Business

CBN to Customs: Adopt official forex rate for import duty

Published

1 year ago

February 23, 2024

Trends Admin

CBN to Customs: Adopt official forex rate for import duty

CBN Governor, Olayemi Cardoso

The Central Bank of Nigeria has told the Nigeria Custom Service to adopt official foreign exchange rate on the date of opening Form M for importation of goods.

This, it said on Friday, should be the foreign exchange rate for Import Duty Assessment with effect from February 26, 2024.

This is contained in a circular to the Customs, all authorised dealers and the general public.

The statement was signed by its Director, Trade and Exchange Department, Dr. Hassan Mahmud.

The advice, it said, was based on the concerns expressed by importers of goods and services on the irregular changes in the import duty assessment levies applied by the NCS.

This was said to have built uncertainty around the pricing structure of goods and services in the economy and creating abnormal increases in the final sale prices of items.

The CBN noted that the rate would remain valid until the date of termination of the importation and clearance of goods by importers.

It said, “Following the liberalization of the FX market on Willing Buyer – Willing Seller trading principle, the CBN has noted the concerns of importers of goods and services in the irregular changes in the Import Duty Assessment levies applied by the NCS.

“These developments have further built uncertainties around the pricing structure of goods and services in the economy and creating abnormal increases in the final sale prices of items, which is largely driven by uncertainties, rather than traditional market fundamentals, with implications to near term inflation trend.

“To this effect, the CBN wishes to advise that the NCS and other related parties adopt the closing FX rate on the date of opening Form M for the importation of goods, as the FX rate to be used for Import Duty Assessment.

“This rate remains valid until the date of termination of the importation and clearance of goods by importers.

“This would enable the NCS and the importers to effectively plan appropriately and reduce the uncertainties around varying daily exchange rate in determining

their revenue or cost structure, respectively.

“Therefore, effective 26th February 2024, the closing rate on the date of opening of Form M for the importation of goods and services would be the rates that would apply for the assessment of import duty.

“This supersedes the requirements of Memorandum 9, J (2) of the Central Bank of Nigeria Foreign Exchange Manual. (Revised edition), 2018.

“While the CBN is mindful of the initial volatility and price distortions in the aftermath of the FX market liberalization, the bank is confident that these reforms, would in the medium term, ensure stability in the market and entrench market confidence necessary to attract investment capital for the growth and development of the Nigerian economy.”

Related Topics:CBN Featured forex import duty NCS

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Meta paid fines in other countries, avoid paying in Nigeria – FCCPC

Published

2 days ago

May 4, 2025

Trends Admin

Meta paid fines in other countries, avoid paying in Nigeria – FCCPC

The Federal Competition and Consumer Protection has accused Meta, the parent company of Facebook and Instagram, of blackmail after threatening to suspend its operations in Nigeria to avoid paying a $290 million fine.

The FCCPC’s director of corporate affairs, Ondaje Ijagwu, in a statement on Saturday, described the company’s threat as a calculated move to induce a negative public reaction and potentially pressure the commission to reconsider its decision.

The commission slammed Meta for threatening to halt operations in Nigeria, but complied with fines imposed by other countries over similar offences.

“Interestingly, Meta had been fined for similar breaches in Texas ($1.5 billion) and only recently was asked to pay $1.3 billion for violating E.U. Data Privacy Rules. Elsewhere in India, South Korea, France and Australia, Meta had faced varying penalties for similar breaches. But Meta never resorted to the blackmail of threatening to exit those countries. They obeyed,” FCCPC said.

Meta threatened to shut down Instagram and Facebook services in Nigeria after the federal government imposed fines totalling $290 million for allegedly violating the Federal Competition and Consumer Protection Act (FCCPA) and the Nigerian Data Protection Regulation (NDPR) on Facebook and WhatsApp.

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The executive chairman of the FCCPC, Adamu Abdullahi, had, in July 2024, accused Meta of breaching local consumer and data protection regulations through its illegal data-sharing practices before handing out the fine.

The Competition and Consumer Protection Tribunal upheld the fine on April 25. It rejected the tech giant’s appeal against the “unrealistic” regulatory demand, which the FCCPC insisted must be paid by the end of June 2025.

“The applicant may be forced to effectively shut down the Facebook and Instagram services in Nigeria to mitigate the risk of enforcement measures,” the tech giant said in its appeal.

However, FCCPC urged Meta Parties to comply with Nigerian law, stop exploiting consumers, change their practices to meet the country’s standards and respect consumer rights consistent with international best practices.

The commission added that Meta’s threats would not absolve the company of liabilities for the outcome of a judicial process.

“The recent affirmation of FCCPC’s final order by the Competition and Consumer Protection Tribunal requires Meta Parties to take steps to comply with Nigerian law, stop exploiting Nigerian consumers, change their practices to meet Nigerian standards and respect consumer rights, consistent with international best practices.

“Threatening to leave Nigeria does not absolve Meta of liabilities for the outcome of a judicial process,” FCCPC said.

Meta paid fines in other countries, avoid paying in Nigeria – FCCPC

Business

EFCC arrests 3 ex-NNPC MDs, finds N80bn in one personal account

Published

3 days ago

May 3, 2025

Trends Admin

Updated: EFCC arrests 3 MDs of govt refineries, finds N80bn in one personal account

The Economic and Financial Crimes Commission (EFCC) has arrested former managing directors and senior officials of the Port Harcourt Refining Company, Warri Refining and Petrochemical Company, and Kaduna Refining and Petrochemical Company over alleged financial mismanagement linked to the multi-billion dollar rehabilitation of the refineries.

Investigations are centred on $2,956,872,622.36 allocated for refurbishment projects: $1,559,239,084.36 for the Port Harcourt facility, $740,669,600 for Kaduna, and $656,963,938 for Warri.

Sources within the Nigerian National Petroleum Company Limited revealed that investigators traced N80 billion to accounts belonging to one of the dismissed MDs.

Sector experts and operators have criticized NNPCL for misleading the public about the state of the refineries, citing persistent underperformance since the Port Harcourt and Warri plants restarted in November and December 2024.

NNPCL, responsible for managing the nation’s three state-owned refineries, had reactivated operations at Port Harcourt and Warri late last year following prolonged shutdowns. Yet, within weeks, the Warri refinery halted again due to safety issues, while Port Harcourt has been running below 40% capacity since its relaunch.

On Tuesday, the dismissal of the MDs overseeing the three refineries alongside several other senior officials, including Bala Wunti, former chief of the National Petroleum Investment Management Services, was reported.

A senior EFCC official confirmed that the arrests are part of a probe into the massive funds allocated for the plants’ quick rehabilitation.

“We are investigating the money that was released for the rehabilitation of all three refineries—money disbursed in recent times. All the principal officers within that time frame are being invited. Some have been arrested already, and we are still on the lookout for others. Nigerians are interested in seeing our refineries work. We are asking: where is the money, and what has happened to the refineries?” the official stated.

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Another EFCC source disclosed that one of the former MDs had been in custody for nearly a week, with approximately N80 billion uncovered in his accounts. “Large amounts have been discovered in his accounts. About N80bn has so far been discovered in his various accounts. The way things are going, it may be bigger than Emefielegate,” the source said.

Documents obtained by our correspondent show the EFCC’s investigation extends to Mele Kyari, immediate past Group Chief Executive Officer of NNPCL, and 13 other ex-top executives. The commission’s letter requested certified records of salaries and benefits for these officials.

NNPCL spokesperson Olufemi Soneye did not respond to multiple enquiries regarding the allegations.

Industry insiders have raised fresh concerns about the refineries’ viability, pointing to longstanding structural issues and a lack of transparency in the rehabilitation process. On Tuesday, The PUNCH reported the Warri refinery’s shutdown following a $897 million revamp, while the $1.5 billion Port Harcourt plant struggles at under 40% production.

Energy analyst Kelvin Emmanuel criticized the government’s handling of the situation, describing the televised recommissioning of the facilities as “a charade.”

“For months, I had said that Warri, Port-Harcourt, and Kaduna were never going to come back into operation and that what Nigerians saw on television as the commissioning was just a charade,” Emmanuel said.

He questioned the rationale behind the multi-billion dollar rehabilitation efforts, arguing that the funds could have been used to build a new refinery instead.

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Similarly, another expert, Dan Kunle, decried the handling of the projects, alleging the government bypassed the original Japanese contractors over security concerns, leading to inflated costs and poor outcomes.

“Why did we avoid Japan? Why did we go around when a sovereign authority like Nigeria could not convince Japan to come and fix the refinery? And the same Japanese company is in NLNG doing contracts,” Kunle said.

Meanwhile, the Independent Petroleum Marketers Association of Nigeria expressed frustration over the inability to lift products from the Warri refinery months after its inauguration.

IPMAN Delta chairman, Harry Okenini, lamented: “Since the inauguration of the rehabilitated Warri refinery on January 5, 2025, there has been no green light for IPMAN to lift petroleum products from the facility.”

Adding to the refinery’s challenges, support staff at the Warri plant have threatened to commence an indefinite strike on May 5, protesting poor pay and employment conditions.

Support staff leader, Dafe Ighomitedo, stated: “Workers were promised an improved salary structure upon the refinery’s restart, but that promise has not been fulfilled.”

Calls for a full probe into the refineries have grown louder, with the Petroleum Products Retail Outlet Owners Association of Nigeria signaling plans to reassess the plants’ operations.

PETROAN president, Billy Gillis-Harry, said: “We went home with the fact that we saw the refineries working and the furnaces were lighting up. But if today they are not working, then, of course, PETROAN probably needs to revisit and check what happened and what didn’t happen, which we are going to do.”

Updated: EFCC arrests 3 MDs of govt refineries, finds N80bn in one personal account

(PUNCH)

Business

Meta threatens to cut off Facebook in Nigeria

Published

3 days ago

May 3, 2025

Trends Admin

Meta threatens to cut off Facebook in Nigeria

People in Nigeria may lose access to Facebook and Instagram after their parent company, Meta said it faced large fines and “unrealistic” regulatory demands from the Nigerian authorities.

Last year, three Nigerian oversight agencies imposed fines on the US-based social media giant, totalling more $290 million (£218m) for violating various laws and regulations.

Meta was unsuccessful in a recent attempt to challenge the decisions in the Federal High Court in Abuja.

“The applicant may be forced to effectively shut down the Facebook and Instagram services in Nigeria in order to mitigate the risk of enforcement measures,” the company noted in the court papers.

Meta also owns WhatsApp, but it did not mention the messaging service in its statement.

The High Court has given the company until the end of June to pay the fines.

The BBC has asked Meta to outline what its next steps will be but has not yet received a response.

Facebook is by far the most popular social media platform in Nigeria and is used by tens of millions in the country for daily communication and sharing news. It is also a vital tool for many of Nigeria’s small online businesses.

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In July last year, Meta was asked to pay three fines: The Federal Competition and Consumer Protection Commission (FCCPC) imposed a $220 million fine for alleged anti-competitive practices, the advertising regulator fined the company $37.5 million over unapproved advertising, while the Nigerian Data Protection Commission (NDPC) alleged that Meta had violated data privacy laws and fined it $32.8 million.

The chief executive officer of the FCCPC, Adamu Abdullahi, said investigations carried out in conjunction with the data commission between May 2021 and December 2023 revealed “invasive practices against data subjects/consumers in Nigeria” but was not specific about what these were.

In its court submission, Meta said its “primary concern” was with the data commission, which it accused of “misinterpreting” data privacy laws.

Specifically, the commission demanded that Meta should seek prior approval before transferring any personal data out of Nigeria – a condition the company called “unrealistic.”

The data commission also imposed other demands.

Meta was told it must provide an icon linking to educational videos about data privacy risks. This would be content created, in collaboration with government-approved educational institutions and non-profit organisations.

The NDPC insisted that these videos highlighted the dangers of “manipulative and unfair data processing” that could expose Nigerian users to health and financial risks.

Meta described NDPC’s demands as unfeasible, saying the agency has failed to “properly interpret the laws guiding data privacy.”