Category Economy/Business

By Constance Athekame

The Nigerian Electricity Regulatory Commission (NERC) has transferred regulatory oversight of the electricity market in Kogi State to the Kogi State Electricity Regulatory Commission (KSERC), as announced on its website on Wednesday in Abuja.

This decision aligns with the amended Constitution of the Federal Republic of Nigeria (CFRN) and the Electricity Act 2023 (Amended), decentralising electricity regulation in Nigeria.

According to the Electricity Act 2023, NERC will retain its role as central regulator, overseeing inter-state/international generation, transmission, supply, trading, and system operations.

“States are now empowered to regulate intrastate electricity markets, provided they establish the necessary legal and institutional frameworks.

“The Government of Kogi State has complied with the required conditions, notifying NERC and requesting the transfer of regulatory oversight.

“In response, NERC’s transfer order includes the following provisions: Abuja Electricity Distribution Company (AEDC) must incorporate a subsidiary (AEDC SubCo) within 60 days from September 13 to handle intrastate supply and distribution of electricity in Kogi.

“AEDC SubCo must obtain a license from KSERC for intrastate supply and distribution of electricity.

“All transfers must be completed by March 12, 2025.”(NAN)(www.nannews.ng)

Edited by Chioma Ugboma and Abiemwense

By Lucy Ogalue

The Federal Government of Nigeria has reiterated commitment to empowering consumers through enhanced standardisation practices, and ensuring access to safe and quality goods and services.

Dr Doris Anite, Minister of Industry, Trade and Investment, who made the commitment, commended the Standards Organisation of Nigeria (SON) for its tireless efforts in consumer protection at the African Day of Standardisation celebration in Abuja on Tuesday,

Anite, represented by Permanent Secretary Amb. Nura Rimi, emphasised the significance of adopting and enforcing standards to safeguard consumer rights across Africa.

“As we mark the 11th day of standardising, let us reaffirm our commitment to empowering consumers through effective standardisation strategies and foster a culture of quality consciousness.

“Africa, the world’s fastest-growing consumer market, is projected to see its consumer base rise from 1.2 billion to 1.7 billion by 2030, with consumer expenditure expected to grow from 1.4 trillion dollars in 2015 to 2.5 trillion dollars by 2030.

“However, the continent faces challenges such as misleading advertisements, unsafe products, and inadequate information, impacting consumer safety and confidence,” she stated.

She explained that the Nigerian government had implemented policies and programmes to establish an enabling environment for consumers, aligning with President Bola Tinubu’s global agenda.

“These initiatives have streamlined bureaucratic processes, eliminated bottlenecks, and improved consumer welfare and awareness.

According to Anite, standardisation plays a vital role in ensuring products and services meet international quality benchmarks, fostering consumer trust, and promoting market access.

“It also drives innovation by providing frameworks for advanced technologies and best practices.”

SON’s Director-General, Dr Ifeanyi Okeke, reiterated the organisation’s commitment to creating an enabling environment for consumers, promoting their rights to safe quality goods and services through standardisation.

“Nigeria remains a major player in commerce and trade across the African continent, providing the much-needed standardisation platform for manufacturers and consumers alike.

“By working together, Nigeria can mitigate the adverse effects of trade imbalances and ensure consumers have access to quality goods and services,” Okeke stated.

The News Agency of Nigeria (NAN) reports that the event attended by heads of government parastatals, agencies, and stakeholders, underscored the importance of collaboration in maintaining standardisation in the country. (NAN)

Edited by Abiemwense Moru

By Lucy Ogalue

The Federal Ministry of Industry, Trade and Investment, through its Weights and Measures Department, has reaffirmed its commitment to curbing the shortchanging of customers in the country.

The Permanent Secretary of the ministry, Amb. Nura Rimi, said this when he led a team of directors and senior officials on the ministry’s annual surveillance exercise on Thursday in Abuja.

The permanent secretary was represented by Mr Mohammed Abbas, Director of Reform, Coordination and Servicom of the ministry.

The News Agency of Nigeria (NAN) reports that the team visited some selected petrol stations and shops within the city centre.

Among the  businesses visited by the team were NNPC Mega Station Zone 1, AA Rano Filling Station, Shoprite Lugbe, and Sahad stores Area 11.

Rimi  highlighted the critical role of the exercise in ensuring compliance with standards and protecting consumers.

“This annual surveillance is designed to ensure that consumers get value for their money. We aim to ensure that fuel stations and department stores adhere to safety, standard, and customer protection measures.

“This initiative aligns with the current administration’s “Renewed Hope” agenda, which prioritises consumer welfare and business integrity,” he said.

He commended the NNPC mega station for maintaining high standards.

He urged other fuel stations to emulate their practices, noting that all the pumps were in good working condition and met the expected standards.

Also speaking, the Director of Weights and Measures, Mr Olajide Bamidele, while restating the importance of the exercise, expressed delight at the compliance rate of the facilities visited.

“Honestly, it seems as if we are really coming up in Nigeria. Of all the places we visited today, we recorded about 95 per cent compliance.

“Except the one we saw at Shoprite along Lugbe road, where one of the scales was not good, and we decided to seal the place.

“So when the machine is ready for calibration or when it must have been calibrated, we will go back and unseal it,” Bamidele said.

NAN reports that at the Sahad stores, Area 11, some 50 kg, 10 kg, and 5 kg bags of foodstuff weighed okay, and some even exceeded the required measurements.

The weights and measures director advised business owners to maintain compliance and ensure that customers got value for the money they pay.

He commended the NNPC,  and the AA Rano LPG dispensing section for meeting the required standard benchmark.

“We have already confirmed here that the certificate is okay. It will expire this month, and they are already processing another one.

“We checked the scale. I think they need a little calibration, but at least the tolerance is still okay, so they do not have any problem with us, and we confirm compliance with standards.

Bamidele said that although the headquarters conducted the surveillance annually, the ministry’s officers were deployed regularly nationwide to conduct random inspections.

He expressed optimism that the ministry will embark on similar visits nationwide in the coming week.

“These unannounced visits ensure that fuel stations and shops nationwide remain compliant year-round.

“The Weights and Measures department is critical in ensuring that businesses operate transparently and fairly, promoting consumer confidence in the market.

“Anyone found guilty of defrauding consumers is held accountable, just like the scale that was sealed at the Shoprite today,” he said.

He said that surveillance was essential for fairness, accuracy, and standards.

The director urged consumers to report any case of non-compliance to any Weights and Measures department close to them for adequate action. (NAN)

Edited by Kadiri Abdulrahman

By Salif Atojoko

President Bola Tinubu has welcomed the latest report on the country’s trade balance by the National Bureau of Statistics (NBS).

According to the report, Nigeria recorded another trade surplus in the second quarter of 2024, hitting N6.95 trillion, which is 6.60 per cent higher than the N6.52 trillion surplus recorded in the first quarter.

The latest NBS report came just days after the country recorded almost 100 per cent oversubscription of its first 500 million dollars domestic bond and half-year revenue of N9.1 trillion.

In a statement by Mr Bayo Onanuga, his Special Adviser, Information and Strategy, the President said the latest report underscored the increasing positive shifts in the economy over the last year.

“President Tinubu expresses confidence in the reforms his administration is pursuing and believes they will create a more robust economy that will usher in a new era of prosperity for Nigerians.

“The NBS report reflects the country’s strong export performance in the second quarter.

“Although total merchandise trade in Q2 2024 stood at N31.89 trillion, a 3.76 per cent decline compared to the preceding quarter (Q1 2024), it marked a 150.39 per cent rise from the corresponding period in 2023,” said Onanuga.

The NBS reported that the Q2 surplus was essentially driven by exports to Europe, the United States and Asia.

It said total exports stood at N19.42 trillion, accounting for 60.89 per cent of the country’s total trade.

This represents a 1.31 per cent increase from N19.17 trillion in the first quarter and a 201.76 per cent surge from N6.44 trillion recorded in Q2 2023.

The report noted that the dominance of crude oil exports remained a key factor in this performance, contributing N14.56 trillion, or 74.98 per cent of total exports.

Non-crude oil exports, valued at N4.86 trillion, constituted 25.02 per cent of the total export value, with non-oil products contributing N1.94 trillion.

The report stated that strong export performance, particularly in crude oil, ensured Nigeria maintained a favourable trade balance.

In Q2 2024, European and American countries dominated Nigeria’s top export destinations.

Spain emerged as the largest export partner, receiving goods valued at N2.01 trillion, and accounting for 10.34 per cent of Nigeria’s total exports.

The United States followed closely with N1.86 trillion (9.56 per cent), while France imported N1.82 trillion of Nigerian goods, representing 9.37 per cent of total exports.

Nigeria’s other major export partners include India (N1.65 trillion or 8.50 per cent) and the Netherlands (N1.38 trillion).

“Generally, the economic indicators, which were very low when President Tinubu assumed office last year, are turning positive.

“The government will continue to consolidate on the gains of the reforms as more fiscal and tax policy reforms already embarked upon by the administration come to fruition.

“President Tinubu is determined to confront the inhibitions that have stunted the growth and development necessary to unlock the country’s full potential,” said Onanuga. (NAN) 

Edited by Abiemwense Moru

By Joan Nwagwu

The Independent Media and Policy Initiative (IMPI), has expressed support for plans by the Federal Government  to engage private firms to operate Warri and Kaduna refineries when they come on stream.

Mr Niyi Akinsiju, Chairman of IMPI said this while addressing newsmen in Abuja on Wednesday.

He said  that removal of subsidy on petroleum products was what was needed at this time to rescue the country’s economy.

He appealed to Nigerians, especially the leadership of the organised labour to beam attention to governance at the state and local governments levels,  where more resources are now being  allocated.

He  said that the group was in support of the plan by the government to engage the private sector in the management of the two  refineries presently undergoing rehabilitation.

According to him, the Nigerian National Petroleum Company Limited (NNPCL),  recently invited companies to bid for operations and maintenance deals for the two  refineries.

In a public notice on its official X handle, the national oil company explained that the move will help ensure reliability and energy security for the country.

Akinsuji said that under the prevailing economic circumstances, the government has no business in the petroleum refining business.

“The refining business is a highly specialised form of venture. I think about two weeks ago, we saw a publication by the NNPCL requesting companies which have capacity to manage the refineries to apply.

“When those refineries are fully rehabilitated and delivered it will be naive for the government to still insist that products of the refineries should be sold at subsidised price,”he said.

He said that it was the policy of subsidy that killed the domestic refineries in the past.

According to him,the petroleum refinery produces so many bi-products other than petrol  which can help turn around the country’s economy for better.

He said the fact that a poll showed over 73 per cent of Nigerians opposing the policy of deregulation, does not diminish its potency as the only viable option to  ensure our economic recovery.

“In spite of the common knowledge that fuel subsidies were excluded from the second half of the 2023 budget, about 73 per cent of Nigerians interviewed in an opinion poll said they were dissatisfied with the removal.

“Nonetheless, this does not detract from the fact that fuel subsidies have become Nigeria’s equivalent of an economic weapon of mass destruction,” he said.

On  the skyrocketing prices of goods and services in the country,  especially food stuff, Akinsuji said that the situation cannot be attributed to a single factor alone.

According to him, a combination of factors such as insecurity, currency floating and low production capacity are  responsible for the present food crisis.

He  said that the allusion that the removal of fuel subsidy had led to the current food crisis may not be entirely correct.

He said that the group’s findings showed that fuel, also known as Premium Motor Spirit, constitutes an insignificant proportion to the cost elements affecting prices of goods in the country.

Akinsuyi said that the depreciation of the country’s currency has made our products  cheaper and more attractive to our neighbours, thereby, causing scarcity of such products.

“We should understand that no single factor is responsible for the rising cost of products in the country.

“In the case of rice, it is about insecurity, it is as a matter of fact the after effects of the devaluation of our national currency which has made our products cheaper.

“This has attracted high patronage from our West African neighbours who come to Nigeria to purchase rice,”he said.(NAN)

Edited by Joseph Edeh

By Kadiri Abdulrahman

President Bola Tinubu has expressed the commitment of the Federal Government to enhance the independence of the Office of the Auditor-General of the Federation (OAuGF) for effective service delivery.

Tinubu, who was represented by Sen. George Akume, Secretary to the Government of the Federation (SGF), said this on Wednesday in Abuja, at the public presentation of the OAuGF Strategic Plan 2024 -2028.

The president said that one of his administration’s goals was to enhance the independence of the OAuGF and empower it to perform its mandate seamlessly, towards deterring and detecting corruption in public institutions.

“Nigeria must win the fight against corruption. It is an existential problem that requires that all hands are on deck, in collaboration to ensure success.

“This is to ensure that the resources of the nation are deployed for the well-being of the present generation without hindering the aspirations of future generations of Nigerians,” he said.

He commended the OAuGF for developing a five-year strategic plan to promote public accountability and transparency in federal ministries, departments and agencies.

“The strategic plan has taken cognizance of the National Anti-Corruption strategy 2022 to 2026 action plan, which will ensure that endemic corruption is tackled head on.

“I am aware of the administrative and financial constraints faced by the OAuGF.

“I want to assure you that all necessary legislative processes will soon be concluded on the Federal Audit Service Bill, which is now before the Senate.

“I will not hesitate to sign it into law. This will underscore my determination to ensure the independence of this institution,” he said.

The AuGF, Mr Shaakaa Chira, said that the strategic plan was designed to contribute to the Federal Government’s agenda to stem the tide of corruption.

Chira said that it would also help to reduce waste and revenue leakages to the barest minimum, as well as guard against diversion of public resources.

“It will help to improve governance by holding public office holders accountable without fear or favour, through the delivery of high quality and timely audit reports,” he said.

Chira said that the plan would achieve an enhanced independence and mandate of the OAuGF and reduce mismanagement of public funds through stronger follow-up of audit recommendations.

He said that the strategic plan would also help to improve financial reporting in the public sector and present the OAuGF as a model institution.

“Let me assure you that OAuGF will ensure full implementation of the goals encapsulated in the strategic plan.

“We will put in place measures that will ensure a cultural shift and a new orientation in the way the management and staff of the OAuGF perform their roles,” he said.

He called for a truly independent OAuGF and an enhanced budgetary allocation to the office.

Also speaking, the Chairman, Public Accounts Committee of the House of Representatives, Rep. Bamidele Salam, commended the OAuGF for putting the strategic plan together.

Salam said that the office, which was vacant for about one year, had started living up to expectations.

“The office of OAuGF was vacant for more than one year, and there are deficits in the submission of annual reports.

“We were dealing with the 2019 report in 2024, but he has now submitted the 2020 report and part of the 2021 report.

“Audit work is one of the most difficult jobs anyone can be called upon to do in Nigeria because there is a lot of resistance,” he said.

Salam said that the OAuGF should always ensure that scarce resources are put to the best of use.

“We are operating a budget where we use 75 per cent of our revenue to service debt.

“The question is, to what extent has the debt impacted the quality of life of the average Nigerian?

“The government is asking ordinary Nigerians to make sacrifices. What are the political elite doing to also shed some of their weights?

“The only way to ensure that is through an effective audit system. Both the pre-expenditure and post-expenditure audit are important,” he said.

He called for a truly independent Office of the Auditor-General of the Federation. (NAN)

Edited by Joseph Edeh

By Salisu Sani-Idris

President Bola Tinubu says his administration is restoring confidence in Nigeria economy through measures aimed at reducing inflation, stabilising the foreign exchange market, and improving fiscal management.

Tinubu, represented by his Vice, Kashim Shettima, gave the assurance on Tuesday at the 17th Annual Chartered Institute of Bankers of Nigeria (CIBN) Banking and Finance Conference held in Abuja.

He described theme of the CIBN Conference, ‘Accelerating Economic Growth and Development: The State of Play and the Way Forward,’ as timely and imperative.

The President noted that the conference came at a time the nation was grappling with interrelated challenges.

He identified the challenges as, high inflation, rising costs of living, unemployment, infrastructure deficits and effects of global economic shifts.

Tinubu observed, however, that the challenges also present opportunities for growth and development.

In addressing the challenges, the President said that the administration had taken bold but painful steps to reform the macroeconomic environment.

“Though painful in the short term, the removal of fuel subsidies is designed to free up budgetary resources for critical investments in infrastructure and social services.

”The adjustment of the monetary policy rate, a move aimed at curbing inflation and fostering a more market-oriented exchange rate system,” he said.

Tinubu also noted that his administration was committed to strengthening infrastructure development in the ongoing bid to grow Nigeria’s economy.

“We are committed to upgrading Nigeria’s infrastructure to support economic growth.

” We are investing in roads, railways, and energy projects through public-private partnerships to reduce transportation costs and improve market access,” he said.

He added that the administration was prioritising the digital economy, to drive innovation and enhance financial inclusion.

” We are expanding broadband penetration and encouraging the growth of tech startups through initiatives such as the Digital Nigeria program.

” For example, we currently train three million Nigerian youths in digital technology and essential skills and then deploy them to innovation hubs.

“These efforts are designed to create jobs, increase productivity, and make financial services more accessible to Nigerians in all corners of the country.

” It is essential to state that we are committed to achieving a 70 per cent digital literacy level by 2027 through innovative approaches in delivering initiatives, continuous collaborations and stakeholder engagement,” he said

The President called for collaboration across all sectors, including the government, private industry, and civil society organisations.

” To achieve sustained economic growth, we must intentionally align our policies and actions with the changing global landscape.

“The government is committed to implementing reforms to enhance macroeconomic stability, reduce inflation, and support infrastructure development.”

Tinubu expressed hope that the conference would provide a platform for the sharing of ideas, exchange of knowledge, and exploration of innovative solutions to the challenges bedevilling the country.

“The conversations during this event will allow us to dissect the critical problems affecting our financial system and economy, identify growth opportunities, and collectively shape the future of banking and finance in Nigeria,” he added.

Earlier, President/Chairman of CIBN, Prof. Pius Olanrewaju, called for urgent introspection on Nigeria’s economic challenges, stressing the need for innovative solutions.

“We are on a journey to economic growth and prosperity,” Olanrewaju stated, acknowledging however that “the current challenges are things of concern.”

He emphasised that while the Central Bank of Nigeria has introduced several monetary policies to address the issues, their success hinges on “the professionalism and patriotism of operators in the financial services sector.” (NAN) (nannewsngr.com)

Edited by Rotimi Ijikanmi

By Lucy Ogalue

The Federal Government has granted UTM Offshore Limited a licence to construct a 2.8 million tonnes per annum (MTPA) Floating Liquefied Natural Gas facility.

The Minister of State, Petroleum Resources (Gas), Mr Ekperipe Ekpo, said this during the issuance of the licence to the company in Abuja.

The News Agency of Nigeria (NAN) reports that the Chief Executive, Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Farouk Ahmed, presented the licence to the company.

According to Ekpo, this licence marks a historic milestone as it will be the first floating LNG facility in Nigeria, aimed at boosting the country’s gas production and utilisation.

“This is in line with the mission of President Bola Tinubu to grow gas production, distribution, and utilisation.

“In line with the Decade of Gas Initiative, we are looking at gas driving the economy of this nation come 2030. We are going to achieve that.

” I salute NMDPRA for due diligence, and I salute the CEO of UTM LNG, for the bold step him and his team have taken to bring to work what we are going to celebrate today.

“I believe that after this presentation and celebration, all other things that need to be done to make sure the dream of today is realised tomorrow will be done,” he said.

Ekpo said that  the Federal Government was committed to providing a conducive environment that would ensure realisation of its dream of increasing gas production to 12 billion cubic feet by 2030.

Earlier , the NMDPRA Chief Executive said that the project,  located offshore Akwa Ibom State in OML 104, would process 324 million standard cubic feet per day (MMSCFD) of natural gas.

Ahmed said that the project, initially designed for a capacity of 1.2 MTPA, UTM Offshore upgraded the facility’s scope to meet rising global LNG demand, resulting in the increased capacity of 2.8 MTPA.

According to him,  the project aligns with the main aspirations of the PIA 2021, which includes the expansion of Midstream Gas Facilities in Nigeria.

” It also aligns with the targets of the Decade of Gas Programme and other Gas Expansions projects of the current administration.

“It is projected to be commissioned in the year 2028. The products from the project include LNG, LPG, and condensate,” he said.

Ahmed reaffirmed the NMDPRA’s commitment to providing guidance and oversight for the project’s successful implementation while also ensuring it complied with all regulatory requirements throughout its lifecycle.

Responding , the Managing Director, UTM Offshore, Julius Rone, thanked Tinubu and the NMDPRA for their support in ensuring the issuance of the licence..

Rone said that this project had a capacity to bring into the domestic market 500,000 metric tonnes of LPG to support the domestic market per annum.

“Nigeria requires over two million tons per annum, so we are importing LPG for the domestic market, and everybody is paying expensive prices for LPG.

“We are not going to export it. We are going to use it to support the domestic market; it will reduce the pressure on forex and will drastically reduce the price of cooking gas,” said.

According to him, the first gas supply from the multi-billion Naira project is expected to be delivered in the first quarter of 2029. (NAN)

Edited by Kadiri Abdulrahman