Business News
Nigerians are enraged as lawmakers reject Innoson cars for latest Toyota Camry
Many Nigerians have taken to Twitter to express their displeasure over news that members of the House of Rep have chosen foreign cars over local carmakers like Innoson.
Many Nigerians have taken to Twitter to express their displeasure over news that members of Nigeria’s House of Representatives have chosen to buy foreign cars as utility vehicles, after rejecting an initial proposal to patronise local carmakers like Innoson.
The lawmakers resolved to purchase some 400 units of Toyota Camry 2020 model instead. Note that the exotic cars cost between N9 million and N12 million, depending on the variants. These price ranges exclude the cost of shipping cars to Nigeria.
Innoson motors
One of the lawmakers, who spoke to The Punch Newspaper secretly, described how they felt like the person who suggested Innoson Vehicles was simply being sarcastic.
“It is Toyota Camry 2020. Manga will supply 300 of the vehicles. The person who supplied the Senate will supply the remaining 100. Someone suggested Innoson. I feel he was being sarcastic. He is from Anambra.”
Already, about 14 Toyota Land Cruiser Prado Jeeps have reportedly been shared among presiding and principal officers, including the Chairmen of some House committees. The new 400 orders will be shared among the lawmakers. Some top management staff of the Nigerian House of Representatives also stand a chance to benefit.
[READ MORE: Nigerians react as 7.5% VAT increase affects phone calls, SMS)
In the meantime, Nigerians are enraged about this development. One Twitter user recalled how the government closed the borders because they want Nigerians to patronise made-in-Nigeria products. He then wondered why lawmakers want to disregard Innosson to patronise foreign car brands.
https://twitter.com/Eni_akanda/status/1229695088432963584
Akoke Alabi expressed a similar opinion, stressing that the move by the federal lawmakers is a huge letdown to the Nigerian people. According to her, foreigners are not buying Nigerian cars and they might never do. Therefore, it behooves Nigerians to do the right thing by buying Nigerian cars. If lawmakers cannot do this, then who will?
https://twitter.com/LagosDriver/status/1229698606233464832
But not everybody is in favour of Innoson Vehicles. Success Adams claimed that the brand is simply overvalued and overrated, which is possibly why it is often overlooked a lot by Nigerians.
Truth be said, Innoson is over valued and over rated. I trust Nigerians, we will buy if their prices are not outrageous.
Look at KIA motors when the came to Nigeria, you could buy a brand new car for 1m or lesser. I guess you can't get a KIA car at that 1m range now.
*Thread*
— Success Adams (@12SAdams) February 18, 2020
Coronavirus
Lagos to open churches, mosques from June 19, limits gatherings to 40% capacity
Religious bodies to open at a maximum of 40% of their capacity and we’ll be working with them as being expected by the Lagos State Safety Commission.
Lagos State government says religious gatherings would be allowed to reopen on June 21, 2020. This was disclosed by the State Governor, Babajide Sanwo-Olu on Thursday during a press briefing at Government House, Marina.
According to the Governor, mosques are to reopen from June 19 while churches are to begin services from June 21 and only Friday and Sunday services should be held for now, as other regular services, including night vigils, must be put on hold.
He said, “There will now be restricted openings of religious houses based on compliance that we have seen and reviewed with the Safety Commission.
“From 14 days time, precisely on the 19th of June for our Muslim worshippers and from the 21st of June for our Christian worshippers, we will be allowing all of our religious bodies to open at a maximum of 40% of their capacity and we’ll be working with them as being expected by the Lagos State Safety Commission.
“But we know that these places of worship have different sizes but even if your 40% capacity is really so large, you cannot have beyond 500 worshippers at once, and keeping that maximum 40% capacity is really important.
“We will be encouraging people to have more than one service and ensure that they keep their premises clean, disinfect before another round of worship can take place.
“We will also be advising that there should only be mandatory Fridays and Sunday services. All other night vigils and services must be put on hold for now until we review our current situation.
Sanwo-Olu added that the state will also be advising that persons below the age of 15 because of how well they walk around should be excused from the places of worship and citizens that are above the age of 65 should not be allowed into these places of worship.
Coronavirus
FG may lift ban on interstate movement on June 21
Interstate movement may resume on June 21.
The Federal Government may lift the ban placed on interstate movements on June 21, 2020.
This was disclosed by special adviser to President Muhammadu Buhari on new media, Bashir Ahmad on Thursday via his Twitter handle.
He stated, “Interstate movement may resume on June 21, the National Coordinator of the Presidential Task Force on COVID-19, Dr Dani Aliyu, gave the hint recently, as domestic flights expected to resume on June 21.”
READ ALSO: U.S dollar gains, America sanctions Chinese Airlines from flying into the U.S.
Interstate movement may resume on June 21, the National Coordinator of the Presidential Task Force on COVID-19, Dr. Sani Aliyu, gave the hint recently, as domestic flights expected to also resume on June 21.
— Bashir Ahmad (@BashirAhmaad) June 4, 2020
Meanwhile, the FG last Monday, June 1, 2020, announced a cautious advance into the second phase of the national response to COVID-19. As part of the measure in the new phase, the FG has announced the full reopening of the financial sector.
This was announced by the national coordinator of the presidential task force on COVID-19, Dr Aliyu Sani. He said that the banks will now be allowed to operate at normal working hours five days a week as against the restricted time of 2 or 3 pm that was announced during the first phase of the easing of lockdown.
READ ALSO: Osinbajo sets up committee on reopening of Nigerian economy, suspends loan deductions for states
The Presidential Task Force also gave the green light to hotels to reopen but must do so based on the guidelines rolled out by the National Centre for Disease Control (NCDC). They are to maintain non-pharmaceuticals intervention. However, gyms, cinemas, parks, nightclubs and bars are to still remain closed until further evaluation.
The restaurants, other than those in hotels must remain closed to eat-ins but are allowed to prioritize and continue to practice the takeaway measure that has been in place since the first phase.
Business News
The conundrum in the retail pricing of PMS
Considering the landing cost of petrol is largely influenced by the prices of crude oil in the international market, we think prospects of continued recovery in crude oil prices is likely to put upward pressure on the cost of importing petrol.
The decision of the Petroleum Products Pricing Regulatory Agency (PPPRA) to reduce the pump price of Premium Motor Spirit (PMS), also known as petrol, to N121.50 per litre from N123.50 per litre has been met with stiff resistance from oil marketing companies (OMCs). The Independent Petroleum Marketers Association of Nigeria (IPMAN) have also stated that it impossible for its members to sell petrol at the new price floor of N121.5 per litre.
We recall that on 18 March 2020, the Federal Government (FG) reduced the retail price of Premium Motor Spirit (PMS) by c.14% to N125/litre from N145/litre, following the global pandemic which led to an unprecedented decline in oil prices and by extension a reduction in the landing cost of petrol. Subsequently, the FG announced a further reduction to N123.50 which took effect on April 1, 2020. Earlier this month, the FG directed a reduction in the pump price of Premium Motor Spirit (PMS) for the third time to N121.50 per litre. We note that the adjustments in the retail price is in line with the directive from PPPRA on a monthly review of the pump price, depending on prevailing market realities.
READ MORE: The good, bad and ugly of low oil prices for Nigeria
In our view, considering the landing cost of petrol is largely influenced by the prices of crude oil in the international market, we think prospects of continued recovery in crude oil prices is likely to put upward pressure on the cost of importing petrol. With the gradual relaxation of lockdown measures by countries who are starting to reopen their economies alongside the historic production cuts of OPEC+ which took effect last month (a 9.7mb/d oil production cut for May and June), we think the risks to oil prices are tilted to the upside in the near term.
Since hitting a two-decade low of US$19.33 on 21 April when the retail price of petrol was pegged at N123.50, brent crude prices have gained c.105% to close at US$39.54 on 3 June. Against this backdrop, we expect that the retail price of petrol should rather be adjusted upwards to reflect current market realities. The current situation appears no different from historical trends where the FG becomes reluctant to effect an upward adjustment in the retail price of petrol during periods of rising crude prices. This has often resulted in the renewed payments of the age-long fuel subsidy. We also think oil marketing companies (OMCs) who have only recently begun to import petrol alongside the Nigerian National Petroleum Corporation (NNPC) due to more favourable pricing could halt importation once again if domestic retail prices become unfavourable.
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