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Nigeria Airways’ Ex-workers’ll Get N45bn Severance After Easter – FG

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  • Nigeria Airways’ Ex-workers’ll Get N45bn Severance After Easter – FG

The N45bn severance package of former workers of the defunct Nigeria Airways Limited will be paid after the Easter holiday as soon as the Senate resumes sitting and approves the fund, the Federal Government has said.

The government stated that the money had been provided and that it was willing to pay but would follow laid-down rules.

This is coming as the government also named 16 firms that had been contracted as transaction advisers for the development of strategic aviation projects captured in the road map for the sector.

Speaking on the sidelines of the 4th Aviation Stakeholders’ Forum in Abuja, the Minister of State for Aviation, Senator Hadi Sirika, said the Federal Government would not want workers of the liquidated national carrier to die without getting their severance package.

On Monday, The PUNCH had reported a threat by aviation unions to embark on a nationwide strike in the next 14 days if the Federal Government failed to pay the N45bn severance package of the former workers of the liquidated carrier.

The National Association of Aircraft Pilots and Engineers, National Union of Air Transport Employees and the Air Transport Senior Staff Services Association of Nigeria stated that it was insensitive of the Ministry of Finance to refuse to pay the workers more than 10 months after the approval of the Federal Executive Council.

Reacting to this, Sirika said, “Every expenditure of government needs a legislative stamp, including that for Nigeria Airways pensioners. The House of Representatives has already dealt with the matter and passed it. So, once they pass it at the Senate, which is after Easter, we will go ahead and pay.

“The money has been provided and we are willing to pay, but we have to legalise it by going through the National Assembly to approve and stamp it. It is the requirement of the law and this government will always do things in accordance with the law. So, we will pay the workers.”

During the event proper, the minister told delegates that 16 transaction advisers had been appointed for the six projects in the aviation road map in line with the Infrastructure Concession and Regulatory Commission’s guidelines and the Public Procurement Act, 2007.

For the concession of the Abuja, Lagos, Kano and Port Harcourt airport terminals, Sirika stated that the consortium comprised of five firms with vast experience and expertise in airport management, public-private project legal advice, finance, project and construction management, environmental and social services.

He listed the transaction advisers for the concession of the four airports, namely, the United Kingdom-based firm, Infrata; an international law firm based in London, Dentons; and an economic company headquartered in Rotterdam, Rebel.

Others are an engineering consultancy outfit known as WSP Parsons Brinckerhoff; and a project coordination company, Proserve.

For the transaction advisers on the establishment of a maintenance, repair and overhaul centre and aviation leasing company, five firms were contracted and they are Arup UK, Catamaran Nigeria Limited, RDC Aviation Economics UK, Aubert Business Consulting UK and Olawoyin & Olawoyin.

Three transaction advisers were contracted for the development of an aerotropolis and cargo/agro allied terminals. They are the Infrastructure Bank Plc, PWO GIBB and Abdulai Taiwo and Co.

On the establishment of a national carrier, three companies were selected. They are Airline Management Group Limited of the UK, Avia Solutions Limited and Tianerro FZE.

Sirika said, “The transaction advisers have all commenced work and are liaising with the project delivery team. All the transaction advisers except the one for the national carrier were engaged in May 2017 and have a nine-month contract duration.

“The deliverables by the transaction advisers include to outline business case for adopting PPP methodology, development of a well-structured PPP procurement process to select a PPP partner, prepare the full business case, as well as support the ministry to obtain FBC compliance certificate from the ICRC, FEC approval and progress transaction up to financial closure.

“The outline business case shall on completion and due approval by relevant authorities be presented to interested investors.”

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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Federal Government Set to Seal $3.8bn Brass Methanol Project Deal in May 2024

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Gas-Pipeline

The Federal Government of Nigeria is on the brink of achieving a significant milestone as it prepares to finalize the Gas Supply and Purchase Agreement (GSPA) for the $3.8 billion Brass Methanol Project.

The agreement to be signed in May 2024 marks a pivotal step in the country’s journey toward industrialization and self-sufficiency in methanol production.

The Brass Methanol Project, located in Bayelsa State, is a flagship industrial endeavor aimed at harnessing Nigeria’s abundant natural gas resources to produce methanol, a vital chemical used in various industrial processes.

With Nigeria currently reliant on imported methanol, this project holds immense promise for reducing dependency on foreign supplies and stimulating economic growth.

Upon completion, the Brass Methanol Project is expected to have a daily production capacity of 10,000 tonnes of methanol, positioning Nigeria as a major player in the global methanol market.

Furthermore, the project is projected to create up to 15,000 jobs during its construction phase, providing a significant boost to employment opportunities in the country.

The successful execution of the GSPA is essential to ensuring uninterrupted gas supply to the Brass Methanol Project.

Key stakeholders, including the Nigerian National Petroleum Company Limited and the Nigerian Content Development & Monitoring Board, are working closely to finalize the agreement and pave the way for the project’s advancement.

Speaking on the significance of the project, Minister of State Petroleum Resources (Gas), Ekperikpe Ekpo, emphasized President Bola Tinubu’s keen interest in expediting the Brass Methanol Project.

Ekpo reaffirmed the government’s commitment to facilitating the project’s success and harnessing its potential to attract foreign direct investment and drive economic development.

The Brass Methanol Project represents a major stride toward achieving Nigeria’s industrialization goals and unlocking the full potential of its natural resources.

As the country prepares to seal the deal in May 2024, anticipation grows for the transformative impact that this landmark project will have on Nigeria’s economy and industrial landscape.

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IMF Report: Nigeria’s Inflation to Dip to 26.3% in 2024, Growth Expected at 3.3%

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IMF global - Investors King

Nigeria’s economic outlook for 2024 appears cautiously optimistic with projections indicating a potential decrease in the country’s inflation rate alongside moderate economic growth.

The IMF’s revised Global Economic Outlook for 2024 highlights key forecasts for Nigeria’s economic landscape and gave insights into both inflationary trends and GDP expansion.

According to the IMF report, Nigeria’s inflation rate is projected to decline to 26.3% by the end of 2024.

This projection aligns with expectations of a gradual easing of inflationary pressures within the country, although challenges such as fuel subsidy removal and exchange rate fluctuations continue to pose significant hurdles to price stability.

In tandem with the inflation forecast, the IMF also predicts a modest economic growth rate of 3.3% for Nigeria in 2024.

This growth projection reflects a cautious optimism regarding the country’s economic recovery and resilience in the face of various internal and external challenges.

Despite the ongoing efforts to stabilize the foreign exchange market and address macroeconomic imbalances, the IMF underscores the need for continued policy reforms and prudent fiscal management to sustain growth momentum.

The IMF report provides valuable insights into Nigeria’s economic trajectory, offering policymakers, investors, and stakeholders a comprehensive understanding of the country’s macroeconomic dynamics.

While the projected decline in inflation and modest growth outlook offer reasons for cautious optimism, it remains essential for Nigerian authorities to remain vigilant and proactive in addressing underlying structural vulnerabilities and promoting inclusive economic development.

As the country navigates through a challenging economic landscape, concerted efforts towards policy coordination, investment promotion, and structural reforms will be crucial in unlocking Nigeria’s full growth potential and fostering long-term prosperity.

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South Africa’s March Inflation Hits Two-Month Low Amid Economic Uncertainty

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South Africa's economy - Investors King

South Africa’s inflation rate declined to a two-month low, according to data released by Statistics South Africa.

Consumer prices rose by 5.3% year-on-year, down from 5.6% in February. While this decline may initially suggest a positive trend, analysts caution against premature optimism due to various economic factors at play.

The weakening of the South African rand against the dollar, coupled with drought conditions affecting staple crops like white corn and geopolitical tensions in the Middle East leading to rising oil prices, poses significant challenges.

These factors are expected to keep inflation relatively high and stubborn in the coming months, making policymakers hesitant to adjust borrowing costs.

Lesetja Kganyago, Governor of the South African Reserve Bank, reiterated the bank’s cautious stance on inflation pressures.

Despite the recent easing, inflation has consistently remained above the midpoint of the central bank’s target range of 3-6% since May 2021. Consequently, the bank has maintained the benchmark interest rate at 8.25% for nearly a year, aiming to anchor inflation expectations.

While some traders speculate on potential interest rate hikes, forward-rate agreements indicate a low likelihood of such a move at the upcoming monetary policy committee meeting.

The yield on 10-year bonds also saw a marginal decline following the release of the inflation data.

March’s inflation decline was mainly attributed to lower prices in miscellaneous goods and services, education, health, and housing and utilities.

However, core inflation, which excludes volatile food and energy costs, remained relatively steady at 4.9%.

Overall, South Africa’s inflation trajectory underscores the delicate balance between economic recovery and inflation containment amid ongoing global uncertainties.

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