APA – Lagos (Nigeria)
The report that talks between the Federal Government and organised labour over the removal of fuel subsidy ended in a deadlock on Wednesday as they failed to reach a consensus following the hike in petrol pump prices to over N700 from N195 per litre by oil marketers dominates the headlines of Nigerian newspapers on Thursday.
The Punch reports that talks between the Federal Government and organised labour over the removal of fuel subsidy ended in a deadlock on Wednesday as they failed to reach a consensus following the hike in petrol pump prices to over N700 from N195 per litre by oil marketers.
The hours-long meeting which was held at the Presidential Villa was to, among other things, prevent a labour crisis following the recent increase in the petrol pump price occasioned by the discontinuance of petroleum subsidy.
Earlier on Wednesday, the Nigerian National Petroleum Corporation Limited said it had adjusted the pump price of Premium Motor Spirit to reflect the market realities. The agency, however, failed to state the new prices of petrol.
However, several retails outlets sold the product between 600 and N800 in Lagos, Abuja, Ogun and some other states.
The National Public Relations Officer, Independent Petroleum Marketers Association of Nigeria, Chief Chinedu Ukadike, pointed out that the hike in the cost of PMS would trigger galloping inflation in the country, stressing that some outlets in the South-East were currently dispensing the product at N1,200/l.
Ukadike stated, “Once NNPCL retail stations have adjusted their pumps to reflect the new price, there is nothing you can do about it; that is the new price. As I speak with you, all of them are now selling at the new prices. The situation is so bad, that somewhere in Ebonyi State our members informed us that it is now N1,200/litre.
“We thought the President would remove the subsidy through a seamless means because the source of this petrol is the NNPCL. They are the ones subsidising petroleum products, they are the people who use their revenue to subsidise this product.’’
The newspaper says that the Nigerian capital market in 2022 closed on a positive note, thus bucking a trend of going southward in a year preceding an election year. The market posted 19.98 per cent growth last year. And this year, it has grown 8.76 per cent this year of Tuesday, May 30.
Analysts have attributed the trend of elections having an adverse impact on the market to the high involvement of foreign investors, who often exited the market during the general election in Nigeria over concerns for the safety of their investments.
Speaking on the trend, the Managing Director/CEO of Arthur Stevens Asset Management Limited, Olatunde Amolegbe, said, “That was what we saw in 2015 and 2019. You know the normal investors’ apathy during the election period because of fear of violence and other election-related risks. And during the 2015 and 2019 election cycles, the participation of investors was predominantly foreign, so when the foreign investors became skittish and limited their participation in the market, that was why we saw the dip we saw during those election cycles.
“However, things seem to have changed a little bit in the last few years, because foreign investors have exited and participation by local retail investors has increased significantly in the last few years. What you saw in 2022 was a situation where local retail investors were more confident in the country. You are not seeing the flight to safety that you saw in the last two elections. Because local investors are already here anyway, mostly Nigerians.”
The improved participation of domestic investors in the capital market and their obvious confidence saw the market capitalisation hit N30tn, on February 27, the first trading day after the country’s presidential election.
The Director General of the Securities and Exchange Commission, Lamido Yuguda, is optimistic that the government of President Bola Tinubu will stabilise the forex market.
He said, “This is a situation that is not permanent. We expect the foreign exchange situation in the country to substantially improve. There are a lot of economic developments in the country today that are actually laying the foundation for a much more vibrant foreign exchange in the country.”
The Guardian reports that President Bola Tinubu, yesterday, said Nigeria is open for business and constructive partnerships, and will do business with any country that is ready to do business with her.
He spoke when he received a Chinese delegation, led by Special Envoy, Peng Qinghua, who is the Vice Chairperson, Standing Committee of National People’s Congress, People’s Republic of China, at the Presidential Villa, Abuja.
The delegation included Ambassador to Nigeria, Cui Jianchun and Minister-Counselor Zhang Yi.
Tinubu promised that his administration would work to promote ease of doing business.
He said: “We need accelerated growth and we are ready to do business honestly with those ready to do business with us. We will continue to work to promote democracy in the West African sub-region.
I’m a product of democracy and shall work day and night to advance democracy. We will fight terrorism and all forms of criminality. We can learn from each other, but we will remain non-aligned.”
Qinghua, who represented Chinese President XI Jinping, pledged increased economic cooperation with Nigeria, saying the country is important to Africa and the world.
He said the two countries, currently, have good bilateral relations and economic cooperation, noting that Chinese companies are doing well in Nigeria, in railways, roads, hydropower and free trade zones.
While commending Tinubu’s plan to lead Nigeria to a new era of economic development and prosperity, the Chinese envoy said there are areas where Nigeria could benefit from China.
The newspaper says that the Chairperson of the Commerce and Industry Correspondents Association of Nigeria (CICAN), Charles Okonji, has urged the new administration to, as a matter of urgency, rescue the manufacturing industry from total collapse, adding that many businesses are hanging on by a thread.
Lamenting the present harsh business climate, he called on government at all levels to revamp the country urgently. Speaking at an agenda-setting seminar for the new administration and investiture of CICAN new executives, he said: “Inflation rate according to the government is over 20 per cent but our findings show that it is well over 50 per cent. Goods are lying fallow on shelves and warehouses because purchasing power is at an all-time low. Government must create an enabling environment for manufacturers who are struggling so much, they’re not healthy, yet are still being taxed formally and informally.”
He urged the incoming government to honestly address the ease of doing business, build a smart economy, secure the lives and property of companies and ordinary citizens and protect the media.
Past president of the Lagos Chamber of Commerce and Industry and current vice chair (Africa), the World Chamber Federation, Toki Mabogunje, said stakeholders are concerned about the country’s development and the many economic issues that businesses and citizens are going through. Urging the government to create a strong economic framework, deepen investment, create mass employment, provide food and energy security and an enabling environment for business sustainability to boost investors’ confidence; she urged the media to keep the government honest and accountable.
She also advised the media to work with the Organised Private Sector (OPS) to amplify the voice of businesses to get the government to do what needs to be done.
President, the Manufacturers Association of Nigeria (MAN), Otunba Francis Meshioye, regretted that all parts of the economy are presently in shambles due to various problems they had highlighted in the past.
He said these issues have weakened the sector, which was barely surviving before but is now on the verge of total collapse. Multiple taxes, he added, cannot enhance government revenue but would only serve to kill the few remaining industries.
GIK/APA
Press focuses on deadlock in government’s meeting with NLC over petrol subsidy removal, others
