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The Bola Tinubu-led Federal Government is set to roll out the first set of critical assets for the deployment and launch of the Compressed Natural Gas (CNG) initiative.
The Special Adviser to the President on Information and Strategy, Bayo Onanuga, made this known in a statement on Sunday in Abuja.
Onanuga said the CNG initiative was designed to deliver cheaper, safer, and more climate-friendly compressed natural gas, especially for mass transit, after the removal of the wasteful fuel subsidy on May 29, 2023.
He said President Tinubu launched the Presidential CNG Initiative in October last year and approved the set up of a committee led by Michael Oluwagbemi, an oil and gas expert.
Onanuga said the government provided N100 billion (part of the N500 billion palliative budget) to purchase 5500 CNG vehicles (buses and tricycles), 100 Electric buses and over 20,000 CNG conversion kits, alongside spurring the development of CNG refilling stations and electric charging stations.
The presidential aide said over 600 buses are targeted for production in the first phase, which will be accomplished this year and to mark the president’s first year in office on May 29.
The statement reads: “The Federal Government, as part of the many intervention programmes to reduce the burden of the increase in pump prices on the masses, provided N100 billion (part of the N500 billion palliative budget) to purchase 5,500 CNG vehicles (buses and tricycles), 100 Electric buses, and over 20,000 CNG conversion kits, alongside spurring the development of CNG refilling stations and electric charging stations.
“After months of detailed planning and background work, the committee driving the initiative is set to deliver on President Tinubu’s vision and promise.
“Already, the committee, being led by Michael Oluwagbemi, an oil and gas expert, has delivered some major foundational reforms to enable the new CNG and Electric Vehicles future the President promised. All is now ready for delivery of the first set of critical assets for deployment and launch of the CNG initiative ahead of the first anniversary of the Tinubu administration on May 29.
“With necessary tax and duty waivers approved by President Tinubu in December 2023, the PCNGI committee is partnering with the private sector to deliver the promise of the initiative. The private sector has responded with over $50 million in actual investments in refuelling stations, conversion centres, and mother stations.
“Also, a safety policy document outlining 80 standards and regulations that operators must strictly adhere to has been developed and approved to ensure CNG conversions are done safely and reliably.
“The deployment of CNG buses and tricycles and the vision to get at least one million natural gas-propelled vehicles on our roads by 2027 will mark a major energy transition in our country’s transportation industry. The use of more expensive diesel and PMS will gradually be phased out, when many vehicles, including trucks run on natural gas, which our nation has in abundance in at least 30 out of the 36 states of the federation.
“As studies have shown, one of the main causes of air pollution is primarily the amount of gases emitted by gasoline and diesel engines. To reduce pollution, some countries of the world, such as India, China, Iran, Pakistan, Brazil, Argentina, and Italy, have built fleets of natural gas-powered vehicles instead of going the route of relying on liquid petroleum products and propelled vehicles. Natural gas vehicles reduce tailpipe emissions by up to 40 per cent, and Nigeria’s commitment to this course will enable her to meet her nationally determined commitments (NDCs) under the Paris Climate Accord, to which we are signatories.
“From the end of May, Nigeria will take some baby steps to join such nations that already have large fleets of CNG vehicles. Remarkably, the Tinubu administration, in driving the nation to the desired destination, has flagged open a new industry, along with thousands of new jobs.
“Four plants owned by JET, Mikano, Mojo, and Brilliant EVs located in various parts of the country are involved in assembling the Semi-Knocked-down (SKD) components of the CNG buses. JET, which has received the SKD parts, is coupling the buses in Lagos and is working towards delivering 200 units before the first anniversary of the Tinubu administration.
“Brilliant EV will assemble electric vehicles. It is awaiting the SKD parts, which will arrive in due course. The electric vehicles it will produce are meant for states such as Kano and Borno, which do not have access to CNG for now. They will also be available in key Nigerian cities and university campuses. It must be noted that soon-to-be-completed gas pipeline projects initiated by the Buhari administration and being completed by NNPCL (the AKK Pipeline) will take gas into the hinterlands of North East and North West, where there is current paucity.
In all, over 600 buses are targeted for production in the first phase, which will be accomplished this year. A new plant on the Lagos-Ibadan Expressway will assemble thousands of tricycles. The SKD parts manufactured by the Chinese company LUOJIA in partnership with its local partner to support the consortium of local suppliers of CNG tricycles are set for shipment to Nigeria and are expected to arrive early in May. About 2,500 of the tricycles will be ready before May 29, 2024.
“Thousands of conversion kits for petrol powered buses and taxis that want to migrate to CNG are also ready with CNG cylinders. The Federal Government intends to provide them at subsidized rates, especially to commercial vehicle drivers to bring down the cost of public transportation.
“As part of private sector collaboration, NIPCO and BOVAS are involved in offering refilling services for the CNG vehicles and also serving as conversion centres. NIPCO is setting up 32 stations nationwide to offer the services. The company has completed the set up of four of the CNG stations. Likewise, BOVAS is setting up eight stations in Ibadan, two each in Ekiti, Abuja and four in Ilorin. MRS is also involved. It is making efforts to announce where its refilling stations and conversion centres will be.
“The NNPC Limited, which had launched an on-and-off CNG initiative in the past, is joining the new initiative. It is expected soon to announce the locations for CNG refilling and CNG conversion centres nationwide.
“In addition, the PCNGI is working with 22 other agency partners, including the Standards Organisation of Nigeria(SON) and Nigeria Automotive Design and Development Council to deliver 80 Natural Gas Vehicle Conversion and Associated Appliances Standards for the country.
“For proper monitoring, PCNGI will also launch MYCNG.NG App. The app will embed the Nigeria Gas Vehicle Monitoring Systems, which will show CNG conversion and refuelling sites in the country.
“The Tinubu administration is an enabler of the evolving CNG industry. In collaboration with the private sector, the PCNGI is set to deliver 100 conversion workshops and 60 refuelling sites spread across 18 states before the end of this year.
“The vision of Mr. President to deliver one million gas vehicles cannot be possible without the private sector, including the RTEAN, NARTO, NURTW, and players in the downstream sector of the transportation chain and financiers.”
The Joint Admissions and Matriculation Board on Sunday announced that it has sanctioned some officials over the harassment of a female Hijab-wearing candidate.
The female candidate who sat her Unified Tertiary Matriculation Examination at the Bafuto Institute, Ile-Iwe Bus Stop, Ejigbo, Lagos was said to have been asked to remove her headcover during the accreditation process before being allowed into the examination hall.
Addressing the issue in a statement signed by the Head of Public Affairs of the Board, Dr. Fabian Benjamin, the Board noted that it deeply regretted the incident.
It said on investigation, it discovered that the incident or others in the past were not linked to any of its examination guidelines but rather a product of the misplaced priority of some of the Board’s accredited partners or officials who claimed ignorance of the its guidelines on accreditation.
The statement read, “This situation was instantly addressed by a senior official of the Board at the center and the candidate in question was allowed in after the usual checks with her hijab.
“However, since ignorance of the law is not an excuse, the officials have been appropriately sanctioned to serve as a deterrent to others, who might wish to toe the same line going forward.
“It is worthy of note that the Board, as a national institution, has no policy barring candidates from sporting the religious paraphernalia peculiar to their religious persuasions as these are the facts of everyday life in Nigeria, which everyone should have been familiar with by now.”
Furthermore, the Board assured the general public that the issue would be properly investigated as to prevent a recurrence.
“The Board is committed to the discharge of its statutory role of ensuring that suitably qualified candidates are selected for admission into the nation’s tertiary institutions and would not allow anything or anyone to detract it from the pursuit of this noble goal,” it reiterated.
Meanwhile, the conduct of 2024 UTME, which commenced on Friday, 19th April 2024, has been marred with reports of technical glitches as over 1.2 million candidates would have successfully taken the examination by Monday, 22nd April 2024.
The All Progressives Congress (APC) has reacted to the fresh suspension of the party’s national Chairman, Abdullahi Umar Ganduje from the party.
Naija News earlier reported that another APC faction had also suspended Ganduje.
Reacting to the development on Sunday, the chairman and secretary of Ganduje ward in Dawakin Tofa local government of Kano state, Ahmed Muhammed Ganduje and Usaini Jibrinn said no new election was conducted by the state or national body of the APC.
Speaking via a statement made available to Naija News, the duo said the sponsored group could not do their homework properly by using a fake or uncertified headed paper on which they drew a list of non existing party executive.
“To the best of our knowledge, as executive members of Ganduje ward of the APC, there was no new election of new leadership of our party. We remain the same executive of the ward,” the statement added.
The executive members subsequently called on the national body to facilitate the arrest and persecution of the group for impersonators attempting to cause persecution of the group for impersonation.
They also called on party members to disregard such propaganda aimed at disrupting the party.
The Federal Government is looking forward to receiving around $2.2 billion single-digit interest loan from the World bank and another budget support facility from the African Development Bank (AfDB).
Minister of Finance, Wale Edun disclosed this during the press briefing at the end of Nigeria’s activities at the World Bank/IMF Spring Meetings in Washington DC, the United States on Saturday.
While speaking on the sources of international funding to the Nigerian economy, the Minister listed diaspora remittances, foreign portfolio investments and facilities from the World bank and other international development partners.
- He stated, “We have qualified for the processing just this week to the Board of Directors of the World bank of a total package of $2.25 billion of what you can call ‘the closest you can get to a free lunch’- virtually a grant. It’s for about 10- 20 years moratorium and about 1% interest.
- “In addition, there is a similar budgetary support – low-interest funding from the African Development Bank (AfDB) and, clearly, there are also ongoing discussions with foreign direct investors across many sectors.”
Edun also tapped issuing dollar-denominated securities specifically targeted at Nigerians in the diaspora and those with foreign-denominated savings in Nigeria as another measure to attract forex inflows into the country.
He disclosed that the Federal Government hopes to issue the bonds later this year.
Efforts of fiscal side of the economy to spur growth
Furthermore, the Minister highlighted the efforts of the fiscal side of the economy in complimenting the recent monetary policy reforms by the Central Bank of Nigeria (CBN).
According to the Minister, the issuing of government securities at an interest rate closer to the CBN’s monetary policy rate (MPR) is an indication of the collaboration between both sides of the economy in tackling inflation in the country and attracting forex inflows.
He listed the agricultural sector as one area the Bola Tinubu administration is looking to spur growth in the medium term, noting that efforts in that area include the distribution of fertilisers and seeds to reduce food prices and enhance food security.
Other programs, according to the Minister, are: increasing power generation to about 6000 megawatts within six months, provision of infrastructure especially housing with the goal of making low-interest mortgages available to Nigerians, revamping of the social investment program and proposed economic stabilisation plan.
[Nairametrics]
President Bola Tinubu will on Monday, April 22, open the African Counter-Terrorism Summit in Abuja.
The Special Adviser to President Tinubu on Media and Publicity, Ajuri Ngelale, made this known in a statement on Sunday in Abuja.
He said Nigeria, with the support of the United Nations Office of Counter-Terrorism (UNOCT), is organizing a high-level African counter-terrorism summit under the theme, ‘Strengthening Regional Cooperation and Institution Building to Address the Evolving Threat of Terrorism’, in Abuja, from April 22 to April 23.
Ngelale stated that the objective of the summit is to enhance multilateral counter-terrorism cooperation and reshape the international community’s collective response to terrorism in Africa while emphasizing the importance of African-led and African-owned solutions.
He disclosed tha the summit will provide a platform to review the nature and severity of the threat of terrorism on the continent, with a view to agreeing on concrete strategic priorities and measures to address this scourge.
Ngelale added that the summit will also foster deeper regional collaboration, enhancing the institutional capacity of member states and facilitating the exchange of best practices and knowledge to combat the multifaceted threat of terrorism in Africa.
The statement added: “Heads of state and government and high-level government officials across Africa, representatives of international organizations and multilateral institutions, members of the diplomatic corps, and members of civil society groups are expected to attend the summit.
“Ms. Amina Mohammed, the United Nations Deputy Secretary-General, will attend the event.
“Mallam Nuhu Ribadu, National Security Adviser, and Mr. Vladimir Voronkov, the Under-Secretary-General for Counter-Terrorism, UNOCT, will deliver the concluding remarks at the end of the summit.”
[NaijaNews]
The All Progressive Congress (APC) in Kano State has once again labelled the recent suspension of the National Chairman of the party as another case of impersonation.
The Secretary of the party in the State, Ibrahim Zakari Sarina, made this known while speaking to our reporter via phone call.
Daily Trust had reported that the crisis rocking the party in Kano took a new twist when new executives emerged from Ganduje’s ward and issued fresh suspension to acting National Chairman of the party, Dr. Abdullahi Ganduje.
Last week, Ganduje was suspended by another faction of the party executives in his ward.
However, in yet another twist, the group led by the secretary of the ward, Jaafar Adamu, on Sunday said 11 out of the 27 executive members of Ganduje ward were the legitimate ward excos legally elected on 31st July, 2021.
Adamu said a fresh suspension had been slammed against Ganduje.
But reacting to the development, Sarina said it is still a case of impersonation sponsored by some elements who were not legitimate executives in Ganduje Ward.
While acknowledging some of the said Ward executives to be party members, he said they were not executives and did not hold any position in the party at any level.
“It is a case of impersonation still, they were also sponsored to come out and did it late evening on Saturday. We were called and told that this is what is happening.
“Some of them are party members of the APC but have never in any way been Executives nor held any position. Even the so-called Chairman has never been an executive.”
Sarina added that the party in the State was working towards bringing the real and genuine party executives to clear the air soon.
[DailyTrust]
Despite a successful burial ceremony for the former Anambra state governor, Dr. Chukwuemeka Ezeife, organized by Governor Chukwuma Soludo, tension allegedly rose between the Igboukwu community and the governor due to alleged violations of the state’s burial laws.
Ezeife, who died few months ago, was buried on Saturday at his Igboukwu country home in Aguata local government area of the state.
However, Anambra state governor, Prof. Chukwuma Soludo, is not happy that despite the existing law in the state, the kinsmen of Ezeife went ahead, ignoring the government’s earlier warning
During the burial, the family printed brochures, banners, flexes among other things that made the burial more expensive, which were against the burial law of the state.
The Anambra burial law was passed by the state house of Assembly and signed into law by the former governor Willie Obiano in 2019
Soludo said: “Okwadike that I knew was a stickler for process, for the law and that’s why he held Nigeria accountable to observe the principles of the federal character in everything because he believed in the law.
“So all these fanfare that make burial very expensive, run contrary to the Anambra burial law which was passed three years before I became governor. I didn’t pass it. It has been there. It is the law.
“Those things that play no role should be avoided. All that is required is for us to respect the dead. We have given Okwadike for God to grant him eternal rest as we lay him to rest in accordance with Anambra burial law.
“That law also says that all burial funerals, condolences must be for one day. You don’t have a waiver for laws, you can only waive for rules.
“You either obey the law or amend it. Once it remains the law, it is to be obeyed. And that’s not the society that Okwadike dreamt of. The foundation we are working on, is the one he left for us” Soludo said.
However, two of Ezeife’s kinsmen, who spoke with The Nation, said the governor was on his own on the burial law of Anambra state, describing Ezeife as a national figure and not a local man.
The High chief, who did not want to be mentioned, warned Soludo not to cause the body of Ezeife not to rest in peace.
A lawyer from Ezeife’s community, commended Soludo for his support in the late Octogenarian’s burial, but warned him to desist from raising such issue in Okwadike’s burial.
“Yes, we know the law, but the great man is not the type of person you expect to bury like a fowl, though, law is for big and small, but Soludo should think twice” he said
The Nation, gathered Sunday that Soludo is already, preparing a document to be served on the Ezeife family very soon for flouting the burial right, despite his earlier warning.
[TheNation]
The Socio-Economic Rights and Accountability Project has urged Nigeria’s 36 state governors and the Minister of the Federal Capital Territory, Nyesom Wike, to account for the spending of Federal Account Allocation Committee allocations to states and the FCT since 2019.
It also asked them to provide and widely publish documents on the spending of FAAC allocations received by their states and the FCT since 1999.
The Federal Account Allocation Committee is responsible for reviewing and adopting the allocation of funds to states and the Federal Government of Nigeria.
The requests followed reports that the committee disbursed N1.123 trillion to the federal, state, and local governments for March 2024 alone.
The breakdown showed states collected N398.689 billion.
SERAP’s request was contained in the Freedom of Information inquiry dated April 20, 2024, and signed by its Deputy Director, Kolawole Oluwadare.
“Without this information, Nigerians cannot follow the actions of their states and the FCT, and they cannot properly fulfil their responsibilities as citizens.
“Trillions of FAAC allocations received by Nigeria’s 36 states and the FCT have allegedly gone down the drain. The resulting human costs directly threaten the human rights of socially and economically vulnerable Nigerians,” it said.
It added that publishing the documents would enable Nigerians to meaningfully engage in the implementation of projects executed with the FAAC allocations collected.
“We would be grateful if the recommended measures are taken within seven days of the receipt and/or publication of this letter.
“If we have not heard from you by then, SERAP shall consider appropriate legal actions to compel you and your state and the FCT to comply with our requests in the public interest,” it added.
The FoI requests read in part, “Secrecy in the spending of FAAC allocations received by your state and the FCT is entirely inconsistent and incompatible with the Nigerian Constitution 1999 [as amended] and the country’s international anti-corruption obligations.
“Secrecy in the spending of FAAC allocations received by your state and the FCT also denies Nigerians the right to know how public funds are spent. Transparency in the spending would allow them to retain control over their government.
“The documents should include the evidence and list of specific projects completed with the FAAC allocations collected, the locations of any such projects, and completion reports of the projects.
“The documents should also include details of the salaries and pensions paid from the FAAC allocations collected, as well as the details of projects executed on hospitals and schools with the FAAC allocations.
“Despite the increased FAAC allocations to states and FCT, millions of residents in your state and the FCT continue to face extreme poverty and lack access to basic public goods and services.”
[Punch]
…says Damagum’s survival is not defeat for Atiku or victory for Wike, it’s for the interest of PDP
The Senate Minority Leader, Senator Comrade Abba Patrick Moro, PDP, Benue South has given insight why the MInister of the Federal Capital Territory Administration, FCTA, Nyesom Wike was allowed to attend the National Caucus meeting of the Peoples Democratic Party, PDP, preparatory to last week’s National Executive Committee, meeting of the party.
According to Moro, there was no way Wike would have been stopped from attending the meeting since he has not been found guilty of any crime and penalized by the party.
The Minority leader said that if the party’s disciplinary committee, headed by former President of the Senate, Senator Bukola Saraki found Wike guilty of the alleged antiparty activities and have him sanctioned, he would stop attending the party’s meetings.
Moro said the survival of Amb. Umar Lliya Damagum as Acting National Chairman of PDP was not a victory or defeat for anybody but a decision that was unanimously agreed on by the relevant stakeholders for the party to forge ahead.
Senator Moro’s reaction was against the backdrop of rumours in some quarters that Amb. Damagum’s survival, against call for his resignation, was victory for the former governor of River State, Nyesom Wike, and a defeat for PDP Presidential candidate in the 2023 general elections, Atiku Abubakar.
In a statement on Sunday by his Media Adviser, Emmanuel Eche’Ofun John, Senator Moro said the activities and inactivities of PDP should not be translated to Atiku and Wike.
He said the whole issue was not about victory or defeat for anybody but about PDP; about providing an alternative formidable platform for Nigerians to look up to.
Moro said, “We cannot translate the entirety of PDP’s activities and inactivities to Wike and Atiku, out of millions of other members of the party across the country who also have their own thinking and reasons for being in the party.
“The whole issue was not about Wike or Atiku, or victory for Wike or defeat for Atiku, the issue was existential.
“We came together and reasoned together, that in the present scenario where Nigerians are hurting due to the maladministration of the APC government, what do we do to provide an alternative platform for Nigerians to look up to? In that circumstances, we decided to thread with caution so that we dont throw away the baby with the bath water,” he said.
On why the National Caucus of the party allowed Nyesom Wike into their meeting, the Minority Leader said, “The constitution of our party is very clear on who is a member and who is not a member of the caucus of the party and I dare say, at this point, that as a former governor who is still a member of the party, Nyesom Wike is a member of the National Caucus of the party.
“If actions had been taken immediately after the elections and people who are perceived to have acted contrary to the desires and yearnings of the PDP have been sanctioned, then we can say that having been expelled or suspended, you can’t be here, but as it is, non of such actions has been taken, so you can’t just ban people from attending meetings.
“One of the fallouts of the last NEC meeting was the resuscitation of the Reconciliation and Disciplinary Committee, which is saddled with the responsibility of identifying the area of antiparty and the dramatis personae involved in the activities, and recommend appropriate punitive measures against those who have been found guilty to serve as deterrent to future occurrence.
“Unfortunately, that hasn’t been done, and so to that extent, as a voluntary organization, if the members involved insist they are still members of the party, until actions are taken by the Reconciliation and Disciplinary Committe we want to take that they are still members of the party.”
On expectations from the next NEC meeting scheduled for August 15 as it concerns the position of the National Chairman of the party, Moro who noted that the party’s constitution had a well spelt out succession plan, said, “The constitution of our party has a well spelt-out succession plan. Section 35 (3C) states that where a vacancy exists, someone from the zone of the immediate past occupier of the office shall be appointed by NEC to complete the tenure of the person who vacated the office.
“For the position of the National Chairman, we will look at the succession plan of the party, in accordance with the constitutional provisions, and produce a replacement for Senator Iyorchia Ayu from North Central now that he has heeded to our plea and withdrawn his case from the court. We will go to the next NEC meeting with open minds and invoke the relevant sections of the constitution to produce his replacement.”
Senator Moro who appealed to members and stakeholders of the party to have some level of circumspection and restraints in their actions and utterances so as not to further polarize the party, assured that everything humanly possible would be done to put the party on its winning ways, to rescue Nigerians from the grinding poverty and sufferings that the ruling APC has plunged them into.
[Vanguard]
Naira, Nigeria’s currency is set to stabilise further as the Central Bank of Nigeria (CBN) has agreed with the International Money Transfer Operators (IMTOs) and foreign investors to double remittance flow in the country, in the short to medium term.
To achieve this, the CBN said it is setting up a tax force that will ensure that all hindrances to the foreign inflows are addressed.
Olayemi Cardoso, governor of the CBN, disclosed this at a joint press conference of the ministry of finance and the CBN in Washington D.C. at the International Monetary Fund (IMF)/World Bank meetings.
Foreign exchange inflows to Nigeria rose to $2.3 billion in February, the central bank according to the CBN, driven by renewed interest from foreign investors and a rise in overseas remittances.
According to Statista the personal remittances received in Nigeria increased by 0.7 billion U.S. dollars (+3.59 percent) in 2022. In total, the personal remittances received amounted to 20.13 billion U.S. dollars in 2022.
Remittances are flows of money between immigrants and their relatives. They refer to personal transfers between resident and non-resident individuals, and the compensation of employees who are employed in an economy where they are not resident, and of residents employed by non-resident entities.
“Besides our meetings with multilateral financial institutions, and foreign investor groups, with a keen interest on developments in Nigeria, including the US Chamber of Commerce, we had very productive discussions with leading international money transfer operators IMTOs, where we collectively committed to doubling remittance flows through formal channels into Nigeria in the immediate short to medium term.
“This target is both ambitious and achievable. And we are wasting no time in setting up a collaborative Task Force reporting to myself to drive progress and address any bottlenecks that hinder flows through formal channels,” Cardoso said.
The naira weakened by the most in over a month at the parallel market on Friday, ending a rally since late March that had made the currency the world’s best performer.
A dollar sold for N1,230 in street trading on Friday, a 17 percent decline compared to N1,050 the previous day.
Traders say there was an uptick in demand on the day but still expect the naira to pare the losses in the coming days.
The naira also depreciated at the official market to N1,169.99 against the dollar on Friday — a 1.38 percent drop from the N1,154.08/$ rate on April 18.
He said in the six months since assumed the position of Central Bank governor, the challenges have been significant from grappling with inflation to addressing volatility in the foreign exchange market.
“However, with relative stability now achieved particularly in the foreign exchange market, we have transitioned from firefighting to strategic planning across key areas.
“These areas include improving the ease of doing business in Nigeria to consolidate and sustain the gains through an efficient and transparent market system and boosting financial and economic inclusion for small businesses and households. Interrogating all potential ways to leverage smarter use of technology and remote banking to reduce the cost of transactions and expand access accessibility to the financial system,” Cardoso said.
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Mr Aigboje Aig-Imokhuede, Chairman of Access Holdings Plc, has expressed confidence about raising 300 million dollars in capital for Access Bank, considering the bank’s strong market position and shareholders’ support.
Aig-Imokhuede said this in an interview on the sideline of Access Holdings’ second Annual General Meeting(AGM) held in Lagos.
The Central Bank of Nigeria (CBN), on March 29, directed commercial banks in Nigeria with international authorisation to shore up their capital base to N500 billion and national banks to N200 billion.
Similarly, non-interest banks with national and regional authorisation will increase their capital to N20 billion and N10 billion, respectively.
The recapitalisation exercise is expected to commence from April 1, through March 31, 2026.
Consequently, the shareholders of Access Bank at the AGM unanimously backed the Group’s plan to establish a capital raising programme of up to $1.5 billion.
They also agreed to the subset initiative to raise up to N365 billion specifically, through a Rights Issue of ordinary shares to its shareholders.
The proceeds of the rights issue will be used to support ongoing working capital needs, including organic growth funding for the group’s banking and other non-banking subsidiaries
Aig-Imokhuede explained that having announced to embark on a capital raising through Right Issue, he was confident that the group’s shareholders would support the bank in the journey.
He stated that Access Holdings has a unique relationship with the capital market in Nigeria and internationally.
“It is not the first time CBN is coming up with such policy.
“Recall that in 2004 when CBN announced that all banks must recapitalise to the tune of N25 billion and Access Bank had about N3 billion of capital.
“Between 2004 and 2007, however, our team, when I was the CEO of the bank, raised two billion dollars of common equity capital.
“Therefore, in 2024 when Access Holdings is much older, wiser, stronger, larger and significantly respected by the capital market with over 800,000 shareholders, raising 300 million dollars in capital for Access Bank, its banking subsidiary is not really much of a challenge.
“We signalled to the market first that we will be doing a Right Issue, which means that we must carry everybody along, in spite of our large institutional shareholders.
“Nonetheless, we believe in ensuring that shareholders, either large or small, continue with us on our journey.
“They have always supported us when need be with good reasons, because they believe in the company and the performance that would be delivered subsequently to such capital raising exercise.
“What is on the mind of our shareholders now is recapitalisation and they are also concerned about how their company continues to deliver returns,” he said.
Commenting on the CBN recapilisation policy, the chairman noted that Access Bank as a group endorses the CBN policy wholeheartedly.
Aig-Imokhuede described the policy as a good and sensible prudential regulation.
He added that banks, particularly after period of significant devaluation of domestic currency, volatility in the foreign exchange, and interest rate regime, are always encouraged to build up their capital buffer.
According to him, this is to ensure that whatever adverse effect that may arise as a result of the dynamic changes in the business environment would not affect their very concern.
In terms of performance and expectations from Access Holdings going forward, Aig-Imokhuede stated that the earning profile of the group, which spread across Nigeria, Africa and outside Africa subsidiaries, is very robust.
He said: “As an investor, you always look to see whether there is deep concentration where the profit is coming from; in our case, these arears are spread across three core areas that is of significant interest to local and international investors.
“If you look at the performance of banks in the year ended 2023 financial reports, you will see that all banks in naira terms have increased significantly their profitability as a result of the devaluation.
“But that isn’t the case with Access Bank, whose revaluation benefits come from the fact that it has significant international operations, because it is not a function of holding large foreign currency balances.
According to him, Access Bank, United Kingdom for example, is the largest and probably highest performing Sub-saharan African bank that has a license in the UK and making hundred of millions of naira of profit from the UK.
The chairman further said that this is not an accounting benefit that comes in the year 2023, but will continue, and with the operations of the bank in France, and across other European, Asia and Middle Eastern jurisdiction.
“We can see that the foreign currency benefit of profit in those locations are going to also accrued to the holding.
“The holding as an investor is also thinking of retail banking, which is like a utility. A retail banking with about 60 million customers is enough to sustain the bank anytime, irrespective of how volatile or uncertain the market is,” he said.
Access Holdings full-year results for the period ended Dec. 31, 2023, showcased an impressive 335 per cent increase in pre-tax profit to N729 billion from N167.68 billion in 2022.
The group also experienced an 87 per cent surge in gross earnings to N2.59 trillion from N1.39 trillion in 2022 and reported a remarkable 306 per cent growth in profit After Tax to N619.32 billion, from N152.20 billion posted in year 2022.
(NAN)
The Attorney-General of the Federation and Minister of Justice, Lateef Fagbemi, says he doesn’t have an account on X, formerly Twitter.
Fagbemi, in a statement on Saturday by Kamarudeen Ogundele, Special Assistant to the President on Communication and Publicity, Office of the AGF, advised members of the public not to engage with handles impersonating him.
“The Attorney General of the Federation and Minister of Justice, Prince Lateef Fagbemi SAN, has no Twitter handle.
“He has channels of communicating with Nigerians, but Twitter is not one of them, at least for now.
“The public should take notice of this and be well guided for future interactions,” the statement said.
As Workers’ Day approaches on May 1, 2024, the Nigeria Labour Congress (NLC) has set forth a list of seven critical demands from the Federal Government, highlighting the urgent need for a new minimum wage among other significant changes.
The announcement comes at a time of heightened anticipation, with expectations that President Bola Tinubu may announce the proposed new wage standards during the celebrations.
Key among the NLC’s demands is the establishment of state and local government police forces, aimed at addressing the escalating insecurity challenges across the nation.
Furthermore, the NLC insists that the new minimum wage, once ratified, must be uniformly implemented across all states, local governments, and the organized private sector.
This unified approach is deemed essential to ensure fairness and alleviate economic disparities across different regions and sectors.
This year’s Workers’ Day is particularly significant as it follows a tentative agreement by organized labour to set the new minimum wage at N615,000 per month.
This figure was determined prior to the recent increases in electricity tariffs by the Federal Government, which has added to the cost of living pressures faced by Nigerian workers.
An anonymous member of the Trade Union Congress’s National Executive Council shared with Punch that the wage figure was agreed upon after careful consideration of the current economic realities and the impact of governmental policy changes on the workforce.
The source said, “We are going to have another round of serious conversations with the government. Mind you, the tariff increase is also very good for us, because they (the government) did it when the new minimum wage process had not been concluded. So, it is going to be a good ground for us to ask for more money.”
The N30,000 subsisting minimum wage expired three days ago, as its five-year lifespan ended on April 18.
Former President Muhammad Buhari had signed the N30,000 Minimum Wage Act into law on April 18, 2019.
The tripartite committee, comprising representatives of organised private sector, organised labour and government, for a national minimum wage negotiation, follows the International Labour Organisation Convention 131.
In January, the president, through his Vice President, Kashim Shettima, had, on January 30, set up a 37-member panel at the council chamber of the State House in Abuja.
With its membership cutting across federal and state governments, the private sector, and organised labour, the panel is to recommend a new national minimum wage for the country.
In his opening address, Shettima urged members to ‘speedily’ arrive at a resolution and submit their reports early.
Chairing the panel is a former Head of the Civil Service of the Federation, Bukar Aji, who, at the inauguration ceremony, affirmed that its members would come up with a “fair, practical, implementable and sustainable” minimum wage.
The inauguration followed months of agitation from organised labour who expressed concerns over the FG’s failure to inaugurate the committee as promised during negotiations last October.
From the government’s side, members include the Minister of State for Labour and Employment, Nkeiruka Onyejeocha, representing the Minister of Labour and Employment; Minister of Finance and Coordinating Minister of the Economy, Wale Edun, who was represented by the ministry’s Permanent Secretary, Lydia Jafiya; the Minister of Budget Economic Planning, Atiku Bagudu; Head of the Civil Service of the Federation, Dr Yemi Esan; and Permanent Secretary, GSO/OSGF, Dr Nnamdi Mbaeri, amongst others.
Representing the Nigeria Governors Forum are Mohammed Bago of Niger State, representing the North Central; Senator Bala Mohammed, Governor of Bauchi State- representing the North East; Umar Dikko Radda of Katsina State, representing the North West; Prof Charles Soludo of Anambra State, representing the South East; Senator Ademola Adeleke of Osun State, from South West; and Otu Bassey of Cross River State, representing the South-South.
From the Nigeria Employers’ Consultative Association are the Director-General of NECA, Adewale-Smatt Oyerinde; Chuma Nwankwo; Thompson Akpabio; as well as members from the Nigeria Association of Chambers of Commerce, Industry, Mines and Agriculture— Michael Olawale-Cole (National President); Ahmed Rabiu (National Vice President), and Chief Humphrey Ngonadi, National Life President.
From organised labour are the NLC President, Joe Ajaero, and President of the TUC, Festus Osifo; his deputy, Tommy Etim Okon, among others.
Ajaero had announced N1m as the new minimum wage, owing to the rising inflation in the country which, according to him, had pushed many of the NLC’s members into poverty.
This led to several controversies, including experts saying that the suggested wage was unrealisable and unsustainable.
Speaking to Punch in Abuja, the NLC’s National Treasurer, Hakeem Ambali, listed seven demands the congress had made from the federal and state governments.
He said, “First, we expect that there should be improved labour government industrial relations, full implementation of minimum wage across the board for the federal, state, local government and private sector workers.
“Settlement of pension arrears, the establishment of compressed natural gas conversion centers in all senatorial districts, fixing of Port Harcourt and Kaduna refineries.
“Creation of state and local government police, granting of local government autonomy, granting of infrastructure support scheme to all local governments.”
Speaking further, Ambali noted that the Congress was still awaiting an invitation to the next meeting of the tripartite committee on minimum wage.
Meanwhile, a former two-term president of the TUC and one-time president of the Petroleum and Natural Gas Senior Staff Association of Nigeria, Peter Esele, had warned against the arbitrary fixing of a new minimum wage.
Speaking with Punch, Esele noted that the Federal Government and organised labour should agree on a new minimum wage before it is announced by the president on Workers’ Day to avoid another round of protests and strikes.
He said, “First, I will be surprised if organised labour says the Federal Government should announce the minimum wage. Probably the unions are hoping that by then, they will have concluded negotiations with the government. But for me, if the negotiation is not concluded by that time and the Federal Government goes ahead to announce the new national minimum wage, it is also possible that organised labour will dispute it. And what we are going to have is another round of protests and strikes.
“So my expectation for the labour unions is to put what they want on the table, while the Federal Government also puts theirs on the table. They should then both agree. But, suppose the Federal Government goes ahead and unilaterally announces a new national minimum wage, labour would oppose it, which, as I said, will lead to another round of industrial actions.
“It will be strange if the Federal Government announces the new minimum wage on Workers’ Day. However, I believe the governments are also smart enough not to make such a move unless they reach an informal agreement with the organised labour, and the Nigeria Employers’ Consultative Association.”
Esele also ruled out the possibility of problems arising if organised labour and the Federal Government fail to reach a concrete agreement on the new minimum wage by May Day.
He said, “The fact again remains that if both parties are still on the negotiation table by next month, it does not prevent the proposed new minimum wage from taking effect that month. What it simply implies is that whenever the agreement comes, the government will pay arrears.
“Even in the organised private sector, that is what we do. You can go on negotiation for even six months, but once an agreement is finally reached, and the last collective bargaining has expired, for whatever is agreed whether in six months or a year later, the arrears will be paid by the employers, which is the government in this case. So if the agreement is in place, it doesn’t matter whether they announce it on May 1 or not, the salary arrears must be paid.”
Meanwhile, the NLC is also demanding for the creation of state and local government police.
This demand is coming a few weeks after 16 state governors submitted reports expressing their support for establishing state police to the National Economic Council.
In the report, they also recommended changes to the constitution to allow for the creation of state police.
The reports were part of documentation received at the 140th NEC meeting presided over by Vice President Kashim Shettima at the Aso Rock Villa on Thursday, March 21.
Special Adviser to the Vice President on Media and Communications, Stanley Nkwocha, revealed that in a statement titled, ‘NEC endorses take-off of $617M i-DICE programme across states.’
According to the statement, NEC is still awaiting reports from 20 states. It expressed confidence that others would support it.
Disclosing discussions at the NEC meeting, Nkwocha said, the “Secretary to NEC (Nebeolisa Anako) made a presentation on submissions by states on the state policing initiative. Reports have been received by 16 states on the establishment of state police. 20 states have yet to send in their reports. All states across the country expressed their support for the establishment of state police.
“States made presentations in support of the creation of state police. They also recommended changes in the constitution, and the current policing structure to enable the operationalisation of the initiative.”
[NaijaNews]
- Speculators count losses as naira rises against dollar
- Naira will continue to appreciate against dollar – Shettima
The Naira appears to be up against a fresh threat from two crypto exchange platforms, just six weeks after the clamp down on Binance operations in Nigeria. The national currency had slumped badly in the forex market in the weeks preceding the clamp down on Binance, exchanging for as much as N1,950 in mid-February.
But soon afterwards, the Naira started to recover and was at a time N1,200 until the middle of last week when it lost some grounds to the dollar again.
Observers blamed its earlier misfortune on alleged manipulation of the market by Binance and are citing the new crypto exchange platforms BYBIT and BITGET as the cause of the latest slip.
But Vice President Kashim Shettima declared yesterday in Abuja that the Naira would continue its upward mobility against the dollar.
An investigation by The Nation also showed that many speculators who had invested in the dollar in the hope that the naira would go further down are now counting their losses.
On Monday last week, the Naira was N1,100 to a dollar at the black market. It depreciated to N1,148 by Tuesday and N1,169 on Friday. Observers believe this is on account of the operations of the peer to peer platforms and say government must step in to stop the naira slide.
Following the recent recovery of the naira, the global investment banking, securities and investment management firm Goldman Sachs Group, Inc. rated it one of the best performing currencies around the globe.
The firm had initially predicted a naira to dollar exchange rate of 1,200 by year-end 2024 but later said the Nigerian currency could exchange for 1000 to a dollar or even below provided the authorities are able to maintain the tempo of their economic reforms.
This bullish forecast, it said, followed capital inflows and interest rate adjustments, aiding the naira recovery from substantial losses incurred due to two devaluations since June, following the government’s relaxation of currency controls.
See more on the latest threat to the naira on Page 26.Naira’ll continue to appreciate against dollar, Shettima tells LCCI team
But Vice President Shettima is optimistic that the naira is on course to regain its status as a currency to reckon with.
“The naira went haywire and some people were celebrating. But inwardly, we were laughing at them because we knew that we have the leadership to reverse the trend,” the VP’s spokesman, Stanley Nkwocha, quoted him as telling his visitors.
He added: “Asiwaju knows the game, and truly the naira is gaining and the difference will drop further.”
Shettima said government’s decision to end fuel subsidy and unify the multiple exchange rate was necessary to address the challenges facing the country.
On efforts to boost the power sector and generate jobs for youths, he said: “We are determined to ensure that we generate jobs for our youths.
“Honestly, the President’s obsession is to live in a place of glory, to transform this country to a higher pedestal.
“He wants to leave a legacy, one of qualitative leadership, because the hope of the black man, the hope of Africa rests with Nigeria.
“I want to assure you that President Bola Ahmed Tinubu is one of you. He understands your ecosystem. In this government, you have an ally and a friend,” VP Shettima further noted.
The LCCI delegation presented recommendations to the VP, including the need for more innovations to address insecurity and promote credit access, stimulate investment and support entrepreneurship.
“This could include targeted interventions such as concessional lending facilities, loan guarantees and interest rate subsidies tailored to the needs of SMEs and key sectors of the economy like agriculture, manufacturing and power technology,” he added.
Other members of the LCCI on the delegation included Chief John Odeyemi, Chief Dr. Nike Akande, Asiwaju (Dr.) M. Olawale-Cole, Prince Funayo Okeowo, Gwueke Ajaifa, Sir Ladi Smith, Abimbola Ola, Olufemi Bakare, Ayotunde Coker, Tolulope Adeleke, Stephen Alangbo, Dr Chinyere Almona and Mrs Temitope Akintunde.
In a separate meeting, VP Shettima urged Nigerians to live peacefully among themselves and learn to accommodate each other.
He made this appeal when a delegation from the Association of National Accountants of Nigeria (ANAN) led by its President, Dr. James Neminebor, paid him a visit at the Presidential Villa, Abuja.
He emphasised the need for tolerance and togetherness, citing the example of Jos, which he described as a hospitable city with a diverse population.
He also asked the association to channel its request for land in Abuja through the Deputy Chief of Staff to the President, Office of the Vice President, to enable him to follow it up with the relevant authorities.
He said: “No matter how long the night is, it must give way to the light of the dawn. The crisis we have in Jos will soon be over.
“Jos is the most hospitable city in this country in terms of weather. If we can harness the potentials of Jos and the Plateau as a whole, I believe that we can transform this nation into a better place.
“In one way or the other, we should learn how to accommodate each other; we should learn how to embrace one another. My SSA Media, Stanley Nkwocha, is a Jos boy.
“Jos is ideal; Jos is not an ethnic identity. Some of the Hausas, the Fulanis, the Kanuris and the other ethnic groups living in Jos were born and bred in Jos. They don’t have any other place to call home.
“The beauty of the Jos experience is that we have the generality of Nigerians called Northern Igbos. He (Nkwocha) is Igbo; Owelle Rochas Anayo Okorocha is a Northern Igbo. This gentleman (Nkwocha) speaks Hausa more than I do. We also have Sir Emeka Offor and so many of them.
“I believe that we should learn to imbibe in Nigeria that culture of tolerance, of togetherness, because I will rather be a small fish in a big pawn than to be a big fish in a small pawn.
“We are a kaleidoscope of colours. The sooner we realise it, the better,” he said.
Earlier, ANAN President, Dr. Neminebor, told the VP that there was need to introduce a new value orientation where the issue of discipline will become a culture for Nigerians, even as the association recommended the setting up of Anti-corruption Recovery Investment and Management Commission to prevent the re-looting of recovered assets in the country.
Currency speculators count losses as naira rises against dollar
It was gathered that many speculators have lost money following the recent resurgence of the naira.
Such speculators had invested massively in the dollar in the hope that naira would depreciate further.
An investigation by our correspondent revealed that many of the currency hoarders who had envisaged that the value of the naira would depreciate further as low as N2,000 or more to $1 as anticipated in mid-February, have all being proven wrong as the nation’s legal tender has witnessed a rebound.
Some black market operators reportedly lured some of their patrons to dollarise their cash as the naira, in their calculation, would depreciate further.
However, the naira recorded a rebound even beyond the expectations of many, such that the gains of the naira have been the loss of many currency speculators who borrowed money to dollarise their assets.
Confirming this development, one of the BDC operators in Mushin, Lagos, who simply gave his name as Adamu, said: “Some BDC operators lured individuals to buy dollars when it was between N1700-N1800 to the dollar. But now that the naira has recorded a rebound, most of them are counting their losses, no doubt.
“It’s very painful that they had to stake a lot of their hard earned money to do currency speculation.”
Chukwudi Iwuchukwu, a financial lawyer, noted that some individuals who bought N10 million worth of dollars at the black market on February 24 suffered huge losses as the current value of their liquid asset is worth only half the sum.
“If you bought N10 million worth of dollars at the black market on February 24, it’s currently worth about N5 million,” he said.
Writing on his former X handle, A. Ayofe @abdullahayofel last Tuesday recounted the experience of one of the currency speculators who is now in debt as a result of his wrong investment decision.
“Someone I know borrowed N18 million from a money lender to buy $10,000 at N1,800 to $1 in February to pay back N19 million in May (three months) when the dollar gets to say N2,000 or more.
“Today, that N18 million is worth N11 million at N1,100 to $1. He is now looking for where to get extra N8 million to clear his debt as the three months is fast approaching.
“He used his bungalow as collateral. The problem now is that before May, the money could further reduce to N9 million at N900 to $1, making it impossible to retrieve his house.”
Dr. Aminu Gwadabe, the National President of Association of Bureaux de Change Operators of Nigeria (ABCON), said the otherwise awkward situation of the naira in the last few months has given way to optimism.
He said: “It is really exciting and interesting as we witnessed profound and significant naira rebounds faster than expected.
“It is a triumph of reality over behaviours that have no economic fundamentals.”
Gwadabe said all those who lost their investable funds during this period have to accept their fate.
“As regards the complaints of people borrowing money to speculate and make a margin, my take is that for any economic activity, there is reward and there is loss.
“So it is a gamble where you either win or lose. They should move on and next time be careful in jumping into what they cannot control.”
On the way forward, the ABCON boss appealed to the CBN and the fiscal authorities to proactively continue to induce confidence in the economy, strengthen stakeholders engagement, quick and fast responses including service delivery.
“Other hanging fruits include harnessing proceeds of diaspora remittances to inject liquidity through the BDCS. There should also be concerted efforts from all agencies of government to de-risk non-oil exports products to have a paradigm shift in our sources of foreign exchange to boost our external buffers.”
He added: “The excellent job of the security agencies in tackling corruption and money laundering should remain the cornerstone of this government. Above all, we must all as Nigerians have a change of mindset.”
[TheNation]