Nigeria, Others Most Hit by High Food Inflation

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December 31, 2023

The World Bank has said that Nigeria and other countries in Africa, North America, and Latin America have been most affected by domestic food price inflation.

In its recently released Food Security Update, the multilateral lender said that while domestic food price inflation remained high, inflation higher than five percent was experienced in 61.9 percent of low-income countries.

It noted that since its last FSU update, the agriculture, cereal, and export price indices closed two percent, six percent, and one percent higher, respectively while maize and wheat prices increased eight percent and 14 percent, respectively.

It further stated that despite a slowing global economy, demand for agricultural products was anticipated to reach record levels in the 2023/24 marketing season.

Food Prices Jump by 31% – National Bureau of Statistics

“Domestic food price inflation remains high. Inflation higher than five percent is experienced in 61.9 percent of low-income countries, 76.1 percent of lower-middle-income countries, 50 percent of upper-middle-income countries, and 57.4 percent of high-income countries.

“The most affected countries are in Africa, North America, Latin America, South Asia, Europe, and Central Asia. In real terms, food price inflation exceeded overall inflation in 74 percent of the 167 countries where data is available,” the report partly read.

Following Russia’s invasion of Ukraine, the report said trade-related policies imposed by countries had surged.

The global food crisis, it added, had been partially made worse by the growing number of food trade restrictions put in place by countries with a goal of increasing domestic supply and reducing prices.

Two weeks ago, the latest Consumer Price Index: November 2023’ report released by the National Bureau of Statistics said Nigeria’s food inflation rate increased to 32.84 percent.

The cost of food rose highest in Kogi, Kwara, and Rivers where food inflation in each state surged to 41.29 percent, 40.72 percent, and 40.22 percent respectively.

The food inflation rate in November was 8.72 percentage points higher than what was recorded in November 2022 (24.13 percent).

The report showed that the rise in food prices was caused by increases in the prices of bread and cereals, oil and fat, potatoes, yam and other tubers, fish, fruit, meat, vegetables and coffee, tea and cocoa.

The NBS said, “On a month-on-month basis, the food inflation rate in November 2023 was 2.42 percent this was 0.51 percent higher compared to the rate recorded in October 2023 (1.91 percent).”

LCCI Predicts Lower Inflation Rate Come 2024

By

Rhoda Onuzulike

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December 31, 2023

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The President of the Lagos Chamber of Commerce and Industry, Gabriel Idahosa, has projected that the country’s inflation rate will decelerate in 2024.

Idahosa, who was spoke during an interview, blamed fuel subsidy removal as the major reason for the inflation accelerating at a faster pace this year.

According to the LCCI president, with the measures being implemented by governments at all levels to tackle increasing transport and logistics costs, price levels would begin to moderate in 2024.

Idahosa said, “Certain things were predictable when the President declared that fuel subsidy was gone. We knew that there would be a spike in the price of fuel and everything other things connected to fuel. But all the measures to reduce the cost of transportation have started.

Inflation, Exchange Rate To Decline In 2024 – CBN

“They will also take time to come into effect. It will take some time to get our CNG buses. CNG buses are already running from Abeokuta to Mowe and some parts of Edo State and transport fares are coming down in those locations.”

According to Idahosa, when Dangote and Port Harcourt refineries begin production next year, energy costs will be reduced, which would have an impact on price levels.

He added, “So, we are going to get an aggregation of that across the country. Places like Borno and Bayelsa are now having CNG buses and transportation is coming down in these places. So, between six and nine months, all the efforts to replace petrol as the primary source of transportation will begin to show results.”

Idahosa’s position tallies with that of the World Bank, which said recently that it expected inflation rate in Nigeria to begin to moderate by 2024.

In a report titled ‘Macro Poverty Outlook: Country-by-country Analysis and Projections for the Developing World,’ the Washington-based bank said, “The share of Nigerians living below the international poverty line is expected to peak in 2024 at 38.8 per cent before beginning a gradual decline, as inflation cools down and economic growth picks up.”

Pres. Tinubu to Address the Nation on New Year Day

By

Rhoda Onuzulike

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December 31, 2023

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President Bola Ahmed Tinubu will make a New Year’s Day broadcast to the nation on Monday, January 1, 2024, at 7 am.

This is contained in a statement issued by the Special Adviser to the President on Media and Publicity, Ajuri Ngelale on Sunday.

Ngelale said television, radio stations, and other electronic media outlets were enjoined to hook up to the network services of the Nigeria Television Authority and the Federal Radio Corporation of Nigeria for the broadcast.

President Tinubu set to Address Nigerians on Sunday

The last time Tinubu addressed the nation was on 1 October, 2023 to mark the nation’s 63rd Independence Anniversary.

The president is expected to assure Nigerians of a better 2024 and the plan to reposition the country for the better.

Senate Okays Tinubu’s Request to Borrow

By

Rhoda Onuzulike

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December 31, 2023

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The Senate has approved President Bola Tinubu’s request to borrow $ 7.8 billion and €100 million as part of the 2022 – 2024 borrowing plan of the Federal Government.

The request was approved after the Senate considered and adopted the report of its committee on Local and Foreign Debt during Saturday’s plenary.

Tinubu had said that the Federal Executive Council under former President Muhammadu Buhari approved the loan facility on May 15, 2023, to finance health, education, infrastructure, agriculture, insecurity, and other sectors.

The president added that the foreign loan has become necessary to bridge the financial gap and return the economic activities of the country to normalcy, adding that it would be used to develop infrastructure, agriculture, health, education, water supply, security, and employment as well as financial management reforms.

Senate okays fresh $800m World Bank borrowing

Similarly, the Red Chamber also okayed Tinubu’s request to securitise the Central Bank of Nigeria N7.3trn Ways and Means advances to the Federal Government.

Tinubu had, in a letter read by the Senate President friday, said the securitisation aims to reduce debt service costs and extend the repayment period of the existing loans.

The Ways and Means provision allows the government to borrow from the Central Bank if it requires short-term or emergency financing to support delayed government projected cash receipts of fiscal shortfalls.

The interest rate for the securitised Ways and Means advances has been reduced to 9% per annum, compared to the MPR of 0.3%.

“The savings arising from the much lower interest rate will have to reduce the deficit in the budget,” Tinubu said.

34 Companies Get 3-Year Tax Holiday In 2023 – FG

By

Rhoda Onuzulike

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December 31, 2023

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The Nigerian Investment Promotion Commission said it has approved tax holidays for 34 companies seeking tax incentives and waivers under the Industrial Development Income Tax Act in 2023.

This was disclosed by the Head of incentives administration, Lovina Kayode, during an end-of-the-year press briefing organised by the commission in Abuja.

She said tax incentives which had been a contentious issue due to the high amount of revenue lost to waivers granted every year, were meant to boost foreign investments into the country.

It was recalled that the Federal Government in September, said companies operating in Nigeria receive tax incentives worth N6tn annually.

Dangote, Others Enjoyed N390.26bn Tax Waivers In Two Years

The Chairman of the Presidential Tax Reform Committee, Mr Taiwo Oyedele, who made the disclosure, said a comprehensive review to reduce tax waiver would be implemented.

Earlier reports had put the average annual tax waiver figure at about N5tn.

Companies including Dangote Sinotrucks West Africa Limited, Lafarge Africa Plc, Honeywell Flour Mills Nigeria Plc, Jigawa Rice Limited, and Stallion Motors Limited, among others had benefited from tax waivers from pioneer status incentives.

But speaking at the press briefing, Lovina indicated that not all companies are granted tax breaks due to stringent procedures followed by the commission on waivers award.

She said, “The pioneer status incentive is a stimulus that allows a company to get three years of not paying corporate income tax, just to get more investments.

“This process is stringent because our parent ministry and the federal inland revenue service are involved to make sure the right investors get this incentive.

“So far this year, we granted 34 applications have been approved and one of the things we intend to do is to ensure we are not just giving incentives to underserving companies. However, there is already a notion that Nigeria gives out too many waivers, incentives, and concessions.

“However, tax expenditure which means what government has lost by granting pioneers status incentive is just a small amount compared to what the country gains by granting these incentives to qualified companies.”

She further revealed plans by the commission would publish impact reports on the effectiveness of the pioneer status report on job creation and other economic activities to promote investments.

“On impact, that is one thing NIPC is planning on, next year, it is one of our biggest tasks to do an impact assessment. These incentives we gave out, how have they impacted the country in terms of job creation?

“How many jobs are the companies creating and what kind of import substitution has come about because we have granted these incentives and how much would the government gain after the three years of them not paying these taxes,” she added.

On her part, the commission’s Executive Secretary, Aisha Rimi, in her virtual address, reiterated commitment to facilitating and assisting investors to gain inroad into the country in the New Year.

He said, “So as I continue to settle down, I will also continue to depend on and rely on your support to promote the activities of the commission. The commission, as you all know, was set up really to facilitate, promote, and assist investors into the country and the ones already in the country. Because if nobody traps these people and gives them the support that they need, other countries are competing with Nigeria. So we have to be very intentional.”

Budget: Senate Gets N49bn, House N78.6bn Allocations

By

Rhoda Onuzulike

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December 31, 2023

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The House of Representatives on Saturday approved a total of N28.78 trillion in expenditure for the 2024 fiscal year which is N1.2 trillion more than the N27.5 trillion budgetary proposal presented to the joint session of the Senate and House of Representatives by President Bola Tinubu.

A breakdown of the approved sum showed that a total of N1.74 trillion is for statutory transfers, N8.27 trillion for debt service, N8.78 trillion for recurrent (non-debt) expenditure, and N10 trillion is for capital expenditure for the year ending December 31, 2024.

In the approved appropriation bill, the Senate, made up of 109 members (three each from the 36 states of the federation and one from the Federal Capital Territory) was allocated the sum of N49.14bn while the lower chamber made up of 360 members got a total allocation of N78.62bn. N’Assembly Raises Budget to N28.77tn, Passed Bill

The National Assembly Service Commission, a body charged with the bureaucracy of the federal parliament, got a total allocation of N12.33 billion.

Also in the approved budget, remuneration and other logistics for legislative aides will cost the nation N20.39 billion.

In what appears to be a demonstration of official eagerness to enhance the capacity of the National Institute for Legislative and Democracy Studies, the institute was allocated the sum of N9.01 billion.

The Public Accounts Committees of the Senate and House of Representatives got the sum of N130 billon and N150 billion, respectively.

N’Assembly Raises Budget to N28.77tn, Passed Bill

By

Rhoda Onuzulike

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December 30, 2023

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The National Assembly, on Saturday, passed the harmonised 2024 Appropriation Bill totalling N28.77tn, and increased the budget size by N1.2tn, from the N27.5tn proposed by the Executive.

The budget was passed by both the Senate and House of Representatives at their respective plenary presided over by the President of the Senate, Godswill Akpabio, and Speaker of the House, Tajaudeen Abbas.

President Bola Tinubu had on Wednesday, November 29, 2023, presented a total of N27.5tn to a joint session of the National Assembly.

Tinubu Signs N2.17Tn Supplementary Budget

The two chambers at the Committee of Supply considered the Appropriation Bill presented by the Chairman, Appropriation Committee of the Senate, Adeola Solomon, and his colleague in the House, Abubakar Bichi.

The Senate pegged the aggregate expenditure at N28,777,404.073.861; statutory transfers, N1,742,786,788,150; recurrent expenditure, N8,768.5330,852; capital expenditure, N9,995,143,298,028; and fixed the Gross Domestic Product growth rate at 3.88 per cent.

A breakdown of the approved budget shows that the sum of N1.743tn is for statutory transfers; N8.271tn for debt service; N8.769tn for recurrent (non-debt) expenditure, while N9.995tn is for capital expenditure.

The N9.179tn fiscal deficit for the year is to be financed through asset sales/privatisation with N298,486,421,740 from this; multilateral/bilateral project-tied loans, N1,051,914,486,314; and debt financing, N7,828,529,477,860.

Under the N8.271tn approved for debt service in the year 2024, the sum of N5.3tn is to be incurred through domestic debts, including Ways and Means; N2.748tn through foreign debts, while the Sinking Fund for the retirement of maturing promissory notes stands at N223.662bn.

For the statutory transfers, the National Judicial Council got the highest allocation of N341.626bn; followed by Niger Delta Development Commission with N338.925bn; Universal Basic Education Commission, N263.044bn; North East Development Commission, N131.836bn; Basic Healthcare Provision Fund, N131.522bn; National Agency for Science and Engineering Infrastructure, N131.522bn; Public Complaint Commission, N14.46bn; and N5bn for the National Human Rights Commission.

For the National Assembly, the sum of N78.624bn was approved for House of Representatives; N49.145bn for the Senate; N36.727bn for the National Assembly Office; N30.807bn for general services; N20.388bn for legislative aides; N15.189bn for Service Wide Vote; N15bn for the National Assembly Hospital project; N12.326 for the National Assembly Service Commission; N12.123bn for the National Assembly Library Complex (take-off grant); N10bn for the ongoing construction of NASC headquarters; and N9.008bn for the National Institute for Legislative and Democratic Studies.

Others are N4.5bn for the completion of ongoing NILDS building; N4bn for the National Assembly Recreation Centre; N4bn for the design, construction, furnishing and equipping of the National Assembly’s Budget and Research Office; N3bn for procurement of books for the National Assembly Library; N3bn Senate car park; N3bn for the House of Representatives car park; N3bn for the upgrade of key infrastructure in the National Assembly; and N3bn for the design, construction, furnishing and equipping of the assembly’s ultramodern printing press; N2.7bn for furnishing of committee meeting rooms and others offices within Senate building.

The National Assembly’s approved allocations included N3bn for furnishing of committee meeting rooms for the House of Representatives; N2.5bn for the National Assembly Pension Board (take-off grant); N1.230bn for the office of retired clerks & permanent secretaries; N1bn for constitution review; N130m for Public Accounts Committee (Senate); N150m for Public Accounts Committee (House); N200m for Senate Appropriations Committee; and N200m for the House of Representatives Appropriation Committee.

From the total sum of N50.451tn approved for recurrent (non-debt) expenditure, the Ministry of Defence got the highest allocation of N1.3tn; followed by the Ministry of Police Affairs with N869.121bn; Ministry of Education, N857.134bn; Ministry of Health and Social Welfare, N667.577bn; Ministry of Interior, N362.552bn; Ministry of Youths, N201.467bn; Office of the National Security Adviser, N199.763bn; Ministry of Foreign Affairs, N140.456bn; Ministry of Agriculture and Food Security, N110.248bn; Office of the Secretary to the Government of the Federation, N100.248bn; and the Presidency, N97.913bn.

At a briefing after the passage, Adeola, said the budget was increased based on current economic realities.

He said, “The government has just removed fuel subsidy; the government is also intensifying efforts to unify the exchange rates that we usually have and that comes with a lot of price and Nigerians are paying dearly for it in terms of price of fuel and the dollar rate.

“When we got the budget document, the President implored us to interrogate and investigate it and make sure that we come up with a document that is all-encompassing and can suit the needs and yearning of Nigerians.

“To start with, the increase in budget has to do with the issue of the exchange rate differences.

“The current rate of the dollar at the black market is between N1,200 and N1,300 and in the Central Bank of Nigeria, it is between N950 and N1,000, and we have a budget, which was pegged at N750; if you look at the gap, you’d realise that it has covered a lot of gaps already.”

He added, “Again, we did some external consultations, most especially in the area of oil benchmark and petroleum resources; if we had gone in that line, we’d have pegged it at N850/N900 to a dollar and we agreed that we wanted to be conservative in our approach, so that nobody will think that we want to increase the budget for any ulterior motive, that was why we left it at N490bn out of which N44bn is for statutory transfers; so effectively, the increment is about N446bn that is going into the Federal Government’s pocket as consolidated revenue.

“So, you can see that what necessitated our action is the economic reality and what is obtainable in both the black and open markets.”

CAC Extends Companies’ Annual Returns Filing

By

Rhoda Onuzulike

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December 30, 2023

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The Corporate Affairs Commission has announced an extension of time for companies to submit their annual returns, allowing for a revised timeline from January 1, 2024, to April 1, 2024.

This was disclosed in a statement seen by news correspondent on the official X (formerly Twitter) handle of the commission on Thursday, 28th December 2023.

Earlier in November, the commission said it would delist 91,843 companies from its register for failing to file their annual returns with it.

In a list published on its website, the commission presented the names of 91,843 companies for delisting.

CAC To Delist Over 91000 Companies For Infractions

This was 2,738 less than the 94,581 names of companies it initially published in August.

But in the new statement, CAC said the extension was granted as a result of glitches on the company’s registration portal as well as deference to the Micro, Small, and Medium Scale Enterprises sector.

However, the commission highlighted that the penalties are currently on hold for companies that fall within the bracket of the earlier deadline of January 1, 2023, given that the deadline for submission has been extended to April 1, 2024.

In addition, the CAC urged companies to take advantage of the window provided by the extension to file their annual returns with the commission.

The statement partly read, “Further to its earlier notice on Thursday, November 2, 2023, informing the general public that it shall commence the full application of the penalties prescribed by the Companies and Allied Matters Acts 2020 and the Companies Registrations 2021 against companies and each of their directors or officers for failures to file annual returns, the commission hereby extends the commencement date from 1st of January 2024 to 1st of April 2024.

“This extension has become necessary given the glitches presently experienced on the Company Registration Portal and in deference to the appeals from the Micro, Small and Medium Enterprises sector.

“All entities registered under the Companies and Allied Matters Act (Companies, Limited Liability Partnerships, Limited Partnerships, Business Names and Incorporated Trustees) are encouraged to take advantage of the window provided by this extension to file their annual returns to date with the commission.” .

Meanwhile, CAC noted that the deadline does not affect those whose penalty proceedings commenced before the date when the first notice was released.

Arsenal Extend Unbeaten Run Against Liverpool After Battling Draw At Anfield

By

Emenike Agu

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December 24, 2023

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Arsenal battled Liverpool to a 1-1 draw at Anfield in Saturday’s Premier League heavyweight clash.

The Gunners have now gone three consecutive games without defeat against Liverpool.

Also, it is back-to-back draws for the Gunners at Anfield in the Premier League.

The draw saw Arsenal remain top in the league table on 40 points while Liverpool are second with 39 points.

Arsenal took the lead on four minutes after a positive start as Gabriel Magalhaes headed in Martin Odegaard’s free kick.

Liverpool were back on level terms in the 29th minute thanks to Mohamed Salah, who received a long pass from Trent Alexander-Arnold, beat Oleksandr Zinchenko before rifling into the roof of the net.

The Reds should have sealed the win in the second half following a counter attack but Alexander-Arnold was his effort hit the cross bar.

Also, Jurgen Klopp’s men lost Kostas Tsimikas and Luis Diaz to injury.

Osimhen To Earn N206.6m Weekly In New Three-Year Deal

By

Emenike Agu

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December 24, 2023

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Napoli Insert N129.5B Release Clause In Contract

African Footballer of the Year, Victor Osimhen, has signed a new deal to stay at Napoli until 2026. The new deal is worth N9.9 billion (10m euros) yearly, which means the U-17 World Cup winner will earn N830.5 million monthly and N206.6 million every week.

In the new deal, any club that wants to prise Osimhen out of Napoli’s firm grips must be ready to cough out N129.5 billion (130m euros) to get the Nigerian gem.

According to football-italia.net Napoli President, Aurelio De Laurentiis, announced that latest development himself, posting the images of Osimhen signing the paperwork with only one word: ‘Done!’

The patron had already hinted at the deal on Friday night when telling TG1 it could be ‘the surprise gift under the Christmas Tree’ for his fans.
According to reports, including Sky Sport Italia, Fabrizio Romano and more, Osimhen’s new pay is the total sum after tax.

The release clause is valid only for clubs outside of Italy during the summer. Arsenal, Chelsea, Real Madrid and Paris Saint-Germain are unlikely to be put off by that kind of asking price.

Napoli paid N74.7 billion (€75m) plus bonuses to sign Osimhen from Lille in September 2020 and he helped them win the Scudetto, becoming the first ever African Capocannoniere of Serie A and African Player of the Year.

The 24-year-old scored 26 Serie A goals in 32 appearances in 2022-23 as he helped Napoli win their first league title in 33 years. Osimhen, who managed 31 goals in all competitions last season, was crowned the Italian footballers’ association player of the year earlier this month.
He also named as the African Footballer of the Year for 2023.

Osimhen said in November that he made a decision that was “good for his career” after being linked with a move to Saudi Arabia in the summer. His previous contract was scheduled to expire in 2025.

Napoli confirmed the extension to the forward’s contract on social media with a post that read “together until 2026” and a picture of Osimhen and club president, Aurelio De Laurentiis.