The Nation Newspaper

Author: The Nation

  • A better deal 

    A better deal 

    • Electricity Act 2023 should translate to improved power supply nationwide, other things being equal

    No one should be surprised that one of the bills that President Bola Ahmed Tinubu signed less than two weeks after his assumption of office was the Electricity Act 2023. The Electricity Bill was passed in July last year to replace the Electricity and Power Sector Reform Act, 2005. Essentially, the new act encourages more private sector involvement in the power sector. State governments, organisations and individuals wishing to generate, transmit and distribute electricity are now free to do so.

    Tinubu has always craved decentralisation of the power sector.

    As governor of Lagos State, he conceived the idea of the state government generating electricity solely for Lagosians as far back as 1999. The National Electric Power Authority’s (NEPA) installed capacity was around 6,000 mw, but because of poor maintenance and mismanagement, it could only generate about 1,600 mw, which fell well below the national demand then estimated at 2,470 mw.

    It was in response to this inadequacy that the Tinubu government signed an $800-million deal with Enron Power Nigeria Ltd., an American power company, to supply electricity to residents of Lagos, Nigeria’s largest metropolitan area and commercial hub, barely three months after he assumed office. The project, expected to be done in two phases, however encountered challenges from the Federal Government then under Chief Ousegun Obasanjo. That, however, is not the issue here. What interests us here is the fact that Tinubu knew the way out of the incessant blackout in the country was an alternative to the public power supply, then under the control of the Federal Government. It therefore should not be surprising that the Electricity Act is among the very first bills he had signed, again barely two weeks after becoming president. Mercifully, the processes had been concluded by the ninth National Assembly; the only thing left was presidential assent.

    The Electricity Act 2023 consolidates all legislations dealing with the electricity supply industry to provide an omnibus and ideal Institutional framework to guide the post-privatisation phase of the Nigerian Electricity Supply Industry. It is also aimed at encouraging more private sector investments in the country’s beleaguered power sector. State governments are now free to issue licenses to willing and capable private investors to operate mini-grids and power plants within their jurisdiction. However, such licenses are not to extend to inter-state or transnational distribution of electricity.

    The act also takes the responsibility of regulating the sector solely by the Nigerian Electricity Regulatory Commission (NERC) to the states that have made laws to this effect, in this context Kaduna, Lagos, and Edo. Other states will continue to be regulated by NERC until they pass their own law. The commission will however continue to carry out cross-border regulations – generation, and transmission across states.

    The act also empowers lawmakers in the National Assembly through their committees on power to carry out oversight functions over the National Electricity Supply Industry. This is without prejudice to whatever supervisory powers of any government ministry over government-owned enterprises or other entities operating in the Nigerian electricity supply industry that the government has not divested its equity holdings, among other things.

    Even an elementary school pupil knows that it is foolhardy for anyone to keep all his eggs in one basket. Yet, that is what the idea of a national grid that Nigeria, a country of over 200 million people, has lived with for decades. The result is that the entire country is thrown into darkness whenever the grid collapses.

    And it indeed collapsed many times, resulting in national paralysis given the centrality of power supply to national development. As a matter of fact, Nigeria experienced about 99 such collapses during the eight years of Buhari’s presidency. Available power generation capacity fell by 981.8 megawatts between 2015 and August 2022 despite the over N1.51tn pumped into the sector by the same government. 

    Such experiences are to become a thing of the past under the Electricity Act. Indeed, many players in the sector, including the Executive Director, Research and Advocacy for the Association of Nigerian Electricity Distributors (ANED), Sunday Oduntan, and the Principal Action Coordinator, Joint Action Platform for Electricity Consumers Right, Ayodele Olawoye, have hailed the constitutional amendment  promoting competition, transparency and efficiency that was the precursor of the Electoral Act. It may not be a perfect document yet, but it is a good beginning.

    The point must be emphasised however, that whatever the arrangement, metering is key. The electricity distribution companies will continue to be inefficient for as long as they can bill consumers based on estimates. Once everyone is metered, the opportunity for collecting money from electricity users for power that they did not consume would be eliminated, thus forcing the power producers to take their jobs more seriously.

  • Fentanyl as Nigeria’s new threat

    Fentanyl as Nigeria’s new threat

    Sir: The National Drug Law Enforcement Agency (NDLEA) has orchestrated a resounding triumph by dismantling an insidious drug syndicate responsible for the importation and trafficking of a pernicious synthetic narcotic named Fentanyl. Across the globe, Fentanyl’s notoriety looms ominously, as it remains an infamous accomplice in a surfeit of avoidable fatalities plaguing the realms of illicit drug consumption.

    Illicitly manufactured fentanyl, commonly referred to as “street fentanyl,” has become increasingly prevalent in the illegal drug market. It is often mixed with heroin or sold as counterfeit prescription pills, making it difficult for users to discern its presence. These clandestine labs produce the illicit fentanyl, which is then distributed through illegal drug trafficking networks worldwide.

    The introduction of fentanyl into Nigeria marks a concerning development in the country’s drug landscape. This lethal substance, previously absent from Nigerian streets, has already claimed numerous lives globally and poses a significant threat to public health within the country.

    Statistics from around the world paint a grim picture of fentanyl’s devastating impact. It has emerged as the primary substance responsible for preventable overdose deaths among illicit drug users. Fentanyl-laced drugs are extremely dangerous, as less than two milligrams of fentanyl can result in an overdose or death. The potency of this drug greatly amplifies the risks associated with its use, increasing the likelihood of fatal overdoses. 

    Nigeria’s law enforcement agencies, especially the NDLEA, play a crucial role in combating the menace of illicit drugs, including fentanyl. Its recent success in busting a drug syndicate involved in the importation and trafficking of this deadly drug demonstrates its commitment to protecting public health and ensuring public safety.

    Given the lethal nature of fentanyl and its increasing prevalence, it is essential to raise awareness among the general public about its risks. Individuals who value their lives and mental health should steer clear of any association with this deadly substance. Education and prevention initiatives should be implemented to inform communities about the dangers of fentanyl and the potential consequences of its use.

    Furthermore, healthcare professionals, law enforcement agencies, and relevant stakeholders should work together to develop strategies to identify and combat the distribution of fentanyl within Nigeria. Enhanced border controls, intelligence sharing, and targeted law enforcement efforts can help curtail the spread of this deadly drug and protect the well-being of Nigerian citizens.

    The presence of fentanyl in the Nigerian illicit drug market represents a grave threat to public health and safety. As the NDLEA continues its efforts to dismantle drug syndicates and seize dangerous substances, it is crucial for individuals to be vigilant and avoid any involvement with fentanyl. By staying informed and promoting awareness, we can collectively combat this deadly epidemic and protect the lives and well-being of fellow Nigerians.

    • Mahmud Isa Yola, <isamahmud77@gmail.com>
  • Osigwe seeks more power devolution to states

    Osigwe seeks more power devolution to states

    A former General Secretary of the Nigerian Bar Association (NBA), Mazi Afam Osigwe (SAN), has called for the devolution of more powers to states.

    He believes the 1999 Constitution should be reviewed to reduce its unitary features and centralisation of power.

    “If we get our federal system properly fixed, everything will fall in place,” Osigwe said.

    He was the guest lecturer at the Annual B.O.B Benson SAN Memorial Lecture organised by the NBA, Ikorodu Branch.

    Its theme was: The 1999 Constitution, restructuring and true federalism: The way forward.

    Osigwe, a former Chairman of the NBA Abuja Branch, said a common-sense approach of agreeing on what needs to be taken out of the Constitution will enhance the federation’s workability.

    He said the 30 items in the Concurrent List should be reviewed to transfer some items to the Residual List.

    According to him, items such as industrial, commercial and agricultural development, health and education should exclusively be reserved for the federating units (states).

    He called for the transfer of many items in the Exclusive Legislative List (68 items), to which only the Federal Government has legislative competence, to the states, some of which, he noted, have already been moved to the concurrent list.

    Osigwe, who chairs this year’s NBA Annual General Conference (AAGC) Planning Committee, stressed that the demand by some states to establish their police should be considered.

    This, he said, may entail removing the Nigeria Police Force and policing from the exclusive list and moving it to the concurrent.

    Osigwe believes the exclusive powers granted to the Federal Government have negatively impacted security due to poor funding, corruption, nepotism, human rights violations, and unquestioning allegiance to the centre.

    “The failure of policing has worked to the detriment of the people and the state,” he said.

    Osigwe said a security council should be established for the states since the governors, who are supposed to be the chief security officers, are not included in the membership of the National Security Council.

    On resource control, he said it should be decentralised to make Nigeria more productive, economically buoyant and less dependent on oil.

    States, he said, should be allowed to control the exploitation of resources found within their territory and pay taxes to the central/ federal government.

    “The tax powers of each tier of government should be reversed, in favour of states and local governments.

    “The states and local governments depend worryingly on statutory allocations from the federal account, which in turn depends heavily on revenues from petroleum resources.

    “This pattern skews the development priorities of governments and cripples the ability of many states to generate revenue internally,” he said.

    Osigwe said the centralised method of appointing and disciplining judicial officers for both states and the federal courts must be reviewed.

    The Judiciary, he said, should also be strengthened for the timely dispensation of Justice.

    The lawyer added: “The Federal and State governments should ensure that the constitutional financial autonomy given to the judiciary is given effect so as to avoid such adverse effects as ‘poor and inadequate judicial infrastructure, low morale among judicial personnel, alleged corruption in the judiciary, delays in the administration of justice and judicial services delivery and generally low quality and poor out-put by the judiciary’.

    “The Chief Justice of Nigeria (CJN) shall no longer appoint some other members of the National Judicial Council (NJC).

    “The provisions of Paragraph (i) 20 (i) of the Third Schedule, Part 1 of the Constitution of the Federal Republic of Nigeria 1999 (as amended) which precludes all NBA nominees on the NJC from dealing with judicial matters other than appointments into the superior courts of record (i.e. only one item out of thirteen) is certainly discriminatory and unwarranted and should be out-rightly amended. (After all, judges play a prominent role in the disciplining of lawyers).

    “The over-concentration of powers in the office of the CJN by the 1999 Constitution should be amended.

    “The CJN should cease to be the Chairman of the NJC and all other similar constitutional and statutory bodies.

    “Any suitable Nigerian with requisite experience, impeccable records of service and competence (like a retired Justice of the Supreme Court, former President of the NBA, Professor of Law, or any legal practitioner etc) could be appointed as Chairman for only one term of five years.

    “Local government should be granted and the Joint Account for Local Governments should also be abolished so that the local governments can control revenues accruing to them from the Federation Account. 

    “The democratic local government provided for in Section 7(1) of the 1999 Constitution should be reinforced by specific provisions that would prevent the dissolution of local government areas (LGAs) by state Governors or state legislature, remove the power of state governors to replace elected representatives at the LGA level and remedy the failure by successive governors to conduct local government election.

    “The country should be united as it is clearly not united at the moment.

    “Nigerians should be able to live in any part of the country, work and legitimately earn a living and not be discriminated against, attacked, killed or unlawfully incarcerated, based on religion, race or culture, or place of birth.”

  • ‘Split Attorney-General from Justice Minister to prevent abuse’

    ‘Split Attorney-General from Justice Minister to prevent abuse’

    • ‘How student loan law will help retain talent’
    • ’My plans for NBA Lagos Branch as Secretary’

    Mr Emuobonuvie Majemite is a Partner at PUNUKA Attorneys and Solicitors, one of Nigeria’s oldest law firms founded in 1947. He is the head of both the Property Law and the Arbitration and ADR Practice groups. An alumnus of Loyola Jesuit College, Bridge House College and the University of Nottingham, Majemite has served on many committees of the Lagos Branch of the Nigerian Bar Association (NBA) and now aspires to be the secretary. In this interview with Deputy News Editor JOSEPH JIBUEZE and ANNE AGBI, he speaks on the floating of naira, how to speed up case management, acceptability of arbitration in Nigeria, the student loan law, petrol subsidy withdrawal and other national issues.

    What is your view on the reviewed retirement age of judges?

    I believe that increasing the statutory retirement age will permit the legal system to continue to benefit from the wisdom of the old jurists. I opine that legal counsel, like wine, is richer with age. So the additional five years is much welcome, with the option for the learned jurist to retire, if he so desires.

    The election tribunal recently rejected the live broadcast of proceedings. Do you think transmitting court proceedings live is inimical to justice administration?

    I think that we must separate emotion from the rule of law. Generally, judicial proceedings are not transmitted live, although the public is at liberty to attend them (except in special circumstances, such as when a child is involved). If we accept this and believe that our judiciary will deliver justice within the ambit of the law, we must have faith in the erudite election petition tribunal and not insist on what I may consider a pedestrian issue. That said, I certainly would not say that a live broadcast of court proceedings is prejudicial to justice administration. It may soothe the wider public as more people are able to follow the process first-hand. 

    Politicians have succeeded in getting a 180-day timeline within which to conclude election petitions, but civil and criminal cases linger for years. Do you think it will fast-track the adjudicatory process to also specify time to conclude criminal and civil matters too?

    Under the Administration of Criminal Justice Act, the Administration of Criminal Justice Law of Lagos State and most procedural criminal laws, criminal matters are to be concluded within a reasonable time, but this reasonable time is not defined. Courts have generally sought to conclude criminal trials as quickly as possible and appeals on criminal matters tend to take precedence over civil matters. However, certain specie of criminal matters have some priority such as matters instituted by the Asset Management Corporation of Nigeria (AMCON). I opine that with proper case management and discipline on the part of both the Bar and the Bench, we do not need specific timelines for any type of matter. The individual cases will determine how quickly they should be decided.

    How exactly do you mean?

    For instance, where a plaintiff is challenging the installation of someone as a king, it would render such a suit an academic exercise and cause what we call a fait accompli on the plaintiff if the suit or at least an application for preservatory relief is heard and determined one way or the other before said installation. So, rather than imposing arbitrary timelines on different species of matters, whether criminal or civil in nature, I think proper case management on a case-by-case basis is more prudent and efficacious.

    Due to our political experience, there are arguments that the office of the Attorney-General of the Federation (AGF) should be separated from that of the Minister of Justice to prevent partisanship. Do you agree with the idea?

    I completely agree that the Office of the Attorney-General of the Federation should be severed from that of the Minister of Justice. Likewise, at the state level, the office of the Attorney-General of the State should be separate from the office of the Commissioner of Justice. The Attorney-General is the chief law officer of the federation or of the state and should be an impartial person, insulated from polarised politics in the discharge of his or her duties. This is especially in view of the far-reaching constitutional powers vested in the Attorney-General. For instance, the Attorney-General can institute, take over and discontinue any criminal proceeding. This means that since he is currently appointed as a member of the incumbent executive administration, he is answerable to said incumbent executive. The President or the governor may, therefore, be able to direct their Attorney-General to pursue or discontinue criminal action against their adversaries or their cronies respectively. In most jurisdictions, the two offices are separated, and I advocate that we adopt this in Nigeria too.

    You head your firm’s Arbitration Group. How much acceptability has Arbitration gained in Nigeria, and what reforms would you like to see?

    Arbitration has been adopted by many Nigerian businesses as the faster and more efficient method to resolve disputes for reasons such as being able to determine the qualifications of their arbiter, shielding their dispute from the public eye and having strict timelines for the filing of processes until the publication of the arbitral award. However, some are still hesitant because of issues relating to the perceived cost (when compared to filing fees in litigation) and the enforcement of an award when a dissatisfied award debtor tries to avoid paying the award debt. With the recent passage of the Arbitration and Mediation Act, I strongly opine that these issues will become a thing of the past. 

    Do you think ADR should be made constitutionally mandatory before litigation is considered in all commercial transactions?

    I do not subscribe to alternative dispute resolution (ADR) being made obligatory. A core principle of ADR mechanisms is party autonomy which means that parties must voluntarily submit to the process. Thus, making ADR compulsory will be counterproductive and make away a fundamental element. Parties should be allowed to negotiate and agree on how they wish to resolve their disputes. I, however, appreciate the benefit of parties pursuing ADR before the court, especially in commercial transactions because it will greatly reduce the courts’ dockets. This objective can still be achieved through consistent propagation of ADR by Nigerian arbitral institutions.

    What are your thoughts on the student loan bill just signed into law by the President?

    I think the Student Loan Act is a good step in helping indigent students access tertiary education in Nigeria. It has the potential to retain talent within Nigeria as well as the students, upon graduation will likely get jobs in Nigeria to pay off their debt to the Federal Government. I also opine that it may encourage students to be disciplined in their studies because if they take a loan, they understand the need to graduate with good grades to secure well-paying jobs to be able to pay off the debt.

    The CBN has directed banks to trade the Naira freely without a cap on the rate. What are your thoughts on the floating of the naira?

    I do not claim to be an economist, but I opine that the directive by the Central Bank of Nigeria (CBN) will impact positively on the Nigerian economy. This is because the foreign exchange rates will be entirely determined by demand and supply. When the rate was artificially fixed, it was very difficult to access one’s foreign currency but under the current dispensation, a depositor has unfettered access to funds in their domiciliary account.

    Do you agree with the government’s justification for removing the petrol subsidy?

    In theory, I understand the government’s rationale for the removal of the petrol subsidy, and I believe it has been a long time coming. I, however, do not agree with the timing of the removal. Most of the populace is suffering in abject poverty and there could not have been a worse time to compound the plight of the common man. I would have been better some months into the administration when there are deliberate policies to stimulate productivity and generate exports.

    NBA seems to be having a rival in the Law Society of Nigeria. Has NBA lived up to the expectation of lawyers, and if so, what’s the need to split the association?

    First, I respectfully do not see the Law Society of Nigeria (LSN) as a rival to the Nigerian Bar Association (NBA). I dare say that by being called to the Nigerian Bar, a lawyer is automatically a member of the NBA, having paid his or her bar practising fees prior to the Call to Bar. Subsequently, to identify with a particular branch, the lawyer is required to pay the stipulated branch dues. To receive any honours or favour from the Nigerian legal profession such as to become a notary public, a Senior Advocate of Nigeria or simply to obtain a letter of good standing, a lawyer must have paid his or her bar practising fees and branch dues for a certain number of years. In all these, it is clear in my mind that the NBA plays a pivotal and indispensable role in the career of a Nigerian lawyer. On the other hand, a lawyer needs to apply for membership in the LSN. I am not aware of any benefits that would accrue to a lawyer from payment of whatever membership dues are stipulated by the LSN. I perceive the LSN as a group of friendly lawyers with a common interest and nothing more. I do not see the Law Society of Nigeria coming to usurp the role of the NBA any time at all.

    Regarding whether the NBA has met the expectations of lawyers, just like any other voluntary association, there will always be room to do better. There is always some level of innovative service that can be applied by the leadership. I personally think that the NBA has done a fair job in being a common front for lawyers to speak on issues, to continue to be a watchdog in society and to advocate for the welfare of its members. There is always an opportunity for improvement, however, and competent lawyers must rise to the occasion to take the NBA to greater heights.

    You are running for NBA Lagos Branch Secretary. What are your plans for the branch?

    I plan to deliver innovative service to the secretariat. I will streamline and abridge the process and time lag for application and delivery of the NBA stamp, an issue that continues to plague lawyers in private and public practice. I will increase the reportage of Branch activities in terms of sharing action points from general meetings and communique from branch events. These will be available on the individual members’ portals. I will manage the Branch’s assets and implement a depreciation policy to take care of the disposal and replacement of outdated properties. I will implement technology in the delivery of most functions such as the issuance of letters of good standing, regular revision of branch membership, issuance of NBA ID cards, etc.

    How exactly will you address the hiccups and delays from manual operations?

    I firmly believe that many tasks can be automated to make lives easier for members without having to visit the physical office. Much like many banking functions can be done from the comfort of our homes and offices, I will make interaction with the secretariat possible from members’ homes and offices. Finally, I will deliver an accessible secretariat to branch members. I will be dedicated to the secretariat for the duration of my tenure, with the full backing and support of my law firm, PUNUKA Attorneys and Solicitors and that of other organisations that I hold leadership positions in such as the Chartered Institute of Arbitrators, UK (Nigeria Branch) and the National Association of Catholic Lawyers, Lagos Archdiocese. In a nutshell, I plan to run a technologically driven and solution-oriented secretariat for my members.   

    What stands you apart from the other candidates to make members vote for you?

    Without meaning to sound immodest, my track record of proven administration and coordination sets me apart from my dear junior at the Bar running against me. I have manned positions that require strong organisational and interpersonal skills, which are the attributes I am known for. Finally, the institutional support of my firm cannot be over-emphasised. My practice will continue to thrive, even with my devotion to the branch secretariat because I am a partner in my firm of over ten partners.

  • Achieving exchange rate convergence with FX reforms

    Achieving exchange rate convergence with FX reforms

    The ongoing forex reforms at the Central Bank of Nigeria (CBN) has within one week of implementation created a massive shift in exchange rate management. Feedback shows imminent convergence between the official and parallel market rates and improved inflow of foreign capital to strengthen the naira. Analysts insist that allowing market forces to determine naira exchange rate will have significant impact on foreign portfolio and foreign direct investments needed to reflate the economy and support growth, writes Assistant Business Editor COLLINS NWEZE

    The ongoing foreign exchange reforms by the Central Bank of Nigeria (CBN) has attracted domestic and global attentions.

    As Africa’s largest economy, Nigeria stands at a prime spot in Africa and global investment climate.

    Global investors had before the unification of exchange rates by the Central Bank of Nigeria (CBN) complained about multiple exchange rates’ regime and its impact on capital flows to the economy.

    To address investors’ fears and create harmony, reforms in the forex market are necessary.

    President Bola Tinubu had, during his inauguration, said the monetary policy needed thorough housecleaning and directed the CBN to work towards a unified exchange rate.

    Acting CBN Governor Folashodun Shonubi introduced some operational changes, including the collapse of multiple exchange rates into the Investors’ and Exporters’ (I&E) window, in line with the exchange rate unification plan.

    The apex bank also opened up domiciliary account transactions, directing that cash deposits into domiciliary accounts will not be restricted. This is subject to Deposit Money Banks (DMBs) conducting proper Know Your Customer (KYC), due diligence and adhering to the Anti-Money Laundering/Combating the Financing of Terrorism (AML/CFT) laws and rules and regulations.

    The CBN also directed that visible and invisible transactions (medicals, school fees, Business Travel Allowance/Personal Travel Allowance, airline and other remittances) are eligible for the I & E window.

    In a statement, CBN Director, Corporate Communications, Dr. Isa Abdulmumin, said ordinary domiciliary account holders would have unrestricted access to the funds in their accounts.

    “Ordinary domiciliary account holders shall have unfettered and unrestricted access to funds in their accounts. Domiciliary account holders are permitted to utilise cash deposits not exceeding USD$ 10,000 per day or its equivalent via telegraphic transfer,” he said.

    The bank directed Deposit Money Banks to ensure expeditious processing of eligible invisible transactions for their customers using the applicable rate at the I & E window.

    The CBN also promised to prioritise the orderly settlement of any forex transactions as they fall due to boost market confidence further.

    The CBN said it will normalise its Cash Reserve Requirement (CRR) maintenance processes and ensure equity in its implementation across the banking industry.

    The CBN said the policy changes aim to promote transparency, liquidity and price discovery in the forex market.

    This, it added would improve forex supply, discourage speculation, enhance customer confidence and ensure stability in the forex market.

    “The CBN will continue to engage stakeholders and issue further guidance as it implements the ongoing reforms,” the bank said.

    JP Morgan, an American multinational financial services firm, says the naira is expected to appreciate, and trade at about N600/$1 in the coming months due to the ongoing reforms in the forex market.

    Analysing the naira float, JP Morgan said though it would take a few days for the dollar/naira spot to stabilise, it anticipates an initial overshoot towards the parallel market rate of below N750 or higher.

    The firm added: “While it will take a few days for USD/NGN spot to settle, we fully expect an initial overshoot towards the parallel market rate of -N750 or higher, after which, we expect USD/NGN to settle in the high 600s over the coming months.

    “We believe there is room for incremental positive surprises with respect to reform depth and execution speed. We had high expectations for the new administrations reform agenda, however, the speed of execution has proven to be a positive surprise.”

    The capital market has also recorded over N4.2 trillion gain in recent weeks as other stakeholders applauded the possibility of naira convergence and stability of the exchange rate.

    The exchange rate at the official Investors’ and Exporters’ (I&E) window stood at N770.38/$1 on Monday while the naira was trading at N757/$1 it at the parallel market.

    Managing Director, Economic Associates, Dr. Ayo Teriba, said the Bureau De Change (BDC)/parallel market rate is the reliable indication of market realities, and it is stable.

    “The volatile price correction in the I&E rate should trigger equally strong reduction in demand plus an increase in supply in that window.That would make the market settle back towards equilibrium in the next few days. I expect the rates to strengthen across all windows before the end of this week. I expect the unified rate to move towards N600/$1 or stronger in the next week or so,” Teriba said.

    He said the unified exchange rate would also boost government revenue from the sale of forex at an attractive rate. He said aside saving money that the government is losing by giving access to forex to some people below market rate, it will also end forex subsidy regime that has created frivolous demand in the market. He added that with a single rate market, the government would get more revenue, since the forex at its disposal would be sold at the market rate.

     Teriba said: “The ‘privileged persons’ who access the cheap dollar and sell to the Bureau de Change operators will no longer see it attractive.The presence of the special rate for special people means that some of the special people who don’t need the forex will demand it just because of the profit they make from it.”

    Managing Director, Financial Derivatives Company Limited, Bismarck Rewane, explained that in continuation of the fundamental reforms in the forex market, the CBN had announced the relaxation of the domiciliary account restrictions. Hitherto, cash deposits and withdrawals were limited.

    He said the market’s reaction to this was the appreciation of the naira at the parallel market.

    “This is good news for traders who source dollars mainly at the parallel market.With this development, it is likely that imported inflation, which is a function of the exchange rate, begins to taper,” he added.

    Continuing, Rewane said the adoption of a single exchange rate and the “willing buyer-willing seller model” by the CBN is, no doubt, cheery news for the market.

    He said the new exchange rate framework is expected to increase transparency in the forex market, reduce exchange rate misalignment and transaction costs, and buoy investor confidence.

    “However, exchange rate management goes beyond exchange rate unification. It must address issues surrounding market structure, easy access and adequate supply. This means effectively dismantling forex rationing, administrative controls, and reviewing import restrictions. As Barack Obama declared, “Africa doesn’t need strongmen, it needs strong institutions,” Rewane said.

    President, Association of  Bureaux De Change Operators of Nigeria (ABCON), Dr. Aminu Gwadabe, said eligible forex demands were queuing at the I&E window in the short run hence the high transaction traffic there.

    “The development is not new as there were times when official exchange rate was higher than the parallel market rates in China.The interplay of supply and demand forces and the concept of willing buyer and willing seller will eventually lead to a stable market clearance rates as events unfold,” he said.

    Gwadabe advised the CBN  to ensure liquidity in the retail end of the market by de-monopolising diaspora remittances and stronger collaboration with BDCs, which control the retail end of the forex market.

    Fiscal Policy Partner and Africa Tax Leader, PwC, Taiwo Oyedele, said the decision was a positive move that should bring more benefits than pains to the economy.

    He outlined that with the market-driven rate, the aggregate demand for forex across markets should reduce as round-tripping incentive is removed, noting that avenues for corruption such as people who fake foreign travels to get forex at discounted rates would be.

    “Also, Nigeria’s sovereign credit rating should improve if this is complemented with the right fiscal and monetary policies, thereby attracting more forex inflows and lowering the cost of borrowing,” Oyedele said.

    In a 10-point impact analysis, Oyedele explained that while the decision expectedly would have some negative implications, the  impact would be positive for the economy, government revenue and the capital market.

    He added: “The government also needs to relax capital control and administrative bottlenecks, including unbanning the list of items prohibited for forex (and complement with higher import duties), remove the need for certificate of capital importation, among others, to prevent the parallel market rate from simply moving further away from the official market rate. Stop the demand for certain taxes and levies in foreign currency, it creates unnecessary forex demand without adding to supply.

    “The aggregate demand for forex across markets should reduce as round-tripping incentive is removed. For instance, people who fake foreign travels to get forex at discounted rates. Also, Nigeria’s sovereign credit rating should improve if this is complemented with the right fiscal and monetary policies, thereby attracting more forex inflows and lowering the cost of borrowing.”

    Promoting FX transparency

    The reforms in the forex market also include directive that forex applicants for invisible items such as school fees, business travel allowance (BTA), personal travel allowance (PTA) and medicals; small and medium enterprises (SMEs) and other corporates are expected to, henceforth, submit tax clearance certificate (TCC) evidencing tax payment and compliance for three years preceding the year of assessment. Alternatively, the applicants must provide tax exemption certificates for the same period.

    According to the new forex processing regime, in addition to documents required to be uploaded on the CBN’s platform, forex applicants must provide TCC that covers a three years preceding the year of the forex application with the tax identification number (TIN).

    Also, the name on the TCC must match the applicant’s name on the CBN portal while TCC would be verified by the bank through the  local tax authority.

    The new requirements apply to applicants, including the purchase of forex for Form A-invisible, Form Q-SMEs, Form M-Letters of Credit and Bills for Collection.

    The enhanced processing regime brought to bear provisions of Section 85(2), (4) and (5) of the Personal Income Tax Act 2011, as amended.

    Besides, forex applicants for BTA, PTA, medicals, SMEs and others categorised under Form A and Form Q will be provided forex at the prevailing rate at the I&E window at the time of processing by the bank.

    In announcing the unified exchange rate policy, CBN Director, Financial Markets, Angela Sere-Ejembi, said the changes to the foreign exchange market also include the re-introduction of the “Willing Buyer, Willing Seller” model at the I&E Window.

    “Operations in this window shall be guided by the extant circular on the establishment of the window, dated 21 April 2017 and referenced FMD/DIR/CIR/GEN/08/007. All eligible transactions are permitted to access foreign exchange at this window,” she said.

    According to the circular, all operational rate for all government-related transactions shall be the weighted average rate of the preceding day’s executed transactions at the I&E window, calculated to two decimal places.

    “Proscription of trading limits on oversold FX positions with permission to hedge short positions with OTC futures Limits on overbought positions shall be zero. Re-introduction of order-based two-way quotes, with bid-ask spread of N1. All transactions shall be cleared by a Central Counter Party (CCP). Reintroduction of Order Book to ensure transparency of orders and seamless execution of trades. The operational hours of trades shall be from 9am to 4pm, Nigeria time,” the circular said.

  • ‘Why museums are important to kids’

    ‘Why museums are important to kids’

    Experts have identified museums as an important centre for preserving the country’s historical and cultural heritages that help to mould children’s values.

    They noted that children are impressionable and teaching them early to respect the arts, culture and history will help them appreciate their value when they become adults.

    They spoke at the National Museum Onikan, Lagos, at a special event to mark Children’s Day.

    Director, Educational Services and Training (DEST), who also doubles as the Curator, National Museum Onikan Lagos, Mrs. Omotayo Adeboye, emphasised the importance of the theme of the event, “Museum, Moulding Nigerian Children Values with her Cultural Heritage Properties”.

    Adeboye said: There is a need to preserve our cultural heritage for posterity. The children today will be the ones in charge tomorrow, thus from youth, there is a need for them to imbibe the attitude of placing a high value on the culture of their nation.

    “This will be able to foster continuity in our preservation drive concerning all our cultural properties.”

    She noted that because children are tomorrow’s leaders, “it is important to give special recognition to these little ones that will take over from the adult of today in the nearest future.”

    The Chairperson of the occasion, Mrs. Caroline Sosu also observed that the theme showcased museums’ importance in the lives of children.

    “Therefore, we must all join hands together to see that our children in both government and private primary schools are cared for and given the best of foundation, and are made aware of their heritage and culture,” Sosu added.

    Head of the Education Department, Oloruntosin Olanrewaju celebrated the children that visit the Museum to learn about the country’s heritage.

    He said: “We also celebrate their curiosity to learn and know more about the artefacts they find on display at the Museum.”

    He encouraged them to “indulge your hands and create the future artefacts that people will come to the museum to see.”

    The event featured tens of pupils from no fewer than 18 nursery, primary and secondary schools, including TAMS International Private School, Jodavic Schools, Wisdom Way Nursery and Primary School, among others.

    The pupils, resplendent in their cultural and other attires, engaged in various competitions, including match pass, market scene, fashion parade, cultural dance, spelling of museum’s terminologies, gele competition and choreography, among others.

    Gifts and certificates were presented to winners.

    Assistant Director, Gbaniyi Beatrice, who coordinated the event, gave the vote of thanks.

    The National Museum Onikan has more than 47,000 works of priceless art.

  • Ibadan to host tallest monument in Southwest

    Ibadan to host tallest monument in Southwest

    Ibadan, the Oyo State capital, has recorded many firsts as a city. Apart from housing the nation’s premier university, the University of Ibadan, founded in 1948, the first broadcast television station in Africa, Western Nigeria Television (WNTV) was established on October 31, 1959 at Agodi, Ibadan. In some months’ time, it will also house the tallest monument in the region. Assistant Editor (Arts) OZOLUA UHAKHEME reports.

    A multi-million naira monument standing 65 feet high will soon redefine the creative landscape of Ibadan, the Oyo State capital. The monument, which is crafted from found metal objects is being sculpted by US-based renowned artist Jonathan Imafidor and will emerge as a powerful symbol of Southwest’s profound cultural heritage and artistic excellence.

    Located at Olunloyo Airport Park, Ibadan, the sculpture which was commissioned by the Oyo State government will feature three towering human figures, resplendent in their majesty, standing atop an intricately crafted concrete base of 25ft by 15ft to support the three figures. Among these figures, two symbolise the valiant male and female warriors of the ancient Oyo Kingdom, embodying the region’s rich history and indomitable spirit.

    The third figure, a representation of a drummer, will pay homage to the vibrant cultural tapestry that defines the region. The pedestal itself will take the form of a broadcasting dish, an emblematic tribute to Ibadan’s status as the birthplace of Africa’s inaugural broadcast station.

    The monument upon completion in the next nine months, will establish itself as the tallest scrap metal sculpture in the country, thereby projecting Ibadan to the forefront of artistic innovation and cultural significance.

    The project no doubt, is a harmonious fusion of cultural heritage, artistic innovation, and ecological consciousness. It is funded by Oyo State government and will surely leave an indelible mark on the artistic landscape of Nigeria.

    According to Imafidor, the sculpture is rooted in traditional Yoruba history and culture, while the two warriors standing in alert mode represent two popular warriors amongst several individuals who are iconic figures in Oyo’s history.

    “The female warrior represents one of the most popular female warriors in the history of the Oyo Empire known as Queen Moremi Ajasoro. Moremi lived during the 12th century and was married to the king of Ife, a neighbouring kingdom to Oyo. When the Oyo Empire was facing invasion from a rival tribe, the Igbo, Moremi volunteered to act as a spy and infiltrated the enemy camp. She gathered vital information and shared it with the Oyo warriors, enabling them to successfully defend their kingdom. Moremi’s bravery and strategic contributions made her a revered figure and a symbol of courage and sacrifice.

    “The male figure represents the most renowned male warrior known as Balogun Ogunmola. Ogunmola was a legendary military commander who lived in the 18th century. He possessed exceptional leadership skills and was known for his tactical brilliance on the battlefield. Ogunmola played a pivotal role in expanding the Oyo Empire’s territory and defending it against external threats. His military campaigns and victories solidified the empire’s dominance in the region and elevated him to legendary status among the Oyo people,” he said.

    These two individuals, Queen Moremi Ajasoro and Balogun Ogunmola, he added, exemplify the valour and heroism displayed by warriors of old in the Oyo Empire, noting that their stories continue to inspire and resonate with generations, serving as a testament to the rich history and martial traditions of the Oyo people.

    Imafidor explained that the third figure, a drummer symbolises the drummers of the Old Oyo Empire who were highly skilled musicians and respected members of society. They dedicated their lives to mastering the art of drumming and passed down their knowledge from generation to generation. Their contributions to communication, entertainment, and religious ceremonies were invaluable, shaping the cultural fabric of the Oyo Empire.

    On the inclusion of a satellite dish in form of a base projecting the figures, the artist said it represents Oyo as the first state to run a broadcast television in Africa, recalling that on October 31, 1959, the Western Nigeria Television (WNTV) was established in Agodi, Ibadan, in present-day Oyo State.

    This pioneering achievement, he said, marked a significant milestone in African broadcasting history and positioned Oyo as a leader in technological advancement.

    Significantly, these elements depict the rich history and cultural heritage of the Oyo people.

    Asked how he emerged a preferred artist to execute the multi-million naira project, he said: “It was an open call and sculptors of Nigeria origin with a good reputation and qualification in executing monumental sculptures were advised to submit proposals. I submitted a proposal and was selected amidst a vast number of other sculptors who applied.”

    Imafidor is a 2009 graduate from Obafemi Awolowo University, Ile Ife, where he bagged a first-class in Painting, thus breaking a 20-year first-class hiatus in the Department of Fine and Applied Arts, of the university.  After completing his mandatory NYSC, he returned to his alma mater, where he lectured for six years before pursuing further studies at the Savannah College of Art and Design (SCAD) in Atlanta, USA. Currently, he operates a sculpture studio in Atlanta where he continues to create stunning artworks.

  • NMDPRA approves six firms to import petrol

    NMDPRA approves six firms to import petrol

    In continuation of the full deregulation of the downstream sector and in line with the provisions of the Petroleum Industry Act (PIA) 2021, six firms have been licensed by the industry regulator, the Nigeria Mainstream and Downstream Petroleum Regulatory Authority (NMDPRA), to import premium motor spirit (PMS) or petrol, into the country effective from July.

    Until this approval, the Nigeria National Petroleum Company Limited (NNPCL), has been the sole importer of the product. The PIA stipulates that no individual or firm can import more than 30 percent of the country’s total domestic need of petrol.

    Although the NMDPRA boss, Farouk Ahmed, did not mention the names of the firms, he was however emphatic that Dangote Group, a firm that recently inaugurated its refinery, is not among the six companies licensed for fuel import.

    “There are six companies who said they want to import fuel in July. Of course, all the others may import in November, in December, or anytime but those who expressed interest to bring in fuel in July were six as of this morning (yesterday). The beauty of it is that there are interests which means that they have been able to have access to foreign exchange in order to import,” Ahmed said.

    , adding that anyone can apply for importation to get access to the port as the Authority is open to all those interested in importing.

  • Commodities Exchange to add N15tr to GDP from agric

    Commodities Exchange to add N15tr to GDP from agric

    Chief Executive Officer, AFEX Commodities Exchange, Ayodeji Balogun said  agriculture’s contribution to Gross Domestic Product (GDP) would hit N15 trillion as the Federal Government promotes regional commodities exchange.

    Balogun said an increase in agriculture export earnings would hit $1.5 billion.

    He said there was much revenue to be made as the government pursues an enabling environment to boost agri-food products export to destinations in European Union (EU), United Kingdom, United States, China and the rest of the world, adding that with the traceability that will be provided by regional commodities exchange, exports  will increased in value and volume.

    With the government set to unveil the regional agro commodities exchange  policy direction, Balogun said  so much would be achieved to  support  farmers in the transition towards a sustainable and resilient agricultural sector including investments to make living and working in rural areas more attractive, aiming to create at least 20 million jobs .

    He said: “Twenty million jobs will be created. Additional food production of 10 million metric tonnes (Mt) will push food production from 40 million to 50million Mt.”

    To achieve a truly resilient food system, he urged the government to tackle the issues that have continued to affect farming communities and to provide them with stronger tools to deliver sustainable food security for society.

    He x-rayed  the sector’s  outlook in terms of indicators such as   self-sufficiency rates, net trade, diversification of exports, adding  that so much  has to be done to enable Nigeria  remain self-sufficient in key staples such as rice to  generate surpluses, which contribute to national food supply.

    He urged the new administration to embark on reforms towards providing abundant, high quality, safe and nutritious food to the nation and globally.

    According to him, strengthening the competitiveness of Nigeria’s export required reforms and investments that go beyond the narrow realm of industrial and trade policies. 

    He said considerable scope existed to diversify and add value to   the nation’s agri-food export basket to new destinations, while underscoring the importance of trade policy to the sector’s continued growth.

    He continued that Nigeria’s future growth trajectory will be well served by a continued pursuit of open trade and investment policies and by sustained efforts at building a more competitive, inclusive, and resilient economy.

    To this end, he called for increased partnership with private sector firms to increase trade and investment across the country. According to him, such partnerships will generate huge earnings in agricultural exports, as well as unleashing innovative technologies and business models that will improve the livelihoods of millions of smallholder farmers across the country.

  • Naira closes at N756/$ in official market

    Naira closes at N756/$ in official market

    • Gains N14

    The naira yesterday recovered from N107 loss it recorded on Monday to post N14 gain at the Investors’ and Exporters’ (I&E) window- the official market.

    The local currency closed at N756/$ at the I&E window, stronger than N770/$ it ended on Monday.

    The appreciation of the naira brought it closer to the N760/$ rate at the parallel market, an indication of rate convergence.

    The Central Bank of Nigeria (CBN) is implementing foreign exchange reforms meant to bring transparency and accountability into the market and boost foreign capital inflows to the economy.

    The unification of multiple exchange rates into the I&E window has been described by stakeholders as a game-changer in the apex bank’s plan to achieve exchange rate stability. 

    The policy allows forex dealers and investors to buy and sell dollars at exchange rate of their choice, provided they can find buyers. This move aims to ensure that the naira is allowed to trade at the market-clearing rate in the forex market.

    In an emailed report to investors, an economist and Managing Director, Financial Derivatives Company Limited, Bismarck Rewane, said the adoption of a single exchange rate and the “willing buyer-willing seller model” by the CBN  was cheery news for the market.

    He said the new exchange rate framework is expected to increase transparency in the forex market, reduce exchange rate misalignment and transaction costs, and buoy investor confidence.

    “However, exchange rate management goes beyond exchange rate unification. It must address issues surrounding market structure, easy access and adequate supply.This means effectively dismantling forex rationing, administrative controls, and reviewing import restrictions. As Barack Obama declared, “Africa doesn’t need strongmen, it needs strong institutions,” Rewane said.

    In announcing the policy shift, CBN Director, Financial Markets, Angela Sere-Ejembi,  said the operational changes to the foreign exchange market also include the re-introduction of the “Willing Buyer, Willing Seller” model at the I&E Window.

    “Operations in this window shall be guided by the extant circular on the establishment of the window, dated 21 April 2017 and referenced FMD/DIR/CIR/GEN/08/007. All eligible transactions are permitted to access foreign exchange at this window,” she said.

    According to the circular, all operational rate for all government-related transactions shall be the weighted average rate of the preceding day’s executed transactions at the I&E window, calculated to two decimal places.