FG registers N3.7tn fiscal deficit in 5 Months—CBN Report
The Federal Government of Nigeria grapples with a substantial fiscal deficit of N3.68 trillion during the first five months of 2023, as reported by the Central Bank of Nigeria’s Monetary Policy Committee.
The rising deficit raises concerns, particularly due to diminishing revenue streams. Committee member Mike Obadan emphasises the need for expenditure reforms to address this alarming deficit.
He highlights that the deficit contributes to inflation and urges the government to scrutinise and eliminate unproductive spending.
The report also reveals that recurrent expenditure dominates the government’s spending, with declining revenues and fuel subsidies compounding the fiscal challenges. The call for fiscal consolidation to combat inflation persists.
Read also: Don’t pay dividends with FX revaluation gains, CBN tells banks
Presidential Panel proposes 83% reduction in taxes and levies
Nigeria grapples with a staggering 60 different taxes and levies, according to Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms. Many of these taxes burden the poor.
Oyedele’s committee aims to slash this number to less than 10, reducing the tax load by 83.33 percent.
This reduction is expected to make tax payments more manageable for citizens and improve government revenue collection.
Notably, most of these taxes originate from local governments, with irregular remittances causing revenue leakage. The move seeks to simplify the tax system, enhance efficiency, and alleviate financial strain on the population.
Read also: Tinubu will avoid raising taxes, focus on reforms- Oyedele
Report reveals BoI’s asset growth to N3.3tn in H1
The Bank of Industry (BOI) has achieved a significant milestone, reporting total assets of N3.3 trillion as of June 30, 2023, marking a remarkable 67 percent year-on-year growth from N1.97 trillion in June 2022.
BOI also revealed that its profit before tax after impairments surged by 177 percent year-on-year, reaching N104 billion in June 2023, attributed to prudent asset management and effective hedging of foreign currency assets.
The bank’s non-performing loan rate decreased to 1.88 percent in June 2023, down from 3.6 percent in December 2022.
BOI has contributed to the national budget through dividends of N42.2 billion and N64.2 billion in taxes since 2017, while raising over $5 billion from international markets to support Nigerian industries, MSMEs, women entrepreneurs, and youths.
Read also: NCDMB, BOI sign $50m NOGaPS manufacturing fund amendment
Brent holds above $90; traders eye U.S., European interest rates as guide to demand
Brent crude futures remained steady above $90 per barrel, with November futures at $90.92 and U.S. West Texas Intermediate at $87.64.
This stability follows Saudi Arabia and Russia’s decision to extend supply cuts, lifting Brent to its highest in 10 months.
Investors are closely monitoring U.S. consumer price index data, which could influence future interest rate hikes. The U.S. Federal Reserve is expected to keep rates unchanged, but uncertainty looms.
Oil’s medium-term outlook appears bullish due to China’s economic data and OPEC+ output cuts. The European Central Bank’s rate decision and industry data on U.S. crude stocks are also on investors’ radar.
Read also: BMI projects brent prices to hover around $80 this year
Morocco earthquake toll passes 2,800 as rescuers search for survivors
Morocco mourns a devastating earthquake that has claimed over 2,800 lives, becoming the deadliest in six decades.
The 6.8-magnitude quake struck in the High Atlas Mountains, with rescuers from Spain, Britain, and Qatar aiding Moroccan efforts.
Traditional mud brick houses prevalent in the region hampered rescue operations due to their collapse.
Despite the challenges, survivors were pulled from the rubble in some areas, offering a glimmer of hope.
The earthquake caused damage to Marrakech’s historic city, a UNESCO World Heritage Site, and the historically significant Tinmel Mosque. Morocco has accepted international aid offers to cope with the disaster.
Read also: Adesina offers assistance to help rebuild Morocco after earthquake
