The chief executive officer of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Farouk Ahmed, has confirmed that the recent fuel shortages experienced in the country were due to logistics disruptions caused by severe flooding in Lagos and other parts of the country. Ahmed disclosed this to State House Correspondents after meeting with President Bola Tinubu at the Presidential Villa, Abuja.
According to him, flooding in Lagos State disrupted truck loading and movement. He said this further increased the problem of insufficiency of PMS, he assured that these issues were being addressed through coordinated efforts between Nigerian National Petroleum Company Limited (NNPCL) and marketing companies.
“And obviously offshore there were a lot of soil and there were destabilisation and it was very difficult to continue our shipping operations because of safety, the safe shift transfer was suspended because of the volatile nature of the high sea at the time, so that two days of delays created that gap and on top of that elsewhere there were floodings in Lagos and that disrupted truck loading and truck movement because of the floods so the floodings were now more like helpless”.
While reiterating the government’s commitment to supporting local industries and ensuring the quality of petroleum products, he added that there is a 20-day sufficiency of petroleum products, with 12 days offshore and eight days onshore .
“I did briefed the President we have like 20 days sufficiency, 12 days offshore and over eight days sufficiency of onshore but what is important is to translate the offshore to onshore and that is why I mentioned to you earlier that the movement of shipping to other parts of the country will fast track the onshore availability and once we have the stock in onshore spread across the country then you see a lot of comforts coming in” Ahmed added.
The CEO also discussed the impact of floods in parts of Niger and Edo states, which he said increases road blockages and hinders the transportation of petroleum products.
Minister of finance and coordinating minister of the economy, Wale Edun has urged the new management of Securities and Exchange Commission (SEC) to focus on crypto areas and develop a master plan “for proper implementation by ensuring that they are regulated according to the guidelines.”
The minister gave the directive on Tuesday during the inauguration of the new board members of the securities commission with a charge to explore innovative mechanisms and improve on digital currency transactions in regulating Financial market aimed at attracting investors both within and outside the country, the ministry said in a statement.
The minister said the key objectives of the President Bola Tinubu’s administration was ensuring the realisation of fiscal policy geared towards Financial market regulations with a view to enhancing economic growth and development of Nigeria.
The minister emphasised the importance of facilitating financial development, improving the operational financial market, and mitigating challenges through the deployment of technology and innovation.
“Let me remind you and charge you also that, SEC, being the Apex Financial market and key regulators in foreign exchange financial market, Capital market and cooperative operators, need to be innovative as well as improve on technology to mitigate the financial market challenges in line with the Renewed Hope Agenda of the President Bola Ahmed Tinubu-led Administration,” Edun said.
He called on the board to beam their search light on Crypto areas, which he said are fast moving, in order to protect the investment public and the general public. Chairman of the board, Mairiga Aliyu Katuka, thanked President Tinubu for finding them worthy to assume the office of trust and responsibility.
He underscored his predecessors efforts that culminated in the remarkable achievements which repositioned the commission as a regulating agency and promised to build a stronger and more resilient Financial ecosystem, in line with the Commission’s mandate as well as the Renewed Hope Agenda of the present administration
Katuka assured that members of the Board will harness their individual expertise and innovative ideas as well as their wealth of experience to ensure the realisation of the policy objectives of the government.
He emphasised that the Board would pursue a comprehensive agenda aimed at advancing the interest of the investors, safeguarding market integrity, promoting capital formation and enhancing regulatory oversight.
He assured further that the Board will continue to collaborate with relevant stakeholders so as to ensure open communication and mutual cooperation in order to achieve the goals set for it
While assuring President Bola Ahmed Tinubu that the Board will not disappoint the confidence reposed on them, Mr Katuka expressed optimism that the future of Nigerian Security market is sure to chart a new course towards a more prosperous and resilient financial ecosystem, especially with the reforms and policies put in place by the present administration which includes robust inflation management, macro-economic innovations and improved private sector development.
Earlier in her opening remarks, the permanent secretary, Federal Ministry of Finance, Lydia Shehu Jafiya commended the minister of Finance and Coordinating Minister of the Economy, Wale Edun for his unwavering and sterling leadership that is enabling the Ministry and its Agencies to deliver on their mandate.
In a concerted effort to address widespread complaints about data depletion, Nigeria’s Mobile Network Operators (MNOs) have collaboratively launched a consumer sensitisation campaign aimed at providing practical guidance for more effective data management.
This initiative is designed to enhance consumer satisfaction by helping subscribers optimise their data usage.
In a unified statement, the MNOs highlighted several smart data usage behaviours that can help prevent data depletion. These include disabling automatic app updates, enabling data saver mode, and closing unused apps to prevent background data consumption.
To prevent unauthorised access and strengthen data security, the MNOs advised consumers to use stronger passwords and regularly update their hotspot and Wi-Fi passwords to prevent unauthorised access.
For a seamless video streaming experience, users should ensure they have sufficient data and turn off auto-downloads to effectively manage content consumption, MNOs advised.
With the advent of advanced network technologies like 4G, LTE, and the latest 5G, which offer ultra-fast data speeds and enhanced browsing and streaming experiences, the speed of data consumption and pattern have increased significantly. Consumers are encouraged to understand these changes and manage their data usage accordingly.
“It is important for consumers to familiarise themselves with the specific terms and conditions of their data plans,” the MNOs emphasised. “Different plans cater to various needs, including weekend-specific plans, social media-only plans, and regular plans configured for night use only.”
The federal government’s 64.5 per cent of its total revenue in 2023 servicing debts, analysis of data from the Budget Office has shown.
Actual debt service cost was N7.66 trillion in 2023, a 16.9 per cent rise from the projected N6.56 trillion.
Last year’s figure is higher than the 48.5 per cent of total revenue that debt service gulped in 2022, and lower than the 71.8 per cent of total revenue used to service debt in 2021.
In 2022, actual debt service cost rose marginally to N3.76 trillion from the budget amount of N3.69 trillion.
Actual revenue was N11.88 trillion from projected revenue of N11.05 trillion. In 2022, the federal government received a lower actual revenue of N7.76 trillion from a projected revenue of N9.97 trillion.
PwC Nigeria, in its latest 2024 Nigeria Economic Outlook report projected that debt service could rise from N8.25 trillion in 2024 to N9.3 trillion in 2025 and further to N11.1 trillion in 2026.
The professional services firm stated that Nigeria’s rising debt service cost may affect the country’s debt servicing ability, credit rating outlook, and borrowing cost.
“With a high debt servicing to revenue ratio, the government aims to increase domestic debt in 2024 to meet its deficit funding requirements,” the report said
The report by PwC Nigeria Authors highlighted that Nigeria’s deficit has grown by 370 percent from 2015 to 2023, which has led to a high debt and debt servicing profile.
“Though debt stock to GDP is comparatively low at 37.1 percent, the debt servicing to revenue ratio remains high at 124 percent as of the first half of 2023. In 2024, the government aims to reduce the budget deficit to around 3.9 percent (N9.18 trillion) of GDP, down from 6.1 percent in 2023, through reduced spending,” they said.
A recent report by the United Nations titled ‘A world of debt’ said the growing burden to global prosperity has been translating into a substantial burden for developing countries due to limited access to financing, rising borrowing costs, currency devaluations, and sluggish growth.
“Countries are facing the impossible choice of servicing their debt or serving their people. Today, 3.3 billion people live in countries that spend more on interest payments than on education or health. A world of debt disrupts prosperity for people and the planet,” the report said.
The nation’s pension fund assets rose from N19.75 trillion in April to N20.2 trillion in May 2024, rising by about N470 within one month, LEADERSHIP learnt.
Available data dated July 3, 2024 and sourced from the National Pension Commission(PenCom) by LEADERSHIP shows that, investment in FGN Securities rose from N12.39 trillion in April to N12.7 trillion in May 2024 of which FGN Government Bond amounted to N12 trillion, Treasury Bill was N370 billion; Sukuk Bonds investment was N116.6 billion and Green Bonds attracted N212.16 billion even as State Government Securities was N264.3 billion in the month under review.
Pension fund operators, however, invested N1.92 trillion in Money Market Instrument.
Investment income, according to LEADERSHIP investigation, was instrumental to the continuous growth in pension funds, despite the fact that some governments at majorly, State level are not paying the monthly pension contributions of their workers as and when due.
Similarly, the huge increase, according to findings, was attributed to new pension contributions received, interest from fixed income securities and net realised on equities and mutual fund investments.
At a recent seminar in Lagos, the executive secretary/CEO, Pension Fund Operators Association of Nigeria (PenOp), Mr. Oguche Aguda, while applauding the contributions of pension fund operators toward growing the assets, assured pension contributions that their funds are in safe hands, attesting to the fact that, there has been no reported mismanagement of pension fund under the new scheme known as Contributory Pension Scheme(CPS), a development, he said, was due to prudent management of the assets by operators and strict enforcement of pension regulations by PenCom.
On her part, the director general, National Pension Commission(PenCom), Aisha Dahir-Umar, had said, the growth in the pension fund assets under the new pension scheme, is an indication of prudent and sincere management of the pension fund by the pension operators and the regulator.
According to her, “the maintenance of a consistent growth trajectory continues to justify the Commission’s overriding investment philosophy of ensuring the safety of pension fund assets.”
Chevron Nigeria Limited (CNL), operator of the joint venture between the Nigerian National Petroleum Company Limited (NNPCL) and CNL, “NNPCL/CNL JV, has said it has plans to further grow its business space in Nigeria’s Oil and gas industry.
The company said it remains committed to supporting the social and economic development of Nigeria and desires to grow its business in the country.
Chevron Nigeria’s Chairman and Managing Director, Jim Swartz, gave the assurance on Wednesday July 3, 2024, after it was recognized with the Best Exhibitor award at the 2024 edition of the Nigerian Oil and Gas (NOG) Energy Week conferences and exhibition in Abuja.
The award presented by the Minister for Petroleum Resources (Oil), Senator Dr. Heineken Lokpobiri was received by Jim Swartz during the NOG closing gala dinner hosted by NNPCL at Transcorp Hilton Hotel, and attended by dignitaries including government officials, regulators and captains of industry.
Swartz appreciated the organisers of the event for the award and noted that Chevron remains committed to its partnership with Nigeria in ensuring safe, reliable, and efficient operations in and delivering affordable, reliable and ever cleaner energy supply that is critical to the development of the Nigerian economy.
Nigeria has the potential to produce about 1.15 million vehicles per year, thereby unlocking vast employment opportunities and significantly boosting the nation’s Gross Domestic Product (GDP), says stakeholders in the Nigerian automobile industry.
This, they say at a summit recently organised by the Nigeria Auto Journalists Association (NAJA) in collaboration with the National Automotive Design and Development Council (NADDC).
In his paper presentation on ‘Developing Nigeria’s Economy Through the Auto Industry’, Board member, Nigeria Automobile Manufacturers Association (NAMA), Benedeth Ejindu said, the global automotive sector plays a catalytic role in driving economic growth, as seen in its significant contributions to employment generation and economic development in other countries.
Ejindu said: ‘For instance, in the United States, the automotive industry employs over 1.7 million people directly, with a single job in the industry creating 10 more. In India, the industry employs 19 million people directly and indirectly, while in South Africa, it employs 110,000 people directly.”
In the automotive value chain, he said, Nigeria is merely scratching the surface, noting that, “It’s like only getting the ‘froth’ of the industry while the rest of the world enjoys the full glass. Our role is limited to the dealership and ownership aspects, just the surface level of the industry. It’s like settling for just the foam on a glass of beverage, missing out on the full, rich experience of the drink itself, which represents the heart of the industry—the factories, the manufacturing, the true essence of auto production. “
Saying that Nigeria offers a unique combination of resources and potential, making it an automotive manufacturers’ paradise, he added that, “we can produce 1.15 million vehicles annually. The necessary resources are readily available, including abundant leather, textiles, and rubber.
“There are iron, steel, aluminium, plastic, elastomers, and more. Additionally, we have the necessary materials for electric vehicle production, including cobalt, lithium, manganese, bauxite, and graphite. These resources are readily available in Nigeria, making us an ideal location for automotive production.”
To unlock the potential of Nigeria’s automotive industry, he advised the government to provide support through legislation, infrastructure development, and incentives, adding that the industry must also be aligned with global best practices, and the country must ban used vehicles to enable local manufacturing to grow.
Advising that local manufacturing companies like Innoson, Anamco, Pan, and all the players in Nigeria do not have to go to build their press or punchline, and the rest of that, they can use shared infrastructure like it is done in China.
“Most of the cars, like pickup trucks and Hiace, have the same mode of body. The OEM or the vehicle maker will now maybe design their own and sell their engines or the components that they want and put in them. But the fact that the factory produces the body shell is just one of them, he pointed out.
Similarly , the minister of Industry, Trade, and Investment, Dr Doris Uzoka-Anite, said, the automotive industry has the potential to be the cornerstone of Nigeria’s economic recovery, offering numerous benefits, including job creation and technology transfer.
Uzoka-Anite, who was represented by the deputy director of the Industrial Development Department, Olumuyiwa Ajayi-Ade, highlighted the government’s recognition of the automotive sector as a critical pillar for economic development and recovery.
Uzoka-Anite emphasised the labour-intensive nature of the automotive industry and its capacity to create thousands of jobs across the value chain, significantly reducing unemployment and providing sustainable livelihoods as she concluded by stressing the importance of collective effort in harnessing the sector’s potential.
The director-general of the National Automotive Design and Development Council (NADDC), Joseph Osanipin, had earlier warned that Nigeria’s auto industry is headed for doom if critical steps are not taken to revive it.
Osanipin, citing the example of Morocco, which stated its National Automotive Industry Development Plan (NAIDP) in 2013 as Nigeria, has successfully grown its auto industry from exporting 23,000 units in 2013 to 460,000 units currently. In contrast, Nigeria has failed to make progress, continuing to import vehicles instead of exporting them, retrogressing from Semi Knocked Down (SKD) to Dismembered Knocked Down (DKD).
He stressed that the industry cannot afford to stand still while technology advances and urged stakeholders to work together to develop Nigeria’s economy through the auto industry.
Shareholders of NEM Insurance Plc were rewarded for their loyalty as the insurer paid a dividend of 60 kobo per N1 ordinary shares, amounting to N3 billion total dividend in its 2023 financial year.
Addressing shareholders at the firm’s 54th Annual General Meeting (AGM) in Lagos, earlier in the week, group chairman Tope Smart, disclosed that the total investment income of the insurer in 2022 was N1.6 billion while that of 2023 was N3.3 billion, adding that, the claims paid during the year was N15.7 billion as against N12.3 billion in 2022; an increase of 28 per cent over that of the preceding year.
The claims ratio for 2023, he said, was 30 per cent while that of 2022 was 40 per cent, a decrease of 25 per cent.
He noted that management expenses increased by 43 per cent from N3.7 billion in 2022 to N5.3 billion in 2023, noting that the increase was due to the impact of inflation and business growth during the year under review. Similarly, he said, the firm’s revenue grew from N31.4 billion in 2022 to N52.1 billion in 2023, an increase of 66 per cent.
Stressing that the group’s Profit Before Tax(PBT) for the year under review was N18.9 billion in 2023 from N5.5 billion in 2022, translating to an increase of 244 per cent, he added that, the position of the group’s financial assets between 2022 and 2023 increased by 160 per cent while total assets and total equity also improved by 68 per cent and 43 per cent respectively.
Saying the Group’s Equity Per Share(EPS) for the year under review was 260 kobo while that of the previous year was 108 kobo, he added that, the parent company’s EPS for 2023 was 264 kobo against the preceding year of 108 kobo.
“NEM Insurance Plc is a leading insurance provider in Nigeria, offering all forms of general insurance products with a history of successful financial reporting under previous accounting standards. The company realised the importance of embracing IFRS 17 as well as the directives from regulatory authorities and adopted IFRS 17 in presenting its 2023 financials,” he pointed out.
The Central Bank of Nigeria (CBN) has warned banks in the country against rejecting dirty and mutilated Naira notes, saying it will effectively sanction any bank that is found guilty of rejecting the banknotes.
In a circular dated June 28, 2024, signed by the Acting Director, Currency Operations Department, CBN, Mr. Solaja Mohammed, and made public on the apex bank’s website on Wednesday, it stated that it has received several reports of rejection of dirty/mutilated Naira banknotes by some Deposit Money Banks (DMBs).
The circular reads: “Consequently, it has become imperative to remind DMBs that the CBN circular dated July 2, 2019 reference number COD/DIR.GEN/CIR/01/006, which prescribes penalties for the rejection of Naira banknotes, is still enforceable and binding on erring DMBs.
“Going forward, the CBN shall not hesitate to apply strict sanctions on DMBs, who are reported to have rejected deposits of Naira banknotes from the public under any guise.”
Similarly, LEADERSHIP had reported on Tuesday that the CBN had warned banks and bureau de change (BDC) operators against the continued rejection of old series and lower denominations of the United States of American Dollars.
This is as the tariff for Band A customers of Kaduna Electric have been reviewed upward from N206.80/kWh to N209.5/kWh effective from July 1, 2024.
The management of the DisCos announced the upward review of electricity tariff for customers on Band A feeders via a notice to its customers posted on its website.
The utility company said this follows the approval given by the regulator, Nigerian Electricity Regulatory Commission (NERC) for operators to carry out monthly market review for power supply to Band A feeders based on changes in the macroeconomic parameters, like foreign exchange rate, Inflation rate and gas price.
The adjustment is attributed to the rising costs of gas, which affects the cost of power generation, as well as fluctuations in foreign exchange rates.
These factors have made it necessary for the utility company to review its tariff rates to address market shortfalls, ensure liquidity in the sector, and ensure adequate product pricing.
Recall that in April, the Commission approved an over 200 percent hike in electricity tariff for Bank A customers from N66/per kWh to N225/kWh citing increased foreign exchange rate from N919/$ to N1,463.
However, in May, the Commission approved reduction of electricity tariff for Band A customers from N225 per kWh to 206.8/kWh representing a drop of 8.1 per cent.
Though Kaduna DisCo is the first to notify the public of this upward tariff review, it is expected that the review is across all the DisCos and is the outcome of July 2024 Supplementary Order of the Multi Year Tariff Order (MYTO) from NERC. Recall that NERC is now implementing a monthly tariff adjustment to reflect changes in the average exchange rate, inflation, and other pass-through indices.
This is a departure from the previous MYTO structure which set tariffs for five-year periods with interim adjustments every six months.
The new monthly MYTO review allows NERC to quickly adjust tariffs to reflect rising costs,
Meanwhile, according to the Public Notice signed by the Head of Corporate Communication of Kaduna Electric, Abdulazeez Abdullahi, the current review which affects both prepaid and postpaid takes effect from 1st July, 2024.
While assuring it’s customers on Band A feeders of continued availability of 20-24 hours supply daily as stipulated in the Service Based Tariff regime, Kaduna Electric noted that the tariff for Bands B, C, D, and E remains unchanged.
Spokesman of the Electricity Distribution Company, Kingsley Okotie, in an information shared with our Correspondent, said the regulator approved the upward adjustment of the tariff for customers in Band A.
The increase is the third in the last four months.
Also, the Acting Managing Director, IBEDC, Francis Agoha, in a notice said the Commission approved the tariff from N206.80/kWh to N209.50/kWh for users in the category.
According to Agoha, the tariffs for Bands B, C, D, and E remain unchanged.
The statement read, “Effective immediately, the tariff will be adjusted from N206.80/kWh to N209.50/kWh. This review has been duly approved by the Nigerian Electricity Regulatory Commission (NERC) as captured in the multi-year tariff supplementary order.
“The adjustment is necessitated by several key economic indices, including fluctuations in the exchange rate, the current inflation rate, available generation capacity, and the cost of gas. These factors have significantly impacted operational costs, and the new tariff will mitigate these financial pressures while continuing to deliver high-quality electricity services.
“It is important to note that this adjustment affects only our Band A customers. The tariffs for Bands B, C, D, and E remain unchanged. We remain committed to providing reliable and efficient electricity services to all our customers across different bands.
“We understand that any change in tariffs can be a concern for our customers, and we assure you that this adjustment is necessary to maintain and improve the quality of our services. Our goal is to ensure that you receive the best possible value for your money,” Agoha said
