September inflation, looming VAT hike… business stories to track this week

Here are the seven top business stories you need to track this week — October 14 to October 18.

PRIVATE MARKETERS PERMITTED TO BUY PETROL DIRECTLY FROM REFINERIES

The federal government says oil marketers can now buy petroleum products directly from the Dangote refinery and other local producers without going to the Nigerian National Petroleum Company (NNPC) Limited.

Announced in a statement on Friday, the development puts an end to NNPC’s sole distributor role which the national oil firm had held for many years in Nigeria’s oil industry as the federal government deregulates the downstream sector.

SEPTEMBER INFLATION

The Nigerian Bureau of Statistics (NBS) is expected to release the consumer price index (CPI) and inflation report for September 2024.

In August, Nigeria’s inflation rate dropped to 33.15 percent — second time in 2024.

The bureau also intends to publish reports on the prices of liquefied petroleum gas (cooking gas) and premium motor spirit (petrol) for September.

N’ASSEMBLY CONSIDERING VAT INCREASE FROM 7.5% TO 10%

The national assembly is considering a bill proposing an increase in the value-added tax (VAT) from 7.5 percent to 10 percent.

In the executive bill seen by TheCable on Sunday, the national assembly is seeking to raise the tax rate to 10 percent by 2025.

The legislature also intends to increase the VAT to 12.5 percent by 2026 through 2029, according to the document.

The bill also proposes a reduction in the company income tax (CIT) to 27.5 percent from 30 percent.

The federal government is also proposing the provision of a tax identification number as a precondition for opening new and operating existing bank accounts for individuals engaged in the financial institutions and financial service sector has been proposed at the national assembly.

NIN-SIM LINKAGE OF ALL PHONE NUMBERS COMPLETED

The Nigerian Communications Commission (NCC) says it has completed the implementation of the federal government’s policy to link all phone numbers in the country to a national identification number (NIN).

Aminu Maida, the executive vice-chairman (EVC) of the NCC, spoke on Thursday at the 2024 annual corporate governance conference held in Lagos.

Maida stressed the significance of the concluded NIN-SIM linkage initiative, while acknowledging the challenges faced by Nigerians during the processs.

INSUFFICIENT AIRCRAFT CAUSING FLIGHT CANCELLATIONS, HIGH AIRFARES

Festus Keyamo, the minister of aviation and aerospace development, says insufficient aircraft in Nigeria is the primary reason for the frequent flight cancellations and high ticket prices for local and international flights.

In an interview with the BBC Pidgin on Saturday, Keyamo expressed concern over the challenges, including flight delays without prior notice to passengers, assuring that they would soon be resolved.

He said the government has initiated a process to empower Nigerian airline operators to partner with foreign companies that manufacture airplanes.

He also said the Central Bank of Nigeria (CBN) is working to ensure local airlines have access to enough foreign exchange (FX).

30TH NIGERIAN ECONOMIC SUMMIT

The 30th Nigerian Economic Summit (NES), themed, ‘Collaborative Action for Growth, Competitiveness, and Stability’, is scheduled for October 14 to 16, 2024.

Organised by the Nigerian Economic Summit Group (NESG), the event is held annually, gathering public and private sector stakeholders to deliberate on developmental issues.

The hybrid event will take place at the Transcorp Hilton Hotel, Abuja.

This year’s summit seeks to strengthen institutions to support economic activities and governance, attract and manage investments to drive development and enhance regional integration to harness collective strengths.

NNPC HIKES PETROL PRICE

The Nigerian National Petroleum Company (NNPC) Limited has increased the price of premium motor spirit (PMS), also known as petrol, across its retail outlets.

TheCable had observed that the price of the product increased to about N998 per litre in Lagos.

The NNPC increased the pump price from N855 per litre in September.