Business
Nigerians, others worry as UK economy falls into recession
Nigerians, others worry as UK economy falls into recession
There is palpable fear among Nigerians heading for London among other people as the United Kingdom’s economy has fallen into recession.
The was reported as the Gross domestic product (GDP) – a key measure of economic activity – dropped by 0.3 per cent between October and December 2023.
According to the UK’s Office for National Statistics (ONS), the fall in the GDP was due to a decline in all main sectors of the economy.
This is considered the “mildest recession” witnessed in 50 years — unlike the huge drop of over one per cent sometimes seen, according to the BBC.
The ONS confirmed the real GDP fell 0.3 per cent in the fourth quarter (Q4) of 2023.
The UK is considered to be in recession if the GDP falls for two successive three-month periods.
The figure will be a blow to Prime Minister Rishi Sunak, according to economic analysts.
Growing the economy was one of five pledges Sunak made in January 2023.
Chancellor Jeremy Hunt is less than three weeks away from unveiling his latest budget.
Shadow chancellor Rachel Reeves said the data showed that Mr Sunak’s pledge to grow the economy was “in tatters”.
Treasury sources confirmed to the BBC News that the chancellor was looking at a larger pencilled-in squeeze on public spending as a way to deliver tax cuts in the budget on 6 March.
Forecasts for the public finances have materially deteriorated in recent weeks as interest costs on UK government borrowing has increased. Final decisions have not been made.
Commenting on the GDP, Hunt said, “While interest rates are high – so the Bank of England can bring inflation down – low growth is not a surprise.”
He added that there were “signs the British economy is turning a corner”.
But Mr Reeves said: “This is Rishi Sunak’s recession and the news will be deeply worrying for families and business across Britain.”
Figures from the Office for National Statistics showed that during the final three months of last year, there was a slowdown in all the main sectors it measures to determine the health of the economy, including construction and manufacturing.
The figure for the final three months of last year was worse than a 0.1% fall widely forecast by financial markets and economists.
The GDP for the third quarter, between July and September fell by 0.1%.
Ruth Gregory, deputy chief UK economist at Capital Economics, said the latest economic figures “might nudge the Bank of England a little closer to cutting interest rates”.
“But we doubt the Bank will be too worried about what is likely to be a mild and short recession,” she added.
Recent figures showed that inflation – which measures the pace of price rises – remained at 4% in January.
The Bank of England had been lifting interest rates to put the brakes on inflation but has kept them at 5.25% since August last year.
For the year as a whole, the economy grew by 0.1%.
“While it has now shrunk for two consecutive quarters, across 2023 as a whole the economy has been broadly flat,” said Liz McKeown, director of economic statistics at the ONS.
Business
PH refinery to blend 1.4-million litre petrol daily – NNPC
PH refinery to blend 1.4-million litre petrol daily – NNPC
Rehabilitated old Port Harcourt refinery is currently operating at 70 per cent of its installed capacity, the Nigerian National Petroleum Company Limited has said.
The Port Harcourt Refining Company (PHRC) operates two refineries: the old refinery with a capacity of 60,000 barrels per stream day (bpsd) and a new refinery with an installed capacity of 150,000 bpsd.
The NNPCL in a statement on Tuesday, said it planned to increase the operation to 90 per cent of the refinery’s capacity.
“The Board and Management of the Nigerian National Petroleum Company Limited (NNPC Ltd) express heartfelt appreciation to Nigerians for their support and excitement over the safe and successful restart of the 60,000 barrels-per-day Old Port Harcourt Refinery,” the statement reads.
“This achievement marks a significant step forward after years of operational challenges and underperformance.
“We are, however, aware of unfounded claims by certain individuals suggesting that the refinery is not producing products. For clarity, the Old Port Harcourt Refinery is currently operating at 70% of its installed capacity, with plans to ramp up to 90%.”
According to NNPC, the refinery has commenced production of daily outputs of straight-run petrol (naphtha), which is blended into 1.4 million litres of petrol.
The national oil company said the refinery has also started producing 900,000 litres of kerosene per day and 1.5 million litres per day of diesel.
The NNPC said 2.1 million litres daily volume of low-pour fuel oil (LPFO) would also be produced at the refinery, adding that additional volumes of liquefied petroleum gas (LPG) will be refined at the plant.
“It is worth noting that the refinery incorporates crack C5, a blending component from our sister company, Indorama Petrochemicals (formerly Eleme Petrochemicals), to produce gasoline that meets required specifications,” NNPC said.
“Blending is a standard practice in refineries globally, as no single unit can produce gasoline that fully complies with any country’s standards without such processes.”
Additionally, the NNPC said it has made substantial progress on the new Port Harcourt refinery, “which will begin operations soon without prior announcements”.
“We urge Nigerians to focus on the remarkable achievements being realized under the able and progressive leadership of President Bola Tinubu and to support efforts aimed at delivering more dividends to the nation,” the energy firm said.
According to the statement, malicious attacks on “clear progress” only undermine the “significant strides made by NNPC Ltd and the country”.
Business
PH refinery: 200 trucks will load petroleum products daily, says Presidency
PH refinery: 200 trucks will load petroleum products daily, says Presidency
No fewer than 200 trucks are set to load petroleum products at the government-owned Port Harcourt Refinery, the presidency has said.
A presidential spokesperson, Sunday Dare, made this known in a statement through his official X handle on Tuesday.
Newstrends had reported that the Nigerian National Petroleum Company on Tuesday announced that Port Harcourt Refinery has resumed operations and crude oil processing after years of inactivity.
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Reacting, Dare said, “200 trucks are expected to load products daily from the refinery, Renewing the Hopes of Nigeria.”
He added that “the Port Harcourt refinery has two wings.
“The Old Refinery comes on stream today with an installed production capacity of 60, 000 barrels per day of crude oil.”
PH refinery: 200 trucks will load petroleum products daily, says Presidency
Business
Breaking: CBN increases interest rate to 27.50%
Breaking: CBN increases interest rate to 27.50%
The Central Bank of Nigeria (CBN) has raised the lending interest to 27.50 per cent from 27.25 per cent.
This latest increase in the Monetary Policy Rate came after a meeting of the Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) on Monday and concluded Tuesday.
The Monetary Policy Rate measures the benchmark interest rate.
The CBN Governor, Yemi Cardoso, announced this in Abuja on Tuesday after the MPC meeting, last for the year, held at the apex bank’s headquarters.
He said the MPC voted unanimously to raise the MPR by 25 basis points from 27.25% to 27.50%; and retain the Cash Reserve Ratio (CRR) at 50% for Deposit Money Banks and 16% for Merchant Banks.
The CBN governor also said the MPC retained the Liquidity Ratio (LR) at 30% and Asymmetric Corridor at +500/-100 basis points around the MPR.
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