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Inflation: CBN’s Policies Hurting Nigerians, Printing More Money Is Dangerous – World Bank, Economists

World Bank and the Economist Intelligence Unit, EIU, have spoken out about Nigeria’s growing money supply. They are concerned that the CBN creating money to pay the federal government deficit in the face of declining income will hurt the economy.

Their warning comes at a time when the amount of money in circulation in the economy continues to increase.

Waterfield Luxury Hotel Akobo, Ibadan

The Central Bank of Nigeria has been urged to stop the printing of money as the currency supply in the economy reached a record high.

The advice is coming from the Economist Intelligence Unit, EIU and economists at the World Bank. The EIU in particular said the central bank might have been breaking the law which stipulates a limit beyond which it shall lend to the government.

The EIU noted that the ability of the CBN to tame Nigeria’s inflation through raising rates is being undermined by its continued direct financing of the budget deficit.

“Building credibility in the target rate (of inflation) has not been a priority in recent years. The continued printing of money at the same time as tightening policy would prevent effective control of the price level”

Nigeria has rules that limit how much lending the central bank should offer the government and there are statutes that forbid the government from reckless borrowing, but the EIU inferred that these rules have been contravened repeatedly. EIU added: “All prudential rules on the government borrowing through the (CBN’s) overdraft facility have long been broken”

The World Bank on its part says the Central Bank of Nigeria’s development finance intervention is fuelling inflation in the short term and weakening the ability of the apex bank to control inflation. In a new report titled the ‘Nigeria Development Update (June 2022): The Continuing Urgency of Business Unusual, the World Bank said, there is huge money in supply in Nigerian economy.

Currency in circulation has been on the increase in 2022, and when the current data is compared to N3.29 trillion at the start of the year over 0.62 per cent or N20.5billion have been added to the economy. Meanwhile, NNPC remittances to FG continue to decline.

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RECRUITMENT: Ready To Earn Extra Income, GAMUT Invites Applicants

Gamut Security and Escort Services Ltd

The Gamut Security and Escort Services Ltd is a company that offers security solutions such as protective, executive, farm site, construction and event security.

It seeks to fill vacancies for commission marketers who are ready to make extra income as side hustle. Full time security officers are also needed.

For the security officers, you must be a resident of Ibadan and possess minimum of school certificate or OND and be ready to start work immediately.

Waterfield Luxury Hotel, Akobo, Ibadan

Send your CV to gamutesctservices@gmail.com or find attached flyer for more details.

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Naira Losing Its Value, Dollar Heading To N1,000, Davido Laments Economic Implications

Waterfield Luxury Hotel, Akobo, Ibadan

Ace Musician, Adeleke David popularly known as Davido, has lamented economic implications of rising dollar against naira. He claimed that something needs to be done urgently to reverse the upward movement of the flunctuation in the forex market.

In a tweet on Tuesday, he said, “Dollar heading to 1k. Drastic action is needed.”

Banks had on Monday lamented scarcity of forex and warned their customers of some delays in accessing it.

Many Nigerians had also taken to Twitter to lament the hardship brought to them by the instability in forex market.

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$50m Deal Sealed With IFC By Lagos To Develop Bus Corridors In Abule Egba, Ile Epo

ate Government has sealed a $50million transportation deal with the International Finance Corporation (IFC) to develop two bus corridors between Abule-Egba-Command and lle Iwe-lle Epo.

The project is measuring eight kilometres and it is designed to ease the transportation challenges associated with the axis.

The state governor, Mr Babajide Sanwo-Olu disclosed this today.

According to him, “With the regular influx of people and businesses into Lagos state, our administration is constantly seeking ways of easing the transportation challenges that residents encounter by seeking developmental partnerships.

“To this end, the Lagos State Government is partnering with the International Finance Corporation (IFC) to develop two bus corridors within the Lagos state metropolis. This collaboration shall translate to increased access to public transportation and reduction in vehicle emissions in Lagos.”

Giving further details, the governor said: ” through this partnership, IFC shall be providing a $50 million local-currency loan to help Lagos finance, upgrade and operate two bus corridors, measuring eight kilometres, in the Abule-Egba-Command and lle Iwe-lle Epo communities, two of the most densely populated and congested parts of Lagos state.

“A big thank you to the IFC team, ably led by Ms. Linda Munyengeterwa, the Regional Industry Director of Infrastructure for Middle East and Africa for believing in, and keying into our T.H.E.M.E.S agenda. We hereby look forward to a mutually beneficial relationship.”

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IBEDC, EKDC Tell Customers To Prepare For Nationwide Blackout As Power Grid Collapses

The Ibadan and Eko Electricity Distribution Companies have told their customers to prepare for nationwide power outage as national power grid collapsed.

The national power grid which was announced to have collapsed yesterday, causing a nationwide outage as the entire system crashed due to the loss of 1,100 megawatts from a 3,700mw peak generation earlier recorded.

This was just as airline operators in Nigeria yesterday warned that they have only three days left to shut down operations over lingering scarcity of aviation fuel.

The Ibadan Electricity Distribution Company disclosed today via a release made available to ODUDUWA NEWS this afternoon, “the system was yet to pick up load, according to a grid operations report, which showed that just three Generation Companies (Gencos) were trying to restart, but were yet to generate any energy”.

According to the grid operation trend, of the active 25 Gencos on the grid, 19 were producing power as of 6am, when the grid had 3,867.60MW, but that began to reduce gradually until it dropped to 2,761.20MW by 10am after six Gencos went down, leaving just 13, before crashing to zero at 10.40 am.

It was learnt that at least 1,100MW was initially lost from the 3,867MW peak generation before the Gencos started shutting down.

The analysis showed that the affected plants included Azura-Edo IPP (Gas), which was generating 447MW earlier, and Shiroro hydropower, which had 300MW earlier and later went off. Trans-Amadi (Gas) lost 92MW, Alaoji NIPP (Gas) lost 75MW, while Ihovbor NIPP (Gas) lost 101MW.

As of today, the Transmission Company of Nigeria (TCN), which manages the power grid, had yet to comment on the immediate cause of the collapse, although, it was the first in the year.

The blackout had worsened throughout the country around 10:40am, after the national grid collapsed, with the Eko Electricity Distribution Company confirming the incident in a text message to its customers.

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JUST IN: Oyo Govt’s Arm Twisting Tactics May Cause Power Outage In Ibadan, Other Cities – IBEDC

The Ibadan Electricity Distribution Company IBEDC has claimed that the recent action of Oyo State Government to seal off its offices could be likened to an arm twist tactics that may cause power challenges to businesses and residents in Oyo State.

This was contained in a statement released and sent today to ODUDUWA NEWS by the Chief Operating Officer, Engr. John Ayodele as read in part:

“”The Management of Ibadan Electricity Distribution Company (IBEDV) Plc hereby informs its esteemed customers of the retaliatory and illegal action of the Oyo State Government over the issue of its huge indebtedness. The Oyo State Government on Wednesday 9 February 2022 commenced the sealing of our offices within the State over some suddenly contrived debts labelled revenue bills and personal income without due notification. This issue of revenue bills and personal income tax arising now is quite suspicious”, said Ayodele.

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FG finally lifts suspension on Twitter

The Federal Government has lifted the suspension of Twitter operations in Nigeria after approval by President Muhammadu Buhari

The decision was announced by the Chairman Technical Committee Nigeria-Twitter Engagement and Director-General National Information Technology Development Agency (NITDA), Kashifu Inuwa Abdullahi, CCIE.

Kashifu, in a statement in Abuja, said the approval was given following a memo written to the President by Minister of Communications and Digital Economy, Prof Isa Ali Ibrahim.

He said: “The Federal Government of Nigeria (FGN) directs me to inform the public that President Muhammadu Buhari, GCFR, has approved the lifting of the suspension of Twitter operation in Nigeria effective from 12am tonight, 13th January 2022.

“The approval was given following a memo written to the President by the Honourable Minister of Communications and Digital Economy, Prof Isa Ali Ibrahim.

“In the Memo, the Minister updated and requested the President’s approval for the lifting based on the Technical Committee Nigeria-Twitter Engagement’s recommendation.”

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Extortion: Commercial Drivers Set For Showdown With NURTW, Issues 2-Week Ultimatum To Lagos Govt

Commercial Drivers in Lagos, under the aegis of Self-Employed Commercial Drivers Association of Nigeria (SECDAN) have issued two-week ultimatum to the Lagos State Government to stop the National Union of Road Transport Workers (NURTW) and the Road Transport Employers Association of Nigeria (RTEAN) from extorting them.

SECDAN vowed that after the expiration of the ultimatum, it would be forced to use all existing peaceful means to encourage a change in the transport sector for other states to follow.

Lagos State Chairman, SECDAN, Alhaji Job Abifarin, in a statement on Tuesday said the NURTW and RTEAN agents were harassing and forcing each of its drivers to pay N30,000 to them on a daily basis.

Abifarin lamented that over the years, the activities of NURTW/RTEAN in Lagos roads had been discovered to be alien, illegal and as one that did not conform with any known economic logic or political explanation in the world.

“Even as we don’t want to comment on the existence and acceptability of the 2 organisations in the State, we believe that their role in the transport sector of the State should by now be seen as an embarrassment and unfortunate in Lagos State, the so called Centre of Excellence in the country and a Mega City in the world.

“Today, no one is unaware of the louts’ activities across all bus stops, and garages in the State. They are violent, they maim, they destroy, they have no respect or any regard to the laws of the State, they are irresponsible and very embarrassing to everything the Transport Sector represents to Lagos State.

“For record, drivers and owners in Lagos State today are frustrated and amazed of the annoying silence of the State Government to the glaring violent and illegal extortions of the Unions’ Agent in the State, even in the midst of the fact that most drivers do not belong to their Unions or are actually members of different Associations and or Unions,” he said.

According to Abifarin, in a situation where each commercial driver is made to forcefully pay over N30,000.00 daily to these unions and with no clear reasons or for which purposes, is painfully baffling and alien in a Mega City.

The chairman said the dangerous refusal of the state government to arrest the ugly trend and accept the fact that the operations and agents of the two unions had become an embarrassment to the image of Lagos State and a clog in the crusade to make Lagos a truly safe place for all businesses, is worrisome.

Abifarin challenged Governor Babajide Sanwo-Olu to take another look at the transport sector of the State economy and do a sincere and open assessment of what the touts of the two unions had become in the State today.

“Because of the silence of the government and due to our teeming members’ frustration and complains, we have resolved to sound out a clear warning signal to the Government and good people of Lagos State through a 2 Days Warning strike (today 13th December and tomorrow 14th December) and withdrawal of our vehicles from the roads starting first in the Ikorodu axis of the State.

“This action becomes more unavoidable due to the activities of various Agencies of Government, who seem to always give the unions more room to further continue their illegal activities with violence and of no fear or regard to any existing law(s) in the State,” he said.

“We hope to see a sincere and radical masses-friendly change in the Lagos State Transport Sector in the next two weeks, failure of which we dare say may create a serious issue in the State as we will be left with no choice than to explore all existing peaceful means to encourage a change in the Sector for other States to follow,” he added.

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Gov Sanwo-Olu Set To Commission 32-Metric Ton Per Hour Rice Mill In Lagos

The Lagos State Governor, Babajide Sanwo-Olu has inspected progress work at Imota Rice Mill.

This was contained in a statement signed by the Governor and made available via his Facebook account as read in part:

“I inspected the progress of work at Imota Rice Mill today and I’m happy to announce that barring any exigency, the 32-metric ton per hour Rice Mill will start production before the end of the first quarter in 2022.

“We are working to meet the deadline for the pre-production test run and working to see how quickly we can ramp up work on the storage facility, which has the capacity to take production of up to three to six months. There are 16 silos which have a combined capacity of 40,000 metric tons.

“I have been assured that construction work on the storage facilities would be completed in one month, after which major cleanup would commence across the site in preparation for production test run.

“We are very excited with how far we have gone on the construction and we believe all the contractors are working collaboratively to ensure the deadlines set are met”.

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High Food Prices To Push Six Million Nigerians Into Poverty, World Bank Insists

The continuous increase in the process of goods and services which was recorded within a one-year period covering June 2020 and June 2021 may force additional six million Nigerians into poverty, the World Bank has said.

The Bank said this in a new report titled ‘COVID-19 in Nigeria: Frontline Data and Pathways for Policy.’

In recent times, the skyrocketing food prices in major cities across the country are being reported with deleterious effects on household budgets.

The series of insurgencies bedeviling the country, especially in the Northern part and pockets of dissentions in some states where most of the essential food items for the nation come from, have also adversely contributed to the ill reports about the astronomic rise for a range of food materials

A visit to Dutse Market in Abuja showed that a cup of palm oil that was sold for N150 now sells between N220 and N250, while a cup of vegetable oil that was sold for N150 now sells for N280.

Other commodities such as Indomie noodles carton now sell for N4,600 (Super pack) against the initial price of N2,400 while a carton of chicken flavour now sells for N2,900 against the previous price of N1,600.

Currently, a pack of the super pack now sells for N120 while a pack of chicken flavour now sells for N100.

A sachet of milk which was sold for N50 now sells for N70, while a kilo of goat and beef previously sold between N1,400 and N1,500 now sell for N2,500 and N2,800.

A trader, Jennifer Imoh, who sells groceries and provisions in the Dutse market lamented, “Before, we used to buy a bag of milk for 3,500, now it is N11,000.

“If you want to buy noodles, a carton goes for N850, but now, we are buying it for N2,500. The loaf of bread that I used to buy from bakers at N200, now sells for a double price because of the high cost of the flour, milk and sugar.”

The World Bank in its report said that the rise in prices underscores the need for short-term policies to support welfare.

The report reads, “The rise in prices witnessed between June 2020 and June 2021 alone could push another six million Nigerians into poverty, with urban areas being disproportionately affected. This underscores the need for short-term policies to support welfare.

“The simple simulations suggest that the share of Nigerians living below the national poverty line could have increased from 40.1 per cent to 42.8 per cent, due to the food price inflation witnessed between June 2020 and June 2021.”

The report further disclosed that there has been low coverage of social protection programmes during the COVID-19 crisis in Nigeria.

For instance, it added that only just four per cent of households had received support from social safety net programs in the form of direct cash transfers from federal, state, or local government between March 2020 and March 2021.

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