In the wake of the Coronavirus pandemic, an agency of the United Nations (UN), International Labour Organization (ILO) has warned that the world should prepare for a rise in unemployment, as the evolving crisis could leave up to 25 million people jobless or underemployed.
The UN agency’s study suggested a “significant rise in unemployment and underemployment in the wake of the virus” as more people would lose their jobs and some would end up with ‘dramatically lower incomes’.
In a statement, ILO warned that the economic and labour crisis triggered by the spread of the new coronavirus, which has now infected over 200,000 people and killed more than 8,000 people worldwide, would have “far-reaching impacts on labour market outcomes.
“This is no longer only a global health crisis, it is also a major labour market and economic crisis that is having a huge impact on people,” ILO boss, Guy Ryder said in a statement.
According to him, the fresh studies considered different scenarios including a best-case scenario which pictures quick government intervention and high level of diplomatic coordination, and the best scenario showed a minimum of 5.3 million people rendered jobless by the crisis.
On the worse end, the crisis will see 24.7 million people become jobless, on top of the 188 million registered as unemployed in 2019.
The ILO warned that, “Underemployment is also expected to increase on a large scale, as the economic consequences of the virus outbreak translate into reductions in working hours and wages.”
According to the study, those engaged in self-employment will also experience a drastic drop in access to work, due to restrictions of movement. This could translate to large income losses for workers, “between $860 billion and $3.4 trillion by the end of 2020”.
“This will translate into falls in consumption of goods and services, in turn affecting the prospects for businesses and economies.”
The number of people, who live in poverty despite holding one or more jobs, will also increase significantly, the study said, estimating that between 8.8 and 35 million more people will be added to the ranks of the working poor.
It observed also that the decline in economic activities would devastate workers close to or below the poverty line, putting even more strain on their incomes.
The ILO called for urgent, large-scale and coordinated measures to protect workers in the workplace, stimulate the economy and employment and support jobs and income, including through social protection, paid leave and other subsidies.
The agency pointed out that some groups will be disproportionately impacted by the jobs crisis, including youth, older workers, women and migrants, in a way that could increase already soaring inequality, and the world needs the kind of leadership that would resolve these issues before they happen.
Power: Nigeria records transmission peak of 5,459.50MW – TCN
TCN has announced that it hit a peak transmission of 5,459.50MW on the 28th, October 2020.
The Transmission Company of Nigeria (TCN) announced that it hit a peak transmission of 5,459.50MW on the 28th, October 2020.
This was disclosed on Thursday in a statement by Ms Ndidi Mbah, General Manager, Public Affairs, TCN.
Good Job from the Men and Women of the Transmission Company of Nigeria and everyone within the Power Sector.
— Engr. Sale Mamman (@EngrSMamman) October 29, 2020
She said Nigeria hit the milestone on October 28th and surpassed the earlier record of 5,420.30MW achieved on August 18.
What you should know
Nairametrics reported that the Minister of Power, Engineer Sale Mamman, disclosed that Nigeria’s installed grid power generation capacity has grown from 8,000MW to 13,000MW under the leadership of President Muhammadu Buhari.
“The new peak surpasses the 5,420.30MW achieved on Aug. 18 by 39.20MW,” Ms Mbah said.
The Acting Managing Director, Mr Sule Ahmed Abdulaziz, commended all the players in the power sector value chain for the feat.
He attributed the gradual but steady improvement in the quantum of power delivery to collaboration by the sector players, as well as, the unbridled effort by the Federal Government – through the Ministry of Power – in setting the right environment for seamless operations.
The Acting Managing Director said the company will continue workings towards improved power transmission across the nation.
Nairametrics reported in August that the Federal Government of Nigeria revealed that the Siemens $2 billion power deal, under the Presidential Power Initiative (PPI) will save the nation over $1 billion annually.
Structure of the PPI funding:
- 85% from a consortium of banks guaranteed by the German government through credit insurance firm, Euler Hermes.
- 15% of the FG’s counterpart funding.
- 2–3 years moratorium.
- 10–12 years repayment at concessionary interest rates.
CBN grants Mortgage Refinancing Companies approval to refinance Non-member banks
The CBN has expanded access to mortgage financing by removing restrictions on refinancing mortgages earlier imposed.
The Central Bank of Nigeria (CBN), has granted approval to Mortgage Refinancing Companies (MRC), to re-finance non-member banks.
This is contained in a circular referenced FPR/DIR/GEN/CIR/07/056 and signed by Ibrahim Tukur, the Director of Financial Policy and Regulation Department, CBN.
The circular improved on the earlier provisions contained in section 126.96.36.199 which states that “A mortgage refinance company (MRC) shall not, without the prior approval of the CBN, extend total outstanding credit to any single borrower, which is equal to or more than twenty times the value of the borrower’s shares with the MRC or 25 percent of its shareholders’ funds unimpaired by losses.”
What this means
Based on the provisions contained in the latest circular, MRCs are now free and legally permitted to refinance the qualifying mortgages of banks and all other non-members ( that do not hold equity), subject to meeting all other relevant requirements specified in the framework.
In a nutshell, the restriction on non-member mortgage lenders from refinancing their mortgages with MRCs has been removed.
Why this matters
Prior to the provisions contained in the latest circular, CBN had expressed fears that provisions of section 188.8.131.52 negatively impacts the mortgages sub-sector, as it constrains the MRCS from refinancing the mortgages of non-shareholder banks. Therefore, the new order will help to remove the restrictions already highlighted.
In lieu of this, the latest circular stated that the provision of section 7.3.1 5 is hereby revised to “the MRC shall not, without prior approval of the CBN, extend total outstanding credit to any single borrower, which is equal to or more than 25 percent of its shareholders’ funds unimpaired by losses,” the circular reads.
Nascon Allied Industries Plc: Increase in sale of goods boosts revenues
Nascon Allied Industries Plc recorded a boost from an increase in the sale of goods revenue-generating unit
Nascon Allied Industries Plc recorded a boost from an increase in the sale of goods revenue-generating units, as total revenues increased slightly. The company reported revenues of N21.87 billion in 2020 (9months) – 4.01% increase compared to N21.03 billion in the corresponding period of 2019.
What you should know
Key highlights from 2020 (9months) results
- Revenues increased by 4.01% from N21.03 billion to N21.87 billion YoY.
- Revenues from sale of edible, refined, bulk grade salt; seasoning and vegetable oil, increased to N21.87 billion, +22.53% YoY.
- Other income increased to N12.81 million, +27.43% YoY.
- No revenue was recorded for freight income on the deliveries of salt and seasoning income-generating unit.
- Gross profit increased to N8.96 billion, +74.56% YoY.
- Operating profit increased to N3.64 billion +18.60% YoY.
- Pre-tax profits increased to N3.47 billion, +16.63% YoY.
- Post-tax profits increased to N2.29 billion, +13.27% YoY.
- Earnings Per Share increased to 115 kobo, +12.75% YoY
- Total assets increased to N44.36 billion, +45.79% YoY.
- Total liabilities increased to N32.04 billion, +67.21% YoY.
- Total equity increased to N12.32 billion, +9.35% YoY.
Nascon Allied Industries Plc recorded a boost from increase in sale of goods revenue-generating unit, but no revenue was recorded for its freight income on the deliveries of salt and seasoning revenue generating-unit.
Though companies have generally recorded decreased revenues in the last three quarters, mostly due to COVID-19; Nascon Allied Industries Plc was able to increase its total revenues and pre-tax profits in the period under consideration.