… lowers Nigeria’s economic growth forecast
The World Bank has called on the Federal Government of Nigeria and other governments in the Sub-Saharan African region to urgently implement measures to restore macro-economic stability and protect the poor from the high inflation and current slow economic growth.
The World Bank has also lowered its economic growth forecast for Nigeria in 2023 to 3.2 per cent from 3.3 per cent due to the slowdown in global growth, the war in Ukraine and declining demand from China for commodities produced in Africa.
It projected that the Sub-Saharan African region would record a lower economic growth of 3.3 per cent in 2022 as against the 4.1 per cent recorded in 2021.
The forecasts were contained in the October edition of the World Bank’s Africa’s Pulse, a biannual analysis of the near-term regional macroeconomic outlook, and economic growth in Sub-Saharan Africa (SSA).
Highlighting the growth factors for Nigeria’s economy, the World Bank said, “The Nigerian economy is projected to slow in 2023, down to 3.2 per cent (from 3.3 per cent) and persist at this level the following year. Growth will be supported mainly by the rebound in private consumption prompted mostly by accommodative monetary policy as inflationary pressures subside.
“Private consumption expenditure is forecast to decrease this year and grow next year. This performance will likely continue in 2024. On the production side, growth in 2023 will be supported by industry (with the growth of 5.1 per cent) with the mega-refinery project.”
On its growth forecast for the Sub-Saharan African region, the World Bank said: “Economic growth in Sub-Saharan Africa (SSA) is set to decelerate from 4.1% in 2021 to 3.3% in 2022, a downward revision of 0.3 percentage points since April’s Pulse forecast, mainly as a result of a slowdown in global growth, including flagging demand from China for commodities produced in Africa.
On the factors undermining economic growth in SSA, the World Bank said, “The war in Ukraine is exacerbating already high inflation and weighing on economic activity by depressing both business investments and household consumption. As of July 2022, 29 of 33 countries in SSA with available information had inflation rates over 5% while 17 countries had double-digit inflation.
“Elevated food prices are causing hardships with severe consequences in one of the world’s most food-insecure regions. Hunger has sharply increased in SSA in recent years driven by economic shocks, violence and conflict, and extreme weather. More than one in five people in Africa suffer from hunger and an estimated 140 million people faced acute food insecurity in 2022, up from 120 million people in 2021, according to the Global Report on Food Crises 2022 Mid-Year Update.
“The interconnected crises come at a time when the fiscal space required to mount effective government responses is all but gone. In many countries, public savings have been depleted by earlier programs to counter the economic fallout of the COVID-19 pandemic, though resource-rich countries in some cases have benefited from high commodity prices and managed to improve their balance sheet.”
“Debt is projected to stay elevated at 58.6% of GDP in 2022 in SSA. African governments spent 16.5% of their revenues servicing external debt in 2021, up from less than 5% in 2010. Eight out of 38 IDA-eligible countries in the region are in debt distress, and 14 are at high risk of joining them. At the same time, high commercial borrowing costs make it difficult for countries to borrow on national and international markets while tightening global financial conditions are weakening currencies and increasing African countries’ external borrowing costs.”
Stressing the need for governments to improve the efficiency of existing resources and to optimize taxes in response to the above challenges, the World Bank added that, “In the agriculture and food sector, for example, governments have the opportunity to protect human capital and climate-proof food production by re-orienting their public spending away from poorly targeted subsidies toward nutrition-sensitive social protection programmes, irrigation works, and research and development are known to have high returns.”
Old N200, N500, N1,000 notes will be in use till Jan 31- CBN
The Central Bank of Nigeria (CBN) has said the current series of N200, N500, and N1,000 notes will still be used as legal tender until the last day of January 2023.
It dismissed the rumours that the current banknotes would stop being in use from December 15.
The apex bank on Friday in a tweet clarified this.
“The current series of N200, N500 and N1,000 notes remain legal tender until the deadline of January 31, 2023,” tweet by the apex bank read.
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This comes as the CBN in October announced plans to introduce new naira notes on December 15.
Nigerians have been concerned about how the apex bank will phase out the use of the current currencies, but many have rumoured that the currency will stop being in use from December 15. However, the apex bank has cleared that the currency will still be in use until January 31, 2023.
The current series of N200, N500 and N1,000 notes remain legal tender until the deadline of January 31, 2023. pic.twitter.com/ukdi47LfLB
— Central Bank of Nigeria (@cenbank) December 2, 2022
Lagos-London air passengers pay over 400% more than Abuja-London fliers
Passengers travelling from Lagos to London in the coming days might be forced to travel through Abuja to their destination as the former are made to pay at least 400 per cent higher than the latter.
According to a new Vanguard report, passengers flying on one-way economy ticket through Abuja on British Airways pay $501 (about N222,093) while those travelling through Lagos on the same airline and ticket class pay as much as $2,700 (about N1,196,910).
Also, passengers travelling through Ethiopian Airline on one-way economy ticket through Abuja pay N700,000, while those going through Lagos on the same airline and ticket class pay as much as N2.8 million.
The fare differential, according to industry operators, may not be unconnected to demand and supply differentials but also noted that the distance is almost same for the two routes.
Vanguard gathered that flights from London to Abuja take six hours, and 20 minutes, while flights to Lagos from London take six hours and 25 minutes.
Though Air France maintains same fares from both routes the amount is also high at $2,141 on similar ticket class for a one-way journey.
A traveller who spoke to Vanguard about the development lamented her amazement to the development.
According to her, “I was to travel to London next week. So in a bid to ensure i pay less, I open the booking portal of BA, I was in Abuja and I mistakenly clicked on Murtala Muhammed International Airport, MMIA, and i was taken to the price to my amazement, the price i saw there was $2,700 I was shocked.
“I had to check very well to see if i had punched something odd. I realised I inputted Lagos instead of Abuja. So I had to readjust and the price I finally saw was far lower. This was quite outrageous as it was not supposed to be so.”
Another traveller who spoke to Vanguard Aviation World, said: “Why will Ethiopian Airline, and Africa airline put their airfare to London this high? I was expecting their price to be lesser than others but I was wrong.
“Even the price in Lagos differs by a far margin. Why would it be so?
The ministry responsible should look into it, as for me it can only be attributed to extortion.”
BA’s spokesperson, Josephine Simmons, gave reasons for the disparity, saying that airfares could differ due to availability, airport taxes and other factors.
She was quoted as saying, “Prices differ by airport due to numerous factors including customer demand and fare charges – including airport taxes.
“Most customers book their flights in advance, benefiting from competitive fares.”
The development has created a series of reactions from both stakeholders and travellers across the country.
While some stakeholders attributed the development to the exploitation of Nigeria’s passengers, others stated that the less demand in Abuja was strengthened by the security challenges.
According to the Principal Partner, Avaero Capital, Sindy Foster, the development possibly might be due to more demand than supply in Lagos.
“If BA had more demand from Abuja price would probably be higher. Most people are not flying direct between Abuja and London. I expect demand for Abuja went down due to security issues.
Flights tend to be lower if there is more supply against demand. It is good that prices have come down in Abuja. Will be interesting to work out why they are still high in Lagos. I suspect there is less demand for Abuja.
The chairman of United Nigeria Airline, Obiora Okonkwo, said: “Why do foreign airlines charge Nigeria so much?
“In the aviation industry, one-hour flight fuel consumption is the same, the only difference is maybe different landing charges in London or Ghana, the rest is the same.
“I can assure you that if Air Peace goes to London today, Nigerians will fly to London with an Economy ticket of N500,000. Today the price is about N2 million, why should we pay such if they are converting from N450 to $1?
“We owe Nigerians this explanation. However, whatever is going on, this is a wake-up call that the local operators have to be supported as they have all it takes to operate internationally.
“Emirates have over $5 billion in support from their government. When we ask for support, it is not free, we pay back. American Airlines have equity of over $60 billion and a debt profile of $70 billion and those debts all come from government support.
“If the local airlines are supported, we can have the capacity that cannot be threatened globally. The easiest flight to operate is a long haul. Short haul is even more difficult as it is stressful to both the aircraft and cabin crew.
“It is even easier to go to London, aviation is the same globally, you are audited by IOSA, IATA and that is, they prevented us and make us looks bad.
“They are also aware that our quality and regulatory standards are high. We get crews and captains coming to Nigeria and they fail our exams and we send them back.”
It would be recalled that Nigeria, a destination of over 22 foreign carriers, manages Bilateral Air Services Agreements, BASA, with over 78 countries.
These airlines operate daily and weekly in Nigeria.
Ethiopian and ASKY, Togolese airline also operated by Ethiopian Airline, together operate 54 frequencies weekly in Nigeria.
African World Airways (AWA) has 49 frequencies per week; British Airways and Virgin Atlantic operate 21 frequencies weekly into Nigeria; EgyptAir with 16; Air France 15; Saudi Arabian Airways 13; Emirates 11; Lufthansa 11; Air Cote d’Ivoire10; Qatar 9; South African Airways 7.
Others were Delta, Royal Air Maroc, RwandAir, Sudan Airways, and Turkish Airways, which enjoy seven frequencies without reciprocity from Nigerian airlines.
Also, Etihad has five frequencies; Fly Mid Africa has four; Middle East Airlines – has four and Air Italy formerly Meridiana has three weekly flights to the country.
-Vanguard with minimal editing and a new headline
US used car firm begins Nigeria’s operations, unveils Yuletide promo
A global automobile company that specialises in premium used vehicle sale and service, Carloha, has announced the commencement of operations in Nigeria with a target at the top of the market.
The firm with head office in the USA has also unveiled a Yuletide promo with a huge slash in prices of its vehicles and free insurance, registration and warranty.
The firm, according to a statement obtained via email, owns and manages several stores and maintenance centres, with over 200 dedicated employees providing comprehensive car purchase, finance and insurance services.
Carloha Nigeria is said to parade a host of premium used vehicles in its arsenal of stocks and well positioned to be the leading automobile company in used vehicle trading business in Nigeria.
Marketing Manager of the auto firm, Mr Mathew Enuoma Aje, said, “We are in business to set the pace in sales and services of used vehicle segment in Nigeria, by making vehicle ownership a seamless process for all customers.”
Commenting on the Yuletide promo, said, “In the spirit of the Yuletide, Carloha Nigeria is offering huge price slash on every vehicle purchased from October 31, 2022 to January 31, 2022. Customers can also take advantage of free registration, free insurance, free first three services, finance option, trade-in-option, and three month warranty or 5,000km whichever comes first.
The End of Year Promo tagged “Drive Your Dream” is exclusive and all-embracive because they all come with freebies that are germane to vehicle ownership and driving comfort.
The essence of “Drive Your Dream” promo is to bring happiness, joy and peace of mind to all customers in this Yuletide, and also our token of appreciation for all year-round patronage in 2022.”
Aje said Carloha Nigeria prides itself with the best of used vehicles of choice brands that are durable, rugged well refined to suit the taste of all customers.
“The class and state of vehicles we stock are rare and cannot be sourced elsewhere,” the firm said in the statement.
The company said it “works with well known used car provider in the USA, using big data technology to select the best quality used car in Nigeria. The replication of the automated system is to position Carloha Nigeria as a viable company that will drive the world with latest technological advancement in automobile engineering that offers bespoke premium services that cannot be seen anywhere in sub-Sahara African.”
Carloha Nigeria listed the notable brands of vehicle offerings as Mercedes-Benz, Toyota (Lexus), Ford, and Range Rover it considered “neatly selected and well finished to specifications with the states-of-the-Arts technology.”
Even as the firm noted that pricing of used vehicle had been a huge algorithmic challenge to the overall business, it stated that automated pricing system is used Carloha Nigeria to fix the right price of all used vehicles.
This, it said, was done to accurately fix each price of vehicle in relation to economic fluctuation and imbalance in the local market.
On after-sale, it said, “The installations of state-of-art technological automated equipment is a proof of Carloha’s readiness to set the pace as a major player in the sales and maintenance of used vehicle.
“To ensure quality standard of vehicles, Carloha Nigeria utilizes scientific method with fully automated management system known as 149 vehicle inspection point on chasis, engine, transmission, exterior, interior, electronic system, road test, and maintenance equipment to meet the demand of the market,” it said.
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