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Customs Seizes Smuggled Codeine Worth N11.2bn

Mohammed Shosanya

The Nigeria Customs Area 2 Command, Onne in Rivers State,says its operatives have intercepted seven 40 feet containers ladened with smuggled codeine syrup worth over N11 billion.

Area Controller of Area 2 Command, Mohammed Babandede, made the disclosure while displaying the intercepted items to pressmen in Port on Thursday.

He said the seizure was achieved with the synergy of Nigerian Drug Law Enforcement Agency (NDLEA) and other sister security agencies.

He also said the confiscation of the hard drugs was in tandem with the directive of the Comptroller of Customs,Adewale Adeniyi, to bring smuggling at the ports to a standstill.

Babandede said:“In line with the Comptroller General of Customs’ policy thrust of collaboration and consolidation, the Command on receipt of credible intelligence on some 40 feet containers sprang into action and in collaboration with the Nigeria Drug Law Enforcement Agency, NDLEA, Onne Port, these containers were identified, positioned and jointly examined.

“A total of seven seized containers containing 1,054, 400 bottles of different cough syrup codeine (100ml), 9,100 pieces of Chilly Cutter, 3,175,000 tablets of Hyergra tablets (200mg) and 1,300,000 tablets of Really Extra Diclofenac Pain Relief tablets (50mg) were seized.

“The above seizures is estimated at eleven billion,two Hundred million naira (N11,200,000, 000) which represents a huge loss on the part of thode involved despite the fact of a jail term that awaits any of them who will be arrested as a result of further investigation,” he added.

He expressed regrets that some Nigerians were adamant on undermining the security of the country by testing the resolve of security agencies.

He warned that the Command under his watch would not tolerate any compromise in the quest of safeguarding the economy and security of the nation.

Babandede further disclosed that the items siezed would be handed over to the relevant agencies for further investigation.

Announcing the revenue generated by the service, the Comptroller said the Command raised over N360 billion in six months translating to 50.5 percent of the annual target of 2024.

“In the area of revenue, the Command in the first half of the year generated a total of Three Hundred Billion , Ninety-Four Million, Three Hundred and Sixty-Seven Thousand, One Hundred and Twenty Four Naira and Fifty Eight Kobo (N312, 094, 367,124.58) which translates to 50.5 percent of the annual target given to the Command.

“As at this morning, the Command has generated Forty-Eight Billion, Fifty Six Million, Eight Hundred and Six Thousand, Six Hundred and Ninety Two Naira (48,056,806,692.00) in the month of July and we still have five working days left in the month,” he said.

Babandede noted that the Command would not rest on its oars, stressing that it would continue to increase the revenue profile while prioritising public health and safety.

admin by — July 27, 2024 in Business 0
How Continuous Hike In Monetary Policy Rate Will Collapse Manufacturing Sector-MAN

Mohammed Shosanya

The Manufacturers Association of Nigeria, MAN, has expressed disgust over the continuous increase in the country’s Monetary Policy Rate, saying the development will collapse manufacturing sector.

Segun Ajayi-Kadir,Director General of MAN,in a statement on Wednesday,said the development will escalate production costs and consequently the prices of finished goods, with consequential effect on unemployment and social instability. It will further compound the prevailing low consumer demand, capacity utilization and profitability.

According to him,it will stifle capacity to make new and further investments, innovation and curtail opportunities for the growth.

He said,the development will constrained the capacity of the sector to compete effectively in regional and global markets, and if unchecked, may trigger critical distress of more manufacturing concerns.

He also said the hike in interest rate,will constrain reinvestment for expansion and introduction of new brands, as significant portion of revenue of manufacturing concerns is directed towards interest payments.

It will further restrain access to capital, judging from the fact that only 16% of total commercial bank credit was disbursed to the manufacturing sector in the first quarter of the year.

He said,it will reduce the flow of investments into the sector and funds required for retooling, upgrading facilities and procurement of new technologies.

“It is noteworthy to state that the worrisome trend occasioned by increase in cost of borrowing is corroborated by the report of NBS, to the effect that manufacturing investment declined significantly in the second quarter of the year.

“This drop underscores the critical link between domestic investment confidence and foreign investor sentiment. In addition, the share of manufactured exports in non-oil exports also declined from 21.4% in Q4 2023 to 15.1% in Q1 2024”

admin by — July 24, 2024 in Business 0
CBN Hikes Monetary Policy Rate To 26.75%

Mohammed Shosanya
The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) at its 296th meeting Raised the Monetary Policy Rate (MPR) by 50 basis points to 26.75 per cent from 26.25 per cent.

According to a communique issued after the meeting by the Central Bank of Nigeria (CBN), the Committee also adjusted the asymmetric corridor around the MPR to +500/-100 from +100/300 basis points, and retained the Cash Reserve Ratio of Deposit Money Banks at 45.00 per cent and Merchant Banks at 14 per cent, while retaining the Liquidity Ratio at 30.00 per cent.

The CBN Governor, Olayemi Cardoso, noted that the Committee’s decision was guided by some significant facts adding that it was mindful of the effect of rising prices on households and businesses and expressed its resolve to take necessary measures to bring inflation under control.

“It re-eemphasized its commitment to the Bank’s price stability mandate and remained optimistic that despite the June 2024 uptick in headline inflation, prices are expected to moderate in the near term. This is hinged on monetary policy gaining further traction, in addition to recent measures by the fiscal authority to address food inflation.

“In its consideration, the Committee noted the persistence of food inflation, which continues to undermine price stability. It was observed that while monetary policy has been moderating aggregate demand, rising food and energy costs continue to exert upward pressure on price development. The prevailing insecurity in food producing areas and high cost of transportation of farm produce are also contributing to this trend. Members were, therefore, not oblivious to the urgent benefit of addressing these challenges as it will offer a sustainable solution to the persistent pressure on food prices.

“Also noted in its consideration, is the increasing activities of middlemen who often finance smallholder farmers, aggregate, hoard and move farm produce across the border to neighbouring countries. The Committee suggested the need to put in check such activities in order to address the food supply deficit in the Nigerian market to moderate food prices. The MPC, therefore, resolved to sustain collaboration with the fiscal authority to ensure that inflationary pressure is subdued.

“In addition, the Committee expressed optimism with the recent stop gap measures by the Federal Government to bridge the food supply deficit. In particular, the 150-day duty free import window for food commodities (maize, husked brown rice, wheat and cowpeas), amongst others, will moderate domestic food prices.

“It is noteworthy that these measures will not lead to direct injection of liquidity into the economy as to cause further inflation.

“While the measure is a welcome development and may prove effective in the short run, it is expedient that it is implemented with a defined exit strategy to avert a possible rollback of the recent gains in domestic food production.

“To support these initiatives, the Bank is already engaging Development Finance institutions like the Bank of Industry (BOI) to ensure adequate support to industries with a focus on Small and Medium Scale Enterprises (SMEs).

“The MPC noted the narrowing spread between the various foreign exchange segments of the market, an indication of price discovery and improved market efficiency, thus reducing opportunities for arbitrage and speculation.

“The Committee noted that the increase in the level of external reserves would further build confidence for a more stable exchange rate and thus urged the Bank to explore available avenues to improve inflows, especially through diaspora remittances.

“In addition, Members noted the efforts of the Federal Government and private sector towards improving domestic refining capacity as this is expected to reduce foreign exchange currently being expended on the importation of refined petroleum products.

“The MPC noted the sustained resilience of the banking system, reflected in improvements of key financial soundness indicators (FSIs). Members further encouraged the continued need for close monitoring of the system, as the implementation of the recapitalization exercise progresses.

“To consolidate on the gains thus far achieved, the Committee re-emphasized its commitment to stay on course with its tightening cycle in view of the urgent need to address inflationary pressures.

“According to the National Bureau of Statistics, domestic headline inflation rose marginally to 34.19 per cent in June 2024 from 33.95 per cent in May 2024, driven by the continued rise in the year-on-year components of food and core inflation.

“Similarly, month-on-month headline inflation rose to 2.31 per cent in June 2024, from 2.14 per cent in the preceding month. The food and core components rose to 2.55 and 2.06 per cent in June 2024 from 2.28 and 2.01 per cent in May, respectively.

“Real GDP (year-on-year) grew by 2.98 per cent in the first quarter of 2024, compared with 3.46 per cent in the fourth quarter of 2023, driven by both the oil and non-oil sectors. Staff forecasts, however, suggest that the domestic economy will grow by 3.38 per cent in 2024, while the IMF has projected growth at 3.1 per cent in 2024.

“As of July 18, 2024, external reserves stood at US$37.05 billion, compared with US$34.70 billion as at end-June 2024. This represents eleven (11) months of import cover for goods and services.

“The global economy, according to the IMF, is forecast to grow at 3.2 and 3.3 per cent in 2024 and 2025, respectively. Headwinds to the global projection remain the tight global financial conditions and ongoing geopolitical tensions associated with the wars in Gaza and Ukraine, both of which have significant impact on commodity prices and the global supply chain.

“Global inflation is forecast to continue to decelerate marginally in 2024 but may stay above the long-run objectives of most advanced economy central banks”.

admin by — July 24, 2024 in Banking&Finance 0
Protect Dangote Refinery, Manufacturers Tell FG

Mohammed Shosanya

The Manufacturers Association of Nigeria,MAN,has emphasized the need for the Federal Government to protect and support Dangote Refinery to enable it thrive.

Its Director-General, Segun Ajayi-Kadir, expressed this in a statement on Tuesday, wherein he faulted the recent controversial remarks of the Nigerian Midstream and Downstream Petroleum Authority,on the diesel of Dangote Refinery.

The Dangote Refinery,he said, will play a significant role in reducing Nigeria’s dependence on imported petroleum products, reduce cost and energy poverty and significantly boost our energy sufficiency.

He said:”This is also a company in which Nigeria and Nigerians are shareholders. We should never encourage or promote a preference for imported products over local alternatives. This amounts to importing poverty and exporting prosperity.

“As you are aware, the manufacturing sector is beset with multifaceted challenges. They include: high cost of electricity, high cost of compliance with regulatory requirements, lack of access to financing, unfavorable foreign exchange and unfair competition from imported and smuggled products.

“It is therefore imperative that the Nigerian government takes proactive steps to address these binding constraints in order to improve the competitiveness of local industries and enhance their contribution to the Gross Domestic Product”.

He added that local investors are not only drivers of economic growth but also champions of national development.

The investors,he said,are the mirrors of the country’s national industrial aspirations and their wellbeing is the attraction for both local and foreign would-be investors.

According to him,there is hardly any major foreign investor that would be encouraged to invest in Nigeria by the recent unwarranted castigation of Dangote Refinery.

He maintained thatsupporting and protecting local investors like the Dangote Refinery, would be sending a clear signal to foreign investors to take advantage of the conducive environment and invest, thereby creating jobs and building a more prosperous future for Nigerians.

He called for caution from major actors, government agencies and regulators in the oil and gas sector of the economy over the recent debunked allegations of poor quality of diesel leveled against Dangote Refinery.

He said,it is expected that agencies of government, that provide regulatory oversight functions should promote an enabling business environment for local investments to thrive.

He added:”No regulatory agency should be seen to be casting a shadow over a home grown investment like the Dangote Refinery. The allegations of poor quality, monopolistic tendencies and non issuance of license have since been roundly debunked.

“There may then be the need to issue a clarification that absolves the Dangote Refinery of the negative perception generated by the news report”

He said that,local investors in Nigeria, particularly the Dangote Industries Limited (DIL) play a vital role in driving economic growth, they pay taxes, they create jobs and foster development within the country.

admin by — July 24, 2024 in Business 0
NIMASA Faults 10% Freight Levy Payment To NEPC

Mohammed Shosanya

The Nigerian Maritime Administration and Safety Agency, NIMASA,says there is no provision in its Act of 2007 for a 10% freight levy payable to the Nigerian Export Promotion Council (NEPC).

The agency disclosed this to the investigative hearing organised by the House of Representatives Joint Committee on Commerce, Maritime Safety, Education and Administration, and Legislative Compliance on Monday, chaired by Hon. Ahmed Munir.

The NEPC claims that its Act of 1992 provides for a 10% freight levy from the ‘Nigeria Maritime Agency,’ which according to NIMASA is non-existent, but rather the defunct National Maritime Authority, especially as the current NEPC Act predates the NIMASA Act of 2007. The NEPC also argued that NIMASA had previously disobeyed presidential directives on the matter.

The Director General of NIMASA, Dr Dayo Mobereola who waas represented by the Executive Director Finance and Administration, Hon. Chudi Offodile, told the joint committee that, “whereas the objective of establishing NEPC is quite laudable and in the interest of the country and its economy, we find it difficult to understand why the NEPC has persisted in trying to get successive governments to disobey the law. NIMASA will always obey lawful directives of the government, but in this case, the provisions of NEPC Act is inconsistent with the provisions of the NIMASA Act .

“NIMASA is a successor agency of the defunct National Maritime Authority, but did not inherit any liabilities of the defunct NMA in realtion to NEPC. After the merger of Joint Maritime Labour Industrial Council and the NMA to form NIMASA in 2007, we have transitional and transitory provisions contained in the NIMASA Act which proves that NIMASA did not inherit any liabilities or debt.

He added that, “NIMASA was created with a different set of objectives, with clear provisions of how and where to apply its revenue. The officials of NIMASA today were not the officials of the NMA and will not be the officials of NIMASA tomorrow. The consistent thread that binds everybody including members of the National Assembly is the full application of the law. Engaging NEPC on what or how much to pay to them suggests that NIMASA is in possession of surplus funds, and which doesn’t exist. It will only be possible for us to consider it if it exists in our law. But it doesn’t. We cannot alter the provisions of the NIMASA Act as staff of NIMASA”.

Offodile further argued that the NIMASA Act came into existence many years after the NEPC, and that if it was the intention of the legislature to insert that provision for 10% levy payment to NEPC, it would have been provided for.

On NEPC’s claim that NIMASA disobeyed directive from the presidency in previous administrations,the agency noted that it is just an agency under its parent Ministry and such directives can only come through its directorate in the ministry.

The agency believes that it never received such charge from the Ministry,probably because the ministry may have clarified with the government at the time that the directive was inconsistent with its law.

Speaking,the Executive Director/CEO of the Nigerin Export Promotion Council, Mrs Nonye Ayeni insisted that NIMASA was liable to make the supposed 10% freight levy to NEPC because it was stated in the NEPC Act.

The Deputy Chairman,House of Representatives Committee on Maritime Safety, Education and Administration, Hon. Uduak Odudoh who is also a member of the inquiring committee, stated that he had read the NIMASA Act and that there was no where in the Act that made mention of the NEPC.

He noted that if there are inconsistency in the laws, it is the Judiciary that would interpret and not the legislature.

He also appealed that both NIMASA and the NEPC should furnish the committee with their Acts, so they can be critically and fairly looked at.

The Chairman of the Joint Committee, Hon. Ahmed Munir urged both parties not to personalise the matter, because according to him, if the NEPC was in NIMASA’s position they would have the same argument as NIMASA and vice versa.

admin by — July 24, 2024 in Business 0
Minimum Wage:Manufacturers Seek Reversal Of Hike In Electricity Tariff

Mohammed Shosanya

The Manufacturers Association of Nigeria,MAN,is seeking reversal of increase in electricity tariffs or only 100% increase in electricity tariff for minimum of 20 hours of supply.

This,it said,will go a long way in onboarding the private sector in the new agreement on the minimum wage announced by the Federal Government recently.

Its Director -General,Segun Ajayi-Kadir,who said this in a statement,also emphasized the need for SMEs and MSMEs to be exempted from compliance due to their incapacity and prevailing operational challenges.

According to him,there should be Central Bank of Nigeria’s redemptions of all validly transacted outstanding forex forwards for companies in the productive sector.

He said there should be duty exemption on imported conversion kits and government subsidy on procurement of same,and a freeze on introduction of new taxes on businesses for the next five years

He reasoned that there should be fixed rate of N800 for the assessment of import duty on all production inputs,and a revisit of the recent Financial Reporting Council regulation to curtail its application to private businesses.

He also advocated discontinuation of the price verification portal as it is inimical to the smooth operation of businesses and the basis for setting it up no longer exist.

admin by — July 21, 2024 in Business 0
Court Orders Sale Of Arik Air’s Aircraft To Offset Debt

Babatunde Solanke

An Abuja High Court has issued a major ruling mandating the sale of aircraft, hangars, and other movable assets owned by Arik Air Limited.

Specifically,the court directed sale of the aircraft with the registration numbers B737-700/5N-MJF, B737-800/5N-MJQ, DASH8-Q400, and 5N-BKX.

This decision comes as a result of the airline’s substantial outstanding debts owed to Atlas Petroleum International Limited and other creditors.

Justice O. A. Adeniyi,gave the ruling within the context of a legal dispute where Atlas Petroleum International Limited and Prince Arthur Eze acted as the applicants.

Arik Air Limited was identified as the debtor in the case.

The court’s directive to sell off Arik Air’s assets aims to recover the funds owed to Atlas Petroleum International Limited and other creditors.

This legal action underscores the severity of the financial troubles facing Arik Air, once a leading airline in Nigeria.

The ex parte motion, which initiated the process, was filed on June 25, 2024.

An ex parte motion is a legal procedure where the case is presented and decided by the judge without requiring all parties to be present in court, often used in urgent situations.

admin by — July 21, 2024 in Aviation 0
NIMASA Confirms Fire Incident On Britania U Vessel,Says All Crew Members Rescued

Mohammed Shosanya

The Nigerian Maritime Administration and Safety Agency, (NIMASA),has disclosed that a fire Incident was reportedly recorded Friday on a drilling vessel platform, Britania U, at Ajakpa Field, (OML 90), 10.77 nautical miles South of Forcadoes Terminal in Delta State.

It added that all 19 crew members onboard the ill-fated Britania U drilling platform were successfully rescued from the Vessel.

Osagie Edward,Head,Public Relations NIMASA,who disclosed this in a statement, said the Agency collaborated with other responding Agencies and first responders to ensure the safe rescue and evacuation of the crew and other exposed persons during the incident.

“The Nigerian Maritime Administration and Safety Agency, NIMASA on Thursday, 18th July, 2024 received signals from the Regional Maritime Rescue Coordinating Center (RMRCC) Lagos, that Britania U, a drilling platform was under distress at Ajakpa Field, (OML 90), 10.77 nautical miles South of Forcadoes Terminal in Delta State, Nigeria

“All nineteen crew members onboard the ill-fated Britania U drilling platform were successfully rescued from the Vessel.

“The agency collaborated with other responding Agencies and first responders to ensure the safe rescue and evacuation of the crew and other exposed persons during the incident.

“The Director General of NIMASA, Dr Dayo Mobereola has set up an incident command center in the office of the Agency’s Executive Director Operations, to prepare an effective situation-based response plan against oil spillage or other incidents affecting the marine environment and safety of navigation.

“Furthermore, in line with its mandate under the Merchant Shipping Act 2007, the Agency’s Marine Accident Investigation Unit has launched an investigation into the direct and remote causes of this unfortunate mishap. The outcome of the investigation will be published and recommendations arising therefrom implemented” reads the statement in parts.

admin by — July 21, 2024 in Business 0
CBN Approves Forex Sales To BDCs For Invisible Transactions

Mohammed Shosanya

The Central Bank of Nigeria,has announced the approval of sales of Foreign Exchange to eligible Bureau De Change (BDCs) to meet the demand for invisible transactions.

A statement signed signed by A.A Mahdi, Acting. Director Trade & Exchange Department,disclosed that the sum of $20,000 is to be sold to each BDC at the rate of N1,450/$ (representing the lower band of the trading rate at NAFEM in the previous trading day).

The statement titled: ‘Sales of foreign exchange to BDCs to meet retail market demand for eligible invisible transactions’ reads:

“Following the on-going reforms in the foreign exchange market, with the objective of achieving an appropriate market determined exchange rate for the Naira, the Central Bank of Nigeria (CBN) has observed the continued distortions in the retail end of the market, which is feeding into the Parallel market and further widen the exchange rate premium.

“To this end, the CBN has approved the sales of FX to eligible Bureau De Change (BDCs) to meet the demand for invisible transactions.

“The sum of $20,000 is to be sold to each BDC at the rate of N1,450/$ (representing the lower band of the trading rate at NAFEM in the previous trading day).

“All BDCs are allowed to sell to eligible end-users at a margin NOT MORE THAN one point five percent (1.5 %) above the purchase rate from CBN.

“All eligible BDCs are directed to make the Naira payment to the listed CBN Naira Deposit Account Numbers and submit confirmation of payment with other necessary documentation for disbursement at the appropriate CBN branches — (Abuja, Awka, Kano and Lagos) Please be guid accordingly.”

admin by — July 21, 2024 in Banking&Finance 0
Access Bank Joins NGX To Unveil Impact Board

Mohammed Shosanya

Access Bank Plc,was one of the participants in the launch of the Nigerian Exchange Limited (NGX) Impact Board, a dedicated platform for listing sustainability instruments to integrate sustainability into the core of Nigeria’s capital market.

The event, marked by the attendance of high-profile stakeholders, including the Minister of Environment, Balarabe Lawal, and the Director-General of the Securities and Exchange Commission (SEC), Dr. Emomotimi Agama, underscored the critical need for sustainable financing in Nigeria, a statement said on Thursday.

Lawal emphasised the urgency of addressing environmental challenges, stating, “With issues like flooding, pollution, and deforestation, we urgently need funds to tackle them. This is why we are approaching the market.”

Speaking on the launch of the Impact Board, Gregory Jobome, Executive Director, Risk Management at Access Bank Plc, highlighted the Bank’s pioneering role in sustainable finance, noting, “As a leader in the issuance of corporate Green Bonds in Africa, Access Bank is committed to driving environmental sustainability and supporting projects that align with the Sustainable Development Goals (SDGs).

The NGX Impact Board is a significant step towards fostering a greener and more responsible investment landscape.”

The Director-General of the SEC, Dr. Emomotimi Agama, reaffirmed the commission’s support for sustainable finance, saying, “We are ready to bolster the sustainable finance market, aiming to deepen it with diverse instruments that contribute to Nigeria’s sustainable development.”

Dr. Umaru Kwairanga, Group Chairman of the Nigerian Exchange Group, expressed confidence the NGX’s capabilities, stating, “We possess the capacity, resources, and technology to raise the funds required by the Federal Ministry of Environment and the Nigerian economy to achieve the goals outlined in the Paris Agreement and the Sustainable Development Goals.”

Access Bank has consistently demonstrated leadership in climate finance across Africa, exemplifying a strong commitment to sustainable environmental practices and financial solutions.

In June 2018, the Bank supported the Green Bond Market Development Programme organised by FSD Africa, the Climate Bonds Initiative (CBI), and FMDQ Group PLC, aiming to develop a non-sovereign green bond market in Nigeria. This initiative sought to entrench sustainability principles into the Nigerian capital markets and support broader debt capital market reforms to facilitate the transition to a climate-resilient economy.

In April 2019, Access Bank issued its inaugural green bond, valued at NGN 15 billion (USD 41 million), becoming the first African corporate entity to receive CBI certification. The bond, listed on multiple exchanges including the FMDQ OTC Securities Exchange, Nigerian Stock Exchange, and Luxembourg Green Exchange, set the tone for the continent’s appetite for green capital.

Building on this success, the Bank issued USD 50 million Reg S Step-Up Green Notes in 2022 under its US$1.5 billion Global Medium-Term Note Programme, further solidifying its commitment to sustainable financing.

admin by — July 21, 2024 in Banking&Finance 0