NNPC Limited, interest rate decision… 7 things to track in business this week

Here are the seven top business news you need to track this week — July 18 to July 22.

NNPC RESTRUCTURES, GROUP GMD NOW GROUP CEO

President Muhammadu Buhari will, on Tuesday, inaugurate the Nigerian National Petroleum Company Limited (NNPC Limited).

Under the new setting, the group managing director (GMD) will become the group chief executive officer (GCEO).

The transitioning from NNPC Group to NNPC Limited is in accordance with the Petroleum Industry Act. The Act stipulates that NNPC Limited will run a commercial and profit-focused organisation under the Company and Allied Matters Act (CAMA).

Among other things, the new entity is expected to list on the stock exchange with the sale of shares to the public, such as Petrobras of Brazil and Aramco of Saudi Arabia.

CBN KICKS OFF BI-MONTHLY MPC MEETING

The monetary policy committee of the Central Bank of Nigeria (CBN) will begin its two-day bi-monthly meeting on Monday. The committee would look at global market conditions, especially inflationary pressures arising from the Russia-Ukraine war.

Godwin Emefiele, CBN governor, will address the public on Tuesday on the outcome of the meeting.

At its last meeting, the committee voted to raise the monetary policy rate (MPR), which measures interest rate, to 13 per cent to tame rising inflation.

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

NAIRA IS NOW N620/$ AT THE PARALLEL MARKET

The naira has depreciated to N620 and N430 per dollar at the parallel and official market amid lingering scarcity of the greenback.

Bureaux De Change operators (BDCs) said there was increased demand for the dollar by importers at the street market. On the official market side, banks and other fintech companies have also reduced the sale of forex to customers.

PETROL SELLS AT N170 PER LITRE

Petrol price is now between N170 and N190 a litre across filling stations in Lagos.

The Independent Petroleum Marketers Association of Nigeria (IPMAN) had said it could no longer sell premium motor spirit (PMS) at the regulated price due to a “hostile” business environment.

TAX: NIGERIA COMMENCES ENFORCEMENT AGAINST VAID DEFAULTERS

The Federal Inland Revenue Service (FIRS) says it has commenced “full-scale” enforcement on defaulting taxpayers who did not leverage on the voluntary assets and income declaration scheme (VAIDS).

The VAIDS which was introduced by the federal government in 2017, provides a window of opportunity, an amnesty of sorts, for taxpayers — both individual and corporate — to be honest with what they earn and own, and voluntarily pay up on their tax arrears between 2010 and 2015.

MTN GROUP TO ACQUIRE SOUTH AFRICA’S TELKOM

MTN Group, Africa’s largest telecommunications provider, is in talks to acquire Telkom, a South African telco.

The telco said the deal is to buy all of Telkom either with shares or a combination of cash and stock.

IMF URGES G20 LEADERS TO ADDRESS GLOBAL CHALLENGES

Kristalina Georgieva, managing director, International Monetary Fund (IMF), says the global outlook has darkened significantly, and uncertainty is exceptionally high. 

Georgieva said this on Saturday at the hybrid meeting of the G20 Finance Ministers and Central Bank Governors.

The IMF boss urged countries to ensure fiscal policy help — not hinders — central bank efforts to tame inflation. The organisation also called for a fresh impetus for global cooperation will be critical to confronting the multiple crises the world is facing. 

“We need G20 leadership particularly to address the risks from food insecurity and high debt. Here, I welcome the focus on food security issues during these meetings. Food insecurity means hunger for millions of people. Yet it is a solvable problem,” Georgieva said.

“Together with heads of the UNFAO, World Bank, WFP and WTO, the IMF is calling on the international community to step up and work together to support those in immediate need, remove export restrictions, promote food production, and invest in climate-resilient agriculture.”