Greek Deputy Financial Minister, Dimitris Mardas said Greek banks to open on Monday for basic services, after three weeks of being closed and ATM withdrawal limits imposed. This came after ECB granted 7 billion euro ($7.6 billion) to help the embattled nation pay 3.5 billion euro loan due on Monday.
Angela Merkel to begin to talk on Greek bailout later today in Germany, while Christine Lagarde, IMF chief says Greek bailout plans are not viable without debt reduction, a positive assertion of the Greek situation.
Bank of England Governor, Mark Carney, said the interest rate could rise early next year. The interest rate has been at its current rate of 0.5 percent for the past 6 years, the governor added that he expects the rate to increase for the next 3 years reaching as high as half of the historical averages or 2 percent.
Janet Yellen, Fed Reserve Chair said there is a possibility of an interest rate hike later in the year if the U.S economy improves. Mario Draghi, European Central Bank president said the interest rate will remain 0.05 percent for now, that the focus is on Greece.
Euro hits its lowest against Pound since 2007 after Governor Carney comments set the rate debate on fire. One pound exchange for 1.43 Euro early this morning and analysts are forecasting 1.5 price level depends on the outcome of Europe parliaments vote.
Dollar surges against all majors reaching 12 months high against the Euro, traded at 1.08 psychological level. Crude oil traded between $50.23, the lowest since March this year. China planning to invest $483 billion into its market to stem the market rout.
Google earnings topped analysts’ estimates in the second quarter, earnings rose 11.23 percent, $17.7 billion. Google earned $6.99 per share topping $6.70 estimated by analysts for the first time in 6 years. $14.35 billion was paid to advertising partners which were more than $14.28 billion predicted by analysts.
Google Chief Financial Officer, Ruth Porat said the company’s strong 2Q shows continue growth across all of Google’s products, most importantly core search where mobile, programmatic advertising and Youtube stood out. Google shares rose as high as $655.73 or 13 percent after the report came out yesterday.
Nigeria’s Tax Revolution: Shifting Burden to the Wealthy and Streamlining the System
President Bola Tinubu’s administration is set to revolutionize the nation’s tax system.
The ambitious plan seeks to redistribute the tax burden, making the wealthy pay their fair share while stimulating business growth through corporate tax cuts.
The cornerstone of this tax reform initiative is a push to increase Nigeria’s tax revenue from 11% to 18% of Gross Domestic Product (GDP) within three years.
Spearheading this transformation is Taiwo Oyedele, who leads a panel appointed by President Tinubu.
Oyedele articulated the primary objectives of the reform, saying “We aim to make the rich pay what is fair and protect those in poverty.”
This move is crucial in a country where extreme wealth disparities persist, with only a small fraction of the population enjoying immense riches.
Notably, the plan also includes a reduction in the corporate income tax rate, which currently stands at an effective rate of over 40%.
The aim is to benchmark this rate against Nigeria’s international peers, fostering a more business-friendly environment.
Nigeria’s tax system has long been plagued by complexity, with nearly 70 different taxes and overlapping jurisdictions.
The reform initiative seeks to simplify this by streamlining tax structures and drastically reducing the number of taxes to single digits.
Also, a tax amnesty is under consideration, aimed at encouraging tax compliance and offering relief for past debts. The hope is that by fostering transparency and accountability, more Nigerians will willingly contribute to the country’s fiscal health.
In a nation where government debt has surged dramatically in recent years, this tax revolution is seen as a pivotal step towards reducing the deficit and ensuring sustainable economic growth.
Federal Government’s $3 Billion Rescue Plan to Bolster Naira Stability
The National Economic Council (NEC) has confirmed the deployment of the $3 billion emergency loan-for-crude oil, secured by the Federal Government in August, for the stabilization of the national currency.
The naira’s value has been under siege, with fluctuations in the Investors & Exporters’ window and a parallel market rate that briefly hit N1000/$ this month.
Addressing reporters following the 136th NEC meeting at the Aso Rock Presidential Villa, Nasarawa State Governor Abdullahi Sule expressed confidence in the plan.
He stated, “With the plan that will come out and with all these items that have been listed on the improvement of revenue, the $3 billion shall be useful to us down the line.”
The emergency loan, secured from Afrexim Bank, was initially intended to relieve pressure on the naira, facilitate the settlement of taxes and royalties in advance, and provide the Federal Government with vital dollar liquidity for naira stabilization.
The recent nomination of Olayemi Cardoso as the new Central Bank of Nigeria (CBN) governor by President Bola Tinubu has already shown promise.
The naira experienced a boost in the black market, strengthening by N10 against the dollar, closing at N990/$1.
Governor Sule indicated that the implementation of the intervention would require careful planning and time.
He emphasized the need for the new CBN team to devise effective strategies. In response to inquiries about a supplementary budget, Sule stated that there is no immediate need for one, as the situation does not warrant it.
As Nigeria’s economic landscape faces evolving challenges, the NEC’s decision to harness the $3 billion loan offers a glimmer of hope for a more stable naira in the near future.
Former FIRS Chairman Muhammad Nami Accused of Controversial N6 Billion Payments After Sudden Exit
Documents reveal questionable approvals and alleged backdating, raising concerns over financial misconduct
Muhammad Nami, the former chairman of the Federal Inland Revenue Service (FIRS), is under scrutiny for approving payments totaling N6 billion to contractors and consultants just days after his abrupt removal from office.
Documents obtained by TheCable shed light on these controversial transactions.
Nami, who was succeeded by Zacchaeus Adedeji, greenlit the payments on September 16, two days after his removal on September 14.
Sources privy to the situation, although not authorized to speak publicly, claim that Nami directed staff to work over the weekend to finalize these transactions.
Additionally, files were allegedly moved from the FIRS headquarters to his residence, where they were purportedly “backdated and signed.”
Perhaps the most eyebrow-raising revelation is that Nami transferred approximately N5 billion from the FIRS account to the Joint Tax Board (JTB) without apparent justification.
It is reported that the FIRS director of finance and accounts reluctantly approved these payments after warning Nami about potential repercussions.
Nami allegedly reassured his subordinates that the incoming FIRS chairman would remain oblivious to these approvals.
Also, documents indicate that Nami approved significant payments, including N1.4 billion for a ‘Business Case for Strategic Leadership’ retreat, N250 million for FIRS Data Mining Management and Analytics in Taxation Course, and N221 million for a ‘Skill Development and Management Improvement Workshop Training.’
Curiously, Nami also appropriated over N81 million for a study visit to the Inland Revenue of Malaysia.
The FIRS, when contacted for comment, remained tight-lipped about the situation. Spokesperson Abdullahi Ismaila stated that he had no knowledge of the payments, while Tobi Johannes, Nami’s former media aide, distanced himself from the matter, emphasizing that his role ceased when Nami’s tenure ended.
These revelations have ignited concerns about financial misconduct within the FIRS and have raised questions about the oversight and accountability of government agencies. The full extent of these allegations is yet to be determined as investigations into the payments and their legitimacy continue.
News4 weeks ago
Npower Program Restores Hope with Long-Awaited Stipend Disbursement
Commodities4 weeks ago
Three Chinese Groups Vying to Acquire $2 Billion Botswana Copper Mine
News3 weeks ago
Government Plans to Revamp Npower Scheme and Combat Poverty
Banking Sector4 weeks ago
Guaranty Trust Holding Co. Surpasses Expectations with $468 Million Forex Windfall
Forex4 weeks ago
Black Market Dollar to Naira Today, September 7th, 2023
Government4 weeks ago
French Influence Wanes in Africa: Is Macron’s Africa Policy Doomed?
Cryptocurrency4 weeks ago
Ripple Labs Objects to SEC’s Request for Appeal in Landmark Cryptocurrency Case
Forex4 weeks ago
Naira to Dollar Black Market Exchange Rate Today, 4th September 2023