ABUJA, Sept 1 (Reuters) - Nigeria is pumping 1.67 million barrels of oil and condensates per day, compared with just under a million barrels some months ago, due to security improvements in the producing Niger-Delta region, the head of the state-oil firm NNPC said on Friday.
Mele Kyari, NNPC's group chief executive, said President Bola Tinubu has "re-engineered the security approach. We've already seen very significant changes in our production environment."
Africa's top oil producer recorded an average daily oil output (NGOIL=ECI) of 1.22 million barrels per day (mbpd) in the second quarter of 2023, the National Bureau of Statistics said a week earlier.
Large-scale oil theft from pipelines and wells has hobbled the country's output and crimped exports in recent years, damaging Nigeria's finances and leaving Tinubu with one of his biggest challenges.
Tinubu, who has embarked on Nigeria's boldest reforms in decades, scrapped a costly but popular subsidy on petrol that cost the country $10 billion last year. The central bank, under Tinubu, has also lifted foreign exchange trading restrictions.
Kyari said Nigeria would have been spending about 1 trillion naira ($1.3 billion) monthly on the subsidy "in today's market conditions", he said, adding that petrol consumption is down 30% to 46 million litres after the subsidy removal.
He added that foreign exchange demand for petrol imports has also declined.
"We simply don't have those resources anymore. We're not just saving money, we're also facing realities around what we can afford," Kyari said.
Nigeria's oil sector is yet to contribute positively to the country's economic growth, which slowed to 2.51% in the second quarter, due to years of underinvestment, crude-oil theft and pipeline vandalism.
In the second quarter, the dominant oil sector which accounts for the bulk of government revenue and 90% of foreign-exchange reserves, contracted 13.43%.
As the cost of building materials increase, the chairman of BUA Cement, Abdul-Samad Rabiu, has revealed that his company is in talks with the Federal Government to see ways of crashing the price of cement.
Shareholders of the company also approved the proposal of the board of directors to pay N2.80 per share in 2022 compared to N2.60 per share paid in the previous year of 2021.
Speaking at the seventh Annual General Meeting of the company in Abuja on Thursday, Rabiu disclosed that revenue rose by 40.3 per cent to N361.9bn in 2022 as against N257.3bn recorded in 2021.
He said the figure showed BUA cement outperformed its peers in cement volume growth during the period under review.
He added that the company’s profit after tax rose by 12.1 per cent to N101.1 billion, in comparison to N90.1 billion recorded in 2021.
Rabiu, while reacting to the frustrations of the Minister of Works, Dave Umahi, on contractors’ complaints of high cost cement, assured that the company is currently increasing its production capacity to enable it drive down prices, oscillating between between N4,500 and N4,800, depending on the location.
Rabiu said, “I understand that the Minister is quite concerned that the price of cement is high at almost N5,000 per tonne. I appreciate where the government is coming from and the frustration from all the issues in the country.
“The price of cement at N5,000 is not high. If we look at the rate of the US dollar today, importing cement will be at N5,000. The cement cost, insurance and freight to any port in Nigeria will be in the region of about $100 a tonne. So, at $100 per tonne, if you take N800 to $1 then it will be N4,000 per bag. Then the port cost, and transportation from the port.
“It’s not that the government wants to import cement, but they are frustrated that the price of cement is high. What we told our shareholders is that we will engage with the government to support it.
“Even though we know that the price of cement is high, it will not be cheaper if imported. We have two lines coming up by the end of the year, the Obu line 3 and the Sokoto line 5 that will give us a combined capacity of six million tonnes. By the time we have those two lines active with the current one, we will have about 17 million tonnes per annum. We are going to reduce the prices of cement once these two lines are up and running. This is the promise we are making to Nigerians.
“But you shareholders will have to expect less dividends. It’s a sacrifice you have to make to ensure cement is cheaper.”
I’ll reach out to the Minister and sit with him”, Rabiu assured.
He further revealed that his company has imported 1,000 trucks in anticipation of the two new lines coming on stream.
“We target 75-80% capacity utilisation”, he added.
EDO STATE GOVERNMENT Of NIGERIA OFFICE OF THE HEAD OF SERVICE
August, 2023
CIRCULAR LETTER
Hon. Commissioners; Special Advisers; Permanent Secretaries; Auditors-General (State and Local Governments); Heads, Extra-Ministerial Departments; Chief Executives, Boards; Agencies and Parastatals, Edo State.
RE: PROHIBITION OF PHYSICAL FILES IN EDO STATE CIVIL/PUBLIC SERVICE AND FULL TRANSITION TO PAPERLESS MODE OF COMMUNICATION
I am directed to refer to the above subject and to inform you that, preparatory to the 1st September, 2023 deadline for no-paper governance In Edo State, His Excellency, Mr Godwin Nogheghase Obaseki, Governor, Edo State has directed that with effect from Monday, 28th August, 2023, the Office of the Governor will no longer accept Physical files from any Ministry, Department or Agency of Government.
2. Hon Commissioners, Special Advisers, Permanent Secretaries and Heads of MDAs are to circulate this Circular Letter widely, while ensuring strict compliance with its contents, please.
Nyesom Wike, minister of the Federal Capital Territory (FCT) has announced plans to reintroduce monthly sanitation, in a bid to keep Abuja clean.
Wike, who stated this after a closed-door meeting with contractors handling different projects in the FCT on Monday, said that he had already briefed President Bola Tinubu on the idea that at least two Saturdays in a month would be declared for sanitation from 7a.m. to 10 a.m.
He explained that the move would enable companies supporting the FCT with logistics to go to market, and other public places to evacuate refuse. According to him, for Abuja to be clean, everybody has to cooperate.
“We must all make sacrifices. There is nothing like we are going to suffer. You also contribute to refuse. So, if you spare three hours on a Saturday at home, to clear the refuse and bring them out for us to evacuate and dispose, then that is the little way you can help. We are appealing to you (residents) to cooperate with us so we can achieve our goals”, he said.
On streetlights, the minister said that there were some improvements: “We are not there yet, but I can assure you that everywhere in Abuja will be lit up.”
For those who have distorted the Abuja Master Plan, Wike said that the issue would soon be addressed.
He added that the FCTA was working out which areas the parks and the greens were supposed to be and those that were built on. He also said that the government would look into those who refused to develop their plots for many years.
Wike said that the President Tinubu-led administration would not continue to allow undeveloped land across the city where criminals were taking refuge.
“How can you have empty land in the city and allow people to build shanties on them because you did not develop them. Some properties were built for 20 years but not completed. Go and see what is happening there, criminals have taken over the place and as a serious government, we will not allow that.
“We want to make Abuja a safe environment, but we can’t do it alone; we require the support of every stakeholder,” the minister said.
He also said that attention would be given to satellite towns beginning with a visit to the areas to determine the needs and decide on what can be done to improve their facilities and infrastructure.
He pointed out that there was no funding to intervene in all the satellite towns at the same time but one at a time subject to the availability of funds.
“It is unfortunate that contracts were awarded in virtually all the satellite towns but where is the funding? The finding is not there,” Wike said.
He said that what was approved for FCT in the 2022 national budget was N15 billion for “not less than a trillion naira worth of contracts”, stressing the need for the ministry to prioritise its spending.
The line was intended to bolster a bid for the Commonwealth Games; the games went to Glasgow, but Abuja didn’t adjust its transit plan to better serve residents, and ridership was less than 1,000 people per day.
A light rail system in the capital shut down after less than two years in service.
In July 2018, Muhammadu Buhari, the president of Nigeria at the time, boarded a gleaming new train linking the capital city, Abuja, with its airport. At the ribbon-cutting ceremony, Buhari hailed the system as “evidence that we are a government that delivers on its promises.”
Five years on, that promise looks empty. Train cars are locked away at a depot. Cavernous stations fully equipped with escalators, ticket offices, cameras and scanners stand empty, overseen by bored security guards. The faux leather couches in the VIP area are covered in bird and bat droppings. “It’s an abandoned project,” says Rowland Ataguba, an adviser to the government on rail strategy.
“Quite clearly there was no plan on how to run the operations before they built it.”
Some residents of Bayelsa on Sunday night broke into a warehouse in Yenagoa where 2022 flood palliatives were kept by the state government and stole some food items said to be already decaying.
The warehouse located along Isaac Boro Expressway in Yenagoa, the state capital, was looted by people
The Bayelsa State Emergency Management Agency (BYSEMA) said that the food items carted away were no longer good for human consumption, because it was stored during the 2022 flood in the state.
BRICS has accepted the request and added Six more countries as members of the group. They are Argentina, Egypt, Ethiopia, Iran, Saudi Arabia and United Arab Emirates.
BRICS invites six countries including Saudi Arabia, Iran to be new members
JOHANNESBURG, Aug 24 (Reuters) - The BRICS group of nations has decided to invite six countries - Argentina, Egypt, Iran, Ethiopia, Saudi Arabia and the United Arab Emirates - to become new members of the bloc, South African President Cyril Ramaphosa said on Thursday.
The debate over expanding the BRICS bloc, comprising Brazil, Russia, India, China and South Africa, has topped the agenda at a three-day summit in Johannesburg ending on Thursday.
While all BRICS members have publicly expressed support for growing the bloc, there were divisions among the leaders over how much and how quickly.
Dozens feared killed, others trapped as Abuja high-rise building collapses
A multi-storey building collapsed at Lagos Street in Garki, Abuja killing about 37 people while many others are trapped on Wednesday.
Confirming the incident, the Federal Emergency Management Authority said that 37 people had been rescued, while two were fatally injured.
The Director General of FEMA, Dr Abbass Idriss, in a quick release on Thursday morning, said the 37 rescued persons had all been taken to various medical facilities in Abuja, and that rescue efforts were ongoing, in collaboration with other rescue agencies. “37 persons were rescued alive, while 2 others were fatally injured. Meanwhile, FEMA Search and Rescue team are awaiting excavators to intensify the search to ensure that no victim is left in the rubble of the collapsed building”. “A combined team of the FCT Emergency Management Agency (FEMA), Federal Road Safety Corps,(FRSC),FCT Police Command, and the VIO are on the ground to carry out the rescue efforts”.
An eyewitness who was at the scene confirmed to an online platform (not The PUNCH) that the building housed many apartments, while the ground floor was full of shops.
He said the building collapsed during the downpour which started around 11 pm on Wednesday.
According to him, “There was wailing all over the place after the building collapsed. Dozens of people are either dead or trapped as the building is fully occupied.
“It was a scene of helplessness with people screaming and going helter-skelter, while the heavy rain continues,” he added.
As of the time of filing this report, officials of emergency agencies were yet to arrive at the scene of the incident.
The Federation Account Allocation Committee (FAAC) says it shared the sum of N966.11 billion among the three tiers of government in July 2023.
The committee disclosed this in a communique issued after its latest meeting in Abuja on Tuesday, according to a statement by Stephen Kilebi, director, press and public relations at the Ministry of Finance.
The meeting was chaired by Wale Edun, the minister of finance and the coordinating minister of the economy.
The July disbursement is higher than the amount (N907.05 billion) shared in June by N59.06 billion (6.5 percent).
The total amount shared includes funds from gross statutory revenue, value-added tax (VAT), electronic money transfer levies (EMTL), and exchange rate difference revenue, the committee said.
“The N966.11bn total distributable revenue comprised distributable statutory revenue of N397.42bn, distributable Value Added Tax revenue of N271.95bn, Electronic Money Transfer Levy revenue of N12.84bn and Exchange Difference revenue of N283.904bn,” the communiqué reads.
FAAC said from the total distributable revenue of N966.11 billion, the federal government received N374.49 billion, the state got N310.67 billion and the local governments were given N229.41 billion.
According to the committee, a total sum of N51.55 billion was shared with the relevant states as 13 percent derivation revenue.
The panel also disclosed that gross statutory revenue of N1.150 trillion was received for the month of July 2023, which was lower than the sum of N1.152 trillion received in the month of June 2023 by N2.5 trillion.
FAAC said from the N397.42 billion distributable statutory revenue, the federal government got N190.49 billion, the states received N96.62 billion, the local governments were allocated N74.49 billion, while N35.82 billion was shared with the relevant states as 13 percent derivation revenue.
The committee also said the gross revenue from VAT was N298.79 billion — higher than the N293.41 billion recorded in the month of June 2023 by N5.38 billion.
From the VAT revenue, the communique said, N40.79 billion was given to the federal government; N135.97 billion was allocated to the states, while the local governments got N95.18 billion.
In addition, out of the N12.84 billion EMTL, the federal government got N1.93 billion, the states received N6.42 billion and the local governments were given N4.49 billion.
FAAC also disclosed that from the N283.9 billion exchange difference revenue, the federal government received N141.28 billion, and the states got N71.66 billion.
While N55.25 billion was allocated to the local governments, N15.72 billion was shared with the relevant states as 13 percent mineral revenue.
BREAKING: The embattled CBN Governor, Mr. Godwin Emefiele, secretly sold 3.4 billion dollars to Dangote, IN ONE TRANSACTION, at a rate other than the prevalent rate of dollars in the market at the time, to fund his refinery project.
I’m tight-lipped.
Take a listen to this man👇
BREAKING: The embattled CBN Governor, Mr. Godwin Emefiele, secretly sold 3.4 billion dollars to Dangote, IN ONE TRANSACTION, at a rate other than the prevalent rate of dollars in the market at the time, to fund his refinery project.
The Federal Government is offering zero customs duty and zero value-added taxes (VAT) on the importation of compressed natural gas (CNG) conversion kits into the country.
Ajuri Ngelale, the Special Adviser to the president on Media and Publicity stated this during an interview on Friday night via Channels Television.
The reason for this is to boost the inflow of CNG conversion kits into the country while local CNG kit assembly plants are set up in the country.
He said that the government recognizes the need to crash energy prices in the country after the removal of fuel subsidy which has affected the citizenry when it comes to increased food and transportation costs.
According to Ngelale, the Presidential CNG Initiative (PCNGI) which is chaired by the president’s chief of staff, Femi Gbajabiamila, will ensure that mass transit systems are direct beneficiaries of the CNG solution to remove burdens from low-income earners who use okadas, keke apps.
According to Ngelale, the CNG plan will be executed in the states, but it will be done in such a way that it is guided by private sector participation and the regulation of federal authorities.
Implementation strategy
Ngelale said that the foundation has already been laid with the agreement between Nipco Gas Limited and the Nigerian National Petroleum Company Limited on the set up of CNG as an alternative fuel in Nigeria. He said there will be a network of mass transit systems that are operating exclusively over some time, CNG-fueled buses.
He said:
“This is not a federal or state giveaway, this is a meticulously arranged private sector partnership with the Federal Government. So, we are looking at putting together a minimum of N200 billion at the outset to be able to provide a counterpart funding mechanism for the private sector to come in with certain financing guarantees and also tax relief/incentives for those who will set up CNG-powered businesses.”
What you should know:
Under the NNPC-NIPCO strategic partnership, 35 state-of-the-art CNG stations will be constructed nationwide, including three (3) Mother stations. Once fully operational, the stations can service over 200,000 vehicles daily, thereby significantly reducing the cost of automobile fuel for Nigerians and the cost of transportation.
The CNG project will be rolled out in phases. The first phase, comprising 21 CNG stations, will support intra-city transportation and be ready by the first quarter of 2024.
The second phase, comprising 35 CNG stations, will support inter-city transformation and will be ready by late 2024. This will be further complemented by an additional 56 stations to be deployed by NNPC Retail across the country.
In a bid to enhance the efficiency of the Nigerian Foreign Exchange Market, the Central Bank of Nigeria (CBN) has unveiled a series of operational changes for the Bureau De Change (BDC) segment.
The announcement, made on August 17, 2023, outlines key measures aimed at streamlining and improving the BDC operations.
Under the new framework, the spread on buying and selling by BDC operators is set to fall within a permissible range of -2.5% to +2.5% of the Nigerian Foreign Exchange market window’s weighted average rate from the previous day.
This move is expected to provide more stability and transparency to exchange rate fluctuations, ultimately benefiting both BDC operators and the general public.
Another significant alteration is the mandatory submission of periodic financial reports by BDC operators.
These reports, including daily, weekly, monthly, quarterly, and yearly renditions, are to be submitted through the upgraded Financial Institution Forex Rendition System (FIFX), tailored to meet the specific requirements of each operator.
This change aims to enhance oversight and ensure that the BDC sector operates with greater accountability.
The circular further emphasizes that failure to submit accurate returns within the specified timeframe will result in sanctions, potentially leading to the withdrawal of operating licenses.
Even in cases where BDC operators have had no transactions during a given period, they are required to submit nil returns, thereby fostering a culture of compliance and thorough record-keeping.
All BDC operators and the public are urged to familiarize themselves with these new guidelines and adhere to them meticulously.
By implementing these measures, the Central Bank of Nigeria anticipates a more robust and well-regulated BDC segment that aligns with broader efforts to enhance Nigeria’s foreign exchange market efficiency.
What this means
In a significant shift, this move marks the re-entry of BDCs into the country’s foreign exchange market.
This move marks a departure from previous policies, including those enacted under the tenure of former CBN Governor Godwin Emefiele, which had temporarily excluded BDC operators from participating in the market.
The new policy signifies a concerted effort by the central bank to reengage BDC operators and reintegrate them into the foreign exchange landscape.
1. Jumia once called the "Amazon of Africa" just released their financial results for Q2 & they are not looking good. The former unicorn, has stopped growing & is facing challenges that could bring down one of the most hyped start-ups from Africa.
Analysis + V11s below 👇🏾 #Jumia
2. The first concern is the -15.4% decrease in revenue combined with a operating loss of $23m. Usually a company has a revenue or profit problem, Jumia has both. That's like a football team that can't score goals and also can't defend.
3. Jumia has always made huge losses. What saved it in the past was the African growth story. Even in their 2019 IPO prospectus the word "growth" appeared over 100 times e.g. in one section alone Jumia mentions growth 10 times (yellow highlights).
4. But now Jumia is not growing and the only "good news" is that it is losing less money than before. However, this improvement is driven only by brutal cost cutting measures with expenses down -47% 🤯.
Jumia's most tricky problem however is going to be cash...
5. Jumia has $166m in cash, which, if the Q2 cash utilization of $38m continues, will last ~13 months. While this doesn't always mean disaster (Jumia has been there before), there is a significant difference this time that changes everything - the stock price... 🆘
6. In 2020, Jumia was low on cash. Fortunately its stock was flying so they issued shares & raised $231m at $30.51 per share. They did this again a few months later in 2021, and raised $341m at $38.90 per share. Their stock had helped them raise $571m in cash in a few months.
7. Now however, Jumia's stock price has crashed from $38.90 to $3.05 (+90% drop). The shares issued in 2020-21 that raised $571m, would today raise less than $57m which wouldn't last 6 months. Also investors who had bought shares made big losses & so less likely to be interested.
8. Jumia could theoretically try raise cash from debt financing e.g. from banks. However even they mention that this is unlikely due to history of losses, negative cashflows etc.
So with both issuing new shares and debt financing being challenging what options does Jumia have?
9. Cut costs and try stay alive for as long as possible. This is exactly what Jumia is trying to do. Jumia has been incredibly aggressive on cost reductions e.g Sales & Advertising expenses down 74% 🤯 compared to last year.
10. Jumia is so focused on cost reduction they have even adjusted their EBITDA guidance to indicate they will save ~$10m more than planned.
I also think was done to show some element of progress to investors amidst all the bad news.
But will all these measures work?
11. Ironically I wrote about cost cutting this week in another thread and the principle still applies. Cost cutting cash only take you so far. Ultimatelty you need to deal with the underlying business issues.
This is where my concern is...
12. Management is taking the right steps but may have inherited a fundamentally flawed business. I reconstructed a Quarterly P&L using historic best performance for each line. This is represents the perfect case scenario but even with that Jumia is still loss making.
13. This leads me to thinking that Jumia might be structurally unprofitable, like a business selling $100 bills for $50. It will grow and have lots of demand, but you can never make it profitable. At best, you can decrease the losses - which seems to be what Jumia is doing now.
14. The key lesson here is that, although growth is crucial, especially for startups, it should not be assumed that growth and scale will automatically lead to profitability.
If you can't deliver on profit you will eventually have to pay for it.
15. Thanks for reading. If you found this insightful, please Like/Retweet the first tweet below and follow me @tmukogo for more.
I write on the finance & strategy behind the most important companies in Africa and the rest of the World.
Investors react negatively after Jumia’s tepid Q2 results
Jumia, the "Amazon of Africa", is facing a reclining liquidity position amid losses and unprofitability Image source: Textmaster
Investors baulked after Jumia’s Q2 results showed the company lost 1 million active customers despite reporting its lowest loss in four years.
After Jumia shared its financial results for the second quarter of 2023, investors reacted negatively, causing its shares to close at a 17% low on Tuesday. Jumia reported a 15% decline in revenue, with other metrics also declining. Gross Merchandise Value (GMV), number of orders and active customers declined compared to Q2 2022. Jumia also lost 1 million active customers between Q2 2022 and Q2 2023.
One big positive in Jumia’s report was that it reduced its losses to the lowest in four years. Reducing its losses is significant if the company becomes profitable. Yet there are many other worries. Its lower operational losses came from a massive reduction in sales and advertising spend. A significant reduction in its workforce also reduced its General and administrative expenses. While lowering costs is one part of the lever, increasing revenue is the second, and this is where Jumia fell short in Q2.
Macroeconomic headwinds across many of its African markets have made business difficult. Inflation in key markets like Nigeria, Ghana and Egypt and currency devaluation continues to hinder growth; it contributed 14 basis points to the reduction in the company’s GMV. The biggest challenge remains the slow growth of these economies and the decline of the purchasing power of citizens. It remains to be seen if Jumia can be profitable despite the economic terrain.
One thing is clear: Jumia is throwing the kitchen sink at it in search of revenue growth. It has done an about-face on its strategy of focusing on groceries and everyday items. Jumia also insinuated that the theory that selling groceries and everyday items would improve stickiness may not be accurate. “We continue to recalibrate our product and service portfolio, moving away from the most profitable categories with limited consumer lifetime value,” said the company’s CEO, Francis Dufay.
Critically, one effect of reduced consumer purchasing power is that people cut down on non-essentials or switch to cheaper alternatives. Even if Jumia offers groceries, it may not have the more affordable alternatives many customers can find offline.
Jumia is betting on JumiaPay, citing “strong development potential to process payments on behalf of third-party merchants.” Dufay added, “In line with our objective of making JumiaPay an even more effective e-commerce enabler, we are significantly increasing the penetration of JumiaPay in both our physical goods and food delivery platforms.”
Ibrahim Badamasi Babangida GCFR (born 17 August 1941) popularly known as IBB; nicknamed, "Maradona" or "The Evil Genius", is a retired Nigerian Army general who ruled the Federal Republic of Nigeria from 27 August 1985 until his resignation in August 1993. He served as Chairman of the Armed Forces Ruling Council from 1985 to 1993 and Chief of Army Staff from 1984 to 1985; going on to orchestrate his seizure of power in a palace coup d'ètat against Muhammadu Buhari. He rose through the ranks of the Nigerian Army fighting in the Nigerian Civil War and at various times being involved in all the military coups in Nigeria, before advancing to the full-rank of a General and ultimately as Commander-in-Chief of the Armed Forces; and as an unelected President and military strongman from 1985 to 1993, ruling for an uninterrupted period of eight years. His years in power, colloquially known as the Babangida Era, are considered one of the most controversial in the military history of the country, and characterized by a burgeoning political culture of corruption in Nigeria, with Babangida and his regime estimated at least 12 billion dollars (23.9 billion today).
The Babangida government oversaw the establishment of a state security apparatus; survived two coup d'ètat attempts and the subsequent execution of Mamman Vatsa (1985) and Gideon Orkar (1991) alongside the trial of hundreds of soldiers; assassination in Lagos of Dele Giwa (1986). The regime also faced a series of ethnic and religious outbreaks related to the fallout of Babangida's decision to increase cooperation with the Muslim world and rise in extremist tendencies. On the continent his rule projected the country as a regional power with diplomatic successes including the Abuja Treaty and the military engagement of Nigerian troops in Liberia and Sierra Leone.
Abroad, Babangida's military government cemented traditional relations with the English-speaking world of the United States and United Kingdom; and implemented economic liberalization and the privatization of state-owned enterprises alongside a national mass mobilization. The fall of Babangida and his regime was precipitated by the transition towards the Third Nigerian Republic and subsequent militarization of politics in the 1993 presidential election which Babangida annulled.
Early life
Ibrahim Babangida was born on 17 August 1941 in Minna to his father, Muhammad Babangida and mother Aisha Babangida. He received early Islamic education before attending primary school from 1950 to 1956. From 1957 to 1962 Babangida attended Government College Bida, together with classmates Abdulsalami Abubakar, Mamman Vatsa, Mohammed Magoro, Sani Bello, Garba Duba, Gado Nasko and Mohammed Sani Sami. Babangida joined the Nigerian Army on 10 December 1962, where he attended the Nigerian Military Training College in Kaduna.
Dictatorship
Babangida ruling by decree promulgated his official title as the President and Commander-in-Chief of the Armed Forces of the Federal Republic of Nigeria and placed Muhammadu Buhari under house arrest in Benin until 1988. He established the Armed Forces Ruling Council (AFRC) as the highest lawmaking council serving as Chairman; he also restructured the national security apparatus, tasking General Aliyu Gusau as Co-ordinator of National Security directly reporting to him in the president's office he created the: State Security Service (SSS), National Intelligence Agency (NIA) and Defence Intelligence Agency (DIA).
Family
Babangida was married to Maryam Babangida from 1969 until her death in 2009. They had four children together; Aisha, Muhammad, Aminu, and Halima. On 27 December 2009, Maryam Babangida died from complications of ovarian cancer.
EXPLAINED: What you need to know about @nnpclimited's $3billion Emergency Crude Repayment Loan from Afrexim Bank @afreximbank
1. What is the $3 billion loan about? The NNPC Ltd. secured an emergency $3 billion crude oil repayment loan from AFREXIM Bank. This is not a crude-for-refined products swap but an upfront cash loan against proceeds from a limited amount of future crude oil production.
2. Is this loan risky for NNPC Ltd. or the Nigerian Treasury? No. The exposure for NNPC Ltd. is very limited, covering just a fraction of their entitlements. Additionally, there are no sovereign guarantees tied to this loan.
3. What's the benefit of this loan to Nigeria? The loan will assist NNPC Ltd. in settling taxes and royalties in advance. It will also equip the Federal Government with the necessary dollar liquidity to stabilize the Naira, with limited risk.
4. How will the loan be disbursed? The funds will be released in stages or tranches based on the specific needs and requirements of the Federal Government.
5. Will this affect fuel prices? A strengthened Naira as a result of this initiative will lead to a reduction in fuel costs. This means that if the Naira appreciates in value, the cost of fuel will drop and further increases will be halted.
6. What about subsidies? Are they coming back? No. A stronger Naira will result in lower prices from the current level, making subsidies unnecessary. The deregulation policy remains unchanged.
7. How will the loan be repaid? The loan will be repaid against a fraction of proceeds from future crude oil production. It's a strategic move that ensures a balance between our current economic needs and future production capabilities.
8. What is the difference between this and previous swap deals? This is not a crude for refined products agreement where the government does not earn any proceeds from the swap.
OPEOLUWA also explains:
This is great news. This is a form of Volumetric Production Payment (VPP). It is a structured investment that involves the owner of an oil or gas interest ( Nigeria/ NNPC) borrowing money( $3 billion) against a specific volume of production of crude oil. The investor or lender (Afrexim bank) receives a stated monthly quota of crude oil often in raw output, which is then marketed by the VPP buyer( Afrexim ). Buyers could include investment banks, hedge funds, energy companies, and insurance companies.
Simply put, Afrexim is borrowing us $3 billion which will be used to help stabilize the naira in exchange for a daily quota of our crude oil production.
This is part of PBAT’s fiscal ideology he talked about in his article in 2015: “Oil is a passive asset in the ground. When cash-strapped yet in need of more revenue presently, a nation should also consider issuing guarantees on the future oil shipments on a price certain paid now; or selling a portion of its equity in the joint ventures.
Some may call this a variant of an oil futures. Whatever it is called, it should be considered particularly as a measure to improve our foreign currency position.”
For the first time we have a president with an ideology and he seem to be following through on his ideologies.
MISLEADING AND INACCURATE PUBLICATION: GUINNESS NIGERIA PLC IS NOT SHUTTING DOWN OPERATIONS, GUINNESS REMAINS RESOLUTE AND COMMITTED TO NIGERIA
The attention of the management of Guinness Nigeria Plc has been drawn to reports published by some blogs and online media platforms which wrongfully claimed that the company may be shutting down operations in Nigeria allegedly due to the impact of some reported forex losses in recent times.
It is important to clarify that this publication and the sensational headlines being circulated by these blogs and online media platforms is baseless and misleading as Guinness Nigeria at no time, put out this erroneous communication nor shared any statement that can lead to such inaccurate conclusions.
The management of Guinness Nigeria Plc. will like to categorically state that Guinness Nigeria has no plans to shut down its operations in Nigeria, contrary to orchestrated false allegations making the rounds.
We find the claims misleading and mischievous. The current FX shortages being experienced in the country is a challenge that Guinness Nigeria is trying to navigate, just like every other organization. As a company, we remain strong, stable and will continue to deliver value to our esteemed shareholders, meeting the needs of our dear consumers, while providing opportunities to our valued employees.
Guinness Nigeria strongly believes in the resilience of the Nigerian economy and we look forward to a recovery on the back of the measures being taken by the government. We remain fiercely committed to Nigeria and to having a positive impact on those around us, including our consumers, communities and the environment as we have done over the past seventy-three years of operations in Nigeria.
To this end, we would welcome formal enquires on any of our activities addressed to the corporate communications team at info.gn@diageo.com. Such requests will be attended to in a timely manner.
STATEMENT BY PRESIDENT BOLA TINUBU ON DEATH OF MILITARY OFFICERS IN NIGER STATE
The tragic loss of our gallant officers and soldiers in a helicopter crash at Chukuba Village near Shiroro, Niger State, yesterday, brought immense sadness to me.
These officers and men were answering the call of duty while on an evacuation mission. In their dedicated service to our beloved country, they paid the ultimate price.
While we mourn their untimely departure, we will forever remember them, not just as servicemen, but as national heroes who gave their all for the peace and security of our country.
They will always be remembered as courageous men who did not consider the perils and dangers of their national duty as paramount to their sacred mandate of ensuring that their fellow countrymen and women can live in peace.
We salute their sacrifice, devotion and loyalty to our dear nation - the nation they loved and served to the end.
On behalf of a grateful nation, I extend my condolences to their families, the Chief of Defence Staff, the Chief of Air Staff, the Chief of Army Staff, the Chief of Naval Staff, and the entire Armed Forces of the Federal Republic of Nigeria.
May God grant them eternal rest.
Bola Ahmed Tinubu,
President and Commander-in-Chief of the Armed Forces, Federal Republic of Nigeria
Some agents working for loan apps, which include Palmcredit, Easybuy, Xcrosscash, and Newcredit, have shared some sordid tales of how their employers allegedly made them start disbursing loans to people that never applied nor requested loans and would later begin to harass them for repayment with interest.
The mandate from their employers is to get loans disbursed to as many people as possible on a daily basis and by all means.
And that comes with a target that must be met: For some daily conversion is 20, while others have it as high as 35 and the target often becomes higher as the need arises, according to the agents.
Conversion in the loan app parlance means the number of people each agent disbursed loans to on a daily basis.
To arrive at the conversion, each agent is given 270 mobile numbers of potential borrowers every day, the first target is to achieve at least 90 connects, this means that out of those 270 phone numbers, some of which may be switched off or no longer in use, they must be able to talk to at least 90 people, from which they must get at least 20 people to disburse loans to.
Consequences of failure According to some of the agents who spoke to Nairametrics under the condition of anonymity for the fear that the company might come after them, latching onto the high unemployment rate in the country, the operator of the apps stipulates termination of employment as the consequence of failure to meet the conversion target.
They, however, give agents the opportunity of being trained 3 times to learn more about how to cajole people into taking loans before being booted out if the targets are still not met.
“Each day, we are assigned 270 numbers to call and we are expected to connect at least 90, that is, have communication with at least 90 customers. Some of the numbers could be switched off, and there could be hang-ups due to poor network, but you have to connect 90. The worse is the conversion rate target is not static, this week you could be asked to have a conversion rate of 35-40, and the next week it could be 45. Conversion here means the number of people who took loans through you,” one of the agents told Nairametrics.
Another agent whose daily conversion target is 20 said:
“I am in the nano department that handles Palmcredit and Xcrosscash. We are expected to achieve 20 conversions daily and this sums up to 120 conversions in a week. If you missed your target in a week, you will be sent for training, if you missed another week, you will be trained again until the third time. If you miss the target a 4th time, your appointment will be terminated.
So, to meet this target, agents most times do disburse loans to people that did not apply so far they have the loan apps on their phones and had taken a loan before. This is possible because we have access to the customers’ accounts on the apps. Again, on the apps, there are some settings that require the customers to stop automatic loans, but many don’t see it, which means that their account can be credited with loans at any time even when they did not apply.”
Shady interest rates
For these loan apps, it is not just about pushing out the loans, the motivation is the high-interest rates attached which the borrowers must pay. Curiously, the loan apps are not open when it comes to the rates charged on their loans, which often led to some borrowers getting stuck in the process of repayment.
One of the agents narrated:
“Easybuy sales script trains agents to pitch a percentage as low as 8% to customers whereas a customer that applies for 100,000 and chose the repayment tenure of 6 months pays back over 70,000 as interest charges, which is 70%. We have complained about the high-interest rate as it is also affecting us in getting conversions, but it only keeps increasing by the day.
“Secondly, we have sold by cajoling customers on promos that never were in place, an example was during December last year when we were asked to pitch a New Year Promo to the customers, where they could win iPhone 11 pro max, but there was nothing like that. Maybe some people can win tomorrow anyways.”
Protest and appointment termination Tired of the working conditions and what they described as unrealistic targets being set by their employer, some of the agents decided to stage a protest to demand better working conditions.
According to them, the management of the company handling the loan apps, Emtill Solutions Limited got wind of the plan and hurriedly issued an undertaking to be signed by all staff.
Part of the undertaken, a copy of which was sighted by Nairametrics, read:
“I will contribute to maintaining a peaceful and harmonious workplace for all employees. I will refrain from any actions or behaviors that may incite or contribute to riotous situations. “I understand that engaging in riotous behavior is a serious violation of company policies and may result in disciplinary action up to and including termination of employment. I am prepared to accept responsibility for my actions and face the consequences should I fail to abide by this undertaken.”
Agreement form agents are made to sign While some of the agents refused to sign the undertaking and went on to stage the protest within the premises of the company, 7 of them were handed their employment termination letter the following day. A copy of the termination letter dated August 4, 2023 reads:
“We are sorry to inform you that your appointment with EMTILL SOLUTION LIMITED as SALES AGENT is terminated with immediate effect, which is also your last working day. You are hereby required to hand over any company material, equipment, and documents in your possession to the Human Resources Department.” When contacted, the Human Resource Manager at Emtill Mr. Olurankinse Oludotun confirmed that indeed that the agents were sacked for protesting.
According to him, they were made to sign an undertake which forbid them from staging any protest.
“The content of the undertaken does not suggest that they cannot complain about the work, but it says they cannot make a protest while at work. What we are saying is that if there is a need for them to complain, they should use the official means to complain, not protest,” he said.
Company denies allegations While denying the claims by the agents that the working condition in the company was bad, he admitted that “there is always room for improvement.” Oludotun also described every other allegation levelled against the company as ‘untrue’.
When asked why the company encourages the disbursement of loans to people that did not request it in order to meet targets, Oludotun said:
“Well, you will agree with me that employees have a way of badmouthing the company. For an employee to say they are being mandated to push loans to people that did not request, it is very wrong.”
On the claims that the agents are being given unrealistic targets that force them to be pushed out loans by all possible means, the HR Manager said: “That is not correct.”
Between Emtill and Newedge Finance While the apps operated by the agents are owned by Newedge Finance Limited, a loan app company fully approved by the Federal Competition and Consumer Protection Commission (FCCPC), the agents were employed by Emtill Solutions Limited, a company that prides itself as “a leading contact centre in Nigeria, that provides both inbound and outbound multichannel customer service.”
This suggests that Newedge Finance outsourced the management of its apps’ sales services to Emtill.
The agents, however, insisted that they were working for Newedge because all the customers they were dealing with were made to pay into Newedge finance accounts.
When contacted, the CEO of Newedge Finance Limited, Ms. Jessica Ugwuoke, denied any knowledge of the employees that were sacked but was evasive about the company’s relationship with Emtill.
“Emtill is a totally different company, we are Newedge Finance Limited, that is all I can say,” she told Nairametrics.
On the list of approved digital lenders just released by the FCCPC, Newedge Finance has three loan apps registered to its name. These include Palmcredit, Easybuy, and Newcredit.
Loan apps users continue to lament Aside from the issue of harassment and defamation of borrowers by loan apps which prompted the FCCPC in collaboration with other sister government agencies to come up with the registration framework for digital lenders, many Nigerians have continued to lament different atrocities of loan apps in the country.
Now common across several loan platforms in the country is the practice of forcing loans on people.
Unfortunately, this is not peculiar to unregistered loan apps as many of the currently registered apps are also found guilty of this sharp practice.
Sharing her experience with one of the loan apps, a victim, Joseph Oluwakemi, said:
“I was a victim of Hen loan last month. They paid a loan I never requested into my account, I complained and they took back the money. After the seven days lapsed they started threatening me for the interest. The agent tagged my picture with my BVN and sent it to all my contacts, describing me as a criminal.” Borrowers are also lamenting the high-interest rates being charged by these loan apps, which oftentimes, are not fully disclosed before the loans are taken.
Many often realize in the course of repayment that they have to pay more than the interest rate stated before they took the loan.
Below are screenshots from the responses of agents( image attached)
Deputy Cabinet Director of former President Buzoum raises alarm over spate of attacks, says insecurity has worsened
Insecurity and Terrorism, first consequences of the ongoing hostage taking in Niger, preventing the President of the Republic SEM Bazoum Mohamed from performing his duties fully.
In just two weeks of interruption by the Head of State, Supreme Chief of Armies, we have recorded six (06) complex attacks on military positions, twice as many as those recorded in two years of SEM Bazoum Mohamed's power.
Indeed, what General Tiani doesn't know is that the fight against terrorism is not a classic military operation where you know where the enemy is hiding, just take the right weapons and have a little courage and boom! It's done, the job is done, we are going home!
Terrorism is a complex phenomenon that requires a careful specific approach and simultaneous consideration of several technical and political aspects.
That is why as soon as Bazoum’s arrival as head of state, he took action on the situation and immediately set up a multidisciplinary team to which he trained to think, analyze and propose an integrated national strategy against terrorism and terrorism, stabilization of conflict zones
This team did a laborious job and proposed to the Head of State a four-axis strategy, the first is the military axis, the second is the political dialogue and security diplomacy axis, the third is the security axis and the fourth is socio-economic development.
The primary objective of the military axis is to develop a territorial link to block terrorists' penetration into Nigerian territory. The grids will be maintained by light units and interoperative close commands for the efficiency of action and especially mutual protection.
The second axis has a double objective: i) to reach out communities to understand the key players of extracting Nigerians engaged in conflict by giving them opportunities to return to normal civil life and ii) security diplomacy aims to assess and choose strategic partners to to benefit from their technical skills for third dimension mastery.
Well since taking hostage, General Tiani fearing a military intervention to release him has broken all the link fighting terrorism and demobilised all the units he brought to Niamey for his own protection as he also sent forty (40) vehicles of the special forces to keep his parents in his native village in Toukounous.
Also, General Tiani, who has not left Niamey for twelve (12) years, has ended the strategic partnership that allows us to master the air dimension, completely ignoring the enormous services we get.
As a result, the linking has become porous and the air means are missing, the terrorists have to only advance to the few remaining military positions to slaughter them!
Mr. Daouda Takoubayoke Deputy Cabinet Director of the President of the Republic S.E.M Mohamed Bazoum
Africa’s biggest phone firm sees shares rise 6,6% on deal
Deal done at decent valuation in context of global payments
MTN Group Ltd., Africa’s biggest wireless carrier, said Mastercard Inc. agreed to take a minority stake in its financial-technology business, which the company values at $5.2 billion.
“Signing of the definitive investment agreements is expected to occur in the very near term,” MTN Chief Executive Officer Ralph Mupita said in a statement on Monday.
Africa’s young, tech-savvy population are increasingly using their mobile phones to bridge gaps in services including banking. That’s opened a lucrative and fast-growing space in the fintech sector for wireless carriers. Much of the attention to date has been on mobile-payment systems, with a wave of fast-growing startups including Flutterwave Inc. and Interswitch Ltd. emerging in the industry.
MTN rivals including Airtel Africa Plc, Nairobi-based Safaricom Plc and South Africa’s Vodacom Group Ltd. are all at various stages of transforming from basic voice and text mobile use to digitalization, with a broad aim of separating and monetizing the businesses in the longer term.
Airtel has already brought in Mastercard as an investor in its mobile-money unit. India’s Jio Platforms Ltd., the digital arm of billionaire Mukesh Ambani’s Reliance Industries Ltd., set an earlier precedent by attracting capital from Facebook Inc. and Silver Lake Partners in 2020.
MTN has said previously it plans to raise 25 billion rand ($1.3 billion) from asset sales. Its most recent disposals include the sale and lease-back of its South African mobile-phone towers and a plan to sell some of its West African assets. It also has a stake in New York-listed tower owner IHS Holding Ltd. that it may sell down, although the tower firm’s low trading prices and a dispute with its management has delayed any sale in the near-term.
Politics › Crude Oil Production Rises To 1.67 Million Barrels Per Day - NNPCL by nlfpmod(mod): 8:55pm On Sep 01, 2023
