The Central Bank of Nigeria (CBN) has made swift changes to the leadership of Union, Keystone, and Polaris banks, just hours after dissolving their boards of directors. The move, announced in a statement by CBN’s Acting Director of Corporate Communications, Sidi Hakama, takes immediate effect.

In these changes, Yetunde Oni, the first female CEO of Standard Chartered Bank in Sierra Leone, takes the helm as the Chief Executive Officer of Union Bank. Mannir Ubali Ringim assumes the role of Executive Director at the tier-2 bank. Keystone Bank sees Hassan Imam as its new CEO, with Chioma Mang appointed as the Executive Director.

Polaris Bank welcomes Lawal Mudathir Omokayode Akintola as its Chief Executive Officer, and Chris Ofikulu as the Executive Director.

The decision to dissolve the boards of these banks came on Wednesday night, as the CBN cited serious breaches of financial laws. These infractions ranged from regulatory non-compliance and corporate governance failure to engaging in activities threatening financial stability.

The regulatory action, driven by the Financial Institutions Act of 2020, was prompted by the findings of a special investigation led by Jim Obazee, appointed by President Bola Tinubu in July 2023. The investigation accused former CBN Governor Godwin Emefiele of acquiring banks through proxies, specifically mentioning Union Bank of Nigeria for Titan Trust Bank Limited and Keystone Bank.

These changes mark a significant shake-up in the Nigerian banking sector, as the CBN takes decisive steps to address financial irregularities and ensure stability.

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Aliko Dangote is back on top as Africa’s wealthiest individual, regaining his position on Forbes Africa’s billionaire list. Last week, Johann Rupert briefly held the title, but Dangote, the leader of Dangote Group, has now reclaimed his spot. On the global stage, Dangote holds the 191st position, with Rupert following closely at 197th. The dynamic shifts in rankings highlight the competitive landscape among Africa’s business moguls.

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Glo subscribers are set to face disruptions in making calls to MTN lines as a consequence of unresolved interconnect charges. This revelation comes directly from the Nigerian Communications Commission (NCC), as stated in a public notice signed by Reuben Muoka, Director of the Public Affairs Department.

The NCC, in its notice on Monday, informed the public that it has given partial approval for disconnecting Glo from MTN Nigeria Communications Plc. The commission disclosed, “Globacom was notified of the application made by MTN and was given the opportunity to comment and state its case.”

After a thorough examination of the circumstances surrounding the non-payment of interconnect charges, the NCC concluded that Globacom lacks sufficient or justifiable reasons for the outstanding debt. Consequently, at the end of 10 days from the notice date, Glo subscribers will lose the ability to make calls to MTN numbers. However, they will still be able to receive calls, with the partial disconnection allowing in-bound calls to the Globacom network.

This isn’t the first instance of Glo subscribers facing disconnection due to interconnect charge issues with MTN. In 2019, MTN briefly disconnected Glo subscribers following a directive from the NCC over a N4bn debt. The NCC had previously approved the disconnection of mobile network operators for unpaid interconnect debts.

The total disconnect fee in the industry back then amounted to about N165bn. In the current situation, a source from MTN indicates that Glo owes approximately N6bn in interconnect fees. Despite efforts to obtain Glo’s reaction, the company has yet to comment on the issue.

As of the end of August 2023, Glo boasted 61.39 million mobile subscriptions. However, according to the latest NCC notice, starting from January 18, 2024, these lines will no longer be able to make calls to MTN lines. The move underscores the critical need for telecom operators to settle interconnect charges promptly to avoid disruptions in service.

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In the last three months, the Nigerian naira has taken a significant hit, dropping by 38.9% against the US dollar at the Central Bank of Nigeria’s official Investors & Exporters (I&E) window, according to data from FMDQ Securities Exchange.

From October 3, 2023, to January 3, 2024, the naira fell from N745.19/$ to N1035.12/$. Despite the government’s efforts to stabilize the foreign exchange market, the naira’s value has continued to decline.

Manufacturers and members of the organized private sector, including the Manufacturers Association of Nigeria and the Lagos Chamber of Commerce and Industry, express concerns about the negative impact on their businesses. The falling naira value could lead to downsizing and increased unemployment.

The naira, starting 2024 at N988.46/$, experienced an 8.97% decline and further dropped to N1035.12/$ on January 3, marking the third time it closed above N1000/$ on the I&E window.

Efforts to address the situation, such as clearing FX backlogs and foreign exchange support facilities, have not yielded positive results. The World Bank highlights the persistently low volume of FX trades in the official window, raising risks for foreign direct investment and portfolio investment.

The Central Bank of Nigeria (CBN) Governor, Olayemi Cardoso, acknowledges the issue and states that the bank is working on comprehensive policies to address market volatility. However, concerns linger among the organized private sector, with fears that prolonged foreign exchange scarcity may force more companies to shut down operations in Nigeria.

In June 2023, the CBN removed the rate cap on the naira at the I&E window, aiming for a free float to unify exchange rates. Despite initial positive reactions, the naira fell sharply, and since then, it has depreciated by 36% to N908 as of January 7, 2024.

While the CBN cleared a $7bn backlog in November, the naira continued to depreciate, closing at N831 on the official market by the end of that month. The current state of the naira poses a serious threat to Nigeria’s economic stability, warranting urgent and comprehensive measures to address the ongoing foreign exchange challenges.

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As many developed countries embrace clean energy, an undercover investigation has revealed Saudi Arabia’s plans to drive up the use of fossil fuel-powered cars, buses and planes in Africa and elsewhere.

Saudi Arabia is driving a huge global investment plan to create demand for its oil and gas in developing countries, an undercover investigation has revealed. Critics said the plan was designed to get countries “hooked on its harmful products”.

Little was known about the oil demand sustainability programme (ODSP) but the investigation obtained detailed information on plans to drive up the use of fossil fuel-powered cars, buses and planes in Africa and elsewhere, as rich countries increasingly switch to clean energy.

The ODSP plans to accelerate the development of supersonic air travel, which it notes uses three times more jet fuel than conventional planes, and partner with a carmaker to mass-produce a cheap combustion engine vehicle. Further plans promote power ships, which use polluting heavy fuel oil or gas to provide electricity to coastal communities.

The ODSP is overseen by Saudi Arabia’s de facto ruler, the crown prince Mohammed bin Salman, and involves its biggest organisations, such as the $700bn Public Investment Fund, the world’s largest oil company, Aramco, the petrochemicals firm Sabic, and the government’s most important ministries.

In publicly available information, the programme is largely presented as “removing barriers” to energy and transport in poorer countries and “increasing sustainability”, for example by providing gas cooking stoves to replace wood burning.

However, all the planned projects revealed in the investigation by the Centre for Climate Reporting and Channel 4 News involve increasing the use of oil and gas. An official said this was “one of the main objectives”.

Expanding on the plan to flood Africa and Asian markets with diesel and petrol vehicles, an official says: “We’re talking about diesel, gasoline and jet fuel. We also work to increase low-cost internal combustion engine cars there.”

Probing officials on the OSP’s proposals to launch supersonic commercial flights globally, a second official said: “You know, supersonic aviation consumes more energy and the market size is expected to grow significantly. So our opportunity here is to facilitate growth and development of supersonic technologies.”

Officials say they also plan to counter market incentives and subsidies for electric vehicles globally which are perceived as a threat to the plan to roll out petrol and diesel engine vehicles.

In relation to electric vehicles, a second OSP official says: “EVs are being favoured in terms of subsidies and regulatory advantage especially in regions like Africa, so what we are working on is to increase internal combustion engine adoptions.”

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President Bola Tinubu will on Wednesday present the 2024 Appropriation Bill to a joint session of the National Assembly.

This came as the Federal Executive Council on Monday approved the 2024 Appropriation Bill of N27.5tn.

This is an increase from the N26.01tn earlier considered by the council.

The Minister of Budget and Economic Planning, Abubakar Bagudu, disclosed the approval to State House correspondents. after the close of FEC’s weekly  meeting presided over by Tinubu at the Aso Rock Villa, Abuja.

While disclosing that the Federal Government is projecting N18tn revenue for the 2024 fiscal year, Bagudu said further details of the appropriation bill would be released when the President presents it to a joint session of the National Assembly on Wednesday.

According to the minister, the Medium Term Expenditure Framework passed by the National Assembly is being reviewed by the Council.

Bagudu said “Equally, the Federal Executive Council approved the 2024 Appropriation Bill and the presentation of such to the National Assembly by His Excellency, Mr. President.

“The bill has an aggregate expenditure of N27.5tn which is an increase of over N1.5tn from the previously estimated, using the old reference prices.”

He added, “The forecast revenue is now N18.32tn which is higher than the 2023 revenues, including that provided in the two supplementary budgets. Equally and commendably, the deficit is lower than that of 2023. Details of the Renewed Hope Budget will be announced by Mr. President when he makes the presentation to the National Assembly”

The minister also announced some changes made in the MTEF benchmarks by FEC9.

“That approved Medium Term Expenditure Framework has the exchange rate of N700 to $1 and equally, the benchmark crude oil price at $73.96 cent. However, in Mr. President’s determination to find more money to fund our priorities, today the Federal Executive Council further revised the Medium Term Expenditure Framework and Fiscal Policy Framework and two of the important decisions were to use an exchange rate of N750 to $1 and also a benchmark crude oil reference price of $77.96, meaning $4 more than the earlier approval,” he noted.The minister said the changes “will significantly increase government revenue that the President intends to use in supporting the ministries, departments and agencies in the execution of the eight priority areas, particularly Health, Education, infrastructure, security and other developmental areas.”

Also briefing, the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, said that the Council approved $1bn budget support loan from the African Development Bank.

The AfDB loan will have an interest rate of 4.2 per cent for 25 years with an eight-year moratorium, according to the minister.

He said, “The Federal Executive Council approved a $1bn concessionary loan for general budget support and to be used to improve forex availability in the country.

“The $1bn loan from AfDB is a budget support fund for ongoing economic reforms. It is to support government programmes in the power sector, social inclusion, and the fiscal policy reforms as a whole sector policy initiative.”

In October, Edun disclosed that the Federal Government secured a $80m loan from the AfDB to finance various projects in critical sectors of the economy. He noted at the time that the $80m was to help young people in the knowledge economy, technology, and communications.

The finance minister also spoke on the tax initiatives of the Federal Government.

Edun said, “There was a briefing by the Fiscal Policy and Tax Reform Committee, essentially they’ve been working for roughly 90 days, they’ve been working very well and very effectively, such that they are in a position to have even impacted the economy by coming up with initial reforms, as well as signposting the way forward in terms of very important targets.

“So in a nutshell, the policy on VAT removal on diesel is from them, they are looking to help boost fiscal situation of the government by increasing revenue, particularly tax revenue, through digitalisation, additional efficiency and rationalisation of the range of taxes that we have at the moment.

“They are looking to increase the ratio of tax-revenue-to-GDP to 18 per cent which is the average for Africa; so many countries are above that level. It is actually about the double of where we are now and within a matter of a few years, their target is to reach 18 per cent.”

The minister said the FG was contemplating other economic measures in the short-term, adding that the tax reforms council’s report was well received by the President and other council members.

Edun also stated that the Federal Executive Council approved a total limit of N2tn to be available for use by the Ministry of Finance to go in and out of the market and essentially to, where possible, bring down the interest rate on the current outstanding.

He said this was “in order to keep working hard and maximising the ability of the government to use the markets and to take advantage of different situations and improve situations.”

“So essentially, it will be refinancing and the view is that there will be an opportunity to save about N50bn or more in debt servicing over time by giving back expensive debt refinancing with cheaper funding,” he concluded.Meanwhile, the Secretary of Research and Information at the National Assembly, Dr Ali Barde Umoru, on Monday confirmed that Tinubu would present the appropriation bill to NASS on Wednesday.

Ahead of the budget presentation, Tinubu had three weeks ago forwarded to both chambers of the National Assembly, the 2024 – 2026 MTEF and Fiscal Strategy Paper where the sum of N26.1tn was proposed as the total expenditure profile for the 2024 fiscal year.

The Senate through its committee on Finance after two weeks of interactive sessions with heads of Ministries, Departments and Agencies on revenue and expenditure projections made for them, approved the MTEF.

It specifically approved the N26.1tn proposed as 2024 budget and other parameters as proposed by the President.

It also approved the new borrowings of N7.8tn, pegs benchmark oil price for 2024 at $73.96 and oil production volume per day at 1.78m barrels.

NASS assures Nigerians

Meanwhile, the Speaker of the House of Representatives, Tajudeen Abbas, also confirmed Tinubu would present the 2024 Appropriation Bill before a joint session of the National Assembly

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Oil prices recorded more loss on Thursday, after OPEC announced the shock delay of a key policy meeting, suggesting fresh upheaval in the bloc, while equities were mixed after two US reports dented recent euphoria over the future of interest rates.

Both main crude contracts slipped on news that the much-anticipated gathering of the major producers combining OPEC and 10 allies would be put back by four days to November 30.

Prices had dived almost five percent at one point Wednesday, before paring the losses.

Reports indicated that the decision was made after Angola and Nigeria pushed back against lower targets that were urged by others, with Saudi Arabia said to have been preparing to extend a one-million-barrel-a-day output cut into the new year.

Riyadh and Russia unveiled massive cuts earlier this year in a bid to boost prices, which have come under pressure owing to stuttering economies in the United States, Europe and particularly China.

Pierre Andurand, of Andurand Capital Management, said global supplies were healthier than expected, meaning that the OPEC+ cartel would need to reduce its output.

“The Saudis will probably want the other countries to cut as well. It’s going to be a negotiation,” Andurand told Bloomberg TV.

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The OPEC+ alliance has shifted its crucial policy meeting in Vienna from November 25-26 to Thursday, November 30, 2023, as announced on the agency’s website.

The rescheduling impacts the 187th OPEC Conference, the 51st Joint Ministerial Monitoring Committee (JMMC) Meeting, and the 36th OPEC and non-OPEC Ministerial Meeting (ONOMM).

Comprising 13 Member Countries, OPEC+ aims to coordinate petroleum policies to maintain oil market balance.

Sources suggest the delay provides nations with additional time to discuss compliance with existing output cuts and potential new measures. Stay tuned for updates on this significant development.

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Minister of Works, David Umahi, has revealed that the government is seeking $35 billion to kick-start the ambitious project of constructing concrete roads across the country.

Umahi shared this crucial information during a meeting with Minister of Steel Development, Shuaib Audu, at the ministry’s headquarters in Abuja. Emphasizing the need for coordination and cooperation, Umahi highlighted the significance of aligning efforts to execute the Federal Government’s action plans for national development.

In a statement on Tuesday, Chief Press Secretary to the minister, Orji Uchenna, unveiled a strategic plan involving the revival of the Ajaokuta steel company. The plan aims to source 16% of the steel material and 30% of the cement required for Nigeria’s concrete road construction from the struggling Ajaokuta steel plant.

“How do we reactivate the Ajaokuta Steel? We are going into the concrete road; in this concrete road, about 16% is from steel while 30% is cement. We need a lot of money to start, but we decided to face it, and God has given us an idea,” Umahi explained.

The ambitious project, requiring a substantial $35 billion investment, faces funding challenges if solely dependent on the federal government. Umahi emphasized the importance of a proactive approach, considering alternative funding options such as a partnership with commercial banks.

“We need about $35 billion to start. If we start waiting for FG, it might become difficult. We analyzed the Return on Investment and the profit we could have made; part of it will go to bank interest. We are considering a commercial bank partnership, but the Federal Executive Council has to endorse it. If this could be done, it means Mr. President is living up to his words, and this will be possible,” he said.

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A civil society organisation, the African Network for Environment and Economic Justice, on Tuesday, lamented the rising debt profile of Nigeria and some West African countries.

It said it was disturbing that most of the resources of the affected countries go into debt servicing.

The Debt Management Office in Abuja hosted the publication of the paper, “Debt Management, Restricting and Sustainability in ECOWAS.”

The Executive Director of ANEEJ, David Ugolor, spoke during a two-day International Hybrid Conference on Special Drawing Rights with the theme “Making Special Drawing Rights work for the People,” on Tuesday in Abuja.

Ugolor, who was represented by the Deputy Director of ANEEJ, Leo Atakpu, said, “Statistics from the DMO shows that Nigeria’s public debt stood at N87,379,401.75 trillion as of June 30, 2023, and in the same vein, Ghana’s public debt stock rose to 569.3 billion cedis ($49.7 billion) at the end of April 2023, according to figures obtained from the Bank of Ghana.

“The COVID-19 pandemic has increased solvency and liquidity issues, which is one of the main reasons Sierra Leone’s debt is categorised as having a high risk of debt distress.“For us in civil society, this is quite disturbing because most of our countries’ revenues are now being channeled to debt servicing obligations at the peril of basic social services, climate, and other development exigencies.

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