Business

Steel industry calls for state support to avoid ‘full blown crisis’

The steel industry has called for urgent state support to avoid a “full blown steel crisis”, warning that plans to issue loans to soften the impact of soaring gas prices “won’t address the problem”.

As industry leaders voiced dismay at the perceived lack of support from government, trade unions wrote to the prime minister warning he was at risk of making a “historic mistake with devastating consequences” for an industry employing 32,000 people.

Uncertainty about how to support power-hungry industries such as steel has already sparked a political row between the Treasury and the business secretary, Kwasi Kwarteng, over whether to offer financial support.

While the Treasury is understood to be reluctant to fund a bailout, ministers are weighing up proposals from Kwarteng to provide short-term loans or guarantees while gas prices are high, to help sectors such as steel, glass, chemicals and paper.

Representatives from the industry met officials from BEIS on Tuesday but left disappointed at a lack of detail on the proposals and concerned that the loan plan won’t help.

“If it is only these loans that are on the table, then for the steel industry that won’t address the problem,” UK Steel’s director, Gareth Stace, told the Guardian.

“We need to get back round that table to discuss and agree better solutions.”

Three steelworkers’ unions – Community, the GMB and Unite wrote to the prime minister on Tuesday, urging action to protect thousands of jobs.

“The seriousness of the situation requires swift and decisive action from government. But it seems government ministers have been too busy squabbling, and that’s why we wrote to the prime minister urging him to get a grip and act to resolve this crisis before it is too late.”

In their letter to the prime minister, the steelworkers’ unions said other European countries had provided assistance to their own steelmakers.

“Brexit was supposed to make it easier for the government to back British industry and British jobs, but all we are seeing is the same old procrastination and excuses for doing nothing,” they wrote.

UK Steel had earlier backed Kwarteng in calling for assistance from the chancellor, Rishi Sunak. The Treasury initially appeared to reject, issuing an unusual reprimand to the business secretary for suggesting help might be available.

Since the split, officials from the departments are understood to have thrashed out the short-term lending plan.

But UK Steel said this would leave the industry still battling against a “hostile environment” and at risk of shutdowns.

In an earlier statement, Stace said: “Our message directly to the prime minister is please don’t just apply a sticking plaster to what is a significant long-term problem. Action can and must be taken now to secure the foundations of British industry.”

Kwarteng met representatives from industries including steel, paper, glass and chemicals on Friday and again on Monday, to hear their arguments for longer-term help, such as measures to ease electricity costs, which are high relative to European peers.

Stace said any measures to help steel had to put UK producers on a “level playing field” with overseas rivals.

“If any package delivers less than this and we still continue to pay more for energy than French and German steel producers and we remain at a competitive disadvantage,” he said.

“Steel producers here in the UK will continue to have to pause steel production, will be less efficient and will lose margins and market share.

“This is a hostile environment for industrial investment in the UK and for the government’s levelling-up agenda.”

The business department said the steel industry’s international competitors were often benefiting from pricing regimes that transferred the cost of industrial energy usage onto households.

“Ministers and officials continue to engage constructively with industry to further understand and to help mitigate the impacts of high global gas prices,” said a spokesperson.

“Our priority is to ensure costs are managed and supplies of energy are maintained.

“Some countries on the continent have lower industrial electricity prices in part because some costs are recovered from consumer bills.”

Business

FG, states, LGs share N1.678trn for February – FAAC

The Federation Account Allocation Committee (FAAC), has shared N1.678 trillion among the Federal Government, states and the Local Government Councils (LGCs) for the month of February.

This is according to a communiqué issued by FAAC and made available by Bawa Mokwa, the Director, Press and Public Relations, Office of the Accountant-General of the Federation (OAGF).

According to the communiqué, the total revenue of N1.678 trillion comprised statutory revenue of N827.633 billion and Value Added Tax (VAT) revenue of N 609.430 billion.

It also comprised Electronic Money Transfer Levy (EMTL) revenue of N35.171 billion, Solid Minerals revenue of N28.218 billion and Augmentation of N178 billion.

It said that a total gross revenue of N2.344 trillion was available in the month of February.

“Total deduction for cost of collection was N89.092 billion while total transfers, interventions, refunds and savings was N577.097 billion,’” it said.

The FAAC issued communiqué said that gross statutory revenue of N1.653 trillion was received for the month of February, which was lower than the sum of N1.848 trillion received in January by N194.664 billion.

It said that gross revenue of N654.456 billion was available from VAT in February, lower than the N771.886 billion available in January by N117.430 billion.

The communiqué said that from the total distributable revenue of N1.678 trillion, the Federal Government received total sum of N569.656 billion and the state governments received total sum of N562.195 billion.

It said that the LGCs received total sum of N410.559 billion, and a total sum of N136.042 billion (13 per cent of mineral revenue) was shared to the benefiting states as derivation revenue.

“On the N827.633 billion statutory revenue, the Federal Government received N366.262 billion and the state governments received N185.773 billion.

“The LGCs received N143.223 billion and the sum of N132.374 billion (13 per cent of mineral revenue) was shared to the benefiting states as derivation revenue,” the communiqué said.

It said that from the N609.430 billion VAT revenue, the Federal Government received N91.415 billion, the state governments received N304.715 billion and the LGCs received N213.301 billion.

“A total sum of N5.276 billion was received by the Federal Government from the N35.171 billion EMTL. The state governments received N17.585 billion and the LGCs received N12.310 billion.

“From the N28.218 billion Solid Minerals revenue, the Federal Government received N12.933 billion and the state governments received N6.560 billion.

“The LGCs received N5.057 billion and a total sum of N3.668 billion (13 per cent of mineral revenue) was shared to the benefiting States as derivation revenue,’” it said.

It said that Oil and Gas Royalty and EMTL, increased significantly while VAT, Petroleum Profit Tax (PPT), Companies Income Tax, Excise Duty, Import Duty and CET Levies recorded decrease.

Business

NNPCL refutes explosion rumour at Port Harcourt refinery, confirms containment

The Nigerian National Petroleum Company Limited (NNPC Ltd) has debunked reports of an explosion at the Port Harcourt Refining Company (PHRC) in Rivers State.

In a statement issued on March 19, 2025, Olufemi O. Soneye, Chief Corporate Communications Officer, clarified that the event was a flare incident, which has been fully contained without posing any danger to staff, surrounding communities, or the environment.

“There is no danger or health hazard to staff, the surrounding communities, or the environment,” NNPC said in the statement

The company therefore urged the public and media to disregard false claims of an explosion at the refinery, emphasizing that operations remain unaffected.

The NNPC Ltd also reaffirmed its commitment to transparency and safety in its operations.

Business

Rising data costs will worsen Nigeria’s connectivity gap – CITAD warns

The Centre for Information Technology and Development (CITAD) has raised concerns over the increasing cost of internet data in Nigeria, warning that it further widens the country’s existing digital divide.

The centre argued that the increase in data will leave many underserved communities without access to essential online services.

Haruna Adamu Hadeija, the Coordinator of Community Network, CITAD, revealed this while speaking at a press briefing held at the CITAD office in Kano on Monday.

He emphasized the impact of rising data costs on marginalized communities.

According to Hadeija, the 50% tariff increase on data, calls, and SMS approved by the Nigerian Communications Commission (NCC) has made it increasingly difficult for communities already struggling with poor connectivity to access the internet.

“Now that data charges have been jerked up by 50%, students and parents in underserved areas have to ‘dearly’ pay to enable their children to learn online,” Hadeija said.

“This cost hike not only widens the existing connectivity gap but also makes digital liberation nearly impossible for millions of Nigerians.”

Hadeija noted that while Nigeria has made strides in expanding internet access, an estimated 27.91 million people in 97 underserved communities still lack internet access, according to a 2022 report by the Universal Service Provision Fund (USPF).

He highlighted how this lack of connectivity continues to disenfranchise students, youth, and women, particularly those in rural areas.

“In regions where internet access is absent, parents must send their children far from home just to register for computer-based tests, conduct exams, and check their results. It is unfair that many communities are left behind because they cannot afford internet services,” he added.

The CITAD coordinator stressed the need for urgent policy interventions to address the widening digital divide.

He called on the Minister for Digital Economy to officially recognize community networks as an additional layer of connectivity providers in the country.

“We urge the USPF to support local communities with grants to deploy their own connectivity initiatives. These community networks are not competitors to Mobile Network Operators (MNOs); they are complementary solutions to bridge the existing connectivity gap,” Hadeija appealed.

CITAD also proposed capacity-building initiatives to empower local communities in resource mobilization and sustainability to create self-sufficient, community-centered networks.