Category: Business

Nigeria and other countries in the Sub-Saharan African region risk social and political instability and worsening food insecurity, due to rising inflation, according to the International Monetary Fund.

IMF noted that inflation has nearly doubled pre-pandemic levels in the region, adding that while there is a significant difference between countries, the median inflation rate in the region increased to almost nine per cent in August.

It said, “And even though the rise has been less dramatic than in other parts of the world, and the drivers are different, inflation is nearly double pre-pandemic levels, risking social and political instability and worsening food insecurity.”

It disclosed this in a report titled, ‘Africa’s Inflation Among Region’s Most Urgent Challenges.’ The fund explained that the region was besieged by a slow recovery from the pandemic, rising food and energy prices, and high levels of public debt.

It stated that despite an economic rebound in 2021, the fallout from the pandemic has kept domestic economic activity in the region relatively muted, and it expects growth to slow this year.

The Washington-based lender stated that unlike richer countries in other regions, most countries in the region lack the needed resources to support and stimulate growth.

Listing some of the causes of the region’s inflation, it said inflation in Nigeria and other sub-Saharan African countries was being driven less by economic activity and more by external developments.

It said, “They include the sharp spike in global commodity prices, swings in the exchange rate, global supply chain disruptions, and natural disasters.

“In the case of food, the prices of key staples such as maize and wheat have increased since 2019, contributing two-thirds of overall inflation in fragile states and one-half elsewhere in the region. Higher global energy prices and the strong dollar have also fed through to inflation indirectly, via transportation and tradable goods like household products.

“By contrast, there have been only modest increases for the prices of goods and services that most reflect domestic demand pressures, so-called nontradable—which typically include any locally-produced services, such as in the hospitality, health, or education sectors.”

The IMF further said it expects 12 per cent of the population in Nigeria and other countries in the sub-Saharan region to experience acute food insecurity by the end of 2022.

It added that many countries have turned to subsidies and tax cuts to alleviate the squeeze in household incomes in a bid to alleviate some of the economic concerns of the regions while central banks across the region have started raising interest rates in response to rising inflation, capital outflows, and currency depreciation.

It disclosed, “Examples include Ghana, Malawi, Mozambique, Nigeria, Uganda, and the economic and monetary unions for both Central and West Africa.

“Monetary authorities also find themselves facing an increasingly delicate trade-off: raising rates to keep inflation in check will risk choking off credit for investment, depressing economic activity, and reducing incomes. Meanwhile, fiscal consolidation and the global slowdown weigh on domestic economic activity.”

However, the IMF warned central banks against raising interest rates in a hurry as it might jeopardize recovery.

This article was originally published on Naija News

The Bank Directors Association of Nigeria has announced that it’s income rose by 5.3 percent in the 2021 financial year.

The Chairman of the association, Mr Mustafa Chike-Obi, disclosed this at its 25th annual general meeting in Lagos during the presentation of the association’s 2021 financial statement which ended on December 31, 2021.

He said, “The total income performance of the association increased by 5.3 per cent in comparison with that of 2020 activities. A surplus of N13.45m was contributed to the accumulated fund.”

The association, limited by guarantee, also announced the retirement of two members of the board, Mrs Onari Duke, a non-executive director of UBA Plc who had served on the board since 2017.

Ms Hadiza Ambursa, a director representing Access Bank Plc also retired.

Chike-Obi stated that it was the desire of the association to ramp up its advocacy drive on behalf of the banks who were members of the association.

This article was originally published on Naija News

The National Bureau of Statistics (NBS) has today disclosed in its monthly report that Nigeria’s inflation rate hit 20.77 % in the month of September 2022.

According to the report, titled ‘inflation rate rose to 20.77% in September 2022, on a year–on–year basis, the rate increased from 20.52 % in August 2022 to 20.77 % in September 2022, as compared to 16.63 %in September 2021.

NBS noted that the inflation rate will continue to remain high this year as a result of the flood in some states, which has destroyed crops and farmlands.

Naija News gathered that the report said the jump in the consumer price index (CPI) was triggered by an increase in food inflation due to higher prices paid by Nigerians to purchase bread and cereals, potatoes, yam, oil, and fat.

It advanced that the food inflation rate in September 2022 was 23.34 % compared with the 19.57 % recorded in September 2021 and 23.12% in August 2022.

The September report stated that the percentage change in the average CPI for the 12-month period ending September 2022 over the average of the CPI for the previous 12-month period was 17.43%, showing a 0.60% increase compared with the 16.83% recorded in September 2021.

According to the NBS urban inflation, on a year-on-year basis, remained at 21.25% last month, as compared to 17.19$ in the same period last year.

Naija News understands that the Bureau observed that the urban inflation rate on a month-on-month basis was 1.46% in September 2022, which is lower than the 1.76% reported in August 2022. The corresponding 12-month average for the urban inflation rate was 17.94%, a rate higher than the 17.41% recorded in September 2021.

It continued that rural inflation rose to 20.32 % in September 2022 compared with 16.08% in September 2021.

The report however stated that on a month-on-month basis, it stood at 1.27%, lower than 1.75% a month earlier and for the 12-month average, the rate was 16.94% in contrast to 16.26% a year earlier.

The report revealed that all items inflation rate on a year-on-year basis was highest in Kogi State, which stood at 23.82%, followed by Rivers State which recorded 23.49% and then Benue State at 22.78%, while Abuja stood at 17.87%, Borno at 18.12%, and Adamawa at 18.42% recorded the slowest rise in headline year-on-year inflation.

September 2022 recorded the highest increases in Jigawa at 2.58%, on a month-on-month basis, with Yobe recording 2.22%, and Benue at 2.05%. While Abuja recorded a negative rate of -0.72%, Sokoto at -0.19% and Adamawa at 0.25% recorded the slowest rise in the month-on-month inflation rate.

In September 2022, food inflation on a year-on-year basis was highest in Kwara at 33.09%, Kogi at 28.46%, and Ebonyi, and Kaduna recording 27.41% and 18.84% respectively. Jigawa stood at 19.20%, while Sokoto recorded the slowest rise in year-on-year food inflation at 19.44 %.

Enugu recorded the highest for September 2022 food inflation with a recorded rate of 2.61%, while Ogun and Oyo had 2.50 % and 2.43 % respectively.

On a month-on-month basis, however, September 2022 food inflation was highest in Enugu at 2.61 per cent, Ogun at 2.50 per cent, and Oyo at 2.43 per cent, while Sokoto at -0.88 per cent, Ondo recorded 0.38% while Niger recorded the slowest rise on month-on-month inflation of 0.62%.

This article was originally published on Naija News

The Minister of Trade and Investment, Otunba Niyi Adebayo, has pushed for the support of non-oil export to boost the economy with an estimated size of $420bn.

Naija News reports that Adebayo during the annual general meeting of the Manufacturers Association of Nigeria Export Group, which was held in Lagos made the request on Thursday.

According to him, it is imperative for the diversification of the Nigerian economy in the present economic realities,

He stressed the need for the nation to move beyond oil and export of raw commodities and build a vibrant manufacturing sector capable of exporting finished goods that could boost the nation’s foreign exchange earnings.

He said, “As a nation, this is the time to build a competitive manufacturing sector to see us through the next 50 years, especially in the light of the African Continental Free Trade Area – one of the most important and strategic international economic agreements ever enacted.

“As the largest economy in Africa, Nigeria’s contribution to the AfCFTA is pivotal to its success. I am pleased at how aggressively MANEG have taken the challenge of making AfCFTA work for Nigeria through the development of Nexportrade. MANEG’S creation of a secure platform that is helping to boost trade relations with African Nations and the launch of the showroom in Lome is truly an innovative step in the right direction. I commend all of those involved.”

The President of the Manufacturers Association of Nigeria, Ahmed Mansur, who was represented by the Director-General of the association, Segun Ajayi-Kadir called on the Federal government to proffer immediate policy redirection to address the numerous barriers confronting manufacturers, especially the exporters.

The Chairman of the Manufacturers Association of Nigeria Export Promotion Group, Ede Dafinone spoke about the struggle exporters are faced with since the pandemic.

Listing the struggles as reduced international demands, coupled with domestic economic challenges such as high and increasing exchange rates, high cost of energy, multiple levies and taxes, port congestion, unending Apapa gridlock, infrastructural deficiencies and smuggling, causing untold constraints on manufacturing operations.

The AGM also featured a keynote presentation by an Associate-Professor at the Pan-Atlantic University, Olalekan Aworinde.

This article was originally published on Naija News

British Prime Minister, Liz Truss, on Friday, fired Kwasi Kwarteng as Chancellor of the Exchequer barely five weeks into office.

According to various media reports, Truss fired the Finance Minister in person after rushing back from international talks in Washington.

The announcement comes amidst the United Kingdom‘s struggle in dealing with the fallout from Kwarteng’s mini-budget, which Truss supported and caused financial turmoil, including a sharp jump in interest rates.

Already, the country is coping with skyrocketing energy expenses as well as a cost-of-living crisis that affects both individuals and businesses.

There was no immediate announcement of his successor or who would become Britain’s fourth Finance Minister this year.

Kwarteng was due to conclude annual meetings of the International Monetary Fund and World Bank in Washington this weekend, after earning a rebuke from IMF chief Kristalina Georgieva on the need for coherent and consistent policies.

A Treasury spokesman confirmed Kwarteng had cut short the trip to continue work on his medium-term fiscal plan due on October 31, after Truss held hurried meetings with her own financial advisors on Thursday in his absence.

Speaking in Washington on Thursday, Kwarteng insisted that his job was safe.

He said: “I’m not going anywhere” 

This article was originally published on Naija News

The International Monetary Fund has warned that the continuous rising benchmark interest rates in Nigeria and other emerging economies are risks to financial stability.

Naija News understands that this was made known in a new report titled “Interest Rate Increases Volatile Markets Signal Rising Financial Stability Risks”.

The global lender noted that central banks who are faced with persistently high inflation will have to accelerate monetary policy tightening as a means to prevent pressures from becoming entrenched.

It pointed out that the major challenges facing the financial system include inflation at multi-decade highs, continuing deterioration of the economic outlooks in many regions, and persistent geopolitical risks.

The report further disclosed that financial circumstances remain tightened as central banks continue to raise interest rates, hence the highly uncertain global environment risks financial stability.

It also pointed to the deteriorating rate and speed with which assets are currently traded at a given price due to the volatile interest rate.

The report partly read: “Financial vulnerabilities are elevated for governments, many with mounting debt, as well as nonbank financial institutions such as insurers, pension funds, hedge funds and mutual funds. Rising rates have added to stresses for entities with stretched balance sheets.

“At the same time, the ease and speed with which assets can be traded at a given price has deteriorated across some key asset classes due to volatile interest rates and asset prices. This poor market liquidity, together with pre-existing vulnerabilities, could amplify any rapid, disorderly repricing of risk, were it to occur in the coming months.”

“Last month, the Monetary Policy Committee of the Central Bank of Nigeria raised the benchmark interest rate from 14 to 15.5 per cent in order to tame the rising inflation rate.”

This article was originally published on Naija News

The World Bank has disclosed that it sanctioned three Nigerians and four Nigerian companies for corruption during its 2022 fiscal year.

Naija News reports that this disclosure was made in the bank’s latest Fiscal Year 2022, which covered July 1, 2021, to June 30, 2022, in the Sanctions System Annual Report.

The seven firms and individuals were found guilty of corruption of necessary investigations by the Washington-based bank.

Out of the four companies, two were sanctioned by the African Development Bank (AfDB), but recognised by other multilateral organizations, including the World Bank under the cross-debarment policy.

A particular Mr Salihu Tijani was blacklisted for three years and two months, while Mr Isah Kantigi was blacklisted for five years.

The third Nigerian, Amin Moussalli, was blacklisted for two years and 10 months, with additional conditional non-debarment (which means the individual is eligible to participate in the bank’s operations) for one year and six months.

The two companies blacklisted by the World Bank were AIM Consultants Limited for two years and two months, and SoftTech IT Solutions and Services Ltd for four years and two months.

The other two firms blacklisted by AfDB but recognised by the World Bank under the cross-debarment policy were Sargittarius Nigeria Limited and Sargittarius Henan Water Conservancy Engineering Ltd for two years and six months each.

The report further disclosed that two Nigerians and two Nigerian firms had been removed from the blacklist after complying with the bank’s conditions.

The Nigerians were Mr. Elie Abou-Ghazaleh and Mr. Fadi Abou-Ghazaleh, while the firms were Abou Ghazaleh Contracting Nigeria Ltd. and Quick Projects Limited.

The World Bank Group President, David Malpass, said that corruption could damage the bank’s efforts in financing projects.

He said, “At a moment when every available resource must be deployed for maximum impact, these ill effects of corruption can be especially damaging. For this reason, it is important to recognize the role of the Bank Group’s sanction system, which plays a significant part in our institution’s efforts to maintain oversight and accountability for the financing we provide.

“The offices that comprise the sanctions system—the Integrity Vice Presidency, the Office of Suspension and Debarment, and the Sanctions Board and its Secretariat—work together to send a clear message: corruption has no place in development.”

He said that the bank debarred or otherwise sanctioned 35 firms and individuals in total.

This article was originally published on Naija News

The Nigerian National Petroleum Company Limited (NNPC Ltd) has said that tanker loads of Premium Motor Spirit better known as petrol or fuel has now arrived in Abuja and other destinations as the flood that had earlier restricted the movement of alot of trucks along the Lokoja highway has resided.

There has been gridlock on the Lokoja highway following a series of flood disasters in Kogi State recently.

The development has caused hundreds of motorists on the route to spend days in reaching their destination, Naija News reports.

Also, there has been panic across the country, especially in the Federal Capital Territory (FCT) Abuja, after reports emerged that there are limited petroleum products at filling stations.

However, the Group Executive Director of NNPC Limited, Yemi Adetunji, gave clarification on the matter yesterday when he featured on Channels Television Programme.

According to Adetunji, in a bid to curtail the issues affecting the delay in delivery of petroleum products to various depots across the country, the Federal Ministry of Works and Housing has intervened in a repair of ten sections of the damaged Bida-Agaei road in Niger State.

“As of yesterday, October 11, 2022, 146 petroleum tanker trucks arrived Niger depot for dispatches into Abuja and its environs.

“Trucks have continued to arrive Niger deport for onward dispatches even as of today. Load delivery to other parts of the country is also continuing with the improved vehicular movement northward,” Adetunji noted.

Speaking further on the live programme, the NNPC director said the Nigerian Mainstream and Downstream Petroleum Regulatory Authority (NMDPRA) and NNPC Limited, have allowed the rerouting of trucks carrying petroleum from Warri and Ogara axis through Port Harcourt and Makurdi into Abuja and other parts of the North.

“NNPC Ltd will like to assure the general public that it has sufficient petroleum products in stock and that there is no need for panic buying. We will also continue to work to ensure an early return to normalcy,” Adetunji assured.

Over 500 Nigerians Killed By Flood Since June 

A recent report has revealed that more than 500 people have lost their lives in Nigeria’s worst floods in a decade.

Naija News reports that the Ministry of Humanitarian Affairs also reported that the torrents of water generated by the heavy rains had left 1,500 injured and 1.4 million affected.

According to the National Emergency Management Agency (NEMA), August and September have been particularly deadly and devastating since the start of the rainy season in June. This bad weather affected 31 of the 36 Nigerian states.

More than 45,000 homes and 70,000 hectares of farmland were also completely destroyed, the ministry’s deputy information director Rhoda Ishaku Iliya said in a statement.

The local meteorological agency (NiMet) revealed that this heavy toll was partly explained by the overflow of several dams inside Nigeria and in its neighbour, Cameroon on the infrastructure of Lagdo.

It also warned that significant rainfall was still expected in the weeks and months to come. The rainy season usually ends in November in the northern states and December in the south.

The scale of destruction and displacement caused by the floods raises fears of food shortages in Africa’s most populous country. In 2012, particularly deadly floods left 363 dead and 2.1 million displaced.

This article was originally published on Naija News

The National Insurance Commission (NAICOM) has said that the gross claims paid by the insurance companies in the country rose by 0.2 percent in the first half of 2022.

The commission announced the development via a ‘Bulletin of the insurance market performance’ report for the first half of 2022 financial period.

The report stated that, “The growth of the gross claims reported was 0.2 per cent during the quarter compared to the corresponding period of 2021. The industry statistics for gross claims in Q2 of 2022 stood at N174.8bn, representing 47.3 per cent of all premiums generated during the period.

“This occasion reflects the professional underwriting capacity of the industry as driven by the intensified regulatory activities of the commission. The net claims paid on the other hand stood at about N148.2bn, signifying an 84.8 per cent of all gross claims reported during the period.”

The report also stated that the life insurance business reported a near perfect point of about 88.9 per cent claims settlement as against the reported claims, while non-life segment stood at about 76.8 per cent.

It maintained that the percentage of incurred claims as against reported mirrored the market retention view during the period.

Motor insurance retained its lead, posting a claims settlement ratio of 92 per cent. Progress was, however, more noticeable in the oil & gas sector with an above 85.7 per cent of claims settlement ratio, an increase of some 42 points compared to its position of 42.8 per cent recorded in the corresponding period of 2021.

Miscellaneous insurance also posted about 61.9 per cent, higher than 44 per cent paid claims ratio, compared to its corresponding period of 2021; while general accident (75 per cent), fire (76.2 per cent) and, aviation & marine (61.9 per cent) followed in that order.

NAICOM also disclosed that the gross premium income in the second quarter of 2022 stood at N369.2.8bn, a notable performance as mapped in Table ,1 portraying the premium contribution by each class of the business.

The sector recorded an increased rate of growth at about 11.9 per cent quarter on quarter with a total asset of about N2.3 trillion.

The industry’s financial position revealed a total of N1.2tn in assets of non-life business while the life business stood at about N1.1tn.

This article was originally published on Naija News

Pensions, gratuities and retirees’ benefits will gulp N854.8bn from the proposed N19.76 trillion budget for the 2023 fiscal year as presented by President Muhammadu Buhari before the National Assembly last Friday, Naija News understands.

Recall that the nation’s leader presented his last budget, the 2023 appropriation bill before the senate at a joint session of the National Assembly in Abuja over the weekend.

From the document presented, it was revealed that the total non-debt recurrent expenditure from January to July 2002 was 3.24tn, of which 2.87tn was for salaries, pensions and overheads.

The federal government also noted that it would spend N20.15tn for the 2023 fiscal year.

In his remark about the budget, a Professor of Capital Market and Chairman of Chartered Institute of Bankers of Nigeria, Abuja Branch, Prof Uche Uwaleke, said, “The early presentation of the 2023 budget proposal is commendable as it ensures the sustainability of the return to the January to December budget cycle.

“It’s equally noteworthy that the Finance Bill will be considered alongside the 2023 Appropriation Bill as well as the fact that the budget of government owned enterprises is integrated to promote transparency.

“I think the oil price benchmark of $70 is conservative in line with budget principles. I also think the oil production benchmark of 1.69mbpd is realistic given the assurance by the President that the NNPC Limited is doing something to curb oil theft and pipeline vandalism.

“It is, however, worrisome that capital expenditure as a proportion of total spending has gone down well below the government target of 30 per cent while debt service at over N6tn is in excess of the amount budgeted for capital expenditure.”

On his part, however, the Chief Executive Officer, Centre for the Promotion of Private Enterprise, Muda Yusuf, said the 2023 federal government budget has further amplified the troubling fiscal outlook for the economy.

Expenditure according to him, has further accelerated amid consistent weak revenue performance.

“We have a budget of N20.51tn naira and revenue projection of N9.73tn naira. This is a deficit of 10.78tn. In all probability, the deficit will be much bigger by year-end because of the track record of revenue under performance over the last couple of years.

“We are also likely to see an acceleration of CBN financing of the fiscal deficit given the revenue performance trajectory. The public debt stock is growing and currently at N42tn,” Yusuf said.

This article was originally published on Naija News

The Deputy President of the Lagos Chamber of Commerce and Industry (LCCI) Gabriel Idahosa, has criticised the Federal Government’s decision to retain fuel subsidy in the 2023 budget.

This is against the backdrop that lawmakers on Friday approved N1.7 trillion for payment of subsidy on Premium Motor Spirit (PMS) popularly known as petrol, as against the proposed N3.6 trillion meant to span till June 2023.

In a chat with The Punch, Idahosa said fuel subsidy should have ended by January this year, therefore it wasn’t expected to be added to the 2023 budget.

He said the government is staring down another difficult race with regard to financing a budget that is far above its expected revenue.

Idahosa however opined that the N1trillion allocated to the Police Service Commission was grossly insufficient and would mean an understaffed police force incapable of addressing the nation’s mounting security crisis.

Also speaking, the Director-General, of the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), Olusola Obadimu, described the budget proposals as unhealthy for the productive sector.

He noted that the Federal Government’s plan to borrow N8.4tn while projecting debt servicing at N6.3tn would translate to merely borrowing to service existing debts.

He said, “It doesn’t look good at all. This is not good for productivity. I think this budget is targeted mainly at the upcoming elections. It is not targeted at tackling our weak infrastructure or creating an enabling environment for businesses. We have to adopt fiscal discipline along the line.”

He said the government have to start cutting their coats according to their clothes, adding that there is an urgent need to look for more ways to start earning foreign exchange.

Obadimu lamented that despite budgeting trillions of naira in previous budgets, the Buhari regime “has nothing to show for it.”

In his own reaction, the Chief Executive Officer of the Centre for the Promotion of Private Enterprises (CPPE,) Dr Muda Yusuf, said the budget had further shown a troubling fiscal outlook for Nigeria.

He observed that the deficit would grow more than what was projected in the budget before the year ends, and that financing from the Central Bank of Nigeria(CBN) could also accelerate.

Yusuf advanced that the 2023 budget has further amplified the troubling fiscal outlook for the economy, as expenditure continues to accelerate amid consistent weak revenue performance.

“We have a budget of N20.51 trillion and a revenue projection of N9.73 trillion. This is a deficit of N10.78 trillion. In all probability, the deficit will be much bigger by year-end because of the track record of revenue under-performance over the last couple of years,” he noted.

Yusuf also explained that there are possibilities to see an acceleration of the CBN financing of the fiscal deficit given the revenue performance trajectory.

He added: “The public debt stock is growing and currently at N42 trillion. With additional new borrowing of N8.8 trillion, the debt profile will be getting close to N50 trillion by May next year.”

This article was originally published on Naija News

Experts have reacted to the presentation of the 2023 Appropriation Bill, titled ‘Budget of Fiscal Sustainability and Transition’ presented before a joint session of the National Assembly by President Muhammadu Buhari yesterday.

The President said in his presentation that fiscal operations of the Federal Government result in a deficit of N10.78tn, which represents 4.78% of the estimated Gross Domestic Product (GDP) above the three per cent threshold set by the Fiscal Responsibility Act 2007.

However, Buhari’s plan to finance the deficit majorly by new borrowings totalling N206.18 billion from privatisation proceeds and N1.77 trillion draw-downs on bilateral/multilateral loans secured for specific development projects/programmes has been described as insensitive and absurd by some stakeholders.

Naija News understands that some financial experts have described the 2023 proposed budget as a ritual, adding that the government’s plan to finance it from borrowing is not only absurd but it will worsen the country’s debt burden.

In a chat with The Punch, an Economist and Professor of Management and Accounting at Leads City University in Ibadan, Godwin Oyedokun, said the Federal Government was callous and insensitive because it’s only borrowing to further its own selfish goals.

He pointed out that it is insensitive on the part of the government to be borrowing at this stage, and that they are borrowing for the next generation to pay since they have less than 9 months left.

According to him, the amount of credit Nigeria has been borrowing has not resulted in much in terms of equal infrastructure development, and borrowings are simply economic extortion.

Oyedokun said borrowing for infrastructural development is not bad but over the years nothing has been achieved with the funds borrowed, the government is borrowing to finance the internal and personal pockets of some people.

Also speaking with the newspaper, an economist and former Vice-Chancellor of the University of Uyo, Prof Akpan Ekpo, said it was dangerous for the country to hope to fund the over N20 trillion budget through borrowing.

He bemoaned how the country’s debts keep increasing and the huge amount of money used to service debts.

Ekpo said, “I can recollect that about 70 %  or so is being used in servicing debts for 2022. That is worrisome. If the government keeps borrowing to fund recurrent expenditures, it is not good for the economy. It will retard growth.”

Borrowings he furthered should be done to fund capital projects as they have long-term multiplier effects.

Ekpo said the government have to stop borrowing to pay salaries or fund expenses, and that it needs to stop else progress would be hindered.

“That is why the government is insisting more on domestic borrowing because when a government intends to borrow from the World Bank or African Development Bank (ADB), it has to show that the money will be utilised for infrastructure, so it is quite worrisome that we are borrowing to finance recurrent expenditure,” he said.

Naija News also learnt the Managing Director (MD) and Chief Executive Officer (CEO) of Taurus Capital, Nnaemeka Obiaraeri, maintained that the proposed budget was one of “poverty perpetration and collective elitist grandstanding and looting.”

He said it makes no sense for the government to propose N20.5tn over the N13tn proposed in the last budget without commensurate growth in revenue.

In his reaction, Associate Professor of Economics and Statistics, University of Benin, Hassan Oaikhenan, was also reported to have said the 2023 budget was already on its way to failing because of its heavy dependence on borrowing.

Oaikhenan said, “The budget, from the look of things, will certainly fail. This is against the background that it will be heavily funded from borrowing. It is just a hollow ritual, which means next to nothing. This will just compound the failure of this administration.”

He added that “since the regime’s inception, the country has been plunged into avoidable debts. A few days ago, we were told that the government is set to borrow another N720bn and the lame-duck Senate has given the express approval.”

Oaikhenan described the release of the appropriation document for the 2023 fiscal year as a “mere hollow ritual” with no direct positive impact on the populace, noting that the budget for them is just an empty ritual.

This article was originally published on Naija News

Members of the Organisation of Petroleum Exporting Countries and their Russia-led allies on Wednesday agreed on a major cut in oil production.

The decision was reached to prop up prices that could bolster sanction-hit Moscow’s coffers and irk Washington.

The price of Brent, the global benchmark for crude, gained $1.62 by rising to $93.4/barrel at at6.23 pm on Wednesday.

Nigeria which is a strong member of OPEC pumps over 1.4 million barrels of crude daily.

However, the figure has been affected due to the activities of vandals and oil thieves in the Niger Delta.

According to Iran’s OPEC Governor, Amir Zamaninia, the 13-nation OPEC cartel and its 10 Russian-led allies agreed to reduce two million barrels per day from November at a meeting in Vienna.

It is the biggest cut since the height of the COVID-19 pandemic in 2020.

The move could turbocharge crude prices, further aggravating inflation which has reached decades-high levels in many countries and is contributing to a global economic slowdown.

It could also give Russia a boost ahead of a European Union ban on most of its crude exports later this year and a bid by the group of seven wealthy democracies to cap the country’s oil prices.

US President Joe Biden personally appealed to Saudi leaders in July to boost production to tame prices which soared following Russia’s invasion of Ukraine earlier this year.

But crude prices have fallen in recent months on concerns over dwindling demand and fears over a possible global recession.

An analyst at trading platform OANDA, Craig Erlam said, “With consumers only just breathing a sigh of relief after being forced to pay record prices at the pump, today’s cut is not going to go down well.”

The energy minister of the United Arab Emirates, Suhail al-Mazrouei, when asked how the United States would react to a cut, he insisted that OPEC was merely a “technical organisation”.

Alexander Novak, the Russian Deputy Prime Minister in charge of energy, who is under US sanctions, remained mum as he arrived for the group’s first in-person meeting at its Vienna headquarters since March 2020.

This article was originally published on Naija News

The Nigeria Liquefied Natural Gas (NLNG) on Thursday questioned a directive earlier issued to the company to pay the sum of N18.4 billion to host communities in Rivers State.

Naija News understands that the National Assembly had earlier directed the firm to release the figures as compensation to some host communities in the oil-rich state.

The directive which was issued on Tuesday demanded that NLNG should settle about 200 families whose farmlands in Bonny, Rivers State, were affected during the acquisition of fields for pipelines’ Rights of Way.

The directive was issued following the consideration and adoption of a report by the Committee on Ethics, Privileges and Public Petitions that investigated a petition by the communities.

The committee Chairman, Senator Patrick Akinyelure, in his report, had said following its incorporation, the NLNG acquired landed properties in the state spanning over 210 kilometres for use as its pipelines Right of Way which ended at the export terminal of the NLNG in Finima, Bonny Local Government of the state.

He said, “There were over 73 communities and over 200 families whose hitherto agrarian source of livelihood was negatively impacted upon by the said acquisition.”

Responding, however, to the directive, NLNG in a statement entitled: ‘RE: Senate directs NLNG to pay host communities N18.4b compensation within two months’ said its firm was carefully evaluating the lawmakers’ resolution and circumstances surrounding it.

The statement signed and made available to newsmen on Wednesday in Port Harcourt by the General Manager, External Relations and Sustainable Development of NLNG, Andy Odeh, read: “The attention of Nigeria LNG Limited (NLNG) has been drawn to a resolution said to have been passed by the Senate, following the consideration of a report by its Committee on Ethics, Privileges and Public Petitions, sequel to a petition relating to compensation for the acquisition of a Right of Way across some communities.

“NLNG is evaluating the resolution and circumstances surrounding it. “NLNG wishes to state that it has always conducted its business responsibly and in accordance with the laws of the Federal Republic of Nigeria, including in this specific matter.”

This article was originally published on Naija News