Saturday, November 23, 2024
Facebook Instagram Linkedin Twitter Youtube
Home Blog Page 2

Senate Approves President Tinubu’s $2.2 Billion External Borrowing Plan

Tinubu Authorizes Appointment Of New CEOs

The Nigerian Senate approves a $2.2 billion external borrowing plan proposed by President Bola Tinubu to support ongoing projects and programs under the 2024 budget. The approval follows the presentation of the Senate Committee on Local and Foreign Debts’ report, chaired by Senator Aliyu Wammako (APC-Sokoto), recommending the plan.

Purpose of the Loan

Senator Wammako highlights that the loan is essential for advancing national growth and development. It will fund key infrastructure and initiatives outlined in the 2024 appropriation. He explains that the borrowing aligns with Nigeria’s debt management strategy by:

  • Reducing the overall cost of borrowing.
  • Extending the maturity period of public debt.
  • Creating space in the domestic market for other borrowers.
  • Strengthening Nigeria’s external reserves.

Funding Sources

The $2.2 billion loan is expected to be raised through various sources, including:

  • Issuance of Eurobonds in the International Capital Market (ICM).
  • Issuance of debut sovereign Sukuk in the ICM.
  • Syndicated loans and bridge financing, subject to market conditions.

The committee recommends implementing the borrowing plan at the budget exchange rate of ₦800 per dollar.

Senate Approval

Following the presentation, the Senate unanimously approves the borrowing plan through a voice vote. Deputy Senate President Jibrin Barau (APC-Kano), who presides over the session, commends the committee for its diligent work.

Background

On November 19, President Tinubu formally requests Senate approval for the $2.2 billion external loan. This borrowing is aimed at addressing the ₦9.7 trillion deficit in the 2024 budget.

In addition, Nigeria is negotiating a separate $500 million loan with the World Bank to improve basic education. The loan is part of the “HOPE for Quality Basic Education for All” initiative, which focuses on improving learning outcomes and reducing the number of out-of-school children. Formal approval for the project is expected by March 2025.

The approved borrowing plan highlights the government’s commitment to balancing fiscal responsibility while addressing vital national development needs.

Bitcoin Surges To $97,000, Approaching $100,000 Benchmark

Bitcoin Surges To $97,000, Approaching $100,000 Benchmark

Nigeria Emerges 5th Most Interested Country In Bitcoin

Bitcoin reaches a new all-time high of $97,836, coming within $3,000 of the much-anticipated $100,000 milestone. The cryptocurrency briefly retreats to $97,073 as of Thursday morning, maintaining strong momentum in the market.

Market Performance

Bitcoin records a 4.1% increase in the past 24 hours, pushing its market capitalization to $1.9 trillion. The cryptocurrency maintains a dominant 57.9% share of the global crypto market, with daily trading volumes surpassing $85 billion.

This bullish rally drives the overall cryptocurrency market capitalization to an unprecedented $3.3 trillion, intensifying speculation that Bitcoin will surpass $100,000 before the end of the year. Prediction platforms now feature active wagers on this potential milestone.

Key Drivers Behind Bitcoin’s Surge

Several factors fuel Bitcoin’s latest price rally:

  1. Election of a Crypto-Friendly President
    Donald Trump’s recent election victory is a major catalyst, as he has consistently expressed strong support for Bitcoin and blockchain technology. His campaign includes plans to establish a strategic Bitcoin reserve, which has energized the market. Pro-crypto candidates also secure key positions in the U.S. Congress, further boosting optimism for favorable policies.
  2. Spot Bitcoin ETF Launch
    The approval of the first spot Bitcoin exchange-traded fund (ETF) in the U.S. marks a turning point for institutional investors. BlackRock’s product provides a regulated pathway for investment in Bitcoin, increasing its appeal as a secure financial asset.
  3. Institutional Accumulation
    Significant activity by institutional investors contributes to the surge. Large-scale over-the-counter transactions and heightened accumulation by cryptocurrency whales are key factors driving demand.
  4. Impact of Bitcoin Halving
    The recent Bitcoin halving event reduces mining rewards, creating upward pressure on prices as miners adjust to maintain profitability.

Implications for the Crypto Market

  • Regulatory Changes: The election outcome signals potential shifts in U.S. cryptocurrency regulations, with expectations of a more supportive regulatory environment under new leadership.
  • Altcoin Performance: Alongside Bitcoin’s rally, alternative cryptocurrencies, including memecoins like Dogecoin and others, experience remarkable gains during this bullish cycle.

As Bitcoin approaches the $100,000 threshold, the market remains optimistic, driven by institutional interest, regulatory developments, and growing mainstream adoption. The coming weeks could mark a historic moment for the cryptocurrency.

Top Nigerian Publicly Traded Companies Valued Over $1 Billion In Q3 2024

Top Nigerian Publicly Traded Companies Valued Over $1 Billion In Q3 2024

As of Q3 2024, the Nigerian Exchange (NGX) showcases over 160 companies, with a select few exceeding the $1 billion valuation benchmark. These firms highlight the diversity and value concentration within Nigeria’s economy, providing significant investment opportunities for individuals and institutions.

Market Overview

The NGX records a total market capitalization of N58.91 trillion ($35.31 billion), with its top nine companies contributing 70.31% of this figure. Airtel Africa, Dangote Cement, and BUA Foods lead the market, jointly accounting for N23.535 trillion ($14.046 billion) or 39.77% of the total valuation.

Here are the top publicly traded companies with market capitalizations exceeding $1 billion, based on an exchange rate of N1,675.49 as of October 31, 2024:

9. Aradel Holdings (Oil & Gas) – $1.28 Billion

Aradel Holdings holds a market value of N2.15 trillion ($1.28 billion), representing 3.64% of the equity market. Despite a 29.54% drop in its share price after listing in October, the company reports a revenue of N377.58 billion and a pre-tax profit of N191.45 billion for the first nine months of 2024.

8. Transcorp Power (Energy) – $1.61 Billion

Transcorp Power operates the Ughelli Power Plant, one of Nigeria’s largest, and has a market value of N2.69 trillion ($1.61 billion). The company posts strong results, with N223.55 billion in revenue and N81.12 billion in pre-tax profit, demonstrating its significant role in the energy sector.

7. Geregu Power (Energy) – $1.71 Billion

Geregu Power, with a market capitalization of N2.87 trillion ($1.71 billion), accounts for 4.86% of the market value. The company reports steady growth, with its share price rising 188.22% year-to-date, reflecting solid investor confidence in its operations.

6. BUA Cement (Industrial Goods) – $1.97 Billion

BUA Cement records a market value of $1.97 billion (N3.31 trillion). Its operations generate N583.40 billion in revenue and N63.01 billion in pre-tax profit for the first nine months of 2024, solidifying its presence in Nigeria’s industrial goods sector.

5. Seplat Energy (Oil & Gas) – $2.00 Billion

Seplat Energy stands out in the oil and gas sector with a market capitalization of N3.35 trillion ($2.00 billion). The company strengthens its position through the acquisition of ExxonMobil’s Nigerian assets while reporting N1.07 trillion in revenue and N366.71 billion in pre-tax profit.

4. MTN Nigeria (ICT) – $2.19 Billion

MTN Nigeria holds a market value of N3.67 trillion ($2.19 billion), making up 6.21% of the equity market. Despite economic challenges, the telecom giant generates N2.37 trillion in service revenue, showcasing its resilience and market leadership.

3. BUA Foods (Consumer Goods) – $4.24 Billion

BUA Foods, with a valuation of N7.10 trillion ($4.24 billion), ranks as a top player in the consumer goods sector. The company reports N1.07 trillion in revenue and N217.65 billion in pre-tax profit for the first nine months of 2024.

2. Dangote Cement (Industrial Goods) – $4.86 Billion

Dangote Cement, valued at N8.15 trillion ($4.86 billion), ranks as the second-largest publicly traded company. It posts N2.56 trillion in revenue and N406.38 billion in pre-tax profit, maintaining its leadership in Nigeria’s industrial sector.

1. Airtel Africa (ICT) – $4.93 Billion

Airtel Africa leads the market with a valuation of N8.26 trillion ($4.93 billion), representing 13.97% of the NGX. The company records $2.37 billion in revenue and $178 million in pre-tax profit for the half-year ending September 2024, underscoring its dominance in the telecommunications industry.

Conclusion

These companies showcase Nigeria’s economic strengths, with their valuations spanning key sectors such as energy, industrial goods, ICT, and consumer goods. Their performance reflects the opportunities and challenges within the Nigerian Exchange, highlighting the potential for substantial growth and investment returns.

Bitcoin Nears $2 Trillion Market Cap, Surpasses Saudi Aramco, Trails Amazon

Bitcoin Nears $2 Trillion Market Cap, Surpasses Saudi Aramco, Trails Amazon

Bitcoin, the leading cryptocurrency, reaches a record high of $97,000, pushing its market capitalization to $1.9 trillion and approaching the $2 trillion milestone. This surge places Bitcoin ahead of Saudi Aramco in valuation, with the cryptocurrency now $230 billion behind global e-commerce giant Amazon.

If viewed as a company, Bitcoin ranks as the sixth most valuable globally, following Amazon and surpassing Saudi Aramco, the state-owned oil giant of Saudi Arabia.

The global cryptocurrency market cap rises to $3.3 trillion, fueled by Bitcoin’s extraordinary performance. Comparing Bitcoin’s market cap to other key assets:

  • Bitcoin holds approximately 11% of gold’s $17.68 trillion valuation.
  • It surpasses silver’s total market value and represents more than half of Nvidia’s $3.6 trillion valuation, the largest company by market cap.

Crypto analyst Tony Sycamore highlights strong buying activity, stating, “Buyers significantly outweigh sellers. While the journey to $100,000 may face challenges, Bitcoin’s demand shows no signs of slowing.”

Hunter Horsley, CEO of Bitwise, describes Bitcoin as a transformative force, saying, “Bitcoin is the greatest wealth transfer program of our time, enabling diverse individuals to use new resources to express their values and reshape the world.”

Drivers of Bitcoin’s Growth

  • MicroStrategy, the largest corporate Bitcoin holder, announces plans to expand its asset purchases.
  • The introduction of options on U.S. spot Bitcoin ETFs boosts this week’s momentum.
  • Bitcoin surpasses companies like Meta and commodities such as silver in market capitalization, as it sets its sights on Amazon and Alphabet.

Bitcoin’s remarkable rise solidifies its position as a key player in global financial markets, with the $2 trillion market cap milestone within reach.

Lagos Government Warns Contractors Of Contract Termination Over Delays In Housing Projects

Lagos Government Warns Contractors Of Contract Termination Over Delays In Housing Projects

LAASG Closes Mile 12, Owode Onirin Markets

The Lagos State Government warns contractors handling housing projects to adhere to agreed deadlines or face contract termination. This announcement follows concerns about delays in critical state-funded projects designed to address Lagos’ housing deficit.

The State Commissioner for Housing, Moruf Akinderu-Fatai, raises the alarm during an inspection of projects, including the Sangotedo Housing Estate Phase 2 in Eti Osa. In a statement released via the Lagos State Government’s official X (formerly Twitter) account, Akinderu-Fatai expresses dissatisfaction with the slow pace of work, emphasizing the government’s commitment to meeting its housing delivery goals.

“Contractors must fulfill all obligations in line with the contract agreements or risk termination. Non-compliance will lead to re-awarding projects to more reliable firms capable of timely delivery,” the statement reads.

Focus on Housing Delivery

Akinderu-Fatai highlights that Governor Babajide Sanwo-Olu expresses displeasure with the delays and stresses the need for contractors to meet deadlines without compromising quality. Supporting this stance, Permanent Secretary in the Housing Ministry, Engr. Abdulhafis Toriola, reminds contractors of the critical role of timely project delivery.

Among the major projects under review is Sangotedo Housing Estate Phase 2, comprising 43 blocks expected to deliver over 500 housing units upon completion. The first phase, consisting of 744 units, is successfully commissioned in December 2021.

Other ongoing housing initiatives include projects in Ajara, Badagry; Ibeshe Scheme 2; Ita Marun; and Egan Igando Cluster 2 and 3. These developments form part of the government’s broader efforts to meet the housing needs of Lagos’ growing population.

Government Housing Programs

The Lagos State Government drives homeownership through programs like the Rent-To-Own Scheme and Lagos Home Ownership Mortgage Scheme (Lagos HOMS).

  • Rent-To-Own Program: Offers affordable housing options with a 5% down payment, followed by rent-equivalent monthly payments over 10 years. Applicants must be Lagos residents, first-time buyers, tax-compliant, and meet affordability criteria.
  • Lagos HOMS: Provides first-time buyers with up to 70% mortgage financing for affordable homes. Payments are spread over a decade, ensuring accessibility while prohibiting subletting.

The government commits to completing all ongoing projects by the end of the current administration in 2027, reinforcing its pledge to provide affordable housing solutions for Lagosians.

Canada Flags Over 10,000 Potentially Fraudulent Student Acceptance Letters

Canada Flags Over 10,000 Potentially Fraudulent Student Acceptance Letters

Canada

Canada’s Immigration, Refugees, and Citizenship Canada (IRCC) identifies over 10,000 student acceptance letters as potentially fraudulent, raising serious concerns about the integrity of international student admissions. This follows the introduction of stricter verification processes designed to address issues with fake documents.

Stronger Verification Measures Unveiled

Over the past year, IRCC reviews 500,000 student applications, confirming 93% of acceptance letters as authentic. However, 2% are flagged as fraudulent, and 1% are tied to canceled admissions. Several colleges and universities reportedly fail to verify acceptance letters properly before admitting students.

The enhanced verification system is introduced after cases in 2023 where international students unknowingly received fake acceptance letters from an unlicensed consultant in India. These incidents led Canada to make it mandatory for all educational institutions to validate acceptance letters through a dedicated online portal.

Exploitation of International Students Sparks Concern

Reports of fraudulent documentation prompt concerns about the exploitation of international students. Jenny Kwan, an immigration critic for Canada’s New Democratic Party, calls the findings alarming and urges immediate government action.

“Canada must protect international students who are victims of fraud,” Kwan states, warning that the country’s reputation as a premier education destination is at stake. She emphasizes the importance of addressing fraudulent practices and providing support for affected students.

Impact on Canada’s Economy and Education System

International students significantly contribute to Canada’s economy through tuition fees, job creation, and cultural diversity. As their numbers grow, ensuring the credibility of admissions processes becomes increasingly crucial to maintaining trust in the system.

The IRCC’s new measures reflect a commitment to safeguarding the rights of international students and the integrity of Canada’s education and immigration systems. By addressing fraudulent practices, Canada aims to protect students, strengthen its institutions, and uphold its global reputation as a leading destination for higher education.

Naira Approaches N2,200 Against The British Pound

Naira Approaches N2,200 Against The British Pound

The naira breaks the N2,180 barrier and begins Thursday’s session at the lower end of its range against the British pound. On the black market, the pound trades at N2,188/£1 despite improved conditions in Nigeria’s foreign exchange reserves managed by the Central Bank of Nigeria (CBN).

The naira’s rapid depreciation against the British pound in the second half of the year coincides with Nigeria’s reserves reaching $40 billion, marking the highest level under President Tinubu’s administration.

The pressure from the British pound on the naira remains high, even though the number of Nigerian students studying in the UK has significantly decreased due to British policy changes aimed at reducing migration. Data from the UK Home Office shows that Nigerian student visas issued in the first half of 2024 total 4,669, a 68% drop from 14,772 in the same period of 2023. This reduction has led to 10,103 fewer Nigerian student visas, accounting for 43% of the total decrease in foreign student visas.

Historically, the UK has been a preferred destination for many Nigerians, due to strong cultural ties, similar time zones, shorter travel distances compared to the US and Canada, and the absence of a language barrier. Last year, Nigeria’s trade with the UK amounted to about €35 billion, or roughly one-third of its total foreign trade, with a trade surplus of over €10 billion.

However, weak oil production, fiscal challenges, low export capacity, increased foreign exchange hoarding, and speculative activities continue to strain Nigeria’s foreign exchange market.

UK inflation data from the Office for National Statistics (ONS) shows that inflation in October accelerated to 2.3%, exceeding the expected 2.2%, which contributed to a sharp rise in the pound against major currencies, including the naira. Core inflation also increased, highlighting persistent inflationary pressures.

Outlook for the British Pound

The fundamentals for the British pound remain mixed and tilt toward a bearish outlook, offering the naira some breathing room at the N2,500/£1 resistance level. A 0.1% contraction in the UK’s GDP in October and weaker-than-expected third-quarter growth have contributed to the pound’s decline.

The US dollar has strengthened, particularly following the political developments surrounding Trump’s victory, and growing uncertainty regarding the Federal Reserve’s future interest rate cuts. Furthermore, geopolitical tensions, especially the escalation between Russia and Ukraine, have impacted the British pound, with the currency remaining under pressure from the stronger US dollar.

ICANN Launches Program To Assist Small Businesses In Acquiring New Domain Extensions

ICANN Launches Program To Assist Small Businesses In Acquiring New Domain Extensions

The Internet Corporation for Assigned Names and Numbers (ICANN) launches the Applicant Support Program (ASP) to provide financial and technical assistance to small businesses seeking new Generic Top-Level Domains (gTLDs). This initiative is part of ICANN’s New gTLD Program: Next Round, which allows businesses, organizations, and communities to register unique domain endings such as “.brandname” or “.community” for the first time since 2012.

The program aims to encourage innovation and diversity online by helping organizations create customized online identities tailored to their specific needs.

What Are Top-Level Domains (TLDs)?

A Top-Level Domain (TLD) is the part of a website address that follows the dot, such as “.org” in “www.icann.org.” Common TLDs include “.com,” “.net,” and “.edu.” ICANN’s initiative expands these options to include generic TLDs (gTLDs) that reflect specific communities, cultures, languages, or industries.

For instance, a tourism company could apply for “.travel,” or a local community might register a TLD in their native language or script.

Making TLDs Accessible to Smaller Organizations

The cost of applying for a gTLD can be high, which limits access to larger companies. To address this, ICANN’s ASP reduces application fees by 75-85% for eligible organizations and provides free training and access to expert services.

Pierre Dandjinou, ICANN Vice President for Africa, states, “This program is a significant step toward encouraging innovation, competition, and consumer choice in the domain industry. It will allow more entrepreneurs, small businesses, and nonprofits to participate in shaping the internet of the future.”

Eligibility and Application Process

Organizations must demonstrate financial need and viability to qualify for the program. Eligible participants include:

  • Nonprofits or charities
  • Intergovernmental organizations (IGOs)
  • Indigenous or tribal organizations
  • Micro or small businesses with a social impact or public benefit
  • Micro or small businesses from less-developed economies

The application period is open for 12 months, but ICANN encourages early submissions as support will be provided on a first-come, first-served basis. Full details on eligibility and criteria are available in the ASP Handbook.

Significance for Nigeria and Developing Economies

This initiative is especially important for small businesses, community organizations, and underrepresented groups in Nigeria and other developing countries. It offers opportunities for localized online identities, increases visibility in the digital space, and fosters innovation across diverse industries.

By reducing financial barriers and providing the necessary resources, ICANN empowers organizations to take control of their online presence, contributing to a more inclusive and dynamic global internet ecosystem.

Dangote Refinery’s Petrol Production Enhances Naira Stability – Taiwo Oyedele

House Of Reps Advances Bill To Enable Diaspora Voting

A bill seeking to amend Nigeria’s constitution to allow citizens living abroad to vote has passed its second reading in the House of Representatives.

The legislation, co-sponsored by Speaker Abbas Tajudeen and Sodeeq Abdullahi, aims to modify the 2022 Electoral Act to accommodate diaspora voting.

The bill has been referred to the Constitution Amendment Committee for further legislative scrutiny, following an earlier review by the Committee on Electoral Matters.

During debates on the bill’s principles, Abdullahi argued that diaspora voting is consistent with Section 39 of the 1999 Constitution, which guarantees freedom of expression and opinion. He emphasised that all Nigerians, regardless of their location, have a right to participate in selecting their leaders.

Nigerians in the diaspora contribute significantly to the nation through remittances and should have a say in its democratic processes, Abdullahi stated.

He highlighted the economic impact of diaspora remittances, noting their role in Nigeria’s development. He added that granting voting rights to Nigerians abroad would promote inclusivity in the country’s democracy.

The proposed legislation ensures that diaspora voting would not invalidate existing laws but rather create a platform for Nigerians abroad to participate in elections conducted by the Independent National Electoral Commission (INEC).

As the bill progresses, it reflects growing calls for the inclusion of diaspora Nigerians in electoral processes, further aligning the nation’s laws with global democratic practices.

Meter Upgrade Fees Spark Tension in Nigeria’s Power Sector

Dangote Refinery’s Petrol Production Enhances Naira Stability – Taiwo Oyedele

The Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, asserts that the production of petroleum products by the Dangote Refinery strengthens the naira and boosts Nigeria’s economic stability.

During a virtual stakeholder session with tax consultants and chief financial officers (CFOs) on the proposed tax reform bills, Oyedele highlights the refinery’s critical role in reducing Nigeria’s reliance on imported refined petroleum products. The bills are currently under review by the National Assembly.

Economic Growth Indicators Amid Reforms

Oyedele notes that the ongoing tax reforms coincide with positive economic developments, including increased crude oil production, which now reaches approximately 1.8 million barrels per day. He emphasizes that the commencement of local refining by the Dangote Refinery marks a pivotal moment for Nigeria’s energy sector.

He assures stakeholders that the refinery produces sufficient petroleum products to meet local demand, with surplus output available for export. “This development not only ensures product availability but also supports the naira by reducing foreign exchange pressures,” he explains.

Addressing Economic Challenges

Oyedele also highlights the repayment of Ways and Means—funds borrowed by the government through money printing—as a step toward stabilizing the economy. He warns against the practice of excessive money printing, stating that it disproportionately impacts the poor by devaluing the currency and driving inflation.

“When the government prints money without a corresponding increase in economic output, it acts as an indirect tax on citizens, eroding the value of their savings. This approach creates a potential crisis, particularly for vulnerable populations,” he says.

He urges Nigerians to embrace tax reforms as a means of ensuring sustainable economic growth. While acknowledging challenges such as exchange rate instability, high inflation, and the cost of doing business, he points to improvements in capital inflows, market performance, and international ratings as signs of progress.

Dangote Refinery’s Strategic Role

The Dangote Refinery, Africa’s largest single-train refinery, commences petrol production in September and currently operates at a capacity of 420,000 barrels per day. It plans to reach full operational capacity by mid-2025. The facility also produces jet fuel and naphtha, reducing Nigeria’s reliance on fuel imports while increasing local and regional supply.

The refinery starts selling petrol to local marketers and the Nigerian National Petroleum Company Limited (NNPCL), significantly cutting fuel importation costs. Aliko Dangote, the refinery’s owner, previously describes the reliance on imported fuel as an “absurd reality” for Africa’s largest oil producer.

In another development, Dangote Refinery files a case at the Federal High Court in Abuja to challenge import licenses granted to NNPCL and other companies, arguing that such licenses undermine local refining efforts. The refinery has, however, announced plans to withdraw the case by January 2025.

Oyedele’s remarks underline the refinery’s potential to transform Nigeria’s energy landscape while contributing to broader economic stability and growth.

Dangote Refinery Resumes Importation Of US Crude After Three-Month Break

Meter Upgrade Fees Spark Tension in Nigeria’s Power Sector

A contentious dispute has erupted in Nigeria’s electricity sector as Distribution Companies (DisCos) and consumers clash over mandatory meter upgrades. The deadline for compliance, set for November 24, 2024, has intensified the tension.

At the centre of the controversy is an order from DisCos mandating consumers to upgrade outdated meters or face reversion to estimated billing. Many Nigerians see this directive as an added financial burden amid soaring living costs and economic hardship.

Residents in Lagos expressed frustration over the policy. Abike John, a mother of three, lamented the impact on her household budget:

“I am already struggling to manage my electricity expenses, and now they want me to pay for a meter upgrade. Why can’t the cost be absorbed as part of their operations?”

Similarly, Adebayo Sulaimon, another Lagos resident, criticised the policy:

“We’re already grappling with high electricity tariffs, and now this? It’s too much for the average Nigerian to bear.”

DisCos defend the upgrades, citing the need for efficiency and enhanced service delivery. A senior representative, who spoke anonymously, compared the process to updating outdated technology:

“Upgrading meters is crucial for reducing technical errors and improving billing transparency. Unfortunately, we do not have free meters to distribute.”

Two major providers, Ikeja Electric Plc and Eko Electricity Distribution Company (EKEDC), recently directed customers using old Unistar prepaid meters to replace them by the deadline or face estimated billing. This sparked widespread backlash, prompting interventions from the Nigerian Electricity Regulatory Commission (NERC) and the Federal Competition and Consumer Protection Commission (FCCPC).

The regulatory bodies urged the DisCos to halt plans to phase out functional meters, stressing that Unistar’s devices remain operational. They also reaffirmed that under the Nigerian Electricity Supply Industry Act, DisCos are responsible for replacing faulty or obsolete meters without charging customers.

NERC reiterated this in a statement shared via its official X account:

“No customer with a meter should be forcefully migrated to estimated billing. If any meter is deemed obsolete or faulty, it is the responsibility of the DisCo to replace it free of charge, provided the fault was not caused by the customer.”

The statement urged consumers to report violations via dedicated channels and assured them of regulatory oversight to safeguard their rights.

Adding to the discontent is the role of Meter Asset Providers (MAPs), approved by NERC to supply and install meters. Consumers have complained of delays and inefficiencies, further straining trust in the system.

As the November 24 deadline looms, the standoff underscores the challenges in balancing regulatory enforcement, consumer protection, and operational efficiency within Nigeria’s electricity sector.

Interswitch Reinforces Commitment to Financial Inclusion as 2024 IFIC Diamond Sponsor

Interswitch Reinforces Commitment to Financial Inclusion as 2024 IFIC Diamond Sponsor

2024 IFIC: Interswitch Champions Financial Inclusion Advancement

Interswitch, one of Africa’s leading integrated payments and digital commerce companies, has reinforced its commitment to advancing financial inclusion and innovation as the exclusive Diamond sponsor of the 2024 International Financial Inclusion Conference (IFIC).

Organised by the Central Bank of Nigeria (CBN) in collaboration with The World Bank, the Bankers’ Committee, and the Financial Inclusion Steering Committee, the conference was held at the Landmark Event Centre, Victoria Island, from November 12–13, 2024.

Themed “Inclusive Growth: Harnessing Inclusion for Economic Development,” this year’s event brought together global leaders, policymakers, innovators, and stakeholders in the financial services industry to deliberate and strategise on advancing financial inclusion for socio-economic development.

During a plenary session at the recently concluded conference titled “New Frontiers in Innovation: Accelerating Digital Financial Services for Financial Inclusion and Development”, Akeem Lawal, Managing Director, Payment Processing and Switching, Interswitch Purepay, underscored the transformative potential of public-private partnerships, emphasising that financial inclusion is essential to driving Nigeria’s economic prosperity.

He noted, however, that challenges such as limited access, inadequate infrastructure, identity barriers, and low literacy levels continue to hinder progress. Addressing these issues, he stressed, requires innovative solutions bolstered by robust public-private collaborations. Lawal also shared valuable insights into how these partnerships can accelerate the adoption of digital financial services and enhance the Nigerian payment system

“For Interswitch, public-private partnerships have been instrumental in addressing industry challenges. Years ago, we partnered with the Federal Inland Revenue Service (FIRS) to digitise tax collection, resolving significant revenue collection issues. More recently, we collaborated with the Lagos State Government to tackle critical healthcare challenges through the LAGSHIP initiative.

These partnerships exemplify our dedication to leveraging innovation and collaboration to deliver sustainable solutions that drive financial inclusion and economic growth. We are committed to applying this model to future initiatives,” said Lawal.

He added, “Public-private collaborations are essential to sustainable development. At Interswitch, we remain committed to leveraging technology to deliver secure, accessible, and affordable financial services that empower individuals and businesses across Africa.”

The plenary session further explored global best practices, success stories and actionable strategies to expand digital financial services, highlighting solutions to improve access for underserved populations.

The International Financial Inclusion Conference served as a critical platform for stakeholders to come together and align with a shared vision of fostering a more inclusive financial ecosystem. Consequently, Interswitch showcased its unwavering commitment to driving financial empowerment and economic growth through innovation and technology.

NNPCL Introduces Utapate Crude Oil Blend, Plans To Double Output By 2025

Dangote Refinery Resumes Importation Of US Crude After Three-Month Break

The Dangote Refinery in Lagos resumes the importation of crude oil from the United States, following a three-month pause as it ramps up production.

Reports indicate that the refinery secures approximately two million barrels of WTI Midland crude from Chevron Corporation, with the shipment expected to arrive at its 650,000-barrel-per-day facility in Lagos by early December.

Earlier this year, the refinery regularly imported one to two shipments of US crude per month while utilizing domestic supplies. However, imports decreased around August due to an agreement with the Nigerian National Petroleum Company Limited (NNPCL). Under this deal, Dangote Refinery receives up to 400,000 barrels of local crude daily, paid for in naira instead of dollars.

Return to US Imports

Chevron is reportedly transporting the crude oil via the supertanker Azure Nova, scheduled to load around December 5. The decision to resume US imports is not fully explained, but industry insights suggest reduced shipping costs may have made US crude more competitive in recent months.

Local Sourcing Challenges

Dangote Refinery continues to face obstacles in sourcing adequate crude oil from Nigerian producers. Vice President Edwin Devakumar has raised concerns about international oil companies inflating crude prices, complicating procurement efforts.

The federal government’s agreement with NNPCL aims to simplify transactions by enabling payments in naira. However, doubts persist about NNPCL’s ability to fully meet the refinery’s crude requirements due to prior sales commitments with international traders.

Expanding Supply Options

In addition to importing crude from the US and Brazil, the refinery is exploring alternative sources, including Libya, to support its operations.

Strategic Role of Dangote Refinery

As Africa’s largest single-train refinery, Dangote Refinery plays a crucial role in reducing Nigeria’s dependence on fuel imports by addressing the nation’s refining limitations.

Beyond meeting local fuel demands, the refinery has started exporting products to Europe and other African countries. Recently, it marked a significant milestone by shipping its first petrol export to Togo, underscoring its growing influence in regional energy markets.

NNPCL Introduces Utapate Crude Oil Blend, Plans To Double Output By 2025

NNPCL Introduces Utapate Crude Oil Blend, Plans To Double Output By 2025

The Nigerian National Petroleum Company Limited (NNPCL) unveils its new crude oil grade, the Utapate crude oil blend, to the global market, showcasing it at the Argus European Crude Conference in London.

In a statement released in Abuja, Chief Corporate Communications Officer Olufemi Soneye announces that the Utapate crude is currently produced at 40,000 barrels per day (bpd), with plans to double output to 80,000 bpd by the end of 2025.

Utapate Crude: A Game-Changer

Sourced from Oil Mining Lease (OML) 13 in Akwa Ibom State, the Utapate crude features low sulfur content (0.0655%) and a reduced carbon footprint due to the elimination of gas flaring. These characteristics make it suitable for European buyers with stringent environmental requirements.

Export Milestones

Nicholas Foucart, Managing Director of NNPC Exploration & Production Limited (NEPL), describes the introduction of the Utapate crude blend as a major achievement for Nigeria’s oil exports.

“We commenced production of the Utapate crude in May 2024 and have since exported five cargoes to Spain and the United States. Two additional shipments are secured for November and December 2024. This is a significant boost to Nigeria’s presence in the global energy market,” Foucart states.

OML 13, managed by NEPL in partnership with Natural Oilfield Services Ltd (a subsidiary of SEEPCO Ltd), contains an estimated 330 million barrels of crude oil, 45 million barrels of condensate, and 3.5 trillion cubic feet of gas.

Plans for Increased Production

NNPCL aims to increase Utapate crude production to 50,000 bpd by January 2025 and 60,000-65,000 bpd by mid-2025, with a target of reaching 80,000 bpd by the end of 2025.

Broader Economic Impact

NNPCL emphasizes that this initiative supports Nigeria’s efforts to increase crude oil production and revenue generation. As part of broader efforts, Nigeria’s crude output currently stands at 1.8 million bpd, with a target of 2 million bpd by year-end. These developments are expected to strengthen the country’s foreign exchange earnings and contribute to economic stability.

Tax Reform Bills Replace Finance Act Upon Enactment – Taiwo Oyedele

Tax Reform Bills Replace Finance Act Upon Enactment – Taiwo Oyedele

The Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, says the Finance Act will become obsolete once the proposed Tax Reform Bills are passed into law by the legislative and executive arms of government.

During a stakeholder session for tax consultants and chief financial officers (CFOs), Oyedele explains that the committee recommends discontinuing the annual Finance Act in favor of a more stable and predictable tax framework. He emphasizes that the Tax Reform Bills will integrate relevant provisions from previous Finance Acts, making them unnecessary after the reforms take effect.

Why the Shift to Tax Reform Laws?

Oyedele highlights the disruptions caused by annual Finance Acts, describing them as a source of uncertainty.

“At the last minute, a new Finance Act emerges, leaving businesses scrambling to understand its implications. With these reforms, we aim to establish a stable system that will remain effective for at least five years,” he explains.

He adds that any regulations not included in the Tax Reform Bills will no longer apply once the bills are enacted.

“Anything missing from these bills is not intended to exist after they are passed,” Oyedele states, emphasizing that all current tax laws have been considered during the drafting process.

The committee proposes a five-year review cycle for the new tax framework to ensure it remains relevant and effective.

Background on Finance Act Amendments

Earlier this year, the Nigerian Senate amended the 2023 Finance Act, increasing the windfall levy on banks’ foreign exchange revaluation gains from 50% to 70%. This move sparked debates about its timing and potential impact.

Critics argue that retroactive tax measures, such as the windfall levy, undermine trust and create legal uncertainties. Some experts warn that these policies could discourage investment and shift the financial burden to customers.

The proposed Tax Reform Bills aim to address these challenges by offering a comprehensive, transparent, and predictable fiscal policy framework designed to foster economic growth and attract investments.

NDDC Partners With Chevron On 70.75km Road Linking Warri To Escravos

NNPC Seeks Dismissal Of Dangote Refinery’s Lawsuit

The Nigerian National Petroleum Company Limited (NNPCL) has requested the Federal High Court in Abuja to dismiss a lawsuit filed by Dangote Petroleum Refinery and Petrochemicals FZE, describing it as “incompetent.”

In a preliminary objection filed by NNPCL’s legal team, led by Senior Advocate of Nigeria (SAN) Kehinde Ogunwumiju, the company argued that the suit lacks merit and is premature. The objection, dated November 15, seeks to either strike out the case entirely for lack of jurisdiction or remove NNPCL as a defendant.

Grounds for Objection

NNPCL argued that:

  1. Dangote Refinery lacks the legal standing to initiate the suit.
  2. The case presents no actionable cause.
  3. NNPCL, as named in the suit, is not a valid legal entity.

An affidavit supporting the objection, deposed by Isiaka Popoola of Afe Babalola & Co, stated that Dangote Refinery sued “Nigeria National Petroleum Corporation Limited (NNPC),” a non-existent entity. A search on the Corporate Affairs Commission (CAC) website confirmed that the correct name is “Nigerian National Petroleum Company Limited.”

Claims by Dangote Refinery

Dangote Refinery had sued NNPCL alongside the Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and five oil marketers. The refinery alleged that NMDPRA violated the Petroleum Industry Act (PIA) by issuing import licenses without a declared shortfall in petroleum products.

The company is seeking:

  • Nullification of the licenses.
  • A declaration that NMDPRA failed to support local refineries as mandated by law.
  • N100 billion in damages for continuing to issue licenses despite Dangote Refinery’s production capacity exceeding domestic demand for certain petroleum products.

Justice Inyang Ekwo has set January 20, 2025, for a report on the case settlement or continuation of proceedings.

Oil Marketers’ Position

Three oil marketers—AYM Shafa Limited, A.A. Rano Limited, and Matrix Petroleum Services Limited—have also opposed Dangote Refinery’s suit, arguing that its demands could harm the country’s oil sector. They claimed that Dangote Refinery has not consistently met Nigeria’s daily petroleum needs and warned that granting its requests would create monopolistic challenges in the industry.

Dangote Refinery Begins Petrol Exports To West Africa

FAAC Distributes N1.411 Trillion For October

FAAC Disbursement

The Federation Accounts Allocation Committee (FAAC) has distributed N1.411 trillion among the Federal Government, States, and Local Government Councils (LGCs) for October 2024.

This information was disclosed in a communiqué issued by Mr. Bawa Mokwa, Director of Press and Public Relations at the Office of the Accountant-General of the Federation, during FAAC’s November meeting in Bauchi State. The meeting, chaired by the Accountant-General of the Federation, Oluwatoyin Madein, followed the 2024 National Council on Finance and Economic Development (NACOFED) session hosted by the Bauchi State Government.

Revenue Breakdown

The total revenue of N1.411 trillion comprised:

  • Statutory Revenue: N206.319 billion
  • Value Added Tax (VAT): N622.312 billion
  • Electronic Money Transfer Levy (EMTL): N17.111 billion
  • Exchange Difference Revenue: N566 billion

The communiqué noted that the gross revenue available in October was N2.668 trillion. Deductions included N97.517 billion for collection costs and N1.159 trillion for transfers, interventions, and refunds.

Allocation Details

From the distributable revenue:

  • The Federal Government received N433.021 billion.
  • State governments received N490.696 billion.
  • Local Government Councils received N355.621 billion.
  • Oil-producing states received N132.404 billion as derivation revenue (13% of mineral resources).

Statutory Revenue Highlights

Gross statutory revenue in October amounted to N1.336 trillion, representing an increase of N293.009 billion compared to September’s figure of N1.043 trillion. Similarly, VAT revenue rose from N583.675 billion in September to N668.291 billion in October, an increase of N84.616 billion.

The communiqué attributed the revenue growth to significant increases in oil and gas royalties, excise duties, VAT, import duties, petroleum profit tax, and companies’ income tax. However, it noted decreases in EMTL and Common External Tariff (CET) levies.

Dangote Refinery Begins Petrol Exports To West Africa

NGX Investors Gain N167bn As Tier-1 Banks Lead Market Rally

Stock Exchange Closes Trading Week With N30bn Gain

Investor confidence surged on the Nigerian Exchange (NGX), resulting in a N167 billion boost in market capitalisation as interest grew in banking, cement, and other key sectors.

The all-share index advanced by 26 basis points, closing at 98,227.50 points. Analysts attributed the positive momentum to sustained buying interest in WAPCO (+9.98%), ZENITHBANK (+2.05%), and DANGSUGAR (+7.33%), among other stocks.

The market’s year-to-date return rose to 31.37%, though it remained slightly behind the annual inflation rate of 33.88%. Investor sentiment stayed strong, with significant buying activity observed in medium- and large-cap stocks.

Trading Activity Overview

Market activity saw a notable uptick, with total trading volume and value increasing by 10.95% and 31.58%, respectively. According to Atlass Portfolios Limited, investors traded approximately 370.52 million units worth N8.45 billion across 10,026 deals.

ACCESSCORP led in trade volume, contributing 6.96% of the total, followed by UBA (6.79%), WAPCO (5.77%), GUINEAINS (4.90%), and ZENITHBANK (4.25%).

On the value chart, SEPLAT dominated with 16.51% of the day’s total trade value. AUSTINLAZ and TANTALIZER topped the gainers’ list with a 10% price appreciation each, followed by WAPCO (+9.98%), HONYFLOUR (+9.95%), and EUNISELL (+9.94%).

Gainers and Losers

The session saw 38 gainers against 27 losers, with notable gainers including CADBURY (+9.92%), JOHNHOLT (+9.86%), and 31 others. On the flip side, NNFM and RTBRISCOE led the losers’ list with a 10% price drop each, followed by NEIMETH (-5.13%), STANBIC (-5.09%), and NASCON (-5.00%).

Sector Performance

Four of the five major market indices closed in the green:

  • Consumer Goods (+1.09%)
  • Industrial Goods (+0.78%)
  • Insurance (+0.78%)
  • Banking (+0.06%)

These gains were driven by upward movements in DANGSUGAR (+7.33%), WAPCO (+9.98%), MANSARD (+4.01%), and ZENITHBANK (+2.05%). However, the Oil & Gas index dipped slightly (-0.09%) due to selloffs in OANDO (-0.86%).

Market Wrap-Up

The overall market capitalisation grew by N166.63 billion, closing at N59.53 trillion, highlighting the sustained bullish sentiment across the NGX.

FCCPC Exposes Substandard And Unregistered Sugar In Nigerian Markets

Nigeria Customs Generates N2 Trillion Revenue At Apapa Command

The Apapa Port Command of the Nigeria Customs Service (NCS) has announced a revenue collection of N2.01 trillion as of November 19, 2024. This was disclosed by the Customs Area Comptroller (CAC), Comptroller Babatunde Olomu, during a parade of officers and personnel on Wednesday in Lagos.

Comptroller Olomu expressed confidence that the command would surpass its N2.2 trillion revenue target for the year by the end of November, well ahead of the December deadline.

He credited the achievement to inspiration drawn from the Comptroller-General of Customs (CGC), Bashir Adeniyi, who recently revealed a total revenue collection of N5.07 trillion by the service during the CGC Conference in Abuja.

“The Apapa Port Command plays a pivotal role in the overall performance of the service nationwide, contributing 40% of the total N5.07 trillion revenue collected so far. This highlights the immense responsibility placed on our command,” Olomu stated.

Recognizing Excellence

In acknowledgment of outstanding contributions, the command is planning an awards ceremony to honor exceptional officers and stakeholders who played significant roles in its success in 2024.

“Some units and individuals will receive plaques of recognition for their excellent performance. The Compliance Unit, for example, recovered over N2 billion in the past three months, while the Revenue Recovery Unit prevented the loss of N3 billion during the same period,” Olomu noted.

Among the awardees, Assistant Comptroller Muhammed Samad was recognized for his diligence in detecting under-valuation, and Inspector of Customs Adamu Bashir was named the best-dressed and most punctual officer.

The Comptroller reiterated the importance of rewarding excellence to motivate staff and maintain high standards within the service.

FCCPC Exposes Substandard And Unregistered Sugar In Nigerian Markets

NDDC Partners With Chevron On 70.75km Road Linking Warri To Escravos

The Niger Delta Development Commission (NDDC) partners with Chevron Nigeria Limited to construct a 70.75-kilometer road connecting Omadino, Okerenkoko, and Escravos in Delta State. The road is designed to link Warri to Escravos, a vital hub for oil and gas activities, to improve access and stimulate economic development in the region.

The NDDC announces the project through its official X (formerly Twitter) account, highlighting the road’s role in enhancing transportation efficiency, fostering trade, and supporting oil and gas operations.

NDDC Managing Director, Dr. Samuel Ogbuku, underscores the significance of the project, stating that it will strengthen local connectivity and create opportunities for communities along the route. He emphasizes that the road will boost economic activities and streamline transportation for goods and services.

Dr. Ogbuku highlights the importance of the Public-Private Partnership (PPP) model in the road’s implementation. He refers to the successful collaboration between the NDDC and Shell Petroleum on the Ogbia-Nembe Road project, describing it as an example of how partnerships can deliver critical infrastructure and improve regional connectivity.

He also notes the recent Memorandum of Understanding with Nigeria Liquefied Natural Gas Limited (NLNG) to execute sustainable development projects across the Niger Delta. This partnership reflects the NDDC’s strategy to pool resources from public and private sectors to address infrastructure needs and ensure long-term growth.

The NDDC reaffirms its commitment to fostering development in the Niger Delta through innovative partnerships and impactful projects that benefit local communities while supporting environmental sustainability.

ICPC Tracks ₦610 Billion Across 1,500 Government Projects Nationwide
123...2,712Page 2 of 2,712
© 2023 - BizWatchNigeria.Ng