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Edo Governor Godwin Obaseki‘s Special Adviser on Strategy, Performance and Project Monitoring, Mrs. Sarah Ajose-Adeogun, aka Madam Sarah, has resigned.
Ajose-Adeogun, a former Senior Manager with the Shell Petroleum Development Company of Nigeria Limited (SPDC), in a post on her Facebook page, said: “l came, l saw and l conquered,” confirming her resignation as an Adviser to Obaseki.
The resignation may not be unconnected with the battle of supremacy and survival of the fittest rocking the outgoing Obaseki-led government.
Ajose-Adeogun’s office was once shut by the Chief of Staff to Edo Governor, Osaigbovo Iyoha, because the ex-senior official of SPDC allegedly refused to yield her seat in a commercial flight to Obaseki.
Her resignation came barely one month after former Chief Press Secretary (CPS) to Obaseki, Andrew Okungbowa, also quit.
Obaseki whose second term ends on November 12, 2024, is at loggerheads with his Deputy, Comrade Philip Shaibu, over succession.
Shaibu is interested in succeeding Obaseki who is believed to be backing a Lagos-based lawyer, Asue Ighodalo.
The Governor is also engaged in a face-off with numerous members of PDP’s Legacy Coalition, led by the National Vice Chairman, Southsouth, of the party, Chief Dan Orbih, the immediate Edo Chairman of PDP, who declared Ighodalo won’t succeed Obaseki.
The Federal Inland Revenue Service (FIRS) executive chairman, Zack Adedeji, has disclosed that the government is developing a comprehensive tax reform that will lower the entire amount of taxes collected in the nation to a single digit under the administration of President Bola Tinubu.
Adedeji made this disclosure on Thursday during an appearance on Politics Today on Channels TV.
Naija News reports that he also reiterated that the education tax will serve as the primary funding source for the recently implemented student loan.
According to him, the government was focused on streamlining the country’s tax to a single digit.
He said, “Just a few days ago, Mr President approved the commencement and implementation of student loan, one of the major sources of income or sources of funding for this student loan is education taxes being paid by tax payers, so I do not see where they will say that you see an increase in income and you do not see an increase in services,” he said.
“We are coming up with a comprehensive tax reform that will reduce the total tax we collect as a nation to a single digit from these multiple taxes to only one digit kind of tax system that will want to focus on.”
The Presidency has replied to the 2023 presidential candidate of the Peoples Democratic Party (PDP), Atiku Abubakar, over the Nigerian National Petroleum Company Limited’s (NNPCL) $3.3 billion emergency crude repayment loan.
Naija News recalls that the repayment loan was secured on August 16, 2023, and was designed to bolster the naira and stabilize the foreign exchange market.
The transaction, arranged by the African Export-Import Bank, was not only intended to support the national currency but also to aid the Federal Government’s monetary and fiscal reforms.
Notably, three weeks ago, the Federal Government received $2.25 billion of the $3.3 billion foreign exchange facility from the bank.
However, in a statement on Thursday, Atiku called on President Bola Tinubu to provide a detailed account of the repayment loan, adding that the only available details were emerging from sources within the NNPCL.
He highlighted that the transaction is being facilitated by a Special Purpose Vehicle named Project Gazelle Funding Limited, which was incorporated in the Bahamas.
Reacting to Atiku’s query on Thursday, presidential aide, Otega Ogra said the Tinubu’s administration has taken the time to educate all Nigerians further on the loan at various times.
He said the loan also known as Project Gazelle, is a financing agreement secured by NNPC Limited to prepay future royalties and taxes to the federal government.
Ogra stated that NNPC Limited’s project is a forward-thinking financial strategy that aligns operational needs with broader economic goals by utilising future crude oil sales for immediate funding, enhancing liquidity, and contributing to Nigeria’s foreign exchange reserves.
He said the project showcases NNPC Limited’s operational autonomy and financial acumen while ensuring immediate liquidity, minimising the impact on future earnings, and potentially enhancing Nigeria’s credit rating.
Ogra noted that the repayments are strategically planned and tied to future oil sales, with conservative pricing in oil sales contracts mitigating the risks associated with oil price volatility.
The Katsina State Elders Forum has kicked against the planned decision to relocate some departments of the Central Bank of Nigeria (CBN) and crucial projects to Lagos State.
It also asked President Bola Tinubu to stop the scheduled relocation of the ongoing expansion project of the Umaru Musa Yar’adua International Airport in Nigeria’s best interest.
Speaking at a press conference held on Wednesday in the state capital, the Secretary of the Forum, Aliyu Mohammed, described the decision as unwarranted and unconstitutional.
Mohammed said President Tinubu risks losing the support of northern Nigeria unless the relocation of some CBN departments to Lagos is halted, adding that the move is a deliberate attempt to cripple the economy of the North.
He said: “The briefing is on recent unfortunate development brought up which we want the Federal Government to address.
“The intention of the Federal Government to move important projects from the Katsina Airport to Lagos, according to a letter we saw written by a contractor suggesting to the minister of aviation that the hanger project from the Katsina Airport should be moved to the south suggesting places like Enugu, Calabar or Lagos.
“This must be instigated by either the minister of aviation or one of his closest. They intend to do that for no disclosed reason. The reasons given to us were so clumsy. They mentioned things like unskilled labour, the distance between Lagos and Katsina, and lack of water, among other reasons.
“This project was awarded by the previous government in the year 2022 when the contractors moved to the site and started the job. They commenced work in earnest.
“It’s very surprising and unfortunate that the same contractor who initially agreed to do the job wrote a letter to the minister of aviation seeking for relocation of this very important project from Katsina to Lagos.
“We are calling on President Bola Ahmed Tinubu, the minister of aviation, and whoever is responsible that the Katsina Elders’ Forum is vehemently opposed to this relocation decision.
“We are not ready to accept it and we are warning the Federal Government never to temper with this all-important project. There is a University of Transportation located in Daura that could be very relevant to this all-important project in Katsina.
“Another area of concern is the movement of the Central Bank of Nigeria’s about 11 critical departments. This is a deliberate attempt to cripple the economy of the North. All these departments they intend to move out of Abuja will make it difficult for the North and Northerners to access the facilities or the services rendered by the bank.
“We are calling on President Tinubu to as a matter of urgency reverse the decision otherwise, the north definitely will not move again. They have set some reasons that are unattainable. It’s unwise for Tinubu to come today after the North elected him into power to make these decisions. He is going against the constitution of Nigeria.
“We are therefore warning him to reverse these unwarranted and unconstitutional decisions. Whoever is advising the President to make such decisions is an enemy of the country and is not interested in Nigeria’s development
“We are not ready to reelect him in 2027 once he continues with these decisions. Despite all the challenges of insecurity in the North, Tinubu is not making any effort to curb the insecurity. The Forum on behalf of Northern Nigeria and Nigerians in general want President Bola Ahmed Tinubu to revisit the decision and have a rethink
“He should rejig his cabinet by bringing patriotic Nigerians that will advise him to work in accordance with the interest of Nigerians.”
South-South leader, Edwin Clark has told President Bola Tinubu that the Minister of the Federal Capital Territory (FCT), Nyesom Wike is not ready to make peace with his predecessor, governor Siminalayi Fubara.
Clark insisted that Wike’s activities are clear indications that he is not ready for peace in Rivers State.
He shared his reservations via a statement in Abuja yesterday.
According to him, the nullification of the budget presented by Fubara shows that the crisis in the state is still ongoing.
The elder statesman lamented that while the Rivers governor has fulfilled his part of the 8-point pact issued by Tinubu, Wike has refused to do the same.
Clark wrote, “It will be recalled that Tinubu intervened in the crisis when he issued an ‘8-point pact’ to both parties which include: That the governor of Rivers State, Siminalaye Fubara and his allies should withdraw all court cases pertaining to the matter, even though this is against the 1999 Constitution and against popular opinion of Rivers people and indeed Nigerians, Governor Fubara and his associates, including the Speaker recognised by the court, Edison Ebie, have complied with this proclamation.
“The expectation is that the 26 decamped legislative members who had filed cases in court, would have also done same. But they refused, giving rise to the judgment delivered by Justice James Omotoso on January 22, 2024, stating amongst other things, the nullification of the 2024 Budget which was presented by Governor Fubara, passed and signed into law.
“Justice Omotoso said he based his judgment on the fact that the legislatures said there was no evidence of settlement of the matter before him.
“From the above, it shows clearly that Governor Fubara, obeyed Mr. President and carried out his directives, in violation of the 1999 Constitution ‘for the sake of peace,’ except that which he is currently precluded from doing by the courts. Even though majority of Nigerians were not happy with the terms of the settlement.
“Having done all these against the Constitution which Fubara, as Governor of Rivers State swore to uphold, Nyesom Wike is not seen, wittingly or unwittingly, by his latent or otherwise conduct, advancing peace in Rivers State.
“Let the truth be told to President Tinubu, Wike is not ready for any form of peace. Therefore, I call on the President, once again, to call him to order to allow the elected Governor Fubara, whom he Wike claimed he made to govern Rivers State, peacefully.
“However, I did not anticipate that Mr. President would proclaim an 8-point agreement that appears to be one-sided and unconstitutional, when I appealed to him to call Wike to order.”
Chief Whip of the Senate, Mohammed Ali Ndume, has replied Kogi West senator, Sunday Karimi, following the latter’s remarks on Wednesday.
Ndume said it is unpatriotic not to tell President Bola Tinubu the truth about the happenings in the country.
This is coming just as a former presidential spokesman, Dr Doyin Okupe has backtracked his comment on Ndume, stating that the ranking lawmaker was misunderstood.
The Central Bank of Nigeria (CBN) alongside the Federal Airports Authority of Nigeria (FAAN) had earlier announced it would be taking some critical departments to Lagos on the claims that they wanted to decongest its offices in Abuja.
Specifically, the CBN said the departments for relocation are the Banking Supervision, Other Financial Institutions Supervision, Consumer Protection Department, Payment System Management Department, and Financial Policy Regulations Department.
The plans by CBN and FAAN generated condemnations from different quarters, especially from the Arewa Consultative Forum (ACF).
But, speaking on a live television programme on Tuesday, Ndume, who represents Borno South at the Senate, said President Tinubu was being ill-advised by “Lagos boys” in the corridors of power.
“All these Lagos boys who are thinking that Lagos is Nigeria are just misinforming and advising the President wrongly,” Ndume had stated.
While former presidential spokesman Doyin Okupe, and Ndume’s colleague, Sunday Karimi earlier disassociated themselves from the Borno lawmaker’s comment, Okupe backtracked, stating that Ndume means well for the country.
Karimi said Ndume didn’t speak on behalf of the Northern senators, but Okupe was quick to state that he was impressed with the disposition, candour and loyalty of Ndume to his party and Mr. President.
But, speaking in response to Karimi’s comment, Ndume said he did not speak on behalf of the Northern senators or the Senate, but as a Northerner in support of the majority of Northerners and some Nigerians who are against the action of the CBN Governor, Olayemi Cardoso, and the Minister of Aviation, Festus Keyamo.
“With all due respect, I did not speak on behalf of the Northern Senators, or the Senate but as a Northerner in support of the majority of Northerners and some Nigerians who are against the action of CBN Governor and the Minister of Aviation,” Ndume said while quoting a former US President who said it is unpatriotic not to tell the truth, he said: “A famous former American President said ‘Patriotism means to stand by the country. It does not mean to stand by the president or any other public official, save exactly to the degree in which he himself stands by the country.
“It is patriotic to support him insofar as he efficiently serves the country. It is unpatriotic not to oppose him to the exact extent that by inefficiency or otherwise, he fails in his duty to stand by the country.
“In either event, it is unpatriotic not to tell the truth, whether about the president or anyone else,” Ndume said.
While quoting Theodore Roosevelt, Ndume added another quotation by the same great American President that: “To announce that there must be no criticism of the President, or that we are to stand by the President, right or wrong, is not only unpatriotic and servile, but is morally treasonable to the American public.”
In his official X account, @doyinokupe, Okupe said he spoke with Ndume for about 30 minutes and was impressed by his sense of reasoning.
“Sen Ndume @Malindume called me & we spoke candidly 4 more than 30mins. I am impressed by his disposition, candor and loyalty to his party and Mr President.
“He means well but obviously there are lapses in the Presidency that have not engendered better consultations on policies. He has my respect,” Okupe tweeted of Ndume
NBA Seeks Nullification Of NYSC Discharge Certificates Awarded To Minister Musawa & Kenny Ogungbe
AdminSues NYSC Over Youth Service Violations
The Nigerian Bar Association Section on Public Interest and Development Law (NBA-SPIDEL) has filed a lawsuit against the National Youth Service Corps (NYSC), Minister of Art, Culture and the Creative Economy, Hannatu Musawa and Music producer, television presenter and music executive Kenny Ogungbe for alleged violations of the NYSC Act’s provisions.
In the suit number FHC/ABJ/05/90/2024 filed at the Federal High Court in Abuja on Thursday, NBA-SPIDEL is seeking determinations on whether Musawa and Ogungbe can voluntarily decide when to undergo the mandatory National Youth Service after qualifying..
They also queried the validity of the discharge certificates awarded to both defendants by the NYSC.
The plaintiffs allege that Musawa and Ogungbe failed to participate in the mandatory one year national youth service after graduating from university as required by the NYSC Act. They claim that Musawa enrolled in NYSC in 2023 but did not complete the service year, while Ogungbe only enrolled over 30 years after obtaining his bachelor’s degree.
The lawsuit argues that their actions violate sections of the NYSC Act related to the requirement for Nigerian graduates under the age of 30 to undergo national service. It requests the court to nullify Musawa and Ogungbe’s NYSC discharge certificates, bar Musawa from public office, and compel the Federal Government to prosecute the defendants.
In addition to Musawa and Ogungbe, the National Youth Service Corps and the Federal Government of Nigeria were also named as defendants for allegedly enabling or failing to prevent the violations.
The plaintiffs stated the lawsuit aims to promote the objectives of the NYSC scheme related to instilling discipline and national ethos in Nigerian youth. They expressed concern that the prominent public figures could set a bad precedent by flouting the rules without consequence.
Further relief sought includes compelling the office of the Attorney General of the Federation to prosecute the defendants for failure to make themselves available for service immediately upon graduation as stipulated in the Act.
This comes after NBA-SPIDEL in December 2023 issued a pre-action notice to the NYSC demanding the prosecution of Musawa and Ogungbe over the same youth service provision infringements. A subsequent meeting with the NYSC Director-General did not convince the legal body to back down.
Speaking on the lawsuit, NBA-SPIDEL’s Publicity Secretary Sadiya Saleh reiterated that Musawa and Ogungbe’s delayed participation till ages above the requisite 30-year age limit was unlawful. She added that their service year and discharge certificates were thus invalid and void.
The court will determine whether the allegations constitute violations of the NYSC Act warranting the requested remedies. However, the case has already ignited public debate regarding compliance with the mandatory national service scheme by high-profile individuals.
The National Chairman of the All Progressives Congress, Dr Abdullahi Ganduje, has said that the door of the party is open for Governor Abba Yusuf of Kano State to join the party.
Ganduje gave the offer on Thursday while addressing stakeholders of the party shortly after their meeting in Kano.
“I am calling on Governor Yusuf along with his members from the NNPP to defect to the ruling APC at the national level to ensure massive political growth of the state,” he said.
According to him, the party is also working hard to ensure more members of the National Assembly from Kano State and others from other political parties join hands with the progressives as the doors of the party remain open for all.
Ganduje added, “We will provide an enabling environment for all defectors for the overall political growth of our party, state and the country at large.
“I want to assure the good people of Kano State that the Federal Government will continue to initiate policies and programmes that will enhance the well-being of the people.
“I also want to assure you that there is a move for other Governors from various political parties to join our party.
“Very soon some Governors and members of the National Assembly from other political parties will also join the APC.”
According to Ganduje, the Kano state chapter of the party had accepted the verdict of the Supreme Court judgment in good faith and saluted President Tinubu for his love for the party.
He said the party would create an avenue that would unite its members and give room for more people willing to join the party.
He also noted that stakeholders of the party in the state had expressed appreciation to President Bola Tinubu for his support and love for Kano.
According to him, the stakeholders meeting had resolved that as a progressive and the largest political party in Africa, and in line with the initiative, the door of APC in Kano, remains open for hundreds of new members willing to join.
”The door of the APC is open to wooing new members to the party across the country and in diaspora at group or individual level, because of the good governance and sound promises of the party.
“So, to enhance unity, progress and development of Kano state, the stakeholders’ meeting expressed commitment to continue to pursue the path of dialogue with individuals, associations or political parties ready to join the APC,” he said.
He said that the meeting had resolved to convene an elaborate stakeholders’ meeting in Kano to strategise on how to unite the party for enhanced development further.
The APC National chairman appreciated members of the party for their maturity, support and patience during the period of the legal battle and called on them to remain calm and await the outcome of the expanded stakeholders meeting.
Among those who attended the meeting were National Assembly members and top members of the party from the state.
Comrade Joe Ajaero, the National President of the National Labour Congress (NLC), has issued a scathing critique of the current administration’s economic policies, decrying the impact of recent reforms on the average Nigerian citizen.
Speaking at the 21st Edition of the Daily Trust Dialogue organized by Media Trust Limited in Abuja on Thursday, Ajaero highlighted the hardships faced by the populace, notably pointing to challenges arising from the removal of fuel subsidies, privatization failings, and rampant inflation.
Other speakers at the event included the Minister of Information and National Orientation, Mohammed Idris Malagi; former Minister of Finance and National Planning, Shamsudeen Usman; the immediate past Director General of the Abuja Chamber of Commerce and Industry (ACCI), Victoria Akai; former Chairman of Nigeria’s Independent National Electoral Commission (INEC), Prof. Attahiru Jega, among others.
The 21st Edition of the Daily Trust Dialogue provided a platform for diverse perspectives on President Bola Ahmed Tinubu’s economic reforms. While some speakers expressed concerns about the impact on the common people, others presented a more optimistic view of economic projections.
However, the call for accountability, responsible reporting, and continuous constructive engagement emerged as common threads in the discussions.
Ajaero started his address by expressing discontent with the influence of international bodies on local economic decisions, citing the NLC’s recent confrontations with the World Bank.
“The directives to further increase prices of petroleum products originated from the World Bank and IMF. Two months ago, we had a tough time engaging with the World Bank, which was urging an increase in petroleum product prices,” he said.
Reflecting on the government’s attempts at privatization, Ajaero criticized the evident failure of such strategies, highlighting the sale of assets worth over $5 billion for only $1 billion.
He used the power sector as a key example of this failure, noting the high cost of privatization followed by an alarming N1.8 trillion annual subsidy.
“If you read yesterday’s newspapers, you would have seen that five power companies, previously valued at over $5 billion, are now set to be sold for just $1 billion. Despite past projections of a N1.8 trillion naira annual subsidy, these policies have not succeeded,” Ajaero added.
He drew an analogy, stating, “It’s like selling your house for N2 million and then giving the new owner N10 million for repairs. Such a political economy is unheard of elsewhere.”
Addressing an audience of key policymakers and stakeholders, Ajaero outlined the broader economic effects, such as the severe devaluation of the naira and the subsequent rise in the cost of imported goods.
He vividly described the impact of subsidy removal, with fuel prices soaring from N187 to around N700—a burden disproportionately shouldered by ordinary citizens.
The NLC President emphasized the predicament of everyday Nigerians, whose wages have languished behind the escalating costs.
“We are witnessing public disasters that yield private gains: a few individuals profit while the public suffers. The real losers are those who have seen the price of imported goods jump from N200 to N700. They are the ones whose transportation costs have quadrupled without any corresponding increase in their wages. They suffer from unimplemented wage increases. Ultimately, the common people are the losers, and economic policies have done little to alleviate their distress,” he explained.
In his impassioned speech, Ajaero also questioned the rationale behind non-justiciable policies that fail to serve the public good, as advocated by Chapter Two of the 1999 Constitution.
He argued that such policies only deepen the national debt, burdening future generations.
The NLC President criticized the government’s approach to economic growth, questioning the effectiveness of subsidies and palliatives and pointing out the adverse effects of poor policies on the populace.
“Negative publicity is not the real issue; the negative impact of poor policies is. As a professional with a media background, I can confirm that we report what we see. The harsh reality is that many Nigerians live on less than one dollar per day, and the situation has worsened after the subsidy removal. Locally produced goods have become exorbitantly expensive,” he clarified.
Ajaero pointed to the power sector as a stark example of a failed privatization effort and the inability of the private sector to effectively manage the power supply, leading to a ‘comatose state’ of the sector.
He urged the government to adopt a conscious master plan that benefits all Nigerians, rather than a select few.
Drawing attention to the recent decision by the central bank to charge a fee for cash withdrawals, Ajaero predicted that such policies would only worsen the economic crunch faced by Nigerians.
He called for a policy reversal, emphasizing the need for the government to reassess its strategies and consider the wider socio-economic implications of such measures on the populace.
Edo State Deputy Governor and governorship aspirant of the Peoples Democratic Party in the 2024 governorship election in the state, Philip Shaibu, has expressed confidence that the state governor, Godwin Obaseki, will support him in his ambition of becoming the governor.
The Independent National Electoral Commission had fixed September 21, 2024, as the election date.
Shaibu had in November 2023 said nobody can stop him from getting the governorship ticket of the party.
The deputy governor said having been in politics for 30 years and working with Obaseki in the last seven years to improve the state, he was in the best position to succeed his principal.
He said, “I can assure you that I will secure the ticket and my name and the party will be on the ballot. Nothing will happen because my name will be there.
“My name will be sent to INEC and I will be the candidate for the party in the election because I don’t do things without checking. I have gone round and consulted and I have been assured.”
PUNCH online reports that Shaibu declared his interest in contesting the 2024 governorship election in November
While speaking on Channels Television’s Politics Today on Thursday, Shaibu expressed confidence in getting Obaseki’s support.
“I can bet you that Mr Godwin Obaseki, the governor of Edo State, my boss and senior brother will support me.
“He has said it at the secretariat where we had our stakeholders meeting that whoever wins, he will support and whoever that will win is nobody but Philip Shaibu,” he said.
When asked if Asue Ighodalo, another aspirant for the governorship ticket got Shaibu’s support, Shaibu simply responded, “He (Obaseki) has denied supporting Asue even when we know he is supporting him. But that is not an issue for me. I am a homeboy and I understand the politics of Edo state.
“As somebody who is experienced, I have an edge over him. He is coming with private sector experience. I am coming with both private sector and public sector experience.”
During his formal declaration, Shaibu had said, “Nobody can stop my ambition.”
The deputy governor promised to deliver practical governance if elected governor of the state in 2024.
Shaibu, who vowed to deliver practical governance said, “They (Edo people) have asked me to go and run and they said I am the one they see not just as a street boy but original own boy that can live there.
“I can assure you that by the grace of God, we will deliver practical governance.”
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The recent announcement by PZ Cussons Nigeria PLC regarding the offer made by its majority shareholder, PZ Cussons (Holdings) Limited (referred to as the “Core Shareholder”), to acquire all shares owned by other stakeholders of PZCN (referred to as the “Minority Shareholders”) and subsequently delist from the Nigerian Stock Exchange, has continued to generate attention within the financial sphere.
The move, seemingly driven by the depletion of the shareholders’ funds due to a significant loss and foreign exchange challenges, necessitates a closer examination of the intricate financial dynamics within PZ Cussons.
According to the PZCN Board, the offer is a response to the ongoing challenges faced by the company in securing foreign currencies to meet its trade obligations and settle outstanding debts.
Additionally, the Board highlights the considerable deterioration in the company’s net asset position, as elucidated in the Abridged Unaudited Report for Quarter 1 ended on 31 August 2023, published on 3 November 2023 as another reason for the decision.
The pivotal moment in PZ Cussons’ recent financial history was marked by a post-tax loss of about N24 billion in Q1 2024. This staggering loss was primarily attributed to a foreign exchange loss of about N27 billion.
Before the Q1 2024 setback, PZ Cussons maintained a more conservative debt structure. The debt-to-equity ratio stood at a moderate 50% as of the end of the 2023 financial year, reflecting a balanced mix of debt and equity financing.
However, the subsequent increase in the debt-to-equity ratio to 439% and the debt-to-asset ratio to 23% in Q1 2024 are indicative of the profound impact of the foreign exchange loss and elevated debt on the company’s capital structure.
The company’s decision to acquire minority shares at an increased offer price and subsequently delist from the exchange raises intriguing questions. Is this a desperate move prompted solely by the foreign exchange challenges faced by the company, or is it a strategic play in capital structure management?
While the foreign exchange woes are undeniable, and might have contributed to the decision to acquire minority shares, it may also be seen as a calculated effort to regain control over the company’s ownership structure. This move could offer a lifeline to shore up the eroded net asset position, currently standing at N9.724 billion after an 80% reduction.
With a negative retained earnings position of -N565.265 million, the acquisition of minority shares may be viewed as a strategic step to consolidate ownership and strengthen the company’s financial standing.
The decision to delist from the Nigerian Stock Exchange further adds a layer of complexity. Delisting can be perceived as a means to operate with more flexibility, away from the scrutiny of public markets, and allow the company to implement strategic changes without immediate market repercussions.
However, it’s crucial to acknowledge the potential impact on minority shareholders. The increased offer price to ₦23 per share, endorsed by the Board in consideration of the company’s challenges in obtaining foreign currencies and a deteriorated net asset position, raises questions about the fairness of the deal for minority shareholders.
In navigating these challenges, PZ Cussons could have explored alternative strategies. A rights issue, for instance, might have been a more transparent way to raise capital, albeit with potential dilution. This could have allowed the company to address its financial challenges while maintaining a balance between debt and equity.
As the company proceeds with its acquisition and delisting plans, stakeholders, including minority shareholders, will keenly observe the outcomes.
Transparent communication from the management regarding the rationale behind these decisions and their anticipated impact will be essential in maintaining trust.
AS PZ Cussons grapples with the aftermath of a substantial foreign exchange loss and charts a course toward financial recovery, whether the company’s moves are driven primarily by FX challenges or represent a strategic manoeuvre in capital structure management remains a question that only time and unfolding events will answer.
[Nairametrics]
Former vice president Atiku Abubakar has asked President Bola Tinubu to tell Nigerians what has happened to the $3.3 billion emergency crude repayment loan secured by the federal government last year through the Nigerian National Petroleum Company Limited (NNPCL) to support the Naira and stabilise the foreign exchange market.
Atiku in a statement said it was curious that the federal government continues to keep mum about it, noting that the only information on the mega deal is coming from unofficial NNPC sources.
The former vice president however posed some questions thus “ Has the Federal Government accessed the loan? Is the loan in the government’s borrowing plan as approved by the National Assembly? Who are the parties to the loan, and what specific roles are they expected to play?”
He also asked “What are the conditions to the loan, including tenor, repayment terms, the collateral, and the interest rate? And, lastly, why register an SPV in the Bahamas knowing the recent scandal of the country’s notoriety for warehousing unclean assets?”
Atiku recalled that the Tinubu-led federal government, precisely on August 16, 2023 through the Nigerian National Petroleum Company (NNPC) secured a $3.3 billion emergency crude repayment loan, which according to the NNPC, was to help give support to the Naira and stabilize the Foreign Exchange market.
He however said, “The curious thing about this transaction is that up till now, the Federal Government continues to keep mum about it, and the only information available to the public on the mega deal is coming only through unofficial sources from the NNPC.”
The former vice president, who said the deal is supposed to be a crude-for-cash loan arranged by the African Export-Import Bank, added that according to information available to him, a Special Purpose Vehicle called Project Gazelle Funding Limited is driving the deal, and it was incorporated in the Bahamas.
“The SPV is the borrower while the NNPC is the sponsor, with an agreement to pay with crude oil to the SPV in order to liquidate the loan at an interest rate that is a little over 12 percent.
“What is even more confounding about this deal is why the Federal Government would register a company in the Bahamas, knowing full well the recent scandal of the Paradise Papers that involved that country.
“Curiously also, Nigeria’s current Barrels Produced Daily (BPD) is 1.38 million, and according to the Project Gazelle deal, Nigeria is to supply 90,000 Barrels of its daily production, starting from 2024 till it is up to 164.25 million barrels for the repayment of the loan.
“Now, this is where the details get disturbing because Nigeria’s benchmark for the sale of crude per barrel in 2024 is $77.96. A simple multiplication of that figure by 164.25 will give us a whooping $12 billion.
“It is on this note that we are calling
on the Federal Government to speak up on this shady deal.”
He added that it is inconceivable that the federal government will lead the country to take a loan of $3.3 billion with an interest rate that is not more than 12 percent, but with estimated repayment amounting to $12 billion.
“That is a humongous differential of about $7b between what is in the details of the deal on paper and what indeed is the reality.
“There are questions to be answered on the integrity of this deal, and we earnestly request the federal government to talk directly on these cloudy details behind the deal,” he said.
A former governor of Edo State, Prof. Oserhemen A. Osunbor, has asked the National Chairman of the All Progressives Congress (APC), Dr Abdullahi Umar Ganduje, and the National Working Committee (NWC) members to be wary of mistakes that pushed the party out of power in the state in 2020.
Osunbor made the appeal on Thursday during an interview with newsmen at the APC national secretariat in Abuja, shortly after obtaining his expression of interest and nomination forms to contest the party’s ticket ahead of the September 21 governorship election in the state.
He urged the top echelon of the APC to conduct proper primaries, devoid of undue influence and manipulations.
Why I join gov’ship race – Shaibu
Meanwhile, the deputy governor of Edo State, Philip Shaibu, has said he is contesting the state’s governorship to prevent some people from “hijacking the state”.
He stated this yesterday while addressing party leaders and stakeholders at the party headquarters after the submission of his nomination form to contest the Edo governorship election.
Shaibu said, “I am contesting for governor today, not because Philip Shaibu has inordinate ambition but my ambition is to save Edo State from businessmen that now want to take over the state. We have already dealt with the issue of godfatherism but it is rearing its ugly head again.”
[DailyTrust]
Lagos State is set to venture into airline business, Governor Babajide Sanwo-Olu hinted yesterday.
The state, he said, would soon begin the construction of its own airport in Lekki, a Lagos suburb which is fast-developing on the Epe axis.
Sanwo-Olu spoke during the Lagos West Senatorial District Town Hall meeting at the Balmoral Convention Centre, Ikeja, where he presented the scorecard of his administration to Lagosians.
He presented a catalogue of achievements in the West of Lagos.
The governor also attributed the delay in the kick-off of the ambitions 38-kilometre Fourth Mainland Bridge to funding challenges.
The bridge will connect Lagos Island across the Lagoon from Langbasa (Lekki) to Baiyeku, Itamaga in Ikorodu.
The 2 x 4 lane carriageway, with permission for Bus Rapid Transit Lane and future road contraction was designed to relieve traffic on the three bridges connecting Lagos Island to the Mainland.
They are: Eko Bridge, Cater Bridge and the Third Mailand Bridge.
A one-time permanent secretary and retired Auditor- General for Local Government in the state, Pa Muhammed Hassan, believed Lagos was ripe to own an airline. He backed the governor’s proposal.
According to Sanwo-Olu, the airline business plan had been in the pipeline for months, with the state now finalising the financing model.
“What is being considered is the Federal Government’s approval and operational contingency for the airline,” the governor said.
At the meeting, Sanwo-Olu and his deputy, Dr. Obafemi Hamzat, took feedback from residents, who posed questions.
The governor noted that the input from the public was necessary to guide his government’s decision on planned programmes and interventions before their implementation.
He pointed out that his administration had completed and opened 42 new roads projects and two flyovers in the district, with the combined length of the infrastructure spanning over 72 kilometres.
Saying that the last four and half years had seen Lagos taking a leap forward in its socio-economic and development trajectory, the governor said he remained resolute in doubling his efforts to keep the state on the sustainable growth path as his second term progresses.
The event was attended by members of the Governance Advisory Council (GAC), political, religious, business leaders and traditional rulers. Also there were members of the state executive council.
Some of those who spoke include: Executive Secretary of the Nigerian Christian Pilgrims Commission (NCPC) Bishop Stephen Adegbite, a child disability advocate, Mrs. Mathilda Otitoju, community leaders, among others.
The governor said: “Over the last five months, Mr. Deputy Governor and I have been working to put a concise plan together for the establishment of an airline, but we did not make the plan open because of the need to get adequate knowledge about the operational procedures of airlines. The business plan is viable and there is no issue about financing. The conversation has gone to an advanced stage but we need to get the proper information on operations before we go ahead to implement the plan.
“In Lagos West Senatorial District, infrastructure development has been our priority since we came in. Over the last four years, we have completed over 70 kilometres of new roads and over two kilometres of bridges.
“These include Pen-Cinema Bridge, Ikeja Flyover, and over 42 roads we have completed in Alimosho, Ifako, Agege, Ikeja, Mushin, Amuwo Odofin and Badagry. We also have over 30 ongoing road projects which are at various stages of completion within this district.”
The governor said the senatorial district was also the major beneficiary of the intra-city railway development projects of his administration, with Lagos West hosting major passenger hubs of Blue Line and Red Line trains.
He said the new General Hospital being constructed in Ojo axis has reached an advanced stage, adding that its completion would boost access to health care in the district.
To further enhance security and safety in Lagos, Sanwo-Olu said his administration would be releasing additional patrol vehicles and work gadgets to raise surveillance and capacity of security agencies to respond to emerging threats.
He said: “We are in talks with you, the citizens, today because we believe the government does not know it all. The feedback and inputs we are taking away from here will help us to cater for your needs and wellbeing better.
“We will strive to make it easier for you to be law-abiding. It is not enough to say the laws must be obeyed, we must also ensure that the laws are clear, fair and just.
“When people break the law and don’t do the right thing, they make governance a lot more difficult for us. We must discharge our civic responsibility and fulfil our obligations as citizens.
“When we do this, it reduces the cost of governance and saves resources that will enable us do a lot more. While we appreciate your suggestions, we are also encouraging you to ensure that all citizens do the right thing at all times.”
The Commissioner for Information and Strategy, Mr. Gbenga Omotoso, likened the town hall parley to the annual general meeting, which offers stakeholders the opportunity to discuss with the leadership.
Omotoso noted that the move was to engender an all-inclusive government in which citizens would have an input.
“The conversation continues with the citizens on the Lagos project. Today, Lagos West Senatorial District leads the way; other districts will take their turns of the Town Hall meeting where they will have unfettered discussions with the Governor,” Omotoso said.
[TheNation]