GDP report, MPC meeting… business stories to track this week

Here are the seven top business stories you need to track this week — May 20  to May 24.

MPC MEETING

The monetary policy committee (MPC) of the Central Bank of Nigeria (CBN) will meet to decide on key lending rates on May 20 and May 21, respectively.

This would be the third time the committee would assemble to deliberate on critical economic issues this year.

The MPC will review the monetary policy rate (MPR) and the cash reserve ratio (CRR) at the meeting.

MPR is the baseline interest rate in an economy, every other interest rate used within the economy is built on it.

In March, the committee raised the interest rate from 22.75 percent to 24.75 percent.

GDP REPORT

The Nigerian Bureau of Statistics (NBS) is expected to release the gross domestic product (GDP) report for the first quarter (Q1) 2024 on May 24.

The bureau also intends to publish reports on automotive gas oil (diesel) and household kerosene prices for April 2024.

TINUBU APPROVES GRADUAL PAYMENT OF N3TRN DEBT OWED TO POWER SECTOR

President Bola Tinubu has approved the gradual payment of the N3.3 trillion debt owed to power generation and gas companies.

Adebayo Adelabu, minister of power, spoke at the 8th Africa Energy Marketplace held on May 16 in Abuja.

The power-generating companies (GenCos) are owed N1.3 trillion, while the gas companies (GasCos) are owed $1.3 billion (which is N1.99 trillion using the official closing rate of N1533.99/$ on May 16).

Adelabu said the N1.3 trillion owed to GenCos will be paid via cash injections and promissory notes.

He said Tinubu had directed the minister of finance to make an immediate payment of N130 billion from the gas stabilisation fund to reduce the $1.3 billion owed to GasCos.

The minister said the companies would be paid via cash and future royalties, a solution deemed satisfactory by the gas-supplying companies.

FG PLANS TO BORROW FROM PENSION FUND FOR INFRASTRUCTURE DEVELOPMENT

The federal government says it plans to borrow from the pension fund and other locally available resources for infrastructure development in Nigeria.

Wale Edun, coordinating minister for the economy and minister of finance, spoke at the end of the federal executive council (FEC) meeting chaired by President Bola Tinubu on May 14.

Edun said the government is focused on tapping into domestic financial resources, particularly pension and life insurance funds, to leverage local funds for national growth.

He added that it was a significant step towards driving economic progress and addressing critical infrastructure needs.

‘NIGERIA TO STOP PETROL IMPORTATION IN JUNE’ 

Aliko Dangote, Africa’s richest person, says Nigeria will not need to import petrol by June.

Dangote spoke at the Africa CEO Forum Annual Summit in Kigali on May 17.

He said the country should end petrol imports by June when Dangote refinery commences production of the product.

“Right now, Nigeria has no cause to import anything apart from gasoline and by sometime in June, within the next four or five weeks, Nigeria shouldn’t import anything like gasoline; not one drop of litre,” he said.

TINUBU INAUGURATES THREE GAS PROJECTS

On May 15, Tinubu inaugurated three critical gas infrastructure projects in Nigeria.

Tinubu inaugurated the AHL Gas Processing Plant 2 (GPP – 2) – which has a capacity of 200 million standard cubic feet per day (mmscf/d) — jointly owned by Sterling Oil Exploration & Energy Production Company Limited (SEEPCO), AHL and the Nigerian National Petroleum Company (NNPC) Limited.

It is an expansion to the Kwale Gas Processing Plant (GPP – 1), located in Delta.

The president also inaugurated the ANOH-OB3 CTMS gas pipeline project and ANOH gas processing plant located in Imo state — which are jointly owned by AGPC Seplat Energy and NNPC.

TINUBU, SHETTIMA, SERVICE CHIEFS … VIPS TO PAY TOLL AT AIRPORT GATES

Tinubu and Vice-President Kashim Shettima will now pay the required toll whenever they use the gates at airports.

Festus Keyamo, minister of aviation, announced this to journalists after the FEC meeting chaired by Tinubu at the presidential villa in Abuja on May 14.

The minister also said the initial tradition was to exempt only the president and the vice-president, however, Tinubu overruled, saying no one should be exempted.

Keyamo also said the government was losing over 82 percent of the revenue it should have earned from the access fee.