Fuel Subsidy Stood at N5.3 Billion in June Despite Market Deregulation
The Nigerian National Petroleum Corporation (NNPC) said it spent N5.348 billion on petrol subsidy in the month of June.
The subsidy reported as under-recovery in the corporation’s latest report is the losses incurred due to the difference between the subsidised price NNPC sells petrol and price which petrol should have been sold without subsidy (real price).
The latest report was after the Federal Government through the Petroleum Products Pricing Regulatory Agency said, in March, that it has officially halted petrol subsidy.
However, the latest financial and operations report released for the month of June, showed NNPC incurred N5.348 billion as subsidy on imported petrol in the month under review.
Further analysis revealed that the corporation incurred N43.31 billion, M20.68 billion and N37.66 billion as under-recovery in the months of January, February and March 2020, respectively.
NNPC, however, reported zero subsidy in the months of April and May 2020, based on the financial report for receipts and payments for the months.
But in the month of June, the report showed NNPC incurred over N5 billion as under-recovery despite the government saying it has halted fuel subsidy.
In April, during a live programme on African Independent Television, the Group Managing Director, NNPC, Mele Kyari, said fuel subsidy was gone forever.
Therefore, it was shocking to see over N5 billion appropriated to subsidy in June.
US Poll: Investors ‘Freaking’ Over Possible Contested Outcome of U.S. Election
A disputed result in November’s U.S. presidential election is now the number one concern for investors – even ahead of a second wave of Covid-19 – according to a new global survey.
The poll carried out by deVere Group, one of the world’s largest independent financial advisory and fintech organisations, asked more than 700 clients ‘What is your biggest investment worry for the rest of 2020?’
A contested U.S. election was the number one (72%); the impact of a Covid-19 second wave (18%) and U.S.-China trade war (5%). The remaining 5% was made up of other geopolitical issues, including Brexit.
735 people resident in the UK, North America, Europe, Asia, Africa, Latin America and Australasia took part in the poll.
Of the poll’s findings, deVere Group CEO and founder, Nigel Green says: “Investors around the world are beginning to freak about the U.S. presidential election.
“But not about whether Trump or Biden wins, rather over the looming possibility of a disputed outcome.
“President Trump is already questioning the legitimacy of the election, heightening the chances of a contested result and an ensuing constitutional crisis in the world’s largest economy.
“It’s getting ugly and investors are, rightly, concerned that this will generate massive waves of volatility in the markets, not only in the U.S., but around the world.”
He continues: “Investors are telling us this is their biggest investment worry for the rest of 2020.
“It is likely that any election-triggered volatility will be highly impactful for may be only two or three weeks.
“As always, investors should remain in the market during this time.”
Rational investors, Mr Green believes, should be capitalising on any election turbulence.
“There are two key reasons why investors should be building up their portfolios in volatile times.
“First, are long-term benefits. There are many unknowns, but what we do know is that over the longer-term the performance of stock markets is fairly predictable: they go up.
“Indeed, for this reason, over a longer time horizon, investing in equities is almost universally recognised as one of the best ways people can accumulate wealth.
“By not topping up and diversifying portfolios in volatile periods, investors are pushing back the longer-term benefits they could be starting to reap. Why forsake the long-term gains that would be generated on money invested now?”
“Second, the buying opportunities. The see-sawing markets are a chance for investors to put new money into markets at lower prices. A slump in the market means that there are high-quality equities available at more attractive prices.”
The deVere CEO concludes: “A contested outcome of the U.S. presidential election will almost inevitably send the stock markets into a temporary tailspin – and this is weighing on investors’ minds.
“I would argue, they should try and use the volatility to their financial advantage where possible and appropriate.”
Inflation, Economic Uncertainties Push Price of Palm Oil up 40% in Enugu
Price of Palm Oil rose by 40% in Enugu State
The rising cost of goods and services amid economic uncertainties has pushed the price of a key food ingredient in Nigeria, palm oil, up by around 40 percent in Enugu metropolis, according to a recent report by NAN.
The survey revealed that at Ogbete main market, Garki and Mayor markets, a 5 litre key of palm oil now sells for N2,350, up from N1,800 it was sold in August.
Similarly, the price of a 70cl bottle rose from N280 a few weeks ago to N400.
The survey also revealed that a 20-litre jerry-can of palm oil is now selling between N11,000 and N12,500 as against N9,000 and N9,500, depending on its processing pattern and grade.
Palm oil dealers, who spoke newsmen at the various major markets in the metropolis, attributed the increase to an off-season of the palm fruits for the year.
Mrs Oby Ofordile, a palm oil seller at Ogbete Main Market said that “the price of oil as at January was between N250 and N270 per 70cl bottle, while 20-litre went for between N9,000 and N9,500.
Ofordile noted that scarcity of palm oil fruits had led to low productivity, thereby leading to a hike in the price of the commodity.
According to Miss Onyeka Agu, another seller of palm oil at Ogbete Market, a 25-litre jerry-can in major markets in the metropolis goes for between N13,000 and N14,500 while in the villages, where the oil is produced, the price stands at N12,500.
Mrs Lucy Adindu, a palm oil seller at Garki Market, corroborated Ofodile’s views, hinging the price hike on palm fruits being out of season.
“The price of the commodity will come down when next harvest period sets in,” Adindu said.
Labour Says Nationwide Strike Will Commence on Monday, Shuns Court Order
NLC, TUC to Embark on Nationwide Strike on Monday, Shuns Court Order
Nigeria Labour Congress and the Trade Union Congress has dismissed ruling of the National Industrial Court restraining them from embarking on a Nationwide strike on Monday 28, 2020.
The NLC and TUC disclosed this on Thursday after the meeting held with the Government ended in a deadlock.
Labour had engaged the government to reverse the recent increase in petrol price and the hike in electricity tariffs. However, after failing to get labour unions to back down on planned industrial action, a group likely sponsored by the government or one of it agents approached the industrial court in Abuja on Thursday to secure a restrain order against the planned strike.
Peace and Unity Ambassadors Association through their counsel, Sunusi Musa, had filed an ex-parte application to halt the protest.
But, Ayuba Wabba, the NLC President, dismissed court ruling, saying he has not been served and the group did not employ him.
He asked, “How does that (injunction) affect me if I have not been served? Have I been served? Are they our employers? What relationship do I have with any group?”
Quadri Olaleye, the TUC President, stated that the mobilisation of workers for the strike can not be stopped, noting that the government failed to reverse or suspend the fuel price hike and electricity tariff adjustment.
He stated, “We were not the one that adjourned the meeting; the government adjourned it till Monday. Monday is the expiration of the ultimatum and we are still very much focused on that. It is a deadlock now.
“Of course, that (adjournment) will not stop the action that has been put in place. We have told them to reverse or to suspend, while the discussion goes on Monday. So, labour is left with no option but to go our way.”
Speaking on offers or concessions made by the government’s team, the union leader said, “We are coming with an open mind to find a solution to the problems in the country, especially on the price hike. They have made their proposal, but we are saying let us suspend or reverse, then we can now continue to discuss but they have adjourned. But labour will continue with the mobilisation of workers.”
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