16 May

Daily Watch – CAMA boosts ease of business, NASS raises budget

  • The NNPC has awarded 50 companies with contracts to buy Nigerian crude and more than half of them are local firms. Of the total, 32 were local companies, doubling the number of awards to Nigerian firms compared to 2017. NNPC also awarded contracts to supply crude to 12 governments, although it was not clear how many of the deals would be handled by the companies already on the list of awards. NNPC awards the oil purchase contracts annually, but sources told Reuters that the deals this year were for two years not one year. Contract awards were announced in January last year. A partial list of firms awarded deals emerged on Monday, with a final list coming out yesterday.
  • Annual inflation in Nigeria stood at 12.48 percent in April, its lowest level in more than two years and its 15th straight monthly drop, the NBS has announced. It fell from 13.34 percent in March. A separate food price index showed inflation at 14.80 percent in April, compared with 16.08 percent in March. Food inflation has been in double figures for nearly three years but has slowed for the past six months. The highest increases were recorded in potatoes, yam and other tubers, as well as bread and cereals, plus oil and fats.
  • The National Assembly has increased the size of the 2018 budget to ₦9.120 trillion from ₦8.612 trillion. The details of the budget were listed on the order paper available at the Senate. The budget was laid before the Senate by Danjuma Goje, chairman of the Senate appropriation committee. Yusuf Lasun, the Speaker of the house, who presided over Tuesday’s session at the House of Representatives, said lawmakers will consider and pass the budget on Wednesday or Thursday.
  • The new Companies and Allied Matters Act which was passed into law by the Senate on Tuesday will make it possible to register a company from anywhere in the world. Speaking of the passage of the bill, Senate President Bukola Saraki, said that the passage of CAMA is a significant milestone in the 8th senate’s legislative agenda. The bill will “allow business owners to now register their businesses in a faster and more efficient way — using technology; remove all the unnecessary regulatory provisions — such as the requirement for annual general meetings and company secretaries, and reduce the minimum share capital for all companies and start-ups in Nigeria.” The bill will also create a new form of legal identity for businesses in Nigeria, Limited Liability Partnership, which is expected to increase foreign investment and enable Nigerian register their businesses online.