Business

Boris Johnson says shortages are result of ‘giant waking up’ of economy

Boris Johnson has insisted there is no crisis in supply chains but admitted just 127 visas for tanker drivers had been granted.

Asked by BBC Radio 4’s Today programme if he believed there was a crisis in the economy, the prime minister said “no” and said difficulties were linked to the revival of the economy, calling it “a giant waking up”.

Johnson said the government had asked the road haulage industry to provide the names of foreign drivers who would want to come to the UK, and only 127 had been produced so far.

“What that shows is the global shortage,” he said.

The prime minister said a difficult winter of the petrol crisis, shortages on supermarket shelves and soaring energy bills were symptoms of the economic path the country was on that would tackle a long-term lack of productivity, low wages and under-investment in energy and infrastructure.

“This government is doing the difficult, long-term things. We got Brexit done, which was a very difficult thing to do, and we are now going to address the big underlying issues that face the UK economy,” he said.

Part of the problem was that businesses had been able to “mainline low-wage, low-cost immigration for a very long time,” Johnson said. ““I think actually this country’s natural ability to sort out its logistics and supply chains is very strong. But what we won’t do is pull the lever marked ‘uncontrolled immigration’.”

The prime minister doubled down on his insistence that disruption would be temporary but said it was part of the transition to offering more people better pay and conditions, saying drivers often had to “urinate in bushes” because the workforce was not valued by the industry.

“What you can’t do is go back to the old, failed model where you mainline low-wage, low-skilled labour – very often very hard-working, brave, wonderful people – who come in, working in conditions that frankly are pretty tough, and we shouldn’t be going back to that,” he told BBC Breakfast.

In broadcast interviews, Johnson defended the cut in universal credit, linking it to his drive to increase pay. “What we won’t do is take more money in tax to subsidise low pay through the welfare system,” he told LBC.

Johnson also criticised workers who had not returned to their offices, saying there were Downing Street staff still working from home.

He said young people who wanted to learn “can’t just do it on Zoom” and said they would be “gossiped about and lose out” if they worked from home. He said the cabinet secretary, Simon Case, had written to No 10 staff telling them to “get back to their desks”.

On Tuesday, the Conservative party conference will hear speeches by the justice secretary, Dominic Raab, and the home secretary, Priti Patel, who will announce tougher rules on community service and tagging criminals.

Johnson said he did not believe making misogyny a hate crime would be the right response to the murder of Sarah Everard. He said people’s main anger was about how existing laws were so poorly enforced.

“To be perfectly honest, if you widen the scope of what you ask the police to do, you will just increase the problem,” he said. “What you need to do is get the police to focus on the very real crimes, the very real feeling of injustice and betrayal that many people feel.”

Johnson said recruiting more female officers would help change the culture in police forces, after multiple stories about misogyny among officers that emerged in the wake of the sentencing of Everard’s murderer, Wayne Couzens, who was a serving police officer.

“In the Met now you are now running at 40%. That is a good thing. I want to see those officers progress up the ranks and attain senior positions and change the culture,” he said.

Business

President Tinubu assures of a robust economy

President Bola Tinubu has welcomed the National Bureau of Statistics (NBS) ‘s new report on the country’s trade balance.

According to the report, Nigeria recorded another trade surplus in the second quarter of 2024, hitting N6.95 trillion. The current surplus is 6.60% higher than the N6.52 trillion surplus recorded in the first quarter.

Just days after the country recorded almost 100 percent oversubscription of its first $500 million domestic bond and half-year revenue of N9.1 trillion, the latest report underscores the increasing positive shifts in the economy over the last year.

President Tinubu expresses confidence in the reforms his administration is pursuing and believes they will create a more robust economy that will usher in a new era of prosperity for Nigerians.

The NBS report reflects the country’s strong export performance in the second quarter.

Although total merchandise trade in Q2 2024 stood at N31.89 trillion, a 3.76% decline compared to the preceding quarter (Q1 2024), it marked a 150.39% rise from the corresponding period in 2023.

The NBS reported that the Q2 surplus was essentially driven by exports to Europe, the United States and Asia.

Total exports stood at N19.42 trillion, accounting for 60.89% of the country’s total trade. This represents a 1.31% increase from N19.17 trillion in the first quarter and a 201.76% surge from N6.44 trillion recorded in Q2 2023.

The dominance of crude oil exports remains a key factor in this performance, contributing N14.56 trillion, or 74.98% of total exports.

Non-crude oil exports, valued at N4.86 trillion, comprised 25.02% of the total export value, with non-oil products contributing N1.94 trillion.

The strong export performance, particularly in crude oil, ensured Nigeria maintained a favourable trade balance.

In Q2 2024, European and American countries dominated Nigeria’s top export destinations. Spain emerged as the largest export partner, receiving goods valued at N2.01 trillion, accounting for 10.34% of Nigeria’s total exports.

The United States followed closely with N1.86 trillion (9.56%), while France imported N1.82 trillion of Nigerian goods, representing 9.37% of total exports.

Nigeria’s other major export partners include India (N1.65 trillion or 8.50%) and the Netherlands (N1.38 trillion).

Generally, the economic indicators, which were very low when President Tinubu assumed office last year, are turning positive.

The government will continue to consolidate on the gains of the reforms as more fiscal and tax policy reforms already embarked upon by the administration come to fruition.

President Tinubu is determined to confront the inhibitions that have stunted the growth and development necessary to unlock the country’s full potential.

Business

OPEC: Nigeria’s oil production rose to 1.35 million bpd in August

Nigeria’s crude oil production rose to 1.352 million barrels per day in August from 1.307mbpd in July 2024.

The Organisation of the Petroleum Exporting Countries disclosed this in its September Monthly Oil Market Report.

Further analysis showed that the average daily crude production rose marginally by 45,000 barrels per day, based on information obtained through direct communication with the Nigerian government

This is as the Chief of Defence Staff, General Christopher Musa reiterated commitment to achieving the 2.2mbpd crude production target by President Bola Ahmed Tinubu’s government by December 2024.

The CDS made this known during a visit to Governor Siminalayi Fubara at the Government House in Port Harcourt, Rivers State, on Wednesday.

Consequently, he announced the creation of two key committees, the Defence Joint Monitoring Team and the Defence Joint Intelligence Infusion Centre.

According to him, these bodies, set up by Defence Headquarters, are to work in coordination with other military units and state governments to address the ongoing problem of oil theft.

“For us to achieve the mandate given by the Commander-in-Chief, we need to approach things differently,” Musa said.

He noted that while Operation Delta Safe ensures coordination between security forces under the Joint Task Force, the Monitoring Team is tasked with identifying weaknesses and proposing ways to close operational gaps.

He said the Infusion Centre will streamline intelligence on oil theft and other criminal activities, ensuring swift action to maintain peace and security in the region.

General Musa commended Governor Fubara for fostering a peaceful environment in Rivers State, noting that this has allowed the Armed Forces to carry out their duties without hindrance.

“We are grateful for your leadership and support, which has allowed us to maintain peace and advance development,” Musa said.

Business

FCCPC to partner with traders to curb consumers’ exploitation

The Federal Competition and Consumers Protection Commission (FCCPC) has appealed to stakeholders in the production and distribution value chain of the economy to join the crusade to curb price fixing and other unethical practices.

The call was made by FCCPC boss, Mr. Tunji Bello, in Lagos on Wednesday while addressing a hall pack full of captains of large/small-scale industries, leaders of market associations, transport operators and service providers at a town-hall meeting hosted by the commission.

The one-day stakeholders’ engagement on Exploitative Pricing was held in Oregun area of Lagos.

According to him, the meeting was necessitated by startling discoveries made by the commission during a survey conducted nationwide.

“We discovered that some traders form cartels in the markets and put barriers in form of ridiculous membership fees intended to ensure price fixing in the market. Without joining them, they won’t allow anyone to sell goods in the market or provide services. Such practices are against the law and constitute some of the offences the Commission is against,” said the FCCPC boss.

He added: “The purpose of the town-hall meeting initiative is to engage you the stakeholders in the production and retail segment of the market as well as service providers, to hear your own stories, with a view to achieving a consensus for the benefit of all of us.”

The Lagos stakeholders’ meeting is sequel to the one held in Abuja two weeks ago.

The FCCPC initiative is coming at a time Nigerians are experiencing sharp increases in the prices of food items and transportation costs across the country.

While acknowledging that the exchange rate and the increase in petrol price make the old prices unsustainable, Bello however, frowned at disproportionate increases in the prices of food items which he said are often perpetrated by “cartels” to exploit consumers.

Even though sections of the law empower the commission to deal decisively with offenders, Bello said FCCPC chose to first explore the option of dialogue with a view to arriving at a consensus to deal with the growing trend.

Section 17 of the FCCPC Act empowers the Commission to eliminate anti-competitive practices, misleading, unfair, deceptive or unconscionable marketing, trading, and business practices. It prescribes sanctions including a fine of up to N10m and a jail term of three years for anyone found guilty by the court.

To facilitate a better engagement, Bello disclosed that the FCCPC has upgraded its portal through which aggrieved consumers could lodge a complaint and their grievances would be addressed promptly.

On the economic outlook, Bello stated that the removal of taxes on imported food items, pharmaceutical products and transportation was part of measures being taken by the Tinubu’s administration to cushion the effects of the reforms introduced to reposition the Nigerian economy.

He sought the cooperation of the traders to ensure that the consumers get the benefits through reduced prices.

“Such laudable measures by President Tinubu would however be in vain if the benefits are not passed down to the consumers,” said Bello.

The Executive Commissioner, Operations, FCCPC, Dr. Abdullahi Adamu, emphasised during his welcome address that the purpose of the stakeholders’ engagement is to tackle sharp practices and address the role of market associations in contributing to price hikes of goods and services.

Adamu highlighted that President Tinubu’s administration is committed to reducing the cost of goods and services, urging stakeholders to collaborate with the government to find amicable solutions.

“The government of President Tinubu is interested in bringing the prices of goods and services down,” he stated, calling on stakeholders to engage in constructive dialogue to achieve this goal.

Speaking at the event, the Iya Oloja General of Nigeria, Folasade Tinubu-Ojo, echoed these sentiments, urging traders to refrain from exploitative pricing practices.

She called on the traders to support the government’s efforts by being considerate in their pricing.

“We need to assist the government in forcing down the prices of goods and services by being considerate and shunning the tendencies to make abnormal profits,” she said.

The General Manager of the Lagos State Consumers Protection Agency (LASCOPA), Mr. Afolabi Sholebo, also weighed in, questioning the logic behind punitive pricing practices.

“Why are we punishing ourselves? If we love ourselves so much, why are we punishing ourselves?” he asked.

Sholebo expressed concern over the influence of market associations that often pressured traders into maintaining high prices, even when some are willing to sell at cheaper rates.

“There is always a gang-up against some traders who decide to sell their goods and services at cheaper rates through market associations,” he lamented.

He further emphasized the need for a shift in mindset regarding pricing.

“We have to consider this issue of pricing. This is not the time to start arresting people. We know what is happening—some of us are our own enemies. Some people buy at cheaper prices and sell at exorbitant rates. We cannot blame the government for everything,” Sholebo concluded.