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$2.2bn World Bank loan, CNG initiative launch… 7 business stories to track this week

$2.2bn World Bank loan, CNG initiative launch… 7 business stories to track this week
April 22
07:59 2024

Here are the top seven business stories you need to track this week — April 22 to April 26.

NIGERIA SECURES $2.25BN WORLD BANK LOAN

Wale Edun, minister of finance and coordinating minister of the economy, says the country has qualified for a World Bank loan of $2.25 billion.

Edun spoke during a press conference held at the annual meetings of the International Monetary Fund (IMF) and World Bank Group on April 20.

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The package, he said, was approved by the board of directors of the World Bank, and offers a 40-year term, a 10-year moratorium, and a one percent interest rate.

’10 PERCENT TAX-TO-GDP RATIO SHOWS NIGERIANS DON’T PAY TAXES’

Wale Edun also said Nigeria’s tax-to-gross domestic product (GDP) ratio is low.

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Speaking at the International Monetary Fund (IMF)/World Bank spring meeting, Edun said the contribution of tax to the country’s GDP is 10 percent.

“The starting point really is that 10% to GDP, you can see that… should I say it?… people are not paying their taxes? So, there really is a lot of room without actually hiking tax rates,” the minister said.

Edun also said taxation without necessarily increasing the rate of taxes but improving the efficiency of administration and collection is the way to shore up government revenue in a non-inflationary way.

TINUBU LAUNCHES NATIONAL SINGLE WINDOW (NSW) PROJECT

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President Bola Tinubu has inaugurated the national single window (NSW) project to boost trade in Nigeria.

Speaking during the inauguration of the project and the steering committee members on April 16 in Abuja, Tinubu said the project is estimated to yield $2.7 billion per year for the country.

He said it was time for Nigeria to join countries such as Singapore, Korea, Kenya and Saudi Arabia, which have experienced significant improvement in trade efficiency upon adopting single window systems.

The NSW is an electronic portal linking all agencies and players in import and export processes to an integrated platform – but domiciled at the Federal Inland Revenue Service (FIRS).

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NSW aims to facilitate trade by allowing international traders to submit information to a single agency in a single location to obtain all necessary permits and clearances.

DANGOTE REFINERY SLASHES DIESEL PRICE TO N1,000 PER LITRE

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On April 16, Dangote Petroleum Refinery revealed its decision to further reduce the diesel price from N1,200 to N1,000 per litre.

The refinery has previously slashed the price of diesel from N1,600 to N1,200. The refinery has disclosed that products were available in substantial quantities and were being evacuated by sea and road.

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Despite the price reduction, some retail stations are yet to adjust their diesel prices.

Abubakar Maigandi, president, Independent Petroleum Marketers Association of Nigeria (IPMAN), said marketers still have old stocks, hence the current price of the product.

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CBN MEETS IMTOS, SETS UP TASK FORCE TO DOUBLE REMITTANCE INFLOWS

The Central Bank of Nigeria (CBN) says it has collaborated with International Money Transfer Operators (IMTOs) to collectively commit to doubling remittance flows through formal channels into the country.

Yemi Cardoso, CBN governor, spoke on April 20 during a press conference at the ongoing annual meetings of the International Monetary Fund (IMF) and World Bank Group.

Cardoso also said the apex bank has set up a task force to address bottlenecks hindering flows through formal channels.

He said the task force would report directly to him.

Also, Cardoso said the CBN is doing everything possible to achieve a stable foreign exchange (FX) rate.

He said the financial regulator is also working to ensure that the exchange rate finds its adequate price discovery level.

FG TO LAUNCH CNG INITIATIVE BEFORE MAY 29

The federal government says it will launch the compressed natural gas (CNG) initiative ahead of the first anniversary of President Bola Tinubu’s administration on May 29.

The presidential CNG institute (PCNGI) committee is partnering with the private sector to deliver the promise of the initiative.

Also, the federal government said the deployment of CNG buses and tricycles, along with a goal of one million natural gas-powered vehicles by 2027, will significantly transition the transportation industry, reducing the use of expensive diesel and petrol.

‘FG NOW SPENDS N600BN MONTHLY ON PETROL SUBSIDY’

Gabriel Ogbechie, chief executive officer (CEO) of Rainoil Limited, claims the federal government (FG) now spends N600 billion on petrol subsidy monthly.

Ogbechie spoke on April 17 during the Stanbic IBTC Energy and Infrastructure Breakfast Session held in Lagos.

According to Ogbechie, the federal government resumed petrol subsidies following the devaluation of the naira in the foreign exchange (FX) market.

He said with the current daily consumption at 40 million litres and the FX rate at N1,300, the government’s subsidy per litre on petrol falls between N400 and N500.

Ogbechie said the Nigerian National Petroleum Company (NNPC) being the only petrol importer in the country proves the continued existence of subsidy.

He urged the government to prioritise modular refining to improve self-sufficiency in petroleum products.

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