Monday, May 17Inside Business Africa
Shadow

Tag: covid 19

For once, rising oil prices mean falling knives

For once, rising oil prices mean falling knives

Economy
The uptick in oil prices is indicative of a recuperating economy, after an ‘interregnum’ triggered by COVID-19. But for Nigeria, the positive outlook is a reminder of the historic falling knives that is associated with crude and everything it represents in the domestic economy.x If oil prices are bullish, as they currently are, the government earns more money and can fulfil its financial obligations. When it earns less, as it did last year when crude bottomed out as it were, its financial capacity shrinks, sending the economy, which is reasonably dependent on government spending, to tailspin. But the dynamics of oil is much deeper. Nigeria exports crude but imports all the byproducts of the vital resource, including the most touchy premium motor spirit (PMS). With Nigeria’s r...
Salient points of the PIB Briefing

Salient points of the PIB Briefing

News
Presently, of the total cases, 81.77% cases have recovered, 17.1% areactive and cumulative fatality is 1.1%. Even if we consider the last 2-3months the death rate is well below the 1% mark.  An analysis of daily cases and death shows certain positivedevelopments. The number of cases has been decreasing for twodays continuously from over 4 lakhs to 3.68L. This trajectory isvisible in deaths as well. However these are very early signs andcontinuous monitoring is ongoing  There are some causes of concern which would require extra effort. Thereare 12 states which have more than 1lkh active cases and 7 states haveactive cases from 1L to 50K. Sample case positivity of states: 22 states have a higher positivity rate than15%, 9 stats with 5 – 15% and 5 states less than 5%.  Early signs of pla...
Coronavirus – African countries face high risk of COVID-19 resurgence

Coronavirus – African countries face high risk of COVID-19 resurgence

Health
The risk of COVID-19 resurgence remains high in several African countries due to poor adherence to public health measures, mass gatherings, low testing and vaccination rates, an analysis by the World Health Organization (WHO) has shown. Three countries face very high risk of COVID-19 resurgence, 20 face high, 22 moderate risk, and only one country faces low risk, according to the risk assessment of 46 countries. The risk was estimated using seven indicators with data from the past four weeks, including COVID-19 cases per million people; the percentage of change in new cases; the percentage of change in new deaths; the reproductive number (the rate at which an infection spreads); the pandemic trend; the average weekly number of tests per 10 000 people; and the percentage of the populati...
Flight movement rebounds despite low patronage

Flight movement rebounds despite low patronage

Aviation
More commercial flights have taken to the airspace lately, recording the highest toll since the outbreak of the coronavirus pandemic. Though passenger patronage is still at its post-pandemic low, global flight radar recently tracked an average of 77, 708 flights per week – the highest in the last year. According to global flight tracking service, Flightradar24, the seven-day rolling average of the number of flights hit the highest flights in both passenger and freight, a number which exceeded the previous peak during the Christmas holidays since COVID-19 started spreading. Higher numbers of flights in the major markets—the United States and China—were behind the increase, according to the report. The rising number of air movements could help global aviation fuel demand, wh...
NB declares N7.51 billion total dividend in 2020

NB declares N7.51 billion total dividend in 2020

Business
Nigerian Breweries (NB) Plc has announced a final dividend of N5.51 billion, translating to 69 kobo per share, bringing the total dividend declared in 2020 to N7.51 billion. The company had in October 2020 declared an interim dividend of 25 kobo per share. Reviewing its 2020 performance at the pre-yearly general meeting of the company held in Lagos, the Managing Director, Jordi Borrut Bell, said the company provided an option for shareholders to receive new shares instead of the cash dividend. Borrut Bel said the dividend would be paid to shareholders whose names appear in the register of members as at the close of business on March 10, 2021, while the payment is due for April 23, 2021. According to him, the share option would allow shareholders to plough the money back into ...
Cautious optimism trails manufacturing investment prospects

Cautious optimism trails manufacturing investment prospects

Industry
The impact of the coronavirus, insecurity and governance issues may have significantly impacted manufacturing activities within the country, as investments in the sector dropped by 76.11 per cent in 2020 to N118.52 billion from N496.11 billion achieved in 2019. According to the Manufacturers Association of Nigeria (MAN) in its executive summary of the economic review of the second half of 2020, the decline in investment is mainly attributed to the depressing effects of COVID-19. Indeed, a vast majority of Nigerian manufacturers rely on several raw materials from China and Europe. Apart from the fact that the ability to get supplies was significantly disrupted by the pandemic, the scarcity of foreign exchange and low demand due to the significantly reduced purchasing power of many...
Airlines plan ‘travel pass’ for travellers

Airlines plan ‘travel pass’ for travellers

Aviation
•Accept PCR results from approved labs only, NCAA directs carriersAirlines are considering a standard ‘travel pass’ criteria for international air travellers in the COVID-19 era. Though the technology-driven pass aims at an efficient travel experience, part of the conditions will include health credentials and COVID-19 vaccination. Similarly, the Presidential Task Force (PTF) has directed that only results from accredited private laboratories should be accepted from outbound passengers effective March 22, 2021. Hence, the Nigerian Civil Aviation Authority (NCAA) has threatened to sanction airlines that accept polymerase chain reaction (PCR) test results from unapproved laboratories. The travel pass proposal made headway when the International Air Transport Association (IAT...
Tax institute calls for appropriate fiscal measures

Tax institute calls for appropriate fiscal measures

Business
West African Union of Tax Institutes (WAUTI) has called for appropriate fiscal measures that would stimulate the recovery of the sub-regional economies. President and Chairman in Council of WAUTI, Gladys Simplice made the call at the union’s seventh International Tax Conference in Lagos. She said notwithstanding the measures put in place by countries to mitigate the impact of COVID-19, it was important that countries have a long-term view to avoid policies and actions that would be counterproductive over time. She said the theme of the conference, ‘Designing and Implementing Tax Measures for the COVID-19 Era and Beyond’, was aimed at reviewing policy initiatives in the past as well as the challenges encountered and analyse the impact of the COVID-19. She said: “We believe that to c...
‘Infrastructure, forex undermining real sector interventions’

‘Infrastructure, forex undermining real sector interventions’

Business
Improvement in local manufacturers’ confidence in the economy as well as sectoral recovery, remains challenged by parlous state of infrastructure and poor implementation of policies, especially those related to the palliative given to the manufacturing sector in the form of reduced interest rate, operators have said. With the manufacturing sector’s contributions to the latest Gross Domestic Product (GDP) remaining very low, despite acclaimed interventions from the Central Bank of Nigeria (CBN), local producers noted that the inability to control input costs and poor infrastructure affect productive output as well as confidence in the economy. The Director-General of the Manufacturers Association of Nigeria (MAN), Segun Ajayi-Kadir, noted that while manufacturers are optimistic t...
How new Covid measures on air travel are hitting African airlines

How new Covid measures on air travel are hitting African airlines

Aviation
Arlette Tanga, president of the African Air and Space Law Association, says it's a bad time for airlines once again. While borders are closing again, airlines – which saw their air traffic fall by 69.8% during 2020 for the African continent alone – must adapt to the different policies adopted by each country: checking tests – PCR or antigenic depending on the country – of passengers and/or their staff, changing health protocols. Since June, China has established new rules that would allow services to resume if no positive cases are detected on any flights for three consecutive weeks.  However, airlines whose passengers test positive on arrival will remain grounded for a certain period: two weeks if five passengers test positive – the rule, which initially enforced a one-week sus...