BANKING
Ecobank waives money transfer charges for Nigerians abroad
Ecobank Nigeria has said it is joining the rest of the country to celebrate Nigerians in the diaspora by making transactions on its proprietary money transfer app, Rapidtransfer, free of charge from July to October. A statement from the bank on Wednesday said this was in commemoration of this year’s National Diaspora Day event. The statement said the Federal Government had set aside July 25 of every year as the National Diaspora Day in recognition of the contributions of Nigerians living outside the country towards the development of their homeland. Punch
ECONOMY
Despite aggressive revenue drive, FG suffers N1.4tn shortfall
Between January and May 2021, the Federal Government recorded a revenue shortfall of N1.4tn, an analysis of the Medium Term expenditure framework and Fiscal Strategy paper for 2022-2024 has shown. According to the report obtained from the Budget Office of the Federation, the Federal Government’s projected revenue for the 2021 fiscal year is N7.9tn, of which N3.2tn was earmarked as pro rata target for the period under review. However, as of May 2021, the government had only generated N1.8tn, or 56.25 per cent of the pro rata estimate, translating into a revenue gap of N1.4tn. Punch
EIU Report: FG May Raise VAT to 15% Before 2025
A report by the Economist Intelligence Unit (EIU), London, has predicted that the federal government might effect a 100 per cent rate increase in the Value Added Tax (VAT) from the current rate of 7.5 per cent to 15 per cent before 2025 in order to raise government’s revenue. The report titled, “Country Report Nigeria,” stated that the anticipated increase in VAT was inevitable given the rising public debt burden and the likelihood that the Petroleum Industry Bill (PIB) might not be able to deliver considerable increase in government’s revenue. This Day
Higher production to weigh on oil prices, say analysts
Higher crude oil production by the Organization of the Petroleum Exporting Countries and its allies will weigh on prices, analysts at Capital Economics, a London-based economic research firm, have said. They said the OPEC+ agreement, signed on Sunday, should help to stabilize oil prices. Brent crude is expected to trade in a narrow band of between $70 and 75 per barrel over next six months. “But we expect Brent to fall into the $60-70 range in 2022 as more global supply comes onto the market. Punch
NNPC Records 63% FAAC Remittance Shortfall in Five Months
The statutory payments made by the Nigerian National Petroleum Corporation (NNPC) to the Federation Account, a joint pool operated by the local, state and federal governments, declined by over 63 per cent in the first five months of 2021, documents obtained by THISDAY have indicated. An analysis of the data presented by the national oil company to the Federation Account Allocation Committee (FAAC), in the first five months of this year showed that of the calendarized total sum of N613.834 billion, the corporation was only able to remit N225.852 billion. This Day
