APA – Lagos (Nigeria)
The Guardian reports that as inflation bites further, mostly from the effects of subsidy removal on the economy, there are concerns about the Federal Government’s ability to sustain its deregulation stance, especially as it considers maintaining a threshold for fuel price in order to check public outcry.
Although President Bola Tinubu yesterday declared that he is not contemplating a reversal of the decision which removed petrol subsidy in the country, insiders note that public outcry and protests by Labour Unions may force the government to reconsider its decision.
There were mixed feelings of worry, frustration and even disbelief yesterday when the National Bureau of Statistics (NBS) released the July inflation data, which pegged the headline inflation at 24.08 per cent, the highest in about two decades.
The disbelief is far from whether the over 100 basis point rise is real. Rather, it points to the opposite – that the sharp speed is slower than what Nigerians expected to see and lags behind market reality.
From May 29 when the age-long fuel subsidy was removed, the cost of transportation has risen by over 200 per cent in some states.
The Guardian reported that transportation increased by an average of 120.6 per cent year on year as at June.
Staple food items also increased sharply in the past three months. For instance, rice has increased by approximately 27 per cent compared to the pre-subsidy removal era.
Bread, another staple food, had also seen an increase of over 20 per cent while beans, tomatoes and other items have varied degrees of upward shift in prices.
Experts, including a former statistician general of the country and head of NBS, Yemi Kale, had predicted at least 30 per cent headline inflation on account of subsidy removal.
The newspaper says that the Nigerian Government has filed an application before a Federal High Court, Lagos, seeking to withdraw the firearm charge against former Central Bank of Nigeria (CBN) Governor Godwin Emefiele.
At the last proceedings, Justice Nicholas Oweibo, who is sitting as a vacation judge, fixed yesterday for hearing of the applications filed by both parties in the suit.
The defence had prayed for quashing the charge for alleged failure of the prosecution to obey court order granting bail to the defendant.
The prosecution, on the other hand, opposed the request via a leave of court.
But at the resumed hearing, Director of Public Prosecutions, Federal Ministry of Justice, Mohammed Abubakar, informed the court of government’s decision to withdraw the charge, citing emerging facts and circumstances that needed thorough investigation.
Lead defence counsel, Joseph Daudu (SAN), in his response, argued that such a request under Section 174(1) and (3) of the 1999 Constitution (as amended) could not be made orally, but in a formal application that establishes the need for public interest, justice and prevention of abuse of legal process.
He insisted that the custody of his client should not be transferred from the Department of State Services (DSS) to a correctional facility in disobedience of an existing court order granting him bail.
The DPP disagreed, noting that Section 108 of the Administration of Criminal Justice Act of 2015 grants a prosecutor power to withdraw charges at any stage, without necessarily putting it in writing.
Justice Oweibo, subsequently, adjourned till tomorrow for judgment, adding that the new development is a “surprise” to the court.
The court had on July 25, 2023 granted Emefiele bail in sum of N20 million on a two-count charge of alleged illegal possession of firearms and ammunition. He was ordered to be remanded at the correctional centre pending perfection of his bail terms.
But the DSS rearrested the embattled banker after fighting off officers from the Nigerian Correctional service (NCoS) within court premises.
The Punch reports that the Federal Government may sell stakes in about 20 state-run companies to raise funds and improve governance in the entities.
This is according to a Bloomberg report. The Nigerian National Petroleum Corporation is among the firms the government may sell a stake in, according to the chief executive officer at the Ministry of Finance Incorporated, Armstrong Takang.
He stated that the agency is considering options including strategic sales and initial public offerings and aims to implement the plan within 18 months.
He noted that some of the entities need the private sector to take controlling shares and the major consideration for the government is to create value rather than retain control.
He said, “It is better for us to own 49 per cent of a high-performing entity than 90% of an entity that is underperforming.”
These sales may coincide with President Bola Tinubu’s plan to reform the country’s economy. Takang stated that the agency is in the process of appointing consultants including valuers, financial advisers, lawyers, bankers, and others to handle different aspects of the transactions.
In October 2022, sources at the Ministry of Finance, Budget and National Planning exclusively told The PUNCH that the government was considering selling or concessioning about 27 national assets.
The newspaper says that the Economic Community of West Africa has conducted a training programme for Nigerian women, aimed at providing them with the essential skills necessary for engaging in successful intra-African trade.
The event, with the theme “Capacity Building for the Federation of Businesswomen West Africa on Access to Regional and Continental Market under the trade regime”, was held recently in Lagos.
In her welcome speech, the President of The Ecowas Federation of Businesswomen and Entrepreneurs, Alaba Lawson, said, “The primary objective of this event is to ensure the inclusion of women from the ECOWAS region in the African Continental Free Trade Area, facilitating the smooth movement of our goods. “It is imperative that we collaboratively address any challenges that arise and strategically position ourselves ahead of other regions in terms of AFCFTA participation.”
Also, the Trade and Private Sector Adviser at Deutsche Gesellschaft fur Internationale Zusammenarbeit, Raymond Dagana, said, “The Trade Facilitation West Africa Programme’s objective is to boost seamless regional and global trade by reducing time and cost barriers. It collaborates extensively with stakeholders to simplify trade registration and documentation processes, ensuring efficient movement of goods.”
In his keynote address, the President of the Lagos Chamber of Commerce and Industry, Wale Cole, noted that the AFCFTA is the world’s largest free trade area, bringing together 55 countries of the African Union and its regional economic communities.
According to him, the overall mandate of the AFCFTA is to create a single continental market with a population of 1.3 billion people and with a combined Gross Domestic Product of approximately $.34tn.
Cole said, “This agreement would not work unless Africans are very committed to it. Countries outside Africa that have seen us dependent on them and have also seen us as those feeding them with their economies will not want this agreement to work.”
GIK/APA
Nigerian press spotlights deregulation dilemma of govt as 24% inflation worsens poverty, others
