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Nigerian Cities’ Contribution to Economy Low – FG

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Minister of Power, Works and Housing, Mr Babatunde Fashola

Nigerian Cities’ Contribution to Economy Low

The Federal Government has lamented the low contribution of Nigerian cities to the economy, compared to those in developed and emerging countries, stating that this is unacceptable.

It attributed the situation to the current city management style, which it said should be reviewed as it was not working.

The Minister of Power, Works and Housing, Babatunde Fashola, said this at the 50th anniversary and 47th Annual General Meeting of the Nigerian Institute of Town Planners in Abuja, with the theme, ‘Promoting Liveable Settlements’.

The minister observed that the cities were bogged down by a myriad of hindrances to economic growth, including dilapidated infrastructure, slum growth, transport gridlocks, poor housing, urban poverty, and dismal sanitary conditions.

Fashola said, “With the current urbanisation, Nigeria’s population stands at the threshold of becoming predominantly urban in the near future, having more than 800 urban settlements, including the Lagos mega city with about 15 million people, and about 10 other millionaire cities and so many intermediate cities.

“Indeed, it is estimated that by 2050,about 60 per cent of sub-Saharan Africa will be urban with Nigeria dominating the scene. The scenario is, however, worrisome, bearing in mind that the contribution of our cities to the growth of the economy is embarrassingly low, when compared with examples in developed and other emerging nations.”

Fashola explained that as part of strategies to make the cities and towns liveable, inclusive and sustainable, the Federal Government has launched fresh attempts to confront urbanisation along different fronts.

At the policy front, the minister said the government had successfully pursued the process of reviewing, revalidating and adopting the National Housing and National Urban Development policies.

He stated that his ministry had produced six designs of one-bedroomed, two-bedroomed and three-bedroomed flats, bungalows and condominiums to represent the Nigerian house.

The acting President, NITP, Mr. Luka Achi, in his welcome address, called for the implementation of the 1992 urban and regional planning law “in which the national urban and regional planning commission, state urban and regional planning development boards and local planning authorities are properly constituted.”

He argued that the non-inclusion of physical planning on the concurrent list of the constitution had created a gap in the planning hierarchy.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

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Communities in Delta State Shut OML30 Operates by Heritage Energy Operational Services Ltd

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Oil

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.

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Crude Oil Recovers from 4 Percent Decline as Joe Biden Wins

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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.”

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Nigeria, Other OPEC Members Oil Revenue to Hit 18 Year Low in 2020

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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.”

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