The inability of the Federal Government to secure and develop Nigeria’s border communities is contributing to the lingering security crisis bedeviling the nation, DAILY POST reports
Enquiries show that banditry, kidnapping, farmer-herder conflict and insurgency being experienced in the country are consequences of the fallout of the Libyan conflict and the influx of foreign mercenaries into the country.
This was not unconnected to why the former President Muhammadu Buhari in 2019 closed land borders in an attempt to stem the rising inflow of arms smuggling, foreign fighters, drug peddling, and other prohibited items into Nigeria.
In an effort to mitigate the influx of foreign mercenaries, the Buhari-led administration directed the then Comptroller General of the Nigeria Immigration Service, NIS, Muhammed Babandede, to protect the border against foreign invaders.
However, DAILY POST reports that despite the efforts of the Nigerian government, the country has continued to be infiltrated by criminal elements from neighbouring countries. Smuggling of firearms has also continued.
Concerned over the deteriorating security situation in the country, Nigeria’s former Head of State, General Yakubu Gowon, on February 12, identified the porous borders as a significant contributory factor to the country’s security crisis.
Underscoring the critical role of border security, Gowon emphasised the imperative of strengthening border security measures to prevent external threats, and deter the infiltration of criminal elements from neighboring countries.
He said, “Our borders are very porous. Take the North West to the North East, that is close to a thousand miles, some of the perpetrators of these heinous acts are from across the border.
“We must identify these elements and deal with them. I think we should have more security manpower on standby with adequate infrastructure to ensure that our borders are well guarded in case of any eventuality.”
Border as escape route for criminals
Study has shown that nearly all terrorists and other criminal elements think of one or the other form of escape before or immediately after perpetrating a criminal activity.
The current state of Nigerian borders across the country has been aiding and abetting the escape of criminals after committing heinous crimes.
DAILY POST recalls that in May 2022, the prime suspect in the murder of a 200-level student of Shehu Shagari College of Education, Deborah Samuel Yakubu, escaped to the Republic of Niger after committing the crime.
According to the police, the man whose face was captured in the viral video of Deborah’s cruel killing, was suspected to be a foreigner from the neighbouring country.
A security source, who preferred not to be mentioned, told DAILY POST on Saturday that the security of border communities has remained one of the major challenges of the Nigeria Police in the ongoing fight against insecurity in Nigeria.
He said, “One of the challenges of the police is this issue of lack of secured borders. Most times, when a terrorist is declared wanted, you won’t see them in Nigeria again.
“This is a big issue mostly in the Northern part of the country. For instance, when the notorious Benue gang leader, Terwase Akwaza, also known as Gana was declared wanted years before he was killed in 2020, he left the country.
“The terrorist and his gang operated within Benue and Taraba State. It was after he was killed that we learnt that he usually escapes to Cameroon whenever security operatives are after him.
“Himself and other members of the gang used to pass through Kurmi Local Government of Taraba State and escape to Cameroon where nobody knew them. So border security is very important in the ongoing fight against insurgency in the country.
“If you go to Kastina and some other states in the North, the same thing happens even till date. Suspects continue to escape through the border to Niger. Some of them even speak Nigerien languages so they will go there and behave like they are citizens of the country.
“Don’t forget also that the same thing happens when terrorists or any criminal elements are wanted in neighbouring countries, they usually find ways to escape to Nigeria too.”
A security expert, Ben Ijeoche also told DAILY POST on Saturday that the Federal Government “should declare war on the smuggling of firearms into the country”.
According to Ben, “the government claims that the borders are closed, yet the bandits and the Boko Haram members keep smuggling firearms into Nigeria. Are they using magic?
“I think the government should declare war on these border problems. Tightening the border will in many ways stem the growing security crisis”.
On the claim that the assailants causing mayhem in the country are not Nigerians, Ben said, “you can’t categorically say that the bandits and terrorists are not Nigerians but when you hear people saying that the criminals are foreigners, there are elements of truth there.
“Hundreds of these guys are being killed at least in a year but you hardly see anyone looking for his or her missing son. So, is it that they don’t have parents or relatives? You can’t rule out the fact we have foreign criminals living among us”.
Meanwhile, the Nigerian Immigration Service, told DAILY POST on Saturday that the “NIS is doing its best in securing our approved borders, while also policing the entire stretch of our land and coastal borders”.
When asked the challenges in the border security, Controller Tony Akuneme, Special Assistant to the Comptroller General on media told DAILY POST that “the issue is more challenging because we have our brothers on both sides of most border communities, so the contiguity as a result of similar cultures and religion makes it even more intriguing”.
According to Akuneme, “the NIS is deploying more men and materials towards the border areas to complement other security agencies all of which form the Joint Task Forces helping to secure the country.
“We are equally deploying technology now with the support of the Minister of Interior to ensure real time monitoring of activities along the border routes from our command and control room in Abuja.
“All we need is the support of Nigerians and more motivation from the federal government”.
• BDCs may resume FX transactions at official window tomorrow
The Central Bank of Nigeria (CBN) is evaluating a new set of guidelines to protect the financial system in a follow-up to the recent ban on certain cryptocurrencies in Nigeria, The Nation learnt yesterday in Abuja.
The apex bank may authorise Bureaux De Change Operators (BDCs) to resume forex transactions at the Nigerian Autonomous Foreign Exchange Market (NAFEM) – the official market tomorrow.
Sources at the CBN said the planned measure on cryptocurrencies was not only to protect investors but also to safeguard the overall financial stability of the country.
The sources acknowledged the potential of cryptocurrencies but stressed the need for appropriate regulations to ensure that their coming does not get out of control.
One of the sources cited manipulative tactics, especially “spoofing,” in the unregulated peer-to-peer (P2P) crypto market.
Spoofing involves placing large buy or sell orders on a platform without intending to go through with the deal. This creates a false impression of supply or demand thus manipulating others to trade at prices that benefit the spoofers.
This deceptive practice, often coupled with schemes like “pump-and-dump”, has caused substantial financial losses for unsuspecting investors and contributed to the devaluation of the Naira. It has also fueled investor anxiety, further exacerbating market volatility.
Sources said it was important to revise the regulatory framework to “effectively combat spoofing and other manipulative tactics.”
“Previous guidelines focused on limiting banking involvement with cryptocurrencies but left the P2P sector largely unsupervised, allowing unethical individuals to take advantage,” one of the sources recalled.
This regulatory gap, he said, “has allowed spoofing and similar practices to thrive, undermining the market’s integrity and eroding investor confidence.”
The source proposed implementing “stricter measures for P2P platforms, establishing robust systems to monitor transactions, and imposing clear penalties for spoofing activities.
“These actions would discourage such manipulative practices and create a safer trading environment,” he said.
Another official of the CBN, who also spoke to The Nation on condition of anonymity, said the apex bank would align with the position of the Presidency and that of the Securities and Exchange Commission (SEC).
President Bola Tinubu’s aide, Mr. Bayo Onanuga, had expressed concern over the potential impact of certain cryptocurrency platforms on Naira’s value in the foreign exchange market.
BDCs may resume FX transactions at official window Monday
President, Association of Bureaux De Change Operators of Nigeria (ABCON), Aminu Gwadabe, said yesterday that the CBN may authorise Bureaux De Change Operators (BDCs) to resume forex transactions at the Nigerian Autonomous Foreign Exchange Market (NAFEM) – the official market -tomorrow.
Gwadabe spoke after an emergency meeting with CBN officials in Abuja.
The apex bank is yet to issue a circular to that effect.
Meanwhile, the naira yesterday exchanged at N1,800 to dollar at the parallel market and N1,665 to dollar at the official market on Friday.
Gwadabe told The Nation that over 4,500 CBN-licenced BDCs would participate in the official trading transactions, where banks also trade as authorised dealers.
The BDCs are expected to fund their naira accounts with the CBN in readiness for the transaction.
“Our members will fund their accounts with the CBN on Monday (tomorrow) to enable them transact at the official window,” he said.
He said the apex bank warned the BDCs on the importance of rendition of returns and compliance with anti-money laundering regulations.
Gwadabe assured the CBN that BDCs would abide by policy on rendition of returns and continually provide detailed reports on how previous dollars sourced from the market were utilised.
The ABCON boss said the naira exchange rate against the dollar would crash going forward as more BDCs have access to dollars.
Gwadabe said although BDCs were happy with the resumption of dollar sales to operators, they were also requesting that the CBN should open more windows for them to operate, including having access to diaspora funds.
“We want more windows to be opened for BDCs instead of restricting BDCs to official market funds,” he said.
The CBN had on Friday proposed new regulations expected to significantly increase the minimum capital requirements for BDC operators in the country to N2 billion and N500 million for Tier 1 and Tier 2 licenses respectively.
This is a change from the previous requirement of N35 million for a general license.
This was contained in the Revised Regulatory and Supervisory Guidelines for Bureau De Change Operations in Nigeria- Exposure draft.
“The Guidelines revises the permissible activities, licensing requirements, corporate governance and Anti-Money Laundering/Combating the Financing of Terrorism (AML/CT) provisions for BDCs. It also sets out new record-keeping and reporting requirements, among others,” the publication said.
The updated regulations encompass numerous modifications to the guidelines governing BDC activities within the nation. Once approved, these updated guidelines will come into effect on a date determined by the CBN.
The apex bank had in June 2021, ended the sales of forex to BDCs, saying the parallel market has become a conduit for illicit forex flows and graft.
[TheNation]
Olisa Agbakoba, a former president of the Nigerian Bar Association (NBA), has outlined two steps President Bola Ahmed Tinubu must take urgently to avert anarchy in Nigeria.
Agbakoba, who noted that the frustration and anger in the country were palpable as a result of the worsening cost-of-living crisis, accused the government of not communicating hope to Nigerians.
He made the call in an exclusive interview with BusinessDay.
“It is clear that things are no longer at ease and there is a growing discontent in the country. We have had many challenges in Nigeria but the present discontent is remarkable as it concerns the growing inability of millions of Nigerians to cope with the completely unaffordable cost of living in the country. As the saying goes – a hungry man is an angry man,” he said.
The Maritime lawyer urged the Tinubu administration to make two quick interventions and solutions that may address what has the possibility to descend into an unrest.
“First, the government, as a matter of urgency, must stand on the bridge and communicate empathy and understanding, immediately.
“Second, government across Nigeria must devise emergency measures to address the hunger and lack being experienced by millions. Institutional support is of utmost importance,” he said.
Explaining the form the interventions should take, Agbakoba said: “Absolutely, free access for kids in school is vital. This must be followed by completely free health care and public transportation, massive cash transfers to the most needy is overdue. These are only stop gap measures.”
According to him, “Policy decisions that enable manufacturers produce and give value to the Naira is of utmost importance. Staccato of circulars coming out of the Central Bank of Nigeria (CBN), is largely unhelpful. Massive devolution of powers to the 36 states and 774 local governments is paramount and an emergency. The Federal Government cannot resolve the sufferings of 200 million Nigerians, by itself. People need to feel that the governments in Nigeria give empathy.”
He noted that “Lagos State has set an example, but more is needed. At the end of the day, measures that begin to resolve the tough choices in removal of petrol subsidy and floating the naira against the dollar is imperative. It is unclear how government proposes to support the new policy environment with strong action.
“Last but not the least is that government must not accept the prescriptions of multilateral institutions – especially the International Monetary Fund (IMF) and World Bank, that subsidies are not a viable and workable policy. It is indeed, a good policy. The United States (US) spends half of its budget on subsidies and benefits which we call palliatives.
“The United Kingdom (UK) subsidises health care by spending billions. Public schools are free in the UK. France has announced a major electricity subsidy. The president has to lead the process to engage Nigerians and give them renewed hope that, at the turn of the corner inroad lay opportunities.”
Agbakoba, who expressed fears about the future of Nigeria, noted that there was a rapidly growing revolt across the country owing to the high cost of living and called on the government to take action to address the discontent being expressed by the people.
“I agree with those saying the Presidency is not leading by example by moderating their lifestyles and cutting down on the cost of governance. It is very clear. The empathy of the government is not apparent.
“There is something that former US President, Franklin Roosevelt said in the Great Depression years of America in the 1930s. The thing to do about making people happy is not to give them a job, you first give them hope. So, the government ought to be communicating hope. They ought to be saying ‘we are going through this difficult period but there is light at the end of the tunnel.’ This government is not communicating that at all, which I think is a big error.”
He pointed out that the failure of government to give the citizens reassuring words was worsening the situation in the country.
“Failing to communicate hope makes Nigerians depressed. It is not that Nigerians cannot live with high food prices. They will always find ways to manage difficult situations. Even IBB (Babangida) said he doesn’t know why Nigeria has not collapsed,” he said.
“The problem we have is that the government is not communicating hope. If you communicate hope and say to a person who has malaria that ‘don’t worry, in two weeks’ time you will be well’, that will lift the person’s spirits because he has that hope.
“But right now, the government is not telling us that in two or three months, we are likely to be in a better state. That is the biggest problem that the government is not communicating properly.
“The second one is that the government is not even telling us how we can come out of this problem. That is why as we are beginning to see, there is a slow revolt around the country, pointing to a protest of costs of living. It is everywhere.”
[Businessday]
The recent surge in cement prices has reverberated throughout the real estate market, sparking an unexpected increase in property abandonment.
Cement, as a fundamental building material, has seen its prices skyrocket due to a combination of factors, including supply chain disruptions and heightened demand. This surge has placed considerable strain on both property developers and homeowners, leading to a worrying trend of abandoned properties.
For property developers, the spike in cement prices presents a formidable challenge. The increased construction costs force developers to grapple with the decision of either absorbing the additional expenses, risking reduced profits, or passing them onto consumers through higher property prices.
In regions already struggling with affordability issues, such cost escalations further compound the challenges of accessing homeownership, potentially dampening demand.
Homeowners, on the other hand, find themselves burdened with escalating maintenance and renovation costs as a result of the cement price surge. Many homeowners are now faced with the dilemma of whether to invest in costly repairs or abandon their properties altogether. For some, the financial strain of upkeep outweighs the perceived value of their homes, leading to a growing number of abandoned properties across various communities.
Last the years
Sunday PUNCH findings showed that the prices of cement ranged between N3,300 and N3,500 in Lagos and Ogun states in March 2021 but jumped to between N6,500 and N8,000 in both states as of the first week of February.
Dangote Cement’s Group Executive Director in charge of Strategy, Portfolio Development, and Capital Projects, Devakumar Edwin, had in 2021 attributed the high cost of cement in Nigeria to the global rise in demand for cement as a result of the COVID-19 crisis.
“Nigeria is no exception as a combination of monetary policy changes and low returns from the capital market has resulted in a significant increase in construction activity. To ensure that we meet local demands, we had to suspend exports from our recently inaugurated export terminals, thereby foregoing dollar earnings,” he said.
In 2022, the Block and Concrete Producers Association, Enugu State chapter, decried the continuous increase in the prices of cement and other materials used for block production.
The President of the association in the state, Igwe Ukaegbu, had lamented that the continuous rise in cement price was negatively affecting the production output of and income of members of the association, urging the Federal Government to intervene in the situation by granting more licences to industrialists to produce cement.
“The challenge we have is the cost of cement and even sand. Everything is now costly. We are not making sales as we used to; so, we are suffering. We are praying for the government to help us by bringing down the prices of cement and other materials.
“Before, one could sell 3,000 to 5,000 pieces of block in a month; but now, before you sell 1,000 pieces of block, it is very difficult. The cost of cement in Enugu now is N4,550 per bag. Some people are selling for N5,000.”
In 2023, the Cement Producers Association of Nigeria warned that the ongoing plan of the Federal Government to introduce concrete roads could raise the price of cement to N9,000 per bag from the current price of N5,000.
They also called on the current administration, in a statement, to permanently address the perennial cement price hike problem by facilitating larger participation in the cement industry, noting that Nigerians had no business buying cement for more than N5,600 per bag.
The statement read in part, “Our findings from various parts of the country show that cement sells for as high as N6,000 per bag in the rainy season. Our prediction is that it will sell for over N9,000 per bag in the dry season, especially with the pronouncement of the Minister of Works on cement technology and the marching order on housing by Mr. President if the government does not take proactive steps.
“While we commend the minister’s position on cement-made roads, we warn of the dire consequences if the supply end is not properly addressed. It would amount to a dereliction of duty not to intervene, and the time is now.
“To do otherwise is to continue in a worsening pipe dream that prices would suddenly drop on this essential input that will continue to drain the purse of Nigerians, render them homeless, encourage chaos between demand and supply, and worsen the infrastructure deficit it sets out to cure, and lead to an unprecedented price hike.”
However, in 2024, the hopes for reduced construction expenses for aspiring homeowners might turn into a distressing reality, considering the recent surge in cement prices initiated by producers last week.
This uptick has already set off a chain reaction in the market, leading to over a 100 per cent increase in prices within a short time. As a result, some property developers have ceased their construction projects, and individuals constructing their residences are pursuing variations in their contracts.
Findings by our correspondent showed that operators within the Cement Manufacturers Association of Nigeria increased the prices of the product. Consequently, retail prices increased from N7,000 to N9,500, and N13,000 nationwide as of Wednesday, February 21, 2024.
Developers groan
A bricklayer, Asumo Tyler, told Sunday PUNCH that he was shocked when he realised that he had to pay N6,500 or N7,000, depending on the area, for the same bag of cement he bought at N5,300 the previous week, a development he said had halted his hope of owning a home.
He said, “I am currently building my house. I had to stop building because of this increase, I was initially thinking the price would come down, till the shock I received upon purchase last week.”
Similarly, the Chief Executive Officer of Magnificent Choice Services Project and Engineering Ltd, Jeremiah Akinsele, said his firm had to stop all the projects it was working on presently, renegotiating terms with the clients involved.
He said, “It has been difficult as we had to stop all works for renegotiation purposes, all building materials gone up. We bought cement at N7,300 on Wednesday, February 7, in Sagamu, Ogun State. The confusing part is that most of the components of cement are sourced locally; I do not know why the impact of the dollar is so huge on the increase.
“As the prices of construction materials soar, exemplified by the surge in iron prices from N500,000 to N800,000, there is a looming risk of projects being abandoned. This is especially troubling as we continue striving to bridge the housing deficit gap.”
In an exclusive interview with our correspondent, the President, African Real Estate Society, Kunle Awolaja, said the increase would bring up the cost of construction.
He said, “Once construction goes up, it is going to impact rents and property developments in the market. However, the way forward is once the foreign exchange issue comes down, we go for local raw materials.
“This is where the issue comes in. What are the local raw materials we have? Are we going to work with clay, and can we have mass production of these local materials? For now, the answer would be no. We should work with what we have.”
Also, the Managing Director of Fame Oyster & Co. Nigeria, Femi Oyedele, said since cement constituted about 50 per cent of the constituents of building materials and building elements in Nigeria, the increase would lead to an abandonment of properties.
He said, “Blocks are for walling, plastering and rendering of walls, screeding of floors, fixing of tiles, fixing of sanitary wares, etc. The increase in cement from N5,500 to N7,000 will affect the rate of construction starts. A lot of prospective property developers will hesitate to start construction and this will also affect sales of building materials. In the long run, it will affect the rental value of properties.
“The uptick in cement prices is anticipated to lead to a rise in abandoned properties, as numerous individuals already amid construction projects may opt to cease their endeavors. Furthermore, low-income earners may hesitate to embark on construction of their homes given the current economic conditions.”
Inflation
However, according to findings by Sunday PUNCH, cement companies, including BUA which had previously announced a reduction in ex-factory cement price to N3,500 per bag in October, reversed course and increased their rates due to a surge in production costs.
A cement dealer in Ogba, Lagos, Segun Abiola, pointed out that the increasing transport expenses and the devaluation of the naira were key factors behind the surge in prices. He highlighted the limited authority that dealers possessed in determining pricing.
Meanwhile, a cement vendor in the Iyana-Ipaja area of Lagos, Moshood Alimi, who revealed that a bag of Dangote cement was sold at N6,800 and Lafarge at N6,700, lamented his inability to stock cement due to the exorbitant cost of transporting them to Lagos, which he said would inflate the price per bag to as high as N7,500.
A building contractor, Seun Afolabi, while voicing his concerns over the detrimental impact of the cement price surge on the construction sector, highlighted the plight of aspiring homeowners who are now finding it increasingly challenging to afford the higher prices.
The story is not different from the experience of a developer, Opemipo Awoyeye, in the Sagamu area of Ogun, who stated that as of Monday, February 12, cement prices had skyrocketed to N8,000 per bag, signifying a substantial surge in cost.
Meanwhile, another developer based in the Obalende region of Lagos, informed Sunday PUNCH that cement prices fluctuated between N9,000 and N9,500, depending on the location, as of Friday, February 16, 2024.
Housing deficit remains
The amount required to fund the housing sector in Nigeria and bridge the estimated 28 million housing deficit across the country is N21tn, the Federal Government said through the Bank of Industry.
In a report on Nigeria’s housing sector put together by BOI, the bank explained that “with a growing urban population, increasing construction costs, and declining household income, access to affordable housing is becoming more difficult for millions of citizens.”
The report, titled, “Institutional turnaround for the next level,” and obtained by our correspondent from the Federal Mortgage Bank of Nigeria, stated that while N470bn was what the Federal Government budgeted for housing in 2022, the sector would require trillions of naira to close Nigeria’s housing gap.
It stated that of the estimated 206 million persons in Nigeria, about 95.1 million lived below the poverty line, and as such it was difficult for them to have access to their own homes.
Under the section on Nigerian Housing Market in the report, the bank said, “N21trn (is the) amount required to fund the housing sector,” adding that “28 million units (is the estimated) housing deficit.”
Operators react
Following the recent uptick in cement prices nationwide, the President of the Real Estate Developers’ Association of Nigeria, Dr Aliyu Wamakko, appealed to the President of the Federal Republic of Nigeria, Bola Tinubu, to urgently convene discussions with cement manufacturers, adding that the goal was to mitigate further hardships for Nigerians.
Wamakko, speaking in Abuja on Wednesday, expressed deep concern over the intensified economic strain, highlighting that the price hike implemented by manufacturers in early January was unfavorable for both Nigerians and real estate developers.
“The price of ready-mix concrete will also be increased while the cost of in-situ production of concrete will rise significantly. Such an increment, if allowed to take place, will worsen the economic situation of the nation,” he said.
The DEDAN president said regular construction creates multiple employment opportunities which help to reduce the poverty index of the country as such the hike in the price of cement could come with undesirable consequences.
“The resultant effects of unemployment are banditry, kidnapping, and armed robbery. The federal government should also remember that we have a 28 million housing deficit in Nigeria. Cement is an essential ingredient in the production of buildings,” Wamakko added.
In an exclusive interview with Sunday PUNCH, the Executive Secretary of the Association of Housing Corporations of Nigeria, Toye Eniola, voiced apprehensions about the ongoing surge in cement prices, warning that it could spell the end of affordable housing prospects.
He said, “Why is it that it is the price of cement that is going up when about 90 per cent of building materials are available locally? But then the argument is that the cost of running the business has gone up, and we know that the economy is driven by the fluctuating forex which is affecting the operation.
“If those running the building material business have to use diesel it would be expensive because a litre of diesel is about N1,000. Hence, we cannot blame the manufacturers, but the policies in place.”
He, therefore, called on stakeholders to look inward and focus on local building materials.
“In the olden days, people made use of mortal bricks to build, and we still have interlocking blocks, among others, which make use of five per cent of cement. It is high time we began to embrace these technologies to build houses because it is the only thing that can instill hope in people.”
No justification for price increase – Minister
In a bid to stem the rising cost of cement and other building materials and enhance the delivery of affordable housing in Nigeria, the Minister of Housing and Urban Development, Ahmed Dangiwa, recently called for a meeting with manufacturers of cement and other building materials in the country.
He also queried the recurring disproportionate increase in the price of cement in particular, especially considering that cement producers in the country sourced virtually all their raw materials locally.
Dangiwa said, “It is disheartening to see how much Nigerians have to pay for essential building commodities like cement, with the prices rising almost daily. I don’t understand the reason for this increase, and it is not acceptable.
“I am going to be meeting with these manufacturers soon so that they can explain to Nigerians their reasons for such incessant hikes. I know that cement producers source their raw materials in Nigeria; (these include) limestone, clay, silica sand, gypsum, iron ore, and the rest. These minerals abound in Nigeria and these manufacturers get them here, so there is no justification to try and blame it all on the rise of the dollar.”
He further assured that the government would create a conducive environment for the private sector to thrive, including through ensuring building materials are affordable and accessible.
It was earlier reported that cement manufacturers had agreed to sell a 50kg bag of cement at a retail price of between N7,000 and N8,000, depending on location nationwide, in their meeting with the Federal Government.
However, developers in the built environment rejected the price, asserting that the price negotiation reached was for the rich.
In an interview with our correspondent, the Executive Secretary of the Association of Housing Corporation in Nigeria, Toye Eniola, condemned the negotiation.
He said, “What is fair in N7,000 to N8,000, when BUA promised us a slash from over N5,500 to N3,500 and now they are negotiating N8,000? Where are we heading for?
“That negotiation is for the rich. What they are saying is with that price, housing is going not to be for the poor. With that price, there is no poor man that would be able to afford it and it would keep widening the deficit gap.
“The way forward is to go back to the basics, this is the time to embrace local building materials. For instance, we have interlocking blocks and we require about five per cent of cement for this which would save us a lot of money.
“Nigerian Building and Road Research Institute has done a lot of research on alternative building materials that can be used in Nigeria. For instance, they have researched the use of bamboo as an alternative to the iron rod.”
[Punch]
A ship carrying 30,000 liters of suspected Nigerian crude oil theft has been intercepted as a result of a cooperative operation between the Nigerian and Cameroonian naval forces.
Commodore Rotimi Oderemi, the Commander of Nigeria Navy Ship, NNS Victory, disclosed this on Saturday during the ship’s inspection at Ibaka in the Mbo Local Government Area of Akwa Ibom State.
Oderemi who spoke with reporters said the MV Jasmine was discovered in Nigerian national waters from reliable information and cooperation with the Eastern Naval Command Center.
He claimed that NNS Ekulu, a patrol boat in the Nigerian Navy, was assigned the task of intercepting the suspected ship and questioning its crew.
“Upon noticing NNS Ekulu, the suspected vessel proceeded to the international waters between Nigeria and Cameroon, just as NNS Ekulu was in its hot pursuit.
“Resulting from our collaboration and with the support of the Cameroonian Navy, the vessel was intercepted and brought to Ibaka with eight Nigerians on board.
“Thirty thousand litres of crude oil is a huge volume. It can fetch N40 million at the international crude oil market,’’ he said.
‘Tinubu going to Qatar on state visit’ — FG reacts to leaked memo on rejection of investment forum
AdminThe federal government says President Bola Tinubu will travel to Qatar for a state visit on March 2.
The government announced the trip on Saturday following a leaked memo showing that the Arab nation declined a proposed investment forum on the sidelines of the president’s visit.
TheCable understands that the business and investment forum was proposed by the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA).
In the memo dated February 22 and addressed to the ministry of foreign affairs, the embassy of Qatar in Abuja had said there is no agreement between the Arabian country and Nigeria on investment promotion and protection.
The embassy said Mohammed Bin Hamad Al-Thani, the country’s minister of commerce and industry, would be “carrying out official missions outside the country during the upcoming visit period”.
“The Embassy has the honour to inform that the Ministry of Commerce and Industry in Qatar apologizes that it will not be able to hold a Business and Investment Forum as proposed by the Nigerian side due to the following reasons: Unfortunately, there is no any agreement signed between the State of Qatar and the Federal Republic of Nigeria on Investment Promotion and Protection,” the letter reads.
“His Excellency the Minister of Commerce and Industry will be carrying out official missions outside the country during the upcoming visit period.
“The State of Qatar will be hosting a Web Summit during the suggested period, and the State’s authorities will be preoccupied with this event.”
‘WE WON’T COMMENT ON LEAKS’
In a statement, Francisca Omayuli, spokesperson for the ministry of foreign affairs, confirmed Tinubu’s proposed visit to Qatar.
“The Federal Republic of Nigeria and the State of Qatar have a long history of friendship and close bilateral relations. The forthcoming visit to Doha by HE President Tinubu will help build on this important relationship,” the statement reads.
Omayuli said the ministry is “aware of the circulation in the media of diplomatic correspondence and wishes to confirm that it will not comment on leaks”.
In September 2022, the Middle East country rejected the planned visit of former President Muhammadu Buhari over the country’s preparation for the 2022 World Cup.
The government of Qatar had asked the federal government to propose a new date for the visit, preferably “during the first quarter of the year 2023”.
[TheCable]
President Bola Tinubu has called on the leaders of the Economic Community of West African States (ECOWAS) to engage in constructive dialogue towards finding sustainable solutions to the challenges facing the sub-region.
Speaking at the opening of the Extraordinary summit of ECOWAS on the political, peace and security situation in the sub-region, taking place at the State House conference hall, Abuja, President Tinubu noted that it is only unity on the part of the leaders that can resolve the existing political challenges.
He therefore tasked the leaders to approach the issues, exercise prudent judgement, and work collectively towards finding enduring solutions to the contending issues.
Tinubu also called on Niger, Burkina Faso and Mali that recently announced their desire to pull out of the regional body to reconsider the decision in the interest of their people.
The President said he was burdened by the weight of the challenges facing the sub-region but was buoyed by the collective resolve to find sustainable solutions, adding that the outcome of the meeting would by guided by the memorandum to be presented by the chairman of ECOWAS Commission who would give the leaders and update on the situation in Niger, Burkina Faso and Mali
He also commended the president of Senegal, Macky Sall for agreeing to step down at the end of his current tenure in office.
He said: “We are gathered here to address pressing developments in our sub-region surrounding the peace and security as well as the political situations in the Republics of Niger, Burkina Faso, Guinea, and Mali.
“Permit me to say that the complexities of the issues at hand necessitate a comprehensive and collaborative approach. Accordingly, it is incumbent upon us to engage in constructive dialogue, exercise prudent judgement, and work collectively towards finding enduring solutions that will lead to sustainable peace and security as well as political stability in our region.
“The gravity of our responsibilities as leaders in these challenging times cannot be overstated and it is through our concerted efforts and a deep sense of history that we can address these challenges in the spirit of shared vision, solidarity and collective responsibilities.”
Tinubu said the extraordinary summit was convened at a critical time that demands focused attention on regional issues, adding that, “our decisions must be guided by our commitment to safeguarding the constitutional order, upholding democratic principles, and promoting the social and economic well-being of the citizens of the aforementioned countries.
“Furthermore, we will deliberate on the announced withdrawal from ECOWAS by the Republics of Burkina Faso, Mali and Niger. In the spirit of collective security and African solidarity, we realize that the stability of these nations is intricately linked to the overall peace and security of West Africa. As such, it is pertinent that we engage in constructive deliberations to examine the actions taken by these countries and ensure that the citizens are not denied the benefits derived from our regional integration initiatives.
“In our ensuing discussions, we must put the plight of people, the ordinary citizens at the centre of our decisions.”
The President noted that even though the current challenges were daunting, it “present an opportunity for ECOWAS to reaffirm its commitment to the vision of our founding fathers and the principles underpinning our commitment to peace, security, and regional integration.
“We must stand united in our resolve to promote economic integration, democracy, and human rights, with a view to fostering sustainable development across all our member states.
“Times like we currently face in our sub region demand that we take difficult but courageous decisions that put the plight of our people at the centre of our deliberations. Democracy is nothing more than the political framework and the path to addressing the basic needs and aspirations of the people. This is why we must re-examine our current approach to the quest for constitutional order in four of our Member States.
“I therefore urge them to re-consider the decision of the three of them to exit their home and not to perceive our organization as the enemy. I am confident that through our collective efforts and determination, we will navigate the challenges before us and chart a course towards a more peaceful, secure, and prosperous West Africa.”
In the Idimu area of Lagos State, the price of cement continues to soar, selling between N10,000 and N11,000 per bag, despite an agreement reached with manufacturers to cap the price at N7,000.
This discrepancy has left many retailers and buyers frustrated, questioning the effectiveness of the agreement.
A local retailer, known as Alhaja, expressed skepticism about the reported agreement, labeling the news that cement should sell for N7,000 as merely a hoax.
She highlighted a significant issue during the negotiation period with the Federal Government, where Dangote Cement, a major manufacturer, allegedly blocked all payment portals. By the time these portals were reopened, prices had already surged again.
This situation has raised concerns among residents and stakeholders in the construction industry, who are feeling the impact of the inflated prices on building projects.
The failure to adhere to the agreed-upon price cap not only strains the wallets of individuals looking to buy cement for personal or business use but also poses broader implications for the construction sector and housing market in Lagos and potentially beyond.
The ongoing discrepancy calls for a closer examination of the factors contributing to the persistent high prices and the mechanisms in place to enforce agreements made between the government and manufacturers.
As the situation unfolds, those affected await concrete actions that will lead to a resolution and the stabilization of cement prices at the agreed level.
She said: “Even BUA which was selling for N3,500 was the first to hike prices. In fact, the Dangote payment portal was blocked last week, only for them to reopen it and the price was increased by another N400. All the noise of N7,000 is just in the media, it’s not real.
“But we pray and hope it is effected soon enough because this price hike is really slowing down business.”
Another outlet did not have any stock on the ground. The owner, who pleaded for anonymity, corroborated Alhaja.
He said, “At this point, I don’t know what else to do. Cement is off-limit for now because I don’t even know how to restock. The N7,000 price being bandied in the news is unreal. The price was increased by N400 after manufacturers met with the government. We just hope things return to normal as soon as possible.”
Former Speaker of the House of Representatives, Yakubu Dogara, has urged Nigerians, particularly those holding political offices, not to set the country on fire in spite of the current challenges facing the people.
Dogara made this charge during the burial program of his late mother, Mama Saratu Yakubu Tukur held in his country home, Gwarangah, Bogoro LGA of Bauchi State on Saturday.
According to him, “We have no any other country to run to if we set Nigeria on fire. It is true there is anger across the country because of hunger, but we must tread with caution.”
The former Speaker stressed that the situation is affecting everybody irrespective of ethno-religious differences and so, the situation is not beyond redemption
“The problem is not one man’s problem, it is beyond one man, we must all join hands to solve the problem, each one of us has a role to play.
“If we set the country on fire, we will not be able to do anything, we will not even be here in this church for the burial program. I am appealing for caution in the way we react to the situation.
“Let us take an exception to what is happening in other countries, we must do things that will make the situation better. Things are going to get better very soon,” Dogara said.
He then called on Nigerians to engage in prayers for divine intervention in the situation, saying that there is nothing God cannot do to turn the situation around.
The Minister of Finance and Coordinating Minister for the Economy, Wale Edun, has lamented that only about 5% of Nigerians have more than N500,000 in their bank accounts.
Edun said it is not acceptable that the wealth of the nation is concentrated in the hands of a few while the majority languish in poverty.
Speaking during an interview with Channels TV, the Minister said the administration of President Bola Tinubu is working hard to address this imbalance in which just a few elites have the advantage over the majority of others.
Edun stressed that part of the moves to correct the imbalance, which has been on for about eight years, is the various economic reforms introduced by the current administration.
The minister said that the reforms are corrective measures to mop up the liquidity in the economy that is not tied to production or supply of goods and services, adding that these imbalances only benefit a few people in the economy.
“There has been an effort to ensure that the people’s money is not in the hands of a few. And on that point, I must emphasize that when we talk about the last eight years before Mr. President came to power, there was this liquidity built up.
“The Issue was that the funds were going to a few. Only about 5% of the population have bank accounts that have more than half a million in them. So, the majority was left out for eight years. They are on the sidelines while a small minority enjoyed.
“That is the major correction being made by Mr. President now. That is the major microeconomic reforms that have put in place.
“So therefore, government revenue that was outside the federal government consolidated revenue funds have been brought back to the government funds,” Edun said.
More...
The Ondo State Governor, Lucky Aiyedatiwa, has declared that he will contest in the forthcoming state gubernatorial election, scheduled for November 16, 2024.
Naija News reports that Aiyedatiwa made this known on Friday while featuring on TVC news, shortly after the remains of the immediate Governor, Oluwarotimi Akeredolu, was buried.
Recall that Aiyedatiwa was, on December 27, 2023, sworn in as governor of the state following the death of Akeredolu after a prolonged illness.
The remains of the former governor was interred at his country home in Owo, in the Owo council area of the state, on Friday amidst tears and political associates who had attended the event.
Speaking after the burial, Aiyedatiwa said he would run for the governorship election, stressing that nobody wants to be governor for one year.
He said, “I will be running. I’m already a sitting governor and let me say this, nobody wants to be governor for one year. Give me what the Constitution allows me to do.
“At least, let me also have the chance of running for one more time.”
Ministries, Departments and Agencies, (MDAs) of government in the state working with Development Partners should synergise with the State Economic Team towards harmonising programmes, projects and activities for the benefit of people across the state.
Ogun State Commissioner for Budget and Planning, Mr. Olaolu Olabimtan, who stated this during a Stakeholders Engagement on Development Partners, at the Conference Room of the Ministry in Abeokuta, added that there was need for the MDAs to cultivate an open channel of communication with the Department of Development Partners Coordination under his Ministry for proper and effective coordination of activities.
Mr. Olabimtan explained that the meeting was deliberate and targeted at addressing noticeable gaps affecting the implementation of services to the people, ensure that political heads and accounting officers were abreast of project objectives, towards actualising the partnership goals.
He urged participants to ensure that outlined programmes and projects of their respective agencies were incorporated into the Medium Term Sectoral Strategy (MTSS) and yearly budget, restating the need for agencies to have a clear understanding of the prospect list of their MDAs.
The Commissioner said they should endeavour to make projects initiated conform with laid down guidelines, stating that some of the challenges identified including, underreporting and duplication of efforts, uncaptured partners, poor budget performance, lack of alignment, among others would be addressed for effective service delivery.
Contributing, the Permanent Secretary in the Ministry, Mrs. Olufunmilayo Dada, said the meeting was to synergise with the heads of MDAs in charting a course for a successful outcome of goals, highlighting the benefits of the partnership to include, improved governance, provision of technical assistance and financial support, diversification of resources, social impact and so on.
Also speaking, Senior Special Adviser to the Governor on Development Partner Coordination, Mr. Lanre Adenekan described the meeting as a mechanism for effective coordination of development partners' projects across the state, assuring that the projects would have a direct impact on the people.
Earlier, the Director, Development Partners Coordination, Mrs. Funmilayo Tade revealed that the department coordinates project information and communication, monitors how Development Partners support is being utilised by the government while ensuring efficient and effective utilisation of existing support, among others.
The Ogun State Commissioner for Budget and Planning, Mr. Olaolu Olabimtan addressing Political heads and Accounting Officers of Ministries, Departments and Agencies (MDA's) at a Stakeholders' engagement meeting on Development Partners, held at the Conference Room of the Ministry in Abeokuta.
The Zone ‘B” Federal Operations Unit of the Nigeria Customs Service (NCS) has intercepted two Niger Republic-bound trucks loaded with grains, a PREMIUM TIMES report said.
In the last few days, officials of the NCS intercepted grains being taken to Niger Republic in Katsina, Sokoto, Kano and Jigawa states.
PREMIUM TIMES said it gathered through a service intelligence report that the two trucks were intercepted on Thursday around 1pm by Kebbi and Kangiwa/Argungu Natsini “FOU roving team.”
Grains in the two trucks include maize, millet and beans, according to the report.
“Two canters loaded with grains, comprises maize, millet and beans going to Niger Republic were also intercepted. Both vehicles were taken to Customs House in Kebbi,” part of the report reads.
According to another memo seen by PREMIUM TIMES, the FOU Zone ‘B’ Kaduna has deployed more officers in its area of responsibility to ensure there is no movement of goods or people in and out of the country.
The memo, prepared by S. M. Mansur, the Unit’s staff officer, was approved by Wasa Chedi, the zonal comptroller.
“All borders in our Area of Responsibility under Zone ‘B’ remained closed pending federal government’s directives. All officers in charge should ensure that nothing goes out or comes in, including grains of all sorts,” the memo read.
Mansur warned officers in charge of units to ensure compliance as “any breach of this instruction, the O/C will be held responsible.”
Back story
Following the 2023 coup that ousted Mohamed Bazoum as president of Niger Republic, Nigeria shut its land borders with the country and cut its electricity supply as part of sanctions against the military junta.
Security has been intensified on the borders and around border communities, especially in the North where Nigeria shares expansive borders with Niger Republic, covering Kebbi, Sokoto, Zamfara, Katsina, Jigawa, Yobe and Borno states.
In recent months, Nigerians have been grappling with inflation and economic hardship being exacerbated by the removal of fuel subsidy and floating of the naira last year.
The prices of foodstuffs and other commodities have been soaring, weakening the already fragile economy of the country.
The Customs Service said it intended to intensify surveillance to stop grains from being taken out of the country, which it said was aggravating the hard economic situation.
About 15 trucks of grain were intercepted in Sokoto State on Sunday, while 50 more were intercepted in Zamfara State on Monday and four intercepted in Kano State, also on Sunday.
Customs sells 25kg rice at N10,000
Meanwhile, the Nigeria Customs Service has commenced the sale of seized bags of rice to the public at the cost of N10,000 per 25kg.
The comptroller-general of the NCS, Mr Adewale Adeniyi, said the process for the sale of the food items had been done, such that a form with all the details of the applicant, including the National Identification Number (NIN), would be submitted and a bar code generated for the collection of the commodity.
Adeniyi stated that 10 registration points would be opened for members of the public, with a view to easing the purchase process.
He said the move to sell the seized items was to crash the price of food items and shore up the value of the naira.
He warned against the resale of purchased rice, adding that anybody caught reselling will be arrested and possibly prosecuted.
Daily Trust Saturday reports that thousands of people stormed one of the facilities belonging to the Service on Harvey Road at the Yaba area of Lagos to buy bags of rice.
Some of the beneficiaries who spoke to our correspondent thanked the Service for coming to their aid at a time they felt all hopes had been lost.
A petty trader who identified herself as Shade Tajudeen, said the price of rice in the market had made the items far from the reach of the downtrodden masses.
Another beneficiary, Chika Maduka, said the rice would go a long way in easing the suffering and hardship brought on common Nigerians as a result of food scarcity.
CBN slashes Customs duty rate to N1,488
In an action that appeared to have resulted from the call in a Daily Trust editorial of Thursday, 22nd February, 2024, the Central Bank of Nigeria (CBN), in the official foreign exchange window on Friday, slashed the exchange rate for computing Customs duties to N1,488.
The Customs duty rate was reviewed downwards from N1, 605.82/$ to N1, 488.896/$ yesterday, according to information on the official trade portal of the Nigeria Customs Service. That cut rrepresented a reduction of about 7.3 per cent.
Still, on November 14, 2023, the rate was adjusted to N783.174/$, and in December, it was adjusted to N951.941/$. On February 2, it was moved to N1,356.883/$ and on February 3, it was moved to N1,413.62/$. Later this month, it was adjusted to N1,417.635/$ then N1,493.23/$ and ultimately to N1604.08.
Yesterday’s cut in the rate comes as some sort of relief to importers who have been battling high duty rates, which results in higher prices of items when they reach their final consumers.
[DailyTrust]
Residents of the Federal Capital Territory, FCT, Abuja, are helpless over the soaring cost of rent in the nation’s capital.
This is as some house owners in the capital city blame the high cost of building materials for the troubling situation.
Some landlords complained that while the cost of erecting a new building in Abuja has gone over 200 percent from what it used to be some months ago, maintaining the old ones is no less a task.
According to them, materials used for the construction, development, and maintenance of buildings were no longer affordable in Nigeria.
A building goes through maintenance throughout its lifespan and some landlords say it is no longer an easy task.
A check by DAILY POST at different markets where building materials are sold within Abuja, showed that major materials such as, sand, cement, granite, concrete, wood, Plaster of Paris, POP, glass, paint and plumbing materials are now beyond the reach of the ordinary man.
A 50kg bag of cement, for instance, is now sold for N15, 000 and above which is more than three times what it was sold just some weeks back.
Nigerian infrastructure development and economic growth are significantly influenced by the building and construction industry.
Cement is an essential ingredient in the construction of buildings, but DAILY POST understands that many buildings under construction have been abandoned by the owners due to the high cost of this material which now ranges from N10,000 to N15,000 per 50kg, depending on the product.
Flexible binding wires in Nigeria now sell between N8000 to N12,000 while a 10 kg roll costs between N85,500 to N125,000.
A bundle of solid binding wire ranges from N12,500 to N13,800, and a 10kg coil costs between N69,000 and N72,000.
For tiles, 30 × 30 ranges from N12,500 to N13,500; 40 x 40 ranges from N12,400 to N13,800; 30 x 60 ranges from N12,700 to N13,000 while 60 × 60 ranges from N14,700 to N16,000.
Vitrified tiles within the range of 300×300 pack costs N9000-10,000 while 450×450 pack costs N10,100-12, 500
So are the prices of Polished Porcelain, Steel Rod, Concrete or Granite, Sands
Building Blocks, Laterite, Roofing Sheets, Woods In Nigeria, Woods, windows, Doors, etc, all on the high side.
Mr Jov Richard, who owns a 16-bedroom apartment at Gudu District of the FCT, told DAILY POST that the question of why rent is skyrocketing should not come into play since everyone is already aware of the economic situation in the country.
According to Jov, a Tiv native, “This question shouldn’t be asked at all. Who is not seeing what is happening? How much do you buy a bag of cement today? How much was the nails when I built my house? Do you know how much a block is sold today?
“Please go to the nearest block industry and ask. Have you tried to buy tiles or sand? I wanted to start developing my piece of land in Kuje but had to stop immediately when I heard the current price of cement. Anybody you see building a house now is a politician. So, this question has answered itself.”
Also speaking to DAILY POST on the subject matter, National President of Real Estate Developers Association of Nigeria, REDAN, Mr. Aliyu Wamakko, blamed the high cost of building materials for the sky-rocking rent in Abuja.
He said, “You see, the high rise in price of everything, including commodities and rent is what we are experiencing now because of the economic downturn. You need to understand that. How can you now sell a bag of cement for N22,000 and expect an affordable rent? So, it is something you cannot even comprehend.
“The high rise of building materials’ price is the cause of the situation. Do you know that some house rents are being paid in dollars? And how much is a dollar to naira now? The exchange rate is what is now adding another problem to the rent issue. Some of the apartments you see are paid in dollars. And the forex is fluctuating to a terrible stage.
“So these are some of the reasons the house rent goes up. And to add to that, there is a lot of house deficit in the country which we feel this government should do something to ameliorate that issue.
“You could remember we have insurgency, banditry and natural disaster like the floods and all these are issues that encourage the house rent to move up.
“Also, these issues are connected to the subsidy removal and it is unfortunate that the government did not prepare well before taking the decision.
“Look at the salary of the workers, N30,000 (minimum wage). How much are they selling a bag of rice? So you should understand. You have house rent to pay, you have feeding, transport, school fees for your children and you need to cloth yourself. How do you think it is possible?
“I call on you people to ask the country, both Christians and Muslims to keep praying for the stability of our country. That is the only way out. For now, nobody can tell you ‘this is the way out.”
The Federal Capital Territory Administration, FCTA, Director of Press, Tony Ogunleye had earlier told DAILY POST that there’s no law in Nigeria regulating how much a landlord decides to collect as rent.
He insisted that rent has always been on the high in Abuja.
According to him, “Abuja rent has always been high when you compare to places like Lagos and Port Harcourt; it is not something that started today.”
Speaking on unoccupied buildings around the FCT, Ogunleye said that “owners of those empty buildings you see are conducting themselves within the law. They have not gone against the law of the land.
“As far as they are paying their ground rent. Someone can build 10 houses and decides to leave them empty, it’s nobody’s business. They don’t have anything to worry about as much as they are complying with what the government demands of them.”
[DailyPost]