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Why ASUP strike may linger till 2019

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Why ASUP strike may linger till 2019

 

Two weeks into the industrial action embarked upon by the Academic Staff Union of Polytechnics (ASUP), there are indications that students and lecturers alike may not resume school till next year.
Even though ASUP had earlier vowed to remain on strike until the Federal Government showed some level of sincerity and commitment to implement the agreements previously entered into with the union, the recent meeting with the Permanent Secretary, Ministry of Education, Sonny Echonu, which lasted five hours, shows that the government is not perturbed whether lecturers and students of polytechnics remain at home.
According to ASUP President, Comrade Usman Dutse, the union was forced to down tools as a result of government’s consistent failures in implementing agreements reached in 2010, 2014 and 2017 respectively.
He maintained that ASUP was no longer interested in signing any other agreement or memorandum of understanding, but wants to see results from those previously signed with government.
According to him, the government’s failure to implement agreements signed had caused more harm than good to the union, as government was “making fresh inroads in its penchant for undermining the sector, by pursuing the implementation of policies with the ultimate aim of treating symptoms of an ailment and at the same time allowing that ailment to devour the diseased sector.
“Members of our union were directed to withdraw their services in a comprehensive and total strike action in all public Polytechnics and Monotechnics in Nigeria effective 12th November, 2018”
Besides, he said: “This decision was taken due to the consistent failure of Government to implement agreements it willingly signed with our union dating back to 2010 with the resultant effect of a severely derailed sector. Between 2010 and today, our union has been in consistent engagements with governments in Nigeria.
These engagements always end in the signing of agreements with different nomenclatures; 2010 FGN/ASUP Agreement, 2014 Memorandum of settlement, 2017 Memorandum of Action
“This is in addition to several other promises, appeals and assurances from Government on the issues in contention. None of the items in these different agreements have been successfully implemented across institutions covered in the sector.
“Our union has been patient and understanding with government. The Federal Government promised to address the issues before the end of November thinking that something will come out of it but up till now, we don’t have any assurance that there is any commitment from the assurances that government gave us to address our demands.”
Consequently, he said their members will remain at home until they begin to see commitment from government to implement the agreements. “We want to see sincerity, focus and commitment; government should be responsible enough to do the needful rather than shift the blame. If they had done the needful, we would not have embarked on strike.”

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Changes in the air: Intricate skills of aircraft development

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Changes in the air: Intricate skills of aircraft development

Here’s how the typical story-line of technology goes: something new is invented, then it becomes old and we replace it with a more advanced version. But in rare instances, tech is so advanced that we’re not actually prepared to replace it by the time it ages out of fashion, writes WOLE SHADARE.

 

 

Well beyond its time

Case in point: the Concorde. It was a plane ahead of its time—quite literally, as a flight from Paris or London to New York was so fast it’d actually land more than two hours before it took off: something that’s only possible today if you cross the International Date Line.

The supersonic jet was supposed to usher in a new age of transportation, but just 27 years after its inaugural commercial flight the futuristic aircraft retired with no successor—16 years ago today, in fact—and supersonic passenger travel ceased to exist.

Bringing cities closer

Gone were the days when a trip from Amsterdam to Lagos took 52 hours in propeller powered airplanes. The development of aircraft from propeller aircraft to jet engine airplanes has drastically cut down travel time between two cities considerably.

In those early stages of development of aircraft and by extension the aviation industry, aircraft makers at that time concentrated efforts on aircraft engines that were less advanced but efficient enough to travel long distances in days.

But advancement in technology has made continents, cities far closer than they would have been. Tribute must be paid to the Wright brothers – Orville and Wilbur –two American aviation pioneers generally credited with inventing, building, and flying the world’s first successful airplane.

The Wrights appear to be the first to make serious studied attempts to simultaneously solve the power and control problems.

Both problems proved difficult, but they never lost interest. They solved the control problem by inventing wing warping for roll control, combined with simultaneous yaw control with a steerable rear rudder. Almost as an afterthought, they designed and built a low-powered internal combustion engine.

1929 also saw the first flight of by far the largest plane ever built until then: the Dornier Do X with a wing span of 48 m. On its 70th test flight on October 21 there were 169 people on board, a record that was not broken for 20 years.

Rise of commercial aviation

After World War II, commercial aviation grew rapidly, using mostly ex-military aircraft to transport people and cargo. This growth was accelerated by the glut of heavy and super-heavy bomber airframes like the B-29 and Lancaster that could be converted into commercial aircraft.

Digital age (1980–present)

The last quarter of the 20th century saw a change of emphasis. No longer was revolutionary progress made in flight speeds, distances and materials technology. This part of the century instead saw the spreading of the digital revolution both in flight avionics and in aircraft design and manufacturing techniques.

The 21st century aviation has seen increasing interest in fuel savings and fuel diversification, as well as low cost airlines and facilities. Additionally, much of the developing world that did not have good access to air transport has been steadily adding aircraft and facilities, though severe congestion remains a problem in many up and coming nations. 20,000 city pairs are served by commercial aviation, up from less than 10,000 as recently as 1996.

End of an era

The first real experiment at considerably cutting travel time was the experiment with Concorde aircraft that was rested few years ago. Although Concorde finished lifespan but it is known as the most impressively beautiful and graceful airliner ever to fly.

Concorde was once the last word in luxury flight and still holds the record for the fastest crossing of the Atlantic by a commercial aircraft.

In 1976, the Concorde symbolized the future. Built by the French Aérospatiale and the British Aircraft Corporation (BAC), even its name was meant to symbolize the coming together of two ancient foes.

Concorde used to reach to 60,000 ft, a height of over 11 miles. So passengers were able to see curvature of the Earth. Due to the intense heat of the airframe, an aircraft used to stretch anywhere from 6 to 10 inches during flight. Every surface, even the windows, was warm to the touch by the end of the flight.

Air France and British Airways blamed low passenger numbers and rising maintenance costs.

Passenger numbers fell after an Air France Concorde crashed minutes after taking off from Paris in July 2000, killing all 109 people on board and four on the ground.

The plane ran over a piece of metal on the runway, bursting a tyre which caused the fuel tank to ignite as it was taking off.

The 9/11 attacks in 2001 also had a severe impact on the number of people choosing to fly.

The operators also blamed rising maintenance costs. Although advanced when it was launched, 30 years on the planes were outdated and expensive to run.

Duopoly

The end of supersonic jet saw to the dominance of the aircraft market by two aircraft giants, Boeing and Airbus. The rivalry between the two plane makers has led to advancement in technology for their customers and travellers alike.

The global commercial aircraft market is dominated by two manufacturers -European conglomerate Airbus and Seattle-based aerospace giant Boeing. Their drive to secure market share is affecting everything from which aircraft you are on, to what routes you can choose from and how many passengers you share the cabin with.

The rivalry between the two is shaping not just their own future but the air travel industry itself, driving innovative aircraft design, new buying patterns among airlines and expanded route maps that offer travellers more choice, flexibility and convenience.

Boeing and Airbus each control around half of the global aircraft market, and analysts anticipate the booming travel industry needing as many as 39,000 new planes over the next 20 years. With a value of over $6 trillion over two decades, even small differences in market share add up to big business, so it is no wonder competition is so fierce.

Driving Innovation

An important outcome of this intense rivalry has been the competition for more fuel efficient, cost-effective aircraft. Rising prices mean the cost of fuel now makes up almost half of the operating costs of airlines, so small improvements in fuel efficiency can yield huge benefits to carriers. One reason superjumbos are less popular is that alternative narrow-body or smaller wide-body craft are so much more efficient than they used to be.

Boeing’s latest version of the 787 consumes 40% less fuel per traveller carried than its equivalent aircraft did in the 1970s11. That means those smaller aircraft can fly for longer without having to stop and refuel at intermediate destinations, enabling airlines to deploy them on services that would have needed a 747 or A380 before.

More frequent services, operated by more adaptable, smaller aircraft became practical and cost effective. This allowed airlines to keep ticket prices low, while giving consumers more flights to the destinations they wanted, giving the more control over their time and their travel.

Last line

One driver of this increased efficiency is the new generation of engines powering aircraft. Sustained demand for jet and the need for competitive advantage allowed companies like Pratt & Whitney to develop innovative new approaches to propulsion technology like the ‘geared turbofan’. This engine alone can yield 16% more fuel efficiency, with half the carbon-dioxide emissions and only 25% of the noise pollution of previous models.

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MAP: Delta tops list as BEDC rolls out 572,392 meters for four states

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MAP: Delta tops list as BEDC rolls out 572,392 meters for four states

BEDC Electricity Plc. (BEDC) has announced a total rollout plan of 572,392 meters within the next two years across its franchise areas covering Edo, Delta, Ondo and Ekiti states under the Meter Asset Provider (MAP) scheme.

The breakdown according to a statement from BEDC, is as follows: Edo, 190,000 meters, Delta; 200,200 meters, Ekiti; 67,452 meters and Ondo; 114740 meters respectively.

Executive Director, Commercial, Mr. Abu Ejoor made this known during Media launches of the MAP scheme held across the coverage areas in Benin, Asaba, Ado-Ekiti and Akure, stressing that in taking off, MAP will initially have up to three months of build up roll out, which will eventually pick up with expected increase in monthly rate, across its franchise areas.

Mr. Ejoor disclosed that in Edo state, BEDC was taking off in two major locations; GRA to Ihama in Benin City and Okpela in Auchi North, adding that customers should cooperate with enumerators going round various locations in Edo and respond promptly to request for completion of enumeration forms.

Speaking on current power reality in Edo state, the Executive Director affirmed that 44 per cent of BEDC’s power allocation of 9 per cent from the national grid comes to Edo state, hinting that average of 86,061MW of electricity is delivered to the state monthly.

He added that about 14 per cent power generated is lost due to poor network infrastructure, saying work was ongoing to improve the network, adding “about 36% of power generated is lost through commercial theft or illegal consumption and non-payment of bills. About 30% of power supplied to households are wasted due to inefficient management of use.”

Mr. Ejoor equally informed journalists that the 132KV breaker of the 15MVA transformer at Okpella Transmission Station has been replaced with the transformer back to service.

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Of budget and IOCs’ $62bn oil revenues’ underpayment

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Of budget and IOCs’ $62bn oil revenues’ underpayment

The $62 billion (N10.32 trillion) oil revenues allegedly underpaid by the international oil companies (IOCs) to the Federal Government coffers can fund Nigeria’s budget for two years. Adeola Yusuf reports

 

 

The relationship between the Federal Government and International Oil Companies (IOCs) operating in the Nigeria’s deep water production space hit a new low last Wednesday. The business tie between the duo was rocked by a fresh bickering over allegation of $62 billion (n10.32 trillion) oil revenues underpayment.

Nigeria, Africa’s biggest crude exporter is cash trapped and it, would not tolerate what it termed a “short-change” from the operators in its oil sector.    

Speaking through the Attorney-General and Minister of Justice, Abubakar Malami, the government declared that there is no limit to what it could do in terms of engagement and settlement in pursuit of the $62 billion oil revenues allegedly underpaid by Shell, Chevron, ExxonMobil and two other oil supermajors.

The country is seeking recovery of $62 billion from the oil companies including Total and Eni using a 2018 Supreme Court ruling, which it says enables it to increase its share of income from production-sharing contracts (PSCs).

Though the allegation has since been rebuffed by some of the companies, the money in question is N22.320 trillion if converted to Nigeria currency, and it is, if established, enough to fund the country’s budget for two years, thus, it should be thoroughly followed.

The deal and its controversy `   

Stating that Nigeria had been “short-changed” under the law by the companies, Malami said in a telephone interview according to Reuters on Thursday, that the regulations allow the government to revisit revenue-sharing deals on petroleum sales if crude prices exceed $20 a barrel.

The government was pursuing a case for recovery if it was established that the oil companies had under-paid the government, he said.

“Computing the amount that should be credited to the Nigerian government if the law was effectively applied, that translates to around $62 billion against the IOCs (international oil companies),” the Attorney-General said.

He continued; “All options are on the table and there is no limit to what we can do in terms of engagement, in terms of settlement, if the need arises.”

Though Malami declined to name the oil companies involved in the matter, industry and government sources declared, according to Reuters that Royal Dutch Shell, Chevron, Exxon Mobil and Eni, were earlier asked to pay the central government between $2.5 billion and $5 billion each.

A sector with transparency issues

The oil sector, aside from this fresh $62 billion underpayment allegation, has myriads of issues that bother on lack of transparency. Just last Thursday, the Federal Government reconfirmed that Nigeria is yet to know the actual volume of fuel imports and consumption as it inaugurated a team of 89 persons drawn from five key agencies to, among other things, authenticate the actual volume of products imported and consumed in the country.

Minister of Petroleum Resources, Chief Timipre Sylva, who inaugurated the initiative code-named ‘Operation White’ in Abuja, according to a statement, maintained that the team is to also ensure transparency and accountability in the distribution of petroleum products across the country.

Speaking at a brief ceremony held at the NNPC Towers Thursday, Sylva who earlier visited the team’s Command and Control Centre at the NNPC Towers, observed that the initiative was long overdue for the country, even as he charged members of the team to carry out the assignment with commitment, zeal and patriotism.

The tough budget ahead

Nigeria, all things being equal, has outlined N10.729 trillion for its 2020 budget based on expectations of higher oil prices. The has set out to produce no less of 2.18 million barrels of crude oil daily in the entire 365 days of year 2020. The country also expects that the product will not sell below $57 per barrel. All these are contained in the latest document from the National Assembly, a legislative arm that, due to its statutory role, felt that the about 9 trillion earlier proposed by President Muhammadu Buhari for the 2020 budget was not enough. The budget, to the legislators deserved to be jerked and exactly that is what it did.

The legislature penultimate Thursday, October 3, 2019, increased the value of the country’s 2020 budget outline to N10.729 trillion based on expectations of higher oil prices.

The legislature passed a medium-term expenditure framework that increased the anticipated oil price to $57 per barrel from a previous $55 per barrel. That pushed the budget up from N10.002 trillion naira.

The finance minister had previously revised the expected oil price down from $60 per barrel to cushion against supply shocks.

The framework passed on Thursday also pegged oil production at 2.18 million barrels per day (bpd). While Nigeria is currently producing at roughly that level, it had pledged to cut it meet an OPEC cap on crude oil of 1.685 million bpd.

The document is a plan Nigeria uses to prepare its annual budget. The finance minister submits the framework to the legislature, which must then approve it.

President Muhammadu Buhari has presented a finalised budget proposal to the legislature last Tuesday, October 8, 2019, and the move to ensure funding for the budget has begun in earnest.

For Nigeria to realise this target, it must unfailing on daily basis be producing 1.8 million barrels and the oil must sell at $57per barrel or above that benchmark.

Unfortunately for Nigeria, it cannot solely determine oil price. The stability enjoyed by the country in production is also determined by the relative peace in the Nigeria Delta.

Asides this, the Organisation of Petroleum Exporting Countries (OPEC) also helps in determining what volume of crude is profitable to produce and sell to the global market.

The inability of the country to determine all these, rolled into one, will put it under intense pressure on the increase of the revenues for the budget to N10.729 trillion.

With a resolution to the alleged $62 billion (N22. 32 trillion) trapped through underpayment, the country could fund its budget conveniently for two years. 

The plan for recovery

In the latest plan, the government argued that the energy companies failed to comply with a 1993 contract-law requirement that the state receive a greater share of revenue when the oil price exceeds $20 per barrel, according to a document collectively prepared by the attorney-general’s office, and the Justice Ministry.

Oil prices rose to more than $100 a barrel in 2014 before a sharp drop that triggered a 2016 recession in Nigeria, leaving the government struggling to fund its budgets.

President Muhammadu Buhari on Tuesday presented a record 10.33 trillion naira ($33.8 billion) budget for 2020 to lawmakers. He has repeatedly rolled out record spending plans but struggled to fund them due to lower oil output and an inability to boost non-oil exports.

Under the production-sharing contract law, companies including Royal Dutch Shell Plc, ExxonMobil Corp., Chevron Corp., Total SA and Eni SpA agreed to fund the exploration and production of deep-offshore oil fields on the basis that they would share profit with the government after recovering their costs.

When the law came into effect 26 years ago, crude was selling for $9.50 per barrel. The oil companies currently take 80per cent of the profit from these deep-offshore fields, while the government receives 20per cent, according to the document. Oil traded at $58.29 a barrel on the London-based ICE Futures Europe Exchange.

Most of Nigeria’s crude is pumped by the five oil companies, which operate joint ventures and partnerships with the state-owned Nigerian National Petroleum Corp.

Representatives of the oil companies met Justice Minister Abubakar Malami Oct. 3 in Abuja, according to two people familiar with the discussions who asked not to be identified because the meeting wasn’t public.

Talking tough

Malami reportedly told them that while no hostility is intended toward investors, the government would ensure that all the country’s laws are respected, the people said.

Oil companies including Shell have gone to the Federal High Court to challenge the government’s claim that they owe the state any money, arguing that the Supreme Court ruling doesn’t allow the government to collect arrears. They also contend that because the companies weren’t party to the 2018 case, they shouldn’t be subject to the ruling.

“We do not agree with the legal basis for the claim that we owe outstanding revenues,” Bloomberg quoted Shell’s Nigerian unit to have said in an emailed response to questions.

IOC’s reactions and legal foundation

Chevron spokesman Ray Fohr said the company doesn’t comment on matters before the court. Its units in Nigeria “comply with all applicable laws and regulations,” he said by email.

Exxon and Total declined to comment, while Eni officials didn’t immediately respond to requests for comment.

The Supreme Court ruling followed a lawsuit by states in Nigeria’s oil-producing region seeking interpretation of the nation’s production-sharing law. The states argued that they weren’t receiving their full due. The court ruled in their favor and asked the attorney general and justice minister to take steps to recover the outstanding revenue.

The 1993 law required that its provisions be reviewed after 15 years and subsequently every five years. The attorney-general’s office insists that the provision for a higher share of revenue doesn’t require legislative action to take effect, according to the document.

“Instead it imposes a duty on the oil companies and contracting parties, being NNPC, to by themselves review the sharing formula,” the ministry said.

Last line

The government is expected to have done its home work very well before coming up with the allegation. The $62 billion translating to N22.32 trillion in contention is a lot of money, and it should be meticulously followed and recovered.

The IOCs, on the other hand, should put up a good defense to clear the air on the allegation and they have a lot of stakes in ensuring that transparency and accountability are enshrined in the country’s oil industry.

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Ikeja Electric deepens bilateral power deals, investments

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Ikeja Electric deepens bilateral power deals, investments

Ikeja Electric (IE) at the weekend deepened the bilateral power supply deals and investments in its franchise areas as it inked a 20 hours daily supply contract with firms and residents in Government Reserve Area (GRA), Ikeja.

Managing Director and Chief Executive Officer of the power utility company, Dr. Anthony Youdeowei, who led the company’s delegation at the signing ceremony held at the IE’s corporate headquarters in Lagos, maintained that his company would through the deal deliver “a minimum of 20 hours supply daily” to Ikeja GRA. 

This new deal, he said came as a result of the success recorded through a similar deal signed between Ikeja Electric and Residents of Magodo, another high-brow community under its franchise.

“Today, we are signing willing buyer willing seller power purchase agreement with Incorporated Trustees of Ikeja GRA residents Association in line with the company’s Bilateral Power Agreement,” he said.

The power supply, he explained, is a minimum of 20 hours of power supply for residents and businesses at the association in Ikeja GRA includes streets like Oduduwa, Isaac John, Joel Ogunaike, Fani Kayode, among other.

In its previous Power Purchase deal with Magodo Residents, it stated that “with the agreement, IE will provide the residents with electricity supply beyond the existing standards, with guaranteed performance levels. In addition, there will also be access to dedicated Customer Care and Technical teams for prompt resolution of queries and/or technical issues within the estate.”

Also, the Chief Operating Officer, IE, Mrs. Folake Soetan expressed confidence in the success of the trend-setting agreement, which she noted was in line with the Federal Government’s willing seller, willing buyer policy.

Chairman of Ikeja GRA power committee, Barrister Kennedy Anyiam-Osigwe, who expressed satisfaction with the agreement, noted that the GRA Ikeja would play its part of the deal by ensuring prompt bill payment system.   

Saying that the negotiation for the agreement lasted for about three years, Anyiam-Osigwe said: “The IkejaGRA is very strategy area and we found out that we are having very poor service. We thought okay, how do we find solution to this. When we tried to see what we can do, we engaged with Ikeja Electric and see how we can have a nearly 24 hours power, and they argued that it may be difficult – it may be  challenge to give us 24 hours power but they could give us premium power within 20 – 22 hours daily. We engaged them in so many meetings, negotiations and today we have signed the agreement.”

On wire tapping and sharp practices by electricity customers, he said; “The arrangement we have is that anybody who is found wanting among our members should just be cut off by Ikeja Electric.”

The Power Purchase Agreement suggests residents of the Ikeja GRA will enjoy a steady power supply when compared to non-residents. However, they will have to pay tariffs much higher than is provided for in MYTO. Residents in Magodo who currently enjoy a similar arrangement informed newsmen that they pay higher tariffs but have enjoyed regular power supply and often go days without a power cut.

They also explain that even when the power cuts they get messages from Ikeja Electric explaining why the power was cut and indicating when it will return. We understand Ikeja Electric still relies on the grid to deliver this power as such power cuts will still be expected in the transmission and distribution end.

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Housing: Stakeholders seek injection of N500bn into sector

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Housing: Stakeholders seek injection of N500bn into sector

Worried by  shortage  of affordable homes in the country , concerned stakeholders have  called on the Federal Government to inject N500 billion into building 100,000 housing units across Nigeria.

According to them, government should apply the money to build 50,000 units in Lagos, 25,000 units in Port Harcourt, 15,000 units in Abuja and 10,000 housing units in Kano to revamp the economy.

This was coming as a response to the recent United Nations’ (UN) report, which rubbished the acclaimed Federal Government’s progress in the housing sector.

Canvassing big bang injection of N500 billion into the sector, Managing Director, Rock of Ages Investment, Mr. Francis Onwuemele, said the housing units should be completed in 15 months, while mortgage should be created for each.

Apart from the fact that the initiative would yield a minimum of 500,000 new jobs, Onwuemele proposed a mortgage payment of N600,000 per year or N50,000 per month, saying this would yield an inflow of N50 billion monthly.

He said: “This inflow (unlike the error in FESTAC) will be ploughed back monthly and immediately into another tranche of 100,000 housing  units.

“In a year, you would have injected same N500 billion into achieving another 100,000 units of homes. By the third year, you would have created 200,000 mortgages and 200,000 mortgagors and easily rake in a monthly inflow of N100 billion or N1.2 trillion yearly with one million jobs created.”

If government adopted the strategy, he said that the multiplier effect by workers would be incredible, adding that the Gross Domestic Products (GDP) would move up rapidly and that crime rates would drop, while kidnapping would disappear.

Co-Founder, A-ZSME, Mr. John-Bede Anthonio, maintained that government must use Bonds with long-term tenure of 30-50 years from both local and international markets for affordable housing production.

He, however, warned that there must be transparency.

“Jakande, in 1980, took World Bank finance to execute all the low cost housing estates in Lagos and now the state government is about to finish the repayment. Prudent spending, not used for buying cars of 5.5 billion,” he said.

Anthonio, a former Managing Director of Lagos State Development and Property Corporation, urged government to put its house in order, decrying closure of border instead of removing subsidy of fuel.

Another housing professional, Okupe Adewunmi, said that if prices of houses were right, there would be effective demand, urging government on the need to help with infrastructure so that people could have better accessibility and productivity.

A report presented in Abuja by UN Special Rapporteur, Ms. Leilani Farha, revealed that the country’s housing sector was in a precarious condition to the extent that government needed to immediately declare a national emergency in the sector.

The report said that the huge government budget for the sector had no commensurate impact on the lives of the population that needed shelter in the country.

Farha, who stated that she completed her 10-day long fact-finding visit to three Nigerian urban cities of Abuja, Lagos and Port Harcourt with utmost shock seeing the realities on ground, also noted that the prevalent inhumane conditions of poor informal settlement amounted to gross human rights violations.

She said: “Nigeria’s housing sector is in a complete crisis. There is no current national housing action plan or strategy. Coordination and communication between federal and state governments seem lacking. Private market housing is unaffordable for most, rental housing is scarce, requires tenant to have one to two year’s rent in advance and there is no rent control or caps.

Poor remuneration, high interest rate, collateral’s bottleneck, unfavourable conditions of loan’s repayment, short-term nature of money and high cost of housing units have been adduced among other factors  low-income earners are not benefiting from mortgage.

Lagos’ Chairman of the Nigerian Institute of Town Planners (NITP), Mr. Bisi Adedire, stated that apart from low-income nature of many Nigerians, stringent conditions attached to mortgage loans and collateral’s requirement were hard to comeby by low-come people.

“People cannot meet up with collateral requirement to guarantee their payment. Also the condition of payment is not favorable, couple with interest rate.”

Adedire explained further that high cost of houses was another obstacle, adding that workers in the informal sector were not captured by most mortgage institutions.

According to report from Festus Adebayo-led Abuja Housing Show, a major requirement for getting mortgage loan facility that would enable borrower to own a home was by having a good job with regular income, but that has become a challenge when people’s earning is low.

He said: “At N18,000 per month minimum wage, public sector workers cannot afford mortgage loan. Even with the yet to be implemented new minimum wage of N30,000, this class of people will not still be able to afford mortgage loan.

“Therefore, for many years to come, unless a drastic change occurs, homeownership through mortgage loan, will continue to elude workers who earn the national minimum wage.”

Sustaining the argument, Adebayo said it was based on the term of mortgage’s structure, which required not less than one third or 33.3 per cent of N30,000 per month.

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NNPC generates N2.8bn, spends N34.1bn on refineries in two months

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NNPC generates N2.8bn, spends N34.1bn on refineries in two months

The Nigerian National Petroleum Corporation (NNPC) made N2.837 billion revenues on its ailing refineries and expended a whooping N34.094 billion on the same assets in two months.

The Monthly Financial and Operational Reports (MFORs) for the months of June and July released by the Corporation, which showed this, noted that NNPC suffered a whooping N31.256 billion deficits on the three inefficient refineries located in Port Harcourt, Warri and Kaduna.

Although, NNPC had for a long time been suffering deficit on the refineries, the deficit recorded in June was about N5 billion worse than the one suffered in May.

This became worse in July as the Corporation spent N14.661 billion in the three assets, whereas the refineries fetched it a staggering N825 million as revenues.

The May data showed that while NNPC made N5.684 billion on the installation, it expended N18.870 billion on monthly operations of the refineries in May.

Meanwhile, Nigerians have thronged Twitter account of NNPC to query the huge losses recorded by the Corporation on the refineries.

A don, Sunday Kanshio, demanded an immediate end to the losses recorded by NNPC on refineries.

“Just look at the losses from the refineries. Imagine if the refineries were your private companies,” he queried, adding: “What are the components of the losses?”

The Corporation, the MFORs obtained by New Telegraph showed, also suffered a geometric surge of 77 per cent in pipeline vandalism with 106 pipeline ruptures, puncture points recorded in just the month of June.

This also became worse with over 208 pipeline rupture points in July.

Despite this loss, NNPC added that it supplied about 1.7 billion litres of premium motor spirit (PMS) also known as petrol to filling stations nationwide. This, checks by this newspaper showed, translated to about N233 billion expenditure on importation of the product – using the N133.28 per litre ex-depot price.

The Corporation, the report stated, recorded 77 per cent rise in cases of oil pipeline vandalism in its network of pipeline infrastructure across the country in the month under review.

According to the report, 106 pipeline points were breached, representing a geometric surge from the 60 points vandalised in May 2019.

It further explained that the Aba-Enugu axis in the system 2E pipeline corridor accounted for 25 per cent of the total pulverised points, while the Lagos Atlas Cove-Mosimi axis of the system 2B had 23 per cent of the compromised pipeline points.

It noted that the Ibadan-Ilorin leg of the System 2B pipeline accounted for 18 per cent of affected lines, followed by the PHC-Aba section of the system 2E, which was responsible for 13 per cent of the affected pipeline.

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Aviation

Arik Air resumes flights to Owerri

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Arik Air resumes flights to Owerri

Arik Air says it will resume flight services to the Sam Mbakwe Airport, Owerri, from October 21.

The airline made the announcement in a statement signed by its Chief Executive Officer, Capt. Roy Ilegbodu, on Monday in Lagos.

Ilegbodu said the airline suspended flights to Owerri early in 2019 due to operational exigencies, adding that since then passengers had been yearning for a return of the carrier.

He said re-launch of flights to Owerri was coming on the heels of resumption of services to Warri by the airline on September 6.

“We made a promise to our esteemed customers that we will be returning to the routes that were suspended earlier in the year and our resumption of flights to Warri and now Owerri are a promise kept.

“In the coming weeks, the airline will be returning to more previously suspended destinations as well as opening more routes to cope with passengers’ demands,’’ Ilegbodu added.

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Malaysia to cut export duties for crude palm oil in 2020

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Malaysia to cut export duties for crude palm oil in 2020

Malaysia will reduce duties on exports of crude palm oil, its first review since the current tax rate was imposed in 2013, Finance Minister Lim Guan Eng said on Monday.

Under the new tax regime, the export duty rate will be set at 3% when prices are between 2,250 ringgit ($538.54) and 2,400 ringgit per tonne, down from the current duty of 4.5%, reports Reuters.

The export duty rate will go up to 4.5% at the next price tier of 2,401 ringgit to 2,550 ringgit, and rise at 0.5% increments to a maximum of 8% should prices reach over 3,450 ringgit per tonne.

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