The Nation Newspaper

Author: The Nation

  • ‘How constitution review can foster true federalism’

    ‘How constitution review can foster true federalism’

    Regionalism

    The idea of re-introducing the regions into the structure of the Nigerian polity at this point in time is retrogressive, expensive and out-of-tune with the general thinking in a modern Nigeria. It is like dragging us 50 years back from this period (i.e. To the beginning of political administration in Nigeria). If regionalism, now being canvassed by THE PATRIOTS, was tabled before the various Constitutional Conferences in the 1950’s, the idea would have received some favourable consideration, and a lot of changes would have gone into whatever might have been agreed at that time such that the Nigeria of 2000 will definitely not be what it is now nor what THE PATRIOTS are proposing.

    THE PATRIOTS’ membership has many varied senior citizens of Nigeria, and also highly learned experienced and resourceful materials this country can boast of any day. They are all eminent Nigerians. We are also privileged to have in THE PATRIOTS men who have been involved in the drafting of our constitutions in the past. There is nothing

    I may say about the past that will be strange to them. It is an undisputable fact that Nigeria has not witnessed a stable democratic rule since 1966.

    But during this period, the political emancipation gained by the various ethnic groups through the creation of states and local government councils has become not only part of our history, but also part of the everyday life of these people to which they are pathologically attached. If the new constitution is for these same people, then it must be fashioned to recognise the reality on the ground, that is, the local independence enjoyed by all since 1960, which has brought a lot of physical development into areas, hitherto neglected because of their ethnic or tribal chauvinism.

    Read Also: Nigerian golfer Oboh wins big, to debut on LPGA Tour

    A simple example:

    Going by THE PATRIOTS’ proposal, we are to have six (6) regional capitals;

    Viz. –

    • JOS for North-Central

    • MAIDUGURI for Northeast

    • KADUNA for Northwest

    • ENUGU for Southeast

    • PORT-HARCOURT for

        South-South

    • IBADAN for Southwest

    So, – the people of Lagos whose control had always been from Lagos and who only had the other parts of the Colony Province ceded to it to become Lagos State 33 years ago, will now report to a Regional Capital in Ibadan (over 125 kilometres away). – or the Edo/Delta people whose entire life had been with the West and who got ‘Independence’ in 1963 to be where they are today to now report to a Regional Capital in Port Harcourt; – or the ‘Sharia’ Niger, to report to a Regional Capital in Jos of Plateau State; etc.

    The same scenario can be repeated for all the 36 States and the 768 local government councils.

    If the proposals of THE PATRIOTS are adopted, the following Administrative Set-ups will emerge in the 36 States:

    Maybe, the Judiciary will be spared in this highly expensive venture.

    The multiplier effect of creating the various new positions in the New Regions as shown above will be such that the cost of keeping the machinery of administration going may not even be available, not to talk of any state or region having fund left for capital projects. We must not deceive ourselves: no new Regions or any existing state will want to operate without having in place a minimum of the positions listed above.

    All these personnel who are only at the apex of government administration will need the basic administrative infrastructure (vehicles, office and residential accommodation, furniture, equipment, etc.) to be able to function. N30, 000.00 minimum wage for the workers is today a problem for some States in the Federation!

    If only for the cost implication, Regionalism should be jettisoned. It is unprogressive, very expensive and not in consonance with the state of political, economic and social development of the Nigerian people. I plead with The Patriots to have a second look at the proposal again.

    What is sauce for the goose is sauce for the gander. We must go the whole hog.

    • Note: It is necessary to point out that the substitution of “Police Service Commission” for “Nigeria Police Council” in The Patriots’ new Section 216(E) is a misnomer: The appropriate body to delegate function in respect of ‘powers’ is the Police Council not Police Service Commission.

    1. Early History of Local Government System in Nigeria Between 1937 and 1952 the Northern and Southern Nigeria operated what was known as Native Authority (NA) which has its own courts and police to administer at the grassroots level. While this system changed in the Western and Eastern parts of Nigeria in the early 50s, it continued in the Northern part until after independence.

    A summary of the practice in the four regions then was as follows:

    1.1 The Lagos, Midwestern and Western States.

    There was a close similarity between the Local Government arrangements in the Lagos, Midwestern and Western States as the areas of these States except the city of Lagos were all formerly part of the Western Region of Nigeria. The common Local Government law provided for a three-tiered structure comprising Divisional, District and Local Councils although, in practice, only a one-tier system was found in most parts of these States and, in other areas, there were never more than two-tiers of Local Government.

    Lagos City Council was in a special category being governed by a separate enactment, the Lagos Local Government Act 1959. Outside Lagos, the intention of the Local Government law was that a Divisional Council should be superior to a Local Council. In fact, the Divisional Council was the rating authority for Local Councils in its area of jurisdiction while the District Council was really not under the Divisional Council, only less in status, but was also a rating authority.

    A further development in Lagos State in 1971 saw the scrapping of the three-tiered structure and gave way to an All-purpose District Councils structure for all the council areas as a result of the recommendations of Ogunnaike Report on The Tribunal of Inquiry into Re-organisation of Local Government Councils in Lagos State which the State Government accepted.

    1.2 The East-Central, Rivers and South Eastern States.

    These three States were what constituted the then Eastern Nigeria and had a common form of Local Government.

    In the rural districts, there was a two-tiered structure comprising County Councils and Local Councils. The largest urban centres had Municipal Councils, and other urban centres were administered by Urban County Councils. These two types of urban local authority were regarded as being the same level of local administration as the County Council. However, the non-urban County Councils had supervisory powers over Local Councils within their area of jurisdiction.

    1.3 The Benue-Plateau, Kano, Kwara, North Central, North Eastern and North Western States.

    The six States whose areas formed what used to be known as the Northern Region of Nigeria retained many common features in their systems of local government. Formerly, all local governments were designated Native Authority (NA), but this title was retained at that time in North Western and North Eastern States. Kano and Kwara had constituted “Local Government Authorities”; Benue-Plateau had set up “Local Administrations’ and North Central had also set up ‘Local Authorities.”

    In the former Northern Region, a three-tiered and, sometimes, four-tiered structure of local government was in operation consisting of the Native Authority, District Council, and Village or Village Group Councils.

    1976 Local Government Reform

    The scenario above was what could be called the system of Local Government administration in Nigeria before 1976.

    In 1976, the Military Administration decided on a single local government system for Nigeria on the basis of Dasuki’s Report. It approved that the designation of a local government unit of operation should be: “Local Government Council” and went ahead to decree the number for each State of the Federation. It also saw to it that elections were held into the new council areas in December, 1976 and they all took off in January, 1977.

    1979 and 1983 (The Civilian Era)

    The 1979 Constitution vested the creation of Local Government Councils in the State Government. Many of the 19 States then created new local government areas. (Lagos State was created into 23 LGAs). But when the Military took over on December 31, 1983, it reverted the number of local government councils in the country to its pre-1979 number. (Accordingly, Lagos State was reverted to 8 LGAs).

    1984 to Date

    Between 1984 and now, all the changes in number of local government areas in Nigeria were made by the Military by Decree.

    Up till 1996, additional local government areas were created without the input of the Nigerian people: only the successive Military Administrations conceptualized and decided on the various increases.

    In 1995/96, the Abacha Regime set up a high powered committee on creation of new local government areas. The committee worked hard for over a year and submitted a report with recommendations. But in the usual manner of that time, the report was jettisoned and the Government announced a 30% increase across the board of existing local government areas in each State of the Federation to further worsen the existing injustice in the distribution among States. For example, Lagos with almost the same population as Kano moved from 15 to 20 while Kano moved from 34 to 44, creating further inequity out of the existing inequality. (Emphasis is mine).

    The 1996 review gave Nigeria a total of 774 local government council areas (6 of which were created for the Federal Capital Territory, Abuja).

    Since 1976, no civilian administration has successfully created additional local government areas in Nigeria.

    The Way Forward (Recommendations) We all know that local government system is a sine qua non to the development of the grassroot in our various communities. But to remind us and bring the matter close to our chest, I quote below an excerpt from Chief Obafemi Awolowo’s contribution to the debate on the second reading of a Local Government Bill in 1952 in the Western House of Assembly:

    “The importance of local government in any political set-up cannot be over- emphasised. It is the foundation on which the massive and magnificent superstructure of State, Region or Central Government, is erected. It is the training ground in political awareness and civic responsibility for a much larger number of public-spirited citizens than can ever have room to operate on the

    Regional or National levels. Its day-to-day doings directly affect those who live within its jurisdiction, for better or for worse. Indeed, it is the most effective agency by means of which Regional or State Government ministers to the basic needs, welfare and general well-being of the citizens.” End of quote.

    It has therefore become imperative for us to take the bull by the horn by terminating the iniquity created by inequitable distribution of local government areas in Nigeria (see Annexure) and erecting through amendment of the relevant sections of the 1999 Constitution a more equitable local government superstructure that will enable us “to minister to the needs, welfare and general well-being of our citizens”.

    I propose the following actions on the sections of the 1999 Constitution listed hereunder as my recommendation to right the wrong of over four decades in Nigeria in the matter of Local Government Administration:

    In summary, my recommendation is that Local Government creation, structure, finance and administration should be made exclusive function of the State Governments. I also suggest that Sections 7 and 162 can be further strengthened to accommodate stiff sanctions in order to ensure compliance by the Governors of laws enacted by the State Houses of Assembly relating to sharing of allocations.

  • Poll winner Abiola’s killers still unknown

    Poll winner Abiola’s killers still unknown

    Almost 26 years after, the controversy over the death of the winner of the June 12, 1993 presidential election, Chief Moshood Abiola, in detention has not resolved. There was the insinuation that he drank a cup of tea. The  remark by former Chief of Staff Lt-Gen. Ishaya Bamaiyi that the eminent politician did not die of natural causes has further fueled the suspicion that he was murdered by unknown assassins. Up to now, the autopsy is hanging. How did Abiola die? Group Political Editor EMMANUEL OLADESU writes of the travails of the detained symbol of the credible poll who never came out alive.

    No answer has been provided to the puzzle: who killed Moshood Kashimawo Olawale Abiola? What killed the winner of the historic June 12, 1993 presidential election in detention? Was an autopsy actually carried out? What was the outcome?

    Abiola died in detention where he was kept by the former military Head of State, Gen. Sani Abacha.

    Abacha died on June 8, 1998. Barely a month after, on July 7, Abiola also died. Why the controversy over his death has persisted is that he was not released immediately by the new government, despite the demand for his release by pro-democracy forces.

    Thirty-one years ago, Abiola won a free and fair election. It was criminally annulled by former military President Ibrahim Babangida without justification. Instead of handing over power to him when he stepped aside ingloriously, an interim contraption headed by the late Chief Ernest Sonekan was installed. The caretaker government was shoved aside by Abacha, who loomed large on the beleaguered country for the next five years.

    Almost 26 years after the death of the business mogul, his demise is still a riddle. The allusion to the tragedy by former Chief of Army Staff Lt-Gen. Ishaya Bamaiyi has aroused public consciousness to the suspected murder. But, the disclosure may still have to be subjected to scrutiny.

    Few weeks before Abiola’s death was announced, the nation was hopeful about his release from incarceration. His was sighted in a group photograph taken when he was visited in prison by Susan Rice, former United States Assistant Secretary of State. Also sighted in the photograph was the late Admiral Mike Akhigbe, former Chief of General Staff.

    Read Also: Nigeria’s trade surplus hits N6.5tr

    In that picture, it appeared that Abiola was in high spirit and full of expectation. He seemed to be hale and hearty. It was like he had hoped to regain his freedom. But, few days after, a bewildered nation was jolted out of its illusion that the chief would return alive. A pall of gloom descended on the country.

    Abiola died in the hand of his military tormentors. On that same day, the struggle for the validation of the annulled poll results ended. Promptly, the hunt for power at the federal level commenced. While many credible political leaders, who were heroes of the epic struggle, were reluctant to participate in the post-Abiola transition programme, the Generals seized the initiative, regrouped immediately and anointed one of their own for the succession battle.

    In his book, the  ‘Vindication of a General,’ Bamaiyi attributed Abiola’s death to a sort of inexplicable conspiracy within the military government that succeeded the Abacha regime. Abiola did not die under Abacha’s watch. Bamaiyi emphasized that he died when Gen. Abdulsalami Abubakar was in the saddle.

    “I believe only Gen. Abubakar and those he used to handle Abiola’s death can tell Nigerians how Chief M.K.O Abiola died. Abiola could not have died the way he reportedly died,” he said.

    Up to now, no member of the last military government has come out to lay bare the circumstances surrounding the mysterious death.

    For Abiola’s large family, the pains lingers. The scars have not faded from the hearts of pro-democracy crusaders who laboured in vain. The pan-Nigerian mandate paled into an illusion; a sort of fantasy or daydreaming.

    However, the former Army chief had harsh words for the pro-democracy movement, which, in his opinion, failed to give the banned Social Democratic Party (SDP) candidate an objective advice. In those anxious times, there were conflicts of sugggestions. Put succinctly, Bamaiyi attributed Abiola’s death to his rejection of the bail conditions reeled out his captor, Abacha. He had rejected the highly suspicious conditions, following the National Democratic Coalition (NADECO)’s advice.

    A key player in the bail saga was the strongman of Ibadan politics, the late Alhaji Lamidi Adedibu, who approached Abiola and his family with the military gesture.

    The bail conditions were to tie Abiola’s hands and sentence him to self-liquidation. According to the terms, the symbol of the struggle, who had declared himself president, was expected to eat his words, recant and give the military regime an assurance that he will abandon the struggle.

    Predictably, the bail was turned down by Abiola’s compatriots in NADECO, not only because Adedibu was a wrong envoy, but because a conditional bail at that stage of the struggle was considered illogical.

    The popular opinion was that Abacha, who presided over an illegitimate government, should vacate the seat for the winner of a democratic election to draw the curtains on the long years of misrule.

    Abiola exuded a rare courage. For five years, he never wavered. He did not relent in his bid to reclaim his mandate. He knew that his life was in danger. During his incarceration, he wrote several notes to the pro-democracy leaders. In one of the letters, he stated that “Abacha has dug a grave for me and all that is left is for him to cover it.”

    In the trenches, NADECO and NALICON were the civilian armies that defiled the military bullets. Many human rights activists, arrowhead of student groups and leaders of Afenifere, the pan-Yoruba socio-political group, became casualties of the military onslaught.

    Scores were were unjustly detained, maimed and killed. Some were framed up in the phantom coup. Among those who lost their lives during the titanic battle were Pa Alfred Rewane and Abiola’s wife, Kudirat, who had assumed a leadership responsibility within the pro-democracy movement, following his detention. Residences of freedom fighters like Gen. Alani Akinrinade and Dr. Amos Akingba were bombed. The military lied, labelling them as public enemies.

    At the height of the face-off between the military and NADECO, many June 12 co-travelers had to leave the country to continue the struggle abroad. They escaped through the ‘NADECO rout.’ They included Pa Anthony Enahoro, Prof. Wole Soyinka, Senator Bola Tinubu, who is now president, Hon. Olawale Oshun, Commodore Dan Suleiman, Chief John Odigie-Oyegun, Chief Ralph Obiora, Akingba, Akinrinade and Prof. Bolaji Akinyemi.

    Many retired soldiers who knew how soldiers operated during the dark period knew that Abiola was in a delicate situation. Other Nigerians had expressed fears for his  safety, especially when the Abacha’s self-succession agenda was unfolded.

    As the maximum ruler ubfolded a plan to transform into a civilian president, the political class was divided. Many of them endorsed his aspirantion.

    Gen. Musa Yar’Adua, who had opposed the elongation of the military regime through whatever means had been arrested and jailed. Although he did not support Abiola’s struggle, he had influenced the 2004 National Conference to set a terminal date for the military regime, a move that upset Abacha. He was later allegedly injected in the prison where he died.

    There were startling revelations at the Oputa Panel on the circumstances surrounding Abiola’s death. His death was preceded by Abacha’s death.

    After Abacha suddenly passed on, the polity heaved a sigh of relief. Why did Abacha’s successor refuse to release Abiola? Was Gen. Abdulsalami Abubakar planning to release him before he died? Was the great politician poisoned in detention? Did he develop an illness that led to his sudden death? These mysteries may not be resolved for a long time. Facts have not been separated from fables. All has amounted to conjectures.

    However, some NADECO elements had a premonition that an ugly incident was about to occur. In his book, ‘Clapping with one hand: June 12 and the crisis of a nation state,’ Oshun, Third Republic House of Representatives Chief Whip and one-time NADECO secretary, stated: “It was on June 28, 1998 exactly that information reached some key elements within the democratic movement that the president-elect, Bashorun M.K.O. Abiola, would be murdered soon, and in any case, not later than September 1998. The information came via a document from a source we knew, respected and trusted. “

    Despite the receipt of the report that Abiola’s life was in danger, certain elements in the movement did not believe it. Although ‘Radio Kudirat’ had been previously used to disseminate information about the planned attempts on Senator Abraham Adesanya’s and Gen. Yar’Adua’s lives, the handlers of the station dismissed the planned attempt on Abiola’s life as a wild rumour.

    The lesson is that no information should be treated with levity, especially when pro-democracy elements are locked in battle with military marauders over democracy.

    On page 268 of Ohun’s book, the sensitive document available to the pro-democracy movement reads as follows: “Abdulsalam Abubakar: He is an active member of the “die hard” Northern oligarchy. Well respected in the military circle and a bridge between the military cultic group groomed and nurtured by the late Gen. Sani Abacha and the liberals in the army.

    “He was chosen to be the head of state, not because he was the next high ranking officer, but because the way had been pre-paved for him-remember “The plot against Diya?” He is still not acceptable to Buhari, Gumei and Gwarzo, who together asked the “Dare Devil Cultic Group” to obtain written pledge from him to “consolidate Northern domination of political power,” which unfortunately, he wrote and signed before he was approved.

    “He asked to be surrounded by new “Yoruba” friends, which unfortunately would include some of the recently released political detainees. The new regime is working tirelessly to secure the friendship of this new group.

    “The only ADENDUM the new regime and its collaborators has is to: Ensure that Chief M.K.O. Abiola does not become the president of Nigeria in whatever form and Hausa/Fulani domination of the presidency is not compromised.

    “The new regime is: Totally against Chief M.K.O. Abiola’s mandate; Proposing a new transition to democracy by 2000-18 months programme to be announced on October1, 1998; Although would include some released detainees in his cabinet, it would still be intolerant of opposing political views and hence, be as repressive as ever before; The regime is thinking of compensating the families of the slain Ogoni activists and granting amnesty for the 19 Ogoni youths as a way of placating the Ogoni people; NECON would be dissolved and a new electoral commission formed; New parties to be registered; Negotiated amnesty for Diya and co likely, but not soon.

    “According to the reliable source, this regime would fight the press with all its power. An impeccable source said that all proposed elections are to be postponed. New election dates would be announced by the newly formed electoral commission.

    “Let me state here categorically that this is not a prediction at all. It is the pre-conceived plan of the new regime, exposed by an insider. What is absolutely necessary now is to mount relentless and forceful pressure on the regime and drum it to its ears that anything less than the immediate restoration of a democratic government would not be acceptable to Nigerians and the international community and that the opposition is battle ready to take the bull by the horn this time around and would be ready to give all it takes to drive the military out. Another very important thing is that Abiola’s mandate should not be compromised at all. NALICON and NADECO should rally round pro-democracy forces so as to reach a common goal.

    “The important report sent to me today: A notorious gang in the Nigerian Army has completed their plan to assassinate Chief Moshood Abiola as a “final settlement of the Abacha/Abiola war in a “no victor, no vanquished way.” Believe it or not, if the report given to me is anything to go by, Chief Abiola’s death would be a matter of days or before the end of September. This may look ridiculous, unthinkable or like an outright fabrication. But, believe it or not, it is true. Tell other pro-democracy groups, both abroad and home, to mount very intensive pressure on Abdulsalam Abubakar to release Chief M.K.O. Abiola now.

    “The new regime will fail to protect Chief Abiola from assassins because it has not been able to persuade them to rethink the Nigerian national question. They might even seize power from Abdulsalam in order to achieve their destructive ….People are hell  bent (on) destroying the corporate existence of Nigeria than see Abiola become president

    “NOTE: Please, take immediate action on this report….”

    Oshun recalled that Soyinka was among the earliest recipients of the message. The Nobel Laureate was said to have risen to the occasion because he wanted to save Abiola’s life from the hands of murderers in Abuja.

    “Prof. Soyinka indeed, alerted the Secretary-General of the United Nations, Kofi Annan, who at the time was planning a trouble shooting trip to Nigeria, on the impending infamy,” he added.

    It was possible that those directing affairs at Radio Kudirat were not progessional journalists in the real sense of the word. They remained heroes. But, their news judgment was suspect.

    Oshun lamented that “fate however, dealt us a fatal blow because, unlike in the past when such pieces of in formation would have been broadcast repeatedly on Radio Kudirat, some efficient, but not so politically astute members of the production team held the information to be unreliable.”

    He added: “In the past, when the information on the lethal poisoning of Yar’Adua and of the intent to murder Senator Abraham Adesanya were received, and passed on to the production team of Radio Kudirat, there was no necessity for anyone to check back on the team as to dissemination. The major objective was carried out immediately. In the case of the attack on Senator Adesanya, the broadcast was on as soon as the information was obtained. It was based on that established tradition therefore, that it was assumed that the Abiola story would be treated with the normal and possibly greater urgency.

    “The assumption was to prove fatal for, u known to many of us, the otherwise wonderfully efficient head of production at Radio Kudirat, concluded that the information on Abiola’s immediate murder could not have been genuine. Having reached that conclusion, the head of production did not nother to inform anyone. This was how it happened that not a single reference was made to the alert on the impending murder of M.K.O Abiola. It was after MKO’s death was announced that we realized what had happened.”

    But, why was the alert on the impending murder of Abiola ignored, despite the fact that the alert on Yar’Adua’s and Adesanya’s lives were given due attention? Oshun suggested fatigue on the part of the pro-democracy crusaders, adding that they were carried away by emergence of Gen. Abubakar, “with his smooth, but deceptively humble style.”

    He stressed: “With him promising the democratic el-Dorado after the unlamented demise of Sani Abacha, views held a few days back were all suddenly made to look or sound unreasonable.

    “It is often said that the most gentle of men are also the most lethal in some relationships. It was Abdulsalami Abubakar’s gentility that made many to forget on the spot and as soon as he began to make his promises, that he was a prominent and an dispensable member of the Abacha machine of cruelty.”

  • MTN, Airtel take hit on forex exposures

    MTN, Airtel take hit on forex exposures

    The foreign exchange (forex) volatility in the country has taken a huge toll on the MTN Nigeria and Airtel Africa’s operations as both service providers posted huge losses after tax. While MTN posted a loss after tax of N392.7 billion, Airtel Africa recorded a loss after tax of $89 million, primarily impacted by significant forex headwinds, resulting in a $549 million exceptional loss net of tax following the Nigerian naira devaluation in June 2023 and first quarter 2024, and the Malawian kwacha devaluation in November 2023, according to MTNN unaudited results for the quarter ended March 31, 2024 and Airtel Africa’s results for year ended 31 March 2024 respectively.

    MTN said its profit after tax (PAT) adjusted for the net forex loss declined by 57.8per cent to N47.1 billion with net loss for the quarter resulted in a further increase in its accumulated losses and negative shareholders’ funds to N599.2 billion and N434.7 billion, respectively.

    The report also showed that MTN’s capital expenditure (capex) increased by 49.1per cent to N179.7 billion (up 84.4per cent to N78.1 billion, excluding leases).

    Airtel Africa said its capex was broadly flat at $737million and was below our guidance largely due to a deferral in data centre investments. “In addition, we invested $152million in licence renewal and spectrum acquisitions, including $127million for the Nigerian 3G licence renewal,” the telco with presence in 14 countries on the continent, said.

    During the period under review, the Nigerian naira devalued significantly from 461 per US dollar in March 2023 to 1,303 per US dollar in March 2024. The impact of the naira devaluation on reported revenue and EBITDA for the year ending 31 March 2024 was $1,042million and $554million respectively. As the currency devaluation occurred at various stages during the year, revenue and EBITDA in the reporting period does not reflect the full year impact. As a result, the next financial year reported currency results will continue to reflect the currency headwinds experienced during FY’24. If the closing rate of 1,303 NGN/USD were to be used to consolidate the results of the Group for the year ended 31 March 2024 reported revenue would have declined further by $603million to $4,376million (16.7per cent YoY decline) as opposed to the 5.3per cent decline reported. Similarly, EBITDA would have declined further by $324million to $2,104million (18.3per cent YoY decline) as opposed to the 5.7per cent decline reported, with an EBITDA margin of 48.1per cent (Q4’24: 46.4per cent).

    Read Also: German Country Director begs Tinubu to release Nnamdi Kanu

    CEO at MTN Nigeria, Karl Toriola said severe macro-economic headwinds overshadowed a strong operating performance.

    “The operating environment in the first quarter remained very challenging, with rising inflation and continued naira depreciation off an already low base. The naira depreciated to an all-time low of N1,627/US$ at the Nigerian Autonomous Foreign Exchange Market (NAFEM) in March, from N907/US$ at the end of December 2023, before moderating to N1,309/US$ by the end of the quarter. Additionally, the inflation rate maintained an upward trajectory, rising to 33.2per cent in March, with an average rate of 31.6per cent in the quarter.

    “To curb inflation, the Central Bank of Nigeria (CBN) increased the Monetary Policy Rate (MPR) by 4pp to 22.75per cent, which has driven up funding costs. These factors have caused significant difficulties for businesses operating in Nigeria, including MTN Nigeria, putting additional pressure on consumers, the cost of doing business and further foreign exchange (forex) losses.

    “During the quarter, we also continued to manage the effects on our business of the industry-wide directive of the Nigerian Communications Commission (NCC) for a full barring of subscriber lines not linked to their National Identity Number (NIN) – the NIN-SIM directive. This impacted the development of our user base across all of our key business units (voice, data and fintech) in Q1 2024. We implemented the directive on subscribers who did not submit their NIN and those with more than five lines linked to an unverified NIN. However, to provide more time for the subscribers with less than five lines linked to an unverified NIN to complete the necessary verification exercise, the NCC has extended the 15 April deadline to 31 July 2024,” he said.

    He said despite these challenges, we remain committed to serving our customers and accelerating the growth of our commercial operations with a disciplined focus on value-based capital allocation and expense efficiencies. “As a result, we delivered service revenue growth of 32.0per cent, which is higher than the average inflation in Q1, demonstrating the underlying strength of our business model. However, this was insufficient to offset the negative impact of the macroeconomic factors mentioned above, which resulted in a large decrease in the EBITDA margin and a significant further net loss after tax. It is imperative that the industry be granted sizable, regulated tariff increases to ensure the future sustainability of the Sector,” he had said.

    Also speaking on the trading update, outgoing Chief Executive Officer at Airtel Africa, Olusegun Ogunsanya, said the opportunity to grow the market remains compelling.

    “The growth opportunity that exists across our markets remains compelling, and we are well positioned to deliver against this opportunity. We will continue to focus on margin improvement from the recent level as we progress through the year.

    “The consistent deployment of our ‘Win with’ strategy supported the acceleration in constant currency revenue growth over the recent quarters which has reduced the impact of currency headwinds faced across most of our markets. This strong revenue performance is a reflection not only of the opportunity that is inherent across our markets, but also the resilience of our affordable offerings despite the inflationary pressure many of our customers have experienced.

    “Facilitating this growth has been, and will remain, fundamental to our performance. The investment in our distribution to catalyse growth, and the technology required to support this growth has been key. Furthermore, our rigorous approach to de-risking our balance sheet and our capital allocation priorities has materially reduced the risks that the currency devaluation has had on our business. Key initiatives include the reduction of US dollar debt across the business and the accumulation of cash at the HoldCo level to fully cover the outstanding debt due. We will continue to focus on reducing our exposure to currency volatility. At the beginning of March, we launched our first buyback programme reflecting the strength of our financial position,” Ogunsanya said.

    MTN said it remained committed to sustained solid commercial momentum despite pressures on earnings.

    Toriola said: “We maintained solid commercial momentum in our connectivity business and platforms despite the NCC’s directive. Although we had to fully bar 8.6 million subscribers in line with the directive, we minimised the net effect of the barred subscribers, and our total number of subscribers only decreased by 2 million in Q1, closing with a total of 77.7 million subscribers. This demonstrates the effectiveness of our customer value management (CVM) initiatives, which helped us to retain affected customers and reduce churn, as well as to drive gross connections. Active data subscribers declined marginally by approximately 78k to 44.5 million.

    “Notwithstanding these headwinds, we recorded increased activity within the base, with voice traffic rising by 5.1per cent and data traffic by 40.6per cent. This is a result of the consistent growth in demand for data and voice, supported by our attractive offers to customers and continuous investment in network quality and coverage.

    “We remain focused on our fintech priority to build robust structures that support the acceleration of wallet adoption and the growth of our merchant ecosystem. Q1 was also challenging for the business, mainly due to the NIN requirement for KYC validation, impacting approximately a million active wallets. This affected the development of the business in the period, resulting in a decline in the active MoMo PSB wallet users by 566k in Q1 to 4.8 million. However, the increased activity within our fintech ecosystem spurred transaction volume growth of 25.6per cent YoY, demonstrating momentum within the ecosystem.”

    On forex volatility impacts on earnings, he said the telco’s solid commercial operations enabled it to deliver service revenue growth of 32.0 per cent, which slightly exceeded the average inflation rate in the quarter. This growth was led by double-digit growth in voice, data, and digital services; as well as favourable base effects in Q1 2023 arising from the challenge in that period (including the redesign of the naira, which resulted in cash shortages).

    EBITDA, however, came under pressure, declining by 1.9per cent, primarily because of a further depreciation of the naira in the quarter, exacerbated by higher general inflation and energy costs.

    “As a result, the EBITDA margin declined by 13.9pp to 39.4per cent. The EBITDA margin would have been 51.0per cent  adjusted for the naira depreciation effects. We continue to pursue our efficiency measures and accelerate efforts to reduce forex exposure to minimise the impact on our business.

    “The further depreciation of the naira in Q1 resulted in a materially higher net forex loss of N656.4 billion (Q1 2023 restated: N4.5 billion), arising from the revaluation of foreign currency-denominated obligations. This led to a loss after tax of N392.7 billion compared to a restated PAT of N108.4 billion in Q1 2023. This has resulted in negative retained earnings and shareholders’ equity at the end of March 2024 of N599.2 billion and N434.7 billion, respectively. However, adjusting for the net forex loss, PAT would have been N47.1 billion (down by 57.8per cent), reflecting the underlying resilience of our financial performance under tough conditions,” he said.

  • Fed Govt to implement smart regulations for CNG

    Fed Govt to implement smart regulations for CNG

    As compressed natural gas (CNG) is set to become a permanent fixture in Nigeria’s energy landscape, the Programme Director and Chief Executive of the Presidential CNG Initiative (PCNGI), Michael Oluwagbemi, has said the government’s plan is to implement smart regulations that promotes growth and provides clear, predictable rules for safe investment. “We aim for a CNG sector with zero incidents as we seek to convert up to one million vehicles in the next three to four years,” he said.

    He reaffirmed the government’s commitment to safety during this transition, while also reiterating its commitment to transitioning to cleaner, safer, and more reliable fuel options under the leadership of President Bola Tinubu.

    He described the compressed natural gas (CNG) as the gas and fuel of the future for the transportation and power sectors, but also acknowledged concerns regarding the safety of CNG given its high-pressure storage requirements.

    Addressing participants at a virtual workshop hosted by the Competency Centre of the Major Energies Marketers Association of Nigeria (MEMAN) at the weekend which focused on operational safety in the retail CNG sector, the PCNGI boss reiterated the safety of the CNG, insisting that it is by far safer than petrol and diesel as it is less explosive. “CNG is 10 times less explosive than petrol and eight times less explosive than diesel when properly handled,” he emphasised.

    Oluwagbemi noted that it is of paramount importance to develop a robust regulatory framework to ensure the safe handling and use of CNG, particularly in the transportation sector. A key initiative referenced in this regard was the development of the Nigerian Gas Vehicle Monitoring System (NGVMS), designed to oversee safety practices in the natural gas vehicle system.

    This system, he explained, aims to monitor everything from the inspection of original equipment manufacturer (OEM) vehicles to the conversion of non-OEM vehicles. “The NGVMS will allow us to see what actors are doing, accredit workshops, train and certify technicians, and ensure that vehicle parts used for conversion are certified and standardised,” he explained.

    The Chairman, MEMAN, Huub Stokman, underscored the importance of the Competency Centre’s role in supporting the entire industry. “It’s important to realise that we’ve been on this journey for a long time. Nigeria, known as the eighth-largest gas province in the world, has extensive experience with LPG, which is a crucial part of our energy mix. As we introduce CNG to the public, it’s essential to ensure it is done correctly and safely,” he said.

    Read Also: Nigeria, US discuss climate financing instruments to drive green industrial agenda

    Stokman, while highlighting the distinct differences between LPG and CNG, emphasised the need for proper equipment, transport, and installation procedures. This, he explained, was the motivation for the workshop which aimed to share best practices and ensure the safe adoption of CNG. “We owe it to ourselves, our friends, and our families to introduce CNG safely,” he said.

    Similarly, the Executive Secretary of the Nigerian Gas Association (NGA), Taji Ogbe emphasised that safety in the gas industry is the top priority. He buttressed the cost savings and environmental benefits of CNG compared to petrol and diesel.

    He also acknowledged the challenges of CNG adoption, including infrastructure and conversion costs, but emphasised that addressing these through standards and public education is crucial. Ogbe commended the efforts of MEMAN and the PCNGI and reiterated the importance of sustained information dissemination, industry engagement, and regulatory support to drive the successful and safe adoption of CNG in Nigeria.

    “We must all work together to ensure that the adoption of CNG is both successful and safe,” Ogbe concluded.

  • Global aviation training market to hit $66.9b

    Global aviation training market to hit $66.9b

    The global aviation training market encompassing human capacity development for skilled pilots, cabin crew, flight dispatchers, aircraft engineers/technicians and other professionals in the aeronautical space will witness significant growth in the next 12 months, statistics  from industry databank report Markets and Markets , has revealed.

    Citing growing demand for specialised industry skills in the air travel space, the report reveals a five year growth trajectory pulling from $52.9 billion in 2020 to $66.9 billion by 2025.

    Spiking a 4.8 per cent cumulative annual growth rate, the report highlighted some factors driving dynamics for the global aviation training market to include:  the rising adoption of simulation-based training for various aviation roles, as it offers cost-effective, safe, and realistic learning environments.

     It further highlights that simulation-based training can also help address the challenges of pilot shortage, aging workforce, and regulatory compliance.

    To tap into opportunities in the value chain, aviation training organisations in Nigeria: International Aviation College (IAC), Ilorin, Kwara State, and the Nigerian College of Aviation Technology (NCAT), are exploring opportunities for partnership as they are concluding plans to ink a Memorandum of Understanding (MoU), to deepen training capacities in the fields of piloting, aircraft engineering repairs and other areas of core competence.

    Read Also: Medical tourism to Nigeria (2)

    The new deal between the two Nigerian Aviation Training Organisations (ATOs), is to  chalk into the burgeoning revenue that could be derived from the multi – million dollar industry.

    Acting Rector of IAC, Captain Yakubu Okatahi , who disclosed this in an interview, said the College is taking steps to leverage its capacity to attract global recognition in the training of core aviation professionals.

    Nigeria, Okatahi said, is a major player in the global aviation manpower development chain, which must seek partnership internally to boost its service offering.

    Significantly, he said the IAC, is ramping up efforts to boost its service offering in the training of aviation personnel by introducing short courses to boost the internally generated revenue of Kwara State.

    The aviation training market offers several opportunities for the key players to capitalize on the existing and potential demand for aviation services.

    The Market and Market report indicates that the  expansion and diversification of the aviation training portfolio and customer base offers  new and customized training solutions and products that cater to the specific needs and preferences of the different segments and regions of the market.

    It listed the markets to include burgeoning low-cost carriers, business aviation, general aviation, military aviation, and the emerging markets.

    -The report stated: “The collaboration and partnership among  key players, such as the training providers, aircraft manufacturers, airlines,  airports, regulators and associations is driving the growth of the aviation training organisations ‘ market.

    “These collaborations and partnerships can help leverage the resources, expertise, and networks of the different stakeholders, and create synergies and value-added services for the customers.

    “The innovation and differentiation of the aviation training offerings and delivery, by adopting and integrating the latest technologies, methodologies, and best practices that can enhance the learning outcomes, efficiency, and competitiveness of the training.

    “These innovations and differentiations can also help create a unique and distinctive brand identity and reputation for the key players in the market.’

    Citing strides by CAE, a leading provider of aviation training solutions, the Market and Market reports said the recently launched CAE Rise, a cloud-based platform that leverages artificial intelligence and big data analytics to deliver personalized training and performance assessment for pilots is altering the stakes in the industry.

    The report stated: “The growing demand for low-cost carriers (LCCs) in emerging markets, such as Asia-Pacific and Latin America, will create new opportunities for aviation training providers. LCCs typically operate with a lean workforce and require efficient and flexible training solutions. For example, IndiGo, India’s largest LCC, has partnered with L3Harris Technologies to establish a joint venture training center in Bengaluru, which will offer a range of training programs for pilots and cabin crew.

    “The increasing focus on enhancing the safety and quality of aviation services, especially in the wake of the COVID-19 pandemic, has highlighted the need for rigorous and standardized training protocols.

    “Aviation training providers are expected to invest in advanced technologies and methodologies, such as virtual reality, augmented reality, gamification, and adaptive learning, to improve the learning outcomes and retention rates of trainees.

    “For instance, FlightSafety International, a leading aviation training company, has introduced FlightSmart, a new approach to training that uses artificial intelligence and machine learning to optimize the training curriculum and instructor feedback for each trainee.”

  • UNCTAD urges action on rising public debt

    UNCTAD urges action on rising public debt

    United Nations Conference on Trade and Development (UNCTAD) has called for urgent reforms to the global debt architecture to avert a widespread debt crisis among developing countries.

    In the wake of the COVID-19 pandemic, developing countries’ external sovereign debt – funds borrowed in foreign currency – increased by 15.7per cent to $11.4 trillion by the end of 2022. The mounting debt levels are further complicated by the diversity of lenders and financial instruments.

    Equally alarming is the surge in debt servicing costs. Low-income and lower-middle-income countries – also referred to as frontier markets – that borrowed when interest rates were low and investors keen are now spending around 23 per cent and 13per cent of their export revenues, respectively, to repay their external debt.

    To put this in perspective, after World War II, the share of export revenue going into debt servicing for Germany was capped at five per cent to aid West Germany’s recovery,” Head of UNCTAD’s Macro-economic and Development Policies Branch, Ms Anastasia Nesvetailova, said.

    The rising debt costs are draining vital public resources needed for development. About 3.3 billion people – almost half of humanity – now live in countries that spend more money paying interest on their debts than on education or health. The UN’s “A World of Debt Dashboard” provides data and in-depth insight on key public debt and development spending indicators for 188 countries.

    Read Also: Umahi emerges one of top performing ministers in Tinubu’s cabinet

    “This situation is clearly unsustainable. While a systemic debt crisis, in which a growing number of developing countries move from distress to default, looms on the horizon, a development crisis is already underway,” she said.

    Ms. Nesvetailova said the mounting debt crisis stems not only from the wave of debt after the Global Financial Crisis of 2008, the cascading crises since the pandemic and the aggressive monetary tightening in developed countries. She points out that the main roots lie in the structural flaws of the global sovereign debt architecture, “which offers inadequate and delayed support to countries in debt distress.”

    UNCTAD’s latest Trade and Development Report unpacks the current inequalities, inflexibilities and problems of the global sovereign debt architecture, outlining a strategy to address them.

    “A development-centred approach to debt is needed,” Ms. Nesvetailova says, highlighting overlooked factors contributing to unsustainable sovereign debt, such as climate change.

    The report advocates for a thorough re-evaluation of these factors, which encompass demographics, public health, global economic shifts, rising interest rates, geopolitical realignments, political instability, as well as the implications of sovereign debt on industrial policies in debtor states.

    It proposes a five-stage life cycle for sovereign debt as a conceptual framework to analyse and improve the global debt architecture. The stages include incurring debt, issuing debt instruments, such as bonds and loans, managing debt, tracking debt sustainability and, if necessary, restructuring or renegotiating the terms of debt.

    “We’re urging new creative thinking in all stages of the debt cycle, as well as new approaches to bridge the persistent divide between statutory and contractual solutions,” says Penelope Hawkins, head of UNCTAD’s debt and development finance branch.

    The UNCTAD report outlines a comprehensive set of recommendations to recalibrate the global debt architecture in line with developing countries’ needs.

    A key recommendation is to boost concessional loans – characterized by lower interest rates and longer repayment terms – and grants. This could be done by increasing the base capital of multilateral and regional banks to expand their lending capacity. Another way to raise concessional finance involves issuing special drawing rights (SDRs), a type of international currency the IMF created for member countries to boost their monetary reserves by exchanging them for official currencies as needed.

  • Japanese economy strained but shows signs of improvement

    Japanese economy strained but shows signs of improvement

    A Reuters poll conducted on Friday suggests the Japanese economy contracted at a slightly slower pace than initially estimated in the first quarter (January-March) of 2024. This revision is attributed to upgrades in capital spending figures.

    Economists anticipate a return to growth in the current quarter (April-June), fueled by government tax cuts and rising wages.

    The revised Cabinet Office data, due for release today, is expected to show a first-quarter GDP contraction of 1.9 per cent annualised, compared to the initially reported 2.0 per cent decline. This translates to an unchanged quarter-on-quarter contraction of 0.5 per cent.

    The Nation learnt that the primary driver for the upward GDP revision is a slight improvement in capital expenditure (spending by businesses on equipment and facilities). The revised data suggests a 0.7per cent decline, compared to a previously reported 0.8 per cent drop.

    Despite the slight positive revision, the Japanese economy still contracted in the first quarter.

    Read Also: Flooding, illegal structures, building collapses and the controversy of Lagos demolitions

    The Nation learnt the country is also facing rising import costs as a result of a weaker yen that is expected to put a strain on consumer spending.

    Disruptions in the auto manufacturing industry are also likely to hinder economic growth.

    The preliminary data indicated a 0.7per cent decrease in private consumption during the first quarter, as rising living costs impacted household finances.

    External demand, the net effect of exports and imports, is estimated to have subtracted 0.3 percentage points from overall GDP growth.

    Separate data from the Bank of Japan, expected on June 12th, is likely to show a 2.0 percent year-on-year increase in the corporate goods price index (May 2024) compared to the same month last year. This index reflects the prices businesses charge each other for goods.

    The slight improvement in the revised GDP figures offers a glimmer of hope for the Japanese economy.

    However, significant challenges remain, including rising import costs and disruptions in key industries. Monitoring consumer spending and external demand will be crucial in gauging the future trajectory of the Japanese economy.

  • ‘Stakeholders seek smart, youth-centric agric’

    ‘Stakeholders seek smart, youth-centric agric’

    Stakeholders have stressed that the primary emphasis should be on the implementation of youth-centric smart agricultural practices.

    Speakers at the launch of the Young Tech Farmers (YTF) Club for Secondary school in Lagos, which held at the University of Lagos, Akoka, Lagos, and organised by Sustainable Agro and Hunger Education (SAHE) Foundation and National Association of Proprietors of Private Schools (NAPPS), Lagos State chapter, pledged support to ensure a developed and technology-driven sector in Nigeria.

    They said parents have important roles to play by inculcating agric values into their children.

    The Director-General, Premier Agribusiness Academy and Soy Value Chain expert, Dr. Francis Toromade, who said there are series of challenges facing technology-driven agriculture, like poor infrastructure, government policies and regulations, and lack of funding, said the programme would set a good pace for Nigeria’s agriculture sector.

     “We are embarking on a journey of developing a nation full of technology-driven farmers. We are going to look at how local departments are reshaping farming practices. Agriculture has a long history of embracing innovations.

    “From the invention of a simple hoe to the advent of mechanisation, we have witnessed a digital revolution. Various technological tools like IoT sensors, tractors, drones, and more have been incorporated into agriculture, making everything easier for farmers. There are even technologies to determine the nutrients in the soil.

    Read Also: Suspects arrested for alleged production of adulterated alcohol in Lagos

    “These technologies help to increase efficiency, enhance productivity, maintain sustainable practices, and secure resilience in the face of agricultural challenges.”

    He called on parents to inculcate agricultural values into their children as a means of promoting the society.

    Chief Executive, SAHE, Dr. Idongesit Mbaram, emphasised the importance of young people as the bridge between the rich history of agriculture and the innovative potential of technology. She said her organisation stood on the cusp of a new era in agriculture, an era driven by the power of technology and the passion of young minds.

    “We seek a nation where agriculture thrives in harmony with nature. This vision gave birth to the SAHE Foundation, a foundation built on the belief that young minds hold the key to unlocking agriculture’s true potential.

    “In 2019, a vision was bestowed upon me by God. A vision of young people, not just tending fields, but revolutionising them. The SAHE Foundation was born from that vision, from a deep belief that agriculture holds immense potential, waiting to be unlocked by the next generation.

    She said for too long, agriculture has been painted as a traditional, labor-intensive profession, noting that it is on the cusp of a technological transformation. “Drones are surveying crops, robots are weeding rows, and data analysis is optimising yields. This, my friends, is the future of farming, and it’s a future brimming with exciting possibility.

  • Lagos hosts AI, other techs forum

    Lagos hosts AI, other techs forum

    A forum to showcase emerging technologies and the vital role the telecom industry plays in the economic growth and digital transformation of the country has been scheduled to be held in Lagos.

    The forum, IoT West Africa Conference and Exhibition, will be held in partnership with the Association of Telecoms Companies of Nigeria (ATCON) between July 2 and 4, at the Balmoral Centre, Federal Palace in Lagos.

    Organisers said it is a pivotal marker in the technological renaissance sweeping the country and the broader West African region.

    The strategic importance of Lagos as the host city intertwines with Nigeria’s rapid development in technology, infrastructure, and a burgeoning digital economy. It underscores the commitment to enhancing the business landscape, especially for small and medium-sized enterprises within technology, agriculture, and manufacturing sectors, through the lens of digital innovation.

    Central to this transformation is the telecom industry, which acts as the backbone of connectivity and digital infrastructure across West Africa. The IoT West Africa Conference zeroes in on the significant influence and contributions of telecoms to the region’s digital ecosystem.

    Managing Director at Vertex Next, Shitij Taneja, emphasised the telecom sector’s role in enabling digital transformation, pivotal in driving innovations in IoT alongside other cutting-edge technologies like blockchain, Big Data, and AI.

    The conference agenda showcases the symbiotic relationship between telecoms and technological advancement through keynote speeches, panel discussions, and technical demos. This rich content offering provides attendees with insights into the future of seamless connectivity enabled by the telecom industry, alongside emerging technological trends shaping the region’s digital landscape.

    This year introduces a particularly significant initiative, the Cloud Expo Africa, which delves deep into the evolving dynamics of digital and cloud infrastructure. This segment highlights the centrality of telecoms in developing African data centers, focusing on advancements and green technology initiatives crucial for sustainable digital ecosystems.

    Read Also: Ghana: Trafficked girls to return to Nigeria next week, says Dabiri-Erewa

    The conference serves as a critical platform for telecom industry leaders and stakeholders to explore new opportunities, attract investments, and spearhead essential technological advancements. It holds particular importance for individuals within the energy, power, telecom, and data center sectors, underscoring the unique influence of telecoms in enabling connected, digital solutions.

    A development for this year’s event is the partnership with ATCON. This collaboration further elevates the event’s focus on telecom and data centers, promising an enriched dialogue on the latest insights, technologies, and best practices vital for empowering and sustaining the digital economy.

    For professionals and businesses poised to lead or adapt to the digital transformation in West Africa, participating in the IoT West Africa Conference and Exhibition offers an unparalleled opportunity to align with the forefront of industry innovation. Through this engagement, attendees will not only witness but contribute to shaping the future landscape of digital and telecom advancements in the region.

  • Analysts say naira overvalued by 37.91% at N1,476 per dollar

    Analysts say naira overvalued by 37.91% at N1,476 per dollar

    The naira, which exchanges at N1,476.12 to dollar at the official market, is currently overvalued by 37.91 per cent, analysts at Financial Derivatives Company Limited, have said.

    In emailed report to investors, the analysts said the naira will, despite its challenges, rebound in the coming months, especially by this year end.

    The analysts hinged the expected naira turnaround on Central Bank of Nigeria (CBN’s) decision to allow International Oil Companies (IOCs) operating in Nigeria to sale 50 per cent of bulk FX proceeds at domestic forex market.

    FDC analysts said the move is aimed at increasing forex availability in the market, thereby aiding in exchange rate stabilisation.  They added that due to the lags, the impact is likely to be more pronounced towards the end of the year.

    A  circular to authorised dealer banks signed by CBN director, Trade & Exchange Department, Hassan Mahmud, said earlier directive to the IOCs to send  50 per cent of the FX proceeds to their home countries at once, and the other 50 per cent after 90 days stays.

    However, the balance 50 per cent of the repatriated funds could now be used to settle financial obligations locally, whenever required, during the prescribed 90-day period.

    The apex bank’s  approved expenditure plans for the IOCs include settlement of Petroleum Profit Tax, royalty, domestic contractor invoices, cash call and domestic loan principal and interest payment.

    Other approved expenditure plans include transaction taxes- including Nigeria Content Development levy,  education tax and forex sales at the Nigerian Foreign Exchange Market.

    Read Also: NITDA, NYSC target 30m Nigerian youths for digital literacy

     “The initial 50 per cent of the repatriated proceeds can be pooled immediately or as and when required. Banks may submit the request for cash pooling ahead of the expected date of receipt, supported by the required documentations, for approval by the Central Bank of Nigeria.The 50 per cent balance of the repatriated export proceeds could be used to settle financial obligations in Nigeria, whenever required, during the prescribed 90-day period,” Mahmud stated.

    He had earlier directed authorised dealer banks to allow IOCs to repatriate such funds in batches to reduce their negative effects on the foreign exchange market.

    “A maximum of 50 per cent in the first instance, while a balance of 50 percent could be repatriated after 90 days from the date of the inflow of the export proceeds,” the circular said.

     “The Central Bank of Nigeria (CBN) has observed that proceeds of oil exports by International Oil Companies (IOCs) operating in Nigeria are transferred offshore to fund parent accounts of the IOCs (otherwise referred to as “cash pooling”). This has an impact on liquidity in the foreign exchange market,” earlier circular said.

    “While the CBN strongly supports the need for IOCs to have easy access to their export proceeds, particularly to meet their offshore obligations, this must be done with minimal negative impact on liquidity in the Nigerian foreign exchange market.”

    “In line with the ongoing reforms in the foreign exchange market, it has become necessary to take measures to address this trend. Consequently, the CBN hereby directs banks are allowed to pool cash on behalf of IOCs, subject to a maximum of 50 per cent of the repatriated export proceeds in the first instance.

    The, the balance of 50 per cent may be repatriated after 90 days from the date of inflow of the export proceeds.

    “The above shall be subject to prior approval of the CBN for the repatriation of funds under the “Cash Pooling” transaction; Cash Pooling” agreement with the parent entity of the IOCs operating in Nigeria, statement of expenditure incurred by the IOC in the immediate past period relating to the “Cash Pooling, evidence of the source of foreign exchange inflows and completion of relevant Forex Form(s) as required under extant regulations,” the apex bank.