• Sunday, December 03, 2023
businessday logo


Five things to know to start your Monday


Tribunals to render verdicts on Tinubu, cases of 25 Govs’ election petitions in September

President Bola Tinubu and 25 state governors are anxiously awaiting the verdicts of election tribunals that handle petitions related to presidential, governorship, National Assembly, and state assembly elections in Nigeria.

These tribunals are expected to deliver judgments this month, with numerous disputes arising from the Independent National Electoral Commission’s results in 25 states out of the 28 states where governorship elections were held.

The judgments will determine the outcome of these contested elections, and parties involved have expressed their hopes and expectations. The process is crucial for the country’s political landscape, and the decisions will have significant implications for the affected states.

Read also: Abure optimistic about Peter Obi’s victory at presidential tribunal

Taxes from consumers, companies soar by 96% to reach N2.3trn—NBS

In the second quarter of 2023, government revenue in Nigeria received a significant boost, with taxes from companies and consumers surging by 96.11 percent to reach N2.31tn.

This remarkable increase came after Q1, 2023, when the total tax paid amounted to N1.18trillion, according to the National Bureau of Statistics (NBS).

The spike was primarily driven by a 226.40 percent quarter-on-quarter rise in Company Income Tax (CIT), totaling N1.53trillion in Q2.

It marked the first time companies paid over N1trillion in a single quarter, surpassing yearly collections in previous years. VAT, however, increased by 10.11 percent quarter-on-quarter, reaching N781.35billion.

The growth in revenues is attributed to increased VAT rates and efforts by the Federal Inland Revenue Service (FIRS). The government aims to further enhance tax revenues by reviewing and reducing tax incentives for companies, as Nigeria has one of the lowest revenue-to-GDP ratios globally, making it susceptible to fiscal shocks.

Foreign investors support marketers in establishing 30,000 gas stations

Oil marketers have received approval from domestic and international financiers to establish approximately 30,000 gas stations across Nigeria.

Many of these stations are currently undergoing conversion to dispense gas, in line with the government’s plan to deploy 11,000 Compressed Natural Gas (CNG) vehicles to mitigate the impact of fuel subsidy removal.

The National President of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Chinedu Okonkwo, confirmed positive responses from project financiers.

The move aims to reduce the financial burden on vehicle owners by promoting CNG, with the potential to significantly cut fuel costs, saving users thousands of Naira on their journeys. IPMAN is working closely with both local and international financiers to realize this initiative and expects government support for the use of autogas.

FG’s 3-month spending tops revenue by N1.43tn—CBN

The Federal Government of Nigeria faced a significant fiscal challenge in the first quarter of 2023, with expenditures exceeding revenues by N1.43 trillion, as revealed by data from the Central Bank of Nigeria.

This deficit was 9.6 percent higher than the previous quarter and 22.1 percent below the set target. The fiscal performance was hampered by lower oil revenue, causing a 10.7 percent drop in retained revenue compared to the previous quarter and a 46.1 percent shortfall relative to the quarterly target.

Non-oil revenue played a dominant role, accounting for 61.4 percent of government income, while oil receipts decreased by 3.0 percent due to lower domestic crude production, resulting in revenue shortfalls in petroleum profit tax and royalties.

Chevron begins mediation talks to avert Australia LNG strike

Mediation talks are underway to avert potential strikes at Chevron’s two major liquefied natural gas (LNG) facilities in Australia after workers rejected the company’s proposed wage and working conditions.

The talks, hosted by a senior member of Australia’s Fair Work Commission (FWC), began in Perth this week. Chevron’s move to directly present the offer to workers, bypassing unions, was met with overwhelming rejection.

If a resolution isn’t reached, industrial action is slated to start at the Gorgon and Wheatstone projects, which collectively contribute over 5 percent of global LNG production capacity.

The Offshore Alliance union has outlined plans for work stoppages and task suspensions, potentially costing Chevron billions and disrupting Australia’s LNG exports, affecting major Asian buyers.

This dispute has heightened volatility in natural gas markets, with Australia being the world’s leading LNG exporter. Notably, a recent labor dispute at Australia’s largest LNG facility, the North West Shelf, was resolved after workers approved a deal.