Showing posts with label recession. Show all posts
Showing posts with label recession. Show all posts

Monday, 31 October 2016

Ford stops exportation of 500 vehicles to Nigeria


There are indications that Ford Motor Company has suspended its planned exportation of 500 units of vehicles meant for the Nigerian market owing to the current economic recession.
The United States automaker was said to have assembled the vehicles in its South African factory and completed all arrangements to ship them to Nigeria before halting the decision.
Prof. Okey Iheduru of the Arizona State University, United States, hinted at a forum in Lagos that Ford had dismantled over 500 units of vehicles meant for the Nigerian market because the Coscharis Group, its local representative, could not accommodate them.
The General Manager, Marketing and Corporate Services, Coscharis Group, Mr. Abiona Babarinde, who confirmed this in an emailed response to our correspondent’s enquiry, attributed the development to “forex-related issues.”
He said the vehicles were “to be imported as SKD (semi-knocked down) kits for (auto) assembly but got stuck in South Africa because of slow sale of what we already have in stock in Nigeria.”
Ford recently discontinued its business relationship with one of its two partners in Nigeria, RT Briscoe, leaving only Coscharis Motors as its sole representative in the country.
A statement from the Ford Motor Company of Sub-Saharan Africa sent to our correspondent via email said tough economic climate arising from the fall in oil prices, foreign exchange shortages and rapid devaluation of the naira was adversely affecting its operation in the region, including Nigeria.
The statement, which was sent by its spokesperson, Chipo Punungwe, read in part, “We continue to work through a tough economic environment in the sub-Saharan African region, including various economic factors such as lower oil prices, foreign exchange shortages and the rapid devaluation of local currencies, which have led to higher than normal inventory levels.”
Assemblers and dealers in new vehicles have complained about a drastic drop in vehicle sale this year due to recession.
A number of the companies, it was learnt, had to lay off some of their workers as their annual capacity utilisation had dropped by 97 per cent, from 500,000 to 15,000 vehicles.
The 15,000 new vehicles currently being produced in the country are less than what Toyota Nigeria Limited alone sold in 12 months some years ago.
Notwithstanding the current economic situation, Ford said it would continue to work with its partner, the Coscharis Group, to deliver quality vehicles and improved auto service to its customers in Nigeria.
“With Coscharis, we will continue to manage our business, review and optimise the movement of stock to ensure that we have a sufficient supply of vehicles to fulfil customers’ needs,” it stated.

Tuesday, 18 October 2016

Recession led me to crime – Fake Customs official


The Police in Ogun State on Monday nabbed a self-professed Assistant Comptroller of the Nigerian Customs Service, NCS.
The 55-year-old man, Mr. Ariyo Wasiu, who was arrested in the Agbara area of the state, has duped many unsuspecting Nigerians.
The state police spokesman, Abimbola Oyeyemi, who confirmed the arrest, said the suspect, a resident of Lagos Island, was dismissed six years ago from the Mechanic Department of the customs for an act of indiscipline.

Chimamanda Ngozi Adichie: Novelist writes on Nigeria’s Failed Promises


I was 7 years old the first time I recognized political fear. My parents and their friends were talking about the government, in our living room, in our relatively big house, set on relatively wide grounds at a southeastern Nigerian university, with doors shut and no strangers present. Yet they spoke in whispers. So ingrained was their apprehension that they whispered even when they did not need to. It was 1984 and Maj. Gen. Muhammadu Buhari was the military head of state.
Governmental controls had mangled the economy. Many imported goods were banned, scarcity was rife, black markets thrived, businesses were failing and soldiers stalked markets to enforce government-determined prices. My mother came home with precious cartons of subsidized milk and soap, which were sold in rationed quantities. Soldiers flogged people on the streets for “indiscipline” — such as littering or not standing in queues at the bus stop. On television, the head of state, stick-straight and authoritative, seemed remote, impassive on his throne amid the fear and uncertainty.
And yet when, 30 years later, in 2015, Mr. Buhari was elected as a democratic president, I welcomed it. Because for the first time, Nigerians had voted out an incumbent in an election that was largely free and fair. Because Mr. Buhari had sold himself as a near-ascetic reformer, as a man so personally aboveboard that he would wipe out Nigeria’s decades-long corruption. He represented a form of hope.
Nigeria is difficult to govern. It is Africa’s most populous country, with regional complexities, a scarred history and a patronage-based political culture. Still, Mr. Buhari ascended to the presidency with a rare advantage — not only did he have the good will of a majority of Nigerians, he elicited a peculiar mix of fear and respect. For the first weeks of his presidency, it was said that civil servants who were often absent from work suddenly appeared every day, on time, and that police officers and customs officials stopped demanding bribes.

He had an opportunity to make real reforms early on, to boldly reshape Nigeria’s path. He wasted it.

Perhaps the first clue was the unusually long time it took him to appoint his ministers. After an ostensible search for the very best, he presented many recycled figures with whom Nigerians were disenchanted. But the real test of his presidency came with the continued fall in oil prices, which had begun the year before his inauguration.
Nigeria’s economy is unwholesomely dependent on oil, and while the plunge in prices was bound to be catastrophic, Mr. Buhari’s actions made it even more so.
He adopted a policy of “defending” the naira, Nigeria’s currency. The official exchange rate was kept artificially low. On the black market, the exchange rate ballooned. Prices for everything rose: rice, bread, cooking oil. Fruit sellers and car sellers blamed “the price of dollars.” Complaints of hardship cut across class. Some businesses fired employees; others folded.
The government decided who would have access to the central bank’s now-reduced foreign currency reserves, and drew up an arbitrary list of worthy and unworthy goods — importers of toothpicks cannot, for example, but importers of oil can. Predictably, this policy spawned corruption: The exclusive few who were able to buy dollars at official rates could sell them on the black market and earn large, riskless profits — transactions that contribute nothing to the economy.
Mr. Buhari has spoken of his “good reasons” for ignoring the many economists who warned about the danger of his policies. He believes, rightly, that Nigeria needs to produce more of what it consumes, and he wants to spur local production. But local production cannot be willed into existence if the supporting infrastructure is absent, and banning goods has historically led not to local production but to a thriving shadow market. His intentions, good as they well might be, are rooted in an outdated economic model and an infantile view of Nigerians. For him, it seems, patriotism is not a voluntary and flexible thing, with room for dissent, but a martial enterprise: to obey without questioning. Nationalism is not negotiated, but enforced.
The president seems comfortable with conditions that make an economy uncomfortable — uncertainty and disillusion. But the economy is not the only reason for Nigerians’ declining hope.
A few months ago, a young woman, Chidera, came to work as a nanny in my Lagos home. A week into her job, I found her in tears in her room. She needed to go back to her ancestral home in the southeast, she said, because Fulani herdsmen had just murdered her grandfather on his farm. She showed me a gruesome cellphone photo of his corpse, desecrated by bullets, an old man crumpled on the farm he owned.
Chidera’s grandfather is only one of the hundreds of people who have been murdered by Fulani herdsmen — cattle herders from northern Nigeria who, until recently, were benign figures in the southern imagination, walking across the country with their grazing cattle.
Since Mr. Buhari came to power, villages in the middle-belt and southern regions have been raided, the inhabitants killed, their farmlands sacked. Those attacked believe the Fulani herdsmen want to forcibly take over their lands for cattle grazing.
It would be unfair to blame Mr. Buhari for these killings, which are in part a result of complex interactions between climate change and land use. But leadership is as much about perception as it is about action, and Mr. Buhari has appeared disengaged. It took him months, and much criticism from civil society, to finally issue a statement “condemning” the killings. His aloofness feels, at worst, like a tacit enabling of murder and, at best, an absence of sensitive leadership.
Most important, his behavior suggests he is tone-deaf to the widely held belief among southern Nigerians that he promotes a northern Sunni Muslim agenda. He was no less opaque when the Nigerian Army murdered hundreds of members of a Shiite Muslim group in December, burying them in hastily dug graves. Or when soldiers killed members of the small secessionist pro-Biafran movement who were protesting the arrest of their leader, Nnamdi Kanu, a little-known figure whose continued incarceration has elevated him to a minor martyr.
Nigerians who expected a fair and sweeping cleanup of corruption have been disappointed. Arrests have tended to be selective, targeting mostly those opposed to Mr. Buhari’s government. The anti-corruption agencies are perceived not only as partisan but as brazenly flouting the rule of law: The Department of State Security recently barged into the homes of various judges at midnight, harassing and threatening them and arresting a number of them, because the judges’ lifestyles “suggested” that they were corrupt.
There is an ad hoc air to the government that does not inspire that vital ingredient for a stable economy: confidence. There is, at all levels of government, a relentless blaming of previous administrations and a refusal to acknowledge mistakes. And there are eerie signs of the past’s repeating itself — Mr. Buhari’s tone and demeanor are reminiscent of 1984, and his military-era War Against Indiscipline program is being reintroduced.
There are no easy answers to Nigeria’s malaise, but the government’s intervention could be more salutary — by prioritizing infrastructure, creating a business-friendly environment and communicating to a populace mired in disappointment.
In a country enamored of dark humor, a common greeting among the middle class now is “Happy recession!”

Appeal: Osun state governor, Rauf Aregbesola, appeals to Nigerians to stop eating imported rice


Governor Rauf Aregbesola of Osun state yesterday appealed to Nigerians to stop eating imported rice and go back to eating indigenous ones such as Ofada rice and others. Aregbesola made the call while speaking at an event to mark the 2016 International Day for Eradication of Poverty in the state yesterday.
“Rice was not a staple food in Nigeria before 1980. Ofada rice was the only rice eaten during festivities. We should return to the time when we were eating indigenous rice. We have cassava, plantain, beans and yam. We should return to the time when we were eating our indigenous foods"he said

Tuesday, 20 September 2016

Why Nigeria is in recession


A group of Nigerian professionals has attributed the current economic challenges facing the country to the inability of government at all levels to seek professional advice from experts.
The professionals, who spoke under the aegis of the Association of Professional Bodies of Nigeria, lamented that government had always relied on politicians for advice.
President of the APBN, Mr. Foluso Fasoto, explained that Nigerian would not have experienced recession if professionals had been involved in policy making and the art of governance.
Fasoto, who spoke during the inauguration of Rivers State Chapter of APBN in Port Harcourt on Tuesday, called on the government to partner the body, adding that the association’s advice was capable of leading the nation out of recession.
He said, “Government at all levels should work closely with professionals. In the past, politics took priority over professionalism and that is the reality we are facing.
“But if government at all levels work closely with professional bodies and they adhere strictly to professional advice, we will soon get out the economic problem.
“We are currently, as country, in recession and we have no business being in recession. This is the time the government needs the professionals most to advise it.
“Government should monitor its programmes and activities so that we can tap into all the resources of the nation and bring Nigeria to be among the first countries in the world.”

Friday, 16 September 2016

Nigeria will get out of recession soon – Adeosun


The Minister of Finance, Mrs Kemi Adeousn, has assured Nigerians that the current economic recession the nation was experiencing will not be prolonged.
She gave the assurance on Friday in Abuja while addressing a news conference.
She said that there was a strategic plan by the administration to see that the recession ended soon and also ensure that the economy recovered fully.
She said, “We have a strategic plan that will take us out of the recession we have found ourselves in; we want to make sure the recession is as short as possible because we do not want a prolonged recession.
“From what we are looking at we do not think that it will be a prolonged recession; we think that some of the initiatives that we are working on will now begin to bear fruits.
“We are on course and are confident that the plan we have put together will work and put the economy back on track.
“It is a long term plan that would reposition the economy so that we do not go into this boom and burst circles that are driven by the oil price.
“The economy has to be more resilient than that so that we do not find ourselves back where we are.’’
She said that measures put in place by the FG showed was that the end of the recession had begun and Nigeria would come out stronger.
Listing some of the measures the administration had taken to address the situation, she said that since the budget was released in May, over N420 billion had been released and cash backed for capital projects.
She said that the largest sector that the money was spent on was Power, Works and Housing.
She also said that a lot had been done in the defence sector to rebuild the capability of the army, especially on efforts in the North East.
She said, “Agriculture has received significant funding because of the time sensitivity of agriculture and because of the fact that food prices were rising, we needed to intervene so that we could get food prices down.
“There is activity resuming on roads, power projects and health projects and we have released money to water resources and solid minerals.’’
Adeosun also said that there was a cash plan to release another N350 billion which would go into the various MDAs.
“The focus is going to be similar, however, there would also be funding of about N60 billion for the Special Intervention Programme and that is very important in putting money into people’s pockets.
“The school feeding programme and the N-Power teachers corps we will cash back today as part of the N350 billion additional release which would take our total capital spending to about N700 billion.”
She also said that N50 billion was set monthly as budget support plan for some state governments from the Federation Accounts Allocation Committee to support them with additional money to enable them to pay salaries.
She said that the loan had been on for three months for the interested states because some states which were buoyant decided not to participate.
On recovery of assets, Adeosun said that the committee was in the process of collating with the non-cash assets like farmlands, vehicles and houses and that a fixed asset register would soon be opened to determine their value.
She said that the jewelries were from different locations and were being brought together to determine the market value and that the next line of action would be decided by the committee.
Adeosun explained that the present recruitment by the police and some other government agencies were made possible by the reduction of ghost workers.
She added that the savings that were made from the exercise would enable funding for the new recruitment.
“Sometime in January, personnel cost was N165 billion along with pension cost, but so far so good; we have reduced, through the removal of about 40,000 ghost workers, the personnel cost by around N10 billion per month.
“Now we have saved about N100 billion this year.’’
She said that though the times were tough, there was hope for Nigerians, adding that issues around infrastructure were the biggest problems of Nigeria which resulted in high cost of living.
“The biggest problem we have is not wages but the cost of living which is too high so it is not how much money you have but it is what it costs you to live.
“The problem we have is that many of the things that people are spending money on are the things government should be doing like roads, power and so on.
“So we have to address these things because that is what will really make impact for the average working Nigerian and so when you address the infrastructure you address the cost of living and that is what this government is working on.’’
(NAN)

Thursday, 15 September 2016

Recession: Unity Bank sacks 215 workers



Unity Bank Plc, has sacked not less than 215 of its employees as part of its re-engineering strategy for greater performance, Nation reports.
The workers were allegedly sacked for their inability to cope with the new ideas and strategy of the institution.

Those relieved of their jobs were, however, asked to resign while management has approved severance package in line with the bank’s policy.

Despite the claim that the development was part of Unity Bank “reengineering strategy for greater performance”, the economic situation of the country might have been a factor.

Meanwhile, some of the sacked workers have alleged injustice in the way they were relieved.

They dismissed the “reengineering strategy” reason being sold to the public by Unity Bank, insisting that the downsizing was a deliberate action to cut staff strength to reduce cost.
Diamond and Ecobank banks had earlier in the year fired over 1 200 workers according to News24.

Diamond Bank in a statement, said the sacking of the 200 workers was in line with its strategic plan to drive shareholders’ value. The statement read, “Diamond Bank recently rightsized its workforce. The rightsizing was a core strategic exercise in line with the bank’s growth objective and the will to continue the drive to optimise cost and enhance value for the shareholders at the end of the business year.
Ecobank on its part said that it had converted over 200 outsourced personnel to permanent employees as part of its drive to attract and reward talent, while also repositioning for improved efficiency.

The statement also announced the conversion of 200 out-sourced staff into a permanent positions in line with its commitment “to develop and grow talent by nurturing its people”.

- News 24

Sunday, 11 September 2016

I’m happy Nigeria is broke - DG NOA

The Director General of the National Orientation Agency, Mr. Garba Abari, has expressed delight that Nigerians have been left with no option but to look inwards because of the economic recession.
Abari stated this in an interview with SUNDAY PUNCH, in Abuja, on Friday.
He explained that the fall in oil prices and the disappearance of what he referred to as “free money” will engender a home-grown response to the nation’s economic problems.
According to him, Nigeria’s economic problem was not peculiar to it because other oil producing nations like Venezuela were also taking a hit but that Nigeria under the Buhari-led administration was handling it better.
Abari said, “Happily, the country is broke, if we had lived a life of falsehood always guided by our crass appetite for consumption and lack of productivity because there was free money, now we are being confronted with the reality.
“It is a global economic challenge and every country is being affected one way or another. Venezuela is an oil producing country like Nigeria; perhaps in terms of production quota in OPEC, it may even be producing higher than Nigeria. It is not even as populous as Nigeria is and you have seen what has become of it.
“Oil that used to be the source of money is no longer bringing in the money. We are beginning to show a sign that we are positively responding to the reality.”
He explained that the contribution of agriculture to the GDP was negligible in the last few years but that it had improved considerably under the current administration because of the proactive measures, so far taken.
Commenting on the prevalence of hate speech by Nigerians on social media, the DG said, “We have all been victims of what I can call social media terrorism.
“It is quite worrisome the amount of hate especially the use of foul language. It tells you how much of our values we have lost that we simply cannot bring out issues and debate them and bring out the virtues in them.”
The NOA he said was partnering with sister agencies of government and civil society to reorient Nigerians towards making Nigeria better.

Thursday, 1 September 2016

FG to borrow for 3 years to end economic woes



The federal government has approved a three-year rolling external borrowing plan, Nation reports.

Briefing State House Correspondents after the Federal Executive Council (FEC) meeting held in Abuja on Wednesday, the Minister for Finance, Kemi Adeosun, said the approval would be transmitted to the National Assembly immediately.

She said the loans would come from agencies such as the World Bank, African Development Bank, China Exim Bank, and other development agencies like the Japanese International Cooperation Agency (JICA).
The finance minister said the plan to borrow externally was in line with government’s strategy to focus on concessional debts, low cost loans particularly from multi-lateral agencies.
Other highlights of the meeting according to News24 included the changing of the name of Ministry for Solid Minerals to Ministry of Mines and Steel Development, the approval of a new roadmap for the development of the solid minerals sector, approval of contracts to build a new structure called international house at the University of Ibadan and a library at the University of Lagos.
The National Bureau of Statistics on Wednesday released the much-awaited Gross Domestic Product figures for the second quarter of 2016 with the GDP growth rate sliding further from -0.36 per cent in the first quarter to -2.06 per cent year-on-year.

In the GDP report released by the NBS, the bureau said, “In the second quarter of 2016, the nation’s Gross Domestic Product declined by -2.06 per cent (year-on- year) in real terms.