Business

FG targets $201bn in taxes, duties from Lekki seaport

Published

3 years ago

May 5, 2022

Minister of Information, Alhaji Lai Mohammed

Minister of Information, Alhaji Lai Mohammed, has said the Lekki Deep Seaport when completed will make Nigeria regain the maritime business that it lost to ports in Togo, Cote d’Ivoire and Ghana.

According to the Minister, it would also be a big boost for Nigeria in its quest to take advantage of the implementation of the African Continental Free Trade Agreement (AfCFTA).

The minister who said this during a tour of the Lekki Deep Seaport, also estimated that over $201bn in taxes, royalties and duties would be generated for the Nigerian government when the port commences operations in the fourth quarter of 2022.

He said the aggregate impact of the Lekki Deep Sea Port put at $361bn in 45 years would be over 200 times the cost of building the port.

According to him, the deep seaport would be a game changer because of the impact it would have on the nation’s economy when completed.

“The investment is huge – $1.53bn on fixed assets and $800 million on construction. In addition, it will create 169,972 jobs and bring revenues totalling $201 billion to state and federal governments through taxes, royalties and duties.

“The direct and induced business revenue impact is estimated at $158 billion in addition to a qualitative impact on manufacturing, trade and commercial services sector,” he added.

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Speaking further, the minister said: “The Lekki Deep Sea Port, a build, own, operate and transfer concern, is a massive project, a game changer and a pace setter. It is the deepest sea port in Nigeria and West Africa, and that in itself is a unique advantage.

“A major advantage we have to leverage is transshipment. With this port, Nigeria will become a transshipment hub and the revenue we are currently losing to our neighboring countries will come here and that is big,” he said.

“As you know, this project is being done in phases. Phase one has reached 89 per cent and will be completed in September this year. The facilities here are first class. We have seven ships to shore cranes and 21 RTG cranes.

“No port in Nigeria currently has this. The excellent equipment is why this port can do 18,000 twenty-foot equivalent unit (teu), which is more than four times the number that can currently be handled by our other ports,” he averred.

Responding, the Managing Director, Lekki Deep Sea Port, Du Ruogang, said the port would change the economic landscape of Nigeria and West Africa at large.

He said the Lekki port would soon become a central hub for the West African region.

Also, the Executive Secretary, Nigerian Shippers Council, (NSC), Emmanuel Jime, described the port as a game changer for the Nigerian economy, but stressed the need for critical infrastructure to be developed to ease evacuation of cargoes out of the port.

“We need to map out modalities on how we can evacuate cargoes out of the port so that we do not have a replica of Apapa and Tin Can ports,” he said.

“This visit is the second we are making to this area within a month, coming after our trip to the Dangote Petroleum Refinery and Petrochemicals as well as the Dangote Fertilizer on April 3rd 2022,” he added.

Related Topics:Cargoes Duties Featured FG Lekki Port Neighbours Nigeria taxes

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Business

CBN permits BDCs to buy up to $25,000 FX weekly from NFEM

Published

23 hours ago

December 20, 2024

Trends Admin

CBN Governor, Olayemi Cardoso

CBN permits BDCs to buy up to $25,000 FX weekly from NFEM

The Central Bank of Nigeria (CBN) has granted Bureau de Change (BDC) operators temporary permission to purchase up to $25,000 weekly in foreign exchange (FX) from the Nigerian Foreign Exchange Market (NFEM).

This move, detailed in a circular dated December 19, 2024, is designed to meet seasonal retail demand for FX during the holiday period.

The circular was signed by T.G. Allu, on behalf of the Acting Director of the Trade and Exchange Department.

The arrangement will be in effect from December 19, 2024, to January 30, 2025.

Under the directive, BDCs may purchase FX from a single Authorized Dealer of their choice, provided they fully fund their accounts before accessing the market.

Transactions to occur at the prevailing NFEM rate

The transactions will occur at the prevailing NFEM rate, and BDCs are required to adhere to a maximum 1% spread when pricing FX for retail end-users.

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All transactions conducted under this scheme must be reported to the CBN’s Trade and Exchange Department.

The circular read in part:

“In order to meet expected seasonal demand for foreign exchange, the CBN is allowing a temporary access for all existing BDCs to the NFEM for the purchase of FX from Authorised Dealers, subject to a weekly cap of USD 25,000.00 (Twenty-five thousand dollars only).

This window will be open between December 19, 2024 to January 30, 2025.

“BDC operators can purchase FX under this arrangement from only one Authorized Dealer of their choice and will be required to fully fund their account before accessing the market at the prevailing NFEM rate. All transactions with BDCs should be reported to the Trade and Exchange department, and a maximum spread of 1% is allowed on the pricing offered by BDCs to retail end-users.”

The CBN assured the general public that PTA (Personal Travel Allowance) and BTA (Business Travel Allowance) remain available through banks for legitimate travel and business needs.”

These transactions are to be conducted at “market-determined exchange rates” within the NFEM framework.

This initiative reflects the CBN’s strategy to stabilize the FX market and manage seasonal surges in demand.

CBN permits BDCs to buy up to $25,000 FX weekly from NFEM

Business

Bitcoin price crashes to $95,000

Published

23 hours ago

December 20, 2024

Trends Admin

Bitcoin price crashes to $95,000

The cryptocurrency market experienced sharp declines after the United States Federal Reserve announced a 25-basis point rate cut.

Bitcoin’s price dropped from its record high of $108,267 to a multi-day low of $95,000 within 36 hours.

Amid this turmoil, Paper-hand traders are rushing to sell their assets while the experienced ones are taking advantage of the dip to increase their portfolios.

Bitcoin price drops after Federal Reserve announces rate cut

Bitcoin experienced a sharp decline after the Federal Reserve cut interest rates by 25 basis points for the third time this year.

The announcement led to Bitcoin’s price falling to a multi-day low of $95,000, marking a $13,000 drop within 36 hours.
This pullback followed a recent record high of $108,268 earlier in the week.
Federal Reserve Chair Jerome Powell suggested the central bank may halt further rate reductions due to recent Consumer Price Index (CPI) data.

“Today was a closer call, but we decided it was the right move,” Powell said during a press conference. While rate cuts typically benefit cryptocurrencies due to their risky asset status, this decision appears to have introduced caution among buyers.

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Crypto analysts predict that Bitcoin could face increased volatility in the short term. On-chain data reveals selling pressure has eased since November, but caution remains high. Buyers are closely monitoring Bitcoin’s support levels, particularly around the $100,000 mark, with potential resistance seen at $110,000 in the coming weeks.

Some buyers anticipate a “Santa Rally” a term used to describe the Bullish performance of bitcoin during the Christmas holidays. Historical data on this notion has given mixed outcomes.

In previous halving years, Bitcoin often surged during Christmas week, with price moves of 11% to 25% recorded in 2017, 2020, and 2024.

However, analysts warn that current market conditions, including macroeconomic uncertainty and a cautious Fed, could dampen such expectations.

United States Bitcoin strategic reserve in doubts 

Aside from the federal rate cuts announced by Powell. He also mentioned that the Central Bank is not allowed to hold Bitcoin unless approved by Congress.

This statement cast shadows of doubt on the proposed Bitcoin reserve by Donald Trump during his campaign days.
The President-Elect last week confirmed that his administration hopes to set up a strategic Bitcoin reserve and pilot the dominance of the US in the Global crypto space.
The FOMC chairman’s speech about the Central Bank not being able to hold Bitcoin cast doubts on the proposed Goal by the Donald Trump administration.

Bitcoin price crashes to $95,000

Business

Dangote reduces petrol price to ₦899.50/litre

Published

2 days ago

December 19, 2024

Trends Admin

Dangote Refinery

Dangote reduces petrol price to ₦899.50/litre

Dangote Petroleum Refinery has slashed the price of its petrol t to ₦899.50 per litre.

Making this known in a statement on Thursday was Anthony Chiejina, Chief Branding and Communications Officer of the Dangote Group.

He said, “Africa’s first privately-owned oil refinery, which previously lowered the price to N970 per litre on November 24, has now announced a new price of N899.50 per litre. This reduction is designed to ease transport costs during the festive period.”

Adding, Chiejina said, “In addition to the holiday discount, Dangote Petroleum Refinery is allowing consumers to purchase an additional litre of fuel on credit for every litre bought on a cash basis.”

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“To alleviate transport costs during this holiday season, Dangote Refinery is offering a holiday discount on PMS. From today, our petrol will be available at N899.50 per litre at our truck loading gantry or SPM. Furthermore, for every litre purchased on a cash basis, consumers will have the opportunity to buy another litre on credit, backed by a bank guarantee from Access Bank, First Bank, or Zenith Bank.”

The statement said the refinery was committed to making sure Nigerians have access to premium quality petroleum products that are competitively priced which are also environmentally and engine friendly.