Business

Bank official warns of early interest rate rise as Kraft Heinz puts up prices

A Bank of England policymaker has warned households to get ready for “significantly earlier” interest rate rises as inflation pressures mount, and Kraft Heinz became the latest company to say that food prices will rise.

Michael Saunders, one of the Bank’s nine rate-setters, said investors were right to bet on faster increases in borrowing costs with consumer price inflation on course to rise above 4%, adding to signs Threadneedle Street might become the first major central bank to raise rates since the coronavirus pandemic struck.

“I’m not in favour of using code words or stating our intentions in advance of the meeting too precisely. The decisions get taken at the proper time,” Saunders said in an interview. “But markets have priced in over the last few months an earlier rise in Bank rate than previously and I think that’s appropriate.”

His comments come as households face mounting energy bills and the prospect of higher food prices. The boss of Kraft Heinz said on Sunday the company, the maker of Heinz tomato ketchup and baked beans, was putting up prices in several countries.

“We are raising prices, where necessary, around the world,” Miguel Patricio told the BBC, adding there were a number of reasons behind the rises.

“Specifically in the UK, with the lack of truck drivers. In [the] US, logistic costs also increased substantially, and there’s a shortage of labour in certain areas of the economy,” he said.

Iceland, the UK frozen food chain, has recently warned that “price rises are inevitable”, while Tesco and the Co-op are among the food retailers to have given similar warnings.

Last month the Bank of England’s monetary policy committee voted unanimously to keep rates at 0.1%, an all-time low, despite annual inflation running at 3.2%, the highest level in more than nine years and above the Bank’s 2% target.

However, Saunders and Dave Ramsden, a deputy governor, voted to cut short the limit on the central bank’s £895bn quantitative easing programme by £35bn.

Saunders said markets had fully priced in a February rate rise by the UK central bank and had half priced in a December increase in borrowing costs.

“I’m not trying to give a commentary on exactly which one, but I think it is appropriate that the markets have moved to pricing a significantly earlier path of tightening than they did previously,” he said.

The comments by Saunders came shortly after the Bank of England governor, Andrew Bailey, said inflation running above the central bank’s 2% target was concerning and had to be managed to prevent it from becoming permanently embedded.

“We are going to have a very delicate and challenging job on our hands, so we have got to, in a sense, prevent the thing becoming permanently embedded because that would obviously be very damaging,” Bailey told the Yorkshire Post newspaper.

Business

Dangote Refinery reduces petrol price to N825 per litre

Dangote Petroleum Refinery has reduced the gantry price of Premium Motor Spirit, PMS, also known as petrol to N825 per litre from N835 per litre as competition continues in the domestic market.

Recall that last month, the 650,000 barrels per day refinery reduced the gantry price of petrol to N835 per litre from N865 per litre.

The latest adjustment is targeted at giving customers more value, as well as consolidating its leadership position in the domestic market.

Business

NIMC hikes NIN service fees, increases date of birth correction to N28,574

Federal Govt Launches NIN Diaspora Enrolment Centre In UAE

The National Identity Management Commission (NIMC) has announced a revised price list for National Identification Number (NIN) issuance and other related services.

On May 1, the NIMC announced a review of the pricing structure for all its services.

In its report on Saturday, the commission said the cost of correcting the date of birth on a NIMC slip has increased to N28,574, reflecting a 74.87 percent rise from the previous fee of N16,340.

According to the new price list, modifying other details such as name or address now costs N2,000 per transaction, up by 31.41 percent from the earlier fee of N1,522.

While initial NIN enrolment and issuance of slips remain free, NIMC said the reissuance of lost or damaged NIN slips now costs N600, an increase from N500.

Premium enrollment services offered at licensed lounges, visa centres, and pre-booked VIP services now cost N20,000, and VIP reissuance of NIN slips is priced at N3,500.

Additionally, the commission said the fee for retrieving a NIN via USSD services has risen to N50 from N20.

For Nigerians in the diaspora, NIMC said adult enrollment at regular service points in African countries now costs $50, enrollment for children is $30, and reissuance of NIN slips abroad is priced at $6.

According to NIMC, in African countries, the commission said correcting a date of birth now costs $55, and modifying other fields costs $10.

In non-African countries, the commission said name corrections are priced at $60, while other changes cost $20.

In its executive summary of the revised price list, NIMC explained that the adjustments considered the current inflation rate of 32.70 percent, saying most services were increased by at least 20 percent, with certain exceptions based on the nature of the service.

Business

NCAA sanctions Kenya Airways over passenger complaints

The Nigeria Civil Aviation Authority (NCAA) has sanctioned Kenya Airways for several consumer-related violations involving three passengers, including one Gloria Omisore.

This is contained in a statement on Friday by Michael Achimugu, Director of Public Affairs and Consumer Protection.

Achimugu stated the NCAA issued a sanction letter on Wednesday to Kenya Airways regarding the passengers’ complaints

“The infractions include failure to provide care, lack of transparency in carriage terms, poor communication with the Authority, and mishandling refunds and baggage.

“In accordance with the NCAA Regulations 2023, Kenya Airways must pay fines and compensate each affected passenger with 1,000 special drawing rights.

“The airline has seven days to comply. Failure to do so will result in more severe penalties,” Achimugu said