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Russia-Ukraine: Manufacturing, Agric to Suffer Shocks in Q2 – LCCI

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The Lagos Chamber of Commerce and Industry (LCCI) says the persisting Russia-Ukraine war will trigger shocks in the manufacturing and agricultural sectors in the second quarter of 2022.

Dr Michael Olawale-Cole, President, LCCI, said this at the LCCI Quarterly press conference on the state of the Nigerian economy on Tuesday in Lagos.

Olawale-Cole said the ongoing war triggered a positive oil price shock with spillover effects on operating costs, raw materials, and inflation in countries not directly engaged in the war.

He noted that Nigeria was not an exception as prices of goods and services were moving northwards with the potential implication of shrinking production of goods and services.

L-R: Vice President, Lagos Chamber of Commerce and Industry (LCCI), Engr. Leye Kupoluyi; Director General, LCCI, Dr. Chinyere Almona; President, LCCI, Dr. Michael Olawale-Cole; Deputy Treasurer, LCCI, Mrs. Tola Gbogboade and Vice President, LCCI, Prince Abimbola Olashore during LCCI 2nd Quarter Press Conference on the state of the Nation at Commerce House on Tuesday in Lagos
 

The LCCI president stressed that should the conditions persist, production volumes would be impacted by the raw materials supply chain disruptions, the rising cost of diesel, and other internal security crises.

“Job losses are also very likely due to constrained production and disrupted supply chains and all of these will likely depress growth potential in Q2 2022.

“Going into the second quarter of 2022, the manufacturing sector will likely suffer some shocks from the rising cost of diesel, logistics, foreign exchange illiquidity, domestic inflationary pressure, weakening purchasing power, poor public infrastructure and port-related challenges.

“These may continue to present as headwinds to the sector’s performance.

“Additionally, with the war in Ukraine aggravating disruptions to supply chains of raw materials like wheat, barley, soybeans, sunflower, and corn, the rising cost of production may not abate soon,” he said.

Looking forward to the second quarter, he said Nigerians should expect headline inflation to remain elevated.

This, he said, would be due to supply chain disruptions caused by the Russia-Ukraine war, food supply shocks, FX policies, higher energy costs, FX illiquidity, heightened insecurity in major food-producing states, which would continue to mount pressure consumer prices.

“We believe a broad-based harmonisation of fiscal and monetary policies toward addressing the identified structural constraints will significantly help moderate inflationary pressure in the short term,” he said.

Olawale-Cole urged government to adopt the most sustainable solution of boosting local production of food staples to levels that met local demands.

In addition, the industrialist tasked government to resolve the lingering fuel supply crises by increasing importation to meet growing demand, which was putting pressure on diesel and fuel prices.

“It has also become imperative now that Nigeria needs to have reserves for these critical commodities to meet sudden crashes in supply.

“We have always advocated the removal of fuel subsidies and that such rescued funds be diverted to subsidise the production of goods and services in the face of the rising cost of manufacturing.

“The Central Bank of Nigeria (CBN) should embark on easing the economy while keeping a tab on controlling rising prices.

“Credit to the private sector should increase and be targeted to support growth sectors and export-promoting sectors.

“Deliberate efforts toward making the business environment more conducive for MSMEs and large corporates at the national, subnational, and local government levels are also very imperative,” he said.

On the energy sector, the LCCI president noted that the national grid was unable to continue to supply sufficient power to meet the country’s electricity demand.

Olawale-Cole recommended that the government should invest more in technology to fight pipeline vandalism and fund critical infrastructure and special purpose intervention in the power sector,” he said. (NAN)

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COAS Charges 3,439 New Army Recruits on Loyalty, Discipline

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By David Torough, Abuja

The Chief of Army Staff (COAS), Lieutenant General Waidi Shaibu (NAM), has charged 3,439 newly trained recruits of the Nigerian Army to uphold the highest standards of loyalty, discipline and professionalism as they formally joined the service.

The recruits, drawn from the 89 Regular Intake of the Nigerian Army, passed out on Saturday after completing six months of intensive military training at Depot Nigerian Army, Zaria.

Their formal induction was marked by a colourful Passing Out Parade, which showcased the skills, discipline and esprit de corps instilled during the training period.

Addressing the recruits as the Special Guest of Honour and Reviewing Officer, Lieutenant General Shaibu described the parade as a testament to their dedication, perseverance and commitment to duty.

He said their successful completion of training reflected hard work, discipline and readiness to serve the nation.

The COAS said the injection of additional manpower would further strengthen the Nigerian Army’s operational capacity at a time it continues to confront evolving domestic and transnational security threats. He noted that the new soldiers would play a critical role in sustaining the Army’s combat readiness across the country.

He reminded the recruits that they had been entrusted with the sacred responsibility of safeguarding Nigeria’s territorial integrity, urging them to serve with honour, courage and professionalism. According to him, their induction underscored the Army’s resolve to ensure the safety and security of all Nigerians.

Lieutenant General Shaibu commended Depot Nigerian Army for its historic role in producing professional soldiers since its establishment in 1924, describing the institution as the backbone of the Army’s training system. He assured that the depot would continue to receive strong support in logistics, training infrastructure and personnel welfare to maintain its high standards.

The COAS further urged the new soldiers to uphold discipline, integrity and respect for human rights in all their operations, stressing that these values form the foundation of professional soldiering. He reminded them of the Oath of Allegiance they took, warning against any conduct that could tarnish the image of the Nigerian Army or the nation.

He expressed gratitude to President Bola Ahmed Tinubu, the Emir of Zazzau, Mallam Ahmad Nuhu Bamalli, Kaduna State Governor, Senator Uba Sani, and other security agencies for their support to the Nigerian Army. He also praised the Commandant, instructors and staff of Depot Nigerian Army for their dedication in training the recruits.

Lieutenant General Shaibu congratulated the newly inducted soldiers, their parents and guardians, and wished them safe, exemplary and fulfilling careers as they are deployed to various Army formations across the country.

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FRSC Deploys New Sector Commander to Benue

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The Federal Road Safety Corps (FRSC) on Thursday, announced the deployment of Corps Commander (CC) Kehinde Dahunsi as new commander for the Benue Sector Command.

The announcement is contained in a statement by the Corps’ Public Relations Officer (PRO) SRC Ngozi Ahula, in Makurdi.

According to the statement, Dahunsi takes over from CC Steve Ayodele, who recently retired in line with the Corps’ administrative posting procedures.

She said that the formal handover ceremony took place on Dec. 10, at the sector’s command headquarters in Makurdi.

According to her, shortly after assuming duty, Dahunsi expressed gratitude to the Corps Marshal, for what he described as a significant vote of confidence.

She said that the new commander has pledged to prioritise enhanced operational efficiency, strengthen stakeholder collaboration, and intensify public enlightenment.

He reaffirmed the corps’ commitment to continuous sensitisation on safe road use, strict enforcement of traffic regulations, and sustained efforts to curb road traffic crashes within the state.

According to the PRO, the outgoing sector commander also thanked officers, Special Marshals, stakeholders, and the public for their cooperation throughout his tenure.

She said that Ayodele urged them to extend the same level of support given to him, to his successor to ensure continuity and improved service delivery.

She called on transport unions, sister security agencies, the media, and the general public to work closely with the new commander to promote safer road practices in the state.

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NNPCL Sets 2.80mbpd Crude  Output Target by 2026

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By Tony Obiechina, Abuja

The Nigeria National Petroleum Corporation Limited (NNPCL) has set its targeted crude oil production for 2026 at over two million barrels per day.

Head Field Operations, Eastern Corridor, Project Monitoring Office (PMO NNPCL), Akponime Omojevwhe, made the disclosure at the monthly stakeholders meeting with host communities of the Trans Niger Pipeline (TNP) organised by Pipeline Infrastructure Nigeria Limited (PINL) in Port Harcourt.

He also said the budget for 2026 is targeted at 2.80mbpd.

Omojevwe, who noted that currently the TNP is producing optimally, credited it to communities and stakeholders’ collaboration with PINL.

He said: “I want to sincerely appreciate all our stakeholders on this corridor because right now we can see that the TNP is green and what that means is that the products are flowing uninterrupted.

“Secondly, I want to say that our budget for 2026 is targeted at 2.80mbpd and the budget begins from 1.84mbpd while our targeted projection is 2.06mbpd. So we want to say that even as  we draw closer to next year 2026, as we have come together to ensure that the projection is going up, we want to crave your indulgence, please don’t relent”.

Highlighting the importance of stakeholders and communities in securing the pipelines, the NNPCL official noted that no private security company can achieve success without their collaboration.

“The communities are a vital part of this job. So anytime we find ourselves, we must always appreciate them because the community leaders such as the chiefs, CDCs, youth presidents, women leaders, if they don’t carry out our messages to the community people, there will be nothing like green as far as the pipeline is concerned. So our message is clear, we appreciate you and always assist PINL efforts just as you have been doing,” he pleaded.

In his remark, Edi Julius, who represented the Minister of State (Oil), Heineken Lokpobiri at the meeting appreciated the collaboration between the communities and PINL, stressing its impact on oil production output in the country.

“Sincerely the minister of petroleum resources appreciates what the communities are doing because without the peace from your domain, I believe production will not be up.

“Today, all of us can testify to the production level and it’s so ambitious for 2026 that we are going to hit the target of 2 million plus barrels per day production. Those things which will bring more money to the government and also, more money to PINL to be able to reach out to you,” he stated.

In his address, Dr. Akpos Mezeh, General Manager, Community and Stakeholders Relations, PINL, said the meeting gives the company the opportunity to review its progress in the fight against pipeline vandalism and crude oil theft, and also celebrate, fellowship, and appreciate critical stakeholders, especially leaders of host communities for their support and commitment, which he said have sustained the economic stability of the country.

He gave a highlight of its achievements in the outgoing year to include deepening of security operations to include all oil and gas infrastructures in proximity to the TNP, expanded community and stakeholders’ inclusion, human empowerment with focus on women and students and strengthened grassroots communication with introduction the Town Crier Initiative (TCI).

He also listed sustained consistent stakeholder engagements, zero illegal bunkering and building of greater trust between PINL and host communities as other successes.

Dr. Mezeh called for increased collaboration with the host communities even as they look ahead to 2026.

“Let us continue to protect national assets, empower our people, and strengthen the prosperity of our region and nation. As we step into 2026, may our collaboration deepen, our unity strengthened, and our shared commitment to peace and progress remain unshakable,” he appealed.

The PINL official also used the medium to announce Christmas palliatives for the 215 TNP host communities.

Meanwhile, one of the host community leaders, His Majesty, King Philip Osaro Obele, called on the Federal Government to carry out more developments in the communities now that they are benefitting by way of increased revenue output from oil production.

He also commended PINL for regularly meeting with them to update the communities on its operations.

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