U.S Unemployment Rate Climbs 4.1% in June- Report

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July 8, 2024

U.S. unemployment rate hit a 2-1/2-year high of 4.1% in June 2024, with government and healthcare services hiring making up about three-quarters of the payrolls gain.

According to reports, this points to a slackening labour market that keeps the Federal Reserve on course to start cutting interest rates.

The Labour Department’s employment report on Friday also showed the economy created 111,000 fewer jobs in April and May than previously estimated, suggesting the trend in payrolls growth was slowing.

Annual wages increased at the slowest pace in three years amid an expanding labor pool, adding to the flashing warning signals in the jobs market.

About 277,000 people joined the labour force, accounting for the increase in the jobless rate from 4.0% in May to the highest level since November 2021.

Nonfarm payrolls increased by 206,000 jobs last month, lifted by government hiring, the Labour Department’s Bureau of Labour Statistics said.

The Quarterly Census of Employment and Wages (QCEW), has suggested a much slower pace of job growth through the fourth quarter of 2023 than that of the payrolls data.

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The QCEW data is derived from reports by employers to the state unemployment insurance (UI) programs. While economists expect employment to be revised down when the BLS in August publishes its payrolls benchmark estimate for the 12 months through March of this year, they argued that the QCEW data does not include unauthorized immigrants, a group that they believe contributed to strong job growth last year.

Though hiring in June continued to be driven by acyclical sectors like healthcare and state and local governments, the share of industries reporting job growth jumped to 59.6% from 56.4% in May.

Government employment surged by 70,000 jobs, the most since December, boosted by local government, excluding education and state government.

Private payrolls increased by 136,000, with the healthcare and social assistance sector adding 82,400 positions.

Construction payrolls rose by 27,000. But the retail sector shed jobs, as did manufacturing. Professional and business services employment declined by 17,000 jobs, with temporary help jobs dropping by about 49,000, the most since April 2020. That likely portends slower payrolls gains ahead.

Wike To Relocate Abuja’s Largest Mechanic Village

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Rhoda Onuzulike

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July 8, 2024

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Minister of the Nigerian Federal Capital Territory (FCT), Nyesom Wike, has taken concrete steps to relocate Abuja’s largest mechanic village, known as Apo Mechanic Village, to a permanent site, 25 years after the idea was first proposed by the FCT Administration.

Wike dismissed speculations that the Administration had given a deadline for occupiers of the mechanic village to move out or risk demolition, stating there was no such directive. He also warned officials against nepotism in the allocation of shops.

The move aims to relocate thousands of auto technicians, spare parts dealers, and other ancillary service providers from their current location to a more expansive permanent site in Wasa district, a 15-minute drive from their current location.

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While inaugurating a 19-member Technical Committee on the relocation of the auto technicians from Apo to Wasa on behalf of the Administration, the Coordinator of the Abuja Metropolitan Management Agency (AMMC), Chief Felix Obuah, said the technicians had lost hope over the years, fearing that the area could be demolished at any time.

Obuah stated that instead of immediate demolition, the Wike-led Administration has decided to provide a better alternative and ensure an orderly migration before demolishing the current site to expand the roads.

Obuah said, “Two weeks ago, we held a meeting to discuss the relocation of the Apo mechanics who had been operating on the right of way. We have set up a technical committee to survey Wasa and Apo to identify those we need to relocate. This will allow us to provide an accurate timeline for the relocation. We are verifying and creating a database to ensure everyone we are relocating is actually on the road corridor.”

He emphasized, “We are not treating this as a casual exercise. We are relocating those who have lost hope and do not have anywhere to trade from the road corridor. The hope that was lost has been restored by Mr. President through the Minister, and I assure you that the entire process will be completed within three months.”

Obuah added that the goal is to ensure Abuja maintains its status as Nigeria’s capital.

The Minister approved the relocation of those occupying the right of way to allow for construction in the area.

The 19-member technical committee includes representatives from Development Control, Abuja Environment Protection Board (AEPB), Urban Affairs, Resettlement and Compensation, General Counsel and Legal Services, Lands, Urban and Regional Planning, Mapping and Surveying, Finance and Administration, and the Directorate of Road Traffic Services (DRTS/VIO), among others.

The committee’s responsibilities include enumerating eligible auto mechanic-technicians/dealers for relocation to Wasa, preparing the relocation site, handling compensation matters, establishing site boundaries, identifying areas for integration, and reviewing the layout.

The Chairman of the Committee, Abubakar Makama, acknowledged that the issue has been unresolved for over 25 years and thanked the coordinator for taking action within three months in office.

Oyo Government Pledges To Unlock MSMEs’ Potential

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Rhoda Onuzulike

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July 8, 2024

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The Oyo State Government has said it is poised to provide the necessary support for Micro, Small, and Medium Enterprises (MSMEs) to unlock their full potential and ensure their long-term success.

The Commissioner for Trade, Industry, Investment and Cooperatives, Adeniyi Adebisi, said this in Ibadan, when he played host to the organisers of the forthcoming Trade Fair to be hosted by the Oyo State Chamber of Commerce, Industry, Mines and Agriculture (OYCCIMA), in the Oyo State capital.

Recognising the vital role that MSMEs play in the Nigerian economy, Adeniyi stressed the government’s responsibility to support businesses, considering that they are the lifeblood of economic prosperity.

He acknowledged the importance of collaboration between the government and the private sector in driving economic growth and development.

Also playing host to the Nigerian Association of Small Scale Industrialists NASSI, Adeniyi assured both associations of his ministry’s support, saying he looked forward to working with them to achieve their shared goals.

He further highlighted the importance of infrastructure development and security in creating a conductive environment for investments to thrive in the state.

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The commissioner noted that the state government, under the leadership of Governor Seyi Makinde, has made significant investments in infrastructure development and security, including the recruitment of additional Amotekun security officers.

He, however, emphasised the need for MSMEs to embrace technology, innovation and adapt to evolving consumer demands, noting that MSMEs in the state would be better positioned not just as participants in the global marketplace, but also as leaders and innovators, setting the pace for others to follow.

The Oyo State Chamber of Commerce, Industry, Mines and Agriculture delegation, led by its President, Dr Daniel Gbadero, sought the commissioner’s support and collaboration for the Trade Fair aimed at promoting businesses and industries in Oyo State.

Similarly, the NASSI, led by the Ag. Chairman, Ogunjide Abraham, solicited help from the state government to establish an enterprise zone, which would provide a hub for industrialists and access to solar energy for constant power supply.

FG Takes Action as JAMB Discovers 3,000 Fake Certificates

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Nzubechukwu Anodo

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July 8, 2024

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The federal government of Nigeria has confirmed that the probe of the 3,000 alleged fake graduates recently uncovered by the Joint Admissions and Matriculation Board, JAMB was ongoing.

The minister of state for education, Tanko Sununu who made this known to The Nation on Sunday, July 7, vowed that those indicted would be prosecuted for forgery.

JAMB recently disclosed that its quest to sanitise admissions into Nigeria’s tertiary institutions has resulted in the discovery of 3,000 fake graduates and illegal certificates.

This came as JAMB insisted that it would not compromise transparency in its admissions process.

Reacting to JAMB’s disclosure of ghost students, Tanko explained that the report of a panel that investigated allegations of degree racketeering in foreign and private universities was ready.

He stated that the fake graduates were part-timers who illegally found their way into regular programmes.

The minister explained: Investigation is ongoing and those identified will be prosecuted accordingly.

The 3,000 are part-time candidates that forged their admission to be regular (students) just for them to participate in the National Youth Service Corps, NYSC).

The ministry will ensure that all due processes are followed to prosecute all those that are involved

ASUU Gives FG Two Weeks Ultimatum

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Nzubechukwu Anodo

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July 8, 2024

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The Academic Staff Union of Universities, ASUU, says strike is not imminent if the Federal Government implements the agreements reached in the next two weeks.

President of ASUU, Prof Emmanuel Osodeke said this in an interview with newsmen.

It would be recalled that ASUU had threatened to embark on a strike over the non-implementation of agreements reached with the federal government.

The Minister of Education, Prof. Tahir Mamman, June 26, invited the union to a meeting to deliberate on the lingering issues affecting universities and to avert the planned strike.

Osodeke said none of the agreements reached with the Federal Government had been implemented.

His statement read, At the meeting called by the Minister of Education, we agreed that after two weeks, we would meet to see the progress the government has made.

We will also see what we will do next if government fails to implement the agreements reached.

The meeting in the next two weeks is to see what they have done, which will inform our decision.

The ASUU president said some of the demands included the non-implementation of the 2009 re-negotiated agreements.

He said the agreements had lingered for over six years, and the government had yet to implement them.

Osodeke said the academic allowances due to their members had also accumulated for over six years, and nothing had been done about it.

On the issue of revitalisation fund, he said they agreed on the NEEDs Assessment Report to raise N200 billion yearly, for five years.

Since 2013, only one has been paid. We need revitalisation fund to upgrade our universities to standard so that we can be having students and lecturers from outside the country.

Osodeke added that the government was yet to stop the proliferation of universities, adding that many new universities were being approved without funds to run them.

He said the government was also yet to exit the university salary payment from Integrated Personnel and Payroll Information System (IPPIS), as approved by the Federal Executive Council in January.

He said their members were still being paid by IPPIS, against the directive by the FEC.

Nigeria’s Foreign Exchange Reserves Hit $34.7bn

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Rhoda Onuzulike

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July 8, 2024

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Nigeria’s foreign exchange reserves have reached a high of $34.7bn, according to data obtained from the Central Bank of Nigeria’s website.

This represents an increase of $110m from the previous day’s figure of $34.5bn.

The reserves have been steadily increasing over the past week, with a total gain of $316m since July 1, 2024.

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This growth has been attributed to several factors, including the recent increase in oil prices, improved diaspora remittances, and the Central Bank’s efforts to stabilise the currency.

Experts believe that the increase in foreign exchange reserves is a positive development for Nigeria’s economy, as it provides a cushion against external shocks and supports the country’s ability to meet its financial obligations.

A recent Fitch Ratings has placed Nigeria’s economic outlook to positive, citing significant reforms that have restored macroeconomic stability and enhanced policy coherence and credibility.

Fitch said, “The positive outlook partly reflects reforms over the last year, which have reduced distortions stemming from previous unconventional monetary and exchange rate policies.”

The Central Bank has implemented various measures to manage the foreign exchange market, including the introduction of the Investors’ and Exporters’ window, which has helped to attract foreign investment and boost reserves.

The reforms have led to a return of sizeable inflows to the official foreign exchange market and a significant rise in foreign portfolio investment inflows.

However, Fitch noted that short-term challenges remain, including high inflation and FX market volatility. Despite this, the agency expects further monetary policy tightening and strengthening of monetary policy transmission.

“The reforms have contributed to the restoration of macroeconomic stability and enhanced policy coherence and credibility.

“However, we see significant short-term challenges, notably high inflation, and the FX market has yet to stabilize, and the durability of the commitment to reform is to be tested,” Fitch stated.

Business Registration Now Possible In 24 Hours- CAC

By

Rhoda Onuzulike

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June 25, 2024

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The ambassador for the Corporate Affairs Commission, Michael Nwabufo, said business registration can now be completed within 24 hours through the new special registration portal.

Speaking to newsmen in Lagos on Monday, he urged business owners to take advantage of the innovation and beat the July 7 deadline for mandatory business registration set by the CAC and the Central Bank of Nigeria.

According to Nwabufo, the portal enables businesses to register and receive documentation within a day.

“There is a crucial deadline for agents and fintech companies to register their businesses. Compliance is mandatory under new regulations aimed at enhancing transparency and accountability within the financial sector. The deadline ends on July 7.

“To facilitate this, the CAC has introduced a Special Registration Portal (SRP), a new system enabling businesses to complete their registration directly through their mobile banking apps. This innovation streamlines the process, making it quicker and more convenient for agents to comply with the regulatory requirements,” the CAC ambassador said.

He encouraged business owners to take advantage of the SRP immediately to ensure timely registration and avoid any potential penalties for non-compliance.

He added that business owners could access further information and the portal by visiting the official CAC website or consulting their banking app.

Emphasising the importance of business registration in Nigeria, Nwabufo stated that it fostered uniqueness and trust among entrepreneurs.

He mentioned that a partnership between the Practitioners of Content Creating, Skit-Making, and Influencers Guild of Nigeria and the CAC aimed at registering over 5 million new businesses nationwide within a year.

Nwabufo thanked the Registrar-General of CAC, Hussaini Magaji, for his continuous efforts in ensuring the Nigerian business space is safe and secure.

He also commended Magaji for his unwavering support for SMEs.

“The CAC has been one of the top-performing government parastatals in the past year, scoring 53.36 per cent in the Efficiency Compliance Ranking, 65.12 per cent in Overall BFA Performance, and the highest score on the ReportGov.NG platform with 67.86 per cent, indicating full compliance,” he remarked.

Recalled that in May, the CAC and financial technology companies agreed to a two-month timeline to register their merchants and agent bankers, better known as PoS operators.

The commission, issuing a deadline of July 7, said the registration aligned with legal requirements and the directives of the CBN.

Nwabufo was appointed CAC ambassador after a closed-door meeting with Magaji on April 26 at CAC Headquarters in Abuja.

EU Plans €150bn Investment to Boost Intra-African Trade

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Rhoda Onuzulike

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June 25, 2024

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The European Union Commission said it has concluded plans to invest €150bn in trade and transport infrastructure across West Africa with a special focus on the Lagos- Abidjan corridor.

According to the EU Commission, the initiative, which is part of its Global Gateway Initiative, aims to eliminate about 80 extortion checkpoints between the Benin Republic Border and Lagos State.

The Team Lead of the EU Delegation to Nigeria and ECOWAS, Celine Lhoste, disclosed this on Monday in Lagos during a tripartite meeting between the Nigerian Shippers’ Council, EU delegation and ECOWAS.

“There is an investment package of €150bn for Africa and West Africa is an important region where we are already investing a lot along the Lagos-Abidjan corridor,” she declared.

Lhoste highlighted the importance of Lagos ports to trade efficiency in the Lagos-Abidjan corridor.

She emphasised the EU’s commitment to supporting efforts to decongest Lagos ports and improve inland dry ports.

Lhoste expressed interest in facilitating coastal shipping between Cotonou and Lagos ports, which could significantly enhance trade between Nigeria and Benin.

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“We are looking at possible investments to facilitate trade and transport along the corridor and in Lagos. The investment package under the global gateway initiative seeks to use various funding sources, including private sector contributions and grants, to lower the cost of investments,” she stated.

According to Lhoste, the EU is also in discussions with the Port of Antwerp to explore using barges to ease congestion and improve connections between seaports and hinterlands in Nigeria.

The Transport Officer at the Directorate General International Partnership of the EU Commission, Jesus Gavilan, outlined the challenges along the Lagos-Abidjan corridor, such as the numerous checkpoints that hinder smooth transport between Benin and Nigeria.

“When you move from the Benin Border to Lagos, you can be stopped at least 20 times with 80 checkpoints. This is a big barrier for transport between the two countries,” Gavilan averred.

He noted that the EU was working on a one-stop border post between Benin and Nigeria to streamline the passage of goods.

Gavilan maintained that the border post had not been fully operational with a lot needed to be done for the smooth passage of goods.

He said the project which is in partnership with the French Development Agency and the European Investment Bank, is nearing its official launch.

Gavilan also emphasised the need for inland dry ports as a key element to decongest the seaports and improve exports abroad.

He explained, “EU would have a look into investing in infrastructure while partnering with the Nigerian Shippers’ Council.”

Earlier, the Executive Secretary of the Nigerian Shippers’ Council, Pius Akutah, reiterated the council’s commitment to port efficiency and trade facilitation.

He also highlighted its role in setting tariffs and handling charges to reduce cargo abandonment and expedite ship turnaround times.

Akutah, represented by Executive Director of Human Resources, Ms Ada Okam, solicited the EU investment in the development of key transport infrastructures.

The Director of Special Duties at the NSC, Mustapha Zubairu, emphasised the need for a railway at the Lekki port to alleviate congestion caused by surrounding industrial activities.

He called for EU investment in that area and stressed the importance of uniform regulations within the regional corridor to facilitate seamless cargo movement.

Court Orders Seizure of Fed. Govt. Properties In UK

By

Rhoda Onuzulike

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June 25, 2024

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A Chinese investor has obtained the authority to enforce a $70 million investment treaty award against Nigeria, and as a result, two Nigerian properties situated in the United Kingdom are about to be taken over by the investor.

After attaching a £20 million debt related to the well-known P&ID case, Zhongshan Fucheng Industrial Investment was given final charge orders against two residential properties in the UK that were owned by the Nigerian government.

On June 14, Master Sullivan of the Commercial Court in London issued an order that the Chinese company obtained. The orders were related to two properties in Liverpool that were valued at a total of £1.7 million.

According to the judge, the order was premised on the fact that the properties have been converted to commercial use outside Nigeria’s diplomatic or consular activities in the UK, stressing that enforcement of the order should prevail.

The high-profile case was a gritty legal battle between Zhongshan represented before the court by Withers and barristers at 3VB, while Nigeria was represented by Squire Patton Boggs and a barrister at Atkin Chambers.

Sources said the underlying arbitration was in relation to a joint venture with Nigeria’s Ogun State to establish a free trade zone near Lagos in 2013. A Zhongshan subsidiary held a 60% stake in the project, but Ogun terminated its participation three years later.

In 2021, a London-seated UNCITRAL tribunal chaired by Lord Neuberger including Matthew Gearing KC and Rotimi Oguneso SAN said Nigeria was guilty of expropriation and other breaches of the China-Nigeria bilateral investment treaty and ordered the country to to pay US$55.6 million plus interest and costs.

Nigeria in the same year put a challenge against the award in the Commercial Court on jurisdictional grounds. Nigeria’s position was that the arbitration clause in the BIT was invalid. But in later development, Nigeria withdrew the challenge before a hearing on Zhongshan’s application for security and security for costs was about to take place.

Justice Cockerill in the same court granted Zhongshan an ex parte enforcement order in December 2021, but Nigeria did not file against this order within the 74-day deadline allowed by the law.

In July 2023, the Court of Appeal in London stopped Nigeria from bringing a late challenge to the enforcement order, stressing Cockerill’s provisional determination that state immunity did not apply had become final.

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The investor reportedly got interim charging orders in June and August last year over the two properties in Liverpool, which are owned by the Nigerian government.

Nigeria’s efforts to dismiss these charging orders failed as Master Sullivan in her judgement, held that the properties are leased to residential tenants and that no “consular activities are actually taking place on the premises.”

She also dismissed Nigeria’s arguments that it had not been properly served with the interim charging order applications under the State Immunity Act and that Zhongshan had failed to give full and frank disclosure when seeking them.

Master Sullivan also dismissed Nigeria’s objection about parties bringing multiple enforcement action, saying that parties are “entitled to bring as many types of enforcement action as they see fit to recover their debt.” She noted that Nigeria had yet to pay any of the award and that the value of the properties represented a “small proportion of it”.

Counsel to Nigeria, Timi Balogun of Squire Patton Boggs, said: “We respectfully disagree with the Master’s decision, which we believe somewhat brushes over complex public international law issues, including with respect to state immunity and the right of a foreign state’s High Commission to own and manage portfolios of fixed assets in England and Wales. We believe that such issues need to be weighed very carefully, and we intend to appeal this decision so that these complex and important issues can be considered by the higher courts.”

President Tinubu Calls For Balance Energy Transition

By

Rhoda Onuzulike

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June 25, 2024

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President Bola Ahmed Tinubu has called for a balanced energy transition that supports vulnerable communities across Nigeria, saying a just approach still requires substantial investments in the oil and gas sector.

According to him, this is to help the nation meet the energy demands and economic needs of its population.

The President made the call on Monday in Abuja when he received the Group Chief Executive of Standard Chartered Bank, Bill Winters.

Highlighting the importance of balancing the mutually beneficial shift to green industrial growth and energy with the immediate energy needs of Nigerians, the Nigerian Leader said: ”We value your cooperation, friendship, and partnership. Substantially, we have oil and gas as our primary source of revenue today. As friends, we do not expect you to run away from investments in this sector. We face the prospect while prudently maximizing the present.

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”Green industry and energy, yes. We will surely catch up with that. To run a marathon, you need energy today. Nigeria holds the largest reserves of gas in Africa. We know we can make the best use of the great opportunities that exist in the sector. We do not want you to back away from fossil fuels.

”I have seen retractions and retreat positions by some players in the industry. But for any energy transition to succeed, people must live and live well.

”We must be able to meet our obligations to the vulnerable communities. We are committed to being prudent with our natural resources to bring prosperity to our deserving people.

”As we hold the largest reserves in gas on the continent, we do not want to go backward, we want to move forward, and we welcome a deepened partnership with your institution.”

President Tinubu in a statement endorsed on Monday by his spokesperson, Ajuri Ngelale highlighted strategic projects across different sectors embarked upon by his administration to stimulate economic growth. He reiterated his commitment to sustaining ongoing economic reforms and measures to stabilise the economy.

The Coordinating Minister of the Economy and Minister of Finance, Wale Edun described Standard Chartered Bank as a valued partner to Nigeria, providing finance for infrastructure, advice on ratings, and the prudent management of Nigeria’s Eurobond.

He disclosed that the Bank has indicated interest in financing key infrastructure projects in Nigeria, including the Lagos-Calabar coastal highway, and Port Harcourt-Maiduguri rail line rehabilitation, as well as the provision of $3 billion in innovative financing for the NLNG dividend initiative.

”They are also one of our lead managers for Eurobond issuance, and they advise us on our ratings. I am pleased to note that Moody’s has just completed our rating review and maintained Nigeria’s rating as a positive outlook, which is very encouraging,” the Minister said.

The Minister also said Moody’s positive outlook rating follows the recent announcement of the World Bank’s $2.25 billion financing package for Nigeria, reflecting the positive trajectory of the current administration’s economic reforms.

The delegation from Standard Chartered Bank included Chairman of Standard Chartered Bank Nigeria, Foluso Phillips, and the Chief Executive Officer of the Nigeria branch of the bank, Dalu Ajene.