32FM 94.9

Category: Economy

  • IPMAN: NNPCL, Marketers fuel vessels to arrive next week

    IPMAN: NNPCL, Marketers fuel vessels to arrive next week

    Large consignments of petrol imported by major oil marketers are expected to arrive in Nigeria next week and are expected to force down the commodity’s price, both major and independent dealers stated on Sunday.

    Following the recent unification of the country’s exchange, which improved operators’ trust, crude oil refiners were currently distributing refined petroleum goods on credit to Nigerian dealers.

    This came as the Independent Petroleum Marketers Association of Nigeria told The Punch that they would compete with the Major Oil Marketers Association of Nigeria and the Nigerian National Petroleum Company Limited for petrol imports, emphasizing that this would drive down the price of PMS.

    NNPCL was the sole importer of petrol before the removal of subsidy by President Bola Tinubu as other marketers stopped imports due to their inability to access the forex.

    Oil marketers asserted at the time that the NNPCL was gaining access to the dollar at a reduced cost, which was unjust and did not support PMS imports by other dealers.

    However, with the recent unification of the exchange rate, oil marketers were forced to join in the importation of petrol and confirmed that the products would arrive in Nigeria the next week.

    When asked when the products imported by major marketers would arrive in Nigeria, Clement Isong, Executive Secretary of the Major Oil Marketers Association of Nigeria, answered, “I will simply say between the second and third week of July.”

    Isong, however, explained that the NNPCL had made a lot of fuel imports, as some of its vessels were still on the way to Nigeria.

    “Let me say that NNPCL has imported significantly to prevent the country from running dry. The vessels NNPCL imported are offshore Nigeria, so they have a significant volume, therefore in all circumstances, the country will not run dry.

    “So the options everybody has is that they can buy from NNPCL ex-depots or they can go and import from Europe or from other places. The assignment is that you compare your price if you buy from NNPCL or import from Europe.

    “More or less, the taste of the pudding is in the eating. So do your calculation as best as you can. But you will only know the full impact when the product is in your tank. If it goes right, it is then that you will know how competitive your price is. The more you do it, the more efficient you become,” Isong stated.

  • Refinery: We’ll ask Dangote to sell forex at good rates – CBN Governor

    Refinery: We’ll ask Dangote to sell forex at good rates – CBN Governor

    The governor of the Central Bank of Nigeria, Mr. Godwin Emefiele, stated yesterday that the Dangote refinery will be convinced to sell foreign exchange revenues to banks at a favorable rate. The Dangote Refinery is scheduled to produce its first goods in July.

    At the end of the 291st Monetary Policy Committee, MPC, meeting in Abuja, Emefiele stated that his team would work with Alhaji Aliko Dangote, the refinery’s promoter, to ensure that Nigerians benefited from the venture. He also stated that the CBN, the Federal Government, and the entire nation had assisted him in setting up the refinery.

    The governor of the CBN expressed confidence that the refinery would help the nation’s currency shortage, saying that by refining locally, roughly 20% of the cost of importing petroleum products could be avoided, which would eventually result in lower pricing. But he asserted that it was time to end the fuel subsidy system.

    His words: “By the time the Dangote Refinery comes on stream, the price at which it (fuel) will be dispensed will be lower than what it is when we spend dollars to import because there will be no freight cost, no storage, and all other logistics expenses.
    “So we will be lucky to be having about 20 percent savings from refining locally, rather than importing.

    “But the important thing is that we have reached a point, whether we like it or not when we must exit subsidy.
    “Dangote Refinery coming at this time gives us the confidence that even if we exit subsidy, the products will be available. And eventually, the interplay of market forces will also moderate the prices to a level that will help the country.

    “So we are expecting that no doubt, by the time he produces for domestic consumption, the excess will be exported by the numbers that he talked about, which we agree with.

    ‘’We should be able to save, conservatively, close to about $5 billion to $10 billion in foreign exchange that will come into the country.

    “Whether it comes to our reserves or not is not the point, it is the fact that the dollar is available and it will be sold in the domestic market so that customers of banks who need to import do not necessarily resort to CBN for dollars.
    “They can go to their banks and Dangote will sell dollars to their banks and we are going to ensure that it is done at a good market rate.

    “What I would have loved to say on Monday (at the Dangote Refinery Commissioning) which I didn’t say was that the CBN, the government, and the country have helped Dangote to set up that refinery.

    “He is a Nigerian; Nigerians must benefit from that venture and we are going to engage him and talk to him and I am sure that being the richest man in Africa, he is going to throw a few crumbs so that the price will be lowered.”

  • CBN raises interest rate to 18.5%, highest in 22 years

    CBN raises interest rate to 18.5%, highest in 22 years

    The Central Bank of Nigeria at its just concluded Monetary Policy Committee (MPC) meeting raised its benchmark interest rate (MPR) by 50 basis points to 18.5 percent, the country’s highest in 22 years.

    This was announced by the CBN governor, Godwin Emefiele, on Wednesday during the post-MPC press conference.

    The headline inflation rate reached its highest level since September 2005 in April 2023, rising to 22.22 percent from 22.04 percent the previous month.

    This will be the third interest rate increase in 2023 for the Mr. Emefiele-led Apex Bank.

    Both a high rate of inflation and a decreasing exchange rate on both the official and unofficial markets have been problems for Nigeria.

    The population’s purchasing power was diminished in April 2022 as headline inflation spiked to its greatest level in more than 17 years.

    To counteract the ongoing rise in inflation, the apex bank has increased the interest rate further.

  • DMO: Nigeria has not defaulted in repaying Chinese loans

    DMO: Nigeria has not defaulted in repaying Chinese loans

    The Debt Management Office has refuted the claim by a non-governmental organization, Socio-Economic Rights and Accountability, that Nigeria has defaulted in repaying its Chinese loans.

    SERAP applauded the ruling that ordered the administration of President Major General Muhammadu Buhari (retd) to explain how it spent $460 million that it received from China to finance the Abuja Closed-Circuit Television project that was later abandoned in a statement released yesterday.

    In its statement, the non-profit organization also cited a report that stated: “Nigeria has failed to repay loans for which penalties stand at N41.31bn.”

    However, DMO argued in their refutation that the assertion is “false” because Nigeria had not missed a loan payment.

    It said, “Nigeria is fully committed to housing its debt obligations and has not defaulted on any of its debt service obligations,” DMO said on Monday.

    According to The PUNCH, SERAP filed a lawsuit against the FG after Zainab Ahmed, the minister of finance, stated in 2019 that “Nigeria was servicing the loan” and that she had “no explanations on the status of the project.” We are servicing the loan, she allegedly said. Regarding the CCTV project’s status, I know nothing.

    SERAP and Justice Nwite both agreed that “there is a reasonable cause of action against the government,” according to his ruling. The public is interested in knowing how the $460 million Chinese loan was used. The court’s decision to deny SERAP’s request for judicial review of the government’s conduct will be detrimental.

    The presiding judge added that the Minister of Finance, who oversees the nation’s finances, “cannot by any stretch of the imagination be oblivious to the amount of money paid to the contractors for the Abuja CCTV contract and the money meant for the construction of the Headquarters of the Code of Conduct Bureau (CCB),” according to SERAP.

  • States paying outgoing govs jumbo pensions owe N3tn debt (Report)

    States paying outgoing govs jumbo pensions owe N3tn debt (Report)

    Despite increasing debts and unpaid wages for workers, no fewer than 18 departing state governors will retire into lives of luxury with significant pension benefits.

    Punch reports that governors who will hand over to their successors on May 29, 2023, would be leaving behind at least N3.06tn debt for the incoming administrations.

    According to data from the Debt Management Office, the debt figure of these states included N2.27tn domestic loans and $1.71bn foreign borrowing.

    The foreign debt is about N787.51bn, using the exchange rate of the Central Bank of Nigeria, which was N460.53 per dollar as of May 14, 2023).

    The debt figure was as of December 2022, which was the latest figure by the DMO.

    The Outgoing Governors

    The outgoing governors include Nyesom Wike (Rivers State), Ifeanyi Okowa (Delta State), Udom Emmanuel (Akwa Ibom State), Abdullahi Ganduje (Kano State), Badaru Abubakar (Jigawa State), Bello Matawalle (Zamfara State), Ben Ayade (Cross River State), Okezie Ikpeazu (Abia State),and David Umahi (Ebonyi State).

    Other outgoing governors who will benefit from the largesse despite huge debts and unpaid workers’ arrears are Ifeanyi Ugwuanyi (Enugu State), Samuel Ortom (Benue State), Darius Ishaku (Taraba State), Abubakar Bello (Niger State), Abubakar Bagudu (Kebbi State), Nasir El-Rufai Kaduna State), Simon Lalong (Plateau State), Aminu Masari (Katsina State) and Aminu Tambuwal (Sokoto State).

    The outgoing governors will be completing two terms of eight years in office on May 28, 2023, (except Zamfara’s Matawalle, who lost his re-election attempt), and will be entitled to generous monetary pensions, mansions to be built in locations of their choice, luxury vehicles and domestic as well as security aides, among others, based on laws passed by their respective state houses of assembly.

    Top Borrowers

    The PUNCH observed that the 18 states account for 42.51 per cent of the N5.34tn total domestic debt and 38.34 per cent of the $4.46bn total foreign debt.

    Also, top domestic debtors include Delta (N304.25bn), Rivers (N225.51bn) and Akwa Ibom (N219.27bn), while top external debtors include Kaduna ($573.74m), Cross River ($209.53m) and Enugu ($120.86m)

    Despite N225.51bn domestic debt and $87.13m foreign debt, Wike and his deputy, Dr Ipalibo Banigo, will enjoy generous benefits after leaving office as provided in the Rivers State Pensions for Governor and Deputy Governor Law, 2012.

    Pension Law

    According to the law, past governors must acquire three brand-new cars every four years, and they must be replaced. The payment of 100% of their basic income, 30% of their annual basic salary for furniture, free medical care, and entertainment is in addition to this. Their deputies also get some benefits.

    The former governor Rotimi Amaechi’s administration passed the pension law for past governors and their deputies, which included additional features like two choice homes in any neighborhood of their choice in Abuja and Rivers State, as well as three cars that would be replaced every three years for the governor.

    The law also stipulates that 20%, 10%, and 10%, respectively, of the current governor’s annual pay shall be set aside for utilities, building maintenance, and entertainment. Except in cases where he determines differently, Wike will be entitled to all of these.

    Wike, however, is alleged to have owed staff schools at the state-owned university institution money for seven years.

    A coalition of civil society organizations in the state has requested Wike, who will be passing over to his party’s candidate, Sim Fubara, to make up the unpaid wages of the workers before the beginning of the new administration.

    Okowa is entitled to a furnished duplex in Delta State or any other state in the nation, medical care for himself and members of his immediate family, two vehicles, including a utility vehicle every two years, two armed policemen, one Department of State Security officer, 15 days of annual vacation in any location of his choice, and other benefits. He also owes N304.25 billion in domestic debt and $58.77 million in foreign debt. Similar benefits are also available to the deputy governor.

    Former governor James Ibori, who headed the state from 1999 to 2007, signed into law the Delta State Governor and Deputy Governor Pension Rights and Other Benefits Law, 2005.

    The Delta State Governor and Deputy Governor Pension Rights and Other Benefits (Amendment) Law, 2009 was the name of the subsequent amendment to the original law.

    The law stipulates that ex-governors receive allowances and other perks valued at N50 million each year.

    Among other benefits, these include a duplex in any Nigerian city of their choosing, a sport utility vehicle, a backup car that may be replaced every two years, an office with four assistants, two security staff, and monthly salaries. The four household helpers would each receive N100,000 each month.

    Governor Emmanuel and his deputy are anticipated to receive the same benefits that the state’s Pension Act, 2014 offers. Akwa Ibom, which has N219.27 billion in domestic debt and $44.85 million in international debt, reportedly pays an average of N267.78 million annually on ex-governors and their deputies.

    Additionally, they are entitled to a four-year car replacement for official and utility vehicles.

    PUNCH extensive report can be accessed here

  • Inflation rate rises to 22.22% – NBS

    Inflation rate rises to 22.22% – NBS

    Nigeria’s inflation rate increased for the fourth consecutive month to 22.22 per cent in April from the 22.04 per cent recorded in March.

    This is according to the National Bureau of Statistics’ report on the Commodity Price Index, which was released on Monday.

    When compared to the headline inflation rate from March 2023, the inflation rate for April 2023 increased by 0.18 percentage points.

    Similar to this, the headline inflation rate was 5.40 percentage points higher year over year than the 16.82 percent rate registered in April 2022.

    Meanwhile, Food inflation rose to 24.61 per cent in April 2023 from 24.46 in March.

  • PENGASSAN raises concern over Nigeria’s rising debt and energy crisis

    The Nigerian Petroleum and Natural Gas Senior Staff Association (PENGASSAN) has called the country’s present debt profile, estimated at N77 trillion, frightening and calamitous.

    PENGASSAN 7TH TRIENNIAL MEETING. COURTESY: ARISE TV

    The 2023 budget, it was claimed, would fail because the cost of servicing the debt would consume the entire nation’s annual earnings.

    The union specifically stated that the present debt profile as of the first quarter of 2023 was staggering and that it might take several generations to repay them.

    The association also raised alarm over what it termed as troubling data from the Food and Agriculture Organization of the United Nations (FAO) forecast that around 25.3 million people in Nigeria may experience food insecurity between next month and August of this year.

    However, Mr. Peter Obi, the candidate of the Labour Party for president in the general election of 2023, claimed that if the country’s future government truly made use of the huge resource potential that exists there, the situation might be permanently altered.


    Festus Osifoh, president of PENGASSAN, said the union was deeply concerned about the current status of the economy while speaking at the beginning of the 7th Triennial Delegates Conference, which got underway in Abuja yesterday.

    He said the situation had become so bad that Nigeria would be using virtually all the monies generated as a country to service her debt.
    Osifoh said: “According to the Debt Management thce (DMO), the country’s total public debt profile, representing the domestic and external debt stocks of the federal government, the 36 state governments and the Federal CapitalTerritory (FCT) currently stand at N77 trillion.

    “This is quite alarming mostly when you compare the cost of servicing this debt to the revenue generated by government per annum. In the 2023 budget for instance, we will be using virtually all the monies generated as a country in servicing our debt. This is a calamity of the highest proportion unless we do all we can to increase the revenue base.”

    Festus Osifoh, President of PENGASSAN. Credit: Arise TV

    PENGASSAN stated that while it was not opposed to the federal government borrowing money, the money should instead be used for productive endeavors and infrastructure development rather than for consumption.
    According to Osifoh, PENGASSAN anticipates that the incoming administration will adopt a different strategy when it comes to enacting responsible fiscal and monetary policies for the nation.

    “The current state of our economy is of great concern to us as we had hoped to see steady growth in our GDP, increase access to employment for our teeming population and diversification of the economy but unfortunately, we are yet to achieve this.
    “Poor implementation of both fiscal and monetary policies; policy inconsistencies have continued to militate against our projected growth and development as a nation,” he said.

    Gas and Oil Sector and Economic Sustenance

    According to Usifoh, “the nation’s economy is confronted with many serious challenges like structural imbalance, corruption, weak human capital development, inequality, security challenges and excessive dependence on oil for revenue.”
    In addition, Osifoh lamented the high youth unemployment, which he said was recently highlighted by the International Labour Organization (ILO).
    He said underemployment and poor infrastructural facilities were some of the key challenges the new government should tackle with sound and coordinated strategy in consultation with relevant stakeholders and industrial experts.

    Cross Section of members at the PENGASSAN Meeting. Credit: Arise TV

    Speaking on how to turn around the economy, the PENGASSAN president said: ‘”The hard truth is that revenue from oil and gas sector can no longer sustain us as a nation and this is the most auspicious time to walk our talk. We commend the ongoing efforts of government in agricultural sector and expect the tempo to be sustained in the entire value chain and replicate same in other areas like solid minerals, tourism, technology, etc.”

    Osifoh also charged the incoming administration to ensure the completion of the ongoing rehabilitation of the nation’s petroleum refineries and to adopt the NLNG model in the running of the four refineries.

  • FG inaugurates first International Gemstone market in Ibadan

    FG inaugurates first International Gemstone market in Ibadan

    The Minister of Mines and Steel Development, Mr Olamilekan Adegbite on Thursday, has inaugurated the first international gemstone market in Nigeria, in Ibadan, the Oyo State capital.

    The federal government’s plan for economic sustainability includes the International Gemstone Market, which is located in Ojoo in the state’s Akinyele Local Government Area.

    Ibadan Gemstone Market, Credit: TVC

    Speaking at the event, the Minister of Mines and Steel Development, Mr Olamilekan Adegbite said the project was in line with the President Muhammadu Buhari’s resolve to anchor his economic diversification agenda on two key sectors of Mining and Agriculture.

    According to him, the ministry designed six strategic artisanal and small-scale mining, ASM, Cluster Projects in the six geopolitical zones.

    He said the choice of Ibadan as a location for the International Gemstone Market is predicated on the rich deposits of gemstones in the zone.

    Mr. Adegbite pointed out that the Southwest Zone’s International Gemstone Market in Ibadan would boost the nation’s economy and employment opportunities.

    Regarding the location’s sustainability, Architect Adegbite said that the market would continue to operate under the ministry’s management after this administration.

    The minister expressed his gratitude to the Oyo State government for donating the land for the market.

    He said: “These landmark projects are to create an enabling environment to support the Mining Industry through the formalization of the ASM Sub-sector as a major driver of the key growth parameters to engender the development of the Mining Sector since over 90% of the Mining activities in the country could safely be said to be ASM driven.” 

    “Over the years, a thriving informal gemstone market has evolved in Ibadan. The informal nature of the market gave credence to poorly regulated trading of mostly unprocessed gemstones, leading to capital flights and job losses. It is in a bid to leverage on this long-standing trading experience that the decision to establish the Artisanal and Small-Scale Mining (ASM) Cluster International Gemstone Market in Ibadan for the Southwest Zone was mooted”.

    “This event has again provided an opportunity to highlight the efforts of the administration of His Excellency, President Muhammadu Buhari to open some of the potentials available in the Mining Sector to serve as an alternative revenue source”. 

    “The concept of the International Gemstone Market was a crafted policy to spur job creation and capacity development of gemstones mining operators in Oyo State and environs, through the Economic Growth and Sustainability Plan of the Federal Government”. 

    “This project houses several Federal Government initiatives geared towards curbing smuggling of gemstones and other minerals as well as the development of the capacities of our teaming youths to actively participate in downstream gemstone and gold value chain”. 

    “It will interest you to note that this project is designed based on the cluster concept which has become a global trend in industrial development to promote shared amenities, agglomeration of similar producers, customers etc. based on geographical proximity and mineral endowment of rare metals and gemstone pegmatites (whose belt trend from Wamba, near Jos, in North Central Nigeria to Ago-Iwoye area in the southwest, Oyo State) or access to complementary expertise to promote efficiency and increase specialization and production.”

    “Some of the notable envisaged outcomes from the International Gemstone Market include but are not limited to the following: 

    Creation of over 20,000 jobs along the gemstone mining value chain in South-Western Zone cluster; Improved revenue generation from ASM subsector for both operators and government.” 

    Oyo State Governor Engineer Seyi Makinde opened the project while being represented by the Commissioner for Energy and Mineral Resources, Mr. Seun Ashamu, and he praised the federal government for the effort.

    According to Governor Makinde, his administration has chosen the solid minerals industry to expand the economy between 2023 and 2027 as part of the Omitutun 2.0 sustainability agenda.

    The state’s governor urged residents and other participants in the state’s diamond industry to abide by the regulations.

    The acting president of the Miners Association of Nigeria, Musa Mohammed, spoke via the secretary, Dele Ayanleke, in a message in which he praised the efforts made by several federal governments in the mining sector and pleaded for assistance in facilitating equipment leasing for members at various operation clusters.

    Dr. Oluwatoyin Akinlade, the Permanent Secretary of the Ministry of Mines and Steel Development, had previously hinted that the project was a component of the government’s response to the COVID-19 pandemic in order to strengthen the value-chain of the Minerals and Metals Sector and to mitigate the pandemic’s effects on our artisanal and small miners in the nation.

    The minister’s distribution of mining equipment to mining cooperatives by Mr. Olamilekan Adegbite was the ceremony’s high point.

    (FRCN)

  • Electricity: NERC promises to distribute 4m meters to consumers

    Electricity: NERC promises to distribute 4m meters to consumers

    The Nigeria Electricity Regulatory Commission (NERC), says it will soon provide four million prepaid meters to electricity consumers in the country.

    Aisha Mahmud – NERC Commissioner

    This was revealed at the Customers’ Complaints Resolution Meeting held on Tuesday in Jos by Aisha Mahmud, NERC Commissioner in charge of Consumer Affairs.

    Mahmud said that the difficulty would soon be over when he listed the lack of meters in the nation as one of the greatest issues the commission is presently facing.

    She stated that plans had been made to distribute the meters via the Federal Government’s National Mass Metering Program (NMP).

    ”Actually, metering is one of the biggest challenges that we have been facing in the last couple of years in the commission.

    ”I don’t think this is funny given that so much investments have been made in the power sector.

    ”It is said that in Nigeria, electricity generation started in Lagos as far back as 1826 with 20 megawatts. 126 years down the line, we are still talking about basic things as metering, a phase we should have passed a long time ago.

    ”Aside many interventions in that regard, including the zero phase of the NMP where over one million meters were provided, the first phase of the initiative will make available four million meters to customers,” she said.

    Mahmud, who claimed that the mass metering program’s preparations were complete, added that the Central Bank of Nigeria (CBN) will provide funds for the initiative.

    ”We shall make available these meters to customers through the distribution companies and this is to show that the regulator is not just sitting but making efforts to see that all Nigerians have access to metres.

    ”So, we shall do all it takes as regulators to ensure that the issue of metering becomes a thing of the past. I strongly believe that with the plans ahead, we will overcome this challenge soon,” she said.

    Mahmud also attributed the increasing rate of electricity tariff to inflation, rising exchange rate, cost of gas, labour generation, and other economic realities in the country.

    ”Inflation has gone up to double digit, exchange rate, even the official rate is crazy, operators purchase most of their equipment abroad using the current exchange rate. The cost of labour keeps increasing, among other factors,” she explained.

    Concerning the customer meetings, Mahmud stated that the commission was in Jos to inform customers of their rights and to hear their grievances in order to immediately address them.

    Mr. Abdu Mohammed, the Managing Director of Jos Electricity Distribution Plc (JED), also spoke, promising that the issues brought up by the customers at the meeting would be resolved right away.

    ”Quite a lot of issues, ranging from metering, billing, power quality, complaints about our staff, among others, were raised.

    ”I want to promise that all these issues will be addressed immediately and, in terms of metering, we are very much on track.

    ”Few days back, we purchase 12,000 meters and they are currently in our store. We are expecting 305,000 meters in the forthcoming NMP phase one and the over 100,000 from the World Bank Intervention

    ”So, very soon, you will see traction in all pur franchise states and all our customers will be metered,” Mohammed said.

  • Fuel subsidy: FG to implement 40% pay rise for workers April ending

    Fuel subsidy: FG to implement 40% pay rise for workers April ending

    The Federal Government will start paying the anticipated wage raise for government personnel at the end of this month (April), The Punch reports.

    The President, Muhammadu Buhari, ret., is anticipated to approve the payout soonest.

    If the proposal is approved, the increase will occur around two months prior to the June withdrawal deadline for the petrol subsidy.

    The Federal Government may start paying the 40% pay increase by the end of April of this year, according to Olajide Oshundun, Director of Press and Public Relations for the Ministry of Labour and Employment. He also said that the three months’ worth of arrears from January, February, and March would be paid at a later time.

    Oshundun, however, stated that he was unable to know whether the President had finally approved the plan made by the government committee tasked with the assignment.

    He said, “Consequential allowance Salaries will be increased by 40 per cent for civil servants from level 1 to level 17.

    “What we receive now is called consolidated public service salary structure, it is the combination of basic and all allowances. So, the increase will be 40 per cent of what a public servant is earning now.

    “They will start paying from the end of this month (April) and the arrears of January, February and March will be paid later. The salary increase is effective from January 2023. That is the proposal submitted by the committee set up to look into salary adjustment for civil servants, but am not sure if the President has signed it yet.”

    Last month, the Federal Government authorized a salary increase for the nation’s civil officials, according to the Minister of Labor and Employment, Chris Ngige.

    He continued by saying that the wage increase had been planned for in the 2023 budget and that it would go into effect on January 1, 2023.

    In view of the current economic climate, Ngige defined the wage increase as a special provision for civil servants. It is intended to help government employees fend off the consequences of growing inflation, rising living expenses, and increases in transportation, housing, and power rates.