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House of Representatives Ordered NNPC to Suspend Crude-for-Loan Deal

By Abass Ganiyu
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By Abass Ganiyu In a decisive move, the House of Representatives has ordered the Nigerian National Petroleum Corporation (NNPC) to suspend its controversial crude-for-loan deal, effective immediately. This directive follows mounting scrutiny and calls for transparency regarding the terms of the agreement and its implications for Nigeria’s oil sector and national finances. The crude-for-loan deal, which involves the exchange of crude oil for loans to finance various infrastructure projects, has faced criticism over its potential impact on Nigeria’s oil revenues and national debt. Critics argue that the deal may compromise Nigeria’s oil assets and expose the country to financial risks. The decision by the House of Representatives comes after a series of debates and hearings on the deal’s terms and its alignment with national interests. Legislators expressed concerns about the lack of transparency and the potential for adverse effects on the country’s financial stability. With...
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Banks and Businesses Shut Down as Hunger Protest Escalates

By Abass Ganiyu
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By Feranmi Bolanle Lagos, Nigeria – 1st August, 2024: In a significant display of civil unrest, banks and various businesses across major Nigerian cities were forced to shut down today as a widespread hunger protest intensified. The demonstration, organized by grassroots groups and activists, is drawing attention to escalating food insecurity and economic hardships affecting millions of Nigerians. The protest, which began early this morning, saw thousands of demonstrators taking to the streets to voice their frustrations over soaring food prices and inadequate government responses. Major financial institutions and retail outlets, including several prominent banks, were compelled to close their doors as protestors converged on key business districts. The shutdown of banks and businesses has caused significant disruptions in daily economic activities. Many customers were left stranded, unable to access banking services or conduct transactions. The protestors' demands incl...
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Nigeria in 1min: Economic, Business and Financial meeting

By Abass Ganiyu
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By Abass Ganiyu Lagos, Nigeria – The Nigerian government has revised its economic growth forecast for the year, adjusting projections due to recent fluctuations in global oil prices and changes in domestic market conditions. The new forecast anticipates a modest increase in GDP, driven primarily by growth in non-oil sectors. Economists suggest that this shift reflects both the resilience and diversification of Nigeria’s economy in response to global economic pressures. In a bid to stimulate economic development, the Ministry of Trade and Investment has introduced a new initiative aimed at attracting foreign direct investment (FDI). The program offers various incentives for startups and established businesses, including tax breaks and subsidies. This initiative is expected to foster industrial growth and job creation, positioning Nigeria as a more attractive destination for international investors. The Central Bank of Nigeria has announced updates to its monetary policy, inc...
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CBN advances: Opposition, OPS oppose higher borrowing limit for FG

By Abass Ganiyu
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By Joy Adekayero Both chambers of the National Assembly have raised the threshold for the Ways and Means advances by the Central Bank of Nigeria to the Federal Government from five per cent to 10 per cent of the previous year’s revenue. However, this decision was opposed by the Organised Private Sector and members of the opposition parties in the National Assembly, as they kicked against the move. Ways and Means are advances provided by the CBN to the Federal Government to cover revenue shortfalls in budget implementation. The National Assembly also rescinded and re-enacted the 2024 Appropriation Act through an amendment bill sponsored by leaders of both chambers. In the Senate, the increase in the threshold was achieved through the consideration and passage of a bill sponsored by its Leader, Senator Opeyemi Bamidele (APC Ekiti Central). In his lead debate, Bamidele explained that the bill seeks to amend the CBN Act to increase the total CBN advances to the Federal Governme...
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Monthly power subsidy soars by 151% to #211bn

By Abass Ganiyu
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By Bolanle Esther Feranmi  The electricity subsidy obligation of the Federal Government rose from N252.76bn to N633.30bn in the first quarter of 2024, a report by the Nigerian Electricity Regulatory Commission has disclosed. The NERC said the electricity subsidy skyrocketed to N211.10bn per month in the first three months of 2024, from N84.25bn in the last quarter of 2023. NERC revealed that the increase was largely attributable to the government’s policy to harmonise the exchange rates while also issuing a policy directive that end-user customer tariffs remain at the rates that came into effect in December 2022. “Due to the absence of cost-reflective tariffs across all distribution companies, the government incurred a subsidy obligation of N633.30bn (90.57 per cent of total Nigerian Bulk Electricity Trading Plc invoice) in Q1 2024 (average of N211.10bn per month). Across 2024/Q1, this represents an increase of N380.56bn (150.56 per cent) compared to the N252.76bn (aver...
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Zenith Bank opens N290bn rights issue

By Abass Ganiyu
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By Ajileye Modupe  Zenith Bank Plc is set to raise N290 billion through a combination of a rights issue and a public offer in compliance with the revised minimum capital requirements for Nigerian commercial banks introduced by the Central Bank of Nigeria (CBN). The Offer will open on Thursday, August 1, 2024, and close on Monday, September 9, 2024. This announcement was made during the Zenith Bank rights issue/public offer signing ceremony held on July 29, 2024, in Lagos. This event marks a significant milestone in the bank’s previously announced capital-raising programme, aimed at bolstering its capital base and supporting the growth trajectory across its banking and non-banking subsidiaries. The rights issue offers 5,232,748,964 ordinary shares of 50 Kobo each at N36.00 per share, while the public offer for subscription presents 2,767,251,036 ordinary shares of 50 Kobo each at N36.50 per share. The rights issue affords existing shareholders the opportunity to purchase...
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Senate frowns at N4.2bn personnel cost for Ajaokuta steel

By Abass Ganiyu
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By Anjolaoluwa Adewole  The Senate has frowned at the  N4.2bn appropriated in the 2024 budget as personnel cost for unverifiable workers at the Ajaokuta Steel Company Limited. The alleged unverifiable nature of workers at the non-functional steel company , came to the fore during an investigative hearing on the alleged incidences of corruption and inefficiency at the Ajaokuta Steel Company Limited and National Iron Ore Mining Company from 2002 to date, by an Ad-hoc committee of the Senate. The Deputy Chairman of the Committee, Senator Natasha Akpoti-Uduaghan (PDP Kogi Central), took up the Sole Administrator of the Steel Company, Summaila Abdul-Akaba, on the number of workers collecting salaries from the N4.2bn appropriated for personnel cost in the 2024 budget. She stated that as an indigene of the area desirous to get the steel company revamped and working, she often makes unscheduled visits to the plant and hardly finds 10 people at work. She lamented that desp...
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Passengers stranded as court grounds Arik Air

By Abass Ganiyu
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By Joy Adekayero Many air passengers of Arik Air were left stranded at the Murtala Muhammed Airport, Lagos, and the Nnamdi Azikiwe Airport in Abuja on Tuesday. The trips were abruptly stalled after the Nigerian Airspace Management Agency grounded an aircraft owned by the airline over a court order instituted by the airline’s creditor and billionaire businessman, Arthur Eze. PUNCH learned that Eze went to court in protest against his unpaid $2.5m by the founder of Arik Air, Johnson Arumemi-Ikhide. In a statement by the spokesperson of NAMA, Abdullahi Musa, on Tuesday, the agency said this development stems from an enforcement action by the FCT High Court on July 19, 2024, which involved attaching Arik’s planes to secure the debt. Arik was further given a notice of public auction of the planes by the court which was slated to hold on July 26, 2024 if they fail to pay the judgment debt,” the statement partly read. While Arik has since obtained an ex-parte order stopping it fro...
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Lagos must convey protesters to designated parks, group reacts to court ruling

By Abass Ganiyu
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By AFOLABI OLUWASEUN OLAYINKA  One of the groups organising the proposed nationwide protests, the Take It Back Movement, has described the judgment obtained by the Lagos State Government as an abuse of judicial privilege to stifle citizens’ freedom of association. A Lagos State High Court had, on Tuesday, restricted protesters participating in the nationwide protest to specific locations within the state. Justice Emmanuel Ogundare, while ruling on an ex parte application by the Lagos State Attorney-General and Commissioner for Justice, Lawal Pedro, (SAN), ordered that protests could only take place at the Gani Fawehinmi Freedom Park in Ojota and Peace Park in Ketu. However, in a statement on Wednesday, the Coordinator of the Take It Back Movement, Lagos, Adekunle Taofeek, said the state government must bear the cost of moving protesters from several designated areas in the state to venues ordered by the court. He said, “We frown at this abuse of judicial privilege to st...
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Customers besiege banks to reactivate dormant accounts

By Abass Ganiyu
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By Joy Adekayero Many bank customers affected by the new Central Bank of Nigeria guidelines on dormant accounts rushed to their various banks on Tuesday to reactivate the accounts. Some of the customers, who spoke to the News Agency of Nigeria in Abuja on Tuesday, said they had to activate their bank accounts to avoid the mopping up of their little savings by CBN. Further inquiries by our correspondent confirmed the situation, with courtrooms also becoming crowded with requests to swear affidavits. A bank official at a first-generation bank informed The PUNCH that numerous customers and families had submitted requests to re-activate inactive accounts so as not to lose the money to the apex bank that intends to use them for investment purposes. The official said, “Yes, we have seen customers coming to the bank to reactivate their accounts. Even relatives and next of kin to dead persons have submitted applications to withdraw amounts left in the account of their loved ones. I...
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NNPC targets two million barrels oil production daily

By Abass Ganiyu
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By Damilola Oluyemi The Nigerian National Petroleum Company Limited has announced its goal to increase crude oil production to two million barrels per day by the end of the year. The country’s daily production rose from 1.27 million barrels in June to 1.6 million in July, according to the Nigerian Upstream Petroleum Regulatory Commission. Speaking during a meeting with Maritime Stakeholders at the Nigerian Navy Headquarters on Tuesday, the Group Managing Director of NNPC, Mele Kyari, expressed optimism that the target would be met, emphasising that NNPC was fully committed to achieving it. Represented by the Managing Director of Pipeline NNPC, Folorunsho Karim, the oil firm’s boss urged security agencies to continue their efforts against oil theft and pipeline vandalism to help the company meet its target. He said, “The target is to increase production to two million barrels by the end of the year, and we are fully committed to doing that. I appreciate the support of the Ni...
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Dangote-NNPC rift: Petrol imports from Malta hit $2bn

By Abass Ganiyu
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 By Joy Adekayero The value of Nigeria’s petroleum imports from Malta jumped 43 times in 10 years, reaching $2.08 billion in 2023 from $47.5 million in 2013. These import figures gathered by BusinessDay enrich the ongoing discourse in the oil sector, particularly with respect to the rift between Dangote Group and the Nigerian National Petroleum Company (NNPC). The data sourced from Trade Map, a global database on international trade statistics, showed that Nigeria imported petroleum oils and oils obtained from bituminous minerals worth $ 2.08 billion in 2023, a 342 percent increase from $47.5 million as of 2013. Read also: Shareholders condemn ‘unwarranted efforts’ to demarket Dangote Refinery Between 2013 and 2016, import values fluctuated. There was a peak in 2015 at $117.01 million, followed by a significant drop in 2016 to $13.32 million. For six consecutive years, from 2017 to 2022, petroleum imports from Malta recorded zero value. In 2023, there was a substantial ...
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Airfares to rise again as NAMA to increase charges by 800%

By Abass Ganiyu
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By Ajileye Modupe The Nigerian Airspace Management Agency (NAMA) has said it will raise en-route navigational charges from N2000 and N6,000 to N18,000 and N54,000 per flight just as the airspace agency equally increased the extension of hours of service to airlines from N50,000 to 450,000, representing 800 per cent increase per extension to enable the agency to recover the cost of diesel and other logistics during the period of extension. Stakeholders say this implies that air fares would rise to reflect the new increase in charges. Umar Ahmed Farouk, the Managing Director of NAMA, disclosed on Friday at the League of Airports and Aviation Correspondent (LAAC) seminar theme, “Aviation Survivability amidst a Challenging Macro-Economic Environment,” held in Lagos. Recall that NAMA and the Nigerian Civil Aviation Authority (NCAA) in January held a strategic meeting with some airline operators under the aegis of Airline Operators of Nigeria (AON) to review what has been...
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Nigeria’s Debt Service Drops as Revenue Surges, Says Wale Edun

By Abass Ganiyu
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By Abass Ganiyu Abuja, Nigeria – July 20, 2024 – Nigeria's debt service costs have significantly decreased amid a substantial increase in national revenue, according to Wale Edun, the Minister of Finance. This development marks a positive shift in the country's economic landscape, providing much-needed relief from financial strain. Edun attributed the reduction in debt service to improved fiscal policies and effective revenue collection measures implemented by the government. He highlighted that the surge in revenue has been driven by various factors, including increased oil exports, enhanced tax collection, and economic diversification efforts. The decline in debt service costs is expected to free up resources for critical investments in infrastructure, education, and healthcare, further stimulating economic growth. Edun emphasized the government's commitment to maintaining this positive trajectory and ensuring sustainable economic development for Nigeria. This...
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APC's Basiru Disputes NBS Inflation Data

By Abass Ganiyu
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By Abass Ganiyu Abuja, Nigeria – July 20, 2024 – APC Secretary, Basiru, has voiced disagreement with the recent inflation data released by the National Bureau of Statistics (NBS), asserting that the economic crisis is being exaggerated. In a recent statement, Basiru claimed that while there are economic challenges, the figures presented by the NBS do not accurately reflect the current situation. He argued that the report fails to consider various government measures that have been implemented to stabilize the economy.  Basiru emphasized that the administration is working diligently to mitigate the impacts of global economic trends and that the NBS report does not fully capture the positive strides made. The NBS report highlighted a significant rise in inflation, sparking concerns among citizens and policymakers.  However, Basiru urged the public to remain optimistic and trust in the government's ongoing efforts to address these economic issues effectively. He assur...
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Naira Woes Slow Solar Battery Adoption Despite 85% Price Drop

By Abass Ganiyu
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By Abass Ganiyu Lagos, Nigeria – July 20, 2024 – Despite an impressive 85% reduction in solar battery prices over the past few years, the adoption of this crucial renewable energy technology in Nigeria remains sluggish. The primary culprit? The persistent woes of the Naira, Nigeria’s national currency. As global prices for solar batteries have plummeted, driven by advancements in technology and increased production capacities, one would expect a corresponding surge in adoption, especially in countries like Nigeria that are grappling with energy challenges. However, the opposite seems to be happening. Economic analysts point to the weakening Naira as a significant barrier. The currency’s depreciation against the US dollar has eroded purchasing power and increased the cost of imported goods, including solar batteries. For many Nigerians, the financial burden of investing in solar energy solutions remains prohibitive, even with the steep decline in prices. “In theory, the pric...
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Dangote Seen Disrupting 90 European Refineries with Game-Changing Strategies

By Abass Ganiyu
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By Abass Ganiyu Lagos, Nigeria – July 20, 2024 – In an unprecedented move that has sent shockwaves across the global energy sector, Aliko Dangote, the Nigerian business magnate and Africa’s richest man, has been seen implementing strategies that are disrupting operations in 90 European refineries.  Dangote, known for his ambitious ventures and transformative projects, has recently focused on expanding his influence in the international oil and gas market. The cornerstone of this disruption is the Dangote Refinery, located in Lagos, Nigeria. With an estimated capacity of 650,000 barrels per day, it stands as the largest single-train refinery in the world. Industry insiders report that the operational efficiency, advanced technology, and cost-effective production methods of the Dangote Refinery are setting new benchmarks in the industry. These innovations have caused significant shifts in market dynamics, leading to operational disruptions in numerous European refineries ...
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FG votes #2tn for Lagos, calabar, others

By Abass Ganiyu
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By Bolanle Esther Feranmi   The National Assembly has passed the N2tn budget amendment bill for the third reading, as the Federal Government is to spend about N2tn on the Lagos-Calabar highway and other road projects. The bill was passed after the Chairman of the Senate Committee on Appropriation, Olamilekan Adeola (APC, Ogun West), presented his committee’s report on the 2024 Appropriation (Amendment) Bill. On July 17, 2024, President Bola Tinubu transmitted to the Senate a bill for an Act to amend the Appropriation Act, 2024 to provide for the sum of N6.2tn with N3.2tn for capital expenditure and N3tn for recurrent expenditure. The document showed that N700bn would be used for the country’s coastal road that would run from Lagos to Calabar, traversing Lagos, Ogun, Ondo, Delta, Bayelsa, Port Harcourt, Akwa Ibom, and Cross River states. The Port-Harcourt to Maiduguri railway line would gulp N530bn, as the line would pass through Abia, Enugu, Ebonyi, Anambra, Benue,...
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Discos rake in #291bn amid power sector crisis

By Abass Ganiyu
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By Bolanle Esther Feranmi  The electricity distribution companies in Nigeria generated revenue of N291.62bn in the first quarter of 2024 amid the blackout in parts of the country. This was even as the nation lost 673 megawatts of power generation capacity due to gas shortages during the period. In a report by the Nigerian Electricity Regulatory Commission, it was stated that the revenue generated by the Discos was out of the N368.65bn billed to customers in the first three months of the year. “The total revenue collected by all Discos in 2024/Q1 was ₦291.62bn out of ₦368.65bn billed to customers. This translates to a collection efficiency of 79.11 per cent which represents an increase of +5.32 percentage points when compared to 2023/Q4 (73.79 per cent),” NERC stated. [24/07, 12:02] .  The report revealed that the average available generation capacity across all the 27 plants in the country during the quarter was 4,249.10MW representing a loss of 673.16MW, or a 13.6...
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IBEDC accuses Oyo of shutting transmission station

By Abass Ganiyu
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By Joy Adekayero  The Ibadan Electricity Distribution Company says the Ayede transmission station was locked down by the Oyo State Government, impacting its ability to supply power to some areas in the state. In a notice, the Disco explained that its technical team had been facing challenges in accessing the station to obtain the necessary guarantee pass to address faults on the Lanlate, Interchange, and Express 33kV feeders. Consequently, over 30 communities have been plunged into darkness. “Kindly note that due to the lockdown of the Ayede transmission station by the Oyo State Government, our technical team is facing challenges accessing the station to obtain the necessary guarantee pass to address faults on the Lanlate, Interchange, and Express 33kV feeders. As a result, the following feeders and communities are experiencing power outages: Eagle Flours, Lina Oil, Bat/New Age, Frigoglass, Podo, Sokas, Odo Ona Elewe, Challenge, Boluwaji, Best Oil, Black Horse, and Aram...
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