February inflation, FX inflow… 7 business stories to track this week

Here are the seven top business stories you need to track this week — March 11 to March 15.

INFLATION REPORT

The Nigerian Bureau of Statistics (NBS) is expected to release the consumer price index (CPI) and inflation report for February 2024.

The rate of change in prices of goods and services in January 2024 rose to 29.9 percent — up from 28.92 percent in the previous month.

‘FOREIGN REMITTANCES HIT $1.3BN IN FEBRUARY’

On March 8, 2024, the Central Bank of Nigeria (CBN) said foreign exchange inflow into the country increased significantly in February 2024.

The CBN said the surge was driven by increased remittance payments by Nigerians overseas and the purchase of naira assets by foreign portfolio investors.

“The Bank’s data indicates that overseas remittances rose to US$1.3 billion in February 2024, more than four times the US$300 million received in January,” CBN said.

SUBMIT RETURNS OR FACE SANCTIONS, CBN WARNS MORTGAGE, MICROFINANCE BANKS 

The apex bank has also warned all development finance institutions (DFIs), primary mortgage banks (PMBs), and microfinance banks (MFBs) in the country regarding the late submission of regulatory returns.

CBN, in separate letters dated March 5, 2024, expressed strong disapproval concerning the ongoing issue of late submission of returns by banks on the financial analysis (FinA) system.

According to the regulator, FinA is an offsite surveillance automation system for online submission of returns by financial institutions to the CBN.

The CBN, citing Section 24 of the 2020 Banks and Other Financial Institutions Act, asked MFBs, PMBs, and DFIs to submit their return “before the 5th day after the month end”, threatening to sanction defaults.

FG THREATENS TO REVOKE DISCOs LICENCES

Adebayo Adelabu, minister of power, says the ministry will hold all electricity distribution companies accountable for their performance.

In a post on his X page on March 8, 2024, the minister said he invited the chief executives of Abuja Electricity Distribution Company (AEDC) and Ibadan Electricity Distribution Company (IBEDC), as well as the managing director of the Transmission Company of Nigeria (TCN).

He said the meeting was over the worsening power supply in their regions and to collectively find lasting solutions.

‘INFLATION DUE TO EIGHT YEARS OF PRINTING NAIRA’

Wale Edun, minister of finance and coordinating minister for the economy, said the hike in inflation rate is a result of eight years of printing naira not backed by production.

The minister spoke on Wednesday when he appeared before the senate committee on finance.

Edun said one of the major mistakes that brought the economy to its knees was printing money that did not correspond with improvement in tangible production during the administration of Muhammadu Buhari, former president, for eight years.

SEC TO ISSUE REGULATIONS FOR DIGITAL ASSETS PROVIDERS

The Securities and Exchange Commission (SEC) says it has developed new guidelines for licensing, registration, and screening of digital and virtual assets service providers (VASPs).

According to the CBN, VASPs are entities that conduct exchanges between virtual assets (cryptocurrencies) and fiat currencies, and transfers of virtual assets.

In a notice dated March 4, 2024, the commission said the new measures would ensure that “criminals are not registered as operators” in the capital market.

TINUBU SIGNS EXECUTIVE ORDER ON OIL AND GAS REFORMS 

On Wednesday, March 6, 2024, President Bola Tinubu signed three executive orders on the oil and gas sector to introduce fiscal incentives for related projects, reduce contracting costs and timelines, and promote cost efficiency in local content requirements.

The president’s directives include: the introduction of fiscal incentives for non-associated gas, midstream and deepwater developments; streamlining the contracting process to compress the contracting cycle to six months; and the application of the local content requirements without hindering investments or cost competitiveness.