By Adedapo Adesanya

The Minister of Finance and Co-ordinating Minister of the Economy, Mr Wale Edun, has called for necessary steps to manage ballooning debt and its servicing on the continent.

This is as he expressed gratitude for the continuous support from the African Development Bank (AfDB) at the launch of the Debt Management Forum for Africa (DeMFA) and its inaugural policy dialogue on Monday in Abuja.

According to the African Economic Outlook Report (AEO) 2024, in 2024, African countries are expected to spend around $74  billion on debt service, up from $17 billion in 2010, of which $40 billion is owed to private creditors, representing 54 per cent of total debt service.

The Nigerian finance minister emphasised that the partnership had transformed into a mutually beneficial collaboration over the years, leading to critical grants, loans, and capacity-building initiatives targeted at improving the economic landscape of African nations.

Mr Edun highlighted the significance of the DeMFA, which aims to address public debt challenges on the continent specifically.

He commended the AfDB for establishing the initiative, noting that while the World Bank had provided support in debt management for decades, the launch of a forum dedicated solely to Africa was a welcome development for the 54 countries in the continent.

The minister identified two issues facing African nations: the escalating levels of debt and debt service, which had constrained fiscal space for governments and the limited access to affordable funding in both domestic and international markets.

He said there was an urgency to mobilise large capital pools to tackle social and economic challenges, including unemployment, infrastructure deficits, climate change and meeting the social development goals.

Mr Edun stressed that DeMFA must be structured to build on the foundations laid by previous initiatives, offering a comprehensive approach tailored specifically to the needs and realities of Africa.

The finance minister urged DeMFA to focus on ensuring the long-term sustainability of public debt across Africa.
“As a forum, it must actively contribute to the continuous and sustainable management of public debt, helping nations avoid recurring debt crises and fostering development.

“By working together, we can overcome these challenges and accelerate Africa’s growth trajectory,” he added.

Mr Edun commended the AfDB for its leadership in the initiative and expressed optimism about its potential to transform debt management practices across the continent.

“On behalf of all stakeholders, I wish the AfDB success in this endeavour and look forward to seeing its impact on Africa’s development,” he said.

By Adedapo Adesanya

The Economic and Financial Crimes Commission (EFCC) has re-arraigned a former managing director of the defunct Bank PHB Plc (now Keystone Bank Limited), Mr Francis Atuche, and two others before the Special Offences Court sitting in Ikeja, Lagos on a nine-count charge bordering on conspiracy to commit felony and forgery.

Mr Atuche is currently serving a six-year jail sentence over a N25 billion fraud alongside one Mr Ugo Anyanwu (four years) after their conviction in June 2021.

Now, Mr Atuche and the two others, Mr Nnosiri Joachim (also known as Ifeanyi) and Mr Uguru Onyike were arraigned before Justice Olubunmi Abike-Fadipe.

When the charge was read to the defendants, they all pleaded not guilty.

Prosecution counsel, Mr Fanen Anum, told the court that the matter is starting de novo and therefore asked for a trial date.

Meanwhile, the counsel to the first defendant, Mr Anthony Ejere, prayed that the court allow his client to enjoy the earlier bail granted him by the court, despite that he was still a convict in another matter.

Also, counsel to the second and third defendants, Clement Onwuenwunor (SAN), asked the court to allow his clients to enjoy the earlier bail granted them by the court.

In her short ruling, Justice Fadipe upheld the request of their counsels that they be allowed to continue on the bail granted them by Justice Adeniyi Onigbanjo (rtd) and adjourned the case till May 6, 2025, for trial.

For context, Mr Atuche and the two other suspects were originally arraigned before Justice Habeeb Abiru before his elevation as a Justice of the Court of Appeal and subsequently as a Justice of the Supreme Court.

The case consequently started afresh before Justice Adeniyi Onigbanjo (who has now retired) hence the transfer of the case file to Justice Abike-Fadipe.

It was alleged that Mr Atuche contacted Joachim Nnosiri, an office assistant with Keystone Bank’s Central Sharing Services Centre in Lagos, to deliver some allegedly forged documents to the bank’s corporate headquarters also in Lagos for onward presentation in court as exhibits in an ongoing case between Mr Atuche and the EFCC.

The alleged forged documents are said to be board resolutions of Future View Securities Limited; Extra Oil Limited and Trajek Nigeria Limited.

The documents had been missing from the bank since October 2009.

By Adedapo Adesanya

Shell Nigeria Exploration and Production Company Limited (SNEPCo), the Nigerian subsidiary of Shell Plc, has announced a final investment decision (FID) on Bonga North, a deep-water project off the coast of Nigeria.

This will be the first of such investments in over a decade.

According to a statement on Monday, Bonga North will be a subsea tie-back to the Shell-operated Bonga Floating Production Storage and Offloading (FPSO) facility which Shell operates with a 55 per cent interest.

Bonga is a deep-water development located in OML 118, at water depths exceeding 1,000 meters. Production at the Bonga FPSO began in 2005, with a capacity to produce 225,000 barrels of oil per day. The project produced its one-billionth barrel of crude oil in 2023.

This means Shell will operate the majority (55 per cent) in the Bonga field in partnership with Esso Exploration and Production Nigeria Ltd. (20 per cent), Nigerian Agip Exploration Ltd. (12.5 per cent), and TotalEnergies Exploration and Production Nigeria Ltd. (12.5 per cent), on behalf of the Nigerian National Petroleum Company (NNPC) Limited.

The Bonga North project involves drilling, completing, and starting up 16 wells (8 production and 8 water injection wells), modifications to the existing Bonga Main FPSO and the installation of new subsea hardware tied back to the FPSO.

“The investment in Bonga North is expected to generate an internal rate of return (IRR) in excess of the hurdle rate for Shell’s Upstream business,” the oil major said.

The project will sustain oil and gas production at the Bonga facility. Bonga North currently has an estimated recoverable resource volume of more than 300 million barrels of oil equivalent (boe) and will reach a peak production of 110,000 barrels of oil a day, with the first oil anticipated by 2030.

“This is another significant investment, which will help us to maintain stable liquids production from our advantaged Upstream portfolio,” said Ms Zoë Yujnovich, Shell’s Integrated Gas and Upstream Director.

President Bola Tinubu has welcomed the move saying it underscores the transformative impact of his administration’s policies and reforms in attracting investments in the oil and gas sector.

“This FID on Bonga North, and the FID on Ubeta earlier in 2024 both demonstrate the efficacy of the oil and gas reforms and directives championed by the President.

“These projects will trigger broader investments to revolutionise Nigeria’s power generation, transportation, and manufacturing sectors. In 2025 we anticipate further FIDs from international and domestic players. A new era of growth and opportunity for Nigeria,” according to a statement by the Special Adviser to the President on Energy, Ms Olu Verheijen.