Nation
Chamber Predicts Rise In Inflationary Rate In 2021
The Lagos Chamber of Commerce and Industry (LCCI) says inflation rate will rise in 2021.
The chamber made the assertion in its Economic Review for 2020 and Outlook for 2021 made available to newsmen, yesterday in Lagos.
Its Director-General, Dr Muda Yusuf, attributed the projected inflation outlook for the incoming year to the combination of food supply shocks, heightened insecurity in major food-producing states, foreign exchange policies, illiquidity and higher energy costs.
“We, however, believe a broad-based harmonisation of fiscal and monetary policies towards addressing the identified structural constraints will significantly help to moderate inflationary pressure in the medium term,’’ he stated.
On sectorial review and outlook, the LCCI’s D-G said performance was largely weak across sectors in the third quarter of 2020 because of lingering effects of Covid-19 disruptions.
Yusuf stated that the trend would likely persist into the last quarter of 2020 and the first quarter of 2021 as the economy gradually recovers from the recession.
He noted that a resurgence of Covid-19 pandemic would cause another disruption in activities in the oil and non-oil sectors.
“We expect Information, Communication Technology, financial institutions, and agriculture to drive growth in the non-oil sector in the short-term while the country’s commitment to Organisation of Petroleum Exporting Countries (OPEC) agreement is expected to dampen recovery prospects of the oil sector,’’ he stated.
On Agriculture, the LCCI’s D-G said he foresaw the CBN sustaining its intervention in the sector in year 2021 in a bid to boost domestic food production and minimise food supply gap.
“While the ban on importation of rice, poultry and other agricultural commodities still subsists amid border reopening, there is risk of resurgence of smuggling of agricultural products into the country considering the porous nature of Nigeria’s land borders.
“This, combined with the commencement of Africa Continental Free Trade Area (AfCFTA), could see Nigeria being a destination for imported food products in the absence of adequate border monitoring measures.
“Additionally, heightened security concerns around the country, especially in the northern part and resurgence in herder-farmer conflict in the Middle Belt, the southwest and southeast, if unaddressed, will hamper local food production in the near term.
“Nonetheless, we expect a modest growth performance in year 2021,’’ he said.
As outlook for the manufacturing sector, Yusuf said the reopening of the land borders should provide succour to the sector even as the kick-off of AfCFTA serves as an avenue for manufacturers to penetrate new African markets.
He noted that critical challenges currently beguiling the sector alongside the new competitiveness pressure foisted by the AfCFTA might dampen the recovery prospects of the sector in year 2021.
“We expect the CBN to sustain its intervention efforts in the manufacturing sector as part of measures to boost economic recovery.
“We see the CBN maintaining policies that support credit extension to the real economy.
“The low interest environment in the money market favours big manufacturing players in terms of raising cheap capital, but the business environment will remain challenging for manufacturing SMEs.
“In our view, credit flows to the manufacturing sector will fail to achieve desired outcomes without putting in place measures to address structural, bottlenecks in the ports and customs processes and other policy challenges to productivity.
“Thus, we see growth of the manufacturing sector being subdued in the near to medium term,’’ he said.
Yusuf said the banking industry was expected to sustain positive growth trajectory in Q4-2020 amid the numerous regulatory limitations.
“We expect CBN to maintain its regulatory surveillance in the industry in ensuring the industry is financially sound amid evolving Covid-19 disruptions.
“Resurgence of Covid-19 pandemic, oil price volatility sluggish economic recovery and lingering external pressure are major downside risks to the growth prospects of the banking sector in year 2021.
“Loan-to-Deposit-Ratio policies drove the impressive performance in Q1-2020 by 24 per cent and Q2-2020 by 28.41 per cent.
“Momentum eased in Q3-2020 (6.8 per cent) as banks became more reluctant in providing credit to business given weak macroeconomic conditions.
“Nevertheless, banking industry remained financially sound with Capital Adequacy, Non-Performing Loan Ratio and Liquidity Ratio at 15.5 per cent, 5.73 per cent and 35.6 per cent as of end-October 2020, respectively,’’ he said.
The LCCI’s D-G said the oil sector would further contract in Q4-2020 in the light of lower production in compliance to OPEC+ agreement.
“We note OPEC+ has agreed to ease supply cut by 0.5 million barrels per day starting from Jan. 1, 2021 due to sluggish recovery in fuel demand, much lower than 2.0 million barrels per day earlier planned.
“Crude oil production will likely be lower in year 2021 as OPEC+ sustains efforts to prevent oil glut.
“We project that OPEC+ will be cautious in relaxing output reduction given the uncertainties around Covid-19 pandemic and global oil demand.
“Thus, we expect oil and gas sector growth to be subdued in year 2021 on the continued implementation of OPEC+ Declaration of Cooperation and weak oil price outlook.
“Also, increasing preference for renewable energy globally will put downward pressure on crude oil demand and prices. We are not optimistic of a significant growth performance in oil industry in year 2021,’’ he said.
He said that considering the dim outlook for revenue in the face of weak economic fundamentals, government would most likely underperform its revenue projections with attendant impact on fiscal deficit and debt portfolio.
“Budget deficit for year 2021 is expected to remain elevated above the projected N5. trillion and this poses a risk to Nigeria’s fiscal sustainability.
“We believe the Federal Government will be inclined towards securing concessionary borrowings with low interest rate and long maturity profile in the global market, rather than raising Eurobonds, especially now that the country is faced with foreign exchange scarcity,’’ he said.
The Minister of Marine and Blue Economy, Adegboyega Oyetola, has reaffirmed the Federal Government’s commitment to enhancing the safety of the seafaring profession and upgrading maritime institutions to international standards.
Speaking at the 2025 World Seafarers’ Day celebration in Port Harcourt on Wednesday, organised by NIMASA, with the theme, “My Harassment-Free Ship.
He said that this year’s theme “speaks to our collective duty to make every ship a safe and respectful workplace noting that harassment and bullying have no place in our maritime industry.
The Minister further emphasised the importance of continuous training and retraining to ensure seafarers remain competitive and employable.
Also speaking, the Minister of Labour and Employment, Muhammadu Maigari, emphasised that seafarers are the backbone of international trade, facilitating the smooth transportation of goods and services across the globe.
He stressed the need to eliminate all forms of violence, harassment, and bullying against seafarers.
In his welcome address, the Director-General of NIMASA, Dr. Dayo Mobereola, emphasised the need for the maritime community to prioritise the welfare, safety of seafarers and maintain zero tolerance for harassment.
According to the DG, “Today provides opportunity for the Maritime Community to honor seafarers globally for their immense contribution to both domestic and international trade, powering the blue economy and connecting nations across oceans”.
He said that this year’s theme was particularly apt, as it was a call to action to “ensure that our seafarers feel safe, are valued and protected while at sea because the ship is not just their place of work; it is their temporary home. It must therefore reflect the highest standards of dignity and professionalism fostering zero tolerance for harassment”.
He declared that NIMASA must continue to play its part in ensuring that Nigeria contributes effectively to regulations affecting seafarers, as Nigeria remains the highest contributor of seafarers in Africa. “Our men and women sail on vessels in our domestic waters and also globally. This will continue to grow through the Nigerian Seafarers Development Program (NSDP) and the effort of our Maritime Training Institutions.
‘At the recently concluded 113th session of the International Labour Conference held in Geneva, seven (7) amendments to the MLC 2006 code addressing a broad range of issues affecting seafarers, including the recognition of seafarers as key workers, improved protection against ship board violence and harassment, enhanced access to shore leave and repatriation and updated medical and occupational safety standards were approved by an overwhelming majority.
These seven (7) amendments reflect collective global effort to align maritime Labour standards with the evolving landscape of global shipping.
I, therefore, call on shipowners, operators and crewing agencies to begin to review their operational manuals to align with these amendments ahead of the expected entry into force in December 2027. Our seafarers must be able to report grievances without fear of retaliation, while also ensuring protection against vexations or malicious complaints.
He added that NIMASA will play its role by establishing clear policies and procedures for preventing and addressing harassment on Nigerian-flagged vessels, ensuring confidential reporting channels for incidents of harassment and that reports are thoroughly investigated and addressed.
“Today is a clear reminder to us all – government, employers, unions, shipowners, and civil society- that seafarers should not be left alone in their struggles. They look up to us to help them foster a culture of zero tolerance on ships to protect their dignity”, he stated.
He also assured that under his leadership, NIMASA will ensure compliance with regulatory requirements, particularly the renewal of entries into force by ship owners, operators, and relevant agencies come December 2027.
Stakeholders drawn across the four local government areas of Ogoniland in Rivers State, have expressed delight over the excellent performance of the Project Coordinator of the Hydrocarbon Pollution Remediation Project (HYPREP), Prof Nenibarini Zabbey within the past two years, describing him as a true patriot, who has been showing leadership in delivering service to the people.
The stakeholders, who gave the indication in their separate goodwill messages during the mid-term stakeholders engagement and scorecard presentation organised by HYPREP in Port Harcourt, scored the Project Coordinator high on the Ogoni cleanup and the overall implementation of the recommendations of the UNEP Report on Ogoniland.
The President of KAGOTE and Board member of the Ogoni Trust Fund, Hon Emma Deeyah, particularly commended Zabbey for turning around the fortunes of the Ogoni people, as they are now having value for the money earmarked for the cleanup project, describing the Project Coordinator as “one of our best.”
He noted that Zabbey has done well on the saddle, working very hard, being an administrator and leader with listening ears, striving assiduously to meet the yearnings and expectations of the people.
He said the Ogoni cleanup is a journey that has just begun, stressing that he was happy that the Project Coordinator is not on the saddle to amass wealth but to deliver and achieve results, and appealed to the Ogoni people to continue to give him their support.
On his part, member representing Gokana/Khana Federal Constituency in the National Assembly and Chairman of the House of Representatives Committee on Host Communities, Rt Hon Dumnamene Dekor, said HYPREP under the watch of Zabbey is working with renewed vigour, and thanked the Project Coordinator for driving the Ogoni cleanup project with passion.
He noted that the funds dedicated and earmarked for the project are running out, disclosing that he was working on an Executive Bill, to facilitate the work of HYPREP.
While stressing the need for the people to take full responsibility of all the projects sited in their communities, Dekor regretted that some beneficiaries had sold the starter packs presented to them by HYPREP, while the water facility provided in his Bierra community has been vandalised.
The King of Tai Kingdom, King Samuel Nnee, said HYPREP under Zabbey as Project Coordinator has been delivering on its mandate, describing him as a square peg in a square hole, who has given hope to the Ogoni people.
The monarch urged the Ogoni people to give the Project Coordinator the necessary support.
The Paramount Ruler of Barako Community and member of the Governing Council of the University of Port Harcourt, Mene Kadilo Kabari, said Zabbey has always demonstrated that he is a true patriot by carrying along Ogoni people from all strata of the society, describing him as a performing Project Coordinator.
He noted that the bane of HYPREP before now had been the conflict between the Project Coordinator and the Minister of Environment, saying, under Zabbey, Ogoni people can now see what unity of purpose can achieve.
He expressed delight that the water facility which was the first commissioned by HYPREP in his community is functioning optimally following the solar-powered system installed by the Project.
The King of Eleme Kingdom, King(Dr) Philip Osaro Obelle thanked HYPREP’s management team for all that it is doing in Ogoniland, stressing that the Project was built on the graves, bellies and blood of Ogoni sons and daughters who lost their lives during the Ogoni struggle.
He, therefore, advised HYPREP “not to deviate from the expectations of our heroes but to do those things that would benefit Ogoni people for the betterment of Ogoniland.”
Former Nigerian Ambassador to Netherlands, Hon Oji Ngofa said HYPREP has been like the government of Ogoniland, and harped on the sustainability of all the projects.
According to him, Zabbey has been giving HYPREP a human face.
Former Vice Chancellor of the Rivers State University, Prof Barineme Fakae applauded Zabbey for the construction of the Centre of Excellence for Environmental Restoration, and stressed the need for the implementation of the recommendations of its technical committee which recently submitted its report.
According to him, if the project succeeds, Ogoni people are going to succeed.
Chief Priscillia Vikue, on her part, thanked Zabbey for his outstanding performance, saying, the women of Ogoni are very happy with what he is doing in Ogoniland.
While scoring the Project Coordinator highly on his performance, she said the women are happy because Zabbey knows what he is doing with HYPREP.
“You went to school.You did not cut corners.You are a square peg in a square hole.You have engaged women and the youths. We have seen what you have done. And we give you A1”, she said, and challenged Zabbey to see how more women would participate in the project and also how to sustain it.
In his remarks, the Project Coordinator, Prof Nenibarini Zabbey said the mid-term engagement is important because “it allows us to present tangible evidence of progress in the Ogoni cleanup effort, reinforce accountability, deepen transparency, and most importantly, enables HYPREP to interact directly with the communities and stakeholders who are the heartbeat of this project.”
He noted that the scorecard presentation is designed to show what HYPREP has achieved across key thematic areas, what challenges it is currently grappling with, and what the road ahead looks like, saying, “it is a moment for stocktaking and for re-affirming our shared commitment to the success of the Ogoni cleanup project”.
According to him, HYPREP has recorded commendable progress in the implementation of its core mandates in line with UNEP recommendations and the directives in the official gazette establishing HYPREP.
Donatus Ebi
The South-South representative of the Tertiary Education Trust Fund (TETFund) Board, Rt. Hon. Aboh Uduyok, has concluded his one-day official visit to Captain Elechi Amadi Polytechnic in Rumuola, Rivers State, with the unveiling of the Mass Communication Department classroom building. The project was executed under the 2021 TETFund intervention project.
During the unveiling of the project, Tuesday in Port Harcourt, Rt. Hon. Uduyok commended President Bola Ahmed Tinubu for his commitment to the educational sector and praised the polytechnic’s management for utilising TETFund resources judiciously.
He noted that the quality of ongoing projects met approved specifications, and expressed satisfaction with the institution’s progress.
The TETFund representative stated that his visit was aimed at familiarising himself with beneficiary schools, assess fund utilization, and identify challenges.
He assured the school management that he would convey their requests for constructing engineering works and hostel accommodations to the board and notify them of any approval.
Rt. Hon. Uduyok explained that the TETFund Board is not initiating new projects this year, except where necessary, due to presidential directives. However, he commended the institution for the commendable quality of both completed and ongoing projects.
In his welcome address, the Rector of Captain Elechi Amadi Polytechnic, Dr. Moses S. Neebee, thanked the TETFund representative for visiting, and highlighted the institution’s successes and challenges. He requested support for hostel accommodations and engineering works, emphasising that a higher institution without hostels is akin to a glorified secondary school.
Dr. Neebee while briefing the visitor on the institution’s progress, noted that it currently runs 21 National Diploma programme and five Higher National Diploma courses. He disclosed that the school accessed the 2021 TETFund release in full but faced challenges with the 2023 fund due to harsh economic conditions and bid process delays, which increased project costs. The Rector pleaded for assistance in securing additional funds for the 2023 intervention release.
Akujobi Amadi