Business

Dangote Refinery to Power Nigeria’s Economy, End Fuel Scarcity, Save Forex – Gov. Abiodun …praises President Tinubu’s intervention

Governor Dapo Abiodun of Ogun State and Alhaji Aliko Dangote

Ogun State Governor, Prince Dapo Abiodun, said the commencement of fuel production by the Dangote refinery will strengthen the nation’s economy by eliminating constant shortages and conserving foreign exchange.

Petrol produced from the 650,000 barrels per day Dangote refinery is expected to hit filling stations in the next 48 hours as modalities with the Nigerian National Petroleum Company Limited have been formalized.

Prince Abiodun, in a statement on Tuesday signed by his Chief Press Secretary, Lekan Adeniran, said that with the refinery coming on stream, one of the most significant challenges faced by Nigeria for more than three decades—reliance on fuel importation—will be solved.

According to the statement, with the Warri and Port Harcourt refineries also being prepared to begin production, Nigerians will heave a sigh of relief from constant fuel shortages, while the economy will also receive a boost.

Prince Abiodun praised Alhaji Aliko Dangote for his determination in seeing through the multi-billion dollar projects against all odds.

The governor also commended President Bola Ahmed Tinubu for his intervention in ensuring that the refinery comes on stream during his administration.

He praised the President’s commitment to the revitalization of other refineries in the country, which, he said, will drastically reduce fuel prices when all of them start production.

He said: “This significant achievement marks a transformative milestone not only for you as an entrepreneur but also for Nigeria and the broader African continent. The establishment of this refinery represents a pivotal shift in the energy landscape of the region, showcasing the power of vision, resilience, and unwavering commitment to economic development.

“The Dangote refinery is poised to be a game-changer in the production of petrol, addressing one of the most pressing challenges faced by Nigeria: reliance on imported fuel. This dependency has not only strained our foreign exchange reserves but has also hindered our potential for self-sufficiency.

“By producing petrol locally, the refinery will drastically reduce the outflow of foreign currency, thereby strengthening our economy. This move aligns perfectly with the President Bola Tinubu-led administration’s efforts to achieve economic diversification and reduce reliance on oil exports alone.

“Moreover, the economic impact of the refinery extends beyond just fuel production. It is expected to generate thousands of jobs, both directly and indirectly, thus contributing to the reduction of unemployment rates. The ripple effect of this employment generation will invigorate local economies, stimulate growth in ancillary industries, and enhance the livelihoods of countless families across Nigeria.

“In addition to bolstering local employment and economic activity, the refinery’s operations are expected to enhance energy security in Nigeria. With the capacity to produce a substantial volume of petrol, the country will be better equipped to meet its energy needs, reducing the volatility associated with fuel shortages and price fluctuations.

“This stability will inevitably create a more favorable environment for businesses and attract foreign investments, further boosting economic growth.”

Business

CBN begins implementation of controversial Cybersecurity levy on transactions

The Central Bank of Nigeria, CBN, has confirmed the enforcement of the controversial cybercrime levy at 0.005 percent on all electronic transactions under its new guidelines for the 2024-2025 fiscal year.

Apex Bank disclosed this in its recently released Monetary, Credit, Foreign Trade, and Exchange Policy Guidelines for Fiscal Years 2024-2025.

The development comes after the levy was purportedly suspended after it sparked debate among Nigerians.

The Cybercrime (Prohibition, Prevention, etc.) Act of 2015, is aimed at bolstering the nation’s cyber security infrastructure.

Meanwhile, the percentage has been reduced from 0.5 percent earlier announced in May 2024 to 0.005 percent in the new guidelines.

CBN reaffirmed its commitment to mandating banks and other financial institutions deduct the levy from all electronic transactions.

The revenue generated from this levy is directed towards a cybersecurity fund, intended to support measures that safeguard Nigeria’s banking system from the growing threat of cyberattacks.

“The CBN shall continue to enforce the payment of the mandatory levy of 0.005 percent on all electronic transactions by banks and other financial institutions, by Cybercrime (Prohibition, Prevention, etc.) Act, 2015″, the document said.

Business

FAAC: FG, States, LGs share N1.203trn August revenue

A total sum of N1.203 trillion in August 2024 Federation Accounts revenue has been shared among the Federal, State, and Local Governments in the country.

The balance in the Excess Crude Account (ECA) was $473,754.57.

The revenue distribution was announced at the September 2024 meeting of the Federation Accounts Allocation Committee (FAAC), held in Abuja.

The N1.203 trillion total distributable revenue comprised distributable statutory revenue of N186.636 billion, distributable Value Added Tax (VAT) revenue of N533.895 billion, Electronic Money Transfer Levy (EMTL) revenue of N15.017 billion, and Exchange Difference revenue of N468.245 billion.

In a statement on Tuesday, Bawa Mokwa, Director (Press and Public Relations) in the Office of the Accountant General of the Federation (OAGF), said a communiqué issued by the Federation Accounts Allocation Committee (FAAC) indicated that total revenue of N2.278 trillion was available in August 2024.

Total deductions for the cost of collection were N81.975 billion, while total transfers, interventions, and refunds were N992.617 billion.

According to the communiqué, gross statutory revenue of N1.221 trillion was received for August 2024, which was lower than the N1.387 trillion received in July 2024 by N165.994 billion.

Gross revenue of N573.341 billion was available from Value Added Tax (VAT) in August 2024. This was lower than the N625.329 billion available in July 2024 by N51.988 billion.

The communiqué stated that from the N1.203 trillion total distributable revenue, the Federal Government received a total sum of N374.925 billion, the State Governments received N422.861 billion, and the Local Government Councils received N306.533 billion.

A total sum of N99.474 billion (13% of mineral revenue) was shared with the benefiting States as derivation revenue.

Regarding the N186.636 billion distributable statutory revenue, the communiqué stated that the Federal Government received N71.624 billion, the State Governments received N36.329 billion, and the Local Government Councils received N28.008 billion.

A sum of N50.675 billion (13% of mineral revenue) was shared with the benefiting States as derivation revenue.

From the N533.895 billion distributable Value Added Tax (VAT) revenue, the Federal Government received N80.084 billion, the State Governments received N266.948 billion, and the Local Government Councils received N186.863 billion.

A total sum of N2.252 billion was received by the Federal Government from the N15.017 billion Electronic Money Transfer Levy (EMTL), while the State Governments received N7.509 billion, and the Local Government Councils received N5.256 billion.

From the N468.245 billion Exchange Difference revenue, the communiqué stated that the Federal Government received N220.964 billion, the State Governments received N112.076 billion, and the Local Government Councils received N86.406 billion, while N48.799 billion (13% of mineral revenue) was shared with the benefiting States as derivation revenue.

In August 2024, Oil and Gas Royalty, Petroleum Profit Tax (PPT), Value Added Tax (VAT), Import and Excise Duties, Electronic Money Transfer Levy (EMTL), CET Levies, and Companies Income Tax (CIT) all recorded decreases.

Business

Inflation rate drops to 32.15%

Nigeria’s inflation rate drops to 15.60% in January

The Nigerian headline inflation rate dropped to 32.15% in August. This is according to the National Bureau of Statistics.

In its latest report, the NBS said the August 2024 headline inflation rate showed a decrease of 1.25% points.

It said: “In August 2024, the headline inflation rate further eased to 32.15% relative to the July 2024 headline inflation rate of 33.40%. Looking at the movement, the August 2024 headline inflation rate showed a decrease of 1.25% points when compared to the July 2024 headline inflation rate.

“However, on a year-on-year basis, the headline inflation rate was 6.35% points higher compared to the rate recorded in August 2023 (25.80%).

“This shows that the headline inflation rate (year on-year basis) increased in August 2024 when compared to the same month in the preceding year (i.e., August 2023).

“Furthermore, on a month-on-month basis, the headline inflation rate in August 2024 was 2.22%, which was 0.06% lower than the rate recorded in August 2024 (2.28%).

“This means that in August 2024, the rate of increase in the average price level is lower than the rate of increase in the average price level in July 2024”.