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NITDA launches N11 million digital innovation competition to tackle infrastructure challenges in Nigeria 

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The National Information Technology Development Agency (NITDA) has launched the 2024 Digital Nigeria Innovation Challenge, a competition aimed at using technology and innovation to address Nigeria’s infrastructure challenges.

 

With N11 million in cash prizes at stake, the competition invites participants to create digital solutions that could drive sustainable development across the country.

 

Announcing the initiative on Thursday, NITDA said the competition is designed to empower teams of innovators to develop digital maps highlighting critical infrastructure in Nigerian states. These maps will include essential facilities such as hospitals, schools, roads, and utilities, providing insights to foster development.

 

Eligibility criteria

NITDA said all participants must be Nigerian citizens with a valid means of identification (National ID, Voter’s Card, International Passport, or Driver’s License). Other criteria include:

 

Participants must be 18 years and above at the time of registration to ensure legal participation and commitment.

Teams must consist of 2 – 5 members, with a mix of technical and non-technical backgrounds, to encourage diverse problem-solving approaches.

Participants must join as part of a team; individual entries will not be accepted.

Each team must represent a specific Nigerian state. Participants should have a good. understanding of the state they represent – either through residency, work, or academic study.

According to NITDA, interested Nigerians can register here.

 

 

Using technology to solve infrastructure problem

Commenting on the initiative, Mrs. Hadiza Umar, Director of Corporate Affairs and External Relations at NITDA, stated that the competition commenced on September 11, 2024, and will run until October 23, 2024.

 

“The 2024 Innovation Challenge is more than just a competition; it’s an opportunity for Nigeria’s brightest minds to leverage technology in solving pressing infrastructure problems.

 

“This initiative aligns with President Bola Tinubu’s Renewed Hope Agenda, supporting economic growth, job creation, and innovation,” Umar said.

 

In line with NITDA’s mission to promote entrepreneurship and digital transformation, the competition will focus on building a digitally capable Nigeria.

Participants will work in teams to use digital tools and mapping techniques to document and analyze infrastructure needs. These maps are expected to highlight key development opportunities across Nigeria.

Phases of competition

According to Umar, the competition will take place in three phases: state, regional, and national levels.

 

Teams from all 36 states and the FCT will compete, with 37 teams advancing to the regional stage. Regional winners from Nigeria’s six geopolitical zones will be selected to compete in the final round in Abuja.

 

“The regional champions will receive N1 million each, while the national winner will take home the grand prize of N5 million,” Umar added.

 

This initiative, she noted, will not only highlight critical infrastructure needs but also enhance skills in data science, Geographic Information Systems (GIS), and storytelling among Nigerian youth and professionals. Furthermore, it will encourage collaboration, community engagement, and problem-solving across diverse groups.

 

Real owner of Ogun State rice project breaks silence, calls for govt assistance

The Ogun Rice being bagged after harvest on Bello Zabarmawa’s farm. Photo by Idowu Otegbola, 6 Sept. 2024

 

Contrary to the general impression created in the mind of the public that the Ogun State Government has begun the sale of about 20,000 bags of rice “with the harvest of a 200-hectare rice farm at Magboro in Obafemi-Owode Local Government Area”, PMNEWS findings reveal that the said laudable project was not that of Ogun State Government but an initiative of a detribalized Nigerian businessman and farmer from Kebbi State who is currently a Senior Special Adviser to the Kebbi State Government, Alh Bello Zabarmawa.

 

News went viral in August that the Ogun State Government of Prince Dapo Abiodun had flagged off rice harvest from an initial cluster of 200 hectares of farmland.

 

“Ogun State Governor, Dapo Abiodun, kicked off the harvest and highlighted the state’s achievement of a milestone in becoming a rice-producing state.

 

“The Ogun State rice production effort is driven by the Ogun State Economic Transformation Project and supported by the World Bank to stimulate economic growth and development, according to a statement.

 

“Abiodun hailed the achievement of producing locally grown rice as placing Ogun State on par with other rice-producing states including Lagos, Kebbi, and Bayelsa, and a developmental step towards food security, creation of employment opportunities, and improving the livelihoods of residents within the state”, a national daily had reported.

 

Real owner of Ogun State rice project breaks silence, calls for govt assistance

The Ogun Rice being bagged after harvest on Bello Zabarmawa’s farm. Photo by Idowu Otegbola, 6 Sept. 2024

It quoted Abiodun as saying “Today, just three months later, we are already harvesting, making this a three-month cycle, which means we can do this three times a year.

 

“With an efficiency yield of about 70 per cent, the rice farm could result in approximately 20,000 bags of milled rice per cycle, valued at around N1bn and if replicated three times annually, the project could generate N3bn in revenue.

 

“In this place, I have 12,500 hectares of land, and all we have farmed is 200 hectares that yielded N1 billion for 200 farmers. From here, I can feed the rest of the country. We will scale up this project immediately from 200 to 2,000 hectares and generate N30bn in revenue.

 

“This brings us closer to making Ogun State the food basket of the nation.”

 

The governor stated further that the project was in line with President Bola Tinubu’s resolve to eradicate poverty and hunger by providing affordable food to Nigerians, adding that the project, apart from increasing rice production, would engender prosperity in animal husbandry.

 

He added that OGSTEP Agricultural Sector Intervention will provide critical support, including advanced agricultural techniques, access to quality seeds, modern irrigation systems, and technical training for farmers, adding that the approach is offered to beneficiaries at a 65 per cent discount on the cost for each mechanized operation.

 

That event raised the expectations of Ogun residents who started going from market to market looking for rice. They started sending enquiries to the media.

 

With the pressure unabated, PMNEWS decided to reach out to the Ogun State Government through the Commissioner for Agriculture and Food Security, Bolu Owotomo.

 

When he was not forthcoming after persistent phone calls, we searched elsewhere which led us to securing the contact of someone the sources regarded as “the man in charge”. The person ended up being Alh Bello Zabarmawa.

 

Alh Zabarmawa gave us a 10 am appointment on Friday 6 September. We got there by 9 am meeting no official yet on the large farmland except some labourers harvesting.

 

Real owner of Ogun State rice project breaks silence, calls for govt assistance

Alh Bello Zabarmawa (right) here explains a point to PMNEWS Isa Isawade (left) on his farm. In the middle is one of the young farmers Kanachika Daniel. Photo by Idowu Otegbola

About an hour later, some of his aides came to receive us. We engaged them in a fact-finding conversation while waiting for the boss to arrive. It was interesting to find that the farm does not belong to the Ogun State Government but Zabarmawa whose manager, Alh Haruna, started farming in the area in 2019.

 

According to Haruna, he got back to Kebbi and informed his boss of the availability of suitable soil for rice planting in Ogun State.

 

Zabarmawa visited and became enamoured of the land. He decided to cultivate a large portion and called on people around who needed employment opportunities, gave them money and mobilised logistics to begin rice farming.

 

“I’m the manager of the farm. We are in Ogun State for rice farming. I started rice farming about five years ago in 2019. When I started farming and discovered that the land was very good, I went to meet our oga, Alh Bello and I told him that we have a very good land hear. He said where, I said in Ogun State. He said he would come and see the place. That was how we started farming it together. The commissioner has come here twice. When the governor also came, he promised to support what we were doing. He even promised to do the Magboro Road down to Makogi. We are expecting that. Government cannot forget us.” Haruna said.

 

Real owner of Ogun State rice project breaks silence, calls for govt assistance

One of Zabarmawa’s harvesters at work on the farm

The Magboro community through their royal house willingly welcomed Zabarmawa and his young farmers, knowing full well that such a project would bring economic prosperity to their town.

 

Zabarmawa organized 200 farmers and gave those without capital a zero-interest loan to farm one hectare of rice each. They established large farms in Makogi and the Gas line.

 

He hired bulldozers to clear the land of trees, stumps and silts for all the farmers. When the challenge became daunting, he was advised to seek assistance from the Ogun State Government.

 

Zabarmawa got 220 hectares of land on lease at the sum N6million and then went to Young Service Grow for proper documentation to begin rice cultivation.

 

He was advised to be under an established name ‘Alubarika Farm’ to get him linked up with the Ogun government.

 

According to him, the Ogun State Government saw the nobility of the project and decided to support him with clearing of the farmland, supply of fertilizers and other logistics. In fulfilment of this, he said, the government paid 50% of the clearing expenses and 50% of fertilizer costs during planting.

 

But after that initial aid, Zabarmawa has been shouldering the farm’s capital and revenue expenditure.

 

Real owner of Ogun State rice project breaks silence, calls for govt assistance

Bulldozer at work on the farm. Photo by Idowu Otegbola

One of the farmers who said he met Alh Zabarmawa when he came to buy solar panels in his shop for the farm, Kanachika Daniel, said that he paid 65% of the initial costs while the government supported him with 35%.

 

Secretary of the Albarika rice farmers, Alh Yusuf Sulaiman also spoke with PMNEWS. He said their Chairman, Alh Bello Zabarmawa was the one providing the needed funds for the rice farmers.

 

He added that the Ogun State Governor and Commissioner for Agric visited the farms to see what the farmers were doing and promised to assist them.

 

He urged the government to fulfil its promises, adding that the association was ready to intensify farming and teach interested youths how to farm successfully.

 

Real owner of Ogun State rice project breaks silence, calls for govt assistance

Magboro rice farm Manager Alh Haruna, leading PMNEWS Journalists Isa Isawade and Adejoke Adeleye to inspect a newly ploughed portion of the farmland. Photo by Idowu Otegbola

Abu Garba is another farmer who was a Bureau de Change operator. According to him, he dropped the trade for farming, saying farming is better.

 

He lauded Zabarmawa’s large-heartedness and philanthropic inclination. He said Bello gave him N5m to start the rice farming at Magboro. He added that he had harvested 500 bags of rice so far.

 

The unassuming Alh Bello Zabarmawa hesitated when he was approached to speak. He’s said to enjoy a quiet life. He, however, yielded after being convinced that he needed to clarify issues.

 

He said: “When I started, the Ogun State Government promised and paid 50% of the clearing cost why I paid the balance,” adding that the government paid half of the fertilizer cost.

 

“That time I was buying a bag of fertilizer for N45,000, I paid N23,000, government paid the remaining N22,000.

 

“I cannot forget the support government gave me at the time because if you are doing something and government gets interested and supports you, it’s a great achievement.

 

“There was a time I wanted to harvest, the governor himself came here. The Commissioner has been here twice. It was the governor who flagged off the harvest. I was very happy that day.

 

“But, I still need government support.

 

“I’m calling on the State Government and the Federal Government to put hands together to move this country forward.

 

“I’ve brought in more people to farm here. I spend money to clear the land. I have a plan to clear 1,000 hectares. I’m calling for government support. I’ve brought in three bulldozers now. I’m the only one paying for now. I paid N600,000 to bring the bulldozers to the farm and I pay N400,000 labour on each of them every day.

 

“I have given loans to about 60 farmers ranging from N4m to N10m to farm here. So I want more support from the government so that we can meaningfully engage our youths who don’t have work to do. I have work for them here. Those I assisted have become millionaires.

 

“So, if the government really comes in now, the farm would feed all our people. They don’t have to buy rice from outside again,” he explained.

 

Why does Zabarmawa lend interest-free money to farmers with all the risks involved, what’s the motivation?

 

He explained: “Since my childhood, I don’t like people suffering. Even my siblings know that anything I have, I like to share with people around me. And when I started farming here, any time anybody came to my house saying ‘I am hungry’, I would say go and carry one bag of rice there. They all know me for that. It got to a time when I decided to fund people to farm so they can get work to do.”

 

Real owner of Ogun State rice project breaks silence, calls for govt assistance

From left: Kanachika Daniel; Secretary of the rice farmers, Alh Sulaiman; Alh Bello Zabarmawa; the farm’s manager, Alh Haruna and representatives of the Magboro landowners

Are there challenges facing the Magboro rice farmers? Zabarmawa and his team answered in the affirmative.

 

Haruna said, “We are facing so many challenges here. We are facing water problem, our rice is drying off due to lack of rain. And again, birds are disturbing us. We need help in that regard too. We need bulldozers to clear the rest of the farms, we need harvesters so we can expand our farms. Alhamdullah, we thank Alh Bello for the great support he has been giving farmers here.”

 

When asked about the kind of assistance needed to stave off the birds, he said: “There are many ways the government can help to stop the birds. There is a chemical that repels the birds. We cannot buy it by ourselves but government can get it through other countries. There is one chemical I saw about three months ago, 5 litre is about N700,000 and it can’t last you more than two to three days,” adding that helicopters or drones are used to spread the chemical.

 

Daniel also confirmed that the farmers were faced with daunting challenges. He appealed to the government to assist in the area of providing solar energy in the farm for irrigation, adding that the scarcity of rain experienced in the last two months adversely affected their produce.

 

He also asked the government to assist in stopping the parasitic birds and fulfil its promise to reconstruct the 8.17 km Magboro-Makogi Road.

 

The governor had, at the harvest flag-off event, said: “I am glad that today, I had the opportunity to drive on this road myself. I have seen the condition of the road; but beyond the condition, I have seen how densely populated this area is. I also appreciate the impact this road will have on our farmland.

 

“So today, I know that I am a promise-keeping governor. I only talk and do; I don’t talk without doing. I am going to immediately award the contract for the reconstruction of this road.”

 

Zabarmawa also confirmed the challenges of birds, difficulty in energy supply for irrigation, lack of good access roads to the farms and lack of sufficient chemical to kill grasses.

 

“The grasses grow rapidly because it’s a virgin land. We need to kill the grasses as they grow. We don’t even need fertilizer for now because it’s a virgin land,” he maintained.

 

On the challenge of birds, he said: “I would like the government to help clear the forest around where the birds are hiding.”

 

Court freezes N548.6 Million belonging to ‘ByBit, KuCoin’ Nigerian crypto users over Naira fluctuation allegations  

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Nigeria’s anti-graft agency, the Economic and Financial Crimes Commission (EFCC), has 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.

 

The motion, dated September 3, 2024, which the court relied on to freeze the funds, casts a fresh spotlight on major foreign crypto platforms, ByBit and KuCoin, accusing them of aiding the devaluation of the Nigerian currency.

 

This development is part of a broader prosecutorial and legal campaign by federal government agencies to address alleged foreign exchange violations and tax evasion by foreign cryptocurrency platforms.

 

Naira fluctuation allegations

Recall that in February 2024, Nigeria’s security agency arrested two executives of the Binance cryptocurrency platform following intelligence from the National Security Adviser, which alleged money laundering and terrorism financing activities on certain cryptocurrency exchange platforms.

 

Nairametrics reports that the EFCC is already in court against Binance and Tigran Gambaryan over money laundering offenses involving $35.4 million.

 

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This recent motion now extends the indictment to ByBit and KuCoin, accusing them and several unnamed crypto platforms of enabling their Nigerian users to engage in ”price discovery, confirmation, and market manipulation” through their platforms, thereby causing “distortions in the market, resulting in the naira losing its value against other currencies.”

 

An EFCC investigator, Okoro Philip, stated in his affidavit, exclusively seen by Nairametrics, that over the past few months, Nigeria experienced considerable gains in currency stabilization efforts by the Federal Government, as evidenced by the dollar trading at N980 to $1 on the black market.

 

He added that these gains were swiftly reversed on Thursday, April 18, 2024, when the dollar surged from N1,250 to $1 on the parallel market.

 

He said further investigation and intelligence indicated that “these fluctuations were primarily driven by activities on platforms such as ByBit, KuCoin, and other similar cryptocurrency platforms.”

 

He stated that 22 bank accounts, domiciled in various Nigerian banks and described in the motion, belong to willing sellers of USDT, who provide their naira accounts to transfer the naira equivalent of the USDT.

 

He contended that the identified account holders are users of ByBit, KuCoin, and other foreign cryptocurrency platforms, who are not authorized to deal in foreign exchange, advertise, negotiate, or carry out cryptocurrency exchanges to naira and vice versa at rates detrimental to Nigeria’s financial system.

 

The prosecution accused the cryptocurrency platforms of deliberately ignoring the mandatory requirements under Nigeria’s anti-money laundering laws and regulations, enabling users of the platforms to operate under a cover of secrecy.

 

“ByBit is a cryptocurrency platform where the exchange of USDT (a digital dollar) to other currencies, including the naira, takes place. One USDT is approximately equivalent to one United States dollar (USD). The exchange rates determined by users of these cryptocurrencies adversely affect the value of the naira by artificially lowering its value.

 

“The proceeds of this manipulation go into the account of the willing seller,” the official added in the case marked FHC/ABJ/CS/543/2024.

 

More Insights

The EFCC alleged that further intelligence has revealed that the proceeds of crimes and funds for terrorist activities are covertly exchanged through these platforms.

 

The Commission disclosed it has written to all the banks where the accounts are domiciled, requesting hard copies of the identified account details, a directive which has been complied with.

 

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.

 

The identified accounts include those of Kora Payment Network, AD Ishola Farms Ltd, and Microcore Tech Investment Services.

 

The motion was moved in open court by Iheanacho on September 4, 2024, and granted by Justice Emeka Nwite.

 

What you should know

This latest development follows a court order freezing 1,146 accounts for 90 days (from April 25, 2024, to July 23, 2024) over illegal financial transactions.

 

An affected party later applied to have several of the freezing orders lifted, and the court granted the request.

However, the EFCC brought in a fresh motion to continue its investigation, having filed criminal charges against some of the operators of the accounts.

ByBit remains one of the few cryptocurrency exchanges still offering a peer-to-peer section on its platform, following a crackdown on other exchanges like Binance, which led to the delisting of their peer-to-peer categories.

ByBit also offers options for crypto trading on its platform and is a favorite among Nigerian crypto traders. Nigeria’s National Security Adviser (NSA) recently classified crypto trading as a national security issue.

This led to the Central Bank of Nigeria (CBN) ordering five fintech companies, including OPay, Palmpay, Moniepoint, Kuda, and Paga, to stop onboarding new customers.

In response, these fintech companies have announced the prohibition of cryptocurrency or virtual currency transactions on their platforms.

Under CBN supervision, the fintech companies are now required to report any account trading in cryptocurrency to the NSA through their regulator, the CBN.

KuCoin’s VAT charge comes amid the Nigerian government’s clampdown on cryptocurrency exchanges and related transactions, which saw Binance exit the market.

 

This crackdown also forced Binance and KuCoin to halt NGN/USD P2P trading on their platforms.

 

CBN issues 30-day deadline to Payment Service Providers on PoS transaction tracking 

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The Central Bank of Nigeria (CBN) has released a new directive to Payment Service Providers (PSPs), requiring them to comply with enhanced routing guidelines for Point of Sale (PoS) transactions.

 

This move is aimed at strengthening the monitoring of electronic transactions across Nigeria.

 

The directive, issued on September 11, 2024, follows CBN’s initiative to diversify the Payment Terminal Service Aggregator (PTSA) structure, which previously operated through a single aggregator.

 

In a circular, signed by Oladimeji Yisa Taiwo on behalf of the CBN’s Payments System Management Department, the apex bank mandates that all PoS transactions from merchant and agent locations—whether physical or electronic—must now be routed through any CBN-licensed PTSA.

 

The directive is part of efforts to decentralize PoS transaction routing and address concerns over the centralization of such transactions under a single entity.

 

 

Background on the PTSA License System

In August 2011, the CBN initially granted a PTSA license to the Nigeria Interbank Settlement System Plc (NIBSS) to serve as the sole aggregator of PoS transactions.

 

However, to promote competition and enhance service delivery, the CBN awarded a second PTSA license to Unified Payment Services Limited (UPSL) on April 19, 2024.

 

This development aims to reduce the dependence on a single aggregator for the management of PoS transactions, promoting transparency and operational efficiency in Nigeria’s growing electronic payments landscape.

 

Key Directives in the Circular

The CBN has outlined several steps PSPs must adhere to under the new directive:

 

Mandatory Routing of PoS Transactions: Acquirers are now required to route all transactions from PoS terminals through any of the CBN-licensed PTSAs. This applies to both physical and electronic PoS terminals, ensuring that all transaction data is captured and monitored by the appropriate authorities.

 

Certification of Processors: PTSAs must only send PoS transactions to processors certified by relevant payment schemes, which must also be nominated by the acquirer and licensed by the CBN. This measure is designed to maintain the integrity and security of payment processes.

 

Processor Flexibility for Acquirers: Acquirers are given the flexibility to choose which processors and PTSA they want to work with, providing greater autonomy in transaction processing and management.

 

Device Configuration: All Payment Terminal Service Providers (PTSPs) are instructed to ensure that their PoS devices and applications are correctly configured to comply with the new directive, routing transactions through any of the licensed PTSAs as directed by the acquirers.

 

Monthly Reporting Requirements: Both PTSPs and PTSAs are required to submit detailed monthly reports to the CBN. PTSPs must report on the number of merchants and agents they manage, as well as the services used to route transactions, while PTSAs must submit reports detailing all transactions processed through their platforms. These are expected “to be submitted to the Director, Payments System Management Department, not later than seven (7) days after the end of each month.”

 

The CBN has given PSPs a 30-day window to regularize their operations in line with the new requirements. Both PTSPs and PTSAs must notify the CBN in writing of their compliance within this period.

 

The circular noted: “Consequently, you are hereby directed to commence regularization with the PTSAs and notify the CBN in writing to confirm compliance, within 30 days from the date of this Circular.”

 

What you should know

The Corporate Affairs Commission (CAC) recently said it has commenced the process of taking drastic actions including shutting down Point of Sales (PoS) businesses that have failed to register their businesses as its September 5 deadline lapsed.

 

While noting there was inadequate compliance with its directive, the Commission said those who decided not to register may be engaging in “unwholesome activities.”

This development comes as the fintech business owners under the aegis of the Association of Mobile Money and Bank Agents in Nigeria (AMMBAN) have challenged the CAC’s registration directive in court even as they insist the mandatory registration was illegal.

The directive on registration of PoS business came against the backdrop of frequent fraud incidents involving POS terminals and plans to stop trading in cryptocurrency or any virtual currency by the Central Bank of Nigeria (CBN).

According to a report by the Nigeria Inter-Bank Settlement System (NIBSS) Plc, POS terminals accounted for 26.37% of fraud incidents in 2023.

 

Local marketers buy only 3% of Dangote Refinery’s products, boycott over lower pricing 

The Vice President of Dangote Industries Limited, Devakumar V.G. Edwin, has expressed frustration over the boycott of Dangote Refinery’s products by local marketers.

 

During an X (formerly Twitter) space hosted by Nairametrics on Wednesday, he revealed that despite the refinery’s efforts to supply affordable petroleum products, many traders in Nigeria have refused to purchase from the refinery, preferring to continue importing refined products from abroad.

 

Speaking during the session, Edwin highlighted the initial vision behind the establishment of the Dangote Refinery, which was aimed at reducing Nigeria’s reliance on imported petroleum products.

 

“The whole purpose of doing this refinery in Nigeria was to utilize our local crude instead of exporting raw materials and importing finished products,” he explained. “We should be able to refine and use the finished products within Nigeria and produce more to export the surplus.”

 

Despite the refinery’s large production capacity, local marketers are only purchasing about 3% of the output.

 

He noted that the remaining 97% of the refinery’s production, including diesel and jet fuel, is being exported due to a boycott by local traders who refuse to buy at the refinery’s lower prices.

 

This has forced the refinery to explore international markets, exporting the majority of its refined products, even though it was originally intended to supply the Nigerian market.

 

Edwin said: “I’m selling 2 to 3% to small traders who are willing to buy, while the rest 95 to 97% I’m forced to export,” while speaking about the quantity of the refinery’s Products sold locally.

 

Local marketers prefer importing

He suggested that there is a deliberate attempt by some marketers to block the refinery’s operations, as they prefer to import products rather than support local refining.

 

He further revealed that local marketers wrote to President Bola Tinubu, complaining about the refinery’s pricing strategies.

 

“They wrote to His Excellency, the president, claiming that we are disturbing the market by dropping our prices,” Edwin disclosed.

 

He explained that in response to market dynamics, the refinery reduced prices twice to encourage sales, but this only led to further resistance from the marketers, who accused the refinery of undercutting the market.

 

Edwin further said since that local marketers have been blocking the distribution of their products within the country, the refinery has been exporting most of its petroleum products.

 

Refinery can produce 54 million liters of refined petroleum products per day

Edwin said that the refinery can produce up to 54 million liters of refined petroleum products per day, depending on crude oil supply.

 

However, local crude supplies have been inconsistent, forcing the refinery to rely on imported crude from countries like the U.S. and Brazil.

 

This situation has been exacerbated by international oil companies (IOCs) prioritizing foreign markets, often selling crude oil at prices significantly above the market rate for local buyers

 

He added that the refinery’s production capacity is more than sufficient to meet Nigeria’s petroleum needs. He stated that 44% of the refinery’s output is enough to cover 100% of the country’s demand for refined products.

 

What you should know

The Dangote Refinery which commenced operations in March supplied diesel and aviation jet fuel in April, and it is expected to begin the supply of premium motor spirit (PMS) this month (September).

 

Aliko Dangote, Africa’s richest individual, earlier announced that the supply of diesel from his Dangote Refinery has caused a roughly 60% decrease in the commodity’s price in the local market.

The business mogul stated that before the Dangote Refinery began operations, diesel was sold at around N1,700. However, the refinery reduced the price to about N1,000, marking a drop of approximately 60%.

He also noted that despite the exchange rate rising to about N1,500 per dollar, they have managed to keep the price of diesel below N1,200.

Dangote Refinery recently stated that it would export its Premium Motor Spirit (PMS), commonly known as petrol, if the Nigerian National Petroleum Company (NNPC) Limited and other domestic petroleum marketers choose not to purchase it.

Nairametrics earlier reported that the value of Nigeria’s import of Premium Motor Spirit (PMS) popularly called petrol in the second quarter of 2024 rose to N3.22 trillion, the highest on record in the nation’s history.

This is according to the foreign trade report published by the National Bureau of Statistics (NBS).

Imports of petrol in the second quarter of 2024 constituted 25% of total imports in the period. Furthermore, the N3.2 trillion petrol import bill in Q1 2024 marks a 100% increase in the value of petrol import compared to the same period of 2023 which stood at N1.6 trillion.

 

In the first quarter of 2024 so far, the value of petrol imports reached N2.6 trillion while cumulatively in the first six months of the year, the country’s petrol import bill stood at N5.8 trillion.

 

When compared to the same period of 2023, the country’s petrol import bill has increased from N3.1 trillion to N5.8 trillion. This denotes an increase of 87.09% during the period

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Credit: Naira Metrics

WUMI TORIOLA SET TO MAKE CINEMATIC HISTORY WITH “QUEEN LATEEFAH

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Award-winning actress Wumi Toriola is set to make her debut as a producer with the highly anticipated movie “Queen Lateefah”, scheduled for release on September 27th.

In partnership with CinemaxNG, “Queen Lateefah” promises to be a blockbuster hit, directed by the visionary Captain Degzy. The movie boasts an unique blend of style, substance, and Nollywood flair, poised to leave a lasting impact on the cinematic landscape.

 

Toriola, known for her captivating performances on screen, is excited to take on this new role. “I’m thrilled to bring this project to life, and I’m confident that audiences will love it,” she said.

 

“Queen Lateefah” is set to electrify cinemas nationwide, with fans eagerly anticipating its release. Don’t miss out on this cinematic event!

 

 

Nigeria’s trade surplus hits N6.95 trillion in Q2 2024 as import weakens 

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Nigeria recorded a trade surplus of N6.95 trillion in the second quarter of 2024, reflecting the country’s strong export performance amidst a slight decline in overall merchandise trade.

 

This surplus marks a 6.60% increase from the previous quarter, which recorded a surplus of N6.52 trillion.

 

Nigeria’s total merchandise trade in Q2 2024 stood at N31.89 trillion, representing a 3.76% decline compared to the preceding quarter (Q1 2024) but marking a 150.39% rise from the corresponding period in 2023.

 

This is according to a report, released by the National Bureau of Statistics (NBS) on Wednesday, which shows a decline in Nigeria’s import.

 

Exports drive trade surplus

Nigeria’s export sector continues to be the primary driver of its trade surplus. In Q2 2024, total exports stood at N19.42 trillion, accounting for 60.89% of the country’s total trade.

 

This represents a 1.31% increase from N19.17 trillion in the first quarter and a 201.76% surge from N6.44 trillion recorded in Q2 2023.

 

The dominance of crude oil exports remains a key factor in this performance, contributing N14.56 trillion, or 74.98% of total exports.

 

Non-crude oil exports, valued at N4.86 trillion, made up 25.02% of the total export value, with non-oil products contributing N1.94 trillion.

 

The strong export performance, particularly in crude oil, ensured that Nigeria maintained a favourable trade balance.

 

In Q2 2024, Nigeria’s top export destinations were dominated by European and American countries. Spain emerged as the largest export partner, receiving goods valued at N2.01 trillion, accounting for 10.34% of Nigeria’s total exports.

 

The United States followed closely with N1.86 trillion (9.56%), while France imported N1.82 trillion worth of Nigerian goods, representing 9.37% of total exports.

 

Other significant export partners include India (N1.65 trillion or 8.50%) and the Netherlands (N1.38 trillion or 7.10%).

 

Collectively, these top five export partners contributed 44.87% of Nigeria’s total exports during the second quarter of 2024.

 

Imports decline in Q2 2024

While exports surged, imports in Q2 2024 experienced a notable decline. The total value of imports stood at N12.47 trillion, accounting for 39.11% of the country’s merchandise trade.

 

This marked a 10.71% decrease from the N13.97 trillion recorded in Q1 2024 but still showed a 97.93% increase from the N6.30 trillion recorded in Q2 2023.

 

The reduction in imports further contributed to the significant trade surplus, highlighting Nigeria’s growing export strength relative to its import demand.

 

China maintained its position as Nigeria’s largest supplier of goods, with imports valued at N3.03 trillion, representing 24.29% of Nigeria’s total imports.

 

Belgium followed, supplying goods worth N1.79 trillion (14.35%), while India contributed N1.06 trillion, accounting for 8.49% of total imports. The United States was the fourth-largest import partner with N917.84 billion (7.36%), and the Netherlands rounded out the top five with N585.30 billion (4.69%) of total imports.

 

These countries were responsible for a significant portion of Nigeria’s imports, mainly supplying mineral fuels, machinery, and transport equipment.

 

Trade by mode of transport

In Q2 2024, the bulk of Nigeria’s trade was conducted via maritime transport. Exports transported by sea accounted for N19.25 trillion, or 99.14% of total exports.

Air transport played a minimal role in the export sector, contributing N73.72 billion or 0.38%, while road transport accounted for N30.72 billion or 0.16% of exports. Other transport methods, including pipelines, contributed N63.28 billion or 0.33%.

On the import side, maritime transport also dominated, accounting for N11.84 trillion or 94.94% of total imports. Air transport contributed N531.38 billion (4.66%), while road transport accounted for only N49.97 billion (0.40%) of imports.

The heavy reliance on maritime transport highlights the importance of Nigeria’s seaports in facilitating international trade.

Innoson Vehicles unveils its first locally produced electric vehicle 

Innoson Vehicle Manufacturing Company (IVM) has unveiled its first locally produced electric vehicle.

In a post on Facebook, the company’s Head of Communications and Corporate Affairs, Cornel Osigwe stated the electric vehicle was manufactured at the company’s production plant in Nnewi, Anambra state.

 

He said, “I just test drove the first Innoson vehicle Electric vehicle produced in Nnewi. We are just starting.”

 

Mr. Osigwe revealed that this marks the company’s first-ever production of an electric vehicle (EV). However, details regarding the pricing of the Innoson EV, number of units produced and the timeline for its commercial release were not disclosed.

 

Electric vehicles are a crucial technology for decarbonizing road transport, a sector responsible for over 15% of global energy-related emissions, according to the International Energy Agency (IEA).

 

In recent years, the sale of electric vehicles has seen significant growth, driven by improved range, a wider variety of models, and enhanced performance. Passenger electric cars are becoming increasingly popular, with an estimated 18% of new cars sold in 2023 being electric.

 

However, in many developing and emerging countries, sales have lagged due to the typically higher purchase costs compared to conventional vehicles and a limited charging infrastructure. Despite this, the increase in petrol prices following the deregulation of the downstream sector of the petroleum industry might present an opportunity for investors in the EV space if the price of charging proves lower than refueling of petrol vehicles.

 

Nigeria’s EV history

In 2021, Nigeria introduced its first locally assembled electric vehicle, the Hyundai Kona, produced by Stallion Motors. This milestone followed the launch of a pilot program by the National Automotive Industry Design and Development Council (NADDC) in collaboration with the Stallion Group and other stakeholders, aiming to establish 100 solar-powered electric vehicle charging stations across the country.

 

The debut of the Hyundai Kona marked a significant step forward for Nigeria’s automotive industry, opening up new opportunities as the world shifts away from petrol-powered vehicles in response to climate change and efforts to reduce emissions.

 

Power challenges to EV deployment in Nigeria

Despite steps from Hyundai in EVs, Nigeria barely generates enough electricity for households and industries. The country only manages to generate around 5,000 Megawatts of electricity despite its energy demands reaching around 40 terawatts of power.

 

The World Economic Forum (WEF) reports that Nigeria currently faces one of the highest levels of energy poverty globally. Only 25% of rural populations have access to electricity, with most relying on biomass and waste as their primary energy source for cooking.

 

At the same time, Nigeria has one of the world’s highest electricity costs, averaging $0.52 per kilowatt-hour (kWh). According to a recent report by the International Energy Agency (IEA), Nigerians have had to rely on backup generators to meet a substantial 40% of their electricity needs.

 

FINTECH: Kuda launches virtual PoS for SMEs

Kuda, through its Kuda Business platform, has introduced virtual and physical point-of-sale products aimed at easing payment processing for freelancers, and small, and medium-sized enterprises.

In a statement on Tuesday, the newly launched payment solutions, according to the company, are designed to help businesses accept payments faster while addressing major challenges like delayed payment confirmations and fragmented banking services that many SMEs face.

 

It added that the Virtual PoS allowed business owners to process payments at scale using just account numbers, eliminating the need for physical hardware.

 

“This innovative solution is appealing to businesses looking to expand their operations while minimising costs, as it allows the creation of multiple free terminal account numbers. These unique account numbers can be assigned to sales staff, who will receive instant payment confirmations through email, text message, or directly on their phones when customers make payments,” the firm stated.

 

It noted that those devices were designed to handle card payments and bank transfers with the added benefit of instant settlement, allowing businesses to gain immediate access to their funds after transactions.

 

Speaking about the launch, Vice President of Product and Innovation at Kuda, Nosa Oyegun, said: “Our goal with the physical and virtual PoS terminals is to empower Nigerian SMEs with tools that not only simplify payment processes but also enhance their overall business efficiency. The virtual PoS, in particular, represents the future of payment processing, eliminating the need for hardware and reducing costs while ensuring that businesses receive payment alerts instantly.

 

“For businesses that require face-to-face transactions, our hardware POS offers speed and reliability, which are crucial for SMEs. We are committed to addressing the unique pain points faced by Nigerian businesses, such as delayed payment confirmations and fragmented banking services.”

 

Oyegun noted that the introduction of those POS solutions was a testament to Kuda Business’ commitment to supporting the growth of Nigerian SMEs.

BREAKING: FG sues four Nigerian crypto dealers for trading USDT against Naira without Banking license 

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.

 

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.

 

More Insight

The case stems from the EFCC’s ongoing investigation, which revealed that several bank accounts are linked to individuals allegedly using virtual cryptocurrency exchange platforms to manipulate the value of the naira illegally and launder proceeds from unlawful activities.

 

The EFCC had previously filed a motion before Justice Nwite to preserve the accounts and funds in the identified bank accounts pending the conclusion of the investigation and prosecution.

 

The court granted an interim order freezing over 1,000 accounts listed in the EFCC’s motion filed on April 24, 2024, for a period of ninety days, commencing from April 25, 2024, to July 23, 2024.

 

An affected party later applied to have several of the freezing orders lifted, and the court granted the request.

 

However, the EFCC filed a fresh motion to freeze certain bank accounts and continue its investigation, having filed criminal charges against some operators of the accounts.

 

This motion was granted by the court on September 4, 2024.