Several Nigerian businesses that rely on imports have been cut off by their foreign suppliers who are rejecting letters of credit (LC) and refusing to deliver goods without payment as foreign currency shortages worsen in Africa’s biggest economy.

A letter of credit is a mode of payment used for the importation of visible goods. It is a written undertaking given by a bank at the request of its customer, in which the bank obligates itself to pay the exporter up to a stated amount within a prescribed time frame upon presentation of stipulated documents in exchange for goods.

Foreign suppliers are now demanding cash transfers into escrow accounts in place of LCs as faith in the Nigerian banking system wanes owing to the dollar shortage.

“Nigeria is bad credit today,” a banking source familiar with the matter said. “If the central bank can not honour obligations, why take any risk on a bank from Nigeria?”

The Central Bank of Nigeria (CBN) sold what is called forward contracts to several Nigerian businesses with the promise of dollars at an agreed price in future. The banks opened LCs on the back of the forward contracts, which were then used to buy goods from the foreign suppliers.

“The CBN has however not settled the contracts since February 2023 which means there’s a backlog of around $3 billion,” another source familiar with the matter said.

Worried by the growing backlog and with no assurance of when it will be cleared, correspondent banks are pulling the plugs on local Nigerian banks.

A correspondent bank acts as an intermediary or agent, facilitating wire transfers, conducting business transactions, accepting deposits, and gathering documents on behalf of another bank.

Correspondent banks are most likely to be used by domestic banks to execute transactions that either originate or are completed in other countries. Domestic banks generally use correspondent banks to gain access to foreign financial markets and to serve international clients without having to open branches abroad.

Bankers say the CBN’s failure to clear the dollar backlog has put them in a very tight FX liquidity position and has forced them to suspend several transactions including school fees and Personal Travel Allowance applications.

In the meantime, businesses are getting hammered and are turning to the black market to get dollars at a premium of over 20 percent to fund critical imports.

The persistent recourse to the black market is pushing up the cost of business, with severe implications for inflation.

Nigeria’s annual inflation rate accelerated to an 18-year high of 25.8 percent in August, according to official data.

The August inflation figure rose for an eighth straight month from July’s 24.08 percent, compounding a cost of living crisis worsened by President Bola Tinubu’s reforms.

The last time Nigerians experienced this level of inflation was in August 2005.

“The inflation data in our view reflects only in part the lifting of the subsidy. Much of the pre-existing pressure came from Nigeria’s monetary policy stance in the months that preceded this outcome, and the continued naira depreciation on the parallel market,” Razia Khan, Standard Chartered managing director and chief economist, Africa and Middle East, said.

The naira pared some losses to trade at 995 per US dollar on the streets on Monday after crashing to a new low of N1,050 last Friday. The official rate opened at N747 per US dollar. The gap, which disappeared in the first two days of the CBN’s reform in June, has reopened due to the scarcity of dollars in the official market.

Liquidity in the official market has collapsed to a daily average of $99.81 million, down from $295.58 million between May and June 2023 and $318.46 million between January and May 2023, according to data compiled by BusinessDay.

“The dollar illiquidity in the official market is why the rate in the black market is soaring and the gap between the official rate has reopened,” said Muda Yusuf, CEO of the Centre for the Promotion of Private Enterprise. “That is why the new CBN governor must prioritise clearing the backlog in order to save manufacturers and other businesses.”

The CBN, last June, following Tinubu’s victory at the polls, allowed the naira trade at a market rate by shifting to a willing buyer-willing seller arrangement after eight years of exchange rate controls.

But the CBN is proving that old habits die hard and has started unduly influencing the rates once again, stifling the market and draining the confidence that built in the early days of the reform.

All eyes are now on Yemi Cardoso, the new CBN governor, to see how he deals with the foreign exchange crisis that is threatening the economy.

Businessday

Nigeria’s local currency, the naira, has set a new record, falling to its lowest against the dollar at the parallel market.

Currency traders in Lagos, also known as Bureaux De Change operators (BDCs), quoted the naira at N1,000 to the greenback at the street market.

The traders, on Tuesday, put the buying price of the dollar at N990 and the selling price at N1,000 — leaving a profit margin of N10 .

The figure represents a depreciation of N7 or 0.7 percent from the N993/$ it traded on Monday.

A BDC operator simply known as Atiku, in Ishaga, said he is selling the dollar at N1000; while Shehu, another street trader in Ogba, offered the same rate.

“Dollar is more expensive and scarce. In fact, if you are willing to sell, I will be willing to buy, even if it is at N990/$,” said a BDC operator at the Alade market in Ikeja.

At the official side of the market, the investors’ and exporters’ window (I & E), the local currency depreciated by 4.78 percent to close at N773.25 to the dollar on Monday.

According to details on FMDQ OTC Securities Exchange, a platform that oversees official FX trading in Nigeria, a total of $64.14 million FX transactions were made at the I&E window.

The last time the naira hit its lowest was on August 10 when it traded at N950.

The Cable

About 30 percent of shipping companies in Greece have removed Nigeria from their charter party, following complaints over hostile environment and alleged harsh treatment meted out to crew members of vessels caught up in maritime security issues.
Disclosing this during the Maritime and Offshore Awards (OMIS) at the weekend, President of Maritime Security Providers Association of Nigeria (MASPAN), Emmanuel Maiguwa, said Greece, which holds about 70 per cent of global tonnage on vessel operations, has stopped its vessels from coming to Nigeria.
Consequently, Grecian vessels with Nigerian-bound cargoes stop in Togo or any other ports.
Maiguwa said insecurity, hostile environment and other harsh policies have pushed the vessels away from Nigeria to Togo. This, he said, will negatively impact the marine and blue economy sector, especially as Nigeria does not have its own vessels.

He gave instances where drugs were found on a vessel in Nigeria and the crew members were whisked away by National Drug Law Enforcement Agency (NDLEA) to its detention centre, in violation of immigration regulation.
Maiguwa also gave instances where harbour masters harass crew members of a vessel, compelling them to tender original trading certificate as guarantee for anchorage.
He explained that removing the original trading document of a vessel is against maritime port state regulations, especially when the harbour master is not a port state inspection officer, except he has a court order or has gone through maritime administration.

“Currently about 30 per cent of Greece shipping members have removed Nigeria from their charter party. What that means is that their vessels will not come to Nigeria. If they have to carry Nigerian cargo, the clause and condition is they have to stop in Togo or somewhere else.
“They don’t want to come to Nigeria because we have become so hostile. Insecurity and other policies push the vessels to Togo. In some cases, the owners will begin to consider subrogation and that blows their P&I so high,” he said.

Maiguwa said foreign vessel owners would rather have piracy attacks than witness the hostility in Nigerian environment. He said Nigeria will lose largely.

According to him, when foreign vessels refuse to come into the nation’s water, there will be nobody to do underwater cleaning, inspection survey, chandling services and others that attract shipping trade and job creation.
Maiguwa said with the situation, Nigeria will have to take its coastal and local vessels to Togo to procure services. This, he noted, will constantly put pressure on Nigeria’s foreign exchange. If the issue is not addressed, he said, Nigeria will end up as a country that only provides feeder shipping services to neighbouring countries.

Responding, the Chairman, Senate Committee on Marine Transport, Wasiu Eshilokun Sanni, assured maritime stakeholders of lawmakers’ maximum corporation to ensure the marine and blue economy sector works.
Sanni also gave update on the status of maritime bills at the Senate, saying they are at various stages of reading. He said about two legislations have gone through third reading and have been sent to the President for assent.
“Probably, because of time, about two of them were sent in May 2023, one was sent in March, and the former President was unable to sign it. We will find a way of re-presenting and doing the needful; making sure that all these legislations becomes Acts,” he said.

The OMIS Award is a yearly event that recognises excellence in the maritime industry, in collaboration with Prime Atlantic Safety Services and Hybrid Group, has included a technical summit in this year’s edition.
The conference, which also commemorated the World Maritime Day (WMD) provided a veritable platform for experts, leaders, regulators and relevant stakeholders to brainstorm and proffer lasting solutions to the challenges confronting the nation’s maritime industry.
Chief Executive Officer of The OMIS, Femi Da-Silva, said: “While appreciating the laudable efforts of industry regulators, we believe that convening experts and stakeholders in the maritime industry will foster a collective approach towards tackling the challenges we face, and drive the industry forward.”

The Guardian

Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC) of Nigeria have declared an indefinite strike, which will begin on October 3, 2023.

NLC president Joe Ajaero and Festus Osifo, president of TUC, said this after their separate Emergency National Executive Council (INEC), meeting in Abuja on Tuesday.

In a communique read by the two Presidents, the indefinite strike was due to the alleged insensitivity of the government to the sufferings of Nigerians as a result of the removal of petrol subsidy.

Also, the decision to go on the indefinite strike was reached due to the continuous demonstration of unwillingness and complete lack of initiative.

The two unions also urged their state chapters to mobilize for protests across the country.

NLC had earlier embarked on a two-day warning strike, which took place on Tuesday, September 5, and Wednesday, June 6, 2023.

Meanwhile, Minister of Labour and Employment, Simon Lalong has appealed to the NLC leadership to stop the planned strike.

Lalong assured them that the Federal Government is determined to address the concerns raised.

The Guardian

RUSSIAN PERSPECTIVE

US lawmakers propose major cut to Ukraine aid

The US Senate has reached a provisional deal on a spending bill needed to avert a federal budget crisis, with lawmakers agreeing to slash nearly $20 billion in proposed aid for Ukraine following push-back by some Republicans.

The upper chamber ended debate on the budget legislation on Tuesday night, garnering the support needed to advance to a final vote, officials from both parties said.

“All through the weekend – night and day – Senate Democrats and Republicans worked in good faith to reach an agreement on a continuing resolution that will keep the government funded and avert a shutdown,”Senate Majority Leader Chuck Schumer, a Democrat, said in a statement.

The stop-gap bill will reportedly allocate $6.2 billion for assistance to Ukraine, a significant drop from the nearly $25 billion originally sought by Democrats. While a large number of Republicans appear to have accepted the more modest aid package, some GOP members have vowed to oppose any measure that includes funding for Kiev.

“It’s bad policy to bankrupt our own country to send money to Ukraine,”libertarian-leaning Senator Rand Paul said in a post on X (formerly Twitter). “I will not consent to easy passage of any spending bill that includes funding for Ukraine. Those in charge of this bill need to either take it out or will have to fight me every step of the way.”

In another missive, Paul mocked leaders in both parties, sharing a photo of Schumer and his GOP counterpart Mitch McConnell with the caption: “The look on their faces when they learned Ukrainian government workers would be paid during a shutdown, but not American government workers. Priceless? No, pathetic.”

However, while the Senate appears close to an agreement on the budget measure despite Paul’s opposition, the bill must be reconciled with a separate version advancing through the House. Lawmakers in both chambers have until September 30 to produce final legislation for President Joe Biden to sign, risking a shutdown otherwise.

It remains to be seen whether House Speaker Kevin McCarthy will accept the Senate’s alterations to the spending bill, given that congressional Republicans are seeking deeper budget cuts and have opposed Ukraine aid more vocally. Earlier on Tuesday, the House leader said he would not speak in “hypotheticals” regarding the Senate bill, but suggested his party would look to boost border funding in their own version.

Though senior White House officials previously warned that a federal shutdown would hamper US military aid to Kiev, the Pentagon itself has appeared to contradict those claims.

** NATO will cause a conflict worse than WWII – ex-Russian president

The West is pushing the world closer to a global conflict unseen since World War II, by supplying ever heavier weapons to Ukraine and celebrating Nazism, former Russian president, Dmitry Medvedev, warned in a Telegram post on Tuesday.

Medvedev, who is currently the Deputy Chair of the Russian Security Council, was reacting to the reported arrival of US-made M1 Abrams battle tanks in Ukraine and a scandal that saw the Canadian parliament, alongside Prime Minister Justin Trudeau and Ukrainian President Vladimir Zelensky, give a standing ovation to a former member of the Waffen SS.

The former Russian president decried the scandal, which had already sparked outrage in Poland, Russia and in the Jewish community, labelling it “fraternization… with Nazis.”

“It looks like Russia is being left with little choice other than a direct conflict with NATO,” he reasoned, while highlighting reports that Washington has promised longer-range Army Tactical Missile Systems (ATACMS) to Kiev.

Medvedev claimed that NATO has “turned into an openly fascist bloc similar to Hitler’s Axis, only bigger,” adding that Russia is still ready to face-off against it if needed. Such a conflict would lead to devastating consequences for humanity, he warned.

“The result would be much heavier losses for humanity than in 1945,” he warned.

The former president took a hardline position on Russia’s relations with the West amid the ongoing conflict between Moscow and Kiev. In September, he suggested suspending diplomatic relations with the EU after the bloc backed banning Russian nationals from bringing personal cars and smartphones onto its territory, citing potential sanctions violation.

He has previously blasted Kiev’s Western backers as a “pro-Nazi” coalition and repeatedly warned about a potential direct confrontation between Russia and NATO. Moscow also warned on multiple occasions that continued Western arms supplies to Ukraine leads to the ever-deeper involvement of the NATO members into the ongoing conflict and risks spiralling into a full-blown war between Russia and the US-led bloc.

** More than 325,000 contractors join Russian army in 2023 — Medvedev

More than 325,000 contractors have joined the Russian army this year, Deputy Chairman of Russia’s Security Council Dmitry Medvedev said at a meeting on manning the armed forces.

"We continue to work on supplementing the armed forces with contract servicemen and control combat and morale-bolstering activities," he said.

"From January 1 September 26 this year, more than 325,000 men have been enlisted," Medvedev pointed out.

Earlier, Russian President Vladimir Putin reported that 1,000-1,500 were coming every day to sign contracts with the Russian Armed Forces. He pointed out that by mid-September 300,000 had signed military enlistment contracts.

WESTERN PERSPECTIVE

Russian Black Sea commander Sokolov shown on video call after Ukraine said it killed him

Admiral Viktor Sokolov, the commander of Russia's Black Sea Fleet, was shown on Russian state television on Tuesday attending a defence leaders' meeting remotely, a day after Ukrainian special forces said they had killed him.

In video and photographs released by the defence ministry, Sokolov was shown as one of several fleet commanders on video apparently joining an in-person meeting of Defence Minister Sergei Shoigu and other army chiefs, although not speaking. It was not clear when the video was filmed.

Ukraine's special forces said on Monday that Sokolov had been killed along with 33 other officers in a missile attack last week on the headquarters of Russia's Black Sea Fleet in the port of Sevastopol in Crimea, seized from Ukraine in 2014.

In response to the Russian video, the Ukraine special forces said on Telegram: "Since the Russians were urgently forced to publish a response with Sokolov allegedly alive, our units are clarifying the information."

Kremlin spokesman Dmitry Peskov had declined to comment on the Ukrainian claim, referring reporters to the ministry.

In the video, Shoigu said more than 17,000 Ukrainian soldiers had been killed in September and that more than 2,700 weapons, including seven American Bradley fighting vehicles, had been destroyed.

Reuters could not independently verify battlefield claims.

"The Ukrainian armed forces are suffering serious losses along the entire front line," Shoigu said, adding that the Ukrainian counteroffensive had so far produced no results.

"The United States and its allies continue to arm the armed forces of Ukraine, and the Kyiv regime throws untrained soldiers to the slaughter in senseless assaults," Shoigu said.

Kyiv's counteroffensive has yet to seize much territory from Russian forces, which control about 17.5% of Ukraine's internationally recognised territory.

According to a Sept. 19 scorecard by the Belfer Center at Harvard's Kennedy School, Russia has gained 35 sq miles (91 sq km) from Ukraine in the past month while Ukrainian forces have taken 16 sq miles (41 sq km) from Russian forces.

** Polish experts confirm missile that hit grain facility was Ukrainian - media

Polish experts have confirmed that the missile that killed two people at a grain facility in southern Poland in November was fired by Ukraine, Rzeczpospolita daily reported, citing sources.

The explosion of the missile in NATO-member Poland fuelled fears that the war in Ukraine could spiral into a wider conflict by triggering the alliance's mutual defence clause, but at the time Warsaw and NATO said that they believed that it was a Ukrainian stray, easing worries about escalation.

Sources with knowledge of the investigation told Rzeczpospolita that Poland had established that the missile that landed in the village of Przewodow was an S 300 5-W-55 air-defence missile fired from Ukrainian territory.

"This rocket has a range of 75 km to 90 km," the newspaper cited a source as saying. "At that time, the Russian positions were in a place from which no Russian missile could reach Przewodow."

Ukraine has denied that one of its missiles had landed in Poland.

Rzeczpospolita reported that the Ukrainian side has not made any material available to Polish investigators.

It quoted Lukasz Lapczynski, spokesman for the Polish prosecutor's office, as saying the prosecutor had received the experts' opinion but was not disclosing its content as it was confidential.

Lapczynski could not immediately be reached for comment and the prosecutor's office did not immediately respond to an emailed request.

RT/Tass/Reuters

Liz Truss is back in the news, but a small state is out of fashion – or at least with the punters. The new British social attitudes survey finds that seven in 10 of us think it’s definitely government’s job to control prices, up from three in 10 in 2006. Only 30% wanted public spending increased in 2009; now that’s 55%.

This has libertarians turning in their Tufton Street graves. But they should relax. Partly that’s because the surge in support for big government shouldn’t be a surprise and may be temporary. The survey was carried out in autumn 2022, when people faced unpayable energy bills without government support. And it followed a pandemic posing health and economic challenges individuals couldn’t hope to address alone.

But it’s also because sensible state support doesn’t actually turn people into dependent zombies. Confident assertions that furlough caused the recent rise in labour market inactivity are garbage: those furloughed were no more likely to exit the labour market than others.

Indeed the state being there for us when we need it is a big part of what binds a country together – as deference has declined, it’s central to modern patriotism. Recent research examining Roosevelt’s 1930s New Deal proves the point. This was a huge expansion of the state, doubling federal spending and providing work at a time of 25% unemployment. Rather than sapping Americans’ energy, the research shows those people who received federal help stepped up when Uncle Sam called in the Second World War: they volunteered to fight in greater numbers, bought more war bonds and won more awards for heroism.

So remember, there’s nothing patriotic about leaving people to sink or swim.

Torsten Bell is chief executive of the Resolution Foundation. Read more at resolutionfoundation.org

The Guardian, UK

Few people who write about Elon Musk get the kind of access to the controversial genius as Walter Isaacson did. Simon & Schuster sent me an early copy of Isaacson's new, 600-page biography, Elon Musk. 

It has everything you'd expect from a book on Musk – stories of tragedy, triumph, and turmoil. Isaacson spent two years shadowing Musk, watching him make decisions, and getting a peek – as best as anyone could – into what makes Musk tick.

While the stories are fascinating and guaranteed to spark a mountain of coverage, founders and entrepreneurs will also unearth valuable lessons, especially in the book's first half. One such lesson can be found in Musk's relentless pursuit of a mission. 

"It's what makes him a force of nature," says Musk's former PayPal colleague Reid Hoffman. Mission seekers, says Isaacson, are bold, relentless, and consistent communicators.

Mission Seekers Are Bold

If you have an idea for a business, the overarching mission you're trying to achieve had better be big and bold. Otherwise, you won't have the energy to keep going when times get tough and you'll likely give up when hurdles inevitably arise.

According to Isaacson, "Musk is driven by mission more than any person I've ever seen." As far as Isaacson can tell, Musk pursues three really big missions:

• To make humans a spacefaring multiplanetary species (the first step is to get us to Mars).
• To bring us into the era of sustainable energy.
• To make sure artificial intelligence is safe and aligned with human values.

Mission Seekers Are Relentless

The 20 chapters of Isaacson's book that trace the early years of SpaceX and Tesla are page-turners because of the constant ups, downs, and near-death experiences at both companies.

It's easy to forget that, given the success of SpaceX and Tesla today, there was a time when neither company looked like it would survive. 

Tesla was "hemorrhaging cash," and SpaceX had crashed three rockets in a row. But Isaacson says Musk's relentless pursuit of his vision prevented any outcome except one – success.

For example, after the third failure of the Falcon 1 rocket launch, Musk's team thought it was the end of the road. Another great idea has gone up in smoke. "But he was not ready to give up," writes Isaacson. 

Musk told the team: "There should be absolutely zero question that SpaceX will prevail in reaching orbit. I will never give up, and I mean never."

People in the meeting that day told Isaacson that the team's mood instantly changed – from despair and defeat to "a massive buzz of determination." On the fourth attempt, Falcon 1 made history as the first privately built rocket to launch from the ground and reach orbit.

Musk didn't have time to celebrate because Tesla was close to bankruptcy. 

He was advised to sell one company, Tesla or SpaceX, giving the surviving one a reasonable chance to succeed. "No," said Musk. If Tesla fails, "we'll never get to sustainable energy." If SpaceX failed, "We might never be a multiplanetary species."

And so Musk decided to save both.

Mission seekers cannot bear parting with one of their children.

Mission Seekers Are Consistent Communicators

Isaacson makes a fascinating observation about Musk's sense of mission. When Isaacson first heard Musk talk about getting to Mars as a step toward making humans a multiplanetary species, he thought it was simply a "pep talk" to motivate the team.

After hearing it the 20th time, Isaacson realized that Musk really believed it.

Mission seekers often sound outlandish because they know that all great accomplishments once seemed ridiculous, too. But they relentlessly express their bold mission and, in doing so, motivate others to do more than they ever thought possible.

"This is a land of adventurers," Musk told Isaacson. "Life cannot be merely about solving problems. It has to be about pursuing great dreams. That's what can get us up in the morning."

Inc

President Bola Tinubu has filed an appeal against an order of a US court directing the Chicago State University (CSU) to release his academic records to Atiku Abubakar, presidential candidate of the PDP.

Abubakar had approached the court, seeking to compel the university to grant his request on the grounds that the documents would strengthen his suit challenging Tinubu’s electoral victory. 

On September 19, Jeffrey Gilbert, a US magistrate judge, granted the request and ordered CSU to release Tinubu’s academic records within 48 hours. 

However, on September 21, Tinubu filed a motion seeking to extend the deadline and stay the execution of the magistrate’s order on several grounds.

He had claimed that he was not given a fair hearing since he was not joined as a party in the suit.

The president also challenged the jurisdiction of the magistrate to issue a final order on the reliefs sought by his opposition.

During an emergency hearing on Thursday, Nancy Maldonado, US district judge, agreed to extend the deadline. 

In the fresh appeal filed on Monday, Tinubu claimed that Abubakar did not meet the jurisdictional requirement for the court to grant the reliefs he sought.

He said contrary to the PDP candidate’s claim that the documents sought would support his suit challenging the presidential election, the applicant (Abubakar) cannot use the academic records before the supreme court in Nigeria.

“Here, the second jurisdictional requirement – that the discovery sought is “for use” in election challenge pending in the Nigerian election court is absent because the applicant cannot submit the information sought,” Tinubu argued.

“For the same reasons, the second discretionary factor – the character and nature of the foreign tribunal and that tribunal’s receptivity to US judicial assistance – weighs strongly against applicant’s discovery because the Nigerian courts already stated they will not consider the evidence due to applicant’s failure to plead his claim in the petition.”

“Furthermore, nearly all of the discovery sought is not “for use” in the election challenge because applicant’s assertions of disqualification only apply to the diploma submitted to INEC by the intervenor.

“For the same reasons, the fourth discretionary factor, whether the request is unduly intrusive or burdensome, weighs against allowing discovery because the applicant’s interest in satisfying curiosity does not overcome Intervenor’s interest in his private and confidential academic records.”

ATIKU WANTS TO SOW CONFUSION AND SPREAD CONSPIRACY THEORIES

The president further asserted that the magistrate erred when he made conclusions that Abubakar’s application met the jurisdictional requirements.

He said since the issue being contended by the opposition candidate in Nigeria is the diploma submitted to the Independent National Electoral Commission (INEC), granting him access to “other educational documents” is “nonsensical”.

“There is harm in allowing discovery on issues and documents outside the diploma,” the document reads.

“Obtaining more documents via a subpoena – particularly ones that are not part of the INEC submission by Intervenor – is both improper and nonsensical.

“The unlawful release of documents previously allowed Intervenor’s opponents to sow confusion and spread conspiracy theories.

“Applicant should not be permitted to conduct discovery on the discovery illegally obtained by applicant’s allies and intervenor’s political opponents.

“The magistrate judge clearly erred in granting the application for discovery and concluding that Chicago State University must respond to the document and deposition subpoenas.

“That conclusion should be set aside and the application should be denied because the information sought cannot be used and therefore is not “for use” in the foreign proceedings.”

The Cable

Equinor ASA has chosen a little-known company as the preferred buyer of its stake in one of Nigeria’s largest deep-water oil fields, according to people familiar with the matter.

The Norwegian energy giant is trying to sell its 20.2% interest in the Agbami field – joining other international producers such as Shell Plc, Exxon Mobil Corp. and Eni SpA in looking to offload assets in Africa’s biggest crude producer.

Chappal Energies Mauritius Ltd. has emerged as the favored buyer of Equinor’s interest in the asset, which is operated by Chevron Corp. and produces about 100,000 barrels of oil a day, the people said. Five companies including Prime Oil & Gas Cooperatief UA, which already has a 12.5% share in the Agbami field, submitted binding bids, according to the people. Prime O&G is a joint venture between Vancouver-registered Africa Oil Corp. and Brazil’s Grupo BTG Pactual.

Agbami has accounted for about 7% of Nigeria’s oil output this year and only the Shell-operated Bonga field currently produces more oil in the country.

A sales agreement hasn’t yet been signed and Chappal Energies still needs to raise the funds to finance the deal, according to the people, who didn’t say what purchase price has been negotiated.

Spokespeople for Equinor, Chappal Energies and Prime O&G declined to comment.

Chappal Energies was founded in May 2022, according to Mauritian corporate records. Bill Higgs, the British former chief executive of Kurdistan-focused Genel Energy Plc, and Hezekiah Oyinlola, a Nigerian who spent three decades working for the world’s biggest oil services provider, SLB, joined the company’s board in February. Oyinlola is also chairman of Lagos-based bank Guaranty Trust Holding Co.

Chappal Energies’ managing director, Ufoma Immanuel, previously held the same position at a Lagos-based company named Chappal Petroleum Development Ltd., which was created in 2020 and chaired by the founding chief executive officer of Seplat Energy Plc, Austin Avuru. Chappal Petroleum unsuccessfully bid for Nigerian shallow-water oil blocks that Exxon agreed to sell to Seplat in February 2022.

Avuru, who is not on the board of Chappal Energies, and Immanuel didn’t respond to questions about the relationship between the two firms.

While Equinor is seeking to exit its sole Nigerian asset after more than three decades in the country, the other oil majors are limiting their divestments to onshore and shallow water assets in order to concentrate on deep-water projects.

Equinor is also exploring the sale of its operations in Azerbaijan, including a stake in the country’s largest oil project, according to people with knowledge of the matter.

Bloomberg

Peoples Democratic Party has demanded an investigation into the fire incident at the supreme court. 

Fire gutted a section of the apex court on Monday. The fire which started in the office of Ibrahim Saulawa, one of the justices, destroyed some files.

Federal Fire Service (FFS) said no casualty was recorded in the incident, noting that firefighters swung into action to contain the outbreak. 

Debo Ologunagba, PDP spokesperson, said in a statement on Monday evening that the party was “alarmed” by the fire incident, describing it as suspicious.

The opposition party demanded an “immediate full-scale” investigation into the fire outbreak to unravel the “circumstances or possible sabotage” in the incident.

“The PDP is worried over the fire outbreak especially given heightened public apprehension of possible arsonist attack with the intent to cripple and frustrate the Supreme Court from effectively discharging its constitutional duties, especially with regard to high-profile electoral cases including the Presidential Election Appeals pending before it,” the statement reads.

The PDP said the outcome of the investigation should be made public unlike those of previous fire incidents in various government ministries, departments and agencies “which were characteristically swept under the carpet”.

The party asked the federal government to beef up security around the supreme court and ensure the safety of sensitive documents and equipment in the complex.

The supreme court is expected to deliver judgement in the appeal filed by the PDP and Atiku Abubakar, its presidential candidate in the 2023 elections against the victory of President Bola Tinubu.

Abubakar and the PDP are challenging the judgement of the election petition tribunal affirming Tinubu as winner of the February 25 election.

The Cable