Posts in category: General Article

President Bola Tinubu has said bilateral partnerships must be mutually beneficial, transformative, and must translate into real gains for ordinary citizens.

Speaking at the Nigeria-Netherlands Business and Investment Forum in The Hague, on Thursday, President Tinubu in a statement by presidential spokesman, Ajuri Ngelale emphasised the pivotality of stronger ties between Nigeria and the Netherlands.

Tinubu said both countries must explore more creative channels of collaboration through partnerships, joint ventures, or strategic alliances in order to build bridges that connect markets and facilitate the flow of goods, services, ideas and peoples.

He said his administration is enhancing the business environment in Nigeria to make it very friendly through various reforms.

He noted these measures to include cleaning up of foreign exchange market to make it more transparent for seamless business transactions, removal of the fuel subsidy, and the readiness of the Central Bank of Nigeria (CBN) to provide necessary window to allow foreign companies repatriate their profits, among others.

President Tinubu said the improved business milieu in Nigeria is making the country an investor’s paradise, urging businessmen and women to take advantage of these opportunities for mutually rewarding economic partnerships between Nigeria and the Netherlands.

“I am delighted and honoured to be at this occasion of the Nigeria-Netherlands Business Forum. This is a platform that symbolises the potential for collaboration and partnership between our two nations.

“It is worthy to note that while this forum seeks to highlight and advance the potential of mutually beneficial partnerships, I wish to state here that we must also ensure that the partnerships are creative and transformative in such a manner that the ordinary citizens of our countries can reap verifiable gains.

“It is on record that Nigeria and the Netherlands have established business ties for decades. There is every need to re-invigorate this relationship. This is a call for creativity on the part of all of us,” the President said.

Noting the long history of diplomatic relations between Nigeria and the Netherlands, President Tinubu called for the forging of even stronger bonds, not just in diplomacy but in commerce, innovation, and enterprise.

“Our countries possess unique strengths and resources. It is through collaboration that we can harness these strengths, unlock new opportunities, and drive economic development.

“Together, we have the potential to create synergies that will benefit our present and future generations. We must endeavour to replicate the success stories of various Dutch companies and enterprises by learning and sharing their experiences and approaches for the benefit of all.

“As the world braces up for today’s economic challenges, which in many ways affect our two countries, a creative approach to the search for investment-minded solutions will prove to be the most viable path to the level of sustainable development that we all desire.

“In line with the above vision, I believe that we must endeavour to push this narrative into our daily business activities and to move toward industrial value addition, agribusiness, innovative technology, green energy, marine economic expansion, as well as solid mineral exploitation and processing,” the President said.

Rounding off his remarks, President Tinubu emphasised that relations between Nigeria and the Netherlands will henceforth set a new tone and foundation for stronger economic ties between both countries.

“As we engage in discussions and negotiations today, let us do so with a spirit of openness, trust, and mutual respect. Let us listen to one another, learn from each other, and find common ground that will allow us to move forward together in pursuit of our shared prosperity,” the President concluded.

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The federal government has said it is working on building a single revenue generation platform for national implementation of tax administration. The plan is to shift away from the current multiple taxation system that has been described as counterproductive.

The government said it intends to develop a template of code for fiscal laws for sub-national governments to adopt so that they can have a single piece of information that covers everything at the state level and at the local level which people can reference.

“We are building a bigger platform for revenue administration in Nigeria generally. And again, this has to be, you know, has to be  Championed by the joint tax board. We have a new policy coordination, exchange and  information and capacity development,” chairman, presidential fiscal policy and tax reforms committee Taiwo Oyedele stated at a retreat for staff of Joint Tax Board (JTB) in Abuja.

“So because we have  had this high turnover, especially for the share pricing of the internal revenue services. It will be good for the joint tax  Board’s  to sign in that job of ensuring   That you have an induction program for head of internal revenue services. That is to say, head of the cost of service and all the members of the joint tax board,” Mr Oyedele said. “So it is not just internal revenue services. One that is a new person is offered to do the induction process. Even if it is just one person. That you go through a number of items, of techniques.”

Also speaking at the event, Secretary of the JTB Mr Olusegun Adesokan, emphasised the significance of getting staff members ready for the current and evolving tax environment. He said the organisation is set to summit some of its reports to the presidency soon and that one of its major advocacies is for a total digitalisation of tax administration for effectiveness.

He added that another  goal of the retreat was for  the JTB Secretariat staff to fully imbibe the culture of collaboration and innovation, to enable full understanding of their role under the emerging dispensation.

He said “One of the things we have realised is that we need to retrain and re-culture our staff to prepare for the new and emerging tax landscape. Because this committee, and the Tax Presidential Committee will be submitting some of its report very soon, and this committee is advocating for a total digitalisation of tax administration in Nigeria.”

He said the government has realised the need to retrain and re-culture the staff of the board to make them more effective and conscious of their mandate. He stressed on the need for the staffers to prepare for the new and emerging tax landscape. “Because this committee, and the Tax Presidential Committee will be submitting some of its report very soon, and this committee is advocating for a total digitalisation of tax administration in Nigeria,” Adesokan said.

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Says funds released to all MDAs for capital in 2023

Four months into the 2024 fiscal year, the federal government is yet to begin implementation of the capital component of the 2024 national budget which has many implications on the nation’s economy.

This was as the government said that it has released funds for all requisitions from Ministries, Departments and Agencies for the implementation of 2023 capital projects.

The budget titled “Budget of Renewed Hope” has a proposed expenditure of N27.5 trillion, an estimated revenue of N18.32 trillion and N8.7 trillion for the 2024 fiscal year.

Accountant General of the Federation Mrs Oluwatoyin Madein said the government was still implementing capital allocations of the 2023 budget that the National Assembly extended at the end of 2023 year-end. She said the decision to continue with the implementation of the 2023 budget was taken after consultation with the minister of finance and coordinating minister of the economy, and minister of budget and economic planning when the lawmakers who ought to give a directive failed to come up with any.

The AGF said “We even called for cash plans to be uploaded by 15th and 21st March. We did that on 15th March while we are still on the one for 21st March,” she stated yesterday at a 1-day stakeholders interactive/sensitization session on the revised policy on cash management and bottom-up cash planning.

The situation may impair the government’s January-December budget cycle, vis-à-vis its national development plan 2021-2025. Apart from the contractors and other direct beneficiaries, most sub-nationals have their budgets tied to the federal budget.

However, she said her office has compiled all the cash plans that were submitted for 2023 “so that we can close 2023 now and commence 2024. As soon as we are through with this programme, we will advise for submission of 2024 from the month of May… We’ve called for the initial cash plans – monthly cash plans, annual cash plans – which we are already reviewing.”

Dr Madein said one of the reasons the 2024 cash plan has not started rolling out was based on a decision to ensure that the revised policy on cash management and bottom-up cash planning commence with the implementation of the 2024 capital budget.

She urged the accounting officers at the programme to get their cash plan documents ready so that by 15th May, you will have been able to upload into the cash plan system.

Meanwhile, the minister of finance and coordinating minister of the economy, Mr Wale Edun has said again that the federal government is committed to maximum overhaul of the nation’s economy to improve the lives of Nigerians. Speaking at the Abuja event, the minister said Nigeria is now on the road to reform and transparency, adding, “We must be determined that even though we could not do it yesterday, we will definitely do it tomorrow. He therefore urged the accounting officers at the workshop to embrace the financial reforms of the government for national good.

This is as the government has concluded in the revised policy on cash management that any amounts held in the Treasury Single Account (TSA) system not immediately needed will be invested in interest-yielding deposits. To do that, the AGF will direct the Central Bank of Nigeria (CBN) to invest idle cash balances in short-term instruments at the ruling or competitive rate.

The revised cash management policy among other things stipulate that all MDAs will now have to submit their monthly expenditure needs for consolidation by the funds department (cash management unit) at the OAGF headquarters; monthly cash payment needs will now be based on capital commitments to be settled in the month as well as recurrent needs for the specific month.

It also provides that capital and overhead cash needs will henceforth be based on legal and financial commitments that is in line with the approved cash plan entered in GIFMIS. Where actual commitments do not support expenditure needs, the MDA cash plan (outflows) would be reduced without recourse to the MDA in question accordingly.

The new policy provides strategies for cash flow planning and management such that inflows are realisable, outflows controlled and there is value for money in public expenditure, avoiding discretionary spending, minimising deficits, and borrowing within limits as well as investment of excess and/or idle cash.

It focuses attention on a strategy that ensures government commitment to budget implementation, effective public expenditure funding and management and strategies for the investment of idle cash and financing of gaps when they occur.

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The Central Bank of Nigeria (CBN) has raised the exchange rate for paying Customs duties at the nation’s seaports by 11.1 percent in response to the crash in the value of naira against the dollar in the foreign exchange market.

Apex bank raised the Customs FX duty rate from N1,150.16/$ to N1,277.526/$ on Thursday, April 25, according to information obtained from the official trade portal of the Nigeria Customs Service.

This represents an 11.1 percent rise in rate when compared to the old rate of N1,150.16/$ previously used for opening Form M, and an increase of N127.366 on a dollar needed to clear goods at the port.

This is as the naira continued its depreciation at the official end of the market, closing on Thursday at N1,309.88 to the dollar, a 12 per cent week to date decline on the Nigeria Autonomous Foreign Exchange Market (NAFEM).

As against N1,169.99 which it closed last week on the market, the value of the naira had lost N139.89 or 12 per cent of its value within the past four days. On Monday, the value of the naira had closed weaker at N1,234.49.

This was despite a rise in turnover which rose from $89 million to $110 million. By Tuesday, the value of the naira depreciated further to N1,300.15 to the dollar with intra day trading seeing deals consummated between N1,317 and N1000.

At the end of trading on Tuesday, a turnover of $133,65 million had been recorded. By Wednesday, the value depreciation continued as the naira closed at N1,308.52 to the dollar with trades consummated between N1,367 and N1,098 to the dollar. Turnover at the market continued to rise, standing at $197.54 million.

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By Thursday, the value of the naira depreciated slightly to N1,309.88 to the dollar, with intraday deals consummated between N1,439 and N1,000 whilst turnover rose significantly to $318.08 million.

Traders note that the deprecation in the value of the dollar was due to market forces as demand continues to outstrip supply. The Central Bank of Nigeria had on Monday sold dollars to bureau de change operators.

By implication, importers opening Form M today will require more money to pay import duties compared to the importers who opened Form M earlier in the week.

African economies lose $13.7 billion to adverse climate events

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The Nigeria Deposit Insurance Corporation (NDIC) has reiterated its commitment to a culture of zero tolerance for corruption, which is further strengthened by its core values of teamwork, respect, fairness, integrity, professionalism, and passion.

NDIC Managing Director, Bello Hassan disclosed this during the inauguration of the Corporation’s Anti-Corruption and Transparency Unit (ACTU) by officials of the Independent Corrupt Practices and Other Related Offences Commission (ICPC) at the NDIC headquarters in Abuja.

Hassan was represented at the event by NDIC Executive Director, Operations Mr. Mustapha M. Ibrahim.

He said, the NDIC ACTU has strengthened the corporation’s operational system through the implementation of various compliance measures to ensure ethics, integrity, transparency and accountability in the workplace.

He explained that the specific measures include robust Internal Controls, regular Risk Assessments, strict adherence to regulatory guidelines, and comprehensive training programs for employees.

Hassan described the inauguration as a significant step in the Corporation’s ongoing commitment in the fight against corruption and enhance transparency.  He emphasised that NDIC Management remains committed to supporting ACTU activities, recognizing the unit’s critical role in ensuring the Corporation’s operations are conducted with integrity, free from corruption, and fostering public trust.

The ICPC Chairman, Musa Adamu Aliyu who was represented by ICPC Acting Director System Study and Review, Mr. Olusegun Adigun, praised NDIC Management for their dedication and active support in establishing and advancing the activities of the ACTU to address corruption issues and foster ethical practices.

He applauded the efficiency and diligence of the NDIC ACTU in fulfilling its mandate, resulting in the Corporation retaining the first position for two consecutive years on the annual ICPC Ethics and Integrity Compliance Scorecard.

He urged the new ACTU members to see their nomination as an opportunity to build on the good legacies of the previous members and to complement Management’s efforts in promoting the core values of the Corporation through their assigned duties. He stressed the need for the NDIC Management to sustain its commitment and support to ACTU so that the Unit can perform optimally and remain a veritable tool in embedding laid down ethical standards amongst staff and sustaining a positive image for the Corporation.

Ten (10) members of staff were sworn in as members of the NDIC ACTU during the inauguration. Their key functions include annual sensitization of staff against corruption; Conduct of System Study & Review and Corruption Risk Assessment to strengthen internal systems; monitoring budget implementation of the Corporation, coordinating whistleblowing platforms, identifying and rewarding outstanding members of staff amongst other responsibilities.

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The minister of State, Petroleum Resources (Oil), Heineken Lokpobiri, has insisted that over $500 million of the industry’s funds in equity investments in private establishments and in loans by the Nigerian Content Development Monitoring Board, NCDMB, are not performing.

The minister made the comment at The Petroleum Club’s quarterly event in Lagos
Lokpobiri , while reacting to recent media statements by SIMBI Wabote, former executive secretary of the Board, dismissed as blatant lies claims that his office requested for an increase on NCDMB budget by N30 billion for the office of the Minister.

In a statement signed by special adviser, Media and Communication, minister Of State For Petroleum Resources(Oil), Nneamaka Okafor, the minister noted that ‘’Our position is that he who alleges must prove the same. So, if Mr. Wabote has proof of such a conversation, he is challenged to provide the same.

‘’Secondly the minister has no aide called Blackson. All his aides were duly selected in line with extant laws and have documents to that effect.

According to the statement ‘’The Minister in his capacity as chairman of the Governing Council stands by his statement at The Petroleum Club’s quarterly event in Lagos, and as journalists I welcome you to visit the places mentioned to verify the allegations for yourself.

‘’Thirdly, the said Atlantic Refinery was supposed to be built in Mr White’s hometown, he should show Nigerians where that refinery is.

‘’Fourthly, the Brass Fertilizer and Petrochemical company was also paid for, you are welcomed to also visit the site to verify the facts for yourself.

The statement noted that Investigations are ongoing and the truth will surely come to light and monies belonging to the generality of Nigerians will be recovered for Nigerians.

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The capital market operators in Nigeria have commended President Bola Tinubu for the appointment of Dr Emomotimi Agama as the director-general designate for the Securities and Exchange Commission (SEC).

They gave the commendation in separate interviews, while reacting to the new SEC board composition by the President.

The president Capital Market Academics of Nigeria, Prof. Uche Uwaleke described Agama’s appointment as ‘a round peg in a round hole’.

Uwaleke said that Agama had been in the commission for over 20 years urged him to continue from where the present SEC DG stopped, saying that implementation of the Nigerian capital market Masterplan must be paramount in his agenda.

Also speaking, the managing director of Arthur Steven Asset Management Limited, Olatunde Amolegbe hailed the appointment of Agama along with the other board members of SEC.

Amolegbe said the appointment was well thought through and appropriate for the enhanced growth and development of the capital market, saying “most of them are well grounded capital market professionals with decades of experience under their belt both locally and internationally.

“Agama has been a regular in the Nigerian capital market for an upward of 25 years or maybe more as far as I know.”

On agenda for the new team, he enjoined the new team to continue with the implementation of the capital market masterplan. He also urged them to develop the nation’s commodities exchanges to fill the gap of trading in locally sourced soft commodities such as oil and gas and agricultural products.

Amolegbe added that the new team should ensure that the regulatory-induced banking recapitalisation is conducted in an efficient and orderly manner, saying “the medium-term goal will be to position the capital market to facilitate the one trillion-dollar economy goal of the federal government will be key.

“I would like to see us achieve a market capitalization to Gross Domestic Product levels of at least over 50 per cent by the end of their first tenure. These are lofty but achievable goals, while congratulating the outgoing team for the excellent work they have done.”

Recall that President Bola Tinubu approved the appointment of a new director-general for SEC. This was contained in a statement issued by the spokesperson to the President, Ajuri Ngelale.

The President also appointed the following professionals to the board of the Commission: Mairiga Aliyu Katuka as chairman, Frana Chukwuogor, executive commissioner (Legal and Enforcement) and Bola Ajomale as executive commissioner (Operations)

Others are Samiya Usman, executive commissioner (Corporate Services), Lekan Belo, non-executive commissioner and Kasimu Garba Kurfi, non-executive commissioner.

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The African Private Capital Association (AVCA), called for increased investment to attract the $ 2.3 trillion of domestic capital in Africa that needs to be unlocked.

This was stated at the AVCA 20th Annual Conference & VC Summit in Johannesburg, with the ‘embracing change and shaping the next era of Africa’s prosperity’.

Institutional investors, fund managers, policymakers, global and local investors and entrepreneurs opened the major international gathering, convening 700+ private capital leaders from over 60 countries to align on strategies to power the next 20 years of Africa’s growth.

Speaking, chief executive officer, AVCA, Abi Mustapha-Maduakor introduced the flagship forum by noting that, despite a challenging macroeconomic environment in recent years, Africa’s private capital industry has remained resilient and will continue to rise.

Chairman and co-founder, Phembani Group, Phuthuma Nhleko followed with an instructive keynote address rallying private investors to back innovative businesses to drive prosperity at scale.

Calling for a new plan for the transformation ahead, he argued that, “the size of population generates 50 per cent of Gross Domestic Product (GDP). By 2050, we will have 2.5 billion Africans that constitute over a quarter of humanity, with over 40 per cent of youth below the age of 18. By this time, Nigeria’s population is expected to be bigger than the US.”

Co-founder and managing director, Alitheia Capital, Tokunboh Ishmael described the exponential growth witnessed throughout the second decade of private capital expansion in Africa.

Despite clear signs of progress involving the increase in fund managers and assets under management (AUM), industry titans including Wale Adeosun, Founder and Chief Executive Officer, Kuramo Capital Management and Vincent Le Guennou, Chief Executive Officer, Africa50’s Infrastructure Acceleration Fund, aligned that Africa’s private capital industry remains a nascent ecosystem with immense potential.
Founder and chief executive officer, Kuramo Capital Management, Wale Adeosun said on the benefits of bringing institutional investors from the U.S into Africa.

Chief executive officer, Africa50’s Infrastructure Acceleration Fund, Vincent Le Guennou proposed that the traditional private equity model replicated in the continent needs to be adapted and advocated for proactive efforts to attract the $2.3 trillion of domestic capital in Africa that needs to be unlocked, saying, this needs to be a key objective for the next 10 years.

Also, the Pension funds in Africa were highlighted as a vital source of capital to diversify funding and bridge the finance gap. The partner and chief operating officer, Joliba Capital, Dieynaba Kamara expressed that most pension funds needed ‘education on investing in private equity as an asset class’, especially in Francophone Africa where pension funds prioritise hard assets such as real estate.

Director and head of Funds Solutions, British International Investment, John Owers said, ‘a functioning private capital ecosystem needs to provide options for exits for Limited Partners (LPs), and that is what the secondary market does.’

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M86BMX Economic crisis – Stock market graphs and charts – Financial and business background

The Nigerian equities yesterday sustained the bearish run as the overall capitalization lost N673 billion.
The All-Share Index (ASI) lost 1,190.24 points, representing a decline of 1.20 per cent to close at 98,121.30 points. Also, market capitalisation declined by N673 billion to close at N 55.494 trillion.

The downturn was driven by price depreciation in large and medium capitalised stocks amongst which are; MTN Nigeria Communications (MTNN), Transcorp Hotels, FBN Holdings (FBNH), Fidson Healthcare and Transnational Corporation (Transcorp).

However, market breadth closed positive, as 22 stocks gained relative to 19 losers. SUNU Assurance, Neimeth International Pharmaceuticals and The Initiates Plc (TIP) emerged the highest price gainer of 10 per cent each to close at N1.21, N1.98 and N1.98 respectively, per share. CAP followed with a gain of 9.90 per cent to close at N28.85, while UPDC rose by 9.76 per cent to close at N1.35, per share.

On the other side, Transcorp Hotels and MTNN led the losers’ chart with 10 per cent each to close at N87.93 and N201.60 respectively, while Oando followed with a decline of 9.90 per cent to close at N9.10, per share.

FBNH depreciated by 9.82 per cent to close at N19.75, while Fidson Healthcare down by 9.75 per cent to close at N14.35, per share.

The total volume traded declined by 31.10 per cent to 395.751 million units, valued at N9.576 billion, and exchanged in 7,907 deals. Transactions in the shares of Guaranty Trust Holding Company (GTCO) led the activity with 81.407 million shares worth N2.931 billion. Zenith Bank followed with account of 46.156 million shares valued at N1.691 billion, while United Bank for Africa (UBA) traded 41.600 million shares valued at N953.518 million.

FBNH traded 23.44 million shares worth N480.999 million, while Access Holdings traded 22.301 million shares worth N361.895 million.

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The Nigerian National Petroleum Company Limited (NNPC Ltd) and its Joint Venture partner in the Awoba Unit Field, Newcross Exploration and Production Ltd, have restarted production from the Awoba field.

The field which last contributed production to the Bonny Terminal in 2021 and was finally shut down in February 2022 due to evacuation issues and crude oil theft, has been averaging 8,000 barrels per day, and production is expected to ramp up to 12,000 barrels per day within the next 30 days.

The NNPCL noted that the field, restarted on April 13, 2024, the Awoba field is also expected to significantly boost gas supply to the power sector and other gas-based industries and  optimise production from the nation’s hydrocarbon assets to boost revenues and meet the nation’s OPEC production quota, according to a release signed by its spokesman, Olufemi Soneye.

The Awoba Unit which straddles OMLs 18 and 24 is located in the mangrove swamp south of Port Harcourt, Rivers State. Both OML 18 and OML 24 assets are under the management of the NNPC Upstream Investment Management Services (NUIMS).

NNPC Ltd has been recording a string of production successes from the JV portfolio which have significantly lifted overall national production. Besides the recent start of production at the Madu Field by the NNPC Ltd/First E&P JV, the company has achieved the restart of production at OMLs 29 and OML 18 in late 2023 which have steadily contributed an average of 60,000bpd to the nation’s production output since their restart.

Speaking on the development, the group chief executive officer, Mele Kyari, ascribed the achievement to the President Bola Ahmed Tinubu administration’s success in providing an enabling operating environment for businesses to thrive.

He expressed appreciation to all stakeholders (staff, operators, host communities, government security agencies, and private security contractors) who played a pivotal role in achieving the feat.

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