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BUSINESS ROUNDUP: Nigerian govt insists on removal of fuel subsidy; Bitcoin holders lose $50.34bn; Other stories

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Nigeria retains position, scores lower in global competitiveness index

Hello, and welcome to Business Roundup this week. Here, we bring you highlights of events that happened during the week -from the capital market to the mainstream business activities, while not forgetting the tech/economy build up.

Here are the Headlines:

• UK leads as foreigners bring $1.73bn into Nigeria in three months
• Bitcoin holders lose $50.34bn, as US attracts investors to bonds
• Nigerian govt to earn N81bn from new excise duty on soft drinks
• Nigerian govt insists on removal of fuel subsidies

Summary:

The National Bureau of Statistics (NBS) has disclosed that Nigeria attracted $1.73 billion from foreign investors and companies in the third quarter of last year (Q3 ’21).

This was a 97 percent improvement from the $875.62 million reported in the second quarter of 2021. NBS gave the numbers in its released Capital Importation Report for Q3’21 on Thursday.

The Bureau noted that the largest amount of capital importation by type was received through portfolio investment, which accounted for 70.3 percent ($1.21 billion) of total capital importation.

Bitcoin tumbled in reaction to reports that the United States is planning to reduce its balance sheet by selling off bonds. This move saw a record selling between Wednesday and Thursday.

On Wednesday, it was circulated that the US Federal Reserve had resolved to cut its hold on bonds after meeting in December. The government purchases bonds to keep interest low, but its projected plan triggered an increase in bond yields, CNBC disclosed.

During the same period, bitcoin and other altcoins nosedived in value, extending their bearish run in 2022. BTC’s selling price has shed over 6% between Tuesday (pre-report release) and Friday.

The Manufacturer Association(MAN) has detailed what the new N10 per litre excise duty on carbonated, and non-alcoholic drinks means for the manufacturing industry and Nigerians.

In a report ‘key considerations against excise on non-alcoholic beverages’, MAN explained that the new law would be counterproductive and lead to revenue loss for the government.

According to MAN, from 2022 to 2025 the federal government might collect N81bn from the excise duty, but lose N197bn within the same period from other taxes, such as Value Added Tax and Company Income Tax from the manufacturers of soft drinks.

The Federal Government has reiterated its decision to ensure the total removal of subsidy on Premium Motor Spirit, commonly known as petrol.

This was disclosed on Wednesday by the Minister of Finance, Budget and National Planning, Zainab Ahmed, during a media briefing at the public presentation of the 2022 budget in Abuja.

According to Ahmed, the FG was set to comply with the provisions of the Petroleum Industry Act 2021 to fully deregulate prices of petroleum products.

From the Capital Market: Investments up by 0.55% as shareholders gain N130.7bn

Read also: BUSINESS ROUNDUP: NIPC generates N11.91bn in five years; Tier1 banks make N159bn from Naira devaluation; Other stories

Shareholders at the Nigerian capital market smiled home with N130.7 billion following the rise in total investment by 0.55 percent on Friday.

The development lifted the total investment at the bourse from N23.49 trillion to N23.62 trillion at the close of the day’s business.

The All-Share Index was up by 230.45 basis points to close at 43,854.42 compared to 43,607.94 posted on Thursday.

Investors traded 395.15 million shares valued at N12.39 billion in 4,032 deals on Friday.

Meanwhile, on the tech space, Apple, Fixit45, Alvin, Y Combinator and Windowshoppi were some of the names that made the headlines this week.

Apple, makers of iPhone, during the week, crossed a major milestone when it hit the $3 trillion (N1.2 quadrillion) market capitalization.

Also, during the week, Fixit45, a Nigerian startup, launched venture as a one-stop-shop and service solution platform for car owners.

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