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Inflation: 1m Nigerians Face Imminent Poverty By Dec

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An additional one million Nigerians are likely to go into extreme poverty by December as a result of economic pressures warranted by the current inflation in the country, according to the Central Bank of Nigeria (CBN).
Disclosing this, in its latest Nigeria Development Update (NDU) report, the CBN said  the additional one million is different from the six million Nigerians that were already predicted to fall into poverty this year because of the rise in prices, particularly food prices.
According to the National Bureau of Statistics (NBS), Nigeria’s inflation worsened to 16.82 per cent in April, up from the 15.92 per cent recorded in March.
Compared to April 2021, the price decelerated by 1.3 per cent points from the 18.12 per cent inflation figure to 16.82 per cent.
“In April 2022, the consumer price index, (CPI) which measures inflation increased to 16.82 per cent on a year-on-year basis.
“This is 1.3 per cent points lower compared to the rate recorded in April 2021 (18.12) per cent. This means that the headline inflation rate slowed down in April when compared to the same month in the previous year.
“On a month-on-month basis, the Headline index increased to 1.76 per cent in April 2022, this is a 0.02 per cent rate higher than the rate recorded in March 2022 (1.74) per cent”, the NBS stated.
Food inflation, the NBS continued, also rose to 18.37 per cent compared to the 17.20 per cent recorded in March.
According to the World Bank Report, Nigeria’s growing macroeconomic challenges in 2022 highlights the continuing urgency of a departure from business as usual, and the need for consensus around a package of robust reforms.
To reduce the current inflation rate, therefore, the World Bank Report highlighted three policy priorities.
The report, titled, “The continuing urgency of business unusual”, which was released on Tuesday, stated that there is need to reduce inflation through a sequenced and coordinated mix of exchange rate, trade, monetary, and fiscal policies, including the adoption of a single, market-responsive exchange rate.
It also called on government to address mounting fiscal pressures at the federal and sub-national levels by phasing out the petrol subsidy and redirecting fiscal resources to investments in infrastructure, education, and health services.
The Report also called for catalysing private investment to boost job creation by improving the transparency of key government-to-business services and eliminating trade restrictions.
“Nigeria is in a paradoxical situation: growth prospects have improved compared to six months ago but inflationary and fiscal pressures have increased considerably, leaving the economy much more vulnerable.
“Inflation in Nigeria, already one of the highest in the world before the war in Ukraine, is likely to increase further as a result of the rise in global fuel and food prices caused by the war.
“And that, the World Bank estimates, is likely to push an additional one million Nigerians into poverty by the end of 2022, on top of the 6 million Nigerians that were already predicted to fall into poverty this year because of the rise in prices, particularly food prices.
“This latest edition of the NDU highlights that the inflationary pressures will be compounded by the fiscal pressures Nigeria will face this year because of the ballooning cost of gasoline subsidies at a time when oil production continues to decline.
“Hence, Nigeria, for the first time since its return to democracy, and alone amongst major oil exporters, is unlikely to benefit fiscally from the windfall opportunity created by higher global oil prices”, it stated.

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Navy Destroys 14 Illegal Refineries, Confiscates N2.7bn Refined Products

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Troops of the Nigerian Navy conducting Operation “Dakatar Da Barawo” confiscated crude oil and other illegally refined products worth N2.7billion in June.
This is contained in a statement issued by the Director of Information, Naval Headquarters, Commodore Adedotun Ayo-Vaughan in Abuja.
“The various NN platforms deployed for ‘Operation Dakatar Da Barawo, Calm Waters 11’ and Tripartite Joint Border Patrol, have continued to sustain aggressive patrols to curb the menace of crude oil theft and illegal oil bunkering.
“Accordingly, several Illegal Refining Sites (IRS), metal storage tanks, wooden boats, dugout pits and ovens were destroyed between June 13 and June 19”.
He said five suspects were and the operatives destroyed 14 Illegal refining sites.
The Navy also said that 80 storage tanks, 22 wooden boats, 40 ovens, two-speed boats, a tanker, truck, barge and a Toyota Sienna car were recovered during the various operations during the period.
Similarly, Navy ship VICTORY in Cross River intercepted and impounded three wooden boats laden with drums of suspected illegally Refined Petrol (PMS) around Ikang channel, suspected to be transported to Cameroon.
However, the Navy said, the boats, as well as the products, were taken into custody.
Ayo-Vaughan said,”Forward Operating Base (FOB) Bonny in Rivers” also intercepted two wooden boats laden with about 400,000 litres of suspected stolen crude oil at Iwokiri.
The wooden boats and products, he said, were destroyed.
Similarly, he said, the Navy ship SOROH in Bayelsa intercepted a wooden boat laden with about 60,000 litres of suspected illegally refined AGO.
Subsequently, the boat and contents, he added was destroyed.

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FAAC: Federal, States, LGs Share N680.780bn May Revenue Allocation

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The Federation Account Allocation Committee (FAAC) has shared May 2022 Federation Revenue Allocation to the federal, states and local government councils to the tune of N680.783billion.
This is contained in a communiqué issued at the end of June 2022 FAAC meeting held in Abuja.
According to the communiqué, the N680.783billion total distributable revenue comprised distributable statutory revenue of N385.004billion, distributable Value Added Tax (VAT) revenue of N198.512billion and Electronic Money Transfer Levy (EMTL) revenue of N97.267billion.
In May, 2022, the total deductions for cost of collection were N36.996billion and total deductions for transfers and refunds were N186.672billion.
The balance in the Excess Crude Account (ECA) was $35.377million.
The communiqué confirmed that from the total distributable revenue of N680.783billion; the Federal Government received N229.563billion, the state governments received N241.824billion and the local government councils received N175.942billion.
The sum of N33.454billion was shared to the relevant states as 13percent derivation revenue.
Gross statutory revenue of N589.952billion was received for the month of May, 2022.
This was lower than the N635.037billion received in the previous month by N45.085billion.
From the N385.004billion distributable statutory revenue, the Federal Government received N185.197billion, the state governments received N93.934billion and the local government councils received N72.419billion.
The sum of N33.454billion was shared to the relevant states as 13percent derivation revenue.
In the month of May, 2022, the gross revenue available from the Value Added Tax (VAT) was N213.179billion.
This was higher than the N178.825billion available in the month of April, 2022 by N34.354billion.
From the N198.512billion distributable Value Added Tax (VAT) revenue, the Federal Government received N29.777billion, the state governments received N99.256billion and the local government councils received N69.479billion.
The Federal Government received N14.590billion; the state governments received N48.634billion and the local government councils received N34.043billion from the N97.267billion Electronic Money Transfer Levy (EMTL).
According to the communiqué, in the month of May, 2022, Companies Income Tax (CIT) and Value Added Tax (VAT) recorded considerable increases, Import Duty increased marginally while Petroleum Profit Tax (PPT) and Excise Duties decreased marginally.
Oil and Gas Royalties decreased significantly.

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FG Hands Over Licences To 57 Marginal Oil Field Investors, ‘Morrow

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The Federal Government has announced that the successful investors in Nigeria’s 57 marginal oil fields for the 2022 bid round would get their various Petroleum Prospecting Licences, tomorrow.
On May 31, 2021, the defunct Department of Petroleum Resources (DPR) issued letters of award to investors for the production of crude oil from 57 marginal fields.
Last January, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) announced that a total of 128 awardees emerged as successful bidders in the bid round and had made complete and part payments for signature bonuses in the oil fields.
It also disclosed at the time that 33 awardees did not make payments during the 45 days window given to successful bidders to pay the required signature bonuses for the oil fields and as such had lost their awards to suitably qualified reserve bidders.
Providing updates on the bid round in Abuja, last Saturday, the Chief Executive, NUPRC, Gbenga Komolafe, announced that the successful awardees would get their licences by Tuesday.
He said, “In fulfillment of the promise made early this year, the NUPRC will on Tuesday in Abuja, issue Petroleum Prospecting Licences to successful awardees of marginal fields in the 2020 bid round, pursuant to the provisions of the Petroleum Industry Act 2021.
“It will also unveil the implementation template for the host communities’ development trust for commencement of the provisions under Section 235 of the PIA, 2021, to positively impact against restiveness in the host communities.”
Komolafe said implementing the development trust would guarantee seamless operations, boost investors’ confidence and provide enabling environment for sustainable improvement of the country’s hydrocarbon resources.
“These will mark the conclusion of some of the most urgent and critical tasks inherited by the commission when it was inaugurated in October, 2021, after the signing into law of the PIA 2021,” he stated.
The commission had in March this year informed all participants in the 2020 marginal field bid round programme that it had put all necessary machinery in place to progress the bid round exercise to conclusion in line with the PIA 2021.
In furtherance of that resolution, the commission constituted an in-house work team to distill and address the concerns of awardees with a view to close out issues affecting multiple awardees per asset and formation of Special Purpose Vehicles by awardees in line with the respective letters of award.
“Awardees were therefore enjoined to avail themselves of the resolution mechanism provided by the commission in the overriding national interest,” Komolafe stated.
He added, “The successful coordination and resolution of the issues culminated in the emergence of the successful awardees that would be handed over licences on Tuesday.”

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