N54trn budget review, 15% NPA tariff hike… business stories to track this week

Here are the seven top business stories you need to track this week — February 10 to February 15.

TINUBU ASKS N’ASSEMBLY TO INCREASE 2025 BUDGET FROM N49TRN to N54TRN

President Bola Tinubu has asked the national assembly to increase the proposed 2025 budget to N54.2 trillion.

Tinubu initially asked the national assembly to approve N49.7 trillion for the fiscal year when he appeared before lawmakers to present the proposal in December 2024. The budget will now see an increase of N4.5 trillion.

The president’s request was contained in a letter read by Senate President Godswill Akpabio on the floor of the red chamber on Wednesday.

NPA INCREASES TARIFF BY 15%

 The Nigerian Ports Authority (NPA) says it has secured the required approvals to increase its tariffs to enhance infrastructure and upgrade equipment.

Abubakar Dantsoho, the NPA managing director, spoke at a maritime stakeholders’ meeting in Lagos, according to a post on X on February 6.

The decision, which marks the first tariff adjustment since 1993, is meant to enhance the performance of Nigerian ports.

CBN ISSUES FX GUIDELINES FOR BDCs

The Central Bank of Nigeria (CBN) has introduced new regulations limiting bureau de change (BDC) operators to purchasing a maximum of $25,000 per week from a single bank.

In a circular on Wednesday signed by W. J. Kanya, acting director of the trade and exchange department, the CBN provided guidelines for the purchase and sale of the FX.

The CBN said BDCs must select one bank and procure their weekly FX allocation.

CBN EXTENDS TIMEFRAME FOR BDCs TO BUY $25,000 WEEKLY FROM BANKS 

Also, on February 3, the apex bank extended the timeframe for eligible bureau de change (BDC) operators to access the Nigerian autonomous foreign exchange market (NAFEM) for foreign exchange (FX).

The CBN said BDCs will purchase FX from authorised dealers, which are banks licenced by the regulator, to meet retail market demand.

The financial regulator said the deadline has been extended to May 30.

NCS TO IMPLEMENT 4% FOB ON IMPORTS

The Nigeria Customs Service (NCS) says it will implement a 4 percent charge on the free-on-board (FOB) value of imports.

In a statement on Wednesday, Abdullahi Maiwada, the NCS national public relations officer, said the directive aligns with the provisions of the Nigeria Customs Service Act (NCSA) 2023.

Maiwada said the FOB charge, which is calculated based on the value of imported goods, including the cost of goods and transportation expenses incurred up to the port of loading, is essential to driving the effective operation of the service.

‘NO MORE EXPORT PERMITS FOR CRUDE OIL CARGOES MEANT FOR DOMESTIC REFINERIES’

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has warned oil production companies to strictly adhere to crude oil supply obligations to local refineries.

According to a statement by the NUPRC on Monday, Gbenga Komolafe, the commission’s chief executive officer (CEO), gave the warning in a letter dated February 2, addressed to exploration and production companies and their equity partners.

Komolafe said the commission will, henceforth, deny export permits for crude oil cargoes intended for domestic refining if oil companies do not fulfil their domestic crude obligations.

He also said any changes to cargoes designated for domestic refining must receive express approval from the commission’s chief executive.

FEC APPROVES ISSUANCE OF N758BN BOND TO SETTLE PENSION BACKLOG

The federal executive council (FEC) has approved the issuance of a N758 billion bond to clear outstanding pension liabilities for all categories of pensioners, offering long-awaited relief to retirees.

Wale Edun, minister of finance, said the approval will address backlogged pension liabilities under the defined benefit scheme.

The minister said the government authorised the Debt Management Office (DMO) to raise a N758 billion federal government bond.