MPC meeting, FG’s $1.5bn World Bank loan… business stories to track this week

Here are the seven top business stories you need to track this week — September 23 to September 27.

CBN TO HOLD MPC MEETING

The monetary policy committee (MPC) of the Central Bank of Nigeria (CBN) will meet to decide on key lending rates on September 23 and 24.

The monetary policy rate (MPR) is the baseline interest rate in an economy, every other interest rate used within the economy is built on it.

In July when the last meeting was held, the committee raised the MPR from 26.25 percent to 26.75 percent – an increase of 50 basis points.

WORLD BANK TO APPROVE $1.5BN LOAN TO NIGERIA BY SEPTEMBER 26

The federal government is expected to receive a new loan from the World Bank, totalling $1.5 billion.

According to the Washington-based financial institution’s project list, the loan is set to be approved on September 26.

The Breton Woods organisation noted that the $1.5 billion would be distributed through three major development projects aimed at improving Nigeria’s economic stability and resource mobilisation capacity.

The World Bank said the projects, targeting crucial sectors such as healthcare, agriculture, and infrastructure, are pivotal for the country’s sustainable development and economic stability.

‘CYBERSECURITY LEVY NOT REINTRODUCED’

The Central Bank of Nigeria (CBN) says it has not reintroduced the cybersecurity levy that was previously suspended.

The development followed reports that had claimed that the apex bank reinstated the levy, quoting its ‘Monetary, Credit, Foreign Trade, and Exchange Policy Guidelines for the Fiscal Years 2024-2025’.

In a statement on September 20, the apex bank said the guideline was issued before December 31, 2023, adding that its stance on the suspension has not been revised.

‘NIGERIA’S PETROL CONSUMPTION REDUCED TO 30M LITRES AFTER SUBSIDY REMOVAL’

President Bola Tinubu says Nigeria’s daily petrol consumption reduced to about 30 million litres after subsidy removal.

Tinubu spoke on September 20 during a meeting with a group of former lawmakers at the State House in Abuja.

He said although Nigerians are complaining about the current “petroleum crisis”, the country must achieve PMS security.

“Yes, we have fuel in the ground. But do we have the capacity to bring it up before we refine and distribute? Have we examined alternative sources of energy with all that the world has given to us?” he asked.

FG, RUSSIAN FIRM SIGN MoU FOR COMPLETION OF AJAOKUTA PLANT

Shuaibu Audu, minister of steel development has signed a memorandum of understanding (MoU) with the builders of the Ajaokuta steel plant, Messrs Tyazhpromexport (TPE), for the rehabilitation, completion, and operation of the facility and the National Iron Ore Mining Company (NIOMCO).

According to a statement, the MOU was signed when Audu led a Nigerian delegation to Moscow in Russia, between September 14 and 21.

Novostal M and Proforce Manufacturing Limited — described as members of Tyazhpromexport’s consortium — were also involved in the MoU.

FG TO MODIFY NRC TRAIN ENGINES TO RUN ON DIESEL, LNG

On September 19, the ministry of transportation said it would save over 60 percent of its diesel expenses on trains from a retrofitting process that involves converting locomotive engines to using a combination of diesel and liquefied natural gas (LNG).

Sa’id Alkali, minister of transportation, spoke in Abuja during a tour of Idu and Kubwa train stations.

“We are focused on reducing operational costs. By using a fuel mix where 70% is LNG and only 30% is diesel, the cost of running the locomotives will be significantly reduced by about 60%,” Alkali said.

NCAA TO ADDRESS TICKET REFUND ISSUES ‘WITHIN 24 HOURS’, LAUNCHES PORTAL

Festus Keyamo, minister of aviation and aerospace development, has inaugurated the consumer protection portal of the Nigeria Civil Aviation Authority (NCAA).

The portal, launched in Lagos on Thursday, aims to provide easy access for travellers to lodge complaints online and track the resolution process.

Speaking at the launch, Keyamo directed the NCAA to address airline ticket refunds owed to passengers by airlines within 24 hours.

He said many passengers have struggled to reclaim funds for flights booked from airlines that are currently not operating.