Business

EU offers to scrap 80% of Northern Ireland food checks but prepares for Johnson to reject deal

The EU will scrap 80% of checks on foods entering Northern Ireland from Britain but Brussels officials were “preparing for the worst” amid signs Boris Johnson is set to reject the terms of the deal.

Maroš Šefčovič, the EU’s Brexit commissioner, also announced that customs checks on manufactured goods would be halved as part of a significant concession to ease post-Brexit border problems.

He said he would meet David Frost, his UK counterpart who has demanded a scrapping of the entire Northern Ireland protocol, on Friday as he sought to bring an end to a month-long tussle.

“I hope with a constructive spirit we indeed could be in the home stretch, and I would be very happy if we can start the new year with new agreements,” Šefčovič told a press conference in Brussels as he presented four papers on his “new model” for the protocol.

An appeal was made for pragmatism from Johnson, with Šefčovič insistent that he remained positive. But the chances of a compromise appeared low.

Frost told the House of Lords he did not have any “red lines” going into the new negotiation with the European commission but repeated his belief that a new protocol should be agreed without a role for the European court of justice (ECJ) as an arbiter of EU law in Northern Ireland. He told peers that the question of the UK’s sovereignty over Northern Ireland was “fundamental”.

A three-week deadline for talks on the EU’s new proposals has been set. But Šefčovič was adamant the EU would not renegotiate the fundamentals of the protocol which keeps Northern Ireland within the single market, policed by the ECJ, and draws a customs border down the Irish Sea.

Šefčovič said: “It’s very clear that we cannot have access to the single market without the supervision of the ECJ. But I think that we should really put aside this business of the red lines, the business of deadlines, real or artificial, and we should really focus on what we hear from the stakeholders and the people in Northern Ireland, they want us to solve the practical issues.”

An EU official conceded there was a “very big gap” between Frost’s demands and the proposals on the table. “Primarily, it’s a call for the UK to be realistic,” the official said. “Focus on providing certainty, stability and predictability rather than focus on these high-level constitutional issues.

“We think that renegotiating the protocol would create uncertainty. And that’s the opposite of what we need … There’s a reason why negotiations on the protocol lasted for three and a half years. And we think we’ve reached the only workable solution.”

A UK government spokesperson said: “We are studying the detail and will of course, look at them seriously and constructively. The next step should be intensive talks on both our sets of proposals, rapidly conducted, to determine whether there is common ground to find a solution.

“Significant changes which tackle the fundamental issues at the heart of the protocol, including governance, must be made if we are to agree a durable settlement which commands support in Northern Ireland.”

The EU proposals on goods and medicines represents a significant concession for Brussels, which had previously called for the UK to align with the bloc’s food and plant health rules to avoid checks between Great Britain and Northern Ireland.

While the EU continues to say checks and controls in the Irish Sea border are necessary to avoid a hard border on the island of Ireland, and represent the Brexit choices made by the British government, officials admitted more clearly than ever before that its implementation had created “unintended consequences” for businesses and consumers. “It goes far beyond tinkering around the edges,” said one official.

The EU is now proposing a “bespoke Northern Ireland specific solution”. This means checks would be removed on 80% of lines on supermarket shelves, with carefully labelled and sourced British sausages, the product that became emblematic of the row between the two sides, no longer at risk of being prohibited.

In a further concession, trucks carrying mixed loads – for example a lorry bound for a Northern Irish supermarket laden with meat, dairy and confectionery – would only have to provide one health certificate for each journey rather than one for each product line.

Customs paperwork will be hugely reduced through a more generous definition of goods deemed “not at risk” of entering the EU single market via the Irish border.

In exchange for looser controls, the UK will have to ensure border inspection posts are up and running and that EU officials have access to real-time data on checks.

These are existing requirements of the protocol and EU officials say they have seen progress on access to databases, having previously accused the UK of foot-dragging.

Some market checks will also be intensified to prevent British goods being smuggled into the EU single market through Northern Ireland. Products for the Northern Irish market would have to carry individual labels, rather than labels on pallets.

“We are proposing a different model,” said an EU official. “Fewer checks on the one hand, but more guarantees in terms of governance, more market surveillance and for this reason reinforced monitoring of supply chains will also be essential.”

However, in Westminster there is a concern that the market surveillance and checks on sources of products will be as much of a problem for traders as the status quo. There was no solution contained within Šefčovič’s proposals to the issue of pets travelling from Northern Ireland to the rest of the UK and back.

In response to threats to affordability and availability of generic medicines in Northern Ireland, the EU will waive a requirement that medical manufacturers move out of Great Britain into Northern Ireland. Companies supplying the Northern Irish market can continue to have their supply “hub” in Britain, a privilege not usually afforded to countries outside the EU single market.

Following criticism that the protocol is “undemocratic”, the Northern Ireland assembly, civil society groups and businesses will be invited to take part in “structured dialogues” with the European commission on implementing the hundreds of EU laws that apply in the region, although they will not have any decision-making power.

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.