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India Now Nigeria’s Biggest Crude Oil Buyer –Buhari

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  • India Now Nigeria’s Biggest Crude Oil Buyer –Buhari

President Muhammadu Buhari on Thursday spoke of a growing trade partnership between Nigeria and India.

He stated that India had lately become the country’s biggest trade partner, especially in crude oil sales.

Buhari was speaking at the Presidential Villa, Abuja, when he received Letters of Credence from the High Commissioner of India to Nigeria, Mr Abhay Thakur.

The President noted, “Our two countries are very close.

“India has helped Nigeria in many ways, and we are very grateful. In trade, you are, today, our biggest customer in crude oil purchase.”

He also recalled his days at the Defence Services Staff College, Wellington, India, in 1973, saying that both countries had worked closely for decades.

He added, “I want you to maintain the standard we have attained, and improve on it.”

On his part, Thakur promised that his country would stand with Nigeria “shoulder to shoulder in all areas of mutual interest, including security.”

He also said efforts would be made to address issues such as “reducing double taxation and attracting more Foreign Direct Investments, actualising Nigerian airline, Air Peace’s dream of two weekly flights to Bombay and opening up the visa regime more.”

A Presidency statement issued by the Senior Special Assistant to the President on Media and Publicity, Mr Garba Shehu, said Buhari met with other envoys.

It said in detail, “At the ceremony, President Buhari, who received Letters of Credence from Ambassador of Kuwait, Mr Abdulaziz Mohammad Al Bisher, said Nigeria’s continuous support of Organisation of Petroleum Exporting Countries’ policies, sometimes, discourages assistance from developed countries, with wrong assumptions that the country was rich.

“The President told Al Bisher that Nigeria had been pigeon-holed as an influential and wealthy member of OPEC, adding that the country will appreciate support in education, technology, infrastructure and projects that directly impact on the livelihood of people.

“The Ambassador said Kuwait Project had 560 developmental interventions spread over many African countries, assuring that Nigeria, which had been left out since the project started in 1961, would be captured.

“He said Kuwait Chamber of Commerce had agreed to meet with Nigeria’s business community, noting that his country also ran a charity that could be explored.

“Receiving Letters of Credence from High Commissioner of the Republic of Namibia, Mr Humphrey Desmond Geiseb, President Buhari said the country had consistently and steadfastly supported Nigeria in all international meetings, ‘bringing respect and comfort’.

“The Namibian Ambassador said his country remained grateful to the Nigerian government and citizens for the support to achieve its independence, promising to improve relations in trade and exchange of people and ideas.”

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

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Economy

World Bank Calls on Nigeria to Impose Special Taxes on Alcohol and Tobacco

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The World Bank Group has made a call to the Federal Government of Nigeria, urging the government to impose special taxes on alcohol, cigarettes and beverages that are highly sweetened in order to improve primary healthcare conditions in the country.

Shubham Chaudhuri, who is the Country Director for Nigeria in the World Bank Group, said that an improvement in healthcare in Nigeria will come by taxing the things that are “killing us.” He said that the economic rationale for the action is quite strong if lives are to be saved and a healthier Nigeria achieved.

Chaudhuri made the call on Friday, at a special National Council on Health meeting which was organized by the Federal Ministry of Health in Abuja. Chaudhuri stated that placing special taxes on tobacco, sweetened beverages and alcohol would reduce the health risks which come with their consumption and expand the fiscal space for universal health coverage after COVID 19.

The country director also said that investing in stronger health systems for all would make significant contributions to the fight against inequality and the rising poverty situation in the country. He went on to add that increasing health tax would provide an extra advantage of reducing healthcare cost in the future, by hindering the growth of the diseases which are caused by tobacco, alcohol and sugar-sweetened beverages.

The representative of the WHO in Nigeria, Dr Walter Mulombo said that he could confirm the large health needs of Nigerians, as well as the efforts being made to meet those needs. He said this was based on the fact that he had been to over half of Nigeria’s states in less than two years of being in the country.

Mulombo then noted that although the coronavirus exposed weaknesses in the global economy (not excluding health), it could be considered as a unique opportunity for a thorough examination of existing resources and mechanisms to prepare for a more resilient future.

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Nigeria’s VAT Revenue Falls to N500 Billion in Q3 2021, Manufacturing Sector in the Lead

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In the third quarter of 2021, Nigeria generated a total sum of N500.49 billion as value-added tax which represents a 2.3% decline when compared to the N512.25 billion recorded in the second quarter of the year.

This is as seen in the VAT report which was recently released by the National Bureau of Statistics (NBS). The report revealed that the manufacturing sector was in the lead as it remitted a total of N91.2 billion, representing about 30% of the total local non-import value added taxes in that period.

In spite of the quarter-on-quarter decline of VAT collections in the reviewed period, it grew by a further 17.8% when compared to N424.7 billion generated in the same period of the previous year. The report also shows that an amount of N1.5 trillion has been generated from value added taxes from January 2021 to September 2021.

That is 40.2% higher than the N1.08 trillion recorded in the same period of 2020, and 72.3% higher than what was recorded in the same period of 2019.

To break it down, the Value Added Tax collected in the first, second and third quarter of 2021 was recorded at N496.39 billion, N512.25 billion and N500.49 billion respectively. It is higher than the corresponding figures of 2020, which sat at N324.58 billion, N327.20 billion and N424.71 billion for the first, second and third quarters respectively.

In the third quarter of 2021, the Manufacturing activity accounted for the largest share of total revenue collected across sectors, with a huge 30.87% (N91.2 billion) coming from that sector. The Information & Communication sector came in second with 20.05% (N53.9 billion) contributed, while the Mining & Quarrying sector came in third with 9.62% (N28.4 billion).

Nigeria has continued to ramp up its efforts to increase revenue from non-oil sectors by increasing its tax collection rates, which has recorded largely significant growth since the federal government increased the VAT rate from 5% to 7.5% in the 2019 Finance Act, which was signed and made effective in 2020.

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Nigeria’s Economy to Close 2021 at 2.5% Growth Rate

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The Lagos Chamber of Commerce and Industry (LCCI) has predicted that the Nigerian economy will close its growth rate for the year at 2.5%.

This was said by the President of the LCCI, Toki Mabogunje at the 133rd Annual General Meeting (AGM) of the chamber in Lagos on Thursday, as reported by the News Agency of Nigeria.

The LCCI leader advised that Nigeria’s monetary and fiscal aspects of the economy should encourage policies that enhance growth and build confidence which would invigorate private capital flows to the economy to achieve the growth. She also encouraged a medium-term recovery plan which is anchored on local productivity, attracting private investment, developing physical and soft infrastructure, and ease of business.

Mabogunje disclosed that Nigeria’s inflation would be maintained at its double digit level within the short to medium term, due to food supply shocks, foreign exchange illiquidity, higher energy cost, social unrest in the Northern region, possible removal of fuel subsidy, and insecurity. She stated that these structural factors will keep on mounting pressure on domestic consumer prices.

She also added that in spite of the non-oil economy’s growth by 5.4%, insecurity problems in some areas of the country may lead to shrinking in production and a disruption of the supply chain. She states that the important drivers of the non-oil sector growth were finance and insurance holding 23.2%, transport and storage 20.6%, trade carrying 11.9% and telecommunications 10.9%.

Others include manufacturing, construction, real estate and agriculture with 4.3%, 4.1%, 2.3% and 1.2% respectively throughout the year.

Speaking on the decision of the Central Bank of Nigeria’s Monetary Policy Committee’s decision to retain policy parameters, she mentioned that although the apex bank has been keen to extend credit to the real economy as a way of supporting it, it is a fact that the provision of credit recently has proven ineffective in improving output growth and stabilizing consumer prices.

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