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COVID-19: African Finance Ministers Demand Debt Relief From Partners

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Ministers of Finance in Africa have called for debt relief from bilateral, multilateral and commercial partners to ensure that African countries get the fiscal space required to deal with the COVID-19 crisis.
They made the call during a virtual meeting hosted by the Economic Commission for Africa (ECA), against the backdrop of rising COVID-19 cases in Africa.
A statement issued by the Communications Section of the ECA in Addis Ababa, yesterday, said the meeting was hosted by Vera Songwe, the Executive Secretary.
According to the statement, the ministers also appealed to the International Monetary Fund (IMF), the World Bank Group (WBG) and the European Union (EU) to support the continent to get debt relief.
“The call for debt relief should be for all of Africa and should be undertaken in a coordinated and collaborative way.’’
They also called for a special purpose vehicle to be created to deal with all sovereign debt obligations.
The statement added: “Substantial drop in revenue from commodity price drops coupled with increasing costs of imports is putting pressure on both inflation and the exchange rate.
“Given that the global economy has entered a period of a synchronised slow down, with recovery only expected after about 24 to 36 months, development partners should consider debt relief and forbearance of interest payments over a two to three-year period for all African countries.’’
The ministers also acknowledged the importance of the private sector for job creation and for the recovery effort.  They called on Development Finance Institutions (DFIs) to support the private sector in this difficult time, saying since Africa was a net importer of pharmaceutical products, enabling local continental production could serve to protect some jobs and guarantee supply of essential medicines during the crisis.
The statement added that the ministers called for joint protocols on border closures to allow for trade and humanitarian corridors.
According to it, the ministers discussed the enormous losses being incurred in the airline and hospitality industry.
They, however, called for the protection and preservation of African airlines, logistics and tourism industry by advocating for a stay on interest, lease and debt payments.
“This is an important job creating sector for millions of Africans and must be protected,’’ they said.
They also agreed to set up a meeting for countries affected by transport and tourism losses due to the pandemic, to better plan on policies to combat the losses.
The ministers said that immediate focus must remain on the health and humanitarian front, adding that awareness raising, testing and social distancing should be continued.
They welcomed the use of technology such as mobile phones to support awareness raising, identify communities in need and create accountability and governance mechanisms around the use of the stimulus.
“The ministers asked the ECA to work with the telecommunications company to design a system to support these objectives,’’ the ministers said.

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Bayelsa consumers Groan  Over Inflation As Traders Remain Helpless Over Low Patronage 

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Consumers and traders at the Swali ultramodern market in Yenagoa, capital of Bayelsa State have continued to groan over high prices of commodities and poor Patronage due to cost-push inflation.
The Tide reports that in the past weeks prices of goods and services in Yenagoa metropolis has experienced increase.
Notable services like transportation have also increased  lately due to increase in the pump price of fuel that has recently further exacerbated inflation in the prices of staple foods like rice, beans, garri and others.
Speaking with The Tide on a market survey, a trader, Mrs Tovie Barakabo said a bag of bean which sold between N120,000-N130, 000 now goes for N140,000-N145,000.
Mrs Barakabo also hinted that the only commodities whose price has not gone up was price of millet which sells N60,000, while big bag of garri now sells for N30,000.
The Tide further gathered from other inside Source that 25 litres of Kings cooking oil currently sells N75,000 as against the former price of N57,000.
Other commodities such as delicious vegetable oil  now goes for N68,000, Pure vegetable oil currently goes for N66, 000, while spaghetti is now N18,800 per bag.
The market survey also discovered that Sonnia tomato mix sells N75,609, while a big and small basket of fresh tomatoes are sold for N30,000 and N6,500 respectively.
A disappointed custom, Mrs Juliet Domo who fielded questions from The Tide expressed her worries over the inflation, calling on government to take decisive stands against inflation.
By: Ariwera Ibibo-Howells, Yenagoa
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FG’s N1,350 FUEL DISCOUNT:  Drivers lament low impact on Transportation 

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Some Commercial drivers in Port Harcourt have said that the Federal Government’s N1,350 fuel discount is yet to reduce their daily operating cost.

A cross session of commercial drivers who spoke to The Tide correspondents in Port Harcourt said they are yet to feel the impact of the government discount, adding that most filling stations in the city are even selling above the pump price 

A driver Jude Ogbo who operates the mile 1 Rumuokoro axis of Port Harcourt said  plies  the discount has not reflected in his daily fuel expenses.

“Since the discount was announced, many filling stations still sell at the old price. When you go there, you discover they sell you two litres at the price of one. For now, we have not seen any reduction,”_ he said.

Another commercial driver, Comrade Ishmael Uzeho who operates within the Port Harcourt metropolis, said the discount is not being implemented across the country.

“How has the discount affected us? I will say it has not. Many stations are not working. Only NNPC is working and that is just one person in the whole country. If government really wants to help, let the fuel price go down properly,”_ he said.

Uzeho added that if the price of fuel goes down, transport fares will also go down. He noted that his route fare has remained at N500.

On his part, Mr. Moses Dapa, Supervisor at Sam Jaja Foundation Transport Company, said the company has not increased its fares despite the high cost of fuel.

“We are still running normal price. We charge N2,000 and N5,000 depending on the destination. We will not increase our price. I don’t know about other parks, but for Sam Jaja, we are maintaining normal price,”_ Dapa said.

He appealed to passengers to understand that drivers are not using high fuel price as an excuse to charge excessive fares.

Other drivers who spoke said the federal government should monitor the NNPCL retail stations to ensure that the directive is implemented.

Recalled that The Federal Government in abid to reduce transportation cost in the country had announced a 30-day margin discount at NNPC Retail stations across the country from October 1 to 31,

However investigation revealed that the policy is yet to affect transportation cost in the country.

By; Stephens Sopakriba and Saint Davies

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Nigeria Has gas potential to navigate energy crisis – Group

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Alfa Designs Nigeria Limited, an asset management company, has assured Nigerians that the country possesses the resources to navigate the current global  energy crisis.

In a press statement released to The Tide’s  source on Friday in Abuja, the group said Nigeria had a significant resource advantage due to its vast natural gas reserves.

“At a time when global energy markets face unprecedented volatility and rising operational costs, Nigeria stands on a massive resource advantage with its vast natural gas reserves,” the group said.

Highlighting this potential, Alfa Designs urged the nation to move past complaints over energy costs and aggressively embrace Compressed Natural Gas (CNG) as a sustainable engine for  economic growth.

While federal policy adjustments have sought to cushion the impact of global energy shocks, industry experts emphasised that long-term relief hinges on a rapid, nationwide transition to gas.

“Transitioning away from expensive traditional petroleum products promises to ease the financial burden on ordinary citizens.

“It will also reposition Nigeria as an attractive industrial hub capable of drawing foreign direct investment and driving job creation,” it said.

To demonstrate the practical feasibility of this transition, the group said it recently partnered with a global Original Equipment Manufacturer (OEM) to lower the entry barriers for commercial drivers.

“By negotiating directly with the manufacturer, we reduced the total cost of acquiring and installing a CNG conversion kit for commercial tricycles (commonly known as Keke NAPEP) from up to N700,000 down to under N450,000.”

The group said this shift offers dramatic immediate financial benefits for local operators, with petrol currently selling at roughly N1,390 per liter.

It said that, in comparison, at a CNG equivalent price of about N98 per liter, a daily commercial driver using 10 liters of fuel reduces its daily energy expenditure from N13,900 to N3,980.

“This represents a daily net savings of N9,920, or more than 71 per cent.

“Over a standard 26-day working month, drivers save over N257,000, allowing them to fully recover the cost of the CNG conversion in less than 46 operational days.”

The company further stated that when scaled nationally, the economic implications are monumental.

“Nigeria consumes approximately 50 million liters of gasoline daily, costing roughly N69.5 billion per day.

“A nationwide 71 per cent reduction in fuel expenditure would generate daily national energy savings of N49.6 billion.

“On an annualised basis, this shift equates to approximately N18.1 trillion, or $13.5 billion, kept within the domestic economy.”

The group added that those recurring national savings would offer a vital mechanism to help address Nigeria’s estimated $2.3 trillion infrastructure deficit.

It said reinvesting those funds into the economy helps eliminate the 30 to 40 per cent operational overhead currently consumed by imported fossil fuels.

“The resulting boost to corporate margins expands the national tax base, generates reliable user-fee revenues to make major transit projects bankable, and creates a self-sustaining financial cycle,” it said.

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