Banking and Finance

Lease agreements, others must carry new Adhesive Stamp Duty –FIRS

The Federal Inland Revenue Service (FIRS) has alerted Nigerians and others resident in the country to make sure that documents pertaining to rent or lease agreements for their homes or offices, Certificate of Occupancy (C of O) as well as a list of other common business-related transactions are subject to authentication with the new FIRS Adhesive Stamp Duty.

The FIRS Executive Director, Mr. Muhammad Nami, explained that this became necessary in order to give the documents the force of law and make them legally bidding on all parties involved in such transactions.

Nigeria weakens naira at retail FX auction in a move to align rates

Nigeria’s central bank asked lenders to bid for forex at an auction 5% above its official rate of 360, traders said, in a move to weaken the naira as the regulator seeks to unify its multiple exchange rates.

The central bank said last week it will work towards the gradual unification of exchange rates across all forex windows. It has operated a multiple rate regime which it has used to mask pressure on the naira and to absorb the impact of lower oil prices.

Nigeria's debt rose to ₦28.62tr as of March –Debt Office

Nigeria’s total public debt rose to 28.62 trillion naira ($79.5 billion) as of March, up 15% from a year earlier, the Debt Management Office (DMO) said on Friday.

Africa’s largest economy has been racking up debt to fund infrastructure projects and boost a sluggish economy now projected to fall into recession following the impact of an oil price crash triggered by the coronavirus pandemic, Reuters reports.

Total public debt stood at 24.94 trillion naira in the first quarter of 2019.

FIRS records increase in stamp duty collection

Despite the global economic downturn triggered by COVID-19 which has also had significant impact on the Nigerian economy, the Federal Inland Revenue Service (FIRS) has recorded an exponential growth of 1,000 per cent in revenue accruing from Stamp Duty collection in the first five months of 2020.

Consequently, the FIRS has remitted N66 billion into the Federation Account through the Stamp Duty instrument from January, 2020 to May, 2020.

Nigeria needs to deepen reforms to boost growth, revenues -World Bank

Nigeria needs to deepen economic reforms and boost government revenues in order to have a sustained recovery after a coronavirus-induced oil price shock that slashed income and weakened its currency, the World Bank’s country director told Reuters on Friday.

Shubham Chaudhuri said Nigerians are aware they cannot simply wait for oil prices to recover as happened during the last crisis in 2016 to rebuild the economy, particularly with the health crisis caused by the pandemic.

Nigeria inflation rises in May, lifted by food and drug prices

Annual inflation in Nigeria rose for the ninth straight month in May, lifted by higher food and drug prices, the statistics office said on Wednesday, as the new coronavirus pandemic disrupted logistics and economic activities, Reuters reports.

Inflation, a measure of living costs, climbed to 12.4% in May, its highest level in more than two years, from 12.34% the previous month, the National Bureau of Statistics said.

Nigeria: AfDB approves $288.5m to curtail coronavirus impact on economy

The African Development Bank has approved 288.5 million dollars loan to help Nigeria tackle the COVID-19 pandemic and mitigate its impact on the economy.

The bank’s Communications and External Relations Department made this known in a statement on Saturday.

It explained that the loan would bolster the government’s plans to improve surveillance and response to COVID-19 emergencies, ease the impact on workers and businesses, as well as strengthen the social protection system.

Foreign direct investment dropped to $214.25m in Q1 –NBS

Foreign Direct Investment into the country dropped to $214.25m in the first quarter of 2020 from $257.25m in the fourth quarter of 2019.

The National Bureau of Statistics disclosed this in its report on ‘Nigerian capital importation’ for the first quarter of 2020.

According to the NBS, the FDI which stood at $247.37m in Q1 2019, fell to $223.14m and $206.58m in Q2, 2019 and Q3, 2019 respectively.

The FDI is an investment made by a firm or individual in one country into business interests located in another country.

Capital importation into Nigeria at $5.8b in Q1 -Statistics Bureau

The total value of capital importation into the country stood at 5.8 billion dollars in the first quarter  of 2020.

This was made known by National Bureau of Statistics (NBS) in their latest report “Capital Importation” released today.

It showed  that the amount represented an increase of 53.97 per cent compared to Q4 2019 and -31.19 decrease compared to the first quarter of 2019.

Nigeria’s GDP grew by 1.87% in Q1

Nigeria’s Gross Domestic Product (GDP) grew by 1.87% (year-on-year) in real terms in Q1 2020. This is according to the first quarter (Q1) GDP report, released by the National Bureau of Statistics (NBS) on Monday.

According to numbers contained in the Bureau’s report, the performance recorded in Q1 2020 represents a drop of 0.23% points compared to Q1 2019 (2.10%) and 0.68% points decline compared to Q4 2019 (2.55%), reflecting the earliest effects of disruption caused by Covid-19 pandemic and crash in oil price.