The report by the International Monetary Fund of the impact of the war in Ukraine and the likely pressure on commodity prices, affecting oil and gas prices severely in 2022 and food prices well into 2023 in Nigeria and other countries of the world is one of the leading stories in Nigerian newspaper on Friday.
The Punch reports that the International Monetary Fund says the impact of the war in Ukraine is likely to sustain pressure on commodity prices, affecting oil and gas prices severely in 2022 and food prices well into 2023 in Nigeria and other countries of the world.
The Washington-based lender disclosed this in its ‘World Economic Outlook: War Sets Back the Global Recovery April 2022,’ report.
According to it, inflation is expected to remain high, and far longer than it had made in previous forecast.
It said, “With the impact of the war in Ukraine and broadening of price pressures, inflation is expected to remain elevated for longer than in the previous forecast.
“The conflict is likely to have a protracted impact on commodity prices, affecting oil and gas prices more severely in 2022 and food prices well into 2023 (because of the lagged impact from the harvest in 2022). For 2022, inflation is projected at 5.7 per cent in advanced economies and 8.7 per cent in emerging market and developing economies—1.8 and 2.8 percentage points higher than in the January World Economic Outlook.
“Inflation in 2023 is projected at 2.5 per cent for the advanced economy group and 6.5 per cent for emerging market and developing economies (0.4 and 1.8 percentage points higher than in the January forecast). However, as with the growth outlook, considerable uncertainty surrounds these inflation projections.”
The newspaper says that the Governor of the Central Bank of Nigeria, Godwin Emefiele, says Dangote Refinery will reduce Nigeria’s import bill on petroleum products and other commodities by 40 per cent.
He said this during an interview at the International Monetary Fund meeting in Washington DC, United States on Thursday.
Emefiele said: “With Dangote Refinery coming up with the 650,000 barrel per day, hopefully by the end of the year, that will reduce the demand for foreign exchange that normally will go for the importation of petroleum products.
“I have also said that between the importation of refined petroleum products and other products like rice, sugar and wheat, we spend close to about 40 per cent of the foreign exchange that is needed to fund imports into Nigeria.
“And if we find, for instance, a situation whereby around the end of this year, we no longer need foreign exchange to import petroleum product, rice or maize, I believe that the demand will drop.
“And as the demand drops, I believe that whatever supply we have is able to match the demand; and then we can see a stable exchange rate.”
The Guardian reports that the House of Representatives, yesterday, berated Group Managing Director (GMD) of the Nigerian National Petroleum Company (NNPC) Limited, Mele Kyari, for refusing to appear before it over the organisation’s financial status.
This resolution followed the failure of the GMD and heads of Port Harcourt, Warri and Kaduna refineries to appear before the House Ad-hoc Committee on State of Refineries in the country, yesterday, in Abuja.
The lower legislative chamber is worried that the three refineries have been operating at loss since 2010 before being eventually shut down in 2019, consequent upon which the lawmakers constituted the committee to demand accountability.
The Chairman of the committee, Ganiyu Johnson, said: “It is worrisome that the GMD of the NNPC, the Minister of State for Petroleum Resources and the General Managers of Port Harcourt, Warri and Kaduna Refineries have refused three invitations to appear before the committee to account for the billions of dollars spent on the rehabilitation of the refineries over the years.”
The Nation reports that security chiefs got a marching order from the President yesterday.
They must rescue unhurt all Nigerians held hostage by terrorists and kidnappers within the shortest possible time.
President Muhammadu Buhari gave the directive at the National Security Council meeting in Abuja.
The meeting was attended by Chief of Defence Staff Gen. Luck Irabor, Chief of Army Staff Lt.-Gen. Farouk Yahaya, Chief of Air Staff Air Marshal Oladayo Amoo, Chief of Naval Staff Admiral Awwal Gambo, Inspector-General of Police Usman Alkali and National Security Adviser (NSA) Maj.-Gen. Babagana Monguno (rtd).
The NSA, who briefed reporters along with the IGP, said the President was particularly saddened by last month’s attack on a Kaduna-bound train by terrorists, who killed eight passengers, injured many and kidnapped scores.
According to Monguno, getting all those abducted freed without harm was the President’s number one directive to the security chiefs.
The NSA challenged the public to assist the security agencies with information on the activities of terrorists and other criminals, saying that what was required to stamp them out was human intelligence.
Gen. Monguno also gave reasons for the low usage of technology in tracking the terrorists.
He said: “Technology is expensive. Technology takes time to acquire since we do not produce this very delicate equipment.
“It’s not as if the government is not making any effort to acquire it but we need to know who to acquire technology from, where and when. There are certain processes. For now, I know we have some but they are inadequate.”
The Sun says that the President of, the Chartered Institute of Bankers of Nigeria (CIBN), Dr Bayo Olugbemi, has urged the Federal Government to totally remove subsidies and fully deregulate the economy in the long run to ensure Nigeria’s prosperity.
Olugbemi, who is also Chairman of Council, CIBN, made the call on Thursday at the official inauguration of ‘The CIBN Bankers Hall’ at The Polytechnic, Ibadan, Oyo State.
According to him, it is not only the Nigerian economy that is in tumult, all over the world, there is a problem with the economies, with COVID-19 that is just abating.
“Unfortunately, Nigeria is the worst hit probably because of our mono economy, meaning we have only one major revenue earning which is petroleum products.
“And, of course world pricing is a function of what the refined products would be. And as we know because of the war between Russia and Ukraine, the dollar price of oil is going up and definitely it has to affect the final products.
“Unfortunately, we are not refining in Nigeria. We have to import using dollars and that is the reason why the government is giving subsidies; but for me as a person, as an economist, a banker and a financial expert in the long run, the best would be to diversify the economy and deregulate.
“There shouldn’t be anything called subsidy because at the end of the day, it doesn’t percolate to you and I. The people at the top are the ones enjoying it,” he said.
GIK/APA