Hello Readers, Bizwatchnigeria brings you the latest business news highlights in Nigeria for the week of November 3rd–9th, 2024.
Northern Youth Forum Endorses Federal Government’s Tax Reform Bills
The Progressive Northern Youth Forum (PNYF) voices strong support for the Federal Government’s proposed Tax Reform Bills, stating they offer a vital opportunity to reshape Nigeria’s economy. Abdulkadir Bala, PNYF’s General Secretary, announces the group’s position following a National Executive Committee meeting where they reviewed President Bola Tinubu’s decision to dismiss the National Economic Council’s (NEC) recommendation to withdraw the bills.
Stagnant Labor Incomes Contribute To 14 Million Nigerians Entering Poverty, Reports World Bank
Stagnant labor incomes lead to an estimated 14 million more Nigerians experiencing poverty in 2024, according to the World Bank’s report, Macro Poverty Outlook: Country-by-Country Analysis and Projections for the Developing World.
Naira Falls Amid High FX Demand as CBN Plans Automated Trading Platform
The value of the naira continues its downward slide against the U.S. dollar, with pressure mounting in Nigeria’s autonomous foreign exchange (FX) market. Data shows that demand for the dollar and other foreign currencies is outpacing available supply, causing a strain on the naira’s value.
Nigeria, Morocco, And ECOWAS Advance Talks On $26 Billion African Gas Pipeline Project
The Nigerian government, along with the Economic Community of West African States (ECOWAS), Morocco, and Mauritania, reaffirms its commitment to advancing the $26 billion African Atlantic Gas Pipeline project.
Money Market Rates Surge Amid Liquidity Squeeze
Money market rates have spiked significantly as liquidity tightens in the financial system following a substantial debit from a recent OMO (Open Market Operations) auction. The Nigerian Interbank Offered Rate (NIBOR) rose across all maturities, reflecting a constricted liquidity environment in the banking sector.
Naira Gains As Nigeria’s Foreign Reserves Approach $40 Billion
The Nigerian naira strengthened in the official currency market as foreign reserves surged close to $40 billion, buoyed by sustained foreign exchange (FX) inflows. Reforms to boost investor confidence, alongside relatively high yields in Nigeria’s debt market, have spurred foreign currency inflows into the country.
FAAC Revenue Climbs To N6.28 Trillion In Q2 2024, Driven By VAT And Import Duties Amid Oil Income Drop
FAAC revenue climbs to N6.28 trillion in Q2 2024, as robust Value Added Tax (VAT) and import duty collections offset declining oil earnings. VAT, customs, and excise duties contribute a major share, comprising 72.42% of the total federation account earnings. The Central Bank of Nigeria’s latest economic report shows that non-oil revenue reaches N4.55 trillion this quarter, marking a 32.22% increase over the previous quarter.
Interswitch Brings Techconnect 4.0 To Abuja, Fostering Financial Growth Through Innovation
Interswitch TechConnect 4.0 has successfully concluded its third stop in Abuja, building on the impactful gatherings in Enugu and Asaba. Organised by Interswitch, one of Africa’s leading integrated payments and digital commerce companies, the series is designed to convene leading stakeholders in Nigeria’s fintech sector to explore how digital transformation is driving growth in the ecosystem across Nigeria.
Nigeria’s Eurobond Yields Rise To 9.70% Amid Bearish Market Sentiment
Yields on Nigeria’s U.S. dollar-denominated bonds increased to 9.70% as bearish market sentiment pushed yields higher, despite mixed results in the international capital markets influenced by the U.S. election.
Benchmark Yield Reaches 19.47% As Bond Market Activity Slows
The benchmark yield on Nigerian government bonds rose by 1 basis point to 19.47% in the secondary market, amid subdued trading activity. Traders observed mild bearish sentiment at the short end of the yield curve, where yields increased by 1 basis point.
Money Market Rates See Mixed Trends as Banking System Deficit Narrows
Money market rates showed mixed movements on Thursday as the liquidity deficit in the banking system eased. Short-term benchmark interest rates remained at double-digit levels, with analysts predicting that banks may need to start borrowing to meet their funding requirements.
Nigeria’s Foreign Capital Inflows Surge Under Trump, Plunge During Biden’s Term
The re-election of Donald Trump as U.S. President, defeating Vice President Kamala Harris, sparks discussions on how his policies might influence global investment patterns in the years ahead.
Nigerian Treasury Bills Rally Amid Investor Demand, Yields Ease
Nigerian Treasury bills saw a rally as investors sought to fill unmet bids from the Central Bank’s recent auction. At Wednesday’s primary market auction, the Central Bank sold fewer bills than the total bids received, although it increased allocations slightly beyond the initial offer to meet some of the demand.
New Tax Reform Bills Seek To Centralize Revenue Collection, End NUPRC And Customs Tax Roles
The Federal Government’s new tax reform bills, currently under review by the National Assembly, aim to streamline revenue collection by centralizing the process under a single agency. These reforms propose ending the tax collection roles of multiple federal agencies, including the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and the Nigerian Customs Service (NCS).
Taiwo Oyedele Warns Against State-Level VAT Collection, Highlights Risks Of Revenue Decline And Business Disruption
Taiwo Oyedele, Chairman of the Presidential Tax Reform Committee, warns that allowing state governments to collect Value Added Tax (VAT) could lead to financial and operational challenges across Nigeria. During an interview on Friday, Oyedele emphasizes that a decentralized VAT system would likely result in reduced revenue and complicate business operations nationwide.
