Economy

By Uzair Adam

The Central Bank of Nigeria (CBN) has instructed all Deposit Money Banks (DMBs) across the country to ensure continuous cash disbursement to customers.

The Daily Reality reports that the bank urged members of the public to report banks that fail to comply.

In a circular issued to DMBs and the general public, and shared on the bank’s verified X (formerly Twitter) handle on Tuesday, the apex bank emphasized its commitment to enforcing compliance through intensified oversight and sanctions on erring banks.

The CBN Governor, Yemi Cardoso, assured that sufficient banknotes had been distributed to all banks based on their capacity, eliminating any reason for a cash shortage as the festive season approaches.

Titled ‘Cash Availability Over the Counter in Deposit Money Banks and Automated Teller Machines,’ the circular outlined guidelines for improving currency circulation in the economy.

“As part of ongoing efforts, the CBN directs DMBs to ensure efficient cash disbursement both over the counter and through ATMs. The bank will continue to monitor compliance closely,” the statement read.

The CBN also provided reporting channels for the public to lodge complaints about cash shortages.

Customers are required to submit details, including the name of the bank, location, amount, and date of the incident, through designated phone numbers or email addresses provided for each state.

The circular, jointly signed by Acting Director of Currency Operations Solaja Mohammed Olayemi and Acting Director of Branch Operations Isa-Olatinwo Aisha, took effect on December 1, 2024.

By Talent Akpan 

Nigeria’s economy has been heavily reliant on oil exports for decades, accounting for approximately 70% of government revenue and 90% of foreign exchange earnings. This dependence has far-reaching consequences, affecting various aspects of the country’s economic, environmental, and social landscape.

The country’s over-reliance on oil has hindered the development of other sectors, such as agriculture, manufacturing, and services. This lack of diversification makes Nigeria vulnerable to fluctuations in global oil prices, leading to economic instability and uncertainty. Moreover, oil wealth has fuelled corruption, with estimates suggesting billions of dollars lost to mismanagement and embezzlement.

Furthermore, oil exploration and production have devastated Nigeria’s environment, particularly in the Niger Delta region. The degradation of natural habitats and resources severely affects local communities, affecting their livelihoods and well-being.

Despite these challenges, opportunities exist for diversification. Nigeria has vast agricultural potential, with opportunities for growth in crops like cassava, rice, and maize. Developing manufacturing sectors, such as textiles and electronics, can create jobs and stimulate economic growth. Growing the services sector, including finance, tourism, and IT, can reduce reliance on oil. Investing in renewable energy sources, like solar and wind power, can also reduce dependence on fossil fuels.

Policy reforms are necessary to mitigate the risks associated with oil dependence. Diversification strategies, investments in human capital, transparency and accountability, and economic reforms can promote sustainable economic growth and development.

Some potential strategies for diversification include:

– Developing infrastructure to support non-oil sectors

– Providing incentives for private sector investment

– Enhancing education and training programs

– Encouraging foreign investment

– Promoting entrepreneurship and innovation

However, implementation challenges exist. Institutional weaknesses require strengthening, powerful interests may resist reforms, and Nigeria’s infrastructure requires significant investment to support non-oil sectors.

Addressing these challenges will require cooperation from various stakeholders, including government officials, private sector leaders, and civil society organisations. Nigeria can reduce its reliance on oil and build a more sustainable, diversified economy by working together.

Nigeria’s oil dependence poses significant economic, environmental, and social challenges. Diversification and policy reforms can mitigate these risks and promote sustainable economic growth and development.

Talent Bassey wrote via basseytalent@yahoo.com.

By Uzair Adam

The Presidency has dismissed concerns that the proposed tax reform bills currently before the National Assembly will impoverish northern Nigeria or disproportionately favor Lagos and Rivers states.

In a statement issued on Monday, presidential spokesperson Bayo Onanuga emphasized that the reforms are designed to improve the quality of life for all Nigerians, particularly the disadvantaged, by simplifying tax administration and fostering a better business environment.

The statement addressed apprehensions raised by Borno State Governor Babagana Zulum, who had suggested that the proposed Value Added Tax (VAT) sharing formula could be skewed in favor of Lagos and Rivers states.

Onanuga, however, described these concerns as unfounded and based on misinformation.

“The tax reform bills will not make Lagos or Rivers states wealthier at the expense of other regions, nor will they lead to the economic marginalization of any part of the country,” Onanuga stated.

He urged Nigerians to reject any attempt to polarize the nation over the proposed legislation.

Onanuga also clarified that the bills do not seek to abolish key federal agencies such as the Tertiary Education Trust Fund (TETFUND), the National Agency for Science and Engineering Infrastructure (NASENI), or the National Information Technology Development Agency (NITDA), which will continue to receive funding through budgetary allocations.

The spokesperson reiterated that President Bola Tinubu’s fiscal policy reforms aim to ease the tax burden on businesses, streamline tax collection, and support national development.

Meanwhile, former Speaker of the House of Representatives Yakubu Dogara called on Northern leaders to approach the tax reform bills pragmatically rather than with ethnic or religious sentiments.

Speaking during a Channels Television town hall in Abuja on Monday, Dogara stressed the importance of prioritizing the region’s future development.

“We Northern leaders must set aside ethnicity and religious biases and focus on the realities these reforms will bring,” Dogara said.

He also criticized senators who claimed there was insufficient consultation on the bills, questioning their own legislative practices.

“How often do they consult the public when making laws? Some state laws are drafted in governors’ living rooms,” Dogara remarked, dismissing the argument that public opinion outweighs the potential impact of the reforms.

Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal and Tax Reforms, explained that the bills aim to empower subnational governments to enhance revenue generation and achieve fiscal self-sufficiency.

By Abdullahi Mukhtar Algasgaini

Senator Orji Kalu, who represents Abia North at the upper legislative chamber has revealed that the federal government made a mistake not to have carried the National Executive Council, Nigeria Governor’s Forum, and the Council of State along in its tax reform bills.

Kalu disclosed this on Monday in an interview with Arise Television on the controversial tax reform bills.

Recall that Senator Mohammed Ali Ndume, the Northern Governor’s Forum, the National Economic Council, and others have openly opposed the tax reforms.

However, Orji noted that the bills are very progressive and would bring back fiscal federalism in Nigeria.

Meanwhile, he faulted the initiators of bills for not carrying key stakeholders along saying, “As I told you before, the bill is very progressive. It will bring back fiscal federalism. Many senators have not been briefed. I think the federal government made a mistake. The initiators of the bills would have briefed the National Economic Council, Governors’ forum”.

Recall tax reform bills, including the Nigeria Tax Bill 2024, the Tax Administration Bill, the Nigeria Revenue Service Establishment Bill, and the Joint Revenue Board Establishment Bill, were sent to the National Assembly for passage since October 2024.

The bills gained momentum last week when they secured second-reading passage at the Senate.

This comes after the Northern Governor’s Forum and National Economic Council called for the bill’s withdrawal.

Meanwhile, DAILY POST reports that economic experts have backed the tax reform bill on the grounds that it will boost Nigeria’s revenue.

However, Taiwo Oyedele, Chairman of the Presidential Fiscal Policy and Tax Reforms Committee had earlier in his contributions, explained why the tax bills generated so much controversy.

By Uzair Adam

Nigerian military troops have intensified their nationwide operations, eliminating 135 terrorists, apprehending 185 suspects, and rescuing 129 kidnapped victims within the past week.

The Director of Defence Media Operations, Maj.-Gen. Edward Buba, provided the update during a briefing at the Defence Headquarters in Abuja on Saturday.

He disclosed that in the North Central region, some terrorists have begun surrendering due to sustained military offensives and collaborative non-kinetic engagements with community stakeholders.

Among those who surrendered are notable figures such as Yellow Jambros, Alhaji Mallam, Ardo Idi (Alhaji Lawal), Lawal Kwalba, Salkado, Yellow Ibrahim, Gana’e, and Babangida.

Buba emphasized that the military would maintain its operational momentum to dismantle terrorist networks and encourage further surrenders.

During the operations, troops recovered 113 weapons and 2,415 rounds of ammunition, including 72 AK-47 rifles, 11 fabricated guns, 15 Dane guns, eight pump-action shotguns, and four hand grenades. They also seized 46 motorcycles, 15 vehicles, 28 mobile phones, and various communication devices.

In the Niger Delta, troops destroyed 93 crude oil cooking ovens, 12 dugout pits, 37 boats, and 82 illegal refining sites.

They also recovered 909,800 litres of stolen crude oil, 71,060 litres of illegally refined diesel, and 13,580 litres of petrol.

Maj.-Gen. Buba reiterated the military’s commitment to addressing Nigeria’s security challenges, stating, “We remain in a winning position in this war and will continue to innovate in our approach.”

By Anwar Usman

The Chairman of the Nigerian Automobile Technicians Association, Kano State Council, Yahya Ibrahim, on Wednesday, lamented over the negative impact of the fuel subsidy removal on the livelihoods of the association’s members.

Ibrahim, noted this during a courtesy visit to the Chairman, Rano Local Government Area, he explains that the severe poverty being faced by mechanics was as a result of the puel subsidy removal.

The Zonal Information officer, Rabiu Kura, in a press statementsaid “40 per cent of mechanics in Kano are out of business due to the fuel subsidy removal, a situation that rapidly led to the decline of patronage of motorists.”

He explained that low patronage from motorists, who are struggling with the ongoing economic challenges, has led to a significant decline in business.

He called on the Kano State Government to intervene and provide support to help mechanics stay afloat.

The visit coincides with preparations for the NATA’s upcoming local government council election.

Earlier, the association’s Secretary, Sani Umar, praised Governor Abba Yusuf for his readiness to establishing a mechanical village in Kano.

In his remarks, the council Chairman, Muhammad Yau, thanked them for the visit and prayed for a successful election.

By Uzair Adam

The Central Bank of Nigeria (CBN) has assured that the country’s Deposit Money Banks (DMBs) remain resilient amid ongoing internal and external economic challenges.

CBN Governor Yemi Cardoso made this known on Tuesday in Abuja while presenting the communiqué from the 298th meeting of the Monetary Policy Committee (MPC).

Cardoso stated that the MPC commended the sustained stability of the banking system despite various economic headwinds.

“Key financial soundness indicators, such as the Capital Adequacy Ratio (CAR), Non-Performing Loan ratio (NPL), and Liquidity Ratio (LR), continue to reflect the strength of the sector,” he said, adding that the CBN will maintain close monitoring to ensure banks adhere to regulatory thresholds and remain healthy.

The MPC also highlighted the CBN’s ongoing efforts to deepen financial inclusion, aiming to enhance the effectiveness of monetary policy transmission.

Addressing inflation, Cardoso noted that data from the National Bureau of Statistics (NBS) revealed a rise in headline inflation to 33.88% in October, up from 32.70% in September.

On a month-on-month basis, inflation increased to 2.64% in October from 2.52% in the previous month.

Food inflation climbed to 39.16% in October from 37.77% in September, while core inflation rose to 28.37%, compared to 27.43% in the preceding month.

Despite the inflationary trend, the MPC observed a slight moderation in the prices of farm produce and commended the Federal Government’s efforts to boost productivity in the agricultural sector.

On economic growth, Cardoso disclosed that Nigeria’s Gross Domestic Product (GDP) grew by 3.46% year-on-year in the third quarter of 2024, driven by both the oil and non-oil sectors.

The non-oil sector expanded by 3.37%, while the oil sector recorded a 5.17% growth.

Additionally, Nigeria’s external reserves increased to $40.88 billion as of November 21, up from $40.06 billion at the end of October, providing enough to finance 17 months of imports.

By Uzair Adam

The Kano State Public Complaints and Anti-Corruption Commission has uncovered warehouses where federal government palliative rice, marked as “not for sale” and bearing the image of President Bola Tinubu, was being re-bagged for potential resale.

The operation, led by the commission’s chairman, Muhuyi Magaji Rimingado, revealed the illicit handling of approximately 28 trucks of 50kg rice, valued at over N1.4 billion, around the Kano Western Bypass.

“This is a serious case of mismanagement and diversion of public goods. These palliatives were meant for the poor and vulnerable, but some individuals are profiting from the people’s suffering,” Rimingado stated during the raid on Tuesday.

One suspect has been apprehended, and investigations are underway to identify others involved in the scheme.

The commission pledged to recover the diverted palliatives and ensure their proper distribution to intended beneficiaries.

Rimingado assured the public of the commission’s commitment to holding those responsible accountable, stating, “We will leave no stone unturned in bringing those behind this act to justice.”

The incident has sparked outrage among residents, with many condemning the misuse of resources meant for the less fortunate.

A community leader in Hotoro, Garba Isah, described the act as “shameful and heartless,” adding, “People are struggling, yet some individuals are stealing from the poor. We commend the anti-graft agency for their swift action.”

The commission has urged citizens to remain vigilant and report any suspicious activities involving government relief materials.

It reaffirmed its dedication to transparency and accountability in addressing corruption and ensuring public resources reach the vulnerable.

By Uzair Adam

Indian Prime Minister Narendra Modi visited the Aso Rock Presidential Villa on Sunday as part of his official tour of Nigeria.

President Bola Ahmed Tinubu, along with other top government officials, welcomed Modi and his delegation to the nation’s seat of power.

The two leaders are expected to hold discussions aimed at strengthening bilateral relations between Nigeria and India.

This marks the first visit by an Indian Prime Minister to Nigeria since Dr. Manmohan Singh’s state visit in 2007, during which both countries established a strategic partnership.

Modi’s arrival on Saturday signifies a renewed focus on fostering ties between the two nations.

By Uzair Adam

The Economic and Financial Crimes Commission (EFCC) has brought charges against two individuals, Ojobo Joshua and Aliyu Hashim, accused of impersonating the commission’s Executive Chairman, Ola Olukoyede, in an attempt to extort $1 million from former Nigerian Ports Authority (NPA) Managing Director, Mohammed Bello-Koko.

The Daily Reality gathered that the suspects appeared on Wednesday before Justice Jude Onwuebuzie of the Federal Capital Territory High Court in Apo, Abuja.

According to EFCC reports, Joshua and Hashim allegedly contacted Bello-Koko, claiming they could influence a supposed investigation against him.

They demanded $1 million to secure favorable treatment, threatening him with arrest and prosecution if he did not comply.

The defendants face a four-count charge under the Advanced Fee Fraud and Other Fraud Related Offences Act, 2006, which includes allegations of impersonation and attempted fraud.

Court proceedings revealed that on September 28, 2024, the duo allegedly sought $700,000 from Bello-Koko to halt a non-existent EFCC investigation.

Both defendants pleaded not guilty. EFCC counsel Elizabeth Alabi requested that the suspects remain in custody until their trial, while the defense applied for bail.

Justice Onwuebuzie granted bail to Joshua under stringent conditions, including a bond of N100 million and two level-16 civil service sureties.

Both defendants are to be held at Kuje Correctional Centre until bail conditions are met, with the second defendant’s bail hearing scheduled for November 18, 2024.

The two suspects, allegedly part of a four-man syndicate posing as EFCC officials, were arrested on August 28, 2024, in Abuja’s Garki and Apo areas.