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NIMC to upgrade software as NIN hits 107 million

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NIMC to upgrade software as NIN hits 107 million

The National Identity Management Commission (NIMC) has said that 107.33 million Nigerians have been enrolled into the National Identification Number (NIN) database as of May 2023.

 

This is an increase of 3.18 million from the 104.16 million recorded as of December 31, 2023.

 

The Director of Database at NIMC, Mr. Femi Fabunmi, disclosed this during a press briefing on Friday in Abuja, saying: “As of this morning, the total enrolment in our database is 107,338,044.”

 

The increase is likely triggered by an announcement by the Central Bank of Nigeria (CBN) that all bank accounts without BVN or NIN would be frozen from April 2024.

 

In a circular by the apex bank in December 2023, it instructed banks to place a “Post no Debit” restriction – which prevents customers from making withdrawals, transfers, or any other debits “for all existing Tier-1 accounts/wallets without BVN or NIN”.

 

‘Post No Debit’ is a term used to describe a restriction imposed by banks on specific accounts, preventing customers from making withdrawals, transfers, or any other debits from such accounts.

 

NIMC working on expanding the database

The Director-General of NIMC, Abisoye Coker-Odusote, noted that the capacity of the current database is almost exhausted and efforts are ongoing to expand the database to cover 250 million unique NINs for adults.

 

She said: “We have started to work on upgrading the capacity across all boards from the network infrastructure perspective to software licensing areas. We are working on that to increase the capacity that we have. We are trying to ensure that we increase it from 100 million to 250 million.”

 

On how long the upgrade may take, she noted: “That process will take us a minimum of six to nine months. So, it is a lot of work that needs to be done but we have commenced that process.”

 

She further lamented that a lot of the commission’s equipment is outdated and needs to be replaced and upgraded.

 

When asked about the current capacity of the database, she further clarified that although the number of NINs recorded exceeded 100 million, which is the capacity of the database, some of the data are for children, not adults, and certain data like fingerprints are not collected from children.

 

Stressing the need for upgrading the database, she said: “We are approaching the end of our capacity.”

 

The director of the database who spoke with Nairametrics briefly after the media parley also clarified that the 100 million capacity is based on licensing available for each NIN.

 

He stressed that the licensing is not required for data collected from children. This is why the database is yet to reach its 100% capacity.

 

NIMC plans to review prices

The NIMC DG also disclosed that the commission is currently reviewing the fees it offers for its services, stressing that getting NIN is free.

 

She said: “We are definitely reviewing our rates. We will not increase them too much, but we are going to review our rates.”

 

Coker-Odusote also noted that the NIMC fees have not been increased in a long time but assured that the increase will be moderate.

 

She also said that the newly launched multipurpose identity card is not free.

 

The NIMC boss also said that the NIMC is partnering with ministries like the Ministry of Agriculture to ensure more onboarding. She noted that some government agencies have been made front-end partners to help more Nigerians get their NIN.

 

Coker-Odusote also noted that some front-end partners have been found wanting for how they handled the NIN registration process, noting that investigations are ongoing on that.

 

She added that she met a debt of almost N30 billion, and this is among the issues that the commission under her is working to resolve.

 

Although NIMC said it would clear outstanding debts to front-end partners in the first quarter of 2024, the commission’s DG noted some of the partners are being engaged in a discussion to settle fines for infractions before the debts will be paid.

 

IMF recommends registering, licensing global crypto trading platforms in Nigeria 

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The International Monetary Fund (IMF) has recommended that global crypto trading platforms should be registered or licensed in Nigeria and subject to regulatory requirements.

 

It made this recommendation in the latest IMF staff country report for Nigeria, warning that the rapid growth of foreign exchange (FX) trading platforms in Nigeria poses new challenges to the country’s financial stability.

 

The IMF also noted that Nigerian authorities took significant steps at the end of February to address issues surrounding cryptocurrency trading platforms.

 

The report read: “Staff recommends that global crypto trading platforms be registered or licensed in Nigeria and subject to the same regulatory requirements applicable to financial intermediaries following the principle of same activity, same risk, and same regulation.”

 

The IMF also urged Nigerian authorities to strengthen anti-money laundering and combating the financing of terrorism (AML/CFT) preventive controls on crypto trading platforms. It emphasized the need for effective risk-based supervision of these platforms and other virtual asset service providers.

 

FG says illicit flows through crypto platforms pressure exchange rate

During discussions with the IMF team, the Nigerian authorities noted the need to stabilize the FX market through critical reforms.

 

Acknowledging mounting pressure on the exchange rate due to illicit flows via crypto platforms, the authorities highlighted the significance of maintaining external stability.

 

They pointed out that recent reforms and efforts to attract FX liquidity, including a mandate requiring international oil companies to hold 50% of repatriated oil receipts in Nigeria for 90 days, were designed to achieve this goal.

 

The Nigerian government admitted that illicit flows through cryptocurrency platforms are exerting undue pressure on the exchange rate. Consequently, the authorities have moved to implement stricter controls on crypto platforms and reinforce compliance with existing FX regulations.

 

The report read: “The authorities agreed with the importance of maintaining external stability and emphasized that the reforms which they have implemented as well as efforts to bring in FX liquidity—including the requirement for international oil companies to hold 50 percent of repatriated oil receipts in Nigeria for 90 days—are geared towards that end. They see pressure on the exchange rate now coming from illicit flows, including through crypto asset platforms, and not being driven by fundamentals, noting that some ceilings on FX access are intended to curb abuse.”

 

More Insights

South Africa was reported to lead the way in cryptocurrency regulation by licensing approximately 60 digital-asset platforms, positioning itself as one of the first nations on the continent to mandate permits for crypto exchanges.

With Nigeria accounting for about 66.8% of the Africa’s cryptocurrency interest, the Office of the National Security Adviser (ONSA) classified cryptocurrency trading as a national security issue. Also, the Central Bank of Nigeria (CBN) directed four fintech startups operating in the country—Opay, Moniepoint, Paga, and Palmpay—to block the accounts of customers engaging in cryptocurrency transactions and to report those transactions to law enforcement agencies.

Earlier in February this year, crypto trading platform, Binance, had to disable its peer-to-peer feature for Nigerian users as it came under the searchlight of the Nigerian government over allegations of currency manipulation and money laundering.

Meanwhile, the Nigerian Securities and Exchange Commission (SEC), during a virtual meeting with the Blockchain Industry Coordinating Committee of Nigeria (BICCoN), called for a new cryptocurrency measure that aims to remove the naira as a currency pair from cryptocurrency peer-to-peer platforms.

 

Don’t use telecom as palliative for economic woes, ALTON tells Nigerian government

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Don’t use telecom as palliative for economic woes, ALTON tells Nigerian government

The Association of Licensed Telecom Operators of Nigeria (ALTON) has advised the federal government not to use the telecoms sector as a palliative to solve the current economic woes in the country.

 

ALTON Chairman, Gbenga Adebayo, made this call during his address at the Groupe Spécial Mobile Association (GSMA) digital economy report launch which took place in Abuja.

 

This comes against the backdrop of the clamour for a telecom tariff increase and the stance of the government.

 

According to Adebayo, the telecom industry faces numerous challenges that hinder its growth and development. He emphasized the need for sustainable investment, effective regulation, and a conducive business environment to drive progress.

 

Need for price review

Emphasizing the need for a review of the current tariff regime in the telecom sector, Adebayo said, “The price review should be a simple regulatory process. The public debate this has gained makes it appear the industry is insensitive to people’s concerns.

 

“While the government tries to provide incentives for the public on account of ongoing macroeconomic headwinds, the telecoms sector should not be used as a palliative to solve the people’s problem. We must price right to sustain the industry; we must price right to have the right investment.”

 

Adebayo highlighted the existence of over 45 associated charges and levies on operators, despite the claims of right-of-way costs by some states.

 

He said that it creates an unfavourable business environment, discouraging investment and hindering the industry’s ability to deliver quality services.

 

He also stressed that regulatory interference and the lack of independence for the regulator exacerbate the problem.

 

He added that the industry must be allowed to operate sustainably, with the right investment and regulation, to deliver quality services and drive economic progress; encouraging stakeholders, including policymakers, regulators, and operators, to work together to address the challenges facing the industry to drive economic growth, and fulfil its potential as a critical sector in Nigeria’s economy.

 

What the government is saying

Meanwhile, the Federal Government has faulted the proposal by the telecommunications companies to raise their tariffs, noting that increasing data, voice, and text message prices is not the “sole or optimal solution” to the sector’s challenges.

 

The Minister of Communications Innovations and Digital Economy, Bosun Tijani, who responded to the telecom operators’ proposal at the GSMA event, urged the companies to explore innovative solutions to counter inflationary pressures and high operating costs.

 

“We have to deepen and address so many of these things. The solutions to these things will not come from one single thing, which is raising the tariff, that’s never going to be the solution. There are tons of other things that can be done to ensure that the business environment is conducive for the investors in this phase and the government is articulating that including the tariff conversation.

 

“The government may intentionally put out the right messages, the right policies, and the right intentions but if everything that is coming from the association on just one issue is extremely negative, investors will not come in. Investors will not help. And if we go back to my very clear point, I’ve not seen anything more in what you are demanding that is difficult,” the Minister said.

 

Economic expert’s perspective

While the government has not seen the need for price review in the telecom market, an economic expert and Chief Executive Officer of Financial Derivatives Company Limited, Mr. Bismarck Rewane, earlier this week explained why the operators should be allowed to increase tariffs.

 

According to him, the last time there was a telecom price review was in 2013, and the prices of every other service in Nigeria have gone up in multiple-folds since then.

 

Rewane said the current tariff regime is inhibiting the operators’ capacity to invest more in infrastructure, hence, the quality of their services has been deteriorating in recent times.

 

He added that poor telecom services, would not only affect the telecom subscribers but the economy at large.

 

 

FG’s plan to issue domestic dollar bond may pressure naira – IMF

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FG’s plan to issue domestic dollar bond may pressure naira – IMF

FG’s plan to issue domestic dollar bond may pressure naira – IMF

Sami Tunji

The International Monetary Fund (IMF) has expressed concerns over the Nigerian government’s strategy to issue domestic dollar-denominated bonds, according to the recently published IMF staff country report for Nigeria.

 

The Fund warns that this move could exacerbate pressures on the naira and elevate the costs associated with naira securities.

 

FG revises Medium-Term Debt Strategy

The report noted the federal government’s plan to revise its Medium-Term Debt Strategy, developed in collaboration with the IMF and World Bank Capacity Development (CD).

 

The revision aims to bolster the issuance of medium-term securities and Eurobonds while maximizing multilateral and bilateral support.

 

The report read: “With monetary tightening and elevated external financing costs, interest expenditures will go up. The authorities are updating their Medium-Term Debt Strategy with IMF/WB CD, seeking to increase issuance of medium-term securities and Eurobonds, while maximizing multilateral and bilateral support.

 

“The government plans to issue domestic FX securities to bring onshore dollar liquidity to the official market, which could lead to market fragmentation, increase the cost of naira securities, and add to pressures on the naira.”

 

Risk of market fragmentation

The IMF also noted that the federal government’s plan to introduce domestic foreign exchange securities, intended to enhance dollar liquidity in the official market, could fragment the market.

 

The IMF advised the Central Bank of Nigeria (CBN) to develop a foreign exchange intervention framework to mitigate excessive volatility in the naira, given the limited depth of Nigeria’s foreign exchange market.

 

The report stated: “Domestic issuance of FX denominated government securities is likely to lead to market fragmentation and weaken the transmission mechanism. The CBN should develop an FXI framework to smooth excess naira volatility, given the shallow nature of the FX market.”

 

The Minister of Finance, Wale Edun, announced the government’s plan to market foreign exchange bonds to Nigerians both at home and in the diaspora.

Edun explained that the delay in issuing the bonds was due to the government’s desire to establish confidence in its fiscal strategy and earn the trust of citizens who are sceptical of government policies.

If the government proceeds with the domestic dollar bond issuance in the second quarter of this year, it may be at a time when the naira is struggling against the US dollar.

The exchange rate between the naira and the dollar closed the week at N1,466/$1, reaching a two-month low as a stronger dollar continues to outpace global currencies.

The exchange rate has now weakened by a significant 26.8% since reaching its strongest point of N1,072/$1 in April when it was declared the best performing currency by the apex bank.

The closing rate of N1,466/$1 marks the lowest level the naira has touched since March 20th, when it was at N1,492/$1. This confirms that all the gains recorded in April have been erased.

The exchange rate strengthened to a yearly high of N1,072/$1 on April 17th, providing a glimmer of hope for many Nigerians that the central bank’s forex policies were effective.

This peak coincided with the Central Bank governor’s press briefing at the IMF, where he stated that there was no intention to defend the naira following a drop in external reserves.

Africa’s richest man, Aliko Dangote, adds $5.2 billion to net worth in nearly four years 

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Africa’s richest man, Aliko Dangote, adds $5.2 billion to net worth in nearly four years 

Over the course of nearly four years, Aliko Dangote, President of Dangote Group and Africa’s richest man, has witnessed a substantial growth in his net worth, with an increase of approximately $5.1 billion.

 

This significant uptick was revealed through an analysis conducted by Nairametrics, utilizing data from the Forbes Real-Time Billionaire Index.

 

Dangote’s net worth has jumped by 61.45% from 2020 to 2024. In 2020, his valuation was $8.3 billion, and as of May 9, 2024, it had soared to $13.5 billion.

 

Taking a closer look at the economic landscape, the exchange rate between the naira and the dollar has experienced fluctuations during this time frame.

 

In 2020, the exchange rate averaged around N380.2/$, with fluctuations hitting an all-time low of N361.2/$ as of January 16, 2020. These currency dynamics have undoubtedly played a role in shaping the financial landscape for Dangote and other investors during this period.

 

A foray into the progression of Dangote’s net worth over the past four years reveals a mix of growth and decline. For instance, in 2020, he began the year with a net worth of $8.3 billion, and by 2021, it had notably increased to $11.5 billion, indicating a 38.5% increase. Throughout this period, the naira fluctuated but remained relatively stable around N381/$.

 

Optics

In 2022, Aliko Dangote’s net worth soared to $14 billion, marking a substantial 21.7% increase compared to the previous year. By 2023, his wealth had climbed, reaching an impressive $14.2 billion. However, this upward trajectory faced a significant challenge as economic dynamics shifted.

 

In 2022, the Nigerian Naira experienced a significant depreciation, crossing over to N448/$. By 2023, the free float of the Naira led to a staggering 68% loss in its value, a profound downturn attributed to the implementation of the foreign exchange unification policy, as reported by Nairalytics.

 

By January 2024, the official foreign exchange rate has surged to N1455.59/$, marking a substantial depreciation from the previous rate of N464.67/$ in May 2023. This rapid devaluation took its toll on Dangote’s wealth, causing it to drop to $13.5 billion, a notable 5.6% decline. A significant portion of Dangote’s wealth is denominated in dollars.

 

The majority of Dangote’s net worth is tied to his conglomerate, particularly his 85% ownership of publicly-traded Dangote Cement. With an annual production capacity of 48.6 million metric tons and operations spanning 10 African countries, Dangote Cement stands as a cornerstone of his wealth.

 

What you should know

Despite Nigeria’s staggering 33.2% inflation rate in March 2024, business magnates like Dangote faced intense pressures on consumer purchasing power and operational costs. However, amidst these challenges, Dangote’s companies have demonstrated remarkable resilience.

 

In the first quarter of 2024, Dangote Cement emerged as Nigeria’s most capitalized firm, boasting a valuation of N10 trillion.

 

Dangote Cement Plc experienced an extraordinary surge in its share price, skyrocketing by 114.7% during the quarter. From N319.90 at the beginning of the quarter, the share price surged to N686.70, reflecting investor confidence and optimism in the company’s prospects.

 

Furthermore, the group’s market capitalization witnessed a staggering appreciation, climbing from N5.45 trillion to N11.70 trillion within the same period, marking a remarkable increase of N6.25 trillion.

 

Dangote Cement’s dominance in the Nigerian Stock Exchange (NGX) also witnessed a notable uptick, with its market share soaring from 13.32% to 19.79% by the quarter’s end.

 

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Crypto P2P: CBN’s policies opened doors for manipulators -Experts

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Crypto P2P: CBN’s policies opened doors for manipulators -Experts

Experts and stakeholders in the blockchain industry have blamed the ongoing events around crypto trading in Nigeria on the policies and actions of the Central Bank of Nigeria (CBN), which tends to distance the regulator from the market.

 

According to them, the stance of the banking regulator could create a Pandora’s box of challenges that could open doors for bad actors.

 

They claim the ban may now allow those bad actors who were involved in currency manipulation through crypto trading to even inflict more damage on the economy.

 

The activities of the bad actors is believed to be denting the image of several legitimate players in the industry.

 

This comes as concerns mount over plans by the government to ban peer-to-peer (P2P) crypto trading in the country. Although some experts believe that banning P2P may not be feasible as people can exchange money under any guise, players in the industry are concerned that an outright ban would affect several platforms built to facilitate legitimate transactions.

 

Speaking on the current developments in the industry, the Co-founder of Convexity, a blockchain solutions company, Adedeji Owonibi, said the CBN under the former Governor, Godwin Emefiele, created the P2P market when he shut out banks from crypto transactions.

 

“The former CBN Governor sent everybody away to P2P because people could use the banking rates. P2P is a creation of the central bank and directly so because as a matter of fact if they had not stopped it, people would have been trading within different cryptocurrency exchanges that are interacting with the banking system. This opened the doors for all kinds of people in the P2P market.

 

“Now, we have a lot of bad actors that are giving everybody a bad name. The industry players operating legitimately will need to expose the bad actors and let the government know them,” Owonibi said.

 

Failure to regulate

Owonibi’s thoughts aligned with that of the President of Stakeholders in Blockchain Association of Nigeria (SIBAN), Obinna Iwuno, who argued that if the CBN had regulated the industry, there would have been no rise in P2P because everybody would have been trading through regulated agencies and exchanges.

 

According to him, with accusing fingers pointed at P2P as sabotaging the economy, there might be more troubles for the industry, except the government sees the need to regulate it.

 

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“What we are seeing currently is not the action of our industry, but because certain things have been made to look as though this is what our industry represents.

 

“Accusing fingers are being pointed at us when we are not guilty and it is one that we have to deal with because if we don’t deal with it, it has the possibility of spreading even further than it is now and hurting the industry more than it is already,” he said.

 

P2P and KYC

For the founder of Blockchain Nigeria User Group, Mr. Chuta Chimezie, the major issue in the blockchain industry is CBN’s inability to look into what the players are doing. He believes the exchanges handling P2P transactions are doing adequate KYC that could help the regulator in regulating the industry.

 

“Every exchange that I know that does p2p transaction does 100% KYC and they comply maximally to all the standards that the financial reporting standards outline for them to operate. But the problem here is that the industry is still like a ghost to the central bank.

 

“So, because they are not interfacing with that industry, they don’t even know the effort the people are putting in place. How will the CBN know if they don’t allow them to come under their regulation?

 

“These guys are dealing with financial services. They are dealing with financial instruments, so bring them into the regulatory environment, make them your friends, make them part of the financial system, and it will be easy for you to know who is doing what,” he said.

 

Banning P2P

On plans to ban crypto P2P trading in Nigeria, Chimezie said the P2P market in Nigeria has now grown to become an extension of the forex black market. According to him, an outright ban would not help the country because people would always find ways around it by leveraging technology.

 

But he agreed that there has to be an intervention from the government to save the nation’s currency.

 

“First of all, we are all Nigerians before being traders and the spirit of patriotism will drive us to agree that no responsible government will fold its hands and allow its national currency to be determined by the agreed level of traders in any platform.

 

“So, we agree that something needs to be done about that. We agree that there should be regulation and everyone who is involved in issuing, transmitting, or driving any aspect of digital assets should come into a regulatory environment.

 

“But it doesn’t have to be an outright ban because we’re dealing with a different kind of asset class because when you outrightly ban it, people will find a way to transact it and there’s nothing you can do about it,” he said.

 

The backstory

Recently, Nigeria’s National Security Adviser (NSA) classified cryptocurrency trading as a national security issue. Following this, the Central Bank of Nigeria (CBN) directed four fintech startups operating in the country—Opay, Moniepoint, Paga, and Palmpay—to block the accounts of customers engaging in cryptocurrency transactions and to report those transactions to law enforcement agencies.

 

Earlier in February this year, crypto trading platform, Binance, had to disable its peer-to-peer feature for Nigerian users as it came under the searchlight of the Nigerian government over allegations of currency manipulation and money laundering.

 

Meanwhile, on Monday, the Nigerian Securities and Exchange Commission (SEC), during a virtual meeting with the Blockchain Industry Coordinating Committee of Nigeria (BICCoN), called for a new cryptocurrency measure that aims to remove the naira as a currency pair from cryptocurrency peer-to-peer platforms.

 

The Acting Director General of the SEC, Dr. Emomotimi Agama, who made the call, emphasized the need to clean up the virtual assets space from illegal trading activities and safeguard the integrity of the Nigerian capital market. Agama noted that the recent surge in peer-to-peer (P2P) crypto trading has reportedly impacted the Naira’s exchange rate, prompting the SEC to consider delisting the Naira from P2P platforms to curb market manipulation.

 

Zenith Bank appoints Adamu Lawani and Louis Odom as executive directors

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Zenith Bank appoints Adamu Lawani and Louis Odom as executive directors

The Board of Directors of Zenith Bank Plc has announced the appointments of Mr. Adamu Saliu Lawani and Mr. Louis Odom as Executive Directors ofthe Bank.

 

Both appointments are consistent with the Bank’s tradition and succession strategy of grooming leaders from within.

 

Also, the Board approved the appointment of Ms. Pamela Yough as a Non-Executive Director of the Bank.

 

This was contained in the company’s notice to the Nigerian Exchange Limited (NGX) seen by Nairametrics.

 

According to the statement, these appointments have been approved by the Central Bank of Nigeria (CBN).

 

Profile of Adamu Saliu Lawani

According to the statement signed by the Company Secretary, Micheal Otu, Mr. Adamu Saliu Lawani is a seasoned Chartered Accountant with over three decades of cognate banking industry experience.

 

An alumnus of Auchi Polytechnic, Nigeria, he graduated with a Higher National Diploma in Accounting, achieving distinction.

 

He holds an MBA from both the University of Lagos, Nigeria, and The Business School in the Netherlands.

 

Mr. Lawani joined Zenith Bank in 1996 and has experience in operations, credit, and marketing.

 

He has held leadership positions in various groups such as Corporate Banking, Conglomerate, Consumer Credit Department, Export and Trade Finance Department, and Agriculture Finance Department, among others. His contributions have significantly enhanced the bank’s growth and profitability.

 

Committed to continuous professional development, he has participated in Executive Education programmes at prestigious institutions, including the London Business School, The Wharton School, the University of Pennsylvania, INSEAD Business School, France, and Lagos Business School.

 

He is a Fellow of the Institute of Chartered Accountants of Nigeria (ICAN), a Fellow of the Institute of Credit Administration, a Fellow of the Nigerian Institute of Management, a Fellow of the Chartered Institute of Strategic Management, an Honorary Senior Member of the Chartered Institute of Bankers of Nigeria, and an Associate Member of the Chartered Institute of Taxation of Nigeria.

 

Profile of Louis Odom

Mr. Louis Odom is a graduate of Accountancy from the Abia State University and has an MBA from the University of Liverpool, United Kingdom, and an M.Phil (Management) from Nile University of Nigeria.

 

He joined Zenith Bank in January 1997 and has worked in River/Bayelsa Zones and is currently in Abuja, FCT, where he serves as the General Manager in charge of the Abuja and Northern Zones and has contributed to the growth and profitability of the Bank. Prior to joining Zenith Bank, he had worked at Diamond Bank and is well-versed in operations, credit, and marketing.

 

He has attended several Executive Education programmes both within and outside the country, including London Business School, Wharton School of the University of Pennsylvania, Harvard Business School, and Lagos Business School.

 

He is a Fellow of the Chartered Institute of Taxation of Nigeria, and an Honorary Senior Member of the Chartered Institute of Bankers, Nigeria.

 

Profile of Pamela Yough

Pamela Yough is a Banker, Financial Consultant, and Investment Advisor with over 35 years of experience in the Financial Sector. Her experience covers Corporate and Investment Banking, Treasury, Correspondent Banking, Investor Relations and Wealth Management.

 

She was the Managing Director/ Chief Executive Officer of Zenith Bank (UK) Limited, a position she held from June 2017 to October 2021.

 

She joined Zenith Bank Plc in 1999 where she headed various departments in the institution and rose to the level of General Manager. and Group Head in charge of Multilateral, Conglomerates, Private Banking, and Head of Investor Relations.

Africa requires human capital investment to nurture next generation of leaders – EU

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Africa requires human capital investment to nurture next generation of leaders – EU

“Young people must involve themselves in driving policy that shapes the future. The first EU Youth Action Plan is thus a toolbox to engage, empower, and connect youth around the world.”

 

She also stated that the EU is aware of Africa’s rising prominence on the global stage evident in its growing diplomatic involvement, expanding presence in multilateral forums, and increasing demand for representation in institutions like the UN Security Council.

 

This trend is underscored by the recent visits of high-ranking officials from the US, China, and Russia to the continent, she noted.

 

Recognizing Africa’s escalating significance, she pinpointed the EU’s commitment to substantial resources to the continent through initiatives like the €300 billion “Global Gateway,” with a significant portion allocated specifically for Africa.

 

Africa’s growth

According to her, Africa’s growth is predicated on the report that indicates that, by 2030, the continent will constitute 20% of the world’s population, with a majority under the age of 20.

 

This demographic dividend presents both opportunities and challenges, necessitating the creation of millions of jobs annually and emphasizing the importance of education and skills development.

Urpilainen stated that Africa is experiencing growth, which is crucial for the EU to take notice.

For instance, in less than seven years, the African population is projected to represent 20% of the world’s 8.55 billion people. Over 55% of the continent’s population will be under the age of 20, and 75% of the world’s under-35 population will reside in Africa.

Consequently, Urpilainen said that this demographic shift implies the need to create approximately 20 million jobs annually, impacting mobility patterns in pursuit of education and improving living standards.

She said that by 2030, Africa could surpass both China and India in terms of employed population.

 

Up-skilling Africa’s workforce

However, the advantage of Africa’s youthful demographic can only be realized through education and skill development.

 

She posited that enhanced education not only stimulates market growth but also boosts incomes and facilitates the mobility of skilled labour. If leveraged through education, skills, and job training, this untapped workforce has the potential to transform from a demographic challenge into a valuable resource driving sustainable human development.

 

A well-educated and skilled workforce not only drives economic growth but also fosters stability and resilience against radicalization and external interference.

 

Partnering with African youths

Beyond economic considerations, the EU emphasizes education and engagement with African youths as fundamental aspects of this partnership.

For example, the EU Youth Action Plan, part of the Global Gateway initiative, aims to empower young Africans to shape their own futures, acknowledging the pivotal role of Africa’s youthful demographic in shaping global dynamics.

Despite existing EU-Africa partnerships and training programs, such as Erasmus Mundus and Erasmus+, the EU trails behind other global players like the US and China in investing in African youth leadership development. Initiatives like the Young African Leaders Programme demonstrate promising potential but require increased funding and scalability to meet the demand.

It has therefore become imperative to close the gap between strategic intentions and actionable initiatives for realizing the full potential of EU-Africa cooperation.

Investing in Africa’s youth not only secures a prosperous future for the continent but also strengthens Europe’s global standing. Collaborative efforts to equip young Africans with the necessary skills and resources for effective leadership have the potential to enhance the influence of both continents on the world stage.

IRC Report: An estimated 16% of Nigerians to face “severe” food insecurity by June 2024

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IRC Report: An estimated 16% of Nigerians to face “severe” food insecurity by June 2024

IRC Report: An estimated 16% of Nigerians to face “severe” food insecurity by June 2024

The latest report from the International Rescue Committee (IRC) and its partners says that around 16% of Nigerians will face severe food insecurity or hunger between June and August 2024.

 

The figure for 2024 is higher when compared to the report for 2023 and denotes the increasing spate of hunger and the worsening living conditions across not just Nigeria but West and Central Africa.

 

According to the report, the total number of people across West and Central Africa to face food insecurity during the period also referred to as the lean season stands at a staggering 52 million- about 12% of the analysed population.

 

For Nigeria, the report noted that around 32 million people will face severe hunger put at crisis level or emergency food insecurity.

 

It states,

 

“Looking ahead, the projected outlook for the period June-August 2024 appears even more severe: nearly 52 million people across the 17 analyzed countries are anticipated to face phases 3 to 5 during the lean season of June-August. This translates to 12% of the analyzed population struggling to meet their basic food and nutrition requirements.”

 

“These countries include Mauritania (656 652, 14%), Burkina Faso (2 734 196, 12%), Niger (3 436,892, 13%), Chad (3,364,453, 20%), Sierra Leone (1,569,895, 20%), and Nigeria (31,758,164, 16%).”

 

States to be affected

Furthermore, the report noted that food insecurity would be more severe in the northern states of Sokoto and Zamfara where the IPC analysis described the situation as critical, with over 15% of children experiencing acute malnutrition.

 

Recommended reading: 10 food items with over 100% increase in the last one year!

Causes

The IRC attributed the cause of the severity of food insecurity across the Sahelian region to insecurity, climate change, and worsening macroeconomic conditions, especially on the inflationary front.

 

In January 2024, the average inflation rate in the region stood at 21%- an increase from 18% recorded in the same period of 2023. Worse still are countries like Sierra Leone which have seen inflation levels rise to 54%.

 

What you should know

Earlier in the year, the World Bank, in its food security report for Nigeria, projected that seven states in the North will face severe food security problems with the spate of food inflation and insecurity across the food-producing states.

 

While the Boko Haram insurgency greatly affected food production in the Northeast leading to the destruction of farmlands, the farmer-herder crisis and banditry have significantly affected food production across the Northwest and Northcentral regions.

Insecurity coupled with disruptions in global food supply chains has pushed food inflation in Nigeria to 40.01% in the month of March.

Recommended reading: Inflation: Able Nigerians beg to survive economic hardship

 

Shell Nigeria paid $1.09 billion tax, royalties to FG in 2023- Official

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Shell Nigeria paid $1.09 billion tax, royalties to FG in 2023- Official

Shell has revealed that it paid the sum of $1.09 billion in corporate taxes and royalties to the Federal Government in 2023, highlighting its significant financial contribution to Nigeria’s economy.

 

Shell’s Media Relations Manager, Mrs. Abimbola Essien-Nelson, disclosed this on Tuesday in Lagos based on reports by News Agency of Nigeria

 

Essien-Nelson highlighted that these payments were made through the operations of two key subsidiaries: the Shell Petroleum Development Company of Nigeria Ltd. (SPDC) and the Shell Nigeria Exploration and Production Company of Nigeria Ltd. (SNEPCo).

 

According to her, SPDC contributed $442 million, while SNEPCo remitted $649 million, reflecting a substantial fiscal contribution from both entities. Comparatively, in 2022, similar payments from these companies totaled $1.36 billion.

 

“These payments are Shell exclusive and do not include those made by our partners,” remarked Managing Director and Country Chair, Shell Companies in Nigeria, Osagie Okunbor.

 

Okunbor reiterated Shell’s dedication to fostering economic development and supporting local businesses, reaffirming the company’s longstanding presence in Nigeria, where it has invested for over six decades.

 

What to know

Essien-Nelson further elaborated that the 2023 Shell briefing notes provide a comprehensive overview of the progress made by various Shell subsidiaries in Nigeria, including SPDC, SNEPCo, Shell Nigeria Gas, and Daystar Power. These reports underscore the companies’ concerted efforts to drive socio-economic development, foster stakeholder collaboration, and provide cost-effective and environmentally friendly energy solutions.

 

Emphasizing Shell’s ongoing commitment to Nigeria’s energy sector, Okunbor stated, “It is important to emphasize that Shell is not leaving Nigeria and will remain a major partner of the country’s energy sector through its deep-water and integrated gas businesses.” He reiterated the company’s unwavering focus on maintaining safe operations and prioritizing the well-being of its workforce.

 

Shell’s disclosure of its significant tax and royalty payments reiterates the pivotal role played by multinational corporations in contributing to national revenue and economic development, while also highlighting the complex interplay between corporate interests and governmental fiscal policies.

 

Backstory

Nairametrics initially reported that in 2023, Shell was a major contributor to Nigeria’s revenue, with the country emerging as the top recipient of payments from the oil giant.

 

The figures reveal that Nigeria received a substantial sum of approximately $4.92 billion from Shell, encompassing various financial components such as company income taxes, fees, royalties, and production entitlements stemming from diverse projects within the country.

 

This notable figure represented a significant uptick from the $4.52 billion disbursed to Nigeria by Shell in the preceding year, marking a $408 million increase in payments.

 

Shell’s financial contributions extended beyond Nigeria, with the company’s total payments to governments across 27 countries reaching approximately $29.51 billion in 2023. Following Nigeria, Oman and Norway emerged as the second and third highest recipients, receiving payments of $4.09 billion and $3.81 billion respectively.

 

Shell’s Integrated Gas and Upstream Director, Zoe Yujnovich, confirmed this in a statement earlier in the year, where he highlighted the significance of the deal, emphasizing the company’s focus on streamlining its portfolio and directing disciplined investments towards deepwater and integrated gas ventures in Nigeria.

 

This move aligns with Shell’s strategic objective to exit the challenging operating environment i in the Niger Delta region.

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