May inflation, Emefiele’s suspension… 7 business news to track this week

Here are the seven top business news you need to track this week — June 11 to June 15.

NBS REPORT

The National Bureau of Statistics (NBS) is expected to publish a report on the consumer price index (CPI) for May 2023.

In April, the CPI, which measures the rate of change in prices of goods and services, rose to 22.22 percent – up from 22.04 percent in the previous month.

The bureau also intends to release a report for the current month on household kerosene prices, and premium motor spirit (petrol) prices. 

TINUBU SUSPENDS EMEFIELE

President Bola Tinubu has suspended Godwin Emefiele as the governor of the Central Bank of Nigeria (CBN).

According to a statement from the secretary to the government of the federation (SGF), Emefiele’s suspension took effect immediately.

Emefiele was also asked to transfer his responsibilities to Folashodun Shonubi, the deputy governor, operations directorate of CBN.

Although there were no specific reasons for his suspension, the SGF noted that there is “an investigation of his office and the planned reforms in the financial sector of the economy”.

Meanwhile, hours after the suspension, Emefiele was quickly arrested by the Department of State Services (DSS).

UBER, BOLT DRIVERS STRIKE OVER HIGH COMMISSION RATES, LOW FARES 

E-hailing drivers under the aegis of the Amalgamated Union Of App-Based Transport Workers Of Nigeria (AUATWON) have shutdown operations over low fares.

The industrial action which started on June 7, 2023, was also in protest of the high commission rates set by Uber and Bolt — the two biggest ride-hailing service providers in Nigeria.

According to the association, the latest removal of subsidy, which has increased the prices of petrol by over 270 percent, coupled with the “unreasonable 25 percent commission charge on every trip, has further put the business and investment in an unprofitable state”.

The app-transport workers said they are struggling to survive and can no longer cope with the situation.

Hence, the drivers are demanding an increase in fare by 200 percent and a reduction of commission by 50 percent.

SIRIKA AND NIGERIA AIR SAGA

Hadi Sirika, former minister of aviation, says Nigeria Air was unveiled by the national carrier’s shareholders and not the federal government. 

Speaking on Arise TV on Sunday, Sirika said, although the plane was chartered, the government was not responsible for paying for the flight. 

He also said the unveiling of the single aircraft was a marketing strategy by the Nigeria Air partners, adding that the national carrier would resume operations once the air operator certification (AOC) process was completed.

From conception to the recent inauguration, the floating of Nigeria Air has suffered significant setbacks.

While there was a court ruling against its operation, the Airline Operators of Nigeria (AON) also raised concerns about the ownership structure of the company. 

SEC DECLARES BINANCE ILLEGAL

The Securities and Exchange Commission (SEC), on Friday, said the operation of Binance Nigeria Limited, a subsidiary of Binance, was illegal in the country.

The commission, in a statement, said the cryptocurrency platform is neither subject to its regulations nor registered, warning Nigerians of the associated risks in investing in digital assets on Binance.

The commission also said the public would be notified of any additional regulatory actions relating to the operation of Binance Nigeria Limited and other similar platforms.

SEC added that it will collaborate with other Nigerian regulators to ensure that more clarifications are made available on the issue.

TINUBU SIGNS ELECTRICITY BILL, EMPOWERS STATES TO GENERATE POWER

President Bola Tinubu has assented to the electricity bill, which empowers states, companies, and individuals to generate, transmit, and distribute electricity.

The new electricity law repeals the Electricity and Power Sector Reform Act of 2005 and consolidates the laws relating to the Nigerian Electricity Supply Industry (NESI).

Tinubu said the constitutional amendment permits Nigeria’s 36 states to generate electricity.

Also, the newly-signed act provides an omnibus and an ideal institutional framework for the post-privatisation phase of Nigeria’s power sector in the areas of generation, transmission, distribution, supply, trading, and general use of electricity.

OPEC+ EXTENDS PRODUCTION OIL CUTS

The Organisation of Petroleum Exporting Countries (OPEC) and its allies, called OPEC+, have decided to extend the current voluntary cuts until the end of 2024.

The oil cartel made the decision at the 35th OPEC and non-OPEC ministerial meeting on Sunday.

At the meeting, the alliance extended the cuts until the end of 2024.

In addition, the oil cartel reduced the combined oil production to 40.463 million bdp from January to December 2024, including 24.994 million bpd for OPEC member countries, and 15.469 million bpd for non-OPEC member countries.

This is a 3.39 million bpd reduction from the 43,856 million bpd in the current production target of November 2022 to December 2023.

Also, as part of the resolutions at the meeting, Nigeria’s production level was reduced to 1.38 million bpd, from the current 1.74 million bpd.