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

economy

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.

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Business

Dangote reduces diesel price to N1,020 per litre

Dangote Petroleum Refinery and Petrochemicals (DPRP) has reduced the cost of its diesel product to N1,020 per litre down from N1,075 per litre a reduction of N55 which it said is an effort to better serve its customers and Nigerians in general.

Since it began diesel production in January 2024, the Refinery has reduced the price of diesel more than three times, from an initial N1,700 per litre to the current rate, thus providing much-needed relief to manufacturers and consumers alike.

The latest reduction for diesel follows the revelation by Development Economist and Public Policy Analyst, Professor Ken Ife, that the Dangote Petroleum Refinery sacrificed over N10 billion to ensure the availability of petrol at a uniform price across the country during the yuletide period.

Professor Ife also praised the Refinery for setting a new benchmark in Nigeria’s energy sector by unlocking vast opportunities for export revenue.

Speaking on the transformative impact of the refinery on Arise TV, the don explained that for years, the equalisation fund had been responsible for managing the price differentials and transportation costs involved in distributing petroleum across the country.

However, it has been reported that the fund owes marketers over N80 billion, according to the development analyst.

“What has actually happened is that the president has shifted the subsidy burden away from the public purse and onto the private sector. The equalisation fund, which was meant to cover the price differential and transportation costs, plays a crucial role.

“If petroleum is to be sold across the country at a set price, then transportation costs must be accounted for to ensure this is possible. That’s the purpose of equalisation. However, the equalisation fund is reported to owe around N80 billion to the marketers, and this issue is still under discussion.

“During the Christmas season, which is traditionally the most challenging period, we often face shortages of petroleum, petrol hoarding, and arbitrary price hikes, all of which impact the cost of food. In response, during this last yuletide, the Dangote Group made the decision to absorb the costs.

“They equalised the price themselves, at a cost of over N10 billion. In doing so, they effectively absorbed the subsidy,” the Professor said.

He also added that the facility is steering Nigeria away from its traditional focus on Premium Motor Spirit (PMS) towards a diversified range of petroleum-based exports.

He added that with major international players such as BP and Saudi Aramco purchasing refined products from Nigeria, the country is swiftly becoming a key player in the global petroleum market while expressing confidence that Nigeria is on the path to self-sufficiency in petroleum products thus simultaneously positioning itself as an energy export powerhouse.

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Banking

Africa Energy Bank to launch in first quarter, targets $120 billion asset base

African energy bank logo (credit: Goggle)

The Africa Energy Bank, which will fund oil and gas projects and support the continent’s energy transition goals, will launch in the first quarter of 2025 and target an asset base of $120 billion, Nigeria’s junior oil minister said on Tuesday.

The fossil fuel-focused bank, a partnership between trade finance institution Afrexim Bank and the African Petroleum Producers Organization, was due to start operations by mid-2024, an Afreximbank official said last year.

“The building is ready, and we are only putting finishing touches to it, by the end of this quarter, this bank will take off,” said Nigerian junior oil minister Heineken Lokpobiri.

The minister joked that Nigeria too will follow U.S. President Donald Trump’s mantra on increasing oil drilling and remove all impediments to grow oil production to 2.5 million barrels per day this year. Currently Nigeria’s crude output averages 1.7 million bpd.

Nigeria, Africa’s top oil producer, beat three rival African countries for the right to host the multilateral lender.

(REUTERS/POLITICALE)

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Business

MTN hikes prices of data, SMS to reflect new tariff plan

MTN, Nigeria’s largest telecommunications operator on Tuesday commenced implementation of the Nigerian Communications Commission’s approved tariff hike by increasing its data prices.

A check by the News Agency of Nigeria (NAN) using the *312# code on the MTN network showed the revised MTN data prices.

For the monthly plans, MTN 1.8GB now goes for N1,500, replacing the previous 1.5GB plan priced at N1,000; the 15GB plan now costs N6,500, a rise from N4,500.

The 20GB monthly plan has been adjusted to N7,500, up from N5,500, among others.

Text messaging on the network has also increased to N6.00 reflecting the 50 per cent hike, while hike in voice calls rates are yet to be ascertained.

Other mobile operators comprising Airtel, Globacom, and 9mobile are yet to update their data prices as at the time of filing this report.

NAN reports that the Nigerian Communications Commission (NCC), the industry’s regulatory body had approved a maximal increment of 50 per cent tariff adjustments to operators.

The Commission said its approval, though less than the 100 per cent hike demanded by operators, was in response to prevailing operational costs.

It said that its decision was pursuant to its power under Section 108 of the Nigerian Communications Act, 2003 (NCA) to regulate and approve tariff rates and charges by telecommunications operators.

The NCC said that, while recognising the concerns of the public, the decision was made after extensive consultations with key stakeholders across the public and private sectors.

“The NCC recognises the financial pressures faced by Nigerian households and businesses and remains deeply empathetic to the impact of tariff adjustments,’ the NCC said in a statement.

It noted that these adjustments would support the ability of operators to continue investing in infrastructure and innovation, ultimately benefiting consumers through improved services and connectivity.

The NCC added that consumers would benefit from better network quality, enhanced customer service, and greater coverage within the country. (NAN)

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