• Thursday, March 28, 2024
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WEEK AHEAD: Infrastructure repairs, petrol price uncertainty

Infrastructural Development Kicks Week Off

The new week would be flagged off by developments of government infrastructure projects as the Lagos State Government commences repairs on the failed portions of the Lagos-Badagry Expressway on Monday, March 29, 2021. The repairs which will last for a period of 8 weeks is expected to be completed on May 31, 2021.

This disclosure was contained in a statement issued by The Honourable Commissioner for Transportation, Dr Frederic Oladeinde, on Saturday, March 27, 2021. While identifying the affected portions to include Maza-Maza, Signal Barracks and Mile 2, Oladeinde said that a traffic diversion plan had been worked out with adequate traffic management measures in place to ease movement and minimise the expected inconveniences.

The Commissioner advised motorists heading towards Apapa from Maza-Maza to use the newly constructed slip road by the Total Filling station to connect the ramp and access Apapa.

Oladeinde in his statement pointed out to the general public that “Traffic heading to Orile/Suru from Maza-Maza will be diverted to the opening at Total Filling Station to link Toll lane and continue the movement to Orile. Such motorists could also go through the opening at Signal Barracks to access the Service lane from toll lane, to continue their journey.

“Motorists going to Oshodi from Maza-Maza are also advised to use the opening at Total Filling station to connect toll lane and drive down to the opening after mile 2 underpass to utilise the opening before Signal Barracks and access the ramp with counterflow to Apapa-Oworonshoki Expressway to continue their journey to Oshodi.

“Those coming from Oshodi to Orile will be directed to Mile 2, Oke to connect the ramp to Signal Barracks and continue their journey to Orile, while those going back to Oshodi should make a U-turn and continue their trip to Oshodi.

“Other motorists coming from Otto Wharf should use the opening before Signal Barracks and connect the toll lane and continue their journey to Alaba/Orile,” he said.

The Commissioner warned the general public against the assault of Lagos State Traffic Management Authority (LASTMA) officials who would be deployed to manage traffic on that axis as anyone caught in such an act will be decisively dealt with.

The reconstruction of the Lagos-Badagry expressway, which began in 2010, involves the widening of the road from 4 lanes to 10 lanes for vehicles, and a new mass transit line that will operate in the median.

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The project, which has faced a series of delays, also includes a light rail project with train stations. It can be recalled that about a month ago, the Lagos State Government set up a 7-man ad-hoc committee to be headed by the Deputy Governor of the state, Dr Obafemi Hamzat, with a mandate to have a dialogue with the Federal Government and secure a guarantee for quick completion of ongoing work on the Okokomaiko-Seme Border stretch of the Lagos-Badagry Expressway.

N238 Per Litre Might be Anthem of The Week

It appears the Federal Government may increase the fuel pump price to between N211 – N238/litre soon, as the Nigerian National Petroleum Corporation (NNPC) has stated that the corporation may no longer carry the burden of the actual market price.

This was disclosed by Mele Kyari, Group Managing Director, NNPC during a press briefing organised by the Ministry of Petroleum Resources on Thursday.

He explained that the actual market price of Premium Motor Spirit, popularly called Petrol, should be between N211 and N234/litre and that means consumers are not paying the market price.

Kyari said, “NNPC importing PMS at market price & selling at N162/L. The actual market price should be between N211 and N234/L. Meaning is that consumers are not paying the market price. The difference is being carried in the books of NNPC, and we may no longer be able to carry that burden.

NNPC currently sole importer of PMS, and we’re trying to exit the underpriced sale of PMS.

He added that FG is vigorously trying to deepen Autogas to deliver alternative fuel for vehicles, which should cost as low as half the price per litre compared to PMS.

In light of this fact, it is uncertain as to when this development would take effect. However, the coming week MIGHT experience pump price fluctuations across various petrol distribution stations (Filling stations) and this anticipated increase in pump price might have a subsequent impact on prices of consumer commodities nation-wide.

The Numbers Just Keep Rising

Despite the arrival and distribution of the COVID-19 vaccines over 2 weeks ago, the spread of novel Virus in Nigeria continues to record significant increases as the latest statistics provided by the Nigeria Centre for Disease Control reveal Nigeria now has 162,489 confirmed cases. On the 27th of March 2021, 101 new confirmed cases and 2 deaths were recorded in Nigeria. According to the NCDC, the 113 new cases are reported from 11 states- Lagos (32), Abia (16), Ebonyi (24), Abuja (10), Bayelsa (6), Rivers (6), Bauchi (5), Jigawa (4), Oyo (3), Akwa Ibom (3), Osun (4).

Meanwhile, the latest numbers bring Lagos state total confirmed cases to 57,501, followed by Abuja (19,603), Plateau (9,019), Kaduna (8,908), Rivers (6,899), Oyo (6,835), Edo (4,873), Ogun (4,613), Kano (3,897), Ondo (3,168), Kwara (3,070), Delta (2,599), Osun (2,522), Nasarawa (2,318), Enugu (2,221), Katsina (2,082), Gombe (2,030), Ebonyi (1,993), Anambra (1,909), Akwa Ibom (1,759), and Abia (1,649).

Imo State has recorded 1,642 cases, Bauchi (1,516), Borno (1,327), Benue (1,188), Adamawa (942), Niger (930), Taraba (910), Ekiti (857), Bayelsa (863), Sokoto (773), Jigawa (501), Kebbi (438), Cross River (357), Yobe (293), Zamfara (231), while Kogi state has recorded 5 cases only.

Considering the pace at which the vaccines are being distributed, plus the trust deficit by the general populace towards receiving the jabs, the numbers a most likely to increase in the coming week.

Naira Maintains Threshold

Naira depreciated against the US Dollar at the Investors and Exporters window on Thursday to close at N409.75/$1. This represents a N1 decline when compared to N408.75/$1 recorded on Wednesday, 24th March 2021. The opening indicative rate closed at N409.21 to a dollar on Thursday. This represents an 80 kobo gain when compared to N409.78/$1 recorded on Tuesday.

Also, an exchange rate of N411.4 to a dollar was the highest rate recorded during intra-day trading before it closed at N409.75/$1. It also sold for as low as N393/$1 during intra-day trading. Forex turnover at the Investor and Exporters (I&E) window increased significantly by 394.4% on Thursday, 25th March 2021.

This fluctuation within this threshold is expected to continue in the coming week.

Persistent Decline in Oil Price

Oil prices fell further on Thursday as a result of new coronavirus restrictions across major countries in Europe.

Brent Crude traded at $62.45 per barrel, a significant variance from the projected $70 per barrel made by Goldman Sach for the first quarter.

The prices of crude continue to dip further despite a tanker mishap in the Suez Canal, which blocked tanker traffic between Wednesday and Thursday. Brent slipped by about 4% during intra-day trading on Thursday while WTI Crude fell by 4.58% during the same period as fear of a resurgent coronavirus in Europe dampened demand for crude oil in the market.

This gradual decline that commenced 2 weeks ago is anticipated to continue in the coming week.

External Reserve RecordsConsecutive Increase

Nigeria’s external reserve increased by 0.07% on Wednesday 24th, March 2021 to stand at $34.62 billion. This represents the fourth consecutive day increase, gaining a total of $206.4 million from $34.42 billion recorded as of March 18, 2021, to $34.62 billion as of 24th March 2021. Nigeria’s reserve had lost $957.26 million year-to-date before recording increases in the past four days, which indicates that the recent oil price rally is beginning to reflect in the country’s foreign reserve. This recent development shows promise of sustainability in the coming week.