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FG proposes N47.9trn as 2025 budget

by Folarin Kehinde
written by Folarin Kehinde

The federal government has proposed N47.9 trillion as the total expenditure in the 2025 budget.

Atiku Bagudu, the minister of budget and economic planning, told journalists on Thursday, after the federal executive council (FEC) meeting presided over by President Bola Tinubu.

Vaguely said the council approved the medium-term expenditure framework (MTEF) for 2025-2027.

He said the government pegged the crude oil benchmark at $75 per barrel and oil production at 2.06 million barrels per day (bpd).

The budget minister said the exchange rate was pegged at N1,400 per dollar, noting that the government is targeting a gross domestic product (GDP) growth rate of 6.4 percent.

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Business

MultiChoice Nigeria loses 243,000 subscribers as economic pressure bites harder

by Folarin Kehinde
written by Folarin Kehinde

MultiChoice Nigeria’s subscriber base has shrunk by 243,000 amid the tough economic conditions in the country.

This was disclosed in the company’s interim financial report released on Tuesday, November 12.

According to the company, many of its subscribers in Nigeria have abandoned their decoders due to the tough economic situation in the country.

Meanwhile, overall group revenue at Multichoice fell by 10% to $1.41 billion on a reported basis but grew by 4% on an organic basis, which excludes the impact of foreign exchange effects and mergers and acquisitions.

Multichoice said subscriptions fell by 5% and 15% respectively in its South African and Rest of Africa operations.

It said profit was further hit by incremental investments in streaming platform Showmax, which Multichoice is prioritising to fight off competition from streaming giants Netflix, Amazon and Disney.

“Stripping out Showmax, the group would have seen reported trading profit increase by 28% on an organic basis,” the company revealed.

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Business

Every Nigerian Now Owes About N620,000 – DMO

by Folarin Kehinde
written by Folarin Kehinde

The debt management office (DMO) has stated that every Nigerian currently owes the sum of N620,000 adding that Nigeria’s public debt stood at N134.297 trillion as of the second quarter of 2024 (June, 2024).

A data review for the second quarter debt portfolio of the country released by the National Bureau of Statistics (NBS) has shown that the debt owed by every Nigerian on the average stood at N619,501.

According to the data published by the Debt Management Office, Nigeria’s public debt stood at N134.297 trillion as of the second quarter of 2024 (June, 2024).

With the National Bureau of Statistics putting the country’s population at 216.7 million persons, it would mean that debt per capita stands at N619,501 based on the latest debt figure released by the DMO.

Put into further context, each Nigerian owes nine times the newly approved minimum wage of N70,000, if debt per capita is put into context.

The debt data further shows that domestic debt stands at N71.2trillion, whole external debt stands at N63 trillion.

Of the amount owed, States owe N7.1 trillion externally while the federal government owes N55.8 trillion externally.

States owe N4.2 trillion domestically while federal government owes N66.9 trillion.

The new debt figure of the country put at N134 trillion is a N13 trillion increase from the N121 trillion recorded as of March 2024.

The development is amid clamour for less reliance on loans by the Nigerian government.

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Business

BREAKING: IPMAN, Dangote Agree To Lift PMS, AGO, DPK Directly

by Folarin Kehinde
written by Folarin Kehinde

The Independent Petroleum Marketers Association of Nigeria (IPMAN) has secured an agreement with Dangote Refinery to lift products directly.

IPMAN National President, Abubakar Garima, announced this in Abuja on Monday after a meeting of the National Working Committee of the Association.

He said the partnership will ensure steady, and affordable supply of PMS products nationwide.

Girima said After meeting with Aliko Dangote and his management team in Lagos, “we’re pleased to announce that Dangote Refinery has agreed to supply IPMAN with PMS, AGO, and DPK directly for distribution to our depots and retail outlets.”

Garima urged IPMAN members to support Dangote Refinery, citing backward integration benefits and positive impacts on Nigeria’s Foreign Exchange market.

Regarding pricing, Garima expressed confidence that negotiations with Dangote would yield lower rates.

On Compressed Natural Gas (CNG), The IPMAN President said the Association is preparing for a seamless transition to CNG refill stations nationwide as it is currently negotiating with the presidential CNG initiative

This partnership is expected to increase efficiency, affordability, and economic growth for Nigeria’s petroleum industry.

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Business

NCC Addresses Consumer Concerns At 93rd Telecom Consumer Parliament

by Folarin Kehinde
written by Folarin Kehinde

The Executive Vice Chairman, Nigerian Communications Commission (NCC), Dr. Aminu Maida, on Thursday November 7th, addressed the 93rd Telecoms Consumer Parliament, focusing on enhancing consumers’ data experiences in Nigeria’s digital landscape.

Speaking on the theme,“Optimizing Data Experience”, Dr Maida acknowledged the nation’s rapid growth in data use, fueled by digital advancements and the adoption of 4G and 5G technology.

The NCC Boss explained common consumer issues, such as unexpected data depletion, which are partly due to advanced devices and high-resolution content. He highlighted NCC’s new initiatives, including a campaign for smarter data usage and simplified billing transparency, aimed at helping consumers make informed choices.

The EVC also spoke on challenges faced by the telecom sector, such as vandalism and high operating costs, and highlighted the recent Presidential Order declaring telecom infrastructure as “Critical National Information Infrastructure.” This protection aims to curb vandalism and improve service reliability.

Concluding, the EVC reiterated NCC’s commitment to a consumer-focused telecom industry, promising new resources like incident reports and network coverage maps to empower Nigerians in their telecom choices. The parliament encouraged an open dialogue, ensuring that consumers’ voices are valued and heard.

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Business

Signature Bank Appoints Borodo as Acting Chairman

by Folarin Kehinde
written by Folarin Kehinde

Signature Bank has announced the appointment of Tijjani M. Borodo, as the new Acting Chairman of the Board of Directors, following the retirement of Dr. Mutiu Sunmonu.

In a statement, the bank said Sunmonu’s leadership played a pivotal role in guiding Signature Bank through its start-up phase, positioning it for future growth and success.

Speaking on the appointment, the Board of Signature Bank expressed its gratitude to Dr. Sunmonu for his steadfast dedication and contributions to the Bank’s foundation and growth. His two-year stewardship was pivotal in guiding Signature Bank through its formative years, and the Bank will continue to benefit from the strong foundations laid under his leadership.

According to the statement, Alhaji Borodo brings with him over 40 years of cognate experience which spans through banking and legal practice. He is widely respected for his legal expertise and leadership in corporate governance.

The statement said: His distinguished career includes fellowships at the Chartered Institute of Directors (Nigeria), the Society for Corporate Governance Nigeria, the Institute of Chartered Secretaries and Administrators, Nigeria and the National Institute of Credit Administration.

“In addition, Alhaji Borodo is an active member of the International Bar Association, Nigeria Bar Association, and an Honorary Senior Member of the Chartered Institute of Bankers of Nigeria.

“Currently, Alhaji Borodo is the President and Chairman of Governing Council, Chartered Institute of Directors (CIoD) and the Principal Partner at Tijjani M. Borodo & Associates, a top-tier law firm with offices in Lagos and Abuja, where he has built a reputation for excellence and integrity in legal services.

“We welcome Alhaji Tijjani M. Borodo to his new role and look forward to his leadership as we continue to offer world-class banking solutions to our esteemed customers.

“Signature Bank remains committed to its vision of providing innovative financial solutions that meet the evolving needs of its customers, while maintaining the highest standards of governance and professionalism.”

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Business

Hardship: Cost of goods to rise as bank network issues delay container pick-ups at ports

by Folarin Kehinde
written by Folarin Kehinde

Persistent network issues caused by electronic banking portal upgrades at some commercial banks are currently disrupting cargo clearance at Apapa and Tin-Can Ports.

The disruptions have trapped many import containers because essential customs duties cannot be paid, delaying the entire cargo clearance process.

The National President of the Africa Association of Professional Freight Forwarders and Logistics of Nigeria (APFFLON), Mr. Frank Ogunojemite, noted that the process of clearing cargoes involves financial transactions through banks to pay customs duties.

He stated that when banks experience service outages due to network migrations, importers cannot proceed with payments, causing containers to remain in the port.

According to him, the delay leads to costly storage and demurrage fees, which importers often pass on to consumers, contributing to high prices of goods in the market.

The clearance of cargoes at the ports usually goes through Form M and the Pre Arrival Assessment Report (PAAR).

“For you to begin the clearance process, the transaction has to go through a commercial bank because you have to pay your Customs duty.

“If the banking system or network is down, then there is no way you can pay for Customs duty, and if that is the case, then the container will remain in the port accumulating rent which comes with storage and demurrage payments.

If this kind of situation persists, then there is no way prices of goods can come down because cargoes are spending longer time in the ports due to disruptions to banking services.

Government should introduce what is called a ‘compensatory law’ where importers are given waivers when delays to their cargoes inside the ports is not from them.

“Most times, the banks will tell us that they apologise for the network disruptions, but the question is: does this apology make any meaning to the cargo clearance chain?

“There should be a compensatory law where cargo owners are given waivers due to issues beyond them that delay cargoes inside the ports.

There was a time when Unity Bank was down for weeks and then it became the turn of Guaranty Trust Bank (GTB) and Zenith Bank. Most of the banks are migrating their system to higher versions, and this is affecting cargo clearance.

“Amid all these delays, the cargoes are accumulating storage and demurrage charges which the cargo owners are being forced to pay. How does the government expect the cost of goods to come down when the same goods have already accumulated charges right inside the ports?

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Business

Dangote Refinery Sells Petrol At N960/Litre To Ships, N990 For Trucks — Spokesman

by Folarin Kehinde
written by Folarin Kehinde

Dangote Refinery has disclosed the price of its petrol, saying that it sells at N990 per litre in trucks and N960 per litre into ships.

The disclosure follows the Independent Petroleum Marketers Association of Nigeria (IPMAN) and Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) claim of importing the products at cheaper rates compared to that of Dangote.

The marketers had in an earlier interview claimed that they are buying at cheaper rates abroad while calling on Dangote Refinery to engage stakeholders.

But in its reaction, the refinery said that it is only substandard products that can be imported at cheaper rates than its own products.

In a statement released Sunday night and signed by the Group Chief Branding and Communications Officer, Anthony Chiejina, Dangote Refinery noted that it followed the pricing benchmark by the Nigerian National Petroleum Company Limited (NNPCL), adding that it went lower in pricing for selling into ships.

It reads, “Both organisations claim that they can import PMS at lower prices than what is being sold by the Dangote Refinery. We benchmark our prices against international prices and we believe our prices are competitive relative to the price of imports.

“If anyone claims they can land PMS at a price cheaper than what we are selling, then they are importing substandard products and conniving with international traders to dump low-quality products into the country, without concern for the health of Nigerians or the longevity of their vehicles. Unfortunately, the regulator (NMDPRA) does not even have laboratory facilities which can be used to detect substandard products when imported into the country.

Post deregulation, NNPC set the pace by selling PMS to domestic marketers at N971 per litre for sale into ships and at N990 for sale into trucks. This set the benchmark for our pricing and we have even gone lower to sell at N960 per litre for sale into ships while maintaining N990 per litre for sale into trucks.

“In good faith, and in the interest of the country, we commenced sales at these prices without clarity on the exchange rate that we will use to pay for the crude purchased.

“At the same time, an international trading company has recently hired a depot facility next to the Dangote Refinery, to use it to blend substandard products that will be dumped into the market to compete with Dangote Refinery’s higher quality production.

“This is detrimental to the growth of domestic refining in Nigeria. We should point out that it is not unusual for countries to protect their domestic industries to provide jobs and grow the economy. For example, the US and Europe have had to impose high tariffs on EVs and microchips to protect their domestic industries.

“While we continue with our determination to provide affordable, good quality, domestically refined petroleum products in Nigeria, we call on the public to disregard the deliberate disinformation being circulated by agents of people who prefer for us to continue to export jobs and import poverty.”

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Business

BREAKING: Nigeria’s Public Debt Hits N134.3 Trillion in Q2 2024

by Folarin Kehinde
written by Folarin Kehinde

Nigeria’s public debt has reached an all-time high of N134.3 trillion, as of the end of the second quarter of 2024.

This represents a sharp increase compared to the N121.7 trillion recorded just a few months earlier in the first quarter.

The main reason for the increase is the devaluation of the country’s currency, the naira. According to a report from the Ministry of Finance, the dollar amount of the debt has not changed much, but because the naira has lost value, the debt appears larger when counted in local currency.

“In Q2 2024, the debt stock grew in naira terms to N134.3 trillion ($91.3 billion) from N121.7 trillion ($91.5 billion) in Q1 2024, driven mainly by exchange rate devaluation. The dollar amount of debt was roughly the same,” the report said.

Nigeria’s debt is split between domestic and external loans. About 53% of the debt is local, meaning it is owed to creditors inside Nigeria. This local debt is worth N71.2 trillion. The other 47%, or N63.1 trillion, is foreign debt owed to other countries and international financial institutions.

The report also shows that the country’s debt-to-GDP ratio, which compares the total debt to the size of the economy, has risen above 50%.

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Business

NNPCL Begins $6 Billion Debt Repayment Process, FG Reveals

by Folarin Kehinde
written by Folarin Kehinde

The Nigerian National Petroleum Company Limited (NNPCL) has officially commenced the process of settling its $6 billion debt, according to a statement made by Wale Edun, the Minister of Finance and Coordinating Minister for the Economy.

This announcement was made during a meeting with investors in Washington, D.C., on Wednesday, October 23.

Edun addressed concerns about the NNPCL’s financial situation, which had become stressed due to its outstanding obligations to suppliers.

He explained that although the fuel subsidy was removed in May 2023, the company faced financial challenges due to foreign exchange costs.

“The reality is that although the subsidy was removed on May 29, 2023, and is no longer on the government’s balance sheet, it did rear its head—not in terms of petrol subsidy, but foreign exchange subsidy, which was borne elsewhere, mainly by NNPC,” Edun said.

The Minister confirmed that the NNPCL has started working on a clear path to pay off its debts.

“What I can say about their situation now is that they have a route to paying down their payables, and I’m sure that in no time, they will start. From what I understand, they have even commenced the process of paying down their payables,” he added.

NNPCL’s debt to its suppliers has been a growing concern, amounting to over $6 billion, as reported by various sources.

The company has previously admitted to facing financial strain in keeping up with the cost of maintaining supply amidst its mounting debts.

The Nigerian government’s announcement is expected to reassure both domestic and international investors about the company’s financial stability.

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