Economy
Nigeria is Broke—Amaechi
By Dipo Olowookere
The Minister of Transportation, Mr Rotimi Amaechi, has said Nigeria is presently battling with a financial crisis and would not be able to carry out its obligations unless it borrows money.
Speaking during a live television show last Friday and monitored by The Nation, the former Governor of Rivers State said the federal government was forced to seek financial help elsewhere in order to build infrastructure for the benefits of Nigerians.
Mr Amaechi was reacting to the public outcry on the $500 million loan the administration of President Muhammadu Buhari obtained from China.
The National Assembly had raised an alarm over a sovereign immunity clause in the $500 million loan, saying that China was given the approval to take over the country’s assets if Nigeria defaults in the payment of the credit facility.
But the Minister warned that “if the outcry is too much, then we will stop collecting loans, and when we stop, there will be no development.”
According to him, “Before we came, there was money, but now, we don’t have money. It is just that we are on oath not to reveal the government’s confidential matter. If not, I can say as the former chairman of the governors’ forum, what was in the purse.”
Mr Amaechi explained that the clause in the loan deal being talked about was the normal thing in every agreement, but stressed that plans have already been mapped out on the repayment.
“They are there in every loan signed and the borrowers want to know that the country they are giving money will be able to pay back.
“It is a commercial agreement between Nigeria and China. Let us not look at the legal issues right now. The first issue is that the Ministry of Transportation does not take loans. Anything about loans has to be done by the Ministry of Finance, so I could not have signed a loan because it is not my jurisdiction.
“What I signed is what they call commercial contract between the federal government and CCECC as the contractor, and the contract between Nigeria and China is usually signed by the ministry of finance on behalf of Nigeria.
“Whether it is the Ministry of Finance that signed it or the Ministry of Transportation, the issue is that there is nothing of such that will not warrant an agreement, and that agreement must contain some terms, and one of those terms in this agreement is not that we are signing away the sovereignty of the country. What we do is to give a sovereign guarantee.
“What it means is that if tomorrow I am not able to pay back the loan and you come to collect the item we agreed upon, I cannot waive my immunity and say that you cannot touch the assets, because we are a sovereign country. The terms say if we are not able to pay, we should not stop them from taking back those items that will make them recover their fund.
“The clause is a standard one whether it is America or Britain we sign an agreement with because the countries want to know if they can recover their money.
“What the clause does is to say to you that I expect you to pay the money according to the terms agreed, and if you don’t pay, don’t waive your immunity on me when I come to collect back the guarantee that you put forward. That is all,” he explained.
The Minister said $96 million has been paid out of the $500 million loan for the Abuja-Kaduna rail corridor, assuring that the projects being constructed with the funds would be used to repay the loan.
“The Ministry of Finance [does] the repayment and they are meeting the requirement,” he said.
By Adedapo Adesanya
The duo of Afriland Properties Plc and Geo-Fluids Plc crashed the NASD Over-the-Counter (OTC) Securities Exchange by a marginal 0.06 per cent on Wednesday, December 11 due to profit-taking activities.
The OTC securities exchange experienced a downfall at midweek despite UBN Property Plc posting a price appreciation of 17 Kobo to close at N1.96 per share, in contrast to Tuesday’s closing price of N1.79.
Business Post reports that Afriland Properties Plc slid by N1.14 to finish at N15.80 per unit versus the preceding day’s N16.94 per unit, and Geo-Fluids Plc declined by 1 Kobo to trade at N3.92 per share compared with the N3.93 it ended a day earlier.
At the close of transactions, the market capitalisation of the bourse, which measures the total value of securities on the platform, shrank by N650 million to finish at N1.055 trillion compared with the previous day’s N1.056 trillion and the NASD Unlisted Security Index (NSI) went down by 1.86 points to wrap the session at 3,012.50 points compared with 3,014.36 points recorded in the previous session.
The alternative stock market was busy yesterday as the volume of securities traded by investors soared by 146.9 per cent to 5.9 million units from 2.4 million units, as the value of shares transacted by the market participants jumped by 360.9 per cent to N22.5 million from N4.9 million, and the number of deals increased by 50 per cent to 21 deals from 14 deals.
When the bourse closed for the day, Geo-Fluids Plc remained the most active stock by volume (year-to-date) with 1.7 billion units valued at N3.9 billion, followed by Okitipupa Plc with 752.2 million units worth N7.8 billion, and Afriland Properties Plc 297.5 million units sold for N5.3 million.
Also, Aradel Holdings Plc, which is now listed on the Nigerian Exchange (NGX) Limited after its exit from NASD, remained the most active stock by value (year-to-date) with 108.7 million units sold for N89.2 billion, trailed by Okitipupa Plc with 752.2 million units valued at N7.8 billion, and Afriland Properties Plc with 297.5 million units worth N5.3 billion.
By Adedapo Adesanya
The euphoria around the recent appreciation of the Naira eased on Wednesday, December 11 after its value shrank against the US Dollar at the Nigerian Autonomous Foreign Exchange Market (NAFEM) by N5.23 or 0.3 per cent to N1,547.50/$1 from the N1,542.27/$1 it was valued on Tuesday.
It was observed that spectators’ activities may have triggered the weakening of the local currency in the official market at midweek as they tried to fight back and ensure the value of funds in foreign currencies strengthened.
The domestic currency was regaining its footing after the Central Bank of Nigeria (CBN) launched an Electronic Foreign Exchange Matching System (EFEMS) platform to tackle speculation and improve transparency in Nigeria’s FX market.
At midweek, the Nigerian currency depreciated against the Pound Sterling by N3.56 to close at N1,958.68/£1 compared with the preceding day’s N1,955.12/£1 and against the Euro, it slumped by 34 Kobo to trade at N1,612.66/€1, in contrast to the previous session’s N1,613.00/€1.
As for the black market segment, the Naira lost N45 against the American currency during the session to quote at N1,670/$1 compared with the N1,625/$1 it was traded a day earlier.
A look at the cryptocurrency market showed a recovery following profit-taking as the US Consumer Price Index report matched economist forecasts.
The news was enough to convince traders that the Federal Reserve is certain to trim its benchmark fed funds rate another 25 basis points at its meeting next week.
The move also saw Bitcoin (BTC), the most valued coin, return to the $100,000 mark as it added a 2.9 per cent gain and sold for $100,566.12.
The biggest gainer was Cardano (ADA), which jumped by 15.00 per cent to trade at $1.16, as Litecoin (LTC) appreciated by 10.4 per cent to sell for $121.76, and Ethereum (ETH) surged by 7.0 per cent to $3,929.30, while Dogecoin (DOGE) recorded a 6.7 per cent growth to finish at $0.4181.
Further, Binance Coin (BNB) went up by 5.2 per cent to $716.72, Solana (SOL) expanded by 4.6 per cent to $229.77, and Ripple (XRP) increased by 4.2 per cent to $2.43, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) closed flat at $1.00 apiece.
By Aduragbemi Omiyale
The Dangote Refinery located in the Lekki area of Lagos State has made its first export of premium motor spirit (PMS) just three months after it commenced the production of petrol.
In September 2024, the refinery produced its first petrol and began loading to the Nigerian National Petroleum Company (NNPC) on September 15.
However, due to some issues, the facility has not been able to flood the local market with its product, forcing it to look elsewhere.
In a landmark move for regional energy integration, Dangote Refinery has partnered with Neptune Oil to take its petrol to neighbouring Cameroon.
Neptune Oil is a leading energy company in Cameroon which provides reliable and sustainable energy solutions.
Dangote Refinery said this development showcases its ability to meet domestic needs and position itself as a key player in the regional energy market, adding that it represents a significant step forward in accessing high-quality and locally sourced petroleum products for Cameroon.
“This first export of PMS to Cameroon is a tangible demonstration of our vision for a united and energy-independent Africa.
“With this development, we are laying the foundation for a future where African resources are refined and exchanged within the continent for the benefit of our people,” the owner of Dangote Refinery, Mr Aliko Dangote, said.
His counterpart at Neptune Oil, Mr Antoine Ndzengue, said, “This partnership with Dangote Refinery marks a turning point for Cameroon.
“By becoming the first importer of petroleum products from this world-class refinery, we are bolstering our country’s energy security and supporting local economic development.
“This initial supply, executed without international intermediaries, reflects our commitment to serving our markets independently and efficiently.”
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