The Quill Journal

28/06/2024

28/06/2024

PEOPLE, POLITICS, AND POWERFRIDAY, JUNE 28, 2024.Today's edition of the program focuses on the threat posed by Food Insecurity in Nigeria, as Nigeria joins t...

24/06/2024

PEOPLE, POLITICS AND POWER. This edition of the program focuses on Electoral Reforms being proposed by 35 members of the House of Representatives. It examine...

21/06/2024

PEOPLE, POLITICS AND POWER.FRIDAY, JUNE 14, 2024. This edition of the program focuses on the proposals by a group of legislators in the House of Representati...

12/06/2024

PEOPLE, POLITICS AND POWER.FRIDAY, JUNE 14, 2024. Was organised labour lawful in shutting down the national grid during the last strike? Did the action amoun...

11/06/2024

PEOPLE, POLITICS AND POWERMONDAY, JUNE 10,2024.This edition of the program focuses on Nigeria's 92nd ranking in the 2023 Open Budget Survey conducted by the ...

03/06/2024

PEOPLE, POLITICS AND POWER. FRIDAY MAY 31, 2024.This edition of the program assesses Tinubu's one year anniversary with focus on the observance of Human righ...

27/05/2024

An X-ray of 25 years of uninterrupted practice of Democracy in Nigeria, its landmarks and challenges

20/05/2024

PEOPLE, POLITICS AND POWER MONDAY MAY 20, 2024.This episode of the program x-rays the Afro- Democracy system of government as proposed by Former President, O...

13/05/2024

People, Politics and Power. Monday, May 13, 2024.This edition of the program focuses on possible mitigating options to address the festering levels of insecu...

29/04/2024

PEOPLE, POLITICS AND POWERMONDAY APRIL 29, 2024. This Edition of the program focuses on the 2024 Global Report on Food Crises which affects almost 282 millio...

26/04/2024

This edition of the program, focuses on five decades of the expended programme on immunization and the need to create more means of saving lives with vaccine...

24/04/2024

People, Politics and Power. Friday, April 19, 2024.This edition of the program focuses attention on the probe panel set up by the Kaduna State House of Assem...

15/04/2024

This edition of the program focuses on the ten year anniversary of the abduction of the 276 Chibok school girls and events since then.

08/04/2024

This edition of the program focuses on the hike in electricity tariff and the impact on cost of living on Nigerians.

05/04/2024

Almost seven months after the recall of Nigeria's principal diplomats from missions abroad, the Tinubu administration is yet to nominate replacements. This i...

26/03/2024

RETURN OF KURIGA ABDUCTEES. PEOPLE, POLITICS AND POWER. MONDAY MARCH 25, 2024.This edition of the program focuses on the return of 137 of the 285 Kuriga pupi...

16/03/2024

FOOD SECURITY: NIGERIA'S NUTRITION CHALLENGE. PEOPLE, POLITICS AND POWER (PPP) FRIDAY MARCH 15,2024.This edition of the program focuses attention on food ins...

11/03/2024

SAFE SCHOOLS PLAN: THE KURIGA, TSANGAYA ADUBTIONS. PEOPLE, POLITICS AND POWER (PPP) MARCH 11This Edition of the program focuses on the recent abductions of s...

01/03/2024

STATE POLICE: ISSUES AND CHALLENGES. PEOPLE, POLITICS AND POWER (PPP) FRIDAY MARCH 1This Edition of the program focuses on the provisions of the Bill on esta...

28/02/2024

Removal of petrol subsidy is for Nigeria’s long-term energy security, says Tinubu

President Bola Ahmed Tinubu has said that the decision to remove subsidy on Premium Motor Spirit (PMS) also known as petrol is to ensure long-term energy security and economic prosperity of Nigeria.

The President stated this in his keynote address at the opening ceremony of the 7th Nigerian International Energy Summit (NIES) held Abuja on Tuesday.

He noted that the petroleum subsidy had, over the years, strained the country’s economic resources, leading to inefficiencies and, most importantly, hindering ability to invest in other critical areas of energy security.

Tinubu who was represented by the Minister of Information and National Orientation, Alhaji Mohammed Idris, said that the decision to remove the petroleum subsidy was a challenging one, but stressed that it was a step that must be taken to secure Nigeria’s energy future and foster economic growth.

“The decision to remove the petroleum subsidy is not an easy one, but it is a necessary one for the long-term energy security and economic prosperity of our beloved nation.

“We are creating a more transparent and accountable energy sector. The funds that were previously allocated to subsidizing petroleum products are now redirected towards developing and upgrading our energy and other social infrastructure, ” he assured.

Tinubu however stressed that adequate funding is crucial to support the development and deployment of cutting-edge technologies, infrastructure, and projects that will shape the energy future.

According to him, the private sector have been encouraged to participate in the energy industry with potential of attracting more local and international investors, fostering innovation and competition that will drive down costs and improve the overall efficiency of our energy sector.

“As a nation, we must explore innovative financing models, engage with the private sector, and attract investments that will propel us towards a more resilient and diversified energy sector,” he said.

He therefore called on all stakeholders, including industry experts, policymakers, and the general public to engage in constructive dialogue and collaboration towards achieving the set goal.

“The collective wisdom in this room is a powerful force, going by the collection of government, industry leaders, academia, and civil society coming together under the NIES 2024 platform to share insights and forge collaborations that will drive progress.

“I have no doubt that the discussions over the next few days will be instrumental in shaping policies and strategies that will define our energy future,” he stressed.

In his opening address, the Minister of State Petroleum Resources (Gas), Rt. Ekperikpe Ekpo, advocated a shift towards the vast potential that lies in Nigeria’s gas sector, saying that the gas industry presents a unique opportunity to diversify revenue streams, reduce dependence on oil, and create a more robust and sustainable economic foundation.

Already, he said that gas was attracting domestic and foreign investments that are crucial to unlocking the full potential of the gas resources.

“The gas industry, with abundant proven gas reserves of more than 208 trillion cubic feet (TCF) and further exploration potential, is crucial for enhancing energy security. Nigeria has no business with energy poverty,” he noted.

Ekpo reiterated that Nigeria has chosen gas as the transition fuel, facilitating the shift from more conventional to new and renewable energy sources.
“With its lower carbon footprint and versatility, natural gas aligns with global climate objectives while providing a reliable solution for our energy needs. Nigeria, with significant gas reserves, should leverage this advantage to become a key player in the global energy transition and a regional powerhouse for gas processing and industrialization,”he urged.

The Minister announced that significant progress has been made in the realization of the ‘Decade of Gas’ vision as the official secretariat is now operational and fully functional.

In his part, the Minister of State Petroleum Resources (Oil), Sen. Heineken Lokpobiri, lamented that despite the abundant oil and gas reserves in the country, Nigeria still suffers from energy poverty as the reserves have not translated to economic prosperity contrary to what is obtained in the Middle East.

He therefore implored the stakeholders to unravel what other oil producing countries were doing to bring economic prosperity to their countries that Nigeria hasn’t done.

He advocated that the task of exploring oil reserves should be given to those who have proven capacity, both financially and technically to be able to explore oil and gas reserves for the benefit of Nigerians and the global energy landscape.

“The only way we can guarantee energy security is to increase production in the upstream so that we will be able to provide the right quantity to service our obligations, both locally and internationally,” he added.

In his opening remarks, the Permanent Secretary, Ministry of Petroleum Resources, Amb. Nicholas Agbo Ella said, “The global energy landscape is undergoing a transformative shift, and it is imperative that we collectively address the challenges and opportunities that come with this new order.

In his goodwill message, the Secretary-General of the Organization of Petroleum Exporting Countries (OPEC), H.E. Haitham Al Ghais, said, Nigeria’s role in OPEC’s past and present has been a tremendous source of pride to me organisation.

“Successive generations of Nigerian public servants and captains of industry have contributed to making the OPEC-Nigerian relationship a success, ” he stated.

28/02/2024

Naira strengthens as CBN moves to stabilise economy

The naira gained against the dollar as the Central Bank of Nigeria (CBN) took more measures including delivering a massive hike in its benchmark interest rate on Tuesday in a bid to rein in rising inflation so as to stabilise the economy.

Raises MPR to 22.75%, CRR to 45%
Following the conclusion of the two-day Monetary Policy Committee (MPC) meeting held in Abuja on Tuesday, the CBN hiked the monetary policy rate (MPR) to 22.75 percent from 18.75 percent.

The central bank also raised the cash reserve ratio (CRR) to 45 percent from 32.5 percent. The asymmetric corridor was widened to +100-700 basis points around the MPR from +100/-300 basis points set in July 2023. However, the liquidity ratio remained unchanged at 30 percent.

The naira strengthened to 1,420 per dollar at the Bureau De Change segment of the foreign exchange market from over 1,800/$. In the parallel market, commonly known as the black market, the dollar closed at N1,550 as against N1,900 on Friday.

However, at the Nigerian Autonomous Foreign Exchange Market, naira depreciated to 1,615.94/$ on Tuesday from 1,582.94/$ on Monday, data from the FMDQ indicated.

Bismarck Rewane, managing director/CEO of Financial Derivatives Company Limited, said the CBN was aggressive in its tightening and that this shows that the country is now in a high interest rate environment.

He said this development will strengthen the currency, deflate the stock market in the next few days, and bring some level of sanity in the markets. He expects to see massive appreciation of the naira in the FX market.

A former top official at the CBN said quick ex*****on and steady nerves should bring inflows to stabilise currency and moderate inflation.

He said: “Now deputy governor in charge of financial system stability needs to keep a close eye on bank balance sheets. Higher lending rates may lead to higher loan defaults at a time of reduced real disposable incomes. Higher market rates may lead to losses due to market risk in the event of sell offs to shore up liquidity by marginal banks.

“But priority is to stabilise the macro and this decision is excellent. We just need to keep an eye on risks to bank balance sheets as we move from excessively loose monetary conditions to a more responsible stance.”

According to Abiola Rasaq, former economist and head investor relations at United Bank for Africa Plc, these transitory monetary policy measures reflect the inflation-targeting orientation of the new leadership at the CBN and overall monetary policy committee.

He said this would increase the cost of funds of banks and shrink net interest margin, albeit the MPC’s overarching interest is to stem the pressure on exchange rate and consumer prices.

He said the MPC sought to gradually narrow the negative real interest rate to attract foreign portfolio investors while also incentivising domestic investors as a way of stimulating appetite for naira-denominated assets.

Rasaq said: “It’s a double-edged sword that will hurt money supply and consequently undermine employment creation, but the MPC may have limited options at this time, hence I consider this measure as transitory douses to stem the current crisis.

“Banks profitability will be challenged, and indeed, the policy measure increases the probability of loan default in the banking sector, nonetheless, it’s a short term measure that hopefully will help to cool-off pressures and allow the monetary and fiscal policy authorities some time to reset the system and implement sustainable long term measures relevant for economic growth and development.”

Rasaq said: “It’s a double-edged sword that will hurt money supply and consequently undermine employment creation, but the MPC may have limited options at this time, hence I consider this measure as transitory douses to stem the current crisis.

“Banks profitability will be challenged, and indeed, the policy measure increases the probability of loan default in the banking sector, nonetheless, it’s a short term measure that hopefully will help to cool-off pressures and allow the monetary and fiscal policy authorities some time to reset the system and implement sustainable long term measures relevant for economic growth and development.”

“The Monetary Policy Rate itself was raised 400 bps. The signal on the tightening intent that this sends is important, and we expect that markets will not dismiss it,” she said in an email to BusinessDay.

Reacting to the MPC’s decision, Kingsley Moghalu, former deputy governor of the CBN, said on X: “Correct move by the Monetary Policy Committee to dramatically hike the Monetary Policy Rate by 400 basis point to 22.5 percent. The situation calls for nothing less if we are to check inflation over 12-18 months. We did the same a decade ago to bring inflation from 14 percent to 8 percent.”

Muda Yusuf, CEO of the Centre for the Promotion of Private Enterprise, said the outcome of the MPC meeting would hurt the real sector of the economy that is already contending with numerous macroeconomic challenges.

He said the increase of MPR and CRR posed a major risk to the financial intermediation role of banks in the economy.

“The increase would constrain the capacity of banks to support economic growth and investment, especially in the real sector of the economy because the increases are quite significant,” he said.

28/02/2024

CBN mandates BDCs to sell US dollars at N1,314.01/US$

THE Central Bank of Nigeria (CBN) has taken a decisive step to bridge the gap in the official and unofficial exchange rate by stipulating that all Bureau De Changes (BDCs) are permitted to sell foreign exchange to end-users at a margin not exceeding one percent (1%) above their purchase rate from the CBN.

This is coming more than two years after the suspended former CBN governor, Godwin Emefiele, stopped the sales of foreign exchange to BDC operators in that segment of the forex market.

To this end, the CBN has through a new circular by Dr Hassan Mahmud, the Director of Trade & Exchange Department, announced decision to distribute $20,000 to each eligible Bureau De Change (BDC) operator across the country at a rate of N1,301/$.

Also, the circular outlines specific guidelines for the BDC operators as part of the broader efforts to achieve a market-driven exchange rate for the Naira and alleviate the pressures feeding into the parallel market.

This allocation will be sold at a rate of N1,301/$, reflecting the lower band rate of executed spot transactions at the Nigerian Autonomous Foreign Exchange Market (NAFEM) as of the previous trading day, dated February 27, 2024.
According to the bank, this strategy is anticipated to inject much-needed liquidity into the market and stabilise the Naira’s value.

The measure is also intended to prevent excessive mark-ups and protect consumers from price exploitation.

The circular reads:“The CBN has approved the sale of foreign exchange to eligible Bureau De Change (BDCs) to meet the demand for invisible transactions. The sum of $20,000 is to be sold to each BDC at the rate of N1,301/$- (representing the lower band rate of executed spot transactions at NAFEM for the previous trading day, as at today, 27th February 2024).

“All BDCs are allowed to sell to end-users at a margin NOT MORE THAN one percent (1%) above the purchase rate from CBN.
It further stated that Eligible BDCs are mandated to deposit their Naira payments into designated CBN Foreign Currency Deposit Naira Accounts. They must also provide confirmation of payment along with other necessary documentation to facilitate disbursement at the appropriate CBN branches located in Abuja, Awka, Lagos, and Kano.
This strategic intervention by the CBN is expected to enhance the efficiency of the foreign exchange market, providing a more transparent and equitable platform for the trading of the Naira.

Meanwhile, in an effort to curb naira depreciation against the dollar, the federal government last week, among several other measures, blocked the online platforms of Binance and other crypto firms to avert continuous manipulation of the forex market and halt illicit movement of funds.

Apart from Binance, other platforms such as Forextime, OctaFX, Crypto, FXTM, Coinbase, Kraken, among others, were equally blocked.
Earlier on Tuesday, the office of the National Security Adviser directed law enforcement agencies to take firm measures against anyone engaged in foreign exchange market speculation.
The government also announced that it was planning to raise $10 billion to improve liquidity in the foreign exchange market.
In an aggressive push to tackle currency racketeering, the Economic and Financial Crimes Commission (EFCC) last Monday raided and arrested some Bureau de Change (BDCs) operators across different regions in the country.
Within the past week, the CBN has also introduced several directives targeted at addressing the naira depreciation crisis in the country.

28/02/2024

President Bola Tinubu lands in Akure, Ondo State on a condolence visit to the family of Late Governor Akeredolu

26/02/2024

INSECURITY: THE CHALLENGE OF ILLICIT ARMS. PEOPLE, POLITICS AND POWER (PPP) MON. FEB. 26, 2024.This Edition plays host to the National Coordinator of the Nat...

23/02/2024

THE PARLIAMENTARY OPTION. PEOPLE, POLITICS AND POWER (PPP) FRIDAY, FEB. 23, 2024. This edition focuses on the move by some lawmakers in Nigeria's House of Re...

19/02/2024

37TH AU SUMMIT: A POST MORTEM. PEOPLE POLITICS AND POWER (PPP) MONDAY FEB.19, 2024.This edition of the program reviews the deliberation of the 37TH Ordinary ...