🎬Badmington?

Good morning. And Happy Telephone Tuesday! For those wondering what that is, it’s the day when the most number of phone calls are made in a 24-hour span globally.

Also, a perfect time to raise you the corniest telephone joke ever: “When Alexander Graham Bell invented the telephone, he went to the bathroom and when he got back, he had 3 missed calls from Chuck Norris.”

— Edna Akanni, Geraldine Ndzomo.

ECONOMY

Yes, Nigeria’s fuel scarcity is here to stay

Not the kind of long-term commitment Nigerians would have wanted, but a $6 billion debt reported by the NNPCL, the nation’s main importer of fuel means Nigeria’s fuel scarcity is in for the long haul.

Two days ago, the agency acknowledged reports stating that it owed its suppliers and could no longer keep up with payments at the current Naira exchange rate.

This puts an end to a two-month-long speculation exercise as to why there continues to be no fuel available to citizens.

Timing, timing, timing. 15 months ago, the Nigerian government decided to take out costly (but depending on who you ask, beneficial) fuel subsidies that kept the fuel prices to Nigerians lower than any other country at the time. However, similarly, it floated the Naira, a move that has seen the currency’s value compete with only the Zimbabwe Dollar in a game of who can fall faster than a house of cards.

The resulting devaluation has made the country unable to keep up with importation costs and led to an untimely reintroduction of the subsidy.

Many experts say, the initial withdrawal was too sudden and should have been phased out.

Who else is feeling it? Nigeria’s neighbors who in the past benefitted from illicit smuggling of cheap fuel have seen their local fuel prices soar alongside. Despite these countries long claiming to not consume Nigerian petrol, the surge in fuel prices locally (around 40% since the subsidy removal) is now a testament to the fact that Nigeria has for years subsidized petrol prices across these countries.

Looking ahead. Nigeria’s government is betting the start of gasoline production by billionaire Aliko Dangote’s 650,000-barrel-per-day refinery will reduce the need for imports. The refinery however has yet to keep to any of the production start dates it has given in the past. A trend, seen even with the government-owned refineries.— EA.

TRENDING

SNIPPETS

Time to reap. Ghana's cocoa regulator plans to increase the state-guaranteed price paid to its cocoa farmers for the 2024/25 crop season by nearly 45%, Reuters reported on Monday.

Finally. One of Libya’s most wanted human traffickers, Abdel Rahman-Milad was killed Sunday in the capital, Tripoli, Libyan officials said, fueling tension in the western part of the North African country.

Too hot for summer. Morocco plans to entice tourists away from its beaches and nightclubs to….camel rides. They say it’s a more sustainable way of having fun.

Business trip. China is hosting African Heads of State in Beijing for the 9th year running to discuss continued loan business prospects on the continent post-COVID.

Badminton? Yes, badminton. Africa’s first medal at the Paralympics has come from Nigerian teenager, Mariam Bolaji who claimed the bronze medal in the women’s SL3 category for para badminton.