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Senate: 282 Vessels Missing From NPA’s Custody

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Nigerian ports authority
  • 282 Vessels Missing From NPA’s Custody

The Senate yesterday raised the alarm over the disappearance of over 282 vessels from the custody of the Nigerian Port Authority (NPA) within the last six years.

Chairman, Senate Committee on Customs, Excise and Tariff, Senator Hope Uzodinma, raised the alarm at an investigative public hearing on smuggling in the country.

He said the 282 vessels were missing from various terminals of the NPA.

He noted that documents in the possession of the Senate showed that the vessels disappeared between 2010 and 2016 without traces.

He said: “We want the NPA to come and explain what happened to the 282 vessels that disappeared from the terminals. We have names of the releasing officers.”

Uzodinma who described NPA as critical in the investigation, lamented that the agency failed to send any representative to the public hearing.

He said reports had detailed the colossal harm done to the country’s economy by the activities of smugglers.

He said: “Those that may imagine that this is an exaggeration should do well to refer to a recent report of the World Bank on smuggling in Nigeria.

“The report was unequivocal in stating that an astonishing $5billion or N1.45 trillion worth of different goods are smuggled into Nigeria annually through Benin Republic alone.

“Yet this is only 15 per cent of the total volume of smuggled goods through the Seme border.

“The figure of goods smuggled through the sea ports is even more mind boggling.

“The report has it that over $15billion or N4.35 trillion worth of goods are smuggled into the country each year through the sea ports. The story is the same for our international airports.

“Put together, it means that goods worth over N7trilion are smuggled into the country each year.”

He said it was more frightening to note that the annual turnover in the hands of smugglers was more than the country’s annual budget.

He said the World Bank report further showed that over 25 per cent of the total annual revenue collected by Customs was lost to smugglers each year.

“If you go by the projected revenue of the Service for this year, which is approximately N600 billion, it means the service will lose about N200 billion in revenue this year alone.’’

Illegal importation of goods into the country, he said, had equally affected local industries, leading to loss of jobs and closure of industries.

He lamented that smuggling is fast proving to be the biggest industry in Nigeria and must be fought to a standstill.

Uzodinma lamented that there were other areas of leakages, arising from miss-invoicing by international traders, abuse of free trade zone policies and temporary import permit.

He urged the stakeholders make useful submissions that would aid the committee in its investigation.

He said: “I expect that those of you who have expert knowledge or privileged information on why this cankerworm has continued to pervade our economy should equally come forward with them.

“No serious legislative arm of government will sit supine while smugglers ravage the economy and deny the government huge sums of legitimate revenue.

“This Senate is determined to put an end to this smuggling malady and this investigation is designed to facilitate that,’’ he said.

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

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Guinness Nigeria Postpones Spirits Importation Exit, Extends Deal with Diageo

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Guinness Nigeria Plc has announced a delay in its plan to halt the importation of spirits as it extended its agreement with multinational alcoholic beverage company Diageo until 2025.

The decision, communicated through a corporate notice filed with the Nigerian Exchange Limited on Tuesday, cited a longer-than-expected transition period for separating its business from Diageo’s.

Initially slated for discontinuation in April 2024, the importation of premium spirits like Johnnie Walker, Singleton, Baileys, and others under the 2016 sale and distribution agreement with Diageo will now continue for an additional year.

The extension comes as the process of business separation between Guinness Nigeria, a subsidiary of Diageo, and Diageo itself faces unexpected delays.

In October, Guinness Nigeria had announced plans to cease importing spirits from Diageo, a move aimed at reducing its foreign exchange requirements.

However, the separation process has encountered unforeseen hurdles, necessitating the extension of the importation agreement.

The notice, signed by the company’s Legal Director/Company Secretary, Abidemi Ademola, highlighted the ongoing efforts by Guinness Nigeria and Diageo to implement the separation, originally scheduled for completion by April 2024.

The extension underscores the complexity of disentangling the businesses and ensuring a smooth transition.

Guinness Nigeria reaffirmed its commitment to the long-term growth strategy, aligning with Diageo’s decision to establish a new, wholly-owned spirits-focused business.

Despite the delay, both companies remain dedicated to managing the importation and distribution of international premium spirits in West and Central Africa, with Nigeria as a key hub.

The postponement comes amid challenges faced by Guinness Nigeria, including significant exchange rate losses, which amounted to N49 billion in the 2023 half-year operations.

Despite these setbacks, the company remains optimistic about its future prospects in the Nigerian market.

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Private Sector Warns: Interest Rate Hike to Trigger Job Cuts and Inflation Surge

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As the Central Bank of Nigeria (CBN) announced a hike in the Monetary Policy Rate (MPR) from 22.75% to 24.75%, concerns have been raised by the private sector regarding the potential ramifications on job stability and inflationary pressures.

The move, aimed at curbing inflation and stabilizing the exchange rate, has prompted apprehension among business operators who fear adverse effects on the economy.

Representatives from the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA) and the Nigerian Association of Small Scale Industrialists have voiced their worries over the increased difficulty in accessing affordable credit.

They argue that the higher interest rates will impede the private sector’s ability to borrow funds for expansion and operational activities.

This, they fear, could lead to a reduction in business investments and subsequently result in widespread job cuts across various sectors.

The Lagos Chamber of Commerce and Industry (LCCI) acknowledged the necessity of the interest rate hike but emphasized the potential negative consequences it may bring.

While describing it as a “price businesses would have to pay,” the LCCI highlighted the current fragility of the economy, exacerbated by various policy missteps.

They cautioned that the increased cost of borrowing could stifle entrepreneurial activities and discourage expansion plans critical for economic growth and job creation.

Experts have echoed these concerns, warning that the tightening monetary conditions could exacerbate inflationary pressures and hinder economic recovery efforts.

With inflation already soaring at 31.70%, the rate hike could further fuel price hikes, especially in essential goods and services, thus eroding the purchasing power of consumers.

However, CBN Governor Yemi Cardoso defended the decision, citing the imperative to address current inflationary pressures and ensure sustained exchange rate stability.

He emphasized the need to restore the purchasing power of ordinary Nigerians and expressed confidence that the economy would stabilize by the end of the year.

Despite assurances from the CBN, stakeholders remain cautious, calling for a more nuanced approach that balances the need for price stability with the imperative of fostering economic growth and job creation.

As businesses brace for the impact of the interest rate hike, all eyes are on the evolving economic landscape and the measures taken to mitigate its effects on livelihoods and inflation.

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Breaking Barriers: Transcorp Hotels CEO Shares Journey from Crisis to Success

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Dupe Olusola

Dupe Olusola, the Managing Director/CEO of Transcorp Hotels Plc, reflects on her remarkable journey from navigating the depths of a global pandemic to achieving unprecedented success in the hospitality industry.

Appointed in March 2020, amidst the onset of the COVID-19 pandemic, Olusola found herself at the helm of a company grappling with the severe economic fallout and operational challenges inflicted by the crisis.

Faced with a drop in occupancy rates from 70% to a mere 5%, Olusola and her team were confronted with the daunting task of steering Transcorp Hotels through uncharted waters.

Undeterred by the adversity, they embarked on a journey of transformation, leveraging creativity and resilience to navigate the turbulent landscape.

Implementing innovative strategies such as introducing drive-through cinemas, setting up on-site COVID-19 testing facilities, and enhancing take-away services, Transcorp Hotels adapted to meet the evolving needs of its guests and ensure continuity amidst the crisis.

Embracing disruption as a catalyst for growth, Olusola fostered a culture of collaboration and teamwork, rallying her colleagues to overcome obstacles and embrace change.

Through unwavering determination and a commitment to excellence, Transcorp Hotels emerged from the pandemic stronger than ever, breaking profit and revenue records year after year.

“It’s indeed been a great opportunity to learn and relearn, to lead and to grow. When you see success stories, remember it’s a journey with twists, turns, ups and downs but in the end, it will all be okay”, she said.

Olusola’s leadership exemplifies the power of adaptability and perseverance, inspiring her team to transcend limitations and chart a course towards unprecedented success.

As Transcorp Hotels continues to flourish under her stewardship, Olusola remains steadfast in her dedication to driving innovation, fostering growth, and breaking barriers in the hospitality industry.

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