Nigeria’s business environment over-regulated, NESG laments – Newstrends
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Nigeria’s business environment over-regulated, NESG laments

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Nigeria Economic Summit Group has lamented the slow economic growth rate, attributing this to over-regulated business space in the country.

NESG also said in its report of the 26th Nigeria Economic Summit that all tiers of government must work in harmony towards economic recovery.

NESG Chairman, Mr Asue Ighodalo, while submitting the report to the Minister of Finance, Budget and National Planning, Mrs Zainab Ahmed, said attaining economic recovery could be achieved by expanding economic opportunities for all Nigerians through sound policies, strong institutions, and responsible public investments, especially pro-poor investments.

He urged governments at all levels to unlock more private sector participation by removing sectoral rigidity inhibiting the potential of businesses to drive economic growth.

Other areas listed by NESG for urgent action are its challenge to the civil society groups to mobilise Nigerians to take civic responsibility and holding leaders accountable.

“The summit discussions were dimensioned around five sub-themes: mapping the future; new trends, new opportunities, new horizons; embracing technology and innovation; building resilience; and charting the path to recovery,” NESG chairman said

He urged the government to implement policies that would lead to macroeconomic stability, economic growth that would outpace population growth, create jobs, stabilise inflation and reduce poverty.

He also advised the FG to unify forex rates into a single and market-driven window.

The NESG called for an improvement in coordination of fiscal, monetary and structural policies, aggressively attract foreign direct investment (FDI), deregulation of the oil and gas sector by passing the Petroleum Industry Bill (PIB); tightening fiscal coordination and intensify public investments in social sectors amongst others.

Responding, the minister promised to deliver the recommendations to President Muhammadu Buhari.

She said, “We have noted your detailed recommendations. We will transmit your recommendations to Mr President who will, in turn, present them to the Federal Executive Council.

“Appropriate agencies of the government would be tasked with the implementation of your recommendations.”

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CBN raises commercial banks’ capital base to N500bn

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CBN raises commercial banks’ capital base to N500bn

The Central Bank of Nigeria (CBN) has increased the minimum capital requirements for commercial, merchant and non-interest banks.

The CBN increased the capital base for commercial banks with international licences to N500 billion, while national and regional financial institutions’ capital bases were fixed at N200 billion and N50 billion, respectively.

This was announced in a statement on Thursday, noting that the increase was due to prevailing macroeconomic challenges and headwinds.

The statement signed by Haruna Mustafa, director, financial policy and regulation department at the CBN.

It said the upward review would enhance the banks’ resilience, solvency and capacity to continue to support the growth of the Nigerian economy.

Also, the CBN raised the merchant bank minimum capital requirement to N50 billion for national licence holders.

The financial regulator said the capital base for national and regional non-interest banks is N20 billion and N10 billion, respectively.

To meet the minimum capital requirements, the CBN advised banks to consider the injection of “fresh equity capital through private placements, rights issue and/or offer for subscription”.

The CBN also suggested merger and acquisition (M&A), as well as upgrade or downgrade of licences.

“The minimum capital specified above shall comprise paid-up capital and share premium only. For the avoidance of doubt, the new capital requirement shall not be based on shareholders’ funds,” it stated

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Tinubu orders creation of single-digit tax system

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Tinubu orders creation of single-digit tax system

President Bola Tinubu has directed a creation of a single-digit tax system with a maximum of nine taxes for a company or an individual.

Executive Chairman of the Federal Inland Revenue Service (FIRS), Zacch Adedeji, disclosed this in Abuja while speaking with the management team of Guinness Nigeria who paid him a visit.

A statement on Wednesday by Dare Adekanmbi, Special Adviser on Media to the FIRS chairman, quoted Adedeji as saying, “The President gave a directive that he wants a single-digit tax in the country, meaning that the maximum number of taxes we will have after the work of the Presidential Committee on Fiscal Policy and Tax Reforms will be nine taxes.”

The statement added that the plan was aimed at having a conducive environment “created for businesses to flourish and grow the economy.”

 

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Naira gains further against dollar

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Naira gains further against dollar

The Naira rose further in the official market on Tuesday, trading at N1,382.95 to the dollar.

According to data from the FMDQ’s official trading portal, the Naira rose by N25.09, or 1.78 percent, from the previous day’s rate of N1,408 versus the dollar.

On Tuesday, total turnover was $245.58 million, up from $222.15 million on Monday.

Meanwhile, at the Investor’s and Exporters (I&E) window, the Naira traded between N1,486 and N1,300 against the dollar.

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The News Agency of Nigeria (NAN) reports that the Central Bank of Nigeria (CBN) had, earlier on Tuesday at its 294th Monetary Policy Committee (MPC), raised Monetary Policy Rate (MPR) by 200 basis points from 22.75 per cent to 24.75 per cent.

CBN governor Yemi Cardoso said that was meant to tackle the nation’s rising inflation.

Naira gains further against dollar

(NAN)

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