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.