VenturesNow

Nigeria’s oil company NNPCL says it did not remit any earnings to the Federation Account in 2022

Published

11 months ago

January 29, 2024

According to Umar Ajiya, the Chief Financial Officer of the Nigerian National Petroleum Company Limited (NNPCL), the state oil company sent nothing to the Federation Account in 2022 as a result of the payment of a subsidy on Premium Motor Spirit.

NNPCL is a significant source of income for Nigeria. It serves as the national oil corporation, managing the nation’s gas and crude oil reserves.

In a 5.24-minute video that the oil major posted on Sunday, Ajiya claimed that the gasoline subsidy prevented the revenue-generating company from filing taxes and royalties to the Federation Account and also prevented it from turning a profit.

Also, NNPCL, in the documentary, said, “The lingering constraint of fuel subsidy payment hampered its (NNPCL) growth potential until a new administration emerged, bringing an end to the subsidy regime, saving the company from bankruptcy, and setting it on a path of financial prosperity.”

Ajiya argued that the declaration by President Tinubu during his inauguration had saved the country a fortune. “That action of saying subsidy has gone literally saved this nation N400 billion on average every month. And what that meant was that the totality of the entitlements of tax, royalties and profits were all going into subsidy.

“And that was why we reached a position in 2022 where we literally remitted zero to the Federation Account. It was unpalatable, but we can’t give what we don’t have.

“We were taking NNPC’s cash flows from other operations to augment for products and it could not be sustained beyond June 2023”, the official said.

In 2022, fuel subsidies totalled over N3.3 trillion, as the Federal Government found it difficult to keep the price of the product far below the worldwide market rate. The commodity’s price increased by more than 250 percent as soon as Tinubu eliminated the subsidy.

VenturesNow

Moroccan annual inflation rises to 0.8% in November

Published

13 hours ago

December 21, 2024

Ifeoluwa Dada

Morocco’s statistics office has confirmed that the country’s annual inflation rate, as determined by the consumer price index, increased from 0.7% in October to 0.8% in November.

Monthly, consumer prices decreased by 0.2% from October.

The primary driver of inflation, food costs, grew by 0.8% compared to the previous year, while non-food inflation climbed by 0.7%. Core inflation, which does not include more erratic items like food, increased 2.6% annually and 0.2% monthly.

According to the central bank, inflation is expected to average 1% this year, down from 6.1% last year.

Despite the Al-Haouz earthquake, a spike in inflation, and worldwide economic challenges, Morocco’s GDP grew by 3.4% in 2023.

A recovery in tourism, robust industrial exports, and rising private consumption—all bolstered by prudent macroeconomic policies—were the main drivers of growth.

VenturesNow

Nigeria’s $42bn foreign reserves enough for 9 months’ imports— Central Bank

Published

2 days ago

December 20, 2024

Ifeoluwa Dada

According to Olayemi Cardoso, Governor of the Central Bank of Nigeria (CBN), the nation’s $42.01 billion in foreign reserves can cover imports of goods and services for almost nine months.

Cardoso promised Nigerians improved economic fortunes in 2025 while addressing the Senate Committee on Banking, Insurance, and Other Financial Institutions yesterday in Abuja at the presentation of the performance index report.

Cardoso stated: “External Reserves rose from $ 38.35 billion it was on September 30, 2024, to $ 42.01 billion as of December 12, 2024”.

He clarified that third-party receipts in Q3 2024 and revenues from taxes connected to crude oil were the main drivers of the rise in foreign reserves during the specified time.

“We saw remarkable improvements in our trade balance and maintained a current account surplus,” he added.

“Our external reserves level can finance over 9.09 months of import of goods and services or 13.91 months only, higher than the international benchmark of 3.0 months and a robust buffer against shocks”.

On cash shortage, the CBN boss reiterated the N150 million fine against any branch of banks caught illegally distributing new Naira notes to currency hawkers and unscrupulous elements and said the Nigerian economy will improve in 2025 through policies and measures.

He predicted a stronger economic future: “Despite our economy’s challenges, there are clear reasons for optimism.

“The gradual stabilization of the forex market, ongoing banking sector recapitalization, and positive growth trends in key sectors, especially the services sector, indicate a path toward recovery and stability.”