During the course of this week, Bizwatch Nigeria has decided to bring you the top business stories that you are expected to see this week. Here are our top 7 business stories for this period.
World Bank: Nigeria Owes Us The Highest Money In Africa
Nigeria now occupies the fourth spot on the list of countries that the World Bank lists as having borrowed the majority of its funds in Africa. Nigeria rose from fifth to fourth on the World Bank’s list of the top 10 International Development Association (IDA) borrowers with a $13 billion loan stock.
BizWatch Nigeria is aware that between the end of June 2021 and the end of June 2022, Nigeria accrued IDA debt of nearly $1.3 billion. As a result, the most populated country in Africa replaced Vietnam in the fourth spot on the list. However, it is important to note that Nigeria’s IDA debt stock is not identical to the $486 million loan from the World Bank’s International Bank for
FG Hoping To Generate N160bn From Call, Data Taxes
Excise taxes on telecom services are expected to bring in N160.46 billion for the federal government. The Nigerian Communications Commission (NCC) estimates that in 2021, the combined revenues of GSM, fixed wired, and Internet service providers will be N3.21 trillion.
A 5 percent excise tax on telecom services will bring in about N160.46 billion for the government. Moreover, the estimate assumes that telecom revenue will remain unchanged. However, it could be higher or lower in real terms in 2022 depending on economic factors.
Agric Budgets Peak At N874.83bn, Food Imports Cost N7.81tn
Agricultural imports into Nigeria were anticipated to be N7.81 trillion over the same period, compared to the Federal Government’s budget of approximately N874.83 billion for the Federal Ministry of Agriculture and Rural Development.
The year 2021 saw the most agricultural imports into the country during the period under study, with N2.74 trillion worth of goods imported. In comparison, 2016 saw the lowest number of imports during the same time period. In 2016, Nigeria’s agricultural imports were worth N656.4 billion.
The scenario infuriated agribusiness owners, who scowled and gave a variety of explanations for the huge imports compared to what was anticipated and usually not fully disclosed. According to information from the ministry’s 2016–2021 budgets, the government set approximately
Nigeria’s Production Declines To 1.08M BPD As OPEC Quota Increases
Nigeria’s crude oil output fell to 1.08 million barrels per day (BPD) in July, down from 1.16 million the previous month. This was stated by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) in its most recent crude oil and condensate production figures for July 2022.
The data revealed a 6.42 percent drop in production from June, adding to the woes of a cash-strapped economy. The Organization of Petroleum Exporting Countries (OPEC) and its allies increased Nigeria’s oil production limit for September to 1.830 million barrels per day, up from 1.826 million barrels per day in August.
Nigerians In Diaspora Contributed $60.22bn In Three Years
Nigerians abroad sent $60.22 billion home to boost the economy and the nation’s foreign exchange reserves. The World Bank and the Federation’s Budget Office both provide statistics. While the Ministry of Finance, Budget, and National Planning reported in its 2023–2025 Medium Term Expenditure Framework and Fiscal Strategy Paper that diaspora remittances were $17.21 billion in 2020 and $19.2 billion in 2021, the World Bank estimated that diaspora remittances into Nigeria were worth $23.81 billion in 2019.
Nigeria Loses N891bn To Gas Flaring In 18 Months
Nigeria lost N891 billion to gas flaring in 18 months, according to an arm of the Nigerian Oil Spill Detection and Response Agency (NOSDRA). The numbers show that the nation lost N707 billion in 2021 and another N184 billion in the first half of 2022, for a total loss of N891 billion.
According to the NOSDRA analysis, the nation’s oil and gas companies lost $441.2 million (or about N183.54 billion) in the first half of 2022 as a result of flaring 126 billion standard cubic feet (SCF) of gas. But in 2021, 119 tanker trucks or around 23,862.271 barrels of oil (3,770,238.864 liters) were spilled.
Nigeria’s Debt Servicing To Peak At N10.43tn In 3 Years
The Federal Government anticipates that debt repayment will cost N10.43 trillion by 2025, as stated in the 2023-2035 Medium Term Expenditure Framework & Fiscal Strategy Paper.
Over the N3.69 trillion planned for debt service in 2022, this is an increase of 182.66 percent. The Federal Government set aside N3.32 trillion for debt repayment in 2021, according to a copy of the finance minister’s public presentation of the approved 2022 budget.
In contrast, the minister’s presentation document states that N4.2 trillion or 37.9 percent of the funds allocated for debt servicing were spent on debt servicing in just 11 months. From N429 billion in December 2021 to N896 billion in March 2022, the cost of debt servicing in Nigeria increased by 109%.
