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CIBN backs bank recapitalisation for enhanced economic growth

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The Chartered Institute of Bankers of Nigeria (CIBN) has expressed support for the planned recapitalisation exercise for banks in the country.

Ken Opara, President/Chairman of Council, CIBN, expressed this during the 2024 annual lecture of the institute on Tuesday in Lagos.

Opara said adequate liquidity within the banking system was fundamental to fostering sustainable economic growth and development.

He said that the recapitalisation would further help banks to deepen liquidity and guarantee access to credit needed for economic growth and prosperity.

He said that CIBN and the Nigeria Exchange Group (NGX) had formed collaborations toward building capacity for the recapitalisation of banks.

Opara added that the institute was also collaborating with Africa Guarantee Fund (AGF) for capacity building for SMEs, preparing them and building their capacity to access finance.

He called for more allocation of credit to the real sector, which was the foundation of the nation’s economic activities for increased liquidity.

Opara stressed the need for addressing challenges faced by the sector to enhance its competitiveness against foreign counterparts.

To resolve the challenges, he urged the government to improve further the ease of doing business and infrastructural development, such as power, roads, and rail networks.

The CIBN president also called for industrial centres where companies could co-habit and share common infrastructure,
harmonise and reduce the various taxes and levies, including locating them in a single hub.

He said the theme, “Improving Availability of Credit in the Nigerian Real Economy: The Critical Importance of Liquidity”, was timely to address current challenges in the nation.

“As we navigate the complexities of our current economic landscape, it has become increasingly evident that ensuring adequate liquidity within the banking system is fundamental to fostering sustainable economic growth and development.

“The real economy comprises the agriculture, manufacturing, construction, and services sectors and serves as the tangible foundation of the nation’s economic activity.

“These sectors collectively represent the intricate web of goods and services that drive economic growth, create employment opportunities, and enhance the overall standard of living.

“Despite the significant relevance of the real sector, access to credit for such key sectors compared to other climes is relatively low,” he said.

He said a survey conducted in more than 40 economies and released by Statista in 2024 revealed that nearly 141 trillion dollars worth of credit was lent to the real sector in advanced economies in the second quarter of 2022.

He added that the figures were twice as high as the volume of credit to the same sector in emerging markets.

He commended improvements in liquidity within Nigeria’s real sector but called for increased credit to sector, particularly agriculture.

“According to data from the Central Bank of Nigeria (CBN), the Net Domestic Credit stood at 66.4 trillion Naira as of December 2022, showcasing the substantial credit extended by financial institutions to the real sector of the economy.

“This figure experienced a significant surge to 96.1 trillion Naira by December 2023, highlighting the tremendous potential for growth and development in the real sector,” he said.

He listed credit volume allocated to the key sectors, saying the Agricultural sector had N5.8 trillion representing about six per cent of the total credit.

He said the manufacturing sector had N19.7 trillion, representing approximately 21 per cent of the total credit, while the services sector had N36 trillion, representing 37.4 per cent of the total credit.

“I humbly propose that we consider offering more credit to these key sectors and particularly the agriculture sector.

“It is for this reason, ladies and gentlemen, that the recapitalisation exercise is a welcome development.

“The recently announced upward review of the Minimum Capital Requirements of Nigeria by the Central Bank of Nigeria would further empower banks to extend more credit to the economy’s productive sectors,” he said.

The Guest Speaker, Prof. Graham Penn, speaking on the theme, explained how other developed countries were leveraging on credit and the need for Nigeria to increase liquidity for economic prosperity.

Penn, a professor of International Finance Law at University College London, listed challenges and measures Nigerian banks, regulators and businesses could adopt to implement laws and regulations to facilitate true sale securitisation.

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Tinubu targets increased gas production, unveils plants in Delta, Imo

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President Bola Tinubu will commission three critical gas infrastructure projects undertaken by the Nigerian National Petroleum Company Limited and its partners.

They are the AHL Gas Processing Plant 2 in Delta State, the ANOH Gas Processing Plant, and the ANOH-OB3 CTMS Gas Pipeline Projects in Imo State. The gas projects have a combined estimated output of 1,400 million standard cubic feet per day.

Special Adviser to the President on Media and Publicity, Ajuri Ngelale, disclosed this in a statement he signed Friday titled ‘President Tinubu to commission critical gas infrastructure projects.’

“The projects support the federal government’s effort to grow value from the nation’s gas assets while eliminating gas flaring…and deepen domestic gas supply as a critical enabler for economic prosperity,” said Ngelale.

The AHL Gas Processing Plant 2 is an expansion to the Kwale Gas Processing Plant, which currently supplies about 130MMscf/d of gas to the domestic market.

The processing plant is designed to process 200MMscf/d of rich gas and deliver lean gas through the OB3 Gas Pipeline. However, the facility already injecting gas is scheduled to ramp up to 180mmscfd by the end of May.

Ngelale said this additional gas supply will “support further rapid industrialisation of Nigeria” and also “produce about 160,000 MTPA of Propane and 100,000 MTPA of Butane, which will reduce the dependency on LPG Imports.”

The AHL Gas Plant is being developed by AHL Limited, an incorporated Joint Venture owned by NNPC Limited and SEEPCO.

Meanwhile, the ANOH gas plant is an integrated 300MMscf/d capacity gas processing plant designed to process non-associated gas from the Assa North-Ohaji South field in Imo State.

The plant will produce dry gas, condensate, and LPG. The gas from the ANOH plant will significantly increase the domestic gas supply, leading to increased power generation and accelerated industrialisation.

The ANOH Gas Plant is being developed by ANOH Gas Processing Company, an incorporated Joint Venture owned by NNPC Limited and Seplat Energy Plc on a 50-50 basis.

With the facility mechanically completed in December 2023, the NNPC says it is finalising pre-commissioning activities.

Third is the ANOH-OB3 CTMS Gas Pipeline Project, which the Presidency said involves the engineering, procurement, and construction of 36”x23.3km ANOH-OB3 Project.

“The Transmission Gas Pipeline will evacuate dry gas from the Assa North-Ohaji South primary treatment facility to the OB3 Custody Transfer Metering Station for delivery into the OB3 pipeline system,” read the statement.

About 600MMscf/d is estimated to be available from two separate 2 x 300MMscf/d capacity gas processing production trains from AGPC & SPDC JV.

The 23.3km Anoh-OB3 PPL is scheduled for mechanical completion by May 15, 2024.

When commissioned, the projects will increase gas supply to the domestic market by approximately 500mmscf/d, creating a better investment climate and promoting balanced economic growth cumulatively, the Presidential Spokesman affirmed

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House of Reps to review laws, practices restricting press freedom

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The House of Representatives said on Friday that it would review the laws and practices restricting press freedom and the ability of the media to carry out its constitutional role in the country.

Rep. Akin Rotimi, Chairman, House Committee on Media and Public Affairs, said this while delivering a keynote address, to mark the 2024 World Press Freedom Day organised by the Konrad Adenauer Stiftung, Nigeria.

Rotimi said the legislature would prepare the ground for journalists to operate without any hindrance provided they adhere to the tenets of their profession.

“We will enhance good governance practices, transparency and
accountability through media chats, public hearings, town hall meetings, etc., amongst other scheduled legislative actions in Agenda 6,” he said.

The International Press Freedom Day, celebrated every May 3, is a day of reflection among media professionals and stakeholders on issues of press freedom and professional ethics.

Rotimi said that the 10th House of Representatives led by Speaker Tajudeen Abbas, had resolved to work with the media to ensure a successful running of the present government.

He said that the 1999 Constitution of the Federal Republic of Nigeria (as amended) conferred on the press a critical role as contained in Section 22 regarding obligations of the mass media.

“The role states that the press, radio, television and other agencies of the mass media shall at all times be free to uphold the fundamental objectives in this chapter and uphold the responsibility and accountability of the government to the people.

“Amongst many other challenges in the course of the discharge of this constitutional mandate, the press faces a disproportionate exposure to harm in the face of the widespread insecurity challenges in the country.

“There are also issues around the dearth of funding but I call on all stakeholders to continue with concerted efforts to address these challenges.

“There is no gainsaying that there are many miles to cover as far as media freedoms in our country is concerned but we have greatly improved from the days of military intervention in our polity (particularly, 1983 – 1998),” Rotimi added.

He urged the media to encourage introspection and self-regulation, and also look at the self-defeating ways that the press delegitimises their own struggle by not upholding ethics, and address them.

Mr Lukas Laible, Deputy Resident Representative, Konrad Adenauer Stiftung, Nigeria, said the press had become the enabler of Nigerian democracy.

“May 3 of every year is an important day for journalists as freedom of speech is the beacon of the practice.

“Without freedom of speech there won’t be freedom of press, and without freedom of the press, no society can be free.

“Journalists don’t just cover events, they are the people’s transmitter and they show capability in handling issues. They hold political leaders accountable and that is what makes democracy viable.

“Holding political leaders accountable enhances good governance. If the press fails to hold the government accountable, it will deviate from the people,” Laible said.

According to him, the press is so much trusted by the people and as such must make the people know the value of a free world.

Mrs Franca Aiyetan, Secretary, Nigerian Broadcasting Commission (NBC), who spoke during a panel session, urged journalists to always do their job in a way that would not consume the people.

Aiyetan, while speaking on the theme “Navigating the Intersection of Media Regulations, Press Freedom Advocacy and Ethical Journalism in the Face of Environmental Crises”, noted that NBC was established to have a formidable Nigerian media.

She said that NBC was not established as an attack dog for the government and as such would want the press to always work with it.

“If a detail about a truth will set two tribes against each other, then, there is something wrong with that truth.”

Another panelist, Mrs Mojirayo Ogunlana, the Executive Director, Digicivic Initiative, said journalists needed laws that should protect them while discharging their job.

“Threats to the lives of journalists should be declared as a state of emergency,” Ogunlana added.

She urged media practitioners to self-regulate themselves to prevent the government from exploiting any vacuum that could give it the opportunity to pounce on them.

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Stop using repressive laws to intimidate journalists – SERAP, NGE tell FG

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The Socio-Economic Rights and Accountability Project, SERAP, and Nigeria Guild of Editors, NGE, have called on Nigerian authorities at all levels of government to stop using repressive and anti-media laws to target, intimidate and harass journalists, critics and media houses.

The groups made the demand after an interactive session on ‘the state of press freedom in Nigeria’ held at the Radisson Blu Hotel in Ikeja.

In a joint statement, SERAP and NGE said that, “the government of President Bola Tinubu, the country’s 36 governors and FCT minister must now genuinely uphold press freedom, ensure access to information to all Nigerians, obey court judgments, and respect the rule of law”.

They expressed concerns about the escalating crackdown on the right to freedom of expression and media freedom and the flagrant disregard for the rule of law by authorities at all levels of government.

The groups note that the suppression of the press in recent times takes various forms ranging from extrajudicial to unlawful detentions, disappearances, malicious prosecutions and wrongful use of both legislation and law enforcement.

The statement read in part: “We would continue to speak truth to power and to hold authorities to account for their constitutional and international obligations including on freedom of expression and media freedom.

“Nigeria as a country has a long and unpleasant history of press gagging and clampdown on media freedom, which is evidence of extensive state censorship of media and in some cases, the utter control of state-owned media houses.

“This position has not changed considerably despite almost 25 years of unbroken democratic rule in the Fourth Republic.”

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