JANUARY 30, 2024

By Ogaga Ariemu

British Columbia, a Canadian province, has banned tertiary institutions from admitting Nigerians and international students for the next two years.

Federal Immigration Minister Marc Miller disclosed this recently in a statement.

According to Miller, the measure aims to decrease new student visa issuance by 35 per cent for the current year as the province addresses “exploitative practices” within the system, as per the announcement.

The Premier of British Columbia, David Eby, stressed the importance of addressing issues within the international education system, recognizing its pivotal role in the province’s social and economic framework.

“There are a wide array of private institutions, big and small, in our province, but regardless of the institution’s size, our expectations of the level of quality are the same.

“There are institutions that are not meeting our expectations right now,” he said.

DAILY POST gathered that in the first half of 2023, nearly 18,000 study permits were granted to Nigerians in Canada, surpassing all other countries except India.

JANUARY 30, 2024

By Abdullateef Aliyu

A foremost professional services firm, PwC Nigeria, Thursday released its Nigeria Economic Outlook report for 2024, projecting a marginal decline in inflation and 3.1 per cent rise in Gross Domestic Product (GDP).

The GDP projection by PwC is lower than the 3.4 which the Nigeria Economic Summit Group (NESG) projected a day before.

The report also points to a gloomy 2024 with rising poverty levels and the lingering cost of living crisis in the country.

It stated that achieving sustainable growth in 2024 “requires balancing ambitious fiscal reforms with effective budget implementation” while highlighting the importance of “aligning fiscal and monetary policy to stabilise prices and reach target goals.”

In the report, PwC highlighted seven key trends that will shape the economic outlook including executing fiscal reforms: balancing ambition with budgetary implementation; evolving monetary policy stance: and finding the right framework and instruments to achieve price stability, among others.

PwC also examined the proposed infrastructure funding which it said would remain insufficient in 2024.

“The allocated infrastructure spending budget for 2024 is N1.32 trillion, falling short of both the World Bank’s suggested 70% infrastructure-to-GDP benchmark (currently at 30%) and the yearly $150 billion requirement specified in the National Integrated Infrastructure Master Plan for 2021- 2025.

“Security spending in the past nine years amounted to N14.8 trillion. Despite increased spending, insecurity remains a challenge and jeopardises national stability; negatively affects economic activities and undermines investor confidence.”

On revenue, it stated that “Nigeria’s ambitious revenue targets for 2024 depend heavily on oil prices and reform implementation. Historically, actual revenue realised has averaged less than 70% of the total budget.

“Achieving budgeted oil revenue in 2024 will depend on OPEC oil production quota, international oil prices, improved security in the oil-producing regions and geopolitical factors.

“The proposed fiscal reforms have the potential to boost non-oil revenue and shape the economy, but success hinges on effective budgeting and execution.”

On the cost of living crisis, the report noted that consumer spending may be pressured in 2024 “due to rising prices of goods and services (increasing food and transportation costs), coupled with lower disposable income.”

“However, private consumption is expected to be marginally better than in 2023. Poverty levels are projected to increase to 38.8% in 2024.

“Despite the low unemployment rate in the country, low consumer spending and purchasing power remain an issue, especially in the absence of a commensurate increase in the minimum wage to mitigate the inflationary growth in the economy,” the report added.  

JANUARY 30, 2024

By Abdullateef Aliyu

Daily Trust reports that flight operations are often impaired during hazy weather, resulting in cancellations and delay of flights.

Our correspondent learnt that the flight disruptions will affect most parts of the North for the three-day forecast, resulting in cancellations and delays.A similar situation was experienced last week, with airlines adjusting flights while some were cancelled. For instance, Air Peace cancelled all its Anambra flights over the weather issue.

This is why NCAA is calling for the understanding of passengers when such delays occur.

NCAA referenced NiMet’s weather outlook released on Sunday which predicted moderate dust haze with horizontal visibility range from 2km to 5km over the North.

The outlook also envisaged moderate dust haze with a horizontal visibility range of 2km to 5km and localised horizontal visibility of less than or equal to 1,000m over the North Central.

The agency forecast dust haze over the inland of the South and the coastal region throughout the period.

It said, “For Tuesday, moderate dust haze with a horizontal visibility range of 2km to 5km is anticipated over the northern region, the inland of the South and the coastal region of the country throughout the forecast period.”

According to NiMet, thick dust haze is expected over the Northern region throughout the forecast period.

It added that, “Dust particles are in suspension; use face masks where possible. People with asthma and other respiratory issues should be cautious of the present weather situations.”

Following NiMet’s advisory, the acting Director General of NCAA, Capt Chris Najomo, in a statement, advised airline operators to get updated weather reports and forecasts from NiMet for effective planning in their operations.

JANUARY 30, 2024

“Because the CBN is trying to sort that out, the capacity to intervene to stabilise the market has been constrained significantly.”

The Chief Executive Officer for the Centre for the Promotion of Private Enterprise, Muda Yusuf, that the steps being taken to clear the backlogs of Foreign Exchange by the Central Bank of Nigeria (CBN) is a good idea, and that in a short to medium term, there will be an easing of the pressure faced, but it is not a “quick fix” to the fundamental structural deficiencies faced in Nigeria.

The economist, however, also said that the CBN’s approach to stemming the valuation of the naira should be interrogated, as the Nigerian economy cannot afford the dramatic changes in the foreign exchange, and that the government should address the social consequences of these reforms on Nigerians.

Yusuf, while addressing the clearing of another $500 million by the CBN in an interview with ARISE NEWS on Tuesday, said, “We have gotten to a point where borrowing to support this kind of system will also create its own challenges. So, I think the best way forward is what I believe the CBN is trying to do, because the magnitude of this challenge, it’s not something you can fix in six months, in seven months, because if your reserve has depleted so much, you have challenges with your oil production, oil output, you have an economy which, over the years, has been programmed to defend so much on foreign exchange from oil, you have an economy where the non-oil sector is contributing not more than, maybe 5-10% of your foreign exchange earnings, these are fundamental structural deficiencies, and these are not things that you can fix very quickly.

“But what I think is important in all of this is for the CBN to continue on this trajectory of trying to rebuild confidence, that is, by clearing this backlog so that whatever we have that is coming to the CBN will now be able to be injected directly into the market.”

The economist then revealed that ideally, the CBN should not be the major provider or supplier of forex, but that due to a confidence crisis, the responsibility and challenge of stabilising the market is now squarely resting on the apex bank.

He said, “Unfortunately, because of these backlogs, the CBN is not able to directly intervene in the market as effectively as it should because the CBN is prioritising the clearing of backlogs, which makes sense, because if you really want people to bring in force into your economy, those who had issues with this liquidity, those whose forex are already trapped, those whose transactions are disrupted by the liquidity crisis which is creating a lot of credibility for Nigeria in the international trade process, we need to sort out all those things.

“So, my view is because the CBN is trying to sort that out, the capacity to intervene to stabilise the market has been constrained significantly, more so that we have a situation where we have a reserve that is severely depleted, because you can only defend a currency to the extent of the reserves that you have.”

Yusuf then said that the CBN’s approach the stabilise the Naira needs to be questioned as he said, “We need to also interrogate the approach of the Central Bank in dealing with this situation because the economy cannot afford this kind of volatility that within a week or two weeks, you are seeing dramatic changes in the foreign exchange, I mean, almost three, four times. We need a framework that will help to stabilise it even within the context of these fundamental challenges.”

He then said that although the reforms are needed, the government should make the reform process less severe in terms of the pain that it is exerting on Nigerians, and that the government must address the social outcomes of the reforms being put in place.

In order to address social outcomes of these reforms, he said, “The government should go back to the drawing board and look at how to address the social consequences of these reforms. To reduce the pressure of prices, cost of living, cost of transportation, cost of energy. And in doing that, we may need to step out of the orthodox method of economic management, because this is something that is peculiar to our situation. We need to relate to our reality.

“You cannot drag this process completely though using the orthodoxy of economic policy. We need to recognize the implications of reforms for poverty, for job creation, for cost of living. So, the normal market principles cannot deliver that situation. So, it requires a lot of government intervention, but the intervention must be effective, it must be something that is not vulnerable to corruption, I think that is something that we need to do.”

Ozioma Samuel-Ugwuezi

JANUARY 30, 2024

By Ochogwu Sunday

The presidential candidate of the African Action Congress, AAC, in the last general election, Omoyele Sowore, has claimed that his prediction about the depreciation of the naira in 2024 has come to pass.

In a post on his official X handle on Tuesday, the activist said he had predicted that the local currency would depreciate to N1,500 to $1 by 2024.

Citing the current economic crisis, Sowore declared that the “country has been finished”, urging Nigerians to take their country back from those allegedly killing it.

He wrote, “My prediction in December of 2023 is that the Nigerian currency -Naira- will be exchanged for N1,500 to $1 by 2024, and it has come to pass, and we are still in January.

“The earlier we all realize that this country has been finished and we all go out to take our country back the better”.

JANUARY 30, 2024

By Andrew Curran

The government of the state of Lagos in southwestern Nigeria has proposed establishing an airline and building an airport at Lekki. Multiple Nigerian outlets are reporting on comments made by State Governor Babajide Sanwo-Olu at a public forum last week. He said planning and work on the financing model had been underway for several months.

"Over the last five months, the Deputy Governor and I have been working to put a concise plan together for the establishment of an airline, but we did not make the plan open because of the need to get adequate knowledge about the operational procedures of airlines," the governor told the forum. “The business plan is viable, and there is no issue about financing. The conversation has gone to an advanced stage but we need to get the proper information on operations before we go ahead to implement the plan."

He said the next steps were to secure federal government approval and set up "operational contingencies." According to ch-aviation PRO airports data, Lagos, the primary airport in the state of the same name, is Nigeria's second busiest. A total of 35 airlines use the airport, connecting it to 56 destinations in 35 countries.

Separately, plans to develop the Lekki-Epe International Airport are now a decade old, but the proposal has faced opposition from local landowners. The planned development of the 3,500-hectare airport in the east of the state will rely on a public-private partnership model. In 2022, stage one of the project had an estimated price tag of USD900 million. Earlier this month, an optimistic Lagos government official suggested the airport could open by the end of 2025 and be capable of handling five million passengers annually.

JANUARY 30, 2024

Libyan authorities on Tuesday began sending more than 320 irregular migrants to their home country Nigeria, an immigration official told AFP.

War-torn Libya has become a key departure point on North Africa’s Mediterranean coast for migrants, mainly from other parts of Africa, risking dangerous sea voyages in hopes of reaching Europe.

Libya’s rival administrations last year agreed on a Tripoli-based anti-immigration body tasked with coordinating deportations of foreigners who are in the country illegally.

“We carried out on Tuesday the expulsion of 163 irregular migrants of Nigerian nationality from the Mitiga airport, including 107 women, 51 men and five children,” said the migration agency’s head of security, Mohamad Baredaa.

In a move coordinated with the International Organization for Migration (IOM), Baredaa added that “160 Nigerians will be sent back to their country from Benina airport in Benghazi” later on Tuesday.

An AFP correspondent saw the first group at Tripoli’s Mitiga airport early Tuesday, where they were given a laissez-passer before boarding shuttles to the plane.

According to the IOM, there are more than 700,000 migrants in Libya.

More than a decade of violence and instability since the 2011 overthrow and killing of dictator Moamer Kadhafi in a NATO-backed uprising helped turn the country into a fertile ground for human traffickers.

Smugglers and traffickers have long been accused of abuses.

In 2015, the UN-affiliated organisation established a “voluntary humanitarian return” scheme, arranging and financing travel for migrants and asylum seekers in Libya wishing to leave for their respective origin countries.

Last year, 9,370 people left under the programme, down from 11,200 in 2022, according to IOM figures

JANUARY 31, 2024

Written by Yusuf Babalola

Foreign Airlines have applauded the Central Bank of Nigeria (CBN) for clearing the backlog of Forex owed to airlines operating in the country.

The airlines, speaking under the aegis of the Association of Foreign Airlines and Representatives in Nigeria (AFARN), said the clearance is a sigh of relief for operators.

According to the President, Kingsley Nwokoma, he urged the CBN to adopt a quarterly payment plan for the over $700 million trapped funds remaining with the apex regulatory bank.

“We thank the government for listening and doing it little by little, but we hope they can do more or have an arrangement with the airline for quarterly payment; that would be perfect.

“A systematic type of payment every quarter will help defray the backlog, and we can also get it behind us once and for all,” he stated.

Also speaking, the Head of Financial Institutions Ratings at Agusto & Co, Ayokunle Olubunmi, said the clearance of trapped funds and FX forwards would improve the value of the Naira.

“To be fair to the current CBN management, they have been trying their best, and they have been trying to clear the backlog of FX demand and matured FX forward and have been trying to get them paid,” he stated.

Olubunmi further stated that the payment would boost investors’ confidence as they can easily repatriate their funds.

“If you are owing someone and you need additional money, no one will give you because you have defaulted in the first one, so we need to clear that, and that will give a good signal to foreign investors to bring in their funds into the economy.

Therefore, the government should carry out an aggressive campaign that investors can now easily repatriate their money, especially now that the CBN is fundamentally clearing the backlogs,” he stated.

It could be recalled that the CBN had fulfilled its pledge to clear the backlog of foreign exchange owed foreign airlines in the country, as it concluded the payment of all verified claims by airlines with an additional $64.44 million to the concerned airlines.

Acting director of corporate communications at the CBN, Mrs. Hakama Ali, said the latest amount paid to the airlines brought the total verified amount paid to the sector to $136.73 million.

In a statement issued on Tuesday, she said all the verified airline claims had now been cleared.

According to her, CBN Governor Olayemi Cardoso and his team were doubly committed and would stop at nothing to ensure that the verified backlog of payments across all other sectors was cleared, and confidence was restored in the Nigerian foreign exchange market.

Furthermore, she assured that the CBN was working with stakeholders to ensure liquidity improves within the forex market, thereby reducing pressure on the Naira.

While expressing optimism that the market would respond positively to the latest injection of over $64 million, she admonished actors in the foreign exchange market to guard against speculation as such actions could hurt the Naira.

Sidi Ali, therefore, urged the public to support the reforms in the foreign exchange market, adding that the CBN would continue to promote orderliness and professional conduct by all participants in the Nigerian Foreign Exchange Market to ensure market forces determine exchange rates.

FEBRUARY 02, 2024

BY  Gbenga Oloniniran, Uthman Salami, Temitope Aina and Johnson Idowu

Parents and many Nigerian students studying abroad have groaned over the rising tuition fees following the free fall of naira against foreign currencies, including dollar and pounds.

For potential students trying to travel abroad for their studies, the exchange rates of naira to dollar and naira to pounds are taking a toll on them and their guardians who have to pay for ticketing and school fees.

In June 2023, the Nigerian government removed the rate cap in its official foreign exchange market, allowing market forces to determine the actual value of the naira.

This led to the devaluation of the naira. In July 2023 (about a month after the move), the national currency fell from 471/dollar to 750/dollar and 589.4/pound to 957.2/pound. As of January 24, the currency had further plunged to 887/dollar and 1133/pound.

At the parallel market, where most people meet their forex needs, the local currency exchanged 1,420/dollar on Friday.

As of Wednesday, the value stood at N1,455/$ on the Investor and Exporter Window.

The price of everything associated with relocation, including school fees, visa fees, and more has surged due to the significant depreciation of the naira.

Some students who spoke with our correspondents lamented their ordeals following the falling naira against foreign currencies.

A Nigerian student in the UK, Moyosore Salami, said he knew several persons who had returned to Nigeria over the exchange rate.

Salami said, “I have a lot of people that have gone back home due to the dollar rate. It’s really crazy. My first week in the UK, pounds was around N680 as today the pound is around N1,970.”

A Nigerian student in Canada, Seth Akande, while lamenting, said, “Well, the devaluation of naira and how it’s affecting me simply means whatever amount I need from Nigeria, it’s never enough. Every day the rates keep going up. Now you can’t plan for how much you will be converting or you are likely to pay with the steady increase in rate.

“Just months ago, I still changed the Canadian dollar to about N780 and as of this morning, 1 CAD is N1,169. Now, I can’t budget for how much I will be needing from Nigeria to pay fees, as it is only when you have the money available then you can say this is how much I am paying.

“As an international student, this even makes it worse because you pay 1.5 or two twice of what the citizens of the country pay, but that’s not the problem, the main problem is that the rate continues to increase.”

A Sokoto State indigene studying in Malaysia, Aisha Umar, who spoke with one of our correspondents, said when the naira got devalued, “our money becomes worthless compared to other currencies. So things like tuition fees and school expenses have become more expensive for us studying in Malaysia.”

A Nigerian student who was processing admission into a Canadian university noted that his admission was halted over the exchange rate debacle.

The student, Confidence Chujor, said, “The devaluation of naira has really affected me in the sense that the money I kept for my schooling is no longer enough for me. The price of everything has gone higher than the way it used to be. I now sleep in fear, praying and hoping that the rate goes down.”

“I have never in my life experienced this level of naira devaluation,” he said, adding “I can’t pay my tuition fee, I can’t afford to pay for flight. Medical (fee) which used to be N46,000 has got to N73,000. It would really be nice if I wake up one morning to hear that the rate of the dollar has gone down. I’m hoping for a miracle.”

A parent, Mrs. Nwachukwu Mary, said the exchange rate “is finishing us”

Speaking on Thursday with one of our correspondents, Nwachukwu said, “This exchange rate is finishing us, paying for this semester’s fee was mentally draining. No form A, we had to buy from ‘Abokis’.  The banks are hoarding dollars. Sending money to my kid is taxing because when they change it, it amounts to nothing, it’s even affecting us in Nigeria, everything is so hard, the cost of living is increasing crazily and the standard of living is decreasing, this economy is making things very hard.”

Another parent, who gave his name simply as Mr Smith, said he was aware that his son was to pay $17,000 for tuition in the US.

“But now when the dollar is around N1,500, where will we get over N25m? It is even better to invest the money in something else than to do this under pressure.”

A travel agent, who works at Adopas Dedicated Services, David Adamu, said some Nigerians were selling properties to “japa” while some students abroad had also dropped out.

“When the economy is bad just like the current trend of naira devaluation, Nigerians would want to do everything possible to leave the country and escape. That is what we are currently experiencing. Some sell their properties all in the bid to escape. More people have become desperate to leave the country,” he said.

He noted there had not been much increase in processing fees at their company, saying, “It is just N10,000 increase. And ours is one of the cheapest. Some students have dropped out of school because of the inability to pay tuition fees due to the naira issues. We have been hearing rumours that the Form A which is the CBN payment portal is beginning to come back alive. Some students have dropped out over time because of the access to funds. While others are grinding on and ensuring that they stay the course.”

A travel consultant, Otun Sidally, who works at SIMSID Nigeria Enterprise, said the situation was funny, “and seriously, we are in a sorry state.”

Speaking on the cost of schooling, Otun said, “Definitely, the cost of processing will go up because the means of transaction too (dollars) keeps going up. Take for instance if the cost of a flight ticket to the UK two years ago is $300 at N500 to $1 and today the same dollar is exchanged for N1,500 to the same $1, that will be three times the actual cost two years ago.”

A source at the Federal Airport Authority of Nigeria who works closely with international airlines, said the fees for travellers varied from airline to airline.

She said as of June, 2023, the cost of a flight to the UK was around £850. She could not give an actual rate but she noted the price had been fluctuating and at the moment due to the exchange rates adding “it’s not looking any good.”

The President of the National Association of Nigerian Travel Agencies, Susan Akporiaye, believed that there was still a huge demand for international travel from Nigerians despite the rising cost due to falling naira.

 Akporiaye earlier told The PUNCH, “If you compare the school fees of $10,000 from early last year to what you will pay now, there is a 300 per cent increase, and yet the demand for education abroad has not reduced; it keeps increasing despite the high costs.”

 The PUNCH however gatheted that aside from the cost of fees, airfares have skyrocketed. Flight costs to London from Lagos are now hovering above N1m.

One travel agent, Tolu Omolade, told The PUNCH, “Depending on the airline, it is from N1m and above. You could travel with less than N1m before.”

Another agent, who gave his name simply as Chimaobi, in an earlier interview with The PUNCH, noted that the reliance on the black market for currency exchange because of the scarcity of FX in the official market had further exacerbated the costs of the various aspects of international travel, from visa fees to hotel bookings and airfares.

He said, “It has been quite tumultuous lately, given the fact that people are opting for the black market.”

FEBRUARY 03, 2024

Police launch investigation after attack on home of Oba Aremu Olusegun Cole in south-western Kwara state

Gunmen killed a Nigerian traditional monarch and kidnapped his wife after raiding his palace, police said, as outrage grows over a spate of abductions across the country.

Attackers stormed the palace of Oba Aremu Olusegun Cole in south-western Kwara state, shot him dead and abducted his wife and another person on Thursday.

State police said they had launched an investigation and stepped up security.

Similar attacks regularly take place in Nigeria, which is struggling with a security crisis on several fronts. Two traditional rulers were shot dead by unknown gunmen in neighbouring Ekiti state on Monday.

Last year the president, Bola Ahmed Tinubu, came to power promising to address insecurity – including jihadists in the north-east, criminal militias in the north-west and growing intercommunal violence in the centre of the country – but critics say violence is spinning out of control.

The Nigerian risk consultancy SBM Intelligence said it had recorded that 3,964 people were abducted since Tinubu took office in May.

At the start of the year, criminals abducted five young sisters near the capital, Abuja, and killed one when a ransom deadline passed, prompting a national outcry.