BUSINESS ROUNDUP: Unemployment rises to 27.1%; FIRS generates N3bn weekly; See other stories that made our pick

Hello, and welcome to Business Roundup this week. Here, we bring you highlights of events that happened during the week -from the capital market, mainstream business activities while not forgetting the tech/economy build up.

Here are the Headlines:

• Unemployment rises to 27.1%
• Reps kick as CBN fails to account for $11bn ECA withdrawal
• Air Peace to recall some sacked pilots after Nigerian govt’s intervention
• FIRS generates N3bn weekly from stamp duty – Nami

 Summary:

Nigeria’s unemployment rate rose to 27.1 per cent in the second quarter of 2020 from the 23.1 per cent recorded in Q3 2018, the National Bureau of Statistics (NBC) said on Friday. According to the Bureau, more than 17 million people, representing over 78% of Nigeria’s unemployed population of 21.76 million people, became unemployed between 2014 and 2020.

The statistics office similarly observed that the total working age population had increased by nearly 17 million in those six years. The Labour Force Statistics report issued on Thursday noted that the unemployment figure rose from 20.93 million in 2018 to 21.76 million in the second quarter of this year. Read more

The House of Representatives Thursday kicked against the failure of the Central Bank of Nigeria (CBN) to account for the $11 billion withdrawn from the Excess Crude Account (ECA) for the execution of the failed National Integrated Power Projects (NIPPs).

Godwin Emefiele, the apex bank chief, is yet to provide the details on the withdrawals as earlier alleged by the Accountant General of the Federation. The funds had been withdrawn from the ECA between 2005 and 2007 to finance the NIPPs. Read more

The Nigerian government Tuesday said Air Peace would recall a number of pilots it fired. Air Peace had earlier in August declared the dismissal of the pilots being part of the company’s actions to mitigate the impact of the coronavirus pandemic on its operations.

The National Association of Airline Pilots and Engineers (NAAPE) had issued the airline a two-week ultimatum to recall the sacked employees or face industrial action. Read more

The Federal Inland Revenue Service (FIRS) generates N3 billion every week through stamp duty collection, Muhammad Nami, the fiscal authority head, said on Tuesday.

Read also: BUSINESS ROUNDUP: NRC generates N3bn from rail services; Fuel pump price goes up; See other stories that made our pick

Nami, who spoke while appearing before the House of Representatives Committee on Finance to resolve the conflict between the FIRS and the Nigerian Postal Service (NIPOST) over stamp duty collection, stated that the revenue had been generated weekly from May to date from Deposit Money Banks (DMBs). Read more

On NSE ROUNDUP: Market adds N82bn amidst improved liquidity

The Nigerian Stock Exchange (NSE) posted losses on Monday, Tuesday and Friday and recorded gains on Wednesday and Thursday. The liquidity seen in the market this week was higher than that of last week as volume of trade rose by 25%.

All the key market performance indicators closed higher. However, a negative market breadth was recorded this week as 29 losers emerged against 33 losers. The All Share Index (ASI) and the Market Capitalisation simultaneously advanced by 0.63% to 25,199.84 basis points and N13.146 trillion respectively. Read more

MEANWHILE, the world’s wealthiest, Jeff Bezos has expanded his portfolio with the launch of an online pharmacy in India. Being a new path for the ecommerce giant Amazon, other similar companies within the ecommerce industry, will, therefore, take cue from the Jeff Bezos’ company, following its milestone in the days ahead.

Analysts have, however, warned against blind market fellowship. While Amazon, being an international market leader, might have the resources and financial capacity to experiment the new venture, local companies, such as Konga and Jumia, on the other hand, might have to understudy the terrain to act.

As much as risk is a common feature of business, strategic planning and venture evaluation go a long way to balance the equation. Hence, beyond the new normal brought about by the COVID-19 pandemic, any local company that would like to domesticate the Amazon Pharmacy venture in Nigeria must answer few questions: Has Nigerians fully adapted to the ecommerce culture? Will our medics trust a digital store, and consider a switch? What politics will make or mar this ambition in Nigeria?

Thanks for joining the roundup this week. See you next week for another serving of Business Roundup. Don’t forget, for the latest news and updates from around the globe, keep reading Ripples Nigeria.

Join the conversation

Opinions

Support Ripples Nigeria, hold up solutions journalism

Balanced, fearless journalism driven by data comes at huge financial costs.

As a media platform, we hold leadership accountable and will not trade the right to press freedom and free speech for a piece of cake.

If you like what we do, and are ready to uphold solutions journalism, kindly donate to the Ripples Nigeria cause.

Your support would help to ensure that citizens and institutions continue to have free access to credible and reliable information for societal development.

Donate Now