₦airaland Forum

Kukutente23:
Lol. It's back. Stop repeating same thing like a disc jockey
You were not blind when NNPCL took a $3bn loan recently to be paid with crude oil

plaindealer:
https://www.thecable.ng/survey-62-of-nigerians-see-country-moving-forward-under-tinubu-despite-economic-hardship

justmondris:
What has Democracy done for Africa. During the worst military head of state in the history of Nigeria, 1$ = 22Naira. What's the current exchange rate in the so called democracy regime?

We don't care about the regime or type of governance. We just want good leaders to move our country and continent forward. Is this too much to ask for?

Sajio:
This message is for nairaland,I don't know who is using my account. I kept see likes on comments and messages when I ever I long in. Is that my account has been hacked or what? How do I go about this..

Procashtips:
Majority of the people of Niger are with the military, it's going to be extremely difficult to overcome such a resolve except you actually want to kill the civilians.


My question then goes thus: If majority want the military, what then is the problem of outsiders?

GodHatesBigots:
“Bazoum and his family, according to the latest information, have been deprived of food, electricity and medical care for several days,” said EU foreign policy chief Josep Borrell.

UN rights chief Volker Turk said Bazoum’s reported detention conditions “could amount to inhuman and degrading treatment, in violation of international human rights law”.

The AU said “such treatment of a democratically elected president” was “unacceptable”.

oyeb15:
What is d way out for Nigerians now. Our businesses are down. Myself I use fuel for my business and since it now expensive and [b]people are not paying well [/b]coupled with very low customers. Am running at huge loss.I can't even run again cos have spent all my savings. Am really confused!
How are we going to survive Please?

gitargy:
What points do the pro-war faction make to support their position?
I am American so I'm not really familiar with Nigerian politics. The American media is drumming up suport against the junta in Niger by characterizing them as pro-Russia. What are they saying in Nigeria?

obrian888:
Tifnubu does not have the legitimate right to interfere in any government, whether through coup or democracy because he is an illegitimate president, a mandate thief, he should vacate that office that mumu Yakubu gave to him. in short the ECOWAS exco is illegitimate

I would have love this your comment 100% but you failed to mention the government excess useless, foolish, insane spending, you mentioned education that we refused to pay high fees, why should we pay high when the government will collect the fees and still will not pay the teachers or honor agreement it had with them. why on earth will senator and HOR members collect unimaginable amount of salary where over 180 million Nigerians cannot get 3 meal a day and you want the masses to make sacrifice for a better country and the leaders are looting left and right? bros i support you in the area of the military taking us like 50 years back but let us look at the stealing of these useless criminals we call leaders holistically without sentiments of religion and tribalism, the solution to Nigerias problems is for a sincere military government to take over, execute all our leaders from LGA to the federal level from 1999 till date and then enthrone democracy and watch it from the sideline with a strict warning that if they do anyhow, they will anyhow like their predecessor. if you ask me between the military in Nigeria and the these present civilian thieves, bros i prefer the military than these civil thieves, court order they will not obey, the wife of the DSS dg is above the law, they kill maim and steal rig elections, tell me how are they better than their military counterparts? is the refinery and this country better since the military left it NO" please let the military take over, it is not about Obi. yes i voted for PO but the reason i voted for him is not because i believe he will fix the country overnight because no government can fix this country in 8years but we can see a great change, i voted Obi to move from the old order of PDAPC, these guys are pure DEMON in human form, they must die for Nigeria make progress, how can a country will so much crude deposit be importing petroleum products, they lie that there is subsidy, whether there is subsidy or not why are they not working on fixing the refineries. we have a very BIG problem taking care of our infrastructure, NNPC is just watching our refineries wasting away, now they have giving it a new name NNPCL or so, what will the change of name do? bunch of scammers, from the North to the South, to the East and down to the West, everywhere is thief, thief and thieves

Fkmodhi:
Imagine this fake news those useless mods push to front page without verification smh…

LagosFirstSon:
https://punchng.com/nigerians-didnt-bargain-for-current-hardship-gani-adams-tells-tinubu/?utm_source=auto-read-also&utm_medium=web&amp

nlfpmod:
https://pmnewsnigeria.com/2023/07/22/boiling-your-meat-well-does-not-kill-anthrax-expert-warns-nigerians/?utm_source=&utm_medium=twitter

LithiumSupplier:
1. I work in a project development company.

2. I am at the assistant manager level.

3. I do most of the work; from designing and maintaining company's websites, to clerical works such document preparation, oversee environmental consulting jobs, to troubleshooting company's systems and many more.

4. The problem is that the company does not appreciate all my efforts. They push every blame on me.

The owner and his son are just so inconsiderate. For example, I was working on a project that required attachment of some sensitive documents.

Once it was time, I requested for the documents from the owner, instead he provided me with different documents entirely. Many times, he will shout at me for asking questions. So I assumed that he didn't want the documents out in the public.

While reviewing my work, the owner was okay with the attached documents until he decided to make presentation with the work to prospects.

As soon as the prospects registered dissatisfaction with the out of place documents (So to say), he called and started blasting me on the phone, calling me stup!d and stuff. He would always let me take the fall for his own mistakes all the time.

His son on the other hand is just too empty and overbearing. His father would always ask him to supervise any project I'm working on.
He would okay many things and I can't say otherwise.

When we present the project to his father and the father decides to query any part of the things which he okayed earlier, he will push all the blames on me and the father will call to nag and lambast me for things I know nothing about.

This has been going on for like 3 years now.

My regret was that I turned down an offer from a small oil company in Lagos last year and early this year too.

My current pay is 300,000 NGN without accommodation, while the Lagos' was 350,000 NGN with accommodation.

I'm currently in Abuja. I was scared of the traffic in Lagos.

I really don't know what to do anymore...

This issue is affecting my mental health.

This guy talks down on me anyhow without respect.

This is a guy that can't properly put together a common letter.

As plan B, I have set up two blogs and Google just approved Adsense application on one, while I'm working on the other one.
I have also set up Facebook pages and have grown to over 232,000 active followers.

I am also an environmental consultant with over 15 years experience, I also major in GIS and I design websites too.

I am married with 2 kids. What should I do?

The recent 40 per cent hike in the exchange rate for cargo clearance at the seaports and the increase in tariff on imported cars by a terminal operator, Ports & Terminal Multipurpose Limited, has led to about 70 per cent drop in the sale of second-hand imported cars.

The PUNCH reported last week that the Central Bank of Nigeria and the Nigeria Customs Service had taken the ongoing foreign exchange reforms to the maritime sector with a 40 per cent increase in the exchange rate used for calculating the import duty.

The NCS had a few weeks ago raised the exchange rate used for the calculation of import duty from N422.30/dollar to N589/dollar.

The development, which has led to a corresponding 40 per cent increase in import duties on imported cargoes, including vehicles, has caused anxiety among operators in the maritime sector with clearing agents, freight forwarders and importers calling for

As that was gradually sinking in, the CBN on Thursday raised the exchange rate for cargo clearance by 31 per cent. The interest rate was moved from N589/$ to N770/$.

The NCS announced this development in a circular dated July 4, 2023, titled, ‘Implementation of the floating foreign exchange rate regime’ and was signed by the Assistant Controller General, IT & Modernisation, K. I. Adeola.

The circular read in part, “The CBN has instituted the floating exchange rate regime, which has given rise to incessant changes in the exchange rate for trade. The policy is to be implemented by all ministries, departments and agencies of the government, including the NCS.”

The service through the circular directed its area controllers to ensure that the information was communicated to relevant stakeholders.

Confirming the development, the Youth Leader of the Association of Nigerian Licensed Customs Agents, Tin Can Island chapter, Remilekun Sikiru, said the directive was communicated to members of the group in the early hours of Thursday.

Sikiru, who is also the Chief Executive Officer of Sikremstar Logistics Limited, explained that a 2004 Toyota Camry that was cleared for N1m before the introduction of the Vehicle Identification Number for clearing of imported vehicles was now being cleared for N1.9m.

Giving details of the new rate for clearing vehicles from 2001 to 2014, Sikiru said, “The actual duty on Toyota Camry is N705,000, while the total duty and clearance cost is N1.7m; for Corolla, the duty is N558,000 and total clearance cost is N1.3m; Sienna duty is N930,000 and total clearance cost is N2.2m; duty on Highlander is N1.1m, bringing the total clearance cost to N2.6m; duty on Venza is N1.2m and total cost is N3m.

“For Lexus RX350, the duty is now N1.5m, bringing the total clearance cost to N3m; duty on Lexus ES350 is N1.3m and the total cost is N3m; for Toyota RAV4, the duty is N831,000 and total cost of clearing it is N1.2m; Honda Pilot’s duty is N966,000 and the total clearance cost is N2.2m; Honda Accord’s duty amounts to N769,000 and total clearance cost is N1.8m; for Toyota Tacoma, the duty is N417,000 and total clearance cost is N818,000. These vehicles are from 2001 to 2014.”

Total duty or total clearance cost means the duty payable on a car plus the surcharge, ECOWAS duty and the seven per cent port development levy.

The development came barely one month after the Federal Government removed the fuel subsidy and floated the naira. It also came at a time electricity distribution firms were considering increasing power tariffs

The National Public Relations Officer, NCS, Abdullahi Maiwada, who confirmed the new exchange rate on the agency’s portal, said it was only implementing the CBN policy.

“Whatever you see in our system is what has been communicated to us. It is determined by the Central Bank of Nigeria. So whatever we are using is what is obtainable as communicated to us. It is a monetary policy; we only implement what is given to us. It is a monetary policy and anything monetary is not determined by us, it is determined by the CBN. We only use what is communicated to us,” Maiwada stated.

Sikiru had earlier said the new rate had taken effect on the Customs portal and that the customs duty payable on vehicles had increased astronomically.

According to him, this development may lead to cargoes, including vehicles, being trapped at the terminals.

“The customs duty has been increased and it will lead to a heavy increment in duty payment on general goods and cargoes. This will bring hardship on importers,” Sikiru added.

Also speaking, a freight forwarder and Chief Executive Officer, 2B Frank Nigeria Limited, Nwegbe Frankypaul, said, “Freight forwarders woke up on Saturday to realise that the dollar rate had been increased from about N423 per dollar to about N590 per dollar.”

Nwegbe pleaded with President Bola Tinubu to ensure the depreciation of the value of older vehicles.

The Founder of the National Council of Managing Directors of Licensed Customs Agents, Mr Lucky Amiwero, said, “The moment you allow the naira to float freely in terms of exchange that is what you get. And it is going to affect the prices of goods. It is going to take a lot of licensed customs agents out of work because most of them are going to lose their customers.”

The Vice-President of the National Association of Government Approved Freight Forwarders, Nnadi Ugochukwu, said, “It will affect businesses; there is a container I have for someone, before now, we used to clear that container for N4.3m. With the new exchange rate, the clearing cost is now N6.5m.”

A licensed Customs agent, Mr Festus Ukwu, said, “Even if the Federal Government wants to do exchange rate harmonisation, they should know how to go about it. This increase is a very big one.”

However, while the agents were still lamenting the increased exchange rate, the PTML slammed a 36 per cent tariff on imported used cars.

This development coming from a terminal operator that specialises mostly in the importation of cars worsened the woes of vehicle importers and sellers.

In a public notice sighted by our correspondent, the terminal operator said the current economic conditions of surging inflation, coupled with the devaluation of the currency and removal of subsidy on petrol had caused its operational cost to increase

The terminal operator in the notice said its action had received the endorsement of relevant authorities.

The notice read in part, “The PTML would like to bring to the attention of its esteemed customers that the current economic conditions of surging inflation, coupled with the devaluation of currency and removal of fuel subsidy have caused the operational costs to increase multi-fold. Hence, having received the endorsement of the relevant authorities, it has become imperative to restructure our terminal tariffs from the 1st of July 2023.

“The PTML is confident that its esteemed customers will understand the rationale behind this review that will assist us in ensuring our superior level of service, while keeping the competitiveness of its rates.”

Reacting to all these developments, the President of the Berger Motor Dealers Association of Nigeria, Mr Metche Nnadiekwe, said that currently, members of his group were recording about a 70 per cent drop in patronage.

He said, “I don’t know if they think at all before coming up with policies like the increase in tariff or is it that when they wake up in the morning they just come up with policies. There is no need for an increase in the exchange rate for cargo clearance. We are still talking about that and the terminal is coming up with another increase, which has finally killed the business.

“There is a drastic drop in the volume of patronage we get here; there is up to 70 per cent drop in the patronage. The thing is there is no money to buy; people are not coming again to buy from us; we just sit down here and are doing nothing. The last time we checked many of our members are out of business; these are people who have bills to pay and they come out every day looking at their vehicles and no customer is coming to buy as a result of the additional money and all that.”

Also speaking, the Secretary General of the Lagos State Motor Dealers Association, Mr Tai Olaniran, said the dealers now focus more on reselling Nigerian used cars.

Olaniran stated, “It is difficult here and we don’t know the way forward; what they are trying to do is to discourage older vehicles and that is why we are now dealing with reselling Nigerian used vehicles. Because when you are clearing the same 2005 or 2006 model, you will find out that it is the same amount as the 2016 model. So, with the increment, you will see that they want to discourage older vehicles. It is going to affect us quite alright and it will affect the people as well.

“And many of us will go out of business or we will continue dealing in Nigerian used vehicles. So, we prefer Nigerian used vehicles instead of going for Tokunbo cars. With this increase in costs now, we will continue to do it so that we won’t go out of business; the percentage increase is much. At least since the removal of fuel subsidy and all that, most people don’t use cars again, so the volume of vehicle sales has dropped radically and I think the drop is up to 50 per cent, and it may be higher, I am not sure.”

A car dealer in the Alimosho area of Lagos State, Mr Johnpaul Ejiogu, said, “People now prefer to buy Nigerian-used cars to Tokunbo cars. You will find out that even the Nigerian-used cars are not affordable; they are also expensive but just a bit cheaper than the Tokunbo cars. We mostly deal in those ones and it is even very difficult to get buyers now. I will say that there is about 70 per cent drop in car sales now.”

An e-hailing cab driver, Joshua Abbey, said he chose to buy a Nigerian-used car for his e-hailing business because that was what he could afford.

“I wanted to go into the e-hailing transport business and I planned to get a Tokunbo car for that purpose, but when I priced the car, the dealers were quoting almost N4m for a 2004 model of Toyota Camry so I decided to buy a Nigerian-used version; even though it was expensive, it cost less than the Tokunbo one. I know that getting a Tokunbo would have been better for my business, but I have to manage this one like that,” he told Sunday PUNCH.

According to Chibiike Ignatius, the more he tries to save up to buy a small car of his choice, the more the price goes up.

“It’s like I will save my money, because the more I save to buy the vehicle, the more the price goes up,” he stated.

A document obtained from the Customs showed that a total of 117,830 vehicles used vehicles were imported into the country in the first quarter of 2021, while 97,132 vehicles were imported in the same period of 2022. The steady decline was witnessed in the first quarter of this year as a total of 51,782 Tokunbo vehicles were imported.

On Thursday, President Bola Tinubu, signed four Executive Orders deferring and suspending the commencement of certain taxes paid by individuals and companies in the country with the aim of reducing the tax burden.

According to his Special Adviser on Special Duties, Communications and Strategy, Dele Alake, the President signed the Finance Act (Effective Date Variation) Order, 2023, which deferred the commencement date of the changes contained in the Act from May 23, 2023 to September 1, 2023.

He also signed the Customs, Excise Tariff (Variation) Amendment Order, 2023 shifting the commencement date of the tax changes from March 27, 2023 to August 1, 2023 in line with the National Tax Policy.

The President also gave an order suspending the five per cent Excise Tax on telecommunication services, as well as excise duties’ escalation on locally manufactured products. He also ordered the suspension of the Import Tax Adjustment Levy on certain vehicles.

But reacting to the Executive Order concerning importation of vehicles, Amiwero said it would likely lead to an increase in the importation of vehicles by about 15 per cent.

“You know the exchange rate has been affected. So, the boost on car importation won’t be much; we are looking at between 10 per cent and 15 per cent. Because you know that the exchange rate will actually reduce some of the gains. So, we are looking at a 10 per cent to 15 per cent increase in vehicles coming into the country,” he explained.

nairalanda1:
As for Nigeria, we were paying for explicit subside....ie subsides paid to cover the losses resulting from selling fuel way below its productive cost...from oil income. Not from taxes or from revenue from manufacturing and exporting manufactured goods...or from other sources of income...just oil. And we don't even earn enough oil money to begin with for a nation our size.

nairalanda1:
Smuggling is a phenonenom that happens in all countries with explicit subsides on petrol like Nigeria.

Libya sells fuel at N14, and they can afford it, with a populaiton of 7 million and production of 1.7 m barrels per day. But that means that smuggling happens massively...to the point they are using air strikes to stop smuggler.

Yeah corrupt politicans and NNPC are part of the problem because subsidy=free government money-=corruption

nairalanda1:
That is why I said in that quote you quoted that it may....not that it would.

Personally, I don't expect it to reduce prices to below N200. Or even 400. Maybe N450 and above. Maybe even higher.

nairalanda1:
Yeah, but eventually, we would get increased domestic refining coming up, as all them license holders for refineries don't have a choice, but to start work.

It may lead to a reduction in prices, but the era of prices below 200 naira is over. Petrol costs money to refine. Government has been protecting us from high fuel prcies for 5 decades, and it has cost us too too much.

Hanndye:
The question is if fuel subsidy is not beneficial, why are people now suffering because of it's removal? A man made a decision, in his speech, off hand in order to look smart and some people were appluding him. Nigerians!

The World Bank has stated that Nigeria has one of the highest inflation rates, which pushed an estimated four million people into poverty between January and May 2023.

This was disclosed during the launch of the June 2023 edition of the Nigeria Development Update on Tuesday in Abuja.

The Washington-based lender also said about 7.1 million poor Nigerians would become poor if the Federal Government failed to compensate or provide palliatives for them, following the removal of fuel subsidy.

According to World Bank data, 89.8 million Nigerian were poor as of the beginning of this year. The lender noted that additional four million Nigerians became poor between January and May this year, raising the figure to 93.8million.


Latest projection means the number of poor Nigerians will rise to 100.9 million if the government fails to compensate vulnerable citizens for fuel subsidy removal.

The World Bank Nigeria Development Update report noted that Nigeria’s inflation has risen to a 17-year high, and has been driven by a number of factors, such as CBN funding of budget deficit, previous multiple exchange rates, devaluation, and trade restrictions.

The report read, in part, “Consumer price inflation has surged and is currently one of the highest globally, which is related to Nigeria’s fiscal imbalance and points to the urgency of reform efforts. Inflation in Nigeria has been high for many years due to structural factors, but it escalated in 2022, to the point where consumer prices increased at their fastest pace for 17 years.

“The consumer price index further accelerated in 2023 through May, up to 22.4 percent y-o-y. High inflation has been driven by the monetization of the fiscal deficit by the CBN, multiple exchange rates and exchange rate depreciation in the parallel market, and intensified trade restrictions, exacerbated by the spike in global food and energy prices.

“The CBN implemented measures to control rising inflation, including raising the monetary policy rate by 700 basis points, but these proved ineffective and monetary policy remained loose overall in the first half of the year. The loss of purchasing power from high inflation has increased poverty in the short-term, pushing an estimated 4 million Nigerians into poverty between January and May 2023.”

The National Bureau of Statistics recently disclosed that inflation in the country rose to 22.41 per cent in May, which is the highest in about 19 years.

Also, the NBS, in its National Multidimensional Poverty Index report, disclosed that 133 million Nigerians are multi-dimensionally poor.

The NBS said 63 per cent of Nigerians were poor due to a lack of access to health, education, living standards, employment, and security.

The Multidimensional Poverty Index offered a multivariate form of poverty assessment, identifying deprivations across health, education, living standards, work, and shocks.

In its new report, the Washington-based bank noted that the loss of purchasing power increased the poverty headcount rate by an estimated 2 percentage points or 4 million people.

This may mean that the total number of poor people in the country has risen to 137 million this year.

The World Bank added that the number of poor people in rural areas increased by an estimated 4 percent, while in urban settings, there was an estimated increase of 11 per cent.

The Brenton Woods institution further noted that with the removal of fuel subsidy, about 7.1 million people are at risk of becoming poor if no form of compensation is provided by the government.

The report read, “In the immediate term, the removal of the petrol subsidy has caused an increase in prices, adversely affect ting poor and economically insecure Nigerian households. Petrol prices appear to have almost tripled following the subsidy removal.

“The poor and economically insecure households, who directly purchase and use petrol as well as those that indirectly consume petrol, are adversely affected by the price increase. Among the poor and economically insecure, 38 percent own a motorcycle and 23 percent own a generator that depends on petrol. Many more use petrol dependent transportation.

“The poor and economically insecure households will face an equivalent income loss of N5,700 per month, and without compensation, an additional 7.1 million people will be pushed into poverty.

The World Bank warned that many newly poor and economically insecure households will likely resort to consequential coping mechanisms, such as “not sending children to school, or not going to the health facilities to seek preventative healthcare or cutting back on nutritious dietary choices.”

The bank stressed the need for adequate compensation, noting that compensating transfers will be essential in helping to shield Nigerian households from the initial price impacts of the subsidy reform.

The lending institution further applauded the removal of the subsidy and FX management reforms, which are crucial measures to begin to rebuild fiscal space and restore macroeconomic stability.

It stressed that the opportunity should be seized to take further necessary policy reform steps.

The report added, “Following a bold start with the recent PMS subsidy reforms and FX reforms, the urgency remains for Nigeria to seize the opportunity to chart a new course with ambitious and comprehensive reforms to raise long-term growth prospects.”

In his remarks, the governor of Oyo state, Seyi Makinde, said the reforms of the new administration are a step in the right direction.

However, he said there is a need to ensure that social safety nets are put in place because other than the local disruptions, there are also global headwinds that affect Nigeria as well.

“Social protection programs must be taken with a systemic approach towards long-term objectives,” he said.

Abia State Governor Alex Otti stressed the need for deregulation in the oil sector in order to maintain the reforms in this sector.

“What is important is not that the subsidy is removed, but the ability to sustain that removal, and the only way to do is moving from regulation to deregulation,” he said.

He further stressed the need for a sustainable cash transfer programme and other programmes that are well-targeted to the poor affected by the reforms in the country.

The Resident Representative for Nigeria of the International Monetary Fund, Ari Aisen, noted that the current reforms of the new administration are expected to have side effects.

He said, “There were so many distortions accumulated in the past, it is naturally that when these policies are implemented, you have some side effects. We should all expect that.”

Aisen added that inflation will likely keep rising, and stressed the need for policies that would curb inflation.

“Here, inflation is the main culprit in the room. We have seen inflation already high before the implementation of these policies. Inflation is likely to increase further. In our view, it is going to be critical to tailor macroeconomic policies to reduce inflation,” he said.

The IMF Representative further said that there is a need for further tightening of the monetary rates, which he said, remain loose.

He added that the IMF hopes to continue its long-term relationship with Nigeria, supporting the country with capacity building, policy advisory, and financing.

The Director General, Debt Management Office, Ms Patience Oniha, noted that although the government can borrow from the Central Bank of Nigeria through the Ways and Means Advances, it is important to stick to the limit.

She further stressed the need for urgent support from multilateral organisations in addressing the tough time Nigerians are going through.

Oniha said, “These are tough times because the policies have all been introduced now. In what ways can we get real support? We do appreciate all the concessional funding that we get from the multilaterals. In this short time, in what way can we get that assistance?”

The Special Adviser to the President, Bola Tinubu, on Monetary Policies, Wale Edun, said that other than the $800m loan from the World Bank, there may need for additional financing to ensure the sustainability of the bold reforms under the administrations.

“We have identified some sources of funding, but we are going after many more,” he said

The World Bank Country Director for Nigeria, Shubham Chaudhuri, further disclosed that Nigeria is the biggest beneficiary of concessional financing from the World Bank, with over $10.5bn since February 2020.

The World Bank lead economist for Nigeria, Alex Sienaert, during a presentation at the event, said that Nigeria is projected to save up to $5.1bn (N3.9tn) in 2023 alone after the removal of fuel subsidy and reforms of its foreign exchange market.

The Central Bank of Nigeria and the Nigeria Customs Service have taken the ongoing foreign exchange reforms to the maritime sector with a 40 per cent increase in the exchange rate used for calculating import duty.

The NCS on Saturday raised the exchange rate used for the calculation of import duty from N422.30/dollar to N589/dollar.

The development, which has led to a corresponding 40 per cent increase in import duty on imported cargoes including vehicles, has angered operators in the maritime sector with clearing agents, freight forwarders, and importers calling for an immediate reversal of the policy.

Stakeholders said the policy would lead to job losses in the maritime sector and a drastic fall in the number of imported vehicles.

This, they said, could affect business and economic growth. Economists also said the government was insensitive, saying the policy was capable of affecting Nigerians negatively

dre11:
https://punchng.com/inflation-rose-67-times-under-emefiele-says-report/

hedonido:
Anything to make the fuel price N1, 000 per litre is welcome by me. The government officials have not reduced their ridiculous motorcades and wasteful privileges, but they are talking about fuel subsidy removal. Yet the useless poor masses are 'reasoning' with them.

The stupid masses need to be suffocated and crushed to death if possible, because that's what they deserve. Their complacency is disgusting.

Never seen a country filled with such docile idiots.

The recent hike in the pump price of Premium Motor Spirit, popularly called petrol, would adversely affect food production and subsequently cause costs to shoot up, farmers stated.

Based on this, they insisted that the market prices of food items were bound to rise, stressing that Nigerians should brace up for about 150 per cent increase in the cost of agricultural produce

President Bola Tinubu had declared during his inauguration as Nigeria’s 16th President, on May 29, 2023, that fuel “subsidy is gone.”

In about two days after Tinubu’s declaration, the sole importer of petrol into the country, Nigerian National Petroleum Company Limited, released a price list for PMS at its retail stations, indicating a jump in price from N195/litre to over N500/litre.

The about 156 per cent hike in petrol price was implemented in all states and the Federal Capital Territory, aside Lagos, where it sold for N488/litre at NNPCL filling stations.

The development led to the hike in the cost of various goods and services across the country.

In the agricultural sector, farmers under the aegis of the All Farmers Association of Nigeria stated that the hike in the cost of food, following the jump in PMS price, was non-negotiable.

The situation is dire right now. Food price rise as a result of the hike in petrol price is non-negotiable. That is a reality. The issue now is, by how much or per cent will this increase be?,” the President, All Farmers Association of Nigeria, Kabir Ibrahim, told our correspondent.

He added, “Fuel is being sold at over N500/litre, so the fact is that once transportation increases, the prices of transport will be transferred on food. So, as people pay a lot to bring the food to where it is needed, the prices will increase.

“Therefore, I foresee a situation where the prices of food items would take the biggest hit and would definitely rise because of the increase in the pump price of petrol.”

On his part, the Coordinator of Nigeria Agribusiness Group, Emmanuel Ijewere, observed that though the cost of diesel had remained stable for a while, the rise in petrol could lead to over 100 per cent increase in food prices

.The hike in petrol price is affecting food production and cost very negatively right now. The petrol price rise is not 30 per cent, but over 100 per cent and Nigerians should brace up to get something similar in the cost of agricultural commodities.

“Especially those food that are moved from one part of the country to the other, they will feel the impact. However, that on its own is not meant to be affected much if there is honesty, because the price of diesel has been liberalised long ago.

“So, those trailers cannot say the price of petrol has gone up, because they don’t use petrol but they use diesel. Therefore, the price of food, which they transport should not be affected, but the irony is that it will be affected,” he stated.

Ijewere explained that that was because “when the trailers put down their goods at the central place, the cost of moving it to the smaller markets, with shorter distances, will be borne by dealers who use vehicles that run on petrol”.

He said the government would, therefore, need to educate people about this, in order to avoid being cheated by transporters.

“This is because many people don’t understand what I have just said. The price of petrol has gone up, and trailer drivers will now capitalise on it to charge farmers twice or three times what they were charging before.

“So, information dissemination is key right now. The price of diesel has not changed, it has remained the same or around the same rate for a very long time. So, people should not be cheated by drivers who operate vehicles that run on diesel,” Ijewere stated.

He pointed out that another thing farmers should consider now was to start buying bicycles, rather than looking for public transport, particularly when going to farms that were not too far away from their homes.

“The government on its own should also find a way of encouraging people, because riding a bicycle is healthy and I think it is a good thing for our country,” Ijewere stated.

He, however, stated that the petrol price rise did not discouraged farmers from farming, as agricultural activities were still ongoing in many states, despite the development in the downstream oil sector.

jjcena:
There's no plan. Suffering and smiling continua