Major International Business Headlines Brief::: 12 September 2022

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Major International Business Headlines Brief::: 12 September 2022 

 


 

 


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

 


 

 


 

ü  UK economy grew slower than expected in July

ü  Japan could lift cap on foreign tourists to lift economy

ü  Bank of England delays interest rate decision after Queen's death

ü  Strike action cancelled after the Queen's death

ü  'Liz Truss's energy plan is not enough to help us'

ü  Fixed energy bills to get automatic discount

ü  West Africa: ECOWAS Hydrocarbon Experts Finalized Draft Regional
Petroleum Code

ü  Nigeria: Lekki Deep Seaport - Cameroonian Shippers Begin Cargo Import
Through Nigeria

ü  Liberia: Businessman Assad Fadel Makes Passionate Call to Prioritize
Liberian-Made Products

ü  Liberia: Energy Sector Delegation Visits ERERA

ü  Liberia: Democracy Watch Expresses Concern Over Ongoing Road Construction

ü  Nigeria: Oil Theft - Nigeria Loses $700 Million Monthly - Official

ü  Nigeria: How Nigeria's Only State-Owned Airline, Ibom Air, Is Dominating
Nigeria's Sky

ü  Nigeria's $15.7bn 2022 Fuel Subsidy Projection to Exceed All 36 States'
Budget - Report

ü  Uganda: Government to Double Money Given to the Elderly

ü  Kenya's Stock Rebounds After Election Jitters

ü  Sudan: Gold Remains the Country's Largest Export Commodity

 


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UK economy grew slower than expected in July

The UK economy grew by 0.2% in July, according to official data, following a
sharp drop in the previous month.

 

The Office for National Statistics said the services sector was the biggest
contributor to growth, helped by the UK hosting the Women's Euro
Championship.

 

However, while the economy expanded in July, the growth was slower than
analysts had expected.

 

Gross domestic product (GDP) fell in June due to the extra bank holiday for
the Queen's Jubilee.

 

GDP - which measures all the goods and services produced by the UK - fell by
0.6% in June because of two fewer working days.

 

Analysts have said the bank holiday for Queen Elizabeth's state funeral on
19 September, as well as the 10 days of national mourning, could impact
economic growth and push the UK into recession sooner than expected.

 

What is GDP and how is it measured?

Energy bills to be capped at £2,500 for typical household

Last month, the Bank of England said it expected the UK to fall into
recession at the end of this year.

 

A recession is defined as two consecutive quarters, or three-month periods,
of shrinking output. Between April and June, the economy contracted by 0.1%
compared with the previous quarter.

 

A bank holiday affects growth because there are fewer people at work.

 

Samuel Tombs, chief UK economist at Pantheon Macroeconomics, expects the
Queen's funeral to impact economic growth by 0.2%.

 

He said the extra public holiday could have a bigger impact on the economy
than the extra day off for the Jubilee in June, "as the hospitality and
tourism sector likely won't benefit, but many businesses still will shut".

 

"That said, many businesses will be able to catch up work, as most of them
did in June."

 

As well as the Women's Euro Championship, which was won by the England team,
the Commonwealth Games boosted services during July. Second-hand car sales
were also strong.

 

However, there was evidence elsewhere that consumer spending remained under
pressure because of rising inflation, which reached a four decade high of
10.1% in July.

 

The ONS said that between May and July, economic growth was flat compared
with the previous three months.

 

The production and construction sectors both shrank in July. Production was
hit by a fall in demand for energy such as electricity.

 

The ONS said that while this may have been due to "higher than usual
temperatures", anecdotal evidence suggested "that there may be some signs of
changes in consumer behaviour and lower demand in response to increased
prices".

 

Jake Finney, economist at the accountancy firm PwC, said that although the
economy grew in July, he now expects a contraction in the third quarter
which runs between July and September.

 

"This would mean that the UK enters a technical recession for the first time
since lockdown restrictions ended," he said.

 

Others, however, reckoned that the UK might see some growth following the
government's decision to limit the rise in gas and electricity prices as
well as new Prime Minister Liz Truss's pledge to reverse a 1.25% rise in
National Insurance.

 

Pantheon's Mr Tombs said: "We continue to think that a recession will be
narrowly avoided over the coming quarters."-BBC

 

 

 

Japan could lift cap on foreign tourists to lift economy

Japanese officials may further relax border controls for foreign travellers
as a way to boost its economy, local reports say.

 

Deputy Chief Cabinet Secretary Seiji Kihara told local TV a weak yen was
"most effective in attracting inbound tourism".

 

The yen slid to its lowest point against the US dollar in 24 years last
week, dropping as much as 1.7 percent.

 

He said a cap on daily entries could be lifted in the "not so distant
future".

 

Japan has barred most foreign visitors for the last two years amid measures
to slow the spread of Covid.

 

Last year, overseas visitors were even banned from the delayed 2020 Tokyo
Olympic Games.

 

However earlier this month the number of foreign tourists allowed to enter
the country was raised to 50,000 per day from 20,000, and tourists were no
longer required to travel with a guide.

 

Other reports suggest the government may scrap the daily cap on arrivals
altogether.

 

The US dollar has gained strength against other currencies as investors keep
a watchful eye on the Federal Reserve's interest rate hikes.-BBC

 

 

 

Bank of England delays interest rate decision after Queen's death

The Bank of England has postponed a key decision on interest rates following
the death of Queen Elizabeth II.

 

It said that "in light of the period of national mourning", the Monetary
Policy Committee's decision would now be announced at midday on 22
September.

 

It follows moves by several public bodies to change their plans for the
coming week after the death of Britain's longest-reigning monarch.

 

The Bank had widely been expected to increase rates on Thursday.

 

Economists had been predicting that the UK's central bank would raise rates
to 2.25% - the highest level since December 2008.

 

Last month, the Bank raised interest rates by the highest margin in 27 years
in an attempt to keep soaring prices under control. It also predicted that
the UK economy would fall into recession later this year.

 

Higher interest rates can make borrowing more expensive, meaning people have
less money to spend and prices will stop rising as quickly. However, some
have question how effective UK rate rises can be when inflation is caused by
global issues.

 

Energy prices climbed sharply when lockdown was lifted and the economy
started to return to normal. They have increased further as Russia sharply
cut its gas supplies to Europe. It has pushed up the price of gas across the
continent, including in the UK, having a huge knock-on effect on consumers.

 

Governor Andrew Bailey said a recession would "overwhelmingly be caused by
the actions of Russia and the impact on energy prices".

Speaking in front of the Treasury Committee earlier this week, the Bank of
England's governor, Andrew Bailey, defended its track record: "The person
going to put the UK in recession is Vladimir Putin, not the MPC [Monetary
Policy Committee]."

 

He also said the Bank would take Prime Minister Liz Truss's energy plan
announcement "into account" when next deciding on interest rates.

 

During her campaign, Ms Truss hit out at the Bank of England, accusing it of
being slow to react to rising prices and protect vulnerable households.

 

But the new Chancellor, Kwasi Kwarteng, has reiterated his "full support for
the independent Bank of England and their mission to control inflation,
which is central to tackling cost of living challenges".

 

He has also said that he and Mr Bailey would meet twice a week from now on
to discuss the rising cost of living.

 

Bank defends rate hike ahead of looming recession

Energy firms will contact customers over bill cap

Prices are rising at its fastest rate in 40 years, with inflation at 10.1%.

 

On Thursday, the prime minister has announced that the government would
limit energy bill rises for all households for two years in an attempt to
prevent widespread hardship.

 

A typical household energy bill will be capped at £2,500 annually until
2024.

 

Analysts say the huge support scheme could cost up to £150bn, but announcing
the package Ms Truss said "extraordinary times call for extraordinary
measures".

 

Further detail is expected by the end of the month, as the chancellor is
expected to set out costings in a "fiscal event", where he will outline the
level of borrowing necessary and any new tax measures he deems necessary to
fund the package of support.-BBC

 

 

 

Strike action cancelled after the Queen's death

Some of the UK's biggest strikes have been called off after the death of
Queen Elizabeth II.

 

Unions representing Royal Mail postal workers and rail staff said that "out
of respect for her service to the country and her family" they had chosen to
cancel immediate strike action.

 

Queen Elizabeth II, the UK's longest-serving monarch, died at Balmoral aged
96, after reigning for 70 years.

 

Some shops have announced temporary closures as a mark of respect.

 

The planned strike action by postal workers on Friday 9 September and RMT
rail worker walkouts on 15 and 17 September has been suspended.

 

The train drivers' union Aslef has also postponed a strike planned for 15
September.

 

The Rail Delivery Group said train timetables would be normal now that
strikes were not going ahead.

 

A spokesperson from the Rail Delivery Group, which represents train
operators, said it welcomed the decision by the RMT to call off next week's
strike action at a time of "national mourning".

 

"The whole railway family is united in sending our condolences to the Royal
Family," the spokesperson said.

 

Network Rail has confirmed that train services will run as normal next week.

 

It will also look at any scheduled weekend engineering works that fall
within the "laying in state period" and scale it back. Works might be
postponed if they prevent people from travelling to London to pay their
respects.

 

The RMT union intends to reschedule the strikes, but has not yet decided
when. It would need to give two weeks' notice of any action, as would the
Aslef union.

 

RMT general secretary Mick Lynch said that his union joined the "whole
nation in paying its respects" to Queen Elizabeth.

 

"We express our deepest condolences to her family, friends and the country,"
he added.

 

Train drivers' union Aslef said: "In light of the sad news of Queen
Elizabeth II's death, Aslef is postponing its industrial action on 15
September. We express our deepest condolences to her family, friends and the
country."

 

The TSSA rail union has also cancelled planned industrial action for
September and said it would be "respecting the period of public mourning".

 

The Trades Unions Congress said it would postpone its annual congress until
later this autumn following the death of the Queen.

 

A spokesman said it was "as a mark of respect" and recognised "her many
years of dedicated service to the country".

 

Staff in the CWU, which represents postal workers, had been on strike on
Thursday. But the union cancelled Friday's planned walkout after the Queen's
death was announced.

 

CWU general secretary Dave Ward said the action had been cancelled,
"following the very sad news of the passing of the Queen, and out of respect
for her service to the country and her family".

 

Workers across a range of industries including BT call centre staff,
Openreach engineers, railway workers and barristers have walked out in
recent weeks in pay disputes as wages fail to keep up with soaring prices.

 

The Criminal Bar Association said that planned barristers' demonstrations
next week had been cancelled "out of respect".

 

But it added that there had been "no movement" from the government so
industrial action would continue.

 

Shops such as Selfridge's, which was granted a royal warrant in 2001, closed
early on Thursday and it said it would remain shut on Friday before
reopening this weekend. Toy store chain The Entertainer will also be closed
on Friday and offered its "sincere condolences" to the Royal Family.

 

Betting shops Betfred and William Hill have said they will close on Friday.

 

Tourist attraction Legoland Windsor is also closed on Friday. The theme park
said those who were due to visit would receive an email about their
booking.-BBC

 

 

 

'Liz Truss's energy plan is not enough to help us'

Scottish businesses have warned Liz Truss that her plan to help firms cope
with energy bills may not be enough to prevent a "tsunami" of closures.

 

The prime minister will cap average annual household energy bills at £2,500
for two years, with companies receiving "equivalent support".

 

But hospitality bosses facing soaring costs have criticised a lack of
clarity from Westminster.

 

The government insists its strategy will help boost economic growth.

 

Businesses, as well as charities and public buildings, will see their energy
costs capped at the same price per unit that households will pay under the
new plans.

 

The commercial scheme is set to run for six months and is to be reviewed
after three – at which point targeted support could be introduced for
certain sectors deemed to be particularly vulnerable.

 

However, Scottish hospitality business owners have told BBC Scotland that Ms
Truss's statement was short on detail.

 

Billy Gold, owner of the Heilen Jessie bar in Glasgow's east end, has seen
his standing charges alone increase by 600%.

 

He warned that the UK government's proposals would do little to stave off
the crisis facing his family business.

 

"To say businesses will receive equivalent support I think is ambiguous in
the extreme," Mr Gold said.

 

"If that means 'look how well I've done, things won't go any higher', I'm
sorry Liz, things are too high already and my business, like many
businesses, is on its uppers."

 

The publican explained he would have to charge £8.40 for a pint of his
cheapest lager, as well as increasing turnover, to keep his firm on an even
keel.

 

"You don't need to be Alan Sugar to figure out that isn't going to happen,"
he told the BBC.

 

Mr Gold, who described small and medium enterprises as the "lifeblood" of
the economy, said he may have to start reducing his staff of 11 local
workers.

 

"I don't even want to say it but if I've got to do it I don't have a
choice," he added.

 

"It would break my heart to be the guy that's got to do that but if that's
what I've got to do, that's what I will do.

 

"But you cannae run a business without staff. You're then on a race to the
bottom, a downward spiral."

 

Paul Banham, operations director of the Singl-end cafe and bakehouses in
Glasgow, said the prime minister's statement had sparked confusion.

 

He told the BBC: "I don't know what will happen if I've signed up to a
contract two months ago, will the price cap still apply to that?

 

"There's also talk of a sector-specific review over the next few months to
try and come up with more targeted help.

 

"The hospitality industry would say there was some targeted help during
Covid so why can't some of that support not be applied straight away? Why
does it have to be a three-month wait?"

 

Mr Banham added: "Many businesses won't be able to survive while they wait."

 

He said VAT cuts and business rates relief would also be required to save
struggling hospitality firms.

 

"A price cap is a basic starting minimum to stop the impending tsunami of
businesses closing," he said.

 

"Every week that goes by, every month that goes by, operators are getting
pushed to the brink."

 

Andrew Chisholm, who runs Airdrie-based Christie the Baker, is also awaiting
further clarity from the government.

 

"It's all guesswork," he said. "There's nobody giving me precise figures off
the back of what we heard this morning.

 

"We still haven't really seen the devil in the detail."

 

His firm is facing a 600% gas bill increase under Ms Truss's proposals, with
a further 200% hike in electricity costs.

 

"Going forward, the way the gas price is, it will be unsustainable," he
added.

 

"I still think that it's going to be very, very difficult running this
business in the next 12 months."

 

'Cliff edge'

The Federation of Small Businesses Scotland has warned that one in six small
firms is expecting to close, be sold or downsize in the next year.

 

Policy chair Andrew McRae "warmly welcomed" Ms Truss's announcement, but
added: "We do need more detail and we'll be working with the new government
to clarify what happens next.

 

"The six-month lifeline to get businesses through the winter is vital, but
this must not result in a cliff edge with businesses being hit even harder
in the spring."

 

The UK government says its price cap will spark economic growth and curb
inflation by as much as 5%.

 

Ms Truss told MPs: "Extraordinary challenges call for extraordinary
measures, ensuring that the United Kingdom is never in this situation
again."-BBC

 

 

 

 

Fixed energy bills to get automatic discount

Customers on fixed energy deals will see their tariffs automatically cut,
the Department for Business has said.

 

New Prime Minister Liz Truss announced typical annual household bills would
be capped at £2,500 for two years.

 

People "do not need to take any action to get the benefits of this scheme,"
a spokesperson for the Department for Business told the BBC.

 

Energy firms have said they will contact customers over what government
plans to cap bills mean for them.

 

Meanwhile, Downing Street has said it does not believe the mourning period
for the Queen's death will affect the rollout of the new policy.

 

The prime minister's official spokesman said: "The public should be
reassured that the energy price guarantee will be in place for households
from 1 October, as planned."

 

What the new energy plan means for you

Truss spends billions to cap soaring energy bills

Before Thursday's announcement, typical household bills had been due to rise
from £1,971 to £3,549 a year.

 

Scottish Power said it would be in touch with customers between now and 19
September with details of what the new prices will be.

 

The company's chief executive, Keith Anderson, told the BBC that the
government's energy plan was a "massive step forward" as it gave customers
certainty over how much they will pay for energy over the winter.

 

"What this does is it buys us time," he said. "It's now about how we use
that time and what we do in the next 18 months and two years."

 

'Massive intervention'

On Thursday, Ms Truss announced a huge support scheme for energy bills that
analysts say could cost up to £150bn, with the prime minister saying
"extraordinary times call for extraordinary measures".

 

As well as plans to limit energy bill increases for households, Ms Truss
also outlined proposals "to make sure we have security of [energy] supply
for the long-term".

 

This included issuing new oil and gas exploration licences for the North
Sea, lifting the ban on fracking for shale gas, and looking to negotiate
lower-priced long-term contracts with renewable and nuclear power companies.

 

The government was due to publish a British Geological Survey review into
fracking. But Downing Street said this will now not be released until after
the mourning period for the Queen has ended.

 

Mr Anderson, who has worked in the energy industry for 22 years, said the
plans overall signalled "the biggest shift and change ever in this sector".

 

"It will change the industry forever," he said. "I think it's a massive
level of intervention, it's a moment to reset and restructure. We need to
use this time carefully to build a market that's fit for the future.

 

"But also most importantly to build energy supplies and energy sources that
also protect this country and protect customers for the future as well."

 

Energy supplier E.On said its customers did not need to do anything as it
would implement the government scheme across its tariffs.

 

Customers on a fixed tariff will not need to change their contract, it said.

 

Greg Jackson, chief executive and founder of Octopus Energy, said firms were
still working through the details and customers should "sit tight and wait
to hear from their energy supplier".

 

"Nothing will change until 1 October and we'll be in touch with everyone
before then," he added.-BBC

 

 

 

West Africa: ECOWAS Hydrocarbon Experts Finalized Draft Regional Petroleum
Code

Experts from Ministries in charge of Hydrocarbon of some ECOWAS Member
States met from 31st August to 2nd September 2022 in Abidjan, Cote d'Ivoire
for a final review and alignment of the draft ECOWAS Petroleum Code
(ECOPEC). This was done ahead of its upcoming submission for validation by
sector ministers.

 

The Abidjan meeting comes after a regional validation workshop of the
initial draft regional Petroleum Code, which was held in Accra, Ghana from
25 to 27 May 2022. It had in attendance a representative of the African
Development Bank, the consultant responsible for the study, and delegates
from seven ECOWAS Member States, including Benin, Cote d'Ivoire, The Gambia,
Ghana, Niger, Nigeria and Sierra Leone. After three days of closed-door
meeting, the participants completed a detailed review of all the provisions
of the draft text with necessary amendments and further aligned the French
and English versions of the draft regional Petroleum Code.

 

 

After this meeting, ECOWAS is to organize a meeting of Ministers in charge
of Hydrocarbon in October 2022 to be preceded by an experts' meeting for
validation of the draft regional Petroleum Code. Thereafter, the draft
regional Petroleum Code will be presented to the ECOWAS Parliament for
opinion, and in December 2022, a Supplementary Act adopting the draft
regional Petroleum Code will be presented for signature of the relevant
ECOWAS governing bodies (Council of Ministers or Authority of Heads of State
and Government).

 

It is important to note that the Abidjan meeting was declared open and
closed by Mr. Bayaornibè Dabire, ECOWAS Director for Energy and Mines who,
in his closing remarks, commended the experts for the depth of
deliberations. He further expressed satisfaction at the successful alignment
of both versions of the document, a document that will promote an integrated
development of the region's petroleum sector.

 

 

It is worth recalling that the ECOWAS Commission had, in 2018, introduced
the development of an ECOWAS petroleum code with a view to harmonizing
policies and regulations in the hydrocarbon sector following an analytical
study of petroleum policies, laws, regulatory and institutional frameworks
of the petroleum sector in West Africa. The study was done in conjunction
with the African Development Bank.

 

In broad terms, it appears that a harmonized regional text will allow
regulation to evolve by considering international best practices and current
matters facing the sector. (Technology, security, the environment, local
content, among others); and allow for cost-effective exploration and
development of hydrocarbon resources in the region. A region-wide
perspective is required in this respect for greater synergy and
complementarity through combined efforts. This would increase the
substantial contribution of hydrocarbon resources to sustainable development
in the region.

 

 

The regional petroleum code, therefore, lays down general, common and
specific provisions that capture all hydrocarbon exploration and production
activities in the ECOWAS region.

 

The regional Petroleum Code defines procedures for exploration, research,
mining, pipeline transportation of crude hydrocarbon. It also includes tax,
customs and foreign exchange provisions. The code further includes
provisions on transparency, local content promotion, supply to the local
energy market of ECOWAS, local development, management of cross-border
deposits, gas flaring, development and management of cross-border pipelines,
the setting up of a petroleum development fund, and a sovereign fund,
environmental protection, among others.

 

The ECOWAS regional Petroleum Code is comprised of eight chapters and 76
articles. Implementing the code would enable Member States to make the most
of their oil and gas resources for the good of the
population.https://thenewdawnliberia.com/ecowas-launches-regional-off-grid-e
lectricity-access-project-rogeap-in-the-gambia-and-in-cote-divoire/

 

-New Dawn.

 

 

 

Nigeria: Lekki Deep Seaport - Cameroonian Shippers Begin Cargo Import
Through Nigeria

Due to renewed efficiency in the nation's seaports, importers in Cameroon
now import their cargoes through the Eastern ports and transit them to their
various destinations.

 

This was as the managing director of the Nigerian Ports Authority (NPA),
Mohammed Bello-Koko, said the authority with the Nigerian Shippers' Council
(NSC), are working on affordable tariffs for land locked transit cargoes
that will be imported into Nigeria when the Lekki Deep Seaport becomes
operational by September.

 

Speaking with Journalists yesterday, the NPA boss said that with the Lekki
deep seaport starting skeletal operation by 16th of September, Nigeria will
win back the transit cargoes, hitherto, lost to neighboring countries when
it operations begins fully before the end of the year

 

 

According to him, landlocked countries such as Mali, Chad, Niger Republic
had shown interest in moving their cargoes through Nigeria ports.

 

He said, "Niger Republic as a country formerly imports their cargoes through
NIgeria Ports. Mali is also interested and there are entities of in
neighboring countries that are interested in bringing in their cargoes, but
ours is to reach out as far as possible.

 

"We are encouraging the port management in Warri and Calabar in particular
to actually go to Cameroon and there was a business that came to the port
because of the engagement our port managers had with importers in Cameroon
so we will keep pushing these multilateral and cross border agreement and
where we need the assistance of the Federal Ministry of Foreign Affairs and
Transportation, we will let them know. As soon as one landlocked country
routes it's cargoes through Nigerian ports, others countries too will
follow."

 

 

Speaking on Lekki deep Seaport, the NPA boss, said the marine equipment
needed to start operation are already at the port.

 

He stated that when the port begins full operation, it will also reduce
congestion at the Tin-Can Island and Apapa port.

 

He said, "Lekki deep seaport will start full operation before the year runs
out and we believe that it will go ahead to reduce congestion at Apapa and
Tin can.

 

bigger vessels that we have never used before and we will start getting back
some of the businesses that we have been losing to neighboring countries.

 

"As soon as they start operation, the clearing procedures will be faster.
Also, we are working with the port, in conjunction with, Shipper's Council
to determine what the tariff will be on transit cargoes. Nigeria used to
have a lot of transit cargoes but at a point, it becomes impossible to clear
and with so many checkpoints along the borders but we are working with the
Nigerian Shippers' Council and Customs to also determine the tariffs for
transhipment cargoes.

 

 

"That is the business that Nigeria has lost overtime and the transhipment
cargoes can either be by sea or by roads to other countries that was why the
President gave instructions to connect the Lekki Deep Seaport To
Lagos-Ibadan standard guage to ease movement of cargoes and it is when you
are able to move cargo from the sea to the hinterland that you will be able
to get landlocked countries to route their cargoes through your port," he
said.

 

Speaking on commencement of operations at Lekki port, the MD said, "by the
15th of this month, Lekki deep seaport will have completed installation of
its equipment, so we can say the port is ready by 15th of September,
however, this is the first time in a long time that a new port will be set
up in Nigeria.

 

"A port with different system, different IT deployment that we dont have
currently in Nigeria will be at Lekki. No port currently in Nigeria has a
Ship To Shore Crane. The IT system they have has minimal human interaction
that you will do your clearance, other clearance processes from your office
and finishes everything containers will be identified using digital
information system.

 

"From 16th of September, they will start dry runs and testing. They are
recruiting and probably have finished recruiting Nigerians that will work
there and they need to train them on how to use the cranes and how to use
the digital system, clearing system and all that and that take a lot of time

 

so from our interactions with them, as far as we are concerned, Lekki deep
seaport is ready we are there when two vessels bring in the cranes and
others.

 

" The marine services will be provided by the NPA, pilot cutters and mooring
boats and so on are their. The Nigeria Customs will be their and the
President few weeks ago approved and designated Lekki deep seaport as a port
of destination. It has full compliment of a Port and vessels can come from
outside the country, berth and as well do rummaging and go," he said.

 

-Leadership.

 

 

 

Liberia: Businessman Assad Fadel Makes Passionate Call to Prioritize
Liberian-Made Products

Monrovia — The Chief Executive Officer of Mano Manufacturing Company
(MANCO), Assad Fadel is urging Liberians to patronize Liberian-made
products.

 

According to him, his company has been here since 1969 and has been
producing quality products.

 

"We have to love our own, when we say made in Liberia, we must patronize
made in Liberia; because made in Liberia means it is Liberian brothers and
sisters who are making the products, we have to be very careful, we have to
love our own, there are lots of products coming from outside and they are
not of good quality," he said.

 

Speaking Saturday, September 10, 2022 during an honoring program organized
by the Progressive Market Women Association of Liberia Mr. Fadel expressed
gratitude to the organization for recognizing the impactful contributions of
his company to the transformation of the country's business sector.

 

 

"I inherited the business from my father. My Father came to Liberia in 1960
as a chemist. When I asked my father what kept him in Liberia, he will tell
me that the people in Liberia are very friendly," he said.

 

Mr. Fadel said he is a Liberian by choice, stressing that when he interacts
with Liberians, mostly those who are engaged in visionary activities, he is
always comfortable to collaborate with such a group.

 

He assured the Progressive Market Women Association of Liberia of MANCO's
fullest support to complete their project.

 

"We have to understand the gratitude of this group, this is something that
is very big, we can even make it bigger," he said.

 

Speaking early during the program, the Leadership and members of the
Progressive Market Women Association of Liberia, located in Duala Bushrod
Island, paid homage to the Chief Executive Officer.

 

The Chairlady of the Progressive Market Women Association, madam Ada Oha
said their decision to honor the CEO was based on his continued efforts to
improve the lives of Liberians.

 

"We have called honorable Fadel to appreciate him for the numerous
contributions he has made to our nation and individual lives," she noted.

 

She narrated that marketers are fully supporting their families through the
products produced by the Mano Manufacturing Company that is on the Liberian
Market.

 

"We are all business people; we have always been seeking to see someone like
you among us," she said.

 

Madam Oha further recounted that during the Ebola pandemic that took the
lives of many people, MANCO stood with the people of Liberia by keeping
their products on the market.

 

She used the program to appeal for support from Mr. Fadel to complete their
building project at the newly constructed Duala market by President George
Weah.

 

-FrontPageAfrica.

 

 

 

Liberia: Energy Sector Delegation Visits ERERA

Accra, Ghana — A seven-member delegation from the electricity regulatory
commission of Liberia visited the ECOWAS Regional Electricity Regulatory
Authority (ERERA) on Tuesday, September 6, 2022, in Accra, Ghana.

 

The delegation, which was led by a Commissioner of the Liberia Electricity
Regulatory Commission (LERC), Mr. Michael Korkpor, was received by ERERA's
Regulatory Council Member, Dr Haliru Dikko and other senior officials.

 

Members of the delegation who are part of a larger entourage - consisting of
officials of the LERC and the Department of Energy - are on a tour of
selected electricity sector institutions in Ghana as part of a series of
reforms to liberalize the power sector in Liberia as well as develop the
capacity of the visiting institutions.

 

 

The delegation was treated to presentations which covered areas such as the
roles, mandate, structure and organization of ERERA, its regulatory
instruments and tools, key achievements of the regional regulatory body, and
an update on the ECOWAS Regional Electricity Market.

 

ERERA's presentation also covered areas it expects cooperation and possible
areas of support from and to LERC, respectively, which is one of the newly
established national regulatory bodies in West Africa.

 

As part of its mission, ERERA maintains partnership relations with national
regulatory authorities in Member States and provides them with technical
advice and assistance, at their request.

 

In this regard, the LERC is expected to maintain an active participation in
ERERA's standing Consultative Committees and working group activities,
ccollaborate with, and support ERERA on its data collection and management
in Liberia's power sector.

 

LERC is also expected to support ERERA in facilitating the translation and
implementation of the regional regulations for the electricity market in its
national regulations, as well as assist ERERA in licensing and monitoring
regional electricity market participants under its (LERC's) jurisdiction.

 

In addition, the LERC promised to collaborate with ERERA to maintain
cooperation among national regulatory authorities of ECOWAS Member States.

 

-FrontPageAfrica.

 

 

 

Liberia: Democracy Watch Expresses Concern Over Ongoing Road Construction

Monrovia — Democracy Watch Initiative (DWI), a partner organization to the
Open Society Initiative for West Africa (OSIWA), has expressed concern over
the latest criticisms that have characterized the ongoing road construction
works of the 45km 4-lane RIA highway.

 

The group said even though construction works have since started with
significant progress made until the heavy downpour of rain recently, some
have continued to vaguely condemn the contractors, East International Group
and China Railways, without considering the critical nature of work being
done and the significance of the route that leads to the country's only
international airport.

 

 

They noted that despite criticism in the presence of the rainy season,
contractors are still making progress with the bridges, culvert lines, box
culverts, as well as backfilling, teaming it a testimony to the contractors'
commitment to delivering within the deadline.

 

Democracy Watch maintained that its investigation has established the
legitimacy and technical competence of the contractor, as well as its
determine commitment to deliver on the deadline the 45km 4-lane ELWA-RIA
road project for the general good of the country.

 

"About a year ago, East International Group came under similar criticism
that it lacked the requisite equipment and expertise to even commence the
contract; but on the contrary, the contractor has proven to have all it
takes to deliver in time, given the completion of the super base, as well as
current progressive works being made on the road," the group said in a
statement.

 

Nevertheless, the group said it is worried that unnecessary criticisms
against a contractor that participated and won a highly competitive bidding
process, could undermine the entirety of works being done; as citizens'
cooperation is keen in the implementation phase of the contract.

 

Democracy Watch Initiative however cautions Liberians, particularly those
opposing the RIA road construction, to reconsider the overall significance
of said road to the development drive of the country.

 

It maintains that Liberia is in dire need of infrastructure development with
roads being a paramount proponent; as such, the group is encouraging
citizens to embrace such genuine efforts towards road connectivity and avoid
the everyday petit political wrestles.

 

Democracy Watch Initiative said: "Liberia cannot and must not afford to play
politics with sustained development."

 

At the same time, the pro-democracy group is calling on partners around the
globe to continue supporting the country's development agenda.

 

-FrontPageAfrica.

 

 

 

Nigeria: Oil Theft - Nigeria Loses $700 Million Monthly - Official

An official lamented that pipeline vandalisation impacts negatively on crude
oil production, gas supply, refineries' operations, among others.

 

The Nigerian National Petroleum Company Limited (NNPCL) on Sunday said it
losses 470,000 bpd of crude oil amounting to $700 million monthly due to oil
theft.

 

A statement by the NNPCL said that Bala Wunti, the Group General Manager,
National Petroleum Investment Management Services (NAPMS), made this
disclosure while speaking during a tour of the facilities of the NNPCL.

 

 

Mr Wunti said the pipelines particularly those around Bonny terminal cannot
function due to the activities of criminals.

 

He also argued that the number of barrels stolen daily is very huge, adding
that about 270 barrels per day that were supposed to be loaded in Bonny are
no longer going to be loaded because of theft.

 

"If you're producing 30,000 barrels a day, every month, you get 1,940
barrels. So what it means is that you can take it to 270 every four days,
calculate it in a month; you will have seven cargos on a million barrels,
that's seven million barrels," he said.

 

"When you multiply seven million barrels by $100 that is $700 million lost
per month, and about 150,000 barrels expected are differed; we are not
producing due to security challenges."

 

The official noted that "the Shell Petroleum Company (SPDC) trunk line, TNP
transnational pipeline cannot be operated and this has been like this since
March the 3rd that we put in this. Just take your calculator, 150,000, it
means if you want to arrive at 1 million barrels per day, it means every
week as a minimum, basically for one week alone, it's four cargo and four
cargo is four million barrels. Four million barrels formula bar or $100 is
$400 million. So you can do your calculations by yourself, take whatever
price you want, take this to multiply by the number of days that have been
shortened since March 3rd."

 

 

The NNPCL official said Forcados is not completely secure due to some
challenges, but assured that they were addressing it, and in two weeks it
may be fixed.

 

"But we also have Brass about 100,000 barrels, which is operated by Agip and
is also facing insecurity and vandalism," he said.

 

Impact

 

He lamented that siphoning of crude oil from oil facilities by criminal
individuals and groups impacts negatively on revenue to all stakeholders.

 

 

He explained that the quantity of oil delivered into these federal oil
terminals in the country has been limited by the activities of those he
described as pipeline vandals and organised crooks.

 

He said the impact of vandal activities caused low crude oil production,
interrupted gas supply, countrywide interruption of distribution of
petroleum products, refineries' downtimes, increasing instability in the oil
and gas market.

 

He said: "I will tell you the major thing that affects us. Nigeria will
suffer for it; the revenues are impacted, so we can only appeal to them to
rein in themselves, the oil theft situation is regrettable. It's not going
on across the whole of the Niger Delta, there are trunk lines that are more
impacted on, I think the Bonny trunk line ranks highest.

 

"Our major challenge as a country is our capability to respond and that is
as a result of several factors, the terrain as well as some incapacity that
we have."

 

On the support of technology in monitoring the illegal activities around the
oil facilities in the creeks, he said, "I was in the Saudi Arabia
infrastructure twice, and I know what they have. It's a digital control
system; it's different from our own. Digital control system, it's like you
have the control system of all your assets in one place.

 

"This is beyond the digital control system; it's also a security system and
we are doing it and to tell you that this was built-in by our in-house
software engineers because of the security sensitivities to it because they
are customized, the moment you give to somebody who creates that. So we use
a combination of technology to integrate and synchronize and create what we
are now confident and comfortable with."

 

Synergy

 

Speaking on the synergy with other government agencies, Mr Wunti explained
that the Nigerian Midstream and Downstream Petroleum Regulatory Authority,
the regulatory commission, issues what a Bill of Quantity and they also
handle vessel clearance and export permits while the Federal Ministry of
Trade and Industry, handles the issuance of export permits.

 

"We also relate with the Nigerian Customs Service which also helps with the
export permit and to also clear all the vessels; and the Central Bank of
Nigeria, processes all Nigerian Export Proceeds forms, Nigerian export
supervision scheme. So, these are all the agencies we deal with, it's not an
NNPC thing, we have to work through all these agencies before a ship can
come in and sail," Mr Wunti added.

 

The GGM NAPMS mentioned some of the government agencies at the terminals to
include: Nigerian Midstream and Downstream Petroleum Regulatory Authority,
former DPR and then the Regulatory Commission; the Nigerian Customs at the
terminal, NNPC terminal representatives, pre-shipment inspection agents, the
Nigerian Immigration officials, Nigerian Ports Authority and the Nigerian
Port Health Authority.

 

"Then recently, the Navy wanted to be at the terminal. In fact, we are
trying to deploy them anytime from now. They also want to be at the
terminals to see what is going on, because a lot of back and forth has been
going on in the recent past, blaming the Navy. So, they now said they want
to be there to participate physically in what's going on.

 

"You can see what is happening, that it's not just an NNPC thing, it is all
government agencies working together to make sure that each ship that comes
at any point in time has all the clearances," he said.

 

-Premium Times.

 

 

 

 

Nigeria: How Nigeria's Only State-Owned Airline, Ibom Air, Is Dominating
Nigeria's Sky

Many Nigerians are talking about Ibom Air, helping to amplify the beautiful
experiences of the airline passengers.

 

Many Nigerians seem to have a liking for Ibom Air, a commercial airline
wholly owned by the Akwa Ibom State Government, in the South-south region of
the country.

 

Set up just three years ago, Ibom Air has built a solid reputation and is
gradually dominating Nigeria's aviation sector, in what analysts attribute
to the foresight of the Akwa Ibom State Governor, Udom Emmanuel, and the
professionalism and dedication of the airline's management and staff.

 

 

The selling point for Ibom Air is, some passengers told PREMIUM TIMES, its
scheduled reliability - its ability to keep to scheduled time for departures
and arrivals.

 

Besides, their aircraft are clean. And they have a reputation for excellent
customer service, according to several passengers who have shared their
experiences on Ibom Air flights.

 

Stories abound of how several Nigerians have missed their Ibom Air flights
simply because they could not keep up with the airline's punctuality.

 

In March 2021, for instance, Ibom Air achieved 99.8 per cent schedule
reliability and 96 per cent on-time performance, a remarkable feat in
Nigeria's aviation history where passengers have become accustomed to
several hours of delayed flights and flight cancellations.

 

Ibom Air operated all its 708 scheduled flights for that month, and 706 of
those flights were on schedule, while 678 [it's 678] were on time.

 

 

It is the airline with the second highest number of domestic flights in
2021, and the one with the overall best on-time performance for that year,
the Nigerian Civil Aviation Authority (NCAA) said in a recently published
data.

 

The airline, with seven aircraft (five Bombardier CRJ900 and two Airbus
A220-300) in its fleet, flies 11 routes, covering six Nigerian cities -
Abuja, Calabar, Enugu, Lagos, Uyo, and Port Harcourt, and has operated 23,
630 flights and carried close to two million passengers as of 31 July 2022.

 

Its two Airbus were acquired as part of a recent deal to purchase 10 Airbus
A220 aircraft.

 

Ibom Air has edged out competitors in Victor Attah International Airport,
Uyo, where it is headquartered, and remains one of the only two airlines
operating from the Margaret Ekpo International Airport, Calabar. The other
is Air Peace.

 

 

It is one of the most preferred airlines for the lucrative Lagos-Abuja
routes because of its scheduled reliability.

 

'Surpasses average domestic flight'

 

Chidozie Uzoezie, an aviation analyst and CEO of The Afritraveller, was on
Ibom Air flight QI0602 from Lagos to Enugu on 24 October, 2021, and here is
how he rated the flight which was his first with the airline: Check in: 85
percent, Boarding: 80 percent, Punctuality: 90 percent, Aircraft: 90
percent, Crew: 90 percent, In-flight service: 80 percent, Flight: 95
percent, and Seat comfort: 95 percent.

 

The aircraft was a CRJ-900LR.

 

"Most of my expectations were met and even exceeded, especially with respect
to punctuality, crew and the actual flight," Mr Uzoezie said in his review
of the flight.

 

"Speaking in relative terms, the flight was everything I had expected, it
surpassed the average domestic flight in Nigeria. And I'll definitely fly
with Ibom Air again," he added.

 

Mr Uzoezie gave a description of the aircraft cabin.

 

"This particular aircraft (with registration number 5N-BWK) was delivered to
Ibom Air in 2019. It is configured with 90 seats in an all-economy class
layout.

 

"The aircraft cabin was very clean, and smacked of freshness as I stepped
onboard. And my first impressions were those of comfort, elegance, and
luxury. My seat was 12D - a window seat - which I had deliberately selected
during online check-in to help me put my avgeek skills to good use," he
said.

 

"With a four abreast configuration in a 2-2 layout, the CRJ-900 is one of
the most comfortable narrow body aircraft in the skies today. I didn't get
to measure the seat dimensions, but the aircraft offered impressive seat
width and generous leg room, better than the industry standard.

 

"The legroom was so generous that I could cross my legs in-flight without
space constraints. And to make good things even better, the seats were made
of leather, taking seat comfort to another level."

 

Many Nigerians are really talking about Ibom Air. They are happily helping
to amplify the beautiful experiences shared by the airline passengers.

 

A Twitter user, Nayomi (@Naayoomee) said in June that she went for Ibom Air
after her Lagos-Abuja flight on another airline was rescheduled from 3p.m.
to 9p.m.

 

"I went down and got Ibom Air, best flight I ever had. Didn't even know when
we landed. I rate them five (5) stars," she tweeted.

 

Oluwole Dada (@oluwole_dada), a sales and marketing expert, said on Twitter
that from a minor survey, Ibom Air is the best domestic airline when it
comes to punctuality.

 

"Many of the (other) airlines delay flights with no regard for the
customers," he said. "They care less if they (passengers) have an
appointment or business engagement."

 

Kate Nanyongo (@KateNanyongo), a Cameroonian, said she had a "wonderful
experience" on her first visit to Nigeria, courtesy of Ibom Air.

 

She said she could not stop telling people about Ibom Air when she got back
to Cameroon.

 

Insulated from politics

 

The running of Ibom Air is insulated from unnecessary political influence,
those familiar with its operations told PREMIUM TIMES.

 

For the Akwa Ibom government to allow the young airline to be so
business-focused and be managed independently by professionals is a rare
thing in a country where political and ethnic considerations seem to
influence most decisions of government officials, says Julius Ugwu, an
entrepreneur, who is into home interior design business in South-south and
South-east.

 

"For a person to fly a CRJ 900, there's a minimum number of freighting hours
he must have on the airplane," Governor Emmanuel, a 56-year-old former
banker, said in 2019 when he explained why most of the Ibom Air's employees
were from outside Akwa Ibom State.

 

"We need to have our people rated on the aircraft and we will spend money
and train our people so that in a short period, we will also have Akwa Ibom
names in the cockpit," he said.

 

The governor said the state government was arranging training programmes for
youths in the state willing to become pilots, aeronautic engineers, or take
up other career paths in the aviation sector.

 

Today, the airline has over 500 staff.

 

Ibom Air, in collaboration with the Akwa Ibom government, is training 100
young pilots in batches for its future operations. The second batch had been
scheduled to leave Nigeria for their training at Airbus in France, according
to the airline.

 

Weathering the storms

 

Ibom Air flew into terrible storms as soon as it began its operations: the
Covid-19 pandemic which crippled the world's economy, the #EndSars, a 2020
mass protest against police brutality that shook Nigeria, and now the
scarcity of aviation fuel in Nigeria and the continuous devaluation of the
naira against the U.S dollar.

 

The airline Chief Operating Officer, George Uriesi, spoke on the challenges
the airline has faced.

 

"This is an industry of tempestuous storms. One moment you're faced with the
existential threat of a total lockdown due to a totally unforeseen pandemic.
You think to yourself, 'is it that we chose the wrong time to start'?

 

"Then you survive and soon start recovering only to experience #EndSars!
Again you manage to recover," Mr Uriesi said a few weeks ago.

 

"And then the price of aviation fuel suddenly takes you on a roller coaster
ride where you find yourself hanging on for dear without a clear sense of
how long it will last and how far it will go.

 

"All of these are not to mention the depreciating naira and unavailability
of forex that the business depends on.

 

"It has really been a hair-raising roller coaster ride. But we have no
intention of rolling over and dying anytime soon. We will just keep
weathering it and working hard to succeed in spite of these obstacles," Mr
Uriesi added.

 

Even with the enormous challenges, Ibom Air is still doing greatly, and
still getting praises from Nigerians.

 

In July this year, for instance, Ibom Air achieved 72 per cent schedule
reliability and 68 per cent on-time performance, still a remarkable feat in
the face of the crippling challenges in the aviation sector.

 

The airline operated 848 out of 933 scheduled flights for that month, 265 of
the flights were either rescheduled or cancelled, while 271 of the flights
were delayed beyond five minutes, according to the data released by the
airline.

 

Again, it has been rated as the airline with the second highest number of
domestic flights (2,981) in the first quarter of 2022, and the one with the
overall best on-time performance within the period, according to data from
NCAA.

 

>From the data, Air Peace, Arik and Max Air are ranked as airlines that
recorded the most delayed flights at Nigerian airports within the period.

 

"We continue to manage the difficulties arising from fuel scarcity and the
closure of the domestic runway of the MMIA (Murtala Muhammed International
Airport, Lagos)," Ibom Air said on 2 August, while alerting the public to
the challenges they and other domestic airlines have continued to face in
Nigeria's aviation sector.

 

"But you really can't put Ibom air side by side with any airline in the
country," a Twitter user, @marvelumoh, tweeted recently.

 

"Yes they have some issues these days, I experienced one recently. But they
are still ahead as compared to any of the others," he said.

 

Expansion drive

 

The Victor Attah International Airport, named after the second civilian
governor of Akwa Ibom State, is undergoing extensive expansion to prepare it
for Ibom Air's plan to go international, around the West Africa sub-region.

 

A new International Terminal Building constructed by a renowned civil
engineering firm, VKS Nigeria Construction Ltd., is near completion, so is
the second phase of the 3.6 kilometre runway.

 

The airport's Maintenance, Repairs and Overhaul (MRO) facility is also near
completion.

 

"A lot of people don't understand what we have put in here, these are
technical details that can facilitate certain aspects of economic growth in
the state," Governor Emmanuel said of the MRO when he went on an inspection
visit to the project.

 

"The MRO can take two 747 aircraft series, eight of our A-220 300 series and
all the CRJs for now, all installations are near completion and you can
imagine we are the newest bride for all the aircraft maintenance companies
across the globe and we have received offers from aircraft maintenance
companies, you can imagine the foreign exchange this will bring to the
state," Mr Emmanuel added.

 

The governor calls the new terminal building in the airport, "the smartest
terminal building in Africa".

 

"I don't know what other countries would do tomorrow, but I think what
people should look at in Akwa Ibom is not just the building, it is not just
the infrastructure that we are building, the question there is, how can a
sub-national take up this level of responsibility? These are not small
projects, these are massive national projects.

 

"As of today, there is no country in West Africa that has an MRO, I stand to
be corrected," he said.

 

Governor Emmanuel said the establishment of Ibom Air and the upgrade at the
Uyo airport are all parts of his blueprint to make Akwa Ibom State become an
industrial hub.

 

The blueprint hinged around the opening of major gateways - the air, sea,
and land - to the oil rich state.

 

"When I came into office, I met one private jet and before I leave office I
will not leave with not less than 10 airplanes that would be beneficiary to
all Akwa Ibomites.

 

"Of course, the success of this airline (Ibom Air) holds immense benefits to
the people of Akwa Ibom, it shows the people our positive attitude, it shows
the people our creative minds, it shows the people our capacity, it shows
our people how we can weather the storm, it shows the people that we are the
eagle that can fly no matter the weather condition," the governor said.

 

-Premium Times.

 

 

 

Nigeria's $15.7bn 2022 Fuel Subsidy Projection to Exceed All 36 States'
Budget - Report

With Nigeria's petrol subsidy bill skyrocketing in 2022, the estimates for
the whole year would exceed the total expenditure by all the states of the
federation in 2021, which was $9.8 billion, a new report by a member of
President Muhammadu Buhari's Economic Advisory Council and Chief Executive
Officer of Financial Derivatives Company Limited (FDC), Mr. Bismarck Rewane,
has indicated.

 

The report came as the Nigerian National Petroleum Company Limited (NNPCL)
yesterday maintained that crude oil theft was taking a severe toll on its
performance. NNPCL disclosed that it lost 470,000 barrels of crude oil per
day, which amounted to about $700 million monthly, saying this is in
addition to security challenges that hinder oil production in some
terminals.

 

 

Group General Manager, National Petroleum Investment Management Services
(NAPMS), Bala Wunti, made the revelation during an interview with
journalists in Abuja.

 

Rewane maintained that the petrol subsidy policy remained economically
costly. The economist, in the latest edition of his monthly Breakfast
Meeting report held at the Lagos Business School (LBS), noted that while
between 2015 to 2020, $5.5 billion was spent on subsidy, in 2021 alone it
went up to $3.8 billion, and $6.2 billion in just the first quarter of 2022.

 

He stated that despite the increase in money available to the Federation
Account Allocation Committee (FAAC), even without contributions from the oil
sector, many states continued to pile up debts, with frequent defaults in
salaries and pensions.

 

 

The report said the huge subsidy payments would account for more than half
of the N11 trillion budget deficit, which the federal government projected
for 2023.

 

In 2021, according to FDC, all the 36 states spent the equivalent of $9.8
billion, nearly half what the country would spend this year to cover the
petrol subsidy payments, largely seen as opaque.

 

It estimated that with a mere hike of the price of petrol to N215 per litre
by December, the federal government could save as much as N1.25 trillion.

 

In addition, it stated that the federal government could rake in at least
N600 billion by adjusting the exchange rate to N470 per dollar, but admitted
that removing subsidy could be politically undesirable.

 

FDC suggested some pathways to fuel subsidy removal as discontinued fixing
of prices, opting for gradual removal, and abandoning national uniform
pricing, stressing that subsidy administration has been largely abused.

 

 

With oil theft and illegal bunkering taking as much as 400,000 barrels per
day of the country's oil production, Rewane said as much as $1.2 billion was
lost to the menace every month, which was the combined budget of Osun, Ekiti
and Kwara in 2021.

 

The federal government recently put the current daily spend on maintaining
the petrol subsidy at N18.4 billion for 2022.

 

Last week, Director General of the Budget Office of the Federation, Mr. Ben
Akabueze, in an interview, suggested that Nigeria might seek relief from the
International Monetary Fund (IMF) if it was unable to address its fiscal
challenges.

 

Akabueze had said, "Essentially, there are two ways countries end up with
the IMF. One is voluntary, when they ask IMF for help, or when things get to
the grind, where they simply have no other option.

 

"I don't see Nigeria going to the IMF voluntarily. It's a hot issue here in
Nigeria. But the honest truth is that if we don't address our fiscal
challenges in a sensible and sustainable matter, we may end up unwillingly
with the IMF."

 

He, however, stated that Nigeria was not at that desperate situation yet.

 

Akabueze had added, "We are not there yet. But we could as much stop
digging. There is a maxim that if you find yourself in a pit, you should
stop digging and start climbing out.

 

"If we continue to fund regressive deficits, it is tantamount to continuing
to dig. If we continue to pass on reasonable opportunities to increase
revenues by introducing taxes, it is tantamount to continuing digging.

 

"Even though I said we should not cut expenditure in total, we need to get
more efficient in our spending. If we don't do that again, it is tantamount
to continuing to dig."

 

But continuing in the report, Rewane said the country might soon experience
increased oil sales, courtesy of the contract recently awarded to
ex-militant, Mr. Government Ekpemupolo, also known as Tompolo, which was
worth about $1.08 billion in a month.

 

The report also put average inflation rate for the last five years at 14.38
per cent, relative to the global average of 3.78 per cent and Sub-Saharan
Africa average of 9.65 per cent.

 

Nigeria emerged the country with eighth highest inflation rate in
Sub-Saharan Africa and 25th highest in the world, with price rises mainly
driven by higher energy and food prices, the report said.

 

FDC added that the naira had lost at least 94.87 per cent of its value in
five years, crossing N715/$, before falling to N645/$ recently, and now
trading at N703/$.

 

Last week, the Organisation of Petroleum Exporting Countries (OPEC) and its
allies slashed Nigeria's production for the month by 4,000 barrels per day,
to 1.826 million bpd, as against the 1.830 million bpd allocated in
September.

 

But Nigeria had even before then been unable to meet all of its production
allocation, hitting just 1.083 million bpd in the July assessment and
falling even lower to 972,000 barrels in August.

 

NNPCL Loses $700 million Monthly to Crude Oil Theft

 

NNPCL lamented the heavy toll of crude oil theft on its performance, saying
it loses 470,000 barrels per day, which amounts to $700 million monthly, in
addition to security challenges that hinder oil production in some
terminals.

 

Wunti, while speaking with some journalists at the weekend during a tour of
NNPCL facilities, said the pipelines, particularly, those around Bonny
terminal, could not be operated due to the activities of criminals.

 

He said the number of barrels stolen rose on a daily basis, saying about 270
barrels, supposed to be loaded in Bonny, are no longer going to be loaded
because of theft.

 

According to Wunti, "If you're producing 30,000 barrels a day, every month,
you get 1,940 barrels. So what it means is that you can take it to 270 every
four days, calculate it in a month; you will have seven cargos on a million
barrels, that's seven million barrels.

 

"When you multiply seven million barrels by $100 that is $700 million lost
per month, while about 150,000 barrels expected are differed, we are not
producing due to security challenges."

 

He added, "The Shell Petroleum Company (SPDC) trunk line, TNP transnational
pipeline, cannot be operated and this has been like this since March the 3rd
that we put in this. Just take your calculator, 150,000, it means if you
want to arrive at one million barrels per day, it means every week as a
minimum, basically for one week alone, it's four cargo and four cargo is
four million barrels. Four million barrels formula bar or $100 is $400
million. So you can do your calculations by yourself, take whatever price
you want, take this to multiply by the number of days that have been shut in
since March 3."

 

The NAPIMS general manager said Forcados was not completely secured due to
some challenges, but assured that they were addressing it, and in two weeks
it might be fixed.

 

According to him, "But we also have Brass, about 100,000 barrels, which is
operated by Agip and is also facing insecurity and vandalism.

 

"Illegal siphoning of crude oil from oil facilities by criminal individuals
and groups impacted negatively on revenue to all stakeholders.

 

He lamented that the quantity of oil delivered into these federal oil
terminals in the country had been limited by the activities of pipeline
vandals and organised criminals.

 

Wunti said vandalism caused low crude oil production, interrupted gas
supply, countrywide interruption of distribution of petroleum products,
refineries' downtimes, increasing instability in the oil and gas market,
"but I will tell you the major thing that affects us."

 

He revealed, "Nigeria will suffer for it; the revenues are impacted, so we
can only appeal to them to rein in themselves, the oil theft situation is
regrettable. It's not going on across the whole of the Niger Delta, there
are trunk lines that are more impacted on, I think the Bonny trunk line
ranks highest.

 

"Our major challenge as a country is our capability to respond and that is
as a result of several factors, the terrain as well as some incapacity that
we have."

 

Commenting on the role of technology in the effort to check illegal
activities around the oil facilities in the creeks, Wunti said, "I was in
the Saudi Arabia infrastructure twice, and I know what they have. It's a
digital control system; it's different from our own. Digital control system,
it's like you have the control system of all your assets in one place.

 

"This is beyond the digital control system; it's also a security system and
we are doing it and to tell you that this was built-in by our in-house
software engineers because of the security sensitivities to it, because they
are customised, the moment you give to somebody who creates that. So we use
a combination of technology to integrate and synchronise and create what we
are now confident and comfortable with.

 

"In the effort of the corporation to meet its financial tasks the
corporation maintained industry data on crude and all NGS production and
lifting and most importantly, we ensured energy security, ensuring bulk
supply of petroleum products to the nation and remit 100 per cent of this to
the federation."

 

Speaking on synergy with other government agencies, Wunti explained that the
Nigerian Midstream and Downstream Petroleum Regulatory Authority, former
DPR, and the regulatory commission had issued what they called Bill of
Quantity and they also handled vessel clearance and export permits, while
the Federal Ministry of Trade and Industry handled the issuance of export
permits.

 

He said, "We also relate with the Nigerian Customs Service, which also helps
with the export permit and to also clear all the vessels; and the Central
Bank of Nigeria processes all Nigerian Export Proceeds forms, Nigerian
export supervision scheme. So, these are all the agencies we deal with, it's
not an NNPC thing, we have to work through all these agencies before a ship
can come in and sail".

 

The NAPIMS general manager mentioned some of the government agencies at the
terminals to include Nigerian Midstream and Downstream Petroleum Regulatory
Authority; the Regulatory Commission; the Nigerian Customs at the terminal;
NNPC terminal representatives; pre-shipment inspection agents; Nigerian
Immigration officials; Nigerian Ports Authority; and Nigerian Port Health
Authority.

 

He stated, "Then recently, the Navy wanted to be at the terminal. In fact,
we are trying to deploy them anytime from now. They also want to be at the
terminals to see what is going on, because a lot of back and forth has been
going on in the recent past, blaming the Navy. So, they now said they want
to be there to participate physically in what's going on.

 

"You can see what is happening, that it's not just an NNPC thing, it is all
government agencies working together to make sure that each ship that comes
at any point in time has all the clearances."

 

-This Day.

 

 

Uganda: Government to Double Money Given to the Elderly

A section of the elderly have in the recent past complained about the amount
of money they receive under the Special Assistance Grants for Empowerment
(SAGE) programme.

 

Now government has heard their cries and plans to raise their pay by Shs
25,000. This means they shall now be earning Shs 50,000 from the current Shs
25,000.

 

The SAGE program started in 2010 with a pilot covering 15 districts and
extended to 20 districts targeting 100 elderly people per sub county.
However the number of beneficiaries has gradually increased. Currently the
programme targets those that are 75 years and older without any source of
income. This excludes retired civil servants who are on pension.

 

 

Stephen Byaruhanga, the publicity secretary for the elderly in the central
region said the government needs to increase the money from 25,000.

 

"That is just peanuts that is given to us. How i wish they can increase the
amount to like 50,000 because we also have dependents" Byaruhanga said.

 

Stephen Kasaija, the head of the SAGE program management Unit in the
ministry of Gender said the plans are underway to increase the money for the
elderly.

 

"We made that amount just for sometime but we are going to either increase
the amount given to the elderly or lower the age bracket to those 60 years
and older" Kasaija said.

 

Kampala Deputy Lord Mayor Doreen Nyanjura cast doubt on the future of the
programme.

 

"Why would an elder person stand under the sun for only Shs 25,000 for God's
sake. I don't see any progress since some of the funders pulled back,"
Nyanjura said.

 

 

Kenya's Stock Rebounds After Election Jitters

NSE market update: On Wednesday, Sep 7, investors proved their confidence in
Kenya's new president William Ruto as the Nairobi Stock Exchange (NSE) shot
through the roof to record the highest single day raise in over four and a
half years.

 

Local media confirmed the NSE market gained Sh102.6 billion describing the
leap as 'the biggest single-day jump in four-and-a-half years.' This jump
comes in the wake of settling election dust that saw the NSE stumble, fall
and now, rise up again.

 

Sector pundits and political analysts agree that this huge gain is a clear
signal of investor's confidence in the fifth president of Kenya.

 

In fact, the last time the NSE scored a similar single-day gain was way back
in 2018 when there was an almost mirror effect of the political situation.
Back then, the NSE market had all but collapsed during the election turmoil
but as soon as former President Uhuru Kenyatta and shook hands with his
rival Raila Odinga, the stocks went through the roof.

 

 

This time, as was the case the half a decade ago, investors feared that the
contest against the election results might spiral out of control. Back in
2017, the decision to annul the poll led to a market crash that was only
relieved when the opposing teams shook hands.

 

"This week's gains are therefore reflective of relief among investors,"
Kenya media commented.

 

In expression of their confidence, local investors put their money back into
the NSE buying blue chips, which are customarily dominated by foreign
investors. Foreign investors are yet to express similar confidence as their
local counterparts as records show net outflows clocked Sh38 million
compared to net inflows of Sh28 million as of Monday.

 

As of the close of the market day Monday, total capitalization recorded was
Sh2.295 trillion, up from Sh2.192 trillion and the benchmark NSE 20 Share
Index closed the day with 1807 points, two percent higher.

 

 

Movers and shakers of NSE rebound

 

The largest gainer of the NSE come back was Safaricom spotting an impressive
Sh80 billion value addition. The telecom giant was able to pull the stunt
off thanks to a Sh2 per share gain closing the day at an impressive Sh31.05
per share.

 

Proving once again that its share price movement is the actual market driver
on the NSE, Safaricom issued Sh40 billion worth of shares that sold out and
in effect made the company the biggest gainer and in turn moved the entire
market up.

 

A sweep of the key NSE players shows that all major stock holders,
especially banks enjoyed a considerable hike in share value. Equity Group,
the second largest player on the NSE enjoyed a jump in excess of 35 percent
pocketing net profits close to Sh23.7 billion.

 

The election triggered NSE slump

 

Before this impressive come back, only a few weeks ago in August the NSE
stock prices maintained a steady fall, this despite higher earnings in some
key bank stocks. During that period, the Nairobi bourse lost a whopping
Sh103.8 billion in just one week.

 

 

Even then, the drop was caused largely fall of share prices of big banks and
of course, Safaricom. When bank shares drop as they did, it is clear sign of
investor loss of confidence since bank stocks are normally sensitive to
industry performance.

 

Large banks like Equity group, also saw its share price fall by 0.7 percent
or 35 cents to close at Sh48. Standard Chartered Bank Kenya also saw its
share price fall by 4.3 percent to Sh133.75; the same fate befell KCB Group
and DTB.

 

The overall result was that the banks had to pay higher dividends yet suffer
low share prices saw the market suffer losses to the tune of Sh28.3 billion.
The larger they are the harder they fall, suffering Sh28.04 billion in
losses.

 

Earlier on as of Aug 11 in the wake of the elections, the stock market
reopened with a gain of Sh31.8 billion with at least 24 of the 63 listed
stocks showing a positive come back owing to local investors scooping up the
low-priced shares.

 

The recovering shilling and lower cost of living

 

It is during this same period, around Aug 9th that the Kenyan shilling fell
against the dollar to triggering costly imports and higher international
debt repayments ahead. At that time, the Central bank of Kenya (CBK) placed
the value of the shilling at 119.13 units against a strong dollar.

 

The shilling depreciated 1.47 percent forcing importers to spend more and in
effect raising the cost of inputs and subsequently raising the final price,
a cost to be borne by the end consumers.

 

Official data painted the gruesome state as imports rose 20.87 percent
year-on-year to Sh194 billion compared to an 11.21 percent rise in exports
to Sh60.41 billion. The difference here is that exporters, who are generally
paid in dollars, were able to enjoy the gains of the strong dollar against
the weaker shilling.

 

However, on the ground this meant that the cost of living for the average
Kenyan increased considerably. The lower value of the shilling caused the
price of imported raw materials to rise which in effect caused the rise of
basic needs all the way from electricity to food prices.

 

With the elections over and the court ruling passed, the market is
stabilizing and the shilling is recovering. As a result of the shilling
gaining on the dollar, the general cost of living is slowly but surely
starting to level out.

 

As the fifth administration settles in, investors continue to regain
confidence in the market and as evident in the NSE, trading is
strengthening. The end result is a steady recovery of the shilling against
the dollar which in turn is bringing down the cost of life.

 

What is expected in the course of the next few months is that the market
will continue to stabilize and as the new administration announces its
economic development plans including newer ease of doing business policies,
investors will further gain confidence and the economy will grow.

 

-The Exchange.

 

 

 

Sudan: Gold Remains the Country's Largest Export Commodity

Khartoum — The Central Bank of Sudan (CBoS) report on foreign trade states
that gold still remains the largest export commodity from Sudan.

 

The CBoS trade report indicated that Sudan saw its trade deficit lessen from
last year's $4.7 billion deficit to this current year's deficit of $1.5
billion. The trade deficit reflects Sudan's import commodities exceeding its
exports.

 

Amid growing concerns of economic and food insecurity in the region, as well
as the political crisis currently embroiled in Sudan, the United Nation's
Secretary-General António Guterres stated in a report on September 2 that
Sudan is at risk of being "constrained economically" and this will likely
"deter investors".

 

 

Sudan is one of the largest producers of gold in Africa, however production
is often driven by unregulated, artisanal (individual subsistence) mining,
and routine gold smuggling across international borders is a constant
problem.

 

It is estimated that between 50 per cent and 80 per cent of Sudan's gold is
smuggled out of the country, with proceeds frequently used to finance the
internal conflict.

 

CBoS issued a new circular to banks and related authorities in March,
banning the export of gold by government agencies and foreigners,
individuals, and companies, excluding concession companies operating in
mining. The circular also limits the role of the Central Bank of Sudan to
purchasing gold for the purpose of building reserves only.

 

In an interview with Radio Dabanga's Sudan Today programme, Professor of
Economics at El Nilein University in Khartoum Dr Hasan Bashir explained that
export volumes could have been 10 times the size of current exports and
highlighted the continued smuggling of large quantities of gold from the
country.

 

Russian looting

 

CNN published an investigation that had been seven months in the making
disclosing how "Russia is plundering gold in Sudan to boost Putin's war
effort in Ukraine" with the complicity of Sudanese military rulers.
Following the publication, some Sudanese have called for new marches of the
millions to protest against Russia's looting of gold today.

 

CNN's investigation shows the extent to which Russia smuggles gold out of
Sudan, bypassing the county's official gold export regulations.

 

At least 16 known instances of Russian gold smuggling flights out of Sudan,
have occurred in the past year and a half, CNN explains.

 

Interviews with high-level Sudanese and US officials suggest the existence
of 'an elaborate Russian scheme' to plunder Sudan's gold reserves to
strengthen Russian wealth in the face of Western sanctions.

 

-Dabanga.

 

 

 


 


 


Invest Wisely!

Bulls n Bears 

 

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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
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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.

 


 

 


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