Business

Cardoso Urges Stronger Economic Ties with Middle East

Published

3 days ago

February 18, 2025

The Governor of the Central Bank of Nigeria, Mr. Olayemi Cardoso, has canvassed stronger economic ties with the Middle East and the Nigerian diaspora community in the region.

Speaking during a meeting with Talal Al-Humond, the Assistant Governor for Monetary Affairs, Saudi Arabia Central Bank – SAMA, on the sideline of the just-concluded inaugural Conference on Emerging Markets Economies organised by the Ministry of Finance, Saudi Arabia, and the International Monetary Fund (IMF) Regional Office in Riyadh, Mr. Cardoso said there were lessons to be learned from Saudi Arabia in terms of infrastructural development and tourism.

According to him, Saudi Arabia’s dedication to diversifying its economy through innovative environmental projects, large-scale transformation, and tourism investment is essential for development.

Mr. Cardoso also reaffirmed his dedication to collaborating with the Nigerian Diaspora community in the Middle East to improve remittance flows and strengthen Nigeria’s financial sector. He stated that the Central Bank of Nigeria (CBN) will continue enhancing macroeconomic fundamentals to establish an enabling environment that will facilitate the growth of the private sector and the generation of high-quality jobs for Nigerians.

Responding, Mr. Talal Al-Humond assured Mr. Cardoso that the Saudi Central Bank will work with the CBN to ensure the attainment of mutually beneficial objectives.

Meanwhile, during a panel discussion moderated by the Director, Middle East and Central Asia Department, IMF, Jihad Azour, at the conference, Mr. Cardoso cited reforms in the financial markets that addressed distortions in the Nigerian foreign exchange market, which had previously experienced a gap of up to 60% between the official and parallel market exchange rates. He noted that due to consistent policy direction, improved market confidence, and enhanced transparency in forex trading, the gap has significantly narrowed to approximately 4-5%.

Governor Cardoso also highlighted the adoption of an electronic matching system to improve transparency in the market and the introduction of a foreign exchange code of ethics, which all Nigerian banks signed to ensure adherence to market rules. As a result of these measures, he reported that the country’s foreign reserves had exceeded $40 billion, marking the highest level in nearly three years.

He acknowledged that Nigeria had faced significant economic challenges, including capital flow exits, multiple exchange rate regimes, currency depreciation, high inflation, and a backlog of foreign exchange transactions, which led to a loss of confidence in the country’s currency.

Upon assuming office, he stated that his team prioritised restoring confidence in the market by addressing the backlog of foreign exchange transactions and demonstrating a commitment to economic stability.

Cardoso emphasised that Nigeria implemented a tight monetary policy stance to tackle inflation and restore macroeconomic discipline. Over the past year, he explained that the Bank raised interest rates by 850 basis points and shifted away from quasi-fiscal interventions that had distorted the economy. He stressed that Nigeria’s approach had remained firmly rooted in orthodox monetary policies, a stance that was consistently communicated to market participants.

Another significant reform, he noted, was the removal of the fuel subsidy, which, along with multiple exchange rate inefficiencies, had cost the country approximately 6% of its Gross Domestic Product (GDP) annually. He acknowledged that previous administrations had lacked the political will to remove the subsidy, but its elimination has had a profound positive impact on Nigeria’s fiscal outlook.

On financial sector reforms, he explained that the CBN had mandated banks to recapitalise to strengthen the financial system and build buffers to withstand future economic shocks. He noted that these measures had so far proven successful in bolstering the sector.

Addressing the broader global economic climate, he emphasised the importance of tailoring policy decisions to each economy’s unique needs. He recounted how Nigeria continued to tighten monetary policy even when global trends suggested otherwise. Despite the initial skepticism , he noted that a year later, many financial practitioners and international colleagues recognised that Nigeria had made the right decisions based on its specific economic conditions.

Speaking on the actions required to enhance financial inclusion and the role of digitalisation and financial technology in mitigating potential risks, the Governor referenced Nigeria’s experience, where the financial inclusion rate currently stands at 74%. He stressed the critical need to expand this aggressively to ensure that economic growth benefits all segments of society. As the economy rebounds, he emphasised reducing disparities and ensuring broad-based financial access.

Highlighting digitalisation as a key driver in advancing financial inclusion, he stated that expanding mobile money services, leveraging technology and prioritising gender-focused initiatives due to the positive economic impact of empowering women across the African continent would significantly close the financial access gap, particularly for underserved populations.

He reaffirmed the CBN’s commitment to maintaining macroeconomic stability, sustaining policy consistency, and ensuring long-term resilience for the Nigerian economy.

The two-day event, which served as a key platform for addressing structural changes in the global economy and their impact on emerging markets, brought together policymakers and economic experts from across emerging markets. It was held in Al Ula, Saudi Arabia, from February 16 to 17, 2025.

Business

Nigeria’s inflation drop reflects reality of consumption patterns — Cardoso

Published

1 day ago

February 20, 2025

Seyi Babalola

The Governor of the Central Bank of Nigeria, CBN, Olayemi Cardoso said Nigeria’s current Consumer Price Index is reflective of the reality of consumption patterns.

Cardoso made this known on Thursday during a press briefing at the end of the 299th Monetary Policy Meeting in Abuja.

His comments came as Nigeria’s inflation rate dropped to 24.48 percent after the CPI was rebased.

Reacting to the development, Cardoso insisted that the apex bank will continue to work with data to drive its decisions.

He noted that the recent CPI rebase is good for the country’s economy.

“As far as the Central Bank is concerned, we are data-driven. That will continue. Our decision matrices will be focused accordingly.

“Of course, what we have is a CPI which is more reflective of the reality of consumption patterns. And that is a good thing.

“The previous one took account of black and white television, for example, we all know it is no longer relevant,” he stated.

Business

FG slams Binance with fresh $81.5bn lawsuit

Published

2 days ago

February 20, 2025

Seyi Babalola

The Federal Government has asked an Abuja Federal High Court to compel cryptocurrency platform, Binance, to pay N79.51 billion and N231 million, which is equivalent to $81.5 billion, as penalty for alleged economic losses caused by its operations in Nigeria.

The plaintiff, the Federal Inland Revenue Service, in a charge seen by DAILY POST on Wednesday, marked FHC/ABJ/CS/1444/2024, is also seeking payment of $2.001 billion in income taxes for 2022 and 2023.

In the lawsuit, Binance and two of its executives, Tigran Gambaryan and Nadeem Anjarwalla, are accused of contravening Nigerian laws, including failing to register with the country’s tax agency, FIRS, for tax compliance and allegedly causing economic losses to the country during the review period.

The FIRS and the Economic and Financial Crimes Commission had charged the company with tax evasion, money laundering, and foreign exchange violations before Justice Emeka Nwite of the Federal High Court in Abuja.

The monetary claims in the lawsuit include a 10 percent penalty for non-payment of taxes for 2022 and 2023, a 26.75 percent interest rate (the prevailing Central Bank of Nigeria lending rate) per annum from January 1, 2023, and January 1, 2024, respectively, among other penalties.

In the latest lawsuit, FIRS alleged that Binance concealed its business activities in Nigeria, despite having a significant economic presence in the country.

The Federal Government also accused Binance of breaching Nigeria’s Companies Income Tax Act, the Federal Inland Revenue Service (Establishment) Act 2007, the CBN Regulatory Framework for Mobile Money Services, and the CIT Significant Economic Presence (SEP) Order.

The SEP Order, signed by former Finance Minister Zainab Ahmed and gazetted in May 2020, defines significant economic presence as foreign companies deriving at least N25 million annually from digital services in Nigeria.

An affidavit deposed to by Jimada Yusuf, a member of the Special Investigation Team from the Office of the National Security Adviser, revealed that Binance had been operating in Nigeria for over six years without registration.

Yusuf stated that during a 2024 meeting with the Securities and Exchange Commission, Binance executives (Anjarwalla and Gambaryan) admitted to having 386,256 active Nigerian users on its platform, with a trading volume of $21.6 billion and net revenue of $35.4 million for 2023.

Accordingly, the affidavit also accused Binance of operating without required licences and permits, non-compliance with the Money Laundering Act, offering unauthorised financial services, and providing currency speculation services.

The NSA said that Binance unlawfully listed and traded the Nigerian Naira on its platform, even after claiming it had delisted the currency following investigations.

The affidavit also alleges that Binance refused to provide detailed business records spanning six years, despite a Federal High Court order mandating disclosure to FIRS via the EFCC.

The FIRS, represented by lead counsel Kanu Agabi, SAN, was present in court on February 11, 2025, when the suit was called upon for a hearing before Justice Inyang Ekwo; however, Binance’s legal team was absent.

Agabi informed the court that attempts to serve Binance directly had been unsuccessful, and he had filed a motion for substituted service on them.

Justice Ekwo granted the motion and directed that substituted service be carried out within seven days. The case was adjourned to March 3, 2025.

FIRS is seeking the following reliefs in the suit: “A declaration that Binance is liable to pay annual corporate income tax for having a significant economic presence in Nigeria.

“A declaration that Binance and its executives must file income tax returns for 2022 and 2023. An order compelling Binance to pay $2.001 billion in taxes for 2022 and 2023.

“Penalties, including 10 percent annual interest and a 26.75 percent CBN lending rate, until the taxes are fully paid. Compensation of $79.51 billion and N231 million for economic losses.”

DAILYPOST

Business

Lafarge Africa Champions Knowledge Sharing with Geoscience & Mining Engineers Training

Published

3 days ago

February 19, 2025

Seyi Babalola

Lafarge Africa Plc, a leading innovative and sustainable cement producer and building solutions provider, has successfully concluded a capacity building training for Geoscientist & Mining Engineers at its Training Center in Ewekoro Ogun State. The three-day program, held in collaboration with the Ogun State Ministry of Industry, Trade, and Investment, provided participants with in-depth knowledge, technical exposure, and hands-on learning.

The training brought together 25 participants from various sectors and featured expert-led sessions on mining best practices, safety protocols, raw materials management, community engagement, and sustainability initiatives. Participants were also taken on a tour of the Lafarge Ewekoro Quarry, gaining first-hand experience of mining operations and environmental conservation practices.

In his opening speech, Engr. Philip Anaobi, Plant Manager, welcomed participants and emphasized Lafarge Africa’s dedication to operational excellence and capacity development in Nigeria’s mining sector. He reiterated the company’s vision of equipping industry professionals with the necessary skills to drive sustainable growth.

One of the guest trainers, Prof. Jimoh Ajadi of the Department of Geology, Kwara State University, Malete Nigeria, who facilitated a session on Mining Global Best Practices, provided insights into internationally recognized standards in mining operations, including safety regulations, environmental sustainability, and technological advancements in the sector. He highlighted the importance of continuous learning and adaptation in the evolving landscape of mining.

In his lecture on Lafarge’s Commitment to Sustainability, Gabriel Pollyn, Head of Sustainability and Sponosorships, highlighted the company’s focus on climate and energy, circular economy, nature conservation, and people-centric initiatives. He emphasized the importance of sustainable resource extraction and Lafarge’s pioneering efforts in developing eco-friendly cement solutions, waste recycling, and carbon footprint reduction.

Speaking on community engagement and stakeholder relations, the Community Relations Manager, Engr. Oluyomi Owolabi, detailed the company’s Community Relations Committee (CRC) model, which fosters inclusive partnerships with 14 host communities. He noted that Lafarge’s investment in education, healthcare, and infrastructure has strengthened its long-term relationship with local stakeholders.

While appreciating Lafarge Africa Plc and the Ogun State Ministry of Industry, Trade, and Investment, one of the participants, Emmanuel Okechukwu, said the training is full of hands-on learning experience and was grateful for the opportunity to partake in the training. He noted that the insights gained would significantly contribute to improving operations and fostering sustainability in mining and geoscience practices. He charged all the delegates to ensure that the insights gained are used to drive operational excellence in their respective organizations.

Over the years, Lafarge Africa has championed knowledge-sharing, innovation, and sustainable practices within Nigeria’s mining and construction industry across all its locations pan Nigeria. The programme’s impact is expected to enhance industry standards and contribute to more responsible and efficient mining operations across the country.

Lafarge Africa Plc is renowned for the production of a wide range of cement solutions designed to meet all building and construction needs from small projects like individual home buildings to major construction projects.

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About Lafarge Africa Plc

Lafarge Africa Plc, a leading Nigerian building solutions company, is a member of Holcim Limited, a global leader in innovative and sustainable building solutions. Listed on the Nigerian Exchange Group, Lafarge Africa is actively participating in the urbanization and economic growth of Nigeria, the largest economy in Africa.

Lafarge Africa has the widest footprint in Nigeria with cement operations in the South West (Ewekoro and Sagamu in Ogun State), North East (Ashaka, in Gombe State), South East (Mfamosing, Cross Rivers State) with Ready-Mix operations in Lagos, Abuja and Port Harcourt. Lafarge Africa has a current installed cement production capacity of 10.5Mtpa.

Lafarge Africa leverages on its innovative expertise to provide value-added products and services solutions in the building and construction industry in Nigeria. Lafarge Africa Plc is renowned for the production of a wide range of cement solutions designed to meet all building and construction needs from small projects like individual home buildings to major construction projects. Additional information is available on the web site at www.lafarge.com.ng

About Holcim

Holcim builds progress for people and the planet. As a global leader in innovative and sustainable building solutions, Holcim is enabling greener cities, smarter infrastructure and improving living standards around the world. With sustainability at the core of its strategy Holcim is becoming a net zero company, with its people and communities at the heart of its success. The company is driving the circular economy as a world leader in recycling to build more with less. Holcim is the company behind some of the world’s most trusted brands in the building sector including ACC, Aggregate Industries, Ambuja Cement, Disensa, Firestone Building Products, Geocycle, Holcim and Lafarge. Holcim is 70,000 people around the world who are passionate about building progress for people and the planet through four business segments: Cement, Ready-Mix Concrete, Aggregates and Solutions & Products.