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UBA Partners NBA Young Lawyers Forum, to Foster Professional Growth of 50,000 Practitioners

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Africa’s Global Bank, United Bank for Africa (UBA) Plc, has announced a strategic partnership with the Young Lawyers Forum (YLF) of the Nigerian Bar Association (NBA) with the aim to propel the professional development of over 50,000 young legal practitioners across Nigeria, by way of academic sponsorships as well as trainings, with reputable agencies in a bid to enhance their legal careers.

The partnership was announced on Friday, July 24, at the bank’s headquarters, UBA House, in Marina, Lagos. This collaboration aligns with UBA’s longstanding commitment to youth empowerment and Nigeria’s socio-economic advancement.

Under this initiative, UBA will provide comprehensive support to the NBA-YLF, a subsidiary of the Nigerian Bar Association that represents lawyers with less than 7 years of post-call experience. The bank’s involvement is expected to enhance these emerging legal professionals’ career trajectories significantly.

Speaking on the partnership, Group Head, Marketing and Corporate Communications, Alero Ladipo emphasized the bank’s dedication to nurturing young talent and in the process strengthening the legal framework that ensures justice is effective in the country. “The partnership with NBA-YLF aligns strategically with UBA’s commitment to youth development and community engagement while reinforcing the bank’s dedication to fostering professional growth”.

“At UBA, we recognize that empowering the youth is crucial to Nigeria’s future growth and advancement”, Ladipo said. “By investing in the professional growth of young lawyers, we’re not just supporting individuals; we’re strengthening the very fabric of our legal system and, by extension, our nation’s development,” she added.

Also speaking, UBA’s Brand Project Manager, Lemachi Chris Asoluka, expressed enthusiasm about the partnership and how such empowerment is invaluable in the present legal landscape.

“This collaboration with UBA marks a significant milestone as it provides unparalleled opportunities for young lawyers to gain the skills and connections necessary to thrive in today’s competitive legal landscape.” Chris -Asoluka said.

United Bank for Africa is one of the largest employers in the financial sector on the African continent, with 25,000 employees group-wide and serving over 45 million customers globally. Operating in twenty African countries and the United Kingdom, the United States of America, France and the United Arab Emirates, UBA provides retail, commercial and institutional banking services, leading financial inclusion and implementing cutting edge technology.

PSC CHAIRMAN, ARGUNGU EXAMINES CHALLENGES AND THREATS IN NIGERIA’S PUBLIC PROCUREMENT PRACTICES ..CALLS FOR INCREASED PENALTIES AND TRANSPARENCY

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By Ebinum Samuel

The Chairman of the Police Service Commission, DIG Hashimu Argungu rtd has called for increased penalties and Transparency in Nigerian Procurement activities and practices. He lamented the recalling issues of circumventing of some provisions of the Procurement Act such as contract splitting and variation.

The PSC Chairman spoke today, Wednesday, August 7th, 2024, at the fifth edition of the Commission’s ‘Arena of Knowledge’ weekly lecture series held at it’s Parry Osayande Auditorium in Jabi Abuja. He presented a paper on Public Procurement in Nigeria: Police Service Commission template,Process and Practices where he traced the Structure of a Procurement Planning Committee in Government Ministries and Parastatals; the basic three categories of contract in public Procurement Act, 2007; and Rules of the Contracting Game which the procuring Entity should comply with. He also looked into the Legal Framework and Administrative Instruments in Public Procurement in Nigeria and the Liabilities and Consequences of the Implications for non-compliance.Dr. Argungu frowned at the non-operationalization of the National Council on Public Procurement and lack of proper administrative control and Oversight function over Ministries, Departments and Agencies in contract award and execution by the Bureau of Public Procurement.

He also spoke on the challenges of delays in processing and approval of request of “NO Objection” by the Bureau and inadequate funding to sustain capacity building. He also noted that mismatch between budgetary appropriations and the actual release of funds is a serious threat in Nigerian Public Procurement practices.According to the Commission’s image maker, Ikechukwu Ani, DIG Argungu mentioned delay in the investigation and prosecution of Offenders of the Provisions of the Procurement Act; delays in payment and sometimes non-payment of contractors for work done and weak inforcement that have given rise to pervasive culture of non-compliance.He called for the elevation of Procurement authority to high level “presumably to a talented person of high integrity)”, strengthening Anti-corruption measures, enhancing the legal and regulatory framework and mitigating political influences. Mr. Aliyu Ahmad, Head, Procurement Unit of the Commission in his presentation on the same subject matter said Public Procurement can stimulate economic activity, create jobs and support local businesses.

He added that it also promotes openness, fairness and accountability in government spending. Mr. Ahmad said Public Procurement ensures government gets the best value for its money, reducing waste and inefficiency and also facilitates the development of critical infrastructure such as roads, bridges and public buildings.According to him “good Procurement is impartial, consistent and therefore reliable. It offers all interested contractors, suppliers and consultants a level playing field on which to compete and thereby, directly expands the purchaser’s options and opportunities” adding that it establishes and maintains rules and procedures that are accessible and unambiguous.

Windfall tax could push Nigerian banks to breaking point, warns new report

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A recent report from U.S.-based Emerging & Frontier Capital (EFC) has issued a stark warning that the introduction of a windfall tax during the Central Bank of Nigeria’s (CBN) mandated recapitalization could severely strain the country’s banking sector.The report cautions that this move could “break the camel’s back” for banks already burdened by high regulatory costs.The report highlights the significant financial pressures facing Nigeria’s banking industry, which is currently grappling with expenses tied to the Cash Reserve Ratio (CRR), the Asset Management Corporation of Nigeria (AMCON) levy, and deposit insurance premiums.According to EFC, the top six banks in Nigeria incurred regulatory costs amounting to $1.8 billion in 2023 alone, and a staggering $7.6 billion over the past five years (2018-2023).In the report titled “More Pain for Longer,” EFC underscores the potential negative impact of the proposed windfall tax on the banking sector.While acknowledging the government’s need for revenue, the report questions the rationale behind taxing banks, especially when dividend payout ratios have been declining despite rising profits.The aggregate payout ratio of the top six banks has dropped from 38% in 2018 to just 16% in 2023, even as their profitability has increased.The report also argues that the proposed tax directly conflicts with the CBN’s current efforts to recapitalize the banking industry.Since the Global Financial Crisis (GFC), bank shareholders have experienced significant losses, with bank valuations plummeting to just one-tenth of their previous levels.EFC questions the logic of imposing a tax on banks at a time when shareholders are being asked to inject more capital into institutions that, in some cases, do not require additional funding.

The report, dated August 5, 2024, highlights concerns raised during a recent Monetary Policy Committee (MPC) briefing by CBN Governor Olayemi Cardoso.Cardoso had expressed worry about the direction of both monetary and fiscal policies following the submission of an amendment to the 2023 Finance Bill, which proposes a 70% windfall tax on Nigerian banks’ realized profits from foreign exchange (FX) transactions between June 2023 and December 2025.EFC emphasizes that the proposed windfall tax would essentially redirect profits from FX transactions—expected to remain high due to exchange rate volatility—away from shareholders and into government coffers.This scenario is contributing to the declining share prices of banks, which are now trading below their public offer prices, with domestic investors increasingly turning to high-yield, non-taxable Federal Government of Nigeria (FGN) bonds.The report further stresses the importance of contextualizing FX gains, noting that while the top six Nigerian banks collectively recorded $3.1 billion in FX trading and revaluation gains in 2023, the majority of these gains—estimated at $2.9 billion—were unrealized, non-cash gains.Additionally, these figures do not account for the high costs associated with raising USD funding.EFC also questions why the Federal Government appears to overlook the substantial regulatory costs associated with banking in Nigeria, which totaled an estimated $1.8 billion for the top six banks in 2023 alone.The report paints a grim picture of the current state of Nigeria’s banking sector, pointing out that in June 2008, the collective market capitalization of the top six banks was $36.8 billion, with trailing year profits of $786 million.Today, their collective market capitalization has plummeted to $3.1 billion, even as their trailing year profits have risen to $4.3 billion. Despite this, shareholders are still being mandated to fund these banks, with declining dividend payouts exacerbating their financial pain.The EFC report concludes by questioning the long-term benefits of these policies for Nigeria, particularly as the majority of bank shareholders are Nigerian, with over 90% of ownership.The report warns that poor policy decisions are eroding the net worth of domestic investors, ultimately raising concerns about the broader implications for Nigeria’s economic future.

Protest: Police Speaks Tough Against Display Of Foreign Flags, Clamour For Military Takeover..As Police Torchlights Individuals Sponsored to Trigger Crisis in Nigeria

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By Ebinum Samuel

The Nigeria Police Force has issued a stern warning against the display of foreign flags during protests and calls for a military takeover, categorizing such actions as treasonable felonies under Nigerian law.

This follows a wave of violent protests, particularly in Bauchi, Kano, Kaduna, and Katsina States, where protesters brandished foreign flags.Ongoing investigations reveal that protest organizers in the states mentioned above are luring innocent children into participating in these unpatriotic and criminal acts. Over ninety suspects have been arrested, including tailors who sewed the flags and their sponsors. Efforts are underway to apprehend others who sponsored the production of the flags and fuelled these treasonable acts.The display of foreign flags and calls for a military takeover constitutes a clear treasonable offense, revealing the motives of protest organizers to destabilize Nigeria’s democratic government. This aligns with actionable intelligence on the tactics of fifth columnists and non-state actors exploiting economic hardship protests to further their nefarious goals.Tensions from the ongoing protests have eased following President Bola Ahmed Tinubu’s address on August 4, 2024. However, some groups persist in subversive campaigns in the form of violent and unlawful protests, characterized by the destruction of public infrastructure and private property, looting, display of foreign flags, and calls for a military takeover.

These individuals and groups will be treated as subversive agents and charged accordingly.The Inspector General of Police, IGP Kayode Adeolu Egbetokun, Ph.D., NPM, has directed Deputy Inspectors General of Police for the Northwest and Northeast zones, DIGs Bala Ciroma, psc, and Bello Makwashi, to take charge of operations in the states within the two geo-political zones where subversive campaigns are ongoing under the guise of protests. They are tasked with stabilizing the situation and preventing further violence in the affected states.The Nigeria Police Force reiterates that the use of foreign flags during protests and openly calling for a military takeover of the government is a capital offense under Nigerian law. The Police cautions Nigerian youths to be wary of individuals and groups turning protests into business ventures, funded by local or foreign sponsors aiming to destabilize the country. Evidence shows that these sponsors have paid significant sums to exploit the hardship protests, brainwashing and misleading innocent children into aiding this campaign against the government.

The Nigeria Police Force salutes Nigerians who have refused to participate in and indeed spoke out against the ill-timed protest out of sheer patriotism and belief in the government’s genuine efforts to put the country on the path of economic recovery and growth. We also acknowledge the patriotism of those who peacefully participated in the protests but withdrew when they turned violent, and those who heeded the President’s call to embrace dialogue by withdrawing from the protests.Force Spokesman, ACP Olumuyiwa Adejobi, says the NPF remains committed to maintaining peace, protecting the nation’s heritage, and working with the public to ensure the safety and stability of Nigeria.

LASTMA Chief, Emergency Responders Rescue Two Accident Victims In Lagos

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By Ebinum Samuel

The General Manager of the Lagos State Traffic Management Authority (LASTMA), Mr. Olalekan Bakare-Oki, led his team and other emergency responders in a swift response to a serious multi-vehicle accident at the New Garage by Odo Iya-Alaro area of Ojota, Lagos, early this morning.

Mr. Bakare-Oki confirmed that the accident, which occurred around 3 am, involved a Volkswagen commercial bus loaded with vegetables and a containerized vehicle that had crashed into a Jersey barrier.

He confirmed further that two (2) victims trapped in the accident (male & female) were successfully rescued alive by LASTMA personnel and other emergency responders.

“The accident was particularly alarming due to ongoing rehabilitation work on the Odo Iya-Alaro bridge,” said Mr. Bakare-Oki.

The rescued victims were immediately transported to the hospital by the Lagos State Ambulance Service.

In a related incident, another loaded tanker also collided with a barrier at the same location very close to the initial accident scene, but fortunately, no casualties were recorded.

All vehicles involved in the accidents were promptly cleared with the assistance of the Lagos State Emergency Management Agency (LASEMA) Response Unit (LRU).

Emergency responders at the scene included personnel from LASTMA, LASEMA, the Police, and passersby.

Mr. Bakare-Oki extended his sympathies to the rescued victims and emphasized the importance of safety, urging all motorists, including commercial bus drivers, to avoid speeding during their journeys within or outside Lagos.

Beyond The Protests (1)

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By EBUN-OLU ADEGBORUWA, SAN

Against all odds, the organizers of the #EndBadGovernance protests made good their threats on August 1, 2024, when they trooped out with other Nigerians to protest against hunger, hardship and the suffocating economic policies of the administration of President Bola Tinubu. All over Nigeria from Lagos to Abuja, Kano, Port-Harcourt, Benin, Aba and Abeokuta, they spoke with one voice to the government that people are hungry and they are suffering. The prelude to the protest was that a declaration was made for the commencement of protests on August 1. The response of the government to the protests was the predictable blackmail, threats and attempts to suppress the campaigns.

The security agencies became confused and began to speak with different voices. Whilst the police claimed that the organizers were faceless and unknown, the Department of State Security stated that they were known agents of foreign mercenaries trying to destabilize the nation. Most Nigerians agreed with and supported the protests, except as to the duration and the modalities. Fears were expressed in many quarters that there has never been any peaceful protest in Nigeria, properly so called. It is either the protest is hijacked by hoodlums or disrupted by hired thugs. They then referred to the #EndSARS experience of 2020 when lives were lost and property destroyed beyond contemplation. But of course this was only a smear campaign to discourage the protests, when it was realized that President Tinubu as leader of the opposition in 2012 supported and encouraged the Occupy Nigeria protests against fuel subsidy removal. It was peaceful and well coordinated.On Friday July 26, 2024, one of the leaders of the Take It Back Movement, Comrade Omoyele Sowore, reached out to me to facilitate police coverage for the protests.

I asked about the locus of the organization and he furnished me with a document showing that it was duly registered by the Corporate Affairs Commission on 20th June, 2019, although the legal consequence of that is another matter entirely. With that, I was more comfortable to lend support to the protests. Also, I had in mind the October 2020 experience and wanted us to avoid a situation where the police claimed that organizers are faceless and unrecognized, which may lead to violent confrontations and then bloodshed. So, I wrote to the police and DSS to provide coverage for the protests, relying on section 83(4) of the Police Establishment Act of 2020. I made sure I shared drafts of my letters with Comrade Sowore for his input and approval.

The police responded by confirming that two Deputy Inspectors-General of Police, all Assistant Inspectors-General of Police in all the zones and all Commissioners of Police in all the states have been designated to offer protection for the protests. They demanded details of the protest venues and also requested for a meeting to discuss the modalities. Given my background, my services were rendered pro bono and without any condition to the protests. With the response from the police, my task was half done. So I reached out to Comrade Sowore and we both agreed to furnish lists of some of the venues for the protests.

This to me was the way to go, at least to ensure that the protests were peaceful and well coordinated. I did a letter to the police wherein I stated SOME of the venues of the proposed protest. I then took time to consult with other known Comrades, the Nigerian Bar Association and some Civil Society Organisations. This was meant to coordinate the process and guard against confrontations between the protesters and the security and law enforcement agencies. I received a WhatsApp message from Damilola Adenola introducing himself as the representative of Comrade Sowore who would accompany me to the meeting with the police. Upon further consultation with other Comrades, we thought it best to have a virtual meeting with the police, in order to have wider participation and cut costs of traveling from Lagos to Abuja for everyone. Comrade Sowore then forwarded to me the names of representatives of the Take It Back movement to attend the meeting, which eventually held on July 30, 2024.

At the meeting, we made it clear to the police that it would be a peaceful outing, if the police is able to nip in the bud the emerging trend of hired thugs who were going around the cities, especially Lagos, to threaten citizens from exercising their fundamental rights. With the meeting, it became clear to the police (or so it seemed at the time), that the organizers of the protests were not miscreants and unknown persons and entities. This should help to douse the fears being expressed in certain quarters that the protest was being organized to destroy and loot. Of course apologists of the ruling party went to town with my letter, accusing me (falsely though) of setting up the South West for destruction.

They reasoned that once no single state from the South East was mentioned, then there would be no protest in that region and indeed all other areas not mentioned. They began to circulate this falsehood in all their WhatsApp and social media platforms, purely for the purpose of raising ethnic bias and to get the people of the South West to back out of the protest. When we look back into the history of Nigeria, we would see that the struggle for Nigeria’s independence was coordinated from Lagos and the South West, so too most students union struggles like the Ali Must Go, Anti-SAP protests, anti-military protests, June 12 protests and Occupy Nigeria protest.

The Yorubas in particular have a rich history of determined resistance against all forms of injustice and oppression, and they don’t discriminate in this regard, even if it is against one of their own. So you see a Wole Soyinka opposing an Olusegun Obasanjo from being appointed as United Nations Secretary-General, you would see a Gani Fawehinmi as the most notable critic of an Olusegun Obasanjo President. I then began to wonder the origin of this new set of rabid and intolerant generations of government loyalists in the South West, who see any and everything only from the pristine of ethnic alliance. The focus has always been on the issues, not the person, his tribe or his faith.

I was glad however that they were all ranting on empty vessels as nobody reasonably ever took them seriously. On the eve of the protest on July 31, 2024, news filtered out that the Lagos State Government had obtained an order from the Court to restrict the protests to Gani Fawehinmi Park in Ojota and the Peace Park in Ketu. How will citizens in Badagry, Epe, Ikorodu and other locations travel to Ojota just to protest? I knew that the government was baiting for trouble. Not stopping there, certain persons who claimed to be traditionalists, announced the celebration of their traditional Oro festival to coincide with the August 1 protests and when added to the machete-wielding thugs going round the city, there would likely be some confrontation. I therefore made a personal appeal to the protesters to streamline the plan and to limit the protest to just one day or at most three days. Comrade Sowore was quick to reach out to me that I should amend my statement so that it would not confuse their supporters, a request which I gladly obliged him, since my appeal was personal in the first place and my intervention between them and the police had been concluded.And the protests commenced on August 1, 2024.

The turnout was massive, the spread was unprecedented and the support was overwhelming. Suffice to state it that the government was thoroughly rattled, especially with the outcome from the Northern part of the country. The response was then to sponsor thugs to disrupt the protests, especially in Abuja where buses were dropping anti-protest protesters at the same venue of the main protest. By afternoon of August 1, the protests had turned violent in some locations in Kano and Borno States, with recorded cases of mass looting and destruction of property. Some deaths were already recorded and it was escalating.

This surely was not the intention of the organizers of the protests (or so I was made to believe), the concomitant effect of which would mean that the protests wouldn’t last ten days. I made a statement, commending Nigerians for their peaceful conduct and urging the police to observe acceptable standards in handling the protests. The protests eventually entered its Day Two on August 2, by which time, it was manifest beyond any doubt that trouble was brewing. We had cases of further looting of warehouses, confrontations between supporters of the government and the protesters and cases of looting of the property of private persons, such as the woman who complained bitterly that before she got back from the protest venue, her shop had been looted by her fellow protesters.

I then made another personal appeal to the protesters to call off the protests and embrace dialogue with the government, based on their charter of demands. I specifically requested that they should vacate the protest grounds so as not to give room for the violence that was brewing, as the protests had gotten out of control, especially in the Northern states, where some protesters were seen waving the Russian flag.

Real reason fuel importers will frustrate Dangote – Obasanjo

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Former President Olusegun Obasanjo has raised concerns that individuals profiting from the fuel importation business might attempt to undermine the Dangote Petroleum Refinery.This warning aligns with recent allegations by Alhaji Aliko Dangote, President of the Dangote Group, who claimed that certain “mafias” are working to frustrate the $20 billion refinery project.

This came as it was gathered on Monday that the multi-billion dollar refinery and other domestic refineries had yet to purchase crude oil in naira based on the directive of President Bola Tinubu to the Nigerian National Petroleum Company Limited.

In an interview with Financial Times, the former President described the Dangote refinery as something that should encourage both Nigerians and non-Nigerians.“Aliko’s investment in a refinery, if it goes well, should encourage both Nigerians and non-Nigerians to invest in Nigeria.“If those who are selling or supplying refined products for Nigeria feel that they will lose the lucrative opportunity, they will also make every effort to get him frustrated,” Obasanjo stated.Officials of the Dangote Group recently cried out that international oil companies were frustrating the refinery by refusing to sell crude or by selling to them at a premium up to $4 above the normal price.

They also accused the Nigerian Midstream and Downstream Regulatory Authority of deliberately granting licences to individuals to import dirty fuel.The regulator denied this, saying Dangote diesel was inferior when compared to the imported ones.The NMDPRA Chief Executive, Farouk Ahmed, also stated that the country would not stop fuel importation to avoid a monopoly by the Dangote Group.Obasanjo, speaking further, disclosed that Nigeria made a deadly mistake by putting all its eggs in what he called one basket of oil, ignoring gas and agriculture.“I believe we made a very, very deadly mistake. We put all our eggs in one basket of oil. We even ignored gas. We were flaring gas, which is a very important commodity“We ignored agriculture, which should have been the centrepiece of our economic development,” Obasanjo stated.

He recalled how he persuaded Shell to run the country’s refineries but the International Oil Company refused, saying there was too much corruption in the sector.“When I was President, I invited Shell and I said, look, come and take equity participation and run our refineries for us. They refused. They said our refineries have not been well maintained.“We have brought amateurs rather than bringing professionals. They said there’s too much corruption with the way our refinery is run and maintained. And they didn’t want to get involved in such a mess,” he explained.On the promises that the refineries will be fixed, he asked, “How many times have they told us that? And at what price?

“Those problems, as far as the government refineries are concerned, have never gone away. They have even increased. So if you have a problem like that and that problem is not removed then you aren’t going anywhere.”The former President also condemned the style adopted by President Bola Tinubu to remove fuel subsidies, stating that the present administration should have first considered the hardship the subsidy removal could cause people and how to ameliorate the same.“There’s a lot of work that needs to be done. Not just wake up one morning and say you removed the subsidy. Because of inflation, the subsidy that we have removed is not gone. It has come back,” the former President stressed.

“He said there must be investor confidence in Nigeria, adding, “You have to go from transactional economy to transformational economy.”

NDLEA’s diving capability will discourage large cocaine shipments to Nigeria – Marwa

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By Ebinum Samuel

Chairman/Chief Executive Officer of the National Drug Law Enforcement Agency, Brig Gen Mohamed Buba Marwa (Rtd) has said that the recent training and certification of officers of the Marine Command of NDLEA in basic diving, advanced open water diving and full-face mask diving will discourage large shipments of cocaine to Nigeria.

Marwa who stated this while receiving a report of the training from the Agency’s Director of Seaports Operations, DCGN Omolade Faboyede said the new capability will send a strong message to international drug cartels that they have no place to hide their illicit consignments on any ship or vessel coming to Nigeria.Eight officers were selected from four countries including two from Nigeria by the United Nations Office on Drugs and Crime, UNODC, to undergo the certification training in Bombinhas city, Brazil in two phases; first in November 2023 and then July 2024.According to the UNODC, the diving training was initiated to strengthen the fight against drug trafficking and transnational crime activities for the four countries: Cape Verde, Guinea Bissau, Nigeria and Senegal.

The second phase of the training was to qualify professionals certified in basic and advanced diving in public safety diving to conduct ship hull searches, enforce the law and ensure public safety in combating transnational drug trafficking.While commending the two NDLEA officers who participated in the training and certification programme for their exemplary performance, Marwa said their “new ability to dive into the sea to search ship hulls will no doubt discourage global drug networks from attempting to send any large consignment to Nigeria knowing full well that our men now have the capacity to search every nook and cranny of ships and vessels coming to Nigeria.”He said the Agency will continue to be steps ahead of drug cartels in skills and capability with a view to ensuring that they have no means to smuggle illicit drugs into Nigeria.

“We will also continue to expose our officers, men and women to trainings and the use of modern technological tools in our determined bid to keep our country safe by curbing the menace of substance abuse and illicit drug trafficking”, the NDLEA boss added.

Rating: GCR Affirms Dangote Industries Limited AA+(NG)/ A1+(NG)

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—strong earnings prospects from the new refinery

GCR Ratings (GCR) has affirmed the national scale long-term and short-term issuer ratings of AA+(NG) and A1+(NG) respectively accorded to Dangote Industries Limited (DIL). GCR in its recent report also affirmed the national scale long-term issue rating of AA+(NG) accorded to each of Dangote Industries Funding Plc’s Series 1 NGN10.5Bn Tranche A and NGN177.1Bn Tranche B Bonds and Series 2 NGN112.4Bn Senior Unsecured Bond. The outlook on the ratings has been revised to Evolving from Stable previously.

According to GCR, “the ratings were affirmed on the prospects of significant growth in earnings following the commencement of operations at the new petrochemical refinery and robust earnings expectation from the other businesses.”In the report, the rating agency decried the impact of naira devaluation on DIL performance stating that, “the ratings are constrained by the adverse impact of the currency devaluation on the profitability and financial position of the group, given its significant foreign debt exposure.”GCR in recognition of the potential of the Dangote Group added, “the group’s business profile is bolstered by the commencement of refining operations in February 2024 (with the production of diesel, Naphtha, heavy fuel oil, and aviation fuel), which now complements the already well-diversified group businesses. Accordingly, we expect the group’s business fundamentals to become increasingly tilted towards oil refining, given its size as the largest refinery in Africa and Europe. We also expect strong export sales potential given the recent debut exports of refined oil to Europe.

The non-oil businesses continue to demonstrate strong earnings generating capacity and market leaderships in their respective sectors, underpinned by the above-peer production capacities and favourable demographics.”“We have maintained a positive peer comparison consideration for DIL underpinned by the importance of the refinery to the Nigerian economy. However, we have lowered the extent of support applicable under this rating component because we expect the support factors to translate to substantive enhancements to the group’s business and financial profiles over the outlook period. In 2022, DIL raised a cumulative NGN300Bn in Series 1 (Tranches A and B) and Series 2 Senior Unsecured Bonds issued by its sponsored special purpose vehicle, Dangote Industries Funding Plc.

Being senior unsecured debt sponsored by DIL, the Series 1 Tranches A and B Bonds and the Series 2 Bond rank pari passu with all other senior unsecured creditors of the group.Therefore, the Bonds bear the same national scale long-term rating as that accorded to DIL and any change in DIL’s long-term corporate rating would impact the Bonds ratings. We have reviewed the draft trustees’ bond performance report dated 24 May 2024 and note that the coupons have been paid as and when due and there were no breaches to any covenants and pledges in the trust deeds. However, the group remains highly exposed to volatile energy cost dynamics and is reliant on importation of gypsum for cement, raw sugar input, and crude oil for the refinery” GCR stated.

Turning Promises into Progress: Tinubu’s Recent Policy Milestones in Affordable Housing

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By Joseph Dimegbechie

With the immense feelings of discontentment felt by many citizens of our country, Nigeria, sparking the recent wave of protests, let the evident accomplishments of the current government not be forgotten. Every presidential candidate makes grandiose promises in his manifesto, but President Tinubu and his administration have made discernible accomplishments in the country’s economy and citizens’ welfare. The facts speak for themselves and Nigeria being a tribe of the fair-minded, will look at the facts and judge for themselves.Nigeria’s housing sector faces significant challenges, with a shortfall of approximately 30 million units. President Bola Ahmed Tinubu’s Renewed Hope Cities and Estates initiatives are designed to rejuvenate this struggling sector and offer affordable housing to millions. These initiatives prioritize self-sustainability and aim to construct 100,000 homes throughout the 36 states and the FCT. In Karsana, Abuja, the Renewed Hope Cities project is on track to complete 3,112 homes. A key aspect of these projects is their affordability, ensuring that at least 20% of all constructed units are priced within the reach of low to medium-income earners. Additionally, loan options like rent-to-own schemes and mortgages with reasonable interest rates are being introduced.

The benefits of government-provided affordable housing in these economically challenging times are manifold. Economic downturns often result in job losses and a subsequent inability to afford rent or mortgages. By offering more affordable housing, the government creates a safety net that prevents homelessness and its related difficulties. With lower housing and rent expenses, Nigerian families can allocate more funds to necessities such as food, healthcare, and education, thereby reducing the impact of the struggling economy faced by this administration. Moreover, when individuals are not overburdened by housing costs, they have greater disposable income for purchasing goods and services, which in turn stimulates economic activity.The Tinubu Administration’s significant investment in affordable housing is set to directly infuse capital into the economy by generating construction jobs and bolstering associated sectors.

Affordable housing access also facilitates the mobility of people seeking employment in different cities, potentially addressing labour shortages, enhancing productivity, and fostering opportunities that can reduce poverty.In summary, the provision of affordable housing during times of economic downturn serves as a potent mechanism for alleviating hardship, invigorating the economy, and fostering a society that is both more equitable and resilient.Related to the issue of housing is what the administration is doing about making food available to millions of Nigerians. Rising food prices due to global inflation has hit several countries including Nigeria. The hardship caused by escalating food prices has been heavy on Nigerians as it is a major point in the agenda of the ongoing protests. To combat this, the federal government has implemented a 150-day suspension on tariffs and import duties on staple food items such as maize, sorghum, rice and wheat. By reducing taxes on these items, prices will come down to ensure that basic food items are available for all Nigerians. Job creation is a big part of President Bola Ahmed Tinubu’s plans for Nigeria as 250 million tonnes of maize and wheat will be imported soon to sustain the growth of small to medium scale local millers and food processors.With the economic dip, the federal government is making efforts to revive and support key sectors. Concentrating on MSMEs – Micro, Small and Medium enterprises and the manufacturing sectors, 150 billion Naira split evenly between the two sectors has been allocated according to the ministry of industry, trade, and investment.

A recent disbursement towards nano businesses has been made with committed beneficiaries.Even those without expertise recognize the potential advantages of government subsidies designed to reduce food costs amidst an economic slump.For families with low incomes, job losses or diminished earnings can rapidly result in food insecurity. Subsidies, whether they are direct price cuts or the elimination of import duties on foreign food as the government has declared, directly decrease food expenses. For millions of Nigerian families in difficulty, the assurance of support for a basic necessity like food can alleviate the stress and anxiety caused by economic challenges.From a broader economic standpoint, funds expended on food are reinvested into the economy, bolstering small businesses, neighbourhood stores, agricultural workers, and food manufacturers. This can create a domino effect, boosting employment and mitigating poverty. Initial spending by subsidy recipients can stimulate further economic activity, as businesses and their employees reinvest that income, thus magnifying the subsidy’s impact.In economic downturns like the one Nigeria is currently facing, consumer spending decreases, exacerbating the recession. Food subsidies support demand in this crucial sector, countering the recessionary trend.Malnutrition and diet-related diseases burden healthcare systems. Enhanced food security can result in long-term healthcare savings.Agricultural producers are often severely affected by economic downturns. Food subsidies ensure a consistent market for their products, averting farm shutdowns and job losses in rural areas.

The food industry, from processing to retail, is a significant employer. Subsidies are vital in preserving these jobs, aiding in the overall economic stability.The Tinubu administration is deliberately using food subsidies as a strategic measure to ease hardship and bolster the economy, aiming to overcome the economic downturn inherited from its predecessors.

Joseph Dimegbechie a public analyst lives Enugu