The Federal Government plans to begin the issuance of domestic foreign currency-denominated bonds from this quarter, Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, said yesterday.

A Reuters report quoted the minister as speaking at a parley with business leaders in Lagos.

The government move is expected to herald domestic issuance of similar bonds by companies and sub-nationals, a plan already given provisional approval by the country’s apex capital regulator.

The sovereign domestic foreign currency issuance aligns with government’s move to attract more forex inflows to stabilise the naira. Dollar shortages have had significant adverse impact on the naira.

Edun told his audience that the government would seek to sell forex bonds to Nigerians at home and abroad who, “because of lack of faith in the currency, have decided to try to hold and save in dollars.”

“All the funds in the diaspora, we are targeting them. There are all these funds that you have brought into your (local foreign currency) accounts, we are targeting them,” said Edun.

The minister said President Bola Ahmed Tinubu in October 2023 signed executive orders to allow domestic issuance of instruments in foreign currency and also allow all cash outside the banking system to be brought into the banks.

He said that the government had not issued the bonds earlier because it sought to first build confidence in its fiscal policy and gain the trust of citizens who are sceptical of government policies.

Nigeria spends around 78 per cent of its revenue on debt servicing and the government has vowed to cut this to around 50 per cent.

“When they say what keeps you awake at night, I will say paying the debt service (cost),” said Edun.

Nigeria’s apex capital market regulator, Securities and Exchange Commission (SEC) had given a provisional “no-objection” to the proposal to allow companies and governments to undertake dollar-denominated listings on the Nigerian stock market.

The proposal, being pushed by the Nigerian Exchange (NGX), involves creation of a new listing platform for high-valued issuers to raise capital through dollar-denominated debts and equities issuances.

The proposal is considered as one of the quick-interventions to bolster the country’s foreign exchange (forex) position by exploring alternative sources and redirecting remittances and informal sources to a formal market.

Securities and Exchange Commission (SEC) Director-General Lamido Yuguda said the apex regulator has “no problem” with the proposal for dollar-denominated listings by qualified issuers.

According to him, the basic premise of regulation is full disclosure and demonstrated ability of an issuer to meet the required obligations imposed by the issuance.

He said SEC would treat such dollar-denominated listings by companies or governments on the same basis of the ability to meet the required obligations as contained in the issuance documents, and in line with extant rules at the capital market.

Lamido said investors’ protection is deeply ingrained in all regulatory consideration by the Commission as it continues to explore ways to further deepen the capital market.

The listing of dollar-denominated bonds and shares at the Nigerian stock market is targeted at easing access to forex for select companies, especially high-valued companies that require substantial forex for their operations.

Under the proposed two-phased plan, the NGX plans to start with quotation of dollar-denominated debt issues such as bonds and then move to listing of dollar-based ordinary shares and other quasi-equities.

The provisional approval by SEC is a major boost for the NGX forex proposal.

NGX Chief Executive Officer (CEO) Temi Popoola said the Exchange would work with the SEC to create the required regulatory framework for the dollar-based listing.

Changes to listing regulations can be achieved within a “relatively short time”, Popoola said.

He explained that the Exchange was banking on the market-oriented stance and reforms of the Tinubu administration to push the dollar-listing proposal through.

Popoola said the Exchange would be targeting companies operating from the special economic free trade zones and those earning foreign currency

The primary objective, he noted, is to enable these companies to issue bonds denominated in dollars and eventually offer equity in dollars.

“It could potentially address the challenges posed by fluctuations in foreign currency,” Popoola said in an interview with Bloomberg.

 Bloomberg reported that companies Nigeria consistently cite getting access to the dollars they need for raw materials as their biggest challenge.

The NGX also plans to work with SEC to initiate a framework that allows companies with home listing to pay dividends in dollars. Few companies with dual listings already pay dividends in dollars.

The NGX, which did not give a timeline for the launching of the plan, said government’s willingness to consider market reforms increases the prospect of success.

 “Given the proactive stance of the current administration, it is reasonable to anticipate that these objectives can be achieved,” Popoola told Bloomberg.

He pointed out that both retail and institutional investors have “substantial” amounts of dollars that domestic capital markets can tap to encourage more local listings.

“If the target companies cannot access dollars within our market, many of them may opt to list abroad,” he said.

[TheNation]

Recently, the CEO of Air Peace, Allen Onyema, got on the wrong side of the internet when he said anyone earning N200,000 monthly in Nigeria is better off than someone earning £2,000 in the United Kingdom. According to him in a TV interview, the Nigerian with a mere N200,000 can afford a maid, a driver, and other domestic staff while the person who earns £2,000 in the UK can barely get by. His superficial comparison somehow reminds me of Nigerians who conclude they live a better life after comparing the cost of Coca-Cola in their country to the US/UK.

Now, thanks to the internet, Onyema has received more than enough riposte to warrant him thinking hard and long (if he cares to anyway) about the degree to which he is out of touch with the Nigerian reality. If he believes that a person earning N200,000 in a country with a bag of rice around N80,000 can hire at least three others, it also tells you how poorly he thinks wage workers should earn. Yes, he is a private individual with the right to his opinion, but he also hires people and that is why his opinion on wages matters.

But what I find interesting about his comparison between England and Nigeria and the subsequent pushback from the inhabitants of social media is that it leaves off the important question of how much Nigerians should earn. What amount would be sufficient for an average household in Nigeria to live? Without an empirical determination of what people should be paid to live, the best we can do is to resort to facile comparisons about what a sum of money can buy under regimes of their respective currencies without factoring other intangibles being bought along. The way Nigerians—particularly the ones who cannot get over other people’s “japa” decisions—talk about how hard life can be abroad because people there pay bills, bills, and more bills makes you wonder if they are even aware of the extent to which their own supposedly “bill-less” society relatively over-taxes them. Nigerians probably pay far more—at least relative to their income—in social services than their foreign counterparts.

While a society like the UK might pay people a sum as low as £2000 (in Onyema’s estimation by the way), hardly anyone is left to live on just their income. Their public infrastructure and social security are so relatively excellent that even though one might not have enough cash to stack up in the bank, one is unlikely to be shouting “ebi ń pa wá!” on the streets either. In a place like the United States, a person with that low an income will qualify for public health insurance, food stamps, and possibly even rent assistance. So while they might be considered “poor” by their society’s (and Onyema’s) standards, their poverty is not as stark as that of a society with no such provisions.

The question of what a Nigerian household should earn to live is complicated by differing ideas of what constitutes a standard household in Nigeria and what it even means to “live.” In a culture where there is a high percentage of polygamous marriages and our family structures are largely communal, it is hard to benchmark a standard household. For one, “household” here is unlikely to be a nuclear family arrangement. Then, what it means to live varies because of the increasing privatisation of our entire lives. Those who live in societies where they earn a measly £2,000 monthly do not generate their own electricity and water, provide their own security, send their kids to third-rate private schools, or even be called to donate money towards ransoming an abducted relative. If they do not hire a driver, maid, and maybe even a gateman on their salaries, it is not simply because their incomes are too poor. It is because, despite their mere £2000, their system allows them to own a car (or at least have access to an efficient public transport system); they have home appliances that eliminate the need for a maid; and their mode of securing society does not involve high fences and metal gates manned by a “gateman.”

There are practical implications to not knowing what is a just and fair income and thereby making silly comparisons. One of my observations when hiring workers in Nigeria is that most lack an idea of proper calibration of their wages. Because they have not developed a statistical sense of value for what they do, they place the moral burden on you who is hiring them by telling you to pay what you consider fair. Value for their labour is thus negotiated, and contingent on moral considerations and sentiments rather than a standardised measure. Recently, I spoke with someone who pointed out how “corruption” was distributed through every aspect of our society. His example was an instance of price gouging by “pure water” vendors, but what came through in his complaints was the problem of not calibrating value. That is why even the modest attempts of a low-income vendor to make a living looked to him like a rip-off.

In 2019, I talked with some friends regarding the standard of living. There are a family of six (two parents, three children, and a relative). During our conversation, I argued that, for a household like theirs to live a relatively comfortable life, they should earn nothing less than N500,000 monthly. Husband and wife, both school teachers (in a public and private school), understandably laughed. They agreed their lives would considerably improve with a higher income, but who would ever pay teachers that amount? Of course, the question of who can pay such an amount as average income in the country is pertinent. Nigeria simply does not have enough economic activities for any employer, public or private, to pay people enough for them to live well. The minimum wage proposals the Nigeria Labour Congress has bandied about ranged from N500,000 to N1m, and people think the union leaders are being ridiculous. At the bottom of those figures being thrown up is the unsettled issue of how much people should earn in order to live and how to standardise it.

Meanwhile, about five years after I spoke to that couple, their income barely increased but the cost of living leaped up by many miles. Nigeria is no longer where it was in 2019; most people are barely coping. When people seeking to justify the Nigerian dysfunction mention the high costs of living in Western societies that drain their poor £2,000 salaries, I also remind them that as hard as things might be over there, they do not spend 80 to 120 per cent of their income just buying food. Nigerians earn so little that people even take loans to buy food. Not luxurious feasts, just enough food to survive. That does not make any sense.

Through the experiences of this couple and several others I would argue that to the matter of what Nigerians need to earn in order to live should be appended the question of how frequently those kinds of figures need to be updated. The Nigerian costs of living change so frequently that the income that hired three domestic wage workers years ago can barely sustain a four-person family now. Whereas the hypothetical person earning the £2,000 pittance can still do most of the things they were doing years ago. Their reality is not upended as quickly as that of Nigerians.

That is why, instead of wasting time and absolving responsibility by talking about what the person living abroad and ensconced within a system with tight social security and welfare benefits ultimately lacks, we should focus on fellow Nigerians and define what it would mean for them to really live.

Some communities in Abuja, Lagos and Nasarawa are currently experiencing power outages due to technical glitches.

The Ikeja Electricity Distribution Company on Tuesday said the service disruption was due to significant load restrictions across many of its transmission load centres.

According to the power distribution firm, the transmission stations affected include Oworo, Maryland, Itire, Isolo, Ogba, Alausa, Ejigbo, Alimosho and others.

“The current service disruption you are encountering is a result of significant load restrictions across many of our transmission load centres, particularly impacting:

“Oworo TS, Maryland TS, Itire TS, Isolo TS, Ogba TS, Alausa TS, Ejigbo TS, Alimosho TS, Ilupeju TS, Ayobo TS.

“We apologise for any inconvenience caused. We are actively collaborating with relevant stakeholders to restore normal operations,” the Ikeja DisCo said.

In the same vein, the Abuja Electricity Distribution Company informed its customers in Nasarawa that they were in darkness after windstorms brought down transmission lines.

Also, some areas in the FCT were said to be in darkness due to a technical fault.

“This is to notify residents in Nasarawa State: Uke, Gidan Zakara, Gora, Auta-Baleifi, Tukur Farm, CS Farm, Masaka, Keffi GRA, Luvu, Dunamis Community 1&2, Dadin Kowa, Keffi and its environs that the power outage currently being experienced is due to damage to the lines serving these areas, caused by strong winds.

[Punch]

Air Peace, Nigeria’s flag carrier, has announced an increase in capacity on its Lagos-London flights.

The airline made the announcement on its X page on Wednesday.

On March 30, Air Peace commenced its Lagos-London flight services.

During an interview on Arise TV on April 2, Allen Onyema, chief executive officer of Air Peace,  said the airline sold out tickets for the Lagos-London flights until September.

“Due to overwhelming demand and interest in our London route, we have decided to increase the capacity on the route,” Air Peace said.

“This means that more seats are now available.

“Air Peace would like to thank the Nigerian population, both in Nigeria and in the United Kingdom, for their support.

“We do not take it for granted, and we will be doing our best to continue to make the whole country proud.”

Meanwhile, on April 2, Onyema said the airline faced internal and external obstacles before it could commence Lagos-London flight operation, adding that it took the airline seven years to be able to commence operations.

He also said the country is being fleeced by all the airlines “going to London from this place”. 

Onyema said people were paying five times more than they should have been paying for flights.

[TheCable]

The Ondo State Attorney-General and Commissioner for Justice, Kayode Ajulo, has disclosed that he does not plan on paying his 273 aides from the coffers of the state government.

He explained that the designations are mainly honorary, adding that this means the lawyers do not have any right to receive financial remuneration or employment advantages from the Ondo State government.

He described the reaction that trailed the appointment as an “unfortunate misconception of issues.

Ajulo said that the aides will be classified as honorary and technical advisers, maintaining that they are comprised of professional and junior legal practitioners.

He noted that the aides would work closely with him to enhance what he described as ethical legal services to the state.

“Most of these designations are purely honorary, indicating that the lawyers do not have any right to receive financial remuneration or employment advantages from the Ondo State government.

A former national chairman of the Peoples Democratic Party (PDP), Uche Secondus, has lambasted the Minister of the Federal Capital Territory (FCT), Nyesom Wike, for describing him and a former Minister of Transportation, Abiye Sekibo, as “expired politicians” over their support for Rivers State governor, Siminalayi Fubara.

Recall that last week, Secondus, Sekibo, who was director-general of the party’s presidential campaign council in Rivers State; Senator Lee Maeba, Celestine Omehia, and Austin Opara, an ex-lawmaker, openly declared their support for Fubara and urged President Bola Tinubu to caution Wike.

But, Secondus in a statement by his media aide, Ike Abonyi, described Wike as “a showman noted for his double-speak, twisting of facts to score some cheap political points, and someone who stands the truth on its head.”

He further described the FCT Minister’s utterances during his media chat with select journalists as “appalling and rather unfortunate, more so he characterised our revered political leaders of Rivers State, casting them in a bad light by referring to them as transitional politicians, political vampires, and political buccaneers.”

[Leadership]

A former lawmaker, Shehu Sani has aired his opinion on the recent announcements made by the Federal Government on the increase of electricity tariffs.

DAILY POST reports that the Nigerian Electricity Regulatory Commission, NERC, on Wednesday gave the go-ahead to raise the electricity rates for customers in the Band A category.

During a press briefing in Abuja on Wednesday, the Vice Chairman of NERC, Musliu Oseni, announced that there will be a rise in electricity tariffs.

This adjustment will result in customers paying N225 per kilowatt-hour, up from the current rate of N66.

Sani, a former lawmaker, who represented Kaduna central district in the 8th assembly, said the increase would further reduce the living standard of Nigerians and kill businesses.

“Increasing electricity tariffs by 300% will finally electrocute human lives and businesses in the country,” he wrote on X.

[DailyPost]

Turkish club Trabzonspor have been ordered to play six home matches behind closed doors after violent scenes marred a league game with rivals Fenerbahce last month, the country’s football federation (TFF) said Wednesday.

President Bola Tinubu, on Wednesday, signed the Student Loans (Access to Higher Education) Act (Repeal and Re-Enactment) Bill, 2024, into law.

This development follows individual reviews by both the Senate and the House of Representatives of the report from the Committee on Tertiary Institutions and TETFund.

What is the student loan bill in Nigeria?

The Bill sponsored by Senator representing Ekiti Central Senatorial District of Ekiti State, Bamidele Opeyemi aims to improve the execution of the Higher Education Student Loan Scheme in Nigeria by tackling issues related to the management structure of the Nigerian Education Loan Fund, applicant eligibility criteria, loan purposes, funding sources, and procedures for disbursement and repayment.

How does the student loan works in Nigeria?

Under this Bill, the Nigerian Education Loan Fund (NELFUND) would be established as a legal entity with the authority to litigate and be litigated in its own name, and it would possess the power to acquire, hold, and dispose of both movable and immovable property to fulfill its functions.

In essence, the Bill enables the Fund to offer loans to eligible Nigerians for their tuition, fees, charges, and living expenses while studying in approved tertiary institutions and vocational training centers in Nigeria.

In contrast to the previous 2023 Act, which placed the Fund’s administration under a Special Committee chaired by the Governor of the Central Bank of Nigeria, this Bill proposes changes in the management structure.

What are the terms and conditions for student loan in Nigeria?

Furthermore, the Bill eliminates the income-based eligibility criterion set by the existing law, which required an annual income of less than N500,000 for applicants or their families.

The Bill also broadens the scope of eligibility, allowing students from federally or state-established tertiary institutions and government-approved vocational institutions to apply, with specific criteria to be determined by the Fund.

Additionally, unlike the 2023 Act, which limited loan applications solely to tuition fees, the new Bill permits applicants to request loans to cover various institutional charges and maintenance allowances.

Vanguard News

Nigerian crude maintained its premium status as investors and sold higher than the FG budget benchmark on oil as oil traders eyed concerns around crude and fuel supplies, following Ukrainian attacks on Russian refineries and the potential for a widening of the Israel-Hamas war to more directly including Iran.

Nigeria Brass River and Qua Iboe traded close to $92 a barrel while Brent Crude at the time of writing traded at $89 per barrel. Nigeria Bonny Light also traded at $91.37 a barrel late Tuesday.

Nigeria recorded extra revenue of $13.71 per barrel at the current price of $91.67 per barrel, while the country’s 2024 budget was based on $77.96 per barrel and 1.78 million barrels per day.

Although efforts to combat oil theft have intensified, Africa’s largest economy needs to be able to fulfil its budgetary targets of 1.78 million barrels per day.

Additionally, with numerous refineries set to come online this year, worries regarding the supply of feedstock for the refineries have grown over the past month.

What you should know

After a drone strike by Ukraine on a second Russian refinery raised the possibility of shutting down even more of the nation’s processing capacity and reducing the production of gasoline and diesel fuel, prices shot up. Russia is one of the biggest and one of the top three producers of oil in the world.

• Investors are also worried that, having sworn payback, Iran’s retaliation against Israel for an attack on Monday that claimed the lives of high-ranking military officers may cause supply interruptions in the vital Middle East-producing region.
• Iran is the third-largest producer in the Organization of the Petroleum Exporting Countries (OPEC), supporting the Hamas militia in Gaza against Israel.
• Concerns over supplies were increased by the fact that according to an internal memo seen by Reuters, Mexico’s state energy corporation Pemex asked its trading section to halt up to 436,000 barrels of crude exports per day this month as it prepared to process domestic oil at the new Dos Bocas refinery.

More Insights

The United States is the largest oil consumer in the world, and early signs point to a decline in oil stockpiles there as well.

• On Tuesday, traders reported that data from the American Petroleum Institute showed that last week’s crude inventories had dropped by 2.3 million barrels.
• Nigerian oil, however, confronts fierce competition from American suppliers even though it sells at a premium who have pushed their way into the market previously controlled by Nigeria and other Organization of the Pezzxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxtroleum Exporting Countries (OPEC).
• In addition, US oil production is rising while OPEC and Russia have declined.

This change is most noticeable in India, a significant consumer of Nigerian crude oil, where Indian refiners are refusing to accept cargoes from tankers owned by the sanctioned Russian company Sovcomflot PJSC, leading to a move away from sanctioned Russian oil and toward US crude.

[Nairametrics]