The Abuja School
Federal Mortgage Bank of Nigeria (FMBN) promises to deliver 141 Housing units
Federal Mortgage Bank of Nigeria (FMBN) have teamed up with Nasarawa state government to lay ground work to their rent-to-own scheme by purchasing 141 housing units for the state’s civil servants. FMBN met with Nasarawa state delegation on Wednesday 20th, 2024, in order to discuss the structure of their collaboration. Nasarawa state government have made it clear that they intend to prioritizes welfare for all its workers. The plan is to pass legislation for the workers to own their own homes by purchasing unoccupied housing units all across the state, amounting up to 141 housing units. FMBN have also stated their pleasure with this collaboration with the objective of empowering people and most importantly growing families in the state to accomplish the need of Homeownership. Which will definitely lead to increase in the socio-economic stability and wealth of the state. Under the National Housing Fund Scheme(NHF), FMBN has disbursed loans to 107 beneficiaries, with mortgages of about N666 million.
Dangote Refinery Slams NNPCL for not Delivering on Crude oil Targets
Dangote refinery have stated that the NNPCL has not satisfied obligations made with them for the supply of crude oil under their naira-for-crude initiative. The company has claimed that the volume of crude they have received is “peanuts” compared to the required amount needed to ramp up production of petrol and other refined products, which they have to capacity to facilitate. In an interview with the vice president of Dangote Industries Limited, Devakumar Edwin by Reuters. He said the NNPCL has failed to deliver a minimum of 385,000 bpd since the commencement of the program in October. With this plan faltering Dangote refinery has had to seek crude purchases from the United States, as their refinery which had grand hopes of being able to compete with European and Middle Eastern refineries is being severely underutilized.
Confirming this situation, the acting Executive Director of the Crude Oil Refinery-Owners Association of Nigeria, Mathins Obaze, said Dangote refinery were the only recipient to have benefited from the naira-denominated crude oil sales arrangement. With NNPCL leaving the other seven operational refineries in the country without access to this arrangement. The association has tried engaging with the government for a resolution, NNPCL has not made clear the reason for this failure.
The Lagos Chamber of Commerce & Industry advises the Federal Government on options to fund budget amid Borrowing Concerns
The Lagos Chamber of Commerce & Industry (LCCI) has expressed concerns over the Federal Government’s plan to borrow 2.2 billion USD, warning of potential debt sustainability issues and impacts on infrastructure. As they express the need to diversify the nation source of funds away from debt financing and toward other non-detrimental means. The group advices the government leans more into avenues that galvanizes and boost the non-oil revenue base through tax reforms and promotion of export driven sectors like Agriculture, Manufacturing, and Primary resource mining. The LCCI shared concern on the country’s debt sustainability is understandable, as the country’s Debt to GDP ratio of above 50 per cent. With debt servicing expenses set to overwhelm the country’s capital expenditure, as Nigeria’s total debt is already around 17 billion USD. There are many evident negative regarding Nigeria ill-advised habit of constant borrowing. It will lead to further weakening of critical infrastructure in the country. And it leaves the Naira even more vulnerable and exposed to external shocks which will lead to further depreciation against the Dollar when trying to service the large debt. As the naira is already in its worst performing year since its inception. The LCCI urges more reliance on Public Private Partnerships for infrastructure development in areas such as electricity supply, food security, and enablers manufacturing. As it can reduce pressures on public borrowing while encouraging private sector participation and efficiency.
Kainji and Jebba power plants report loses of N30bn
Kainji and Jebba power plants recorded about N30.5bn as losses caused by grid failures between 2022 and 2024.With 2024 being the worst in decades regarding nation grid collapses as it has crashed 11 times currently this year. This horrible state of the nation’s electricity grid is affecting and hinder business and economic activities, and also people’s standard of living.
The Federal government has blamed the serial collapses of the national grid on the destruction of electricity infrastructure like transmission towers as well as obsolete equipment in the transmission substations. They have also expressed that the lack of replacement of older facilities, lack of maintenance, and sabotage and scavenging of materials from active transmission facilities. Has led to such a massive decline in the country’s economic stability. Many GENCOS (power generating companies) also share grievance with the constant collapse as it has resulted in huge commercial and technical losses for them also. A report released last week has revealed that Kainji and Jebba power plants in 2022 has lost 149, 524 megawatts per hour which has amounted to 2.38 billion NGN. This increased to 229,370 megawatts per hour resulting in a 6.3 billion NGN in 2023. And now in 2024 so far, the amount has increased to 356,759 megawatts per hour, leading to an estimated loss of about 20 billion NGN.
If the national cannot handle current transmission of the agreed amount of electricity without being overloaded. It will continue to lead to structural and commercial cost for all involved in the supply chain. It is imperative to improve this grave situation before more detrimental depredation of the national grid.