Business

‘Nigeria Needs To Address Constraints Of Exportable Commodities’

Published

8 years ago

July 31, 2017

The Minister of Budget and National Planning, Sen. Udoma Udo Udoma, has said that to build a competitive global economy, the nation needs to address constraints of other exportable commodities.
He said this during the public consultation on the 2018-2020 Medium Term Expenditure Framework, (MTEF) and Fiscal Strategy Paper, (FSP) with Civil Society Organisations (CSOs), the media and organised private sector in Abuja, Thursday.
According to him, the key thrusts of the framework are consistent with the Economic Recovery and Growth Plan,(ERGP) which is aimed at moving the nation away from dependence on a single commodity to run on multiple engines.
He affirmed that the nation was on track to achieving full recovery and growth, adding that, it needs to look inwards to boost non oil revenues and observe fiscal prudence at all levels.
“It is important that we build a globally competitive economy because this dependence on crude oil for our foreign exchange is not sustainable and so we have to get other commodities to export.
“In order to export them, they have to be competitive.
“Therefore, we have to address all the constraints that are not making our goods competitive so that we can grow what we eat, produce what we consume and have enough for export.”
Udoma said the key assumptions and macro-framework of the 2018 budget were predicated on oil production of 2.3 million barrels per day (mbpd), oil price of 45 dollars per barrel and an exchange rate of N305 to one dollar.
He also said the inflation rate was pegged at 12.42 per cent and Gross Domestic Product (GDP) growth rate was 4.8 per cent.
It was projected in the MTEF that oil production would be 2.4 mbpd in 2019, 2.5 mbpd in 2020, while exchange rate was retained at N305 to one dollar for 2019 and 2020.
Inflation was projected to stay at 13.39 per cent in 2019 and 9.90 per cent in 2020.
Udoma said the medium term fiscal policies were directed at achieving macro-economic stability, accelerating growth, intensifying economic diversification and promoting inclusiveness.
“We are focusing on stabilising the macro-economic environment, align monetary, trade and fiscal policies, accelerate non-oil revenue generation, drastically cut costs and privatise selected public enterprises and assets.”
He also said the Federal Government would enhance oil revenues and accelerate non-oil revenues through policies by transitioning from the traditional Joint Venture (JV) cash call budget to the self funding mechanism.
Other objectives are improved tax and customs administration, tightening of tax exemptions (including duty waivers), possible review of Value Added Tax (VAT) rate and excise duty, commencing with luxury items.
He recalled that the acting President, Prof. Yemi Osinbajo recently signed an Executive Order giving amnesty for voluntary compliance with tax, adding that he believes that Nigerians would come forward to pay their taxes.
Udoma also said the Federal Government aims to address recurrent and capital spending imbalance with continuous allocation of at least 30 per cent of its budgeted expenditure on capital projects.
“It will also maintain deficit and debts within sustainable limits,” he said.
Director-General, Debt Management Office (DMO), Ms Patience Oniha, said the nation had to fund its budget through borrowing, adding that, it was not defaulting in its debt responsibilities, rather it was capable of paying what it owed.
She, however, said the nation was not borrowing outside the limits set for it by the Fiscal Responsibility Commission (FRC) as it was still within it, which means that the debt it had incurred was sustainable.
She also said if the nation could increase its revenue significantly to enable implementation of the budget then it could achieve the growth it was looking at.
Some of the CSOs applauded Federal Government’s efforts in involving them and other Nigerians in the preparation of the document, adding that it would enhance transparency and accountability in the process.
The MTEF/FSP is a three-year planning tool that defines government’s economic, social and development objectives and priorities.

Business

FIRS Clarifies New Tax Laws, Debunks Levy Misconceptions

Published

12 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

13 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

15 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