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JUST IN: Presidency Shreds New York Times’ Nigeria’s Worst Economic Crisis Report
The Presidency has come out with a rejoinder on the New York Times’ feature article on the excruciating economic situation confronting Nigeria.
This was detailed in state house statement under the signature of the Special Adviser to President Tinubu on Information and Strategy, Bayo Onanuga, which he put out under his verified X handle.
Issued under the subject, ‘NEW YORK TIMES’ JAUNDICED REPORT ON NIGERIA’S CURRENT ECONOMIC SITUATION’, it maintained that the feature article “reflected the typical predetermined, reductionist, derogatory, and denigrating way foreign media establishments reported African countries for several decades.”
The Presidency wants the world to know that the reform introduced by the President Bola Ahmed Tinubu administration are already yielding dividends, with exchange rate having peaked at almost N2,000/$ and slowing downing to below N1,500/$.
Investors and foreign lenders were also beginning to demonstrate faith in the domestic economy.
Onanuga pointed out that “The economy recorded a trade surplus of N6.52 trillion in Q1, as against a deficit of N1.4 trillion in Q4 of 2023. Portfolio investors have streamed in as long-term investors. When Diageo wanted to sell its stake in Guinness Nigeria, it had the Singaporean conglomerate, Tolaram, ready for the uptake. With the World Bank extending a $2.25 billion loan and other loans by the AfDB and Afreximbank coming in, Nigeria has become bankable again. This is all because the reforms being implemented have restored some confidence.”
In addition, he noted that Nigeria was not the only country passing through economic challenges, noting that event he Untied States was also experiencing her own share of economic turmoil.
“Nigeria is not the only country in the world facing a rising cost of living crisis. The USA, too, is contending with a similar crisis, with families finding it hard to make ends meet. US Treasury Secretary Janet Yellen raised this concern recently. Europe is similarly in the throes of a cost-of-living crisis,” he added.
The statement reads, “Ruth Maclean and Ismail Auwal’s feature story with the title ‘Nigeria Confronts Its Worst Economic Crisis in a Generation’, published on June 11, reflected the typical predetermined, reductionist, derogatory, and denigrating way foreign media establishments reported African countries for several decades.
“Because of the misleading slant of the report, we need to clear up some misconceptions conveyed by the reporters as regards the economic policies of the Tinubu administration that came into power at the end of May 2023.
“Most significant about the report was that it painted the dire experiences of some Nigerians amid the inflationary spiral of the last year and blamed it all on the policies of the new administration. The report, based on several interviews, is at best jaundiced, all gloom and doom, as it never mentioned the positive aspects in the same economy as well as the ameliorative policies being implemented by the central and state governments.
“To be sure, President Tinubu did not create the economic problems Nigeria faces today. He inherited them. As a respected economist in our country, once put it, Tinubu inherited a dead economy. The economy was bleeding and needed quick surgery to avoid being plunged into the abyss, as happened in Zimbabwe and Venezuela. This was the background to the policy direction taken by the government in May/June 2023: the abrogation of the fuel subsidy regime and the unification of the multiple exchange rates.
“For decades, Nigeria had maintained a fuel subsidy regime that gulped $84.39 billion between 2005 and 2022 from the public treasury in a country with huge infrastructural deficits and in high need of better social services for its citizens. The state oil firm, NNPC, the sole importer, had amassed trillions of naira in debts for absorbing the unsustainable subsidy payments in its books. By the time President Tinubu took over the leadership of the country, there was no provision made for fuel subsidy payments in the national budget beyond June 2023. The budget itself had a striking feature: it planned to spend 97 percent of revenue servicing debt, with little left for recurrent or capital expenditure. The previous government had resorted to massive borrowing to cover such costs. Like oil, the exchange rate was also being subsidized by the government, with an estimated $1.5 billion spent monthly by the CBN to ‘defend’ the currency against the unquenchable demand for the dollar by the country’s import-dependent economy. By keeping the rate low, arbitrage grew as a gulf existed between the official rate and the rate being used by over 5000 BDCs that were previously licensed by the Central Bank. What was more, the country was failing to fulfil its remittance obligations to airlines and other foreign businesses, such that FDIs and investment in the oil sector dried up, and notably Emirate Airlines cut off the Nigerian route.
“President Tinubu had to deal with the cancer of public finance on the first day by rolling back the subsidy regime and the generosity that spread to neighbouring countries. Then, his administration floated the naira.
“After some months of the storm, with the naira sliding as low as N1,900 to the US dollar, some stability is being restored, though there remain some challenges. The exchange rate is now below N1500 to the dollar, and there are prospects that the naira could regain its muscle and appreciate to between N1000 and N1200 before the end of the year. The economy recorded a trade surplus of N6.52 trillion in Q1, as against a deficit of N1.4 trillion in Q4 of 2023. Portfolio investors have streamed in as long-term investors. When Diageo wanted to sell its stake in Guinness Nigeria, it had the Singaporean conglomerate, Tolaram, ready for the uptake. With the World Bank extending a $2.25 billion loan and other loans by the AfDB and Afreximbank coming in, Nigeria has become bankable again. This is all because the reforms being implemented have restored some confidence.
“The inflationary rate is slowing down, as shown in the figures released by the National Bureau of Statistics for April. Food inflation remains the biggest challenge, and the government is working very hard to rein it in with increased agricultural production. The Tinubu administration and the 36 states are working assiduously to produce food in abundance to reduce the cost. Some state governments, such as Lagos and Akwa Ibom, have set up retail shops to sell raw food items to residents at a lower price than the market price. The Tinubu government, in November last year, in consonance with its food emergency declaration, invested heavily in dry-season farming, giving farmers incentives to produce wheat, maize, and rice. The CBN has donated N100 billion worth of fertiliser to farmers, and numerous incentives are being implemented. In the western part of Nigeria, the six governors have announced plans to invest massively in agriculture.
“With all the plans being executed, inflation, especially food inflation, will soon be tamed.
“Nigeria is not the only country in the world facing a rising cost of living crisis. The USA, too, is contending with a similar crisis, with families finding it hard to make ends meet. US Treasury Secretary Janet Yellen raised this concern recently. Europe is similarly in the throes of a cost-of-living crisis. As those countries are trying to confront the problem, the Tinubu administration is also working hard to overturn the economic problems in Nigeria.
“Our country faced economic difficulties in the past, an experience that has been captured in folk songs. Just like we overcame then, we shall overcome our present difficulties very soon.”
The government of Osun State has shed more light on how the new minimum wage of N75,000 for civil servants in the state was adopted and approved by the Governor, Senator Ademola Adeleke.
This was detailed in a statement in Osogbo on Wednesday was the State Commissioner for Information and Public Enlightenment, Kolapo Alimi, who confirmed that the New Minimum Wage got the executive approval of the Governor after the receipt of the Public Service Negotiation Committee’s report.
Alimi, as one of the members of the Committee saddled with the responsibility of working out a good and acceptable template for the new minimum wage said the State Government team was led by the Chief of Staff to the Governor, Hon Kazeem Akinleye while that of the Labour team was led by the State NLC Chairman, Comrade Christopher Arapasopo.
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It was further revealed that the implementation of the New Minimum Wage of 75,000 for Osun workers is in tandem with commitment to social justice, economic growth and an enhanced living standard for Osun teaming workers and citizens alike.
According to the statement, “Governor Ademola Adeleke led administration is deeply committed to prioritizing the welfare of civil servants, who, tirelessly provide efficient, effective and quality services to the state despite the limited resources accruing to it”
Osun State Governor, after the approval, according to Alimi, urged all civil servants in the state to up their service delivery more and more by endlessly seeking innovative solutions to improve public service in ensuring transparency and accountability for the growth and development of the 33 year old Osun State.
Earlier, the Chief of Staff to the Governor, Hon. Akinleye who lauded the Governor for the executive approval of new national minimum wage for workers, further stated that the committee carried out its duties and responsibilities without any let or hindrance from the State Government that put it in place to work out the new wage template.
Ayanleye Aina, on his own part as the Head of Service assured that Osun workers will continue to live up to the desired billings.
In the same vein, on behalf of the Labour team side, Chairman, NLC, Osun State, Comrade Christopher Arapasopo, who also thumbed up the Gov Adeleke led administration for the N75,000 new wage bill for an average worker in the state, maintained that it was carefully crafted and arrived at in line with Osun State’s current economic condition.
Arapasopo further expressed conviction that the new wage structure would be both durable and sustainable, as it would impact the financial stability of all civil servants in the State.
He then stated that Osun State workforce are solidly behind the administration of Gov Adeleke, promising that they will not relent in their support for the government.
Alimi finally reeled out names of the members of the Osun State Government team in the negotiation committee to include:
1.Alh.Kazeem Akinleye (Chief of Staff to the Governor) – Chairman
2.Mr Ayanleye Aina, (Head.Of Service)
3.Oluomo Kolapo Alimi, Hon. Comm. for Information and Public Enlightenment
3.Hon Sola Ogungbile (Hon Commissioner for Finance)
4.Prof Maruf Ademola Adeleke, (Hon Commissioner for Budget and Economic planning)
- Mr Olugbenga Fadele (Permanent Secretary, Human Resources and Capacity Building)
4 Mr Adebayo Raji (Permanent Secretary, BPSB)
- Mrs Yetunde Esan (Permanent Secretary, Economic Planning, Budget and Development
- Mr A. A Bello (Permanent Secretary, Finance)
- Jimoda O. J (Ministry of Local Government and C.A)
- Yemi Esan (OPRS)
- Mr Atolagbe L. A (Director, Funds)
10 Mr Gabriel Oginni (SIFMIS Manager)
- Mr Akinjide Samuel (SIFMIS), and
12 Mr Albert O. Ajiboye (Director, L.I.R)
Alimi, mentioned in the statement that, on the part of Labour team, the following people were members of the negotiation team:
1.Comrade Christopher Arapasopo (NLC Chairman)
2 Comrade Fatai Bimbo Sanusi (TUC Chairman)
3 Comrade Akindele Lasun (Chairman, JNC)
4 Comrade Amusan Victor (Secretary, NLC)
5 Comrade Adeyemi Abdullateef (Secretary, TUC)
6 Comrade Akinjide Akinlami (JNC Secretary)
7 Dr Kehinde Ogungbangbe (NULGE President)
8 Comrade Emmanuel Olawuyi (NUT)
9 Comrade Ojo Akintunde (Chairman, SSUCOEN)
10 Comrade Adekunle Adesina (Chairman, PASAN)
- Comrade Johnson Adegoke (Chairman, MHWUN)
- Comrade Ganiyu Salawu (Chairman, NUP)
- Comrade Waheed Opeyemi (Chairman, NANNM); and
- Comrade Adedokun Olalekan (Chairman, AUPCTRE)
The Nigerian National Petroleum Corporation Limited (NNPC Ltd) has announced the international debut of its new crude oil grade, the Utapate blend, six months after commencing production.
The move is expected to significantly bolster Nigeria’s crude oil exports, revenue generation, and economic growth.
In a statement released Wednesday, NNPCL’s Chief Corporate Communications Officer, Olufemi Soneye, said the crude blend was unveiled at the Argus European Crude Conference in London.
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The launch follows the dispatch of the first cargo in July 2024, which delivered 950,000 barrels to Spain.
The Utapate crude oil blend, produced from the Utapate field in Oil Mining Lease (OML) 13 in Akwa Ibom State, is notable for its low sulphur content of 0.0655% and reduced carbon footprint, achieved through gas flare elimination.
These characteristics align with the preferences of European refiners, positioning the blend as an environmentally sustainable and economically attractive option.
According to NNPC E&P Limited Managing Director Nicholas Foucart, production has ramped up rapidly since operations began in May 2024.
“We have rapidly ramped up production to 40,000 barrels per day with minimal downtime,” Foucart said.
“So far, we have exported five cargoes, largely to Spain and the East Coast of the United States, while two additional cargoes are set for export in November and December 2024. This represents a significant boost to Nigeria’s crude oil export portfolio.”
Foucart added that the Utapate field is estimated to hold 330 million barrels of crude oil, 45 million barrels of condensate, and 3.5 trillion cubic feet of gas.
Production is set to increase further, with targets of 50,000 barrels per day by January 2025 and 80,000 barrels per day by the end of 2025.
“The Utapate crude oil terminal is sustainable, affordable, and fully compliant with rigorous environmental regulations and sustainability principles, particularly those aimed at reducing carbon emissions and other ecological impacts,” Foucart emphasized.
NNPC Trading Limited’s Managing Director, Lawal Sade, described the Utapate crude oil blend as a highly sought-after product in the international market.
He noted that its pricing structure mirrors that of the Amenam crude oil grade, known for its light, sweet properties, low sulphur content, and high yield of premium products.
“The Utapate blend is an excellent match for refiners globally, offering the efficiency and quality they demand,” Sade stated. “In introducing this product to the market, our aim is to optimize value for both producers and global buyers.”
The Utapate field’s development, which took place between 2013 and 2019, involved converting operations from swamp and marine-based facilities to land-based ones, enhancing operational efficiency and sustainability.
This new crude grade follows the successful introduction of the Nembe crude oil blend in 2023, underscoring NNPCL’s commitment to expanding Nigeria’s footprint in the global energy market.
Foucart highlighted the broader vision for Utapate’s growth. “Our ongoing projects aim to increase production to 60,000–65,000 barrels per day by mid-2025, ultimately reaching 80,000 barrels by the year’s end.
This expansion not only strengthens our market position but also contributes significantly to Nigeria’s economic development,” he said.
A British Virgin Islands (BVI) court has authorised Chinese investors, Zhongshan Fucheng Industrial Investment Co. Limited, to seize $25 million from Nigeria’s foreign-denominated assets.
The decision stems from Nigeria’s failure to honour a $74.5 million arbitral award relating to the defunct Ogun Free Trade Zone project.
Justice Paul Webster of the British Virgin Islands High Court ruled that Nigeria could not claim immunity from the enforcement of the arbitral award due to the terms of the bilateral investment treaty between China and Nigeria.
This ruling adds to a series of legal defeats Nigeria has faced in foreign courts, including jurisdictions such as the UK, France, Belgium, Canada, and the United States.
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Zhongshan’s legal representation in the BVI case included King’s Counsel Timothy Otty and Lauren Peaty of Withers British Virgin Islands.
The dispute traces back to a failed agreement involving the Ogun State government and Zhongshan investors. The investors allege that the former Ogun State governor, Ibikunle Amosun, unilaterally withdrew from the deal and orchestrated their detention, where they were allegedly tortured under the orders of state security agents.
The $25 million seizure follows the Nigerian government’s inability to comply with the $74.5 million arbitral award granted by an independent tribunal, chaired by a former UK Supreme Court President.
The judgment underscores the financial and diplomatic consequences Nigeria continues to face from unresolved investment disputes in international courts.
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