N-power suspension, petrol price hike speculations… 7 business stories to track this week

Here are the seven top business stories you need to track this week — October 9 to October 13.

FG SUSPENDS N-POWER INDEFINITELY

The federal government says it will suspend the N-Power programme indefinitely for proper investigation and restructuring.

Betta Edu, the minister of humanitarian affairs and poverty alleviation, disclosed this during an interview on TVC on Saturday.

N-Power is a social investment scheme set up by the administration of former President Muhammadu Buhari in 2016 to address issues around youth unemployment and entrepreneurship.

Edu said the decision was prompted by irregularities within the scheme, adding that the government has initiated an investigation into fund usage since the inception of the initiative.

NNPC DENIES PLANNED PETROL PRICE HIKE

The Nigerian National Petroleum Company (NNPC) Limited says it has no intention to increase the pump price of petrol, also known as premium motor spirit (PMS), at its retail outlets.

There have been speculations on social media that the company plans to raise the petrol pump price to over N700 a litre.

However, in a statement on Thursday, NNPC’s retail subsidiary said it values the patronage of its customers.

Meanwhile, in August, President Bola Tinubu assured Nigerians that there would be no further increase in the petrol pump price. 

NIGERIANS DEMAND SALE OF REFINERIES

Nigerians are beginning to demand the sale of state-owned inoperative refineries.

This comes after Taiwo Oyedele, chairman of the presidential committee on fiscal policy and tax reforms, asked Nigerians to come together to demand that the nation’s refineries remain moribund.

Also, over the weekend, the senate committee on finance proposed the sale of the dead oil refineries, describing them as “bottomless pits”, despite turnaround maintenance.

Sani Musa, the chairman of the committee, on Saturday, said the proceeds from the sale could be invested in the mining sector to create jobs for Nigerian youth.

BOA: PEOPLE SEE LOANS AS NATIONAL CAKE, USE MONEY FOR WEDDINGS

The Bank of Agriculture (BOA) says recovering N243 million in loans disbursed in Kwara state has been difficult because debtors see it as their share of the national cake.

Speaking on behalf of the company, Dele Aderibigbe, BOA Ilorin branch manager, said the loan has been classified as bad debt, however, recovery efforts are still being made.

According to NAN last Monday, Aderibigbe said 150 debtors owe the bank N243 million — disbursed between 2011 and 2024.

GUINNESS STOPS SALE OF WHISKY

Guinness Nigeria has announced plans to stop the importation and sale of Johnnie Walker, Baileys, and other Diageo products by April 2024.

In a statement on Thursday on the Nigerian Exchange Limited (NGX), Guinness Nigeria said it will no longer trade in the products because Diageo Plc plans to establish a new, wholly owned spirits-focused business in the Nigerian and African markets. 

This is a move that will wipe off 6 percent of the Nigerian Brewer’s total revenues.

FG OPENS BIDS FOR PROCUREMENT OF 1.2M METERS

The federal government has opened the bids for phase two of the national mass metering programme (NMMP) which is to be funded from a $155 million World Bank loan.

The ceremony, which took place in Abuja on Thursday, had 47 firms — both local and international — submit bids for the procurement of 1.25 million electricity metering devices.

The federal government aims to end electricity estimated billing throughout the country to reflect cost-reflective tariffs.

This would also help to reduce the cost of meters and allow for mass buying.

NIGERIA’S CAPITAL INFLOW DECLINES BY $1BN

Nigeria’s capital inflow dropped by 9 percent in the second quarter (Q2) of 2023, according to the National Bureau of Statistics (NBS).

The bureau said the total capital imported stood at $1.03 billion, down from the $1.13 billion recorded in Q1 2023.