NNPC’s financial statement, Lagos airline… 7 business stories to track this week

Here are the seven top business stories you need to track this week — January 29 to February 2.

NNPC RELEASES 2022 AUDITED FINANCIAL STATEMENT, REPORTS N8.8TRN REVENUE

The Nigerian National Petroleum Company (NNPC) Limited says its revenue increased to N8.81 trillion in 2022.

The national oil company disclosed this in its audited financial statements for the 16 months ending December 2022.

The document showed that the revenue of NNPC Group rose by 37.32 percent — from N6.42 trillion in 2021.

According to the report, the group’s profit-after-tax (PAT) rose to its highest level at N2.52 trillion — a 273.9 percent increase from the N674 billion recorded in 2021.

‘PETROL PRICE TO REDUCE, FX MARKET TO STABILISE’

Olayemi Cardoso, governor of the Central Bank of Nigeria (CBN), says fuel costs are expected to reduce in 2024, effectively impacting several segments of the economy.

Cardoso spoke on Wednesday at the unveiling of the Nigerian Economic Summit Group’s (NESG) 2024 macroeconomic outlook, in Lagos.

Cardoso also said the country is expected to achieve stability in the foreign exchange (FX) market this year, attributable to the reduction in petroleum products imports.

The CBN governor attributed the FX stability to the commencement of production at the Dangote Petroleum Refinery, as well as the completion of the mechanical phase repairs of the Port Harcourt Refinery.

He said the apex bank will partner with the ministry of finance and the NNPC to ensure that “all our FX inflows are returned to the central bank”

Speaking on inflation, Cardoso said the naira is undervalued and the apex bank aims to rein in inflation to 21.4 percent in 2024.

NAIRA CROSSES N1,400 IN PARALLEL MARKET

On January 26, 2024, the naira continued its free fall, dropping to N1,425 at the parallel section of the FX market.

The FX rate represents a 0.71 percent or N10 increase from the N1,415 traded on January 25, 2025.

Bureaux De Change (BDC) operators who spoke to TheCable in Lagos, quoted the buying price of the dollar at N1,410 and the selling price at N1,425 — leaving a profit margin of N15.

In the official market, the naira closed against the dollar at N891.90 on Friday — a 1 percent appreciation from the N900.96/$ recorded the previous trading day.

PRIVATE JET OVERSHOOTS RUNWAY IN IBADAN

A private jet, with registration number N580KR, missed the runway and skidded into the nearby bush at Samuel Ladoke Akintola Airport, Ibadan, Oyo state, on Friday.

The jet reportedly had 10 very important persons (VIPs) onboard.

Confirming the incident to TheCable on Friday, Carol Adekotujo, spokesperson for the Nigerian Civil Aviation Authority (NCAA), said the incident happened around 11 am.

“Yes, it was a private plane from Abuja. It landed safely but overshot the runway. There was no casualty,” Adekotujo said.

The incident comes a few months after a private jet crashlanded at the same location.

The jet, operated by Flint Aero, departed Abuja and crash-landed just before the runway at the airport in Ibadan.

LAGOS TO ESTABLISH AIRLINE

The Lagos state government says it is considering establishing an airline for operations.

Speaking at the Lagos west senatorial district town hall meeting on Thursday, Babajide Sanwo-Olu, the state governor, said the plan has been in the pipeline for months and the state is finalising the financing model.

This was disclosed in a statement by Gboyega Akosile, the state chief press secretary, on Thursday.

Sanwo-Olu said Lagos is also preparing for the groundbreaking to start the construction of its airport in Lekki, adding that the airline’s operating contingency and approval from the federal government are under consideration.

FG EXPLAINS RELOCATION OF FAAN HEADQUARTERS, CBN DEPARTMENT TO LAGOS

The federal government has given reasons for the relocation of a department of the CBN and the headquarters Federal Airports Authority of Nigeria (FAAN) from Abuja to Lagos.

Bayo Onanuga, special adviser on information and strategy to President Bola Tinubu, said Lagos is the hub of the aviation business, hence the decision to relocate the headquarters of FAAN to the state.

Onanuga also argued that most commercial banks’ headquarters are in Lagos, thus, the movement of the CBN’s department to the south-western state.

He said many government parastatals are not based in Abuja depending on their mandate.

Supporting the plan, Muhammadu Sanusi II, former emir of Kano, said the decision of the apex bank to relocate some members of staff from Abuja to Lagos is a “sensible move”.

FG TARGETS 77% REVENUE INCREASE

Wale Edun, minister of finance and coordinating minister of the economy, says the federal government is targeting a 77 percent increase in internally generated revenue (IGR).

Edun spoke on Wednesday at the opening of the 2024 strategic management retreat held by the Federal Inland Revenue Service (FIRS) in Abuja.

Edun said tax plays an integral role in the government’s quest to boost revenue that will help bridge the infrastructure deficit and build social safety nets that will cater to ordinary Nigerians.

He commended the management of the FIRS for its commitment towards meeting its set revenue target of N12.3 trillion.

“There is a plan to increase the total overall revenue — that is tax revenue plus government revenue — to about 25% to GDP from about 14%,” Edun said.

“In fact from January 2, using digitisation, the federal government now takes its own share of revenue directly. It’s necessary to do that. We’re focusing not on expensive debts but on domestic results mobilisation.”

The minister said the projected 77 percent increase in IGR is achievable through technology and collaboration.