October inflation report, national grid collapse… business stories to track this week

Here are the seven top business stories you need to track this week — November 11 to November 15.

OCTOBER INFLATION REPORT

The National Bureau of Statistics (NBS) is expected to release the country’s consumer price index (CPI) and inflation report for October 2024.

Nigeria’s inflation rate rose to 32.7 percent in September.

This was the first increase in three months after the country’s inflation rate declined twice (August and July) in 2024.

GRID COLLAPSES 10TH TIME

The national grid collapsed again on November 7,  leaving the country in darkness — the 10th time in 2024.

The TCN had blamed a series of lines and generator trippings as the reason for the instability of the grid.

NATIONAL GRID INSTABILITY WILL PERSIST UNTIL REPAIRS ARE COMPLETED 

The Transmission Company of Nigeria (TCN) says instability in the national grid will likely persist as the system undergoes repairs.

Ndidi Mbah, TCN’s public affairs manager, had said the company has started working to address the identified weaknesses in the transmission system, following the submission of the investigative report on the causes of previous grid collapses.

Mbah said efforts are afoot to address the gaps outlined in the report and to strengthen the grid’s overall stability and resilience.

Adebayo Adelabu, minister of power, said the frequent system failure at the national grid is inevitable due to outdated infrastructure, calling for an immediate overhaul.

‘BANKS CAN TRADE WITH DEPOSITED FOREIGN CURRENCIES’

The Central Bank of Nigeria (CBN) has permitted banks to trade with foreign currencies deposited under the amnesty initiative for the foreign exchange (FX) deposit window.

CBN gave the directive in a document dated November 5, signed by John Sonojah, its acting director, financial policy and regulation department and Adetona Adedeji, its acting director, banking supervision department.

The directive followed the launch of  the ‘Disclosure Scheme,’ an amnesty initiative to allow the deposit of foreign currencies held outside the banking system.

FG TO ESTABLISH LEATHER FACTORIES ACROSS 36 STATES TO REDUCE KPOMO CONSUMPTION 

The Nigerian Institute of Leather and Science Technology (NILEST) says plans are underway to establish mini tanneries or factories in all states of the country to process hides and skin into leather.

Mohammed Yakubu, the NILEST director-general (DG), who spoke in an interview with NAN on Sunday in Abuja,  said more tanneries are necessary to provide the right infrastructure and technology for the proper processing of leather.

Yakubu also said the establishment of the mini tanneries would reduce the consumption of hides and skin in the country, which was being done largely because the number of industries cannot mop up the excess products generated everyday.

NNPC DENIES CONNECTION TO ALLEGED ADULTERATED PETROL 

The Nigerian National Petroleum Company (NNPC) Limited has denied allegations that adulterated petrol was sold to a customer from one of its retail outlets in Keffi.

In a statement on social media on Thursday, Olufemi Soneye, chief corporate communications officer of NNPC, said the oil firm had done all necessary checks and confirmed the product was not from them.

“We have carried out spot checks at all our outlets and found this claim to be false,” Soneye said.

‘BUSINESSES WILL SUFFER, ECONOMY WILL RETROGRESS IF STATES COLLECT VAT’

Taiwo Oyedele, chairman of the presidential tax reform committee, says businesses will suffer and the economy will retrogress if state governments are allowed to collect value-added tax (VAT).

Oyedele spoke on November 8, during an interview on Channels Television’s ‘Hard Copy’ programme.

According to the tax committee chairman, a similar approach was attempted in the 1980s with sales tax, but the sub-national governments failed to generate significant revenue through it.