Ekiti approves ₦145 Right of Way charge
Ekiti State has approved a Right of Way (RoW) charge reduction from ₦4,500 to ₦145 per meter. The RoW charge is paid by telcos to lay telecommunication cables. In 2018, state governors agreed to implement a RoW charge of ₦145 but many states subsequently charged over ₦3,000. The reduction in RoW charges will help the Nigerian Communications Commission (NCC) in its quest to attain 70% broadband penetration by 2021.
Travel & Hospitality
IATA releases air travel outlook
International Air Transport Association (IATA), a trade association of 290 global airlines, predicts that passenger demand will be between 24% and 34% lower next year compared with 2019. It expects international transport to be more affected due to on-arrival quarantine requirements. Despite the negative report, the IATA still expects populated emerging markets like Nigeria & China to drive long term demand for air services.
2020 budget reduced by ₦70 billion
The 2020 budget has been revised downwards by ₦70 billion to ₦10.52 trillion. The benchmark crude price was also lowered to $25, with oil output falling by 28% to 1.9mbpd. Projected revenues saw a more significant cut, reflecting the decline in oil prices. They were revised from ₦8.1 trillion to ₦5.1 trillion, leading to a fiscal deficit of ₦5.3 trillion. The government plans to finance the deficit with borrowing and asset sales.