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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...

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...

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...

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...

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...

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...

 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 ...

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...

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...

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...

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...

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 ...

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,...

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...

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...

By Anjolaoluwa Adewole Labour unions in the country say they will schedule meetings with state governments as part of efforts to ensure that they comply with the 2024 National Minimum Wage Amendment Act Bill, which on Tuesday empowered Nigerian workers to earn at least N70,000 on a monthly basis. The Senate on Tuesday at plenary passed the 2024 National Minimum Wage Amendment Act Bill after President Bola Tinubu had transmitted the new wage bill to both chambers of the National Assembly, seeking expeditious support of the lawmakers for its passage. The Senate and House of Representatives passed the new minimum wage bill. The bill passed the first (President Tinubu’s request), second (debate on general principles) and third readings on Tuesday — all within an hour — in the upper and lower legislative chambers. The new bill replaces the National Minimum Wage Act, No. 8, 2019 which approved N30,000 minimum wage with five years to negotiate a new wage. The new wage review perio...

By Joy Adekayero The Governor of the Central Bank of Nigeria, Dr Olayemi Cardoso, has said that Nigerians are facing the consequences of excess money supply into the economy, citing the N27tn Ways and Means loan and N10.5tn interventions of the past adminsiration. Cardoso said this at the BusinessDay CEO Forum which was held in Lagos on Thursday. He said, “Interest rate is not set by the governor of the Central Bank. The interest rate is set by the members of the monetary policy committee.  Thankfully, we have a monetary policy committee composed of independent-minded people who are solely driven by data. “The MPC has made it very clear that for them the major issue is taming inflation and has also made it very clear that they will do whatever is necessary to tame inflation.  Sadly, we have a situation where a lot of money supply went into the system. We all saw Ways and Means soar to N27tn. We saw interventions of N10.5tn. It has its consequences. In large respect...

By Anjolaoluwa  Adewole The Academic Staff Union of Universities, on Thursday, gave scholarship grants to two students of the Ebonyi State University Abakaliki, to the tune of N200,000 each. The two beneficiaries, Ms Onwe Emmanuella C. and Chukwuemeka Ogar P. were final-year students of Medicine and Surgery at the EBSU. Presenting the cheques to the students, in Abakaliki the ASUU Chairman, Ebonyi State University chapter, Dr. Okechukwu Igwenyi, said the beneficiaries were selected based on some stringent but transparent determinable parameters. He observed it was wrong to blackmail the ASUU as a body known for only strikes and industrial actions, adding “We are here to inform the public that apart from fighting for improved funding and protect the autonomy of universities, we also care for students by providing annual scholarship awards to successful indigent students from all the public universities in Nigeria.” He said, “There is no gainsaying the fact that the rulin...

By Damilola oluyemi  The Federal Government and crude oil producers in Nigeria have committed to working towards a sustainable supply of crude oil to local refineries under a market-determined pricing system. Both parties said the aim of the commitment was to ensure that while the operators (crude oil producers) do business optimally, the refineries are not starved of feedstock. Accordingly, the industry regulator, the Nigeria Upstream Petroleum Regulatory Commission has directed oil refiners in the country to provide monthly price quote on crude supply. This came as the $20bn Dangote Petroleum Refinery is reportedly ramping up the importation of crude from the United States, Bloomberg reported on Thursday. In the statement, Komolafe said President Bola Tinubu is fully committed to providing a level playing ground for producers and refiners to do business in the industry. He expressed the need for a rule of engagement to ensure that the pricing model from the oil produc...

By Adewole Anjolaoluwa  The Federal Ministry of Innovation, Science and Technology has adopted the GSM village apprenticeship model to train about 500,000 Nigerians within two years. The Director General for the National Centre for Technology Management, Odusanya Olushola, who represented the Minister of Innovation, Science and Technology, Uche Nnaji disclosed this at the launch of ‘The TechAdvantage Nigeria Apprenticeship Workshop’ held in Abuja on Thursday. The project approved by the government in February 2024 is in partnership with is targeted at empowering 500,000 Nigerians and creating two million jobs in two years. The GSM Village Apprenticeship Model in Nigeria refers to a training programme designed to provide practical skills and knowledge to individuals interested in becoming mobile phone technicians. This initiative was developed to address the growing demand for skilled technicians capable of repairing and maintaining mobile phones, which are ubiquitous in...

By AFOLABI OLUWASEUN The Ondo State Governor, Lucky Aiyedatiwa, has constituted transition committees for the 18 local government areas and 33 local council development areas in the state. The state chapter of the Peoples Democratic Party has, however, faulted the development. According to a statement issued on Thursday by the governor’s Chief Press Secretary, Ebenezer Adeniyan, the transition committees would be in charge of affairs of the LGs and LCDAs until the state LG poll is held. The statement read partly, “The transition committees are to oversee the affairs of the LGs and LCDAs in the state until the local government election is held by the electoral body. Meanwhile, the state government is currently examining the concerns raised by some communities over the delineations carried out during the creation of the LCDAs to make the necessary amendments. The appointment takes immediate effect.” However, the state PDP has condemned the action of the government in the crea...

By AFOLABI OLUWASEUN The Nigeria Labour Congress has thrown its full support behind the Economic and Financial Crimes Commission in the ongoing battle against corruption in Nigeria. The Congress President, Joe Ajaero, disclosed this in Abuja at the EFCC Walk against Corruption held on Thursday across various states in the country. In his address, Ajaero emphasised the critical nature of the anti-corruption campaign, stating, “There’s an urgent need for us to fight corruption, and the NLC will throw its weight behind the agency in all fights against corruption.” He advised the EFCC to remain vigilant against misinformation, ensuring that genuine Nigerians continue to support their efforts. The NLC president highlighted the importance of uniting Nigerians in this cause, suggesting that the EFCC should connect Nigerians to enable a mass movement against corruption. He said, “Nigerians are united in the fight against corruption clearly I think what your agency needs to do is to...

By Adekayero joy romoke The Nigerian National Petroleum Company Limited, on Wednesday, said it would make an official announcement when the company is ready to take the earlier reported $2bn crude-backed loan. It was reported on Tuesday that NNPC was in talks for another oil-backed loan to boost its finances and allow investment in its business, according to the company’s Group Chief Executive Officer, Mele Kyari. Sources familiar with the situation told Reuters that the oil firm aims to raise at least $2bn through the proposed new loan. But when contacted on Wednesday to speak on the report, the Chief Corporate Communications Officer, NNPC, Olufemi Soneye, told our correspondent that the national oil firm would make an official announcement anytime the company is ready to proceed with the deal. He noted that though the company would require funding to carry out its high capital-intensive operations, it would follow the laid down process to announce its financing arrangemen...

By Jane Doe In a landmark decision, the Supreme Court of Nigeria has granted financial autonomy to local governments, significantly altering the landscape of governance and fiscal management in the country. The ruling, delivered earlier today, affirms that local governments will have direct access to their funds, enhancing their ability to manage local affairs independently. Chief Justice Olukayode Ariwoola, delivering the court's unanimous decision, emphasized the importance of empowering local governments to foster grassroots development and improve public service delivery. "This decision marks a pivotal moment in strengthening the federal structure and promoting accountable governance at all levels," he stated. The ruling has been met with widespread approval from local government officials and civil society organizations. "Financial autonomy will enable us to implement projects and programs tailored to the specific needs of our communities without und...

By Abass Ganiyu In a decisive move to combat the escalating cost of living, the Nigerian government has announced plans to regulate the prices of imported foodstuffs. The Federal Government (FG) aims to stabilize the market and make essential commodities more affordable for the average Nigerian. Minister of Agriculture and Rural Development, Dr. Mahmood Abubakar, revealed the initiative during a press briefing in Abuja. He emphasized that the regulation would curb the inflationary pressures exacerbated by the ongoing global economic challenges and ensure food security for the nation. "Import-dependent food prices have surged significantly, putting a strain on household budgets," said Dr. Abubakar. "We are committed to implementing measures that will stabilize prices and make food more accessible to all Nigerians." The government’s strategy includes setting price ceilings on key imported food items, increasing import duties on non-essential goods to disco...

By Adekayero joy romoke  The United States Agency for International Development and the Federal Ministry of Power signed a memorandum of understanding on Wednesday to secure Nigeria’s commitment to electricity sector reforms, market transparency, liquidity, and expanding access to affordable power. The MOU was signed by USAID/Nigeria Mission Director, Melissa Jones, and the Permanent Secretary, Federal Ministry of Power, Mahmuda Mamman, to support the implementation of an N115.2bn US government grant-funded technical assistance programme intended to support power sector development and reforms in Nigeria. Both parties announced this in a statement issued in Abuja by the power ministry. More than 85 million Nigerians have no access to grid power, and many have suffered from unreliable power supply. Given these challenges, many Nigerian families and businesses depend on expensive, emission-intensive petrol and diesel backup generators. The Nigerian power sector’s long-sta...

By Aderemi Musliudeen Germany's inflation rate has been officially confirmed at 2.5% for June 2024, reflecting broader economic trends affecting the European Union's largest economy. This increase, consistent with preliminary estimates, underscores the challenges faced by policymakers in balancing growth and price stability. Rising energy costs and food prices have been significant contributors to the inflationary pressures. Energy prices alone surged by 7.9% compared to the previous year, driven by global supply constraints and geopolitical tensions. Food prices increased by 3.6%, influenced by adverse weather conditions affecting agricultural output. The Federal Statistical Office noted that while the overall inflation rate is above the European Central Bank's target of 2%, it remains manageable within the current economic framework. However, the persistent rise in consumer prices is a cause for concern among households and businesses alike. Economists suggest...

By Aderemi Musliudeen In a surprising turn of events, the UK economy posted impressive growth in May, beating market expectations and marking a significant milestone in the nation's post-pandemic recovery. Official data released today shows a 0.5% increase in GDP for the month, driven by strong performances in the services and manufacturing sectors. This economic uptick has had a notable impact on the financial markets, with the British pound reaching a four-month high against the US dollar. Investors are responding positively to the news, viewing it as a sign of renewed economic resilience and stability. The services sector, which accounts for a significant portion of the UK’s economic activity, was a major contributor to this growth, bolstered by increased consumer spending and a rebound in tourism and hospitality. Manufacturing also showed robust performance, supported by a rise in production output and new orders. Chancellor of the Exchequer, Jeremy Hunt, welcomed t...