petroleum Resources Heineken Lokpobiri, aims to enhance monitoring and accountability in crude oil production and distribution, addressing rampant oil theft.
Speaking during the inauguration of the project monitoring teams, Engr. Komolafe, who announced a four-month deadline for the completion of the projects, emphasised that these initiatives are in line with the Commission’s mandate to ensure optimal government revenues from upstream petroleum operations, as specified in the Petroleum Industry Act (PIA) 2021.
The projects would be executed by two firms namely: PE Energy Limited and P-Lyne Energy.
According to him, the “Audit of Upstream Measurement Equipment and Facilities” project aims to establish reliable baseline data for all measurement points, identify gaps in production and allocation measurement, and implement targeted interventions to enhance metering infrastructure.
This project is crucial in addressing issues such as the presence of obsolete equipment, lack of a comprehensive database, and absence of real-time production measurement across many locations.
He also said the “Advance Cargo Declaration Solution” complements the metering audit by establishing a robust system for declaring and tracking crude oil transportation and exports from Nigeria.
Komolafe emphasised the importance of these technologically driven initiatives in minimising waste and optimising government revenues, as mandated by the PIA.
He said the audit aims to establish reliable data for measurement points and improve production measurement, while the cargo declaration solution will enhance tracking of crude oil movements, preventing theft and ensuring accurate revenue calculations.
“This project will monitor and account for the movement of crude oil within the country, prevent disruptions, theft, and under-declaration, and ensure that only certified production is exported. It will also enable real-time tracking, reconciliation, and reporting of crude oil exports to facilitate accurate revenue billing and generation.”
“For a very long time as a nation we have suffered from the menace of crude oil theft, and there have been contentions as to the accuracy in terms of our hydrocarbon accounting in Nigeria in a manner that has impacted our federal revenue unfavourably.
So what has happened is that the commission, within its assumption of office, has been able, as a regulator, to take a very bold measure to address this issue.
“The implementation of this very important aspect of the regulation that will carry out an effective audit of the existing metering systems in 187 flow stations in Nigeria. You recall we have 31 crude oil loading terminals. So what we are trying to do is to ensure that we are able to put in place a framework where the nation will be able to accurately determine and measure the volume of crude that is loaded from these terminals.
He charged the carefully assembled teams, comprising experts from various departments within the Commission, to discharge their duties diligently and professionally.
Komolafe said the projects would be delivered within four months, and made it clear that any request to extend the timeline will not be entertained.
Engr. Komolafe expressed confidence in the successful implementation of the projects, stating his personal commitment to the initiative.
The CCE said each project has a dedicated team, led by Engr. Enorense Amadasu, executive commissioner for Development & Production, with strict timelines for completion and urged stakeholders to cooperate for successful implementation, highlighting the projects’ potential to combat illegal crude oil exports and promote transparency in the sector.
He expressed gratitude to President Bola Ahmed Tinubu and the Federal Executive Council for their support, reinforcing the Commission’s commitment to regulatory excellence and sustainable development in Nigeria’s oil and gas industry.
The NUPRC CEO also requested the cooperation of all relevant stakeholders, including the contractor, industry operators, and Commission staff, to ensure the successful implementation of the projects. He extended his gratitude to President Bola Ahmed Tinubu and the Federal Executive Council for approving the projects, which align with the Commission’s Regulatory Action Plan and ease of doing business.
Members of the team for “Audit of Upstream Measurement Equipment and Facilities in the Nigerian Oil and Gas Industry” project are as follows: Manuel Ibituroko – deputy director, Facilities Engineering & Optimization; Mohammed Sirajo – manager, Facilities Engineering; Ike Chidi – manager, Facilities Engineering; and Bashir Shariff – principal regulatory officer
For the “Advance Cargo Declaration Solution” project, the members include: Bello Shehu – assistant director, Crude Oil & Gas terminal Operations; Abdulrahman Idris – manager, Petroleum Accounting; Omeje Desmond – deputy manager, COTO PHC; Dimkpa I. H. – PRO, COTO Warri andOlatunji Babatunde – NDR.
According to the NUPRC boss, their duties shall include liaising with the Contractor to ensure the fulfilment of the Commission’s specified obligations and monitoring the implementation of the projects to ensure alignment with the scope and specifications.
Responding, one of the two contractors, chief executive officer, PE Energy Ltd, Daere Akobo, said, “I am very happy that we are taking a pragmatic look at hydrocarbon accounting. It is clear that there is no way that a country can develop without proper plan and foresight, and foresight and planning also requires a lot of data. For the setting of the robust solution that will help us to account for our hydrocarbons right from the beginning to the end, and we will be able to have real-time monitoring of what transpires within the downstream sector.”
On his part, director, P-Lyne Energy, Tomi Ogunwole, assured that the company will surpass the four-month deadline set by the commission,
“I want to also give you the confidence of my company that we will meet and surpass the four-month deadline that you are committing to us with the support of every single person here,” he said.
The unveiling of these innovative solutions comes at a critical time when Nigeria, Africa’s largest economy, is working to ramp up crude oil output and attract investment into its beleaguered oil industry.
The country has been grappling with supply disruptions, crude theft, and vandalism, which have hindered its ability to meet the quotas approved by the Organisation of Petroleum Exporting Countries (OPEC).
The NUPRC’s projects are expected to contribute significantly to this effort by combating oil theft and boosting government revenue.
The Ministry of Petroleum Resources, Federal Republic of Nigeria, in collaboration with Great Minds Events, is set to commence the inaugural Africa Oil & Gas Digital Transformation Conference 2024, set for September 3-4, 2024, in Lagos, Nigeria.
This event will be pivotal in driving the digital transformation of Africa’s oil and gas sector.
Underscoring the essence of the event, Sen. Heineken Lokpobiri, Hon. Minister of State Petroleum Resources (Oil), said: “The Government of President Bola Ahmed Tinubu is committed to ensuring a conducive business environment for National Oil Companies (NOCs) and International Oil Companies (IOCs) by tackling issues of pipeline vandalization and oil theft.”
He added that, “This conference is not just about increasing production but also ensuring the benefits are felt by all Nigerians.
The Petroleum Industry Act (PIA) has revolutionised the energy sector with a friendly regulatory framework, ensuring transparency and stimulating investment. Our shared responsibility is to protect our environment, our resources, and the livelihoods of those in oil-producing regions.”
This conference will address the dynamic challenges and opportunities presented by digital transformation in the oil and gas industry. It will feature keynotes and panel discussions from industry experts, including leaders from ExxonMobil Nigeria and KPMG.
Attendees will benefit from networking sessions, one-on-one meetings with key opinion leaders, and an exhibition showcasing cutting-edge solutions.
Overtime, Great Minds Events has built strong partnerships and consistently delivers impactful industry conferences.
The organisation believes collaboration with forward-thinking companies will drive the necessary digital transformation in Nigeria’s oil and gas sector and further shape the future of Africa’s oil and gas industry.
The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN), yesterday raised its interest rate to 26.75 per cent, a 50 basis point increase aimed at combating soaring inflation, which reached 34.19 per cent for core inflation and 40.87 per cent for food inflation in June.
This decision, announced by CBN Governor Olayemi Cardoso, marks the fourth rate hike since his appointment in September 2023 and reflects ongoing economic pressures despite previous increases not significantly cooling inflation.
This is as experts have commended the CBN for a moderate interest rate hike.
Chief Executive OfficerCentre for the Promotion of Private Enterprise (CPPE) Dr Muda Yusuf, who described the 50 basis points increase as tolerable, called for urgent implementation of fiscal policies to stabilise the economy.
Governor, CBN, Yemi Cardoso, who doubles as the Chairman of the MPC, made this known while presenting the communique from the 296th meeting of the committee.
Cardoso also announced that the MPC adjusted the asymmetric corridor around the MPR to +500/-100 from +100/-300 basis points; retained the Cash Reserve Ratio (CRR) of commercial banks at 45 per cent.
The committee also retained the CRR and Liquidity Ratio of merchant banks at 14 per cent and 30 per cent, respectively.
Cardoso said that the meeting, which had 11 members of the MPC present, reviewed recent economic and financial developments, and assessed risks to the outlook.
According to him, the committee was mindful of the effect of rising prices on households and businesses, and also expressed its resolve to take necessary measures to bring inflation under control.
“It re-emphasised its commitment to the CBN’s price stability mandate and remained optimistic that despite the June uptick in headline inflation, prices are expected to moderate in the near term.
“This is hinged on monetary policy gaining further traction, in addition to recent measures by the fiscal authority to address food inflation.
“In its consideration, the committee noted the persistence of food inflation, which continues to undermine price stability.
“It was observed that while monetary policy has been moderating aggregate demand, rising food and energy costs continue to exert upward pressure on price development,” he said.
The governor said that the prevailing insecurity in food producing areas and high cost of transportation of farm produce were also contributing to this trend.
According to the CBN governor, members were, therefore, not oblivious to the urgent benefit of addressing these challenges as it will offer a sustainable solution to the persistent pressure on food prices.
Cardoso said that the MPC also had in consideration the increasing activities of middlemen who often finance smallholder farmers, aggregate, hoard, and move farm produce across the border to neighbouring countries.
He said that the committee suggested the need to put in check such activities to address the food supply deficit in the Nigerian market to moderate food prices.
“The MPC, therefore, resolved to sustain collaboration with the fiscal authority to ensure that inflationary pressure is subdued.
“In addition, the committee expressed optimism with the recent stop gap measures by the Federal Government to bridge the food supply deficit.
“In particular, the 150-day duty free import window for food commodities will moderate domestic food prices.
“It is noteworthy that these measures will not lead to direct injection of liquidity into the economy as to cause further inflation,” he said.
He said that the measure was a welcome development and might prove effective in the short run.
He, however, advised that it was expedient that it should be implemented with a defined exit strategy to avert a possible rollback of the recent gains in domestic food production.
“To support these initiatives, the CBN is already engaging development finance Institutions like the Bank of Industry (BOI) to ensure adequate support to industries with a focus on Small and Medium Scale Enterprises (SMEs),” he said.
Cardoso said that the committee also took cognisance of developments in the foreign exchange market.
“The MPC noted the narrowing spread between the various foreign exchange segments of the market, an indication of price discovery and improved market efficiency, thus reducing opportunities for arbitrage and speculation.
“The committee noted that the increase in the level of external reserves would further build confidence for a more stable exchange rate.
“It, thus, urge the apex bank to explore available avenues to improve inflows, especially through
diaspora remittances,” he added.
He said that members of the committee also noted the effort of the federal government and private sector towards improving domestic refining capacity.
“This is expected to reduce foreign exchange, currently being expended on the importation of refined petroleum products,” he said.
Meanwhile, the CPPE, in a statement on Tuesday, said the moderate increase showed that the CBN was listening and responding to the suggestions of financial stakeholders to stop aggressive tightening measures.
He explained that, although he preferred a pause on rate increases because of the challenges businesses were facing.
“The marginal increase marks a softening of the tightening stance. It is tolerable,” Yusuf said.
The CPPE boss, however, called for speedy implementation of fiscal policy measures to tackle inflation.
“Already, the economic stabilisation plan contains some laudable fiscal policy measures that could reduce production costs in the economy.
“It is also important and urgent for the government to adopt and quickly implement the recommendation of the Presidential Committee on Fiscal and Tax Reforms on the Customs duty exchange rate, which proposed N800 per dollar.
“The adoption of this recommendation would have a considerable impact on the cost of goods and services in the country,” he said.
The minister of finance and coordinating minister of the economy, Wale Edun, has announced that the federal government of Nigeria injected N1 trillion worth of palliatives into the manufacturing sector over the past year.
This initiative aims to revitalise the sector and has already shown positive outcomes, the chairman of the Federal Inland Revenue Service (FIRS), Zacch Adedeji, also emphasised the importance of legacy projects and infrastructure development in making the manufacturing sector more viable.
These statements were made during a public hearing on the Finance Act (Amendment) Bill 2024, organised by the National Assembly joint committee on Finance.
In response to a request to include the manufacturing sector as a beneficiary of the proposed tax on banks’ foreign profits (windfall tax), the minister assured that the sector has already been taken care of through the injection of N1 trillion worth of palliatives.
Adedeji further explained that the proposed one-time windfall tax is intended to redistribute wealth and benefit various sectors.
He highlighted that the strategic programs of President Bola Tinubu’s federal government are focused on rejuvenating the manufacturing sector.
These initiatives include the accelerated stabilisation fund and a series of strategic projects aimed at enhancing infrastructure and vibrancy in the sector.
Examples of such projects are the Badagry-Sokoto Highway, which will significantly reduce travel time from Badagry to Sokoto to 11 hours, and the Lagos-Calabar Coaster Highway, which will improve connectivity and support the revitalisation of the manufacturing sector.
Adedeji lauded President Tinubu’s robust plan for the economy, manufacturing sector, and overall development.
The specific sharing percentage of the one-time windfall tax between the federal government and banks is yet to be agreed upon, as discussions were ongoing when the Minister, the FIRS boss, and the representative of the Governor of the Central Bank of Nigeria (CBN) were excused from the meeting.
President Tinubu proposed a 50 per cent sharing formula, but some committee members suggested upward review.
