MPC meeting, red line train inauguration… 7 business stories to track this week

Here are the seven top business stories you need to track this week — February 26 and March 1

CBN’S 293RD MPC MEETING

The Central Bank of Nigeria (CBN) is set to hold its 293rd monetary policy committee (MPC) meeting on Monday, February 26 and Tuesday,  February 27, 2024.

The meeting is coming seven months after its last session.

Ahead of the convergence, the senate, on February 22, 2024, confirmed Cardoso as the MPC chairman.

The lawmakers also confirmed four deputy governors of CBN and seven others as MPC members.

At the last meeting in July 2023, the MPC, headed by Folashodun Shonubi, the former acting governor of the apex bank, increased the monetary policy rate (MPR) by 25 basis points to 18.75 percent, from 18.5 percent in May last year.

TINUBU TO INAUGURATE LAGOS RED LINE RAIL PROJECT ON FEBRUARY 29

Babajide Sanwo-Olu, governor of Lagos, says President Bola Tinubu will inaugurate the state’s red line rail project on February 29.

Sanwo-Olu spoke on Wednesday during the launch of the Lagos market trader money for 15,000 beneficiaries.

The Lagos governor said the rail project would change the “face of public transportation” in Nigeria.

He added that the red line train will take passengers from Agbado, Iju to Agege, Mushin, Oshodi, Yaba, and Ebute Meta.

‘SELLERS OF FX ABOVE $10,000 MUST DECLARE SOURCE TO BDCS ‘

On February 23, 2024, the CBN said sellers of foreign exchange (FX) of $10,000 and above to Bureau De Change (BDC) operators must declare the source of the forex.

The apex bank gave the directive in a document, titled, ‘Revised Regulatory and Supervisory Guidelines for Bureau De Change Operations in Nigeria’.

CBN mandated the sellers to “comply with all AML/CFT/CPF regulations and FX foreign exchange laws and regulations”, adding that customers can move foreign currencies from their domiciliary accounts with Nigerian banks to BDCs.

On the same day, the apex bank also directed the Nigeria Customs Service (NCS) and other related parties to adopt the closing rate in the official FX window for import duty.

TINUBU SETS UP ECONOMIC ADVISORY COMMITTEE, SAYS RECOVERY UNDERWAY

President Bola Tinubu has set up an economic advisory committee comprising the federal government, sub-nationals, and the private sector.

The president announced the development on Sunday evening after a meeting with some key stakeholders at the State House, Abuja.

Tinubu said the goal is to provide “additional efforts” in stabilising the economy and ensuring the “best economic future” for Nigerians.

Some of the members of the committee include Aliko Dangote, chairman of the Dangote Group; Tony Elumelu, group chairman of Transnational Corporation Plc (Transcorp), Abdulsamad Rabiu, founder of the BUA Group; Segun Ajayi-Kadir, president of the Manufacturers Association of Nigeria (MAN), governors Dapo Abiodun of Ogun state; and Chuwkuma Soludo of Anambra, among others.

AEDC GIVES 86 MDAS ULTIMATUM TO PAY N47BN DEBT

The management of the Abuja Electricity Distribution Company (AEDC) has issued a 10-day notice to 86 government ministries, departments, and agencies (MDAs) to pay up the N47.1 billion electricity debt they owe or risk disconnection.

The ultimatum was issued in an advertorial, titled, ‘Notice of disconnection’, on Monday.

According to the DisCo, the list was published as MDAs failed to pay up their outstanding balance for December 2023.

“The Abuja Electricity Distribution PLC (AEDC) is constrained to do this publication with the details of government ministries, departments and agencies with long outstanding unpaid bills for services rendered to them through the provision of electricity supply in that our previous attempts to make them honour their obligations have not achieved the desired result,” the company said.

NIGERIA’S Q4 2023 GDP RISES TO 3.46%

Nigeria’s gross domestic product (GDP) grew by 3.46 percent in the fourth quarter (Q4) of 2023, according to the National Bureau of Statistics (NBS).

The growth rate, the data bureau said, is lower than the 3.52 percent recorded in the same quarter in 2022 and higher than the 2.54 percent recorded in the third quarter (Q3) of 2023.

The bureau said the growth rate was mainly driven by the services sector, which recorded a 3.98 percent and contributed 56.55 percent to the aggregate GDP.

FG HALTS GAS EXPORTS TO CRASH PRICE, END SCARCITY

The federal government has announced the suspension of liquefied petroleum gas (LPG) exports.

Ekperikpe Ekpo, minister of state for petroleum resources (gas) spoke on Thursday during an “Internal Stakeholders’ Workshop” in Abuja.

He said the action was part of a deliberate attempt to increase the availability of LPG in the domestic market and lessen the financial strain on customers due to the hike in the price of the commodity.