Reps okay tax bills, Nigeria’s crude oil output drops… business stories to track this week

March 17, 2025 8:51 am

New withholding tax regulations take effect from January 2025, says FIRS

Here are the seven top business stories you need to track this week — March 17 to March 21

REPS OKAY TAX REFORM BILLS, KEEP VAT AT 7.5%

The house of representatives has considered and adopted the committee on finance’s report on the tax reform bills.

During a plenary on March 13, James Falake, chairman of the committee on finance, moved a motion for the clause-by-clause consideration of the report.

The reports were subsequently considered, and the committee’s recommendations were approved.

The development followed a public hearing on the bills held by the parliament amid opposition to the proposed tax laws.

Section 146 of the Nigeria tax bill proposed a gradual increase to the value-added tax (VAT) from the current 7.5 percent to 12.5 percent through 2026, 2027, 2028, and 2029, while by 2030, the VAT will be raised to 15 percent.

The committee reviewed the section and recommended that VAT should be charged at a rate of 7.5 percent — the decision was approved by the house.

CARDOSO SEEKS STRICTER MEASURES AGAINST NAIRA ABUSE

The Central Bank of Nigeria (CBN) has raised concerns over the growing trend of illicit transactions involving banknotes.

Olayemi Cardoso, the CBN governor, spoke at the bank’s security workshop held in Abuja on Thursday.

Cardoso said mysterious shopping exercises conducted in major commercial hubs, including Abuja, Asaba, Awka, Benin, Ilorin, Kano, and Ibadan, uncovered disturbing instances of naira commoditisation and abuse.

The CBN boss said ‘the blatant disregard for our nation’s legal tender not only weakens the value of the Naira but also erodes respect for our national identity”. If we disrespect it this way and expect a strong naira, we are deceiving ourselves.”

He called for strict measures to deter perpetrators, stressing the role of law enforcement agencies in identifying and prosecuting individuals engaged in illicit currency dealings.

PENCOM EMPOWERS PFAs TO APPROVE RETIREMENT BENEFITS WITHOUT REGULATORY CLEARANCE

The National Pension Commission (PenCom) has granted pension fund administrators (PFAs) full authority to approve and process several categories of retirement benefits without prior clearance from the agency.

PenCom said the new directive, set to take effect from June 1, aims to cut bureaucratic bottlenecks and speed up pension disbursements under Nigeria’s contributory pension scheme (CPS).

According to the statement, until now, PFAs had to seek PenCom’s “No Objection” before paying out retirement benefits to holders of retirement savings accounts (RSAs).

NERC INAUGURATES PANEL TO REVIEW GRID REGULATION

The Nigerian Electricity Regulatory Commission (NERC) has inaugurated the grid code review panel (GCRP) to enhance the efficiency of power sector operations.

In a statement on March 11, the NERC said the panel will be responsible for evaluating and administering amendments to the grid code, which outlines the technical requirements for connecting to and using the national electricity grid.

According to the statement, the GCRP will evaluate the proposed amendments to the existing grid code and present it to the initial stakeholders’ advisory panel to review it before the commission’s approval.

‘NIGERIA CRUDE OIL PRODUCTION DROPPED TO 1.46M BPD IN FEBRUARY’

The Organization of Petroleum Exporting Countries (OPEC) says Nigeria’s average daily crude oil production declined to 1.46 million barrels per day (bpd) in February.

In its latest monthly market report, OPEC said the production data was based on direct communication with Nigerian authorities.

The oil cartel receives data on crude oil production from two sources: direct communication from member countries and secondary communication (data from energy intelligence platforms).

RENAISSANCE COMPLETES SPDC ACQUISITION DEAL

Renaissance Africa Energy Holdings says it has successfully completed the acquisition of Shell’s 100 percent equity holding in the Shell Petroleum Development Company of Nigeria (SPDC).

The company announced the development in a statement on Thursday.

In the latest announcement, the company said “Going forward, SPDC will be renamed as ‘Renaissance Africa Energy Company Limited”.

‘CBN WON’T EXCEED 5% LIMIT ON WAYS AND MEANS LENDING TO FG’

Atiku Bagudu, minister of budget and economic planning, says the Central Bank of Nigeria (CBN) will not exceed the 5 percent limit on ways and means of financing to the federal government.

Bagudu spoke on the 2025 budget in collaboration with KPMG on Arise Television on March 11.

The minister said the CBN’s guidelines already limit the amount available to the government under its ways and means facilities to 5 percent in the 2024-2025 fiscal year.

This, Bagudu said, would boost investor confidence in Nigeria’s ability to manage its debt.