Key Business Developments in Nigeria: Tax Reforms and Oil Decline

This week features key business stories including tax reforms by the House of Representatives, CBN’s fight against naira abuse, PenCom’s empowerment of PFAs, NERC’s establishment of a grid code review panel, a decline in Nigeria’s oil production, Renaissance Africa’s acquisition of SPDC, and CBN’s commitment to a 5% financing limit for the federal government.

This week, seven vital business stories are trending, including tax reforms and changes in oil production. On March 13, the House of Representatives adopted a finance committee’s report on tax reform bills, maintaining the VAT at 7.5%. This decision followed a public hearing amid opposition to proposed tax laws.

In financial governance, Olayemi Cardoso, Governor of the Central Bank of Nigeria (CBN), initiated a call for stricter regulations against illicit transactions after uncovering significant abuses of the naira through mysterious shopping behaviors in major cities. He emphasized that disrespecting the naira undermines its value and national identity, urging law enforcement to act against offenders.

The National Pension Commission (PenCom) has empowered pension fund administrators (PFAs) to expedite the approval of various retirement benefits without obtaining prior regulatory clearance from the agency. This initiative, effective from June 1, aims to facilitate quicker pension disbursements under Nigeria’s contributory pension scheme.

Additionally, the Nigerian Electricity Regulatory Commission (NERC) announced the establishment of a Grid Code Review Panel (GCRP) to enhance the operational efficiency of the power sector. The panel will assess proposed amendments to the grid code, which governs technical aspects of connecting to the national electricity grid, prior to seeking commission approval.

In the oil sector, OPEC reported Nigeria’s crude oil production fell to an average of 1.46 million barrels per day (bpd) in February, based on data from both member country reports and energy intelligence platforms. This decline signals ongoing challenges in the petroleum industry.

Furthermore, Renaissance Africa Energy Holdings has finalized the acquisition of Shell’s 100% stake in the Shell Petroleum Development Company of Nigeria. The renamed entity will henceforth operate as Renaissance Africa Energy Company Limited.

Lastly, Atiku Bagudu, Minister of Budget and Economic Planning, declared that the CBN will adhere to a 5% limit on ways and means financing for the federal government. This guideline aims to reinforce investor confidence regarding the government’s debt management in the upcoming fiscal year.

In summary, the week is marked by crucial developments including the House of Representatives’ tax reforms, CBN’s efforts against naira abuse, and new measures from PenCom and NERC to improve financial and energy sectors respectively. Notably, Nigeria’s crude oil production decline and the completion of a significant acquisition by Renaissance Africa Energy Holdings provide important insights into the current economic landscape. The government’s commitment to maintain fiscal responsibility is expected to bolster investor confidence amid these shifting dynamics.

Original Source: www.thecable.ng