Price of Nigeria's brand of crude hits $80.70 per barrel – Newstrends
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Price of Nigeria’s brand of crude hits $80.70 per barrel

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The price of Bonny Light, Nigeria’s brand of crude oil, has risen to $80.73 per barrel, from $77.86, barely 24 hours after the Organisation of Petroleum Exporting Countries increased the output quota for its member and non-member nations.

Following the OPEC decision, Nigeria’s oil output allocation would rise to 1.649 million barrels per day (bp/d) in November 2021 from 1.5 mb/d, excluding Condensate.

The latest rise in price means the nation, which had based its 2021 budget on $57 per barrel and 1.8 million barrels per day; mb/d, including Condensate, which it has the capacity to produce between 300,000 – 400,000 bp/d, would generate more funds as excess revenue in the remaining part of 2021.

But some analysts argued that it would be impossible for the nation to meet the new quota in a short term, apparently because of pipeline vandalism and oil theft in the Niger Delta.

Speaking on the development, a former Chairman, Petroleum Technology Association of Nigeria (PETAN), Bank-Anthony Okoroafor, said, “It is a good development for Nigeria as a country with much dependent on income generated from oil. It is achievable, but we need to look at our pipelines very well.

Vandalism is on the rise and this has reduced our production volume.”

Also speaking,  Prof. Wumi Iledare, former President, Nigerian Association of Energy Economics (NAEE), said, “To some extent, it is good news to oil exporters like Nigeria; an increased revenue in the short run if production capacity supports output demand. “Unfortunately, the benefits may be marginal because the costs of import of petroleum products are bound to rise putting pressure on Forex and devaluation of Naira relative to dollars. So it is more of sadness and joy dynamics

“As long as this energy transition to zero carbon is premised on divesting from fossil fuels, crude oil prices would continue to rise to allocate more oil to the future.”

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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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