Major International Business Headlines Brief::: 24 March 2025
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Major International Business Headlines Brief::: 24 March 2025
<mailto:info at bulls.co.zw>
ü Nigeria: Court Fines MTN Nigeria N840m for Trademark Offence
ü Nigeria: Tony Elumelu Foundation Grants African Entrepreneurs Over $115m, Create 1.5m Jobs
ü Nigeria: Flight Delays - Don't Vandalise, Attack Airlines' Workers, FAAN Warns Passengers
ü Nigeria: Ekiti Being Positioned As Leading Smart Technology Education State - Oyebanji
ü Key Stakeholders In Uganda Call For Greater Investment In Young Entrepreneurs
ü Uganda: Parliament Approves $190 Million for Umeme Concession Buyout
ü Nigeria Eyes EU's €43bn Horticulture, Grapes Import Markets
ü Nigeria: NNPC's Forward Oil Sales Hit $21.5bn in Six Years, Hobble Domestic Crude Obligations
ü Nigeria: Amid Recapitalisation Drive, Insurance Industry Set for N600bn Capital Injection - Report
ü Nigeria Advocates for Formal Designation, Elevation of Seafarers, Others - ILO
ü Nigeria: Kebbi Poised to Become Lithium Processing Hub As El-Tahdam Secures $500m Investment
ü Nigeria: Ill-Treatment of Nigerians Unacceptable - NCAA to Delta Air Lines
ü Nigeria: France's Wine Industry Is in Crisis. Can This Nigerian Consultant Save It?
ü Africa: Wealthy Africans Often Don't Pay Tax - the Answer Lies in Smarter Collection - Expert
ü
<mailto:info at bulls.co.zw>
Nigeria: Court Fines MTN Nigeria N840m for Trademark Offence
Justice Akintayo Aluko of the Federal High Court in Lagos has slammed a N840 million fine on MTN Nigeria Communications Limited for infringing on the registered trademark "WEBPLUS," owned by Citilink Accesscorp Limited.
Justice Aluko, who imposed the fine while delivering judgment on a suit marked HC/L/CS/1124/2014 filed by Citilink, held that MTN's use of "MTN WEBPLUS" or "MTN WEB+" unlawfully mimicked the plaintiff's trademark.
The judge awarded N70 million yearly damages, covering Citilink's loss of business and brand dilution from 2014 to 2025.
The court also ordered MTN to pay the applicant 15 per cent interest per annum on the judgment sum until it is fully paid.
Citilink Accesscorp Limited, in a suit filed on July 17, 2024, accused MTN Nigeria of infringing on its trademark "WEBPLUS," which was legally registered in 2001 under Class 9 and renewed in 2014.
Citilink had argued that MTN's use of "MTN WEBPLUS" and similar variants constituted unauthorised usage, misleading the public and damaging its brand.
The applicant joined the Registrar of Trademarks, Patent Designs, as a defendant, representing all entities involved in the production, marketing, and sale of the infringing services.
The applicant had urged the court for a declaration that Citilink Accesscorp Limited is the sole legal owner of the "WEBPLUS" trademark.
The applicant further asked the court for a perpetual injunction restraining MTN from further use of "WEBPLUS" in any form and an order preventing the Registrar of Trademarks from issuing any trademark rights to MTN under "WEBPLUS" or any variation of it.
"An order for seizure by the Bailiff of this Court for the destruction of all the servers of the first defendant which hosted, still hosts, used and still being used for transmitting information, messages, advertisement, marketing details of the first defendant's MTN WEBPLUS to the general public.
"A demand for N1.5 billion in general damages for infringement and compensation for legal fees and expenses incurred."
But MTN Nigeria challenged the court's jurisdiction, arguing that a pending case at the Trademark Tribunal made the lawsuit invalid.
The company also claimed that its application for "MTN WEBPLUS" was made in 2012, when Citilink's trademark registration had lapsed (between 2008 and 2014).
While stating that the applicant failed to prove trademark infringement, the telecommunications firm insisted that its use of "WEBPLUS" was an honest concurrent use, meaning it had no intention to deceive.
It further stated that the applicant lacked sufficient evidence to justify its financial claims.
In his ruling, Justice Aluko rejected MTN's defence and upheld the applicant's infringement claims.
However, the court denied some of the applicant's additional demands, including the request for the seizure and destruction of MTN's servers and a claim for N10 million in special damages due to insufficient proof.
Justice Aluko also granted a perpetual injunction against MTN, barring the telecom giant from further use of the disputed trademark.
Read the original article on Leadership.
Nigeria: Tony Elumelu Foundation Grants African Entrepreneurs Over $115m, Create 1.5m Jobs
The Tony Elumelu Foundation (TEF) has disbursed over $115 million in grants to African entrepreneurs since its inception, supporting more than 24,000 beneficiaries and creating more than 1.5 million jobs across the continent.
TEF founder, Tony Elumelu announced this at the weekend in Abuja, while unveiling 3,000 newly-selected entrepreneurs across the continent who will benefit from the foundation's 2025 entrepreneurship programme.
The entrepreneurs carefully selected across 54 African countries will be awarded a $5,000 non-refundable grant each, to either launch or scale their businesses.
This latest cohort brings the total number of beneficiaries to 24,000 since the program's launch in 2015.
Elumelu, who also serves as the chairman of Heirs Holdings, Transcorp, and United Bank for Africa (UBA), revealed that businesses supported by the programme have collectively generated over $4.2 billion in revenue to date, lifting more than two million Africans out of poverty.
TEF is the leading philanthropy empowering a new generation of African entrepreneurs, driving poverty eradication, catalysing jobs across the continent and ensuring inclusive economic empowerment.
It has trained over 2.5 million young Africans through its proprietary digital platform, TEFConnect, equipping them with essential business skills and entrepreneurial knowledge.
"The foundation's ability to fund, train, mentor, and network young African entrepreneurs, has created a unique platform for catalysing growth across the African continent," Elumelu stated.
He emphasised that the foundation's extensive reach across diverse geographies and sectors has facilitated groundbreaking collaborations with key global organizations. These include the European Union, focusing on gender empowerment; the United Nations Development Programme, targeting conflict-affected regions; and partnerships with UNICEF's Generation Unlimited (GenU) and the IKEA Foundation to support green businesses.
Other partnerships include with the International Committee of the Red Cross; United States Government through the United States African Development Foundation (USADF); Organisation of African,
Caribbean and Pacific States (OACPS); French Development Agency (AFD); German Development Finance Institution (DEG); German Agency for International Cooperation (GIZ); African Development
Bank (AfDB), amongst others.
Elumelu noted that these collaborations have led to the creation of tailored initiatives, including programs specifically designed to empower women and drive economic growth in fragile states.
He also highlighted that the partnerships demonstrate the program's scalability, revealing that while the initial goal during set up in 2010 was to empower 10,000 entrepreneurs, the foundation has far exceeded expectations, supporting over 21,000 by 2024.
He said: "We are keenly aware of the millions that we've been unable to touch yet, which is why I keep advocating that in the 21st century, what Africa needs is not aid, but investments, including in infrastructure and our young ones where the future lies.
"What we do at the foundation is not out of an abundance of wealth, but a deep realisation that if we don't do this, we are creating problems for ourselves, it is in our collective existential interest to identify and support them."
Elumelu emphasised TEF's strategy is to mobilize Africans and global allies to collectively empower the continent's youth.
Data indicates that 45 per cent of businesses funded by TEF are women-owned, collectively creating over 500,000 jobs and generating approximately $320 million in revenue.
Additionally, beneficiaries living with disabilities have generated more than $200million in revenue and created 150,000 jobs. Meanwhile, 65 per cent of beneficiaries empowered so far are from fragile states.
CEO, Tony Elumelu Foundation, Somachi Chris-Asoluka, revealed that the partnerships forged since the programme's inception, have been "phenomenal", and that moving forward, the plan is to scale the commitment to young Africans.
"Our entrepreneurs have demonstrated that ideas are the lifeblood of the African continent. For the 2025 cohort, we received over 200,000 applications, and from this pool, 3,000 entrepreneurs from 52 African countries will receive $15 million in funding. Each entrepreneur will receive a $5,000 non-refundable seed grant; this is neither a loan nor equity.
"We will continue to fund young African entrepreneurs, and inspire like minded partners in Africa and beyond, to work with us on this journey," she stated.
To ensure long-term impact, she explained that the foundation has established a robust monitoring and evaluation platform, meticulously tracking each funded entrepreneur starting six months after the seed capital is disbursed.
She emphasised that the selection process is rigorous and transparent, overseen by Ernst & Young, and anchored on five critical criteria: feasibility, scalability, market opportunity, financial literacy, and leadership/entrepreneurship skills.
"We don't expect the entrepreneurs to score 100 across board, but these are some of the things we look out for in selecting some of the most innovative ideas.
"We also want our entrepreneurs to go beyond profit, they must contribute to at least one of the Sustainable Development Goals. This is how we shortlist entrepreneurs on our program," the CEO explained.
Read the original article on Leadership.
Nigeria: Flight Delays - Don't Vandalise, Attack Airlines' Workers, FAAN Warns Passengers
As the Eid-el-Fitri Sallah celebration draws nearer with the expected surge in flight schedules and passenger traffic, the Federal Airports Authority of Nigeria (FAAN) has called on passengers to be guided by laws and restrain from destroying terminals and airlines' properties due to flight delays, rescheduling and cancellations.
Managing director of FAAN, Olubunmi Kuku, who spoke while breaking fast with the Lagos airport Muslim communities at an Iftar dinner, urged passengers to show understanding, pointing out that no airline will willingly delay or outrightly cancel any flight without any reason.
Kuku, who spoke through FAAN director of Operations, Captain Abdullahi Mahmood also urged passengers to get to airports on time and to also under Airlines' rights.
He said, "We urge that passengers should be guided by the law. You buy your ticket, you come to the airport and once there is a challenge, they should understand with the airline. All this coming, claiming, fighting, breaking things, is not doing any good to anyone. I have never seen anywhere in the world people do that. So, we need to be patient.
"We need to understand. Yes, we need to understand our rights, and we need to understand the airlines' rights also. We need to understand that everyone has their rights."
Mahmood affirmed that, "the airlines have rights, in as much as you have your rights as passengers, they have their rights also. So, understand that this right is very, very important. And to make sure that what you call it, then go to the airport on time and then maintain good behaviour at the airport is important."
He disclosed that the authority is making efforts to ensure that all the airports in the country are up to standard.
"We are anticipating it and we are making every effort to make sure that our airports are up to standard.
We also make sure that whatever it is, the facilities of our airport, the runways and everything is all in place for full facilitation of our passengers' travel," he said.
Also speaking on tackling touting at the nation's airports, Capt. Momodu said, FAAN is not resting on eradicating touting at the airports.
"You could see the comments from passengers. At least they are seen; people are now understanding. We are taking it very, very seriously. Yes, it's not something that you don't expect to change overnight.
"It's the same thing that anytime they say you want to fight corruption, corruption, fight back. You have to understand some people are gaining from this, and you want to move them out of what they are doing. No matter what it is, they will fight back, but we are ready. We are equal to the task. We are fighting and we are sensitising people to understand that what they are doing is wrong," he stated.
Read the original article on Leadership.
Nigeria: Ekiti Being Positioned As Leading Smart Technology Education State - Oyebanji
Ekiti State Governor, Mr. Biodun Oyebanji has said that his government would continue to do everything possible to ensure that the state remains a leading state in smart technology for education at the primary, secondary, and tertiary levels of learning in the country.
He restated his administration's commitment to implementing education policies that are designed to meet society's needs and equip students with practical skills for real-world challenges.
The Governor stated this in his office at the weekend, while receiving a delegation from South Korea, led by the Koika Deputy Country Director, Mr Baik Ki-Hyyn, who was in the state for an in-depth survey of the Smart School Project,
Governor Oyebanji said his administration is strategically leveraging innovative technology in education to equip students with the needed skills, enhanced critical thinking and creativity to become solution providers.
He added that it will ensure that state graduates are well prepared to tackle contemporary challenges and contribute to the overall development of the state and the country at large.
Governor Oyebanji thanked the South Korean Government for the partnership, stressing that his administration has invested hugely in education for literacy and numeracy and actual human capital development, making citizens globally competitive in productivity.
"We appreciate Koika's partnership with UBEC, which birthed the innovative schools in Ekiti State. Education is our primary industry; we are one of the most educated states in the country, and we also have an abiding duty to ensure that we sustain that prime place in the country.
"If you look at the six pillars of our administration, you will see human capital development in number three, and since we came on board, we have been deliberate in our intervention in that sector because we believe that education owns the key to development and growth and there is no alternative to knowledge.
"We also believe strongly that our education strategy and policy must address literacy and numeracy and they must also respond to the needs of the society", the Governor asserted.
The Head of Delegation and Koika Deputy Country Director, Mr Baik Ki-Hyyn, commended the Governor for his commitment to advancing education through innovative policies.
He said Ekiti State had been exceptional among the six states chosen for the project launched in 2021.
Read the original article on Leadership.
Key Stakeholders In Uganda Call For Greater Investment In Young Entrepreneurs
Kampala, Uganda — Key stakeholders gathered in Kampala at the Mastercard Foundation’s Young Africa Works Dialogue on February 19, 2025, to discuss the challenges young entrepreneurs in Uganda face in starting and scaling new ventures. The event culminated in the release of recommendations for empowering the sector and a call to action for systemic reforms to unlock the full potential of youth entrepreneurship.
The dialogue, attended by over 350 participants at the Serena Hotel, featured a keynote address by Godfrey Byamukama, Assistant Commissioner, who represented Ramathan Ggoobi, the Permanent Secretary and Secretary to the Treasury, Ministry of Finance, Planning, and Economic Development. He emphasized the need to bridge the gap between policy and practice, acknowledging that young people’s voices are crucial in shaping effective interventions. “The true measure of Uganda’s progress lies in how we empower our youth to lead its transformation. By breaking barriers to entrepreneurship and equipping them with the tools to succeed, we are not just building businesses—we are building a nation.” He also highlighted Uganda’s ambitious ten-fold economic growth strategy, which aims to expand the economy from $50 billion to $500 billion over 15 years, with youth entrepreneurship at the centre. The government is capitalizing wealth funds worth $1.31 billion (UGX 4.8 trillion), targeting young people, women, agriculture, and industrial transformation.
Uganda’s young people are widely recognized for their entrepreneurial spirit, playing a pivotal role in driving innovation and economic growth. According to the State of Entrepreneurship in Uganda 2024 Report, micro, small, and medium enterprises account for over 90 percent of private sector businesses and employ millions of Ugandans, making these enterprises a cornerstone of the economy. However, systemic barriers hinder young entrepreneurs, including limited access to finance, low business registration rates, limited market access, and a persistent digital divide. Addressing these constraints through targeted skilling, financial inclusion, and enabling policies is essential to unlocking the full potential of Uganda’s young entrepreneurs.
Adongo Immaculate, a participant of the Regional Universities Forum for Capacity Building in Agriculture at Gulu University and Founder of Fresh Picks Enterprise, reflected on the challenges young people face in accessing business support and skills development.
Young people do not lack potential; they lack access to the right skills and opportunities. The biggest mistake we continue to make as a society is that we train young people for a world that no longer exists.”
Mastercard Foundation
Adrian Bukenya, country director of Uganda programs, Mastercard Foundation, at the Young Africa Works Dialogue in Kampala, Uganda, February 19, 2025.
The young entrepreneur underscored the importance of embedding entrepreneurship training into education systems and ensuring that young people are prepared to seek employment and create their own opportunities.
The discussions reinforced the urgent need for improved access to finance, productive resources, and stronger peer-to-peer networks. Young entrepreneurs requested more information about opportunities within the broader entrepreneurship ecosystem. Additionally, they called for strengthened inclusive targeting for young people with disabilities and refugees, ensuring that interventions are tailored to their specific needs. Building partnerships that provide a range of services and programs, including mentorship, market access, and capacity-building initiatives, was highlighted as a critical step in advancing youth entrepreneurship.
Key Recommendations from the Young Africa Works Dialogue
Expand access to finance by increasing youth-friendly financial products and alternative financing models.
Strengthen peer-to-peer business networks and digital platforms to improve market access and knowledge sharing.
Create a more enabling policy and regulatory environment that supports youth-led businesses and startups.
Integrate entrepreneurship training into education at all levels to equip young people with practical business skills.
Enhance inclusion by tailoring financial services, training, and market access for women, refugees, and persons with disabilities.
Access to finance remains a significant barrier for young entrepreneurs, mainly due to high interest rates, slow loan disbursement, and stringent collateral requirements. The dialogue explored alternative financing models, including grants, digital microfinance, and asset-backed lending, to ensure that young people, particularly women and marginalized groups, have greater access to credit.
For many young entrepreneurs, networks and collaboration play a vital role in sustaining businesses. Florence Naziwa, an agribusiness exporter and participant in the Foundation’s partnership with Ripple Effect, shared her journey of overcoming challenges in the sector, noting that while exporting can seem complex, it presents a viable economic opportunity for young people. “People may fear to join the export business because it seems complicated. But I would like to inspire more people to join. In life, a comma is not a full stop, so we must keep moving forward.” She emphasized the importance of linking young entrepreneurs to reliable supply chains and structured business support systems to ensure long-term success.
Mastercard Foundation
Immaculate Adongo, founder of Fresh Picks enterprise, in Kampala, Uganda, at the Mastercard Foundation’s Young Africa Works Dialogue on February 19, 2025, to discuss the challenges young entrepreneurs in Uganda face in starting and scaling new ventures.
In his remarks, Adrian Bukenya, Country Director for Uganda at the Mastercard Foundation, reaffirmed the Foundation’s commitment to unlocking opportunities for young Ugandans through the Young Africa Works strategy. The initiative aims to enable 4.3 million young people—3 million of whom are young women—to access dignified and fulfilling work by 2030. He stressed that removing systemic barriers to youth employment and entrepreneurship requires deep collaboration between the government, private sector, and youth-led organizations.
“Uganda’s greatest asset is its young people. When they thrive, the country thrives. The task before us is to ensure that every young Ugandan—whether in the city or the village, whether starting a business or entering the workforce—has the chance to contribute to and benefit from the country’s economic growth. This is not just a vision but a responsibility we all share” - Adrian BukenyaCountry Director, Uganda.
Bukenya emphasized that achieving impact at scale demands ecosystem-wide collaboration and systemic transformation. He called for stronger public-private partnerships to ensure that skilling programs are linked to financing and market access, providing young entrepreneurs with end-to-end support—from training to enterprise growth.
The event underscored the need for stronger collaboration among government, private sector, and development organizations to expand access to resources, mentorship, skilling, and financing for young entrepreneurs. Participants emphasized scaling effective models and deepening partnerships to drive Uganda’s economic transformation without leaving any young entrepreneur behind.
About the Mastercard Foundation
The Mastercard Foundation is a registered Canadian charity and one of the largest foundations in the world. It works with visionary organizations to advance education and financial inclusion to enable young people in Africa and Indigenous youth in Canada to access dignified and fulfilling work. Established in 2006 through the generosity of Mastercard when it became a public company, the Foundation is an independent organization separate from the company, with offices in Toronto, Kigali, Accra, Nairobi, Kampala, Lagos, Dakar, and Addis Ababa. Its policies, operations, and program decisions are determined by the Foundation’s Board of Directors and leadership.
For more information, please contact:
Rachel Nandelenga, Head, Country Program Communications
rnandelenga at mastercardfdn.org
Uganda: Parliament Approves $190 Million for Umeme Concession Buyout
Kampala, Uganda — In a significant move that marks the end of an era, the Ugandan Parliament has approved a $190 million buyout of Umeme Limited's concession, effectively paving the way for the government to fully control the country's electricity distribution.
The decision, which comes after months of negotiations and deliberations, signals a major shift in Uganda's energy sector and has sparked widespread debate among stakeholders.
Umeme Limited, a publicly listed energy distribution company, has been operating in Uganda since 2005 under a 20-year concession agreement with the government.
The company took over the management of Uganda's electricity distribution network from the state-owned Uganda Electricity Distribution Company Limited (UEDCL).
Over the years, Umeme has played a pivotal role in improving the efficiency and reliability of electricity distribution across the country.
The company has invested heavily in infrastructure upgrades, reduced technical losses, and expanded access to electricity, particularly in rural areas.
However, the concession agreement has been a subject of controversy. Critics have argued that the terms of the deal were unfavorable to the government, with Umeme earning significant profits while the government bore the brunt of losses.
As the concession neared its end on March 31st, calls for the government to take over the distribution network grew louder, culminating in the recent parliamentary approval of the buyout.
Regain energy control
The $190 million buyout, approved by Parliament, will see the government acquire Umeme's assets and take over the management of the electricity distribution network.
The funds will be used to compensate Umeme for its investments and to facilitate a smooth transition of operations back to the government. The decision to buy out Umeme's concession is part of the government's broader strategy to regain control of key utilities and infrastructure.
Proponents of the move argue that it will allow the government to better align electricity distribution with national development goals, particularly in rural electrification and industrial growth.
Additionally, it is expected to reduce the cost of electricity for consumers, as the government will no longer be obligated to pay concession fees to a private entity.
Supporters of the government decision, including some Members of Parliament and energy sector experts, have hailed it as a step in the right direction.
Backers vs critics
They argue that the government's takeover will lead to more equitable distribution of electricity and greater accountability in the management of the sector.
"This is a historic moment for Uganda's energy sector," said Sarah Opendi, a member of the Parliamentary Committee on Natural Resources.
"By taking over Umeme's concession, the government can now focus on expanding access to electricity, especially in underserved areas, and ensure that the benefits of our energy resources are shared by all Ugandans."
However, critics have raised concerns about the government's capacity to manage the distribution network efficiently. Some fear that the transition could lead to a decline in service quality, citing past experiences with state-run utilities. Others have questioned the financial implications of the buyout, arguing that the $190 million could have been better spent on other pressing national priorities.
"While the intention to take over Umeme's concession is commendable, we must be cautious," said Dr. Fred Muhumuza, an economist and energy policy analyst. "The government needs to demonstrate that it has the technical and managerial capacity to run the distribution network effectively. Otherwise, we risk reversing the gains made over the past two decades."
With the parliamentary approval secured, the focus now shifts to the implementation of the buyout. The government has assured stakeholders that the transition will be seamless, with minimal disruption to electricity supply.
Plans are already underway to strengthen the capacity of the Uganda Electricity Distribution Company Limited (UEDCL), which will take over the distribution network. In the long term, the government aims to leverage the buyout to accelerate its rural electrification program and support industrial growth. By taking control of the distribution network, the government hopes to reduce the cost of electricity, attract more investors, and create jobs in the energy sector.
Discrepancies in buyout
In recent weeks, Ugandan government officials have issued conflicting statements regarding the buyout amount for electricity distributor Umeme Limited, creating confusion among stakeholders. Energy Minister Ruth Nankabirwa announced that Parliament approved a $190 million loan from Stanbic Bank to compensate Umeme for unrecovered investments after its concession expires at the end of March 2025.
However, State Minister for Energy Sidronius Okaasai indicated that the estimated buyout figure, as of February 24, 2025, stands at $201 million, according to a report submitted to the Auditor General's office.
Adding to the discrepancies, the Electricity Regulatory Authority (ERA) initially estimated the buyout amount at $225.75 million in September 2023, but later revised it to $127.66 million in March 2025, based on additional investments made by Umeme and recoveries from end-user tariffs.
These varying figures have raised concerns among legislators, prompting calls for a thorough audit to determine the exact buyout amount.
Read the original article on Independent (Kampala).
Nigeria Eyes EU's €43bn Horticulture, Grapes Import Markets
Stakeholders have urged the Nigerian government to strengthen local production and supply chains for horticulture and grapes to tap into the European Union's €43 billion horticulture and grape import markets.
The call was made during a webinar organised by the EU-Nigeria Agribusiness Platform, titled "Market Insights: Opportunities in the EU Edible Vegetables, Floriculture, and Grapes Import Markets."
The event brought together horticulture businesses, scientists, academia, government officials, farmers' associations and service providers from Nigeria and EU countries.
Participants emphasised the need for Nigeria to capitalise on the lucrative markets.
Bonaventure Mwaghania, CEO of Cenacle Kenya Limited, highlighted Nigeria's strategic advantages, including proximity to EU countries and competitive sea freight rates.
He noted that Kenya's horticulture sector employs over two million people and generates nearly $1 billion in exports.
Frank Isioma Okafor, Senior Programme Manager for Competitiveness and Financial Instruments at the EU delegation to Nigeria and ECOWAS, reaffirmed the EU's commitment to strengthening trade and investment ties with Nigeria.
Aliyu Sheriff, Special Assistant to the President on Export Expansion, emphasised the importance of aligning with international standards and attracting investments in key agricultural sectors.
He described the EU's horticulture and grapes market as a significant opportunity for Nigeria.
Sheriff assured stakeholders of the federal government's commitment to export-led economic growth under the Renewed Hope Agenda.
Read the original article on Daily Trust.
Nigeria: NNPC's Forward Oil Sales Hit $21.5bn in Six Years, Hobble Domestic Crude Obligations
Forward crude sales by the Nigerian National Petroleum Company Limited (NNPC), have hit $21.565 billion since 2019, a document obtained by THISDAY showed yesterday, further buttressing why it's almost impossible for the national oil company to meet its Domestic Crude Supply Obligation (DCSO) to local refiners.
The document obtained from impeccable sources indicated that since the controversial 'Project Gazelle' in 2023, the NNPC has gone into at least two other agreements, tagged 'Project Leopard' and 'Project Gazelle II', which will cost the company $2 billion and $7.5 billion respectively.
It's unclear the quantity of crude oil that has been mortgaged, but the information available to THISDAY showed that 11 deals have been entered into by the NNPC since 2019, excluding the Dangote refinery's arrangement, which it eventually opted out of.
However, aside from the vendor programmes of $750 million and $1.5 billion which expired in May 2023 and November 2024 respectively, the final maturity dates for the nine other projects continue to run.
Other extant facilities which have yet to reach maturity include: The $3 billion deal on NLNG Train 7, which matures in May 2029; the $1 billion 'Project Eagle' agreement which expires in June 2025 and the $300 million 'Project Brogue' which has a final maturity of January 2027.
Besides, 'Project Bison' which was entered into in 2021 worth $1.040 billion, expires in December 2026; 'Project Yield' which was sealed in 2022, valued at $1 billion, expires in June 2029; while a project codenamed 'Offtake Financing' costing $75 million expires in October 2029.
Furthermore, 'Project Gazelle', an oil swap deal valued at $3.4 billion, is expected to expire in 2032. The deal which led to serious public conversations on the transparency of such agreements was struck in 2023.
But since then, THISDAY gathered that the NNPC had entered into two more deals, namely: Project Leopard and Project Gazelle II, meant to be repaid fully in January 2029 and April 2034 respectively. While Project Leopard is valued at $2 billion, Project Gazelle II, will take the lion's share at $7.5 billion.
Despite the closeness of Afreximbank to the actors, it was understood that the continental bank declined to participate in the new deals based on their own rule books and their current debt-for-oil exposure to the NNPC.
Afreximbank was said to have mentioned that they, at $4.5 billion, had reached their limit on granting PXF (Pre-export financing) resource-backed loans to NNPC.
PXF is a type of financing where a commodity producer gets upfront cash from a customer in exchange for a future delivery of the commodity, potentially at a discount. The producer uses the cash to fund their operations, and the buyer gains access to a future supply of the commodity.
"One of the pre-conditions for the 2023 Gazelle deal is that NNPC was not going to raise new USD financing until the principal with interest is fully drawn down. Afrexim did not participate in the $2 billion Project Leopard deal raise," the document stated.
It added that for the $7.5 billion deal, Saudi Aramco or Abu Dhabi's ADNOC will likely be involved, with the 'strike price', much lower than the market price of crude oil.
"Afrexim is unlikely to be an underwriter or a syndicate in the Gazelle II deal (that is most likely going to feature ADNOC or Aramco).
"The barrels are structured at a strike price that is below the open market rate, and is not only in complete variance of what it will cost to repay in principal plus interest, but the difference between the strike price and open market rate is actually credited to an offshore debt service reserve account that is neither subject to oversight or appropriated by the National Assembly into the CRF (Consolidated Revenue Fund).
"Resource-based PXF Loans are priced at SOFR (Secured Overnight Financing Rate) of 6 per cent plus CRP (Country Risk Premium) of 3-5 per cent, with an application of a demurrage charge priced at LIBOR (the global reference rate for unsecured short term borrowing) on a pro-rata basis," the document added.
Recall that on August 16, 2023, the NNPC secured over $3.3 billion emergency crude repayment loan -- a transaction it said was aimed at supporting the naira and stabilising the foreign exchange (FX) market.
Arranged by Afreximbank, the crude-for-cash loan was also targeted at supporting the federal government's monetary and fiscal reforms.
Project Gazelle Funding Ltd (PGFL), a Special Purpose Vehicle (SPV), incorporated in Bahamas for the PxF, was the borrower while the NNPC was the "sponsor" and will pay with oil to the SPV to liquidate the loan.
Meanwhile, local crude oil refiners have always complained of getting less than what they are entitled to, despite several interventions by the Nigerian Upstream Petroleum Commission (NUPRC) to ensure compliance. However, the saying is trite that 'You can give what you don't have ".
Local refineries, including the Dangote refinery, continue to face challenges due to inadequate crude oil supply, forcing them to import crude and hindering their ability to reach full refining capacity.
The Dangote refinery has reported difficulties in securing sufficient crude oil feedstock from domestic producers, including International Oil Companies (IOCs), leading to reliance on imported crude.
This is despite the NUPRC having acknowledged the issue and working to ensure compliance with the Domestic Crude Supply Obligation (DCSO). In fact the commission recently warned that it will deny export permits for crude oil cargoes intended for domestic refining if oil companies fail to meet their local crude supply commitments.
Read the original article on This Day.
Nigeria: Amid Recapitalisation Drive, Insurance Industry Set for N600bn Capital Injection - Report
The 2025 Nigerian Insurance Industry Report released by Agusto & Co. has predicted a transformative phase for Nigeria's insurance sector, with insurers expected to inject approximately N600 billion in fresh capital to meet evolving regulatory demands.
According to the report, the projected capital raise is driven by the anticipated passage of the Nigeria Insurance Reform Bill before the end of 2025, a move that is set to fast-track the industry's transition to a risk-based capital framework and enhance underwriting capacity.
The report stated that the bill, which seeks to overhaul the industry's regulatory framework, will fast-track the transition to a risk-based capital regime, significantly impacting the capitalisation of insurance firms.
The planned increase in the minimum capital requirements across various business segments, the report noted, will push insurers to shore up their financial base, enhancing underwriting capacity and risk retention.
It stated: "The Nigeria Insurance Reform Bill (the Bill), which seeks to overhaul the Industry's regulatory framework, is expected to be passed into law before 31 December 2025. We believe the Bill would compel the National Insurance Commission to fast-track the transition to a risk-based capital regime (initiated over a decade ago).
"This legislation would significantly impact the Industry's capitalisation based on the planned increase in the minimum capital requirement for the various business segments in the Bill. We anticipate circa N600 billion capital injection by insurers to comply with the uptick in the minimum capital requirement and increase the underwriting capacity.
"While Insurers would be allowed to recapitalise over a period, we anticipate an uptick in activities to shore up the capital base in FY 2025. In our view, the recapitalisation exercise would shape risk underwriting activities in the near term as insurers seek to generate adequate returns for shareholders. Thus, we expect the adoption of innovation on the back of technology to drive insurance penetration and improved risk retention on the back of the enlarged capital base."
It added, "However, while a larger capital base can support long-term profitability, the industry may experience short-term challenges. The report notes that foreign currency revaluation gains, which have boosted earnings in recent years, are expected to decline due to a more stable exchange rate. This could lead to a lower return on equity (ROE), projected to drop to 22.8 per cent in 2025.
"We expect the enlarged portfolio with the potential to support profitability to stimulate a more efficient investment portfolio management. However, the expected stability of the exchange rate would moderate the foreign currency revaluation gains that have bloated the investment income and accounted for circa 50 per cent in FY 2023 and FY 2024. The anticipated decline in asset yield as the rebased consumer price index (CPI) depicts disinflation would also moderate the investment income. Thus, circa 957 basis points decline in the return on average investment is anticipated as the enlarged portfolio accentuates the impact of the moderated investment income.
"In FY 2025, we anticipate a decline in the Industry's profitability, largely due to the lower foreign currency revaluation gains. Thus, a reduction in the post-tax return on average equity (ROE) to 22.8 per cent is expected. We believe that sustainable profit (excluding the volatile foreign currency revaluation gains) will maintain the upward trajectory, supported by stricter enforcement of compulsory insurance policies, a more efficient product distribution and an enlarged capital base to support the insurance income."
Read the original article on This Day.
Nigeria Advocates for Formal Designation, Elevation of Seafarers, Others - ILO
The Federal Government of Nigeria through the Ministry of Marine and Blue Economy, and the Nigerian Maritime Administration and Safety Agency (NIMASA), has continued its advocacy for the formal designation of seafarers as key workers.
This, the government explained, would ensure legal protection, and a harmonised framework between the International Labour Organisation (ILO), the International Maritime Organisation (IMO), and the World Health Organisation (WHO) that supports safe working conditions for Seafarers and other Maritime professionals.
Speaking at the 353rd session of the ILO governing body taking place between the 10th and 20th of March 2025, the Director General, NIMASA, Dr. Dayo Mobereola who represented the Minister of Marine and Blue Economy, Adegboyega Oyetola, said the role of seafarers and workers in the maritime industry must be recognised, held in high esteem, and treated fairly, considering their critical contributions to global trade and non-stop supply chain maintenance.
"We recognize that the world's economy depends heavily on seafarers and maritime professionals who operate vessels, facilitate port operations, and ensure the seamless movement of goods across international waters. However, these key workers often face labour rights challenges, including unfair employment conditions, restricted mobility, and lack of access to adequate welfare provisions issues that were exacerbated during the COVID-19 pandemic.
"It is in this regard that Nigeria has been at the forefront, both within ILO and the International Maritime Organization (IMO), advocating for the formal designation of seafarers as key workers. This recognition is essential to ensuring: Legal protection for seafarers, port workers, pilots, and marine surveyors under both ILO and IMO conventions; Guaranteed priority access to medical care, vaccines, and mobility rights during public health crises and emergencies; Fair and equitable treatment in labour contracts, ensuring compliance with the Maritime Labour Convention (MLC 2006)," Oyetola said.
He emphasised the need for a harmonized framework between the ILO, IMO, and WHO that supports safe working conditions, prevents labour exploitation, and reinforces international labour standards across the maritime sector, noting that, as the largest supplier of seafarers and port workers in Africa, Nigeria plays a critical role in sustaining global trade and ensuring supply chain resilience, hence its concern and insistence on giving maritime workers a fair playing ground.
On the country's efforts to boost the growth of its shipping industry and the welfare of maritime workers to global best standards, Oyetola said, "Nigeria has taken bold steps domestically to improve the welfare of its maritime workforce. Through our National Seafarers Development Programme (NSDP), we have expanded training opportunities and improved employment pathways for Nigerian seafarers, enhancing their competitiveness in the global shipping industry. We have also strengthened port security, compliance with international safety standards, and labour rights enforcement, ensuring that our maritime workers operate under dignified, fair, and secure conditions.
Read the original article on This Day.
Nigeria: Kebbi Poised to Become Lithium Processing Hub As El-Tahdam Secures $500m Investment
El-Tahdam has now attracted significant global attention and foreign investment, culminating in the recent partnership with TSG Mining Group.
Nigeria's mining sector is on the cusp of a transformative era, spearheaded by the ambitious vision and strategic execution of El-Tahdam Exploration Limited.
This burgeoning Nigerian mining company, established to unlock the nation's vast reserves of crucial Electric Vehicle (EV) minerals and rare earth minerals such as Lithium, manganese, iron ore, copper, rubidium, gallium and graphite has rapidly emerged as a key player.
Bolstered by strategic initiatives and a robust investment in exploration and mining rights, El-Tahdam has now attracted significant global attention and foreign investment, culminating in the recent partnership with TSG Mining Group.
Over the past three years, El-Tahdam has laid a robust foundation, strategically investing approximately $5 million in exploring and experimenting the specific type of lithium ore from Libata, Kebbi.
The team of EL-Tahdam has spent more than one year in China to learn the processing technologies of Lithium. After getting the recovery rate of 92.per cent, which is among the highest in the world, EL-Tahdam has ordered a full set of processing equipment, specially designed for their mining site in Libata, Kebbi.
Establishing a Comprehensive Lithium Processing Value Chain
Building on this strong foundation, El-Tahdam has ambitious plans to establish a comprehensive lithium processing value chain within Nigeria.
The company's strategic roadmap includes the construction of three state-of-the-art lithium processing plants in Kebbi, Kwara, and Kaduna states.
Each plant is designed with a daily processing capacity of 3,000 metric tonnes of lithium ore (with an average grade of 1.5% to 1.6%) to produce a 6% lithium concentrate.
This translates to a combined daily input of 9,000 metric tonnes of lower-grade ore, yielding 2,250 metric tonnes of 6% lithium concentrate.
Further solidifying its integrated approach, El-Tahdam plans to establish a Lithium
Carbonate plant in Lagos. This pioneering facility will utilize the 2,250 metric tonnes of 6% concentrate as input, targeting a yearly production of 80,000 metric tonnes of high purity 99.9% lithium carbonate, accounts for almost 5% of the global market share.
This integrated processing model, the first of its kind in Nigeria, will considerably enhance the value of Nigerian lithium ore before export, leading to increased royalty revenues for the Federal Government.
By processing lower-grade ores domestically and refining higher grades to lithium metal, Nigeria will move beyond simply exporting raw materials, a practice that has historically deprived the nation of significant economic benefits.
Recent data indicates that Africa continues to lose billions annually due to the export of unprocessed minerals, highlighting the urgent need for value addition within the continent.
This initiative by El-Tahdam directly addresses this issue. Ultimately, this strategic move is expected to attract global battery manufacturing giants like CATL and Sunwoda, as well as electric vehicle manufacturers such as Tesla and BYD attracting the broader ecosystem of battery and electronic device manufacturers to Nigeria, drawn by the availability of processed lithium.
Furthermore, it will provide a substantial boost to local EV manufacturers like Innoson Motors and encourage the growth of Nigeria's broader domestic electric vehicle industry, aligning with the nation's industrialization objectives.
Towards one of Africa's Largest Lithium Processing Facility: Backed by $500 Million Investment
The remarkable strides made by El-Tahdam have garnered substantial international attention, culminating in the recent $500 million investment by TSG Mining Group.
This major investment underscores the global confidence in El-Tahdam's vision and Nigeria's potential as a key player in the lithium market. As part of this landmark deal, TSG Mining Group will invest $250 million in establishing the modern processing plant in Kebbi State, slated to be operational by the end of 2025, with all necessary equipment having been procured.
Prior to the investment, El-Tahdam has secured a 25-year mining license (renewable up to 50 years) to support the partnership. TSG Mining Group's key investors include Zhejiang State-Owned Capital and Sunwoda (stock code: 300207, with a market value of 6 billion USD).
Leveraging Zhejiang State-Owned Capital's financial strength and Sunwoda's technological expertise in the new energy sector, TSG has built a comprehensive industrial chain spanning investment in mining rights, extraction and processing, and trade and sales.
The synergy between these two major shareholders provides a solid foundation for the group's resource integration in the African market.
Aligning with National Economic Development Goals
El-Taham's strategic initiatives aligns with the national strategy to capitalize on the growing demand for lithium, a key component in rechargeable batteries.
This move is expected to create thousands of jobs and stimulate local economies. Furthermore, the Nigerian government has been actively supporting such ventures to reduce dependence on oil and harness the country's vast mineral resources.
The commissioning of lithium and rare earth processing plants across Nigeria signifies a significant step toward this goal, with El-Tahdam leading the charge.
These developments not only enhance Nigeria's position in the global mining sector but also contribute to sustainable economic growth and technological advancement within the country.
Commitment to Community Empowerment and Sustainable Development
Beyond the economic implications, El-Tahdam's operations are deeply rooted in community development. The planned processing plant in Kebbi State alone is projected to create approximately 1,000 direct jobs and up to 3,000 indirect jobs, offering significant economic empowerment to local communities and contributing to a reduction in unemployment.
El-Tahdam's commitment extends beyond lithium, with ongoing efforts to attract further investments into Nigeria for the exploration and processing of other vital minerals such as copper, iron ore, manganese, and rare earth elements, potentially unlocking an additional $1 billion in foreign direct investment for the nation's mining sector.
Call for Continued Stakeholder Support
The transformative initiatives undertaken by El-Tahdam Exploration Limited hold immense promise for Nigeria and the broader African continent. By focusing on value addition, attracting significant foreign investment, and prioritizing community development, El-Tahdam is paving the way for increased royalties, enhanced foreign exchange earnings, and greater local content participation in the mining sector.
To fully realise this potential and solidify Nigeria's position on the global mining stage, continued support and endorsement from all stakeholders, including the Federal Government, regulatory bodies, and relevant state governments, will be crucial.
Their leadership and backing will be instrumental in achieving the shared goal of ensuring that Nigeria fully capitalizes on its abundant natural resources for sustainable economic growth and development.
As Nigeria continues to attract transformative investments and forge a path toward economic diversification, El-Tahdam Exploration Limited stands ready to lead the way, ensuring that the nation's vast mineral wealth translates into tangible economic empowerment and a brighter future for all.
Read the original article on Premium Times.
Nigeria: Ill-Treatment of Nigerians Unacceptable - NCAA to Delta Air Lines
Nigerian Civil Aviation Authority, NCAA, weekend, warned a United States airline, Delta Air Lines, that it would not tolerate ill-treatment of Nigerian passengers.
Director of Public Affairs & Consumer Protection at NCAA, Mr Michael Achimugu, accused Delta of delaying its flight from Murtala Muhammed International Airport in Lagos and subjecting Nigerian passengers to poor treatment.
Achimugu, who stated this on X, said although the carrier scheduled the passengers for another flight, with an almost seven hours waiting time, it refused them hotel accommodation.
His words: "Your (Delta Air Lines) delayed departure from Lagos on Saturday afternoon and the lengthy tarmac delay on arrival in Atlanta meant that one of your Nigerian passengers who, incidentally, is a staff of the NCAA, missed their connecting flight due to no fault of theirs.
"You then schedule them for another flight, with an almost 7-hr waiting time, and refuse them hotel accommodation or, at least, lounge access. This passenger was left sitting in an uncomfortable chair all night, and their rescheduled flight still suffered a delay.
"Your station manager claims that they cannot lift a muscle because they are not responsible for Atlanta. This ill-treatment of Nigerian passengers, similar to the Gloria Omisore incident, is not acceptable and the Nigerian Civil Aviation Authority will react to this, per Part 19 of the NCAA Regulations 2023.
"Nigerian passengers, whether they know their rights or not, must be accorded the level of care and dignity they are entitled to."
Read the original article on Vanguard.
Nigeria: France's Wine Industry Is in Crisis. Can This Nigerian Consultant Save It?
France's wine industry is in trouble, with fewer people drinking wine and major export markets facing economic and political pressure. One wine consultant, Chinedu Rita Rosa, of Bordeaux-based Vines of Rosa, claims she has the solutions for the French wine industry.
French alcohol consumption has dropped for three decades in a row. Its major export markets are contracting - China's interest in the French wines hit its high five years ago and US President Donald Trump is threatening to continue his brutal tariffs regime on French-wine imports which he started in his first term.
Already last year, wine industry monitor portal Decanter observed that French wine exports are slumping and that wine region Bordeaux is struggling.
Enter Rosa, a wine consultant from Lagos in Nigeria, who runs a high-end wine consultancy in Bordeaux.
"Will you stop focusing on China? Will you stop focusing on the US?" she asks. "All of France's marketing is concentrated on these places."
Rosa, 49, started working in the wine industry in her home city in 2008, buying a wine shop.
She moved to Bordeaux in 2015 with her French husband, creating the Bordeaux Business Network and, more importantly, 'Vines by Rosa', a wine marketing, export and events business, of which she is the CEO.
Today, she divides her time between France and Africa, spreading her knowledge of French wines at high-end events, hosting gala dinners that are attended by France's top diplomats and members of local groups of entrepreneurs.
Trump's tariffs
Unlike many French wine and champagne producers, Rosa is not too worried about Trump's threats of slamming 200 percent tariffs on wine and champagne products.
The first Trump administration imposed a 25 percent tariff on French wine on 18 October 2019, as part of a broader trade dispute related to subsidies for the Airbus group, a major rival to US aircraft manufacturer Boeing.
At the time, the tariffs significantly impacted French wine exports to the US, causing a substantial decline in imports, which dropped from $130 million in October 2019 to $57.1 million in November 2019.
At the end of that year, Trump threatened to impose another 100 percent, this time after the Office of the US Trade Representative published results of an investigation that concluded that France was discriminating against US tech companies.
These tariffs were never imposed. Incoming president Joe Biden cancelled Trump's 25 percent, after which French exports grew again.
But still, the 200 percent tariffs Trump is now toying with could prove catastrophic for the French wine industry.
China's slump
And then there is China.
Its potential 1.4 billion strong market has long been a magnet for French wine makers, who went there to create joint-ventures or exported their products.
Over the decades, France became the leading supplier of wine to China. But since 2018, China's wine imports have been declining as a result of the sluggish economy, aggravated by the COVID-19 pandemic.
Is Chinese passion for French wine a threat to its future?
Meanwhile, in the 2022 book Le Vin, Le Rouge, La Chine ("Wine, Red, China") by wine watcher Laurence Lemaire still counted 165 vineyards that were bought up by Chinese investors, 153 of which in the Bordeaux region alone, which shipped much of their produce back to China to high-end users happy to enjoy an imported glass of Bordeaux.
But this number is declining fast with many Chinese investors currently withdrawing from the Bordeaux region due to lack of profitability.
In December last year, the wine magazine Wein Plus reported that Chinese investors are fleeing Bordeaux, and that 50 chateaux left by them are now for sale.
Ignored
But Rosa thinks French wine exporters have to think out of the box.
It's time to find alternatives, she says, in countries such as Brazil, India and Africa.
"These are places that were ignored by the Bordeaux wines in the past. It can't be that way anymore," she says. "You have to embrace every market possible, You cannot rely on the old."
But there's work to be done. In the past, Bordeaux wines depended solely on their name, assuming that the brand "Bordeaux" would guarantee good sales.
But, according to Rosa, attitudes have changed, and the Bordelais are more engaged into marketing, and selling the brand.
But that may be not enough.
"I don't believe you can sell the product to people, just because you think you are the best," she says. She urges wine sellers who want to enter the African market to hop in a plane and travel there in person.
"You meet the people. You need to learn the taste of the people. Then you fine-tune yourself to their taste. And when you're making wine, whether you like it or not, it will affect your decisions about how you make the wine that you want to sell there."
In her native Nigeria, she already sees that French wine is growing in popularity, even in the face of stiff competition from South African wines, and, more importantly, beer.
"Beer will always be number one in Nigeria," says Rosa. "We are in a hot climate, people want something refreshing.
"But wine is getting there, we have about 20 percent of our wine being sold in Nigeria, and every year there's an increase," she says.
Read or Listen to this story on the RFI website.
Africa: Wealthy Africans Often Don't Pay Tax - the Answer Lies in Smarter Collection - Expert
Faced with some of the worse debt levels in over a decade, African countries are struggling to find ways to balance their books. Increasing revenue sources from their citizens is an obvious place to look.
A good starting point for African countries would be to focus on the tax contribution of wealthy citizens. This is because the most under performing taxes across the African continent are those bearing on the income of wealthy individuals, namely personal income and property taxes.
The reasons for this are two fold: People who are better off in some countries often remain invisible to tax authorities. This is even though they have higher tax liabilities. Compare this with citizens who have formal labour contracts. Think of public school teachers or supermarket clerks. Their taxes are withheld by their employers. This makes tax evasion impossible. Most taxes on personal income in Africa are paid by citizens in these forms of employment.
In contrast, prior to 2015, only one of the top 71 Ugandan government officials and 17 of the country 60 most successful lawyers paid any personal income tax. Similarly, only 16% of all landlords identified in Freetown, the capital of Sierra Leone, during a registration drive in 2021 had registered for taxes.
This shows that wealthy Africans face lower effective tax rates than average citizens, replicating a trend already demonstrated for the relative tax burden of small and large companies.
This situation is disheartening. But there are immediate steps that African revenue authorities can take to address this unfairness.
Research led by the International Centre for Tax and Development, to which I have contributed, shows that revenue increases from wealthy citizens can be obtained by focusing on better enforcement of existing taxes rather than by introducing new ones or hiking tax rates.
An effective approach to increase wealthy citizens tax contribution relies on three strategies:
their identification
a simplification of tax compliance processes, and
the effective enforcement of existing taxes.
While these suggestions might seem banal, they can lead to some quick revenue gains: as much as US$5.5 million in Uganda or US$900,000 in a single Nigerian state in one year, or tripling property tax revenue collection in Sierra Leone.
But these improvements require changes in the way African revenue authorities operate.
Tax collection services need change of focus
Revenue services in all African countries need to be better resourced. A typical tax officer on the continent might be responsible for as many as 10 times the number of taxpayers than a tax officer in the Global North.
First, their efforts need to be redirected away from the registration of small informal businesses. These efforts have been shown to contribute little revenue in countries as diverse as South Africa and Sierra Leone.
Instead their efforts should be directed a developing a definition of high-net-worth individual appropriate for their domestic context. In Uganda this includes criteria such as having performed land transactions of approximately US$300,000 over five years, or earning approximately US$150,000 in rental income in any given year.
Due to its federal structure, criteria in Nigeria vary across states, for example including an yearly income above Naira 2 million in Borno and Kano state, with the threshold raising to Naira 15 million in Imo state, Naira 20 million in Niger state and Naira 25 million in Lagos state.
However, in both countries criteria also cover less directly measurable assets, such as owning high-value commercial forestry or animal ranches in Uganda, or having received contracts from the government in Nigeria's Kaduna state.
Property taxes are especially important. Research in Ethiopia and Rwanda shows that investing in real estate represents one of the main strategies to store wealth when inflation and foreign exchange fluctuation make bank deposits unattractive.
These properties then contribute to increasing the income of wealthy citizens who rent them out or resell them for profit. While we lack granular data on capital gains or rental income taxes, there are good reasons to think they are also significantly underperforming. Capital gains refers to the additional value which an investor accrues when disposing of assets such as houses or companies share previously bought at a lower price.
Second, this should be followed by the creation of an office to follow the affairs of high net-worth individuals. This already happens for large taxpayers. Most countries, including the majority of anglophone African countries, have a dedicated office following the tax affairs of large companies active in their territory.
Having dedicated resources for high net-worth individuals would be useful because using the international definition (a net worth of US$1 million) might be hard to operationalise. The reason for this is that most revenue authorities lack detailed data on assets owned by their taxpayers. Even when they know some information, such as the number of houses, estimates of their market value might be lacking.
African countries are better off relying on data already in their possession as they seek to collect further useful information on their taxpayers. This allows the establishment of a set of multiple core and non-core criteria.
Third, high-net worth individual units require substantial backing. In the first instance from revenue authorities' senior management, who in turn needs to have the support of the government in pursuing often well-connected individuals. This backing is needed for actions as apparently easy as obtaining data from other government agencies, without which identification efforts could be quickly thwarted, and becomes crucial when its time to move to enforcement.
However, a cooperative approach should be the initial choice. One approach is voluntary disclosure programmes with associated tax amnesties. These are useful to obtain information about the assets of wealthy citizens. Additionally, they contribute substantial revenue - as much as US$296 million in South Africa and US$192 million in Nigeria.
Fourth, requiring candidates running for public office to obtain tax clearance certificates can also be an important source of information and revenue. This has been shown to work in both Uganda and Nigeria.
This set of actions represents an optimal starting point for African countries looking to improve the tax contribution of wealthy citizens.
Efforts to produce suitable guidance for wealth taxation for low-income countries by the United Nations, or to introduce a global wealth tax on billionaire by the Brazilian G20, are important to highlight the role of fiscal redistribution in addressing inequality. But many African countries are better off by first being bold about the basics of their tax systems, which can already make them more effective and progressive.
Giovanni Occhiali, Research Fellow at the Institute of Development Studies, Institute of Development Studies
This article is republished from The Conversation Africa under a Creative Commons license. Read the original article.
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