By Ubong Ukpong, Abuja

The Governor of the Central Bank of Nigeria (CBN), Yemi Cardoso on Tuesday, outlined the apex bank’s plans to address the spiralling inflation in the country and strengthen the economy.This was as he said that the Bank’s recapitalization policy has prompted banks to strengthen their financial positions, a process expected to result in a more robust and resilient banking sector by March 2026.

The exercise, Cardoso said, was expected to support the realisation of US$1 trillion economy by 2030. He said these while addressing the House of Representatives Committee on banking regulations, on policy measures and strategies to address domestic macroeconomic challenges.On the macroeconomic performance in 2024, he said projections indicate a growth rate of 3.2% and 3.3% for 2024 and 2025 respectively.He added that Nigeria is projected to maintain a more robust 4.3% growth rate.Cardoso said the non-oil sector maintained strong performance, contributing 94.30% to GDP with a steady 2.80% growth rate.He added that the oil sector’s growth rate has almost doubled to 10.15% in Q2, 2024 from 5.70% in Q1, 2024, due mainly to improved security surveillance which resulted in increased production of crude oil and natural gas.He said the Services sector continues to be the primary economic driver, contributing 58.76% to GDP with a robust growth rate of 3.79%.Similarly, he said the Industrial sector has shown remarkable improvement, with its growth rate surging to 3.53% from 0.31%.He pointed out that the contribution of agriculture to total GDP also increased. In addition, the growth rate of the sector rose to 1.41%, from a negative territory of -0.90%, indicating a substantial turnaround in productivity.He also said the foreign exchange reserves have grown significantly, with remittance flows currently representing 9.4 per cent of total external reserves.He said the reserves rose by 12.74% to US$39.12 billion as of October 11, 2024, from US$34.70 billion at end-June 2024, driven largely by foreign capital inflows, receipts from crude oil related taxes and third-party.In Q2 2024, we maintained a current account surplus and saw remarkable improvements in our trade balance, he said.Cardoso said the current external reserve position can finance over 12 months of import of goods and services, or 15 months of goods only.This is substantially higher than the prescribed international benchmark of 3.0 months, reflecting a robust buffer against external shocks, he said.He said inflation trended upward, driven largely by high food prices, cost of energy and legacy infrastructural challenges, but it commenced deceleration from 34.19% in June 2024 and to 33.40% in July 2024.He said the moderation in inflation became more pronounced in August 2024, as headline inflation further eased to 32.15%.This, he said, was largely attributed to monetary policy measures taken by the Bank.With aggressive monetary policy tightening coupled with robust monetary- fiscal policy coordination, inflation is expected to further trend downward in the near-to-medium term, Cardoso said.To combat inflation, he said they had fully reverted to orthodox monetary policy approach and implemented a comprehensive set of monetary policy measures.These include raising the policy rate by 850 basis points to 27.25%, increasing Cash Reserve Ratios and normalising Open Market Operations as our primary liquidity management tool.On banking supervision, he said the CBN has taken decisive actions to ensure the safety, soundness, and resilience of the banking industry.On Monetary and fiscal policy coordination, he said they had strengthened collaboration during the period under review.Cardoso said the Bank’s numerous policy initiatives are yielding significant results across various sectors of the economy.The CBN Governor also said the capital market has responded positively to their policies, with the All-Share Index and market capitalization sustaining positive gains, reflecting renewed investor confidence.On the outlook for the economy, Cardoso said he was confident as the country expects continued positive growth, especially in the non-oil, oil and industrial sectors.On the macroeconomic performance in 2024, he said although positive, these estimates remain below historical averages, suggesting moderate rather than robust expansion.He said they have embarked upon various initiatives to improve the remittance ecosystem.Some of these initiatives include the Expansion of IMTOS, strengthening compliance and improving transparency in the sector, finalizing the modalities for non-resident accounts with fewer requirements, following successful models in countries like India and Pakistan, and automating the reporting process for IMTOS through the Financial Institutions Foreign Exchange Reporting System (FIFX) platform to foster transparency and efficiency.He said these initiatives are part of a broader effort to enhance remittance inflows and strengthen the Nigerian economy.He said the banking industry comprised twenty-six commercial banks, four merchant banks, and four non-interest banks, and has remained safe, sound and resilient.

By Eze Okechukwu, Abuja

The Federal Inland Revenue Service (FIRS) yesterday dispelled fears of Nigerians over the possible introduction of new taxes through its proposed tax reform laws, assuring the move was aimed at harmonizing Nigeria tax laws to make it less cumbersome.The tax agency made the clarification during an interactive session with the members of the Senate Committee on Finance at the National Assembly, Abuja specifically assuring Nigerians that the tax reform laws would not entail introduction of new taxes or increase of already existing ones for individuals or companiesThe Chairman of the Federal Inland Revenue Service, who allayed the fears in his presentation before the lawmakers, pointed out that the tax reform will not introduce any taxes or increase percentage of existing ones but reduce the number of taxes being paid by Nigerians currently.

He also assured that no tax related agency will be merged in the process of carrying out the reform, adding that “no jobs will be taken from anybody during the exercise. The Tax reform basically seeks to increase simplicity and efficiency of tax administration in Nigeria, not the other way round. It’s for the good of our people and our economy”.He further allayed the fears of Nigerians that the existing tax policies introduced by President Bola Tinubu were not meant to tax poverty but prosperity, fruits not seeds, returns and not investments.On the Executive bills already forwarded to both chambers of the National Assembly for legalising the reform, the FIRS boss, said ” the four bills which are (i) Nigeria Tax Bill, ( ii) Nigeria Tax Administration Act ( amendment) bill, ( iii) Nigeria Revenue Service Bill and (iv) Joint Revenue Board ( establishment ) bill when passed into law would among others help to harmonize the multiple tax laws in the country.” Drive efficiency and modernization , simplify tax laws and ensure synergy among agencies involved, increase efficiency and effectiveness in government savings, promote transparency and integrity in revenue collection , align with international standards, broaden Nigeria’s tax base etc “.When asked to explain why FIRS as contained in one of the bills would be changed to Nigeria Revenue Service (NRS), the Chief Tax Collector said the present name of the agency does not cover the scope of its services like the Value Added Tax (VAT), 85% of which according to him were remitted to States while the Federal Government gets the remaining 15%.In his remarks, the Chairman of the Committee, Senator Sani Musa (APC, Niger East) said the purpose of the interactive session was for the agency to update the lawmakers on what and what the tax reform bills were aiming at.”Tax reforms lie at the heart of government agenda and requires constructive inputs from all stakeholders”, he said.He however commended the FIRS boss for meeting up with revenue targets set in the fiscal year while also urging him to go beyond the target.Many members of the Committee like Senators Seriake Dickson ( PDP, Bayelsa West), Osita Isunazo ( APC, Imo West), Ahmed Wadada (SDP, Nasarawa West) also commended the FIRS boss on increased revenue generation by the agency, particularly on non – oil revenue.

From Ekundayo Idowu, Abeokuta

Ogun State Government yesterday dismissed several reports in the media indicating that it had joined some states of the federation in a case at the Supreme Court challenging the constitutionality of the Economic and Financial Crimes Commission (EFCC).It clarified that its case in court relates to the Nigerian Financial Intelligence Unit (NFIU)’s Financial Guidelines, which it said unfairly limits the operations of states and local governments in the country.

The government made its stance known in a statement issued by the Special Adviser to the Governor on Media and Strategy, Hon. Kayode Akinmade.According to the statement, the constitutionality of the EFCC and the Independent Corrupt Practices Commission (ICPC) had since been determined by the Supreme Court, and Ogun State considers discussions on the issue closed.It stated that it had no factual reason or recent development to reopen the question of the EFCC’s constitutionality, adding that as a federating unit with law enforcement agencies of its own, it had no desire to undermine the Federal Government’s law and order objectives.Providing clarification on the actual case filed by Ogun State in court, the statement said: “The case Ogun State has filed (SC/CV/912/2024) and the case that several states are party to (SC/CV/178/2023) litigate a very narrow issue that does not attack the constitutionality of the EFCC.“Nigerians recall the obnoxious naira redesign policy, which was invalidated by the Supreme Court after Ogun State and other states successfully challenged the policy.“A lesser-known fact is that around that time in January 2023, purporting to act under the Anti-Money Laundering Act, Proceeds of Crime Act, and its enabling statute, the Nigerian Financial Intelligence Unit (NFIU) released a Guidelines document and an Advisory which, among other things, placed limits on cash withdrawals by State and Local Governments. Ogun State disagrees with these limits because they do not align with our view of the law and cause significant governance disruptions.“As such, the suit is targeted at invalidating the NFIU Guidelines and Advisory, insofar as they interfere with the economic and governance interests of Ogun State and its Local Governments.“Especially now that the Supreme Court has guaranteed the Local Governments’ access to their funds, intrusive subsidiary legislation by unelected bureaucrats in the NFIU ought not to stand in the way of the justified free use of public funds.”