CIT report, e-gates inauguration… business stories to track this week

Here are the seven top business stories you need to track this week — May 27  to May 31

CIT, TELECOM DATA REPORT

The Nigerian Bureau of Statistics (NBS) is expected to release reports on company income tax (CIT) and sectoral distribution of value-added tax for the first quarter (Q1) this week.

The bureau also intends to publish reports on road transport, pension assets and membership, as well as telecoms data: active voice and internet per state, porting, and tariff information, for the same quarter of the year.

‘UAE VISA BAN HAS BEEN RESOLVED, ANNOUNCEMENT IMMINENT’

The federal government, on May 22, said the United Arab Emirates (UAE) visa ban on Nigerians has been resolved.

Festus Keyamo, minister of aviation and aerospace development, disclosed in a statement reacting to criticisms from Osita Chidoka, an ex-minister of aviation.

Keyamo said resolving the diplomatic rift between the two countries is important because several Nigerians visit the UAE and invest there.

The minister added that an announcement on the development was imminent.

NIGERIA’S GDP GROWTH RATE SLOWED BY 2.8% | INTEREST RATE NOW 26.25%

The NBS, on May 24, released Nigeria’s gross domestic product (GDP) report showing that it grew by 2.98 percent in the first quarter (Q1) of 2024.

The growth rate, the bureau said, is higher than the 2.31 percent recorded in the same quarter in 2023 but lower than the 3.46 percent recorded in the fourth quarter (Q4) of last year.

According to the bureau, the performance of the GDP in Q1 was driven mainly by the services sector, which recorded a growth of 4.32 percent and contributed 58.04 percent to the aggregate GDP.

On the flip side, the monetary policy committee of the Central Bank of Nigeria (CBN) raised interest rates from 24.75 percent to 26.25 percent on May 21.

‘AJAOKUTA LIGHT MILL SECTION AT FINAL STAGE OF RAISING N35BN TO RESTART’

Shuaibu Audu, minister of steel development, says the ministry has reached an advanced stage of raising more than N35 billion required to restart the light mill section (LMS) of the Ajaokuta Steel Company.

Audu spoke at the ministerial sectoral update on the performance of President Bola Tinubu’s administration in one year, held on May 23 in Abuja.

He said a presidential approval had been given to raise the amount from a local financial institution, as part of the administration’s resolve to raise the economic profile of Nigeria.

The minister also said the LMS is critical in bolstering industrialisation in Nigeria as it can produce 400,000 metric tonnes of iron rods per annum.

‘HOME DELIVERY OF PASSPORTS TO START IN JUNE’

Olubunmi Tunji-Ojo, minister of interior, says home delivery of passports will start in June.

Tunji-Ojo spoke during the inspection of the electronic gates at the Murtala Mohammed International Airport’s new terminal in Lagos on May 24.

He said the home delivery scheme will not include every location to avoid overloading and damaging the system.

The minister said the Nigerian Immigration Service (NIS) would start programme in  Lagos, Port Harcourt, Kano, and Abuja.

According to Tunji-Ojo, for those in the diaspora, the service would begin in the United States and the United Kingdom, as a test run to ensure its effectiveness.

The minister also announced that the electronic gates (e-gates) at the Nnamdi Azikiwe International Airport  Abuja are almost 100 percent ready for inauguration.

BDCS TO REAPPLY FOR LICENCE AS CBN ISSUES UPDATED BDC GUIDELINES

On May 22, the CBN issued regulatory guidelines for bureau de change operations after consultation with stakeholders.

In the circular, all BDC operators were directed to reapply for new licences.

The CBN also directed the BDCs to meet the minimum capital requirement for the licence category they wish to apply to within six months, effective the date of the circular was issued.

According to the apex bank, tier-1 BDCs have a minimum capital base of N2 billion, while tier-2 BDCs must have a minimum capital base of N500 million.

‘NIGERIA’S CRUDE OIL OUTPUT CLOSE TO 1.7M BPD’

Mele Kyari, group chief executive officer (CEO) of the Nigerian National Petroleum Company (NNPC) Limited, says the country’s oil production volume is close to 1.7 million barrels per day (bpd).

Kyari spoke at a recent stakeholders’ engagement between the Nigerian Association of Petroleum Explorationists (NAPE) and the NNPC held in Lagos.

According to Kyari, Nigeria has the potential to produce two million barrels per day but “it is not possible today”.

This, he said, is due to oil theft and pipeline vandalism in the Niger Delta region.

Kyari attributed the increase in oil production during the COVID-19 period to the lockdown that forced oil thieves and pipeline vandals to shut down their illegal operations, and “go to sleep”.