Business News
FG commissions Made-in-Nigeria vehicles worth N364 billion
The Federal Government has commissioned N364 billion locally-assembled vehicles through collaboration with the NADDC.
The Federal Government has commissioned $1 billion (N364 billion) locally-assembled vehicles through collaboration with the National Automotive Design and Development Council (NADDC).
The disclosure was made by the Minister of Industry, Trade and Investment, Mr Adeniyi Adebayo.
According to Adebayo, the vehicles, which were produced by 17 firms, include pioneers of made-in-Nigeria vehicles such as Coscharis, Nissan, Innoson, Ford and Elizade Motors.
Adebayo made known that the locally-assembled vehicles would be used at the Argungu Motor Rally which is an integral part of the popular festival held in Kebbi annually, the Argungu Annual International Fishing and Cultural Festival. This Argungu Motor Rally is slated to be kicked off by the President Muhammadu Buhari in Abuja.
READ ALSO: Nigerians react as Anambra lawmakers reject Prado SUVs for Innoson SUVs
More details: While revealing the plan of the NADDC to turn the rally into an annual event for the auto industry, the minister acknowledged the growth of the auto industry. He said Nigeria was moving forward in the area of automotive assembly, adding that from zero production level in 2012, the industry had recorded tens of thousands of newly assembled vehicles.
According to him, with the inauguration of the 10-year Nigerian Automotive Industry Development Plan (NAIDP 2013-2023) in 2013, about 62 companies have been registered to assemble vehicles.
“The vehicles and brands for unveiling are a testament to the zeal and commitment of the automotive industrial subsector to the present government’s efforts towards diversification of the non-oil sector of the economy. The role of the NADDC in reviving and sustaining the automotive sector has greatly helped in stimulating growth and development in the Nigerian automotive industry.’’
Also commenting on the commissioning was Minister of State for Industry, Trade and investment, Amb. Mariam Katagum, who charged the auto companies to do more in the area of local content and have faith in the Federal Government’s commitment to economic diversification.
READ ALSO: FG receives N185m from Islamic Bank to support textile, agric sectors
Katagum, who was represented by the ministry’s Permanent Secretary, Dr Nasir Gwarzo, said that the unveiling of the vehicles that were also slated to take part in the Argungu Motor Rally showed what the Nigerian automotive industry could offer.
Energy
Electricity tariff increase is suspended for 2 weeks
The FG and the Nigerien Labour Unions have agreed to suspend the electricity tariff increase for a period of two weeks.
The Federal Government and the Nigerien Labour Unions have agreed to suspend the electricity tariff increase for a period of two weeks. This was part of the agreement reached between Labour and the Government as they deliberated to avert a nationwide strike that would have grounded an already deteriorating economy.
While the strike was over two major issues, an increase in electricity charges and fuel price respectively, the decision to call off the strike was based on the suspension of the electricity bills. The following terms of reference underpinned the agreement between Labour and the Government.
Terms of reference for suspension of electricity increase for 2 weeks.
Terms of reference “The Terms of Reference (ToR) are as follows: To examine the justification for the new policy on cost-reflective Electricity Tariff adjustments. “
- Both parties are to examine the justification for the new policy on cost-reflective tariff adjustment
- To look at the different Electricity Distribution Company (DISCOs) and their different electricity tariff vis-à-vis NERC order and mandate.
- Examine and advise government on the issues that have hindered the deployment of the six million meters.
- To look into the NERC Act under review with a view to expanding its representation to include organized labour.
- The Technical sub-committee is to submit its report within two weeks.
- During the two weeks, the DISCOs shall suspend the application of the cost-reflective electricity tariff adjustments. “The meeting also resolved that the following issues of concern to Labour should be treated as stand alone items:
- The 40% stake of government in the DISCO and the stake of workers to be reflected in the composition of the DISCOs Boards.
- An all-inclusive and independent review of the power sector operations as provided in the privatization MOU to be undertaken before the end of the year 2020, with Labour represented.
- That going forward, the moribund National Labour Advisory Council, NLAC, be inaugurated before the end of the year 2020 to institutionalize the process of tripartism and socio dialogue on socio-economic and major labour matters to forestall crisis.
What this means: The decision reached between the government and labour means the service reflective tariff regime which started on September 1 2020 is effectively suspended. Customers are therefore no longer required to pay the service reflective tariffs and will revert to the previous MYTO tariffs of 2015.
- By looking at the “different Electricity Distribution Company (DISCOs) and their different electricity tariff vis-à-vis NERC order and mandate” it appears labour might be looking to recalibrating the tariffs for some Discos.
- According to documents on the tariff order published by the NERC, some Discos have tariffs for residential customers that are as high as N62/kWh while it’s just under N54 for others.
- Labour could also get involved in determining the veracity of the tariff bands that determines which customers pay what as electricity tariffs.
Business
Just-in: NLC, TUC suspend nationwide strike
Hike in electricity tariff to be suspended for 2 weeks, while new pump price of petrol remain unchanged.
The Nigerian Labour Congress (NLC) and the Trade Union Congress (TUC) have suspended the planned nationwide strike and protest that was to commence on Monday, September 28, 2020, over the recent hike in electricity tariff and petrol pump price.
This follows the agreement reached between the Federal Government and the organized labour during the meeting held by both parties which started on Sunday night and dragged on till the early hours of Monday morning.
The disclosure was made by the Minister of State for Labour and Employment, Festus Keyamo, through a tweet post on his twitter handle.
In the agreement between the Federal Government and organized labour, the hike in electricity tariff is to be suspended for a period of 2 weeks, while the new pump price of petrol is to remain unchanged.
According to the agreement, which was seen by Nairametrics, both parties agreed to set up a technical committee on Electricity Tariff reforms, comprising Ministries, Agencies, Departments, NLC and TUC, which will work for a duration of 2 weeks with effect from Monday, September 28, 2020, to examine the justification of the new policy in view of the need for the validation of the basis for the new cost-reflective tariff.
This is due to the conflicting field reports which appear different from the data presented to justify the new policy by NERC, metering deployment, challenges, timelines for massive rollout.
The technical committee is to be headed by the Minister of State for Labour and Labour, Festus Keyamo.
Other members of the committee include the Minister of State Power, Godwin Jedy-Agba, Executive Chairman, National Electricity Regulatory Commission (NERC), James Momoh, Special Assistant to the President on Infrastructure, Ahmad Zakari as the Secretary.
Also in the committee are Onoho’Omhen Ebhohimhen, Joe Ajaero (NLC), Chris Okonkwo (TUC) and a representative of electricity distribution companies.
The terms of reference for the technical committee include;
- To examine the justification for the new policy on cost-reflective electricity tariff adjustments.
- To look at the different Electricity Distribution Companies (DISCOs) and their different electricity vis-à-vis NERC order and mandate.
- Examine and advice government on the issues that have hindered the deployment of the 6 million meters.
- To look into the NERC act under review with a view to expanding its representation to include organized labour.
FG & LABOUR reach agreement at 2:53am. Deregulation to stay as Govt rolls out palliatives for labour (details in 2 weeks); Electricity tariffs suspended by Govt for 2 weeks with a joint Committee headed by @fkeyamo to examine the justification for the new policy. Strike suspended pic.twitter.com/9tOTlJ9o1l
— Festus Keyamo, SAN (@fkeyamo) September 28, 2020
Coronavirus
COVID-19 Update in Nigeria
On the 27th of September 2020, 126 new confirmed cases and 2 deaths were recorded in Nigeria
The spread of novel Corona Virus Disease (COVID-19) in Nigeria continues to record increases as the latest statistics provided by the Nigeria Centre for Disease Control reveal Nigeria now has 58,324 confirmed cases.
On the 27th of September 2020, 126 new confirmed cases and 2 deaths were recorded in Nigeria, having carried out a total daily test of 3,011 samples across the country.
To date, 58,324 cases have been confirmed, 49,794 cases have been discharged and 1,108 deaths have been recorded in 36 states and the Federal Capital Territory. A total of 505,556 tests have been carried out as of September 27th, 2020 compared to 502,545 tests a day earlier.
COVID-19 Case Updates- 27th September 2020,
- Total Number of Cases – 58,324
- Total Number Discharged – 49,794
- Total Deaths – 1,108
- Total Tests Carried out – 505,556
According to the NCDC, the 126 new cases were reported from 12 states- FCT (30), Lagos (24), Rivers (23), Ogun (13), Katsina (9), Plateau (9), Ondo (6), Kaduna (4), Kwara (4), Imo (2), Bauchi (1), Edo (1).
Meanwhile, the latest numbers bring Lagos state total confirmed cases to 19,239, followed by Abuja (5,674), Plateau (3,388), Oyo (3,254), Edo (2,624), Kaduna (2,397), Rivers (2,347), Ogun (1,836), Delta (1,802), Kano (1,737), Ondo (1,631), Enugu (1,289), Ebonyi (1,040), Kwara (1,032), Abia (891), Gombe (864). Katsina (857), Osun (827), Borno (741), and Bauchi (698).
Imo State has recorded 568 cases, Benue (481), Nasarawa (449), Bayelsa (398), Jigawa (325), Ekiti (321), Akwa Ibom (288), Niger (259), Adamawa (237), Anambra (234), Sokoto (162), Taraba (95), Kebbi (93), Cross River (87), Zamfara (78), Yobe (76), while Kogi state has recorded 5 cases only.
READ ALSO: COVID-19: Western diplomats warn of disease explosion, poor handling by government
Lock Down and Curfew
In a move to combat the spread of the pandemic disease, President Muhammadu Buhari directed the cessation of all movements in Lagos and the FCT for an initial period of 14 days, which took effect from 11 pm on Monday, 30th March 2020.
The movement restriction, which was extended by another two-weeks period, has been partially put on hold with some businesses commencing operations from May 4. On April 27th, 2020, Nigeria’s President, Muhammadu Buhari declared an overnight curfew from 8 pm to 6 am across the country, as part of new measures to contain the spread of the COVID-19. This comes along with the phased and gradual easing of lockdown measures in FCT, Lagos, and Ogun States, which took effect from Saturday, 2nd May 2020, at 9 am.
On Monday, 29th June 2020 the federal government extended the second phase of the eased lockdown by 4 weeks and approved interstate movement outside curfew hours with effect from July 1, 2020. Also, on Monday 27th July 2020, the federal government extended the second phase of eased lockdown by an additional one week.
On Thursday, 6th August 2020 the federal government through the secretary to the Government of the Federation (SGF) and Chairman of the Presidential Task Force (PTF) on COVID-19 announced the extension of the second phase of eased lockdown by another four (4) weeks.
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Electricity tariff increase is suspended for 2 weeks
Just-in: NLC, TUC suspend nationwide strike
COVID-19 Update in Nigeria
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Speaker Gbajabiamila asks NLC to suspend strike, offers palliatives
COVID-19 Update in Nigeria
PenCom recovers N17.51billion from defaulting employers, imposes penalties
Nigerian fintech companies raised $600 million in five years – McKinsey Report
Speaker Gbajabiamila asks NLC to suspend strike, offers palliatives
FG discloses how the problem of the power sector was created
Anonymous
March 10, 2020 at 12:51 pm
We should be commissioning electric vehicle lines!
Mr.Auto
March 11, 2020 at 6:28 am
As an Automotive engineer, i can inform you guys though this seems like great news for Nigeria, in actual fact it isn’t, I’ll explain below.
1. In advanced high tech industries say Germany a finished car is made by 1000 to 2000 suppliers . OEM->1st tier->2nd tier->3rd tier and in some cases even 4th tier suppliers this create a supply chain of various parts and component manufacturers, thereby creating a viable strong manufacturing economy with a very good know how. This is not the case in Nigeria most of the components used by INNOSON and others are imported from China.
2. Secondly, my explanation of 1 above also shows how the government is digging a hole in it’s foreign reserves. Production and quality of these vehicles aren’t trusted by the Nigerians therefor the average Nigerian won’t invest in made in Nigerian cars at least not yet. Parts to make those vehicles are imported in USD or RMB exerting more pressure on the Naira leading to devaluation. Devaluation leads to an upset public. I could go on for days on how a lack of clear oversight continues to kill the Nigerian economy even more than corruption does, but i won’t instead i will propose a realistic solution as item 3 below.
3. Such monetary support should be invested in proper educational institutions of which we don’t have 1 and developing SMEs let them grow organically. The government can focus on sector by sector: take the automotive sector(Industry) as an example, Simple mechanical components like gear manufacturing should be developed by SMEs with serious backing of the government. Actuators are also a good parts that should be produced locally. This is the route to follow if we are to ever realistically produced made in Nigeria cars that people will actually buy. Plus all my time in Nigeria i never saw or heard an advert for INNOSON vehicles this is very worrying and implies the company strategy is flawed or it dependency on governmental aid is appalling.
Y D
July 1, 2020 at 11:23 pm
Well said Mr. Auto
However, as much as I can relate to your argument, I also believe that the collective effort of the auto companies involved and the FG support is a right move in achieving the growth we both earnestly desire for the industry.