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Australia plans major spending plus surplus in 3 years

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Australia’s government announced Tuesday plans for major infrastructure spending including a new Sydney airport and an inland railway linking two major cities, while sticking to its goal of restoring a budget surplus in three years through higher taxes.

Treasurer Scott Morrison said more than 75 billion Australian dollars ($56 billion) would be spent on infrastructure in the next decade.

“It is important to invest in infrastructure, but we have to make the right choices on projects as part of a broader economic growth strategy,” he told Parliament.

The government plans to spend AU$5.3 billion ($3.9 billion) on building a second international airport in Sydney which is due to open in 2016. The government also plans an AU$8.4 billion ($6.2 billion), 1,700 kilometer (1,000 mile) new railway corridor between Melbourne, Australia’s second largest city, and the third largest city, Brisbane. Work on both projects is to begin in the fiscal year which starts July 1.

The government also plans to increase taxes and charges.

A new levy on Australia’s five largest banks was expected to raise about AU$1.5 billion ($1.1 billion) a year.

The Australian Bankers Association described the new tax as “inherently risky,” blaming speculation that the measure might be included the budget for banks losing AU$14 billion ($10 billion) in value on the Australian stock market earlier Tuesday.

The levy that Australians pay for their universal health care system would increase from 2 percent of their income to 2.5 percent to help pay for a newly established disability insurance scheme.

The center-left opposition Labor Party accused the conservative government of delivering a tax cut for millionaires and a tax hike for every working Australian. A 2 percent so-called Temporary Budget Repair Levy paid on incomes exceeding AU$180,000 ($133,000) over three years ends in July.

Universities will get 2.5 percent less government funding over the next two years and students will have to pay more for their degrees.

Employers will pay an annual levy of up to AU$1,800 ($1,322) for every foreign worker they employ on a temporary visa.

The government estimated the deficit for the current fiscal year ending June 30 will be AU$37.6 billion ($27.6 billion), AU$500 million ($367 million) worse than was forecast a year ago.

Revenue is expected to grow 7.8 percent next year to AU$444.4 billion ($326 billion), and the deficit to shrink to AU$29.4 billion ($21.6 billion).

The government expects growth will increase from 1.75 percent in the current fiscal year to 2.75 percent next year. Unemployment is expected to stay steady at 5.75 percent.

The government gave up on making cuts in health and education spending that the Senate has been rejecting as unfair to the poor since the ruling coalition’s first budget in 2014.

Major ratings agencies have warned that Australia risks losing its coveted triple-A credit rating unless the government can cut spending.

Morrison said he expected the agencies would be impressed that his latest budget maintained its trajectory toward a surplus in three years.

The government plans to increase defense spending to 2 percent of GDP by 2020-21 — three years ahead of its initial target. That may please U.S. President Donald Trump, who has urged America’s allies to increase their military spending.

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Economy

Import Licence: NNPCL Asks Court To Strike Out Dangote Refinery’s Suit 

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Import Licence: NNPCL Asks Court To Strike Out Dangote Refinery’s Suit

The Nigeria National Petroleum Corporation Limited (NNPCL) has asked a Federal High Court in Abuja to strike out a suit filed by Dangote Petroleum Refinery and Petrochemicals FZE, describing it as “incompetent.”

The NNPCL, in a notice of preliminary objection filed by its team of lawyers led by Kehinde Ogunwumiju, SAN, before Justice Inyang Ekwo, argued that the suit was premature.

The application, marked: FHC/ABJ/CS/1324/2024 dated and filed on Nov. 15, was sighted on Wednesday.

NNPCL seeks two orders, which include an order of the honourable court striking out the suit for lack of jurisdiction and alternatively, an order striking out the name of the 2nd defendant (NNPCL) from the suit.

Giving a six-ground argument, the corporation argued that Dangote Refinery lacked locus standi to institute the suit.

“The plaintiff’s suit is premature. The plaintiff’s suit discloses no cause of action. The 2nd defendant is not a competent party. The plaintiff’s suit is incompetent. This honourable court lacks the jurisdiction to hear this suit,” the NNPCL said.

In the affidavit in support of the application deposed to by Isiaka Popoola, a clerk in the law firm of Afe Babalola & Co, counsel to the NNPCL, he said one of their lawyers, Esther Longe who perused Dangote’s originating summons, affidavit and written address told him that an examination of the processes showed that NNPC sued by the refinery was a non-existent entity.

Popoola averred that the court lacked jurisdiction over the 2nd defendant sued as NNPC.

“This 2nd defendant in this suit as consistently seen on the face of the plaintiff’s originating summons, the affidavit in support and the written address as “Nigeria National Petroleum Corporation Limited (NNPC)”

“A simple search on the CAC website shows that there is no entity called “Nigeria National Petroleum Corporation Limited (NNPC).”

 “The printout of the said search is hereby attached and marked as Exhibit A,” he said.

According to Popoola, the 2nd defendant/objector is not the same as the 2nd defendant sued by the plaintiff.

“The registered name of the 2nd defendant/objector is Nigerian National Petroleum Company Limited and this is the only name it can be sued by,” he added.

He said the NNPCL as sued by the refinery in the instant suit, is not a competent party or a juristic person.

Popoola, who averred that the suit was incompetent and ought to be struck out, prayed the court to grant their application in the interest of justice.

It had been earlier reported that three oil marketers had also prayed the court to dismiss the suit.

The oil marketers, in a joint counter affidavit marked: FHC/ABJ/CS/1324/2024 filed on Nov. 5 in response to Dangote Refinery’s originating summons, told Justice Ekwo that granting that application would spell doom for the country’s oil sector.

According to them, the plan to monopolise the oil sector is a recipe for disaster in the country.

The three marketers; AYM Shafa Limited, A. A. Rano Limited and Matrix Petroleum Services Limited, in their response, said the plaintiff did not produce adequate petroleum products for the daily consumption of Nigerians.

Besides, they argued that there was nothing placed before the court to prove the contrary.

Dangote Refinery had sued Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and Nigeria National Petroleum Corporation Limited (NNPCL) as 1st and 2nd defendants.

Also listed as 3rd to 7th defendants respectively in the originating summons dated Sept. 6 are AYM Shafa Limited, A. A. Rano Limited, T. Time Petroleum Limited, 2015 Petroleum Limited, and Matrix Petroleum Services Limited.

It prayed the court to nullify import licences issued by NMDPRA to the NNPCL and five other companies to import refined petroleum products.

The company also prayed the court to declare that NMDPRA violated Sections 317(8) and (9) of the Petroleum Industry Act (PIA) by issuing licenses for the importation of petroleum products.

It stated that such licenses should only be issued in circumstances where there is a petroleum product shortfall.

It also urged the court to declare that NMDPRA violates its statutory responsibilities under the PIA for not encouraging local refineries such as the company.

The company equally sought N100 billion in damages against NMDPRA for allegedly continuing to issue import licences to NNPCL and the five companies for importing petroleum products.

These it said are Automotive Gas Oil (AGO) and Jet Fuel (aviation turbine fuel) in Nigeria, “despite the production of AGO and Jet-A1 that exceeds the current daily consumption of petroleum products in Nigeria by the Dangote Refinery.”

Justice Ekwo had fixed Jan. 20, 2025, for the report of settlement or service.

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PETROL: ‘Be Wary Of Substandard Product Dumping’, Dangote Refinery Tells Nigerians

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PETROL: 'Be Wary Of Substandard Product Dumping', Dangote Refinery Tells Nigerians

…Says citizens’ health and vehicle longevity are seriously at risk!

The Dangote Refinery on Sunday warned that Nigerians may soon begin to buy substandard petrol, without much concern for either the citizen’s health or the longevity of their vehicles, except care is taken to prevent low products dumping by those open to connive with certain international traders.

The Group’s image maker and spokesman, Anthony Chiejina gave the warning, saying the group was constrained to raise the alarm, despite its desire to refrain from engaging in any media fights.

“We have lately refrained from engaging in media fights but we are constrained to respond to the recent misinformation being circulated by IPMAN, PETROAN, and other associations. 

“Both organisations claim that they can import PMS at lower prices than what is being sold by the Dangote Refinery. We benchmark our prices against international prices and we believe our prices are competitive relative to the price of imports”, Chiejina stated, stressing that the issue on ground was not about being able to land relatively cheaper petrol on ground, but the quality of such products.

“If anyone claims they can land PMS at a price cheaper than what we are selling, then they are importing substandard products and conniving with international traders to dump low-quality products into the country, without concern for the health of Nigerians or the longevity of their vehicles. Unfortunately, the regulator (NMDPRA) does not even have laboratory facilities which can be used to detect substandard products when imported into the country.

“Post deregulation, NNPC set the pace by selling PNS to domestic marketers at N971 per litre for sale into ships and at N990 for sale into trucks. This set the benchmark for our pricing and we have even gone lower to sell at N960 per litre for sale into ships while maintaining N990 per litre for sale into trucks.

“In good faith, and the interest of the country, we commenced sales at these prices without clarity on the exchange rate that we will use to pay for the crude purchased.

“At the same time, an international trading company has recently hired a depot facility next to the Dangote Refinery, intending to use it to blend substandard products that will be dumped into the market to compete with Dangote Refinery’s higher quality production.

“This is detrimental to the growth of domestic refining in Nigeria. We should point out that it is not unusual for countries to protect their domestic industries to provide jobs and grow the economy. For example, the US and Europe have had to impose high tariffs on EVs and microchips to protect their domestic industries.

“While we continue with our determination to provide affordable, good quality, domestically refined petroleum products in Nigeria, we call on the public to disregard the deliberate disinformation being circulated by agents of people who prefer for us to continue to export jobs and import poverty”, the Group Chief Branding and Communications Officer further said.

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YULETIDE Decorations: LASG To Divert Traffic At Ajose Adeogun

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YULETIDE Decorations,: LASG To Divert Traffic At Ajose Adeogun

The Lagos State Government will divert Traffic, away from a section of Ajose Adeogun Street in Victoria Island, for the mounting of end-of-the-year decoration, for a duration of three weekends starting from Saturday 19th October 2024.

The aforementioned exercise, according to Commissioner for Transportation, Oluwaseun Osiyemi,  will be carried out in three phases with each phase focusing on different sections of the street. 

To this end, the following alternative routes have been mapped out for motorists during the cause of the mounting; 

 During the First Phase which will cover Jubril Martins to Chicken Republic – (Saturday, 19th and Sunday, 20th October 2024)

Traffic inward Eko-Hotel Roundabout will be diverted to the other half (existing section) of Ajose Adeogun Street by VCP Hotel to form contra-flow traffic and exit at Eko-Hotel Roundabout to continue journeys.

Alternatively, Traffic inward to Eko-Hotel Roundabout from VCP Hotel will be diverted through Jubril Martins into Muri Okunola to link Patience Coker and access Ajose Adeogun Street to connect destinations.

During the Second Phase which will cover Molade Okoya Thomas to Mounis Bashorun section – (Saturday, 26th and Sunday, 27th October 2024). 

Traffic inward Ajose Adeogun Street from Eko-Hotel Roundabout will be diverted to a right turn into Molade Okoya Thomas to link Younis Bashorun to access Ajose Adeogun Street to continue journeys. 

During the Third phase of the project spanning 10 meters inward Ajose Adeogun (Saturday, 2nd November, 2024).

Motorists from Adetokunbo Ademola Street will maintain a lane movement for about 10 metres into Ajose Adeogun Street to connect their destinations, while Motorists inward Eko-Hotel Roundabout on Ajose Adeogun Street will maintain a lane movement for about 10 metres into Eko-Hotel Roundabout.

The Lagos State Commissioner for Transportation, Mr Oluwaseun Osiyemi while imploring Motorists to note the ease of movement plan assured that the State’s Traffic Management Authority will be on ground to manage vehicular activities along the corridor to minimise inconveniences.

The Commissioner therefore advised Motorists to be patient, as the Partial closure is part of the traffic management plans for the commencement of End of Year Decoration of Ajose Adeogun Street, Victoria Island, Lagos, by Zenith Bank PLC.

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