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FG Rehabilitates Adamawa, Borno, Kogi, Niger Roads

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  • FG Rehabilitates Adamawa, Borno, Kogi, Niger Roads

The Federal Government on Sunday said it would spend the sum of N22,699,176,016.86 on the rehabilitation of Mayo Belwa-Jada-Ganye-Toungo road in Adamawa State.

It also said its attention had been drawn to embankment and road washouts at five different locations in four northern states as a result of the ongoing rainfall, adding that the seasonal occurrences arose from heavy downpours around this period of the year.

The Minister of Power, Works and Housing, Babatunde Fashola, who was represented by the Minister of State 1, Mustapha Shehuri, at the a road reconstruction ceremony in Mayo Belwa town, disclosed that the 112km Belwa-Jada-Ganye-Toungo road in Adamawa State was due for rehabilitation, having been built since 1999.

Fashola, according to a statement from Federal Ministry of Power, Works and Housing on Sunday, stated that the road, which was characterised with failed sections, potholes, alligator cracks, depressions and washouts at the edges, was an important economic route linking and passing through the agriculturally predominant towns of Mararaba, Jamtari, Jada, Dashen, Ganye and Toungo.

He said the road also leads to the neighbouring Taraba State.

The minister said the contract had a completion period of 36 months, with a provision for the reconstruction of the 112km road to a required 7.3 metres carriageway width and 2.75 metres shoulders.

He said the carriageway would be overlaid with 60mm asphalt concrete binder course, 40mm asphalt concrete wearing course, with pavement of 200mm thick and 200mm stone base.

Other ancillary benefits to road users on that corridor, according to Fashola, are stone pitching, kerbs and chutes to avoid washouts; kilometre posts; and most importantly, road signs to give direction and make driving less cumbersome. The contract was awarded to Messrs Triacta Nigeria Limited, the statement added.

The FMPWH also stated that the attention of the minister was recently drawn to embankment and road washouts at five different locations in Adamawa, Kogi, and Niger states.

It said the embankment washouts included the Km7+250 from Bida, along the recently awarded Lambata-Lapai-Bida road project to Messrs CGC Nigeria Plc, located immediately after the Nigerian Cereal Institute in Niger State.

The contractor has commenced immediate mobilisation to site on the directive of the ministry and will commence emergency reinstatement work by August 26th, 2018 to enable free flow of traffic,” the ministry said.

It added, “Also in Niger State is the Armco Pipe collapse at Km16 along Bida-Minna road, Niger State. The Niger State Government has commissioned a federal contractor on that corridor, Messrs Triacta Nig. Plc to restore the anomaly for safe passage.”

The ministry said another washout was identified at Kwaita bridge along Abuja-Lokoja carriageway, where the subsisting contractor, Reynolds Construction Company, had been directed to commence immediate remedial work.

It said the embankment washout at the Bayo Local Government Area on the road linking Gombe-Biu in Borno State was also identified, where FIK Construction Company on the corridor had been directed to move in and commence palliative measures.

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.

Economy

Fitch Agency Revises Nigeria’s Growth Projection for 2021

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Fitch Ratings

Fitch Agency Revises Nigeria’s Growth Projection for 2021

Fitch Ratings, one of the world’s leading agencies, has revised down Nigeria’s growth projection for 2021.

The global rating agency predicted that Nigeria will grow by 1.5 percent in 2021, down from the previous 2.3 percent projection.

Fitch based its latest prediction on weaker base effects coming out of a shallower contraction recorded by the country in 2020.

While the agency said oil exports would be the main growth driver for Nigeria in 2021, consumer spending and investment were expected to remain subdued because of the rising inflation and the slow distribution of the COVID-19 vaccine.

Fitch Ratings, however, said Africa’s largest economy could expand by 2.7 percent in 2022, adding that by then it “expect Nigeria’s vaccination programme to gather pace, which will result in private consumption and fixed investment accelerating.”

“We at Fitch Solutions have revised our estimate for Nigeria’s real Gross Domestic Product (GDP) to a contraction of 1.9 per cent in 2020, compared to our previous estimate of a 3.2 per cent fall. The revision follows the release of stronger than expected GDP data indicating that the economy exited recession in the fourth quarter of 2020, growing by 0.1 per cent year-on-year, after contracting by 3.6 per cent in the third quarter of 2020 and by 6.1 per cent in the second quarter of 2020.

“The agriculture and services sectors led the Q4 2020 rebound, expanding by 3.4 per cent and 1.3 per cent respectively, resulting in non-oil growth rising by 1.7 per cent compared to a 2.5 per cent fall in Q3 2020. The oil sector (around 8.0% of GDP) contracted by 19.8 per cent in Q4 2020 – its third consecutive quarterly contraction – because of falling oil production and weak prices.

“Crude production slowed to 1.56 million barrels per day (b/d) in Q4 2020 from 1.67 milion b/d in Q3 2020, partly because of Nigeria’s commitments under the OPEC+ deal, while the price of Brent fell to an average of $43.2 per barrel (/bbl) in 2020 compared to $64.2/bbl in 2019,” it stated.

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Economy

Stop Maize, Soybean Export to Reduce Scarcity – NIAL

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Stop Maize, Soybean Export to Reduce Scarcity – NIAL

The Nigerian Institute of Animal Science on Tuesday called on the Federal Government to halt the continued export of maize and soybean to reduce the scarcity of the commodities as well curb their price hike in Nigeria.

Registrar and Chief Executive Officer, NIAL, Prof. Eustance Iyayi, told journalists in Abuja that the poultry sector was currently hit by the severe scarcity of maize and soybean.

This, he said, was due to the continued export of the commodities, the COVID-19 pandemic, which had disorganised the international supply chain, lingering insecurity in the North-East, farmers/herders conflict and flooding in some parts of the country.

“Maize and soybean are being exported and this has exacerbated the situation leading to local scarcity and price escalation of the commodities in poultry production,” Iyayi stated.

He added, “The increasing prices of the essential commodities has resulted in the increase in price of finished feeds by about 75 per cent.

“This has led to the closure of small and medium sized poultry farms thereby threatening about 10 million jobs as a result of this scarcity.

“To set the poultry industry from total collapse, the institute urges the government to immediately halt the exportation of soybean and maize and grant import permit to importers at the official foreign exchange rate.”

Iyayi said there was shortage of soybean in Nigeria and other countries, stressing that the little amount being produced across the country should not be exported.

He said the current maize yield of about one to two tonnes per hectare being produced in Nigeria would not be enough to sustain the country.

The NIAL helmsman stated that the country should be producing between seven and 10 tonnes per hectare in order to meet the requirements for humans and animals.

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Economy

Petrol Landing Cost Jumps to N186, Oil Hits $64

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Petrol Landing Cost Jumps to N186, Oil Hits $64

Against the backdrop of the rising price of oil prices, the landing cost of Premium Motor Spirit (petrol) imported into Nigeria has increased to N186.33 per litre.

Investors King had exclusively reported on February 9 that the landing cost of PMS rose to about N180 per litre on February 5 from N158.53 per litre on January 7.

Crude oil price accounts for a large chunk of the final cost of petrol, and the deregulation of petrol price by the Federal Government last year means that the pump price of the product will reflect changes in the international oil market.

Going by the petrol pricing template of the Petroleum Products Pricing Regulatory Agency, the landing cost of petrol rose to N186.33 per litre on February 16, with the pump price of the product expected to be N209.33 per litre.

The international oil benchmark, Brent crude, closed at $63.96 per barrel on February 16, up from $59.34 per barrel on February 5.

The rising price of crude oil pushed the cost of petrol quoted on Platts to $560.75 per metric tonne (N163.08 per litre, using N390/$1) on February 16 from $543.25 per metric tonne (N157.99 per litre) on February 5.

Other cost elements that make up the landing cost include freight (N10.29), lightering expenses (N4.57), insurance cost (N0.25), Nigerian Ports Authority charge (N2.38), Nigerian Maritime Administration and Safety Agency charge (N0.23), jetty throughput charge (N1.61), storage charge (N2.58), and financing (N1.33).

The freight cost increased to $35.41 per MT (N10.29 per litre) last Wednesday from $30.04 per MT (N8.74 per litre) on February 5.

The pump price is the sum of the landing cost, wholesale margin and the distribution margins. The wholesale margin is N4.03 while the distribution margins comprise transporters allowance (N3.89), retailer (N6.19), bridging fund (N7.51), marine transport average (N0.15), and admin charge (N1.23).

Apart from the changes in global crude oil prices, the exchange rate of naira to the dollar also affects the cost of imported petrol.

The cost of petrol would be higher if the 410/$1 rate at which the naira closed on Monday at the Investors’ and Exporters’ Foreign Exchange Window was used. The naira closed at 480/$1 at the parallel market.

The Nigerian National Petroleum Corporation, which has been the sole importer of petrol into the country in recent years, is still being relied upon by marketers for the supply of the product despite the deregulation of the downstream petroleum sector.

Oil marketers said recently that they were ready to resume importation of petrol if the foreign exchange was made available to them at a competitive rate.

“The discussion we should be having today is how best to maximise the benefits of the removal of price controls and subsidies while minimising the adverse effects of this action on our citizens,” the Chairman, Major Oil Marketers Association of Nigeria, Mr Adetunji Oyebanji, said at a virtual press briefing.

Brent crude, against which Nigeria’s oil is priced, rose by $1.67 to $64.58 per barrel as of 6:08pm Nigerian time on Monday.

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