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Stakeholders raise concern as Nigeria’s inflation rate rises to 31.70%

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The challenge of spiraling inflation and how to stem the tide has been central to stakeholders engagements in recent times.

According to analysts at CardinalStone Finance, an investment house, the rising inflation pressure indicates that Nigeria remains within the top 10 countries with the highest inflation reading in Africa.

The analysts said that a material jump in prices of food stuff like rice, was a consequence of the increasing depletion of food reserves and incessant insecurity issues in food-producing parts of the country.

The News Agency of Nigeria  (NAN) reports that Nigeria’s inflation rate rose to 31.70 per cent in February from 29.90 per cent in January.

This is according to recent data from the National Bureau of Statistics (NBS).

The NBS said that the February headline inflation rate showed an increase of 1.80 per cent compared to the January headline inflation rate.

It said that on a year-on-year basis, the headline inflation rate was 9.79 per cent points higher than the rate recorded in February 2023, which was 21.91 per cent.

“This shows that the headline inflation rate (year-on-year basis) increased in the month of February 2024 when compared to the same month in the preceding year ( February 2023),” the NBS said.

The International Monetary Fund (IMF) also warned that 8.0 per cent of Nigerians are at a high risk of food insecurity if the current inflationary trajectory persisted.

The Governor of Central Bank of Nigeria (CBN), Mr Yemi Cardoso, said that the leading factors driving inflationary pressure in Nigeria included rising cost of energy.

Cardoso said that high fiscal deficits and lingering security challenges in major food -producing areas were also responsible for the high inflation rate.

He said that the apex bank had initiated a raft of inflation-targeting frameworks in its monetary policy measures.

He said that this informed the decision by the CBN to further raise the Monetary Policy Rate (MPR) by 400 basis points to 22.75 per cent from 18.75 per cent.

According to Cardoso, the move followed the success recorded in slowing down inflation in the past using the same mechanism.

Stakeholders, however, believe that the removal of petrol subsidy, closely followed by the decision to float the Naira were largely responsible for the spiraling inflation.

According to Okechukwu Unegbu, a past president of the Chattered Institute of Bankers of Nigeria (CIBN), President Bola Tinubu already took some sensitive policy decisions even before appointing the CBN governor and the finance minister.

“Floating the Naira was a major error that has exacerbated inflationary trend and caused the people so much pain,” he said.

Unegbu urged the government to fix the economy by looking beyond the Organisation of Petroleum Exporting Countries (OPEC) in selling its crude oil.

He also advised that the government should ignore economic prescriptions by the World Bank and IMF and produce indigenous solutions to the nation’s economic challenges.

“Nigeria should do something about pricing its oil in Naira. We should leave OPEC, price our oil independently.

“If inflation can be addressed; if we produce more food, things will improve. It will also address the issue of “dollarisation of the economy,’’ he said.

A renowned economist, Prof. Ken Ife, said that the CBN adopted inflation targeting as a basis for further tightening monetary policy rates,  an indication of how serious government took the country’s rising inflation.

Ife, however, said that the support from the fiscal authorities was crucial to achieving monetary policy results.

“The CBN says it is going for inflation targeting, but there should be more support from the fiscal authorities because a lot of the issues with the economy are not really monetary.

“We have N500 billion going for social intervention annually, the money does not go into the productive sector,” Ife said.

He said that the import dependence nature of Nigeria’s economy was a major fuel to the inflation and weak Naira in the foreign exchange market.

According to him, not much has changed in terms of the structure of the economy over the years.

He said that Nigeria was part of an international division of labour, which confines it to the provision of raw materials and consumer of finished products.

“Any attempt to add value to our exports is usually met with stiff resistance.

“When a country is import dependent, it becomes so vulnerable to any external, global headwind, and it affects the economy

“The mortgage crisis in America and the Russian-Ukrainian war affected us because we are import-dependent. What we have is imported inflation,” he said.

Dr Chijioke Ekechukwu, an economist, said that while many countries were having their inflation rate reduced month-on-month, Nigeria’s inflation rate continued to rise because of volatile exchange rate regime.

Ekechukwu said that standard of living had dropped to the lowest ebb while the country’s external reserve was being eroded by inflation.

“Cost of living has become increasingly unbearable, crime has taken over the entire country, and investors are afraid to venture into the country.

“Companies are shutting down and leaving the country and jobs are lost every day.

“The government has to be very decisive as a matter of urgency to remedy the ailing economy by ensuring that the exchange rate improves to less than N800 to the dollar.

“The exchange rate must be stable to enable planning and to restore confidence in the economy,” he said.

Ekechukwu said that every possible avenue should be explored to diversify the country’s export base.

He advised the Federal Government to ensure that the country’s crude oil sales met the OPEC quota of 1.8 million barrels per day.

“The Federal Government should also ensure that revenue from crude oil sales came in on a daily basis through the CBN, ” he said..

He said that such a step would provide the country with enough liquidity to check inflation and other economic challenges.

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Israeli to close Al Jazeera’s operations in the country – PM Netanyahu

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Prime Minister Benjamin Netanyahu said his Cabinet has unanimously voted to close broadcaster Al Jazeera’s operations in Israel.

The move came after Israeli lawmakers recently approved a new media law widely referred to as the “Al Jazeera law” that gives the government powers to ban foreign broadcasters if they are deemed a risk to state security.

Netanyahu announced the Cabinet decision in a post on X, formerly Twitter, in which he called Al Jazeera “the hate channel.”

Israeli Communications Minister Shlomo Karhi said on Sunday that he had signed the closure order and that it would be implemented immediately.

According to Israeli reports, this means that offices in Israel could be closed, broadcasting equipment confiscated, the station removed from cable and satellite television channels and its website blocked.

The Israeli government had accused Al Jazeera, which is based in the Gulf emirate of Qatar and has a wide reach in the Arab world, of biased reporting on the ongoing war against Hamas militants in the Gaza Strip.

Al Jazeera has reported extensively on the catastrophic situation in the Palestinian territory and shown images of death and destruction that are rarely seen on Israeli television stations.

The channel also regularly shows videos of attacks on Israeli soldiers by Hamas’ military arm, the Qassam Brigades.

The channel has rejected allegations of bias and, in the past, accused Netanyahu of spreading “new lies and inflammatory slanders” against the network.

Al Jazeera has also accused the Israeli military of deliberately targeting journalists on several occasions.

Netanyahu has accused Al Jazeera of “damaging Israel’s security, actively participating in the massacre on October 7 and inciting against Israeli soldiers.”

Al-Jazeera was founded in 1996 and is headquartered in Doha. It was one of the first Arab TV stations to publish critical reports on the region and quickly gained popularity.

The Israeli government’s efforts to ban Al Jazeera have drawn criticism from some of the country’s most prominent allies, including the United States and Germany.

The U.S. State Department expressed irritation of the decision and reiterated support for the free press all over the world.

A German Foreign Office spokesman also criticised the so-called Al Jazeera law last month: “A free and diverse press landscape is the cornerstone of a liberal democracy.”

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OTC 2024: PETAN leads stakeholders on sustainable energy solutions for Africa’s future

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The Petroleum Technology Association of Nigeria (PETAN) has led delegates to the 2024 Offshore Technology Conference (OTC) in Houston, Texas U.S. to discuss sustainable energy solutions for Africa’s future.

Mr Kevin Nwanze, Executive Secretary, PETAN, disclosed this in a statement on Sunday in Lagos.

Nwanze said that PETAN’s Nigerian pavilion at OTC 2024 would be hosted under the theme, “Sustainable Energy Solutions for Africa’s Future”.

He said that the conference would have more than 200 hours of multidisciplinary discussions and networking events, including a wide range of topics, suited for every participant.

PETAN scribe, however, called for stakeholders’ participation at the 2024 OTC, holding between May 6 and May 9 at the NRG Park, Houston, Texas, US.

According to him, PETAN has been responsible for hosting stakeholders at the OTC for many years.

“The association is calling on government agencies, stakeholders, oil and gas companies, and Nigerian investors to participate at the Nigerian pavilion at the prestigious event in Houston, U.S.

“Participation in the Nigerian pavilion shall deliver a unique opportunity for exhibitors and delegates to interact with global professionals

“As they share their insights on technological advances, energy transition, safety, environmentally focused solutions, and economic and regulatory impacts of the offshore energy sector,” he aded.

Nwanze said: “It allows organisations to engage with world leaders, CEOs, and government officials from around the world, with the chance to create and develop business relationships.

“And also tap into emerging regions vital to offshore development and obtaining recognition necessary for growth and visibility to thousands across the globe.

“Showcase your company’s capabilities to over 1,000 delegates and over 250 companies in the industry.

“Promote products and services to operators and contractors in the local region.

“Gain access to the latest industry news and access to networking opportunities with professional contacts from across the world.

“Network with the upstream, midstream, and downstream organisations and high-profile government officials and key decision-makers in the industry.

“Build and establish new leads as well as entrench a global presence in the industry.

“Get familiar with competitors’ capabilities to stay ahead in the industry,” the statement read.

The OTC 2024 expects over 31,000 energy professionals as attendees, 45 technical sessions, 450 presentations and over 1,300 exhibitors drawn from different countries, including Nigeria.

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Osun Amotekun arrests 51-year-old man over alleged N1.5m fraud

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The Osun Amotekun Corps has arrested a 51-years-old man for allegedly defrauding nine people of N1,597,000 on the pretext of processing a Corporate Affairs Commission(CAC) registration and international passports for them.

This is contained in a statement by the Osun Amotekun Corps Commander, retired Brig.-Gen. Bashir Adewinmbi, on Sunday in Osogbo.

Adewinmbi said the suspect, who had been on the run, was arrested in Gbongan area of the state on Tuesday.

He disclosed that Akinola, who is an indigene of Igbara Odo in Ekiti State, collected N1,597,000 at the Oluyole area of Ibadan, Oyo State, from victims in the guise of processing CAC registration and international passport, and absconded.

“The suspect was arrested by the Amotekun Intelligence operatives in Gbongan after a complaint was lodged at our Ayedaade Local Government Command by one of the victims he collected money from at Oluyole Area in Ibadan.

“Our operatives swung into action immediately and were able to detect that the suspect, who had ran away from Ibadan, was in his hometown in Igbara-Odo of Ekiti State, using different telephone numbers to evade arrest.

“We were, however, able to arrest him after a tip-off from his girlfriend, who knows his hotline, and who also help us invite him to Gbongan for a business deal.

“He was promptly arrested after getting to Gbongan and during investigation, we discovered that the suspect goes by different other names such as Ayodeji Harry-young and Samuel Ayodeji with multiple phone numbers and ATM cards bearing different names.

“He also confessed to joining a fraud crime syndicate, aka 4-1-9 gang, in 2003 in Ekiti State,” Adewinmbi said.

The commander said the suspect has been handed over to Amotekun Oyo State Command for further interrogation and prosecution.

Adewinmbi said the arrest underscores the commitment and dedication of the Osun Amotekun Corps to combating crimes, and ensuring the safety and security of lives and property in the state.

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