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As 2018 Winds UP: Nigerians Mourn Economy Under Buhari …Say 2019 Still Uncertain

Published

5 years ago

December 31, 2018

Despite the rise in the Manufacturing Purchasing Managers’ Index (PMI) at 61.1 index points for December 2018, as against 57.9 index points recorded in November, analysts say at the weekend that the outgoing year will not be forgotten in a hurry due to other negative indicators like high unemployment, dearth of credit by banks to critical sectors of the economy and high inflation in the midst of low purchasing power.
Bismarck Rewane, Chief Executive, Financial Derivatives Company’s December Lagos Business School’s publication sees 2019 as a year of “Trepidation and Growing Uncertainties,” adding that “The Nigerian economy may succumb to pressures of an oil price (down by 40%) to $53pb range and a cut in production to 1.67mbpd. The lower oil revenue and a growing deficit will erode the fiscal consolidation policies of the government.
With banking industry fragility and a naira under speculative pressure, 2019 will be a year of technological and investment opportunities but serious political and policy challenges.
The amicable settlement between Nigeria and MTN after an avoidable saga is a good way to end an eruptive year. A listing of MTN is the much needed booster shot the Nigerian stock market badly needs.”
According to the foremost economist, Nigeria’s 2019 election is being greeted with the classical reaction of an economic indifference curve, which is a combination of choices between commodity A and B which gives a consumer the same level of satisfaction or dissatisfaction.
‘Talking to a cross section of young people between the ages of 20 and 30, most respondents were unenthusiastic, indifferent and apathetic. Some considered it an Hobson’s choice. Based on this, we are anticipating voter apathy and a low turnout in the February election,’ he said.
Lagos Chamber of Commerce and Industry, Muda Yusuf, Director-General would like “foreign exchange management framework that reflects the market fundamentals, the acceleration of the economic diversification agenda, normalization of Lagos ports environment, the oil and gas sector reform, especially the petroleum industry bill; better debt management strategy to ease the burden of debt service, reduction in the cost of governance at all levels; improvements in the domestic revenue (particularly independent revenue) to reduce volatilities in government revenues,” in the new year.
President of the Nigerian Employers’ Consultative Association (NECA), Dr Mohammed Yinusa says the implementation of Nigeria’s 2018 budget, benchmarked at $60 per barrel could also suffer should the slump persist in the oil price at the international market persists.
Consequently, Yinusa says, “Nigeria’s economy which is currently stabilising on boost in crude oil price, could be adversely affected as crisis in foreign exchange, primarily sourced from the oil sector was projected to worsen.”
Yusuf believes that the non-passage of the Electoral Act and Petroleum Industry Bill (PIB), are considered as sore points for the economy and polity, adding, the “downstream sector as currently constituted is unstructured and largely uncompetitive.”
In the last quarter of this year, the globa oil industry witnessed steady decline in prices of crude oil prompting several oil producing countries especially OPEC to consider production cuts.
In fact, OPEC, Russia and other producers have agreed to remove 1.2 million barrels per day from the market beginning in January. Consequently, some observers also said price volatility in 2019 may be inevitable considering the conflicting priorities of the three top world producers, namely the US, Saudi Arabia and Russia.
The move follows a more than 30 percent drop in oil prices that saw international benchmark, the Brent crude, fall from more than $86 a barrel to a 13-month low of $57.50 last month.
Apart from the downward movement in the international prices of crude oil in the outgoing year,2018 witnessed a mixed feeling among the stakeholders in the country’s oil and gas industry.
Muda Yusuf said data from the Organisation of Petroleum Exporting Countries (OPEC) shows that oil prices are trending down at $54 p/bl on 22nd December 2018 from its peak of $88p/bl in the month of September and October 2018.
He said this is already below 2019-2021 Medium-Term Expenditure Framework (MTEF) and 2019 budget benchmark of $60p/bl. The declining global oil price will likely distort FG’s economic projections for 2019 as well as impact adversely on its MTEF if the trend is not reversed.
Consequently, Yususf said in 2018, the oil and gas industry was characterized by weak incentive regime to facilitate the penetration of the use of cooking gas in the country as well as high cost of the LG equipment as result of high import tariff. He also said the industry was characterized by the discriminatory VAT imposed on the locally sourced LPG, while imported LPG does not attract VAT.
“Petroleum subsidy debts and non-payment of interest rate and exchange rate differentials to oil marketers is affecting the ability of the oil marketers to meet up with their financial obligations with the banks. This is also having a multiplier effect on the revenue of the banks/lenders. It also has implications for the stability of the banking system and the growth of non-performing loans in the financial system,” he added.
A banker and chieftain of the Peoples Democratic Party (PDP), Dr John Ayuba says the failure of government to provide the much needed enabling environment led to the drought of Foreign Direct Investments (FDIs).
At the home front, Ayuba said the economy did not fare betther as local investors were hounded with harsh and vindictive policies.
According to him, the economy needs a leaders with business acumen and who understands and with a face of business.
Chief executive of Abuja based Muregi Associates, Dr. Husseini Mohammed in his response to inquiry titles his submission “Economic Annus Horriblis.”
As the above indicates, Commenting or writing in assessing the Economic situation of the country in 2018 is not farfetched considering a number of factors, namely, Inflation, Unemployment, Manufacturing, Private Sector Performance and indeed the overall activities of the socioeconomic indicators all proved by and large negative.
Manufacturing sector, which is the engine of economic growth in terms of Capacity utilization, was too low and generally considered unacceptable or unrealistic for any meaningful economic growth. In a way it wouldn’t be out of place to conclude that, the year 2018 is what in Latin we call “Annus Horriblis”.
On the expectations for next year, he said, “we need to be cautious because the current budget of N8.83 Trillion Naira with a production of 2.3 barrel and a benchmark of $60per barrels is already questionable by the current sport market of $53 per barrels and OPEC’S cut in our production to a mere 1.93 barrels.
For the Economy to turn around, we must look inwards in the development of Agriculture and other allied resources with a major emphasis on the small-scale industries as enablers.
Leadership is everything, election is just about a month away, therefore, whoever emerges as the president be it the current leadership or the PDP leadership will have Herculean task in managing the state of affairs of the country.”
Engineer Martin Onovo told our correspondent that the “year, just like the previous years under the current administration, didn’t witness salutary growth because the handlers of the country have no idea of how to pilot it let alone functionalize the nation’s section.
He said the development explains the lingering crisis of confidence between the Minister of State for Petroleum Resources, Ibe Kachikwu and the group managing director of the Nigerian National Petroleum Resources (NNPC),Maikanti Baru, fuel subsidy payment, corruption and all other inherent infractions which ordinarily should have fizzled out given the right leadership.”
On power situation some analysts say despite the recent claim by the country’s Power Minister, Babatunde Fashola, that the current administration has taken power situation to the next level, the Senior Staff Association of Electricity and Allied Companies(SSEAC) and critical stakeholders felt the minister played to the gallery .
National president of the Union, Comrade Chris Okonkwo told newsmen that Nigeria didn’t achieve any substantial growth in the power sector in 2018,adding that the power distribution companies had a field day by imposing estimated billings on customers, denying them prepaid meters and shunning investment in infrastructure that could boost power supply in the country.
A leader of a pressure group organization in Lagos, Comrade Chinedu Bosah corroborated Okonkwo’s position, saying the claim of improved power supply by the current government in 2018 is a mere political gimmick
Consequently, President of the Nigerian Employers’ Consultative Association (NECA), Dr. Yinusa, has recommended that government should see to a logical conclusion its power sector reforms to deliver stable power supply to the populace, while priority should be given to the rehabilitation of deplorable road networks while constructing additional ones across the nation.
He said: “There is the need for close monitoring and regulation of the activities of road concessionaires to ensure optimum benefits from such concessions. The transportation and haulage system is virtually road dependent. This is not good for the economy.
“Development of alternative transport system, particularly the water transport, railway, both intra and interstate, should be accorded high priority.
“We recognise the efforts of government in respect of its rail modernisation programme and recommend that the programme should be accelerated in view of its centrality to the growth of internal trade and industrial competitiveness.”
With the upcoming general elections, he advised Government not to focus solely on politics at the expense of the economy and good governance, but continue to work assiduously to sustain the steady stabilisation of our economy through informed policies to position it for continued growth.
However, on the anti-graft war, the government, according to some analysts was able to change the status quo to an extent, as they all agree that it became obvious that there was a new sherrif in town.
Indeed, one of the landmark strategies initiated by the government was the Whistle-blower policy, which, according to the government, has yielded several recoveries, including, N13.8 billion from tax evaders and N7.8 billion, $378 million, £27,800 in recoveries from public officials targeted by whistleblowers.
It also said the National Economic Council (NEC), under the Chairmanship of Vice President Yemi Osinbajo, approved the audit of key federal revenue generating agencies, which has so far yielded a total sum of N526 billion and $21 billion. The money was underpaid to the Federation Account between 2010 and 2015.
However, while the ruling APC goes to the 2019 polls with some of these achievements, many believe the government may have fallen short of great expectations Nigerians including improving their living standards. But, rather, what they have experienced in the last twelve months was more of despondency and hopelessness

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Be Firm In Fight Against Oil Theft, Fubara Tells CNS …As Navy Moves Training Hqtrs To Rivers …Seizes 14 Vessels In Three Months

Published

3 days ago

April 26, 2024

The Tide

Rivers State Governor, Sir Siminalayi Fubara, has encouraged the Nigerian Navy to be firm in the fight against all forms of economic sabotage, particularly crude oil theft, in the nation’s waterways.
The Governor noted with delight the positive results already recorded by the Navy in the State due largely to the tremendous support it has received from his administration.
Governor Fubara spoke when he hosted on courtesy visit, the Chief of Naval Staff, Vice Admiral Emmanuel Ikechukwu Ogalla with his delegation of top officers of Navy High Command at Government House in Port Harcourt,yesterday.
The Rivers State Governor stated that Nigeria was facing myriad of crises, including economic challenges, rising insecurity and criminal activities that threaten the national economy, which should not be overlooked.
He said, “We are working together, we will give you all the support to make sure that you deliver on your mandate.
”And what is the mandate? You were appointed at a time when our country is facing a lot of crises, and your duty, among others, include to reduce, if it cannot be eliminated completely, the criminalities perpetrated on the waterways; oil theft and others.
”And I am happy that they are positive and commendable records of achievement so far, in the course of your tenure.”
Governor Fubara said the good news of reduced level of oil theft in Rivers State is evidence of the many positive things that are happening in the State beyond the much hyped negativity, and assured that such positive achievements will be sustained.
The State Chief Executive insisted: “The success of the Nigerian Navy in our State, in the areas of oil theft, is because the State Government has given you all the necessary support.
”We have collaborated with the command here. We supported them morally, and with all the necessary logistics.
”We have also maintained good relationship with the communities to make sure that whatever it is that is required for these operations to be successful were granted. I am happy to be associated with these very laudable achievements.”
Governor Fubara said: “So, I have to say that I am happy that the Chief of Naval Staff, today, is commending the success of the exercise. He is commending the doggedness of the men in fighting oil theft, not just in the Niger Delta, but particularly in our State.
”I want to assure you that we will continue to give them the support, and discourage any act that would be a sabotage to the economy of our State.”
Governor Fubara said that Rivers State was not named in error: there are several water channels that can boost the operations of the Navy. This is why we are requesting that the Nigerian Navy move all its bases to the State.
”It was not a mistake they called it Rivers State. It is surrounded with all forms of rivers. You want the Atlantic region, you can get it here. You want those small creeks, you can also get it here. Maybe, if you want an Island, you can also find it here.
”So, it is proper if we work with you and you have all that is required within this geographic region, to have all your bases relocated to Rivers State,” he said.
He further said: “We must continue to give you the necessary support to make sure that you succeed. I am happy to also say that, as the Governor of the State by the special grace of God, we are still here, not minding the dramas here and there. We will not let our people down in ensuring that we protect their interest.
”We will support the genuine course of governance; the protection of lives and provision of basic amenities. And these can only be achieved when there is a peaceful environment.
”And the peaceful environment can only come when there is a collaboration with security agencies to prevent crimes, and protect lives and property of residents.”
In his address, the Chief of Naval Staff, Vice Admiral Emmanuel Ikechukwu Ogalla, reiterated that the Nigerian Navy and Rivers State are like conjoined twins who cannot do without each other.
This is because, he said, they needed collaboration on various aspects of their activities ranging from training, operations, logistics, adding that Rivers State is key to their performance.
”My purpose of coming here today are three folds. The first is to inform His Excellency that on Saturday, we are graduating a set of former civilians who have been trained at our Basic Training School, Onne, and are graduating to join the ranks of the Nigerian Navy as ratings in order to beef up our strength.
”The second reason is to first appreciate the Governor and the entire Rivers State Government for the schools they donated to us: the Ambassador Nne Krukrubo Model Secondary School at Eleme in Eleme Local Government Area, and the Model Secondary School, Egbelu in Oyigbo Local Government Area.”
Vice Admiral Ogalla stated further: “We also want to use this opportunity to inform His Excellency that following that donation, and based on our strategic plan of moving our facilities to areas where we have enough space to be able to carryout out duties, we have renovated the school at Eleme.
”We are happy to report, today, that the erstwhile location of Headquarters of Naval Training Command, Lagos, is moving to that particular school location in Eleme, tomorrow.’
Speaking on the operational successes recorded thus far, he said that propelled by the charge given to them by President Bola Tinubu, the Nigerian Navy, under his watch, has impounded 14 vessels caught to be conveying stolen crude oil and several other individuals arrested, adding that investigations into their culpability were ongoing.
”I am here today to report Sir, that, with the “Operation Delta Sanity”, launched in January, 2024, we have been very successful, and within the period, we have recorded tremendous successes and achievements.
”Over 14 large crude carrying vessels have been arrested within that period. Most of them are at various levels of investigation. We have also arrested several barges and other companies and organizations that are involved in oil theft.
”As a result of the operations, we are happy to report that there has been tremendous improvement in terms of security in the maritime environment,” Ogalla added.

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118 Inmates Escape As Rainstorm Destroys Niger Prison

Published

3 days ago

April 26, 2024

The Tide

A heavy downpour has wreaked havoc on the Medium Security Custodial Centre in Suleja, Niger State, resulting in extensive damage to the facility and facilitating the escape of 118 inmates.
This was disclosed in a statement signed by the spokesperson, Federal Capital Territory Command of the Nigerian Correctional Service, Adamu Duza, yesterday.
Duza noted that the downpour which occurred on Wednesday night, caused severe damage to the custodial centre’s infrastructure, including a breach in the perimeter fence, which allowed the inmates to flee.
However, 10 fleeing inmates had been recaptured following a swift response by the NCoS in collaboration with other security agencies.
Duazu promised that efforts were ongoing to recapture the remaining fleeing inmates, adding that their database would soon be made known to the public.
Recognising the vulnerability of ageing facilities, many of which were built during the colonial era, Duza acknowledged that the NCoS was committed to modernising its infrastructure.
The statement further noted that the Controller of Corrections, FCT Command, Francis John, assured the public that the situation was under control and urged them to carry on with their daily activities without fear.
The public was encouraged to remain vigilant and report any suspicious activities or sightings of escaped inmates to the nearest security agency.
The statement read in part, “A heavy downpour that lasted for several hours on the night of Wednesday, April 24, 2024, has wreaked havoc on the Medium Security Custodial Centres, Suleja, Niger state, as well as surrounding buildings, destroying parts of the custodial facility, including its perimeter fence, giving way to the escape of 118 inmates of the facility.
“The service has immediately activated its recapturing mechanisms, and in conjunction with sister security agencies, has so far recaptured 10 fleeing inmates and taken them into custody, while we are in hot pursuit to recapture the rest.
“The service is not unmindful of the fact that many of its facilities were built during the colonial era and that they are old and weak. The Service is making frantic efforts to ensure that all aging facilities give way to modern ones.
“The Controller of Corrections, FCT Command, Francis John, wishes to assure the public that the service is on top of the situation and that they should go about their normal businesses without fear or hindrance.”
Meanwhile, the United States has underscored the significant challenge of overcrowding in Nigerian prisons.
The US, according to its ‘2023 Country Reports on Human Rights Practices: Nigeria,’ published on its website on Tuesday, noted that numerous correctional facilities were grappling with a staggering 50 per cent increase in the number of inmates beyond their intended capacity, revealing a systemic issue.
Furthermore, it disclosed that a notable proportion of these prisons, some with histories dating back 70 to 80 years, faced difficulties in meeting even the most fundamental standards of living.

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Rivers’ll Be Known For Peace, Not Crisis -Fubara

Published

3 weeks ago

April 10, 2024

The Tide

Rivers State Governor, Sir Siminalayi Fubara, has said that peace has prevailed because he draws strength from God to resist insults and tantrums thrown at him while frustrating attempts by some disgruntled persons who wanted to plunge the State into unending crisis.
The Governor also said that because he has anchored his Government on promoting peace, the enabling atmosphere has been provided for investments and sustainable development to flourish.
Governor Fubara made the assertion when he received a delegation of members of the Bishops and Gospel Ministers’ Association International Incorporated, Rivers State Chapter, at Government House in Port Harcourt, yesterday.
Represented by the Head of Rivers State Civil Service, Dr George Nwaeke, Governor Fubara said while most people took his meekness for weakness, his stance on peace has unarguably enhanced harmonious atmosphere of concord as residents sleep with their two eyes closed, and investors and shareholders are happy with the returns on investment.
He said, “Before, what they hear of Rivers State is that they are fighting, and some genuine investors will not come. Some people even ask you: How are you coping in Rivers State?
“But now”, he asserted: “The Governor has brought about a lot of changes in the State. One of the most important things is that he has changed the negative narrative. It is no longer Rivers of blood. It is now Rivers of peace.
“We are enjoying our lives here. Why? Because there is a change in the narrative. We have peace. The Governor is, as much as possible, absorbing any level of insult at him only for one purpose: that Rivers State may have peace; that we may grow; that this state will experience genuine development.”
Governor Fubara urged them, as members of the Christian family in the State, to continue to pray for the State and the Government so that the enemies of the State will be put to greater shame.
“This peace is what I want you to embrace. Go and continue to pray, because when the sower of the seed went and sowed, the enemy went in the night and sowed tares inside there. But the Governor is sowing peace.
“When I listened to the leader of the team, His Grace Eddy Ogbonda, he said you came all the way from Eleme Junction, and stopped at major junctions, and you uttered prayers for the peace of Rivers State.”
He also said: “I, hereby want to thank you for identifying with the Governor at a time like this. At a time when it looks as if someone wants the Governor’s peace posture misunderstood as weakness.
“When someone has the strength to fight back, but refuses to fight back. That is a bigger strength; that power of restrain does not just come, it can only come from God.
“You cannot give peace, if you do not have peace within you. The Governor is not interested in any form of trouble or violence. What he is interested in is known, and it is: let there be peace in Rivers State,” he said.
In his address, leader of the group, Archbishop Eddy Ogbonda, said they had observed a week-long intensive prayers that culminated into a peace rally, which brought them to Government House, and assured the Governor that God will continue to give him victory over his adversaries while preserving Rivers State.
“It is Rivers State Prophetic Prayer Convocation and Rally 2024 with the theme: ‘Peace be still’. Of a truth, everyone of us understands that we live in a time when we need peace much more than any other thing.
“Rivers State needs peace. Everyone as individuals need peace. The country needs peace, and the world at large needs peace. So, we are here to do a peace march. We pray that God will command His peace to reign in Rivers State,” he said.