Business
World Bank Calls For Reform As Nigeria Faces N13trn Loss From FX Subsidies
The World Bank has raised concerns over the significant losses Nigeria has incurred due to foreign exchange (FX) subsidies, amounting to an estimated N13 trillion.
In its latest report, the global financial institution urged the Nigerian government to uphold a unified exchange rate to rectify economic distortions created by the previous administration and enhance fiscal stability.
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The report detailed the government’s fiscal losses, stating that Nigeria lost N2 trillion in 2021, N6.2 trillion in 2022, and N5 trillion in 2023, due to the existence of multiple exchange rates.
These losses stemmed from the difference between the official exchange rate and the parallel market rate, leading to substantial revenue shortfalls.
“Quantifying the fiscal cost, through forgone revenue of multiple exchange rates: Prior to the full FX unification in February 2024, the presence of a parallel FX premium generated enormous fiscal costs, in the form of forgone revenues,” the Bretton Woods report revealed.
The practice of converting foreign currency revenue inflows—derived from oil sales, customs duties, and taxes paid in foreign exchange—at the official exchange rate, meant the Nigerian treasury received fewer naira than it would have if the revenue had been exchanged at the higher parallel market rate.
This resulted in a significant reduction in naira-denominated revenues, impacting public finances.
“The unification of the FX rate has therefore eliminated the forgone revenues that previously benefited certain groups at the expense of the entire nation,” the report stated.
“These implicit forgone revenues from the FX premium were even larger than the PMS (petrol) subsidy, underscoring the importance of maintaining a unified FX rate.”
In 2022, while the PMS subsidy cost the government N4.5 trillion (2.2% of GDP), the revenues forgone due to the parallel market premium were estimated at N6.2 trillion (3% of GDP). Of this amount, N4.5 trillion was lost from gross oil revenues and N1.7 trillion from non-oil tax revenues.
The World Bank highlighted the broader benefits of maintaining a unified FX rate, pointing out that it not only addresses inefficiencies in the FX market but also helps restore fiscal stability.
Moreover, it promotes a more competitive economic environment by eliminating distortions that previously favored importers with preferential access to FX, while making exports less profitable.
“Maintaining the unified FX rate that Nigeria has achieved since February 2024 is essential from a fiscal perspective,” the report emphasized.
It also noted that the reform will deter rent-seeking activities and illicit practices, thus contributing to overall economic growth.
Business
NNPC Ltd Targets 3,000 In Free Cancer Screening Initiative
The Nigerian National Petroleum Company Ltd (NNPC Ltd) through the NNPC Foundation, its Corporate Social Responsibility (CSR) arm, is set to launch a free cancer screening campaign to address Nigeria’s rising cancer cases.
The Chief Corporate Communications Officer, NNPC Ltd, Olufemi O. Soneye, made the disclosure in a statement in Abuja, on Tuesday.
It was gathered that the campaign tagged “Cancer Awareness and ZSX Screening” would provide, not just free cancer screening to indigent Nigerians, but also health education, workshops, and consultations with healthcare professionals aimed at empowering individuals to recognize early symptoms, adopt preventive measures, and drive home the importance of regular screenings.
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The campaign which will be organised in collaboration with local health authorities and expert healthcare providers is targeted at reaching about 3,000 individuals across the six geo-political zones with screening centres in Kaduna, Rivers, Ondo, Benue, Imo, and Gombe. The initiative will focus on breast, cervical, and prostate cancer, offering critical early detection support for at-risk populations.
Shedding more light on the objectives of the campaign, the Managing Director of NNPC Foundation, Emmanuella Arukwe, said, “The fight against cancer requires a collective effort and a commitment to ensuring accessible healthcare. This campaign is about more than just screening; it’s about saving lives, building awareness, and creating pathways to preventive care for Nigerians who need it most.
“In a country of over 200 million people, too many still lack access to the early detection tools that could make a life-saving difference. The NNPC Foundation is dedicated to addressing this critical gap by bringing cancer screenings directly to communities. Early detection is crucial to improving survival rates, and this campaign is a vital step towards that goal.”
Cancer remains one of the most formidable health challenges in Nigeria, with over 79,000 cancer-related deaths annually, according to the World Health Organization (WHO). The most common cancers affecting Nigerian men include prostate and liver cancer, while women are predominantly impacted by breast and cervical cancers.
The campaign seeks to counter the trend of late-stage diagnoses, which occur frequently due to limited access to screening facilities, cultural stigmas, and insufficient awareness.
This initiative follows the success of a screening drive in February 2024, where over 200 Abuja residents received free breast, cervical, and prostate cancer screenings.
These free cancer screening campaigns reflect NNPC Ltd.’s broader mission to promote health equity and enhance the well-being of Nigerians across the country through its Foundation.
Business
Local Content: Dangote Cement, Ibese Plant Enhances Local Business Operators’ Skills
The management of Dangote Cement’s Ibese Plant has reaffirmed commitment to advancing local content policy, aiming to stimulate the economies of its 17 host communities through skills development and increased business opportunities for local enterprises.
During a one-day capacity development workshop for local vendors, themed “Leveraging DCPI’s Processes and Procedures to Build Viable Local Businesses,” Acting Ibese Plant Director, Johnson Michael expressed this commitment.
Since the plant’s establishment over a decade ago, Michael noted that the company has significantly impacted not only the host communities but also the wider Ogun State.
He emphasised that Dangote Cement would continue to prioritise local autonomous businesses to enhance economic resilience within the state.
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The workshop, held at the plant premises in Ibese, attracted numerous local service providers and suppliers from neighbouring communities. Michael explained that the event aimed to broaden vendors’ perspectives and deepen their understanding, thereby unlocking greater business opportunities, improving operational efficiency, and strengthening safety and security practices.
He noted that this initiative, the first of its kind at the Ibese Plant, is part of Dangote Cement Plc’s local content development strategy and reflects a strategic partnership with host communities to promote sustainable development and prosperity. The workshop was designed to equip participating vendors with the tools and insights necessary to thrive within and beyond the company’s ecosystem.
On behalf of the vendors, Deacon Segun Omoniyi from Abadom Commercial Enterprises expressed gratitude for Dangote Cement’s investment in upskilling and fostering the growth of local businesses.
He assured that the knowledge gained would enhance service delivery and operational excellence at the plant.
The initiative saw effective collaboration among various departments, including Human Asset Management & Administration, Occupational Health, Safety and Environment, Procurement, Security Services, Stores, Finance & Accounts, and Social Performance.
Recently, the Ibese Plant also donated agricultural supplies to local farmers as part of a broader empowerment programme aimed at ensuring food security for the community. During the presentation, over 60 farmers from the 17 host communities received fertilizers, herbicides, and knapsack sprayers to assist them in the upcoming farming season. They also received training on “Integrated Pest Management and Crop Protection,” covering the application of the donated inputs as well as general pest management techniques.
The plant management noted that these donations are part of Dangote Cement’s Social Investment drive, which focuses on four key areas: Education, Health, Empowerment, and Infrastructure. They emphasised that the company’s community investments and their positive impacts on residents demonstrate Dangote Cement’s dedication to adding social value to its host communities.
According to the company, the initiative aims to enhance the productivity of participating farmers, strengthen food security, and boost revenue across the agricultural value chain in the host communities.
Dangote expressed optimism that that this intervention will positively impact the production of garri, fufu, and kokoro, which are staple foods in the area.
Business
Osun Recovers Shares From Thors Explorations, Segilola To Pay Taxes
Osun State Governor, Senator Ademola Adeleke has commended progress in the state’s dispute with Thor’s Explorations Limited, as mediation has confirmed that most government’s demands.
Gov Adeleke made the remarks after receiving preliminary report from the state team led by the Special Adviser to the Governor on Mining and Mineral Matters, Prof. Lukuman Adekilekun Jimoda.
According to Gov Adeleke, it is great news that Thors Limited has eventually produced a written certificate of Osun State shares in the Segilola Gold Project. The intermediation has also made Segilola, the operator of Thor Explorations to accept the responsibility of opening all its accounting records for examination on the 3.25-billion-naira tax assessment by Osun state, in line with Personal Income Tax Act section 58(2).
In his words, “We finally have an open and direct confirmation of Osun shareholding at five percent of what Tropical Mines Limited got. I look forward to hosting the federal mediation team for the formal presentation of the share certificate to the state government, although, our demand is five (5) percent of the value of the gold asset, when it was acquired by Thor Explorations from its interest holders. We also have additional economic interest, coming from Thor’s partnership offering, when it took 88 cadastral units, out of Osun’s exploration license.
“Our decision not to do under the table deal with Thors Explorations has paid off. From the beginning, I said I don’t want gold bars for myself or my family. I want Osun shares as asset of the state and that the taxes be paid into her treasury.
“We know other interest holders got cash and smelter fees during the acquisition by Thor, we are also insistent on immediate payment to the state treasury of the full amount due to the state from her interest in the gold project. The financial implications of our holding must be redeemed without further delay.”
On the update on payment of tax indebtedness to the state by Thors Exploration Limited which required further documentation, the Governor directed his team to submit all required data and records, insisting that “Osun has legitimate PAYE tax demands which Thors firm must fulfil.
“I commend the federal mediation team for acting to enforce compliance with local tax and environmental laws. We are opposed to companies operating with impunity by neglecting observance of state laws. We are only asking Thors to comply with state laws as much as the federal laws. There are other asset classes in Nigeria that are registered with corporate affairs Commission. MTN and Airtel are telecom asset classes and they are registered in Nigeria, let Segilola Gold Project be registered in Nigeria.
“We will submit our environmental inspection report. We will show the world that even a billion dollar cannot achieve the remediation and rehabilitation of our damaged environment. It is actually worrisome that an internationally quoted mining company will neglect and attempt to evade the care for the environment it violated”, the Governor lamented.
Earlier, Prof. Jimoda had submitted a report of the mediation meeting between Thor’s management and the state government under the supervision of the intervention team set up by the Federal Minister of Mines Development, Mr Dele Alake.
He told the Governor that the meeting achieved significant milestones for Osun state especially on the issue of shareholding , payment of monetary implications, continuous discussion on the exact tax indebtedness as well as consensus on the need for environmental remediation.
The adviser, however, said the meeting did not address the many court cases over the disputes. A follow up meeting by disputing parties is to be held in Osun state in due course.