Business

World Bank To Help Rebuild North East – Official

Published

10 years ago

October 9, 2015

The World Bank says it is realigning its Country Partnership Strategy (CPS) for Nigeria to support the rebuilding of the North East and other priorities of the Federal Government.
The Lead Economist and Programme Leader of the World Bank Country Office in Nigeria, Mr Khwima Nthara, stated this in a chat with newsmen in Abuja on Tuesday.
Nthara said that the strategy, which was inaugurated in April, was a four-year support framework designed to aid the government’s key development programmes.
“When President Muhammadu Buhari went to Washington, he asked the President of the World Bank for support to the North East and you heard the announcements that were made around that visit. “So right now, one of the areas that we are also going to focus on as we align our support to the priorities of the government is indeed on our support to the North East in terms of helping with the recovery and reconstruction going forward.
He further said that there would be other areas that we would be in discussion with the government. We don’t yet have a cabinet as you know. Once the cabinet is in place there will be further discussions with the policy makers of each ministry in terms of how we support the government’s priorities going forward. So, there has been no change in position in terms of the World Bank’s support to Nigeria in terms of amount except that we need to align our support to the priorities of the new government.’’
Nthara stated that the country’s economic growth over the years had not impacted significantly on the people’s living standard largely because it occurred in sectors that were not labour intensive.
He cited the agricultural sector, which employs nearly 89 per cent of the population, saying that it had been growing at between two and six per cent since 2011.
According to him, the bulk of the country’s Gross Domestic Product is coming from the services sector where not many Nigerians are employed compared with agriculture. For growth to translate into a reduction in poverty you have to look at two main channels. The first is to what extent is that growth happening in those sectors that are also labour intensive?
“It is only when people earn incomes that their poverty can be reduced. So, if growth is taking place in those sectors that employ more people, then obviously they will benefit more in terms of incomes they earn and that should translate into a reduction in poverty. So, what has been seen over the past couple of years is that perhaps growth has taken place in some of those sectors that are not very labour intensive.
He also said, the second point is that what is the government doing to ensure that it uses public policy in whatever form to translate that growth into a reduction in poverty?
“For example, supposing growth is taking place in a sector such as oil where not many are employed, and yet that growth is generating higher revenues, how is the government utilising those revenues to ensure that either it empowers more people to have the skills and access to jobs or to deal with the bottlenecks that the economy is facing to create jobs or ensure that growth takes place in labour intensive sectors?
“In Nigeria, it has been said that agriculture is employing more than half of the labour force and yet productivity has been very low.
“In other words jobs in that sector have not been well remunerative. So to what extent do you make sure that as the economy grows, productivity in that sector also grows?
“One of the structural measures should also include improving productivity in agriculture, because yes you may have more people employed in that sector, but they are not earning as much.’’
The World Bank programmes leader identified power and education as two critical sectors that the government should prioritise to improve the living conditions of the people.
Nthara applauded the Single Treasury Account (TSA) policy of the Buhari government, saying it would give the government a clear picture of its position at all times.
“The principle of the TSA is very simple, that you want to have a more comprehensive view of your cash position as a government.

Business

FIRS Clarifies New Tax Laws, Debunks Levy Misconceptions

Published

4 hours ago

December 5, 2025

The Tide

The Federal Inland Revenue Service has said that Nigeria’s newly enacted tax laws are designed to strengthen economic competitiveness, attract investments, and improve long-term fiscal stability.

The agency also clarified that the much-debated four per cent development levy on imported goods is not a new or additional tax burden, but a streamlined consolidation of several existing levies.

According a statement released Wednesday, one of the most misunderstood elements of the new tax framework is the four per cent development levy with the agency explaining that the levy replaces a range of fragmented charges — such as the Tertiary Education Tax, NITDA Levy, NASENI Levy and Police Trust Fund Levy — that businesses previously paid separately.

This consolidation, it said, reduces compliance costs, eliminates unpredictability and ends the era of multiple agency-driven levies. The law also exempts small businesses and non-resident companies, offering protection to firms most vulnerable to economic shocks.

Another major clarification relates to Free Trade Zones. Earlier commentary had suggested that the government was rolling back the incentives that have attracted export-oriented investors for decades. However, the reforms maintain the tax-exempt status of FTZ enterprises and introduce clearer guidelines to preserve the purpose of the zones.

“Under the new rules, FTZ companies can sell up to 25 per cent of their output into the domestic market without losing tax exemptions. A three-year transition period has also been provided to allow firms to adjust smoothly.

“Government officials say the reforms aim to curb abuses where companies used FTZ licences to evade domestic taxes while competing within the Nigerian market”, it said.

With the new measures, Nigeria aligns with global FTZ models in places like the UAE and Malaysia, where the zones function primarily as export hubs for logistics, manufacturing and technology.

The introduction of a 15 per cent minimum Effective Tax Rate for large multinational and domestic companies has also been met with public concern. But the FIRS notes that this policy aligns with a global tax agreement endorsed by over 140 countries under the OECD/G20 framework.

Without this adoption, Nigeria risked losing revenue to other countries through the “Top-Up Tax” mechanism, where the home country of a multinational collects the difference when a host country charges below 15 per cent. By localising the rule, Nigeria ensures that tax revenue from multinational operations remains within its borders.

Business

CBN Revises Cash Withdrawal Rules January 2026, Ends Special Authorisation

Published

5 hours ago

December 5, 2025

The Tide

The Central Bank of Nigeria (CBN) has revised its cash withdrawal rules, discontinuing the special authorisation previously permitting individuals to withdraw N5 million and corporates N10 million once monthly, with effect from January 2026.

In a circular released Tuesday, December 2, 2025, and signed by the Director, Financial Policy & Regulation Department, FIRS, Dr. Rita I. Sike, the apex bank explained that previous cash policies had been introduced over the years in response to evolving circumstances.

However, with time, the need has arisen to streamline these provisions to reflect present-day realities.

The statement said the new set of cash-related policies is designed to reduce the cost of cash management, strengthen security, and curb money laundering risks associated with the economy’s heavy reliance on physical currency.

“These policies, issued over the years in response to evolving circumstances in cash management, sought to reduce cash usage and encourage accelerated adoption of other payment options, particularly electronic payment channels.

“With the effluxion of time, the need has arisen to streamline the provisions of these policies to reflect present-day realities,”

“Effective January 1, 2026, individuals will be allowed to withdraw up to N500,000 weekly across all channels, while corporate entities will be limited to N5 million”, it said.

According to the statement, withdrawals above these thresholds would attract excess withdrawal fees of three percent for individuals and five percent for corporates, with the charges shared between the CBN and the financial institutions.

Daily withdrawals from Automated Teller Machines (ATMs) would be capped at N100,000 per customer, subject to a maximum of N500,000 weekly stating that these transactions would count toward the cumulative weekly withdrawal limit.

The special authorisation previously permitting individuals to withdraw N5 million and corporates N10 million once monthly has been discontinued.

The CBN also confirmed that all currency denominations may now be loaded in ATMs, while the over-the-counter encashment limit for third-party cheques remains at N100,000. Such withdrawals will also form part of the weekly withdrawal limit.

Deposit Money Banks are required to submit monthly reports on cash withdrawals above the specified limits, as well as on cash deposits, to the relevant supervisory departments.

They must also create separate accounts to warehouse processing charges collected on excess withdrawals.

Exemptions and superseding provisions
Revenue-generating accounts of federal, state, and local governments, along with accounts of microfinance banks and primary mortgage banks with commercial and non-interest banks, are exempted from the new withdrawal limits and excess withdrawal fees.

However, exemptions previously granted to embassies, diplomatic missions, and aid-donor agencies have been withdrawn.

The CBN clarified that the circular is without prejudice to the provisions of certain earlier directives but supersedes others, as detailed in its appendices.

Business

Shippers Council Vows Commitment To Security At Nigerian Ports

Published

7 hours ago

December 5, 2025

The Tide

The Nigerian Shippers Council (NSC)has restated its commitment towards ensuring security at Nigerian seaports.

Executive Secretary/Chief Executive Officer of the Council, Dr Pius Akuta, said this in Port Harcourt, while declaring open a one day workshop organized by the Nigerian Shippers Council in collaboration with the Nigerian police( Marin Division).

Theme for the workshop was ‘Facilitating Port Efficiency; The strategic Role of Maritime police “

Akuta who was represented by the Director, Regulatory Services, Nigerian Shippers Council, Mrs Margeret Ogbonnah, said the workshop was to seek areas of collaboration with security agencies at the Ports with a view to facilitating trade

Akuta said the theme of the workshop reflects the desire of the council and the Nigerian police to build capacity of police officers for better understanding and administration of their statutory roles in the Maritime environment.

He said Nigerian seaports has constantly been reputed as one of the Port with the longest cargo dwell in the world, adding,”This is so, because while it takes only six hours to clear a containerized cargo in Singapore Port, seven days in Lome Port, it takes an average of 21 days or more in Nigerian Ports” stressing that this situation which has affected the global perception index on Ease of Doing Business in Nigerian seaports must be addressed.

Akuta said NSC which is the economic regulator of the Ports has the responsibility of ensuring that efficiency is established in the Ports inorder to attract patronages.

“Pursuant to its regulatory mandate, the NSC has been collaborating with several agencies to ensure the facilitation of trade and ease of movement of cargo outside the Ports to avoid congestion”he said.

Also speaking the commissioner of police, Eastern Port Command, Port Harcourt, CP Tijani Fakai, said Maritime police has played some roles in facilitating Ports efficiency.

He listed some of the roles to include ensuring security and crime prevention at the Ports, checking of illegal fishing activities at the Ports, checking of human trafficking and drug smuggling and prevention of fire incident at the Ports.

Represented by ACP, Rufina Ukadike, the CP said police at the Ports have also helped in the decongestion and prevention of unauthorized Anchorage.

He commended the Nigerian Shippers Council for the workshop and assured of continuous collaboration.

Speaking on the dynamics of cargo handling, Deputy Controller of customs, Muhydeen Ayinla Ayoola, said the launching of electronic tracking system and dissolution of controller General Taskforce has helped to ensure efficiency at the Ports.

Ayoola who represented the custom Area Controller Port Harcourt 1 Area command, however raised concerned over rising national security threat , which according to him has affected efficiency at the Ports.

John Bibor