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Category: Business News

Air travel fare rises 7% to N78,778 in October

The National Bureau of Statistics, NBS, yesterday, said average air travel fare grew year-on-year (YoY) by 7.6 percent to N78,778 in October 2023 from N73,198 in October 2022. Disclosing this in its Transport Fare Watch for October 2023, the NBS also said fare paid by commuters of bus, motorcycle  (Okada) per drop; and water way passenger […]

Rising inflation and low economic growth in Nigeria will push a further 2.8 million people into poverty by 2023’s end, the World Bank has disclosed. This is based on a report titled, ‘Macro Poverty Outlook: Country-by-country Analysis and Projections for the Developing World,’ released recently. The Washington-based bank said, “By the end of 2023, the rise in inflation and low economic growth will have contributed to an increase of 2.8 million people in poverty (y-o-y), a 0.4 percentage points bump to 37.5 per cent of the population.” It noted that Nigeria’s high inflation reached a17 17-year high of 24.1 percent (y-o-y) in July 2023, partly reflecting surging food prices and the temporary impact of the removal of the fuel subsidy. It stated that a cumulative 725 basis points hike in the monetary policy rate since May 2022 has had little effect on reining in inflation due to clogged transmission channels, also weakened by direct credit allocation by the central bank, and the continued monetization of the fiscal deficit. The global bank further declared that federal fiscal deficit has risen to 63 per cent higher between January and May 2023 than in the same period in 2022, due to increasing interest payments, higher capital spending ahead of the elections, and the continuous large cost of the fuel subsidy. The impact of this is set to spike public debt to 45 per cent of GDP and keep debt service above total revenue in 2023. It said. “The fiscal financing need and the devaluation of the naira are expected to push the public debt to 45 per cent of GDP and keep the debt service above total revenues in 2023. “The current account balance (CAB) recorded a surplus of 2.2 per cent of GDP in Q1 2023, driven by lower imports and income outflows. However, the small CAB surpluses and capital flows since 2022 have been insufficient to increase foreign reserves, as oil export FX flows to CBN contracted, likely as a result of the direct crude sale-direct fuel purchase arrangements.” The Bretton Woods Institution further predicted that future economic growth in the country will depend on the continued implementation of macro-fiscal and inclusive structural reforms. It stated the current reforms of the government will boost economic growth to an average of 3.4 per cent in 2023-2025. It also expects inflation to begin to moderate by 2024. The World Bank added, “The share of Nigerians living below the international poverty line is expected to peak in 2024 at 38.8 per cent before beginning a gradual decline, as inflation cools down and economic growth picks up. Targeted measures, including cash transfers, could mitigate short-term adjustment costs to the poor and vulnerable and mitigate their risk of falling into intergenerational poverty traps.” Earlier in June, the bank disclosed that inflation pushed an estimated four million people into poverty between January and May 2023. Inflation has since risen to 27.33 per cent as of October 2023.

The Minister of Works, David Umahi, has revealed that the government needs $35bn to kick start the construction of concrete roads nationwide. He also stated that the moribund Ajaokuta steel company will provide 16 per cent of the steel material needed for the construction of Nigeria’s roads in concrete pavement. This far-reaching resolution was the […]

World Bank says inflation will push 2.8million Nigerians into poverty

Rising inflation and low economic growth in Nigeria will push a further 2.8 million people into poverty by 2023’s end, the World Bank has disclosed. This is based on a report titled, ‘Macro Poverty Outlook: Country-by-country Analysis and Projections for the Developing World,’ released recently. The Washington-based bank said, “By the end of 2023, the […]

Nigeria, Germany sign $500m renewable energy, gas deals

In a significant move to strengthen economic ties, Nigerian and German companies sealed two pivotal agreements in Berlin on Tuesday. The accords valued at $500m, encompass a renewable energy pact and a gas export deal, marking a milestone in bilateral cooperation, the Presidential spokesperson, Ajuri Ngelale said in a statement. Union Bank of Nigeria and […]

ZENITH BANK HOLDS THIRD EDITION OF TECH FAIR, FEATURES TOP TECH EXPERTS

The Third Edition of the Zenith Tech Fair, tagged “Future Forward 3.0”, is set to be held on Wednesday, November 22 and Thursday, November 23, 2023, at the Eko Convention Centre, Eko Hotels & Suites, Victoria Island, Lagos, from 8.00 a.m. to 6.00 p.m. daily. The Two-Day fair will showcase leading technology innovations that cut […]

FG lost $16tn to gas flare in 10 years – Report

The Federal Government has lost an estimated $16tn to natural gas flaring in 10 years, The Energy Institute’s 72nd edition of the ‘Statistical Review of World Energy 2023’ said the amount was lost from 2012 to 2022. A breakdown of the statistics showed that upstream and downstream oil and gas firms operating in the country […]

Eni suspends World Bank’s arbitration on OPL 245 dispute

Italian oil company, Eni, have temporarily halted arbitration regarding an oilfield dispute with the Nigerian government, buying time to discuss the conversion of a license from prospecting to one for production, sources with direct knowledge of the matter told Reuters. Eni confirmed the suspension of the arbitration at the World Bank’s dispute settlement body regarding […]

Again, CBN postpones MPC as inflation soars

The Central Bank of Nigeria has again postponed the meeting of its monetary policy committee despite the surge in inflation. A report by Bloomberg on Monday which quoted the CBN’s Director of Corporate Communications, Dr Isa Abdulmumin, said, “MPC is not holding” a meeting this week in a text message response. The meeting, which was […]

Banks income tax rises 132% to N311bn in 9 months

At the backdrop of the sharprise in their profit this year, leading commercial banks in the Nigeria have reported 132.1 percent rise in tax remittances to government in the nine months (9M’23) of this year. The banks paid a total of N311.347 billion income tax during the period as against the N134.127billion they paid during […]

Protesting tanker drivers threaten breakaway from NUPENG

The Petroleum Tanker Drivers arm of the Nigeria Union of Petroleum and Natural Gas Workers, on Sunday, threatened to pull out of NUPENG. PTD declared that it would pull out of the oil union if NUPENG’s National President, Williams Akporeha, and its General Secretary, Olawale Afolabi, failed to resign from their positions. The tanker drivers […]