Nigeria Times

The Nigerian Geological Survey Agency (NGSA) has reassured residents of the Federal Capital Territory (FCT) about the recent earth tremors, emphasizing that they pose no significant threat to the environment.

Key Points:

• Tremor Monitoring: The NGSA reported approximately 48 earthquake events from September 13 to September 16, 2024. The tremors’ intensity and frequency increased during this period.
• Findings: The tremors were primarily mild to light, with magnitudes ranging from III-IV on the Modified Mercalli Scale. They are not considered dangerous.
• Source of Tremors: The tremors are attributed to accumulated stress along faults and associated fractures near the FCT, particularly around the Mpape and Katampe areas.
• Current Situation: As of September 17, 2024, the tremors have weakened, with only a few weak events recorded. The NGSA has conducted on-site assessments and found no major threats.
• Public Advice: Residents in affected areas, including Mpape, Katampe, and Maitama, are advised to remain calm as the tremors are categorized as low-impact.

NGSA’s Commitment: The agency is continuously monitoring seismic activities and will provide updates if needed. NGSA’s seismic stations are under real-time surveillance to ensure prompt alerts on significant events.

The NGSA’s update aims to alleviate concerns and assure the public of their safety regarding the recent seismic activities in the FCT.

The Central Bank of Nigeria (CBN) has announced a reconstitution of the board of directors for Keystone Bank, aimed at driving the bank’s continued growth and stability.

New Board Appointments:

• Chairman: Lady Ada Chukwudozie, a distinguished figure with nearly 30 years of experience in business strategy and management, having worked with De-Endy Industrial Company Limited, Dozzy Group, and Vogue Afrique Magazine.
• Non-Executive Directors: Abdul-Rahman Esene, Mrs. Fola Akande, Akintola Ayodeji Olusoji, Obijiaku Samuel, and Senator Farouk Bello.

Executive Directors:

• Ladi Oluwole: Appointed as Executive Director of Risk Management, brings over 20 years of experience in credit and enterprise risk management, including previous roles at Bank of America.
• Abubakar Usman Bello: Executive Director for the Northern Directorate, with extensive experience in managing corporate, retail, and public sector clients.

Experience of New Board Members:

• Abdul-Rahman Esene has 43 years of experience in banking and finance, previously with Fidelity Bank and Afrinvest.
• Mrs. Fola Akande has over 25 years in legal and compliance roles, including stints at Cadbury and Stanbic Chartered Bank.
• Akintola Ayodeji Olusoji has a 30-year background in accounting and finance, with experience at Sterling Bank and Access Bank.
• Obijiaku Samuel has over 35 years in banking and treasury operations, formerly with Zenith Bank and Fidelity Bank.
• Senator Farouk Bello brings 20 years of banking experience and leadership from roles in the National Assembly and Guaranty Trust Bank.

Keystone Bank’s Managing Director and CEO, Hassan Imam, expressed optimism about the new appointments, noting that their extensive expertise would significantly contribute to the bank’s strategic repositioning and growth.

In the first half of 2024, 20 Nigerian state governments borrowed a staggering N446.29 billion, driven by declining revenues and mounting debt servicing costs. This borrowing trend underscores the severe financial challenges faced by state administrations.

Debt servicing has become a significant burden, consuming 80.7% of the Internally Generated Revenue (IGR) for 29 states in the first six months of the year. Despite a 40% increase in federal allocations, states have struggled to balance their books, with the additional funding insufficient to offset existing debt obligations.

The rise in debt servicing costs is attributed in part to the depreciation of the naira, which has increased the cost of servicing foreign debt. This economic strain has led to a heavy reliance on borrowing to cover budget deficits and operational expenses.

The 2023 fiscal reforms, including the removal of the petrol subsidy and currency adjustments, were expected to ease financial pressures on states. However, the anticipated benefits have not materialized as hoped, leading many states to incur additional debt.

States such as Cross River, Oyo, and Kogi have been prominent borrowers, with Cross River alone securing N121.22 billion in loans. Other states, including Katsina, Niger, and Gombe, have also borrowed substantial amounts to address their financial shortfalls.

The mounting debt crisis highlights the broader issue of high governance costs and inadequate fiscal management at the state level. Financial experts have criticized the lack of oversight and accountability in state administrations, arguing that excessive borrowing and mismanagement exacerbate the fiscal challenges.

Dr. Muda Yusuf of the Centre for Promotion of Private Enterprise noted that while borrowing for development can be beneficial, the current debt levels are unsustainable. He emphasized that the naira’s depreciation significantly impacts the cost of servicing foreign loans.

Professor Segun Ajibola from Babcock University also pointed to the high cost of governance as a major issue, criticizing the lack of effective oversight by state assemblies. He argued that the focus should be on improving governance efficiency and transparency to alleviate the financial pressures on states.

As states continue to grapple with financial instability, the need for reform in fiscal management and governance practices remains urgent. The substantial borrowing and high debt servicing costs pose significant challenges to long-term economic stability and development.

The Federal Government has issued a flood alert to 11 Nigerian states in response to the upcoming release of water from the Lagdo Dam in Cameroon. According to a statement from the Director General of the Nigeria Hydrological Services Agency (NIHSA), Umar Muhammed, controlled water releases from the dam will begin on Tuesday, September 17, 2024.

The release is expected to escalate from an initial discharge rate of 100 cubic meters per second (m³/s) to 1000 m³/s over the next seven days due to inflows from the Garoua River, a major tributary to the Benue River.

Despite the planned release, NIHSA has assured that major flooding is not anticipated, as water levels along the Benue River remain within manageable limits. However, residents of states along the river system, including Adamawa, Benue, Taraba, and others, have been urged to remain vigilant and take precautionary measures to mitigate potential flood risks.

The agency will continue monitoring river conditions and provide updates to prevent further flood disasters. The Lagdo Dam, located on the Benue River in Cameroon, has historically been linked to flooding issues in Nigeria, especially during periods of heavy water release.

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has addressed concerns regarding the Nigerian National Petroleum Company Limited’s (NNPCL) role in setting petrol prices from the Dangote Refinery. NMDPRA clarified that the pricing structure is based on a “willing buyer, willing seller” agreement, following the full deregulation of the petroleum sector under the Petroleum Industry Act (PIA) of 2021.

NMDPRA CEO Engr. Farouk Ahmed explained that market dynamics now determine petrol prices in Nigeria. He stressed that the authority’s role is to ensure no exploitation of consumers, while the prices announced by NNPCL are specific to its outlets. Concerns arose after NNPCL set prices at ₦950.22 per litre in Lagos and ₦1,019.22 in Borno, raising fears of price manipulation. However, Ahmed assured that independent marketers are free to set their own prices.

While acknowledging the high prices due to supply shortages, Ahmed expressed optimism that competition will increase and prices will stabilize as more players enter the market.

President Bola Tinubu is expected to reshuffle his cabinet ahead of Nigeria’s Independence Day on October 1, 2024, according to sources within the presidency. The move comes in response to growing criticism of the administration’s handling of the economy, with several key ministries, including Petroleum Resources, Power, Transport, Water Resources, Environment, and Defense, likely to be affected.

Reports suggest that dissatisfaction within the ruling All Progressives Congress (APC) is mounting, as party members express concerns over the current economic policies. An APC chieftain, speaking anonymously, emphasized the need for swift changes to regain public confidence before the 2027 elections.

The APC official also highlighted frustration over the delay in replacing Simon Lalong, the former Minister of Labour and Employment, who resigned to assume his Senate seat. Similarly, the Ministry of Humanitarian Affairs remains vacant after the suspension of its former minister, Betta Edu, over allegations of corruption.

The reshuffle, aimed at addressing both public and internal party concerns, is expected to be announced before or during the president’s October 1st address, with performance evaluations of ministers playing a key role in the decision.