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FG SET TO REMOVE ELECTRICITY SUBSIDY, NIGERIANS TO FACE HIGHER TARIFFS

CapitalTimesNews / 3 weeks

2 min read

The Federal Government has announced plans to remove electricity subsidies, warning Nigerians to prepare for higher tariffs. Minister of Power, Adebayo Adelabu, stated that the country’s economy can no longer sustain subsidies, emphasizing that “our economy cannot sustain subsidies indefinitely.” Adelabu made this declaration at a meeting with the Chairmen of Nigeria’s Generating Companies (Gencos) in Abuja, where he also highlighted the government’s commitment to providing targeted subsidies for economically disadvantaged Nigerians. “Citizens must pay the appropriate price for the energy consumed. The Federal Government will continue to provide targeted subsidies for economically disadvantaged Nigerians,” Adelabu said. The move is aimed at addressing the N4 trillion debt owed to Gencos, which has been hindering power generation in the country. Adelabu outlined a plan to settle the debt using a combination of cash payments and financial instruments like promissory notes. “There is a need to pay a substantial amount of the debt in cash. At the minimum, let us pay a substantial amount, then ask for a debt instrument in promissory notes to pay the rest,” he explained. According to the Nigerian Electricity Regulatory Commission (NERC), the average real tariff stands at N116.18 per kilowatt-hour, while consumers are currently charged N88.2 per kilowatt-hour. The subsidy cost per kilowatt-hour is represented by the gap between the real tariff and the average collection, which amounted to N27.97 kWh in February. All NESI customers, except for the 15% classified as Band A, benefit from a subsidy. The government’s decision to remove electricity subsidies has sparked concerns about the impact on Nigerians already grappling with rising living costs. Adelabu, however, assured that the government is committed to resolving the debt crisis and stabilizing the sector. “We recognise the urgency of this matter. The government is committed to resolving this debt to stabilise the sector and prevent further crisis,” he said.

ECB RATE CUT ALL BUT CERTAIN AS GLOBAL MARKETS REACT TO TRUMP’S TARIFF ANNOUNCEMENT

CapitalTimesNews / 1 month

2 min read

The European Central Bank is expected to cut interest rates for the seventh time this year, with economists predicting a 25 basis point reduction to 2.25%. According to ECB President Christine Lagarde, the bank’s monetary policy stance remains attentive to market movements, particularly exchange rates, which impact inflation and economic growth. Lagarde emphasized that the ECB doesn’t target specific exchange rates but monitors them closely. The euro’s trade-weighted exchange rate recently hit an all-time high, making imports cheaper and potentially lowering inflation. However, this could slow economic growth as exports become more expensive. “We remain attentive to movements since they impact inflation and need to be factored into economic models,” Lagarde said. She added that the ECB is always ready to act and has a solid track record in devising new instruments when required. “In Europe and in the euro area in particular, it can be observed that market infrastructures and… the bond market (are) functioning in an orderly fashion,” Lagarde noted. Traders are pricing in a 25 basis point cut, a move that was previously seen as uncertain but gained momentum after Trump’s tariff announcement. Societe Generale suggested a larger 50 basis point cut could be possible to exit a restrictive monetary policy stance. The ECB’s interest rate decisions are crucial in shaping the eurozone’s economic landscape.

TRUMP DECLARES ‘LIBERATION DAY’ WITH NEW TARIFFS AMID ECONOMIC CONCERNS AND GLOBAL BACKLASH

CapitalTimesNews / 2 months
0
2 min read

President Donald Trump announced Wednesday as “Liberation Day,” marking the rollout of new tariffs he claims will free the U.S. from reliance on foreign goods. The plan, criticized by economists as a risk to household budgets and global economic stability, includes import taxes on autos, pharmaceuticals, copper, lumber, and goods from countries like China, Canada, and Mexico. Trump framed the tariffs as a corrective to decades of unfair trade practices, alleging foreign nations have “taken so much out of our country.” He invited CEOs to the White House to highlight investments in U.S. projects aimed at circumventing import taxes. “This is the beginning of Liberation Day in America,” Trump told reporters, adding he is “open” to deals if other nations “get something for it.” The 25% auto tariffs, announced last week, could raise vehicle costs by an estimated $4,711 per car, according to economist Art Laffer. Trump dismissed concerns about higher prices, telling NBC News, “I hope they raise their prices, because if they do, people are gonna buy American-made cars.” Other tariffs target Venezuelan oil imports, Chinese goods linked to fentanyl production, and Canadian and Mexican products over drug smuggling and immigration concerns. White House trade adviser Peter Navarro projected the tariffs could generate $700 billion annually, calling them a tool to force “respect” from trading partners. Critics, however, warn of broader economic fallout. Goldman Sachs forecasts U.S. economic growth could slow to 0.6% this quarter, while Columbus, Ohio, Mayor Andrew Ginther warned median home prices might rise by $21,000 due to pricier materials. Global leaders condemned the measures. Canadian Prime Minister Mark Carney said the tariffs shattered the U.S.-Canada partnership, while French President Emmanuel Macron called them “not coherent” and inflationary. China’s Foreign Ministry spokesperson Guo Jiakun stated, “There are no winners in trade wars,” emphasizing harm to the global trading system. Trump has repeatedly invoked “Liberation Day,” previously applying the term to his 2025 inauguration and the 2024 election. Experts like Northwestern University’s Phillip Braun dismissed the latest move, saying, “It’s going to hurt the U.S. economy. Other countries are going to retaliate.” As markets react to the uncertainty, Treasury Secretary Scott Bessent suggested tariffs might be a “one-time adjustment,” but analysts fear prolonged measures could ripple into services and insurance costs. With consumer confidence slipping and retaliation looming, the administration’s tariff strategy faces mounting scrutiny at home and abroad.

TRUMP THREATENS EU WITH 25% TARIFFS, CLAIMS BLOC WAS FORMED TO “SCREW” THE US

CapitalTimesNews / 3 months

2 min read

US President Donald Trump has announced plans to impose 25% tariffs on the European Union “very soon”, citing a trade deficit of around $300 billion (£237 billion) and claiming the EU was “formed in order to screw the United States”. Trump made these remarks during his first cabinet meeting at the White House since his inauguration in January, with Elon Musk, the world’s richest man, in attendance. Trump stated, “We have made a decision, we’ll be announcing it very soon and it will be 25% generally speaking and that will be on cars and all other things… They don’t accept our cars, they don’t accept essentially our farm products. They use all sorts of reasons why not, and we accept everything from them.” When asked about potential retaliation from the EU, Trump replied, “They can’t, I mean, they can try, but they can’t… They can retaliate, but it cannot be a successful retaliation, because we just go cold turkey, we don’t buy anymore. If that happens, we win.” This threat comes amid fragile relations between the US and Europe, with the Trump administration seemingly favouring Moscow over Kyiv in its efforts to bring about peace in Ukraine. Trump’s comments have sparked concerns among European leaders, with Ukrainian President Volodymyr Zelenskyy accusing Trump of living in a Russian-made “disinformation space” after being called a “dictator with no elections” by the US president.

CHINA RETALIATES WITH TARIFFS, ANTITRUST PROBE AGAINST GOOGLE, AND EXPORT CONTROLS ON CRITICAL MINERALS

Nicolas Adekeye / 4 months

2 min read

China has announced retaliatory tariffs on select American imports and an antitrust investigation into Google, just minutes after a sweeping levy on Chinese products imposed by U.S. President Donald Trump took effect. The tariffs include a 15% levy on coal and liquefied natural gas products, as well as a 10% tariff on crude oil, agricultural machinery, and large-engine cars imported from the U.S. The State Council Tariff Commission stated that “the U.S.’s unilateral tariff increase seriously violates the rules of the World Trade Organization…it is not only unhelpful in solving its own problems, but also damages normal economic and trade cooperation between China and the U.S.” China also announced export controls on several critical minerals, including tungsten, tellurium, bismuth, molybdenum, and indium, which are essential to U.S. economic or national security. Philip Luck, an economist at the Center for Strategic and International Studies, noted that “they have a much more developed export control regime…we depend on them for a lot of critical minerals…they could put some significant harm on our economy.” Additionally, China placed two American companies, PVH Group and Illumina, on an unreliable entities list, which could bar them from engaging in China-related import or export activities and from making new investments in the country. George Chen, managing director for The Asia Group, stated that “it’s almost like telling American companies, what your government is doing is bad, you need to tell the government that if you add more tariffs or hurt U.S.-China relations at the end of the day it’ll backfire on American companies.” The move comes as Trump plans to talk with Chinese President Xi Jinping in the next few days, amidst an escalating trade war between the two countries. Analysts believe that China is better prepared this time, with a slew of measures that go beyond tariffs and cut across different sectors of the U.S. economy.

TRUMP AGREES TO 30-DAY PAUSE ON TARIFF THREATS AGAINST MEXICO AND CANADA

Nicolas Adekeye / 4 months

3 min read

In a surprise move, President Donald Trump agreed to a 30-day pause on his tariff threats against Mexico and Canada, providing a temporary reprieve from a potential trade war that had investors, companies, and political leaders on edge. The pause comes after a tumultuous few days that saw Trump announce plans to impose 25% tariffs on imports from Mexico and Canada, with an additional 10% tariff on Canadian oil, natural gas, and electricity. According to Trump, the pause will allow for negotiations to take place, with the goal of reaching a final economic deal with Canada. “I am very pleased with this initial outcome, and the Tariffs announced on Saturday will be paused for a 30-day period to see whether or not a final Economic deal with Canada can be structured,” Trump posted on social media. “FAIRNESS FOR ALL!” Canadian Prime Minister Justin Trudeau also announced the pause, stating that his government would name a fentanyl czar, list Mexican cartels as terrorist groups, and launch a “Canada-U.S. Joint Strike Force to combat organized crime, fentanyl, and money laundering.” Trudeau said the pause would occur “while we work together.” The agreement between the U.S. and Mexico was reached after a “very friendly conversation” between Trump and Mexican President Claudia Sheinbaum. Sheinbaum announced that Mexico would reinforce its border with 10,000 members of its National Guard and that the U.S. government would commit to stopping the trafficking of high-powered weapons to Mexico. Despite the temporary reprieve, the drama over Trump’s tariff threats is far from over. Trump has already indicated that he plans to announce taxes on imports from the European Union, and the global economy remains uncertain about whether a crisis has been averted or if a possible catastrophe could still be coming in the weeks ahead. As Trump noted, “Tariffs are very powerful both economically and in getting everything else you want.” He added, “Tariffs for us, nobody can compete with us because we’re the pot of gold. But if we don’t keep winning and keep doing well, we won’t be the pot of gold.” The situation has left many uncertain, including Jaime Bricker, the tourism director for Skagway, Alaska, who said that visitors from Canada are an important part of her community’s economy and the uncertainty around the tariffs has been difficult. “It seems to be a fluid situation and it’s difficult to know just how impactful it will be without knowing for certain what could come in the days ahead,” she said.

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FG SET TO REMOVE ELECTRICITY SUBSIDY, NIGERIANS TO FACE HIGHER TARIFFS

ECB RATE CUT ALL BUT CERTAIN AS GLOBAL MARKETS REACT TO TRUMP’S TARIFF ANNOUNCEMENT

TRUMP DECLARES ‘LIBERATION DAY’ WITH NEW TARIFFS AMID ECONOMIC CONCERNS AND GLOBAL BACKLASH

TRUMP THREATENS EU WITH 25% TARIFFS, CLAIMS BLOC WAS FORMED TO “SCREW” THE US

CHINA RETALIATES WITH TARIFFS, ANTITRUST PROBE AGAINST GOOGLE, AND EXPORT CONTROLS ON CRITICAL MINERALS

TRUMP AGREES TO 30-DAY PAUSE ON TARIFF THREATS AGAINST MEXICO AND CANADA

MOTHER OF SEVEN LOOKS 30 AT.

PRESIDENT TINUBU CONGRATULATES MAURITANIAN PRESIDENT ON.

ARGENTINE COURT DECLARES MISTRIAL IN DIEGO.

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