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Economy

U.K Consumer Price Index Increased by 0.1 Percent in July

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Mark Carney

UK Consumer Price Index (CPI) increased slightly from 0.0 percent to 0.1 percent in July. The CPI which measures change in the price of goods and services purchased by consumers-shows that prices increased by 10p on a £100 shop in the year to July 2015.

According to Office for National Statistics, the slight increase in the rate of inflation from 0.0 percent to 0.1 percent was mainly due to price movements in the clothing and footwear sector, with last year’s unusually steep price drop between June and July falling out of the inflation rate calculation. Prices in this sector follow a seasonal pattern.

This is because prices tend to be at their lowest over the winter and summer sales periods, rising in between. If the timing of the sales moves from its regular pattern, this can have a temporary impact on the rate of inflation. While this has happened a few times in recent years, the market has always moved back to its regular pattern.

Product Price Index (PPI) increased by 0.9 percent from previous month, beating analyst’s expectation. This shows surge in price of goods and raw materials purchased by manufacturers for last month, the surprise increase in weeks indicates possible renew orders.  Core CPI also increased from 0.8 percent to 1.2 percent last month.

Although, the CPI increased by 0.1 percent it is still below Governor Mark Carney inflation target of 2 percent, it is believe that strength of pound is still hurting the economy and with time export is expected to pick up.

The pound rose by 0.4 percent to 1.5669 immediately after the report, economists interviewed by Bloomberg forecast that interest rate increase from the benchmark rate of 0.5 will happen in early 2016 when the inflation might have pose threat.

Markets across Asia continue to fall for second consecutive day. China stock fall the most in 3 weeks, erasing over 6.14 percent in capital today alone.

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

Nigeria’s Exports Under US Duty-free Policy Declines to $300.48m

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Sweden's economy

Nigeria’s Exports to the United States Under Duty-free Policy Declined by 88 Percent to $300.48 million

Nigeria’s total exports under the US duty-free declined by 88 percent from $2,502.86 million to $300.48 million in the first eight months of 2020.

In the latest African Growth and Opportunity Act (AGOA) policy report established in 2000, crude oil export accounted for 99.8 percent of Nigeria’s AGOA exports to the United States in 2019.

In 2019, oil and gas products worth $3.12 billion were exported to the US under the duty-free policy.

However, the plunged in global demand for Nigerian crude oil due to the COVID-19 lockdown weighed on the nation’s oil exports and revenue generation.

The United States imported 5.53 million barrels of crude oil from Nigeria in the first quarter of 2020, down from 15.07 million barrels imported in the final quarter of 2019.

Speaking on the need to improve non-oil export to take advantage of the duty-free like other African nations Mr Olusegun Awolowo, the Executive Director and Chief Executive Officer, Nigerian Export Promotion Council, who spoke at a virtual event recently said despite efforts to sensitise Nigerian exporters on the need to take advantage of the duty-free trade opportunity, only a few Nigerian exporters are benefiting from it.

He said the record crash in global oil prices is an indication that a mono-product economy like Nigeria is not sustainable and that there is an urgent need to develop non-oil export.

We cannot rely on crude oil export as both our major source of government revenue and foreign exchange generation. We must diversify our export base,” Awolowo said.

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Economy

Road Projects: Nigeria Owes Contractors More Than N390 Billion, Says Fashola

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lekki

FG Owes Road Contractors N392 Billion for Road Projects

The Minister of Works and Housing, Babatunde Fashola has said the Federal Government owes companies handling the 711 road projects across the country a total sum of N392 billion.

This, he said was higher than the N276 billion allocated for road projects in the proposed 2021 budget.

The minister disclosed this on Wednesday while defending the 2021 budget of his ministry before the Senate Committee on works.

Fashola said, “With the situation on ground, a stop has come for new projects and the country needs to prioritise the existing ones in order to complete some of them.

According to him, a total of N6.62 trillion was needed to fund the 711 road projects but because of the limited available resources, there is a need to prioritise the important ones.

He said, “We do not have the resources that we need to fix our road infrastructure at once; the very reason we need to prioritise what want to do.

“The situation on ground requires us to cut our coat according to our cloth and not according to our size because no good will come out of more new road projects now.

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Economy

Waltersmith’s 5,000bpd Modular Refinery in Imo State to Commence Operations

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Dangote refinery

5,000bpd Modular Refinery Built in Imo State to Start Operations

The Department of Petroleum Resources (DPR) has said the 5,000 barrels per day Modular Refinery project built in Imo State is ready for operations.

Sarki Auwalu, the Director, DPR, disclosed this during a pre-commissioning visit to the project site in Ibigwe, Imo State.

In a statement released by Waltersmith, Auwalu was quoted as saying the purpose of his visit was to ensure that the refinery was ready to commence operations.

He said “We can confirm that the refinery is very much ready to commence operations. We have seen all the preparations.

“To us, the plant is alive. The commissioning is just symbolic. Everywhere is ready to start off. My overall assessment is excellent.

“We have been to other modular refineries but we have not seen anything like this – the space, the way it is arranged and the way it will work.”

The 5,000 barrels per day modular refinery is scheduled for inauguration this month. The refinery has crude oil storage capacity of 60,000 barrels and it is expected to deliver more than 271 million litres per year of refined petroleum products.

Auwalu said, “The role we play is to enable businesses and create opportunities. When DPR issues you a licence, it enables you to invest and as a result of that opportunity we create, that business is enabled.

“Waltersmith is one of our success stories. We consider the project as ours. We have been tracking their growth and we are happy to see that our child is growing. It is our plan that they expand and they have the potential.”

Speaking on the project, Abdulrasaq Isah, the Chairman, Waltersmith Refining and Petrochemical Company, said the project is the first phase of a series of refinery projects that will lead to the delivery of up to 50,000 barrels per day in refining products.

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