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FG Receives $2.25bn From Afreximbank’s $3.3bn Loan

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The federal government on friday, obtained $2.25 billion from the African Export–Import Bank (Afreximbank) as part of a $3.3 billion foreign exchange (FX) facility.

The awaited financial support aims to alleviate the severe shortage of foreign exchange in the country, a situation that has hindered economic activities and dampened investor confidence.

President Bola Tinubu had previously reassured Nigerians in December of his administration’s dedication to addressing FX backlogs by injecting funds into the market.

During the 2023 Bank Directors’ Summit in Abuja, Tinubu emphasized the significance of funding liquidity in the FX market, acknowledging it as a crucial but short-term measure essential for the current state of the economy.

However, there were apprehensions among investors and stakeholders regarding the government’s seeming deviation from its initial pledge to inject between $7 billion to $10 billion into the FX market.

This deviation raised concerns as the existing backlogs continued to affect investor confidence in the economy.

Tinubu, represented by Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, reaffirmed at the summit that there was no shift from the earlier indications given, emphasizing that the process simply required time.

He highlighted the government’s efforts to attract funds aimed at bolstering liquidity in the FX segment.

Yesterday reception of the first part of the funding intervention provided substantial relief to both the federal government and investors, marking a positive development.

The first portion of the funds, as reported, was deposited into the federal government’s account, with the remaining $1.05 billion scheduled for payment next week.

Addressing ARISE News, the minister highlighted that Afreximbank would announce the disbursement timing when appropriate.

He mentioned exploring various support mechanisms aimed at enhancing both government finances and FX liquidity, expressing optimism about Nigeria’s progress in the right direction.

Afreximbank leads the $3.3 billion loan arrangement, with additional participation from sub-lenders such as VITOL, Guvnor, Sahara Energy Group, Oando, and United Bank for Africa, contributing $100 million.

In a previous announcement in August, the Nigerian National Petroleum Company Limited (NNPC) disclosed securing a $3 billion emergency loan from Afreximbank to stabilize the country’s volatile foreign exchange market.

This recent agreement follows NNPC’s earlier attainment of a $5 billion corporate finance commitment from Afreximbank, aimed at funding significant investments in Nigeria’s upstream sector, over a year ago.

While NNPC’s statement lacked details regarding the FX installment volumes and the quantity of crude oil for repayment, the agreement aimed to enhance foreign exchange liquidity and strengthen the naira against the dollar.

Analysts and business leaders lauded Afreximbank’s initiative to address the country’s FX liquidity challenges, acknowledging the potential of these funds to mitigate exchange rate fluctuations and alleviate increasing inflationary pressures.

 

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Adeleke, Sanwo-Olu Jaw-Jaw Over Lagos’ Deportation To Osun

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Osun State Governor, Senator Ademola Adeleke has been in strong conversations with his Lagos State counterpart, Babajide Sannwo-Olu over the alleged deportation of Osun indigenes from Lagos.

A statement from the government of Osun State highlighted that Sahara Reporters had on Saturday published a story about several luxury buses dropping hundreds of youth at Ilesa after allegedly rounding them up in several parts of Lagos State.

According to the statement, “The report was confirmed by an investigation team set up to confirm the veracity of the story by the Osun State Government.”

This, it was gathered has prompted strong conversations between the governors of the two states, which led to the Sanwo-Olu assuring that the matter would be thoroughly investigated.

On the authenticity of the report, Osun State, declared, “The state team reported that eye witness accounts confirmed the dropping of the youths in several luxurious buses by a team suspected to be from Lagos State.

“The state’s report showed that the youths were systematically dropped at Ilesa-Akure Express junction, Breweries; Ilesa – Ibodi – Iginla to Ife Express junction; Osun Ankara Express junction; Imelu Express junction; and Iperindo Express junction.”

It was gathered that Gov Adeleke expressed shock at the development, urging Governor Sanwoolu to look into the matter and put an end to it if the report is true.

Gov Adeleke said, “I spoke with my brother, Governor Sanwo-Olu on the matter. He too was surprised and he denied ever authorizing any such action.

“Governor Sanwo-Olu has promised immediate investigation to unravel the facts of the situation. The Lagos team will update us as quickly as possible.

“I am subsequently directing our security agencies in Osun to mount surveillance in and around Ilesa to track the deported youths and their destinations.

“I will update our people on this development. I urge residents to be calm while the security agencies carry out surveillance.”

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Chaos As Edo Speaker Suspends Shaibu’s Ally, Two Others

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In response to allegations of a conspiracy to impeach him and other high-ranking officials of the Assembly, Speaker Blessing Agbebaku of the Edo State House of Assembly took decisive action on Monday by suspending three lawmakers.

Among those suspended is Donald Okogbe, representing the PDP in Akoko-Edo II constituency, who notably refrained from endorsing the petition that resulted in the impeachment of Deputy Governor Philip Shaibu, a close ally.

The other two lawmakers he suspended are Addeh Emankhu Isibor of the APC representing Esan North-East I, and Iyamu Bright, representing the PDP in Orhionnwon II.

Agbebaku also alleged that the trio had arranged for the presence of traditional healers at the Assembly premises on May 1st, around 1 am, purportedly for ritualistic purposes.

Agbebaku declared the indefinite suspension of the three lawmakers, asserting that external influences were driving them to disrupt proceedings and oust the Assembly’s leadership.

However, the suspension sparked tension within the House as the affected lawmakers vehemently protested against their suspension.

During a chaotic session, the three suspended lawmakers vocally objected, arguing, “Mr. Speaker, you lack the authority to unilaterally suspend any member(s) of the house. You must put it to a vote. Let the members vote on the issue.”

Following the commotion, the Speaker abruptly adjourned the plenary session.

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JUST IN: Ikeja DisCo Reduces Tariffs For Band A Customers

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In a significant development, the Ikeja Electricity Distribution Company (IKEDC) has announced a tariff reduction for its Band A customers.

Effective immediately from Monday, May 6, 2024, customers in Band A will see their tariff lowered to N206.80 per kilowatt-hour, down from the previously approved rate of N225/kWh by the Nigerian Electricity Regulatory Commission.

This decision, disclosed by IKEDC spokesperson Olufadeke Omo-Omorodion on Monday, marks a proactive measure by the company to provide relief to its Band A customers.

Notably, while this adjustment ensures a minimum of 20-hour daily power supply for those on Band A feeders, tariffs for customers on other bands remain unchanged.

IKEDC said “Dear Esteemed Customers, please be informed of the downward tariff review of our Band A feeders from N225/kWh to N206.80/kWh effective 6th May 2024 with guaranteed availability of 20-24hrs supply daily. The tariff for Bands B, C, D, and E remains unchanged.”

Recalls that on April 3, the Nigerian Electricity Regulatory Commission (NERC) revised the electricity tariff for Band A customers dramatically, soaring from N68 per kilowatt-hour to N255/KWh. It’s worth noting that this tariff hike did not affect other customer categories.

Since the release of the supplementary Multi-Year Tariff Order, consumers categorized as Band A have been expressing discontent, citing the significant impact of the tariff increase on their finances.

They have been calling on the Federal Government to reconsider this policy.

However, during an investigative hearing before the Senate Committee on Power last Monday, the Minister of Power, Adebayo Adelabu, issued a stark warning.

He emphasized that if the electricity tariff hike was not implemented, the nation could face a total blackout within the next three months.

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