Nigeria: Press focuses on NLC’s warning against proposed fuel price hike, others

APA – Lagos (Nigeria)
The report that the Nigeria Labour Congress on Monday warned that its members will commence a nationwide strike without any formal notice if marketers increased the pump price of petrol without concluding the ongoing negotiations dominates the headlines of Nigerian newspapers on Tuesday.
The Punch reports that the Nigeria Labour Congress (NLC) on Monday warned that its members will commence a nationwide strike without any formal notice if marketers increased the pump price of petrol without concluding the ongoing negotiations.
The NLC President, Joe Ajaero, admonished the Federal Government to stop the falling value of the naira.
The threat by the organised labour followed hints by oil marketers, on Sunday, that the cost of petrol would rise to between N680/litre and N720/litre in the coming weeks should the dollar continue to trade between N910 and N950 at the parallel market.
The marketers said dealers seeking to import PMS were being forced to put the plans on hold due to the scarcity of foreign exchange to import the commodity.
The warning came barely one week after the local currency crossed the N900/dollar ceiling, with the naira selling at over N945/dollar at the parallel market on Friday.
Oil dealers said the CBN Importers and Exporters official window for foreign exchange, which boasts of a lower exchange rate of about $740/litre, had remained illiquid and unable to provide the $25m to $30m required for the importation of PMS by dealers.
The newspaper says that following the tumbling of the naira at the parallel market in recent times, the Central Bank of Nigeria has started introducing foreign exchange intervention measures aimed at clamping down on currency speculators in the foreign exchange markets.
Acting Governor of the CBN, Folashodun Shonubi, made the disclosure to State House correspondents on Monday at the Presidential Villa after briefing President Bola Tinubu on what the bank was doing to halt the slide of the naira.
He said Tinubu expressed his concern over the effects of the recent developments in the foreign exchange market, particularly on average citizens.
According to Shonubi, the volatility of the naira in the parallel market is not solely driven by economic factors, but also speculative demand.
The apex bank governor said while he would not disclose specific details of the proposed intervention measures, he warned speculators that the proposed measures could potentially lead to significant losses for them.
He said the primary purpose of his presence at the Presidential Villa was to reassure the President that the CBN was taking decisive action to address the concerns raised.
He expressed confidence that the measures being implemented would yield positive outcomes within a few days.
According to him, the CBN’s ultimate goal is to create an efficient and reasonable operating environment that minimises the negative impacts on the average Nigerian’s life.
The Guardian reports that as Nigerians await the July consumer price index (CPI) report, which is due today, the report of the June food and transport prices confirms that citizens have been pushed to the edge.
According to the National Bureau of Statistics (NBS), the average fare paid by commuters for intra-city travel per drop increased by 120.63 per cent from N582.61 in June 2022 to N1,285.41 in June 2023 and 97.88 per cent month-on-month, rising from N649.59 in May 2023 to N1,285.41 in June 2023.
In another category, the average fare paid by commuters for intercity per drop rose to N5,686.49 in June 2023, indicating an increase of 42.09 per cent on a month-on-month basis compared to N4,002.16 recorded in May 2023.
On a year-on-year basis, the fare rose by 55.25 per cent, from N3,662.87 in June 2022.
The NBS also reports that Bauchi state recorded the highest bus journey fare within the city (per drop constant route) in June 2023 with N1,700, followed by Jigawa with N1,570.
“On the other hand, Imo State recorded the least with N710, followed by Adamawa with N840,” NBS said.
It added: “For intercity bus travel (state route charged per person fare), the highest fare was recorded in Abuja with N8,500, followed by Anambra with N8,000.”
For air travel, the average fare paid by air passengers for a specified single journey increased by 4.93 per cent from N74,948.78 in May 2023 to N78,640.54 in June 2023.
On a year-on-year basis, the fare rose by 40.22 per cent, from N56,082.64 in June 2022.
It stated that the average transport fare paid on okada transportation was N618.52 in June 2023, which was 33.14 per cent higher than the rate recorded in May 2023 (N464.55).
On a year-on-year basis, the fare rose by 48.34 per cent when compared with June 2022 (N416.97).
The newspaper says that MTN has agreed on a deal to sell a stake in its fintech business to Mastercard for an undisclosed sum, in line with the operator’s long-term goal of raising cash from asset sales and its financial services platform.
In its H1 earnings announcement, the South Africa-based company said it signed a memorandum of understanding (MoU) with Mastercard for the latter to make a minority investment into its fintech business, based on an enterprise valuation of around $5.2 billion.
MTN previously targeted a valuation of between $5 billion and $6 billion for the unit.
Chief Executive Officer of MTN, Ralph Mupita, said it chose MasterCard following a bespoke process to identify potential minority investors for the unit and it expects to sign a definitive agreement in the very near term, following customary due diligence.
According to Mupita, the commercial agreements executed with Mastercard will support the growth and profitability of MTN’s fintech services, such as payments, remittances, and the development of technology infrastructure
He said: “As a globally recognised brand and a leading international payment systems company, Mastercard will enable Mobile Money (MoMo) consumers to pay globally and MoMo businesses to digitise their payments and accept payments beyond MoMo users. This will enable Group Fintech customers to participate in the global economy.”
According to Mupita, MTN’s active MoMo users were flat in the current reporting period at 60.5 million, due to the effects of the cash shortages in the first quarter and a strategic shift in focus to wallet consumers in Nigeria; as well as a user base clean up in Côte d’Ivoire.
The transaction comes as MTN Group is expanding its fintech business, putting the telecoms company on a solid footing, as it prepares to separate its financial services division.
Mastercard has also invested $100 million in MTN rival Airtel Africa’s mobile money unit.
For MTN, the sale complements its Ambition 2025 project unveiled two years ago, which outlined a strategic repositioning to separate infrastructure assets and platforms like fintech to attract third-party capital, investments and partnerships.
GIK/APA