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: 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.
Business
Nigeria’s unemployment rate dropped to 4.3% in Q2 – NBS
Nigeria’s unemployment rate dropped to 4.3% in Q2 – NBS
Nigeria’s unemployment rate stood at 4.3 per cent in the second quarter of 2024, the National Bureau of Statistics (NBS) has said in its latest report.
The report released on Monday said the unemployment rate decreased compared to the 5.3 per cent recorded in the Q1 of 2024.
The NBS defined the unemployment rate as the share of the labour force (the combination of unemployed and employed people) who are not employed but actively searching and are available for work.
“The unemployment rate for Q2 2024 was 4.3%, showing an increase of 0.1 percentage point compared to the same period last year,” the report stated.
“The unemployment rate among males was 3.4% and 5.1% among females.
“By place of residence, the unemployment rate was 5.2% in urban areas and 2.8% in rural areas. Youth unemployment rate was 6.5% in Q2 2024, showing a decrease from 8.4% in Q1 2024.”
Report also said the unemployment rate among persons with post-secondary education was 4.8 per cent; 8.5 per cent among those with upper secondary education, 5.8 per cent for those with lower secondary education, and 2.8 per cent among those with primary education in Q2 2024.
Employment rate – 76%
The report showed that the employment-to-population ratio, which measures the number of employed workers against the total working-age population, increased to 76.1 per cent in Q2 2024.
“In Q2 2024, 76.1% of Nigeria’s working-age population was employed, up from 73.1% in Q1 2024,” the report stated.
Self-employment – 85.6%
The report further showed that Nigeria’s labour market saw a notable shift as the proportion of self-employed individuals increased in Q2 2024.
It stated, “The proportion of persons in self-employment in Q2 2024 was 85.6%.”
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