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Buhari Constitutes Committee to Assess COVID-19 Effect on Economy

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By Mathew Dadiya, Abuja

In a prompt effort to curtail the impact of the COVID-19 otherwise known as Coronavirus on the Nigerian economy with the plunge in the global oil prices from $53 last week to $35, President Muhammadu Buhari has constituted an economic committee to review the oil benchmark in the 2020 budget.

The committee which is chaired by the Minister of Finance, Budget and National Planning, Mrs Ahmed had the Minister of State, Petroleum Resources, Timipre Sylva, Minister of State, Budget and National Planning, Prince Clement Agba, Governor of the Central Bank of Nigeria (CBN), Godwin Emefiele and the Group Managing Director of Nigeria National Petroleum Corporation (NNPC), Mela Kyari as members.

Speaking with State House correspondents on Monday, after meeting with President Buhari at the President Villa, Abuja, the Minister of Finance, Budget and National Planning disclosed that the committee would review the $57 crude oil price benchmark in the budget and might reduce the 2020 budget. 

She said: “Mr. President has formed us into a committee with the minister of State, Petroleum Resources, the Central Bank governor, GMD NNPC and myself as members.

“Our mandate is to make a very quick  assessment of the impact of this coronavirus on the economy especially as it effects the crude oil price.

“We will be writing a report and brief Mr. President tomorrow (Tuesday) or Wednesday morning. After that we will also have more substantial information for the press.

“It is very clear that we will have to revisit crude oil benchmark price that we have of $57 per barrel. We have to revisit it and lower the price. Where it will be lowered is the subject of this committee. What the impact will be on that is that there will be reduce revenue to the budget at it will cut the size of the budget. The quantum of the cut is what we are supposed to assess as a committee.”

Asked if Nigeria intends to dialogue with Russia and other OPEC+ members to cutdown oil output, the Minister of State Petroleum, Timipre Sylva, said, “we as a member of OPEC are not in a position to take that engagement on our own unilaterally. There was a disagreement between OPEC and OPEC+, it’s not just Russia, but the biggest producers within OPEC and OPEC+ which are Saudi Arabia and Russia.

“We believe that in the coming days when all of us would have begun to see effect of the reduction of prices, OPEC and OPEC+ might need to meet again and reconsider our positions.

Meanwhile, Sylva said that they expected also that a lot of discussions were going on at the level of Saudi Arabia and Russia, but as Nigeria, “we are not in a position to begin to engage members on this matter.”

Oil prices suffered their biggest fall since the day in 1991 when American forces launched air strikes on Iraqi troops following their invasion of Kuwait.

Monday’s crash spooked markets crash that were already freaking out about the impact of the coronavirus pandemic on the global economy and demand for oil. Brent crude futures, the global oil benchmark, were down 22%, last trading at $35.45 per barrel. US oil is trading at $33.15 per barrel, a decline of nearly 20%

Here are five things you need to know:

Why are oil prices crashing?

Saudi Arabia, the world’s top exporter, launched a price war over the weekend. The move followed the imposition of an alliance between the OPEC cartel, led by Saudi Arabia, and Russia.

The kingdom and Russia came together to form the so-called OPEC+ alliance in 2016 after oil prices plunged to $30 a barrel. Since then, the two leading exporters have orchestrated supply cuts of 2.1 million barrels per day. Saudi Arabia wanted to increase that number to 3.6 million barrels through 2020 to take account of weaker consumption.

But Russian President Vladimir Putin, worried about ceding too much ground to American oil producers, refused to go along with the plan and his energy minister, Alexander Novak on Friday signaled a fierce battle to come for market share when he said countries could produce as much as they please from April 1.

Why did Saudi launch a price war?

Simmering differences over how best to manage global oil markets spilled into the open at a meeting between OPEC and Russia in Vienna on Friday. 

CNN Business quoted sources as saying that after Russia said it was ditching the alliance, Saudi Arabia warned it would live to regret the decision.

Moscow had become tired of cutting production to stabilize prices and felt that the policy of supply restraint gave more room for US shale companies to grow. Mikhail Leontiev, a spokesperson for Russian state oil company Rosneft, described the OPEC+ deal as “masochism.”

“By yielding our own markets, we remove cheap Arab and Russian oil to clear a place for expensive US shale oil and ensure the effectiveness of its production,” he told Russian state media on Sunday.

America has become the number one oil producer in the world and is expected to pump about 13 million barrels a day in the first quarter of this year.

Over the weekend, Saudi Arabia decided to fight for greater market share by slashing the prices its preferred customers pay by between $4-$7 a barrel. The kingdom is also reportedly planning to lift production to over 10 million barrels a day.

What does coronavirus have to do with all of this?

The coronavirus has undermined energy demand worldwide, but especially in China, which is now the number one importer of crude oil, guzzling roughly 10 million barrels a day.

Economy

FG To Finalize N1.5trn Road Concession Project- Edun

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The Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun, says the Federal Government will soon finalise N1.5 trillion road concession project.

Edun made the statement during a meeting with some private sector investors in Abuja on Wednesday.

He said that the government was on the verge of finalising the landmark N1.

5 trillion road concession project, launched in 2021 under the Highway Development and Management Initiative (HDMI).

The minister said that the initiative aimed to involve private sector partners in the reconstruction and management of nine major highways across the country, spanning approximately 900 kilometers.

He said that the partners had almost completed all arrangements for the highways, which they would finance, rebuild, and maintain under 25-years concession agreements.

Edun said that the concessionaires were expected to recoup their investments through tolling fees.

“We met the concessionaires who have virtually concluded all the agreement arrangements for nine roads, nine major highways, which they are contracting to refinance the rebuilding of and to recover their funds from tolling fees under 25-year or so agreements.

“And we met them to iron out the remaining administrative obstacles for the kicking off construction of these roads,” he said.

Edun said that the substantial private sector investment would bridge budgetary gaps.

He added that it would also allow investors to undertake revenue-generating projects, leveraging their expertise and resources for long-term implementation and maintenance.

“Thereafter, it will be a question of signing the addendums and moving to the site.

“As you know, already the 125-kilometer Benin–Asaba Highway concession agreement has been signed. The addendum has been signed.

“All arrangements have been finalised, in fact, the ministry of works have handed over the road to the concessionaires.

“They have already started the preliminary arrangements for reconstruction of that road in place of a 10 lane highway.

“It is an investment, it’s a project and an initiative that will reduce the travel time between Benin and Asaba right up to the Niger Bridge,” the minister said.

Edun said that the Benin–Asaba Highway project, which has already commenced, is expected to reduce travel time between Benin and Asaba from four hours to one hour, significantly enhancing productivity and efficiency in the region.

He described the HDMI, launched in 2021, as a strategic programme by the federal government aimed at attracting private sector investment to improve Nigeria’s federal road network.

Edun said that the initiative seeks to address the challenges of inadequate funding and maintenance by leveraging Public-Private Partnerships (PPP) to develop and manage road infrastructure.

Under the HDMI, 12 highways were initially selected for concession, covering a total of 1,963 kilometers.

These roads include Benin–Asaba, Abuja–Lokoja, Kano–Katsina, Onitsha–Owerri–Aba, Shagamu–Benin, Abuja–Keffi–Akwanga, Kano–Shuari.

Others are Potiskum–Damaturu, Lokoja–Benin, Enugu–Port Harcourt, Ilorin–Jebba, Lagos–Ota–Abeokuta, and Lagos–Badagry–Seme roads.

The minister said that the initiative was projected to generate over 50,000 direct and 200,000 indirect jobs, contributing significantly to the country’s economic growth and development.

The Minister of Works, Engineer David Umahi who joined the meeting virtually reassured the private sector partners on the HDMI of the federal government commitment.

He said that everything possible would be done to resolve the contending issues, adding he will soon be back to address all pending issues.

One of the concessionaires, Mr Kola Karim, representing Shoreline, emphasised the need for right and enforceable documents stipulating the takeoff and handover dates, which would attract investors to invest their funds.

Other private sector partners also requested for the addendum to the original agreement to be signed that would enable toll sections of the completed highways while work was in progress on other sections.

They noted that each concessionaire has unique challenges that should be dealt with accordingly.

Also in the meeting were Minister of Budget and Economic Planning, Abubakar Bagudu, and the Director General Infrastructure Concession and Regulatory Commission (ICRC), Dr Jobson Ewalefoh

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Business Analysis

Nigeria Customs Generates over N1.75trn Revenue in 2025

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By Joel Oladele, Abuja

The Nigeria Customs Service (NSC) has generated an impressive N1,751,502,252,298.05 in revenue during the first quarter of 2025.

The Comptroller-General (CG) of the Service, Bashir Adeniyi, disclosed this yesterday, during a press briefing in Abuja.

According to Adeniyi, the achievement not only surpasses the quarterly target but also marks a substantial increase compared to the same period last year, reflecting the effectiveness of recent reforms and the dedication of customs officers across the nation.

“This first quarter of 2025 has seen our officers working tirelessly at borders and ports across the nation.

I’m proud to report we’ve made real progress on multiple fronts—from increasing revenue collections to intercepting dangerous shipments,” Adeniyi stated.

He attributed this success to the reforms initiated under President Bola Tinubu’s administration and the guidance of the Honourable Minister of Finance and Coordinating Minister of the Economy, Olawale Edun.

The CG noted that the revenue collection for Q1 2025 exceeded the quarterly benchmark of N1,645,000,000,000.00 by N106.5 billion, achieving 106.47% of the target. This performance represents a remarkable 29.96% increase compared to the N1,347,705,251,658.31 collected in Q1 2024.

Adeniyi highlighted the month-by-month growth, noting that January’s collection of N647,880,245,243.67 surpassed its target by 18.12%, while February and March also showed positive trends.

 “I’m pleased to report the Service’s revenue collection for Q1 2025 totaled N1,751,502,252,298.05.

“Against our annual target of N6,580,000,000,000.00, the first quarter’s proportional benchmark stood at N1,645,000,000,000.00. I’m proud to announce we’ve exceeded this target by N106.5 billion, achieving 106.47% of our quarterly projection. This outstanding performance represents a substantial 29.96% increase  compared  to  the  same  period  in  2024,  where  we  collected N1,347,705,251,658.31.

“Our month-by-month analysis reveals even more encouraging details of this growth trajectory,” Adeniyi said.

In addition to revenue collection, Adeniyi said the NCS maintained robust anti-smuggling operations, recording 298 seizures with a total Duty Paid Value (DPV) of ₦7,698,557,347.67.

He stated that rice was the most seized commodity, with 135,474 bags intercepted, followed by petroleum products and narcotics.

“From rice to wildlife, these seizures show our targeted approach,” Adeniyi remarked, noting the NCS’s commitment to combating smuggling and protecting national revenue.

Adeniyi also highlighted key initiatives, including the expansion of the B’Odogwu customs clearance platform and the launch of the Authorized Economic Operators Programme, which aims to streamline processes for compliant businesses. The NCS’s Corporate Social Responsibility Programme, “Customs Cares,” was also launched, focusing on education, health, and environmental sustainability.

Despite these achievements, the CG noted that the NCS faced challenges, including exchange rate volatility and non-compliance issues. Adeniyi acknowledged the need for ongoing adaptation and collaboration with stakeholders to address these challenges effectively.

Looking ahead, the NCS aims to continue its modernization efforts and enhance service delivery, ensuring that it remains a critical institution in Nigeria’s economic and security landscape.

“Results speak louder than plans; faster clearances through B’Odogwu, trusted traders in the AEO program, and measurable food price relief from our exemptions. We’ll keep scaling what works,” he concluded.

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Economy

Aviation Ministry Disputes Reports on Enugu Airport Concession

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The Ministry of Aviation and Aerospace Development on Monday, in Abuja disputed online reports claiming concession of Enugu international airport had been agreed upon.

This is contained in a statement signed by Mr Tunde Moshood, the Special Adviser on Media and Communications to the Minister of Aviation and Aerospace Development.

According to Moshood, the online reports are utterly baseless and untrue.

“Our attention has been drawn to certain online reports/stories suggesting that a certain lengthy period of concession has been agreed upon regarding the Enugu International Airport.

“It is true that Government is considering proposals for concession of five major airports, this is a proactive measure to ensure these vital facilities meet and maintain international standards, given increasing financial demands of their operations.

“Many of our airports are presently running at a loss, so they have to be subsidised each month by the Federal Government. It is noteworthy that this initiative to concession started from previous administrations. “

He, however, said that at this stage, prospective concessionaires have indeed submitted various proposals, including different durations for the concession.

He further said that the Ministry of Aviation and Aerospace Development had not established any fixed duration.

According to him, all submitted proposals are currently undergoing thorough evaluation that will eventually be reviewed by the Infrastructural Concession Regulatory Commission (ICRC) before it is presented to the Minister for conveyance to FEC for approval.

“We can confirm that this review process has not been concluded.

“However, for the sake of transparency, Festus Keyamo, Minister of Aviation and Aerospace Development, directed, some months ago that the Aviation Labour Unions be included as part of the negotiating teams.

“Therefore, we must state unequivocally that the information suggesting a predetermined concession duration is false, unfounded, and intended to cause unwarranted disaffection and mistrust in this process by those with entrenched interests.

“Please be assured that the Ministry of Aviation and Aerospace Development is committed to a transparent process that adheres strictly to due process, “ he said.

Moshood said thatwith the minister`s training and track record, he would not allow anything untoward to happen under his watch.

“ He has so far run the ministry in a transparent manner and will not fall into the same mistake of the past.

“We will ensure that all decisions are made in the best interest of the nation and the aviation sector. (NAN)

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