Business News
Here are reasons Rewane says Nigerians’ incomes will shrink in 2020
Bismarck Rewane has warned that the income and purchasing power of Nigerians would be hit by the policies of President Muhammadu Buhari.
Bismarck Rewane is not only the Chief Executive Officer of Financial Derivatives Company Limited, but also a member of the Federal Government’s Economic Advisory Council. So, when he talks, it definitely holds water.
He has warned that the income and purchasing power of Nigerians would be hit in 2020. He attributed his projection to the policies of President Muhammadu Buhari’s administration.
Rewane said the proposed increase of Value Added Tax (VAT), electricity tariff and return of tollgates would negatively impact on the income of Nigerians.
Nairametrics had previously reported that the Federal Government proposed a 7.5% VAT increase. The increase is projected to discomfort a large percentage of Nigerians as the prices of goods and services will jump.
The Minister of Power, Saleh Mamman, had also said there’s a need to increase the electricity tariff, which might make Nigerians start paying more on electricity supply. It was stated that the hike was inevitable due to the rising cost of electricity generation in Nigeria.
Rewane’s concern: The financial expert explained that the economic situation in 2020 would be difficult to ascertain or estimate at the global economy and domestic markets.
He said, “For Nigeria, consumers will groan about the hike in VAT, the restoration of tollgates and cost-reflective electricity tariffs.
“The good news is that the payment of the new minimum wage and the arrears would offer some succour to workers. Investors would also keep a close watch on the stock market and the impact of government policies on their portfolio strategy.”
[READ MORE: We are still studying ‘Eco’ adoption by ECOWAS members – FG)
It is important to note that the Senate is also seeking a legislative action to impose a 9% tax on Communication Services. The communication service tax shall be levied on Electronic Communication Services like Voice Calls; SMS; MMS; Data usage both from Telecommunication Services Providers and Internet Service as well as Pay per View TV Stations.
On monetary policy outlook: Rewane said the CBN would maintain its stance on the Monetary Policy Rate due to the rising inflation and depleting external reserves. But he said the CBN could cut interest rate if “inflation enters a sustained downward trend and falls below the targeted upper limit of 9%.”
He further stated that at the expense of external reserves, the CBN would continue in its aggressive intervention at the foreign exchange market.
Rewane also stated that CBN is likely to impose more forex restrictions rather than devalue the naira in the face of growing external imbalances, adding that unorthodox measures will be applied by CBN to encourage lending as economic growth becomes a stronger consideration.
Meanwhile, FDC analysts said the absence of forex interventions by the CBN was behind the continuous depreciation of the naira which might result into higher prices.
“Further depreciation of the naira is likely to occur in light of depleting external reserves, which could limit the CBN’s ability to intervene in the forex market,” he said.
Appointments
ExxonMobil Nigeria gets new Chairman and Managing Director
The disclosure was made in a statement by the Manager Media and Communications.
Oil exploration and production giant, ExxonMobil, has announced the appointment of Richard Laing, as the new Chairman and Managing Director of its 3 affiliate firms in Nigeria with effect from August 1, 2020.
The disclosure was made in a statement by the Manager Media and Communications, ExxonMobil, Mr. Ogechukwu Udeagha, on Saturday, August 8, 2020, in Eket, Akwa Ibom State.
The 3 affiliate oil firms of ExxonMobil include Mobil Producing Nigeria Unlimited, Esso Exploration and Production Nigeria Limited and Esso Exploration and Production Nigeria (Offshore East).
According to the statement from ExxonMobil, Richard Laing was appointed to replace Paul McGrath, who has been appointed Vice President, Global Projects for ExxonMobil in Houston after spending more than 3 years in Nigeria.
The statement from Ogechukwu Udeagha reads, “Prior to his appointment, Laing was executive director of oil and gas production and related support groups for all of the ExxonMobil affiliates in Nigeria.’’
”Laing joined ExxonMobil in 1989 and has held variety of engineering, planning, safety and managerial positions in upstream and downstream operations while working in the U.K, Qatar, U.S. and Nigeria,” he added.
Udeagha said that Laing holds a bachelor’s degree in Mining and Petroleum Engineering from the University of Strathclyde, Glasgow and Master’s in Petroleum Engineering from Heriot-Watt University, Edinburgh.
In his reaction, Liang said; “It is a privilege to lead the ExxonMobil team in Nigeria and build on the work that Paul McGrath had done over the last three years.
“I look forward to the work that lies ahead and continuing the company’s outstanding relationships.”
Coronavirus
Breaking: COVID-19: Buruji Kashamu is dead
Kashamu’s demise was announced by a former lawmaker-friend and party member on Twitter.
Senator Buruji Kashamu has died on Saturday.
Buruji, who was a member of the 8th Senate, died of COVID-19 at the First Cardiology Consultants, Lagos.
This was disclosed by Senator Ben Murray-Bruce via his Twitter handle.
I have just lost my good friend of forever to #COVID19. Until his death, Sen. Buruji Kashamu and I were inseparable. He died today at First Cardiology Consultants, in Lagos. May his gentle soul rest in peace. I pray his family and loved ones the fortitude to bear this heavy loss. pic.twitter.com/OJGIt0VK3n
— Ben Murray-Bruce (@benmurraybruce) August 8, 2020
Details soon …
Business
NUPENG gives reasons it directed petroleum tanker drivers to embark on strike in Lagos
NUPENG said its members are being consistently extorted, intimidated, harassed and victimized by different groups.
The National leadership of the Nigerian Union of Petroleum and Natural Gas Workers (NUPENG) has disclosed the 3 major reasons why it directed Petroleum Tanker Drivers (PTD) to withdraw their services from Lagos.
NUPENG revealed that the 3 major challenges that were being faced by Petroleum Tanker Drivers include; Extortion of money from the petroleum tanker drivers by various security agents, the menace of containerized trucks at Apapa, Kirikiri and Beach Land axis of Lagos State and the harassment and extortion by area boys and area godfathers.
This was contained in the press statement that was issued by NUPENG on Friday, August 7, 2020, and signed by its National President, Comrade Williams Akporeha, and its General Secretary, Comrade Olawale Afolabi.
While directing petroleum tanker drivers to withdraw its services, the national leadership of NUPENG said it cannot afford to fold its arms while its members are being consistently and continually extorted, intimidated, harassed and victimized by different groups and segments in Lagos.
On the extortion of money from Petroleum Tanker Drivers by various security agents; NUPENG said that it is really disturbing that security agents who are expected to ensure free-flow of traffic and protection of road users now use their uniforms and arms to intimidate, harass and extort money from Petroleum Tanker Drivers. The union pointed out that this reprehensible conduct by the security agents is taking serious tolls on the psychological, emotional and financial state of Petroleum Tanker Drivers and their capacity to effectively and efficiently deliver services to the nation.
On the menace of Containerized Trucks at Apapa, Kirikiri and Beach Land axis of Lagos State and collusion of government officials hindering Petroleum Tankers from loading activities at depots and tank farms;
The union said that the persistent traffic gridlock and indiscriminate parking of containerized trucks on major Lagos roads and bridges leading to Apapa port, Kirikiri, Beach Land, Satellite Town, Ijegun, are another major setbacks bedevilling the smooth running of the operations of Petroleum Tanker Drivers in Lagos State.
NUPENG disclosed that as at today, MRS depot has been held captive for more than 3 months from discharging products to Petroleum Tanker Drivers despite heavy availability of Petroleum products stockpiled in their tank farm facilities.
They explained that for safety reasons, Petroleum Tanker Drivers cannot continue to struggle with these containerized trucks in these corridors considering the inflammable nature of the products their members carry and cannot afford to undermine safety standards, procedures and protocols in the course of rendering their services.
Some of the locations faced with this situation include Oshodi/Apapa Expressway, Ojuelegba Bridge, Iponri, Constain roads, Ikorodu road through Funsho Williams Avenue (formerly Western Avenue) to Ijora inward Apapa and Oshodi-Apapa Expressway through Mile 2 to Berger Yard inward Tincan Island. These locations have been overwhelmed with indiscriminate parking of these articulated vehicles, aggravating the gridlock faced by Petroleum Tanker Drivers that ply the roads daily to lift products.
On the harassment and extortion by Area Boys and Area god-fathers; The union said that it was really worried that Lagos State which is known to be a megacity and centre of excellence has now become a safe haven for area boys and area god-fathers who now see Petroleum Tanker Drivers as soft targets, extorting money from them on a daily basis, assaulting them and vandalizing their trucks in some instances, especially when some of the Tanker Drivers show restraints in paying them illegal fees and levies.
They said that the Petroleum Tanker Drivers (PTD) now battle with both Area Boys and Area God-fathers amidst the deplorable state of the roads in Lagos State, and this is really causing PTD lots of havoc on a daily basis.
The union pointed out that a distance of just about 10 kilometres, now takes 7 to 8 hours of manoeuvres by petrol tankers, many of which break down in the process, upturning their contents, killing PTD members and endangering the lives of several other Nigerians who traverse the roads.
They revealed that Tanker Drivers whose activities cut across Oguntedo, old Ojo road, Ijegun-Egba, Abule Ado and its environs in Satellite town, Oriade Local government Area, and Apapa corridor of Lagos state have continued to work in fears, following incessant attacks by members of various notorious groups who have developed a penchant for extorting money forcefully from Tanker Drivers.
They are known for operating unchallenged and freely around Apapa, Kirikiri, Mile 2, Maza-Maza and Abule-Ado, near Trade Fair flank and so on.
NUPENG said that they decided to embark on the indefinite strike after consultations with the different leadership organs of the union and stakeholders in the oil and gas industry.
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NUPENG gives reasons it directed petroleum tanker drivers to embark on strike in Lagos
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Anonymous
January 4, 2020 at 4:17 pm
Is he not the same man that says he won’t accept any offer from PMB because there is no spark among his economy team? On morning digest with Jimi Disu on Radiotalk 91.3fm. But now he’s part of economy advisory committee.