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Subsidy: FG Engaging Local Refiners To Crash Petrol Price — Buhari Aide

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The Federal Government has assured consumers of Premium Motor Spirit, PMS, otherwise known as petrol that the price of the product would soon crash relatively below N100 per litre, if its ongoing effort to regularize the activities of artisanal refiners materializes.
The government argued that integrating this class of actors into the mainstream petroleum production would enable Nigerians to procure the product at the price cheaper and affordable.
Speaking in Abuja during a meeting with the Domestic Refinery Owners Association of Nigeria, DROAN, the Special Senior Special Assistant to President Muhammadu Buhari on Niger Delta Affairs, Senator Ita Enang, regretted that what Nigerians are paying for was the real cost of petrol but for services.
According to Enang, “So what Nigerians are actually paying for is not the real cost of the product, it is the services, and by the time we engage with you, and we are able to have the domestic Nigerian Refinery, all those other charges will be eliminated and like you have been telling me, the price of refined petroleum products will come under N100 per litre.”
Senator Enang said as soon as local refineries begin operation, the price of petroleum products would be forced to crash.
He explained that the reason why petroleum products prices are high is that the process of extracting, exporting, refining and bringing it back to Nigeria is very cumbersome and expensive.
He said, “As we succeed with you, which I believe that we will succeed, we will eliminate and be able to crash the price of refined petroleum product because what makes refined petroleum products costly is one, the cost of freight, sending it abroad to be refined, you pay Port Authority, you pay NIMASA, you pay for the chatter of the vessels that take it there.
“You pay the duties in the in Nigeria, you pay the duties in the country that it is landing, you pay the duty of those countries, you pay the labour of those countries where they refined and then you bring them back, you pay the freight, you pay the vessel if it is not landing early and it is hanging somewhere in the sea, and all that is transferred to the price of the refined products.
“And finally you’ll now see that NNPC will put their price, Petroleum Product Price Regulatory Agency, PPPRA, Department of Petroleum Product, DPR, will put their price.
The former Chairman, Senate Committee on Ethic, Rule Privileges noted further said that subsidy payment wasn’t benefiting ordinary Nigeria, but just a few corrupt individuals, hence the need to remove it became necessary.
He said, “As we were locked down, the price of crude oil collapsed, I think it led consequently to the lowering of the price of refined product and I think we relaxed and we thought we have ended it now suddenly the price went up.
“We said look, we no more can sustain subsidy in this country because subsidy only benefits a corrupt set of people and it doesn’t really touch the ordinary man.
“And having withdrawn subsidy it becomes that refiners are petroleum product must sell it at a market-driven price, and the price went up, therefore, it becomes necessary for us to accelerate our engagement with you as our Nigerian resources to solve Nigeria’s economic problem.”
On the local refiners, he said, for the purpose of integrating them and their efforts into the planning for the economy of Nigeria, the government had also engaged with the team that constructed the locally fabricated refinery in an Ahmadu Bello University Zaria, and they attended a briefing with the Minister of Science and Technology.
“We have also engaged with the team in federal University of petroleum, Efurum, they have a department that is fabricating locally, Nigeria Refinery, which will produce and refine petrol diesel, kerosene and make other byproducts available for other institutions.
“So since after the last meeting, these are the things that we’ve done to take the ministry forward, so it became necessary to have to invite you one, to brief you on what we’ve done, that although we were on National lockdown, we were not locked up in terms of thinking and planning for the economy”, he added.

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Control Risks Lists Top 5 Risks For Business In 2021

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The COVID-19 pandemic, emerging digital threats, climate change and the US China relationship are among the Top 5 Risks for business in 2021, published today by Control Risks, the specialist global risk consultancy.

Underpinning these risks, the danger of missing the rebound in a year of multi-speed recovery is a top risk for business in the coming year.

“There’s no doubt that businesses will continue to face considerable disruption from the COVID-19 pandemic, but we believe that the opportunities are real and exciting for many companies in 2021,” comments Control Risks CEO, Nick Allan.

All top 5 global risks are present in Africa but play out in unique ways. In some areas the continent presents a positive break from the more negative global trends, such as in the regional cooperation shown by the continent in its response COVID-19 and the planned launch of the African Continental Free Trade Area (ACFTA).

Overall, however, 2021 will be a tough year for a continent that will struggle to recover from COVID-19 as fast as much of the rest of the world. Despite many significant opportunities for investors, the markets they are investing in will be ones characterised by significant operational and political uncertainty.

The investors that will achieve success in 2021 are those that understand that Africa’s post-pandemic landscape will be tangibly changed from what came before, presenting different challenges and new opportunities.

The global Top 5 Risks for Business in 2021 

The Top 5 risks are released as part of Control Risks’ annual RiskMap report, a global risk forecast for business leaders and policy makers across the world, published today.

1. A world with long COVID

2021 will be a year of uneven recovery as vaccine rollouts create a world ofhaves and have-nots, with pockets of forever COVID at the bottom of the pecking order. Much of Africa, unfortunately, will be in the have-notcategory and companies will face prolonged operational uncertainty as localised restrictions are sporadically imposed in response to virus spikes. Africa’s economic recovery will also be more gradual, as governments with limited fiscal headroom cannot engage in sustained stimulus spending and must instead rely on under-developed private sectors to drive their recoveries.

2. US-China: stabilisation without normalisation

While 2021 should see superficial stabilisation in the US-China relationship, the straining of the international rules-based system seen over the past few years will not go into full reverse. Competition rather than cooperation will remain the norm in international relations. In this regard at least Africa represents a welcome break from global trends, as 1 January will see the launch of ACFTA, and although full implementation of a continental free trade area will be slow the fact that Africa is moving in that direction when much of the world is not should be attractive to potential investors.

3. Go green or go bust

An inflection point is coming for the relationship between businesses and climate change in 2021. No organisation can now afford not to take a stance. The environment is a critical aspect in a broader area of the ESG agenda. Although no African country bar South Africa has made a net zero pledge to date – without special funding, governments do not view it as a priority – the continent nonetheless has huge renewable energy potential. Renewable energy projects connected to microgrids make sense in a continent of small population centres spread over huge areas, and the recent liberalisation of energy markets in many countries has opened up multiple opportunities for private-sector investors. Without government backing, however, investor may ignore these opportunities for the subsidies and support on offer elsewhere.

4. Digital acceleration hits emerging threats

The remarkable increase in connectivity across Africa – in mobile phone penetration, internet penetration, social media use and data traffic flows – has opened up a vast array of new opportunities. This is evidenced by the rapid growth in the African tech sector over the past few years. But this connectivity also brings risks. Cyber crime has boomed across Africa, from simple scams to sophisticated attacks on critical infrastructure. Criminal and state actors have also engaged in influence operations, spreading misinformation and inflammatory content that poses reputational risks to companies as well as political players. Companies in Africa, just like the rest of the world, will have to balance the drive for technological innovation with security, integrity and resilience challenges.

5. Missing the Rebound

The coming year will see strong GDP growth in multiple markets, the roll-out of vaccines and a world hungry to start living again. While progress will be faltering, an uplift is coming – do not miss the rebound. If 2020 was about survival for many companies, 2021 is the time to focus on opportunity. Under the duress of COVID-19 many companies have flexed, not broken. Through innovation, rapid technology adoption and streamlining, they have emerged stronger, while weaker competitors have fallen. Those companies that turn the efficiency gains of 2020 into productivity gains, continue to accurately assess trends and show flexibility in adapting their operations will benefit from the coming surge in demand.

“Governance, policy consistency and rule of law are critical for investors in Africa and deep-rooted challenges remain across the continent in this realm, however we do see positive change across the region. Recovery will be an opportunity for governments to address structural constraints and promote new approaches & technologies – the region remains front and centre for many of our clients. For Control Risks, Africa sits at the heart of our past, present, and future – we continue to invest and see growth across the region” explains Tom Griffin, Partner – Africa and Middle East, Control Risks.

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Allianz Begins Olympic, Paralympic Partnership 

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Allianz officially began its eight-year worldwide partnership with the Olympic and Paralympic Movements on January 1, the company’s management has said.
“Allianz is proud to be the „Worldwide Insurance Partner” of the Olympic & Paralympic Movements,” said Oliver Bäte, Chief Executive Officer of Allianz SE. “As a supporter of the sports ecosystem and through shared core values of excellence, friendship, inclusion and respect, Allianz and our 148,000employees and 100,000 agents are excited to care and deliver for athletes, their families and their ambitions.”

Since announcing the partnership in September 2018, the insurer has engaged fans, athletes, teams and employees through health across four pilot markets – Australia, China, France and Spain. Allianz presented the Australian Olympic Committee’s Wellbeing Week to showcase ways to improve mental health. Allianz also worked with the Organising Committee Olympic Games Paris 2024 to encourage people to walk and run for “Club Paris 2024”, an initiative to move and be part of the Games.

Allianz will expand local initiatives to connect with athletes and fans across the world. To name a few, the global insurer will offer consumers and employees the chance to take part in the Olympic Torch Relay at Beijing 2022 and will engage youth with the spirit & values of the Movements at its Allianz Sports Camps through trying sports, building friendships and learning from athletes. Furthermore, it will support the Movements with tailored insurance solutions and services.

“Having announced this new agreement in 2018, our teams have already been working together in key pilot markets to support athletes and the Olympic Movement,” said IOC President Thomas Bach. “As we start this new Olympic year, we are excited to begin in earnest our global collaboration with Allianz.” 

“Allianz brings global visibility to the athletes and values of the Paralympic Movement and we look forward to our next phase working together,” added IPC President Andrew Parsons. 

The partnership runs from 2021-2028.

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Adamawa Begins Payment Of Outstanding Gratuity To Retirees

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Medugu who made the disclosure to journalists in Yola, said that the State and Local Government Councils jointly contribute N14 million monthly for the payments.

He explained that the amount being contributed monthly for settlement of the retirees’ gratuity would also help to cushion the hardship occasioned by COVID-19.”

So far, Government has settled the gratuity of about 6,300 local government retirees.

“And on monthly basis, State and Local Government’s Councils are contributing about N14 million for the payment of the gratuity.”

“According to our records, 989 local government Pensioners are not receiving their monthly pension, this is as a result of recent verification exercise,” he said.

Medugu urged the affected pensioners to be patient as the board was working to ensure that those mistakenly omitted  in the payment were integrated into the system.

Similarly, Chairman of Adamama State Pension Board, Mr Thomas Mahdi, told the News Agency of Nigeria (NAN) that Gov. Ahmadu Fintiri, had approved N1.5 billion for payment of gratuities.

Mahdi said that the payment of the arrears of gratuity to State Government retirees affected those who retired between 2009 and 2012.

“The payments are categorised based on Senior Ma

 

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