Dangote Petroleum Refinery has announced a reduction in the price of Premium Motor Spirit (PMS) to N899.50 per litre, offering relief to Nigerians as the holiday season draws near.

This follows a previous price cut to N970 per litre on November 24. The latest reduction is aimed at alleviating transportation costs during the festive period, when travel expenses typically rise for many Nigerians.

The announcement was made in a statement issued on Thursday by Anthony Chiejina, the Group Chief Branding and Communications Officer of Dangote Group.

More to come…

The Lagos Chamber of Commerce and Industry (LCCI) says Nigerian businesses may likely face greater challenges in the new year, urging them to prepare for “more stress.”

In a statement on Monday, Chinyere Almona, LCCI’s director-general, said businesses are likely to face higher interest rates when the next Central Bank of Nigeria (CBN) Monetary Policy Committee (MPC) meeting holds.

“The persistent rise in the inflation rate, reaching a 28-year record high of 34.60 in November, continues to fuel a tense business environment as elevated prices constrain various business operations,” Almona said.

“The Lagos Chamber of Commerce and Industry (LCCI) is particularly concerned because, with the persistent and unabated rise in inflation, businesses should prepare for more stress from the burden of higher interest rates as we enter the new year.”

“With the raging inflation rate, the unsuccessful attempt of the Central Bank to reduce the currency in circulation, and approaching a high-spending festive period, we are set to contend with even higher interest rates as the expected outcome from the next decisions by the CBN Monetary Policy Committee (MPC).”

Almona explained that a high inflation rate has significant implications, including reduced consumer spending.

She said it negatively impacts the economy by reducing disposable income, increasing business costs, and discouraging investments, ultimately threatening economic growth.

‘FOREIGN DIRECT INVESTMENT IN NIGERIA DROPPED TO $103.82M IN Q3 2024’

According to the statement, foreign direct investments (FDIs) in Nigeria dropped to $103.82 million in Q3 2024, making the country less attractive to investors.

Almona said interest rates have had limited success in curbing inflation, but reforms aimed at boosting production have shown some promise.

She expressed hope that the reforms would eventually have a stronger impact on key indicators such as inflation, interest rates, and exchange rates.

The director-general said a coordinated effort is required to drive oil production to earn more forex, which is needed to defend the naira in the short term.

“The new investments recently entering the oil fields can be well supported with a sound regulatory environment to sustain and attract more,” she said.

“A disappointing negative record of our capital importation at $1.25bn during the third quarter of 2024 compared with $2.60bn recorded in the preceding second quarter of the year points to an unattractive environment for investors.”

“Foreign Direct Investment, the most critical investment that shows long-term investor confidence, accounted for only $103.82m, or 8.29 percent.”

Almona added that the fight against terrorism and crime must be sustained to ensure the safety of farmlands.

She noted that the rising costs of food, energy, housing, transportation, and services are driving inflation, worsening economic conditions, and reducing both purchasing power and business profitability.

However, Almona stated that the LCCI believes ongoing reforms have the potential to deliver significant benefits, enabling the economy to return to a growth path and achieve positive outcomes for critical economic indicators, provided they are sustained.

The Central Bank of Nigeria (CBN) has introduced a daily withdrawal limit of N100,000 per customer for point-of-sale (PoS) terminals.

In a circular sent to all deposit money banks (DMBs), microfinance banks, mobile money operators, and super-agents, titled ‘Cash-out limits for agent banking transactions,’ CBN stated that the restriction aligns with the apex bank’s ongoing efforts to promote a cash-less economy.

The circular explained that these measures aim to address identified challenges, combat fraud, and establish uniform operational standards across the industry.

“In view of the above, ALL principals of agents are to comply with the following directives immediately:

i. Issuers shall set a cash withdrawal limit (cash-out) per customer (regardless of channel) to N500,000.00 per week,” the circular reads.

“ii. Ensure that all agent banking terminals are set to a daily maximum transaction cash-out limit of N100,000.00 per customer.

“iii. Ensure that each agent’s daily cumulative cash-out limit shall not exceed N1,200,000.00.

“iv. Ensure that agent banking services are clearly demarcated from merchant activities and that agents apply the approved Agent Code 6010 for agent banking activities.

“v. Ensure that agency banking activities are consummated exclusively through agent float accounts maintained with the principals.

“vi. Monitor accounts associated with the agents’ BVN(S) with a view to identifying agent banking activities which may be conducted outside the designated float account(s).

“vii. Ensure that all agent terminals are connected to a PTSA.

“viii. Ensure that all daily transactions per agent, including withdrawals, limits of transactions and balances in the float accounts of each agent, are sent electronically to NIBSS as a report to the CBN. The template of this report will be sent to principals.”

CBN emphasized that, as outlined in the guidelines for the regulation of agent banking and agent banking relationships in Nigeria, principals would be held fully responsible and liable for all actions and omissions of their agents related to agent banking services.

The apex bank also cautioned that it would carry out oversight activities, including impromptu back-end configuration checks to ensure compliance.

CBN warned that violations of the directives in the circular will result in appropriate penalties, including monetary and/or administrative sanctions.