FEATURES
The chairman of the Senate Committee on Interior, Adams Oshiomhole, has raised the alarm that prisoners from foreign countries are working at construction sites in Nigeria.
He spoke in Abuja on Wednesday when the Minister of Interior, Olubunmi Tunji-Ojo, appeared before the National Assembly Joint Committees on Interior for a budget defence session.
“Your ministry needs to regulate the issuance of the quotas very well as I have it on good authority that prisoners from foreign lands are working in Nigeria as construction workers,” Oshiomhole told the minister.
He said though it was heartwarming that the ministry surpassed its revenue targets on the issuance of expatriate quotas, the policy was giving room for expatriates to steal jobs meant for Nigerians in Nigeria.
“Many non-Nigerians are in the country, some of them live inside containers. They were being paid according to their country’s minimum wage by the construction industry that brought them. I don’t want to mention the companies’ names, but if I’m provoked, I’ll mention them.”
Responding, Tunji-Ojo said his ministry had already come up with the Expatriate Employee Network aimed at safeguarding jobs meant for Nigerians from being stolen by expatriates.
He said the ministry had raked in N1.195bn in revenue from the issuance of expatriate quotas from January to October this year, surpassing its N600m target.
He also said the N380m projected revenue from marriage registration was also surpassed by over N500m with N892.7m realised as of October 31.
[DailyTrust]
Eight commercial banks have fallen short of the Capital Adequacy Ratio (CAR) required for international authorisation, the stress test conducted by the Central Bank of Nigeria (CBN) has shown.
The affected banks have been put under pressure to raise their capital base to bridge the gap, which was brought about by the depreciation of the naira against the dollar and other foreign currencies
Through its 2021 guidelines, the CBN had mandated the Deposit Money Banks to maintain a prudential CAR of 10 per cent for national and regional banks.
Those with international authorisation were instructed to uphold a 15 per cent regulatory CAR.
However, the CBN report showed a decline in the banking system’s CAR, dropping to 11.2 per cent, which is 3.0 per cent short.
This is below the 15.0 per cent threshold set for banks with international authorisation.
The decline in the banks’ CAR was attributed to a decrease in total qualifying capital relative to increased risk-weighted assets due to the naira’s depreciation following the adoption of a market-determined exchange rate policy. This reflects the challenges faced by these institutions.
The banks were scrutinised based on their capital strength and risk profile, a crucial measure of a bank’s financial stability.
The stress test was conducted to assess the banks’ financial health and their ability to withstand adverse economic conditions and shocks.
Specifically, the test focused on the CAR, which measures the proportion of a bank’s capital to its risk-weighted assets and is used to determine the bank’s financial stability.
The CAR is a regulatory requirement set by the CBN and each bank is expected to maintain a minimum level of capital to ensure their ability to absorb potential losses.
Based on the results of the stress test, it was discovered that among the affected banks with international authorisation, their capital adequacy ratio was lower than the minimum regulatory requirement set by the CBN.
This implies that these banks may have insufficient capital to meet potential losses during challenging economic conditions, which could potentially impact their overall financial stability.
The CBN’s revelation of the banks’ CAR falling below the minimum regulatory requirement emphasises the need for appropriate measures to be taken to address this issue.
It could prompt regulatory action, such as requiring the affected banks to raise additional capital or implement strategies to strengthen their financial position to mitigate any potential risks to the banking sector and the economy.
The depreciation, stemming from the CBN’s managed float of the exchange rate in June 2023, significantly impacted banks, leading to substantial foreign exchange losses.
It also affected the required capital for international, national, and regional banks.
Speaking penultimate Friday at the annual dinner of the Chartered Institute of Bankers of Nigeria, CBN Governor Olayemi Cardoso highlighted plans to introduce new capital requirements for banks.
He said: “Nigeria’s financial sector has demonstrated resilience in 2023, with key indicators of financial soundness largely meeting regulatory benchmarks.
“Stress tests conducted on the banking industry also indicate its strength under mild-to-moderate scenarios of sustained economic and financial stress, although there is room for further strengthening and enhancing resilience to shocks.
“Therefore, there is still much work to be done in fortifying the industry for future challenges, a topic that I will delve into later in my address.
“It is crucial for us to evaluate the adequacy of our banking industry to serve the envisioned larger economy.
“It is not just about the stability of the financial system in the present moment, as we have already established that the current assessment shows stability.
“However, we need to ask ourselves: Will Nigerian banks have sufficient capital relative to the financial system’s needs in servicing a $1.0 trillion economy in the near future? In my opinion, the answer is ‘No!’ unless we take action.
“Therefore, we must make difficult decisions regarding capital adequacy. As a first step, we will be directing banks to increase their capital.”
The report also outlined a positive trend in banks’ asset quality, with a marginal decrease in Non-Performing Loans (NPLs) from 4.5 per cent to 4.1 per cent in the second quarter of 2023, reflecting improvement in loan recoveries and surpassing the prudential benchmark of 5.0 per cent.
Furthermore, the Industry Liquidity Ratio (LR) witnessed a significant rise, reaching 62.2 per cent in the review quarter, surpassing the minimum regulatory benchmark of 30.0 per cent.
This upswing signifies the banks’ robust capacity to fulfil their financial obligations.
The CBN’s disclosures underscored the pivotal need for banking institutions, particularly those with international authorisation, to bolster their capital adequacy and navigate the evolving economic landscape.
[TheNation]
Hoinathy Remadji Yamingué Bétinbaye
Following President Idriss Déby Itno’s death in May 2021, Chad entered a transition led by his son, General Mahamat Idriss Déby. The transition involves three steps: national dialogue, adoption of a new constitution and elections. The first two have already elicited deep political divisions, threatening consensus around the entire transition process.
On 17 December, Chadians will be called to the polls to decide on a new constitution. This referendum was recommended by the national inclusive and sovereign dialogue to settle the unresolved debate on the form of the state. Participants were split between a decentralised unitary state and a federal state. Divisions persist on the content of the proposed constitution and the process itself.
The transition process formally began on 12 January, when the government set up a National Commission for the Organisation of the Constitutional Referendum (CONOREC) and a committee to draft the new constitution. From July to October, CONOREC carried out an electoral census in the country’s provinces, then abroad among the diaspora.
The wording of the question for voters and the design of the ballot papers, including colours and features, were detailed in a decree issued on 31 October. A further decree convening the electorate was published on 7 November. CONOREC announced the referendum election campaign for the period from 25 November to 15 December.
Two major trends are emerging. On one side are the transition’s protagonists, the former ruling party, the Patriotic Salvation Movement (MPS), politicians now in the transitional government, and the politico-military signatories to the Doha Agreement. On the other side are those opposing the conduct of the transition and referendum processes.
The first side advocates for a decentralised unitary state and fears a federation would sow the seeds of division in an already fragmented country. Transitional Prime Minister Saleh Kebzabo leads a broad coalition bringing together all sensitivities in the government. This coalition joins the alliance of political parties and civil society actors led by the MPS.
On the opposing side are those against the transition, including radical political actors like Les Transformateurs led by Succès Masra and Parti Socialiste sans Frontière led by Yaya Dillo Djerou Betchi. Other opposition parties and groupings include Bloc Fédéral, Plateforme Républicaine, Groupe de concertation des acteurs politiques (GCAP), Rassemblement National des Démocrates Tchadiens, the politico-militaries who didn’t sign the Doha Agreement, and civil society actors such as Wakit Tama.
For this group, Chad’s unitary state – in place since independence – has failed to get the country out of its rut, hence the need for a federation which would allow for more autonomous development of the territories.
Les Transformateurs, which was critical of the transition process, including the referendum, has softened its stance since signing the agreement with the government in Kinshasa on 31 October. Under this agreement, Succès Masra committed to work towards a return to constitutional order within the government-defined timetable and in a politically calm environment. Despite acknowledging the imperfection of the proposed constitution, Les Transformateurs believes it would be better than the one suspended after Déby’s death.
The main criticism from referendum opposers is that the transition process prioritises a unitary state over offering to choose between unitary or federalist options. Despite recommendations from the national dialogue for a prerequisite referendum on the form of the state before drafting a constitution, CONOREC proposes a constitution enshrining the unitary state, sidestepping this suggestion.
Referendum opposers argue that the non-involvement of all political players and civil society in the process undermines CONOREC’s neutrality. The commission, headed by the Territorial Administration, Decentralisation and Good Governance Minister, alongside members of the former ruling party, is seen as dominated by the government. This contradicts the Transition Charter, Article 7, which mandates the neutrality of the body leading the referendum process.
Supporting of a total boycott of the referendum include Albert Pahimi Padacké, former transitional prime minister and president of Rassemblement National des Démocrates Tchadiens, along with the Bloc Fédéral. Those in favour of voting against the constitution include GCAP and Plateforme Républicaine.
The country is heading towards a contentious process, risking unsatisfactory completion of two of Chad’s three transition steps – national dialogue and a new constitution. Moreover, potential social unrest may lead to repression by the security forces, as witnessed on 20 October last year, during demonstrations against extending the transition by 24 months and questioning the eligibility of the transitional authorities.
The new constitution is the keystone of the country’s political future, and its content and how it is drawn up, presented to the people and adopted, must at least be inclusively run and openly debated. A constitution adopted by force through a biased and exclusive process would bode poorly for Chad’s future.
The government must use the remaining time to raise public awareness about the stakes of the ongoing process. Engaging in discussions to salvage and improve the situation before 17 December is crucial. Exploring options, including a potential postponement of the referendum, is essential for restoring a more peaceful and inclusive process. This could have implications for the overall transition timetable.
The Economic Community of Central African States has appointed Congolese President Félix Tshisekedi as a facilitator in Chad. His actions have enabled the return to the country of some political opponents who had gone into exile after the events of 20 October. Tshisekedi could further attempt to bring parties together. The African Union, actively monitoring the situation through its Peace and Security Council and its special envoy in N’Djamena, must also join ECCAS’s mediation efforts.
Remadji Hoinathy, Senior Researcher, Central Africa and the Great Lakes, Institute for Security Studies (ISS) and Yamingué Bétinbaye, Director of Research, Center for Research in Anthropology and Human Sciences, N’Djamena, Chad
…as cash squeeze worsens
All eyes are on President Bola Tinubu to finally raise meaningful cash from the privatisation of idle government assets which seemed almost impossible under the watch of the previous administration.
Tinubu is aiming to raise as much as N298.4 billion from the privatisation of national assets in 2024 to fund the cash-strapped government’s budget, according to data obtained from the Budget Office.
However further analysis shows that Africa’s biggest economy generated zero cash in the first nine months of 2023 from its budget of N154.6 billion as privatisation proceeds. In 2022 and 2021, the country also generated nothing from asset sales from its budget of N90.7 billion and N205.2 billion respectively.
It is unlikely that things change next year, according to Johnson Chukwu, group chief executive officer at Cowry Asset Management Limited, who was sceptical about the government’s commitment to reverse the trend of zero asset sales.
“Have we identified the assets that will be sold, do we have financial advisers assigned and have we advertised them,” Chukwu said. “If we don’t have these things, we might end up with the way we are this year where nothing is entering,” he added.
Failure to raise any cash from privatisation will leave the federal government with an even larger budget deficit and that could lead to more borrowing or lower than planned capital expenditure.
Adeola Adenikinju, a professor of economics and president of the Nigerian Economic Society, however said the hunt for revenue by the new administration may lead to a change of tack.
“The president may do things differently than the previous administration because they are trying to look for revenue from various sources,” Adenikinju said.
He said privatisation is one aspect that the government wants to explore and that it seems to be more pro-market and less of states’ control or ownership of resources.
“So, it is more likely that they will explore that option, especially for some assets that would be better managed by the private sector. For me, the refineries are the ones that I support. They should be revamped so that the private sector can take ownership and management of those assets,” he added.
Tinubu last week outlined 2024 spending plans projected at N27.5 trillion. His administration targets revenue of N18.3 trillion to fund the budget.
Out of the N27.5 trillion, 30 percent (N8.25 trillion) will go to debt servicing. In the first nine months of this year, the nation spent N5.79 trillion servicing debt. That compares with N3.76 billion in 2022 and N3.0 trillion in 2021.
The sale of the assets is believed to be an attempt to bolster revenues and reduce the government’s reliance on debt which is fast becoming unsustainable.
The privatisation effort will drive macroeconomic growth as well as allow investors to participate optimally in the economy, said Wale Edun, minister of finance and coordinating minister of the economy.
“There is privatisation in the budget. That is the direction of travel to create a stable macro-economic environment in which investors can come in and the government is yielding grounds to them and allowing them to come in and invest and provide goods and services to Nigerians,” Edun added.
JP Morgan, a global investment bank, in August revealed that Nigeria is upping its game to unlock $17 billion from asset sales.
“The authorities are in the initial stages of identifying assets for sale, which may provide some medium-term relief,” JP Morgan said in its latest report.
It added, “For example, the President’s policy advisory council has recommended the government sell down its stake in the most joint-venture oil and gas assets, a proposal that is estimated to bring in up to $17 billion.
BusinessDay had earlier reported that Nigeria plans to unlock the N180 trillion trapped in dead or idle government assets as a renewed hunt for cash heats up.
Over 70 entities have been captured in a national asset register that aims to identify the country’s vast and mostly idle assets, according to the Ministry of Finance Incorporated, whose work it is to build the critical database that will help unlock badly needed cash for the government.
Africa’s most populous nation uses a larger part of its resources to service its debt, and that has become of great concern to economists, especially in the wake of already lean revenues made worse by the COVID-19 pandemic.
In 2022, Nigeria’s debt service-to-revenue ratio was at 80.6 percent — a figure far above World Bank’s suggested 22.5 percent for low-income countries like Nigeria.
Damilare Asimiyu, macroeconomic strategist & head of investment research at Afrinvest West Africa Limited, noted that the country has the assets but that the lack of the political will to market them is why it has generated nothing.
“So, what will determine whether the Tinubu government will get the amount from the sales of assets is the political will.”
A recent report by PwC estimates that Nigeria holds at least $300 billion or as much as $900 billion worth of dead capital in residential real estate and agricultural land alone.
“The high-value real estate market segment holds between $230 billion and $750 billion in value, while the middle market carries between $60 billion and $170 billion in value,” the report said.
Dead capital is an economic term related to the property that is informally held, is not legally recognised, and cannot be exchanged for financial capital.
[BusinessDay]
Grammy award-winning singer, Temilade Openiyi, popularly known as Tems, has described being a Nigerian woman as a miracle.
Naija News reports that the Oscar-nominated diva, in a recent interview with Kiss FM, London, United Kingdom, said that Nigerian women are the most blessed even though it is challenging.
She, however, said despite the hardship of being a Nigerian, there is a blessing attached to it if one utilizes their talent and takes it to where it would be appreciated.
She said, “Being a Nigerian woman is a miracle. Because being a Nigerian, for anybody, is tough. But I think if you can tap into your gifts and own who you are and be unapologetic about it, and take that to the world, that is an honour.
“I think Nigerian women are the most blessed. I won’t say the most blessed but everybody is blessed in equal manner but Nigerian women are very special to me. They are very dear to me and I believe that it is such a huge blessing to be a Nigerian woman and to be living in this time.”
I Will Love To Be A Single Mum In A Movie
Meanwhile, Tems, has expressed hope of acting in a movie someday soon.
The Grammy-award-winning singer said during an interview with BBC in London that she would love to play single-mum roles in movies.
[NaijaNews]
Consumer goods giant Procter & Gamble has stated it plans to dissolve on-ground operations in Nigeria and turn its country into an import market.
The Chief Financial Officer of the group Andre Schulten stated this during his presentation at the Morgan Stanley Global Consumer & Retail Conference.
The company explained that it is difficult to do business in Nigeria as a dollar-denominated organisation and the macroeconomic reality in Nigeria is responsible for its latest strategic decision.
What the company said
- Mr Schulten stated, “The other reality that arises in some of these markets is that it gets increasingly difficult to operate and create U.S dollar value. So when you think about places like Nigeria and Argentina, it is difficult for us to operate because of the macroeconomic environment.”
- “So with that in mind, we are announcing a restructuring program with the intent to adjust operating model and adjust the portfolio to ensure that we maintain the portfolio discipline that has brought us to this point. The restructuring program will largely focus on Nigeria and Argentina. We’ve announced that we will turn Nigeria into an import-only market, effectively dissolving our footprint on the ground in Nigeria and reverting to an import-only model”
It further explained that the decision will help the company focus on markets that have the highest potential.
Reacting to questions bothering on the effect of the company’s planned restructuring in Nigeria and Argentina on its overall group’s portfolio, the CFO explained that Nigeria is a $50 million net sales business.
Compared to its overall portfolio worth $85 billion, the company does not anticipate any material impact on the group’s balance sheet from a sales or profitability standpoint.
Backstory
The current macroeconomic conditions in Nigeria have negatively affected foreign USD-denominated companies in Nigeria. In August, drug maker GSK announced it’s ceasing operations in Nigeria and appointing a third party to take over distributions.
These companies have often cited difficulty in sending back U.S. dollars outside Nigeria. The Central Bank has acknowledged it has a forex backlog to the tune of around $7 billion
President Tinubu has instituted reforms aimed at attracting foreign investment into Nigeria, but it seems in the short term it has only brought more hardship.
[Nairametrics]
President of the Senate, Godswill Akpabio has identified the lack of accountability and impunity as the reasons why Nigerians do not trust political parties.
Akpabio, however, noted that repositioning the parties would help restore public trust and confidence in them.
The Senate President, represented by Anambra Central Senator, Victor Umeh, spoke at an event organised by the Kukah Centre in Abuja, where he insisted that political parties have helped in sharpening Nigeria’s policies and governance.
He said political parties have provided platforms for Nigerians to participate in the democratic process, noting that it would be remiss of Nigerians not to acknowledge the issues that have marred the country’s democratic culture.
“These issues have led to a decrease in public trust and confidence in political parties.
“It is disheartening to witness citizens’ disenchantment with the very institutions that should represent their interests and safeguard their democratic rights.”
[Nigerianeye]
Kaduna airstrike: Killing of civilians won’t stop fight against terrorism – Defence Minister vows
AdminMinister of State for Defence, Bello Matawalle, has vowed that the unintentional killing of several civilians in an airstrike by the Nigerian Army in Agabi Local Government Area of Kaduna State will not stop the fight against insurgency and terrorism.
The minister made the vow when he visited victims of the airstrike on Wednesday.
Matawalle, together with the ministry’s Permanent Secretary, Dr Ibrahim Kana, led a high-level delegation to the state to convey the Federal Government’s sympathies to the victims.
Mr Henshaw Ogubike, the ministry’s Director of Press and Public Relations, revealed this in a statement on Wednesday in Abuja.
While denouncing the tragedy, the minister stated that the struggle against insurgency and terrorism would continue.
He added that the terrible occurrence will not dissuade the administration from fighting terrorism.
“We are not going to relent in our fight against terrorism because these criminals must be defeated. We are going to continue fighting the criminals till we succeed against banditry and other criminalities in this country.”
Matawalle, who was also at the Barau Dikko Teaching Hospital in Kaduna, where the injured victims were being treated, stated that the visit was on President Bola Tinubu’s instruction.
He assured the Kaduna State Government of the Federal Government’s commitment to assisting the victims’ families.
He added that the government would form an inquiry panel to determine the circumstances surrounding the incident to prevent it from reoccurring.
In his reaction, Governor Uba Sani, represented by Deputy Governor Dr Hadiza Balarabe, expressed heartfelt condolences to the affected families and assured of support to the victims’ relatives.
[DailyPost]
More...
Femi Gbajabiamila, the Chief of Staff to President Bola Tinubu, has debunked claims on some media platforms that the 2024 Budget has allocated N21 billion for his accommodation.
The former speaker was reacting on his verified X handle, @femigbaja, to the report, which provided an alleged breakdown of budget details taking care of items for the office of the Chief of Staff, in the budget estimates presented to the National Assembly by President Tinubu last Wednesday.
The report, which found its way into several online news outlets, claimed proposed N104 million for the purchase of computers and printers for ‘local travel and transport for international training,’ his office is to spend N579 million, while ‘miscellaneous’ is expected to gulp N103 million.
The report also claimed a further breakdown of the proposed budgetary allocations showed that the reconstruction and repair of the CoS’s official residence is to get N10 billion.
Computer software purchase for his office is purportedly expected to gulp about N10.1 billion and N290 million is allocated for purchase of vehicles.
However, in the response posted on his X handle, Gbajabiamila said the report by the news platforms is false as there is no provision in the 2024 Budget proposal for the renovation of his official residence, noting that he lives in his own house.
He explained that the sums mischievously quoted by online news outlets and those he called fake news merchants were for the renovation of the Presidential Quarters in Dodan Barracks and the Vice President’s Lodge in Lagos, to overhaul the information management and communications facilities in the Presidency to meet modern standards and to provide vehicles for the staff of the Presidency.
He said: “I have seen social media commentary regarding the 2024 Appropriation Bill, particularly the provisions under the Office of the Chief of Staff to the President. Owing to the erroneous nature of these reports, it has become necessary to clarify that there is no provision in the 2024 Appropriation Bill for the renovation of any residence for the Chief of Staff to the President. I live in my private residence.
“The sums mischievously quoted by online bloggers and fake news merchants are for renovating the Presidential Quarters in Dodan Barracks and the Vice President’s Lodge in Lagos, to overhaul the information management and communications facilities in the Presidency to meet modern standards and to provide vehicles for the staff of the presidency.
“The sums proposed for these projects are clearly stated in the budget proposal and bear no resemblance to the deceptive online commentary.
“This administration welcomes and encourages scrutiny of government expenditure; this is why the Budget proposal is publicly available. However, healthy public debate about government actions requires us to be responsible with our utterances and engage based on facts rather than insinuations and falsehoods.”
[TheNation]
VIDEO: Three months after marriage crash, Bolanle Ninalowo steps out with actress Damilola Adegbite
AdminThree months after announcing the end of his marriage to wife, Bunmi, actor Bolanale Ninalowo, has stepped out with actress Damilola Adegbite.
There were speculations weeks back that the pair were an item.
In an Instagram post on Wednesday, the actor confirmed the speculation by sharing a video of himself with Adegbite with the caption, “That hateful energy – too pricy! Love dont cost a thang #LovePeaceAndLightOnly. Maka #BOLDAMEE ♥️.”
Adegbite was married to Ghanaian actor, Chris Attoh. The marriage, which produced a son, Brian, crashed in 2017.
[Punch]
Delta State Police Command says a yet-to-be-identified officer who allegedly shot a motorist in a viral video has been arrested and detained.
The Delta Police Public Relations Officer, DSP Bright Edafe, who made this known in a post on his official X handle, expressed disappointment over the unprofessional conduct of the officer.
It was learnt that the erring officer who was on a stop and search on the East-West Road, Ughelli town, opened fire on the victim after an argument.
The motorist whose identity is yet unknown, was according to the viral video, shot on the leg and stomach.
Sharing the video on his X page, the PPRO said, the “Nigeria Police Force does not and will never tolerate unprofessional conduct from any personnel.
“On this premise, the Commissioner of Police, CP Wale Abass ordered the immediate detention of the erring Police Inspector.
“The injured victim is being treated. Meanwhile, the CP urges members of the public to remain calm, as he guarantees justice,” he said.
Watch video here.
Media
The Mokopane Regional Court in South Africa has sentenced a 35-year-old woman, Tshepho Mogoshadi Mphahlele, to 15 years imprisonment, over the gruesome murder of her twin sister at Ga Mogotlane village in Limpopo.
According to Limpopo police spokesperson, Brigadier Hlulani Mashaba, the woman was found guilty of brutally killing her twin sister on January 18, 2023.
"During the trial, the court heard how the accused attacked her twin sister after they got into a heated argument and she stabbed her with a knife several times until she died at their residence,” Mashaba said. After the murder, Mphahlele chopped her sister’s body up with an axe, before fleeing the scene.
She later handed herself over to the Moletlane police station on January 20, and she was then arrested.
''The case was assigned to Sergeant Rodney Mothiba, and he diligently worked on the case to ensure that the accused was denied bail until she was found guilty,” said Mashaba. “The accused was sentenced to 15 years of imprisonment for the murder of her twin sister.” Hadebe added that no person has the right to take away someone’s life, even after being provoked.