Business
2020 finance bill gets special Senate action, passes 1st, 2nd reading
The 2020 finance bill seeking to reduce import levy on buses, tractors and other motor vehicles has passed first and second reading at the Senate.
The proposed law passed first and second reading on Wednesday after the senators gave it a special consideration.
A letter by President Muhammadu Buhari asking the National Assembly to pass the bill was only read on the floors of the House of Representatives and Senate on Tuesday.
Normally, when a bill is read for the first time, a day is fixed to debate the general principles of the legislation after which it will be passed for second reading.
But the Senate Leader, Yahaya Abdullahi, on Wednesday said special consideration should be given to the bill because of its importance to the economy.
He said the legislation was seeking to “provide fiscal relief for taxpayers by reducing the applicable minimum tax rate for two consecutive years of assessment.”
The senate leader said the bill was also seeking to amend the procurement act to implement key procurement reforms previously proposed by the national assembly in 2019.
“The Capital Gains Tax Act is amended at section 36(2) of the CGTA to the extent that exemption on tax liability for compensation for loss of office which was hitherto limited to N10, 000.00 is now extended to N10, 000, 000.00,” he said.
“There is a new section 32 which provides that no tax shall apply to any trade or business transferred to a Nigerian company for the purposes of better organization of that trade or business.
“Section 4 of the Value Added Tax (VAT) act has been amended by increasing the value added tax payable by consumers from 5% to 7.5%. Section 19 increased the penalty payable by a taxable person for non-remittance within the specified period from 5% to 10%.
“Under section 28, the penalty for failure to give notice of change of address or permanent cessation of business was increased from N5,000 to N 50,000 in the first month and N25,000 in subsequent months.
“There is a new section 8 of the VAT Act to cater for the registration of a taxable person upon commencement of business.
“The penalty for failure to register has been increased from N10,000 to N50,000 in the first month and from N 5,000 to N 25, 000 in the subsequent months.”
Yahya also said the bill sought to boost the Small and Medium Enterprises by reducing their tax burden.
However, Ike Ekweremadu, senator representing Enugu west, was opposed to the bill being hurried.
“It is important that we put it to a public test and see what the Nigerian people will say. We must ensure that the people of Nigeria are carried along,” he said.
The bill passed second reading after it was put to a voice vote by Senate President Ahmad Lawan.
Business
How to use $23bn forex reserves to stablise exchange rate, by Uwaleke
How to use $23bn forex reserves to stablise exchange rate, by Uwaleke
A financial expert, Prof. Uche Uwaleke has said the accretion of Foreign Exchange Reserves (NRER) at 23.11 billion dollars to Nigeria’s external reserves puts the Central Bank of Nigeria (CBN) in a stronger position to defend the value of the naira.
“The CBN can leverage rising external reserves to intervene in the forex market whenever it becomes necessary to stabilise the exchange rate,” Uwaleke said while arguing that the current size of the NER will positively impact on the value of the Naira.
Uwaleke, a Professor of Capital Market at the Nasarawa State University, Keffi, is also the President of the Capital Market Academics of Nigeria, however, raised concerns that the increase in the nation’s foreign reserves had been largely on account of temporary FX inflows such as Foreign Portfolio Investments (FPIs) and foreign loans.
He said that they represented unsustainable sources of growing external reserves.
“Impatient capital such as FPIs carry a lot of risks and have the potential of destabilising the economy whenever they leave the country.
“Against this backdrop, the government should pay more attention to diversifying the export base of the economy, especially via agriculture and solid minerals.
“The government should also create the enabling environment that attracts sustainable Foreign Direct Investments (FDIs) ,” he said.
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The CBN recently revealed that the NFER stood at 23.11 billion dollars at the end of 2024, their highest level in three years.
The apex bank said that the development signalled a major improvement in the country’s external financial position.
It said that the NFER, which adjusts gross reserves to account for near-term liabilities such as currency swaps and forward contracts, stood at 3.99 billion dollars at the end of 2023.
According to the CBN Governor, Yemi Cardoso, the improved position was due to substantial reduction in short-term foreign exchange liabilities, notably swaps and forward obligations.
Cardoso cited measures aimed at boosting forex market confidence and reserves, alongside increased non-oil foreign exchange inflows.
“This improvement in our net reserves is not accidental; it is the outcome of deliberate policy choices aimed at rebuilding confidence, reducing vulnerabilities, and laying the foundation for long-term stability.
“We remain focused on sustaining this progress through transparency, discipline, and market-driven reforms,” Cardoso said.
He said that Gross external reserves also climbed to 40.19 billion dollars at the end of 2024, up from 33.22 billion dollars the previous year.
“Reserves declined in the first quarter of 2025 due to seasonal factors and foreign debt interest payments, the CBN anticipates a steady uptick in reserves throughout the second quarter,” Cardoso said.
How to use $23bn forex reserves to stablise exchange rate, by Uwaleke
(NAN)
Business
Fuel prices to fall as global cost of crude drops
Fuel prices to fall as global cost of crude drops
Nigerians are expected to pay less for Premium Motor Spirit, also known as petrol, as the price of Brent dropped to $65 per barrel from $69.90 per barrel in the global market.
The price of Brent is used globally to benchmark the prices of other crudes. major feedstocks – and by extension petroleum products prices.
The development was partly fueled by the US President Donald Trump’s announcement of sweeping new tariffs.
This was reportedly fueled by the decision of the Organisation of Oil Producing Countries and its allies to increase oil output by 410,000 barrels per day starting May 2025 far above the 135,000 barrels originally planned.
A report by Vanguard stated that the depot prices of Mainland, A.Y.M and Ever have dropped to N918 per litre from N920 and N919 from N920 per litre, respectively.
Also, the depot prices of Prudent, Eterna and Soroman have dropped to N912 from N913 per litre, N897 from N900 per litre and N915 from N916 per litre, respectively.
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According to petroleumprice.ng, oil marketers would likely adjust their pump prices downwards as they get new supplies this week, if the current market condition persists.
The Vanguard report quoted the President of Petroleum Products Retail Outlets Owners Association of Nigeria, PETROAN, Billy Gillis-Harry, expressed optimism that the development would culminate in low costs of fares, goods and services if the fundamentals persist in the market.
Business
CBN injects $197.71m to boost FX as Trump trade tariff spreads
CBN injects $197.71m to boost FX as Trump trade tariff spreads
The Central Bank of Nigeria (CBN) has supplied $197.71 million to the foreign exchange market through sales to authorised dealers.
The apex bank’s director of financial markets department, Omolara Duke, disclosed this in a statement on Saturday in Abuja.
She noted that the intervention aligned with the apex bank’s ongoing commitment to ensuring adequate liquidity and supporting orderly market functioning.
According to Ms Duke, the move reflects the CBN’s broader objective of fostering a stable, transparent, and efficient foreign exchange market.
She said the decision was largely influenced by recent movements in the FX market, driven by the announcement of new U.S. tariffs and declining crude oil prices.
“The CBN has observed recent fluctuations in the foreign exchange market between April 3 and April 4.
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“These are reflective of broader global macroeconomic shifts currently impacting several emerging markets and developing economies.
“These developments stem from the recent announcement by the United States government of new import tariffs on goods from several economies, triggering a period of adjustment across global markets,” she said.
Ms Duke said crude oil prices had dropped by over 12 per cent, falling to approximately $$65.50 per barrel, introducing new challenges for oil-exporting nations like Nigeria.
She said the CBN would continue monitoring global and domestic market conditions.
Ms Duke expressed confidence in the resilience of Nigeria’s foreign exchange framework, which is designed to adjust in line with evolving economic fundamentals.
“All authorised dealers are reminded to strictly adhere to the principles outlined in the Nigerian FX Market Code and uphold the highest standards in their dealings with clients and market counterparties,” she said.
CBN injects $197.71m to boost FX as Trump trade tariff spreads
(NAN)
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