Crypto firms licensing, Q2 GDP report… business stories to track this week

Here are the seven top business stories you need to track this week — August 26 to August 30.

NBS’ Q2 GDP REPORT

The Nigerian Bureau of Statistics (NBS) is expected to release the gross domestic product (GDP) report for the second quarter (Q2) 2024 on August 26.

In the first quarter of the year, Nigeria’s GDP grew by 2.98 percent.

The bureau also intends to publish reports on telecoms data: active voice and internet per state, porting and tariff information and capital importation for Q2 2024.

DMO OFFERS DOLLAR-DENOMINATED BOND FOR SUBSCRIPTION AT $1,000 PER UNIT 

The Debt Management Office (DMO) has offered a $500 million federal government bond for subscription at $1,000 per unit to interested investors.

The offer is a five-year domestic dollar bond due in 2029, at an interest rate of 9.75 percent per annum.

The organisation said the offer opens on August 19, noting that the closing date is August 30, and the settlement date is September 6.

Here are 15 things to know about the bond.

SEC TO LICENSE CRYPTOCURRENCY FIRMS 

The Securities and Exchange Commission (SEC) says it plans to license providers of virtual assets — including cryptocurrencies — to tap opportunities and protect investors as adoption rates surge in Nigeria.

Speaking during an interview with Bloomberg, Emomotimi Agama, SEC’s director-general, said the commission intends to issue first licences for digital service and tokenised assets this month.

In another news, SEC said the lack of proper identification of investors is a key factor contributing to unclaimed dividends.

Agama said technology would play a crucial role in addressing this challenge with the SEC working to ensure that investors are properly identified to facilitate the payment of dividends.

EDO REFINERY OBTAINS LICENCE TO COMMENCE OPERATIONS 

The management of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has issued an operational licence to Edo Refinery and Petrochemical Company Limited, Ologbo, Edo state.

During a ceremony on August 20, Farouk Ahmed, chief executive officer (CEO) of NMDPRA, handed the certificate to AIPCC Energy Limited, the parent company of Edo refinery.

The AIPCC said the operational licence is the final stage of approval from the regulatory authority, and this implies that the plant can now fully operate as a refinery.

AFTER DENYING RETURN OF SUBSIDY, NNPC FINALLY CONFIRMS PAYMENTS 

After denying the existence of petrol subsidy on August 19, the Nigerian National Petroleum Company (NNPC) Limited says the federal government owes it N7.8 trillion for petrol subsidy.

Umar Ajiya, the NNPC’s chief financial officer, during a media briefing on the company’s 2023 audited financial statements (AFS) in Abuja, said the company was only “taking care of the shortfall on petrol importation between it and the federation”.

Ajiya later told Bloomberg after the company announced its results, that NNPC is owed N7.8 trillion ($4.9 billion) by the government in subsidy debts from January to July.

He also said the government will allow NNPC to offset about N2.2 trillion it owes the country against the subsidy debt.

REMITTANCE INFLOW HIT $553 MILLION IN JULY 

The Central Bank of Nigeria (CBN) says it recorded remittance inflows of $553 million in July.

This is a 130 percent increase from the corresponding period in 2023, the CBN said in a statement, signed by Hakama Sidi Ali, its acting director of corporate communications.

The surge in diaspora remittance comes a month after the CBN granted eligible international money transfer operators (IMTOs) access to trade on the official foreign exchange (FX) window.

The move allowed the IMTOs to access naira liquidity in the official market.

NCC DIRECTS TELCOS TO BLOCK SIM CARDS FIVE MINUTES AFTER REPORTED STOLEN 

The Nigerian Communications Commission (NCC) has ordered all telecommunications companies (telcos) to block stolen subscriber identification module (SIM) cards within five minutes of receiving a report from subscribers.

NCC said any further usage should not be chargeable to the consumer from the moment the report is filed.

In a recent publication, titled, ‘Quality of Service Business Rules’, issued in August 2024, the regulator said telcos must ensure subscribers are attended to within 30 minutes of their arrival at service centre