For years now, despite billions of naira spent on maintenance and repair, the refineries have continued to perform below expectation which has resulted in the importation of petroleum products thereby causing a huge loss in the process.

According to the National Bureau of Statistics (NBS), the volume of petrol imported into the country in September stood at 1.46 billion litres. This means that Nigeria spends fortunes on the importation of pertrol from China.

While the import of petrol as remained a source of concern for economic experts and concerned Nigerians, African richest man, Aliko Dangote is daily advancing his commitment to start a refinery.

When the Dangote Refinery eventually becomes operational, it’s expected that local demands of petrol products will be satisfied, such that there will be surplus for exports.

This 65,000 barrel per day project will change Nigeria’s fortune, as the most populous country in Africa will become an oil refining country and oil exporter.

The post Nigeria Resumes Petrol Imports From China appeared first on Business News in Nigeria.

Recall that some months ago, the Debt Management Office (DMO) released the country’s debt report.

In the report as reported on Unmask NG,  Nigeria’s total debt stock, which comprises foreign and local arrears, as at June 2020 stood at N31.01 trillion, which represents 8.31% increase when compared to her N28.63 trillion debt profile as at March 2020 (three months prior).

Out of the N31.01 trillion debt profile, external debt stood at N11.36 trillion, representing 36.65% of the total debt stock. On the other hand, domestic debt at N19.65 trillion, representing 63.35% of the total debt.

The DMO report also disclosed that N1.21 trillion was spent to service the loans during the period under review. While domestic debt servicing gulped N921.9 billion, the government spent N288.6 billion to service its foreign debts.

Raising alarm on the debt crisis, the Executive Chairman of FIRS, Muhammadu Nami analyzed how Nigeria’s impending recession will affect the country’s revenue.

“Oil prices have plummeted (from $97.98 in 2012 to below $50 in 2020. Collection has indeed gone up, but Nigeria’s VAT gap remained at a pitiable 70 percent, compared with South Africa at 12 percent, Morocco at 28 percent, and Zimbabwe at 38 percent.

“If the country’s revenue doesn’t improve, Nigeria will struggle to service its debt, and it will lead to debt crisis. The debt crisis will worsen insecurity and result in political unrest in the country.

 “A Debt Management Office (DMO) report indicates that about N1.21 trillion was used to service debt from January to June 2020. Over N3 trillion is proposed for debt servicing in 2021. The report further projects that Nigeria’s debt stock will grow significantly by end of 2020. God forbid that Nigeria should default in debt repayment obligations.

“Nigeria’s debt to revenue ratio is worsening it is estimated at 538 percent at the end of the fourth quarter, that is 190 percent increase from 2019 figure (348 percent),” his analysis pointed out.

What this means

In spite of concerns from economic experts, industry players, stakeholders, and international bodies, President Muhammadu Buhari-led government has channeled its focus on borrowings and adding to Nigeria’s alarming debt stock.

It is however apparent that loans seem to be the only way the incumbent administration can secure funds to keep the economy running.

But the reality is, should the government continue on this trend, the increasing debt would not stop to disrupt large investments on infrastructures, which are meant to stimulate productivity and improve the standard of living of the people.

The post FIRS Warns Buhari Against Plunging Nigeria Into Debt Crisis appeared first on Business News in Nigeria.

Unmask NG observed those who were driving to work were stuck in traffic, as others who commutes to their workplaces were stranded and made to return home.

According to an eye witness, the protesters parked their vehicles on the roads, restricting the movement of workers and commuters. “You need to see as people were made to walk long distances because vehicles were not allowed to move. We pleaded with them to allow us to pass, they refused us from that even despite telling them that we subscribe to their agitations. I like what the protesters are doing, and I think the energy should keep burning,” she said.

Similar, a commuter who identified himself as Kelvin Samson told Unmask NG that she was left with no choice than to call him employer for permission to work remotely. “I had to call my boss and inform him of the situation. Surprisingly, to me, he told me he couldn’t make it to the office as well due to similar experience,” Samson said.

Meanwhile, Governor Babajide Sanwo-Olu of Lagos had appealed to the #EndSARS protesters to vacate the roads, as his administration has shown commitment in addressing the issues raised so far.

He made the appeal while swearing-in members of the Judicial Panel of Inquiry and Restitution at the State House in Marina.

His words: “We have shown unprecedented commitment to the complete overhaul of the Nigeria Police. The inauguration of this Judicial Panel of Inquiry is only the first step in a long line of reformative actions that will lead to a thorough revamp and reorientation of the Nigeria Police. I believe that some of the actions we have taken should, to a large extent, show our sincerity and willingness to address all your concerns.

“Let me reiterate that I am on the side of the young people out there. I understand your pain and I know your concerns are genuine and legitimate. While we are able to immediately acquiesce to some of your demands, some others will require time. We ask you to bear with us as we dutifully work on your demands.

“I will, therefore, like to renew my appeal to you to suspend the protests and create an atmosphere for the resolution of all pending demands. I encourage everyone brutalised by the disbanded SARS, including the families of those who died, to present their case before this tribunal.”

The post Workers Return Home As #EndSARS Protesters Block Major Roads appeared first on Business News in Nigeria.

Speaking during LCCI’s Annual General Meeting (AGM), Toki Mabogunje, the professional body’s president, stated that the country’s debt is fast becoming unsustainable.

According to her, in the light of the dwindling oil prices and production, Nigeria’s debt profile is likely to hit N34 trillion by the end of this year (2020).

Making reference to the Debt Management Office (DMO), Mabogunje explained that increase in Nigeria’s public debt was because of the fresh domestic and external borrowing, which she noted were meant to connect the wide fiscal deficit in the revised 2020 budget given the economic impact of COVID-19 and recent exchange rate devaluation.

She said: “The public debt stock grew by 8 percent to a whooping N31tn at the end of the second quarter which is equivalent to 21 percent of the GDP.

 “At the peak of the pandemic in the second quarter, the Federal Government received financial support worth $3.4bn and $288.5m from the International Monetary Fund and the African Development Bank respectively, while negotiations are also on-going for a cumulative $1.8bn credit support from the World Bank, AFDB and Islamic Development Bank.”

The LCCI president further made mention of underperforming sectors, which she said has contributed to the country’s unstable economy due to their weak performances.

Mabogunje revealed that 19 sectors have contracted, 14 are in a recession, 11 sectors expanded, and two sectors had moderation in growth.

“While we commend policymakers for the interventions in reflating the economy and supporting business. We urge that special attention be given to sectors severely impacted by the pandemic. The federal government need to expeditiously redirect attention to these sectors including aviation, hospitality, entertainment and manufacturing. This has become necessary to protect jobs, preserve investments and provide the much needed liquidity required to revive the sector,” she added.

Nigeria’s debt portfolio

Recall that some weeks ago, DMO released the country’s debt report.

In the report, Unmask NG learnt that Nigeria’s total debt stock, which comprises foreign and local arrears, as at June 2020 stood at N31.01 trillion, which represents 8.31% increase when compared to her N28.63 trillion debt profile as at March 2020 (three months prior).

Out of the N31.01 trillion debt profile, external debt stood at N11.36 trillion, representing 36.65% of the total debt stock. On the other hand, domestic debt at N19.65 trillion, representing 63.35% of the total debt.

The DMO report also disclosed that N1.21 trillion was spent to service the loans during the period under review. While domestic debt servicing gulped N921.9 billion, the government spent N288.6 billion to service its foreign debts.

Here’s what we know

In spite of concerns from economy experts, industry players and stakeholders, and international bodies, the President Muhammadu Buhari-led government has channeled its focus on borrowings and adding to Nigeria’s alarming debt stock.

From recent comments by officers in Buhari’s cabinet, it is pretty much obvious that loans seem to be the only way the incumbent administration can secure funds to keep the economy running.

But the reality is, should the government continue on this trend, the increasing debt would not stop to disrupt large investments on infrastructures, which are meant to stimulate productivity and improve the standard of living of the people.

The post LCCI Raises Concern Over Nigeria’s Increasing Debt Profile appeared first on Business News in Nigeria.