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Customs Suspend Import Duty Payment on Old Vehicles

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  • Customs Suspend Import Duty Payment on Old Vehicles

The Nigeria Customs Service on Wednesday announced the suspension of the implementation of the payment of import duties on old vehicles.

The suspension is in compliance with an earlier directive by the Senate that the policy, which has generated controversies, should be suspended.

A statement by the Acting Public Relations Officer, NCS, Mr. Joseph Attah, stated that suspension of the policy would remain until the service got the support of the lawmakers in carrying out the exercise.

The statement read in part, “Following the unnecessary tension generated as a result of the misconception and misrepresentation of the Nigeria Customs Service’s planned motor duty payment, the leadership of the National Assembly and the Comptroller-General of Customs, Col. Hameed Ali (retd.) met with a view to resolving the impasse.

“They both agreed that the proposed motor duty payment, though in line with the provision of the Customs and Excise Management Act Cap C.45, LFN 2004 should be put on hold while the Senate Committee on Customs and Excise interfaces with the NCS for further discussions.

“While payment of duty on vehicles or indeed any dutiable imported item remains a civic responsibility of every patriotic Nigerian, the NCS management has directed that the exercise be put on hold, while expressing readiness to engage the Senate committee on further discussions to bring them on board to understand the importance of the exercise to national security and economy.”

Meanwhile, the Association of Motor Dealers of Nigeria has called for the reduction in the duty levies and tariffs on imported vehicles.

Addressing journalists in Abuja on Wednesday, the AMDON President, Bola Adedoyin, noted that the current levies and duties being paid on imported vehicles had made such vehicles too expensive for Nigerians.

He said, “We wish to inform the public that what we should be clamouring for is a general consensus for the reduction of duty tariff and levies, which is not the making of the Nigeria Customs Service, but rather an unpopular policy of the National Automotive Development Council tagged the automotive policy.

“This policy is what brought us to this position we are now. All in an effort to make imported fairly-used vehicles, popularly called Tokunbo, unaffordable, thereby forcing Nigerians to patronise the unaffordable assembled vehicles in Nigeria.”

He added the move by NCS to collaborate with Federal Inland Revenue Service among other agencies on enforcement of the Vehicle Identification Number would eventually block the registration of all vehicles on whose duties were not paid in the near future.

“AMDON is working on automation of all members to eventually interface with the NCS so that potential vehicles buyers will have the opportunity to verify the authenticity of duty payment before purchase, which will be through the AMDON automated verification stickers,” Adedoyin added.

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Businessinsider, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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Economy

Nigeria’s Plan to Review Oil Companies’ Gas Flaring Strategies

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Oil

Nigeria is ramping up its efforts to address environmental concerns in the oil and gas sector with a comprehensive plan to review gas flaring strategies of international and indigenous oil companies.

The Minister of State for Environment, Dr. Iziaq Salako, announced this initiative during a national stakeholders engagement meeting on methane mitigation and reduction held in Abuja, Investors King reports.

Gas flaring, a common practice in the oil industry, releases methane—a potent greenhouse gas—into the atmosphere, contributing to climate change and posing health risks to communities near oil facilities.

Nigeria aims to end routine gas flaring by 2030, aligning with global climate goals and commitments.

Dr. Salako explained the importance of reducing methane emissions and highlighted the detrimental effects on public health, food security, and economic development.

He outlined practical steps being taken to tackle methane emissions, including the development of methane guidelines and the engagement of government institutions.

The ministry, through the National Oil Spill Detection and Response Agency, will conduct periodic reviews of oil companies’ plans to ensure compliance with the gas flaring deadline.

Deloitte management consultants will assist in conducting comprehensive forensic audits to scrutinize the legitimacy of forward-contracted transactions.

President Bola Tinubu’s commitment to environmental sustainability underscores the government’s dedication to addressing climate change and fulfilling its multilateral environmental agreements.

The engagement event served as a platform for stakeholders to discuss methane mitigation strategies, existing policies, and implementation challenges.

Collaboration and dialogue among diverse sectors are crucial in charting a unified course towards sustainable methane reduction in Nigeria’s oil and gas industry.

As the country navigates its environmental agenda, ensuring accountability and transparency in gas flaring practices remains paramount for achieving a greener and healthier future.

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Economy

Interest Rate Jumps to 24.75% as CBN Takes Aggressive Stance Against Inflation

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Dr. Olayemi Michael Cardoso

The Central Bank of Nigeria (CBN) has announced a significant increase in the monetary policy rate, known as the interest rate, to 24.75%.

This move disclosed by CBN Governor Olayemi Cardoso during the 294th Meeting of the Monetary Policy Committee press briefing in Abuja, represents a bold step by the apex bank to address the mounting inflationary pressures faced by the country.

With inflation soaring to 31.70% in February, the CBN aims to moderate this upward trend by tightening its monetary policy stance.

This decision follows the previous hike in the interest rate to 22.75% in February, showcasing the CBN’s commitment to combatting inflationary forces.

While the bank opted to maintain the Cash Reserve Ratio at 45%, the significant increase in the interest rate underscores the urgency of the situation and the need for decisive action.

Governor Cardoso emphasized that these measures are essential to stabilize the economy and safeguard the purchasing power of the Nigerian currency.

The 294th MPC marks the second meeting under Governor Cardoso’s leadership, indicating a proactive approach to addressing economic challenges.

The next MPC meeting is scheduled for May 20th and 21st, 2024, highlighting the ongoing commitment of the CBN to navigate Nigeria’s economic landscape amidst inflationary pressures.

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Economy

Nigeria Braces for 10th Consecutive Interest Rate Hike by Central Bank

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Central Bank of Nigeria (CBN)

As Nigeria grapples with persistently high inflation, the Central Bank of Nigeria (CBN) is gearing up to implement its tenth consecutive interest rate hike in a bid to curb the soaring prices and attract investment.

Analysts surveyed by Bloomberg are anticipating a substantial 125 basis-point increase in the key rate to 24%, marking one of the most significant adjustments in the current tightening cycle.

The decision, expected to be announced by Governor Olayemi Cardoso on Tuesday at 2 p.m. in Abuja, comes on the heels of inflation accelerating to 31.7% in February, far surpassing the central bank’s target range of 9%.

This surge has been primarily attributed to the sharp depreciation of the naira, prompting authorities to devalue the currency twice since June to narrow the gap with the unofficial market rate and encourage investor confidence.

While these measures have seen the naira strengthen in recent days and bolstered investment inflows, including a fourfold increase in overseas remittances and significant foreign investor portfolio asset purchases, there remains a palpable need for more decisive action.

Giulia Pellegrini, a senior portfolio manager at Allianz Global Investors, emphasized the necessity for the CBN to intensify its tightening efforts to regain foreign investors’ confidence in the local bond market.

While acknowledging the positive strides made by the central bank, Pellegrini stressed the importance of a more assertive approach to prevent the diversion of investor attention to other frontier markets.

As the Nigerian economy navigates through these challenging times, the impending interest rate hike signals the CBN’s determination to address inflation head-on and foster a more stable economic environment.

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