Marketers complained to Tinubu that our diesel was too cheap – Dangote

Petroleum marketers in Nigeria have raised concerns over the impact of Dangote Refinery’s reduced diesel prices on their businesses.

In a letter to President Bola Tinubu, the marketers argued that the refinery’s local diesel price drop to ₦900 per litre is negatively affecting their operations.

Devakumar Edwin, Vice President of Dangote Industries Limited, addressed these issues during a Twitter Spaces session organized by Nairametrics on Wednesday.

Edwin detailed the challenges faced by the Dangote Refinery, highlighting the adverse effects on Nigeria’s fuel supply and pricing dynamics.

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Edwin noted that the refinery, situated in the Lekki Free Zone near Lagos, is struggling to sell approximately 29 tankers of diesel daily due to insufficient local demand from petroleum product importers.

This lack of local patronage has forced the refinery to export a significant portion of its diesel and aviation fuel.

Despite these difficulties, Edwin emphasized that the Dangote Refinery’s capacity to produce petrol—44% of its total production—is adequate to meet the country’s local demand.

With a daily production capacity of 650,000 barrels, the refinery began exporting naphtha in March, low-sulphur straight run fuel oil (LSSR) in May, and domestically selling diesel and jet fuel in April.

Additionally, it started exporting diesel fuel that meets European specifications in June.

Marketers complained to Tinubu that our diesel was too cheap – Dangote

Nigeria’s first domestic dollar bond records 180% subscription

Nigeria has successfully launched its first-ever domestic dollar-denominated bond, seeing over $900 million in subscriptions.

The $500 million bond, coordinated by the Africa Finance Corporation (AFC), marks a pivotal moment in Nigeria’s economic development and highlights the growing confidence in the country’s capital market.

The five-year bond, which was issued at par with a 9.75% annual coupon, witnessed a 180% subscription.

This overwhelming interest from investors highlights the strong domestic confidence in Nigeria’s economic growth prospects, as well as the strategic role of the AFC in deepening the domestic capital markets.

According to a statement from the AFC, investors for this bond issuance ranged from local Nigerians and non-Nigerians residing in the country to Nigerians in the Diaspora and major institutional investors.

The bond will be available for trading on the Nigerian Exchange Limited (NGX) and FMDQ Securities Exchange Limited (FMDQ Exchange), providing a significant boost to the liquidity of Nigeria’s financial markets.

Banji Fehintola, Executive Director and Head of Financial Services at AFC, said: “This inaugural domestic US dollar bond issuance is a significant achievement for Nigeria and marks a new chapter in the development of the country’s capital markets.

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“We are honoured to have played a leading role in this landmark transaction as the Global Coordinator, which aligns with AFC’s mission to develop domestic capital markets in Africa by providing innovative financing solutions that meet the continent’s unique needs and also leveraging our deep capital market expertise to serve and deliver value to our clients. 

“This successful issuance not only showcases Nigeria’s economic potential but also reinforces the benefits of African nations looking inward to tap the deep pool of domestic capital on the continent and taking the lead in financing their own development.” 

Funds for critical infrastructure projects and development programs 

In a separate statement, the Ministry of Finance hailed the bond issuance as a landmark achievement for Nigeria, positioning the country as a leader in financial innovation in Africa. The Minister of Finance, Wale Edun, emphasized the importance of this milestone for the country’s financial strategy.

Edun  said: “I am particularly pleased that as Chair of the African Caucus, we have launched an initiative that not only strengthens Nigeria’s economic resilience but also expands the horizon for capital markets of African economies.” 

The funds raised from this bond issuance are set to be channelled into critical infrastructure projects and development programs that will bolster Nigeria’s economic growth.

The statement noted that the bond will provide much-needed capital for these initiatives, further cementing Nigeria’s position as a leader in financial markets innovation across the continent.

Nigeria’s first domestic dollar bond records 180% subscription

BREAKING: FG drags four Nigerian crypto dealers to court

The Federal Government of Nigeria has filed criminal charges against four Nigerian crypto dealers and several firms over allegations of conducting the business of other financial institutions without a valid banking license, including USDT to Naira transactions.

The individuals—Ejiogu A. Chinedu, Nnamdi F. Okereke, Oty Ugochukwu Stanley, and Chukwuebuka F. Ogumba—along with some firms listed as their co-defendants, were sued by the FG in various charge sheets and suit numbers exclusively seen by Nairametrics.

In the charges, the government is asking the Federal High Court in Abuja to punish the defendants for allegedly violating the Banks and Other Financial Institutions Act of 2020.

Alleged Unauthorized Crypto Dealings 

Nairametrics had earlier exclusively reported that Nigeria’s anti-graft agency, the Economic and Financial Crimes Commission (EFCC), on September 4, 2024, secured an order from the Federal High Court to freeze N548.6 million in bank accounts belonging to suspected crypto users on platforms like ByBit, KuCoin, and others, based on their alleged role in naira fluctuations.

EFCC counsel, Ekele Iheanacho, urged the court to freeze the bank accounts listed in its schedule, which belong to various individuals, some of whom are either currently being prosecuted or investigated for unauthorized foreign exchange dealings, money laundering, and terrorism financing, pending the conclusion of the investigation and prosecution.

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The development follows intelligence from the National Security Adviser, which alleged money laundering, foreign exchange contraventions, and terrorism financing activities on certain cryptocurrency exchange platforms.

In charges filed between June and July 2024, the defendants were accused of conducting the specialized business of another financial institution without a valid license, thereby committing an offense between 2021 and January 2024.

The prosecution also stated that the defendants, not being authorized dealers in Nigeria’s Autonomous Foreign Exchange Market, allegedly negotiated United States Dollar Tether (USDT) against Naira with the public, thereby committing an offense contrary to and punishable under Section 29(1)(c) of the Foreign Exchange (Monitoring and Miscellaneous Provisions) Act.

The act referred to describes any foreign exchange negotiation not permitted by law as an offense.

USDT refers to Tether, a cryptocurrency pegged to the U.S. dollar.

Some of the firms listed as co-defendants include Egomsinachi Road Autos, Plip Global Ventures, and Paparaxy Global Ventures.

The legal teams of both the prosecution and defendants will now present their arguments in court, eventually paving the way for a judgment.

BREAKING: FG drags four Nigerian crypto dealers to court