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Labour Warns NEC Against Endorsing Proposed N385 Petrol Price

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The organised labour at the weekend cautioned the National Economic Council (NEC) against approving a recommendation by the Nigerian Governors’ Forum (NGF) seeking a N385 pump price for petrol.

State affiliates of the organised labour, in separate interviews with the media (THISDAY), said doing so will unleash hardships on the people and heat up the polity.

Their warning came ahead of a National Executive Committee (NEC) meeting of the Nigeria Labour Congress (NLC), scheduled for Abuja tomorrow, to deliberate on the issue.

The 36 governors, under the auspices of the NGF, at a meeting last week, had endorsed the N385 per litre pump price recommended by a committee set up by NEC, and headed by the Governor of Kaduna State, Mallam Nasir el-Rufai.

However, the recommendation is subject to approval by NEC, chaired by Vice President Yemi Osinbajo.

Although the Minister of State for Petroleum Resources, Mr. Timipre Sylva, had at the weekend allayed fears of an increase in petrol price, the various states’ chapters of the labour unions vowed to resist the proposed price regime, if approved.

Reacting to the governors’ proposal, the Chairman of the Niger State chapter of the NLC, Mr. Yakubu Garba, told the media at the weekend that there would be a “great revolt across the country if the pump price of petrol is increased to N385 per litre as proposed by the Nigerian Governors’ Forum”.

Garba stated that the workers would resist the proposed price, as the proposal by the governors is not only anti-workers but also anti-people.

According to him, the position of the “state NLC is the same with that of the national leadership of the congress, which is that government should make the refineries work.

“When the refineries are functional, they will serve two purposes – local supply of fuel will be adequate and at the right price, in addition to the country generating a lot of income from the export of petroleum products”.

Garba added that many Nigerians would also be employed.

He urged the NEC to reject the proposal by the governors, as approving it will heat up the nation.

The Sokoto State chapter of NLC said it would resist any attempt by the federal government to accept the proposal of state governors to increase the pump price to N385 against the current N165.

In an interview with the chairman of the council in the state, Mr. Aminu Umar Ahmad, wondered why the state governors who were supposed to care for the welfare of the citizens would sit down to take such a “heinous decision.”

He said: “Let me tell you; I’m disappointed at the action and attitude of the governors in taking such a decision that has adverse effects on the people.”

Umar added that the proposal by the governors would never see the light of the day, as labour will fight it with the last drop of their blood.

On his part, the Chairman of NLC in Zamfara State, Mr. Sani Magajinrafinya, told the media that: “The action of the governors is a betrayal of public trust.”

Sani urged the governors to look beyond crude oil and diversify their states’ sources of internally generated revenue.

He also stated that labour will use all arsenal at its disposal to resist any attempt to increase petrol pump price.

He confirmed that the NLC executive will meet tomorrow to deliberate on the matter.

Also, in his reaction, the Chairman of NLC in Kebbi State, Mr. Umar Halidu Hassan, said the action of the governors was a breach of agreement they entered with their people.

“I think the governors were not in the right mood when they took this decision,” he said.

According to him, any attempt to implement the proposal will trigger a nationwide industrial crisis.

Also, the Oyo State Chairman of the Trade Union Congress (TUC), Mr. Emmanuel Ogundiran, said the union would resist the proposed increment of price of petrol to N385 per litre.

Ogundiran also said that the governors have continued to constitute themselves into anti-workers and anti-people group by throwing up policies that would further impoverish Nigerians.

He added that the NGF is not known to the Nigerian constitution.

He said: “What I am very sure of is that labour would not sit idly and accept this from the governors.”

On his part, the state Chairman of the NLC, Mr. Kayode Martins, said the union would not support such increment in the price of petrol.

He described the governors as enemies of the country who do not care about the hardship Nigerians are facing daily.

He stated that the position of the national leadership of the union would be binding on the state chapter.

Akwa Ibom State chapter of the NLC also rejected the proposal by the governors, saying it will not see the light of the day.

The state Chairman of NLC, Mr. Sunny James, explained that “there is no way we could accept such a thing.”

“NLC is the only hope of a common man at the moment in the country. It is totally unacceptable to allow the governors to slam that kind of hardship on the workers.

“They have the right to take their decision, but we will not allow them to implement such a thing. We are waiting for a directive from the national body. We are going to have an NLC executive meeting to look at all the situations in the country,” he stated.

Also in an interview, the Nasarawa State Chairman of the NLC, Mr. Yusuf Sarki Iyah, described the governors’ proposal as unfortunate.

He said: “Let me use this medium to describe this call by the governors as an unfortunate call. It is uncalled for at this moment when the impact of COVID-19 pandemic is still biting hard on the citizens of Nigeria.”

Economy

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

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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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Economy

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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Economy

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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