<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/M7XIG3WP7VOCBNYDU2FDLXPJS4-820x547.jpg" alt="" class="wp-image-512857" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/M7XIG3WP7VOCBNYDU2FDLXPJS4-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/M7XIG3WP7VOCBNYDU2FDLXPJS4-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/M7XIG3WP7VOCBNYDU2FDLXPJS4-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/M7XIG3WP7VOCBNYDU2FDLXPJS4-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/M7XIG3WP7VOCBNYDU2FDLXPJS4-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/M7XIG3WP7VOCBNYDU2FDLXPJS4-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A view of the newly-commissioned Dangote petroleum refinery is pictured in Ibeju-Lekki, Lagos, Nigeria May 22, 2023. REUTERS/Temilade Adelaja/File Photo</figcaption></figure>



ABUJA, July 29 (Reuters)&nbsp;&#8211;&nbsp;Nigeria&#8217;s government gave approval on Monday for state oil company NNPC Ltd to sell crude&nbsp;in the naira currency to&nbsp;the&nbsp;mega Dangote&nbsp;refinery effective&nbsp;immediately&nbsp;to help ease foreign exchange pressure.



The $20 billion Dangote refinery, Nigeria&#8217;s main oil refinery and billed to be the largest in Africa at full throttle, started production in January but has struggled to secure enough crude to meet its 650,000-barrel-per-day capacity.



Dangote previously had to buy oil on the international market, but it filed a complaint saying oil majors were blocking its access to locally produced crude by selling it above market price or claiming it was unavailable, forcing the refinery to rely on expensive imports.



The cabinet gave the nod for NNPC Ltd to start selling crude to Dangote and other local&nbsp;refineries&nbsp;immediately&nbsp;in naira to ease pressure on foreign exchange, Zacch Adedeji, a&nbsp;cabinet&nbsp;member&nbsp;who is chairman&nbsp;of&nbsp;Nigeria&#8217;s Federal&nbsp;Inland Revenue Service (FIRS), told reporters.



The refineries will also be able to sell refined fuels to local marketers in naira, he said.



&#8220;By this decision, the pressure on foreign exchange rates today will be reduced,&#8221; Adedeji said.



He explained that the previous scenario exerted a burden of $660 million in demand on foreign exchange per month, amounting to $7.92 billion annually. The new arrangement is projected to reduce this amount to around $50 million per month, or $600 million annually, leading to annual savings of $7.32 billion, Adedeji said.



Africa&#8217;s most populous country has suffered chronic dollar shortages that have forced authorities to devalue the naira twice within the past year.



Analysts say the decision to approve the crude sales in naira could reduce the need for the refineries to seek new loans from foreign lenders and help lower transportation costs.



&#8220;It is essentially a policy choice between substantial naira transactions versus Nigeria&#8217;s need for foreign currency,&#8221; said Ayodele Oni, energy lawyer and partner at Bloomfield, a Lagos-based law firm.



Local fuel marketers had been worried they would be unable to pay for supplies from the Dangote refinery when it starts pumping gasoline next month if priced in dollars.



Earlier this month, Nigeria&#8217;s oil regulator struck a deal with producers to allow sales of crude oil to domestic refiners at market prices as it sought to end a supply dispute that had strained relations with the oil majors.



(Additional reporting by Isaac Anyaogu; Writing by Elisha Bala-Gbogbo; Editing by Mark Potter, Susan Fenton and Paul Simao)

FILE PHOTO: A view of the newly-commissioned Dangote petroleum refinery is pictured in Ibeju-Lekki, Lagos

Nigeria allows state oil firm sales in local currency to mega refinery

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_QHFBVC6NYNJHDBQD6MW4EKPU2E-820x547.jpg" alt="" class="wp-image-512525" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_QHFBVC6NYNJHDBQD6MW4EKPU2E-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_QHFBVC6NYNJHDBQD6MW4EKPU2E-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_QHFBVC6NYNJHDBQD6MW4EKPU2E-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_QHFBVC6NYNJHDBQD6MW4EKPU2E-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_QHFBVC6NYNJHDBQD6MW4EKPU2E-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_QHFBVC6NYNJHDBQD6MW4EKPU2E-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /></figure>



LAGOS, July 29 (Reuters)&nbsp;&#8211;&nbsp;Fuel queues lengthened across major Nigerian cities on Monday after state-oil company Nigerian National Petroleum Corp. faced problems supplying gasoline to local traders and depots.



Last year President Bola Tinubu&#8217;s government opened up gasoline imports to private companies but foreign currency shortages and a cap on the price of petrol has mean that NNPC remains the only importer. Nigeria&#8217;s new Dangote Refinery is yet to start processing gasoline.



&#8220;The NNPC Ltd wishes to state that the tightness in fuel supply and distribution witnessed in some parts of Lagos and the Federal Capital is as a result of a hitch in the discharge operations of a couple of vessels,” Olufemi Soneye, NNPC spokesperson said in a statement over the weekend when queues began forming.



Gasoline prices at retail stations have risen to over 800 naira ($0.5063) from around 617 naira per litre in May 2023 when the government announced it was ending gasoline subsidies. The price surge has added to already high inflation in Nigeria and a cost of living crisis.



The NNPC Ltd owes gasoline suppliers over $6 billion, thus affecting supplies, and is seeking to raise financing to settle the debts.



($1 = 1,580.0000 naira)



(Reporting by Isaac Anyaogu; Editing by Susan Fenton)

https___cloudfront-us-east-2.images.arcpublishing.com_reuters_QHFBVC6NYNJHDBQD6MW4EKPU2E

Nigerians queue for fuel as NNPC blames operational hitch

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="2048" height="1387" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/03/QHXVUHX3MJJHRDRSFYCEORRMQ4-2-1-scaled.jpg" alt="" class="wp-image-469888" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/03/QHXVUHX3MJJHRDRSFYCEORRMQ4-2-1-scaled.jpg 2048w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/QHXVUHX3MJJHRDRSFYCEORRMQ4-2-1-300x203.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/QHXVUHX3MJJHRDRSFYCEORRMQ4-2-1-820x555.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/QHXVUHX3MJJHRDRSFYCEORRMQ4-2-1-133x90.jpg 133w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/QHXVUHX3MJJHRDRSFYCEORRMQ4-2-1-768x520.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/QHXVUHX3MJJHRDRSFYCEORRMQ4-2-1-1536x1040.jpg 1536w" sizes="auto, (max-width: 2048px) 100vw, 2048px" /><figcaption class="wp-element-caption">People walk past the Bank of Ghana in Accra, Ghana, November 28, 2018. REUTERS/Zohra Bensemra/File Photo</figcaption></figure>



ACCRA, July 26 (Reuters) &#8211; Ghana&#8217;s central bank held its main interest rate steady at 29% for the third meeting in a row on Friday, saying a strong monetary stance was needed due to uncertainty over the inflation outlook.



Economists polled by Reuters before Friday&#8217;s announcement predicted a 50-basis-point cut in its main rate. They expect Ghana to finish the year with interest rates 200 basis points lower.



&#8220;Even though inflation is expected to remain within the target year band, the risks have tilted slightly on the upside,&#8221; Bank of Ghana Governor Ernest Addison told a news conference.



&#8220;This will require maintaining a strong monetary policy stance, supported by strong fiscal consolidation efforts,&#8221; Addison said.



He added that there was some uncertainty regarding the inflation path for the year given the recent exchange rate pressures, upward adjustment in utility tariffs, and increases in export fuel prices.



Ghana&#8217;s consumer inflation slowed last month to 22.8% year on year in June from 23.1% in May, but it remains well above the central bank&#8217;s 8% target with a margin of error of 2 percentage points either side.



Finance minister Mohammed Amin Adam said on Tuesday the West African nation would be able to reach the target for the year of 15% by the end of 2024, adding that its economy was rebounding faster than expected.



&#8220;The central bank is clearly reacting to the stalling disinflation during the first half of 2024, which has put both its short- and medium-term inflation targets at risk,&#8221; said Leslie Dwight Mensah, economist and research fellow at the Institute for Fiscal Studies in Accra.



&#8220;The decision has also been made with an eye on the cedi exchange rate, which has had a bad run in recent months and remains prone to depreciation given the economy&#8217;s limited foreign financing options,&#8221; Mensah said.



The West African cocoa, gold and oil producer has been restructuring its $30 billion debt in an attempt to emerge from its worst economic crisis in a generation.



Central bank governor Addison said economic activity in Ghana remained resilient in the context of a generally tight policy stance.



Ghana&#8217;s trade balance improved in the first half of the year, driven by higher exports of gold and crude oil, he said.



Strong gold output, and soaring prices helped Ghana earn more from the precious metal in the first half of 2024.



&#8220;The value of gold exports increased by 46.4% to $5.04 billion, while earnings from crude oil increased to $2 billion from $1.7 billion in the same period last year,&#8221; Addison said.



(Reporting by Christian Akorlie, additonal reporting by Maxwell Akalaare Adombila Writing by Anait MiridzhanianEditing by Bate Felix, William Maclean and Ros Russell)

People walk past the Bank of Ghana in Accra

Bank of Ghana keeps main rate unchanged over inflation concerns

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="576" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/06/OHD5J7KDHJJKBG6Q7MD3YOK36E-820x576.jpg" alt="" class="wp-image-425778" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/06/OHD5J7KDHJJKBG6Q7MD3YOK36E-820x576.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/OHD5J7KDHJJKBG6Q7MD3YOK36E-300x211.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/OHD5J7KDHJJKBG6Q7MD3YOK36E-128x90.jpg 128w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/OHD5J7KDHJJKBG6Q7MD3YOK36E-768x540.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/OHD5J7KDHJJKBG6Q7MD3YOK36E-1536x1079.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/OHD5J7KDHJJKBG6Q7MD3YOK36E-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Nigeria&#8217;s President Bola Tinubu waves to a crowd as he takes the traditional ride on top of a ceremonial vehicle, after his swearing-in ceremony in Abuja, Nigeria May 29, 2023. REUTERS/Temilade Adelaja/File Photo</figcaption></figure>



ABUJA, July 26 (Reuters)&nbsp;&#8211;&nbsp;Nigeria plans to issue a diaspora bond of up to $500 million, its Finance Minister Olawale Edun said, as part of its strategy to stabilise and grow the economy.



The domestic dollar-denominated bond, set for issuance in the third quarter, aims to attract investment from Nigerians living abroad and those with savings held overseas, but also to demonstrate the strength and resilience of the economy amidst ongoing economic reforms.



Nigeria&#8217;s move to issue the securities comes in the wake of ongoing reforms by President Bola Tinubu, which have seen significant strides including a projected budget deficit of 4% this year, Edun said in a statement late on Thursday.



Since taking office a little over a year ago, Tinubu has instituted landmark reforms cheered by investors, including slashing costly petrol and electricity subsidies and twice devaluing the naira currency with a year.



Edun said the reforms, and the issuance of securities as an integral part of them, represent a concerted push by the government to boost inclusive growth, potentially lifting millions out of poverty while attracting domestic and foreign investments.



(Writing by Elisha Bala-Gbogbo; Editing by Sharon Singleton)

FILE PHOTO: Nigeria’s President Bola Tinubu waves to a crowd as he takes the traditional ride on top of a ceremonial vehicle after his swearing-in ceremony in Abuja

Nigeria to launch $500 million diaspora bond in economic growth push

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="531" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/XBNTXEMQ4VNGFLKE3FC5UUA2RM-820x531.jpg" alt="" class="wp-image-510275" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/XBNTXEMQ4VNGFLKE3FC5UUA2RM-820x531.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/XBNTXEMQ4VNGFLKE3FC5UUA2RM-300x194.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/XBNTXEMQ4VNGFLKE3FC5UUA2RM-139x90.jpg 139w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/XBNTXEMQ4VNGFLKE3FC5UUA2RM-768x498.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/XBNTXEMQ4VNGFLKE3FC5UUA2RM-1536x995.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/XBNTXEMQ4VNGFLKE3FC5UUA2RM-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A view of Central Bank of Nigeria headquarters next to National Ecumenical Centre in Abuja, Nigeria November 23, 2021. REUTERS/Afolabi Sotunde</figcaption></figure>



ABUJA, July 23 (Reuters)&nbsp;&#8211;&nbsp;Nigeria&#8217;s central bank raised its benchmark lending rate by 50 basis points to 26.75%, in a decision announced on Tuesday.



Economists had predicted another hike to rates after inflation rose further in June and the naira currency&nbsp;fell on both the official and parallel markets, forcing the central bank to intervene.



Tuesday&#8217;s decision by the bank&#8217;s Monetary Policy Committee is the fourth straight hike this year, after increases of 150 basis points (bps) in May, 200 bps in March and 400 bps in February, its largest in around 17 years.



(Reporting by Elisha Bala-Gbogbo and Chijioke Ohuocha, Writing by Bhargav Acharya; Editing by Bate Felix Editing by Bate Felix)

A view of Central Bank of Nigeria headquaters next to National Ecumenical Centre in Abuja

Nigeria’s central bank raises benchmark rate to 26.75%

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="2000" height="1354" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/04/BWEXMGXBZJGV5F4OV3LMRETAPA.jpg" alt="" class="wp-image-401890" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/04/BWEXMGXBZJGV5F4OV3LMRETAPA.jpg 2000w, https://cms.cnbcafrica.com/wp-content/uploads/2021/04/BWEXMGXBZJGV5F4OV3LMRETAPA-300x203.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/04/BWEXMGXBZJGV5F4OV3LMRETAPA-820x555.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2021/04/BWEXMGXBZJGV5F4OV3LMRETAPA-768x520.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2021/04/BWEXMGXBZJGV5F4OV3LMRETAPA-1536x1040.jpg 1536w" sizes="auto, (max-width: 2000px) 100vw, 2000px" /><figcaption class="wp-element-caption">A flame rises from a gas flare stack at the under-construction Dangote Industries Ltd. oil refinery and fertilizer plant site in the Ibeju Lekki district, outside of Lagos, Nigeria, on Friday, March 6, 2020. Aliko Dangote, Africas richest man, plans to spend more than his net worth of $13.5 billion building one of the worlds biggest oil refineries. Photographer: Tom Saater/Bloomberg</figcaption></figure>



LAGOS, July 22 (Reuters)&nbsp;&#8211;&nbsp;Nigerian lawmakers on Monday set up a committee to investigate crude shortages to local refineries and importation of dirty fuels, issues at the heart of a rift between the Dangote Refinery and Nigeria&#8217;s downstream oil regulator.



The committee constituted by Nigeria&#8217;s lower parliament will investigate alleged importation of dirtier fuels, operations of standards agencies, why refineries including Dangote Refinery are unable to get adequate crude supplies and rising fuel queues.



&#8220;Our investigation will proceed in phases beginning with the allegation of production and importation of sub standard petroleum products and unavailability of crude oil to domestic refineries,&#8221; said Ikenga Ugochinyere, a co-char of the committee.



The findings of the investigative panel, which does not have the power to act on them, will be presented to parliament from which recommendations would be made to the president.



The $20 billion Dangote Oil refinery, built by Africa&#8217;s richest man Aliko Dangote on the outskirts of Lagos, began operations in January but has been unable to get adequate crude supplies from Nigeria where vandalism, sabotage and low investments deter production.



Last month, the Dangote Refinery said oil majors were blocking its access to locally produced crude and the regulator was allowing fuel traders import high-sulphur gasoil thereby undermining its refinery.



In response, the head of the Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), the downstream regulator, said the Dangote Refinery was 45% completed hence unable to meet the country&#8217;s needs. He also said gasoil processed by the refinery is between 650 to 1200 parts per million of sulphur, thus inferior to imported products.



Nigerian regulation allows for the sulphur content in gasoil to be about 50 ppm and is set to begin enforcing the standards from next year.



When some lawmakers visited the plant on Saturday, Africa&#8217;s richest man, Aliko Dangote insisted on a test of the gasoil from his plant with others sold in the local market. The result showed that Dangote Refinery&#8217;s diesel had a sulphur content of 87.6 ppm, whereas the other two samples showed sulphur levels exceeding 1800 ppm and 2,000 ppm, respectively.



Dangote announced he was no longer proceeding with an investment into steel production in Nigeria due to allegations that he seeking to be a monopoly.



The investigative panel said it will conduct a forensic audit of the entire sector.



&#8220;The committee is urging stakeholders in the current dispute to deescalate tensions as the committee embarks on the great task of resolving the issue,&#8221; Ugochinyere said.



(Reporting by Isaac Anyaogu; editing by David Evans)

Africas Richest Man Builds Nigerias $15 Billion Oil Refinery

Nigeria investigates fuel imports after Dangote Refinery rift with regulator

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="615" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/ZHFRG3BTB5JXRNXZVXU4QXPJNI-1-820x615.jpg" alt="" class="wp-image-509253" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/ZHFRG3BTB5JXRNXZVXU4QXPJNI-1-820x615.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/ZHFRG3BTB5JXRNXZVXU4QXPJNI-1-300x225.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/ZHFRG3BTB5JXRNXZVXU4QXPJNI-1-120x90.jpg 120w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/ZHFRG3BTB5JXRNXZVXU4QXPJNI-1-768x576.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/ZHFRG3BTB5JXRNXZVXU4QXPJNI-1-1536x1152.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/ZHFRG3BTB5JXRNXZVXU4QXPJNI-1.jpg 1920w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A member of the Nigeria Labour Congress dances in front of the domestic airport which has been shut down as Nigeria&#8217;s main labour unions called for an indefinite strike from Monday after failing to agree to a new minimum wage with the government, in Lagos, Nigeria. June 3, 2024.REUTERS/Seun Sanni/File Photo</figcaption></figure>



ABUJA, July 18 (Reuters)&nbsp;&#8211;&nbsp;Nigeria&#8217;s main labour unions agreed on a new minimum wage of 70,000 naira ($44) a month on Thursday after talks with the government, ending months of deadlock and the threat of strikes.



Africa&#8217;s most populous nation is grappling with the worst cost of living crisis in a generation, stoking fears of Kenyan-style protests that have rocked that country for nearly a month.



Nigeria&#8217;s two biggest union federations, the Nigerian Labour Congress (NLC) and the Trade Union Congress (TUC), have argued that soaring prices and a weakening currency caused by reforms instituted by President Bola Tinubu were hitting workers hard.



Soaring inflation has eroded incomes and hurt millions of Nigerians who are struggling to meet their basic needs.



The new wage announced by Minister of Information Mohammed Idris and union leaders, is more than double the 30,000 naira a month that was agreed in 2019.



&#8220;We are taking this new 70,000 naira minimum wage with mixed feelings because of the situation of the economy. We have to move ahead despite the situation otherwise the negotiation can linger,&#8221; NLC President Joe Ajaero told reporters.



He said the next minimum wage would be reviewed in three years instead of the customary five years.



The unions suspended a strike in early June to give negotiations a chance but warned that failure to reach an agreement could prompt members to call for new action.



Idris said Tinubu would send the proposal, which includes a provision to review the wage every three years, to parliament immediately for passage into law. Tinubu has said he will not roll back unpopular reforms, including electricity and gasoline price hikes.



On Wednesday, Tinubu asked lawmakers to approve $4 billion in additional spending to plug shortfalls in this year&#8217;s budget, with around half of it going to fund &#8220;further recurrent expenditure requirements.&#8221;



The government plans to invest in infrastructure and renewable energy, such as compressed natural gas (CNG) plants and busses to help lower transportation costs, Idris said.



($1 = 1,580.0000 naira)



(Writing by Elisha Bala-Gbogbo; Editing by Alison Williams, Susan Fenton, Philippa Fletcher)

ZHFRG3BTB5JXRNXZVXU4QXPJNI-1

Nigeria’s unions, government agree new wage deal, averting strike

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="574" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/03/WYRXXEW7ZRJT5P77WID3M5MBLM-820x574.jpg" alt="" class="wp-image-423487" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/03/WYRXXEW7ZRJT5P77WID3M5MBLM-820x574.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/03/WYRXXEW7ZRJT5P77WID3M5MBLM-300x210.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/03/WYRXXEW7ZRJT5P77WID3M5MBLM-129x90.jpg 129w, https://cms.cnbcafrica.com/wp-content/uploads/2023/03/WYRXXEW7ZRJT5P77WID3M5MBLM-768x537.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/03/WYRXXEW7ZRJT5P77WID3M5MBLM-1536x1074.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/03/WYRXXEW7ZRJT5P77WID3M5MBLM-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Nigeria&#8217;s newly declared winner of 2023 presidential election, Bola Tinubu speaks at the National Collation Centre in Abuja, Nigeria, March 1, 2023. REUTERS/Esa Alexander</figcaption></figure>



ABUJA, July 17 (Reuters)&nbsp;&#8211;&nbsp;Nigeria&#8217;s President Bola Tinubu has asked the Senate for an extra 6.2 trillion naira ($4 billion) in funding to plug shortfalls in this year&#8217;s national budget, according to a letter read to lawmakers on Wednesday.



Tinubu also sought to impose a one-off windfall tax on banks&#8217; foreign exchange gains, as his government aims to raise revenues to fund &#8220;capital infrastructure development, education, and healthcare as well as welfare initiatives.&#8221;



Senators immediately started debating a bill to approve the new funding request, which comes at a time when the government is under pressure from unions to agree a new minimum wage amid the country&#8217;s worst cost of living crisis in a generation.



($1 = 1,555.0000 naira)



This is a developing story&#8230;



(Reporting by Camillus Eboh; Writing by MacDonald Dzirutwe; Editing by Hugh Lawson)

The Independent National Electoral Commission declares Bola Tinubu winner of Nigeria’s 2023 presidential elections in Abuja

Nigeria’s president asks lawmakers for extra $4 billion funding

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="2048" height="1365" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/5ZGRRFFQPNPITEWABJ6LCA2HG4-scaled.jpg" alt="" class="wp-image-507832" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/5ZGRRFFQPNPITEWABJ6LCA2HG4-scaled.jpg 2048w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/5ZGRRFFQPNPITEWABJ6LCA2HG4-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/5ZGRRFFQPNPITEWABJ6LCA2HG4-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/5ZGRRFFQPNPITEWABJ6LCA2HG4-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/5ZGRRFFQPNPITEWABJ6LCA2HG4-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/5ZGRRFFQPNPITEWABJ6LCA2HG4-1536x1024.jpg 1536w" sizes="auto, (max-width: 2048px) 100vw, 2048px" /><figcaption class="wp-element-caption">A woman stands at the check out counter after shopping at Cherries Hypermarket in Abuja, Nigeria March 15, 2022. REUTERS/Afolabi Sotunde</figcaption></figure>



ABUJA, July 15 (Reuters)&nbsp;&#8211;&nbsp;Nigeria&#8217;s rate of inflation rose to a new 28-year high of 34.19% in annual terms in June, official data showed on Monday, but some analysts said it may have peaked as devaluation effects should start to fade from this month.



June&#8217;s data marked the 19th straight month that inflation had risen in Africa&#8217;s most populous nation, up from 33.95% in May.



It came roughly a week before the central bank is due to announce another interest rate decision, which will be closely watched after three hikes already this year.



Price pressures have been spurred by policies implemented by President Bola Tinubu, chiefly slashing petrol and electricity subsidies and devaluing the naira currency twice within a year.



The reforms have hurt the poor and left millions grappling with the worst cost-of-living crisis in decades.



Labour unions met with Tinubu last week to push for a new minimum wage after suspending an indefinite strike last month.



Data published by the National Bureau of Statistics on Monday showed food and non-alcoholic beverages continued to be the biggest contributor to inflation in June.



Food inflation rose to 40.87% from 40.66% the previous month.



Central Bank of Nigeria (CBN) Governor Olayemi Cardoso has said the bank will do whatever is necessary to tame inflation.



David Omojomolo, Africa economist at Capital Economics, said he believed inflation would soon start falling, probably from July, and drop below 30% by the end of the year.



&#8220;This, we think, will set the stage for the CBN to start thinking about interest rate cuts in the near future,&#8221; he wrote in a research note.



At its last monetary policy meeting in May, the central bank raised its key lending rate by 150 basis points to 26.25%. Its next rate decision is due on July 23.



(Additional reporting by MacDonald Dzirutwe in Lagos and Mohd Edrees in Bangalore;Editing by Alexander Winning and Bernadette Baum)

People shop at Cherries Hypermarket in Abuja

Nigeria’s inflation hit new 28-year high in June, may have peaked

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="576" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/UBA56WNMY5LWDEZ67BOH74TT2U-820x576.jpg" alt="" class="wp-image-507752" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/UBA56WNMY5LWDEZ67BOH74TT2U-820x576.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/UBA56WNMY5LWDEZ67BOH74TT2U-300x211.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/UBA56WNMY5LWDEZ67BOH74TT2U-128x90.jpg 128w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/UBA56WNMY5LWDEZ67BOH74TT2U-768x539.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/UBA56WNMY5LWDEZ67BOH74TT2U-1536x1078.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/UBA56WNMY5LWDEZ67BOH74TT2U-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">The head of Nigeria&#8217;s state oil company NNPC, Mele Kyari, speaks during an interview with Reuters in Abuja, Nigeria August 7, 2019. REUTERS/Afolabi Sotunde/File Photo</figcaption></figure>



LAGOS, July 15 (Reuters)&nbsp;&#8211;&nbsp;Nigerian state-owned oil firm NNPC shareholding in Dangote refinery has been whittled down to 7.2% from 20% after failing to pay the balance of funding owed, Aliko Dangote, the refinery&#8217;s owner told the BusinessDay newspaper.



NNPC, which is in talks over another oil-backed loan to boost its finances, agreed three years ago to buy shares for $2.7 billion in the 650,000 barrels per day refinery.



But Dangote told reporters during a briefing at the plant on the outskirts of Lagos on Sunday that NNPC failed to meet its part of the deal, the BusinessDay newspaper reported on Monday.



&#8220;NNPC no longer owns a 20% stake in the Dangote refinery. They were (meant) to pay their balance in June, but have yet to fulfil the obligations. Now, they only own a 7.2% stake in the refinery,&#8221; Dangote was quoted saying.



NNPC was not immediately available to comment.



The Dangote refinery has been struggling to secure enough crude supplies locally because Nigeria&#8217;s production is constrained by lack of investment, pipeline vandalism and crude theft.



That has forced the refinery to import U.S. crude to reach its full capacity next year.



Dangote said he expected the refinery and a fertiliser plant, which is in the same complex, to be listed on the Nigerian stock exchange in the first quarter of 2025.



A senior company executive said in May the refinery aimed for a dual listing on the London and Lagos bourses.



(Reporting by MacDonald Dzirutwe, Editing by Louise Heavens)

FILE PHOTO: The head of NNPC, Mele Kyari, speaks during an interview with Reuters in Abuja

Nigeria’s NNPC stake in Dangote refinery reduced over non-payment, CEO tells paper

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="2048" height="1365" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/VHFMCME3UZO7DANJAKAOCLCA2U-scaled.jpg" alt="" class="wp-image-495905" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/VHFMCME3UZO7DANJAKAOCLCA2U-scaled.jpg 2048w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/VHFMCME3UZO7DANJAKAOCLCA2U-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/VHFMCME3UZO7DANJAKAOCLCA2U-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/VHFMCME3UZO7DANJAKAOCLCA2U-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/VHFMCME3UZO7DANJAKAOCLCA2U-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/VHFMCME3UZO7DANJAKAOCLCA2U-1536x1024.jpg 1536w" sizes="auto, (max-width: 2048px) 100vw, 2048px" /><figcaption class="wp-element-caption">FILE PHOTO: Nigeria&#8217;s President Bola Tinubu looks on after his swearing-in ceremony in Abuja, Nigeria May 29, 2023. REUTERS/Temilade Adelaja/File Photo</figcaption></figure>



ABUJA, (Reuters) &#8211; Nigeria&#8217;s labour unions told President Bola Tinubu on Thursday that soaring prices and a weakening currency were biting hard as they pushed for a new minimum wage they say will help cushion workers from the worst cost of living crisis in generations.



<h2 class="wp-block-heading" id="h-why-it-s-important">WHY IT&#8217;S IMPORTANT</h2>



Labour unions suspended a strike in early June to give negotiations on the new minimum wage a chance but a failure to reach an agreement could prompt unions to call for new action.



Leaders in Nigeria are mindful of deadly riots in Kenya that forced the government to backtrack from raising taxes and are trying to balance between appeasing restive workers and borrowing more to meet wage demands.



Any major disruptions to economic activity could tip over an economy struggling with tepid growth, low production of oil, its main export, and high cost of living.



<h2 class="wp-block-heading" id="h-by-the-numbers">BY THE NUMBERS</h2>



The government is offering a monthly wage of 62,000 naira ($40) but unions want 250,000 naira ($160) and have asked authorities to roll back increases in gasoline and electricity prices. The last minimum wage was agreed in 2019.



<h2 class="wp-block-heading" id="h-what-s-next">WHAT&#8217;S NEXT?</h2>



The labour leaders said they had agreed some issues with Tinubu, which they did not disclose, and added that they would reconvene another meeting in a week.



($1 = 1,560.00 naira)



(Editing by MacDonald Dzirutwe)

FILE PHOTO: Nigeria’s President Bola Tinubu looks on after his swearing-in ceremony in Abuja

Nigeria unions meet president in push for new minimum wage

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="2048" height="1365" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/SU6XM3FG2VIQ7PJBFXDGABCTFM-1-scaled.jpg" alt="" class="wp-image-505362" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/SU6XM3FG2VIQ7PJBFXDGABCTFM-1-scaled.jpg 2048w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/SU6XM3FG2VIQ7PJBFXDGABCTFM-1-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/SU6XM3FG2VIQ7PJBFXDGABCTFM-1-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/SU6XM3FG2VIQ7PJBFXDGABCTFM-1-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/SU6XM3FG2VIQ7PJBFXDGABCTFM-1-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/SU6XM3FG2VIQ7PJBFXDGABCTFM-1-1536x1024.jpg 1536w" sizes="auto, (max-width: 2048px) 100vw, 2048px" /><figcaption class="wp-element-caption">Customers peruse goods at Makola market in Accra, Ghana, June 15, 2015. REUTERS/Francis Kokoroko/File Photo</figcaption></figure>



ACCRA, July 8 (Reuters)&nbsp;&#8211;&nbsp;Ghana has cleared a key hurdle to restructure its international bonds, as its official creditors confirmed the proposed debt rework was not overly favourable to bondholders.



&#8220;The Ministry &#8230; has received a formal confirmation from its Official Creditor Committee (OCC) that the Agreement in Principle reached with representatives of Eurobond holders is consistent with the Comparability of Treatment principle,&#8221; Ghana&#8217;s finance ministry said in a statement on Monday.



&#8220;Comparability of Treatment&#8221; is a principle from the Paris Club of wealthy creditor nations aimed at ensuring its members do not give outsized concessions compared to private lenders or others outside the group.



A Paris Club spokesperson confirmed the OCC had found Ghana&#8217;s bond restructuring deal gave comparable treatment to different types of creditor.



Leeuwner Esterhuysen, economist at Oxford Economics Africa, said the green light from official creditors meant Ghana could soon issue new bonds to investors to replace the ones being restructured.



&#8220;The country aims to begin the bond exchange this month still and conclude it by the end of September,&#8221; he said.



Ghana had in January reached a deal to restructure $5.4 billion of loans with its Official Creditor Committee, including China and France, which co-chair the group.



The country clinched an agreement in principle with two bondholder groups to restructure around $13 billion of its international bonds in late June, making it the second African country after Zambia in recent weeks to reach the final stages of a debt overhaul.



The government now needs to ask all its bondholders to vote on the proposed deal, which if confirmed would finalise the debt rework.



The West African gold and cocoa producer defaulted on most of its $30 billion in external debt in 2022, after the COVID-19 pandemic, the war in Ukraine and higher global interest rates exacerbated years of overstretched borrowing.



(Reporting by Christian Akorlie; Writing by Alexander Winning; Editing by Karin Strohecker and Arun Koyyur)

Customers peruse goods at Makola market in Accra

Ghana gets green light for bond rework from official creditors

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="584" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/NW2AS3N47ZIR7LBODI45CSJWAM-820x584.jpg" alt="" class="wp-image-505311" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/NW2AS3N47ZIR7LBODI45CSJWAM-820x584.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/NW2AS3N47ZIR7LBODI45CSJWAM-300x214.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/NW2AS3N47ZIR7LBODI45CSJWAM-126x90.jpg 126w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/NW2AS3N47ZIR7LBODI45CSJWAM-768x547.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/NW2AS3N47ZIR7LBODI45CSJWAM-1536x1094.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/NW2AS3N47ZIR7LBODI45CSJWAM-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">ECOWAS President Omar Alieu Touray addresses the Heads of State and delegates during the Economic Community of West African States (ECOWAS) summit in Abuja, Nigeria July 7, 2024. REUTERS/Marvellous Durowaiye</figcaption></figure>



ABUJA, July 8 (Reuters)&nbsp;&#8211;&nbsp;The Economic Community of West African States (ECOWAS) said it was disappointed with a lack of progress in reconciling with breakaway, junta-led Burkina Faso, Mali and Niger and will make &#8220;more vigorous&#8221; reconciliation efforts.



ECOWAS commission president Oumar Touray said at the start of a summit in the Nigerian capital Abuja on Sunday the region risks disintegeration and worsening insecurity after the three Alliance of Sahel States (AES)signed a confederation treaty.



That treaty underscored the juntas&#8217; determination to exit the near 50-year ECOWAS after also severing military and diplomatic ties with Western powers while seeking greater ties with Russia.



&#8220;The Authority expresses disappointment with the lack of progress in engagements with the authorities of Burkina Faso, Mali and Niger and instructs the President of the Commission to facilitate a more vigorous approach,&#8221; ECOWAS said in a communique released on Monday.



But ECOWAS would &#8220;develop a forward-looking contingency plan&#8221; regarding all eventualities in relations with the AES.



Juntas in Burkina Faso, Niger and Mali seized power in a series of military coups between 2020-2023.



It is not clear how closely the AES will harmonise political, economic and defence policies as it struggles to contain a decade-old battle with Islamist insurgents and grow economies that are among the world&#8217;s poorest.



Their departure could weaken ECOWAS and Touray said the freedom of movement and a common market of 400 million people offered by the bloc were under threat.



ECOWAS re-elected Nigerian President Bola Tinubu chairman for another year and tasked Senegalese and Togolese leaders to negotiate with the juntas to try bring them back into the bloc.



The ECOWAS leaders approved a decision to mobilise a 5,000 strong regional standby counter-terrorism force. The force would start as a 1,650-man brigade to be increased over time.



Member countries are expected to fund the force and will also approach the African Union for financial support.



(Editing by MacDonald Dzirutwe and Angus MacSwan)

Leaders from West African bloc ECOWAS meet at summit in Abuja

West Africa’s ECOWAS decries lack of progress with junta states

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="2048" height="1366" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1932805483-scaled.jpg" alt="" class="wp-image-504220" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1932805483-scaled.jpg 2048w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1932805483-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1932805483-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1932805483-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1932805483-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1932805483-1536x1024.jpg 1536w" sizes="auto, (max-width: 2048px) 100vw, 2048px" /><figcaption class="wp-element-caption">Heineken Lokpobiri, Nigeria&#8217;s oil minister, during a Bloomberg Television interview on day two of the World Economic Forum (WEF) in Davos, Switzerland, on Wednesday, Jan. 17, 2024. The annual Davos gathering of political leaders, top executives and celebrities runs from January 15 to 19. Photographer: Stefan Wermuth/Bloomberg via Getty Images</figcaption></figure>



ABUJA, July 4 (Reuters)&nbsp;&#8211;&nbsp;Nigeria has been chosen to host the newly formed Africa Energy Bank (AEB), its oil minister said on Thursday, as Africa’s top oil producer beat three rival countries for rights to the multilateral lender.



The decision, reached at an extraordinary meeting of the Council of Ministers of the African Petroleum Producers Organization (APPO), places Nigeria at the forefront of Africa&#8217;s energy future, Minister of State Petroleum Resources Heineken Lokpobiri, said in a statement.



Nigeria&#8217;s bid to host the AEB was strengthened in late May after it ratified the bank&#8217;s charter and President Bola Tinubu approved a $100 million investment to the bank, greater than the required $83.33 million for member states.



The fossil fuel-focused bank, a partnership between Afrexim Bank and APPO, aims to fund energy projects on the continent and support its energy transition goals.



&#8220;This decision reflects our collective ambition to create African solutions to African energy challenges,&#8221; Lokpobiri said.



&#8220;The African Energy Bank will be instrumental in providing the necessary financial backbone for energy projects that will drive growth and development across the continent,&#8221; he added.



The AEB initially has $5 billion to spend when it takes off later this year.



Analysts said that Nigeria, as a founding member of APPO and Africa&#8217;s top energy producers, has shown strong interest in the bank as the country makes a new push for investment into its lagging oil and gas industry.



&#8220;Hosting the bank would be a vote of confidence in Nigeria at a time its energy industry badly needs a boost,&#8221; Clementine Wallop, director for sub-Saharan Africa at political risk consultancy Horizon Engage, said before the announcement was made.



The three other countries that vied to host the AEB are Algeria, Benin and Ghana, after Ivory Coast and South Africa didn&#8217;t meet the necessary requirements.



(Additional reporting by Isaac Anyaogu in Lagos, Wendell Roelf in Cape Town; Editing by Elisha Bala-Gbogbo and David Gregorio)

Day Two Of The World Economic Forum (WEF) 2024

Nigeria beats rivals for bid to host new Africa Energy Bank

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="2048" height="1365" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/76KI5H4MAFL5ZK7OGV4LXR2UG4-scaled.jpg" alt="" class="wp-image-459116" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/76KI5H4MAFL5ZK7OGV4LXR2UG4-scaled.jpg 2048w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/76KI5H4MAFL5ZK7OGV4LXR2UG4-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/76KI5H4MAFL5ZK7OGV4LXR2UG4-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/76KI5H4MAFL5ZK7OGV4LXR2UG4-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/76KI5H4MAFL5ZK7OGV4LXR2UG4-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/76KI5H4MAFL5ZK7OGV4LXR2UG4-1536x1024.jpg 1536w" sizes="auto, (max-width: 2048px) 100vw, 2048px" /><figcaption class="wp-element-caption">FILE PHOTO: The sun is seen behind a crude oil pump jack in the Permian Basin in Loving County, Texas, U.S., November 22, 2019. REUTERS/Angus Mordant/File Photo</figcaption></figure>



BRUSSELS/LONDON, July 4 (Reuters) &#8211; Nigeria&#8217;s debt to gasoline suppliers has surpassed $6 billion &#8211; doubling since early April &#8211; as state oil firm NNPC struggles to cover the gap between fixed pump prices and international fuel costs, six industry sources said.



Nigerian President Bola Tinubu announced an end to expensive fuel subsidies last year, allowing pump prices to triple. But state oil company NNPC capped pump prices shortly afterward as citizens chafed under rising cost of living.



The cap, coupled with a naira currency crash, allowed the subsidy to creep back. Tinubu&#8217;s government expects the subsidy to cost at least $3.7 billion this year.



Analysts, NGOs and even government officials have slammed the subsidy for years as wasteful and corrupt. But Nigerians, who get few government services, have long seen cheap fuel as their right, especially in the current cost-of-living crisis.



Last week, deadly riots forced Kenya&#8217;s debt-burdened government to cancel planned tax rises, casting a shadow over efforts elsewhere to inflict any further pain on citizens stung by rising inflation.



Senegal&#8217;s energy subsidy bill remains high, at 3.3% of GDP, while Egypt and Angola are also trying to axe subsidies to shore up state finances.



NNPC began struggling early this year when late gasoline payments surpassed $3 billion.



The company has still not paid for some January imports, traders said, and the late payments amount to $4 billion-$5 billion. Under contract terms, NNPC is meant to pay within 90 days of delivery.



NNPC declined to comment.



&#8220;The only reason traders are putting up with it is the $250,000 a month (per cargo) for late payment compensation,&#8221; one industry source said.



At least two suppliers already stopped participating in recent tenders after hitting self-imposed debt exposure limits to Nigeria, the sources said, meaning they will not send more gasoline until they receive payments.



Traders thrive in risky environments, but they place limits on how much credit they allocate per trade in order to avoid too much exposure on one borrower. These limits vary by company based on their size and where they operate.



As a result, Nigeria&#8217;s tenders to buy gasoline in June and July were smaller, traders said. NNPC will import via tender about 850,000 tonnes in July, two of the sources said, down from the typical 1 million tonnes in previous months.



Fresh fuel queues have already started to form in Lagos this week.



Nigeria, Africa&#8217;s largest oil exporter, imports virtually all its fuel due to years of neglect at its state-owned oil refineries. The newly opened 650,000 barrel per day Dangote refinery has not yet produced marketable gasoline, and is selling other fuels abroad.



The country has few savings to fall back upon as corruption and wasteful spending have eaten up decades of oil revenues. Cash-strapped NNPC has also mortgaged much of its spot oil cargoes, limiting what it can sell for cash.



In late 2023, NNPC secured its biggest-ever oil-backed loan worth $3.3 billion from Afreximbank and a consortium of traders, including Gunvor, to shore up the country&#8217;s foreign exchange.



(Reporting by Julia Payne and Libby George; Additional reporting by Isaac Anyaogu in Lagos; Editing by Jan Harvey)

FILE PHOTO: The sun is seen behind a crude oil pump jack in the Permian Basin in Loving County

As Nigeria’s gasoline debt hits $6 billion, some traders back out, say sources

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/01/GVVD7RTPANKEHJR4J5T4JRVGHA-820x547.jpg" alt="" class="wp-image-422301" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/01/GVVD7RTPANKEHJR4J5T4JRVGHA-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/GVVD7RTPANKEHJR4J5T4JRVGHA-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/GVVD7RTPANKEHJR4J5T4JRVGHA-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/GVVD7RTPANKEHJR4J5T4JRVGHA-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/GVVD7RTPANKEHJR4J5T4JRVGHA.jpg 960w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A man trades U.S. dollars for Ghanaian cedis at a currency exchange office in Accra, Ghana, June 15, 2015. Picture taken June 15. REUTERS/Francis Kokoroko</figcaption></figure>



ACCRA, June 24 (Reuters)&nbsp;&#8211;&nbsp;Ghana has reached an agreement in principle with&nbsp;two bondholder&nbsp;groups to restructure&nbsp;some$13 billion of&nbsp;international debt,&nbsp;it said on Monday,&nbsp;taking it a step&nbsp;closer to completing its debt overhaul that has been years in the making.



Under the agreement, bondholders will forego about $4.7 billion of their claims and provide cash flow relief of about $4.4 billion during the period of Ghana&#8217;s current financial support programme with the International Monetary Fund that is scheduled to end in 2026.



&#8220;The formal launch of the consent solicitation is expected in the upcoming weeks,&#8221; the government said in a statement.



The agreement will provide Ghana a path to economic recovery through significant debt relief and provision of cash flow, the committee representing international bondholders said in a statement, while welcoming the deal.



The deal comes a week after Ghana struck another agreement with its bilateral creditors, paving the way for the IMF&#8217;s executive board to sign off on a $360 million disbursement after the second review of Ghana&#8217;s $3 billion programme.



The board is scheduled to meet on June 28.



The West African gold and cocoa producer defaulted on most of its $30 billion in external debt in 2022,&nbsp;after&nbsp;the&nbsp;fallout from&nbsp;the COVID-19 pandemic, the war in Ukraine and higher global interest rates&nbsp;exacerbated economic strains.



It started formal talks with two groups of bondholders in mid-March &#8211; a group of Western asset managers and hedge funds and another one including regional African banks.



The negotiations, however,&nbsp;had&nbsp;stalled in April after the proposed deal failed to meet the&nbsp;IMF&#8217;s&nbsp;debt sustainability analysis requirements, and both sides were under pressure to finalise an agreement before December elections in Ghana.



Investors are watching Ghana&#8217;s debt restructuring closely after Zambia&#8217;s bondholders signed off on the southern African nation&#8217;s own debt overhaul which was more than three years in the making.



Ghana&#8217;s international bonds inched higher on the day, reversing earlier losses, with most of the curve bid between 51-53.5 cents in the dollar, Tradeweb data showed.



(Reporting by Maxwell Akalaare Adombila in Accra and Duncan Miriri in Nairobi, additional reporting by Marc Jones, MaPrerna Bedi, Shanima A and Alexander Winning in Johannesburg; Editing by Karin Strohecker and Anil D&#8217;Silva)

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Ghana reaches agreement in principle on $13 bln bond rework

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/IJVJN3SG2BNFJFNACAXCPMV3RA-820x547.jpg" alt="" class="wp-image-498805" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/IJVJN3SG2BNFJFNACAXCPMV3RA-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/IJVJN3SG2BNFJFNACAXCPMV3RA-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/IJVJN3SG2BNFJFNACAXCPMV3RA-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/IJVJN3SG2BNFJFNACAXCPMV3RA-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/IJVJN3SG2BNFJFNACAXCPMV3RA-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/IJVJN3SG2BNFJFNACAXCPMV3RA-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A general view of the Makola market, one of the country&#8217;s largest trading centres in Accra, Ghana March 26, 2022. Picture taken March 26, 2022. REUTERS/Francis Kokoroko/File Photo</figcaption></figure>



ACCRA, June 20 (Reuters) &#8211; Ghana has reached an agreement in principle with its bondholders for the restructuring of $13 billion worth of international debt, three sources told Reuters on Thursday, on the heels of a deal finalised with official creditors earlier this month.



The deal will see bondholders take a haircut on principal of up to 37% and maturity of the bonds lengthened, two of the sources said.



The West African gold and cocoa producing nation defaulted on most of its $30 billion in external debt in 2022, under the strain of the COVID-19 pandemic, the war in Ukraine and higher global interest rates and surging debt.



Like Zambia, Ghana also signed up for debt treatment under the G20 Common Framework, a process designed to facilitate quick debt overhauls and to bring the newest large bilateral lender, China, into the process.



Zambia&#8217;s bondholders signed off on its restructuring earlier this month, after the southern African copper producer became the first African country to default during the pandemic.



For Ghana, &#8220;things are pretty close. We can expect an announcement by next week,&#8221; one source said, asking not to be named because they were not authorised to speak to media.



The other two sources said the announcement could come as soon as Friday.



Ghana&#8217;s finance ministry and the Paris Club, an alliance of creditor nations, could not immediately be reached for comment due to the late hour.



Ghana started formal talks with two groups of bondholders in mid-March &#8211; a group of Western asset managers and hedge funds and another one including regional African banks.



The negotiations, however, stalled in April after the proposed deal failed to meet the International Monetary Fund&#8217;s (IMF) debt sustainability analysis requirements, forcing both sides to regroup to find a suitable solution.



The three sources said the deal had since fit into a revised IMF debt framework on Ghana shared with bondholders earlier, resulting in the agreement in principle.



The world&#8217;s No.2 cocoa producer earlier this month agreed a pact with its official creditor committee to formalise a debt restructuring deal reached in January.



The outlines of the agreement paved the way for the IMF executive board to hold a June 28 meeting on Ghana to consider a second review of its $3 billion loan, three-year package and the release of the next tranche of $360 million.



(Editing by Alessandra Prentice, Shri Navaratnam and Jamie Freed)

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Ghana reaches agreement in principle on $13 bln bond rework

Ghana, bondholders reach agreement in principle to restructure $13 bln debt, sources say

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