Key Business Developments in Nigeria: Week of March 17-21

This article outlines crucial business stories in Nigeria for the week including the House of Representatives’ tax reform approval, concerns over naira abuse by the Central Bank, PenCom’s empowerment of PFAs, changes from NERC, a drop in crude oil production, Renaissance’s acquisition of SPDC, and the CBN’s commitment to fiscal limits.

This week, key business stories to monitor include significant developments in tax reform, currency management, and energy transactions in Nigeria.

The House of Representatives has approved tax reform bills, maintaining the Value Added Tax (VAT) at 7.5%. During a plenary session on March 13, Chairman James Falake facilitated the clause-by-clause review of the proposals, which followed public hearings that faced opposition.

Olayemi Cardoso, Governor of the Central Bank of Nigeria (CBN), has highlighted the rise in illegal transactions involving the naira. At a security workshop in Abuja, he called for stringent measures against the misuse of the national currency, noting its erosion of respect and its detrimental impact on the naira’s value.

The National Pension Commission (PenCom) has empowered Pension Fund Administrators (PFAs) to approve retirement benefits independent of agency clearance. This directive, effective from June 1, aims to alleviate bureaucratic delays, facilitating more timely pension disbursements under the contributory pension scheme.

The Nigerian Electricity Regulatory Commission (NERC) has established a Grid Code Review Panel (GCRP) to optimize power sector operations. The panel will assess proposed amendments to the grid code, which governs technical connections to the national electricity grid, before presenting recommendations for approval.

Nigeria’s crude oil production has declined to an average of 1.46 million barrels per day (bpd) in February, as reported by OPEC. This figure, based on direct communications with Nigerian authorities, reflects a broader trend in the country’s oil output situation.

Renaissance Africa Energy Holdings has completed its acquisition of Shell’s total equity in the Shell Petroleum Development Company of Nigeria (SPDC). The company will rename SPDC to Renaissance Africa Energy Company Limited in this transition.

Atiku Bagudu, Nigeria’s Minister of Budget and Economic Planning, confirmed that the CBN will adhere to the established 5% limit on ways and means financing to the federal government. This measure aims to enhance investor trust in Nigeria’s fiscal management for the upcoming 2024-2025 budget.

In conclusion, developments in Nigeria’s business landscape this week highlight critical changes in tax regulation, currency management, pension processing, energy sector transactions, and fiscal accountability. These measures collectively aim to improve economic governance and investor confidence in Nigeria’s financial stability.

Original Source: www.thecable.ng