- Walmart Will Worsen Nigeria’s Economic Crisis
The National Association of Nigerian Traders (NANT) has raised the alarm that the imminent entry of the World’s biggest retail chain, Walmart into Nigeria will spell doom for the country’s retail businesses.
The association was reacting to the retail giant’s announcement that it was planning to explore having economic footprints in Lagos State.
It also stated that the government would be paying lip-service to patronising locally made products if it allowed Walmart into the country.
President of association, Ken Ukaoha, speaking on behalf of its members, said while not working against expanding the economy, the country may not be fit enough to accommodate a market giant like Walmart, given Nigeria’s current economic crisis.
According to him, though there were high hopes that the global giant in retail would soon register its presence in the country, it would mean bringing to reality the worst nightmares of local producers and traders who were struggling to get the industrial sector on its feet.
Ukaoha noted that as much as the government was working to revive the economy, the proposed entry of Walmart which had generated mixed reactions from industry observers, would have been good if the investor was looking at marketing Nigeria’s local products.
“If you read the economy today, the only hope left for the country in terms of employment generation is the retail trade sector. This sector has accommodated an impressive number of people who may have remained unemployed. Bringing Walmart to the country will displace local businesses and employees. Besides, the government is campaigning for the promotion and patronage of our locally made goods yet they are planning to accommodate a store which deals in foreign items. Take ShopRite for instance, 97.8 per cent of what it displays on shelves are foreign items. Bringing Walmart will further increase Nigeria’s appetite for foreign goods.
“The government is unconsciously killing the industrial sector. Regardless of the worth of a foreign investment, government needs to be careful as it cannot eat its cake and have it. If care is not taken, a time is coming that Nigeria will be weeping like Ghana where it will be complaining that the economy has been ripped off by foreigners”, he warned.
The government needs to sit down and do a cost-benefit analysis of this arrangement. Walmart is a one-stop shop that will give consumers everything they want. But what they are offering is not made in Nigeria. What value are they then adding to the economy? I’m afraid that our local producers and retailers may not be able to survive if the market eventually settles down,” he argued.
It will be recalled that in July, a delegation from Walmart led by its top executive for Europe, the Middle East, Africa, and Canada, Shelley Broader, paid a visit to the Governor of Lagos State, Mr. Akinwunmi Ambode, intimating him of plans to bring the carrier of the ‘Save money, live better’ slogan to the state. The governor welcomed the move and promised to expedite actions to see that their plan comes to reality.
Communities in Delta State Shut OML30 Operates by Heritage Energy Operational Services Ltd
The OML30 operated by Heritage Energy Operational Services Limited in Delta State has been shut down by the host communities for failing to meet its obligations to the 112 host communities.
The host communities, led by its Management Committee/President Generals, had accused the company of gross indifference and failure in its obligations to the host communities despite several meetings and calls to ensure a peaceful resolution.
The station with a production capacity of 80,000 barrels per day and eight flow stations operates within the Ughelli area of Delta State.
The host communities specifically accused HEOSL of failure to pay the GMOU fund for the last two years despite mediation by the Delta State Government on May 18, 2020.
Also, the host communities accused HEOSL of ‘total stoppage of scholarship award and payment to host communities since 2016’.
The Chairman, Dr Harrison Oboghor and Secretary, Mr Ibuje Joseph that led the OML30 host communities explained to journalists on Monday that the host communities had resolved not to backpedal until all their demands were met.
Crude Oil Recovers from 4 Percent Decline as Joe Biden Wins
Oil Prices Recover from 4 Percent Decline as Joe Biden Wins
Crude oil prices rose with other financial markets on Monday following a 4 percent decline on Friday.
This was after Joe Biden, the former Vice-President and now the President-elect won the race to the White House.
Global benchmark oil, Brent crude oil, gained $1.06 or 2.7 percent to $40.51 per barrel on Monday while the U.S West Texas Intermediate crude oil gained $1.07 or 2.9 percent to $38.21 per barrel.
On Friday, Brent crude oil declined by 4 percent as global uncertainty surged amid unclear US election and a series of negative comments from President Trump. However, on Saturday when it became clear that Joe Biden has won, global financial markets rebounded in anticipation of additional stimulus given Biden’s position on economic growth and recovery.
“Trading this morning has a risk-on flavor, reflecting increasing confidence that Joe Biden will occupy the White House, but the Republican Party will retain control of the Senate,” Michael McCarthy, chief market strategist at CMC Markets in Sydney.
“The outcome is ideal from a market point of view. Neither party controls the Congress, so both trade wars and higher taxes are largely off the agenda.”
The president-elect and his team are now working on mitigating the risk of COVID-19, grow the world’s largest economy by protecting small businesses and the middle class that is the backbone of the American economy.
“There will be some repercussions further down the road,” said OCBC’s economist Howie Lee, raising the possibility of lockdowns in the United States under Biden.
“Either you’re crimping energy demand or consumption behavior.”
Nigeria, Other OPEC Members Oil Revenue to Hit 18 Year Low in 2020
Revenue of OPEC Members to Drop to 18 Year Low in 2020
The United States Energy Information Administration (EIA) has predicted that the oil revenue of members of the Organisation of the Petroleum Exporting Countries (OPEC) will decline to 18-year low in 2020.
EIA said their combined oil export revenue will plunge to its lowest level since 2002. It proceeded to put a value to the projection by saying members of the oil cartel would earn around $323 billion in net oil export in 2020.
“If realised, this forecast revenue would be the lowest in 18 years. Lower crude oil prices and lower export volumes drive this expected decrease in export revenues,” it said.
The oil expert based its projection on weak global oil demand and low oil prices because of COVID-19.
It said this coupled with production cuts by OPEC members in recent months will impact net revenue of the cartel in 2020.
It said, “OPEC earned an estimated $595bn in net oil export revenues in 2019, less than half of the estimated record high of $1.2tn, which was earned in 2012.
“Continued declines in revenue in 2020 could be detrimental to member countries’ fiscal budgets, which rely heavily on revenues from oil sales to import goods, fund social programmes, and support public services.”
Business2 months ago
Npower News on Permanency for Batch A, B
Forex2 months ago
Naira Improves Against Global Counterparts on Black Market
Business2 months ago
Buhari Budgets N420 Billion for Npower, Other Social Investment Programmes in 2021 Budget
Forex3 months ago
Zenith Bank Joins Other Banks to Cap International Spend Limit at $100/Month
Cryptocurrency2 months ago
Bitcoin Gains 1.67 Percent to $11,050 Per Coin Amid Liquidity Issue
Business3 months ago
Again, UBA Reduces International Spending Limit on Naira Card as Forex Scarcity Persists
Stock Market3 months ago
Zenith Bank Declares 30 Kobo Interim Dividend for H1 2020
Business3 months ago
FG Approves Stipends for Exited N-Power Beneficiaries