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ECOWAS single currency will facilitate free trade -Uwaleke
The President of Capital Market Academics of
Nigeria, Prof. Uche Uwaleke, says the ECOWAS single currency if actualiseed, will facilitate free trade within the sub-region.
Uwaleke, who is also the Director, Institute of Capital Market at the Nasarawa State University, Keffi, said this in an interview with the News Agency of Nigeria (NAN) on Friday in Abuja.
According to him, it is a no-brainer that a single currency for the ECOWAS will facilitate free movement of goods, integration of capital markets, and economic integration in general.
“It will enhance capital formation and lead to increased volume of trade among member-states, expanding job opportunities and enabling growth and development in the region,” he said.
He said that Nigeria was positioned to reap immense benefits from the single currency initiative as the largest economy in the sub-region.
He, however, cautioned that if the experience of the Eurozone was any guide, there were enormous bottlenecks to be surmounted for the target date of 2027 to be realistic.
“Given her huge population, Nigeria is positioned to benefit most from the free movement of goods and persons resulting from the implementation of a single currency.
“Unfortunately, it does seem that the target looks unrealistic.
“ECOWAS appears fragmented with the exit of three of her members. Virtually all member-states are far from meeting the primary convergence criteria set by the West African Monetary Institute.
“In the case of Nigeria, the leading economy in the region in terms of Gross Domestic Product (GDP) size, inflation rate has been double digit for many years.
“Actual budget deficit as a percentage of GDP has been more than four per cent, and the CBN direct financing of fiscal deficits has been in excess of 10 per cent,” he said.
According to Uwaleke, it is the same story with several other member-states that cannot boast of gross external reserves capable of financing three months’ imports.
“There is equally the fact that France is not supporting the French speaking member States (UEMOA) to have independent central banks.
“Against this backdrop, the first task for ECOWAS in the direction of a single currency is to unite politically, lure back the three countries that exited into their fold and then support each other to strengthen their domestic economies.
“Any attempt to inaugurate a single currency without first putting its house in order will witness a still-birth project,” he said.
NAN reports that finance ministers and central bank governors from the 15 ECOWAS states recently indicated plans to inaugurate the single currency initiative known as the ECO.
The initiative, which is designed to propel economic growth and development throughout West Africa, received the endorsement of Nigeria..
The single currency is part of the features in the three-in-one identity cards planned by the National Identity Management Commission and set for roll-out in August.
A statement issued by the Ministry of Finance emphasised Nigeria’s unwavering commitment to its successful implementation.
The statement said that the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, noted the critical role ECO will play in fostering economic growth and development in the sub-region. (NAN
President Bola Ahmed Tinubu has officially dissolved the board of the Nigerian National Petroleum Company Limited (NNPCL), which includes the removal of Group Chief Executive Officer (GCEO) Mele Kyari and Chairman Pius Akinyelure, along with all other board members appointed in November 2023.
In an announcement, the President introduced an 11-member restructured board, appointing Engineer Bashir Bayo Ojulari as the new GCEO and Ahmadu Musa Kida as the Non-Executive Chairman. These changes are effective immediately, as stated by Bayo Onanuga, Special Adviser to the President on Information & Strategy.
Emphasizing the need for “enhanced operational efficiency, restored investor confidence, and a more commercially viable NNPC,” President Tinubu exercised his authority under Section 59(2) of the Petroleum Industry Act (PIA) 2021 to implement this significant reorganization.
The newly formed board comprises Adedapo Segun, who continues as Chief Financial Officer (CFO), alongside six non-executive directors representing Nigeria’s geopolitical zones: Bello Rabiu (North West), Yusuf Usman (North East), Babs Omotowa (North Central), Austin Avuru (South-South), David Ige (South West), and Henry Obih (South East). Additionally, Mrs. Lydia Shehu Jafiya, Permanent Secretary of the Federal Ministry of Finance, and Aminu Said Ahmed, representing the Ministry of Petroleum Resources, will serve on the board.
The President has charged the new board with conducting a strategic review of NNPC-operated and Joint Venture assets to optimize value. This includes increasing crude oil production to 2 million barrels per day (bpd) by 2027 and 3 million bpd by 2030, boosting gas production to 8 billion cubic feet daily by 2027 and 10 billion by 2030, and expanding NNPC’s refining capacity to 200,000 bpd by 2027 and 500,000 bpd by 2030. The administration also aims to attract $30 billion in oil investments by 2027 and $60 billion by 2030, building on the $17 billion secured in 2024.
Ahmadu Musa Kida, the new Chairman, is a Borno-born engineer and former Deputy Managing Director of Total Nigeria. He also has a background in basketball, having served as the ex-president of the Nigeria Basketball Federation (NBBF). Bashir Bayo Ojulari, the newly appointed GCEO, hails from Kwara State and was previously the Executive Vice President of Renaissance Africa Energy, where he led a $2.4 billion acquisition of Shell’s Nigerian assets. He brings extensive experience from Elf and Shell, having worked across Europe and the Middle East.
President Tinubu expressed gratitude to the outgoing board for their contributions, particularly their efforts in reviving the Port Harcourt and Warri refineries, which have resumed production after years of dormancy. Analysts view this leadership change as part of Tinubu’s broader reforms in the oil sector, following last year’s removal of fuel subsidies and the promotion of private refinery investments. With the new team established, there are high expectations for enhanced transparency, efficiency, and profitability within Nigeria’s state oil enterprise.
Heineken Lokpobiri, minister of state for petroleum resources, says the federal government plans to commence implementing the drill-or-drop provisions of the Petroleum Industry Act (PIA).
Section 94 of the PIA gives operators a period of three years to begin oil production or relinquish the assets to the federal government.
Speaking during the Cross Industry Group (CIG) meeting held on Tuesday in Florence, Italy, Lokpobiri said it is in the best interest of the country that all inactive wells go to work.
He said the federal government, under the leadership of President Bola Tinubu, has provided every necessary incentive to ensure international oil companies (IOCs) in Nigeria run smoothly and profitably.
“Now, it is imperative for these industry players to match the government’s efforts with increased investment by announcing final investment decisions (FIDs),” he said.
Furthermore, Lokpobiri discussed “the challenges, expectations, and measures to enhance the sector’s contributions towards domestic energy needs and regional expansion across Sub-Saharan Africa”.
He emphasised that while IOCs have highlighted engineering, procurement, and construction (EPC) contractors as a challenge, “EPCs will not come unless they see strong commitments from industry players”.
“The government has done its part to provide the requisite and investment-friendly fiscals, the ball is now in the court of the IOCs and other operators to make strategic investment decisions that will drive increased production and sustainability in the sector,” he said.
“We must also recognise that domestic crude supply is essential to national energy security. The best solution to this challenge lies in increasing production, which will ensure a balance between domestic supply obligations and external commitments.”
The minister further urged industry players to explore collaborative measures, such as shared resources for contiguous assets and the release of underutilised assets to operators ready to invest in production.
The minority caucus in the house of representatives has condemned the killing of 16 Kano-bound hunters in Edo state.
On Thursday, a mob in the Uromi area of Edo killed 16 hunters of northern descent who were travelling from Elele, Rivers state.
The travellers were attacked and lynched after some vigilance group members raised the alarm on suspicion that they were kidnappers.
The Edo state government said 14 suspects arrested in connection with the killing would be transferred to Abuja for further interrogation.
During a visit to some of the families of the victims at Bankure LGA in Kano, Monday Okpebholo, governor of Edo, assured that justice would be served.
In a statement issued on Monday, the minority caucus described the killing of the hunters as “barbaric”.
“We find such brutal killings of innocent Nigerians in any part of the country by lawless mobs very reprehensible, and if allowed to fester without being put in check by responsible organs of the federal government, such actions could threaten the peace and unity of the country,” the statement reads.
The lawmakers asked Nigerians never to resort to jungle attacks on fellow citizens but to always report any concerns to security agencies.
“We are a nation under the rule of laws, and our law enforcement agencies are always available to partner with every Nigerian to assuage their concerns,” the caucus said.
While noting that the incident is “already setting emotions on edge” in parts of the country, the legislators urged President Bola Tinubu to ensure that the security agencies investigate this matter and bring the perpetrators to justice.
“Also, adequate compensation should be paid to the affected families,” the caucus said.
The lawmakers implored Nigerians to remain calm, peaceful, and law-abiding and allow the federal and state governments to investigate the matter and ensure justice is served.
The statement was signed by Kingsley Chinda, minority leader; Ali Isa, minority whip; and Aliyu Madaki, deputy minority leader.