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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FG meets Dangote, oil marketers to ensure fair petrol prices

Published

4 hours ago

July 6, 2026

Trends Admin

FG meets Dangote, oil marketers to ensure fair petrol prices

The Federal Government has intensified efforts to ensure Nigerians benefit from falling global crude oil prices by convening a high-level meeting with Dangote Petroleum Refinery, petroleum marketers and regulators to develop a fair and transparent petrol pricing framework.

The stakeholders’ meeting, held on Monday at the headquarters of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) in Abuja, was attended by representatives of Dangote Refinery, the Federal Competition and Consumer Protection Commission (FCCPC), the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), the Independent Petroleum Marketers Association of Nigeria (IPMAN), the Major Energy Marketers Association of Nigeria (MEMAN), the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN), the Nigerian Association of Road Transport Owners (NARTO) and other key operators in the downstream petroleum sector.

The meeting was convened amid growing public concern that the recent decline in international crude oil prices has not been reflected in retail petrol prices across the country.

Speaking during the meeting, the Chief Executive Officer of the NMDPRA, Rabiu Umar, said the engagement was held on the directive of the Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, to promote cost-reflective, transparent and consumer-friendly pricing of Premium Motor Spirit (PMS) in Nigeria’s deregulated downstream petroleum market.

According to Umar, the regulator is not seeking to impose prices on operators but to facilitate constructive discussions that will balance business sustainability with consumer protection.

“Our objective is not to dictate prices but to collaborate with all stakeholders in finding practical solutions that strengthen the downstream petroleum sector,” he said.

He explained that discussions focused on market surveillance, inventory management, strengthening the National Strategic Stock (NSS) and improving transparency across the fuel supply chain to safeguard Nigeria’s energy security.

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Umar noted that international crude oil prices have declined in recent weeks following the easing of geopolitical tensions, reducing the cost of importing petroleum products and lowering replacement costs.

Despite this development, he observed that petrol pump prices have remained largely unchanged in many parts of the country.

According to him, the regulator considers it necessary to work with refiners, depot operators and marketers to identify the factors responsible for the gap between declining crude oil prices and persistent retail fuel prices.

He emphasised that while deregulation allows operators to recover legitimate business costs and make reasonable profits, consumers should also benefit whenever market conditions reduce the cost of supplying fuel.

Umar further stated that President Bola Tinubu’s administration has laid the foundation for a competitive, investment-driven petroleum industry, stressing that petrol price deregulation should not be used to justify market distortions, anti-competitive practices or unfair pricing.

Also speaking, Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, urged all stakeholders to work together in ensuring that fuel prices reflect prevailing market realities.

The minister noted that the prices of petrol and diesel directly influence transportation costs, food prices, manufacturing expenses and the overall cost of living, making fair pricing essential for economic stability.

He stressed that while government remains committed to deregulation, market liberalisation must also deliver tangible benefits to consumers through transparent pricing and healthy competition.

The meeting also examined measures to improve fuel availability nationwide, strengthen market monitoring and accelerate the implementation of the National Strategic Stock (NSS) as part of efforts to guarantee energy security and minimise supply disruptions.

The engagement follows recent concerns raised by the FCCPC, which warned against maintaining high pump prices based on old inventory purchased at previous costs when replacement costs have already declined.

Stakeholders agreed to sustain consultations aimed at building a more transparent and competitive downstream petroleum market that encourages investment while ensuring Nigerians enjoy the benefits of lower international crude oil prices whenever market conditions permit.

The Federal Government expressed optimism that continued collaboration among regulators, refiners and marketers would strengthen confidence in the deregulated petroleum sector and promote fair, competitive and sustainable petrol pricing across Nigeria.

FG meets Dangote, oil marketers to ensure fair petrol prices

Business

Elumelu to exit UBA board after 12 years, Nnorom takes over as chairman

Published

8 hours ago

July 6, 2026

Trends Admin

Elumelu to exit UBA board after 12 years as Emmanuel Nnorom takes over as chairman

Elumelu to exit UBA board after 12 years, Nnorom takes over as chairman

United Bank for Africa Plc has announced the retirement of its Group Chairman, Tony Elumelu, from the Board of Directors, bringing to an end a 12-year tenure that said to have strengthened the bank’s position as one of Africa’s leading financial institutions.

The bank disclosed on Monday that Elumelu would formally retire from the Board on August 21, 2026, in compliance with the Central Bank of Nigeria (CBN) Corporate Governance Guidelines, which prescribe a maximum tenure of 12 years for non-executive directors of commercial banks.

To ensure a seamless leadership transition, the Board has approved the appointment of Emmanuel Nnorom, a Non-Executive Director of the bank, as the new Group Chairman. His appointment will take effect on the same day Elumelu retires.

According to a statement issued after the Board meeting held on July 6, 2026, the leadership transition reflects the bank’s commitment to sound corporate governance, regulatory compliance and business continuity.

Elumelu’s retirement marks the close of a remarkable era in the history of UBA. During his 12 years as Group Chairman, the bank significantly expanded its operations, strengthening its presence across 20 African countries and extending its footprint to four major international financial centres.

Under his leadership, UBA grew its customer base to more than 50 million across Africa and beyond, while consolidating its reputation as a leading provider of banking and financial services on the continent.

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The bank also enhanced its digital banking platforms, strengthened corporate governance practices, improved operational resilience and expanded support for trade, investment and economic development across its markets.

Paying tribute to Elumelu’s contributions, the Board described his leadership as visionary and credited him with providing the strategic direction that transformed the bank into one of Africa’s most respected financial institutions.

“The Board places on record its profound appreciation to Mr. Elumelu for his visionary leadership and exceptional contribution to the strategic vision and institutional strength of the UBA Group,” the statement read.

According to the bank, Elumelu leaves behind a stronger institution built on robust governance structures, sustainable growth and a clear long-term strategic vision.

Reflecting on his retirement, Elumelu described his years of service as one of the most rewarding periods of his professional career.

“Serving United Bank for Africa has been one of the great privileges of my career. UBA has established a unique competitive position across Africa and globally, and I leave the Board with great confidence in the bank’s future,” he said.

Elumelu also expressed confidence in his successor, describing Emmanuel Nnorom as a leader with the experience, integrity and sound judgment required to guide the bank through its next phase of growth.

“Emmanuel Nnorom is a leader of integrity, experience and sound judgement, and I am confident that the bank will continue to thrive under his leadership,” he added.

The incoming chairman, Emmanuel Nnorom, is a chartered accountant and seasoned corporate executive with more than 40 years of experience in banking, finance, auditing and corporate governance.

Having served as a Non-Executive Director on the UBA Board, Nnorom is widely recognised for his deep understanding of the bank’s governance framework, operations and long-term strategic priorities.

The bank said his extensive professional experience and familiarity with its business position him to provide strong leadership as UBA pursues its next phase of expansion, innovation and value creation.

Responding to his appointment, Nnorom thanked the Board for the confidence reposed in him and pledged to build on the solid foundation established by his predecessor.

“I am honoured by the trust the Board has placed in me and deeply conscious of the legacy I inherit. I look forward to working closely with my colleagues on the Board, Management and employees across all our markets to sustain UBA’s momentum and continue delivering long-term value to our shareholders, customers and other stakeholders,” he said.

Industry observers believe the carefully planned succession demonstrates UBA’s strong commitment to corporate governance, leadership continuity and regulatory compliance.

The transition is expected to preserve the bank’s long-term strategic direction while supporting continued growth, innovation and value creation across its operations in Africa and global markets.

The leadership change will officially take effect on August 21, 2026, ushering in a new chapter for one of Africa’s largest and most influential banking institutions.

Elumelu to exit UBA board after 12 years, Nnorom takes over as chairman

Business

NNPCL cuts petrol price as Dangote Refinery competition intensifies

Published

17 hours ago

July 6, 2026

Trends Admin

NNPCL cuts petrol price as Dangote Refinery competition intensifies

The Nigerian National Petroleum Company Limited (NNPCL) has further reduced the pump price of Premium Motor Spirit (PMS), popularly known as petrol, marking its second downward price review in less than two weeks as competition in Nigeria’s deregulated downstream petroleum sector continues to intensify.

A survey of several NNPCL retail stations on Sunday showed that the state-owned energy company reduced the petrol pump price from ₦1,210 to ₦1,150 per litre, giving motorists an immediate ₦60 per litre relief.

The latest adjustment brings the cumulative reduction in NNPCL’s petrol price to ₦110 per litre since June 27, 2026, reflecting the growing impact of market competition and changing wholesale prices on Nigeria’s fuel market.

The reduction comes at a time when consumers have continued to grapple with high transportation costs and rising living expenses, with many hoping that lower fuel prices will gradually translate into reduced transport fares and lower prices for goods and services.

The latest price cut also underscores the changing dynamics of Nigeria’s petroleum industry following the full deregulation of the downstream sector. Unlike the previous regulated pricing regime, marketers now adjust pump prices based on prevailing market conditions, supply costs, exchange rates and global crude oil prices.

Industry analysts say the latest move by NNPCL is largely a response to increasing competition triggered by the aggressive pricing strategy of the Dangote Petroleum Refinery, which has continued to lower its wholesale petrol prices.

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Only days earlier, the Dangote Refinery announced another reduction in its ex-depot (gantry) price of petrol, cutting the price from ₦1,125 to ₦1,075 per litre. The latest adjustment represents the refinery’s fourth downward price review within a relatively short period and is expected to further influence retail fuel prices across the country.

The refinery said the price adjustment reflects its commitment to making fuel more affordable for Nigerians while responding to evolving market realities. It also noted that although international crude oil prices have moderated in recent weeks, some refined products currently being supplied were produced from crude purchased when prices were significantly higher.

The pricing strategy adopted by the Dangote Refinery has continued to reshape Nigeria’s downstream petroleum market, forcing competing suppliers and independent marketers to review their retail prices in order to remain competitive.

Several independent petroleum marketers, including NIPCO, AA Rano and Ranoil, have already adjusted their pump prices to between ₦1,205 and ₦1,240 per litre, with industry observers expecting more filling stations to announce fresh reductions if wholesale prices continue their downward trend.

Energy experts say the increasing competition among suppliers is one of the strongest indicators that fuel market deregulation is beginning to deliver tangible benefits to consumers through more competitive pricing.

According to market analysts, additional price reductions remain possible if the current trend in international oil prices continues and the naira maintains relative stability against major foreign currencies.

The downward movement in domestic petrol prices has coincided with softer global crude oil prices. As of the weekend, Brent crude traded at around $72 per barrel, while West Texas Intermediate (WTI) crude sold for approximately $68 per barrel, reducing production costs for refined petroleum products worldwide.

Industry stakeholders also attribute the emerging price competition to increased local refining capacity, particularly from the 650,000-barrels-per-day Dangote Refinery, which has significantly reduced Nigeria’s dependence on imported petroleum products and introduced greater competition into the domestic fuel market.

The development is expected to benefit millions of Nigerians, especially commercial transport operators, manufacturers, small businesses and households facing rising operational costs.

Although marketers caution that future prices will continue to depend on global crude oil prices, foreign exchange movements, logistics costs and domestic supply conditions, many industry observers believe the current competitive environment could lead to further reductions in petrol pump prices if market fundamentals remain favourable.

For many consumers, the latest NNPCL petrol price reduction offers renewed hope that the cost of transportation and other essential goods may gradually decline as competition within Nigeria’s downstream petroleum sector continues to deepen.