Markets

Inflation Rebounds from 8-year Low in Emerging Economies

Published

7 years ago

September 26, 2017

Inflation Rebounds from 8-year Low in Emerging Economies

Consumer prices in emerging markets were boosted by an uptick in food prices across most developing economies in August.

Consumer Price Index which measures inflation rate in emerging economies jumped from 3 percent in July to 3.3 percent in August. That was post-crisis low.

In the past two decades, headline prices across emerging economies have fallen on lower energy prices and weak wage growth. But the surge in global energy prices has helped lift headline inflation, even though it appears temporary. Analysts at Capital Economics Ltd. Expect inflation rate to remain subdued in 2017 and 2018.

“Inflation targeting, by definition, contributed to a decline in the level and volatility of inflation, as it has become the primary policy objective. Globalization of trade and increased labor mobility had a similar effect on both the level and volatility of inflation via increased product competition and lower labor costs,” Radoslaw Bodys, an emerging-market strategist said.

Low price pressures suggest central banks in emerging-markets will cut interest to spur price growth and raise them later to offset U.S. tight monetary policy.

The U.S. dollar rose to a month high against the Euro common currency to trade at $1.1766.

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Samed Olukoya

Is the CEO and Founder of Investors King Limited. He is a seasoned foreign exchange research analyst and a published author on Yahoo Finance, Business Insider, Nasdaq, Entrepreneur.com, Investorplace, and other prominent platforms. With over two decades of experience in global financial markets, Olukoya is well-recognized in the industry.

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Energy

Nigerians Tackle Minister of Power Over Claim of 20-Hour Electricity Supply

Published

3 hours ago

September 30, 2024

Ugwoke Ogbodo

Many Nigerians have expressed shock and critisised the Minister of Power, Bayo Adelabu, harshly for claiming that over 40 percent of the country’s population is now enjoying up to 20 hours of electricity supply per day.

But his critics disagreed, saying the country still experience power outages and inconsistent supply at their deteriorating levels.

Reacting to Adelabu’s announcement, a resident of Lagos State, Kiwon Adesanya, said the minister’s statement is a far cry from the reality that citizens experience daily.

He said the people would only count themselves lucky if they get 8 hours of electricity in a good week, noting that “The constant power cuts are disrupting our lives and businesses.”

Echoing similar sentiments in other parts of the country, some residents of Ibadan, Oyo State capital said many businesses have collapsed due to poor power supply.

One of the affected residents, Doyin Ekundayo, a small business owner, expressed frustration with the government’s lack of transparency and accountability.

Ekundayon said it is disheartening to hear the minister claim such progress when the nation is still struggling with the same old problems.

While the government has made significant strides in recent years to improve electricity infrastructure, many Nigerians argue that the challenges facing the power sector are more complex than simply increasing generation capacity.

Factors such as transmission losses, inadequate distribution networks, and corruption have contributed to the ongoing power crisis.

Critics of the minister’s claim have called for more data-driven evidence to support his assertion.

They argue that anecdotal evidence from individual consumers is not sufficient to paint a comprehensive picture of the country’s electricity situation.

As the debate over the minister’s claim intensifies, Nigerians are demanding concrete solutions to the power crisis.

They are calling on the government to prioritize investments in renewable energy, improve grid infrastructure, and address corruption within the power sector.

Commodities

Osun Government Seals Off Gold Mining Company For Allegedly Evading Tax

Published

3 hours ago

September 30, 2024

Ugwoke Ogbodo

The Osun State Government said it has sealed up the business premises of Segilola Resources Operating Limited over alleged tax evasion.

A statement by the state Commissioner for Information and Public Enlightenment, Kolapo Alimi, on Monday, said the action followed a court order permitting the state to seal the company for “various flagrant tax violations and failure to disclose fully the employees directly and indirectly involved in its business activities, obstruction of tax processes by failing to provide timely tax information and documents.”

“Segilola Resources Operating Limited is one of the major companies carrying out mining activities and mineral exploration in the State as a subsidiary of Thors Explorations Limited listed on London and Toronto Stock Exchanges.

“After a series of demands, meetings, consultations, and engagements, the company still remained adamant and remorseless in its tax evasion and other violations. The Attorney-General of Osun State approached the court and consequently obtained an Order of the Court to seal up the Company until the due sum calculated from 2019 to 2023 is fully liquidated into the Osun State Government Account.

“The state notes with regret that while some companies make billions of naira in the state, especially in the mining sector, they are not ready to give the state its lawful dues.

“While the issue of shareholding values due to the acquisition of Osun state interest in Tropical Mines is purely commercial, we will continue to hold the company responsible for all its actions,” he said.

Recall that the gold mining company, in a statement by its Country Manager, Austin Menegbo, had denied the allegations by the state government, claiming that it has consistently demonstrated a commitment to being a law-abiding, transparent corporate entity, fulfilling all tax obligations and royalty payments in full and on time.

Energy

Power Generation Reaches New Heights as 40% of Nigerians Enjoy Over 20 Hours of Electricity

Published

8 hours ago

September 30, 2024

Bassey Marshall

The Minister of Power, Adebayo Adelabu, has said the major achievement of the ministry under his administration is the increase in power generation to over 5,500 megawatts.

The minister, who spoke during a review of the ministry’s activities in the last one year, said more than 40% of Nigerians are now enjoying at least 20 hours of power supply.

Adelabu described the power supply before his resumption as epileptic, adding that Nigerians were unable to enjoy more than 15 hours of power supply per day.

He said, “Upon resumption, we had an installed generation capacity of 13,000 megawatts, but we were only producing, transmitting, and distributing about 4,000 megawatts of power to the entire country.

“This was quite low and unacceptable given our population and level of economic activities. Therefore, we were determined to improve the situation.

“At that time, there was an epileptic supply. Almost all customers, both residential and commercial, could not be guaranteed 12-15 hours of supply.

Additionally, the adoption of renewable energy was skeletal in terms of solar or wind sources of energy.

“Between then and now, which is about a year, there has been significant improvement. Today, our installed capacity is over 14,000 megawatts of power due to the addition of the newly commissioned Zungeru hydroelectric power plant and improved capacity of some of the existing power plants.

“Moreover, the major achievement is the fact that today we generate over 5,500 megawatts of power, we transmit and distribute it, and over 40% of customers today enjoy over 20 hours of regular power supply across the nation. You can see that there is a significant improvement between when we came in and now, which we intend to improve further.”

Furthermore, Minister Adelabu highlighted some challenges faced by the ministry, particularly the issue of the meter gap in the country.

He revealed that out of 13 million customers, over 7 million are without meters.

The minister emphasised the need to address this issue.

However, he revealed that with President Tinubu’s Presidential Metering Initiative, the issue of the meter gap will be addressed.

Adelabu added, “There is the issue of the meter gap that we have. We all know that out of almost 13 million customers that we have in the industry, over 7 million customers are still without meters and are on estimated billing. We said this is not the way to go.

“We must correct this, which is why President Bola Ahmed Tinubu set up the Presidential Metering Initiative, which has the mandate of installing over 10 million meters within the next five years, at least 2 million meters every year. We are making progress on this. The funds are being provided, and we will soon go into the acquisition of these meters. This would reduce the meter gap.”