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FG, States Using Tinubu’s Economic Policies, Says Adeosun

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  • FG, States Using Tinubu’s Economic Policies

The Federal Government said yesterday that its economic recovery template was adopted from a former governor of Lagos State and national leader of the All Progressives Congress (APC), Asiwaju Bola Tinubu.

The Minister of Finance, Kemi Adeosun, who spoke during the ninth annual Bola Tinubu Colloquium to mark his 65th birthday in Lagos, noted that the tax mobilisation formula and other policies the APC chieftain deployed as governor were what the Federal Government had adopted in its efforts to revamp the national economy.

This tribute by the Buhari government underscores the growing cordial relationship between the presidency and Tinubu. This contrasts with a notion of the existence of a no-love-lost relationship between President Muhammadu Buhari and Tinubu which was given expression recently when Tinubu’s protege Governor Akinwumi Ambode and his predecessor, now Minister of Power, Works and Housing, Babatunde Fashola, had a public spat over the development of Airport Road in Lagos.

At the event titled, “Make it in Nigeria – Use what we make, make what we use”, Adeosun further revealed that states were adopting the Tinubu economic model.

Her words: “We are following that template which you laid down. Oil has proved to us that it is a very unreliable source of revenue. As a matter of fact, it is a lazy way of economic revenue.

“The situation we found ourselves today demands that we should have multiple sources of revenue. We need to create jobs for our people by diversifying the economy but unfortunately, what we had before now was an unproductive economy which solely depended on oil.”

The minister stressed that the nation needed to drive the economy by creating jobs, adding: “We will change Nigeria by consuming what we make and make what we use. Using what we make and consuming what we make is the best way towards economic recovery.

“The tax mobilisation we copied from Tinubu is what we are using. And we thank you for leading the way in tax collection. As a matter of fact, when you embarked on aggressive tax collection, which eventually led to increased internally generated revenue (IGR) in Lagos, many people complained. But the truth is that we all can see the massive infrastructural development achieved from your aggressive tax collection.”

Adeosun vowed that very soon, she would employ an aggressive tax system towards wealthy Nigerians similar to that of Tinubu.

In the meantime, encomiums have begun pouring in for the former governor.

According to President Muhammadu Buhari, the celebrant is the most outstanding South West politician of his generation.

Represented by the Minister of Interior, Gen. Abdulrahman Dambazau (rtd), the president noted: “Tinubu is a great mobiliser, very good at planning and executing government plan. He played a great role in the transformation of Lagos State. Today, it is no exaggeration to conclude that Tinubu and his associates, Vice President Yemi Osinbajo, Minister of Power, Housing and Works, Mr. Babatunde Fashola and the incumbent governor of the state, Mr. Akinwunmi Ambode, are the architects of the new Lagos.”

Ambode said the astute politician was a great political mentor whose products traversed the country.

His Ogun State counterpart, Ibikunle Amosun, extolled Tuinubu’s selfless service to humanity and the nation at large. Amosun’s predecessor, Otunba Gbenga Daniel described, the famous businessman as a great mind.

The Lagos and Osun Houses of Assembly also paid tributes to the former governor.

However, the President and Chief Executive Officer (CEO) of Dangote Group, Aliko Dangote, noted that there were many unexplored business opportunities in Nigeria. According to him, many entrepreneurs fail in business due to poor electricity supply and inconsistent government policies. He commended Tinubu for laying the foundation that brought about the refinery he is building in the Lekki axis of the state.

Tinubu said the occasion “is about what a people united in purpose must do to improve their beloved country. Though our roles may be different some may work under the public glare and others labour without fanfare, we are all but servants to that goal.”

Guests included state governors, Atiku Bagudu (Kebbi ); Simon Lalong (Plateau); Rotimi Akeredolu (Ondo); Nasir El-Rufai (Kaduna); Abiola Ajimobi (Oyo); Aminu Bello Massari (Katsina) and Abdulahi Ganduje (Kano).

Others were former Vice President Namadi Sambo; erstwhile governors Olusegun Osoba and Otunba Gbenga Daniel of Ogun; Niyi Adebayo (Ekiti) and Godswill Akpabio (Akwa Ibom).

Also present were Oba of Lagos, Rilwanu Akiolu; Senator Gbenga Ashafa; Alhaji Lateef Jakande; Chief of Air Staff, Air Marshal Sadique Abubakar; Senator Femi Ojudu among others.

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.

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Oil Rises to $43.76 Despite Falling Oil Demand

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Brent Crude Rises to $43.76 Per Barrel on Friday

Oil price extended its gain on Friday despite OPEC and other experts predicting a further decline in demand for the commodity.

The Brent crude oil, against which Nigerian oil is priced, rose from $39.44 per barrel on Tuesday to $43.76 per barrel on Friday before pulling back to $43.42 per barrel.

The oil surged after reports showed that US oil producers were shutting down due to hurricanes and also that crude oil inventories dropped by over 9 million barrels in the week ended September 11, 2020.

The commodity started its bullish run a day after OPEC lowered its demand outlook for the year through the first half of 2021, saying recovery without COVID-19 remained slow.

“Once again, OPEC+ meets against a worrying backdrop of soft global oil prices and an uncertain demand outlook,” Cailin Birch from The Economist Intelligence Unit told CNBC via email on Thursday.

“We maintain our view that Brent crude prices will average just over $42 a barrel in 2020, assuming that OPEC+ partners reconfirm their commitment to output cuts at their September meeting,” Birch said.

Another expert, Tim Bray, a senior portfolio manager at GuideStone Capital Management, through an email said “I do not believe we should expect any material change of course out of the OPEC meeting this week when they review market fundamentals, in part because compliance with previously agreed production cuts has been high,” Tim Bray, senior portfolio manager at GuideStone Capital Management, told CNBC via email.

“It might set the stage for action at future meetings, however,” Bray said.

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Coronavirus: European Investment Bank (EIB) Approves € 12.6bn Financing for Transport, Clean Energy, Urban Development and COVID-19 Resilience

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Outgoing President of the European Central Bank, Mario Draghi and incoming Christine Lagarde.

€ 3.1 billion for COVID-19 public health and business financing; € 3.5 billion for private sector investment and working capital schemes; € 3 billon for clean energy and energy efficiency investment around the world; € 2 billion for Naples-Bari high speed train link largest loan in EIB history.

The European Investment Bank (EIB) today approved € 12.6 billion of new financing for projects across Europe and around the world.

New financing agreed today includes more than € 3.1 billion of COVID-19-related investment to improve public health, strengthen public services and back investment by companies in sectors hit by the pandemic.

Since the start of the COVID-19 crisis, the EIB has approved € 20.1 billion to enable public and private partners around the world to better tackle health, social and economic challenges.

The EIB Board, meeting by video conference, also backed investment in agriculture, water, housing, telecommunications and urban development across Europe, as well as in Africa, Asia and Latin America.

“Fighting climate change and tackling the COVID-19 pandemic must go hand in hand to achieve a green recovery. The EU Bank is working around the world to help mitigate the impact of the pandemic on lives, jobs and businesses; and to ensure that investment focuses on sustainability, innovation, and on reducing the devastating impact of climate change. The 12.6 billion Euros of new EIB financing approved today show how we are working with thousands of local partners to make a long-term difference to people’s lives during these challenging times”, said Werner Hoyer, President of the European Investment Bank.

Largest ever EIB loan to transform travel in southern Italy

Passengers travelling between Rome, Naples and Bari will from 2027 benefit from reduced journey times, a quicker and environmentally friendly alternative to car transport, and improved connections thanks to the largest loan the EIB ever approved.

The EIB board gave the green light for a EUR 2 billion loan to support the construction of the new high-speed train link that will cut journey times by 1 hour and forty minutes between Naples and Bari. More than 2000 jobs will be created during construction and 200 once construction of the high speed line across a European cohesion region is complete.

The new green transport link, part of the Italian government’s “Unlock Italy” decree, will increase the competitiveness of raid transport, reduce carbon emissions and support social and economic development in southern Italy. It is part of the Scandinavia-Mediterranean Trans-European Network (TEN).

€ 3.6 billion to help businesses to better withstand COVID-19 challenges

Ensuring that entrepreneurs and employers can continue to invest and adapt to new challenges posed by COVID-19 is crucial.

Companies in the Baltics, Benelux, Cyprus, France, Italy, Spain, Ukraine, Moldova and Georgia as well as East Africa, Morocco, the Middle East and the Pacific will benefit from new targeted COVID-19 financing initiatives approved by the EIB today.

The new schemes, managed by local financial partners and banking intermediaries, will help reduce economic shocks, unlock new investment and enable targeted financing for sectors most vulnerable to COVID-19 uncertainties.

€ 3 billion for renewable energy and energy transition

Today’s board meeting agreed to support energy investment that will reduce energy use and increase generation of clean energy across Europe and around the world.

€ 1.6 billion will be used to finance small-scale local climate action projects in France, Italy and across the EU, managed by experienced financing partners.

Financing to support construction of new windfarms off the Dutch coast and in Bosnia, improve energy efficiency in Austria and Ukraine, renovate hydropower in Georgia, roll out smart meters in Lithuania and modernise electricity networks in Madeira and Hungary was also approved.

Millions of people across Africa and Latin America will be able to access reliable clean energy for the first time following EIB support for new off-grid solar schemes and energy transition.

€ 2.9 billion to improve urban and national sustainable transport

Rail transport in Italy is set to be transformed by EIB backed investment to upgrade rolling stock on the national network, alongside today’s approval of EUR 2 billion financing for the new high-speed line between Naples and Bari.

The EIB Board also agreed to support new investment to upgrade public transport in Sarajevo and Krakow, and to help improve a key motorway link in Bosnia and Herzegovina.

Improving urban development and social housing

Thousands of families will benefit from new large-scale social housing investment across France and in Germany under new financing programs approved today.

The EIB Board also agreed to support the New Slussen urban development project that will transform of the heart of the Swedish capital Stockholm.

Hospital patients will benefit from EIB support for construction of a new regional hospital in Tournai and approval of a national scheme to improve mental health facilities across Belgium.

A new scheme to support long-term healthcare investment in French regions underserved by medical services was also agreed.

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Crude Oil Rises Despite Demand Concerns as Hurricane Sally Disrupts Further Production

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Oil

Oil Prices Surge as Hurricane Sally Disrupts Oil Production

Oil prices rose on Wednesday despite weak demand after strong hurricane sally threatens to disrupted operations of US oil producers amid a big drop in oil inventories.

Brent crude oil, against which Nigerian crude oil is measured, rose from $39.34 barrel on Tuesday to $41.58 per barrel on Wednesday.

Accordingly, the US West Texas Intermediate crude oil gained 1.8 percent to $38.96 per barrel.

American Petroleum Institute (API), a weekly oil projection report, on Tuesday reported that US crude oil inventories declined by 9.5 million barrels in the week ended September 11, 2020. This, experts at ING Research said if close to the real number due later today, could provide support for global oil prices.

The experts said, “If we see a number similar to the drawdown the API reported overnight, it would likely provide some immediate support to the market.”

This coupled with the fact that with reports that 25 percent of US offshore oil and gas output was halted and export ports were shut as the storm crawled offshore along the US Gulf Coast bolstered oil prices on Wednesday.

Oil prices gained despite OPEC lowering demand for the year, saying weak global recovery amid rising cases of COVID-19 will impact demand for the commodity through the first half of 2021.

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