Business

Doubts as Nigeria negotiates debt relief with World Bank, IMF

Published

4 years ago

October 14, 2022

Permanent Secretary, Ministry of Finance, Aliyu Ahmed (left); Minister of Finance, Zainab Ahmed, Governor, Central Bank of Nigeria, Godwin Emefiele, Deputy Governor, Economic Policy, Central Bank of Nigeria, Dr Kingsley Obiora and Director, Monetary Policy Central Bank of Nigeria, Dr Hassan Mahmud at the on-going yearly meetings of the International Monetary Fund and World Bank Group in Washington DC on Tuesday.

• Owoh: It’s fruitless, costly effort to further defraud citizens • Economy risks junk status, experts warn
• Country faces hard, painful choices, says Oxford economist, Dercon
• El-Rufai admits NNPC hasn’t brought N20,000 to nation’s treasury in 2022, says it’s a failure

Disclosure by the Minister of Finance, Budget and National Planning, Zainab Ahmed, to the effect that the Federal Government is exploring debt restructuring options as well as securitising the N22 trillion Central Bank of Nigeria (CBN)’s overdraft, may confirm what analysts have always feared, that the economy is finally on a fiscal cliff.

During a media interview on the sidelines of the ongoing World Bank and International Monetary Fund (IMF) Annual Meeting on Wednesday, Ahmed said FG had commenced discussions with the Bretton Wood institutions on debt restructuring for the country.

“It is a fact that Nigeria’s debt has increased over the last three to four years and this increase in debt was occasioned by the different kinds of exogenous shocks that the country faced, which are not unique to Nigeria. The situation we have by the 2023 projection is that we will need about 65 per cent of our revenues to service debt.

“Unfortunately, the cost of debt service is rising, because of the growing interest rate globally, which is resulting also in higher debt service costs. But our projection from the debt sustainability analysis is that Nigeria is able to cope with its debt service in 2022 as well as in 2023.

“We have been engaging financial institutions to look at the opportunity to restructure our debt to further stretch the debt service period to give us more fiscal relief. Those are some of the things we want to achieve in this meeting,” Ahmed said.

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The official disclosure came same day Managing Director of Augusto & Co, Olabode Augusto, raised the alarm that Nigeria was on “its road to Zimbabwe,” stressing that no other country is leveraging 10x spending as the country is currently doing. Leverage ratio is the level of debt in proportion to income or equity.

According to Augusto, crisis-ridden Sri Lanka and neighbouring Ghana, which is seeking debt restructuring, have a leverage ratio of 7x and 3x respectively.

While Ahmed is in Washington negotiating with development partners, one of the world’s most renowned economist and Director of the Centre for the Study of African Economies, University of Oxford, Prof. Stefan Dercon, is in Nigeria to speak on the state of the economy and the options before the managers.

On Wednesday, Dercon dismissed Nigeria as a country trapped in an ‘elite bargain’ crisis. He said hard choices would be able to rescue the economy but warned that even choices are limited in these hard times. He said any decision taken to achieve macroeconomic stability would be painful. The best time to act was about seven years ago, he said, advising the country to continue to manage the situation but show commitment to making hard decisions when things are more stable.

Reacting to the Minister’s disclosure, a professor of economics and debt management expert, Godwin Owoh, described the plan as another fruitless and costly ploy that would further drain public purse. He challenged government to provide more information about the consultants it is working with to help Nigeria evaluate the process.

“Who are the consultants they are working with? What are their terms of reference?” Owoh asked, saying there is little room for negotiating restructuring of the country’s debt. He said some of the debts are still shrouded in secrecy, adding that debt restructuring negotiation can take up to a year, which the current administration does not have the luxury of time to see the process through.

Chief Executive Officer of Dairy Hills Limited, Kelvin Emmanuel, warned that the move would downgrade the country’s economy to ‘junk status’, which would mean that the country will no longer be creditworthy in the international market.

Emmanuel also argued that converting the ways and means (W&M) facility into local debt stock is not only a violation of the Central Bank of Nigeria (CBN) Act, but would also increase the total debt stock by over 50 per cent and worsen the cost of servicing; as well as trigger a downgrade to a lower rating from the current not-too-good B2.

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“Seeking to raise $20 billion is proof that the government does not understand the impending doom the economy faces in the current trajectory,” he said.

President Muhammadu Buhari had at the United Nations General Assembly in September sought the assistance of world leaders in considering granting debt relief or outright cancellation to developing countries.

But the Deputy Managing Director of IMF, Kenji Okamura, has urged governments to be prudent and spend public resources for the greater need of the people.

He said: “We live in turbulent times, which highlights the importance of social contracts – an understanding of mutual expectations that bind citizens and their governments. To strengthen public trust and support social cohesion, governments need to invest in basic public services and deliver more inclusive policies. Fair and more transparent use of public resources is key.”

At a press conference, yesterday, the Managing Director of the Fund, Kristalina Georgieva, appealed to policymakers to act with a sense of urgency to bring down inflation and support vulnerable emerging markets.

The statement came shortly after the reading of the United States’ September Consumer Price Index (CPI), which showed a slight decline, but higher-than-expected inflation. The inflation rate slowed to 8.2 per cent from 8.3 per cent in August.

Georgieva said policymakers need to act now and act together in resolving inflation and safeguarding financial stability. On this note, she said, macro-prudential policies need to be vigilant and proactively address pockets of vulnerability.

“In this environment, we also must support vulnerable emerging markets and developing countries. It is tough for everybody, but it is even tougher for countries that are now being hit by a stronger dollar, high borrowing costs, and capital outflows, a triple blow that is particularly heavy for countries that are under a high level of debt.”

MEANWHILE, Kaduna State governor, Nasir Ahmed el-Rufai, has restated that the Nigerian National Petroleum Company Limited (NNPCL) is a big problem to Nigeria, and unless it is completely sold, it is capable of bringing the country to its knees.

In the build up to elections of 2015, el-Rufai and the All Progressives Congress (APC) promised to reorganize the corporation but a few months to the departure of this administration, the lamentation has not changed.

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The governor, who stated this while speaking on Channels Television special programme to mark the beginning of the yearly Kaduna Investment Summit (KADInvest 7.0), said the Federal Government has failed in the oil and gas business and should get out of the sector.

El-Rufai, while speaking to the theme of the summit, ‘Building a Resilient Economy,’ stated that since the beginning of this year, NNPCL has not brought even N20,000 to the Federation Account.

According to him, “NNPC is a big problem to Nigeria and unless we resolve it, it will bring Nigeria to its knees. It is a systemic and institutional problem, it is beyond one person.”

He said: “There is no reason why government should still be in the oil and gas sector. It should just get out, it has failed. By every measure it has failed.

“When I say the Federal Government should get out of oil and gas, people shouldn’t think it’s crazy, it’s not. We are living on taxes. It is PPT, royalties and income tax that is keeping this country going, because NNPCL claims that subsidy has taken all the oil revenues. I don’t believe that. So, the government should sell everything — the oil and gas sector. I have been making this point since 1999 when I was head of the Bureau of Public Enterprises (BPE). I have not changed my mind.

“The government should get out of whatever is left of electricity. Leave it to the private sector. Maintain the environment. The money will come. Nothing has changed for NNPC other than adding L to it for the limited. They are still taking our money. They are still declaring profits that we don’t see the dividends.”

Speaking further, el-Rufa’i said the sectors doing well in the country like entertainment, telecoms, fintech and others have no government involvement.

Guardian

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Forex scarcity bites harder, as Naira hits N742/$ at parallel market

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Naira Appreciates To N1,372/$ At Official FX Market

Published

12 hours ago

May 22, 2026

Trends Admin

Naira Appreciates To N1,372/$ At Official FX Market

The Nigerian naira recorded a slight appreciation against the United States dollar at the official foreign exchange market on Thursday, trading at N1,372.3079/$ at the Central Bank of Nigeria (CBN) official FX window.

Data published on the official trading platform of the Central Bank of Nigeria (CBN) showed that the naira traded at a Nigerian Foreign Exchange Market (NFEM) rate of N1,372.3079 per dollar and later closed at N1,372.7500/$.

The latest figure represents a marginal gain for the local currency compared to Wednesday’s trading rate of N1,373.3431/$, indicating that the naira appreciated by about N1 at the official market.

The development comes amid ongoing efforts by the CBN to stabilise the foreign exchange market through monetary tightening, improved dollar liquidity and sustained interventions targeted at reducing market volatility.

Financial analysts attributed the slight appreciation to improved forex supply within the official market, increased market confidence and recent reforms introduced by the apex bank to unify exchange rates and discourage speculative trading.

At the parallel market, commonly known as the black market, the naira also recorded minor movement against the dollar.

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According to data published by Aboki FX, the naira exchanged at N1,392/$ for buying and N1,397/$ for selling on Thursday, May 21, 2026.

Compared to the previous trading session on May 20, the black market buying rate improved by N2, while the selling rate remained unchanged.

Currency traders noted that although the gap between the official and parallel market rates still exists, the spread has narrowed slightly compared to previous months due to improving liquidity in the official market.

Economic experts said the CBN’s sustained interventions, including stricter oversight of Bureau De Change operators and policies aimed at attracting foreign portfolio inflows, are beginning to impact exchange rate stability.

The naira had faced intense pressure over the past year due to rising demand for foreign exchange, inflation, declining oil production and capital outflows.

However, analysts believe recent improvements in crude oil earnings, diaspora remittances and foreign investor confidence could help support the local currency if sustained.

Market observers also warned that inflationary pressure, import dependence and global economic uncertainties remain major risks capable of affecting long-term exchange rate stability.

Meanwhile, businesses, importers and investors continue to monitor movements in the FX market closely as the Federal Government and the CBN intensify efforts to strengthen the economy and improve confidence in the naira.

Naira Appreciates To N1,372/$ At Official FX Market

Business

Otedola Dumps Geregu Stake, Invests $100 Million In Dangote Refinery

Published

2 days ago

May 21, 2026

Trends Admin

Aliko Dangote, Femi Otedola

Otedola Dumps Geregu Stake, Invests $100 Million In Dangote Refinery

LAGOS — Chairman of First HoldCo, Femi Otedola, has announced plans to invest $100 million in the Dangote Petroleum Refinery, revealing that he sold his stake in Geregu Power Plc specifically to fund the acquisition ahead of the refinery’s planned Initial Public Offering (IPO) scheduled for September 2026.

Otedola made the disclosure on Wednesday after leading top executives of First HoldCo on a tour of the Dangote refinery and fertiliser complex located within the Lekki Free Trade Zone in Lagos. The delegation also visited major project sites, including the refinery’s jetty facility built to receive large vessels.

“On a personal note, I’ve appealed to him; I’ve been here with him 25 times. So, my compensation is that he’s going to allocate to me shares worth $100 million in the private placement,” Otedola said.

“That’s one of the reasons why I sold my stake in Geregu Plant — to invest my proceeds in the IPO of Dangote Refinery.”

Otedola’s planned investment comes amid massive investor interest in the refinery ahead of its public listing.

President of the Dangote Group, Aliko Dangote, disclosed that the company is targeting a private placement of approximately $2 billion and has already received requests from investors exceeding that figure.

“Right now, when we say we are going to do private placement, already we have people who have actually requested to buy, and we have requests of almost $2 billion,” Dangote told journalists.

“We are not selling after that, but we’ll see what we can allocate to them.”

According to Dangote, the private placement is part of the refinery’s broader IPO programme expected later this year.

Dangote confirmed that the refinery is expected to go public by September 2026.

“We are trying to make sure that by September, we’ll be out there in the market to sell the IPO,” he said.

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He explained that the IPO is primarily designed to encourage retail participation and allow ordinary Nigerians to own shares in one of Africa’s biggest industrial projects.

“The IPO is mainly retail because our target really is to get the larger part of society to buy. We want ordinary people to benefit from the upside,” Dangote stated.

The upcoming listing is expected to become the largest IPO in African history.

Bloomberg reported on May 12 that the Dangote Group is targeting a valuation of up to $50 billion for the refinery business ahead of the IPO.

In 2025, Dangote hinted that the company could sell up to a 10 percent stake in the refinery, which Bloomberg estimated could raise about $5 billion.

For comparison, the MTN Nigeria listing in 2019 — which raised approximately $876 million — remains the largest IPO previously recorded on the Nigerian Exchange.

The Dangote Refinery IPO is projected to be five to six times larger.

Dangote also disclosed plans for a cross-border listing to attract both domestic and international investors.

The initiative is aimed at enabling Africans across the continent to participate in financing Africa’s industrialisation.

The move has already attracted interest from major African institutional investors, including representatives from South Africa’s Public Investment Corporation and the Government Employees Pension Fund — Africa’s largest pension fund — who recently toured the refinery complex.

According to FirstCap’s Chief Executive Officer, the Dangote Group has appointed several advisory firms to oversee the IPO process, including Stanbic IBTC Capital Ltd., Vetiva Advisory Services Ltd., and FirstCap Ltd.

The IPO prospectus was reportedly submitted to the Securities and Exchange Commission (SEC) in April 2026 for regulatory review and approval.

Located in the Lekki Free Zone, Lagos, the Dangote Petroleum Refinery currently has a refining capacity of 650,000 barrels per day, making it Africa’s largest single-train refinery.

The facility commenced large-scale production of diesel, aviation fuel, and petrol in 2024 after years of construction and investments estimated at about $20 billion.

Dangote noted that the refinery would account for approximately 10 percent of the refining capacity of the entire United States.

“It is going to be the largest refinery ever on earth. It is not a small business,” he said.

Beyond the investment announcement, Otedola praised Dangote for what he described as his transformational impact on Nigeria and Africa’s economy.

“I have no doubt in my mind. I’ve seen what he has done in Africa. I’ve been to six countries to commission his cement plants. Very remarkable,” Otedola said.

He described Dangote as “a colossus, a genius, probably one of the greatest men that has come out of Africa, for delivering us out of economic slavery in Nigeria and by extension Africa.”

Otedola also said the visit formed part of First HoldCo’s leadership retreat as the bank pursues its ambition of becoming one of the largest financial institutions in Sub-Saharan Africa within the next five years.

One of the most notable aspects of the planned IPO is the proposed dividend structure.

Under the proposal, investors would purchase shares in Nigerian naira, while dividends would be paid in United States dollars.

The arrangement is expected to be backed by the refinery’s projected $6.4 billion annual petrochemical export revenue, which would provide the foreign exchange needed to support dollar-denominated dividend payments.

However, the structure still requires final approval from the SEC and the Central Bank of Nigeria (CBN).

The IPO has also been structured to attract Nigerian pension funds.

As of the end of 2025, Nigeria’s pension assets under management stood at approximately N22 trillion.

Analysts believe even a modest allocation from pension fund managers could significantly support what is projected to become the largest public offering in Nigeria’s history.

While the official IPO date is yet to be formally announced, Dangote said the company would continue working with advisers to finalise valuation details, complete the private placement process, and conclude all regulatory filings ahead of the September 2026 target.

The private placement — which includes Otedola’s $100 million investment — will allocate shares to select institutional and high-net-worth investors before the public offer opens to retail investors.

Dangote added that not all interested investors may receive allocations due to the overwhelming demand already approaching $2 billion.

For Otedola, the investment signals a strategic shift from power generation into refining and petrochemicals, reflecting growing confidence among Nigerian investors in large-scale industrial projects seen as central to Africa’s economic transformation.

Otedola Dumps Geregu Stake, Invests $100 Million In Dangote Refinery

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Forland, TSS Motors strengthen technical capacity with specialised truck training

Published

2 days ago

May 20, 2026

Trends Admin

An instructor taking the TSS Motors technical team through a practical session with a Forland light truck

Forland, TSS Motors strengthen technical capacity with specialised truck training

Forland Motors, one of the world’s leading manufacturers of light commercial trucks, has strengthened its partnership with local assembler and distributor, Transit Support Services Ltd (TSS), through a specialised three-day technical training programme aimed at boosting the competence of technicians handling the brand’s vehicles in Nigeria.

The programme was organised to equip the TSS technical team, comprising assembly and after-sales technicians, with in-depth knowledge of Forland light trucks, which are assembled and distributed in Nigeria by the company. The training covered assembly, installation, troubleshooting, and maintenance, with the goal of ensuring high service standards in both vehicle assembly and after-sales support.

The training, held at the TSS Motors Training Centre on Ikorodu Road in the Anthony area of Lagos, was facilitated by Forland instructors who arrived from China, alongside TSS technical personnel drawn from Lagos, Enugu, and Abuja.

Also in attendance were technical personnel from Yuchai, the major supplier of engines to Forland trucks. Yuchai is one of China’s largest manufacturers of powertrain solutions.

Forland training at TSS office in Lagos

Providing further insight into the programme, the Head of After-Sales Services at TSS, Mrs. Phebian Iwalokun, said the training focused on general maintenance, engine servicing, and preventive maintenance programmes.

According to her, the initiative was designed to ensure that TSS technicians are fully equipped to manage the growing number of Forland vehicles operating in Nigeria.

She added that continuous skill enhancement had become necessary as TSS prepares for an expansion in production capacity amid increasing demand for Forland trucks across the country.

“Forland trucks are currently gaining ground in Nigeria, with over 1,000 units already in operation, mainly among fast-moving consumer goods companies, logistics firms, and last-mile distribution operators,” Iwalokun stated.

A subsidiary of ABC Transport Plc, Transit Support Services assembles Forland trucks at its plant in Enugu and provides technical and after-sales support to customers nationwide.

Forland has continued to build a strong reputation globally as a successful commercial vehicle and light-truck brand, with its products performing strongly in several international markets.

ABC Transport Group founder, Mr. Frank Nneji (right), presented certificates to the participants