Dangote Refinery World’s Largest Jet Fuel Exporter, NCS Clarifies Lawful Enforcement +More Business

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[00:00:01][music] >> Well, hello and welcome to Business Morning. This morning is a third trading day of this holiday shortened week. It's the last trading day of May and the last trading day of this week. And I'm sure investors will be rushing into the markets now. We'll definitely check how the volume and value goes at the end of trade today. But let's get a check now on the stock commodity. That's oil was in off futures. They fell more than 1% today. We're on track for their steepest weekly decline since early April. You know, following reports that the US and Iran had reached a potential deal to extend a ceasefire. And we see the impact already in the markets. 1.32% lower. That's for Brent crude. $92.46 a barrel. Yes, uh it's we've been getting used to that $100 per barrel level, but it's a big drop. We're now at 92.46. WTI crude 87.48.

[00:01:05]Losing that $90 level. 1.60% lower. So, we're seeing a 10% drop.

[00:01:12]That's for the whole trading week. The steepest fall since April.

[00:01:18]Uh six. Well, we see WTI has dropped about 9.2%. Biggest weekly loss since the week that ended on April 13th. So, except there's a miracle um today.

[00:01:30]That's That's what we're going to see um for this trading week. That's for Brent and WTI. All right. Two other stories now. Nigeria's refining sector is making global headlines as the Dangote Petroleum Refinery emerges as the world's largest exporter of jet fuel for the month of April. According to report by S&P Global Energy, the refinery achieved the milestone following disruptions in global fuel supply chains linked to tensions in the Middle East, which increased demand for alternative aviation fuel suppliers. Our refinery CEO, Mr. David Byrd, says the facility is now operating at near full capacity of about 650,000 barrels per day and has shifted into what he described as max jet mode to meet rising international demand.

[00:02:15]The development further positions Nigeria as an emerging player in global refined petroleum exports with Dangote Refinery expanding its reach across Africa, Europe, and other international markets.

[00:02:29]And now we see Nigeria's maritime and petroleum import operations are under fresh scrutiny as the Nigeria Customs Service defends enforcement actions taken against a vessel accused of illegally discharging premium motor spirit at the TinCan Island Port. In a statement, the Customs Service says the vessel, MT N Y Maria, allegedly commenced discharge operations at the MRS terminal without obtaining the required Customs clearance and was still under official Customs seal. Authorities say the vessel arrived from the Dangote Refinery but failed to provide critical documentation including a mandatory last port clearance certificate. Customs officials insist that their actions were fully backed by the Nigeria Customs Service Act 2023 stressing that no operator within Nigeria's port environment is above regulatory compliance.

[00:03:26]The service also denied reports that the shipmaster was arrested clarifying that it was only invited for questioning as investigations continue into the incident alleged obstruction faced by Customs officers um doing enforcement operations.

[00:03:46]Yeah, there you have it. I've seen the TinCan Port security faces scrutiny right there with NCS citing Customs Act violation. So, that's the latest one.

[00:03:58]It's definitely a developing story and I will keep tracking that one. All right, to other matters now. African Airlines have seen a 7.7% year-on-year rise in air cargo demand in April this year and this is according to the latest report released by the International Air Transport Association. In its global air cargo market data for the month, the global aviation body says the increase reflects the same growth in freight activity across the continent's aviation sector. IATA attributes overall market performance to a complex operating environment including geopolitical disruptions in the Middle East, higher fuel and oil prices and shifting global trade dynamics.

[00:04:39]And small businesses are the backbone of Nigeria's economy generating nearly half of the country's GDP and employing almost nine in every 10 workers. Yet, most of Nigeria's 40 million SMEs have never accessed a single naira of government support and many do not even know that support exists. Our business correspondent, Willy Bong, has a story of one man who built a business without the system and what that says about Nigeria's economic development challenge. Take a listen.

[00:05:14]>> This work we need to find. He starts working from most people they wake up.

[00:05:21]And the entire road before the song will settle.

[00:05:26]>> [music] >> Walk down any Nigerian street and count the businesses.

[00:05:42]The suya spot, the welder shop, the provision store, the tricycle at the curb.

[00:05:49]Nearly every one of them is a small or medium enterprise.

[00:05:54]Together, all 40 million of them, they guarantee nearly half of everything Nigeria produces.

[00:06:01]They employ almost nine in every 10 Nigerian [music] workers.

[00:06:06]They are not a footnote in this country's economic development story.

[00:06:10]They are the story.

[00:06:14]>> [music] [music] >> Ochuko Egodu has been writing that story for 4 years. Today, he runs three tricycles.

[00:06:36]>> After I graduated, so I work in a firm to save money.

[00:06:44]So when I was working in the firm, that is the the pay was not much.

[00:06:51]It's just uh peanuts. They were giving us peanuts.

[00:06:57]So I saved I saved Okay, guys, after I saved, I said, "Okay, let me go do business."

[00:07:04]So I purchased a Marwa.

[00:07:10]>> We employ approximately 20 million people. And we contribute to approximately half of Nigeria's GDP. And so what we want to do is to help our small businesses with four key things. All the guidance that they need, all the resources they need, all the opportunities that they need, [music] and all the workforce support to make sure that they can continue to contribute as much as they're doing to Nigeria's GDP and even more.

[00:07:30]>> The numbers tell one story, but behind [music] them, another story entirely.

[00:07:36]>> What we need to do is to understand that the biggest impediment to the growth, uh profitability and viability of small and medium-scale enterprises is the lack of power.

[00:07:48]Not just power, >> [music] >> quality of power, quantity of power, and they have no access.

[00:07:54]And when they get power, it's expensive, and when they get it, it's unreliable.

[00:08:00]>> [music] >> But, Nigeria's economic development has a ceiling. And for millions of the businesses holding this economy up, that ceiling is made of credits. [music] Ochego built three tricycles with no bank loan, no government program, just family, a cooperative, and reinvested earnings.

[00:08:27]The loan apps were never an option. Word travels fast at the motor park. Some charge interest of up to 50%.

[00:08:35]He did the maths before they could trap him.

[00:08:38]>> The the interest is too much. And if you no pay, if you no pay in those loan app, they will post your picture everywhere.

[00:08:47]I'll begin to sue you.

[00:08:49]>> The maturity of the >> [music] >> banking system, right, has become extreme you know, it's it's growing but very slowly.

[00:08:58]The needs and the requirements [music] of this informal and small and medium-scale enterprises is growing much faster than the banking system is willing to [music] transform itself.

[00:09:12]>> Recently, the Central Bank of Nigeria announced that credit disbursement to small businesses hit [music] 199 billion naira in April alone.

[00:09:21]The Bank of Industry also secured $200 million from the African Development Bank to boost SMEs [music] and women-led businesses.

[00:09:31]That sounds like progress.

[00:09:33]But spread across 40 million businesses, the CBN figure alone works [music] out to roughly 5,000 naira each. Ochuko has never seen a couple of it.

[00:09:44]>> This loan, I discovered that these things they are coming in.

[00:09:47]But those that I told, those that I told, they they will just hijack those loans and whatever and give it to to their their cousins and whatever.

[00:10:02]>> We put the reality to the director general of SMEDAN, Charles Odii.

[00:10:07]>> The biggest problem is not that the government is not doing enough, but that the people that the government is supposed to be doing it for are not getting enough.

[00:10:13]>> 40 million small businesses, nearly half of Nigeria's economy. Most of them invisible to the very agencies that are built to serve them. The government has programs, the operators don't know they exist.

[00:10:29]Bridging that gap is not just a policy question. It's a defining economic development challenge of this country.

[00:10:37]So, what is the answer?

[00:10:40]>> We will not be able to reach you one-on-one.

[00:10:42]Um you can reach us through your cooperative. Just your cluster, your business member organization. We we will definitely reach your business member organization. So, those that's my message to to Ochuko.

[00:10:56]>> I built three keke with my own hand.

[00:10:59]With my family, with my household, and with the help of God.

[00:11:04]No bank helped me.

[00:11:06]No government see me, but we still dey grow. Imagine waiting I fit do if this country really support people like me.

[00:11:14]We dey carry Nigerians, somebody supposed carry us too.

[00:11:19]>> Will Iban, Channels Television News.

[00:11:33]>> And now to our first conversation 3 years after President Bola Ahmed Tinubu launched sweeping economic reforms, Nigeria's economy is showing signs of stronger government revenue, improving foreign reserves, and you know, stabilizing macroeconomic indicators.

[00:11:48]But despite those gains, millions of Nigerians continue to battle inflation, rising living costs, and economic hardship. So, this morning we examine the real impact of Tinubunomics. Has the administration laid the foundation for long-term economic recovery, or the reforms placing too much pressure on households and businesses? And ultimately, when will ordinary Nigerians begin to feel the benefits of these tough economic decisions? Joining me now to discuss we have Mr. Mukhtar Muhammad, CEO of Finance with Mukhtar. He joins me right here in the studio. It's good to have you, sir. Good morning.

[00:12:22]>> Good morning, Ladi. My pleasure.

[00:12:24]>> Yeah, so we're looking at Tinubunomics >> I like that term.

[00:12:28]>> [laughter] >> uh this morning, and it's been quite the ride, you know, 3 years so far.

[00:12:33]And we have a quite uh mixed data.

[00:12:37]>> Yeah, I like calling it the good, the bad, the ugly.

[00:12:39]>> Yes, the good, the bad, um and the ugly.

[00:12:42]So, if we flip over now to see um government revenue.

[00:12:47]>> That's the good.

[00:12:48]>> That's the good. That has risen and that's risen a lot since uh uh we have we when it came to hours was 711 billion.

[00:12:58]That was May 2023. Current level about 3.6 um trillion. That's monthly revenue generation. So, >> Yeah, but again they will tell you what was the exchange rate at the time they were receiving this amount of money. Even if it's Even if it was coming in naira, then they will not tell you that, "Oh, the 3 years of government not uh maybe the state and the local government tell you we are not collecting so much like we used to collect." If we like If we look at it by and by the exchange rate.

[00:13:23]But when you look at in you have to also be realistic to ask them that even when the exchange it was that you were not collecting dollars, you were collecting naira. So, you look at that then definitely I think in terms of revenue we have seen huge revenue for government, huge huge revenue. But, the impact has been very minimal. But, again, that's a topic for another day.

[00:13:42]But, I think he has done that well.

[00:13:43]>> So, I I I wonder um because, you know, we we keep talking about I remember when, you know, where the elections were happening uh that period the the sentiment was whoever won that time, you know, be it Peter Obi or whoever um they were all pro-business.

[00:14:03]>> Yeah, they were pro-business, yeah.

[00:14:05]>> Right?

[00:14:06]And I'm wondering what else what else could have been done differently to not have the negatives of these reforms, you know, seeing that revenue has jumped a lot.

[00:14:18]>> I I don't know what they would have done differently to be sincere. Um in as much as sometime we look at the tough decisions, we have to commend the president. He took some very very tough decision that took years and years.

[00:14:29]Nobody was ready to tread that path, especially the removal of subsidy. That was a monster. That was a drilling. That was what was making people mortal billionaire to the detriment of the ordinary Nigerians or even to generality of Nigeria, not to the ordinary Nigerian. He took a bold step. Remember that popular uh statement that the subsidy gone. And it was I think it's 3 years today we had that statement because it was we were made to understand that that was not even in the script. So, that tells you the kind of boldness and that the the president was able to do. I remember I was on a program that day and we just saw the price of fuel move from 200 naira to about 800 naira and everybody thought the whole world would come to an end. But, today here we are, we are even buying fuel at 1,300. So, it it was a very uh tough decision he made. But, again, you could look back to it. If you're in government, you see it it was a good decision. We no more see them worry again about how much was paid for federal for state how much was supposed to get how much was paid to subsidy how much was going to the federation account how much is going to NNPC we no more see them worry about that again. So you have to give that to him. I think that was a top decision but today looking back at it if you are in government as that was saying good if you are in government the revenue have been improved but if you are not in Nigeria it has been a huge struggle to match up with daily living because of the high cost of energy. But whether you are looking at PMS or you are also looking at electricity >> Do you think there there's a way that um would have gone through the whole process of subsidy is gone and somehow had a cushion?

[00:16:08]>> Yes I think I think there should have been a way we said it we said it over and over there should have been a way but again >> we're rich enough of No since we're an oil producer is there a way we would have >> No let let them go to our oil producer oil producing that you have not been able to produce up to 2 million barrel per day. They are shouting oil producer whatever before he came into power don't forget that production was even about 800,000 barrel per day. So we are not we are we are we are we are we are just we are a country that was producing we are having so much of more oil theft than producing. So we not we don't have to look at that way.

[00:16:42]At the time he came in for me we are not even oil producing at all. I mean he took the tough decisions and yes there was a way maybe there would have been a way if it was planned. Like I said it came up spontaneous. Subsidy is gone and it it took a lot of his um um um um um um um um team by storm. Nobody else so there were no consistency plan.

[00:17:07]Even if don't forget even if President Buhari at that time have said that they don't they don't have a they only have enough to pay to the end of June.

[00:17:20]So ordinarily we are expecting that subsidy will be gone by June ending. But he took that bold step May 29th, 1 month before that tenure. So maybe there would have been a consistency plan in terms of seeing how that could have and mitigate the impact on the ordinary Nigerians. But don't forget that the longer you delay such processes, the more we have seen that it will not be taken. So I think he he knew that that this I don't say this now we start working on it, we will not get there. So I I I think there was no other dis Remember like you said, even during his campaign Atiku Abubakar said he will he will remove subsidy.

[00:18:01]Peter Obi say subsidy will be gone. But there may have been a different method.

[00:18:05]Maybe Peter Obi nice telling us that if he has gotten to power, he would have waited for 3 months, he would have put a lot of things in place before he will remove subsidy. But don't forget that the time Buhari was leaving when Tinubu take over took over, Nigeria was broke.

[00:18:19]We were practically borrowing to pay subsidy.

[00:18:23]The at that time he came in, the federation account both the state, the local government and the federal have not had any dime from NNPC.

[00:18:32]So I wonder that how would I have been able to do that.

[00:18:34]>> from what you're saying is regardless who won >> Regardless who won, we would we would have had this issue. Maybe would have even had it tougher because again, if you want to play to the gallery of the people, and that's what we have been doing for the past 15 years. That's why we never get there.

[00:18:46]>> we had some kind of AI simulation.

[00:18:49]>> [laughter] >> You know there's there's no no no no no no no no no no no no no no no no no no no no If you are due for surgery 15 years ago when you were younger, you didn't do the surgery and doing the surgery 15 years after, of course the pain will be much because your body system is not like it used to be 15 years ago. So the pain we are suffering now is based on the decision we did not accept 15 years ago.

[00:19:13]>> Right. All right, there's still more of the good.

[00:19:17]>> Yeah.

[00:19:17]>> Um foreign reserves, uh external reserves uh when he came to power was what 35.09 billion. There was a steady decline in the foreign reserves. Now uh the last time data shows 49.26 billion dollars. So, we've been hovering around this level >> no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, >> We're looking for net.

[00:20:00]>> Net, exactly. So, if you look at the foreign reserve, I mean, they have done well. Look, I mean, I need to say they have done well. Why?

[00:20:11]When they came in, they had those issues. Remember exchange rate? They were not ready to defend the currency. The currency moved as high as almost 2,000. People were even saying we'll get to exchange rate of 5,000 naira to a dollar. We saw the panic. We saw They themselves also were panicking. They today bureau de change, and the tomorrow they revoke the license, next tomorrow you go. So, there was a lot of panic, but I think you have to give it to the CBN. They held their nerve.

[00:20:38]They went through the process. Today, even if exchange rate is not what it was when they came to power, you can say there is stability.

[00:20:48]>> Stability.

[00:20:49]>> There is no more round tripping.

[00:20:51]There's no more that back end whereby if you are close to government, you have that differential rate. If you are got Remember that time you are going to hash you had exchange rate at 350 for going to hash. And then people that are doing business will We exchange rate at 700 and something. But people that gone to go to our government will give them those so much and when you look at the trial the current CBN former CBN governor you realize that so much happened.

[00:21:16]There was wastage.

[00:21:18]But I think they have closed that that that the market you remember when they came in the CBN said we want to make the naira competitive.

[00:21:26]And that has happened. Now they said after making the naira come they said we want to make the naira stable.

[00:21:32]Now the naira is stable. It may not be the kind of stability we want but remember I said to you in your program there was a time you asked me that when will we see that we have had stability in the exchange rate and I told you then that when they would tell me to use my naira card and pay for dollar transaction. I said that is when we didn't have that for the longest time.

[00:21:56]>> We didn't have it.

[00:21:57]>> Right. It's happening it's happening now. Now the banks are even you can see that different banks have different rates.

[00:22:03]I remember then I said why was the CBN shy of getting banks involved in the effects market but today banks are involved.

[00:22:11]It's a lot of washed with liquidity. You see the exchange rate between the if you have to use your naira card and if you even have to use go to the bureau de change you realize that you just use your naira card it's cheaper. So there's so much liquidity in the system in terms of dollar liquidity.

[00:22:25]>> Right.

[00:22:25]>> And don't forget that the current recapitalization of the banking sector also drive a lot of effects into the market. So kudos to them.

[00:22:31]>> Okay. So another thing I remember that period. I I remember I was when we're doing the coverage you know of the elections I was tracking the stock market.

[00:22:41]Uh that time we're around about 55,000 for the all share index 5,000 points and I was seeing steady rise. You know that period the bulls you know came in full force and now we've crossed um a new high. We we're we're at new highs at this point over 200,000 points.

[00:23:02]So it's been quite the run Uh so far since uh May 2023.

[00:23:09]I I I I don't know if you expected this >> Never.

[00:23:12]>> amount of bullishness on the stock market.

[00:23:14]>> Never. Never. Never. Nobody in business sees Nobody because no administration have come in from the era of um President Olusegun Obasanjo to Shehu Musa Yar'Adua to uh Goodluck Ebele Jonathan and to Muhammadu Buhari.

[00:23:36]In short, Muhammadu Buhari eight years was the worst year of the stock exchange. If you calculate that eight years of Muhammadu Buhari, the only stock exchange only gain If you go and look at the only perform better two years out of eight years.

[00:23:48]But when you look at what the president has done, I keep saying it if there's any area, is there any policy that hit the ground running, it was what the policy that drive the stock market. The stock market is the only economic barometer that you see it had benefited more on the economic reform of President Tinubu. That's why people say the reform is more for the rich than for the poor.

[00:24:16]So, it's more for the rich because the man of the on the street not really getting >> not making money from >> of this bull run.

[00:24:24]>> No, they don't even have it because they have been thinking to survive. But if you look at the bullish run of the market, it nobody saw it coming. And what drove that bullish run was the two things, liberalization of the FX market and removal of subsidy.

[00:24:39]Basically, that what drove the Then came the reform, the banking sector recapitalization and others. It has been one of the Nobody Nobody can tell me they saw it coming. Winners will agree that the policy was going to be good. We never saw it coming. And Ladi, guess what?

[00:24:54]This is not driven by new listing.

[00:24:57]It's driven by capital appreciation of existing stocks. It will not like oh the ocean there was driven because you have new listing. So, it's not true. By the time you have the Dangote listing before the end of the year and by the time we are talking about when he's going next year, you might see the ocean there is triple or quadruple.

[00:25:16]So, I think for the stock market the brokers so that's the brightest spot.

[00:25:20]That's the brightest spot. Everybody will be will be excited but even if there were a dark side of it that you remember the capital gain tax.

[00:25:26]>> Right. That That was the tax side of it.

[00:25:27]>> All right, let's look at some of the ugly now.

[00:25:30]Um public debt.

[00:25:32]Public debt. Uh he he inherited 87 trillion naira in public debt but the current level now 159.28 trillion.

[00:25:44]>> That one too you cannot >> racked up a lot of debt.

[00:25:46]>> No, no. Debt Debt has gone up. It's gone up dramatically. I mean >> [snorts] >> it's high.

[00:25:52]I mean it take generations to pay off those debt. I'm telling you. I know the annoying thing that lie there about some of these debts is that this administration might not even pay up to 10% of those debts. So, previous Just like this administration is struggling to pay the debt of previous administration.

[00:26:06]>> So, I guess it's the same old trend.

[00:26:08]>> same it's the same old trend but what we have seen is that governments have remained governments. They have not think out of the box. They have not been innovative. Greater economy, best economy in the world, the United States, the United Kingdom, the Chinese economy, the EU, they realize that government does not have enough to meet up infrastructural development. They key into the PPP. Why is Nigerian government shy away from the PPP? Why should government be building the coastal road?

[00:26:35]If it has that economic viable to pass through seven states, why can't you give it to build and operate? Why should government even put money in Lagos-Ibadan Expressway? It's the one of the most busiest highway in Nigeria. Why didn't you give it to private sector to build and operate and earn revenue and you just concentrate on social investment, health care, education.

[00:26:55]I'm not impressed when it comes to debt services. I think it's the worst, but again, when you look at when he came in debt services to budget was about 90%.

[00:27:05]We are seeing it come down to 60%. But it's still huge because now it's coming down to 60% because they are not servicing their own debt yet.

[00:27:13]So, when the new administration come in, by the time they start servicing their own debt, then the debt services to budget will go high. So, for me, that is one area that the APC government now APC government I'm not saying about PDP government or what. I'm talking about the APC government from the advent of Buhari till now has taken Nigeria deep into more debts than we've ever thought we would. Right.

[00:27:39]All right. Um a spot that's supposed to also be bright uh GDP growth. Yeah. The growth trend is supposed to be bright, but if you look at it, if you zoom out >> [laughter] >> you know, our latest 3.85% but normally 3% was considered low.

[00:27:58]But we're celebrating.

[00:28:00]>> We used to do 7% before.

[00:28:01]>> Exactly.

[00:28:02]>> Before this >> So, it's a it's a it's a it's a ugly >> you know, sometimes the story is like the story of the children of Israel.

[00:28:09]When the old men saw the temple, they were crying and the young men were rejoicing. So, it's sort of the same thing that we are seeing here. A lot of people are happy because why are they happy? We were at a point where they were doing 1.something. So, coming to 3.something was a huge achievement. We were almost >> Which was supposed to be your previous low.

[00:28:27]>> Low but you're now you're now becoming high. Yeah. I think the GDP growth we have to also say that some of those things were beyond them in terms of global economic trend that affected the economy. But by and large, we've not seen the kind of GDP growth that we've ever seen before. And like I said, when you talk about GDP growth in Nigeria, you are talking about Nigeria output to the world. And if you look at our output, it's always in the oil and gas sector. And if you look at that sector, struggling to meet up in terms of OPEC quota even. You shouldn't be surprised at So, that's why a call for celebration. But you look at that when you look at our our GDP growth, you realize that the positive in year, and that's why it's low, is largely driven by non-oil sector.

[00:29:10]Non-oil sector is now doing sometime up to 80 to 90% of our GDP GDP growth today adding more to the GDP growth than the oil and gas sector. But when you look at the effects driven in by the non-oil sector, they even the 7 or 10% that are coming from the oil sector is above it. So, that is a major challenge. You could see that they are trying to expand the economy to make the economy um I mean, not mono- mono- mono- tonous economy that depends on one area, but you need capital input from your main source to be to be able to develop other source. And that main source is struggling is struggling because of oil theft.

[00:29:48]>> Right. Okay, so I guess that's it. And obviously there's more, you know, we we we're still looking for um multi-dimensional poverty data because the last time we had that 133 million Nigerians were multi- uh multi-dimensionally poor.

[00:30:05]Uh we don't have the the latest one. I'm sure at some point we should get that, but it seems like it'll be higher.

[00:30:10]>> And that is what we need to see if you want to rate them based on where they are coming from what they saw and where they are coming to. You also comment their boldness, but also you also see that there's a lot of work to do. So, if I have to rate them over 10, I'll say they'll get six over 10. But again, the remaining four that we are giving them 10 10 is is how it's huge because that is the four that affect the ordinary Nigerians.

[00:30:37]And that is what is driving the hardship in the land.

[00:30:40]>> Right. Definitely, we hope the hardship ends soon. Soon enough. All right, let's pivot now. This is the last trading day of this week, of this month.

[00:30:53]And so far for May, we're up about 3.3%.

[00:30:57]But we're coming from an April that had a 20% rise for the all share index.

[00:31:03]I guess they saw the May and went away.

[00:31:06]I think what we saw in May, what we saw was you remember results were coming in.

[00:31:13]We had a lot of expectation.

[00:31:15]And that expectation was not met. So, we saw in the month of May because the expectation was not meant in some banking stock in the payment of dividend. You saw a bank like Access, like UBA. So, that affected the sentiment, the negativity. Then you now saw the fixed incomes space became a little bit attractive with the yield.

[00:31:35]So, a lot of investors were now exiting, especially those stock that they were think like traditionally a dividend paying stocks. So, they were now exiting the market to go to the fixed income space. So, we're not surprised what happened in the month of of May because a lot that was a lot of portfolio reshuffling. After that high that we saw at the beginning and towards the So, but again it creates opportunity for bank gates or tasks also to get into the market. And remember at that time, there's already a slowdown already because the pension fund administrators were already there. They were not acquiring more. But again, I think Like I can I like I joke in the talk people. If you look at the all share index, what it has been able to do this year already. If we end the year like this, the stock market has performed well because it has even gone way way above inflation and pension. But there's still a lot of value in a lot of stocks in the market. There's a lot of fundamental of the market is still very very strong.

[00:32:31]Even those stock that a lot of people are exiting because they didn't pay the dividend. If you look at their their fundamentals, if you look at their their their their their their balance sheet, realize that they is not poor. It was a regulatory induced policy that you don't you won't >> So, technically it's not like I didn't want to pay or >> No, no, no. All of them were tied. My hands were tied because the regulators felt that we need to tighten.

[00:32:58]We need to make sure that um we don't have the boss, especially when you have those capital that you have raised. So, I think that what really happened.

[00:33:05]Because if you look at their earning per shares, it was still comfortable for them to pay dividends. If you look at their holding companies, it was a bank like assets. They have that power to be able to pay even if it is 1 naira or 2 naira. If you look at even UBA, they still have or they they they are their earning per share was still strong. But the but the CBM was looking at other variable um in terms of um um um um um what is your profit? Profit after tax.

[00:33:27]What largely driven drove your profit after tax? Was it driven by FX um FX devaluation? Or was it really driven by your core businesses? I think that what they were looking. They're looking at your capital adequacy ratio, looking at your loan book. Their non-performing loan were huge. So, those are part of the things the CBM were looking at.

[00:33:45]Remember, a lot of bank the CBM have told them to exit forbearance. So, all these they have to make provisions for some of these things. So, that was what really affected the bank. But those banks still have very very strong fundamental going forward. It could just be a struggle now, but I can confidently say those bank will recover, especially bank like Access and UBA. It's just a matter of time. They will definitely recover.

[00:34:06]>> All right. We'll definitely be looking out for that. We've covered a lot of ground today. Thank you so much. Um Sam Ukpe Muhammad, always a delight having these conversations with you. And I guess I'll see you in the next trading month.

[00:34:18]>> Yes. Smiling like this.

[00:34:20]>> Yes.

[00:34:21]>> [laughter] >> Thank you Larry. Thank you for having me.

[00:34:22]>> Thank you. Thank you. All right. Uh we'll take a break now. When we come back, yeah, AFDB meetings are ending um today, I believe. We'll discuss what's uh played out so far. Look at the Africa's energy gap. That's in a moment.

[00:34:35]Do stay with us.

[00:34:40]>> [music] [music] [music] >> All right. As Africa races to expand electricity access and transition to cleaner energy, financing remains one of the continent's biggest challenges from climate finance and high borrowing costs to private sector investment and the role of institutions like the African Development Bank. The big question is longer no longer whether Africa needs an energy transition, but who will pay for it? Joining me now to discuss with Patricia Bongo, executive director, Access Coalition.

[00:35:32]Join me via Zoom from Nairobi. It's great to have you on the show. Good morning.

[00:35:37]>> Yeah, thank you that for having me here.

[00:35:40]>> Fantastic. So, I know you I I believe you were in Congo-Brazzaville for the AFDB meetings.

[00:35:47]Run me through your experience so far earlier in the week at the meetings.

[00:35:55]>> Yeah, it's a pleasure to be here this morning and also presenting you online.

[00:36:00]Discussing about the what is happening in Brazzaville with the AFDB annual meetings. We have been following up with the discussions that are ongoing.

[00:36:11]Both lives and also the discussions that were done at the pre-tests ahead of the meetings.

[00:36:18]And what I would say is that we are still in crisis through our energy access gap.

[00:36:24]And that's an access coalition if you allow me just to speak about the work that we do.

[00:36:30]We are currently prioritizing on transforming the energy financing architecture on how it is being done and who is being involved and where the financial flows are.

[00:36:41]I'm moving moving the capital from one side to the other.

[00:36:45]We have over 600 million people without electricity in Africa today in today's context and 900 million people without access to clean cooking solution. So for us we have been calling more for highly concessional financing and grant mechanisms to allow us to be able to reach to the poorest of the households in Africa.

[00:37:06]If you look into the current context, we have over two 2 trillion USD that has been globally invested in energy access.

[00:37:15]But only 2% that has been flowing to Africa, then it leaves us with a lot of energy gap in regards to what needs to be invested for us to reach out to the households.

[00:37:28]So today's context, I would want to raise a number of issues that we have highlighted in regards to what we have seen.

[00:37:36]And in recognition to your previous discussion around the issues of debt is that Africa is borrowing to transform itself from energy poverty.

[00:37:48]And we cannot be able to achieve much if everything that we do trying to transform the households, the the institutionals, we have to borrow so that we can be able to access energy access and this is more about reliable energy that can be able to transform lives more on the productivity, looking on the productive energy use both at the household level, institutional level. A lot of financing that has been flowing to Africa, they are more commercially led because that is where you have the right touch in regards to what a dollar can be put to achieve and it is easy to manage these the commercially viable vehicles financing vehicles that have been priorities.

[00:38:32]But there's a lot of population that you're leaving behind and by 2030 if we are not taking care of ourselves we still have a lot of populations being left behind and we need inclusivity looking into our governance systems both at the multilateral development banks where now we have the mission 300 that is a a group initiative that has been coined by AFDB and the World Bank and the other development partners that are also collaborating in it. So if mission 300 has to realize its mandate and its goal we have to ensure that the governance of it is more inclusive and all the stakeholders including the civil society organizations are well incorporated.

[00:39:15]They are not part of recipients of the information but they become part of the decision makers into what they need to be prioritized.

[00:39:23]>> Okay. All right. So you know definitely funding that's a very big issue there when it comes to Africa financing its energy gap. But you know many African countries are rich in you know renewable energy potential. So why is investment still not flowing at the scale needed?

[00:39:44]>> Yes the reason why we despite the vast resources that you have on renewable the weighted cost of us to be able to use the resources the renewable resources that we have is very high and hence we continue borrowing so that we can be able to put in the infrastructure that is needed and hence for us to be able to use the vast resources we also need to prioritize on the decentralized renewable energy systems that will be able to reach out to the poorest and to the marginalized communities.

[00:40:19]Commercially led approaches will only reach to a few, and so we'll be investing so much uh in terms of enhancing the already existing infrastructure rather than reaching to those who are already left behind with the current connections.

[00:40:38]Before today, uh a connection uh alone will not be able to transform the might be un waiting to reach out by 2030. We need more de- decentralized renewable energy systems that are able to transform lives both at the household level where the farmers, for example, the poorest uh of the farmers, they can be able to use the energy to be able to transform agriculture, to be able to use it for powering uh businesses to improve their livelihoods at that level. So, much of it is more of grid enhancement, and our call to date is for the mission 300 to realize there's more that it can can be able to achieve. A connection alone will not be able to transform the lives that we are seeking, but we need to go beyond uh a connection. Track the impact of what that connection facilitates both at the household level, institutional level, and looking into the national uh infrastructure all together because even the grid, if it is not reliable, we also have people suffering because of the blackouts that uh African nations have been experiencing. So, for us to be able to utilize our vast resources we need to ensure that the financing that is uh flowing to Africa is going to the right solutions. And this is more than the decentralized renewable energy systems, prioritizes on the clean cooking uh solutions, and also transfer skills, and also ensure that uh solutions that we are cascading down to the grassroot, the communities are part and parcel of it.

[00:42:09]We should not be able to to decide what is right for them, but let the communities uh decide what is right for them. They know their needs, so we need to come from a net user perspective in regard to the financing approaches that we are using rather than top-down approaches, so that the transformation that we are seeking is more embedded and inclusive, and the communities feel part and parcel of it.

[00:42:33]>> Okay. All right. So, there's a debate that the biggest obstacle to Africa's energy transition is either is either technology, you know, or financing, or maybe both at this point. But, looking at the meetings you know, had this week still ongoing at the AfDB meetings this week in Brazzaville, uh what kind of solutions were provided you know, during this meeting?

[00:43:00]>> Yeah, I would say there's a there's a lot of a goodwill from the AfDB annual meetings and from the discussions that I've had where of the ongoing discussions at the Brazzaville. And also the part of the meetings that we have attended as civil society organization, there's that call to action for the communities to be able to to be able to uh to influence in regard to where the financial the financial are flowing.

[00:43:29]Uh AfDB has committed to reach out now to the last mile connectivity.

[00:43:36]But, the wish list of it is for us to be able to see how do we move from here because at this point it's more of the statements, it's more of the declarations that are being made, there's mobilization of the resources, there's mobilization of who needs to get into the fold for them to be part and parcel of the stakeholders to be engaged.

[00:43:57]And whereas uh we see the statistics which are very glaring in regard to what is needed, we need now to see the capital flowing to the right solution and to the right countries.

[00:44:09]Not necessarily where the commercial markets are more enhanced.

[00:44:14]The private sector, for example, will be able to invest where they know that they are they are they are investments are more risk averse. But we need the government also to come in to be able to reduce the end users in regard to the financing that needs to be cascaded more on the subsidized and also grant-based financing.

[00:44:37]>> All right, definitely. We'll keep tracking solutions provided and actions, you know, taken after, you know, these meetings. Thank you so much for joining us today, Patricia Mongor, executive director, Access Coalition. Thank you for joining us today.

[00:44:52]>> Thank you.

[00:44:54]>> All right, I'll just take a quick quick story now.

[00:44:58]We see Nigeria's Minister of Aviation, Aerospace Development, Mr. Festus Keyamo, has attended a high-level dialogue session with the African Development Bank in Brazzaville, Congo, as African champion of the Integrated Aviation Transformation Program. Mr. [snorts] Keyamo highlighted opportunities in the AFDB's $7 billion aviation initiative and unveiled Nigeria's renewed aviation agenda, including plans for a new aircraft leasing company. The Minister also signed a letter of intent between Nigeria and the AFDB to support the implementation of the Aviation Transformation Program across Africa.

[00:45:36]All right, we'll take a moment now. When we come back, we'll find out what's happening in the global economy. That's in a moment. Just stay with us.

[00:45:44]>> [music] [music] >> Now, we begin with the United States Iran. They have agreed to a tentative deal to extend the ceasefire by 60 days and continue talks on Tehran's nuclear program. This is according to a source familiar with the matter. Now, President Donald Trump has yet to approve the terms even as both sides signal cautious progress towards a wider agreement. Now, while hopes are rising that the three-month conflict may be nearing resolution, previous negotiations have repeatedly been stalled.

[00:46:29]Now, a look at the markets. Now, let's check in where all three major indexes in the US closed at record highs yesterday boosted by a technology rally.

[00:46:38]Yes, Maria with the highlights.

[00:46:43]>> US inflation did not stop the stock market's rally on Thursday as the Dow Jones inched up a 0.05% while the S&P 500 was up a 0.58% and the heavy tech Nasdaq led the way at 0.91%.

[00:47:00]Many investors were watching movement between the US and Iran and the potential deals. And also, this could mean a reduction in oil prices, which would be a positive sign for the US economy as many parts of the US economy have been stretched thin as oil prices have been escalating. As investors continue to watch, there could be potential for a rally even on Friday as only time will tell how the markets will respond to this geopolitical climate that currently looks to be coming to a deal in the near future.

[00:47:32]>> Thank you, Mario. Only time will tell.

[00:47:33]Now, France's inflation rate has accelerated to its highest level in more than two years driven largely by rising energy costs linked to ongoing geopolitical tensions. Data shows price pressures continuing to build across key sectors with energy and services leading the increase while food inflation remains more contained. The latest reading adds to concerns across the Eurozone where central banks are closely watching inflation trends as they weigh the timing of future interest rate moves. Next up, Japan's central bank is likely to raise interest rates in June, according to a former Bank of Japan board member. And the outlook reflects expectations that inflation and wage growth are gradually becoming more sustainable in Japan's economy. Markets are now watching for signals from the BOJ as it considers the pace of its policy normalization.

[00:48:24]Now, Nvidia is increasing investment in photonic technology to improve the speed and efficiency of AI data centers. The company is backing optical and laser-based system designed to move large volumes of data faster while reducing energy use. Analysts say photonics could become a key technology supporting the next phase of global AI growth.

[00:48:44]Now, we see Samsung has begun shipping samples of its HBM4E high-bandwidth memory chips to customers. The new high-bandwidth memory is designed for faster data transfer and improved energy efficiency, making it suitable for large-scale AI data centers and high-performance computing. The move highlights growing competition in the global AI chip market.

[00:49:08]And we see a Blue Origin New Glennon Glennon rocket exploded during a hot fire test in Florida, dealing a fresh setback to Jeff Bezos' space company as it competes with Elon Musk's SpaceX. The explosion happened during ground testing ahead of a planned satellite mission, sending a massive fireball across the launch site. No injuries were reported.

[00:49:31]Uh the incident raises new questions about Blue Origin's launch timeline and its growing role in NASA's Artemis moon program and commercial satellite business.

[00:49:45]Finally, shares of LG Electronics climbed sharply after the company unveiled new automotive products powered by Google technology. Investors reacted positively to the company's push into connected car systems and AI-driven AI-driven mobility solutions aimed at the fast-growing smart vehicle market.

[00:50:04]Development highlights intensifying competition among tech and electronics firms seeking a larger role in the future of connected and autonomous vehicles. And that's your global news brief. I'm Will Ebong.

[00:50:20]>> [music] >> All right, thank you, Will. Well, the markets are buzzing in this final trading day of May. We see Bitcoin up about 0.29% The DXY, that's the dollar index, in positive territory. Gold is in positive territory, and definitely we're seeing all of that because oil is down, still down um at this point. But for the NGX, uh it's opening um this um holiday-shortened week uh at a close here >> [snorts] >> at about nine business points lower.

[00:50:57]CIP, that's uh the initiates, uh leading uh attention there, Dangote Sugar, Access Holdings. We'll bring more updates uh by 1:30 on Business Incorporated. And hopefully, in the month of June, you make back all the RAM money you spent this period. Thank you for watching Business Morning. I'm Ladi Williams. Bye for now.

[00:51:25]>> [music]