The benchmark yield on Nigerian government bonds fell below 19% as investors expanded their debt market asset holdings through secondary market demand. As the market prepares for the Debt Management Office (DMO) primary market auction, buying interest has plummeted the yield.
Due to the holiday, the DMO pushed back its monthly bond sale by one week. September’s bond market calendar shift mirrored that of August. Last month, the Debt Management Office postponed its auction for a week and decreased the offer size from N300 billion to N190 billion.
This move shows that the government’s borrowing needs may be reduced, maybe due to frontloaded borrowing in Q1:2024, a shift toward an expansionary environment, or the study of alternative funding options such as local dollar bonds, according to Meristem Securities.
The market expects the authority to reduce bond supply at the primary market auction to N190 billion versus N300 billion due to frontloading of assets. In the bond market, trading activities on local assets were relatively quiet as investors continued to digest the inflation slowdown.
Traders said they observed investors acquire papers on the mid segment of the curve (-2 bps) and sell-offs on the short end of the curve (+1 bps). 2031 FGN bonds, May 2033 papers, Feb 2034s bond, and 2053s saw increased demand in the secondary market.
Thus, the average mid-yield decreased, and analysts said they anticipate more buying interest this week, supported by coupon inflows. Across the benchmark curve, the average yield expanded at the short (+1bp) end due to the selloff of the JAN-2026 (+5bps) bond but declined at the mid (-1bp) segment.
The yield contraction was due to interest in the JUN-2033 (-6bps) bond. However, the average yield remained unchanged at the long end due to thin trading activities. Overall, the average yield stayed flat at 18.84%.
“We anticipate a sustained gradual downtrend in yields, as the spiking yields in the fixed income market are beginning to wane off, as evidenced by reduced auction offers and declining yields, even in OMO auctions.
“Although, yields are still expected to remain at elevated levels as liquidity will play a crucial role in influencing rate movement,” traders said.
Traders have noted that the sustained liquidity strain in the money market has pushed short-term benchmark interest rates upward. This trend, however, could potentially have a positive impact on mutual funds.
Low inflows from maturing instruments have negatively affected rate movement. However, the market anticipates that inflows from OMO bills and FGN coupon payments will boost liquidity levels in the financial system.
Money market rates have remained elevated in recent weeks as banks turn to the Central Bank of Nigeria’s (CBN) Standing Lending Facility (SLF) window to meet their short-term funding needs.
System liquidity has remained negative throughout the week, with most deposit money banks (DMBs) increasingly relying on the SLF window.
Interbank rates – open repo and overnight lending rate rose by 20 bps and 19 bps, respectively, to settle at 31.20% and 31.73%.
“We anticipate ample system liquidity due to inflows from FGN bond coupons”, AIICO Capital Limited said in a note.
Despite an inflow of N35.20 billion from OMO maturities, the overnight lending rate increased by 7 basis points week-over-week to 31.7%, according to Cordros Capital Limited.
According to the investment banking firm’s report, the average liquidity position in the market remained positive, closing at a net long position of N612.68 billion. This figure represents a significant increase compared to the previous week’s net long position of N198.32 billion.
“We envisage moderation in the overnight lending rate as we believe the combined inflows of N452.75 billion from FGN bond coupon payments totaling N442.75 billion and OMO maturities in the sum of N10.00 billion will boost liquidity in the financial system”.
The Federal Government has announced an extension of the deadline for linking Subscriber Identity Modules (SIMs) to National Identification Numbers (NINs). This decision comes after telecom operators refused to grant subscribers an extension to the previous September 14, 2024 deadline.
The Nigeria Communications Commission (NCC), the telecom regulator, had initially expected that all SIM cards would be deactivated without a verified NIN from September 15.
However, analysis suggests that approximately 65 million lines remained at risk, as an estimated one million lines could not have been linked during the period between the NCC’s deadline announcement and the actual cut-off date.
The telecom regulator’s data from March 2024 shows there were 219 million active lines across major networks such as MTN, Glo, Airtel, and 9mobile, with 153 million linked to NINs.
This means that about 66 million lines were unlinked to NIN after the NCC’s deadline announcement.
Meanwhile, the Chairman of the Association of Licensed Telecom Operators of Nigeria, Gbenga Adebayo, discarded the idea of a deadline extension and confirmed on Monday that the disconnection process is already ongoing.
“It’s difficult to provide exact numbers for the lines disconnected so far, but it’s certainly less than 66 million because, even on the day of the deadline, people were still linking their SIMs,” Adebayo said.
He affirmed that mobile operators were adhering to the NCC’s directives, describing the deadline as “acceptable and reasonable.”
Adebayo urged subscribers to comply, stating, “We can’t keep extending deadlines and going back and forth on this issue. This is a national concern, and these data are critical for national development.”
However, the National Association of Telecoms Subscribers urged the NCC to extend the deadline.
The President of the association appealed to the NCC to push the deadline to September 22, allowing customer experience centres to operate over the weekend.
He said this would enable subscribers to resolve any registration issues on the NIN portal and avoid potential disruptions to telecom services.
“Given the NIN portal’s technical glitches that persisted for almost a week earlier, and the improvements made last week, it’s only fair that the NCC allows subscribers to make up for the lost time. This extension will provide a much-needed buffer for subscribers to resolve any registration issues,” he said.
Barely two weeks ago, the President of the National Association of Telecommunications Subscribers, Adeolu Ogungbanjo, expressed worry that there were challenges in linking NIN to SIM cards, with many subscribers expressing frustration over slow speeds and congestion on the NIMC portal.
Ogunbanjo emphasised that the current portal issues hinder the successful completion of the NIN-SIM linkage before the deadline, stating, “The current situation will not meet the deadline if not addressed urgently.”
“Millions of lines were temporarily barred due to unverified NINs between July 28 and 29, causing widespread disruptions in the country. Although the NCC reversed its decision and granted subscribers additional time to comply, disconnections will now commence as the deadline has expired.
Prior to the deadline, an NCC official, who requested anonymity due to authorization restrictions, dismissed the possibility of any further extensions.”
“We will disconnect anyone who refuses to comply; the grace period is over. The reason why we extended the last time was the misconception of Nigerians who claimed that the NCC wanted to frustrate the August 1 protest.”
In March, the NIMC and the NCC formed a strategic collaboration in a move at enhancing processes related to the NIN-SIM linkage.
According to their financial results for the first half of 2024, due to non-compliance with the NIN-SIM linkage directive, MTN Nigeria and Airtel Africa collectively barred 13.5 million lines.
Contrary to earlier reports claiming 8.7 million verifications had been completed, MTN Nigeria reported blocking 8.6 million lines, while Airtel Africa stated that 4.8 million lines remained unverified.
The mandatory NIN-SIM linkage policy, implemented in December 2020, sought to eliminate unregistered SIMs and those without NIN links.
Despite multiple deadline extensions by the Nigerian Communications Commission (NCC), April 15, 2024, was initially set as the final deadline for barring subscribers with four or fewer SIMs that had unverified NIN details.
This article was written by Tamaraebiju Jide, a student at Elizade University
The Nigeria National Petroleum Company Limited (NNPC) has released a revised breakdown of the estimated price for petrol purchased from the Dangote Refinery. The NNPC, in a statement on Monday morning, released a detailed breakdown of the refined petrol product purchased from the Dangote Refinery on Sunday, September 15.
The NNPC also confirmed that it is currently paying Dangote Refinery in US dollars for September 2024 petrol offtake, with Naira transactions set to begin on October 1st, 2024.
“The estimated prices are based on negotiated terms between NNPC Ltd. and Dangote Refinery which recognise the current international gasoline prices and the prevailing foreign exchange rate in line with the provisions of the Petroleum Industry Act (PIA) 2021.
“The NNPC Ltd. can confirm that it is paying Dangote Refinery in USD for September 2024 PMS offtake, as Naira transactions will only commence on October 1st, 2024.
“We reassure Nigerians that any discount from the Dangote Refinery will be passed on 100% to the general public.”
While the data of the estimated price to be sold around the country remains the same, the analysis of the transaction it had with Dangote Refinery was altered.
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) fee during the first statement on Monday was ₦8.99 and was reduced to ₦4.495 during the second statement.
The first statement had an inspection fee of ₦0.97, a margin fee of ₦26.48 and a distribution fee of ₦15.
Additionally, the inspection and margin fees have been removed in the second statement released on Monday. The distribution fee has been increased from ₦15 to ₦42.45.
Finally, a new Midstream and Gas Infrastructure Fund fee of ₦4.495 has been added in the second statement.
This article was written by Tamaraebiju Jide, a student at Elizade University
The exchange rate between the Naira and the US dollar, according to the data released on the FMDQ Security Exchange, the official forex trading portal, showed that the Naira closed at 1665.50 per $1 on Tuesday, September 17, 2024. Naira traded as high as 1646.00 to the dollar at the investors and exporters (I&E) window on Tuesday.
How much is a dollar to a naira today in the black market?
Dollar to naira exchange rate today black market (Aboki dollar rate):
The exchange rate for a dollar to naira at Lagos Parallel Market (Black Market) players buy a dollar for N1662 and sell at N1665 on Monday, 16th September 2024, according to sources at Bureau De Change (BDC).
Please note that the Central Bank of Nigeria (CBN) does not recognize the parallel market (black market), as it has directed individuals who want to engage in Forex to approach their respective banks.
Dollar to Naira Black Market Rate Today
Dollar to Naira (USD to NGN)
Black Market Exchange Rate Today
Buying Rate
N1662
Selling Rate
N1665
Dollar to Naira CBN Rate Today
Dollar to Naira (USD to NGN)
CBN Rate Today
Buying Rate
N1645
Selling Rate
N1646
Please note that the rates you buy or sell forex may be different from what is captured in this article because prices vary.
New Price Of Petrol Across All States In Nigeria – NNPCL
The Nigeria National Petroleum Company Limited (NNPCL) has announced that petrol prices will increase across the states. The increase in price, Naija News reported, followed a statement from NNPCL stating that it bought petrol at a higher rate from Dangote Refinery on Sunday.
NNPCL’s statement also disclosed that contrary to the directive of the federal, Dangote Refinery sold its refined product on Sunday in US Dollars and not naira. The statement, however, disclosed that Dangote Refinery will sell its October product in naira.
A breakdown of the chart from NNPCL showed Dangote Refinery sold gasoline to NNPCL at ₦898.78 per liter. NNPCL paid a Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) fee of ₦8.99, an inspection fee of ₦0.97, a distribution cost in Lagos of ₦15, and a margin of ₦26.48.
NNPCL’s statement added that the estimated pump price in Lagos will be ₦950.22, Sokoto State ₦999.22, Kano State ₦999.22, Borno State ₦1,019.22, Kaduna ₦999.22, FCT ₦992.22, Oyo State ₦960.22, Lagos State ₦950.22, Rivers State ₦980.00, Imo State ₦980.22.
An analysis of the chart showed that except from Lagos State, other states of the federation will be paying higher because of distribution costs.
President Bola Tinubu announced on Monday that the Federal Government would establish a disaster relief fund to assist Nigerian people affected by floods and other calamities.
The President made the statement during a visit to Borno to express his condolences to the government and people in the wake of floods caused by the Alau Dam.
He stated that the fund was necessary because the weather has become increasingly unpredictable, leaving many areas of the country subject to its whims. He stated that the federal government would work with the business sector to establish the fund.
President of the Senate, Godswill Akpabio, who accompanied the President on the visit, said the National Assembly would collaborate with the Executive to establish the Fund.
Tinubu also visited the Shehu of Borno, Alhaji Abubakar Ibn El-Kanem palace, an Internally Displaced Persons camp at the Government Secondary School in Maiduguri and drove through the areas affected by the disaster.
“After my visit to the Shehu of Borno and the IDP camp, I have been reflecting on how to tackle this kind of disaster and the effects of climate change.
“There must be a disaster relief fund. I will invite the private sector to team up with us and help rebuild the affected areas.
“If we take a small percentage from FAAC and put it as disaster relief fund, which will include all of you, we will be activating and strengthening our sense of belonging,” he said.
The President thanked Gov. Abdulrahman Abdulrazaq of Kwara, Chairman of Nigeria Governors Forum and Gov. of Bauchi State, Bala Mohammed, Sokoto State Governor, Ahmad Aliyu; and Kogi Governor , Ahmed Ododo, who supported Borno.
President Tinubu commended all the ministries, agencies, and security outfits, particularly the military involved in evacuation of the victims and international organisations working in the state, for their efforts.
Oil marketers have suggested that the price of Premium Motor Spirit (PMS) produced by the Dangote Petroleum Refinery and released by the Nigerian National Petroleum Company Limited (NNPC) on Monday may justify the importation of the commodity into Nigeria.
Dealers have stated that imported petrol vessels are expected to start arriving in Nigeria from Tuesday and have called for transparency in the pricing of the PMS produced by the Dangote refinery.
The Organized Private Sector (OPS) has criticized NNPC’s role as the sole off-taker of petrol from the $20 billion Lekki-based refinery. They called for competition in the space, arguing that NNPC’s exclusive role would not encourage it.
On Monday, NNPC announced that it would sell the petrol lifted from the Dangote refinery at a price above N1,000/litre in the far north.
Its spokesperson, Olufemi Soneye, in a statement titled, ‘NNPC Ltd Releases Estimated Pump Prices of PMS from Dangote Refinery Based on September 2024 Pricing’.
Soneye explained that the price may go for as high as N1,019/litre in Borno State and N999.22 in Abuja, Sokoto, Kano, and others.
In Oyo, Rivers and other areas in the South, it will be N960/litre. The lowest price, according to an info graphic released by the NNPC, is N950 in Lagos and its environs.
“The NNPC Ltd has released estimated prices of Premium Motor Spirit, also known as petrol (obtained from the Dangote refinery) in its retail stations across the country.
“The NNPC Ltd also wishes to state that, in line with the provisions of the Petroleum Industry Act, PMS prices are not set by the government, but negotiated directly between parties at an arm’s length,” he stated.
The company explained that the product it loaded on Sunday was paid for in dollars.
“The NNPC Ltd can confirm that it is paying Dangote Refinery in USD for September 2024 PMS offtake, as naira transactions will only commence on October 1, 2024.
“The NNPC Ltd assures that if the quoted pricing is disputed, it will be grateful for any discount from the Dangote Refinery, which will be passed on 100 per cent to the general public,” the statement added.
Soneye indicated that the estimated pump prices for Premium Motor Spirit (PMS) were derived from the Dangote refinery and would be implemented at NNPC retail stations across Nigeria based on pricing for September 2024.
This announcement follows a disagreement between the Dangote Group and NNPC regarding the N898 per litre price that NNPC claimed was the cost at which Dangote sold the product. The Dangote refinery labeled this assertion as misleading and mischievous.
Importation of Petrol
The high price of the Dangote petrol released by NNPC would encourage the importation of the commodity, as they noted that some PMS vessels might arrive in Nigeria today (Tuesday), major oil marketers said.
“As it is now, I don’t know what magic they (NNPC and Dangote) are going to perform because a lot of companies are surely going to be involved in the importation of PMS. This is because whatever is going to come out of that place (Dangote refinery), it is either there will not be enough transparency in the allocation of the product, or there will be other issues.
“Also, some big players may not get enough quantity from the plant and they will have to complete this with imported products. Like I told you, all things being equal, from September 17 (today), PMS vessels by marketers, not NNPC, should start coming into the country,” a major marketer, who spoke on condition of anonymity due to lack of authorisation to speak on the matter, stated.
The source added, “Let me also state that as it is now, you will see PMS for N1,200/litre in some stations, this can also happen in Lagos because, at N950 and N1,019/litre, there will be a market for imported products. Yes, you will see a price of N950 here and in another location, you will get it at about N1,200. It now depends on the customers.
“Those who can queue may opt for the cheaper prices and wait in the queues, while people in haste will drive into stations that sell at higher rates to buy the product. So, the price by Dangote will encourage importation. And like I told you earlier, a lot of marketers are having their cargoes before the end of the month.”
Reaction of the IPMAN
The Independent Petroleum Marketers Association of Nigeria (IPMAN) expressed worry about the pricing of petrol from the Dangote refinery, persuading NNPC to ensure that the product was not sold at a higher price than imported fuel.
Such a disparity would be detrimental to the nation’s pursuit of energy self-sufficiency and could negatively impact consumers and marketers, IPMAN argued that.
According to IPMAN on Monday, the pricing strategy for locally refined petrol should reflect the advantages of domestic production, offering Nigerians a more affordable option.
The association emphasised that maintaining competitive pricing was crucial for the success of the Dangote refinery and for fostering a sustainable fuel market in the country.
IPMAN National Welfare Officer, John Kekeocha, stated this on Channels Television’s The Morning Brief breakfast programme on Monday.
“If NNPC can sell Dangote products higher than the imported products then it doesn’t make sense. What is the celebration we are having all these while then?” he queried.
The NNPC began loading the first batch of petrol from the Dangote Refinery on Sunday, saying it got petrol at N898 per litre from the private refinery.
Before lifting petrol from the Dangote Refinery on Sunday, NNPC retail outlets in Lagos sold petrol for around N855 but said a litre of Dangote petrol would sell for N950/litre in Lagos and N1,019 in Borno.
However, Dangote refinery denied selling petrol to NNPC at N898. A spokesman for the refinery Anthony Chiejina in a statement late Sunday described the claim by the NNPC as “misleading and mischievous.”
Terrifying price – Gillis-Harry
The President of the Petroleum Products Retail Outlets Owners Association of Nigeria, Billy Gillis-Harry, reacting to the price list, described it as “terrifying.”
He, however, noted that the breakdown of the prices by the national oil company was clear, adding that “NNPC did not even tell us if they are making any profit from the Dangote selling price.”
Gillis-Harry stated, “This is the kind of transparency that we are requesting that the industry should be inundated with. We need this transparency so that the public will understand what they are engaged in.
“However, whatever it is, the good news is that PMS will be rolling out into the tanks of commuters and that businesses will not be grounded to a halt due to scarcity. But as for the pricing, I believe there will be a
The PETROAN president called for minimal importation of PMS while the country should try to stabilise the supply of products from the Dangote refinery.
He again pointed out this would be achieved when there was transparency, accurate and timely information from both NNPC and Dangote refinery.
OPS expresses concern
The President of the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture, Dele Oye, said NACCIMA members were concerned about NNPC’s role as the sole off-taker for the Dangote refinery.
He said, “The arrangement whereby NNPC is the sole buyer from the Dangote refinery does indeed create a monopolistic situation, which appears to contradict the principles of a deregulated market and is in conflict with the government’s current position that they have deregulated the sector. This raises concerns about the potential distortion of pricing mechanisms and the limited opportunities for other stakeholders to participate in the market.
“The conflicting statements between Dangote refinery and NNPC further underscore the need for clarity and transparency in the fuel pricing process. The public deserves a clear explanation of the rationale behind the pricing decisions to enhance trust and confidence in our energy sector. The recent price increase, while necessary, has had a significant impact on the already challenging inflationary situation, and has led to some businesses and even some state governments resorting to remote work arrangements.”
He asserted that the NNPC needed to open the market by allowing multiple buyers from Dangote refinery.
He added, “This would not only enhance competition but also ensure that prices reflected true market realities rather than being solely dictated by regulatory control.
“Furthermore, it is imperative that the NNPCL provide a clear timeline for the completion and commencement of operations at the Port Harcourt Refinery. This would introduce much-needed competition among the local refineries, thereby strengthening our energy security.
“The current uncertainty and perceived lack of transparency, as well as the perceived lack of demonstrated support for the Dangote Refinery, may send negative signals to potential foreign and existing local investors. This could undermine President Tinubu’s efforts to attract foreign direct investment and drive economic growth. It is essential that we address these issues promptly to build a more favourable investment climate that encourages sustainable development and prosperity for our nation.”
The President of the Lagos Chamber of Commerce and Industry, Gabriel Idahosa, said NNPC could not prevent Dangote refinery from selling PMS to other marketers.
Idahosa noted that independent marketers had called on the NNPC to allow them decide whether they could afford to buy at whatever price Dangote would sell and then sell accordingly.
He said, “If we can sell at N900 and make a profit, that’s our problem. If we cannot sell, and we are forced to sell above N898, and there are Nigerian buyers in various parts of the country who are willing to buy because they are not ready to stay in long queues at NNPC stations that are selling at N898, so be it.”
Idahosa observed that while independent oil marketers were not restrained from buying Dangote’s PMS, they may be hesitant to compete with NNPC’s pump prices in the open market.
“What NNPC can do, and it has done, is to say whatever price we and Dangote have agreed to pay is a private treaty between the supplier Dangote and the buyer NNPC. And NNPC will sell to you and me at the pump at N898, which is the price they announced.
“So, they have yet to fix the price for Dangote to sell its products, but they have sealed the price that you and me can buy from the pump,” he continued.
Nigerians were enmeshed in hardship and hunger worsened by declining average income levels, it was at this time that NNPC’s increase in pump price to a minimum of N898 following its purchase from the Dangote refinery, the LCCI president.
“It is difficult for the majority of Nigerians to afford it easily. That point is not in dispute,” Idahosa said. “The only point is, how do we gradually begin to see a reduction in the pump price of petrol?
“We have travelled through this road before (about) the high price of diesel and aviation fuel, but because the market was deregulated, it gradually and steadily came down. So, how can we see that for petrol? I think that is everyone’s primary concern,” Idahosa included.
This article was written by Tamaraebiju Jide, a student at Elizade University
Transcorp Power Plc lost an additional 10% of its market value when one of its directors sold shares on the Nigerian Exchange floor in the previous week.
Its share price has fallen after it paused from continuing its upward trend due to market liquidity constraints. Transcorp Power Plc’s directors are still selling shares to create liquidity for investors looking to trade the utilities stock on the market.
According to the most recent data from the Nigerian Exchange, the power generation company’s market value decreased substantially, from N335.20 to N301.70 per share.
Equities investors priced the power generating company’s 7.5 billion shares outstanding in the market at N2.262 trillion, according to details from the equities market.
At the current market value, Transcorp Power Plc is trading at about 22% discount to its higher price since it listed by introduction.
Details from the local bourse revealed that Non-Executive Director Indirect Shareholder through Woodrock Energy Resources Limited sold 5,652,911 units at the rate of N335.20 per share
The company told the Nigerian Exchange that the sale of Transcorp Power shares was to provide liquidity for its listing by Introduction.
Investors in Nigeria’s debt capital market have reduced their interest in local bonds as part of a rebalancing drive to maximise portfolio returns. A low-risk appetite Investors sold off their positions ahead of this week’s inflation statistics. The real return on portfolio has recently improved due to disinflation and a consistent rate.
The debt management agency is expected to cut interest rates on Wednesday due to insufficient bond supply in the primary market. Bond dealers reported adverse sentiments at the short end of the curve last week, as rates on the MAR-25 instrument increased by 153 basis points to 21.52%. The yield increased while investors reduced bond holdings.
Traders explained that the bond market had started the week on a bearish note with sell pressure observed across various maturities: 2031, May 2033, Feb 2034, 2050, and 2053 papers.
However, with the postponement of the FGN bond auction, the market ended the week positively, with renewed buying interest in select papers.
A slew of fixed-interest securities traders opened short positions ahead of this month’s bond auction. Overall, average bond yields appreciated by 15 bps to settle at 18.84%, CardinalStone Securities Limited told investors in an update. Fixed income analysts anticipate the influx of coupons and the expectation of a decline in headline inflation to contribute to a positive market sentiment.
Across the benchmark curve, the average yield expanded at the short (+15bps) and mid (+24bps) segments, Cordros Capital Limited said in its update.
The investment said the yield expansion was driven by sell pressures on the MAR-2025 (+147bps) and FEB-2031 (+53bps) bonds, respectively.
The yield curve, however contracted at the long end (-4bps) following demand for the JAN-2042 bond.
Notably, the DMO postponed the September 2024 FGN bond auction to 23 September due to the public holiday on Monday.
“We expect quiet proceedings in the secondary market as investors adjust their portfolios in anticipation of the upcoming auction”.
Analysts said they maintain medium-term expectation of elevated yields consequent on anticipated monetary policy administration globally and domestically, and sustained imbalance in the demand and supply dynamics.
The average yield on Nigerian Eurobonds fell below 10% as foreign portfolio investors boosted their involvement in the international capital market. In the United States, the yield on the 10-year Treasury note remains below 4% despite a falling consumer price index.
Analysts expect that African markets will see an influx of hot money on high-yielding sovereign assets in the coming month as the US Fed decreases interest rates.
The buying momentum in Nigerian sovereign Eurobonds was driven by the market’s anticipation that inflation would fall for the rest of the year, coinciding with the US Fed’s rate decrease.
Last week, purchasing interest at the short, mid, and long ends of the yield curve caused a 0.08% fall in the average yield to 9.95%. Cowry Asset Limited told investors.
Traders observed that activity was bearish at the start of the week after the US headline inflation dropped to 2.5% from 2.9%.
African bonds saw positive movement. Nigeria and Angola bonds both saw their prices increase. As a result, the average mid-yield on the Nigerian curve dropped.
In the new week, all eyes will be on the FOMC meeting as investors anticipate whether the Fed will decide on a 25 or 50 basis point rate cut.
According to the Bureau of Labor Statistics (BLS), headline inflation in the United States slowed by 40bps to 2.5% in August from 2.9%, marking the lowest printed since February 2021 when it settled at 1.7%.
This paved way for fed fund rates cut and Moody’s investors’ services has predicted 50 basis points reduction for Sept.
Investors sell Nigerian Treasury bills after the Central Bank of Nigeria (CBN) lowered spot rates during the primary market auction. With inflation moderated, the real return on investment has improved.
Despite changing market factors, the Apex Bank maintained its spot rate cut following an initial lucrative offer made to investors in the last auction.
Treasury bills traded on a pessimistic note last week, following profit-taking operations on both short- and long-dated bills. As asset prices fell due to the selloff, the average yield across all instruments increased.
Cordros Capital Limited said that the average yield grew by 62 basis points to 20.3% in the Treasury bills segment and 92 basis points to 23.6% in the OMO sector.
On behalf of the CBN, Debt Management Office (DMO) offered Nigerian treasury bills worth N161.88 billion to investors for subscription in the secondary market.
The DMO total offer across standard maturities was split into N6.78 billion for the 91-day, N4.92 billion for the 182-day and N150.18 billion for the 364-day bills.
According to auction results, the subscription level settled lower at N563.17 billion, which was a significant reduction when compared to N1.13 trillion bet on T-bill in the previous auction.
The auction closed with the DMO allotting instruments worth N161.88 billion to investors who stake huge bets on naira asset across standard maturities.
The breakdown showed that N10.84 billion was allotted to investors for the 91-day bills. Also, the authority sold N2.52 billion worth of 182-day bills, and N148.52 billion for the 364-day papers.
According to auction results, stop rates on 91-day bills slumped to 16.63% from 17.00%. Spot rate for 182-day bills was slashed to 17.00% from 18.94% while rate for 364-day bills was reduced to 18.59% from 18.94%.
Analysts said they expect ample liquidity in the system to spur demand for instruments, leading to a decline in yields in the secondary market.
The National Bureau of Statistics (NBS) reports that Nigeria’s headline inflation rate would fall further to 32.15 percent in August 2024. The NBS stated this in its Consumer Price Index (CPI) and Inflation Report for August 2024, which was published in Abuja on Monday.
According to the report, the figure is 1.25 percentage points lower than the 33.40 percent reported in July 2024. On a year-on-year basis, the headline inflation rate in August 2024 was 6.35 percent higher than the rate reported in August 2023 (25.80 percent).
Furthermore, the study stated that on a monthly basis, the headline inflation rate in August 2024 was 2.22 percent, which was 0.06 percent lower than the rate recorded in July 2024 of 2.28 percent.
“This means that in August 2024, the rate of increase in the average price level is lower than the rate of increase in the average price level in July 2024.”
The report said the increase in the headline index for August 2024 on a year-on-year basis and month-on-month basis was attributed to the increase in some items in the basket of goods and services at the divisional level. It said these increases were observed in food and non-alcoholic beverages, housing, water, electricity, gas, and other fuel, clothing and footwear, and transport.
Others were furnishings, household equipment and maintenance, education, health, miscellaneous goods and services, restaurants and hotels, alcoholic beverages, tobacco and kola, recreation and culture, and communication.
It said the percentage change in the average CPI for the 12 months ending August 2024 over the average of the CPI for the previous corresponding 12-month period was 31.26 percent.
“This indicates an 8.88 percent increase compared to 22.38 percent recorded in August 2023.”
The report said the food inflation rate in August 2024 increased to 37.52 percent on a year-on-year basis, which was 8.18 percent higher compared to the rate recorded in August 2023 at 29.34 percent.
“The rise in food inflation on a year-on-year basis is caused by increases in prices of bread, maize, grains, guinea corn, yam, Irish potatoes, water yam, and cassava tuber.
“Others are palm oil, vegetable oil, Ovaltine, Milo, Lipton, etc.”
It said on a month-on-month basis, the food inflation rate in August was 2.37 per cent, which was a 0.10 per cent decrease compared to the rate recorded in July 2024 at 2.24 per cent.
“The decline in food inflation on a month-on-month basis was caused by a decrease in the average prices of tobacco, tea, cocoa, coffee, groundnut oil, and milk.
“Others are yam, Irish potatoes, water yam, cassava tuber, palm oil, and vegetables, etc.”
The report said that “all items less farm produce and energy’’ or core inflation, which excludes the prices of volatile agricultural produce and energy, stood at 27.58 per cent in August on a year-on-year basis.
“This increased by 6.43 per cent compared to 21.15 per cent recorded in August 2023.’’ “The exclusion of the PMS is due to the deregulation of the commodity by removal of subsidy.”
It said the highest increases were recorded in prices of rents, bus Journey intercity, Journey by motorcycle, etc. “Others are accommodation service, laboratory service, x-ray photography, consultation fee of a medical doctor, among others.”
The NBS said on a month-on-month basis, the core inflation rate was 2.27 percent in August 2024. “This indicates a 0.11 percent increase compared to what was recorded in July 2024 at 2.16 percent.
“The average 12-month annual inflation rate was 25.18 percent for the 12 months ending August 2024; this was 6.00 percent higher than the 19.18 percent recorded in August 2023.”
The report said on a year-on-year basis in August 2024, the urban inflation rate was 34.58 percent, which was 6.89 percent higher compared to the 27.69 percent recorded in August 2023.
“On a month-on-month basis, the urban inflation rate was 2.39 percent, which decreased by 0.07 percent compared to July 02 at 2.46 percent.’’
The report said on a year-on-year basis in August 2024, the rural inflation rate was 29.95 percent, which was 5.87 percent higher compared to the 24.10 percent recorded in August 2023.
“On a month-on-month basis, the rural inflation rate was 2.06 percent, which decreased by 0.04 percent compared to July 2024 at 2.10 percent.’’
On states’ profile analysis, the report showed that in August, all items’ inflation rate on a year-on-year basis was highest in Bauchi at 46.46 percent, followed by Kebbi at 37.51 percent, and Jigawa at 37.43 percent.
It, however, said the slowest rise in headline inflation on a year-on-year basis was recorded in Benue at 25.13 percent, followed by Delta at 28.86 percent, and Imo at 28.05 percent.
The report, however, said in August 2024, all items inflation rate on a month-on-month basis was highest in Kwara at 4.45 percent, followed by Bauchi at 4.22 percent, and Adamawa at 3.99 percent.
“Ogun at 0.21 percent, followed by Abuja at 0.92 percent, and Kogi at 1.14 percent recorded the slowest rise in month-on-month inflation.”
The report said on a year-on-year basis, food inflation was highest in Sokoto at 46.98 percent, followed by Gombe at 43.25 percent, and Yobe at 43.21 percent. “Benue at 33.33 percent, followed by Rivers at 33.01 percent, and Bayelsa at 33.36 percent recorded the slowest rise in food inflation on a year-on-year basis.’’
The report, however, said on a month-on-month basis, food inflation was highest in Adamawa at 5.46 percent, followed by Kebbi at 4.48 percent, and Borno at 3.88 percent.
“Ogun at 0.08 percent, followed by Akwa Ibom at 0.45 percent and Sokoto at 1.00 percent, recorded the slowest rise in inflation on a month-on-month basis.”
The federal government has devised a strategy to capitalize on the seven trillion dollars of developing global Halal market products and services.
Mr. Aliyu Sheriff, Special Assistant to the President on Export Expansion (Office of the Vice President), made the announcement in a statement published by the Vice President’s spokesperson, Mr. Stanley Nkwocha, in Abuja on Monday.
Sheriff stated that, in order to achieve the objective, the Federal Government will launch a comprehensive strategy on Wednesday, September 17, to position the country as a leader in the halal economy.
The special assistant added that the project was part of an endeavor to diversify the economy through the halal market, which adheres to Islamic permissibility requirements while also embodying ethics, integrity, and universal values. According to him, the values resonate across cultures and regions.
Sheriff said the initiative would bring together government agencies, private sector leaders, and international partners with a view to capitalising on Nigeria’s position as the eighth-largest domestic Halal economy globally.
“The Halal economy represents a tremendous opportunity for Nigeria to diversify our economy, generate foreign exchange, and achieve sustainable growth.
“By increasing our Halal exports and focussing on strategic import substitution, we project an addition of nearly 1.5 billion dollars to our GDP by 2027,” Sheriff said.
“The success of Sukuk bonds and the growing appeal of Islamic banking demonstrate that Halal principles are compatible with global economic standards and can benefit all Nigerians,” he explained.
The presidential aide noted that the Halal economy extends beyond religious compliance, embodying principles of ethics, integrity, and quality that resonate across cultures.
Sheriff added that strategic focus on the Halal economy opens up new avenues for Nigerian businesses to compete on the global stage.
“It’s not just about tapping into a market; it’s about elevating our standards and practices to world-class levels,” he pointed out.
Nollywood, Nigeria’s vibrant film industry, has witnessed a meteoric rise in recent years, producing countless box office hits that have captivated audiences worldwide. Among these successful filmmakers, a select few have achieved a remarkable feat: surpassing the N1 billion mark in box office revenue.
These filmmakers have not only entertained millions but have also played a crucial role in shaping the narrative of Nigerian cinema and elevating it to new heights.
1. Kunle Afolayan
Renowned for his meticulous attention to detail and commitment to quality storytelling, Kunle Afolayan has consistently delivered films that resonate with audiences both domestically and internationally. His blockbuster hits, such as “October 1,” “The CEO,” and “The Figurative Thread,” have showcased his ability to craft compelling narratives that blend historical fiction, social commentary, and commercial appeal. Afolayan’s films have not only achieved commercial success but have also garnered critical acclaim, solidifying his position as one of Nollywood’s most respected filmmakers.
2. Kemi Adetiba
Kemi Adetiba has emerged as a force to be reckoned with in the Nigerian film industry, known for her bold and innovative approach to storytelling. Her directorial debut, “The Wedding Party,” broke box office records in Nigeria and became a cultural phenomenon. The film’s success catapulted Adetiba to international recognition, and her subsequent works, including “King of Boys,” have further cemented her status as a leading filmmaker. Adetiba’s ability to blend genres, tackle social issues, and create visually stunning films has made her a sought-after director in Nollywood.
3. Niyi Akinmolayan
Niyi Akinmolayan has carved a niche for himself in the comedy genre, delivering films that are both hilarious and thought-provoking. His breakout hit, “The Wedding Party 2,” was a massive commercial success, further establishing him as a box office draw. Akinmolayan’s films often explore themes of love, family, and societal expectations, but he delivers them with a unique blend of humor and heart. His ability to connect with audiences on a personal level has made him one of Nollywood’s most popular filmmakers.
4. Kayode Kasum
Kayode Kasum’s films have consistently performed well at the box office, thanks to his ability to create engaging narratives that cater to a wide range of audiences. His works, such as “Sugar Rush,” “This Lady Called Life,” and “Far From Home,” have showcased his versatility as a filmmaker, tackling various genres from romance to drama. Kasum’s films often feature strong female leads and explore themes of empowerment and self-discovery, making them relevant to contemporary audiences.
5. Toyin Abraham
Toyin Abraham is not only a talented actress but also a successful filmmaker and producer. Her films, such as “Aiyetoro,” “The Ghost and the Tout,” and “Elevator,” have been box office hits, showcasing her ability to create entertaining and commercially successful projects. Abraham’s films often reflect Nigerian culture and explore themes of love, family, and societal issues. Her success has helped to elevate the status of female filmmakers in Nollywood and has paved the way for others to follow in her footsteps.
6. Moses Babatope
Moses Babatope has made a significant impact on the Nigerian film industry with his critically acclaimed and commercially successful films. His works, such as “Love is War,” “The Ghost and the Tout,” and “The Wedding Party,” have showcased his ability to create compelling narratives that resonate with audiences of all ages. Babatope’s films often explore themes of love, betrayal, and redemption, delivering thought-provoking and entertaining experiences.
7. Tunde Apalowo
Tunde Apalowo is known for his ability to create visually stunning and emotionally resonant films. His works, such as “The Figurative Thread,” “October 1,” and “The CEO,” have been praised for their cinematography, acting, and storytelling. Apalowo’s films often explore themes of history, culture, and social justice, making them relevant and thought-provoking. His contributions to Nigerian cinema have helped to elevate the industry to new heights.
These filmmakers have played a pivotal role in the success of Nollywood, producing films that have captivated audiences both domestically and internationally. Their ability to create compelling narratives, showcase Nigerian culture, and deliver entertaining experiences has made them household names. As Nollywood continues to grow and evolve, it is clear that these filmmakers will remain at the forefront of the industry, shaping its future and inspiring a new generation of filmmakers.
The Nigeria Employers’ Consultative Association (NECA) has applauded the landmark agreement between the Federal Government (FG) and the Dangote refineries on the sale of PMS to NNPC Limited stating that the landmark agreement as this could signal the end of petrol scarcity and also lead to reduced pressure on FOREX demand.
The Director-General of NECA, Mr. Adewale-Smatt Oyerinde hailed the landmark pricing agreement that led to the lifting of petrol from the Dangote refinery. He stated that this singular event can potentially change the perennial fuel scarcity situation in the county and reduce the pressure on the Naira.
The Director-General noted that while the current pump price is way above the expected price due to the Dollar denominated Crude oil purchase, it is expected that the beginning of the Crude-for-Naira scheme agreed on from 1st October will cause a reduction in general price of the pump price.
Speaking further on the benefits of the recent agreement, the NECA boss averred that “this new direction would not only benefit the Government, it would also have a massive impact on the business community and the Nigerian populace in general.
He observed that the measure would moderate the cost of fuels, reduce the long queues at filling stations across the country, and support the energy needs of small businesses”.
Mr. Oyerinde also commended the Government’s intention to set up a one-stop shop that would harmonize the interests of all stakeholders, including regulatory and security agencies, to ensure a seamless implementation of the initiative. He stated that such a one-stop-shop would not only enhance the swiftness of approvals for the lifting of refined products but also be cost-effective.
Furthermore, the Director General identified a similar challenge in the local gas market, where the price of gas sold to domestic industries is benchmarked in US-Dollars.
He observed that industries, particularly the manufacturing sector, have suffered significant production setbacks due to limited foreign exchange and instability in the Naira, which has made it difficult to purchase adequate gas for production. He, therefore, urged the Federal Government to take similar steps to benchmark the price of gas in Naira to support local industries, especially the manufacturing sector.
inDrive.Freight, the delivery service from the leading ride-hailing platform, inDrive, has unveiled its impressive growth in Nigeria as more Nigerians and Nigerian businesses choose the platform to move their items from place to place.
inDrive.Freight is a delivery service offering an efficient and reliable solution for transporting heavy loads and personal belongings. Whether moving an entire apartment or delivering business inventory, inDrive.Freight provides a hassle-free experience that is trusted by thousands across Nigeria.
This innovative delivery service has seen significant traction in the first half of 2024, recording +60% in orders from H1 2024- January to July. The number of active drivers has also surged by 50% each month, providing reliable income opportunities for many drivers nationwide.
Remarkably, around 20% of these drivers are under 30, highlighting the platform’s role in addressing youth employment amidst Nigeria’s challenging economic landscape and empowering young Nigerians with steady and reliable income. The influx of younger drivers provides them with a reliable income and contributes to the overall economic stability of their communities.
“We are committed to growing our business and positively impacting the lives of young Nigerians,” said Timothy Oladimeji, Senior Business Development Manager at inDrive.
“The strong growth we’ve seen in the past months is a testament to the trust our users place in us, and we’re excited to bring inDrive.Freight to more cities across Nigeria.”
inDrive.Freight is currently operating in Lagos, but it’s gearing up for its next phase of expansion. Plans are to introduce the service to Abuja, ensuring that more Nigerians can benefit from its convenience and reliability.
The Dangote Petroleum Refinery and the Nigerian National Petroleum Company Limited have expressed differing views regarding the price of Premium Motor Spirit (PMS), commonly known as petrol, produced and released by Dangote Refinery on Sunday.
While both companies provide contrasting accounts of the petrol price dispensed that day, independent oil marketers are still awaiting confirmation of the commodity’s price from the sole off-taker, NNPC
Major oil marketers reported purchasing PMS from NNPC at N766/liter, while NNPC stated that it bought the product from Dangote at N898/liter.
NNPC also announced plans to load 16.8 million liters of petrol from the Dangote refinery on Sunday, differing from the refinery’s earlier announcement of 25 million liters per day.”
The spokesperson of NNPC, Olufemi Soneye, confirmed that over 70 trucks of PMS departed the Dangote refinery on Sunday, which was the first day for the release of petrol from the plant to the domestic market.
It was also gathered from the national oil company that over 48 million litres of crude oil had been supplied and scheduled for supply to the $20bn Lekki-based refinery by NNPC from December 2023 to October 2024.
NNPC officially commenced the loading of petrol from the 650,000 barrels per day capacity Dangote Petroleum Refinery on Sunday.
In a WhatsApp message to one of our correspondents confirming this and providing insight on the cost of the petrol from the Lagos-based refinery, Soneye said, “We successfully loaded PMS today (Sunday) at the Dangote refinery.
“The report stating that we (NNPC) purchased it at N1,300/litre is false. For this initial loading, the price was N898/litre. I can also confirm that we will receive 16.8 million litres. As of now, we have loaded over 70 trucks.”
Dangote Refinery vehemently denied the price, with Anthony Chiejina, the Dangote Group’s Chief Branding and Communications Officer, labeling the claim as ‘misleading and mischievous.’ He stated that the claim undermined the company’s recent milestone in addressing Nigeria’s long-standing energy crisis.
Chiejina asserted that the statement from NNPC was aimed at derailing the progress made towards alleviating energy insufficiency and insecurity, which had plagued the country for decades.
In a statement on Sunday, the Dangote official said, ‘Our attention has been drawn to a statement attributed to NNPC spokesperson, Mr Olufemi Soneye, that we sell our PMS at N898/litre to the NNPC.'”
This statement is both misleading and mischievous, deliberately aimed at undermining the milestone achievement recorded today, September 15, 2024, towards addressing energy insufficiency and insecurity, which has bedevilled the economy in the past 50 years.
“We urge Nigerians to disregard this malicious statement and await a formal announcement on the pricing, by the Technical Sub-Committee on Naira-based crude sales to local refineries, appointed by His Excellency, President Bola Tinubu GCFR, which will commence on October 1, 2024, bearing in mind that our current stock of crude was procured in dollars.”
Chiejina further clarified that the current stock of crude sold to NNPC was procured in dollars, with significant savings compared to existing import prices.
“With this action, there will be petrol in every Local Government Area of the country regardless of their remote nature.
“We assure Nigerians of the availability of quality petroleum products and putting an end to the endemic fuel scarcity in the country,” the statement added.
Marketers expectant of price
IPMAN President Abubakar Maigandi stated that IPMAN members had not yet received the price of petrol from NNPC, the sole off-taker of the product from Dangote.”
“We are hearing of different prices, but we have not heard from NNPC directly on the amount that they would want to sell the product to us. Remember that NNPC is the sole off-taker of the petrol from Dangote refinery. So, we are still waiting to hear from them.”
But a major oil marketer said they got petrol from NNPC at N766/litre, stressing that some major PMS dealers would start loading the product allocated to them by NNPC from Dangote refinery beginning from Monday.
“When NNPC gives marketers allocation, they (marketers) will simply go to Dangote to pick up. The payment will be to NNPC, while NNPC in turn pays to Dangote,” the source, who spoke on condition of anonymity because he was not authorised to speak on the matter, stated.
The official added, “NNPC sells to marketers at N766/litre, NNPC buys from Dangote at N898/litre. Marketers are supposed to mobilise their trucks to Dangote, pick up products, and then take them to their stations. The cost of transporting, fees, and other logistics will be borne by the marketers.”
It was gathered that the major marketers involved in this arrangement include Conoil, NIPCO, Total, Mobil, Oando (NNPC Retail), Adova and Depots and Petroleum Products Marketers Association of Nigeria members.
Market forces
NNPC’s Executive Vice President of Downstream, Dapo Segun, stated in a video shared by the company’s media department that the cost of petrol would be determined by market forces.
“NNPC is not a regulator. NNPC has no regulatory powers. We can’t say NNPC sets the price. The government is not involved. It is the market forces that set the price. So, Dangote says to us, ‘this is how much I want for it,’ and we say, ‘hey Dangote, if we go out there we can get it for this much. So, we won’t pay you this much for it.’ And we got into the negotiations, which took over a week. They come with their position, we come with a counter; they come with their revised position and we will counter it. And at the end of the day, we were able to reach an agreement on the price to pay for it,” he said.
On crude sale to Dangote, he said, “Payment will be done in naira. So, when the refinery buys a barrel of crude for $80, it is still $80. When the payment is due, it will be converted on that due date to naira and it will be paid in naira.
“The marketer, of which NNPC is one, goes to the refinery to buy the product in bulk in dollars, when that payment is due, instead of NNPC going to the market to chase dollars, NNPC pays for that product in naira. So, that is what it is. It is a simple payment solution, no more, no less.”
Fuel scarcity
Devakumar Edwin, speaking to journalists at the loading point in Lagos on Sunday, Devakumar Edwin, Vice President of Dangote Industries Limited, stated that the latest development would resolve the recurring fuel scarcity crisis that had plagued the country for 52 years.
He noted that the refinery’s production capacity was substantial, capable of meeting all of Nigeria’s needs and even having a significant surplus for export.”
He said, “Well, to quote my president, 52 years the country has been talking about resolving the problem of PMS and now we can produce PMS with a facility within Nigeria.
“The production capacity is so large that we can meet all the requirements of Nigeria and we have a huge surplus to export. So, this is a huge moment of pride for every Nigerian because this is a Nigerian-owned refinery built by a Nigerian and now producing PMS for Nigeria.”
He added that at full capacity, the refinery would load 290 tankers per day.
“In the next hour, you would see 30 more trucks lined up, and 40 tankers would be loaded simultaneously. An actual truck loading time is 40 minutes, which means we can load 290 a day of various products. This refinery is the biggest you can see anywhere else.
“We sell at our ex-factory, and it is for the buyers to plan and weigh means of evacuating by pipeline. Some contractors have to meet us if they want to build pipelines. NNPCL can also do that too. We sell at a factory, and anyone who wants to connect by pipeline can do so.
“Initially, we had committed 25 million litres and by next month, we can step it up to 30 million. The production capacity at full capacity is 54 million litres. We are discussing with NNPC that based on the crude allocation we are getting, we will be able to process and deliver all that is required.”
On plans to effectively distribute its products, the Dangote official said the facilities had equipment to load via road or sea, stressing that the major aim was to transport 100 per cent of its products via sea.
“We have both exporting facilities by ship and by road. I also saw some comments about so many tankers coming to load fuel here. Seventy-five per cent of the production can be evacuated through sea. In fact, we are ramping up to make it 100 per cent. Anything going to Calabar, Port-Harcourt or Warri and Apapa can be taken by sea. Only what is required by road will pass through our roads.
“But we also have facilities to load 85 per cent of the product via road. We are just building flexibility, but we can avoid all traffic congestion on the road by evacuating through the sea, and it would also bring down the cost of shipment. It’s an outrageous amount to load from here to Port-Harcourt or Warri. Moving through the sea will minimise the cost of logistics and the final amount paid by consumers.”
On his part, the Minister of Finance and the Coordinating Minister of the Economy, Wale Edun, said the refinery’s production of PMS would put an end to illegal fuel smuggling to neighbouring countries.
Edun, who paid a visit to the refining plant in company with the Executive Chairman, Federal Inland Revenue Service, Zaccheus Adedeji, stated, “We expect that this development today (Sunday) will put an end to fuel smuggling to neighbouring countries. If they want petrol, let it be done legitimately, formally and officially, and of course, that will give us extra foreign exchange revenue which is all important for our overall growth.
“Once again, we are all happy that this day has come to pass. We all should congratulate, and I must pay particular commendation and gratitude to the committee that did the nitty-gritty of how NNPC agreed with the Dangote refinery on the various terms on which this transaction will be done and where it will be possible to provide petroleum products in naira to the Nigerian market.
“Energy sufficiency is a great step to the industrialisation of Nigeria and the President (Bola Tinubu) is keen on food security, production, processing and other pillars that can aid our industrialisation.
“We have behind an edifice that represents Nigeria’s capabilities for global competitiveness. What is here can compete anywhere in the world, and we look forward to lower operation costs. As efficiency and scale increase, production costs will come down to delivering lower-cost products to the Nigerian market.”
Regarding pricing, Edun stated, “I think what Nigerians can look forward to is energy security and sufficiency. As we look forward, we can also look at the issue of cost. What we are expecting is that this refinery and even other refineries ramp up scale production and achieve greater economics of scale. There should be the opportunity and potential to reduce the cost, which will pass on to the consumer.
“We have to give them a chance; they have just started and let’s see what happens in the coming months.”
This article was written by Tamaraebiju Jide, a student at Elizade University
The Federal Government has introduced the Ministry of Finance Incorporated Real Estate Investment Fund, a new initiative designed to address Nigeria’s housing shortage. By collaborating with the pension and financial sectors, the fund aims to provide affordable housing options to Nigerians.
This development is a cornerstone of the One Million Homes Presidential Initiative, which seeks to offer low-cost mortgage financing to eligible citizens.
The Ministry of Finance has announced that the MREIF will transform the housing sector by increasing the number of Nigerians with access to affordable homes. This initiative is in line with the government’s goal of making homeownership more attainable, particularly for pension account holders.
It was revealed that a high-level meeting was held to discuss the launch of the MREIF. At the meeting, the Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun, emphasised the transformative potential of the fund.
He noted that the MREIF would provide cost-effective mortgage solutions, particularly benefiting pension account holders, and would serve as a critical component in addressing the country’s housing challenges.
“The launch of this fund represents a major stride in delivering affordable homes to Nigerians. With the support of the pension and financial sectors, we are confident that this initiative will transform the housing landscape and create significant opportunities for homeowners,” Edun said.
The MREIF will operate under a market-driven framework to ensure compliance with regulatory standards while promoting broad accessibility to homeownership.
The CEO of the Ministry of Finance Incorporated, Dr Armstrong Takang, highlighted the importance of transparency and market efficiency in managing the fund.
Takang stated, “The MREIF is designed not only to boost housing access but also to strengthen the mortgage market, creating a viable and sustainable pathway for homeownership across Nigeria.”
The Federal Government has assembled a team of industry leaders from the pension and financial sectors to ensure the success of the MREIF.
Prominent figures include Dr. Oluwatoyin Maiden, Accountant General of the Federation; Wale Odutola, Chief Executive Officer of ARM Pensions; Funmi Ekundayo, CEO of STC Trustees; and Sani Yakubu, co-coordinator of the MREIF.
Additional key stakeholders include Temitayo Ajayi of Vetiva Advisory, Saadu Jijji, Managing Director of PAL Pensions, Tony Odutola, Deputy Chief Investment Officer at FCMB Pensions LTD, and Nuhu Modibbo, Executive Director of Access Pensions.”
The experts involved in the MREIF possess extensive experience in pension fund management, real estate financing, and investment advisory. Their expertise will be invaluable in shaping the fund’s structure and deployment.
Their contributions will be crucial in ensuring that the MREIF achieves its goal of making affordable homeownership a reality for many Nigerians.
The government, through this developing approach, intends to eliminate the barriers that have long prevented many Nigerians from owning their homes.
The MREIF presents a unique opportunity for pension account holders to secure mortgage loans at lower interest rates, offering a sustainable solution to Nigeria’s housing crisis.
This article was written by Tamaraebiju Jide, a student at Elizade University
The Depot and Petroleum Products Marketer’s Association of Nigeria (DAPPMAN) has been accused by Devakumar Edwin, Vice President of Dangote Industries Limited, of reporting the Dangote Refinery to President Bola Tinubu due to its low-priced products. DAPPMAN’s secretary, however, has denied these allegations.
During a Nairametrics space session on X last week, Devakumar Edwin, Vice President of Dangote Industries Limited, claimed that oil marketers reported the Dangote Refinery to President Bola Tinubu, alleging that the refinery’s low-priced diesel was harming their businesses.
He also revealed that oil marketers had continued to boycott Dangote diesel and aviation fuel after the refinery lowered prices. According to Edwin, over 95 percent of petroleum product importers in Nigeria are not purchasing products from the Dangote refinery.
He said the refinery struggles to sell about 29 tankers of diesel per day due to low patronage from local petroleum product importers.
As a result of poor local patronage, the refinery, he said, exports most of its diesel and aviation fuel.
“Petroleum product marketers in Nigeria have written to President Bola Tinubu, complaining that the refinery’s local diesel prices, which have dropped from N1,200 to N1,000 and now to N900 per litre, are negatively impacting their businesses,” Edwin stated.
Although, several petroleum marketers’ associations have issued statements debunking this claim, a copy of the letter obtained by one of our correspondents on Sunday revealed the identity of the group that was accused by the Dangote official as the DAPPMAN.
In the letter addressed to the Senate President, Godswill Akpabio, on July 4, 2024, the association stated that the correspondence was to highlight issues in the Downstream Petroleum Industry which require urgent intervention to engender the sustenance of deregulation and free market policies as intended by the PIA 2021.
The letter signed by its Executive Secretary, Olufemi Adewole, was titled, “An Urgent Call For The Sustenance Of Deregulation And Free Market In The Downstream Petroleum Industry In Strict Compliance With The Petroleum Industry Act 2021”.
“We write to bring to the attention of the President of The Senate, some highlights of issues in the Downstream Petroleum Industry which require urgent intervention to engender the sustenance of deregulation and free market policies as intended by the PIA 2021.
“We recognise the need for the Nigerian Midstream and Downstream Petroleum Regulatory Authority to remain committed to the legislation establishing it with consistent policies. Deregulation and a free market are critical for the survival of this Industry and stipulations must remain fair with consistent policies which are required to achieve the real intendment of deregulation and liberalisation of the petroleum downstream sector.
“We also recognise and note the recent and boisterous support for Dangote refinery by the leadership of the National Assembly during your recent visit to the refinery and we hereby state emphatically that the success of the refinery would indeed be a thing of pride and joy to all of us as Nigerians,” the letter read in part.
It stated that before the establishment of the Dangote refinery, Nigerian business entrepreneurs had invested over N3tn in the nation’s downstream petroleum sector and the tilt towards the creation of a monopoly for the supply of Automotive Gas Oil to Nigeria’s downstream operators solely by the Dangote Refinery is detrimental not only to the downstream operators but the nation at large.
The association explained that the created monopoly deprives Nigerians of cheaper options, as the Dangote Refinery will always have the final say and dictate prices without any competing alternatives, just like it currently operates in the cement, sugar industry, the salt production sector and noodles sector.
It also alleged that the company’s diesel product far exceeds the average of 50/ppm sulphur required for AGO imports by marketers, “yet the regulator has restricted all other downstream operators to sourcing this product exclusively from the Dangote Refinery.”
The letter continued, “We are all aware of the antecedents of the Dangote Industries in the cement industry, the sugar industry, the salt production sector and the attempts made in the noodles sector all of which either left competing brands comatose or seriously bruised.
“With hindsight of the foregoing, however, we note with dismay, the apparent tilt towards the creation of a monopoly for the supply of Automotive Gas Oil to Nigeria’s downstream operators solely by the Dangote Refinery.
“It is on credible record that marketers’ AGO imports have complied with the Afri 5’ Gasoil and Gasoline specification of sulphur content not exceeding 50/parts per million (ppm) from 1st January 2024 despite the inability of local refining capacity, (including the Dangote Refinery), to meet this specification to date.
“Dangote refinery’s AGO presently has sulphur content exceeding 700/ppm, in accordance with waiver granted by the NMDPRA. This far exceeds the average of 50/ppm sulphur required for AGO imports by marketers.
“This is a clear adoption of Dangote Oil Refinery as the SOLE supplier of AGO to the nation. This situation is detrimental not only to the downstream operators but the nation at large. It deprives Nigerians of cheaper options, as the Dangote Refinery will always have the final say and dictate prices without any competing alternatives.
“In the spirit of deregulation, it is important that market forces are allowed free reign in the sector within the appropriate rule of Law. Dangote Refinery’s initial step was to crash the price of AGO from a ‘high’ of N1,700/litre to N1,200/litre and later to N1000/litre and later N900/litre despite the large inventory of the imported AGO with marketers which thus could not be sold as it was imported with very high forex rate.”
They stated that marketers with this huge volume of AGO saw the opportunity to reduce their losses when forex rates crashed and the naira appreciated against the US dollar as they sought to import cheaper AGO stock to ‘blend’ their retail pump price, reduce their losses and sell off their AGO stock.
“Unfortunately, the regulator came up with the restrictive policy which foreclosed importation of AGO thereby limiting the product source to only Dangote refinery,” DAPPMAN said in its letter.
The letter also alleged that the refinery consistently sells refined petroleum products to foreign traders at $50 per metric ton less than the price charged to local companies and charges in dollars without an option to pay in naira for local marketers.
“We emphasize that all the scenarios listed above are neither in tandem with the spirit of PIA 2021 nor with the Federal Competition and Consumer Protection Act, 2018, which collectively restrict monopoly of any sort and indeed, run contrary to President Bola Tinubu administration’s admirable policies to foster ease-of-doing-business in Nigeria,” it said.
DAPPMAN has urged the government to intervene in the situation by removing restrictions or forced limitations that compel marketers to source products from the Dangote Refinery until the Port Harcourt and Warri Refineries are fully rehabilitated.
“There should be no restriction or forced limitation of any marketer to be sourcing his product from Dangote Refinery until the Port Harcourt and Warri Refineries are fully rehabilitated and re-streamed to increase local refining capacity and provide product options for the nation.
“There should be no monopoly of sourcing and all marketers should be allowed to import fuels into the country in line with internationally recognised healthy specifications,” The letter concluded.
Commenting, the DAPPMAN Executive Secretary, Olufemi Adewole, in a chat with one of our correspondents, said the comments by the Dangote official didn’t paint the accurate picture.
“Please compare this actual paragraph of the letter which I signed to what Edwin quoted and twisted and you’ll see the difference,” He noted.
The secretary, when asked if the marketers would still patronise the company, replied, “Like yesterday, yes!!!”
“NNPCL as sold buyer is Indirectly saying they are maintaining subsidy as it means marketers will take from the NNPC stock lifted off Dangote Refinery. “
This article was written by Tamaraebiju Jide, a student at Elizade University
The Federal Government and the Federal Inland Revenue Service have endorsed the 2024 Annual MSME Finance Awards, a recognition event honoring institutions and stakeholders contributing to financial inclusion and growth for micro, small, and medium enterprises in Nigeria.
The organizers, The Economic Forum Series, Nairametrics, and DiGiComm Enterprises, announced that the awards ceremony will take place on September 27.
The Chief Executive Officer of Economic Forum Media Limited, Jude Ndu, said, “This year’s MSME Finance Awards is a testament to the growing importance of MSMEs in the Nigerian economy. It provides a platform to celebrate institutions that are ensuring financial services reach the grassroots, helping to stimulate economic growth.”
The award categories include MSME Bank of the Year, Best MSME FinTech Payment Platform, Best MSME Microfinance Bank, and MSME Insurance Company of the Year, among others.
The Chief Executive Officer of Nairametrics, Ugodre Obi-Chukwu, emphasized the role of data-driven insights in promoting MSME growth, adding, “At Nairametrics, we are focused on empowering MSMEs with the knowledge and data they need to make informed decisions.”
The award recognizes institutions that have truly championed innovation, execution, and sustainability in the MSME ecosystem.”
Also, the CEO of DiGiComm Enterprises Ltd., Ukaobisike Uzoije, said the awards would not only recognize excellence but also create opportunities for thought leadership and knowledge sharing.
“This event will bring together key players in the MSME space to discuss the future of financial inclusion and its impact on small businesses in Nigeria,” Uzoije said.
He noted that the event had also attracted support from stakeholders such as the Small and Medium Enterprise Development Agency of Nigeria Enhancing Financial Innovation & Access, and the Fintech Association of Nigeria.
Also, financial institutions such as Access Bank, Sterling Bank, and Heirs Insurance are set to participate in the awards ceremony.
The Federal Government has announced plans to reward innovative and resilient entrepreneurs who have excelled in their fields with monetary incentives.
According to Temitola Adekunle-Johnson, the Senior Special Assistant on job creation and MSMEs, entrepreneurs will be rewarded with houses, cars, and cash prizes as part of the 2024 MSMEs Week celebrations.
This article was written by Tamaraebiju Jide, a student at Elizade University
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