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FG, States Using Tinubu’s Economic Policies, Says Adeosun

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  • FG, States Using Tinubu’s Economic Policies

The Federal Government said yesterday that its economic recovery template was adopted from a former governor of Lagos State and national leader of the All Progressives Congress (APC), Asiwaju Bola Tinubu.

The Minister of Finance, Kemi Adeosun, who spoke during the ninth annual Bola Tinubu Colloquium to mark his 65th birthday in Lagos, noted that the tax mobilisation formula and other policies the APC chieftain deployed as governor were what the Federal Government had adopted in its efforts to revamp the national economy.

This tribute by the Buhari government underscores the growing cordial relationship between the presidency and Tinubu. This contrasts with a notion of the existence of a no-love-lost relationship between President Muhammadu Buhari and Tinubu which was given expression recently when Tinubu’s protege Governor Akinwumi Ambode and his predecessor, now Minister of Power, Works and Housing, Babatunde Fashola, had a public spat over the development of Airport Road in Lagos.

At the event titled, “Make it in Nigeria – Use what we make, make what we use”, Adeosun further revealed that states were adopting the Tinubu economic model.

Her words: “We are following that template which you laid down. Oil has proved to us that it is a very unreliable source of revenue. As a matter of fact, it is a lazy way of economic revenue.

“The situation we found ourselves today demands that we should have multiple sources of revenue. We need to create jobs for our people by diversifying the economy but unfortunately, what we had before now was an unproductive economy which solely depended on oil.”

The minister stressed that the nation needed to drive the economy by creating jobs, adding: “We will change Nigeria by consuming what we make and make what we use. Using what we make and consuming what we make is the best way towards economic recovery.

“The tax mobilisation we copied from Tinubu is what we are using. And we thank you for leading the way in tax collection. As a matter of fact, when you embarked on aggressive tax collection, which eventually led to increased internally generated revenue (IGR) in Lagos, many people complained. But the truth is that we all can see the massive infrastructural development achieved from your aggressive tax collection.”

Adeosun vowed that very soon, she would employ an aggressive tax system towards wealthy Nigerians similar to that of Tinubu.

In the meantime, encomiums have begun pouring in for the former governor.

According to President Muhammadu Buhari, the celebrant is the most outstanding South West politician of his generation.

Represented by the Minister of Interior, Gen. Abdulrahman Dambazau (rtd), the president noted: “Tinubu is a great mobiliser, very good at planning and executing government plan. He played a great role in the transformation of Lagos State. Today, it is no exaggeration to conclude that Tinubu and his associates, Vice President Yemi Osinbajo, Minister of Power, Housing and Works, Mr. Babatunde Fashola and the incumbent governor of the state, Mr. Akinwunmi Ambode, are the architects of the new Lagos.”

Ambode said the astute politician was a great political mentor whose products traversed the country.

His Ogun State counterpart, Ibikunle Amosun, extolled Tuinubu’s selfless service to humanity and the nation at large. Amosun’s predecessor, Otunba Gbenga Daniel described, the famous businessman as a great mind.

The Lagos and Osun Houses of Assembly also paid tributes to the former governor.

However, the President and Chief Executive Officer (CEO) of Dangote Group, Aliko Dangote, noted that there were many unexplored business opportunities in Nigeria. According to him, many entrepreneurs fail in business due to poor electricity supply and inconsistent government policies. He commended Tinubu for laying the foundation that brought about the refinery he is building in the Lekki axis of the state.

Tinubu said the occasion “is about what a people united in purpose must do to improve their beloved country. Though our roles may be different some may work under the public glare and others labour without fanfare, we are all but servants to that goal.”

Guests included state governors, Atiku Bagudu (Kebbi ); Simon Lalong (Plateau); Rotimi Akeredolu (Ondo); Nasir El-Rufai (Kaduna); Abiola Ajimobi (Oyo); Aminu Bello Massari (Katsina) and Abdulahi Ganduje (Kano).

Others were former Vice President Namadi Sambo; erstwhile governors Olusegun Osoba and Otunba Gbenga Daniel of Ogun; Niyi Adebayo (Ekiti) and Godswill Akpabio (Akwa Ibom).

Also present were Oba of Lagos, Rilwanu Akiolu; Senator Gbenga Ashafa; Alhaji Lateef Jakande; Chief of Air Staff, Air Marshal Sadique Abubakar; Senator Femi Ojudu among others.

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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OPEC Agrees to Increase Oil Supply by 500,000 Barrels Per Day Ahead of Surge in Demand

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Nigeria's economic Productivity

OPEC and allies finally agreed to ease their 7.7 million barrels per day production cut by 500,000 barrels per day starting from January 2021.

This will now bring the oil cartel’s total production cuts to 7.2 million barrels per day starting from next year.

Oil prices rose after the news as the market believed the approval of Pfizer COVID-19 in the United Kingdom will kick start a series of approvals and helped restore confidence, increase business activities and demand for the commodity across the globe.

After the outcome of the meeting was made public on Thursday, Brent Crude Oil against which Nigerian oil is priced gained 1.35 percent on Friday after gaining 1.4 percent on Thursday to $49.37 per barrel at 11.35 am Nigerian time on Friday.

The US West Texas Intermediate gained 1.29 percent to $46.23 barrel on Friday.

500,000 bpd from January is not the nightmare scenario that the market feared, but it is not what was really expected weeks ago,” said Rystad Energy senior oil markets analyst Paola Rodriguez Masiu. “Markets are now reacting positively and prices are recording a small increase as 500,000 of extra supply is not deadly for balances,” she added.

Investors King increased business sentiment in the energy sector to boost investment, increase activity in the sector and most important improve crude oil demand enough to accommodate the 500,000 barrels per day extra that would be hitting the global market starting from January.

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

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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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