FCTA To Demolish Buildings On Water Ways

-

July 2, 2023

Nigeria’s inflation rate surges to a 17-year high of 19.64% in July 2022

The World Bank has projected that inflation may hit 25 per cent in 2023 as a result of petrol subsidy removal.

This projection was contained in the June 2023 edition of the Nigeria Development Update.

However, the Washington-based bank noted that although there will be a significant increase in 2023, headline inflation will fall by the first quarter of 2024.

The report read, “The removal of the petrol subsidy is anticipated to cause a temporary increase in inflation in the upcoming months before contributing to disinflation in the medium term. The price increases resulting from the subsidy removal will have a one-time impact on prices, primarily affecting petrol purchases for transportation, power generation, and certain services.

“Headline inflation is expected to rise from 18.8 percent in 2022 to 25 percent in 2023. However, by Q1 of 2024, the subsidy removal will start to have a disinflationary effect, meaning that it will alleviate inflationary pressures despite higher petrol prices.

“This is because the subsidy removal creates additional fiscal space and reduces reliance on financing from the CBN, curbing growth of the money supply. To limit the risk of so-called secondround effects, where one-off price increases trigger more generalized inflation including through wage-price spirals, it will be important to adopt macro-fiscal policy settings that are conducive to price stability.”

The National Bureau of Statistics recently disclosed that inflation in the country rose to 22.41 per cent in May, which is the highest in about 19 years.

The World Bank report also noted that consumer price inflation has surged and is currently one of the highest globally, which is related to Nigeria’s fiscal imbalance and points to the urgency of reform efforts.

It added that the CBN implemented measures to control rising inflation, including raising the monetary policy rate by 700 basis points, but these proved ineffective and monetary policy remained loose overall in the first half of the year.

The bank added, “The loss of purchasing power from high inflation has increased poverty in the short-term, pushing an estimated 4 million Nigerians into poverty between January and May 2023.”

The lender also said about 7.1 million poor Nigerians would become poor if the Federal Government failed to compensate or provide palliatives for them, following the removal of fuel subsidy.

What CBN Should Do On Devious Charges – Expert

By

-

July 2, 2023

CBN Lifts Cash Deposit Restriction On Domiciliary Accounts

A financial expert, Okechukwu Unegbu has called on the Central Bank of Nigeria (CBN) to check the multiplicity of service charges by Deposit Money Banks (DMBs).

Unegbu, a past president of the Chattered Institute of Bankers of Nigeria (CIBN), made the appeal in an interview with the News Agency of Nigeria (NAN) on Sunday in Abuja.

According to him, banks no longer empathise with their customers as was the case in the past.

“What we have now is a situation where the DMBs pile up so many unexplained charges on their customers without offering any service.

“Most of the bank officials know next to nothing about banking, and the heads of the banks are also complicit.

“The acting CBN governor, Folashodun Shonubi, should pay particular attention to understanding the DMBs and their customers, and take full charge of regulating their activities,” he advised.

Unegbu said that the mission of any bank should be to serve its customers without expecting any favours.

According to him, in the past, the only charges that banks imposed on their customers were the Commission on Turnover (COT) and interest payments on loans, which were strictly regulated by the CBN.

“In the past, banks could not charge above what the CBN had stipulated, but these days they are making more money cunningly. Most of them are there for the money they make.

“The CIBN has discussed this issue severally; that banks should serve their customers with conscience,” he said.

Many Nigerians have complained about the multiple, unexplained charges being deducted from their bank accounts.

According to findings, however, there are specific bank charges approved by the CBN such as an Electronic Funds Transfer charge of N50 for transactions done above N50,000; N25 for N5,000 – N50,000 and N10 charge for below N5,000.

The charge on Automatic Teller Machines (ATM) withdrawals from other banks’ ATMs is N35 for the third withdrawal within the same month.

Card Maintenance Fee for Naira Debit/Credit Cards linked to savings accounts attract a maximum of N50 quarterly maintenance fee, while foreign currency-denominated debit/credit cards attract 10 dollars.

The charge for hardware token is subject to cost recovery to a maximum charge of N2,500.

According to the CBN, the issuance fee for these cards is N1,000 (one-off charge) irrespective of the card type, either regular or premium card.

The same charge applies for a replacement or renewal.

“Intra-Scheme Money Transfer Sending to an account holder attracts a minimum of N50 subject to one per cent of transaction value or N300, whichever is lower.

“For a non-account holder, it attracts a minimum of N50 subject to 1.5 per cent of transaction value or N500, whichever is lower.”

Other approved charges are Status Enquiry at the Request of the Customer, like Confirmation Letter, Embassy Letter, Reference Letter and Letter of Indebtedness/Non-Indebtedness, which attract a rate of N500 per request.

The fee for Short Message Service (SMS) mandatory alert is based on cost recovery from the previous maximum charge of N4.

Bill payment via e-channels will attract a maximum charge of N500 from 0.75 per cent of the transaction value subject to a maximum of N1,200.

Special Request for Statement of a Bill of Account is N200.

The CBN warned that any financial institution that breached any of the provisions as contained in the guide will pay a penalty of N2 million per infraction or as may be determined by the CBN from time to time.

It urged bank customers with such complaints to contact the apex bank through the email – cpd@cbn.gov.ng.

Ghana Power Producers Call Off July 1 Shutdown

By

-

July 2, 2023

Ghana’s independent power producers, IPPs have suspended a threatened shutdown from July 1 after reaching an interim deal with the state-run Electricity Company of Ghana over arrears owed to them.

Report says in late May, the IPPs rejected a government proposal to restructure $1.58 billion in arrears owed them by the state as part of the West African nation’s efforts to implement a $3 billion loan deal from the International Monetary Fund aimed at addressing its worst economic crisis in a generation.

The group later warned of outages from July if its members did not receive an interim payment of 30% of the arrears to cover key operational costs and their own overdue debt service.

New agreement

Under the new agreement, the power producers have received an interim payment offer with the understanding the government and the Electricity Company of Ghana will use the grace period to work towards a permanent resolution to the debt issue, the group said.

If this outcome is not reached, “the IPPs will be left with no other choice than to revert to their earlier decision to shut down without any further notice,” it said.

Power Firms Suspend Electricity Tariff Hike

By

-

July 2, 2023

Nigeria’s Minister Of State For Power Says Cost Of Electricity Cheapest In The World

Power consumers, on Saturday, expressed relief after it was confirmed that electricity distribution companies had not implemented the proposed hike in the tariff payable for electricity nationwide.

Some power distribution firms had announced on Sunday, June 25, 2023, that there would be a hike in tariff from July 1, 2023.

The Discos, however, backtracked the next day after widespread criticism, as they stated that the Nigerian Electricity Regulatory Commission had yet to approve the proposed hike.

But the development caused apprehension among power consumers as many prepaid consumers rushed to buy more units in their meters, while anticipating a possible hike in tariff.

It was, however, observed on Saturday, being July 1, 2023, that the Discos did not raise the tariff.

Findings by our correspondent showed that the tariff for power users on Band A, for instance, which stood at N68/kilowatt-hour as of Tuesday, June 27, 2023, remained the same on Saturday.

The halt in the tariff hike was also confirmed by some residents of the Federal Capital Territory, as they expressed relief over the development.

“It’s a huge relief for many of us, because it would have been terrible if they (Discos) had increased the tariff by 40 per cent as they earlier proposed,” Innocent Utulu, who resides in Kubwa, FCT, stated.

Another resident, Gbemisola Kenny, said, “Many people are finding it tough to cope with the over 150 per cent rise in petrol price, and they want to add another 40 per cent increase in electricity tariff? That would have been economically disastrous if it was implemented.”

NCPN foresees quiet hike

The President, Nigeria Consumer Protection Network, and coordinator, Power Sector Perspectives, Kunle Olubiyo, confirmed the halt in the proposed tariff hike by the Discos, but told our correspondent that it might be raised quietly in the near future.

He stated, “Tariff adjustments happen every six months. However, most of us just concluded that the six months was supposed to end on June 30, 2023, and that with effect from July 1, there might be an upward review.

“However, that is not sacrosanct; there is nothing in the books that says it has to be July 1. But, of course, in this month of July, somewhere along the line before this month ends, you may load credit and notice some adjustment.

“We have seen that in the past. There was supposed to be an increase in September 2020, it didn’t come immediately. But between December 2020 and January 2021, the increase was made quietly that now brought the rate for Band A from N24/kwh to N56/kwh, before it was quietly raised again to N68/kwh.”

The Multi Year Tariff Order of the Nigerian Electricity Regulatory Commission that speaks to tariff reviews in the sector has it that electricity tariff is meant to be reviewed every six months.

The last tariff increase took effect in January this year. This implies that the tariff that was paid by power consumers between January and June will be reviewed and a new one ought to take effect this month.

In reviewing the tariff, based on the MYTO, the NERC considers various economic factors, including inflation rate, foreign exchange rate, available power generation capacity, gas price and capital expenditure adjustment, among others.

Operators project that the high rate of inflation, coupled with the recent floating of the naira, among other factors, will see to an estimated rise of about 40 per cent in electricity tariff by July should the MYTO be implemented.

Commenting on this, Olubiyo insisted that the tariff adjustment being expected this month could be done quietly, stressing that a recent document from NERC showed that the Discos were losing about 40 per cent of their revenue to power theft and other challenges in the sector.

He stated, “In that document, they’ve given us an insight into reasons why they should increase tariff. They’ve given us the issue of losses of about 40 per cent, stating that for every N100 that should accrue to the Discos, they lose about N40.

“So, are we to bear this, knowing it is due to the inefficiencies of the Discos? These are issues that need to be trashed and corrected in the sector.”

40% revenue loss

Data obtained by our correspondent from a NERC document showed that all the distribution companies exceeded their allowed targets for Aggregate Technical, Commercial, and Collection losses.

The ATC&C losses include technical, commercial and collection inefficiencies in the power distribution process, such as power theft, meter tampering, billing inaccuracies and revenue leakages.

NERC stated that an urgent implementation of the Electricity Act, 2023 across states was required to address these losses, including infrastructure upgrades, modernised metering systems, improved revenue collection mechanisms and stricter measures against power theft.

The commission’s data for June 2023 revealed that the ATC&C losses of all the Discos exceeded their permitted targets.

Ukraine Finds British WW2 Hurricane Planes Outside Kyiv

By

-

July 2, 2023

The rusting remains of eight British Hurricane fighter planes which were sent to the Soviet Union by Britain after Nazi Germany invaded the country in 1941, have been found buried in a forest in Ukraine.

They were part of a package of allied military support for the USSR, paid for by the United States under the so-called Lend-Lease scheme andAviation experts say this is the first time the remains of so many Hurricanes have been found in Ukraine

Similar legislation is being used by the US government today to send military aid to Ukraine as it seeks to expel Russian forces from its country.

A former airline pilot Oleks Shtan who is leading the excavation says, It is very rare to find this aircraft in Ukraine stating the important for their aviation history because no Lend-Lease aircraft have been found here before.”

The UK sent some 3,000 Hurricanes to the Soviet Union during the war against Nazi Germany

The Hawker Hurricane was the workhorse of the Battle of Britain – the air campaign of 1940 when the Royal Air Force (RAF) defeated German attempts to invade the UK. Although its role has often been overshadowed by the newer and more adaptable Spitfire plane, the Hurricane actually shot down more than half of all enemy aircraft during the battle.

In total, about 3,000 Hurricanes were sent to the USSR between 1941 and 1944 to support the Soviet war effort. Most were either destroyed in combat or dismantled later for parts.

But some Hurricanes were deliberately broken up and buried after the war so the Soviets did not have to pay back the United States. Under the Lend-Lease legislation, the USSR was required to pay for any donated military equipment that remained intact after hostilities ended.

Dutch King Apologises For Country’s Role In Slavery

By

-

July 2, 2023

The King of the Netherlands, King Willem-Alexander has formally apologised for his country’s role in the slave trade, saying he felt “personally and intensely” affected.

The country became a major colonial power after the 17th Century, holding territories across the globe, and Dutch slave traders trafficked more than 600,000 people.

King Willem-Alexander was speaking on Saturday an event marking the 160th anniversary of the abolition of slavery in the country, describing the practice as a “horror.

During his speech in Amsterdam, King Willem-Alexander conceded that the “monarchs and rulers of the House of Orange took no steps against slavery”.

Accompanied by his wife Queen Maxima, the King acknowledged that he could not speak for the entire nation, but he told the crowd that “the vast majority” of Dutch citizens “do support the fight for equality for all people, regardless of colour or cultural background”.

He added that after acknowledgment and apology, they can work together on healing, reconciliation and restoration,.

In June, a new study revealed that Dutch rulers received the equivalent of €545m in today’s money between 1675 and 1770 from colonies where slavery was enforced.

Thousands of people were trafficked from Africa to Dutch colonies in the Caribbean and South America – amounting to around 5% of the entire transatlantic slave

Last year, Prime Minister Mark Rutte also apologised for the country’s historical role in the slave trade, saying in a speech at the Hague that it must be recognised in “the clearest terms” as “a crime against humanity”.

Ghana Power Producers Call Off Shutdown After Interim Deal

By

-

July 2, 2023

Independent power producers in Ghana have announced the suspension of a planned shutdown which was due to start on July 1st.

In an earlier statement late on Friday, the group said it had reached a deal with state-run Electricity Company of Ghana over arrears owed to them.

According to the statement, under the new agreement, the power producers have received an interim payment offer with the understanding the government and Electricity Company of Ghana will use the grace period to work towards a permanent resolution to the debt issue.

In May, the group of independent power producers rejected a government proposal to restructure $1.58 billion in arrears owed to them by the state as part of the West African nation’s efforts to implement a $3 billion loan deal from the International Monetary Fund (IMF).

The loan from the International Monetary Fund was meant to help address Ghana’s worst economic crisis in a generation.

Mali’s Military Leaders In Partial Government Reshuffle

By

-

July 2, 2023

Mali’s junta on Saturday carried out a partial reshuffle of the government following the announcement of the end of the UN peace mission in the country.

It is also coming eight days after a referendum in favour of the draft new Constitution was carried out.

Malians approved the draft of the new Constitution with 97% of votes in favour, a plebiscite for the ruling military, although voting was hampered in many central and northern localities either by fear of jihadist attacks or by political disagreements.

Though strategic posts remained occupied by the same people, government was significantly reshuffled, with 16 appointments, 13 ministers and three swaps.

A representative of the Coordination des movements de l’Azawad, the main alliance of former rebels in the north, is also leaving the government, while new member of the military joins the government, Colonel Assa Badiallo Touré, at the Ministry of Health and Social Development.

Critics of the draft describe it as tailor-made to keep the junta in power beyond the presidential elections scheduled for February 2024, despite initial commitments.

This was the first election since the military seized power by force in August 2020, and since then they have ruled virtually unchallenged in a country faced with jihadism and a security, political and economic crisis.

The Constitutional reform provides amnesty for the perpetrators of coups d’état prior to its promulgation, and is fueling persistent speculation about a possible presidential candidacy for Colonel Assimi Goïta.

AU Force In Somalia Completes 1st Drawdown Phase

By

-

July 2, 2023