Showing posts with label government. Show all posts
Showing posts with label government. Show all posts

Friday, March 29, 2024

Detained Binance executives sue Nigeria's security adviser, anti-graft agency

Two executives from Binance, the world's largest cryptocurrency exchange, have sued Nigeria's national security adviser's office and the anti-graft agency for violating their fundamental rights and asked the court to set them free.

Tigran Gambaryan, a U.S. citizen and Binance's head of financial crime compliance, and Nadeem Anjarwalla, a British-Kenyan who is Binance's regional manager for Africa, flew to Nigeria following the country's decision to ban several cryptocurrency trading websites and were detained on arrival on Feb. 26.

Anjarwalla fled the country last week and now faces the prospect of an international arrest warrant.
On Thursday, Gambaryan appeared in a Federal High Court in the capital Abuja requesting Judge Iyang Ekwo declare his detention and seizure of his passport by the National Security Adviser and Economic and Financial Crimes Commission (EFCC) "amounts to a violation of his fundamental right to personal liberty" as guaranteed by Nigeria's constitution.

The executives, who said they had not been informed of any offences committed, requested an order to release them and return their passports, a public apology and a restraining order from further detention.

The judge adjourned the hearing to April 8 without making a ruling because lawyers for the Office of the National Security Adviser (ONSA) and the EFCC were not in court.

Gambaryan and Anjarwalla were caught up in a crackdown following a period during which several cryptocurrency websites emerged as platforms of choice for trading the Nigerian currency, as the country battles a chronic dollar shortages. 

By Camillus Eboh, Reuters 

Related stories: Court in Nigeria Orders Binance to Relinquish Data of All Nigerians Trading on its Platform

Video - Nigeria detains Binance executives

Detained Binance executive escapes detention in Nigeria amidst probe


Thursday, March 28, 2024

Video - Central Bank of Nigeria raises monetary policy rate



The Central Bank of Nigeria raised its monetary policy rate to 25 percent from 23 percent to contain inflation. Inflation is presently above 30 percent, leaving millions of people in Africa's most populous nation struggling to meet their basic needs.

CGTN

Related stories: Naira gains on spot market after central bank rate hike

Central Bank of Nigeria revokes licences of 4,173 exchange bureaus

 

 

Monday, March 25, 2024

Detained Binance executive escapes detention in Nigeria amidst probe

 Nadeem Anjarwalla, one of the two Binance executives detained in Nigeria has reportedly escaped from lawful custody, according to sources.

These sources revealed that Anjarwalla, aged 38, escaped on Friday, March 22nd, from the Abuja guest house where he and his colleague were being detained, Premium Times reported.

Guards on duty escorted him to a nearby mosque for prayers as part of the ongoing Ramadan fast.

The British national, who also holds Kenyan citizenship, is believed to have departed Abuja via a Middle Eastern airline.

The circumstances surrounding how Anjarwalla managed to board an international flight despite being in custody and his British passport being held by Nigerian authorities remain unclear.

Authorities are reportedly working to uncover Anjarwalla's intended destination to apprehend him and return him to custody.

According to an Immigration official, the Binance executive fled Nigeria using a Kenyan passport. However, authorities are trying to ascertain how he acquired this passport, as he did not possess any other travel documents apart from his British passport when he was detained.

Before now, WIRED reported that Anjarwalla fell ill while in custody, possibly due to malaria, although the precise nature of his symptoms was unclear.

Nadeem Anjarwalla, Binance's regional manager for Africa, along with Tigran Gambaryan, Binance's head of financial crime compliance and a U.S. citizen had travelled to Nigeria after the country banned several cryptocurrency trading websites to halt what the CBN described as continuous manipulation of the forex market and illicit movement of funds.

Upon their arrival on February 26, they were arrested by the office of the National Security Adviser (NSA), and criminal charges were filed against the two executives.

Binance was instructed to provide the Economic and Financial Crimes Commission (EFCC) with detailed data and information regarding all Nigerian traders on its platform.

According to Yemi Cardoso, the governor of the Central Bank of Nigeria (CBN), over $26 billion passed through Binance Nigeria from unknown sources. The government even hit the exchange with a $10 billion fine amidst a crypto exchange probe.

On February 28, 2024, the court granted the EFCC an order to remand the duo for 14 days. Due to Binance’s refusal to comply with the order, the court extended the remand of the officials for an additional 14 days to prevent them from tampering with evidence. The court then adjourned the case till 4 April 2024.

By Adekunle Agbetiloye, Business Insider Africa

Related stories: Nigeria files tax evasion charges against Binance

Court in Nigeria Orders Binance to Relinquish Data of All Nigerians Trading on its Platform

Video - Nigeria detains Binance executives

Nigeria files tax evasion charges against Binance

Nigeria's tax agency has filed tax evasion charges against crypto platform Binance, it said in a statement on Monday.

The cased filed by the Federal Inland Revenue Service (FIRS) in Abuja accuses Binance of four counts of tax evasion.

Binance was not immediately available to comment.

The charges include non-payment of value-added tax (VAT), company income tax, failure to file tax returns, and complicity in aiding customers to evade taxes through its platform, the FIRS said.

By Camillus Eboh, Reuters

Related stories: Court in Nigeria Orders Binance to Relinquish Data of All Nigerians Trading on its Platform

Video - Nigeria detains Binance executives

 

Thursday, March 21, 2024

President Bola Tinubu bans foreign trips by government officials

Nigeria's President Bola Tinubu will introduce a three-month ban on ministers and other government officials from going on publicly funded foreign trips.

Mr Tinubu's chief of staff said the move was prompted by the president's "concerns about the rising cost of travel expenses" by public officials.

The ban will take effect on 1 April.

President Tinubu and his administration have been criticised by some for their frequent visits abroad.

Since his inauguration in May, Mr Tinubu has made more than 15 foreign trips.

The Nigerian president is said to have spent at least 3.4bn naira ($2.2m; £1.8m) on domestic and foreign travel in the first six months of his presidency - 36% more than the budgeted amount for 2023, the Nigerian newspaper Punch reported in January, citing GovSpend, a civic tech platform that tracks government spending.

Mr Tinubu's chief of staff Femi Gbajabiamila said the travel ban will cut costs amid Nigeria's "current economic challenges and the need for responsible fiscal management".

The West African country is grappling with one of its worst cost-of-living crises in decades, a situation that has led to widespread hardship and anger.

The three-month block on official travel by government officials is Mr Tinubu's latest attempt at countering the public backlash.

In January, the Nigerian president announced a reduction in the size of the official travel delegation by about 60% , including cuts to his own travel entourage.

When the ban takes effect in April, government officials will only go on foreign trips "deemed absolutely necessary". They will also require President Tinubu's approval at least two weeks before they travel.

Mr Gbajabiamila added that the halt on travel will ensure that government officials "focus on their respective mandates for effective service delivery".

Despite clamping down on travel by government officials, Mr Tinubu has not said whether he will reduce his own trips.

The president and his representatives have in the past defended his trips as being vital in addressing the economic problems he is accused of ignoring.

By Gloria Aradi, BBC

Related story: President Tinubu stuns wary investors with quick reforms

Wednesday, March 20, 2024

Court in Nigeria denies separatist leader Kanu bail



 

A Nigerian federal court on Tuesday denied separatist leader Nnamdi Kanu bail and instead ordered an accelerated trial of a pending seven-count terrorism charge against him.

Kanu, a British citizen who leads the banned Indigenous People of Biafra (IPOB) movement, disappeared from Nigeria after skipping bail in 2017. He was arrested in Kenya in 2021 and charged in Nigeria with terrorism.

In December, Nigeria's Supreme Court overturned a judgement by a lower court that dropped the terrorism charges against Kanu, setting the stage for his trial to commence.

"I will respond to all charges and the court will see that they are all lies," Kanu told the court.
Judge Murtala Nyako adjourned the case to April 17 to start trial.

Nyako also denied a request by Kanu, currently in the custody of the Department of State Services (DSS), a security agency, to be transferred to a regular prison on health grounds. He told the court he has congenital heart disease.

Kanu has previously denied the terrorism charges and knowingly broadcasting falsehoods, which are linked to social media posts he issued between 2018 and 2022.

His lawyers have argued that he could not receive a fair trial in Nigeria because he was forcefully extradited from Kenya. Kenya has declined to say if it played a role in Kanu's return.

Kanu's IPOB campaigns for the secession of southeastern Nigeria where the majority belong to the Igbo ethnic group. Nigerian authorities have labelled IPOB a terrorist organization.

An attempt by the southern region to secede as the Republic of Biafra in 1967, the year Kanu was born, triggered a three-year civil war that killed more than 1 million people.

By Camillus Eboh, Reuters 

Related stories: Nnamdi Kanu’s brother loses London court challenge

Nigerian separatist Nnamdi Kanu's Facebook account removed for hate speech

Tuesday, March 19, 2024

Court in Nigeria Orders Binance to Relinquish Data of All Nigerians Trading on its Platform

The interim order comes after an earlier report that Nigeria wanted Binance to give information regarding its top 100 users in the nation and all transaction history spanning the past six months.

A Nigerian court has ordered Binance to provide Nigeria’s Economic and Financial Crimes Commission (EFCC) with comprehensive information on all persons from the nation trading on its platform, according to a report by the local news outlet Peoples Gazette.

The interim order comes after an earlier report that Nigeria had asked the crypto exchange to hand over the information regarding its top 100 users in the country and all transaction history spanning the past six months. But Justice Emeka Nwite from the Abuja Division of the Federal High Court appears to have granted the motion of EFCC’s lawyer, Ekele Iheanacho which sought information on any Nigerian trading on Binance.

The EFCC is Nigeria’s law enforcement agency that investigates financial crimes.

“The applicant’s application dated and filed February 29, 2024, is hereby granted as prayed. That an order of this honorable court is hereby made directing the operators of Binance to provide the commission with comprehensive data/information relating to all persons from Nigeria trading on its platform,” the judge ordered, the report said.

Nigeria has taken action against the crypto industry for allegedly facilitating illegal capital outflows, which purportedly led to the Nigerian naira weakening to record lows against the dollar. The nation’s authorities have taken a particular interest in Binance’s operations, demanding $10 billion in penalties for enabling some $26 billion of untraceable funds.

Nigerian authorities also detained two of Binance’s senior executives after inviting them into the country to discuss the matter. The court hearing of the two detained Binance executives is scheduled for Wednesday, Reuters reported. Nigerian authorities have also proposed a 400% increase in registration fees for crypto firms.

Binance and the EFCC did not immediately respond to CoinDesk’s request for comment. 

By Amitoj Singh, CoinDesk

Related stories: Nigeria demands Binance disclose top users, executives remain detained

Video - Nigeria detains Binance executives

Monday, March 18, 2024

Video - Nigeria opens its air and land borders with Niger



Nigeria has decided to reopen its air and land borders with its neighbor, Niger. This decision also involves lifting other sanctions imposed after the military takeover in Niger last year.

CGTN

Nigeria military denies reprisal attack after 16 troops killed

Men in army uniform ransacked and burned homes in Nigeria's oil-producing Delta state days after youths killed 16 soldiers sent there to resolve a land dispute, residents said, but the defence chief denied military involvement.

Residents said soldiers attacked the riverside Okuoma community of a few hundred people on Sunday while looking for those responsible for Thursday's killings.

Tam Oburumu, who fled from his home, said uniformed men were going around looking for weapons and ransacked houses before torching them.

"The damage for now is huge, a lot of houses were burned,"

Oburumu said by phone from a nearby village where he has sought refuge.

Government-owned properties, including a primary school and hospital, were spared, residents said.

President Bola Tinubu said he had given the military full authority to hunt down those responsible for killing the soldiers, which he described as an "unconscionable crime against the Nigerian people".

But defence chief General Christopher Musa denied that soldiers had attacked the community.

"No reprisals by the army. We are searching for the murderers and their weapon cache," Musa said in a text message to Reuters.

There are frequent, sometimes deadly, clashes over land or over compensation for oil spills by energy companies in many Delta state communities.

Friday Addy, a trader in Okuoma, said she and her mother had left their home when soldiers arrived.

"The people have fled for their lives, and many are missing and we cannot locate them. We are helpless," said Addy.

By Tife Owolabi and Ope Adetayo, Reuters

Friday, March 15, 2024

Military in Nigeria kill 213 terrorists, apprehend 283 others

The Defence Headquarters (DHQ) said Nigerian troops killed at least 213 terrorists and arrested 283 others in different theatres of operation across the country in the last week.

The Director of Defence Media Operations, Edward Buba, disclosed this while giving an update on the operations of the armed forces on Thursday in Abuja.

Mr Buba, a major general, said the troops within the period also apprehended 67 perpetrators of oil theft and rescued 26 kidnapped hostages.


He said they also recovered 189 assorted weapons and 4,003 assorted ammunition comprising 111 AK47 rifles, G3 rifles, 31 locally fabricated guns, five pump action guns, automatic pump action guns, and 26 Dane guns among others.

He said that other weapons recovered included 2,766 rounds of 7.62mm special ammo, 982 rounds of 7.62mm NATO, 240 live cartridges, 2 shotgun cartridges, 13 rounds of 9mm ammo, and 36 empty cases of 7.62mm ammo.

Other items according to him, are 38 magazines, three G3 magazines, eight vehicles, 44 motorcycles, 19 mobile phones, four bicycles, rifle butt, rifle stock and the sum of N628,000 amongst other items.

In the North-east, Mr Buba said the troops of Operation Hadin Kai, eliminated 70 terrorists and arrested 23 BH/ISWAP terrorists as well as recovered one G3 rifle, 50 AK47 rifles, 1,012 rounds of 7.62mm special ammo, 243 rounds of 7.62mm NATO, 13 motorcycles, 10 bicycles amongst others.

He said that a total of 472 ISWAP/JAS terrorists fighters and their families comprising 26 adult males, 146 adult females and 300 children surrendered to troops within the theatre of operations.

According to him, the air component neutralised several ISWAP/JAS terrorists and destroyed their logistics within the Southern Tumbuns.

In the North-central, Mr Buba said the troops of Operations Safe Haven and Whirl Stroke killed nine insurgents and arrested 18 violent extremists within the week.

He said the troops also recovered several arms, ammunition and other items.

In the North-west, he said the troops of Operation Hadarin Daji killed 26 terrorists and rescued 15 kidnapped hostages during the week.

He said the air component had on 5 March knocked out terrorists’ commanders and their foot soldiers hibernating in Southern Tsaskiya, Safana Local Government Area of Katsina State.

According to him, the Battle Damage Assessment revealed that several terrorists were killed and their structures destroyed.

“Similarly, on March 6, following credible intelligence and confirmatory ISR the air component in multiple passes conducted air interdiction at terrorists’ commander Alhaji Nashama’s and Jammo Smally’s enclaves in Birnin Magaji and Maradun Local Government Areas of Zamfara.

“The locations were thoroughly scanned and observed to be active with terrorists’ activities and attacked with rockets and cannons.

“Battle Damage Assessment revealed that several terrorists were neutralized and their structures destroyed,” he said.

Mr Buba added that troops of Operation Whirl Punch killed 17 insurgents, arrested 42 violent extremists/terrorists and rescued nine kidnapped hostages.

He said the air component also conducted air interdiction at terrorists’ commander Alhaji Labi’s enclave in Gaude Forest, Kaduna State following confirmation of resurgence of terrorists at the location.

He said soldiers attacked the location killing several terrorists and destroying their logistics.

In the South-south, Mr Buba said the troops of Operation Delta Safe discovered and destroyed 45 illegal refining sites with 150 dugout pits, 30 boats, 73 storage tanks, 209 drums and 15 vehicles.

According to him, other items recovered include 105 cooking ovens, three pumping machines, two outboard engines, one tricycle and four motorcycles.

He added that the troops recovered 1.2 million litres of stolen crude oil, 313,780 litres of illegally refined AGO and 13,000 litres of PMS during the week.

In the South-east, Mr Buba said the troops of Operation UDO KA killed 26 terrorists and recovered three G3 rifles, 12 AK47 rifles, one fabricated gun, two pump action guns, automatic pump action guns, RPG bombs and 269 rounds of 7.62mm special ammo.

Other items recovered are 216 rounds of 7.62mm NATO, 172 live cartridges, eight IEDs (OGBUNIGWE), four AK47 magazines, three G3 magazines and three motorcycles amongst other items.

“All recovered items, arrested suspects and rescued hostages were handed over to the relevant authority for further action,” he said.

Premium Times

Related stories: Military of Nigeria attempting to cover up mass killing of civilians

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Thursday, March 14, 2024

Video - Nigeria imposes mandatory annual levy for organizations employing expatriate workers



To promote local employment opportunities, Nigerian authorities mandate that organizations employing expatriate workers pay an annual levy of 15,000 U.S. dollars for directors and 10,000 U.S. dollars for other employees.

CGTN

Related story: Nigeria imposes annual levy on expatriate workers

Video - Why Are Multinationals Like P&G, GSK and Sanofi Leaving Nigeria?

 

 

Wednesday, March 13, 2024

Nigeria demands Binance disclose top users, executives remain detained

Nigeria is actively seeking information from Binance regarding its top 100 users in the country and all transaction history spanning the past six months, according to a Financial Times report.

This news overlaps with the revelation of the names of the two executives from the cryptocurrency exchange who were detained two weeks ago: Tigran Gambaryan, Binance’s head of investigations, and Nadeem Anjarwalla, the crypto platform’s regional manager for Africa, the Wired reported Tuesday.

Last month, Gambaryan, who was a former crypto-focused U.S. federal agent, and Anjarwalla had their passports confiscated and have been held in confinement at a government facility in Abuja, Nigeria’s capital. Their detainment is part of Nigeria’s broader crackdown on cryptocurrency exchanges, coinciding with questionable efforts by the government to revive the naira, the country’s national currency.

Before their detention, Gambaryan, a U.S. citizen, and Anjarwalla, a dual citizen of the U.K. and Kenya, responded to an invitation from the Nigerian government to discuss Binance operations and the restrictions imposed on the cryptocurrency exchange.

Nigeria’s central bank had expressed concerns about the loss of tax revenue from unregistered crypto exchanges. Additionally, it accused Binance of operating illegally and facilitating “illicit flows from sources and users who we cannot adequately identify,” amounting to $26 billion. As a result, the detained executives may face charges related to currency manipulation, tax evasion and illegal operations, per a Bloomberg report.

However, according to their families, none of the executives have been formally charged with any criminal offenses as of Tuesday. The Financial Times reports that Nigeria’s anti-corruption agency was granted permission to detain both Binance executives for 14 days, which concluded on Tuesday. A proposed hearing to extend the court order is scheduled for Wednesday.

In response to this heightened regulatory scrutiny and contentious negotiation tactics in Nigeria, Binance discontinued its naira (NGN) services last week.

Nigeria’s request for Binance’s top users in the country is the new focal point in negotiations between the largest crypto platform and Africa’s top crypto market. Just last week, local reports claimed that Nigeria’s parliament threatened to issue a warrant of arrest for the company’s executives and summoned Binance CEO Richard Teng to provide explanations regarding investigations into the company’s alleged involvement in money laundering and terror financing.

Meanwhile, documents reviewed by FT reveal that Nigeria, through its national security adviser, has requested that Binance address any outstanding tax liabilities.

By Tage Kene-Okafor, TechCrunch

Related stories: Nigeria plans clampdown on Binance, other crypto firms

Nigeria detains Binance executives in cryptocurrency crackdown

Monday, March 4, 2024

Nigeria Tracks Down Bunker Vessel and Holds it on Oil Theft Charges

The Nigerian Navy reports it tracked and subsequently arrested a Panama-registered bunker vessel which it is accusing of oil theft. They tracked the vessel offshore before apprehending it with 13 crewmembers aboard and brought it back to Lagos over the weekend as part of a wider operation to crackdown on oil thieves.

The vessel the Sweet Miri (1,800 dwt) is reported to be owned by a Ghanaian according to the Nigerians but according to databases is managed out of the UAE. The vessel is 34 years old and operates in the Gulf of Guinea region.

Flag Officer Commanding the Western Naval Command, rear Admiral MB Hassan, told reporters on Saturday that the navy had been observing the bunker vessel and its activity for some time. He said the vessel had turned off its AIS signal on February 25 which raised suspicions. The Navy dispatched a gunboat to investigate and they had suspicion the vessel was smuggling oil.

The Navy dispatched a second vessel in the search for the Sweet Miri before they finally located the vessel approximately 174 nautical miles from Nigeria. It was traveling to Benin when it was apprehended. The command reported a search turned up nearly two million liters of oil and the vessel was ordered to return to Nigeria.

The vessel and its crew of 13 have now been placed under arrest while the commander said other departments of the government were also free to search the ship. The crew consists of one Ghanaian and 12 Nigerians.

The seizure was part of a wider crackdown across the region on alleged oil thefts. Over the past few months, there have been several reports of smaller vessels being held on allegations of oil theft.

The Nigerians in August 2022 chased a large tanker, the Heroic Idum, which they also charged with loading stolen crude. The vessel took refuge in Equatorial Guinea but was later handed back to Nigeria which used antipiracy laws to charge the crew. A settlement was finally reached in April 2023 when the vessel’s operators agreed to a public apology and a fine but it took till June 2023 for the crew to be released.

The Maritime Executive

Related stories: Video - Nigeria oil saga

Video - Unprecedented levels of oil theft in Nigeria cost millions

Video - Nigeria considers creation of state police departments



Nigeria is considering the creation of police departments for each state as part of measures to address security concerns in the country. The bill put forward by the ruling party is being debated in parliament.

CGTN

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Video - Over 100 kidnapped from four villages in Nigeria

 

 

 

Nigeria Summons Binance CEO Over Alleged Terror Financing

Binance troubles in Nigeria take yet another turn. After authorities blocked the exchange’s website, shut down its P2P marketplace, and detained two of its executives, the government is now looking to summon Binance’s CEO, Richard Teng, over allegations of terror financing and money laundering.

Nigeria Issues Ultimatum to Binance

Local news outlet Punch reported that Nigeria’s House of Representatives Committee on Financial Crimes has issued a seven-day ultimatum to Binance’s CEO to appear before the committee on or before Monday, March 4.

The regulator’s summoning follows recent allegations of suspicious funds flowing through the exchange’s Nigerian arm in 2023. Central Bank of Nigeria Governor Olayemi Cardoso highlighted that $26 billion had passed through Nigeria via Binance in 2023 from unidentified sources and users.

Chairman of the Committee on Financial Crimes, Ginger Onwusibe, warned that the committee will invoke its constitutional powers if Binance’s CEO, Richard Teng, refuses to appear before the court. Despite repeated invitations, Teng has been unwilling to address the Nigerian government’s concerns regarding compliance with its business and financial laws.

Onwusibe emphasized the committee’s commitment to fighting financial crimes, citing the constitutional mandate to protect Nigerians and the country’s finances.

The allegations of terrorism financing, money laundering, and tax evasion, amongst others, leveled against Binance are damning enough. At this material time, we need all the tax dollars to block the leaks and channels to financing terror.” he added.

Onwusibe concluded by urging Binance to fulfill its obligations, including paying taxes and establishing a physical office for citizen complaints.

Why This Matters

Binance has been under intense scrutiny over the last year from regulators worldwide. Its regulatory woes in Nigeria could further complicate its operations and raise questions about its compliance.

By Insha Zia, DAILYCOIN

Related stories: Nigeria demands $10 billion from Binance in damages

Nigeria detains Binance executives in cryptocurrency crackdown

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Friday, March 1, 2024

Central Bank of Nigeria revokes licences of 4,173 exchange bureaus

Nigeria's central bank said on Friday it had revoked the licences of 4,173 exchange bureaus that failed to comply with its guidelines and directives, including rendering returns of transactions and payment of required renewal fees within the due period.

The central bank, which resumed dollar sales to exchange bureaus this week, outlawed street-trading of foreign exchange and raised minimum capital levels for exchange bureaus to at least 2 billion naira ($1.3 million) under new guidelines released on Feb. 23.

The moves are part of broader reforms to Nigeria's forex market which has been grappling with chronic foreign exchange shortages.

Central Bank of Nigeria (CBN) spokesperson Hakama Sidi Ali said the licences of the affected exchange bureaus were also revoked due to non-compliance with anti-money laundering and terrorism finance regulations.

"The CBN is revising the regulatory and supervisory guidelines for Bureau de Change operators. Compliance with the new requirements will be mandatory for all stakeholders in the sector when the revised guidelines become effective," Sidi Ali said in a central bank statement. 

By Elisha Bala-Gbogbo, Reuters

Related story: Video - Nigeria detains Binance executives

 

Video - Why Are Multinationals Like P&G, GSK and Sanofi Leaving Nigeria?



Nigeria's currency crisis has triggered an exodus of businesses from the country. At least four multinationals, including GSK, Bayer and Sanofi, have announced they're ending production, as a scarcity of dollars, a naira in freefall and rampant inflation slashes profits. Bloomberg's Jennifer Zabasajja reports.

Bloomberg 

Related stories: GSK pull-out from Nigeria causes medication shortage

Cost of living crisis causes exodus of doctors from Nigeria

Protests in Nigeria over skyrocketing inflation as local currency hits record low value

 

Thursday, February 29, 2024

Video - Central bank of Nigeria raises interest rate to 22.75%



The interest rate hike is in response to surging inflation which has reached 29.9 percent. The rise in inflation is largely driven by fiscal deficits, rising food prices, a weakening naira, and the removal of a fuel subsidy.

CGTN

Related story: Video - Nigeria inflation hits high of 29.9%

 

 

Wednesday, February 28, 2024

Video - Nigeria plans to streamline bureaucracy to reduce costs



The move follows recommendations from a 2012 report that suggested the elimination or merger of some 220 of more than 500 government agencies.

CGTN

Related story: Nigeria to merge, scrap, government agencies to trim costs

 

 

Nigeria unveils big rate hike as hardship prompts worker protests

Nigeria's central bank delivered its largest rate hike in absolute terms in around 17 years on Tuesday to tame soaring inflation, amid nationwide trade union protests over price rises that have left people struggling to meet their basic needs.

Central Bank of Nigeria Governor Olayemi Cardoso said the 4-percentage-point increase to 22.75% was needed as previous rate hikes had not cooled price pressures enough.

Inflation has reached almost 30%, its highest in almost three decades, driven by a steep fall in the naira currency , the removal of a fuel subsidy, fiscal deficits and conflict in food-producing parts of Africa's most populous nation and biggest economy.

Labour unions protesting on Tuesday said two of President Bola Tinubu's key reforms - allowing the naira to devalue twice in less than a year and scrapping the fuel subsidy - were making people's lives a misery.
"We are suffering in Nigeria. It was not like this before. There is real hunger," said fashion designer Surijadeen Idayat at a protest in the capital Abuja.

In a sign of the desperation, a deadly stampede broke out at a food distribution site on Friday, authorities said.

"This was not the situation a year ago. I have to cut down the number of meals in the family," said Ibrahim Mamuda, a 56-year-old resident of the northern city of Kano who said he has twelve children and that they are only eating one meal a day.

Tinubu has defended his bold but unpopular reforms, which he hopes will help him double Nigeria's growth rate to 6% annually from roughly 3% now.

In an effort to ease the pressure on vulnerable households, his government this week approved the resumption of direct cash transfers to those in need.

MAMMOTH HIKE

Tuesday's mammoth rate hike brings Nigeria closer to Ghana, which defaulted on its debts in 2022 and cut interest rates from 30% to 29% in January, and the insurgency-hit Democratic Republic of Congo, which has an interest rate of 25%.

Nigeria's international dollar bonds initially rose as much as 0.5 cents on the dollar as Cardoso spoke, before falling to again trade below their previous closing price.

Capital Economics analyst David Omojomolo said that Cardoso had "stepped up to the plate" by showing greater appetite to tackle Nigeria's inflation problem than the central bank had done previously.

But he said further inflation surprises or naira weakness could force another hike. 

By Chijioke Ohuocha and Elisha Bala-Gbogbo, Reuters

Related stories: Video - Rising Food Prices spark protests and smuggling in Nigeria

Video - Nigeria vows to address rising cost of living amid protests