The contest for royal supremacy between Muhammad Sanusi II and Aminu Ado Bayero took an explicitly ethnic turn a few days ago when Hashim Dungurawa, the Kano State chairman of the New Nigeria People’s Party (NNPP), said President Bola Ahmed Tinubu was protecting Bayero from deposition and humiliation by Kano’s NNPP government because of Bayero’s “Yoruba lineage”!

“If the President thinks he will use a few of his kinsmen in Kano and the alleged Bayero’s Yoruba lineage to continue to keep the deposed Emir Aminu Ado Bayero in the State, let him wait for 2027, we will show him that those people will not help him,” Dungurawa said.

By Dungurawa’s  ethnic supremacist logic, Kano had a Yoruba emir from March 2020 to May 2024 since “lineage” means line of descent, which is traced patrilineally in most Nigerian societies, including Kano.

By the way, it was actually Muhammad Sanusi II who first covertly caused this whispering campaign to be created and amplified in 2020 in Kano in the aftermath of his deposition and the installation of Bayero as his successor. He did it to delegitimize Bayero.

Nor is this sort of atavistic ethnic baiting Sanusi’s first. For example, after former presidential spokesperson Garba Shehu characterized his Fulani supremacist, anti- Hausa (and anti-anyone who isn’t Fulani) article titled “The Fulani Factor in Nigerian Politics” as “Sanusi’s racist rubbish” in July 2000, he was so enraged that he lied in an Arewa House lecture that Garba Shehu’s parents were from Edo, as if Edo people were lesser humans.)

But what’s the basis for the astonishingly counterintuitive claim that Aminu Ado Bayero is a Yoruba man even though he is the spitting image of his later father, Ado Bayero?

Well, it’s because his mother, Hajia Maryam, who died in 2021, was the daughter of Zulkarnain “Sulu” Muhammadu Gambari, the 9th emir of Ilorin who died in 1992. In other words, she was the older sister of the current (11th) emir of Ilorin.

Although no Yoruba person regards the Ilorin ruling family as anything but Yoruba-speaking Fulani people, Sanusi and his ethnic supremacist supporters regard the family’s locational, linguistic, and possibly genetic, association with Yoruba people as a “stain” on the “purity” of their Fulani identity.

Never mind that Sanusi himself—and all emirs in the Northwest—have locational, linguistic, and genetic association with Hausa people, just like the Fulani emirs in Nupeland have locational, linguistic, and genetic association with the Nupe people. Or that ethnic cosmopolitanism is central to the originative imagination of the Dan Fodio caliphate.

The notion that Aminu Bayero is of “Yoruba lineage” because his mother was a Yoruba-speaking Ilorin Fulani princess is utter, misguided, counterproductive identitarian essentialism, that is, the pretense that there is such a thing primordial ethnic purism that is “unblemished” by interconnectedness with other identities.

The claim that Tinubu is protective of Aminu Ado Bayero (which, by the way, I resent because it has no basis in law since only governors can enthrone and dethrone traditional rulers) is particularly ironic because Ado Bayero was one of only a few traditional rulers (the other being the Sultan of Sokoto) who had the courage to tell Tinubu that his economic policies were strangulating the people.

In February this year, he told First Lady Remi Tinubu to let her husband know that ordinary people were in pain. “Although, we have several means of communicating to the government on our needs and requests, you are the surest way to tell the President the happenings in the country,” he said. “We get information daily that essential commodities and cost of living are high, and people are suffering, although it didn’t start with this government.”

How about the self-proclaimed “pure-bred” Fulani Sanusi who has encouraged his minions to play up the Yoruba ethnic “contamination” of Bayero as the reason Tinubu isn’t supporting him? Well, he is delighted with the current state of the economy and patted Tinubu on the back for removing subsidies from petrol.

“It’s injustice for anyone to blame the Tinubu administration for the current economic hardship because there is no other alternative than the removal of the fuel subsidy,” Sanusi said. “After all, Nigeria cannot even afford to pay the subsidy.”

He even went so far as to claim that the economy is in the toilet because Muhammadu Buhari resisted his counsel to “firmly and unequivocally eliminate fuel subsidies.” “The economy was poorly managed, and they [were] not willing to take advice,” he said.

A “Yoruba” emir was empathetic toward the suffering of his people and told a “fellow” Yoruba man, who is the president, the truth about the anguish his policies have caused people without fear of consequences, but an “undiluted” Fulani emir told the Yoruba president that his mass pauperization of people and the obliteration of their means of livelihood was all fine and dandy.

Yet the toadyish, sadistic “Fulani” emir who cheers while the people incinerate in infernal economic policies is causing his underlings to whisper that the truth-telling emir is being favored by the president out of a sense of ethnic solidarity.

Maybe the Sultan of Sokoto also secretly has tinctures of Yoruba (and possibly Kanuri) blood freely flowing in his veins that caused him to be defended and protected by the Tinubu presidency against a planned deposition Sokoto’s APC government for his alleged sympathies for the previous PDP government of Aminu Tambuwal.

 “And to the Deputy Governor of Sokoto, I have a simple message for you: Yes, the Sultan is the Sultan of Sokoto, but he is much more than that; he represents an idea, he is an institution that all of us in this country need to jealousy guard, protect, promote, preserve and project for the growth of our nation,” Vice President Kashim Shettima said at North-West Peace and Security Summit in Katsina State on June 25.

The truth Sanusi and his defenders don’t want to confront is that he is a deeply unpopular person in Kano. He is the only past emir in living memory whose appointment as an emir sparked a violent, spontaneous mass revolt because he wasn’t on the shortlist of princes recommended for emirship by the kingmakers. Sanusi Ado Bayero, Aminu Ado Bayero’s older brother, was the choice of the kingmakers.

Most people know that one of the central pillars of support for Aminu Ado Bayero is a scion of old money in Kano who detests and resents Sanusi and who is extremely close to Tinubu. The NNPP people know this. They know that Bayero’s Ilorin maternal identity (which Tinubu and his people don’t recognize as “Yoruba”) is incidental to the issues.

They also know that Rabiu Musa Kwankwaso and Tinubu had struck a deal that required Kwankwaso to spare Bayero in exchange for a favorable Supreme Court judgment and a chance to serve as a minister in Tinubu’s cabinet. His betrayal of this deal by dethroning Bayero hurts Tinubu deeply.

More than this, though, the dangerous game of reactionary ethnic purism that Sanusi is playing and that his minions in the political arena are trying to instrumentalize for national political machinations would inflict incalculable injury on identity formation in the North.

The North, even the Muslim North, is an intricate tapestry of multiple ethnic identities. These identities are united by a higher, overarching glue. In the case of the Muslim North, that glue is Islam, which is causing an ethnogenesis to emerge from a mishmash of identities. To delegitimize or alienate a Kano emir because he traces maternal ancestry to the geographic fringe of the North communicates to the people from that place that they are unwanted, that they don’t belong.

It reminds me of the grave error of judgment that northern Muslim elites made during the Olusegun Obasanjo presidency, from which the North hasn’t recovered.

Obasanjo threw an opportunity for the North to really live up to its "one North, one people" mantra and it failed. Of all Nigeria's former regions, the North is the only region that was ruled as one and that was unbroken until the regional structure was disbanded. Suddenly, because of Obasanjo's appointments, a northerner who was a Christian was no longer a "northerner." Even a northerner who was a Muslim (such as Ibrahim Ogohi) wasn't a "northerner" unless he came from the Northwest or the Northeast.

Obasanjo was clearly smarter than northern leaders because he destroyed the myth the North cherishes about itself by testing it. Tinubu may be inadvertently doing the same thing to the emirate system. If you don’t manage your diversity well, a smart, competing outsider will always exploit it to divide and conquer you. 

Now that my father and mother are dead and have gone to where the elderly go to rest their bones in death, I can confess my cigarette addiction. Not that either could put their hands on a Bible and vow that their firstborn was a nicotine-free teetotaler, but both card-carrying Christians thought my cigarette and alcohol use was a fleeting adolescence misstep when Satan took me up to the mountain and showed me the world, and said: “Is it not written that the earth is of the Lord and the fullness thereof; eat, smoke, drink and enjoy, son.” My father and mother were certain their ceaseless fire-for-fire prayers and biri-biri fasting round the clock were responsible for my repentance before ‘iji aye’, the world’s whirlwind, could sweep me off in my early teenage years. 

We had a cassava plantation in our Lagos State backyard back in the day when I was in secondary school. 

One sunny afternoon, the Devil knocked on my door and I opened it. He grabbed me by my left hand and led me to the green pasture downstairs. If you ever had a cassava plantation, you would know the canopy of tranquil neatness the tall-growing slender stalks provide underneath to nourish nature.

The evil that men do to the Devil lives in their hearts. Uhm! In his irresolvable confusion, Man contemplated the whip of chastisement eternally held by the Conscience and called it the devil. Yes, the devil. Remove the definite article ‘the’ from ‘the devil’, what do you have? Devil, yes. Put a dash between ‘D’ and evil. You’ll get D-evil aka The-evil. 

A global Nigerian musical star bears DBanj. The Seruabwon of Osun politics, the late Alhaji Isiaka Adeleke, was popularly called D Gov.

So, what man calls the devil is d-evil that he does. The image of a black and ugly fire-spitting creature with a long tail and a spear is a figment of the imagination.

I’m not saying there are no powers in heaven and on earth. I’m not saying there’s no God. There’s God, the Maker of heaven and the earth, and I believe in Him. I’m only saying the devil, as concocted by man, is an explanation of the force that wrestles with the truth inside the conscience. But isn’t it written that ye shall know the truth and the truth shall set ye free?

As I was saying, the fall guy we all call the devil grabbed my hand and led me to the cassava pasture backyard. He brought out a stick of Consulate cigarette, lit and gave it to me, just like it gave Eve the apple. I took a military drag. In the cigarette smoking parlance of my time, military drag was the one-time l-o-n-g drag that burns a quarter of the cancer stick called cigarette, filling your lungs fully with smoke.

As I was enjoying the cigarette the devil gave to me and was feeling giddy, I saw my mother right from where I was seated under the canopy of cassava. She couldn’t see me unless she bent to look beneath the green mat of cassava leaves. But she had perceived the smell of burning tobacco and was gearing to know where it was coming from. 

I crawled further back into the plantation and sat, my unblinking gaze watching her advancing towards the cassava farm. I quickly buried the cigarette and the lighter. I couldn’t see her face which was screened off by the cassava leaves above. I could only see her lower limbs. As she got to the edge of the farm, she bent to see below the foliage and she saw her begotten son seated like Oba Efon – the Lord of the Flies.

Mo ku, mo gbe, mo dara is the lamentation of the condemned. “Kilo n se ni be yen?” she ‘innocently’ asked to know what I was doing in the underworld. “Mo n gba ategun ni; I’m resting,” I answered in a tired voice, trying to yawn.

Then I committed a forced error. I sidestepped her and went upstairs. By the time she got upstairs, the acrid smell of cigarette had overwhelmed the household on the sunny day. “Tunde!” she called out. I was in the bathroom, washing mouth and body. “Did you bring your cigarette upstairs to rest?” she inquired, adding the death sentence, “When your father comes back from work, you will explain when you started smoking to him.”

Like Joshua, I prayed for the sun to stand still because I knew if my father came back in the evening, he would beat me like the inedible snake called ejo aije. My prayer wasn’t answered. The sun didn’t stand still, it went back home to rest while my father arrived, ate and rested before giving my brain a factory reset. 

My mother made me fast for seven consecutive days, choosing more than a dozen psalms for me to read each hour of the day. I fasted and prayed but I didn’t stop smoking whenever cigarettes were available. I didn’t stop smoking because I didn’t see anything wrong with it. I wasn’t an everyday, impulsive smoker. I just smoked when my hands were idle and the devil was at his workshop.

When I got admitted into the University of Lagos in the 80s to read Chemistry, I discovered on campus that cigarettes were part of most students’ menus. I also began to smoke after each meal. Then I graduated to smoking before each meal, before sleeping, when I woke up, when going to the toilet, when stressed, when drinking, when happy; every time.

Because I never loved the esoteric nature of Chemistry, I changed my course and university the following year. I love writing and I wanted to be a journalist. To free myself from parental control, I chose the Imo State University, now Abia State University. This was where I earned the title, Eruku Jeje, which means Billowing Smoke. It was impossible to see me without a cigarette, day or night. When fellow smoking students were looking for matches or cigarettes, they knew the room to come in Hostel B.

Under my mattress, there must be matches and cigarettes. There was honour among smokers, nobody dared steal my cigarette but you’re free to use the matches of lighters anytime.

After I finished Youth Service in the Umuopu and Aji communities of Igbo-Eze North, Enugu State, I headed back home to Lagos, and continued smoking regularly; my bird had learnt how to fly without perching, escaping my parents’ stones.

I started life as a classroom teacher. Down the line, I changed jobs and became a journalist in Lagos with PUNCH newspapers. I always had perfumes, roll-ons, and air fresheners in my laptop bag, car, apartment, everywhere. Some of my friends knew I visited in their absence when they arrived at home and perceived my signature perfumes. If you smell my fingers, you won’t perceive cigarette smoke on them because I invented the use of straw as a cigarette holder. I would tie a straw to the butt of my cigarette and I’m good to smoke without leaving a telltale sign on my fingers.

If by a very rare oversight or error, there were no perfumes at hand in my car or bag, I would open my car bonnet, get to the carburettor, loosen one hose and get some fuel to wash my hands and rub some in my hair to smell like the car broke down and I was at the mechanic’s fixing it.

However, at a time in my bachelor life, I literally looked in the mirror and spoke to myself. “Tunde, you can’t continue this way. Is this the kind of life you want your children to inherit from you?” I asked myself. And I said to myself, “I never saw my father smoke. Why would I be the one to lead my children to smoking?”

I didn’t decide to quit smoking for health reasons. I didn’t care at the time about its health implications. I quit because I didn’t want to be the one my unborn children would see and take to smoking. Smoking is a dirty habit, I tell you.

Quitting smoking was the singular most arduous achievement in my life. It wasn’t going to the university or building a house or buying a car. It was smoking. Quitting was war. I would light a cigarette, puff on it and tears would well up in my eyes. I would throw it away only to repeat the same process hours or a day later. 

Then I lifted my eyes unto the hill. I didn’t go before any pastor or imam. Each day, I spoke to myself and to the hearing of anyone who cared to listen, “I’ll stop smoking.” Many of my friends laughed, saying, “You? Devil dey go retirement?”

To be continued.

Nation-building requires heroes. A nation without documented heroes or comprehensive documentation of the lives and times of their heroes and heroines, will not succeed in positively impacting as many young ones as are needed to berth a great country. So, essentially, a good number of the world’s most successful countries are endowed by the nourishment and talents of their diverse population which ultimately produces heroes.

Heroes have always played a crucial role in binding societies, offering courage, sacrifice, leadership, and moral integrity narratives. Whether real or mythical, these individuals provide nations with a sense of history, identity, unity, and shared values. Here comes Akinwande Oluwole Babatunde “Wole” Soyinka (CFR), a Nigerian playwright, novelist, poet, and essayist in the English language. He was awarded the Nobel Prize for Literature in 1986, the first African to be so honored.

Every country has its fair share of a national hero or hero. The world needs more people with critical thinking skills coupled with an objective mindset capable of sequestering their internal bias when required by equally pertinent decisions that need to be made by decisive individuals with experience and practical wisdom in humble coexistence within their mindset. What most people mistake for a “hero” is usually just a victim of circumstance that devolves into an eminent personality with huge responsibilities.

Wole Soyinka (WS), is best known as a playwright, alongside his literary career, and has also worked as an actor and in theaters in Nigeria and Great Britain. His works also include poetry, novels, and essays. WS is by every intellectual and academic classification an iconic figure. His reputation blossomed after he won the Nobel Laureate in 1986 having distinguished himself as a literary genius.

WS has been a guiding force in shaping the cultural and intellectual landscape of the continent of Africa, particularly in Nigeria. Therefore, my fellow compatriots join me as we celebrate WS@90. It has become imperative that as a people we need to reflect on WS’s profound contributions and the everlasting impact of his work and advocacy – through the sacrifice and fearless commitment to social justice, unwavering defense of freedom of expression, and promotion of Nigeria’s rich cultural heritage, WS, stands as a beacon of excellence and inspiration.

Unarguably, a nationalist, eruditely broadminded, and dependable hard-working person apart from selfless adventures. Can I just mention only one remarkable example; apart from those that sadly died during the Nigerian civil war, WS, suffered more than most for the cause of Biafra. He was not only imprisoned in Kirikiri prison during the war but he was also put in solitary confinement and chained to the floor. In his words: “I don’t know any other way to live but to wake up every day armed with my convictions, not yielding them to the threat danger and to the force of people who might despise me.”

Kongi, as you’re fondly called, Africa’s most iconic literary maestro and one of the world’s most influential citizens, quintessential poet at 90. I join millions of our compatriots across the globe to celebrate an eminent scholar, dramatist, poet, and humanist who would have preferred a quiet celebration, his associates have decided otherwise. Africa’s first Nobel Laureate, a humanist, role model, thorn in the flesh of dictators, and a of hope to humanity. 

In conclusion, permit me to sign off with a call to action using the profound words of Jacob Nordby a storyteller, thinker, and adventure seeker whose many quests have led him to a deep fascination with life in all of its weird splendor. He has written the award-winning novel, The Divine Arsonist, and a non-fiction titled, Blessed Are the Weird – A Manifesto for Creatives. Jacob remarked as follows: “Blessed are the weird people: poets, misfits, writers mystics, painters, troubadours for they teach us to see the world through different eyes.”

Finally, WS, history will write your name in GOLD, as i crave the indulgence of my readers to adopt my sister’s birthday message to Kongi: “…My darling Uncle Wole, Happy 90th birthday! I am so happy that you made it to the Nonagerian level, and still have your wits around you. You are still as fit as a fiddle and your mind is so sharp, despite the hardships you have been through as a literary and Human Rights activist in Nigeria. 

“I am glad that you are alive to see the results of your good works- you are being celebrated in all the continents of the world! You deserve this and more, our wordsmith, Nobel Laureate, Prof Wole Soyinka, from Ake to Ibadan, and Ife on to the global stage!!! With lots of love and gratitude, Funso Adegbola. For Bola and Atinuke Ige’s children, grandchildren, and great-grandchildren.”

HAPPY BIRTHDAY WS@90, Nobel Laureate, Prof Akinwande Oluwole Soyinka, who we fondly call Uncle Wole, Kongi, Prof, ‘Captain Blood’ and our WORDSMITH.

Richard Odusanya can be reached via This email address is being protected from spambots. You need JavaScript enabled to view it.

Four female students from Jacob’s Well High School International, a Port Harcourt based private school who developed an android application named AgriConnect, are to attend this year’s World Technovation Girls Challenge at the Silicon Valley, California, United States of America.

Their winning android application was developed to deal with hunger issues in the country. 

They will be joined by other phenomenal young female developers from other parts of the world between October 15 and 19 this year.

The young students-Oghenemaro Tejiri,12, Salome Akhabhau,11, Excel Barile-Nwika,11 and Goodness Nwonanne-Chima,12- are students of Jacob’s Well High School, Port Harcourt had developed the android application to combat hunger in Nigeria.

The girls were under the tutelage of Code Ambassadors, the consultants engaged to groom students in the school to become shining stars in the evolving tech world.

The AgriConnect was among the 3,200 android applications developed by about 11,000 girls from 69 countries, including the USA, UK, Japan, China, Canada, and Spain. 

The four girls who call themselves the Smart Elite, fell into the beginners division of the contest, whose age bracket falls between eight and 12 years; the other categories being the junior division (ages 13-17) and Senior Division (ages 18 and above). 

After a series of assessments by several judges drawn from various disciplines, 15 android applications were selected as finalists (five android applications for each division), while three android applications were selected for special awards, which virtual ceremony took place on July 9.

For their outstanding app, the young Nigerian female developers who were given special recognition, are being invited to the all expenses paid technovation summit where the grand awardees would be selected. 

Speaking on the development, coordinator and proprietor of the school, Egondu Jacob, told journalists that it was not surprising that her students were putting Rivers State, the Niger Delta and Nigeria on the list of nations of the world whose students are outstanding in app developments at a very young age. 

She said “the news of the exceptional performance of our girls and the special award for combating hunger was received with lots of excitement by the board chairman, Engr. Unwana Jacob, and the entire school. 

“This achievement is a dream fulfilled because having seen our biological children – Miss Ukemeabasi Unwana Jacob (with 8A1s and 1B2 result in the 2023 WASSCE) and Master Uwakmfon Unwana Jacob (a young maths Icon with over 40 national and international medals in mathematics)-receiving national and international accolades in their secondary school education, we had challenged ourselves that under God, children from other families should equally be trained to stand out and be recognized nationally and globally through the facilities and programmes of the Jacob’s Well Schools International. 

“We are grateful to God for the enormous support received from our consultant, Mr. Somkenechukwu Mamah, the founder of Code Ambassadors (an organization dedicated to training kids & teens in technology, problems solving and entrepreneurship), amazing staff and also from parents in the school. We are optimistic that greater achievements are on the way and Nigeria and Africa would be made proud through the achievements of our students.

“It is interesting to note that AgriConnect was the only android application from Nigeria that made it to the final round as well as the only android application in Africa that got a special award out of the three mobile applications recognized for a special award, globally.”

She added that in today’s world that was being driven by technology, it was important for Nigerian leaders to invest in and encourage children to grow in their knowledge of technology, adding that it was for that reason that Jacob’s Well Schools decided to introduce coding and robotics and ICT to pupils from primary one.

 “As at date, students and pupils in the school have created over 12 android applications to solve societal problems and some of these apps have received international recognitions. 

“Five android applications created by the five teams of female students in the school were registered for the 2024 Technovation Global Competition, an annual event where girls from various countries in the world register in teams in order to showcase their tech-based solutions to community problems created by their teams in line with the United Nations Sustainable Development Goals,” she said.

Also speaking, the school’s tech consultant expressed the hope that the female quartet app developers would stand out “as the youngest startup co-founders who leverage technology to solve more problems, especially in the agricultural sector.

“In the next five years, they should have gained experience building business models around their solution, gaining more traction, attracting funding, and inspiring more young minds to start their tech journey early enough. 

“I hope the country supports them by providing all the resources and access they need to get their solution into the hands of Nigerians.”

[EagleOnline]

Pavlo Denysiuk, the CEO of Lunu has stated that the number of crypto holders globally is set to cross the much-awaited one billion mark as early as 2026.

Pavlo who heads Lunu, a crypto payment firm stated that moving by current user growth in the industry, the number of global crypto holders is set to triple by 2026.

Pavlo stated this during a panel discussion on NFT Fest 2024.

“Within two years there will be at least two times or three times more crypto holders worldwide. This is where we get more adoption everywhere and in terms of payments as well.” Pavlo said

An earlier report by Triple-A on cryptocurrency ownership pegged the number of global crypto holders at 560 million. This means that about 6.8% of the world currently owns crypto. Pavlo believes this number is set to triple by 2026 if the user growth rate of the crypto industry remains the same.

Mr. Denysiuk went ahead to explain the correlation between the growing number of global crypto holders to the mainstream adoption of crypto payments.

He argued that the mainstream adoption of crypto payments will take root when adequate infrastructure is put in place.

“Crypto payment adoption] is not something that you need to convince someone of. Whenever the infrastructure is there, whenever you come to your Starbucks shop or somewhere else and there is a sticker saying, ‘we accept crypto’. Denysiuk added.

Denysiuk maintained that crypto payments are just like other kinds of payments and there isn’t much difference between accepting payments in crypto and using credit cards and bank-approved digital payments.

Mr. Denysiuk whose Lunu company is spearheading a stablecoin-powered payment ecosystem drew parallels in the proposed growth of global crypto adoption and the role of stablecoins in making that happen.

He explained that the stablecoin sector is a source of major onboarding of new users to the crypto industry and would be instrumental in seeing global crypto adoption cross the 1 billion mark.

“Stablecoins are very important for adoption. In our case, we rarely see people paying in Bitcoin, even though Bitcoin was invented as a digital currency.” Denysiuk said.

According to CoinMarketCap data, the stablecoin market is currently worth over $163 billion which represents 7.7% of the entire crypto market capitalization worth $2.11 trillion.

What to Know 

• Pavlo Denysiuk is the CEO of Berlin-based Lunu which focuses on building a stablecoin-powered crypto payment ecosystem.
• Popular Payment Company PayPal is also in the stablecoin market with the launch of PayPal USD (PYUSD). PYUSD is PayPal’s stablecoin and can be bought on PayPal for 1 USD.

[Nairametrics]

The year 2023 was fantastic for Seplat Energy, with the share price gaining 110% to reach N2,310.

The share price rally has continued in 2024. In the first month of the year, the share price gained 33.10%, closing at N3,074.60.

Nairametrics had earlier reported a growing sense of optimism regarding the sustainability of Seplat’s share price surge, projecting it could reach N3,500.

On June 27, 2024, the company’s shares experienced a remarkable surge, breaking through the N3,500 mark and reaching a new 52-week high of N3,790.90.

However, by July 11, 2024, the share price had retracted to N3,480, marking an 8.3% decline from its recent high.

Despite this drop, the company remains a formidable player on the Nigerian Stock Exchange, holding its position as the eighth most valuable stock with a market capitalization of NGN 2.05 trillion, representing about 3.64% of the total equity market.

From the foregoing, should investors buy, hold or sell this well-known oil and gas stock?

Financial Performance

Seplat Energy has shown strong financial performance, with an average annual growth rate of 12% over the past five years.

In 2023, the company achieved an impressive 72% year-over-year surge in sales, followed by a further 77% YoY growth in Q1 2024.

A significant portion (88%) of Seplat Energy’s revenue comes from crude oil sales, indicating a heavy reliance on the volatile oil market.

This dependency means that any significant drop in oil prices and the inherent volatility of the business could negatively impact Seplat’s revenue and profitability.

For instance, in 2023, the average realized oil price declined by 18% to $83.39/bbl from $101.67/bbl in 2022.

In Q1 2024, despite the 4.7% growth in average realized crude oil price to $86.17/bbl from $82.32/bbl in Q1 2023, crude oil revenue declined 49.4% to $150.8 million from $297.9 million in Q1 2023, attributed to the timing of lifting, exacerbated by the overlift reported in Q1 2023.

On the other hand, in 2023, gas sales account for only 12% of revenue, showing limited diversification.

Gas revenue fell by 12.4% to $29.0 million in Q1 2024, compared to $33.1 million in Q1 2023. The decline in gas revenue was attributed to lower gas volumes produced during the period, due principally to delays in new gas wells coming on stream; these are now expected to be operational in Q2 2024.

This is reassuring, especially with signs of potential change in this area. Commenting on the Q1 2024 unaudited financial results, Roger Brown, Chief Executive Officer, said:

“Looking further forward, we were pleased to see more progressive actions taken by President Tinubu and the industry regulators.

In March, the President signed executive orders that will provide fiscal incentives in our gas and midstream businesses.

More recently, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) lifted the domestic gas price to $2.42/Mscf, supporting revenue generation and re-emphasizing the government’s commitment to developing Nigeria’s gas resources, a factor aligned with Pillar 2 in our strategy.”

Impact of Operational Costs on Profitability

Aside from price volatility and production volume dynamics impacting revenue, operational costs are another significant factor affecting profitability.

While reported currency figures show apparent growth due to favorable currency movements, constant currency adjustments reveal the true operational performance, providing a clearer picture of the company’s health and trends.

For instance, in Q1 2024, production operating expenses (opex) were $9.6 per barrel of oil equivalent (boe), up from $9.0 per boe in Q1 2023. Additionally, general and administrative expenses increased by 17.2%, amounting to $24.1 million compared to $20.5 million in the first three months of 2023.

As a result, gross profit fell by 78.5% to $42.7 million, down from $198.3 million recorded in Q1 2023 (a 29.9% decrease in Q1 2024 to N83.813 billion).

Operating profits also decreased by 21.0% to $81.9 million, compared to $103.7 million achieved in Q1 2023 (a 157% increase in Q1 2024 to N122.377 billion).

Despite the underlift gains, pre-tax profit declined by 19.49% to $69.288 million, down from $86.060 million in Q1 2023 (a 161.9% increase in Q1 2024 to N103.513 billion).

Looking Forward

Seplat believes that the business remains strong, with production firmly on track in 2024. In its FY 2023 results, the company outlined several growth opportunities for 2024.

• The first of these to start generating revenue for Seplat is Sibiri, which came on stream just a few weeks after the FDP approval was received from NUPRC.
• At Abiala (a marginal field within OML 40), the drilling programme is on track to start during Q2 2024.
• The resumption of operations on the Trans Niger Pipeline in April, approximately four months ahead of plan.
• Access to the pipeline will enable increased production from OML53 and provide the primary export route for condensate from AGPC, which remains on track for the first gas in Q3 2024.

Overall, it appears the company has set to mitigate and navigate through the production, revenue diversification and costs issues. 

What should investors do?

Getting back to the original question of what course of action investors should take requires consideration of some important factors.

For income-oriented investors, looking at Seplat’s dividend policy/trend accompanied by share gain, makes buying and holding this stock compelling.

Seplat pays quarterly dividends, and in 2023, the company paid out a total dividend of $15 per share. At varying exchange rates, this amounted to N126.45 per share or N74.412 billion, representing a 91.42% payout and an 189% year-over-year increase.

In the current year, in line with its quarterly dividend policy, the board approved a Q1 2024 dividend of US 3.0 cents per share.

In 2022, Seplat Energy’s stock significantly outperformed the market with a Year-to-Date (YtD) return of 69.23%, compared to the NGX All-Share Index return of 19.98%.

In 2023, the stock continued its strong performance with a YtD gain of 110%, surpassing the NGX All-Share Index YtD gain of 45.90%.

As of the current year, Seplat has achieved a YtD gain of 51%, outpacing the broader market YtD gain of 33%.  Currently, the stock offers a dividend yield of 4%, taking a total return to 54% year-to-date.

However, it is important to note that Seplat’s price-to-earnings (P/E) ratio of 59.52x is significantly higher than the industry’s average P/E ratio of 17.64.

This high P/E ratio indicates that the stock is trading at a premium compared to its peers, suggesting that the market has high expectations for Seplat’s future growth.

While this premium valuation could be justified by Seplat’s strong dividend policy and growth prospects, it also introduces a higher level of risk.

Its price to sales ratio of 1.42x affirms the market expectations for future revenue growth.

Investors need to consider whether they believe Seplat can meet these high expectations and continue to grow at a pace that justifies its current valuation.

High valuation implies that investors expect Seplat to deliver strong future growth in earnings and dividends. If Seplat fails to meet this heightened expectation; if its actual earnings growth or dividend payouts fall short of expectations, investors may react negatively, leading to a decline in the stock price.

Overall Bancorp Securities and Afrinvest, according to the NGX’s Broker stock recommendations for July 8th – 12th, 2024, both issued a “Hold” rating on SEPLAT.

President Bola Tinubu has congratulated Oba Owolabi Olakulehin on his coronation today, July 12, 2024, as the 43rd Olubadan of Ibadan.

The President in a State House press release on Friday, signed by his special adviser on media and publicity, Ajuri Ngelale, wished the new monarch a peaceful and successful reign.

He promised to support the new Olubadan as he works to promote and preserve the culture and traditions of the ancient city.

The President charged the new Olubadan to bring to bear his wealth of experience and character to ensure the development of Ibadan land.

The full statement reads:

“President Bola Tinubu extends his warm congratulations to Oba Owolabi Olakulehin on his coronation today, July 12, 2024, as the 43rd Olubadan of the ancient city of Ibadan.

“President Tinubu joins the family of the new Olubadan, Ibadan citizens, the Oyo State Council of Obas, and the Oyo State Government to celebrate Oba Olakulehin on his ascension to the revered throne of his forebears.

“The President affirms that Oba Olakulehin brings to the throne immense wisdom, experience, character, and strength, and urges the monarch to use the highly esteemed stool of Ibadan to advance the peace, security, and development of the area.

“President Tinubu assures the new Olubadan of his support and wishes him success as he works to promote and preserve the culture and traditions of the ancient city.

“The President also congratulates Ibadan indigenes on the peaceful succession process and prays that the peace, beauty, and renown of Ibadan will abide always.”

Recall Owolabi Akinloye Olakulehin was earlier on Friday, officially declared the 43rd Olubadan of Ibadanland.

Naija News reports that the coronation ceremony took place on Friday at the Labosinde compound, the family with the authority to crown any Olubadan of Ibadanland.

He subsequently received the staff of office and other official regalia from the Oyo State Governor, Seyi Makinde.

[NaijaNews]

Popular Afrobeats singer Davido has launched his own social media platform called “Chatter.”

Taking to his official X handle on Friday, Davido revealed that he co-owns the new social media app with his close friend, Sir Banko.

“Chatter is a social audiovisual utility platform designed to connect content creators with a lively community and amplify their voices,” Davido explained.

LEADERSHIP reports that Davido had in May, 2024 introduced a cryptocurrency named $DAVIDO meme coin. Despite its initial popularity, the coin crashed shortly after its launch, drawing criticism and accusations of being a scam from cryptocurrency enthusiasts.

Chatter App aims to provide a platform for content creators to share their work and engage with their audience. Davido’s foray into the tech world continues to showcase his versatility and ambition beyond the world of music.

[Leadership]

The Federal Government has inaugurated the Presidential Food Systems Coordination Unit (PFSCU) as part of its efforts to tackle the prevailing hardship in the land.

While inaugurating the unit at the Presidential Villa in Abuja, on Friday, Vice President Kashim Shettima said it was part of the present administration’s ongoing plan to tackle hunger.

The presidency has also engaged the states, development partners and other critical stakeholders in the efforts to address the soaring prices of commodities and general food insecurity in the country.

Addressing members comprising governors, cabinet ministers and representatives of development partners, Shettima said, “The nation is facing a rare food security crisis and the sooner we come to terms with the reality, the better.

“Food insecurity endangers the very basis of our democratic experiment and this is why all hands have to be on deck. We are in a food security crisis but it also provides us the opportunity to re-engineer and reposition the nation on a firmer footing”.

Outlining the mandate of the PFSCU, the Vice President said the unit was not created to usurp the functions of the Ministry of Agriculture, noting that the urgency and seriousness of the matter at hand requires the ideas and resources of all stakeholders.

Shettima also made reference to the Green Imperative Programme, a government-catalyzed, private sector-driven, agricultural industrialization programme, as one initiative which the PFSCU must work assiduously to activate and operationalize.

He stated that with improved farming practices, improved seeds, use of fertilizers, Nigeria’s agricultural productivity could be turned around for the better.

Speaking earlier, governors on the committee outlined plans to modernise farming practices, increase crop yields, and transform Nigeria into a self-sufficient food producer.

Governor Bassey Otu of Cross River said his state is looking to feed the country, adding that his government must modernize agriculture to feed the population.

“We are an agrarian state, and we have stepped up our game,” Governor Otu noted.

On his part, Borno State Governor, Babagana Zulum, emphasised the need for a coordinated approach, citing low productivity and population growth as a major challenge to the nation’s food security drive.

He called for investment in commercial agriculture, improved funding, and enhanced security for farmers.

Also, Jigawa State Governor, Umar Namadi, highlighted the state’s potential to achieve food security.

“All that is needed is the political will to drive the process. Our lands are very fertile. In Jigawa, there are places where we are yielding ten tonnes per hectare of rice. There are so many places like that. As of today, our average in Jigawa State is about 12.56 per hectare. We are on the right course. What we need is sustained political will,” the governor explained.

On his part, Niger State Governor, Mohammed Bago, proposed his state as a pilot for the President’s food security initiative.

He claimed that Niger has invested over N100 billion in agricultural mechanization, with 5,000 tractors and twenty pilot irrigation systems available.

[DailyTrust]

Chairman of the Nigeria Governors’ Forum, NGF, and Governor of Kwara, AbdulRazaq AbdulRahman has reacted to the Supreme Court judgement granting full autonomy to Local Government Areas, saying the development is a huge relief on governors.

But the NGF chairman also said the governors will meet next week to consider the judgement, and come out with a resolution.

AbdulRahman, who met with President Bola Tinubu in the Presidential Villa on Friday, said many people are oblivious of the burden the state governors carry, especially in terms of bailing LGs out.

“We welcome the ruling of the Supreme Court. Compliance is a given and our Attorney Generals have applied for the enrollment order, which we’ll study carefully.

“But by and large governors are happy with the devolution of power in respect to local government autonomy. It relieves the burden on governors. Our people really don’t know how much states expend in bailing out local governments, and that’s the issue there,” the NGF Chairman told State House Correspondents.

Reacting to how the judgement would affect his state, Kwara, the governor said the implication is that the various LGs would have to manage themselves, especially on the payment of salaries to workers and traditional rulers.

He said, “It’s not going to affect Kwara State. We’ve never tampered with local government funds. So it’s going to continue. What the local governments have to do is to manage themselves, especially with the oncoming minimum wage, to manage their affairs and make sure salaries are paid, traditional rulers get their 5% and those are the main issues.

“Like I said, we haven’t seen the enrollment of the court order and so we really don’t know what is in there.

“The Forum will meet next Wednesday, to look at the issue wholly and then come up with a resolution on that.”

[DailyPost]