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New Bill Mandates Tax ID For Opening Bank Accounts

October 11, 2024

A new legislative proposal in Nigeria mandates that individuals involved in banking, insurance, stock-broking, and other financial services must present a Tax Identification Number (TIN) to open new accounts or maintain existing ones.

The bill, formally titled “A Bill for an Act to Provide for the Assessment, Collection of, and Accounting for Revenue Accruing to the Federation, Federal, States, and Local Governments; Prescribe the Powers and Functions of Tax Authorities, and for Related Matters,” aims to strengthen tax compliance and enhance revenue collection across the country.

Dated October 4, 2024, and sourced from the National Assembly, the legislation stipulates, “A person engaged in banking, insurance, stock-broking, or other financial services in Nigeria shall make the provision of a tax ID a precondition for opening a new account or operating an existing account.”

This initiative is part of broader efforts to ensure that all individuals and entities involved in financial activities are properly registered for tax purposes.

Furthermore, the bill specifies that non-resident individuals supplying taxable goods or services in Nigeria, or earning income from the country, must also register for tax purposes and obtain a Tax ID. However, non-residents receiving only passive income from investments in Nigeria will be exempt from registration but must still provide necessary information as required by tax authorities.

Additionally, the proposed legislation grants tax authorities the power to automatically register individuals who fail to apply for a Tax ID when required. In these cases, the tax authority must promptly inform the individual of their registration and the issuance of their tax ID.

Ivory Coast To Expand Cocoa Processing with Asian Expertise

Tosin Onisuuru

October 10, 2024

Ivory Coast is seeking to further increase its cocoa processing capabilities by leveraging Asian expertise. The country may sell an additional stake in its Transcao cocoa processing facility to Malaysian cocoa group Guan Chong Berhad (GCB), according to the nation’s cocoa industry regulator. This move aligns with Ivory Coast’s strategy to attract more investments and expertise in the sector.

On Wednesday, Guan Chong Berhad announced that its Singaporean subsidiary had secured a 25% stake in Transcao from the Ivory Coast’s Coffee and Cocoa Council (CCC). The head of Ivory Coast’s cocoa regulatory body expressed a strong desire to deepen its presence in the Asian market, suggesting that GCB’s stake could grow further, subject to government approval.

“We aim to go beyond our current capabilities and master all aspects of cocoa processing, and GCB will be instrumental in helping us reach this goal,” said Yves Brahima Kone, CCC Director. “Our partnership with GCB not only helps us expand into Asia but also enhances our technical knowledge and skills,” he added.

Despite being the world’s largest cocoa producer, Ivory Coast exports most of its cocoa in raw bean form. Transcao is a key part of the nation’s broader plan to transform itself into a leading cocoa-processing hub. Currently, Transcao operates one processing plant with a capacity of 50,000 metric tons, with plans to launch a second plant by the end of 2024, which will boost its total capacity to 190,000 tons by the end of 2025.

In recent years, the Ivorian government has implemented policies to make local cocoa processing more appealing, offering incentives like tax breaks to encourage investment. According to Kone, the collaboration with GCB will provide valuable technical expertise and training opportunities for Ivorian workers.

Overall, Ivory Coast currently boasts over 800,000 tons of cocoa processing capacity, with projections to reach 1 million tons within the next two years as new facilities become operational.

Super Eagles Ready for AFCON 2025 Qualifier Against Libya

Tosin Onisuuru

October 10, 2024

All 23 players invited to the Super Eagles camp for the 2025 AFCON qualifying match against Libya have now arrived in Uyo, ahead of Friday’s crucial game at the Godswill Akpabio Stadium in Akwa Ibom State.

Kelechi Iheanacho and Chidera Ejuke of Sevilla joined the squad on Wednesday morning, completing the lineup following the team’s initial training session on Tuesday evening.

Goalkeeper Maduka Okoye from Udinese, along with Ademola Lookman, Calvin Bassey, and Moses Simon, were among the earlier arrivals on Tuesday, bringing the total number of players in camp to 19 before the final arrivals.

With a full squad at his disposal, interim coach Augustine Eguavoen aims to secure maximum points against the Mediterranean Knights, strengthening Nigeria’s lead in Group D, which includes Benin Republic and Rwanda.

Libya, on the other hand, faces significant challenges, with several key players injured or declining call-ups to the national team. Despite being at the bottom of the group standings, the team remains dangerous under their new coach, Nasser Al-Hadhiri, who is targeting a draw to keep their qualification hopes alive for the finals in Morocco next year.

At a press conference, Al-Hadhiri expressed cautious optimism despite the uphill task ahead, saying, “We know that winning against Nigeria is difficult, but securing a draw could be a positive result to reignite our chances of qualifying.”

Adding to Libya’s woes, local media outlet Akhbarlibya24 reported that three players from Al-Ahly Tripoli—Hamdou El-Houni, Sand Al-Warfali, and Mohamed Al-Munir—have opted out of the national team, increasing the pressure on Al-Hadhiri.

Despite these setbacks, the Libyan team remains focused on the upcoming fixtures, hoping to revive their campaign with strong performances. They will face Nigeria again on October 15 at the Martyrs of Benina Stadium in Benghazi, aiming to leverage home advantage and their passionate supporters.

Meanwhile, Nigeria’s coach, Augustine Eguavoen, remains confident in his team’s chances, even without star striker Victor Osimhen. He believes that other forwards, like Victor Boniface and Taiwo Awoniyi, will step up in Osimhen’s absence.

“The players are fully prepared to secure those three points,” Eguavoen stated. “We understand the importance of getting the job done as quickly as possible.”

Eguavoen also cautioned against underestimating Libya, acknowledging that despite their struggles, they remain a capable team. “They might be down now, but they have the potential to turn things around. We expect them to fight, and we’ll be ready to match their intensity,” he concluded.

N1,030/litre: NLC Demands Reversal As Fuel Queues Resurface

Tosin Onisuuru

October 10, 2024

The Nigeria Labour Congress (NLC) and the Organized Private Sector have called for an immediate reversal of the recent hike in the pump price of Premium Motor Spirit (PMS), also known as petrol, by the Nigerian National Petroleum Company Limited (NNPC).

The NNPC retail stations increased the petrol price to ₦1,030 per litre from ₦897 in Abuja, and in Lagos, the price was raised to ₦998 from ₦868 per litre. Similar price hikes were observed across other locations, sparking widespread frustration among Nigerians.

This is the second increase in petrol prices in just one month, representing about a 14.8% or ₦133 rise. Since the current administration took office 17 months ago, petrol prices have soared by over 430%.

Last month, NNPC raised the pump price of petrol to ₦897 per litre from the previous official price of ₦617 per litre in Abuja. The move came shortly after the NNPC disclosed that it was struggling with a debt burden of $6.8 billion owed to international suppliers.

At the NNPC mega station in the Central Area of Abuja, a customer reported that petrol was being sold at ₦1,030 per litre, although the price was not displayed on the signboard or pump meter. Instead, attendants informed customers of the new price verbally, contrary to standard practices.

A frustrated customer said, “I am very angry right now. I entered this station thinking their price would be better. It was only after I had wasted time in the queue that I was informed by the fuel attendant that the price had risen to ₦1,030.”

This development follows NNPC’s recent decision to end its exclusive purchase agreement with Dangote Refinery, allowing other industry players to buy products directly from the refinery. As a result, oil marketers stated that NNPC’s withdrawal as the sole off-taker of petrol signaled the complete removal of fuel subsidies, leading to a market-driven pricing model.

Reports indicate that petrol prices climbed to ₦1,200 per litre at some stations in Abuja. Eterna stations in the city centre sold petrol at ₦1,200 per litre, while Mobil stations at Arab Junction charged ₦990 per litre. NNPC stations, meanwhile, did not display their prices.

Attempts to reach NNPC’s spokesperson, Femi Soneye, for comments were unsuccessful.

In the wake of the price increase, transportation costs have surged. A one-way trip from Lugbe to Wuse in Abuja now costs ₦1,000, up from the previous fare of ₦700. In Borno State, transport costs have also risen as fuel prices hit ₦1,250 per litre.

Several filling stations, including NNPC retail outlets, were closed, while those that were open charged up to ₦1,250 per litre, causing artificial commodity scarcity in Katsina State. In Ilorin, Kwara State, NNPC stations sold fuel for ₦1,045 per litre, while other stations charged between ₦1,210 and ₦1,300 per litre.

Petrol prices in Edo, Delta, Benue, Abia, and Yobe states ranged from ₦1,098 to ₦1,300 per litre. In Ondo State, stations initially sold fuel for between ₦970 and ₦1,000 in the morning but raised prices to ₦1,115 in the evening.

The NLC and stakeholders demand swift action to reverse these price hikes to alleviate the burden on Nigerians.

How Naira Devaluation Impacts Nigeria’s Economy and the Global Lessons We Need

Tosin Onisuuru

October 9, 2024

The devaluation of the Naira has been a central topic of discussion in Nigeria’s economic landscape, with far-reaching implications on the nation’s economy. As Nigeria grapples with currency fluctuations and the challenges of a weakening Naira, it’s essential to understand the broader context of exchange rate policies and how other countries manage similar issues. This article will explore Nigeria’s exchange rate policy, compare it with strategies from more stable economies, and highlight key lessons Nigeria can learn to improve its economic stability.

Nigeria’s Exchange Rate Policy

Nigeria’s exchange rate policy has undergone significant changes over the years, with the Central Bank of Nigeria (CBN) attempting various approaches to stabilize the Naira. From the adoption of a fixed exchange rate to floating and managed float systems, the goal has always been to create a balance between external competitiveness and internal economic stability.

However, the frequent devaluation of the Naira often leads to inflationary pressures, reducing the purchasing power of Nigerian consumers. The dependency on oil exports for foreign exchange earnings also makes the Naira vulnerable to global oil price fluctuations, which further complicates currency stabilization efforts. The over-reliance on a single revenue stream highlights the need for a diversified economy that can better withstand external shocks.

Comparison with Working Economies

To understand how Nigeria’s exchange rate policy compares with more stable economies, it’s essential to examine countries that have successfully managed their currencies. Nations like China, India, and South Korea have adopted pragmatic approaches to currency management, leveraging their exchange rates to promote exports and strengthen their economic position on the global stage.

China: China uses a managed float system for its currency, the Yuan, where it pegs its value to a basket of currencies. This strategy allows China to maintain competitive export prices while gradually adjusting to market conditions. China’s robust manufacturing sector and diversified economy also support its currency stability.
India: India has a flexible exchange rate system where the market largely determines the value of the Rupee. The Reserve Bank of India intervenes only to curb excessive volatility. This approach, coupled with India’s focus on growing its services sector and promoting foreign investment, has helped maintain relative stability in the Rupee’s value.
South Korea: South Korea’s exchange rate policy combines flexibility with government oversight to protect its economy from external shocks. The country’s emphasis on technology, industrialization, and innovation has played a significant role in strengthening the South Korean Won, reducing its dependence on traditional sectors like agriculture.

Lessons Nigeria Can Learn from These Economies

Several valuable lessons can be drawn from the exchange rate strategies of these countries, which Nigeria can adopt to enhance its economic prospects:

Diversification of the Economy: A key takeaway from these economies is the importance of diversifying economic activities. Nigeria’s heavy reliance on oil exports exposes it to market volatility. Expanding into sectors like manufacturing, technology, agriculture, and services can create a more balanced economic structure, reducing the country’s vulnerability to external shocks.
Investment in Infrastructure and Innovation: Like South Korea, Nigeria should prioritize investments in infrastructure and innovation. Developing technology-driven industries and supporting small and medium enterprises (SMEs) can boost productivity and create a more resilient economy.
Adopting a Flexible Exchange Rate Policy: A more flexible exchange rate policy, similar to India’s, could help Nigeria adapt to global economic trends while minimizing the risks of sudden currency depreciation. This approach would allow the Naira to adjust naturally to supply and demand conditions, providing stability over time.
Encouraging Foreign Direct Investment (FDI): Attracting FDI is crucial for economic growth. Countries like India and China have successfully created favorable conditions for foreign investors. Nigeria can follow suit by improving ease of doing business, strengthening regulatory frameworks, and providing incentives for investors.
Building Foreign Exchange Reserves: Increasing foreign exchange reserves can act as a buffer against economic downturns and currency devaluation. Nigeria should focus on policies that encourage exports beyond oil, boosting foreign exchange earnings through diverse channels.

The devaluation of the Naira has significant implications for Nigeria’s economy, affecting inflation rates, investment opportunities, and the overall standard of living. By learning from the exchange rate policies of countries like China, India, and South Korea, Nigeria can adopt strategies that promote economic diversification, currency stability, and sustainable growth. Implementing these lessons could transform Nigeria’s economy, reducing its dependency on oil exports and positioning the Naira as a stronger player in the global financial market.

18-Year Age Limit: A Controversial Change Shaping Nigeria’s Education System

Tosin Onisuuru

October 9, 2024

The recent decision by the Federal Government of Nigeria to set an 18-year minimum age requirement for university admission has sparked widespread controversy. This policy has generated heated debates among educators, parents, and students, with opinions split over its potential impact on the educational landscape.

The 18-Year Age Limit Policy Explained

The Nigerian government’s decision to implement a cut-off age of 18 years for candidates seeking university admission was intended to address concerns about the maturity level of students entering tertiary institutions. According to policymakers, students who are younger than 18 often struggle to handle the academic pressure and independence required in a university setting.

However, the introduction of this age restriction has not been without its detractors. Critics argue that the policy could stifle the ambitions of exceptionally bright students who are academically ready for university, irrespective of their age.

Arguments in Favor of the 18-Year Cut-Off Age

Maturity and Preparedness: Advocates of the policy believe that students who are at least 18 years old are more likely to possess the emotional and intellectual maturity required to thrive in a university environment. They argue that younger students often lack the life experience needed to make responsible decisions about their education and future career paths.
Global Best Practices: Supporters also point out that many countries have similar age restrictions for higher education admission. They argue that aligning Nigeria’s educational policies with global standards can help enhance the overall quality of education and improve students’ readiness for the competitive job market.

Criticisms of the 18-Year University Admission Age

Despite these arguments, the 18-year cut-off age has been met with significant opposition from various stakeholders in the education sector, including the Academic Staff Union of Universities (ASUU) and the National Union of Teachers (NUT). Here are some key criticisms of the policy:

Stifling Academic Talent: One of the most prominent criticisms is that the policy unfairly penalizes younger students who excel academically. Nigeria has a long history of producing prodigies who enter university well before the age of 18. Critics argue that these students should not be held back simply because of their age.
Educational Inequality: There are concerns that this policy could widen the gap in access to higher education, especially for students from less privileged backgrounds. Students from private schools, who often receive a more rigorous and accelerated education, might meet the age requirement more easily than their peers in public schools.
Violation of Child Rights: Some critics have labeled the policy as a violation of child rights, arguing that every child has the right to education without age-related barriers. They believe that the decision to pursue higher education should be based on academic readiness, not age. Implications for Nigeria’s Education Sector
The 18-year age restriction for university admission has far-reaching implications for the Nigerian education system, potentially affecting admission rates, the structure of secondary education, and the future of academic excellence in the country.
Changes in Secondary Education: This policy could prompt secondary schools to restructure their curricula to ensure that students graduate at an older age. Schools may need to introduce more robust pre-university programs to bridge the gap for students who would otherwise be too young to enter tertiary institutions.
Impact on University Admissions: The new age restriction is likely to reduce the number of applicants to universities, particularly among the younger, high-achieving students. This reduction could lead to a decrease in overall enrollment rates in the short term.
Influence on Technical and Vocational Education: The policy could potentially encourage more students to pursue technical and vocational education and training (TVET) courses as an alternative to university. Younger students might consider these programs as viable options until they reach the eligible age for university admission. Public Reaction and Ongoing Debate
The debate over the 18-year cut-off age for university admission continues to rage on various social media platforms and academic circles. Some parents and students have expressed frustration over the policy, while others see it as a necessary step toward improving the quality of education in Nigeria.

ASUU and NUT have voiced their concerns, arguing that the policy lacks a clear implementation strategy and fails to consider the diverse educational backgrounds of students across the country. They have called for a review of the decision, emphasizing the need for policies that are inclusive and adaptable to the realities of Nigeria’s education system.

The controversies surrounding the 18-year cut-off age for university admission in Nigeria highlight the complexities of balancing academic standards with inclusivity in the education sector. While the policy aims to ensure that students are mature enough to handle university life, it risks sidelining talented young scholars who are ready to excel. As the debate continues, it is essential for stakeholders to work together to find a solution that supports both educational excellence and equal access for all students.

Kenya’s Senate Set to Debate Deputy President’s Impeachment

Tosin Onisuuru

October 9, 2024

Kenya’s Senate is scheduled to debate the potential dismissal of Deputy President Rigathi Gachagua next week, following an announcement by Senate Speaker Amason Kingi. This decision comes after the National Assembly voted on Tuesday to impeach Gachagua, with a decisive 281 to 44 majority, surpassing the required two-thirds threshold.

The Senate will review the allegations against Gachagua on Wednesday and Thursday next week. If at least two-thirds of the senators vote in favor, the impeachment will be upheld, leading to Gachagua’s removal from office. Gachagua, facing 11 charges including accusations of self-enrichment and inciting ethnic divisions, has rejected all allegations, labeling the proceedings a “theatre of the absurd.”

The fallout between Gachagua and President William Ruto, whom he supported in the 2022 election, has become public following protests earlier this year against proposed tax hikes and rising living costs. President Ruto has not commented on the impeachment proceedings.

Gachagua’s controversial statements, likening the government to a private company and suggesting that those who backed the coalition should have priority for public jobs and projects, have caused divisions within Ruto’s coalition. The impeachment process has polarized opinions among Kenyans, with some urging lawmakers to focus on economic issues and others calling for both Ruto and Gachagua to step down.

“We’ve seen no positive change in two years, just more crises. They should both go since they came as a package,” said Melissa Kagondu, a small business owner in Nairobi.

Nairobi-based analyst Robert Shaw warned that the impeachment could further impact Kenya’s economic stability, especially after the protests in June and July. “If I were an investor, I’d be preparing for turbulence by consolidating my position,” he noted.

FG Urges NNPC to Invest in Local Refineries

Tosin Onisuuru

October 9, 2024

The Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, has urged the Nigerian National Petroleum Company Limited (NNPC) to consider investing in local refineries rather than operating government-owned facilities.

Lokpobiri made this statement on Tuesday during the inaugural summit organized by the Crude Oil Refineries Owners Association of Nigeria in Lagos. During his address, he emphasized the Federal Government’s intention to encourage the national oil company to acquire stakes in both new and existing private refineries instead of directly managing them.

It’s worth noting that the NNPC had initially planned to hold a 20% stake in the Dangote refinery but later reduced its equity to 7.2%. Despite spending around $4 billion on the rehabilitation of its state-run refineries, none of these facilities have resumed operations.

Over the past year, NNPC has repeatedly assured Nigerians that the Port Harcourt refinery would be back in production, yet the situation remains unchanged as of the end of September.

Lokpobiri highlighted that the government has proposed a new operational model for the four government refineries. He mentioned that NNPC recently advertised its intention to engage private sector partners to manage these refineries for better efficiency.

“Our goal is to motivate NNPC to take equity stakes in both upcoming and existing private refineries rather than directly operating them. We also aim to adopt a different approach for managing the four government refineries, as evidenced by the recent advertisement seeking private sector involvement,” Lokpobiri said.

NEMA Advocates for Technology Integration in Emergency Management

Tosin Onisuuru

October 9, 2024

The Director-General of the National Emergency Management Agency (NEMA), Mrs. Zubaida Umar, has urged the agency’s staff to adopt modern technologies to enhance emergency management efforts. She made this call during the opening of NEMA’s Customer Service Week, themed “Above and Beyond,” held on Monday in Abuja.

Mrs. Umar praised the resilience and determination of the staff despite the challenges they face in their work. She stated, “In times of disaster, your ability to remain calm and focus on the needs of those affected is crucial. The countless lives saved and communities rebuilt are a testament to your dedication to service. As we move forward, I encourage everyone to explore new ways to enhance our service delivery.”

Highlighting the impact of technology on emergency response, Umar noted that innovations such as early warning systems and disaster mapping are transforming the landscape of emergency management. “Let’s embrace these advancements to refine our processes and better serve the public,” she said.

She also emphasized the importance of teamwork and collaboration, both within the agency and with external partners, to tackle complex emergencies effectively. “As we celebrate Customer Service Week, let’s reaffirm our commitment to excellence, innovation, and teamwork. Together, we can create a stronger, more responsive agency that is always ready to serve the nation in times of need,” Umar added.

Dr. Onimode Bandele, the Director of Planning, Research, and Statistics, reiterated the staff’s commitment to intensifying efforts towards achieving the agency’s goals. He emphasized that by increasing their dedication, they aim to boost the effectiveness and impact of NEMA’s initiatives.

In addition, Mr. Bello Danlami, Information Officer of the United Nations Office for the Coordination of Humanitarian Affairs (UNOCHA), commended NEMA for its exceptional service delivery. “Your efforts have a profound impact on the lives of countless individuals in Nigeria, ensuring their safety during difficult times. At UNOCHA, we recognize the value of customer service in humanitarian aid and appreciate your professionalism and dedication. We look forward to deepening our collaboration to tackle humanitarian challenges,” Danlami remarked.

Mrs. Nnenna Akajemeli, National Coordinator of the Service Compact with All Nigerians (SERVICOM), represented by Ms. Rebecca Abah, praised NEMA’s focus on customer service. She stressed that putting customers first is crucial, regardless of their diverse needs, and highlighted the importance of preparing communities for emergencies.

“Exceeding customer expectations requires commitment from every level, from the front desk to top management. We must work together to ensure quality service for all citizens,” Akajemeli said.

South Korean Investors to Build Four Refineries in Nigeria – FG

Tosin Onisuuru

October 9, 2024

The Federal Government of Nigeria has announced that a consortium of South Korean investors is set to establish four new refineries in Nigeria, each with a production capacity of 100,000 barrels. This development was revealed by the Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, during the inaugural summit organized by the Crude Oil Refineries Owners Association of Nigeria in Lagos.

Minister Lokpobiri highlighted the government’s efforts to foster a supportive environment for investors interested in building refineries, emphasizing the recent approval to invite the unnamed South Korean consortium to Nigeria. The goal is to enhance the country’s refining capacity through public-private partnerships, paving the way for both modular and large-scale refineries.

Lokpobiri stated, “We have adopted the public-private partnership model to unlock investments in the midstream and downstream segments of the oil and gas sector, aiming to develop more modular and mega refineries.”

He further mentioned that the Nigerian Upstream Petroleum Regulatory Commission has issued domestic crude supply obligation guidelines to ensure transparency and a consistent supply of feedstock to local refineries. This initiative is designed to support the growth of refineries and promote energy security in Nigeria.

The Minister also emphasized the Federal Government’s focus on deregulating the downstream sector entirely and creating frameworks that will mitigate the effects of such changes on the general population. As part of these efforts, the ministry has streamlined access to tax incentives and exemptions on refinery equipment imports, aiming to position Nigeria as Africa’s hub for petroleum refining.

Additionally, Lokpobiri disclosed plans to review the Petroleum Industry Act (PIA) to allocate a portion of the National Gas Infrastructure Fund towards developing refinery infrastructure, similar to investments in the gas sector. He called on industry bodies like the Crude Oil Refineries Owners Association of Nigeria (CORAN) to champion these initiatives.

To boost local expertise in refinery operations, the minister revealed plans to launch apprenticeship programs in partnership with existing refineries. The Federal Government is also engaging with international institutions to facilitate knowledge transfer, innovation, and technological advancements within Nigeria’s refining sector.

In a bid to curb crude oil theft and illegal refining, Lokpobiri announced the formation of an international emergency committee focused on developing home-grown solutions for refining oil within the country.

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