Banking and Finance

Reduce tax of low income earners, expert advises FG

Mr Okechukwu Unegbu, a financial expert, has advised the Federal Government to reduce tax of low income earners and small investors to encourage investments, boost job creation and grow the nation’s economy.

Unegbu, who is a former President of the Chattered Institute of Bankers of Nigeria (CIBN), gave the advice in an interview with News Agency of Nigeria recently in Abuja.

According to him, reducing tax of low income earners and small investors will encourage more investments, boost job creation and grow the national economy.

Income tax: FIRS inaugurates online portal for financial institutions

The Federal Inland Revenue Service (FIRS) says it has inaugurated a new Automatic Exchange of Information-Common Reporting Standard (AEOI-CRS) system for the use of financial institutions in the country.

FIRS Director, Communications and Liaison, Mr Abdullahi Ahmad, said this in a statement in Abuja on Sunday.

Ahmad said the step was part of the service’s ongoing reforms to align the nation’s tax system with global standards.

Naira firms 9.7% on black market on plans to sell FX to currency operators

The Nigerian currency firmed sharply on the black market on Tuesday, gaining 9.65% to 435 naira against the U.S. dollar, traders said, citing the central bank’s plan to restart forex sales to bureaux de change, Reuters reports.

 

The central bank said in a circular on Thursday that it would commence forex sales to retail currency operators from Aug. 31 and would sell $10,000 twice weekly to each of the 2,991 operators.

 

External reserves reverse negative trend, rises to $35.7b

The nation’s external reserves rose for the first time in 12 weeks, to $35.66 billion last week.

 

This was stated on the data of Central Bank of Nigeria (CBN), reserves rose to $35.66 billion on Thursday last week, from $35.59 billion previous week. This represents the first week-on-week, WoW, increase in the external reserves since June 4, 2020, when it recorded WoW increase of $64 million.

 

Assets under management of AMCON hit ₦136.73b

The Asset Management Corporation of Nigeria (AMCON) assets under management hit N136.73bn while it has about N112.03bn worth of propriety assets.

 

This was disclosed by the Managing Director/Chief Executive Officer of AMCON, Mr Ahmed Kuru, in a statement on Sunday entitled, “AMCON N5tn debt: AMCON, Senate collaborates to drive recovery.”

 

The committee met to review the impact of COVID-19 on AMCON policies and process with the view to repositioning AMCON for optimal performance amidst the pandemic.

 

Capital Importation Report: Foreign Investment at 3-year Low

The total capital imported into Nigeria contracted 78.6% y/y and 77.9% q/q to $1.3bn in Q2:2020, the weakest level since $1.0bn in Q2:2016. The sharp decline in Q2:2020 can mainly be attributed to the heightened risks brought by the COVID-19 pandemic which resulted in weak sentiment in emerging markets and foreign capital outflows. 

CBN disburses lower denomination banknotes worth ₦237.14b

The Central Bank of Nigeria (CBN) it disbursed lower denomination banknotes worth N237.14 billion to microfinance banks (mfbs), merchants, shopping malls, market associations among others in 2019, to increase the circulation of such notes in the country.

This was disclosed in the 2019 annual report of Apex bank released yesterday.

Credit to economy rises 6.3% to ₦38tr in H1’2020

Credit to the economy rose by 6.3 percent to N38 trillion in the first half of the year (H1’2020) pushed by 9.85 percent increase in credit to the federal government.

The Central Bank of Nigeria (CBN) disclosed in its Deposit Corporation Survey for June that banks were able to grow their current account (demand) deposits by 21.7 percent or N1.84 trillion in H1’2020, defying the severe impact of COVID-19 pandemic on economic activities during the period.

Banks implement new CBN guidelines on debt recovery

Banks have commenced the implementation of the new Central Bank Nigeria (CBN) guidelines on debt recovery of debtors from other banks.

Mr. Peter Esele, a former president of Trade Union Congress said the guideline was long overdue.

He said, “The financial system has been abused and it is baffling that one man would be owing six banks in the same country; it can’t happen anywhere else.

“What the CBN is doing now is that it is sanitising the industry and we now actually know who are the real businessmen and the real big men.

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