Business
CBN extends validity of old N1000, N500, N200 notes indefinitely
CBN extends validity of old N1000, N500, N200 notes indefinitely
The Central Bank of Nigeria (CBN) says the old naira notes will remain legal tender beyond December 31, 2023.
The CBN said in a statement on Tuesday that the validity of the old N1000, N500 and N200 had been extended indefinitely.
The statement was signed by its Director of Corporate Communications, Isa AbdulMumin.
The Supreme Court in March 2023 extended the deadline to phase out the old naira notes to December 31, 2023.
Earlier, the apex bank had issued a statement informing Nigerians that the old naira notes remain legal after reports of anxiety over its legality.
It said on Tuesday that it has extended “the legal tender status deadline of the old design of N200, N500 and N1,000 denominations, ad infinitum”.
It said, “This is in line with international best practices and to forestall a repeat of earlier experiences.
“Thus, all banknotes issued by the Central Bank of Nigeria (CBN), in accordance with Section 20(5) of the CBN Act 2007, will continue to remain legal tender, ad infinitum, even beyond the initial December 31, 2023, deadline.
“The Central Bank of Nigeria is working with the relevant authorities to vacate the subsisting court ruling on the same subject.
“Accordingly, all CBN branches across the country will continue to issue and accept all denominations of Nigerian banknotes, old and redesigned, to and from deposit money banks (DMBs).
“The general public is enjoined to continue to accept all Naira banknotes (old or redesigned) for day-to-day transactions and handle these banknotes with utmost care.”
Business
Just in: Governors reject VAT increase, back passing of Tax Reform Bills
Just in: Governors reject VAT increase, back passing of Tax Reform Bills
The Nigeria Governors’ Forum (NGF) has rejected the move to increase Value Added Tax (VAT) and proposed an “equitable” sharing formula for the collected revenue.
The governors however expressed support for the ongoing legislative process of the Tax Reform Bills.
These were the outcomes of a meeting between the NGF and the Presidential Tax Reform Committee, convened on Thursday to discuss critical national issues, including the reform of Nigeria’s fiscal policies and tax system.
A statement signed by the Chairman of the Forum and Governor of Kwara State, Abdulrahman AbdulRazaq said, “We, members of the Nigeria Governors’ Forum (NGF) and presidential tax reform committee, convened on the 16th of January 2025 to deliberate on critical national issues, including the reform of Nigeria’s fiscal policies and tax system, and arrived at the following resolutions:
“1. The Forum reiterated its strong support for the comprehensive reform of Nigeria’s archaic tax laws. Members acknowledged the importance of modernizing the tax system to enhance fiscal stability and align with global best practices.
“2. The forum endorsed a revised Value Added Tax (VAT) sharing formula to ensure equitable distribution of resources: 50% based on equality, 30% based on derivation, and 20% based on population.
“3. Members agreed that there should be no increase in the VAT rate or reduction in Corporate Income Tax (CIT) at this time, to maintain economic stability.
“The forum advocated the continued exemption of essential goods and agricultural produce from VAT to safeguard the welfare of citizens and promote agricultural productivity.
“4. The meeting recommended that there should be no terminal clause for TETFUND, NASENI, and NITDA in the sharing of development levies in the bills.
“5. The meeting supports the continuation of the legislative process at the National Assembly that will culminate in the eventual passage of the Tax Reform Bills.”
Business
FG proposed 30-60% increase in telecom tariff – Minister
FG proposed 30-60% increase in telecom tariff – Minister
The federal government has proposed a 30-60% increase in telecom tariffs to sustain the critical telecommunications sector while ensuring affordability for Nigerians.
Rejecting demands by operators for a 100 per cent hike, Dr. Tijani explained that the government was considering a more moderate increase to strike a balance between affordability for consumers and the sustainability and continued growth of the sector.
He said: “The telecommunications sector contributes over 16 per cent to our GDP, employs thousands of Nigerians, and is essential to the nation’s digital economy. However, it is crucial to ensure that services remain accessible while maintaining the sector’s viability.”
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Announcing key updates from the ministry, Dr. Tijani emphasized that the tariff review would prioritize consumer interests and sector sustainability.
He said the Nigerian Communications Commission, NCC, was overseeing the process, with recommendations based on data-driven analysis.
On rural connectivity investments, he said: “To address connectivity challenges in underserved areas, the government is deploying 90,000 kilometers of fiber-optic networks and building telecom towers in remote regions through Special Purpose Vehicles, SPVs.”
Dr. Tijani also addressed Nigeria’s leadership in global telecommunications infrastructure resilience, citing recent efforts to manage submarine cable disruptions.
He reiterated the government’s commitment to harmonizing taxes and declaring telecom infrastructure as critical national assets.
Assuring Nigerians of improved service delivery, the minister said operators would be held accountable for disruptions.
Business
Nigeria’s inflation rises to 34.8% due to high December demand
Nigeria’s inflation rises to 34.8% due to high December demand
Nigeria’s inflation rate rose to 34.8 per cent in December from 34.6 per cent in November, the fourth consecutive increase.
According to the latest report by the National Bureau of Statistics (NBS), the increase was due to December festive period’s rise in demand for goods and services.
The details are contained in the NBS Consumer Price Index report for December 2024 obtained by newstrends on Wednesday.
The NBS said, “In December 2024, the headline inflation rate was 34.80% relative to the November 2024 headline inflation rate of 34.60%.
“Looking at the movement, the December 2024 headline inflation rate showed a marginal increase of 0.20% compared to the November 2024 Headline inflation rate.
“This was due to December festive period increases in demand for goods and services.
“On a year-on-year basis, the headline inflation rate was 5.87% higher than the rate recorded in December 2023 (28.92%).
“This shows that the headline inflation rate (year-on-year basis) increased in December 2024 compared to the same month in the preceding year (i.e. December 2023).
“On the contrary, the month-on-month basis, the headline inflation rate in December 2024 was 2.44%, which was 0.20% lower than the rate recorded in November 2024 (2.64%).
“This means that in December 2024, the rate of increase in the average price level is slightly lower than the rate of increase in the average price level in November 2024.”
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