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UK Inflation Falls to 0.3% on Cheaper Airfares

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UK Consumers

The UK’s inflation rate plunged for the first time in April since September, the Office for National Statistics (ONS) reported.

The inflation fell to 0.3 percent from 0.5 percent recorded in March, much of which is caused by a fall in the prices of airfares, clothing, social housing rents and vehicles.

The ONS said the main causes were falls in the prices of air fares, vehicles, clothing and social housing rents.

The Bank of England said last week that it expected inflation to increase in the second half of the year.

By far the largest downward effect in April came from air transport, with prices falling by 14.2%, compared with a rise of 4.5% between the same two months last year.

This was influenced by the timing of the Easter holidays in March. Fare prices increased dramatically between February and March this year and then fell sharply in April.

The price of clothing and footwear also fell as retailers dropped prices to try to revive sales hit by last month’s cold weather.

An alternative inflation measure, the Retail Prices Index, which is still used to index some rents and pensions, also fell from an annual rate of 1.6% in March to 1.3% in April.

Meanwhile core inflation, which strips out energy, food, alcohol and tobacco, fell to 1.2%, compared with economists’ expectations for 1.4%.

Interest rates

Last week, the governor of the Bank of England, Mark Carney, had to write his sixth letter to the Chancellor George Osborne explaining why CPI inflation was still below the Bank’s 2% target.

In it he said: “The underlying causes of the below-target inflation of the past year and a half have been: sharp falls in commodity prices, the past appreciation of sterling, and to a lesser degree the subdued pace of domestic cost growth.”

The Bank of England’s Monetary Policy Committee (MPC) voted last week to keep interest rates unchanged at the record low of 0.5%. The Bank is not expected to raise rates until at least next year.

Martin Beck, senior economic advisor to the EY Item Club, said: “We are likely to see inflation remain close to current rates until the latter part of the year, when the base effects associated with last winter’s collapse in the oil price will begin to kick in and finally drag the CPI measure above 1%.

Such a benign outlook is likely to stay the MPC’s hand until well into next year.”

In a separate report, the ONS said that there had been a surge in house prices as landlords rushed to buy before higher stamp duty was imposed.

UK average house prices increased by 9.0% over the year to March 2016, up from 7.6% in the year to February 2016.

The pound lost about half a cent against the dollar immediately after the figures were released, but then recovered to stand at $1.4483, a gain on the day of more than 0.5%.

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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Economy

eTax: Lagos Internal Revenue Optimises Payment for Taxpayers

The Lagos State Internal Revenue Service (LIRS) is currently optimizing its payment procedures for utmost efficiency and taxpayers’ convenience.

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Company Income Tax (CIT) - Investors King

The Lagos State Internal Revenue Service (LIRS) is currently optimizing its payment procedures for utmost efficiency and taxpayers’ convenience.

The Executive Chairman of the Lagos State Internal Revenue Service, Mr Ayodele Subair, in a statement issued on Sunday, said the Agency, as part of its digitalization process, is discontinuing all previously used bill references effective from August 1st, 2022.

Consequently, according to the Chairman, only the Enterprise Tax Solutions (eTax), generated bill references will be acceptable for tax payments.

The eTax platform, (https://etax.lirs.net) which went live in October 2019, was launched by LIRS to engender seamless tax operations and reduce compliance costs to taxpayers. Since its launch, eTax has improved the effectiveness of tax administration in Lagos State.

Mr Subair added that the eTax was built as a one-stop shop for all tax transactions, and it is in the same spirit that the generation of bill references, required for all tax payments is now exclusive to the eTax platform.

He reiterated that by the cutoff date of August 1st, 2022, eTax would become the only authorized channel to generate bill reference for tax payments and other tax-related transactions in Lagos State.

To generate a bill reference on e-Tax, taxpayers can use the 5 easy steps below:

1. Visit https://etax.lirs.net

2. Input your Payer ID and password to log in

3. Select revenue type, and upload schedule (For PAYE & Withholding Taxes)

4. Generate a bill reference

5. Make a payment on any of the multiple channels available, using the generated bill reference.

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Economy

Gas Flaring: Nigeria Flares Gas Worth $13.3 Billion in 10 Years

Despite efforts to commercialise Nigeria’s gas and plans to start supplying gas to Europe via Morocco, an estimated $13.3 billion or N4 trillion worth of gas was flared in the last 10 years,

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gas flaring

Despite efforts to commercialise Nigeria’s gas and plans to start supplying gas to Europe via Morocco, an estimated $13.3 billion or N4 trillion worth of gas was flared in the last 10 years, the Nigerian gas flare tracker of the National Oil Spill Detection and Response Agency (NOSDRA) report showed.

Between 2012 and 2021, Nigeria flared 3.8 billion standard cubic feet (scf) both onshore and offshore according to the report.

NOSDRA estimated that Nigeria flared gas valued at $13.3 billion in the last decade. This amount when converted to Naira, using exchange rates in the last 10 years, puts the cumulative value at N4 trillion.

In the last 10 years, Nigeria cut gas flaring by 31 percent, far below the nation’s estimated target. This was largely due to the inability of President Buhari’s administration to kickstart the gas flare commercialisation programme approved by the government in 2016.

Collins Obi, an energy specialist, explained that with Western nations imposing sanctions on Russian gas consumption following the Moscow invasion of Russia, gas security is now a priority in Europe.

“Thus, Nigeria needs to position itself for the economic growth opportunity this presents,” he said.

A corporate intelligence lead at GAS360, Oreoluwa Owolabi said the amount of gas flaring going on in Nigeria highlighted its riches in gas and other energy resources but poor energy management and supply techniques.

“We need to invest in infrastructure to distribute the gas to where it would be commercially viable. This could be for export or pipelines across the country for electricity generation,” he said. “It requires a government-led effort, and the government has already taken some steps towards stopping flaring by 2030.”

He, however, added that because international communities have started accepting gas as a necessary fuel.

“This can be used to accelerate Africa’s net-zero transition and there would be more funds available for gas projects, which can partially finance our infrastructure development,” Owolabi added.

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Economy

$2 Billion Lekki Deep Sea Port Berths First Cargo

The Nigeria Port Authority (NPA) on Friday announced that the $2 billion Lekki Deep Sea Port in Lagos has docked its first ship.

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Deep Sea port - Investors King

The Nigeria Port Authority (NPA) on Friday announced that the $2 billion Lekki Deep Sea Port in Lagos has docked its first ship.

Mohammed Bello-Koko, the Managing Director of NPA, who received the marine vessel “Zhen Hua 28”, explained that the Lekki Deep Sea Port would help decongest Apapa Ports and reduce ship waiting time by about 60%.

Estimated at $2 billion, Lekki Deep Seaport was constructed by China Habour Engineering firm to ease shipment pressure and improve the efficiency of Nigeria’s maritime economy.

According to Koko, the port has the capacity to evacuate and handle more cargoes because of a series of automation integrated into it during construction.

“The successful delivery today (yesterday) at the Lekki Deep Seaport of three Super Post Panamax state-of-the art Ship to Shore (STS) Cranes and 10 Rubber Tyred Gantries (RTG) is a testament to the unflinching commitment of NPA to providing the support necessary for placing Nigeria on the global list of countries with Deep Seaports.

Koko said: “The successful delivery of these very important equipment which are critical for the Lekki Deep Seaport to commence operations before the end of the year 2022 is a demonstration of our readiness to take trade facilitation a notch higher. This has been made possible by the tremendous backing of His Excellency, President Muhammadu Buhari and the Federal Ministry of Transportation who have over the time played a key role from the initial construction stage and also granted fast tracked approval for this historic exercise.

“For us at the NPA, the coming on stream of Lekki symbolises a lot of positives. Apart from being Nigeria’s first Deep Seaport, Lekki Port will also be the first fully automated port at take-off. This provides an insight into the path we are already toeing as a management team to govern the operationalisation of not just the forthcoming Badagry, Ibom and Bonny Deep Seaports, but also of the reconstruction of the aged Tin-Can Port, where work is set to commence once we secure the necessary approvals from the Federal Ministry of Transportation and FEC, respectively.”

He stated that “automation remains the most veritable tool for assuring port efficiency, and as most of us are aware, the NPA is working assiduously under the technical guidance of the International Maritime Organization to deploy the Port Community System (PCS), which will enable us respond squarely to the dictates of global trade facilitation and optimise the opportunities of the African Continental Free Trade Area (AfCFTA) Agreement to which Nigeria is signatory.”

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