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Category: Economy

  • Senate gives update on P/Harcourt Refinery

    Senate gives update on P/Harcourt Refinery

    The Senate Ad-Hoc Committee to Investigate the Turnaround Maintenance of Nigeria’s Refineries has said the Port Harcourt Refinery will begin operation before the end of December.

    This is as the Rivers State Governor, Siminalayi Fubara, has stated that his administration is working in tandem with President Bola Tinubu-led Federal Government’s policies designed to make life better for Nigerians through the Renewed Hope Agenda.

    Fubara noted that, in doing so, the Woji-Aleto-Alesa-Refinery Road, now 70 per cent completed, was being constructed to provide a bypass to easily access the Port Harcourt Refinery and take off traffic from the East-West Road.

    He made the remark when members of the Senate Ad-Hoc Committee to Investigate the Turnaround Maintenance of Nigeria’s Refineries, led by their Chairman, Senator Ifeanyi Ubah, paid him a courtesy visit at the Government House in Port Harcourt on Friday.

    This was contained in a statement issued in Port Harcourt on Saturday by the Chief Press Secretary to the Governor, Nelson Chukwudi.

    The governor said the purpose of governance was to make life easy for the people. He expressed delight that the Senate Committee’s investigation would make life easy and meaningful for Nigerians.

    The statement read, “We, as a state, before the commencement of the rehabilitation job, had a contribution that we wanted to make to support the work at the refinery because of the deplorable state of the East-West Road.

    “There is a road: Woji-Aleto-Alesa Refinery Road. We are almost completing the bridge. It’s about 70 per cent completed. We are doing almost the last part of it. With that road, it will help to decongest and reduce the trouble commuters face along the East-West Road while providing easy access, straight to the refinery.

    “So, you can see that our government is working in line, supporting the Administration of President Bola Tinubu to give our people hope and assurance that things will soon get better.”

    It added, “And it is this role that you are playing, genuinely. With the support of this state government, that is the only way we can achieve the purpose of governance for everyone.

    “The purpose of governance is to make life easy for the people. I am happy that your investigation would make life easy for the people,” the governor explained.

    Fubara pointed to the derivable benefits when the refinery is eventually revamped and becomes operational, both to the Federal Government and host, Rivers State.

    He added, “When the refinery restarts production, there will be petroleum products available locally. The issue of importation will go down.

    “We will now make an impact, the economy will grow, and internally generated revenue will increase. More projects will be executed in this state. You can see that it’s a chain effect thing. So, I want to thank you.”

  • Israel-Iranian Conflict: Oil prices Soar

    Israel-Iranian Conflict: Oil prices Soar

    Oil prices have seen a significant spike, with Brent crude surpassing $90 per barrel, a notable rise from $87, in the wake of escalating tensions between Israel and Iran.

    The increase exceeded 3% on Friday following confirmed reports of an Israeli military operation on Iranian soil.

    The strike, which targeted strategic locations in Iran, has intensified fears of a potential full-scale conflict in the region, prompting a swift reaction in global oil markets.

    A U.S. official, speaking to NBC News, confirmed Israel’s involvement in the operations conducted in Iran, marking a significant escalation in the ongoing hostilities between the two nations.

    Further reports from CNN indicate that Iran’s Fars news agency reported hearing explosions at an airport in the city of Isfahan, although the cause of the blasts has yet to be determined.

    This incident has led to several commercial flights being diverted to avoid Iranian airspace, highlighting the broader regional implications of the conflict.

    This surge in oil prices reflects the market’s sensitivity to geopolitical events in the Middle East, a critical hub for global oil production and export.

    Investors and analysts are closely monitoring the situation, aware that continued unrest could lead to further disruptions in oil supply chains and additional increases in prices.

  • CBN Reduces Banks’ Loan-To-Deposit Ratio To 50%

    CBN Reduces Banks’ Loan-To-Deposit Ratio To 50%

    The Central Bank of Nigeria (CBN) has reduced the Loan-to-deposit ratio (LDR) of banks to 50 per cent from 65 per cent.

    The apex bank made this known in a circular to Deposit Money Banks titled “Re: Regulatory Measures to Improve Lending to the Real Sector of the Nigerian Economy”.

    The circular was signed by the Acting Director of the Banking Supervision Department, CBN, Adetona Adedeji.

    In a bid to increase lending to the economy especially Small and Medium Enterprises, SMEs, retail mortgage and consumer loans, the CBN on July 3, 2019, increased Banks’ LDR to 60 per cent from 57 per cent.

    The LDR was further raised to 65 per cent in January 20020.

    The reduction in the LDR according to analysts at Afrinvest Securities is to allow banks to comply with the Cash Reserve Ratio, CRR of 45 per cent.

    They said, “Today, the CBN in a circular to Deposit Money Banks titled “Re: Regulatory Measures to Improve Lending to the Real Sector of the Nigerian Economy” announced a scale down of the Loans to Deposits Rate (LDR) by 15.0ppts to 50.0% – reversing previous threshold set by the past CBN administration in January 2020.

    “In our view, this downward review of LDR allows banks to comply with the 45.0% CRR directive, and eases off pressure on the lenders considering the restrictive nature of other CBN directives including the Net Open Position (NOP) ceiling of 20.0% short and 0.0% long. Thus, we believe this policy would enhance the ability of banks to sweat out assets without creating unnecessary risks.”

  • Electricity Tarrif: Lawyer drags NERC, AEDC to court over implementing Band A to E classification …says action discriminatory

    Electricity Tarrif: Lawyer drags NERC, AEDC to court over implementing Band A to E classification …says action discriminatory

    An Abuja based lawyer, Festus Sanmi Onifade, has asked the Federal High Court, Abuja, to restrain the Nigeria Electricity Regulatory Commission (NERC) and the Abuja Electricity Distribution Company (AEDC) from continuing with the implementation of multi-year tariff order 2024, which classified electricity consumers into Band A to E.

    Recall that NERC announced a new electricity tariff increase for customers in the Band A category from N66/kWh to N225kWh, that is, those enjoying 20-hour daily electricity supply.

    In the suit marked FHC/ABJ/CS/492/2024, the lawyer stated he sued for himself and on behalf of other consumers.

    In his affidavit in support of the originating summons dated April 16, 2024, Onifade contested the various power supply timelines set for residents in Nigeria.

    He insisted that a 20-hour power supply to Band A residents alone amounts to preferential treatment and discrimination of other Nigerians.

    He faulted the electricity price increment and downgrading, insisting that himself and other customers who are on B, C, D, and E are seeing their fundamental right to freedom from discrimination being breached by the development.
    He stated,

    “l am a legal practitioner practicing my trade in within the jurisdiction of the court and by virtue of my practice l am conversant with the 1999 Constitution of Federal Republic of Nigeria, the Electricity Act, 2023 and laws regulating the Review of Electricity supply in Nigeria and Consumer Rights in Nigeria.

    “That in addition to the above, I am a loyal Customer and Consumer of the product and services of the 2nd Defendant in Abuja with meter No. 04177493725 within the jurisdiction of this Honourable Court.

    “That on the 3rd April, 2024, the 1st Defendant introduced a policy of classification of the Claimant and other 2nd Defendant’s customers into band A, B, C,D, and E, and the said classification policy took immediate effect.

    “That by virtue of this classification, the 1st Defendant classified the 2nd Defendant’s Customers Iiving in the high brown urban areas of Maitama, Asokoro, Aso villa to Band A to enjoy electricity supply for 20 hours and above.

    “Similarly, by the same classification, the 1st Defendant classified the Claimant and other 2nd Defendant’s Customers living in less privileged areas to Band B, C D and E thereby consigning these categories of customers to a perpetual state of lower, limited electricity supply of 16 hours for customers on band B, 12 hours and above for Customers on Band C, 8 hours and above for Customers on band D and 6 hours and above for Customers on Band E respectively.

    “That the policy of classification of the 1st and 2nd Defendants gives preferential treatment of electricity supply to Customers in band A over and above the Claimant and other customers in band B, C, D and E respectively.

    “That the present policy and the introduction of new tariffs was done without knowledge of many of the distribution companies.”

    The applicant’s lawyer, Moses Awuru Esq, told the court that unless it intervenes, the injury and breach occasioned by the policy of classification of electricity supply to AEDC’s customers will persist.
    The Claimant thereby sought the following reliefs:

    “A DECLARATION that the Policy of classification of the Claimant and other Consumers by the 1st Defendant into band A, B, C, D and E is a breach of the Claimant’s and other Consumers fundamental Right to freedom from discrimination as enshrined in the African and Human and People Right’s and the Constitution of the Federal Republic of Nigeria 1999 (As Amended) and therefore unconstitutional, unlawful, illegal, null and void.

    ” AN ORDER of this Honourable Court perpetually restraining the Defendants, their privies, agents and other person from giving effect and continuing with the implementation of Multi Year Tarriff Order 2024 and increase in the of prices of Electricity and downgrading of the Claimant and other Customers by classification into Bands A, B, C, D, E forthwith.

    “AN ORDER of this Honourable Court mandating and compelling the Defendants to pay the Claimant jointly and severally the sum of N5,000,000.00 (five Milion Naira) only for breached of the Claimant’s fundamental right to freedom from discrimination by the Defendants.
    “AN ORDER of this Honourable Court directing and mandating the Defendants jointly and or severally to pay the Claimant the sum of N1, 000,000.00 (One Million Naira) only as Cost of this suit.

    Motion on notice
    In his motion on notice, Ewuru sought an order of interlocutory injunction restraining NERC, AEDC and the Attorney-General of the Federation from continuing with the policy of classification of Nigerian customers to Band A, B, C, D and E by their location and increasing their tariffs pending the hearing and determination of the substantive suit.

    He also urged the court to restrain the defendants from taking any special step that may negatively affect the rights of the claimant pending the hearing and determination of the suit.
    He stated that he has raised serious of law which needs to be determined urgently for the benefit of Nigerians.

    No date has been fixed for hearing of the matter.

    Meanwhile, NERC had revealed that the pp planned saving N1.5 trillion with the tariff adjustment while subsidizing Bands below the A classification.

    The Commission had fined Abuja Disco N20 million for wrongfully billing Band B customers with Band A electricity tariff rate.

  • National Grid Collapses

    National Grid Collapses

    Nigeria’s electricity grid has collapsed again.

    The grid collapsed around 2:42 am on Monday, with generation dropping to 64.70megawatt.

    Only one generation company, Ibom Power, was active according to data from the Independent System Operator (ISO), a branch of the Transmission Company of Nigeria, has shown.

    This is the sixth collapse in 2024.

    As of 8am on Monday, the latest data from the ISO showed that the grid is currently generating 266.50mw of electricity from Okpai, Geregu and Ibom power.

    Confirming the collapse in a statement, Jos DisCo said: “The current outage being experienced within our franchise States is a result of loss of power supply from the national grid. The loss of power supply from the national grid occurred in the early hours at about 0242Hours of today, Monday, 15th April 2024, hence the loss of power supply on all our feeders.”

    The company’s head of Corporate Affairs, Dr Friday Adakole Elijah, expressed hope that the grid is restored for normal power supply to its esteemed customers.

  • Court remands Emefiele in EFCC custody over $4.5bn, N2.8bn fraud

    Court remands Emefiele in EFCC custody over $4.5bn, N2.8bn fraud

    Justice Rahman Oshodi of the Lagos State Special Offences Court in Ikeja, Monday, remanded the immediate-past Governor of the Central Bank of Nigeria (CBN), Godwin Emefiele, in the custody of the Economic and Financial Crimes Commission (EFCC).

    Emefiele, who pleaded not guilty to a fresh 26-count charge bordering on abuse of office, is to remain in the custody of the anti-graft agency pending the determination of his bail application on Thursday.

    Justice Oshodi made the decision after Emefiele and his co-defendant, Herry Omoile, pleaded not guilty to a fresh 26-count charge bordering on abuse of office brought against his by EFCC.

    However, his co-defendant, Herry Omoike, was reminded in the custody of the Nigerian Correctional Services.

    The defence lawyer, Abdulakeem Ladi-Lawal, urged the court to admit his client to bail on self-recognition or on the most liberal terms.

    The lawyer particularly urged the court to impose the same bail conditions earlier granted to the defendant by Justice Hamzat Muazu of the Federal Capital Territory (FCT) High Court in Abuja and that he be released to his lawyers pending the perfection of the bail terms.

    Reacting, counsel to the commission, Rotimi Oyedepo (SAN), did not oppose the bail application.

    He, however, urged the judge to impose conditions that would compel the defendants to come to court for their trial.

  • Alleged money laundering: Binance executive docked, remanded in Kuje prison

    Alleged money laundering: Binance executive docked, remanded in Kuje prison

    Binance Company and one of its executives, Tigran Gambaryan, was, on Monday, arraigned on five count charges bordering on Money Laundering by the Economic and Financial Crime Commission (EFCC).

    On arraignment, Tigran Gambaryan pleaded not guilty of the alleged offences before Justice Emeka Nwite of the Federal High Court, Abuja.

    Before the arraignment, Justice Emeka Nwite had in a brief ruling dismissed the objection by Gambaryan to taking plea on behalf of Binance on the ground that he was not its representative and had no written authority to do so.

    The court held that Gambaryan had in an affidavit claimed to be representative of the company and transacted businesses on its behalf in Nigeria.

    The anti-graft agency through its counsel, Ekele Iheanacho said the offences which were committed between January 2023 and December 2023 in Abuja were contrary to and punishable under Section 18(3) of the Money Laundering (Prevention and Prohibition) Act, 2022.

    Count one alleged that the defendants between January 2023 and January 2024 in Abuja carried out specialised business of other financial institutions without valid licences.

    The offence is said to be contrary to Section 57(1) and (2) of the Banks and Other Financial, Institutions Act, 2020 and punishable under Section 57(5) of the same Act.

    Although the foreign national pleaded to be remanded at the custody of the Economic and Financial Crimes Commission EFCC, the plea was turned down by Justice Nwite.

    The judge subsequently ordered that the defendant be taken to Kuje Prison on remand.

    In the meantime, the matter has been adjourned until April 18 for hearing of the defendant’s application for bail and May 2 for trial of the charges.

  • Emefiele arrives in Lagos court for arraignment over alleged fraud

    Emefiele arrives in Lagos court for arraignment over alleged fraud

    The embattled former governor of the Central Bank of Nigeria, Godwin Emefiele, has arrived at the Ikeja State High Court in Lagos for his arraignment over alleged abuse of office and allocation of billions of dollars.

    Emefiele, alongside his co-defendant, one Henry Isioma Omole, will be arraigned on fresh 26 counts before Justice Rahman Oshodi this morning.

    In the charge marked ID/23787c/2024 and dated April 3, 2024, the EFCC alleged that Emefiele abused his office between 2022 and 2023 in Lagos.

    The commission alleged that the former CBN governor “directed to be done in abuse of the authority of your office, as the Governor, Central Bank of Nigeria, an arbitrary act, to wit: allocating foreign exchange in the aggregate sum of $2,136,391,737.33 without bids, which act is prejudicial to the rights of Nigerians.”

  • Blackout Looms As Electricity Workers Threaten Strike Over Tarriff Hike 

    Blackout Looms As Electricity Workers Threaten Strike Over Tarriff Hike 

    The National Union of Electricity Employees (NUEE) has strongly criticized the recent increase in electricity tariffs by the federal government. 

    The Nigerian Electricity Regulatory Commission (NERC) announced the tariff hike on April 3, affecting customers enjoying 20 hours of daily power supply.

    Under the new classification, customers in Band A will pay N225 per kilowatt-hour, a significant increase from the previous N66 rate. 

    In response, NUEE, led by its National President Adebiyi Adeyeye, has demanded a reversal of the hike, citing its disproportionate impact on those reliant on electricity for daily needs.

    Adeyeye emphasized the importance of government subsidies for electricity, pointing to examples from advanced countries like Germany and the United States. 

    He argued that the tariff hike disregards the economic struggles of Nigerian workers and threatens to exacerbate inequalities.

    NUEE warned of potential action, including the withdrawal of its members, if the government fails to address the issue promptly. 

    The union called upon all Nigerians to join in opposing the tariff hike and advocating for the prioritization of citizens’ well-being over corporate interests.

    “If the government fails to address the crippling cost of electricity, NUEE will not hesitate to take strong action, including the swift withdrawal of our members expected to be used by DISCOs to impose the tariff hike on the good people, to protect the livelihood of our members.

    “I, however, call upon all Nigerians to join us in raising our voices against this injustice. Together, we can force the government to prioritize the well-being of its citizens over corporate interests. Our unwavering commitment remains to safeguard the interests of our members and ensure equitable access to electricity for all Nigeria.”

  • Obasanjo’s farm, 27 feeders downgraded from Band A to E after FG increased electricity tariff 

    Obasanjo’s farm, 27 feeders downgraded from Band A to E after FG increased electricity tariff 

    The Ibadan Electricity Distribution Company, IBEDC, has made public the names of erstwhile Band A feeders downgraded to B, C D, or E.

    The Farm Feeder serving the Obasanjo Farm, owned by Former President Olusegun Obasanjo, was downgraded from Band A to Band E in the list released by the IBEDC on Saturday, April 6.

    About 28 feeders under the IBEDC were downgraded in Oyo, Ogun, Kwara, and Osun States.

    In the list, some areas dropped from 20 hours of daily power supply to zero hours.

    The Nigerian Electricity Regulatory Commission, NERC, has said this brought about the removal of those feeders from Band A to the band that fits their daily power allocation.

    Announcing the April 2024 supplementary Multi-Year Tariff Order on Wednesday, April 3, the Federal Government said it would no longer pay subsidy on electricity consumed by Band A customers, saying others would continue to pay the old rates.

    Band A customers, who were said to be enjoying electricity for a minimum of 20 hours per day now pay N225 kilowatt per hour.

    Here is the list of IBEDC Band A downgraded feeders:

    1. IBADAN: Bank Road 11kv Feeder – Magazine Road, Oba Adebimpe Road, Oke Bola (Now in Band B with 16 hours supply)

    2. OGUN: GTB 11kv Feeder: Only GTBank Training School, Oke Ilewo Abeokuta ( Now in Band B with 19 hours power supply)

    3. KWARA: Seminary 11kv Feeder: From High-school Area to Seminary, Randa area, Olomi area, Bowen Area, Takie Junction, Apake area, Star- Light area, Sabo area, Orita Naira Junction and Terminated at Bode-Eniafe Street (Downgraded to Band B with 16 hours power supply)

    4. IBADAN: Ami 11KV Feeder: Onireke, Jericho, Railway Quarters (Downgraded to Band C with 12 hours power supply)

    5. KWARA: Asa 11KV Feeder: Asa Dam, Ilorin (Downgraded to Band C with 14 hours power supply)

    6. OGUN: Homan 11kv Feeder: Daraju, Eagle Packages and NYCIL (Downgraded to Band C with 14 hours power supply)

    7. OGUN: Rite Food Quarters 11kv Feeder: Rite Food Quarters (Downgraded to Band C with 12 hours power supply)

    8. KWARA: Senior Staff Qtrs F20 11kv Feeder: Senior Camp Road (Downgraded to Band C with 15 hours power supply)

    9. KWARA: SF2 New Bussa 11kv Feeder: Ibadan Way, Wawa Garage Road (Downgraded to Band C with 12 hours power supply)

    10. IBADAN: State House 11kv Feeder: Ikolaba, Kuye, Road 214, Oniκοκο (Downgraded to Band C with 14 hours power supply)

    11. KWARA: Yidi 11kv Feeder: Asa Dam Road, Irewolede Road, High Merit Road (Downgraded to Band C with 14 hours power supply)

    12. IBADAN: Dugbe Awolowo 11kv Feeder: Old Bodija, Sango, and Veterinary (Downgraded to Band D with 11 hours power supply)

    13. KWARA: Government House 11kv Feeder: Agba Dam Road, Umaru Audi Road, Adelodun Road, Abdulkadir Road, Saad Alamu Street, Offa Road, Flower Garden, Idiagbon Street, Sayomi Street 2nd Avenue Street (Downgraded to Band D with 9 hours power supply)

    14. IBADAN: ONIREKE 11KV FEEDER: Link Reservation, Joe Berchort, Oba Akensua (Downgraded to Band D with 10 hours power supply)

    15. IBADAN: Oremeji 11kv Feeder: Oba Akinbiyi, Uncle Joe, Letmauk Barracks Road (Downgraded to Band D with 8 hours power supply)

    16. IBADAN: Anfani 11KV Feeder: Anfani Road, Ibadan (Downgraded to Band E with 5 hours power supply)

    17. KWARA: Basin 11kv Feeder: Umaru Audi Road, Fate Road, Fate Tanke Road, Gra Ilorin, Gss Ilorin, Mubo Strrt, Agric Estate, Sango Road, Alhaji Tunde Mohammed Road, Panat, Station Road, Catchment Road (Downgraded to Band E with 7 hours power supply)

    18. Oyo: Crown 11KV Feeder: Premier Rd, Oshuntokun, Adeyi, Awolowo Road (Downgraded to Band E with 1-hour power supply)

    19. OGUN: Farm 11KV Feeder: Main Obasanjo Farm (Downgraded to Band E with 7-hour power supply)

    20. OSUN: Gbongan Road 11kv Feeder: Gbongan-Ibadan Road (Downgraded to Band E with 0-hour power supply)