Major International Business Headlines Brief::: 18 October 2022

[Bulls n Bears]

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Major International Business Headlines Brief::: 18 October 2022 

 


 

 


 <https://wwww.nedbank.co.zw/> 

 


 

 


 

ü  China congress: Beijing delays key economic figures as leaders meet

ü  Warning of 'scary' spending cuts after tax U-turns

ü  The biggest U-turn in British economic history

ü  Kanye West agrees to buy right-wing platform Parler

ü  Nigeria: No Plan To Privatise Nigeria's Transmission Firm - Govt

ü  Nigeria: FAO Calls For Increased Investments In Agriculture, Resilient
Agrifood Systems

ü  Nigeria: Higher Food, Commodity Prices Push Inflation Further To 20.77
Percent

ü  Nigeria: Why Aviation Sector Crisis Persists, Stakeholders Tell Reps

ü  Nigeria: More Trouble For Nigeria As NLNG Declares Force Majeure On
22mtpa Plant Over Flood-Related Disruptions

ü  Nigeria: Petrol Scarcity Yet To End In Abuja As Gridlock Persists In
Lokoja

 


 <mailto:info at bulls.co.zw> 

 


China congress: Beijing delays key economic figures as leaders meet

China has delayed the release of its latest economic growth figures, which
were due to be published as the Communist Party's leadership gathers.

 

President Xi Jinping is expected to be confirmed for a historic third-term
at this week's party congress in Beijing.

 

The National Bureau of Statistics (NBS) did not give a reason for the delay.

 

The decision has been described as "very rare" by experts and is seen by
some as a sign of further weakness in the world's second largest economy.

 

However, Zhao Chenxin, deputy head of China's National Development and
Reform Commission, said on Monday that the country's economy had "picked up
significantly in the third quarter".

 

"Globally China's economic performance also remains outstanding. Consumer
prices have risen modestly, in sharp contrast to the high global inflation,
and employment remained generally stable," he told a news conference.

 

According to an updated NBS calendar, publication of several key economic
indictors on Tuesday, including third quarter gross domestic product (GDP),
had been "postponed".

 

A new date for the release of the figures has yet to be scheduled.

 

NBS did not immediately respond to a BBC request for comment.

 

Pushan Dutt, an economics professor at INSEAD university, told the BBC the
delay was a "very rare event" as the Chinese government had released data as
scheduled through the pandemic.

 

"My only guess is that those numbers were not very good and would not lead
to the objective of doubling the Chinese economy in the timespan that
President Xi announced," he said.

 

Meanwhile, Dan Wang, chief economist at Hang Seng Bank China, believes "the
delay may not necessarily be because of disappointing economic data".

 

"The normal procedure of signing off those data might have been disrupted as
all top leadership are occupied during the pandemic," she said.

 

Mr Xi signalled on Sunday that there would be no immediate loosening of his
controversial zero-Covid strategy, which has weighed on China's economic
growth.

 

GDP measures the size of an economy. Gauging its expansion or contraction is
one of the most important ways of measuring how well or badly an economy is
performing and is closely watched by economists and central banks.

 

China previously indicated that it may miss its annual economic growth
target of 5.5%.

 

The Politburo - the ruling Communist Party's top policy-making body - did
not mention the official growth target in a statement after its quarterly
policy meeting in July. Instead it said it aimed to keep growth within "a
reasonable range".

 

Iris Pang, Greater China chief economist at ING Bank, said she expects that
China's third-quarter GDP data would "not paint an optimistic picture".

 

"This data delay shows that the government thinks that 20th Party Congress
is the most important thing happening in China, and would like to avoid
other information that could create mixed messages to the market," she told
the BBC.

 

 

 

Warning of 'scary' spending cuts after tax U-turns

The new chancellor faces the "toughest" and "scary" decisions on spending
cuts despite overturning swathes of his predecessor's tax cuts, analysts
warn.

 

Jeremy Hunt cancelled £32bn worth of cuts from last month's mini-budget in a
bid to calm investors.

 

But experts said the government still had to fill a £28bn shortfall to
balance its books.

 

The Institute for Fiscal Studies (IFS) think tank welcomed Mr Hunt's moves
but said he had more work to do.

 

Meanwhile the Resolution Foundation, a think tank that campaigns for people
on low incomes, said that with spending cuts to find and a new energy
support package to be devised for beyond April, the chancellor's "toughest
choices still lie ahead".

 

Paul Johnson, director of the IFS, said the chancellor also had to present
"a coherent set of well-designed fiscal targets and a credible plan for
meeting them" in his economic statement on 31 October.

 

 

"Jeremy Hunt will still have to make some scary decisions on tax and spend
this Halloween," Mr Johnson said.

 

"There are no easy options here," he added. "It is hard to see which of the
big chunks of spending - health, pensions, welfare, education and defence -
can be cut."

 

Mr Hunt's strategy, which includes keeping income tax at current levels,
comes after economists warned the original plans would leave a £60bn black
hole in the public finances.

 

Last month his predecessor, Kwasi Kwarteng, announced huge subsidies to
energy prices and sweeping unfunded tax cuts, prompting turmoil in the
financial markets. Investors were alarmed that there was no independent
assessment of the impact on the economy and no explanation of how the
package would be paid for.

 

Mr Hunt said he would be shelving almost all of Mr Kwarteng's tax changes
and would look again at the way energy bills were being subsidised across
the board.

 

"At a time when markets are rightly demanding commitments to sustainable
public finances, it is not right to borrow to fund this tax cut," added Mr
Hunt, referring to Mrs Kwarteng's plan to bring down the basic rate of
income tax by 1p.

 

The pound rose and government borrowing costs fell after Mr Hunt's
announcement.

 

What was the black hole in UK finances?

The Institute for Fiscal Studies (IFS), an economics think tank, had warned
that the government faced having to make "big and painful" spending cuts to
put the country's finances on a sustainable path.

 

It calculated the government would have to spend £60bn a year less by
2026-27, even taking into account an earlier U-turn over the top rate of
income tax.

 

Governments do borrow from investors to fund spending in difficult times.
But a shortfall in the government budget, often dubbed a "black hole", can
make investors nervous if it is not clear that it is a temporary measure.

 

Rising borrowing also comes with a price tag attached - interest bills that
rise as inflation does too. For this reason, governments usually avoid
borrowing to cut taxes or spend more at times when inflation is high.

 

Why did Hunt have to act?

Immediately after Mr Kwarteng's mini-budget in September, rates of interest
for government borrowing shot up to worrying levels as the UK was deemed a
higher risk to lend to.

 

Between the soaring cost of living and higher borrowing rates, the
government faced paying interest of over £100bn on existing debt next
financial year - twice what was expected just a few months ago.

 

That's equivalent to over a fifth of departments' budgets for day-to-day
provision of public services - it's money that could be used for schools or
hospitals in theory instead.

 

It also pushed up borrowing costs for businesses and individuals, including
for mortgages. And it sent financial markets into a tailspin as the value of
government bonds plummeted, forcing the Bank of England to step in to
protect pension funds.

 

chart

What is Mr Hunt's plan?

Mr Hunt's new strategy will mean more money coming into the Treasury's
coffers, reducing the need for severe cuts to spending on services such as
the NHS, education and defence.

 

The government's stated aim is to not be spending any more than it is
receiving in tax receipts by the 2026-27 tax year, in order to keep the
overall burden of debt at current levels.

 

The chancellor said savings of £32bn would be made by 2026-27 by:

 

Keeping plans to raise corporation tax to 25% (raising £18.7bn)

Keeping the basic rate of income tax at 20p, rather than cutting it to 19p
next year (£5.9bn)

Keeping a planned increase to the tax on dividends (£0.9bn)

Shelving changes to IR35 rules for freelance workers (£2bn)

Cancelling a plan to offer tax-free shopping to tourists (£2.1bn)

Allowing alcohol duties to rise instead of being frozen (£0.6bn)

But it still leaves a £28bn shortfall, if the government is to meet its
commitment to balance the books over the next three years.

 

Mr Hunt also announced that support for every household's energy bills,
which will cost an estimated £60bn over this winter, will remain in place
until April, but after that the scheme will be reviewed to see if cost
savings can be made.

 

Mr Hunt also said he was forming an Economic Advisory Council to provide him
with "independent expert advice" as he tries to rebuild investor confidence.

 

Will Hunt's plan work?

Experts said his announcements still leave a £28bn shortfall, if the
government is to meet its commitment to balance the books over the next
three years.

 

Mr Hunt is expected to set out how this gap will be bridged in a fiscal
statement on 31 October.

 

Paul Dales, chief UK economist at Capital Economics, said the chancellor
announcing that more difficult decisions would need to be made on tax and
public spending meant the markets were being told "that this is not just a
U-turn on the mini-budget, but a complete change in the way the government
is running fiscal policy".

 

Mr Dales warned the decision to shorten the length of the cap on energy
bills to April 2023 from October 2024 meant the government would save cash,
but that businesses and households would "pick up more of the tab".

 

"That increases economic uncertainty and may mean that inflation ends up
being higher for longer next year and that the recession is deeper as a
result," he added.

 

The IFS said despite the "scary" decisions that lay ahead, Mr Hunt may be
able to delay some big decisions on public spending, having undone the big
package of tax cuts.

 

So far, the chancellor's snap announcements on Monday have helped to calm
markets. The pound rose and government borrowing costs fell on Monday, as
investors welcomed the reversal of most of the mini-budget tax measures.

 

The news also saw the interest rate - or yield - on UK government bonds
fall, making government borrowing less expensive.

 

Mr Hunt stressed that it was the government's responsibility to "do what's
necessary for economic stability".

 

"Governments cannot eliminate volatility in markets, but they can play their
part, and we will do so because instability affects the prices of things in
shops, the cost of mortgages and the values of pensions," he said.-BBC

 

 

 

 

The biggest U-turn in British economic history

Perhaps the biggest U-turn in British economic history has led to an utterly
extraordinary unBudget. A plan for £45bn of unfunded tax cuts has in three
weeks and three days seen a £32bn reversal.

 

In fact, we may need new terminology. U-turn suggests a controlled
manoeuvre. This is like an articulated lorry trying to do a handbrake turn.

 

But it will have real impacts, especially the decision to target the energy
help after April. There are reasonable questions now about higher taxes and
less help as we enter a recession.

 

It is quite something that a PM so utterly defined by the wish to cut taxes
has had to accede to a higher basic rate of tax than the plans she
inherited. The U-turn on the basic rate of tax goes further than just
reversing mini-budget plans, it also reverses a future cut to the tax that
predates recent weeks.

 

The response of government borrowing markets and currency markets shows that
it is beginning to work. The credibility cup is beginning to fill again.

 

The really big fear was that long-term borrowing costs could spiral much
higher as a result of the closing of the Bank of England emergency
parachute.

 

In the event they have fallen by a significant amount, by half a percentage
point over the course of Monday for 30-year borrowing. Similar falls for
two- and five-year lending will feed directly into fixed mortgages,
eventually.

 

However, such effective borrowing rates or yields are still significantly
higher than before the mini-budget, and this is much more acutely seen in
the UK than elsewhere.

 

What Jeremy Hunt's statement means for you

Energy bill help to be reduced from April

The patient has been stabilised, but there is more painful medicine to come.
There could be cuts to the real value of benefits and tax credits, and
squeezes on spending in government departments, at a time they are already
under pressure from post pandemic backlogs.

 

The restriction on the energy help package from April could expose some
households to a typical bill of £3,500. Mr Hunt also suggested that
mechanisms would be included to incentivise energy efficiency. In Germany
only the first four-fifths of energy usage is subsidised. The rest is
charged at market rates, creating a massive incentive to be more efficient.

 

Other companies have made investments on the basis of low corporation tax
and changes to freelance payroll systems, but now find those policy
announcements abruptly abandoned. Even given all this, further tax rises
will be required.

 

It is the polar opposite policy strategy to that pursued by the government.
After Jeremy Hunt buried Trussonomics at the weekend, the coffin has now
been sealed.

 

Much of this has been inevitable since the Monday after the mini-budget. It
should help regain economic credibility. But it is such a political volte
face, that one wonders if the whole Cabinet, Government and Conservative
party will support it.

 

The new chancellor's message will be this - there is no alternative.-BBC

 

 

 

Kanye West agrees to buy right-wing platform Parler

Ye, formerly known as Kanye West, has agreed to buy the self-styled
"uncancellable" social-media platform Parler, the company has announced.

 

Last week, the star's Twitter and Instagram accounts were locked, after he
posted anti-Semitic messages.

 

Parler is used mainly by US conservatives, and describes itself as a "free
speech" alternative to mainstream platforms.

 

Ye "will never have to fear being removed from social media again", chief
executive George Farmer posted.

 

'Express ourselves'

The announcement, on PR Newswire reveals little about the terms of the deal.

 

It says: "Under the terms of their agreement in principle, the parties
intend to enter into a definitive purchase agreement and expect to close
during the fourth quarter of 2022."

 

 

The deal will include "ongoing technical support" from the company, it adds.

 

Parler has struggled to remain relevant in recent months, after an explosion
in growth after the US elections in 2020.

 

According to Sensor Tower, the app was downloaded 90,000 times last month
globally, compared to 9 million downloads for Twitter.

 

BBC News has asked Parler for more information about the "agreement in
principle".

 

Ye - who changed his name in 2021 - wrote: "In a world where conservative
opinions are considered to be controversial, we have to make sure we have
the right to freely express ourselves."

 

Ye had his Instagram account suspended after accusing rapper Diddy of being
controlled by Jewish people.

 

He responded to his suspension by re-joining Twitter and tweeting he would
go "death con three on Jewish people", earning him a second disbarment.

 

Nashville, Tennessee-based Parler, which was founded in 2018, says it has 15
million registered users.

 

It's one of a number of apps that have targeted conservative users including
Truth Social, the platform backed by Donald Trump.

 

According to the Financial Times in September, its parent company Parlement
Technologies announced it had raised $16m (£14m) in funding, taking the
total to $56m.

 

Many mainstream US conservative figures, including politicians and
broadcasters, have accounts.

 

But the app has also attracted US far-right groups thrown off other
platforms.

 

Following the storming of the US Capitol buildings on the 6 January 2021,
Google and Apple's app stores and Amazon's web-hosting service suspended the
platform for failing to police content that encouraged or incited violence.

 

And it was revealed that some rioters had posted videos and pictures of
themselves breaking into the Capitol to Parler.

 

But the platform was eventually reinstated to the app stores after changes
in leadership and its moderation policy.-BBC

 

 

 

Nigeria: No Plan To Privatise Nigeria's Transmission Firm - Govt

The ministry of power has said there is no plan to sell the Transmission
Company of Nigeria (TCN), urging the public to disregard any statement
regarding a 'non-existing' plan to privatise the entity.

 

Special Adviser to the Minister of Power, Mallam Isa Sanusi, said the
rebuttal was coming in response to media reports claiming that there was a
plan to sell the company.

 

He quoted some of the reports as falsely claiming that the said
privatisation was going to take place in the coming months.

 

"These reports are untrue and are only mere misinformation aimed at
spreading panic in the power sector, which is making progress towards
ensuring that Nigerians enjoy uninterrupted power supply.

 

"The federal government has no intent to sell or privatise the Transmission
Company of Nigeria, and no one in the FGN has made a statement of an intent
to sell TCN," the ministry stated.

 

According to the statement, the TCN remains the 'centrepiece' in the federal
government's efforts to rejuvenate the power sector.

 

" Therefore, the ministry of power working with key stakeholders is
continuing to evaluate, assesses and upgrade TCN to make it more efficient
and transparent," the power ministry said.

 

As part of the repositioning of TCN, it stated that job opportunities are
being created, as with the recently concluded ramp up of employment,
contrary to claims that there is a plan for a mass disengagement of staff at
TCN.

 

-This Day.

 

 

 

Nigeria: FAO Calls For Increased Investments In Agriculture, Resilient
Agrifood Systems

The Food and Agriculture Organisation (FAO) has urged governments across the
globe to prioritise increased investments into the agricultural sector and
resilient agrifood systems.

 

The Director-General, FAO QU Dongyu, said the alarming signs of growing
acute food insecurity should make governments rethink the way they tackle
hunger crises by addressing the root causes rather than just treating ad hoc
symptoms of hunger.

 

He spoke at a special side event looking at how to change the humanitarian
game plan to better meet people's needs and priorities and reverse the march
of hunger across the planet. The event was organised to celebrate the World
Food Day celebrated on the 14th of October every year.

 

 

"Clearly, a new approach is needed to halt and sustainably reverse these
hunger trends. It is time for a rethink and repurpose. Prioritization,
programming, advocacy and funding allocations should be evidence-based and
guided by people's needs and priorities," the Director-General added.

 

He added that in the middle of crisis, agriculture offers solutions, he
said, pointing to the need for channelling more resources and funds to
strengthen rural people's resilience and help them preserve and improve
their agricultural livelihoods to provide for their families.

 

An efficient response will require a focused and collective effort from all
partners and stakeholders - the UN system, governments and local
organizations, the private sector, civil society and academia, Qu
underlined.

 

He warned that acute food insecurity is spreading and intensifying as
multiple global and local shocks overlap, jeopardising achieving the
Sustainable Development Goals (SDG) with only 7 planting seasons left to
turn the tide.

 

According to the latest survey, up to 222 million people are experiencing
high acute food insecurity this year - one in five of whom have so little to
eat that they face an immediate threat of severe malnourishment and death. A
further nearly 1 million people will effectively be in famine-like
conditions without urgent humanitarian assistance in five countries:
Afghanistan, Ethiopia, Somalia, South Sudan and Yemen.

 

The event also saw the participation of Rein Paulsen, Director of FAO Office
of Emergencies and Resilience; Aryn Baker, Senior International
Correspondent of Time Magazine; Mohanna Eljabaly, Associate Executive
Director for Compliance and Development of Yemen Family Care Association
(YFCA); Ramesh Rajasingham, Director of Coordination of UN Office for the
Coordination of Humanitarian Affairs; and Danielle Mutone-Smith, Managing
Director of USAID's Bureau for Humanitarian Assistance.

 

The participants agreed that agriculture should be treated as a frontline
humanitarian response and one of the most cost-effective long-term
solutions. Supporting people and their livelihoods, responding to their
needs and priorities before the peak of a crisis can effectively prevent
death and famine. The participants also touched on the need to scale-up
investments in local food production and farmers' resilience to future
shocks.

 

-This Day.

 

 

 

 

Nigeria: Higher Food, Commodity Prices Push Inflation Further To 20.77
Percent

The Consumer Price Index (CPI) which measures the rate of change in prices
of goods rose to 20.77 per cent in September 2022, compared to the 20.52 per
cent recorded in August 2022, the National Bureau of Statistics (NBS)
disclosed yesterday.

 

Inflation stood at 16.63 per cent in September 2021, when compared on a
year-on-year basis.

 

The NBS noted that the 4.14 percentage rise in the headline index (when
compared on a year-on-year basis), the highest in 17 years, indicated that
the general price level was higher relative to the preceding year.

 

 

The food inflation rate increased by 3.77 per cent to 23.34 per cent
year-on-year compared to 19.57 per cent in the preceding year.

 

The statistical agency, in its CPI report for September, which was posted on
its website, stated that the rise in food index was caused by increases in
prices of bread and cereals, food products, potatoes, yam, and other tuber,
oil, and fat.

 

However, month-on-month, food inflation dropped by 0.54 per cent to 1.43 per
cent in the review month compared to 1.98 per cent.

 

The NBS attributed the decline in food inflation in September to a reduction
in prices of some food items particularly tubers, palm oil, maize, beans,
and vegetables.

 

The core index, which excludes the prices of volatile agricultural produce,
also rose by 3.86 per cent to 17.60 per cent year-on-year in September
compared to 13.74 per cent in the corresponding month in 2021.

 

Core inflation was driven by higher prices of gas, liquid fuel, passenger
transport by air, passenger travel by road, and solid fuel.

 

 

However, month-on-month, the core inflation rate was 1.59 per cent which was
relatively the same rate recorded in August.

 

Year-on-year, the urban inflation rate increased by 4.06 per cent to 21.25
per cent in September, compared to 17.19 per cent in September 2021.

 

Month-on-month, the urban index declined by 0,34 per cent to 1.46 per cent
compared to 1,79 per cent in August.

 

Similarly, the rural inflation rate increased by 4.24 per cent to 20.32 per
cent year-on-year compared to 16.08 per cent recorded in September 2021.

 

Month-on-month, the rural index was down by 0.48 per cent to 1.27 per cent
compared to 1.75 per cent in August.

 

According to the NBS, year-on-year, at states' level, inflation was highest
in Kogi at 23.82 per cent; Rivers - 23.49 per cent, and Benue - 22.78 per
cent, while Abuja - 17.87 per cent, Borno - 18.12 per cent, and Adamawa
18.42 per cent, recorded the slowest rise in the headline index.

 

However, month-on-month, highest price increases were recorded in Jigawa -
2.58 per cent, Yobe - 2.22 per cent, Benue - 2.05 per cent, Abuja -0.72 per
cent, Sokoto - 0.19 per cent and Adamawa - 0.25 per cent, recorded the
slowest rise.

 

According to the NBS, year-on-year, food inflation was highest in Kwara
33.09 per cent, Kogi - 28.46 per cent, and Ebonyi - 27.41 per cent, while
Kaduna - 18.84 per cent, Jigawa - 19.20 per cent and Sokoto - 19.44 per
cent, recorded the slowest rise on year-on-year food inflation.

 

Month-on-month, however, food inflation was highest in Enugu at 2.61 per
cent, Ogun - 2.50 per cent, and Oyo - 2.43 per cent, while Sokoto - 0.88 per
cent, Ondo - 0.38 per cent and Niger - 0.62 per cent, recorded the slowest
rise on month-on-month inflation.

 

Commenting on the latest inflation numbers, analysts at Cowry Assets
Management Limited stated: "Looking ahead to October, we anticipate a slower
acceleration in inflation due to supply disruptions caused by recent

 

flooding in some food-producing regions.

 

"However, as we approach the year-end festive period, prices may begin to
take another surge due to the continued weakening of the Nigerian naira.
Thus, we project headline inflation to rise marginally to 21 per cent in
October."

 

-This Day.

 

 

 

Nigeria: Why Aviation Sector Crisis Persists, Stakeholders Tell Reps

Stakeholders in the aviation sectors have disclosed that the crisis in the
industry persisted because of some salient issues that have not been
adequately addressed.

 

They disclose this at a meeting with the leadership of the House of
Representatives led by the Speaker, Femi Gbajabiamila yesterday.

 

The meeting attended by the Chairman, Airline Operators Of Nigeria, who is
also the chairman, AZMAN Airline, Abdulmunaf Sarina, Chairman Air Peace,
Allen Onyema as well as representatives of Emirates and other foreign
airlines was a follow up on the earlier meeting held few months ago before
the House went on break.

 

 

Speaking separately, the stakeholders said trapped funds belonging to
foreign airlines, lack of access to foreign exchange as well as the
operation difficulties being faced by domestic airlines were the major
problems aggravating the crisis in the sector.

 

The Spokesperson, of AON, Prof. Obiora Okonkwo said, foreign airlines have
dominated the industry in terms of slots and quantum of flights coming in
and out of the country.

 

He however noted that, funds belonging to Foreign airlines which were tagged
as trapped were not blocked because they are in their accounts in Naira and
have access to them.

 

Dr Okonkwo noted that, the foreign airlines are only interested in
converting the funds to dollars using the official exchange rate which he
said will deprive the country of the scarce foreign exchange.

 

He said that, foreign airlines must not be allowed to convert their funds to
dollars at the official CBN rate but to get it at the parallel market or
through the I&A window where local operators are getting their foreign
exchange.

 

On his part, the Chairman, Air Peace, Allen Onyema said, countries who's
airlines are enjoying privileges in Nigeria must reciprocate the feature by
according some privileges to Nigerian airlines to operate in their
countries.

 

The International Air Travel Association (IATA) regional manager for West
Africa, Dr Samson Fatokun said Nigeria accounts for 32% of trapped airlines
funds in the world and is is sending wrong signal which will discourage
investors to invest in the country.

 

In his remark, the Speaker, Femi Gbajabiamila said, the meeting was to find
ways to move forward and find solutions to all the issues raised.

 

He noted that, although the Central Bank of Nigeria, Ministry of Finance and
other agencies billed to attend the meeting were absent, they will discuss
some critical issues and set a new date for an expanded meeting involving
all the stakeholders.

 

-Daily Trust.

 

 

 

Nigeria: More Trouble For Nigeria As NLNG Declares Force Majeure On 22mtpa
Plant Over Flood-Related Disruptions

Nigeria may be facing additional revenue challenges and gas shortage as the
Liquefied Natural Gas (NLNG) Limited has declared force majeure on its 22
million tons per annum (mtpa) processing plant due to widespread flooding
that has disrupted gas supply to the company.

 

The development could worsen Nigeria's cash crunch situation and curtail
global gas supply as Europe and other countries struggle to replace Russian
exports due to the invasion of Ukraine.

 

The NLNG in a statement yesterday, by its General Manager, External
Relations and Sustainable Development, Mr. Andy Odeh, said all of its
upstream gas suppliers had declared force majeure, forcing it to make the
declaration as well.

 

 

"The notice by the gas suppliers was a result of high floodwater levels in
their operational areas, leading to a shut-in of gas production which has
caused significant disruption of gas supply to NLNG," Odeh said.

 

He added that NLNG was determining the extent of the disruption and would
try to mitigate the impact of the force majeure.

 

Flooding in Nigeria has killed more than 600 people, displaced 1.4 million
and destroyed roads and farmland.

 

In fact, the National Emergency Management Agency (NEMA) revealed on Sunday
that about 2,504, 095 persons have been affected by the worst natural
disaster that ravaged the country in several years.

 

Officials have warned that the flooding, caused by unusually heavy rains and
the release of water from a dam in Cameroon, could continue into November.

 

 

The NLNG's supply had already been limited due to prolific oil theft that
had slashed output from what was typically Africa's largest exporter.

 

The company had exported roughly 18 cargoes in September, according industry
data.

 

The company had declared recently that it lost almost $7 billion this year
as a result of the impact of the alarming oil theft and pipeline vandalism
as it was no longer operating at its nameplate capacity of 22mtpa due to gas
shortages.

 

Nigeria relies on fossil fuel exports for 90 per cent of its foreign
exchange and roughly half its budget. Crude oil exports fell below one
million barrels per day (bpd) on average in August, the lowest level since
the 1980s, due to theft that has exceeded 80 per cent on certain pipelines.

 

Meanwhile, a civil rights advocacy group, the Human Rights Writers
Association of Nigeria (HURIWA), yesterday backed human rights lawyer, Femi
Falana on allegation that there was a deliberate attempt to cover up the
involvement of military personnel in oil theft in the Niger Delta region.

 

HURIWA's National Coordinator, Emmanuel Onwubiko, who aligned with the
position of the senior lawyer, described, "as sacrilegious, contemptible and
scandalous", the justification by the military, of the destruction of a
vessel loaded with stolen crude oil in the Niger Delta area.

 

Besides, the group has called for a probe of a viral video in which a
private jet purportedly belonging to a British businessman was seen flying
out from the Zamfara Gold filled forests with what were believed to be gold
haulage stolen from Zamfara State.

 

HURIWA in a statement wondered why the federal government did not tell
Nigerians why it ordered a no fly zone in Zamfara State a year ago, when it
was clear that there was no airport in Zamfara State.

 

The group therefore called for investigation of the "massive looting" of
Gold and solid minerals from Zamfara State by an independent judicial panel.

 

The group also called for the constitution of a judicial panel of inquiry on
the oil bunkering vessel set ablaze by security agents after the vessel was
arrested by a private pipeline surveillance team, Tantita Security Services
led by a former militant leader, Government Ekpemepulo, popularly known as
Tompolo.

 

Onwubiko recalled that the military at a briefing last week, had claimed
that the swift destruction of the oil bunkering vessel is in line with the
"rules of engagements."

 

-This Day.

 

 

 

Nigeria: Petrol Scarcity Yet To End In Abuja As Gridlock Persists In Lokoja

The scarcity of petrol is yet to end in Abuja just as some tanker drivers
blame persistent gridlock in Lokoja, Kogi State.

 

According to a survey by Daily Trust yesterday, while more fuel stations are
now dispensing petroleum products, there are still visible queues over one
week after the petrol scarcity began.

 

The Nigerian Midstream and Downstream Petroleum Regulatory Authority,
NMDPRA, had blamed the flood taking over highways in Lokoja for the
scarcity. The Nigerian National Petroleum Company Ltd assured of consistent
supply of over 20 days.

 

Speaking yesterday, some tanker drivers noted that the situation has not
abated along the Lokoja to Abuja highway.

 

 

"The situation has not ended but more tankers are plying the route from
Lagos. Tankers spend over eight hours to pass through Koton Karfe where the
river overflowed," said Musa Garba, a tanker driver.

 

Also speaking, an official of the Independent Petroleum Marketers
Association of Nigeria, IPMAN, northern region, Mohammed Iliyasu, said it
could take two weeks for normalcy in retailing petroleum products.

 

Iliyasu said "We are passing through Benue and now from Bida road because
they just barely finished fixing the bad portion. So gradually, things are
improving and in two weeks or so, it will be okay."

 

Akin Kolade, a tanker driver discharging product at a station in Abuja, said
it took him hours to scale through traffic at Lokoja.

 

"It is better than before but we still spend over seven hours crossing Koton
Karfe. Because of the water, it is now a single lane and road safety ensures
only few vehicles pass at a time to avoid a crash on the narrow road."

 

Meanwhile as the scarcity continues, some motorists said they have to buy
petrol from stations selling at N200 to N220 per litre.

 

Gabriel Fawole said he got the product at nearby Nasarawa State at N220/l
without a queue.

 

Aliyu Hassan said he gets petrol from some of these stations and sells at
black market price of N3500 for a 10-litre keg which is N350/l in Abuja.

 

When contacted, the spokesman for NMDPRA, Appolo Kimchi, said the scarcity
situation was gradually improving.

 

"Customer care is working to ensure more trucks load petrol Abuja. It is
even improving by the day and you will see a reduction," Mr Kimchi said over
the telephone.

 

According to NMDPRA, daily petrol stock report for Sunday, Nigeria has 1.383
billion litres of petrol capable of lasting for 22 days. Out of this, the
volume on ground can last for 12 days while about 10 days' supply has
arrived at the ports.

 

-Daily Trust.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 


 


Invest Wisely!

Bulls n Bears 

 

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Skype:         Bulls.Bears 



 

 

 


 

INVESTORS DIARY 2022

 


Company

Event

Venue

Date & Time

 


 

 

 

 

 


 

 

 

 

 


 

National Unity Day

 

December 22

 


 

Christmas Day

 

December 25

 


 

Boxing Day

 

December 26

 


Companies under Cautionary

 

 

 


CBZH

Meikles

Fidelity

 


TSL

FMHL

Turnall

 


GBH

ZBFH

GetBucks

 


Zeco

Lafarge

Zimre

 


 

 

 

 


 <mailto:info at bulls.co.zw> 

 


 

 


DISCLAIMER: This report has been prepared by Bulls ‘n Bears, a division of
Faith Capital (Pvt) Ltd for general information purposes only and does not
constitute an offer to sell or the solicitation of an offer to buy or
subscribe for any securities. The information contained in this report has
been compiled from sources believed to be reliable, but no representation or
warranty is made or guarantee given as to its accuracy or completeness. All
opinions expressed and recommendations made are subject to change without
notice. Securities or financial instruments mentioned herein may not be
suitable for all investors. Securities of emerging and mid-size growth
companies typically involve a higher degree of risk and more volatility than
the securities of more established companies. Neither Faith Capital nor any
other member of Bulls ‘n Bears nor any other person, accepts any liability
whatsoever for any loss howsoever arising from any use of this report or its
contents or otherwise arising in connection therewith. Recipients of this
report shall be solely responsible for making their own independent
investigation into the business, financial condition and future prospects of
any companies referred to in this report. Other  Indices quoted herein are
for guideline purposes only and sourced from third parties.

 


 

 


(c) 2022 Web: <http://www.bullszimbabwe.com>  www.bullszimbabwe.com Email:
<mailto:info at bulls.co.zw> info at bulls.co.zw Tel: +263 4 2927658 Cell: +263 77
344 1674

 


 

 

 

 

 

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