Economy

Djibouti, DP World Bicker over London Court Ruling

Published

7 years ago

04/08/2018

By Modupe Gbadeyanka

The government of Djibouti and a company known as DP World are arguing over a ruling by the London Court of International Arbitration on the cancellation of the Doraleh Container Terminal contract between both parties.

The court had ruled in favour of the firm, but the government of Djibouti released a statement on Friday that it “does not recognise the international rule of law.”

According to the statement issued by the government, the deal was terminated in the interest of the country.

Business Post reports that on February 22, 2018, Djibouti terminated the concession for the Doraleh container terminal, awarded in 2006 to Doraleh Container Terminal (DCT), a company controlled de facto by the minority shareholder DP World.

It was claimed by Djibouti that implementation of the concession contract had proved to be contrary to the fundamental interests of the country, noting that the continuation of the concession contract was seriously prejudicial to the its development imperatives and to the control of its most strategic infrastructure.

According to the government, several attempts to renegotiate the concession with DP World were unsuccessful because of the firm’s repeated refusal to hear the legitimate objections and requests of the Djiboutian State.

“This termination, which was therefore necessary and unavoidable, is made in accordance with international public law which recognizes the ability of a sovereign state to unilaterally terminate a contract on public interest grounds, subject to payment of fair compensation to the other party. The termination was decided in the context of a transparent procedure. It finds its legal basis in a law enacted by the Djiboutian Parliament on November 8, 2017, aimed at protecting the fundamental interests of the Nation, completed by a decree dated February 22, 2018,” the statement said.

“DCT, at DP World’s request, nevertheless decided to oppose it and initiated arbitration proceedings before the LCIA (London Court of International Arbitration) with the aim, publicly announced by DP World, of resuming as soon as possible its rights on the concession and thus the operation of the Doraleh container terminal.

“Logically, the Republic of Djibouti did not participate in this procedure, considering that LCIA would only judge this dispute on the basis of the terms of a contract contrary to Djibouti’s fundamental interests.

“On 31 July 2018, the sole arbitrator appointed under the aegis of LCIA rendered a partial arbitral award, which the Government of the Republic of Djibouti has become aware of.

“The sole arbitrator has concluded that the concession contract could not be terminated by the Government of the Republic of Djibouti under the law passed by the Djiboutian Parliament on November 8, 2017 and considered that the contract was still in force.

“The Republic of Djibouti does not recognize this arbitral award which consists in qualifying the law of a sovereign State as illegal.

“Indeed, the arbitral award seems to consider that the terms of the concession contract entered into between the Port of Djibouti and DCT, are above Djiboutian law. It disregards the sovereignty of the Republic of Djibouti and takes no account of public international law rules.

“Following the arbitral award’s reasoning, it is also understood that a sovereign State would not have the right to terminate a contract the implementation and performance of which is considered contrary to its fundamental interests, but would however authorize the other party to it (DP World) to terminate the said contract to protect its commercial interests…

“In other words, a contract would have a higher value than a law adopted in the name of a sovereign nation.

“Moreover and in any case, DP World’s approach which consists in trying to oppose the will of a sovereign State is unrealistic and doomed to failure. The concession contract has been terminated, the staff and assets of the concession were transferred to a public company specifically created for this purpose and which now manages this infrastructure.

“That is why, in this case, only an outcome consisting in the payment of a fair compensation in accordance with the principles of international law can be envisaged, the statement by Djibouti said.

But reacting on Saturday, DP World said the court’s decision upholding the continuing validity of the concession was based on recognised principles of international law and is internationally binding both on the Djibouti government and so far as third parties are concerned.

“As the Court has held, Djibouti does not have sovereignty over a contract governed by English law. It is well established that, in the absence of an express term to that effect, an English law contract cannot be unilaterally terminated at will. The contract therefore remains in full force and effect,” a statement issued by DP World stated.

The company noted that, “The Djibouti government’s repeated statements that the port concession has proved contrary to the fundamental interests of the Republic of Djibouti do not bear scrutiny.

“As the court’s decision records, the government’s own representatives have given evidence that the port has been ‘a great success for Djibouti’. The terms of the concession have also been held in two previous cases brought by the government itself to have been ‘even handed and fair’.

“In light of that indisputable success, and the fair and reasonable terms of the concession, the government’s attempts to terminate it cannot have anything to do with the fundamental interests of the people of Djibouti.”

Economy

Nigeria Not Among 10 Most Cryptocurrency-Obsessed Countries

Published

15 hours ago

30/03/2025

Dipo Olowookere

By Dipo Olowookere

A new report by Atmos has revealed that Nigeria is not among the 10 most cryptocurrency-obsessed countries in the world despite a growing interest in digital assets among citizens.

In the report made available to Business Post, it was disclosed that the United Arab Emirates (UAE) is the most crypto-obsessed country in 2025, with over a quarter of its population owning at least a digital coin.

It was discovered that the country has exceptional adoption growth at 210 per cent and moderate searches despite having minimal Bitcoin ATM infrastructure.

Following is Singapore with a score of 97.5, with nearly a quarter of its population having cryptocurrency, and has seen a 150 per cent increase in adoption. With 160,000 monthly crypto searches, Singapore maintains its reputation as one of the most engaged markets in the space despite lacking any Bitcoin ATMs.

The United States was third with an ownership rate of 15.5 per cent, though leading in Bitcoin ATMs, housing nearly 30,000 nationwide. It also records the highest number of crypto searches, surpassing 4.2 million monthly, indicating a continued mainstream interest in digital assets.

The fourth place was Canada though it has an adoption growth rate at 225 per cent, with 10.1 per cent of its population now holding cryptocurrency. It hosts the second-largest Bitcoin ATM network globally with 3,561 machines, dramatically fewer than the US but thousands more than any previous country.

Turkey secured the fifth spot with crypto ownership of 19.3 per cent, and a monthly search rate of 802,000. While adoption growth of 135 per cent is slightly lower than other top-ranked countries, Turkey’s increasing reliance on digital assets amid economic uncertainty highlights its strong position in the crypto market.

The sixth was Germany and adoption growth rate at 225 per cent, with over one million crypto-related searches per month, Switzerland ranked seventh, Australia occupied eighth place, Argentina ranked ninth and South Korea occupied the 10th place.

“Cryptocurrency adoption is not just about investment trends. It is reshaping financial systems worldwide. In some regions, it is a hedge against inflation and currency instability, while in others, it is a step toward a more digitized economy.

“What truly drives adoption is not just interest but accessibility. When regulatory clarity, payment integration, and real-world utility align, crypto moves from speculation to a fundamental part of everyday transactions.

“As global financial landscapes shift, the countries embracing this evolution will be the ones setting the standard for the future of digital finance,” the chief executive of Atmos, Mr Nick Cooke, said.

Economy

Sage Grey Backs Impact-Driven Financial, Technological Solutions

Published

15 hours ago

30/03/2025

Modupe Gbadeyanka

By Modupe Gbadeyanka

A leading technology firm, Sage Grey Technologies, has reaffirmed its commitment to driving financial inclusion, SME growth and technological innovation through strategic partnerships and product development.

The firm, alongside its sister company, Sage Grey Finance, said it is making efforts to expand financial access for SMEs, drive technological advancements, and contribute to sustainable economic development through solutions.

“We are committed to building technology solutions that not only enhance business operations but also create social impact.

“Our goal is to bridge efficiency gaps in Nigeria’s digital ecosystem while ensuring that businesses and individuals benefit from technology-driven opportunities,” the Chief Operating Officer of Sage Grey Technologies, Mr Yemi Jinadu, stated.

Also, the Executive Director of Sage Grey Finance, Mr Jumo Atiba, said, “At Sage Grey Finance, we believe in the transformative power of impact financing.

“Our unique position in Nigeria’s financial ecosystem allows us to unlock opportunities that generate both financial returns and meaningful social impact.

“As a licensed and regulated entity by the Central Bank of Nigeria, we seamlessly blend profitability with social impact. Our integration into the Nigeria Inter-Bank Settlement System ensures we deliver secure, efficient financial services, setting us apart.

“Our journey is rooted in empowering businesses, fostering sustainable development, and creating enduring value for our stakeholders and communities.”

Sage Grey Technologies’ product innovations include Splitmulti, a digital marketplace that allows businesses and consumers to make bulk purchases at wholesale prices, providing cost-effective solutions for retailers and end users; Proxze, a platform that connects businesses with verified service providers, including business professionals, simplifying compliance and financial management; Adzplug, a street-level advertising solution that allows shop owners to earn passive income while giving brands direct access to local markets; and Nkiru, a customer support solution that provides corporates and SMEs with digital reception services, helping them establish a professional presence without physical office costs.

On its part, Sage Grey Finance offers a tailored SME funding scheme that enables small businesses to access financing at a highly competitive 9 per cent interest rate.

It also support small business owners through partnership with the National Association of Small and Medium Enterprises (NASME) to facilitate direct engagement with entrepreneurs, ensuring that financing solutions reach those who need them most, and improve access to capital to underserved groups such as women and youth by providing dedicated financial products designed to foster economic empowerment.

Economy

Tinubu Signs Investments and Securities Act 2025 into Law

Published

2 days ago

29/03/2025

Aduragbemi Omiyale

By Aduragbemi Omiyale

President Bola Tinubu has signed the Investments and Securities Act (ISA) 2025 into law, repealing the Investments and Securities Act No. 29 of 2007

The enactment of the ISA 2025 reaffirms the authority of the Securities and Exchange Commission (SEC) as the apex regulatory authority of the Nigerian capital market. The new Act also introduces transformative provisions to further align Nigeria’s market operations with international best practices.

It strengthens the legal framework of the Nigerian capital market, enhances investor protection, and introduces critical reforms to promote market integrity, transparency, and sustainable growth.

The Director-General of the SEC, Mr Emomotimi Agama, lauded the President’s assent as a transformative step for the capital market.

“The ISA 2025 reflects our commitment to building a dynamic, inclusive, and resilient capital market. By addressing regulatory gaps and introducing forward-looking provisions, the new Act empowers the SEC to foster innovation, protect investors more efficiently and reposition Nigeria as a competitive destination for local and foreign investments.

“We commend all stakeholders within and outside the capital market community for their unwavering solidarity towards the achievement of this historic milestone and solicit their continued collaboration in respect of the effective implementation of the ISA 2025 for the benefit of our economy,” he stated.

Business Post reports that the Act enhances the regulatory powers of the SEC in a manner comparable with benchmark global securities regulators. These enhanced powers and functions ensure full conformity with the requirements of IOSCO’s Enhanced Multilateral Memorandum of Understanding (EMMoU), enabling the SEC retain its Signatory A status and enhancing the overall attractiveness of the Nigerian capital market.

Other notable provisions of the ISA 2025 include:

Classification of Exchanges and inclusion of provisions on Financial Market Infrastructures– The Act classifies Securities Exchanges into Composite and Non-composite Exchanges. A Composite Exchange is one in which all categories of securities and products can be listed and traded, while a Non-composite Exchange focuses on a singular type of security or product. There are also new provisions on Financial Market Infrastructures such as Central Counter Parties, Clearing Houses and Trade Depositories.

Expansion of the definition and Understanding of Securities – The Act explicitly recognises virtual/digital assets and investment contracts as securities and brings Virtual Asset Service Providers (VASPs), Digital Asset Operators (DAOPs) and Digital Asset Exchanges under the SEC’s regulatory purview.

Comprehensive Insolvency Provisions for Financial Market Infrastructures – The Act introduces provisions that exempt transactions facilitated through or otherwise involving Financial Market Infrastructures from the application of general insolvency laws.

Management of Systemic Risk – The Act introduces provisions for the monitoring, management and mitigation of systemic risk in the Nigerian capital market.

Expansion of the Category of Issuers to the Public– The Act expands the categories of issuers, as a key step towards the introduction of a wide range of innovative products and offerings as well as the facilitation of “commercial and investment business activities”, subject to the approval of the Commission and other controls stipulated in the Act.

Legal Framework for Commodities Exchanges – The Act contains a new Part which provides for the regulation of Commodities Exchanges and Warehouse Receipts. These provisions are essential to allow for the development of the entire gamut of the Commodities ecosystem.

Issuance of Securities by Sub-Nationals and their Agencies– Salient provisions of the Act address existing restrictions in respect of raising of funds from the capital market by Sub-Nationals to allow for greater flexibility in this regard.

Transparency in Securities Transactions – The Act introduces the mandatory use of Legal Entity Identifiers (LEIs) by participants in capital market transactions. This stipulation is designed to improve transparency in the conduct of securities transactions.

Enforcement Against Illegal Investment Schemes – The Act expressly prohibits Ponzi Schemes and other unlawful investment schemes while prescribing stringent jail terms and other sanctions for the promoters of such schemes.

Strengthening the Investments and Securities Tribunal– The Act amends some key provisions in the repealed ISA 2007 pertaining to the Composition of the Tribunal, constitution of the Tribunal, qualification and appointment of the Chief Registrar as well as the jurisdiction of the Tribunal to enhance the ability of the Tribunal to optimally discharge its mandate.