Mr Chedi Wada, Comptroller, Nigeria Customs Service (NCS), Federal Operations Unit (FOU) Zone “B”, Kaduna has lamented that smugglers have been using fake presidential number plates to deliver vehicles across the country.
According to Wada, they have also been dubiously using such fake number plates belonging to various states and local governments, MDAs, Emirate Councils and other governmental institutions.
Wada disclosed this when he received Bashir Rabe-Mani, NAN Zonal Manager (ZM) in Kaduna Zonal Office, who paid him a courtesy call.
He said, ”Customs will not relent and will continue to do its best by not allowing smugglers to use the old tactics of using the presidential number plates and other governmental institutions to smuggle luxurious vehicles into the country.
”This is one of the menaces we are having. It is saddening how vehicle smugglers are ridiculing the apex seat in the country by using presidential fake plate numbers using them on newly smuggled cars to deceive customs.”
According to him, customs are well trained personnel and can easily identify fake numbers and cannot be played by the old tricks.
The comptroller said, “We are not happy with them, it is too bad for them to be playing with the presidency, that’s why we always put a heavy hammer on those using the presidency on false instances on smuggled vehicles.
“Let them respect the presidency, we must respect the presidency.”
The State House has allocated N9.5 billion for the acquisition of tires for bulletproof vehicles, Sport Utility Vehicles, operational vehicles, plain cars, and the construction of an office complex for Special Advisers and Senior Special Assistants.
Out of the sum, N2bn was earmarked for the replacement of SUV vehicles, N4 bn for the purchase of State House operational vehicles, N351m for the purchase of tyres for bulletproof vehicles, plain cars, jeeps, ambulances and N3.5bn for the construction of office complex for SAs and SSAs.
The details are contained in the 2024 Appropriation Bill released by the Budget Office of the Federation on Wednesday.
The PUNCH reports that the budget was presented by President Bola Tinubu to a joint session of the National Assembly on November 29.
Tinubu had christened the appropriation bill the ‘Budget of Renewed Hope.’
The PUNCH reports that the Tinubu-led administration has continued to come under fire following what experts have tagged as “frivolous spending” by the political class amidst the hardship currently being experienced by Nigerians following the removal of fuel subsidy.
The PUNCH had earlier reported that the proposed 2024 Appropriation Bill under review by the National Assembly has an allocation of N15.961 billion for international and domestic travel expenses for Tinubu, Vice President Kashim Shettima and their aides.
Tinubu’s travel budget amounts to N7.630bn, predominantly earmarked for foreign trips with N6.992bn designated for international travels and N638.535m set aside for domestic travel.
Shettima’s travel allowance is proposed at N1.847bn, split between N1.229bn for foreign trips and N618.399m for local travels.
Big Brother Naija reality star, Doyin David has criticized Nigerians who habitually pass judgment on young women choosing to marry wealthy older men.
Her comments were prompted by the recent backlash faced by Miss Universe Nigeria, Mitchel Ihueze, following her announcement of an impending marriage to 54-year-old billionaire Prince Nicholas Ukachukwu.
Mitchel, who is reportedly 26-year-old, received heavy criticism from some online users who disapproved of her decision to marry a man more than twice her age.
Reacting on her social media page, Doyin David responded to the controversy by identifying two distinct groups offended by such unions.
The reality star said the first group comprises of women who harbor aspirations of marrying into wealth but have not found the opportunity.
According to her, the second group includes men facing challenges in their own pursuits, feeling emasculated as they cannot attract a partner of similar status.
Doyin argued that many Nigerians subscribe to the notion that genuine love is only validated when a woman marries a less affluent man.
She expressed disdain for the label “gold digger” often assigned to women who choose to marry ‘up’ economically.
The BBNaija star emphasized that it is narrow-minded to assume that anyone dating a wealthy person is motivated solely by financial considerations rather than genuine love.
She challenged the prevailing belief that true love is synonymous with marrying someone of lesser financial means, asserting that this perspective unfairly implies that wealthy individuals cannot experience genuine love.
Doyin questioned the rationale behind criticizing someone else’s marriage, pointing out that outsiders won’t be the ones living with the couple.
She said,
“Why would you even be mad at another persons marriage? You won’t even live with them
“The categories of people who get upset when a woman marries a wealthy man:
“To most Nigerians, the perfect definition of true love is when a woman gets married to a poor man.
“The yard of your wife material is measured by your ability to marry down. Once you’re marrying up, you’re a gold digger.
“There are two categories of people that have a problem with Those ladies that wish they were in her shoes but they can’t find a man like that so they just settle themselves by hating on her.
“Those men that are still struggling to make ends meet because their egos are bruised over the fact that they can’t get a woman like her.”
“The categories of people who get upset when a woman marries a wealthy man:
“To most Nigerians, the perfect definition of true love is when a woman gets married to a poor man.
“The yard of your wife material is measured by your ability to marry down. Once you’re marrying up, you’re a gold digger.
“There are two categories of people that have a problem with Those ladies that wish they were in her shoes but they can’t find a man like that so they just settle themselves by hating on her.
“Those men that are still struggling to make ends meet because their egos are bruised over the fact that they can’t get a woman like her.”
The Ogun State Police Command says it has arrested two suspected ritualists, Akeem Usman and Ifadowo Niyi, for allegedly killing and dismembering a 100-level student of the Obafemi Awolowo University (OAU), Quadri Salami.
The suspects reportedly murdered the 18-year-old Salami, dismembered his body and buried the remains in a shallow grave.
The Police Public Relations Officer (PPRO) of the command, Omolola Odutola, confirmed the arrest of the suspects to journalists on Thursday.
The publicist explained that the deceased’s father had reported the sudden disappearance of his son to the police at Kemta police station on 14th November.
The deceased’s father had told the police that his son was last seen on 8th November.
The PPRO, however, said a police investigation led to the arrest of one of the suspects, Akeem Usman, who was found in possession of the deceased’s phone.
The police spokesperson said the Commissioner of Police, Abiodun Alamut, on Wednesday, led a tactical squad to Mile 6 in the Ajebo area of Abeokuta, where the deceased’s body parts were buried in a shallow grave.
“He (Akeem Usman) implicated one Ifadowo Niyi that both of them committed the heinous crime by slaughtering the victim, one Quadri and dismembering his vital parts for ritual purposes.
“Ifadowo went away with Quadri’s head and his two wrists and paid the sum of N100,00 into Akeem Usman’s account as proceeds from the sale of the human body parts. The other parts were then buried,” Odutola said.
A female adult, whose identity is still unknown, was discovered dead in a motel in Morogbo, Badagry, Lagos State.
The event occurred on Friday, November 31, after the deceased checked into the hotel with a male partner.
Both guests allegedly arrived at the hotel in the morning of the said day and paid for a short rest.
After a few hours, the receptionist, who was prepared to give the room to another customer, went to the room and discovered it was locked.
According to a community resident who spoke on Wednesday, the hotel worker later used a spare key to open the door and discovered the lady still on the bed motionless.
The resident, who craved anonymity due to the nature of the incident, said, “The two guests arrived at the hotel in the morning. After paying, they collected the key to their room and went inside. It was later, around 10 pm, when the hotel attendant wanted to give the room to another customer, that they started to look for the key to the room.”
The state Police Public Relations Officer, Benjamin Hundeyin, confirmed the incident.
He said, “The corpse has been deposited in the morgue. The owner of the hotel has been arrested along with the receptionist. The case will be transferred to the State Criminal Investigation Department.”
ACTOR Prince Eke has recounted his ordeal after he was kidnapped eight years ago.
The actor who was formerly married to singer Muma Gee was abducted in Rivers State on his way back from a movie shoot in 2015.
Taking to his Instagram page to mark eight years of his release from hostage, Prince Eke described his ordeal as hell on earth.
He also revealed how some of his colleagues accused him of plotting his abduction to raise money.
“Today marks exactly eight years ago I was kidnapped along Ubima road in Rivers State. I experienced hell on earth . But the greatest experience was that, most of my colleagues and friends alleged that I kidnapped myself to raise money.
“Pray for life , because if you die, people you thought were close to you will say so many unprintable things about you. Thank God for the gift of life and grace!”
[NaijaTimes]
The recent announcement by Procter and Gamble regarding plans to cease operations in Nigeria echoes a Déjà vu moment for consumers, raising fears of significant job losses and escalating prices of essential items such as diapers, sanitary pads, and other household goods.
Following the earlier exit of GSK, Nigeria witnessed a staggering 1000% increase in the cost of drug items, amplifying concerns about the potential consequences of another major consumer manufacturing company leaving due to macroeconomic challenges.
What Nigerians are saying
Nigerian reactions on social media (X)reflect a deep sense of apprehension and economic jitters. @StephAdamu expressed concern about the impending rise in consumer goods prices, drawing parallels with GSK’s departure.
- “The potential exit of Procter & Gamble in Nigeria is going to deal with us terribly. It’s already expensive buying Always sanitary pads and pampers then imagine when they leave, we can all see the result of prices of drugs after GSK left. How are we going to handle purchases of products like always sanitary towels, pampers, Ariel and co? When will Nigeria as a country grow beyond importing every thing and manufacture our own products locally? The coming year is going to be a tussle”
- Another user, @MissPearls said “GSK left Equino left Sanofi Left Procter and Gamble (P &G) is leaving too Many more companies will fold up or leave. Unemployment is skyrocketing, your currency is almost becoming useless which way forward?”
@SportsDokita underscored the potential rise in job insecurity and the discouraging effect on foreign investors, stating.
- “P & G is the latest company to close down its operations in Nigeria and will now revert to IMPORTATION which will make their products more expensive. In case you don’t know what they produce, they produce Ariel, pampers, batteries, shaving stick, etc. Now imagine the number of Nigerians that have lost their jobs just because these guys are leaving. Tinubu keep making the economy unbearable and say you’re looking for foreign investors when the ones here are freaking LEAVING!!!!!”
@Mavisikpeme corroborating previous thoughts on the new development said “P&G living Nigeria means 5,000 Nigerians have lost their jobs . This was a company producing the likes of Ariel detergent , oral B toothpaste , always pad , pampers to mention but a few . Renewed shege promax !!”
Emphasising on the economic impact the FMCG company would have on the job market as a whole @ChijiokeIke gave a breakdown of the company’s employment history.
“P&G entered the Nigeria Space in 1992 employing only 40 people in their Lagos Office Fastfoward 10 years they had employed a total of 1800 people from the Nigerian Labour Market In 2015, the APC government of Buhari took over from PDP promising Change.
As of 2018, P&G laid off over its first batch of 120 staff shutting down their biggest plant in Ogun state. As at the time this plant was the single biggest American owned Non-Oil Investment in Nigeria Fast forward to 2021, they conducted another round of redundancies in Ibadan.
Now in 2023, they have finally thrown in the towel due to the Obscenely High cost of Operations and Corrupt Practices slowing down their supply Chain Over 1500 people will lose their Jobs.
That’s 1500 families not sure of their next source of income. That’s 7500 people not sure about how they will feed next year Let’s not even mention the Local Economies that will be effected”
In light of the impending closure, @KBT_BANKOLE urged people to stock up on essential items, “With the closure of operations of Procter & Gamble in Nigeria, the prices of FMCGs like sanitary pads, baby diapers, detergents, toothpastes, etc are about to skyrocket. Do you guys realize how serious this is? Please stock up on these items in bulk NOW if you can. Renewed Shege”
@hispri0rity, echoing the sentiments, anticipated a triple increase in prices for various products. “Procter & Gamble is leaving Nigeria, Vicks lemon plus, Vicks blue, pringles, Pampers, Ariel, Always, Oral B, Gillette Safeguard, etc will triple in prices.”
https://x.com/hispri0rity/status/1732422101896974691?s=20
[Nairametrics]
The much anticipated Central Bank of Nigeria (CBN)’s power intervention projects will be ready by May, 2024, according to Project Management Office, Transmission Company of Nigeria (TCN), Engr. Engineer Matthew Ajibade,
The N122.223 billion projects, which cut across the states of the federation, aim to resolve the transmission and distribution interface bottlenecks to improve supply to end users and unlock the unutilised generation capacity in the country.
Ajibade, who led the CBN, Nigeria Electricity Regulatory Commission (NERC), NESI and other stakeholders on tour of the projects sites in Lagos on Wednesday, noted that, manufacturing process for most of the contacts is scheduled to be completed early next year 2024 to pave way for shipment and delivery.
The projects, when completed, will enhance delivery of about 1,500MW of power nationwide.
Recall that the Central Bank of Nigeria (CBN) had, in August this year, approved the sum of N122,289,344,369.39 for intervention in the nation’s power sector.The loans were accessed by the 11 electricity distribution companies at 9 % interest rate from the Central Bank of Nigeria(CBN).
According to Ajibade, so far, N85.4billion of the approved sum had been disbursed to 53 contractors to execute the projects.
Already, 10 of the power transformers have been delivered while the rest ranging from 150MVA, 100MVA and 60MVA are expected to be delivered and installed on or before May 2024.
“This intervention is anchored on firm Service Level Agreements (SLAs) between TCN and DisCos on the one hand and DisCos and their customers on the other hand. The facility was given to Discos to invest in TCN Networks by virtue of NERC regulation that permits third party investment in the Electricity Network.
Payment for the loan would be a net off from the TCN monthly invoice to DisCos. The project implementation Office (PMO) is resident in TCN for effective implementation”, he stated.
However, seven contractors that have finished with offshore production process are; Skipper Nigeria Ltd (BEDC), GTA Engineering Nigeria Limited for PHEDC network, T&D West Africa Ltd (IKEDC), Lagacee Power Ltd (AEDC), Bussdor & Company Ltd (AEDC) FOSAB Global Energy Services Limited PHEDC and Beam Energy Ltd (EKEDP).
Some consignments containing Power Transformers have been delivered to Gwagwalada, Oworonsoki 132/33KV Substation and TCN Ojo store in Lagos by Contractors.
CBN’s representative and Assistant Director/ Head Infrastructure Finance Office, Tumba Abdulrazaq Tijani, applauded the commitments of the contractors, saying, execution of the projects within a short time of accessing funds surpassed the bank’s expectations.
He noted that the projects, when completed, will impact positively on electricity deliveries by discos to consumers across the country.
The projects include eight 150MVA, 19 of 100MVA, 67 of 60MVA, three Re-conductoring existing Transmission lines (Conductors & Accessories) of 517.5 km, 24 contracts for upgrading Existing 132/33KV Substations and construction of 50 of 33KV line bays.
[Leadership]
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]
More...
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]
The Association of National Olympic Committees of Africa (ANOCA) has granted Egypt the right to host the 2027 African Games.
The Egyptian National Olympic Committee (ENOC) had sent a request to ANOCA, voicing interest in hosting the games.
Egypt’s successful bid highlights the nation’s established presence in hosting prestigious tournaments, having previously organised events like the 2021 World Handball Cup, Africa Cup of Nations (AFCON) 2006 and 2019 as well as the U20 African Nations Cup in 2022, among others.
This is Egypt’s second time hosting the African Games, having hosted the continent in Cairo in 1991.
President of ANOCA, Mustafa Braff, formally notified the President of the Egyptian Olympic Committee, Engineer Hisham Hatab, acknowledging Egypt’s dedication and leadership through a formal letter, conveying the esteemed hosting right.
ANOCA expressed gratitude to Egypt and President Abdel Fattah El-Sisi for their contributions during important meetings.
With the spotlight on Egypt, the nation will prepare to host the 2027 African Games, showcasing its commitment to organising a successful event on the continental stage and contributing to the legacy of the African Games.
[Leadership]