Business

Nigeria’s Economy On Brink Of Collapse, NECA Raises Alarm

Published

2 years ago

August 7, 2022

The Nigeria Employers’ Consultative Association, NECA, on Sunday in Lagos, raised the alarm that the nation’s economy is on the brink of collapse, warning that spiralling inflation, rising energy cost, scarcity of FOREX, the dwindling value of the Naira among others, are bleeding the economy.

The Director-General of NECA, Mr. Wale Oyerinde, lamented that the economy was under the weight of an almost comatose aviation sector, stuttering education system, rising debt, depleting foreign reserve and rising fuel subsidy expenses, among others.

The newly-appointed D-G of NECA advised the Federal Government to employ a holistic and multi-pronged approach towards resolving the challenges faced by the nation.

According to him, “The nation is currently faced with multiple challenges.

“(It’s) a dire combination of spiralling inflation, rising energy costs (aviation fuel, diesel, etc.), scarcity of FOREX, dwindling value of the Naira and an almost comatose aviation sector.

“Also, with a stuttering education system, rising debt, depleting Foreign Reserve and rising fuel subsidy expenses among others, that threatens to lay bare the country’s economy, there is no better time for the Government to reappraise current economic policies and deepen its engagement with the organized private sector.

“While Government’s effort to salvage the economy is commendable, there is, however, a need for a more holistic approach to resuscitate the stuttering economy.

“Being dependent on crude oil for about 90 per cent of its foreign exchange earnings and 80 per cent of its budgetary revenues, Nigeria has always lived dangerously on the precipice, with a major chunk of its revenue dependent on the complexities of global crude demand and supply.

“A dangerous blend of self-destructive tendencies, insecurity and fiscal and monetary policy inconsistencies have also conspired to make the situation worse.

“While revenue continues to shrink, the nation continues to dig its feet deeper into debt.

“At different times over the past few years, various international bodies including the World Bank, International Monetary Fund and the World Trade Organization have warned about the excessive nature of the country’s borrowing.

“While some stakeholders have canvassed that the revenue to GDP ratio of the country is healthy, a recent announcement by the Minister of Finance, Budget and National Planning that the revenue to debt service ratio is in the negative, calls for urgent concern.

“In April, the World Bank warned that the rising cost of fuel subsidy could significantly impact public finance and pose debt sustainability concerns.

“Alas, this projection is almost happening. The Fiscal Performance Report released recently by the Federal Government confirmed the accuracy of these projections.

“The combination of a struggling aviation sector and roads taken over by bandits have also conspired to fuel the situation, leading to rising inflation at 18.6% (according to the NBS).

“These have continued to worsen the promotion of Commerce and the increase the rate of de-industrialization of some regions of the country.”

The DG of the umbrella body for employers in the country, while recommending how to deal with the multi-face challenges, called for “a deliberate and economic priority influenced approach and wide consultation with Stakeholders should commence, with the view of harvesting alternative policy options to re-energize all sectors of the economy.

“While the challenges of revenue shortage are acknowledged, burdening businesses with new taxes or levies will be counter-productive and self-destructive action.

“Over-burdening already burdened businesses will only lead to business closure and an escalation of job losses with consequential effects on our social and economic stability.

“Government should, in the short-term widen the tax net, reduce wastages in governance, and focus on economic projects that will stimulate the Nigerian economy and guarantee an enabling environment for businesses to operate.

“An enabling environment for local businesses will create the platform for new foreign direct investment, which could increase FOREX inflow into the country.

“In the medium term, the Federal Government should, as a matter of urgency, fix the four national refineries and encourage the development of Modular ones as a precursor to total removal of fuel subsidy.

“With over N5 trillion budgeted for subsidy payment in 2022, an amount larger than the budget for education and agriculture, this is unrealistic and unsustainable.

“Economic interventions aimed at improving living standards (to stimulate consumption) and Enterprise sustainability (to promote job creation) should be implemented.

“While FOREX scarcity persists, allocation of the available FOREX to manufacturing and other productive sectors of the economy should be given priority.”

Business

JUST IN: Shoprite Announces Intention To Close Abuja Branch

Published

2 days ago

June 24, 2024

Editor

ShopRite Mall has announced its intention to cease operation in one of its Abuja branches from June 30, 2024.

The branch is situated at Novare Central Mall in Wuse Zone 5.

This was contained in a circular signed by the Chief Executive Officer, Dr Folakemi Fadahunsi, on behalf of the retail supermarket and obtained by our correspondent on Monday.

A staff at the store who pleaded anonymity also confirmed the report, saying “Yes, it is true, we just heard it here too.”

The popular mall attributed its decision to a thorough evaluation of the store’s financial situation and the current business climate.

It additionally notified vendors that their services would no longer be needed at the store.

The circular read, “We regret to inform you that as of June 30, 2024, Retail Supermarkets Nigeria Limited will be closing its Wuse Store located in Novare Wuse Central Mall, Abuja. This decision has been made after a thorough evaluation of the store’s financial situation and the current business climate. We believe this is the best course of action for our organization’s long-term growth.

“Effective June 30, 2024, our company will no longer operate in Wuse, Abuja, and we will no longer require your services for the Novare Wuse Central Mall Store. Please note that all existing service contracts will also terminate for the store.”

The circular added the company would be reviewing its accounting records in the next 60 days to settle outstanding balances.

“If your services are specifically tied to the Novare Wuse Central Mall Store and if there is an outstanding balance between our companies, we will carefully review our accounting records over the next 60 days (about 2 months). We will then promptly contact you to confirm the amount owed and discuss a suitable payment schedule.

“We would like to express our gratitude for your past business. It has been a pleasure working with you and your team. If you have any questions or concerns, or if there is anything we can do to assist you during this challenging transition, please do not hesitate to reach out to us”, it added.

Multiple multinationals have left Nigeria by either scaling down operations, transferring ownership or selling their stakes, the most recent being the sale of beverage company Diageo’s 58.02 per cent shareholding in Guinness Nigeria to Tolaram Group on June 11, 2024.

The exodus of multinationals from the Nigerian economy has cost the country a N94tn loss of output in five years, according to an economist and former Director of Research and Advocacy at the Lagos Chamber of Commerce and Industry in Nigeria, Dr Vincent Nwani.

According to the analyst, for the first year, over 10 companies shut down operations in 2020, most notably Standard Biscuits Nigeria Ltd, NASCO Fiber Product Ltd, Union Trading Company Nigeria PLC, and Deli Foods Nigeria Ltd.

In 2021, he stated that more than 20 companies exited, including Tower Aluminium Nigeria PLC, Framan Industries Ltd, Stone Industries Ltd, Mufex Nigeria Company Ltd, and Surest Foam Ltd.

He stated that in 2022, over 15 known brands left Nigeria, including Universal Rubber Company Ltd, Mother’s Pride Ventures Ltd, Errand Products Nigeria Ltd, and Gorgeous Metal Makers Ltd.

More than 10 major companies left in 2023, notably Unilever Nigeria PLC, Procter & Gamble Nigeria, GlaxoSmithKline Consumer Nigeria Ltd, ShopRite Nigeria, Sanofi-Aventis Nigeria Ltd, Equinox Nigeria, and Bolt Food & Jumia Food Nigeria.

In the first six months of this year, five listed major companies had left Nigeria, including Microsoft Nigeria, Total Energies Nigeria (affected by its divestment), PZ Cussons Nigeria PLC, Kimberly-Clerk Nigeria, and Diageo PLC.

Business

5 Substitutes For Fresh Pepper When Cooking Amid Rising Prices

Published

2 days ago

June 24, 2024

Editor

Fresh peppers sure do add vibrant color, crunch and distinct flavor to many dishes.

However, there are times that fresh peppers are not available or suitable for a meal; and also given the recent rate of items in the market, the prices of fresh peppers and the quantity is definitely a conversation for another day.

Fortunately, there are numerous alternatives that can replicate the heat, sweetness and texture in your dishes.

Experimenting with different alternatives, can lead to exciting culinary discoveries ensuring your meals remain delicious even without fresh peppers.

This article highlights five substitutes for fresh peppers.

Dried peppers

Dried peppers come in various forms such as whole dried peppers, flakes or ground into powder. They can be rehydrated to make it easier to use if it’s not already grinded. Dried peppers provide a deep, rich flavor and concentrated heat that can enhance many dishes.

Paprika

Paprika is a fantastic substitute for fresh peppers. It’s like a secret weapon in the kitchen!. It’s a vibrant red spice made from dried and ground peppers. It adds a beautiful color and mild, sweet flavor to dishes. It doesn’t provide the same level of spiciness as fresh peppers, but it sure would very much enhance the taste of your food. You can sprinkle it on roasted veggies, soups, or even use it as a rub for meats.

Hot sauce

Hot sauce is something you can make from the comfort of your home using spices like chili powder, garlic powder, vinegar and salt. Homemade hot sauce allows you to customize the spiciness level and flavors just the way you want it.

Ginger

Fresh ginger has a spicy and aromatic flavor that can compliment dishes where peppers are used. Grated or minced, ginger can be used in place of peppers in many recipes. Ginger tends to have a very strong flavor.

Carrots

Carrots can be used in place of fresh peppers by shredding or grating them and adding them to dishes where peppers would typically be used, such as stir-fries, salads, and sauces. They add a sweet and crunchy texture making them a good substitute.

Business

Flooding: Two Feared Dead In Early Monday Rain In Abuja

Published

2 days ago

June 24, 2024

Editor

Two people were on Monday feared dead following Monday morning’s downpour, which caused heavy flooding at the Trademore Estate in Lugbe along the Nnamdi Azikiwe Airport Road.

The estate, which has been perennially affected by flooding, is home to several civil servants and other categories of people.

A resident of the area who made a video of the flood could be heard calling on the Federal Government and the Federal Capital Territory FCT Minister, Nyesom Wike, for help.

She said two people had been swept away by the flood. The development has not been confirmed by the administration.

The FCT Administration had since 2022 made several attempts to demolish parts of the estate said to be on a flood plain, but a court case instituted by residents against it halted the exercise.

Recall that the Nigerian Meteorological Agency, NiMet, had on Sunday predicted thunderstorms and hazy weather conditions from Sunday to Tuesday in some parts of the country.

NiMet’s weather outlook indicated morning thunderstorms over the central states in places like Plateau, Nasarawa, the Federal Capital Territory, Benue, and Niger states.

Also later in the day, there are prospects of thunderstorms over parts of Kogi, Niger, Plateau, Benue, Nasarawa, and the Federal Capital Territory.

In its reaction to the prediction, the FCT Emergency Management Department (FEMD) said it has placed its flood vanguards and local emergency management committees in the six area councils on alert following warnings of possible flooding in the territory.

In a statement by Head, Public Affairs of the Department, Nkechi Isa, “The FCT Emergency Management Department, FEMD, has placed its vanguards and the local emergency management committees in the six area councils on alert following early warnings of possible flooding in the Territory.

“A weather outlook issued by the Nigeria Meteorological Agency, NiMet, and made available to FEMD says isolated thunderstorms are likely today over parts of the FCT, Nasarawa, Kogi, Benue, and Plateau.

“NiMet advises that strong winds may precede the rains in areas where the thunderstorms are likely to occur and urged the public to take adequate precaution.

“NiMet also predicts similar weather conditions for Tuesday 25th and Wednesday 26th June 2024.

“Meanwhile, the National Flood Early Warning System (FEWS) Centre of the Federal Ministry of Environment has predicted that locations in 15 states are likely to witness heavy rainfall that may lead to flooding between today and tomorrow.

“States like Kogi, Nasarawa, Niger, and Kaduna are among states expected to experience heavy flooding. However, the FCT may not experience flooding.

“In reaction to the early warning on neighbouring states, the Ag. Director General of FEMD, Mrs Florence Dawon Wenegieme, said the department has put in place mitigation measures around the city.

“Mrs Wenegieme informed that the Search and Rescue Team are on the alert, while local divers have been posted to vulnerable locations.

“The Ag DG appealed to residents to always use the 112 emergency toll-free number in the event of an emergency.”