12 minute read
Business
PEOPLES DAILY, MONDAY, DECEMBER 26, 2022 PAGE 19 BU$IN€SS
2022 was a year of economic uncertainty for Nigeria with its prospects for growth dampened by the Russia-Ukraine war, lower-than-expected oil production, and a worsening debt crisis emboldened by huge petrol subsidy payments chopping off the country’s revenue.
Advertisement
In it’s usual reactionary move, the federal government implemented various policies mulled to rescue the country from a complete economic collapse. But its actions provoked mixed reactions
Group backs Tinubu on plan to remove petrol subsidy, says ‘oil sector is caged’
By Abubakar Yunus Abuja
Agroup known as ‘the natives’ has supported the plan by Bola Tinubu, standard bearer of the All Progressives Congress (APC), to remove subsidy on premium motor spirit (PMS) if he is elected president of the country.
Tinubu’s plan is contained in his manifesto tagged ‘renewed hope 2023’.
On Thursday, the former governor of Lagos, while speaking at a meeting, insisted that his administration would scrap petrol subsidy payments without regard to dissenting voices in the country.
“No matter how long you protest, we are going to remove the subsidy,” Tinubu had said.
In a statement on Saturday, Smart Edwards, presidentgeneral of the group, said the oil sector has been caged by “subsidy” and must be “unbundled”.
“Our message to the presidential candidate of the All Progressives Congress, Asiwaju Bola Ahmed Tinubu is that if he wins the forthcoming election and anytime is ready as a president, we will stand with him, it is a bold statement he must keep and if he is elected we will hold him accountable for this,” Edwards said.
“We are citizens and we know what we want is development, infrastructure, growth in a secure country, not a group of people fleecing out our resources in the name of subsidy. The truth is the subsidy must go.
“We, however, call on the Labour Unions, civil society organisations and youngsters to prepare their minds and show understanding because removal of fuel subsidy is a policy long overdue, the sector is caged and must be unbundled.
“We cannot be offering cooperation to saboteurs to arbitrarily unleash untold hardship on us as citizens year in, year out. This evil work by the saboteurs must come to an end.”
Naira redesign, cash withdrawal limit… most debated economic policies of 2022
from experts and Nigerians at large — both online and offline.
In this review of the government’s policy efforts, Peoples Daily highlights some of the most talked-about economic policies of the year.
In February, the Central Bank of Nigeria (CBN) introduced the ‘race to $200 billion in FX repatriation (RT200 FX) programme’. It was the government’s ‘show of seriousness’ in tackling its dwindling foreign exchange (FX) reserves, and adopting other means of revenue generation aside from oil.
The programme was designed with the aim of ensuring that Nigeria rakes in $200 billion in FX repatriation, exclusively from nonoil exports in the next three to five years.
The initiative comprises five key anchors namely: valueadding exports facility, non-oil commodities expansion facility, non-oil FX rebate scheme, a dedicated non-oil export terminal, and biannual non-oil export summit.
At the end of first quarter (Q1) of 2022, under the nonoil FX rebate scheme, the CBN commenced payment of N65 for every $1 repatriated and sold to third parties through the official FX window while it paid N35 for every $1 repatriated and sold into the official FX window for own use on eligible transactions.
Only exporters of finished and semi-finished goods wholly or partly processed or manufactured in Nigeria are eligible for the rebate.
Recently, the CBN announced that non-oil exporters repatriated $4.9 billion into the country in the first nine months of the year — a figure equivalent to 2.5 percent of its $200 billion target.
As of November, 2022, the apex bank said it has paid N81 billion rebate to exporters.
Amid the forex crunch in the country, banks announced a reduction in dollar spending limit on naira-denominated debit cards.
In March, Nigerian banks including Zenith Bank, UBA, Guaranty Trust Bank, Sterling Bank and Union Bank reduced the limit on naira cards from $100 to $20 monthly while some banks (First Bank, Standard Chartered Bank) suspended the usage of naira cards for international transactions.
A couple of months later, Nigerians were thrown into panic when a number of African fintechs (Barter by Flutterwave, Eversend, Busha, GetEquity, Klasha and Payday) also shut down their virtual dollar card services.
Recently, Godwin Emefiele, governor of Central Bank of Nigeria (CBN), admitted that there was significant FX shortage in the country, and asked banks to come up with solutions to boosting inflows.
As Nigerians were recovering from the dollar spending limit on cards, on June 1, the federal government began the implementation of a sugar tax of N10 per litre on all non-alcoholic, carbonated, and sweetened beverages in the country.
The policy, embedded in the finance act of 2021, was designed to discourage excessive consumption of sugar in beverages and raise revenue for health-related and other critical expenditures.
While the new sugar tax was welcomed by stakeholders in the health sector who hoped that it would be utilised for public health purposes and improving the national health system, the manufacturing industry vehemently opposed it and called for a reversal of the policy.
However, despite the initial pushback by the manufacturing companies, they have since passed on the extra cost to consumers by increasing the prices of their products and also commenced remittances to the federal government.
To put it more succinctly, the policy, coupled with inflation, has translated to an increase in prices of carbonated drinks on the streets. A 50cl pet bottle of Fanta and Pepsi which used to cost N150 is now sold for N200.
Meanwhile, in terms of monetary policies, on October 26, Emefiele announced plans to redesign, produce, release and circulate a new series of three banknotes out of the existing eight banknotes.
The redesigned N200, N500 and N1000 notes were due for circulation on December 15, 2022.
The bank said the current series of the aforementioned naira notes will remain legal tender until January 31, 2023.
Members of Youth Forum of the movement on nigeria, presented an award to Christ Evangelical Intercessory and Life Intervention Ministry, Overseer Pastor, Yuhana Buru,-during the Chrismas day Celebration in kaduna on Sunday 25/12/22 25/12/2022 Ibrahim bashir NAN
NAICOM: Vehicle owners to pay higher insurance premium rates from Jan 1
By Abubakar Yunus Abuja
The National Insurance Commission (NAICOM) has increased the premium rates for vehicle insurance in the country.
In a circular dated December 22, 2022 and addressed to insurance companies, the commission said the new rates will take effect from January 1, 2023.
The circular was signed by Leo Akah, director, policy and regulation, NAICOM, on behalf of the commissioner for insurance.
NAICOM explained that the upward adjustment of rate was pursuant to the regulator’s exercise of its function of approving rates of insurance premium under section 7 of NAICOM act 1997, and other extant laws.
Under the new template, private vehicles that were paying N5,000 premium for N1 million third party property damage (TPPD) limit are now to pay N15,000 premium for N3 million limit; N5 million limit for own goods with a premium of N20,000; and staff buses are to pay N20,000 premium for N3 million limit.
NAICOM said third party motor insurance offers protection against damages caused by a person’s vehicle to another person’s vehicle or property.
“Pursuant to the exercise of its function of approving rates of insurance premium under section 7 of NAICOM act 1997 and other extant laws, the commission, hereby, issue this circular on the new premium motor insurance rates effective from 1st January, 2023,” the statement reads.
“Third party insurance policies inclusive of Ecowas Brown Card, EBC, shall be as follows: private motor, N15,000, TPPD limit N3 million; 0wn goods, N20,000, TPPD limit N5 million; staff bus, N20,000, TPPD limit N3 million.”
According to NAICOM, commercial trucks and general cartage will pay N100,000 premium for N5 million TPPD limit; tricycles to pay N5,000 for N2 million TPPD limit, and motorcycles to pay N3,000 for N1 million TPPD limit.
Also, “special types’’ of vehicles now have a TPPD limit of N3 million and premium of N20,000.
The commission added that for comprehensive motor insurance policy, premium rate shall not be less than five percent of the sum insured after all rebates and discounts.
It further warned that failure by insurance firms to comply with the directive shall attract appropriate regulatory sanction.
PAGE 20 BU$IN€SS
Qausain TV establishes working relationship with France 24
France 24, an international media station establishes working relationship with QAUSAIN TV, a Nigerian based satellite tv station.
This is contained in a statement made available to the public by QAUSAIN TV CEO, Malam Nasir Musa Idris popularly known as Albani Agege.
The media executive, Malam Nasir Albani reveals this weekend, shortly after the fruitful discussion with the management of France 24 in Paris.
Nasir Albani, who is currently in France with a view conclude a working relationship memorandum of understanding.
“Right now i am in France having received an invitation to visit Paris, where the headquarters of France 24 TV station is located. I was honored to be one of the head of WORLD TV station that establishes working relationship with them.
He said, this is a new dimension aimed at propagating Hausa language Worldwide. “Indeed this strong relationship between QAUSAIN TV and France 24 is a win-win relationship that can easily built a bridge to be crossed by Hausa people living in every part of the globe, as this will pave way for the people to have a thorough understanding of what is happening all over the world.
QAUSAIN TV is a Nigerian basedsatellite TV station with numerous viewers glued to the multi-lingual programs shown in Hausa, English and Arabic.
Shell agrees to pay €15m settlement for oil spills in Niger Delta
By Abubakar Yunus Abuja
Shell Petroleum Development Company (SPDC) says it will pay €15 million to communities in Nigeria that were affected by multiple oil pipeline leaks in the country’s Niger Delta region.
SPDC is the Nigerian subsidiary of global oil giant, Shell Plc.
The oil major made this known in a statement recently.
The compensation is the result of a Dutch court case, filed by Friends of the Earth — an international network of environmental organisations in 73 countries.
Four farmers had sued Shell in 2008 for oil spills in their villages: Goi, Oruma and Ikot Ada Udo.
The communities were impacted by four oil spills that occurred between 2004 and 2007.
On January 29, 2021, a Dutch appeal court ruled that SPDC pays for damages caused by the oil spills.
Following the judgments of the court of appeal of The Hague, Shell said it has negotiated a settlement with Milieudefensie, a Dutch division of Friends of the Earth, for the benefit of the communities.
“The settlement is on a noadmission-of-liability basis, and settles all claims and ends all pending litigation related to the spills,” the statement reads.
“Under the settlement, the Shell Petroleum Development Company of Nigeria Ltd (SPDC), as operator of the SPDC joint venture, will pay an amount of EUR 15 million for the benefit of the communities and the individual claimants.
According to Shell, the parties agreed that remediation has been completed and certified by relevant regulatory in accordance with Nigerian law.
“The parties agree this also follows from the judgments of the court of appeal,” Shell said.
Bishop of Kaduna Anglican Diocese, Rt. Rev’d Dr. Timothy Yahaya,-(R) with some members of the Cathedral Choir, during the the Christman Service at the Cathedral of St. Michael, yesterday in Kaduna.
Oil price nears $85 a barrel amid potential shrink in Russian oil supply
Oil price rose on Friday on hopes that Russian crude oil supplies will drop.
Brent crude was up by 2.63 percent to $83.71 a barrel while US West Texas Intermediate (WTI) crude rose 2.09 percent to $79.11 a barrel.
According to traders and Reuters calculations, Russia’s Baltic oil exports could fall by 20 percent in December from the previous month after the European Union and group of seven (G7) nations imposed sanctions and a price cap on Russian crude from December 5.
Russia may cut oil output by 5 percent to 7 percent in early 2023 as it responds to price caps on its crude and oil products by halting sales to the countries which support them, RIA, Russian state-owned news agency, quoted Alexander Novak, deputy prime minister, as saying on Friday.
Speaking on the development, Edward Moya, Oando analyst, told Reuters that oil prices are rising as energy traders watch Moscow’s reaction to Russia’s oil price cap.
“Crude prices are higher as energy traders focus on Moscow’s response to the price cap put on Russian oil and not so much the thousands of flight cancellations that will disrupt holiday travel,” Moya said.
Expectations that Russia will shrink oil supplies have helped offset concerns that US fuel demand growth could take a hit as looming Arctic storms threaten travel during the holiday season, Reuters said.
More than 4,400 US flights have been cancelled over a twoday period due to the winter storm, coinciding with a holiday travel season that some predict could be the busiest ever.
In Nigeria, citizens are currently grappling with a distribution crisis in petroleum products – a situation that oil marketers have linked to higher prices at private depots.
In filling stations across the country, queues for petrol have persisted for weeks even as some outlets have increased the price of the product.
Recently, Nigerian airlines warned that there will be major disruptions of flights due to persistent scarcity of aviation fuel, also known as jet-A1.
The scarcity, the airlines said, would force them to reschedule flights, leading to late operations and in extreme circumstances, to cancellations.
The Nigerian natural oil and gas suppliers association (NOGASA) believes that local refining would eliminate delays at depots and reduce the prices of petroleum products.
