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US sues Visa for monopolising debit card market

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US sues Visa for monopolising debit card market

The United States (US) department of justice (DoJ) has filed a lawsuit against Visa, accusing the company of illegally monopolising the debit card market.

In a statement on Tuesday, the justice department said the monopolisation violates Sections 1 and 2 of the Sherman Act, adding that the lawsuit was filed in the US district court for the southern district of New York.

The DoJ alleged that Visa illegally maintains a monopoly over debit network markets by using its dominance to thwart the growth of its existing competitors and prevent others from developing new and innovative alternatives.

“According to the complaint, more than 60 percent of debit transactions in the US run on Visa’s debit network, allowing it to charge over $7 billion in fees each year for processing those transactions,” the justice department said.

“The complaint further alleges that Visa illegally maintains its monopoly power by insulating itself from competition.

“For example, Visa wields its dominance, enormous scale, and centrality to the debit ecosystem to impose a web of exclusionary agreements on merchants and banks.

“These agreements penalize Visa’s customers who route transactions to a different debit network or alternative payment system.

“In so doing, the complaint alleges, Visa locks up debit volume, insulates itself from competition, and smothers smaller, lower-priced competitors.

“Visa also induces would-be competitors to become partners instead of entering the market as competitors by offering generous monetary incentives and threatening punitive additional fees.

“As the complaint alleges, Visa coopted the competition because it feared losing share, revenues, or being displaced by another debit network altogether.”

‘CUSTOMERS PAID THE PRICE FOR VISA’S MONOPOLY’

Also, Merrick Garland, US attorney-general, alleged that Visa has unlawfully amassed the power to extract fees that far exceed what it could charge in a competitive market.

“Merchants and banks pass along those costs to consumers, either by raising prices or reducing quality or service. As a result, Visa’s unlawful conduct affects not just the price of one thing – but the price of nearly everything,” Garland said.

Benjamin Mizer, principal deputy associate attorney-general, said anticompetitive conduct by corporations like Visa leaves the American people and the entire economy worse off.

“Today’s action against Visa reminds those who would stifle competition rather than competing on price or investing in innovation that the Justice Department will never hesitate to enforce the law on behalf of the American people,” Mizer said.

Doha Mekki, principal deputy assistant attorney-general of the DoJ’s antitrust division, said Visa fears competition and innovation, opting instead for unlawful cooperation and monopolisation.

Mekki said the lawsuit holds Visa accountable for its conduct in a market that forms the backbone of American commerce.

“Visa abuses its power over its customers and buys off would-be rivals at the expense of American consumers, merchants, banks, and the competitive process itself,” Mekki said.

‘WE SEEK TO RESTORE COMPETITION TO MARKET THROUGH LAWSUIT’

The justice department said Visa’s practices have led to billions of dollars in additional fees for American consumers and businesses while slowing innovation in the debit payment market.

DoJ said through the lawsuit, it seeks to restore competition to the market on behalf of the American public.

“Visa maintains enormous scale on both sides of the debit market — with merchants and their banks and with consumers and their banks — and the complaint alleges that Visa’s exclusionary practices extend, deepen, and protect what it refers to as an “enormous moat” around its business,” the department said.

“When faced with the possibility that smaller debit networks or new technology entrants would threaten that position, Visa engaged in a deliberate and reinforcing course of conduct to cut off competition and prevent rivals from gaining the scale, share, and data necessary to compete for customers’ business.”

In 2020, the justice department filed a civil antitrust lawsuit to stop Visa from acquiring Plaid, a technology company that powers fintech apps developing disruptive options for online debit payments.

The companies abandoned their planned $5.3 billion merger.

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FG lifts ban on mining activities in Zamfara

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The federal government has lifted the ban on mining activities in Zamfara state.

In 2019, the federal government banned mining activities in Zamfara and ordered foreigners within mining sites in the state to vacate the area immediately.

The government also launched a special operation to stop bandits in the state.

Speaking during a press briefing, Dele Alake, minister of solid minerals development, cited “significant improvements in the security situation across the state” as a reason for lifting the ban.

In a statement on Sunday by Segun Tomori, special assistant to the minister, Alake said Nigeria has a lot to gain from the reawakened economic activities in a highly mineralised state like Zamfara which is imbued with vast gold, lithium, and copper belts.

Alake noted that the previous ban, which was good-intentioned, inadvertently created a vacuum exploited by illegal miners to fleece the nation of its resources.

The minister noted that Zamfara’s potential for contributing to national revenue is “enormous”.

“The existential threat to lives and properties that led to the 2019 ban has abated. The security operatives’ giant strides have led to a notable reduction in the level of insecurity, and with the ban on exploration lifted, Zamfara’s mining sector can gradually begin contributing to the nation’s revenue pool,” Alake said.

The minister added that the lifting of the ban would also facilitate better regulation of mining activities in the state.

He said this will enable more effective intelligence gathering to combat illegal mining and ensure the country benefits from the state’s rich mineral resources.

Commending the media for championing the propagation of reforms and initiatives of the ministry in 2024, Alake noted that the press has been a key ally in efforts to sanitise the mining sector and promote market reforms which have made the industry attractive to indigenous and foreign investors.

On the recent controversy surrounding the memorandum of understanding (MOU) with France, Alake reaffirmed the federal government’s position that the agreement does not imply Nigeria is relinquishing control over its mineral resources or entering into any military pact with France.

He said Nigeria’s military remains fully capable of safeguarding the nation’s territorial integrity.

“The high point of the MOU is on training and capacity building for our mining professionals. We need all the assistance we can get in terms of capacity, technical, and financial support from abroad, and that wasn’t even the first we are signing,” the minister said.

“We’ve signed similar ones with Germany and Australia. Deliberate peddling of misinformation, despite facts to the contrary, is uncalled for.”

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5 places to avoid during festive season

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The festive season is a time of joy and celebration, but it also comes with more risks, especially visiting some places.

The “ember months” (September to December) bring more travel, busy activities, and sadly, an increase in crimes and accidents.

As people prepare for Christmas and New Year, staying safe is very important.

Here are five places to avoid during the festive season and the reasons why.

Highways with a history of banditry
Highways are known for banditry and kidnappings. During the festive season, these roads become even more dangerous because many people are travelling.

Criminals often target travelers for robbery or ransom. There are higher risks of hijackings, kidnappings, and armed robbery. Use safer routes or trusted transport services that have security arrangements.

Crowded markets
Busy markets are popular during the festive season. However, they are also hotspots for pickpockets, scammers, and even stampedes because of the large crowds.

Crowds increase the chances of theft, and emergencies like fires or stampedes can happen. Shop early or use online stores for safer and easier shopping.

Nightclubs and unsafe late-night spots
During the festive season, many people visit nightclubs and bars to celebrate. However, places in unsafe neighbourhoods or with poor lighting can be risky. Armed robbery, gang fights, or even kidnappings are common threats.

These spots often lack proper security and can turn dangerous quickly. Choose well-secured venues and avoid staying out too late.

Remote villages or unsafe communities
Some villages face problems like banditry, terrorism, and communal clashes. Travelling to such places during the festive season can be risky as criminals take advantage of visitors.

These areas usually have poor security and emergency services. If you must go, inform authorities or travel with organised escorts.

Overcrowded public transport hubs

Bus parks, train stations, and airports get very crowded during the festive season. These places are targets for pickpockets, scammers, and sometimes terrorists. Poor crowd control can also lead to accidents or panic situations.

Overcrowding raises the chances of theft, stampedes, and other dangers. Travel during less busy hours and stay alert at all times.

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NNPC rejects false claims, confirms Port Harcourt refinery operational

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….says product loading ongoing

The Nigerian National Petroleum Company Limited has insisted that the renovated Port Harcourt refinery is still working.

The state-owned oil giant clarified that preparations for loading operations on Saturday were underway.

This was contained in a statement by Olufemi Soneye, the NNPC’s Chief Corporate Communications Officer, on Saturday.

Soneye was reacting to a report that the refinery had stopped loading petroleum products barely one month after it was declared open.

According to him, the refinery is fully operational, as verified a few days ago by former NNPC Group Managing Directors. .

Saturday PUNCH had earlier reported that less than a month after the Port Harcourt Refining Company appeared to have resumed production, the facility had stopped working.

Reacting, Soneye said preparation for today’s loading was ongoing at the time of sending out the statement.

“The attention of the Nigerian National Petroleum Company Limited has been drawn to reports in a section of the media alleging that the Old Port Harcourt Refinery which was re-streamed two months ago has been shut down.

“We wish to clarify that such reports are totally false as the refinery is fully operational as verified a few days ago by former Group Managing Directors of NNPC.

“Preparation for the day’s loading operation is currently ongoing,” he said in the statement.

He urged members of the public to disregard the report saying the malicious reports were the work of individuals attempting to create artificial scarcity and exploit Nigerians.

“Members of the public are advised to discountenance such reports as they are the figments of the imagination of those who want to create artificial scarcity and rip-off Nigerians,” he stressed.

Olatunji Grace, a social media user with the handle @Tunjigrace, expressed her frustration, questioning the intentions of those who wish for things to go wrong in Nigeria. 

She criticised individuals who discredit positive developments, stating, “Who are these people? 

Does any other nation have such unfortunate citizens who pray for failure?”

 She also expressed disappointment in a report by Punch Newspaper, describing it as “devilish and stupid journalism” that hides behind the guise of a “report.”

Another user, Patrick @Williamskane4, accused news media organisations of working with opposition political parties to spread fake news and misinformation.

He stated, “In collaboration with some opposition political parties, they spread lies, making propaganda their trade.”

Meanwhile, another user, Sarki @Waspapping_, defended the Old Port Harcourt Refinery’s operations, stating that the refinery is fully functional.

He questioned why some individuals and media outlets were spreading false narratives about shortages, claiming they aimed to exploit Nigerians.

Sarki emphasised that such misinformation benefits those who profit from scarcity and high prices and urged Nigerians to see through the lies and support local production efforts.

For decades, efforts to revive the Port Harcourt Refining Company (PHRC) seemed insurmountable. However, under Mele Kyari’s leadership, the once-elusive goal has been realised, signalling a critical step toward achieving energy self-sufficiency. This success is not only a milestone for the NNPCL but a testament to Kyari’s resolve to transform Nigeria’s energy landscape.

The Port Harcourt Refinery Company in Eleme is a sprawling facility divided into a 60,000-barrel-per-day-old refinery, and a new one capable of refining 150,000 barrels per day. The old refinery, operational since 1965, is Nigeria’s first refinery and had remained idle since 1990 when the newer unit became the primary production hub.

After over 30 years of dormancy, the old Port Harcourt refinery, which has a unique configuration where one barrel of crude oil yields a maximum of 23–24 per cent gasoline, was recently reopened by the NNPC Limited amid shock by forces against the revival of the country’s four refineries.  

After the $1.5 billion approved by the Federal Government in 2021 for the comprehensive rehabilitation of the refinery had been judiciously spent, the NNPCL under Kyari’s sound leadership, reopened the Old Port Harcourt Refinery on Tuesday, November 26, 2024.

Today, the old Port Harcourt refinery is currently producing straight-run gasoline (Naphtha) blended into 1.4 million liters of PMS daily; 900,000 liters of kerosene; 1.5 million liters of Automotive Gas Oil (Diesel); 2.1 million liters of Low Pour Fuel Oil (LPFO), and additional volumes of Liquefied Petroleum Gas (LPG), also known as cooking gas.

Attempts by sceptics to rubbish the achievement recorded with the 60,000-barrel-per-day Port Harcourt refinery had been roundly repudiated by the NNPCL, workers at the refinery, experts, and delegates from the Presidency, Nigeria Labour Congress, Trade Union Congress, Petroleum and Natural Gas Senior Staff Association of Nigeria, and Nigeria Union of Petroleum and Natural Gas Workers.

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