Index to Nigerian Newspapers

The International Monetary Fund (IMF) has advised Sub-Saharan African countries to eliminate tax exemptions and increase domestic revenue to reduce fiscal deficits, rather than reducing fiscal expenditure. The IMF also suggested that increasing women's participation in the labor force could boost GDP by about 8% in the coming years, despite the weakest medium-term growth outlook in over 30 years.

Nigeria's Federal Government plans to overhaul its tax system, aiming to increase the tax burden to wealthy citizens and reduce corporate taxes. This move is part of President Bola Tinubu's economic reforms, aiming to lift the country's tax take to 18% of GDP within three years. The plan aims to protect the poor and address widespread tax evasion in Africa.

Nigeria’s total debt (Federal Government and states’ loans) may hit at least N107.38tn soon following the approval of fresh borrowings for the Federal Government and the new securitization of the Central Bank of Nigeria’s N7.3tn Ways and Means advances. This is as the Senate, as of December 2023, approved President Bola Tinubu’s request to borrow $7.8 billion and €100 million as part of the Federal Government’s 2022–2024 borrowing plan. According to Tinubu, the Federal Executive Council under former President Muhammadu Buhari approved the loan facility on May 15, 2023, to finance infrastructure, health, education, agriculture, insecurity, and other sectors. While asking for approval, he said the foreign loan was necessary to bridge the financial gap and return normalcy to economic activities in the country. Nigeria’s total debt as of the end of September 2023 was N87.91tn, according to data from the Debt Management Office. The breakdown of this debt revealed total external debt as N31.98tn ($41.59bn) and total domestic debt of N55.93tn. The total debt includes that of the federal government and state governments. Following the recent approvals by the senate, total debt will climb up by at least 22.15 percent (N19.47 trillion) to N107.38 trillion in 2024 if the borrowing plan is followed.

Dollar supply in the official foreign exchange market rose by 180.59 percent to $440.13m on Friday. This is as the naira closed the week at N1435.53/$ on Friday after what was a turbulent week. According to data from FMDQ Security Exchange, forex turnover rose by 180.59 percent to $440.13m on Friday from $156.86m on Thursday. However, aside from commercial banks, the Central Bank of Nigeria, oil firms and multinationals also sell dollars at NAFEM. The improved liquidity is following moves by the Central Bank of Nigeria to stabilise the foreign exchange rate. Before closing at N1435.53/$ on Friday, the naira traded at an intraday high of N1526/$ and low of N838.96/$. Last week, the apex bank rolled out new circulars and guidelines to boost liquidity and narrow the gap between the parallel and official rates of the foreign exchange market. In its most significant foreign exchange guideline, last week, the CBN ordered banks to adjust their FX exposures. At the parallel market, on Friday, the naira closed at N1,420/$ with a steady demand for the greenback.

The Federal Government through the Central Bank of Nigeria, has commenced payment of outstanding matured FX forwards owed to various creditors, The PUNCH reports. A source familiar with the development confirmed the payment on Thursday. Meanwhile, unconfirmed sources said three banks received full payment of debts owed. The banks are Citi Bank, Stanbic IBTC and Standard Chartered Bank. The amount of overdue forward payments is estimated at $6.7 billion, according to the Minister of Finance, Wale Edun. This represents an appreciation of N50 or 4.27 per cent compared to the N1,170 it traded for on Wednesday. Currency traders, also known as Bureaux De Change operators, who spoke to The PUNCH stated the naira was recovering well after making a quick recovery from N1,170/dollar in the morning to close trading at N1,120/dollar. However, there are commercial banks in the system that are not happy with the CBN because they have yet to receive any credit alert. Sources at the CBN who spoke to The PUNCH unofficially said, "The banks who have not received payments are grumbling, alleging that the Apex bank has denied them of their rights."

In a move to eliminate multiple taxation, the Presidential Committee on Fiscal Policy and Tax Reforms has proposed the stoppage of 190 taxes choking businesses in the country. The panel presented its "Quick Win Report" to President Bola Tinubu, who endorsed its far-reaching recommendations on tax and fiscal policies during a brief ceremony at the Presidential Villa, Abuja, on Tuesday. The Organised Private Sector, which backed the proposal of the committees blamed states for multiple taxation in the country. The OPS lamented that multiple taxes had compounded the rising production costs, leading to reduced profit margins, supply chain disruptions, and a reduction in consumer spending. Specifically, the telecommunication operators complained that the sector was one of the most taxed in the country with over 40 taxes directed at telecom firms. In response to the toxic business environment, the President inaugurated the fiscal policy and tax reforms in August which was tasked with improving the nation's revenue profile and business environment. Responding to the committee's presentation, the President commended their work and assured them of his support for the review and implementation of key recommendations.