Major International Business Headlines Brief ::: 29 May 2025

[Bulls n Bears]

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Major International Business Headlines Brief :::  29 May 2025 

 


                                                                                  

 


 <mailto:info at bulls.co.zw> 

 


 

 


 

ü  South Africa: Union Members March in Durban, Demanding Permanent Jobs

ü  Nigeria: NERC to Regulate Third Party Revenue Collectors for DisCos

ü  Nigeria: Expect Ground Rent Hike, Wike Tells Abuja Property Owners

ü  Nigeria: Tinubu's Economic Reforms Boosting Investors' Confidence - Minister

ü  Nigeria: AfDB - Nigeria, 90 Others Elect Adesina's Successor Today

ü  Nigeria: Naira Shows Stability Amidst Fresh $190m Injection, Rising Investors' Confidence

ü  Nigeria: Tinubu's Mid-Term Assessment - Unfulfilled Promises or Dawn of Renewed Hope?

ü  Nigeria: AfDB Projects 6% Naira Depreciation in 2025 Amid Global Uncertainty

ü  Lesotho: Big U.S.-Funded Chicken Project Shuts Down in Lesotho

ü  Nigeria's Debt to Hit N162trn As President Seeks N17trn Loans

ü  Nigerian Govt Explains Fresh Borrowing Plan

ü  South Africa: No Plans to Reform South Africa's Mineral Royalty Regime - President Ramaphosa

ü  US trade court blocks Trump's sweeping tariffs. What happens now?

ü  Hailey Bieber's makeup brand sold to e.l.f. in $1bn deal

ü  Nvidia revenues surge despite tariff uncertainty

ü  Somalia: Minister Beene-Beene Launches Second Edition of Somalia's Economic Forecast Report

ü  Nigerian Govt Targets 24-Hour Internet, Power Supply to Special Institutions

 


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South Africa: Union Members March in Durban, Demanding Permanent Jobs

Members of the National Union of Public Service and Allied Workers (NUPSAW) from different parts of KwaZulu-Natal marched to the office of the Premier in Durban on Wednesday, demanding permanent employment.

 

The workers included security guards, food handlers, cleaners and community health workers, working on contract to various provincial departments.

 

They also demanded uniforms, guardrooms for security officers at schools, and overtime payments, among other things.

 

Phumlile Nyawo, who prepares food at Mandlethu High School in Jozini, in the north of KwaZulu-Natal, said she had to buy her own uniform. She said she had been working as a contract worker since 2022 and earned R1,700 a month.

 

Community health worker Zinhle Mpembe, from Mnambithi in the west of the province, said she had been working in community care for 15 years. She said he earned R2,000 a month.

 

"I want to be permanently employed by the department of health because I have seen that the government needs my services within the community," said Mpembe.

 

Tecla Nzimande, provincial secretary of the SA Federation of Trade Unions (SAFTU) to which NUPSAW is affiliated, said all workers had the right to permanent employment and good working conditions.

 

Sabelo Gwala from the office of the Premier accepted the memorandum and promised that the Premier would receive it before the end of the day.

 

"The demands that they have brought here are not new demands," said Gwala. "Some of them we have been trying to solve at cabinet level."

 

Read the original article on GroundUp.

 

 

 

 

Nigeria: NERC to Regulate Third Party Revenue Collectors for DisCos

The Nigerian Electricity Regulatory Commission (NERC) has issued a new regulatory framework in the selection of third party revenue collectors for electricity Distribution Companies (DisCos)

 

NERC in a document titled, 'Guidelines on Registration and Engagement of third-party collection service providers' said this is to provide clear guidance to DisCos on modalities for the registration of third-party collection agents including applicable service charges; promote transparency and accountability in revenue collections from electricity sales by third-party collection service partners engaged by DisCos, standardise the use and engagement of third-party collection service partners and enhance revenue collection in the NESI.

 

The guideline, which was signed by the Chairman of NERC, Sanusi Garba, said it would be effective from the 27th day of May 2025.

 

It said all third parties shall be registered with the commission prior to being eligible to render collection services in NESI, except those whose operations are limited to a state with regulatory oversight.

 

While stating a payment of a non-refundable registration fee of N100,000 will be made to the commission, it said all collection service contracts/agreements with a DisCo under the regulatory purview of the commission shall require its approval prior to commencement of operation.

 

"In these Guidelines, cashless collection channels available to DisCos are categorised into Unstructured Supplementary Service Data (USSD), banking services, mobile payment services, agency and rural services.

 

It said no CSP shall be engaged by a DisCo without the applicable CBN licence/permit.

 

All third-party collection service agreements/contracts entered into with any DisCo under the regulatory oversight of the Commission are subject to the Commission's approval and registration prior to the commencement of the transaction. All DisCos shall adopt more efficient and cost-effective channels for collection.

 

"All collection service contracts/agreements shall detail clear performance indicators for the collection provider and shall be regularly evaluated by the DisCo.

 

Read the original article on Daily Trust.

 

 

 

 

Nigeria: Expect Ground Rent Hike, Wike Tells Abuja Property Owners

The FCT Minister, Nyesom Wike, has said his administration is working towards increasing the cost of ground rent in Abuja, the nation's capital.

 

Wike told journalists, while inspecting ongoing projects, that the refusal to pay ground rent and other taxes by property owners has been his greatest challenge in office.

 

Our correspondent reports that Wike, on assumption of office, had prioritised revenue generation, mainly from landed properties, to fund infrastructural development in the nation's capital.

 

His aggressive approach on this, however, attracted more criticism from not only property owners but also political opponents.

 

The FCT administration, under his watch, had in March announced the revocation of over 4700 properties in Abuja for not paying ground rent, amounting to over N6 billion.

 

On Monday, the administration began sealing up the affected properties, which included the National Secretariat of the Peoples Democratic Party, the National Agency for Trafficking in Persons, the Federal Inland Revenue Service, a branch of Access Bank and a TotalEnergies Filling Station, among others.

 

The leadership of the PDP and the FIRS had challenged the actions of the Wike-led FCTA, describing it as unprofessional and an affront to the country's democracy.

 

Abuja Metro reports that President Bola Ahmed Tinubu, however, intervened by approving a 14-day grace period within which the amounts owed should be paid, as well as penalties of between N2 million and N3 million, depending on their location.

 

 

Addressing journalists after inspecting ongoing projects in Abuja, Wike lamented that while residents wanted infrastructure in the FCT, they failed to support the government by paying their taxes, noting that many of the debtors owed as many as 20 years, even though the ground rent has remained the same for many years.

 

He said, "My greatest challenge are the people refusing to pay their money. I will speak on that in the next media chat. And people just want facilities, people want infrastructure. But nobody asks, 'Where are you getting these funds from?' Abuja is not one of the oil cities, we only rely on taxes. These are not new taxes. These are taxes that have been there for years.

 

"It is unfortunate that most elites own houses overseas. They know the implication of not paying taxes; they know such houses are gone. But when it comes to your own country, you don't want to do that, simply because nobody wants to obey the law; everybody thinks there are no sanctions.

 

"Look at the years, 20-something years, 30-something years. And how much is it? We have not increased the ground rent, but we are working towards that; we will do that, I can assure you. The president has given a waiver of two weeks. Let nobody think that blackmail or whatever will stop us, we will do what we are supposed to do," he stated.

 

The minister also said he had recently signed over 1,500 Certificates of Occupancy and Deeds of Assignment and encouraged residents to pay their taxes and ground rents to aid developments in the FCT.

 

"If you pay tax, you will see that it will be a different thing. And that's what we are trying to do," he added.

 

...Says suspect in Abuja explosion not suicide bomber

 

The FCT Minister, Nyesom Wike, on Wednesday, said the briefing he has so far gotten did not suggest that the suspect in the explosion that occurred in front of the Mogadishu military barracks was caused by a suicide bomber.

 

Wike spoke when he was responding to questions from journalists during the inspection of some road projects lined up for commissioning to mark President Bola Ahmed Tinubu's second year in office.

 

The minister cautioned the media to be wary of what they report so as not to create unnecessary fear in the minds of residents.

 

The minister said, "The security never said it was a suicide bomber. So that you don't go and create an impression and put fear in people. You should try to do what we call investigative journalism. NEMA is not the head of security. Security agencies are there.

 

"What happened was that there was somebody who went to where we have these quarries, where they blast all these rocks. The person took the explosive and put it in his pocket. Of course, some of them may not even understand the implication of that, and so, it exploded on him.

 

"So that does not mean that it is a suicide bomber. We should be careful in the story we are planting, and let's not send the wrong message to the residents."

 

Daily Trust has reported an explosion near a checkpoint opposite the Mogadishu barracks in Abuja.

 

A man was reportedly killed during the incident, with people saying he was a suicide bomber.

 

The National Emergency Management Agency on Tuesday said the explosion that occurred on Monday in Abuja was caused by a suicide bomber.

 

NEMA stated on its X handle that its team promptly responded to the incident upon receiving the alert.

 

Both the military and the police have yet to disclose the cause of the incident, saying investigation is ongoing.

 

Read the original article on Daily Trust.

 

 

 

 

 

Nigeria: Tinubu's Economic Reforms Boosting Investors' Confidence - Minister

The Minister of State, Industry, Trade and Investment, Senator John Enoh has said that the economic reforms of President Bola Tinubu are providing the enabling environment and restoring confidence for both local and foreign investors in the country to prosper.

 

He also said policies like Naira floating, improved security and support to investors through Bank of Industry (BOI) and other relevant government agencies were tailored towards helping private investments thrive.

 

He stated this in Kano when he visited the Mamuda Group of Companies on Wednesday.

 

According to the minister, the company is a clear demonstration of transforming local resources to world class products.

 

He stated that the number of youths gainfully employed by the company aligns with President Tinubu's Renewed Hope Agenda of job creation.

 

He said, "When I came here I saw trucks loading finished products to be distributed within and outside the country, and also saw thousands of our youths working here, I became impressed.

 

"I was told that there are over 13,000 staff gainfully employed here as permanent staff, while more than 18,000 others as casual staff. This is impressive as it is part of our mandate of creating an enabling environment for private investors to employ our youths since the government cannot employ everyone," he added.

 

Also speaking, the Chairman of the Mamuda Group of Companies, Hassan Hamoud said the company had started a new beverages factory in Ogun state to replicate what it's doing in Kano which would be due for commissioning in the next 14 months.

 

"Here in Kano, we are already into production of soft drinks and water, biscuits, soaps, detergents, sacks and mats among others. By the time our Ogun factory comes up, there will be thousands of Nigerians working here," Hamoud said.

 

Read the original article on Daily Trust.

 

 

 

 

Nigeria: AfDB - Nigeria, 90 Others Elect Adesina's Successor Today

Barring any stalemate, a new President of the Africa Development Bank (AfDB) will emerge today as the bank holds its Annual General Meeting (AGM) at its headquarters in Abidjan, Cote D'Ivoire.

 

Five candidates are in the race to succeed Adesina. They include Ms Swazi Tshabalala from South Africa, Mr Hott Amadou from Senegal, Dr Samuel Munzele Maimbo from Zambia, Dr Sidi Tah Ould from Mauritania, and Mr Abbas Mahamat Tolli from Chad.

 

About 6000 delegates from 91 countries converged for the meeting.

 

Nigeria's Akinwunmi Adesina is set to bow out after two terms of 10 years in the saddle, paving the way for the emergence of a new president.

 

His tenure saw a significant increase in the bank's capital from $93 billion to $318 billion, and also succeeded in preserving the bank's AAA credit rating.

 

How the president is elected

 

The president is elected by the Board of Governors of the AfDB. The board of governors is made up of representatives of the 81 member states, who are usually ministers of finance, planning or central bank governors or their duly designated alternates.

 

Article 9 of the Rules of Procedure Governing the Election of the President of the Bank as amended (the "Election Rules") provides that a candidate shall be elected if he or she obtains at least 50.01% of the total votes of the regional (African) member countries and at least of 50.01% of the votes of all member countries, (regional and non-regional) of the bank. This is also termed "double majority votes".

 

 

The candidates:

 

Ms Swazi Tshabalala (South Africa)

 

She is the only female candidate among them. Tshabalala is an accomplished financial strategist with over 30 years of experience in both the private and public sectors.

 

The 58-year-old was Senior Vice President of the AfDB until October 2024, stepping down to contest the presidency. Since joining the bank in 2018, she served as Vice President for Finance and CFO, later promoted to Senior Vice President in 2021.

 

Hott Amadou

 

Mr Hott Amadou, 52, is a seasoned investment banker who served as Senegal's Minister of Economy, Planning and International Cooperation from April 2019 to September 2022.

 

Prior to his government appointment, Amadou was Vice President of the AfDB's Power, Energy, Green Growth and Climate Change Complex from November 2016.

 

His extensive financial background includes serving as a wealth manager for Nigerian billionaire Aliko Dangote, before being appointed Special Advisor to Senegal's President, Macky Sall, in 2012.

 

Dr Samuel Munzele Maimbo (Zambia)

 

52-year-old Dr Samuel Munzele Maimbo's 23-year career at the World Bank has been a push in his aspiration. He had served in multiple leadership roles, including Senior Advisor to the Managing Director and Chief Financial Officer.

 

Currently, Maimbo is the Vice President for Budget, Performance Review, and Strategic Planning at the World Bank, overseeing the institution's annual financial allocations and strategic objectives.

 

Dr Sidi Tah Ould (Mauritania)

 

Dr Sidi Tah Ould, 60, is the Director General of the Arab Bank for Economic Development in Africa (BADEA).

 

He started his carrier at the Mauritanian Bank for Development and Commerce (BMDC), before taking on advisory roles in financial management for various government institutions.

 

Between 1999 and 2006, Dr Ould served as Investment Promotion Officer and Technical Assistant to the President of the Islamic Development Bank. In 2008, he was appointed Mauritania's Minister of Economy and Finance, holding the post until 2015.

 

Mr Abbas Mahamat Tolli (Chad)

 

Abbas Tolli, 53, is a banker and economist who served as the Governor of the Bank of Central African States from February 2017 to February 2024. His tenure focused on reforms in monetary and exchange rate policies, significantly advancing financial stability across the region.

 

He previously held government roles as Chad's Minister of Finance and Budget (2005-2008) and Minister of Infrastructure (2011-2012).

 

Meanwhile, Athena Policy and Leadership yesterday rooted for Dr Maimbo, describing him as the strategic choice for Africa and Nigeria.

 

It stated that Amadou Hott of Senegal, initially backed by Nigeria, may be "an extension of Senegal's regional rivalry with France."

 

"Dr Maimbo has demonstrated the capacity to modernise the bank, restore donor trust, and protect the AAA rating. He is well-positioned to navigate a complex, post-aid environment and maintain access to affordable capital. Backing him is not a retreat from Nigeria's leadership. It is a reaffirmation of it.

 

"The AfDB's next chapter will be shaped by decisions, not rhetoric. Nigeria's vote, as the largest African shareholder, is decisive. It should be cast with intention, not inertia.

 

"We acknowledge Dr Adesina's achievements and respect the credentials of other candidates. However, we believe that Dr Sam Maimbo, because of his competence, neutrality, global credibility, and pan-African commitment, is the right choice for the Bank, Africa, and Nigeria," the think-tank group said.

 

Read the original article on Daily Trust.

 

 

 

 

 

Nigeria: Naira Shows Stability Amidst Fresh $190m Injection, Rising Investors' Confidence

The naira remained stable in the various markets amidst the latest interventions of $190m, with experts concluding that the stability is boosting investors' confidence, Daily Trust can report.

 

The local currency, despite global and domestic headwinds, has maintained a positive outlook and stability in recent months.

 

The stability and reduced volatility of the local currency follow Central Bank of Nigeria (CBN) reforms that brought efficiency in the management and operations of the FX market.

 

Aside from a drop in daily fluctuations, the exchange rate has continued to moderate significantly, signaling growing market confidence and increased transparency in FX operations.

 

Despite geopolitical tensions and tariff wars ravaging some economies and their currencies across the world, the naira has continued to maintain measured stability.

 

Naira's journey in 2025

 

After beginning the year on a strong note, it came under significant pressure, depreciating from N1,475/$ at the end of January to N1,598/$1 at the official markets. At the parallel market, the local currency exchanges around N1,605/$, indicating a narrowing gap between official and parallel market rates.

 

With occasional interventions, including the recent injection of $190.4 million, analysts said the naira is likely to stay stable in the short term, as global pressure remains contained amid easing trade tensions.

 

A broader comparison with 2024 performance shows the naira has shown relative resilience and stability in the face of global headwinds and domestic pressures.

 

 

In an emailed note to investors, Head of Research at Commercio Partners, Dr. Ifeanyi Uba, explained that in defending the naira's performance, CBN governor, Yemi Cardoso, argued that Nigeria's currency fared better than many peers during this period of uncertainty.

 

"Despite this, there's a silver lining: the CBN's foreign exchange reforms are clearly yielding results. One of the most notable successes has been the reduction in exchange rate volatility. Although the naira has depreciated, it has done so in a more orderly and predictable manner," he said.

 

He further stated that the gap between the official and parallel market rates remains narrow, a significant departure from the sharp discrepancies seen in previous years.

 

"Daily fluctuations in the exchange rate have also moderated significantly when compared to 2024, signaling growing market confidence and increased transparency in FX operations. This improved stability is not just a statistical detail, it matters deeply to investors. Exchange rate volatility is a major risk consideration for foreign investors looking to enter any emerging market," he said.

 

"As Nigeria continues to rein in this volatility, it enhances its attractiveness as a destination for foreign capital. Should these reforms persist and deepen, they may lay the groundwork for a more sustainable and investment-friendly FX environment, potentially setting the stage for renewed inflows and a more stable naira in the long run," he added.

 

Already, Nigeria's sovereign risk spread has fallen to the lowest level since January 2020, erasing the premium accumulated during the pandemic and subsequent strain on its economy.

 

While US President Donald Trump's widening trade war has taken emerging markets on a wild ride, Nigeria has quietly held its own, attracting foreign capital reassured by currency reforms and other measures designed to revive the economy of Africa's most populous nation.

 

"Nigeria appears to be back in business as long-awaited economic reforms take shape," said Emre Akcakmak, portfolio manager at East Capital. Key measures include improved currency liquidity, leeway for investors to repatriate their profits, and a stable naira.

 

"We feel the Central Bank of Nigeria will continue to stem any sharp appreciation of the naira to limit profit taking from the fast money community," Akcakmak said.

 

"Portfolio inflows have likely been supported by improved confidence amid key structural reforms, better FX market functioning and moderating dollar-naira volatility, as well as the still-robust nominal yield buffer," Samir Gadio, Head of Africa strategy at Standard Chartered Plc, told Bloomberg.

 

"Besides, Nigeria's local market is seen as less correlated with global risk conditions than more liquid EM peers," he said.

 

Yields on Nigeria's $1.5 billion Eurobond due in 2034 have declined to 9.69 per cent, the lowest since its early December launch, and a domestic debt auction was three times oversubscribed recently, with the Open Market Operation bills allotted at 21.45 per cent versus 22.65 per cent.

 

Olayemi Cardoso, CBN governor, expressed strong optimism that measures being deployed by his administration will deliver benefits that would be felt by every Nigerian in no distant time.

 

He said the need for reassurance on the expected outcomes from policy measures being deployed by the CBN was necessitated by the growing pains of Nigerians due to the further deterioration of key macroeconomic variables (notably, inflation and exchange rate) that are within the purview of the monetary policy authority relative to when he assumed office last year September.

 

Cardoso, over time, prioritised stabilising the exchange rate, curbing inflation, strengthening banks' capital buffers, and fostering an environment conducive to the success of both businesses and individuals.

 

Ike Chioke, Managing Director, Afrinvest West Africa Limited, said the liquidity supply boost provided by Nigeria's successful pricing of $2.2 billion in Eurobonds recently significantly boosted the exchange rate position against the dollar. We anticipate the naira to regain more ground against the dollar, driven by aforementioned factors," he said.

 

He listed other key policies of the apex bank that supported the naira rally as the clearance of the $7bn FX backlog and resumed sales of Open Market Operation (OMO) bills to Foreign Portfolio Investors (FPIs) at market reflective rates.

 

CBN's policies, including the exchange rate unification, have led to significant foreign capital inflows to the economy while reducing its intervention in the forex market.

 

The floatation of the naira and the clearing of over $7bn FX backlog improved the country's outlook with foreign investors as well as multilateral organisations, like the World Bank, describing it as a bold intervention to improve the economy's sustainability in the long run.

 

Foreign reserves upbeat

 

Uba added that after a challenging start to the year, Nigeria's external reserves position has begun to show signs of recovery--an encouraging development that reflects not only changing market dynamics but also the CBN's strategic efforts to restore confidence in the economy.

 

"While early 2025 saw some drawdown in the reserves due to heightened demand for foreign exchange--driven by debt servicing obligations, import-related FX needs, and direct CBN interventions--the tide began to turn from late April," he said.

 

As of May 16, Nigeria's external reserves stood at approximately $38.9 billion, a level the CBN noted is sufficient to cover 7.6 months of imports for goods and services.

 

This turnaround in reserve accumulation coincided with a major vote of confidence from the international financial community. In April, Fitch Ratings upgraded Nigeria's Long-Term Foreign-Currency Issuer Default Rating from 'B-' to 'B', maintaining a stable outlook.

 

What makes this upgrade especially significant is its timing--coming at a moment of intense global uncertainty, with rising U.S. tariffs and widespread investor caution clouding emerging markets. That Fitch proceeded with an upgrade under such conditions sends a powerful message: Nigeria's ongoing economic reforms are being taken seriously.

 

This recognition has not come from Fitch alone; several external institutions have similarly acknowledged Nigeria's improving macroeconomic outlook. A key pillar of this restored confidence lies in the CBN's effort to improve transparency and credibility, particularly among foreign investors, who have long harbored concerns about data opacity and policy unpredictability.

 

Meanwhile, the rebound in external reserves, improved transparency from the apex bank, and a renewed push to engage the diaspora are laying the groundwork for sustainable capital inflows and a more resilient economic structure. This is not just a moment of recovery, it is a moment of recalibration.

 

Nigeria is proving that with disciplined policy, institutional accountability, and strategic vision, even the most daunting economic challenges can be met with confidence. The road ahead may still be complex, but the direction is finally pointing toward progress, and the world is beginning to take notice.

 

Effect of global headwinds

 

It would be recalled that Cardoso explained that in light of these global challenges, it is imperative to sustain and enhance reforms aimed at strengthening our economic buffers to withstand external shocks. This requires a steadfast focus on curbing inflation, ensuring fiscal discipline, and advancing initiatives that promote greater economic diversification.

 

"Upon assuming office in October 2023, we prioritised reforms to rebuild Nigeria's economic buffers and strengthen resilience. Inflation, which had surged to 27 per cent, was one of the most pressing challenges, partly driven by excessive money supply growth. While our GDP growth had stagnated at a meagre 1.8 per cent over the previous eight years, money supply expanded rapidly, averaging about 13 per cent growth annually," he stated.

 

Meanwhile, Nigeria's economy is already exiting the most painful phase of the reform adjustment process in 2025, Bismarck Rewane, Managing Director, Financial Derivatives Company Limited, predicted.

 

Rewane projected that the economy would begin to recover from the toughest phase of its reform adjustments this year, emphasising the importance of strategic policy implementation and institutional reforms.

 

He noted that while the fundamentals of Nigeria's exchange rate indicate that the naira should be stronger, achieving stability depends on an efficient and effectively managed FX system. He stressed that the primary challenge lies not in the reforms themselves but in their management, citing poorly sequenced policy changes and insufficient structural reforms as significant obstacles.

 

He underlined the critical role of investment in driving economic growth, saying, "Revenue alone is not enough."

 

"Investment is key, but it will be influenced by confidence, transparency, and the right policies."

 

He also called attention to persistent challenges such as power supply inefficiencies and the lack of transparency in the oil and gas sector, which require immediate attention through structural reforms.

 

Read the original article on Daily Trust.

 

 

 

Nigeria: Tinubu's Mid-Term Assessment - Unfulfilled Promises or Dawn of Renewed Hope?

The test of our progress is not whether we add more to the abundance of those who have much; it is whether we provide enough for those who have too little - late American President, Franklin D. Roosevelt, expressing his usual empathy for the suffering masses during the New Deal era, meant to cushion the effects of the Great Depression. Time heals.

 

By noon today, it will be exactly 731 days, two years, since President Bola Ahmed Tinubu shook the nation to its very foundations and shocked fellow countrymen with the statement, SUBSIDY IS GONE. In the same fell swoop, Tinubu decreed the flotation of the currency (in real terms, devaluation). These twin policies have since defined his two-year-old administration. Looking back, should he have removed the subsidy on premium motor spirit, pms, the way he did, while also devaluing the currency? Some of his supporters and handlers believe there was no better time to do it.

 

Others disagree, insisting that it was not only precipitous, it was high on the illusion of amputating a leprous hand without consideration for how to stop the bleeding. Here we are, two years later. A lot has happened. Whatever nay sayers may put up, it is to the credit of President Tinubu and the resilience of Nigerians that the doomsday predicted in the wake of the removal of subsidy and devaluation of the naira has not happened. Yes, it must be admitted that there has been immense suffering in the land, something which the administration also acknowledges.

 

But acknowledging the presence of a problem is not the same as manifestly tackling its debilitating outcomes. Whereas Nigeria and Nigerians have had to go through rough patches over the decades, there is a general consensus that hardship has never been this colourful in its crippling monstrosity - colourful because what has led to this hardship is what has brought more money to the coffers of the government; crippling monstrosity because the masses are the ones whose sweat and toil provide the so called gains.

 

 

The real issue for the masses is simple: What has happened to the better life that they were promised? Here lies the problem.

 

For a leader who promised to turn things around after decades of misplaced priorities by successive administrations, many Nigerians are still asking if this is another regime of unfulfilled promises or a dawn of renewed hope for better days ahead. This administration pitches with the latter, insisting that most of the policies President Tinubu is putting in place are for a better tomorrow. Yet, it was one great writer who said "hope is better served as breakfast but not as dinner".

 

In terms of leadership style and change, is Tinubu getting it right? His supporters say yes. But history tells us that there was once a leader, Lee Kuan Yew of Singapore, who also faced a fate similar to what Tinubu inherited from former President Muhammadu Buhari, the man he put in office. Chairman Lee cultivated Singapore, dreamt of Singapore and ate Singapore. In fact he had Singapore for appetiser and desert - not literally eating and pillaging it. He was very stern, but he led by example. He, too, sacrificed as he admonished Singaporeans to look to the future. Can we say the same for Tinubu? His admirers and supporters will say yes. But the reality speaks to the opposite, for, even as Nigerians are told to sacrifice, those in power revel in opulence and wasteful endeavours..

 

For a man who believes in the strategic linkage between ideas, know-how, opportunities and capital, what President Tinubu is attempting to do (or has done in the last two years) presents a cacophony of the good, the bad and the ugly.

 

The good because there is the masturbatory kick the government is having because of the volume of naira at hand. It has paid off its loan to the International Monetary Fund, IMF. The states have also had higher revenue returns from Federation Accounts and Allocation Committee, FAAC. Projects are being initiated and there are signs, some claim, that the economy is beginning to stabilise.

 

The bad because the hunger in the land appears not to be about to stop. The World Bank said, recently, that in a couple of years, many more Nigerians would become poorer.

 

Yet, insecurity persists in its ugliness.

 

The Nigerian Constitution insists that the security and welfare of the people shall be the primary responsibility of the government. Unfortunately, today, even in the face of mass despair, politics and regime sustenance appear to be the primary concern of the government.

 

To properly dissect Tinubu's mid-term performance, Vanguard opted to seek the input of experts in various fields of endeavour. They were invited to the Vanguard premises for discussion. The issues for discussion cut across the economy, politics, law and order, security, wellbeing of the citizenry, healthcare, education, infrastructure, amongst others.

 

Some of the eminent personalities who signed on for and participated in the session included Dr. Muda Yusuf, CEO of the Centre for the Promotion of Private Enterprise and former Director General of the Lagos Chamber of Commerce and Industries; Dr. Mike Okiro, former Inspector General of Police; Dr. Maymunah Kadiri, Consultant Neuro-Psychiatrist and Psychotherapist, Pinnacle Medical Services Ltd; Dr. Dele Sobowale, an eminent economics and columnist in key newspapers; Ebunolu Adegboruwa, SAN, eminent lawyer and human rights activist; Omowunmi Akingbohungbe, Chairman of Women In Business (WinBiz) Group and; Yemi Adamolekun, Executive Director, Enough is Enough and Senior Associate, Centre for Strategic and International Studies of Georgetown University. The session was held on Wednesday, May 14, 2025. They did justice to the issues as would be seen in the following pages. The summary is that whereas you can not fail to attribute some successes to the Tinubu administration, the cost and the human despair pour cold water on them, prompting many to ask if this is another one-chance regime of failed promises or, indeed, this is the dawn of renewed hope.

 

This package also took on board ministerial sessions of what the government has achieved. Defence, Petroleum (oil), Works, Water Resources and Sanitation, and Power ministers reeled out the achievements of the administration.

 

The session was chaired by Ochereome Nnanna, Chairman, Vanguard Editorial Board. In attendance were Emeka Anaeto, Business Editor; Emma Nnadozie, Crime Editor; Femi Ajasa, Online Editor; Babajide Komolafe, Economy Editor; Theodore Okpara, Transport Editor; Morenike Taire, Woman Editor; Shola Ogundipe, Health Editor; Wahab Adeshina, Education Editor; Yetunde Arebi, Dep. Woman Editor; Dapo Akinrefon, Dep. South West Editor. The transcription was done by the team of Ebun Sessou , Providence Ayanfeoluwa , Cynthia Alo, Efe Onadjae and Dickson Omobola.

 

Read the original article on Vanguard.

 

 

 

 

Nigeria: AfDB Projects 6% Naira Depreciation in 2025 Amid Global Uncertainty

At the backdrop of growing global financial market volatility, the African Development Bank (AfDB) has projected that the naira will depreciate by at least 6% between 2025 and 2026.

 

The projection was revealed in the African Economic Outlook 2025 published by the bank, highlighting the impact of global uncertainty on the stability of African currencies over the next year.

 

The AfDB report comes just a week after the Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, announced that volatility in Nigeria's foreign exchange (FX) market has significantly declined, dropping below 0.5%, which he attributed to improved monetary and fiscal reforms aimed at stabilizing the macroeconomic environment.

 

Despite the recent relative FX market stability, the AfDB report forecasts currency depreciation for 21 African nations in 2025, including Nigeria, Egypt, Ethiopia, Ghana, Libya, Rwanda, Zambia, and Zimbabwe, where depreciations of 6% or more are expected.

 

The bank largely attributed the depreciation trend in these countries to potential declines in export earnings, which may put upward pressure on national currencies.

 

Conversely, the report anticipates that currencies in Kenya, Morocco, and the CFA franc zone will appreciate by more than 3% against the US dollar, supported by stronger market fundamentals.

 

Looking back at 2023, the report noted that 28 African nations experienced currency depreciation, but 17 of them reversed those losses or recorded slower rates of decline.

 

Nigeria belongs to the category that has not recovered yet.

 

The AfDB report underlines the role of global factors in shaping currency trends, while also pointing to domestic challenges such as misaligned FX regimes, fiscal deficit monetization, political instability, and low productivity.

 

To address these systemic issues, the report recommends that African governments strengthen domestic macroeconomic fundamentals, improve export capacity through value-added production, and implement strategic policies to reduce FX volatility, which has historically resulted in high economic costs.

 

Read the original article on Vanguard.

 

 

 

 

Lesotho: Big U.S.-Funded Chicken Project Shuts Down in Lesotho

A R500-million project to boost chicken farming in Lesotho has been canned by the United States Department of Agriculture.

The Sustainable Transformation of Enterprises in the Poultry Sector (STEPS) project, launched in 2023, aimed to grow 28,000 poultry enterprises in Lesotho and boost meat production by 40% and egg production by 30% by 2028.

Lesotho's Rural Self-Help Development Association, a partner in the project, said the grant had been ended.

A $31.4 million (about R562-million) United States Department of Agriculture (USDA) project aimed at transforming Lesotho's poultry sector has been terminated.

 

The five-year initiative, launched under the American Food for Progress programme, planned to grow 28,000 poultry enterprises in Lesotho, boosting meat production by 40% and egg production by 30% by 2028.

 

Dubbed the Sustainable Transformation of Enterprises in the Poultry Sector (STEPS), the project was also designed to reduce Lesotho's heavy dependence on imported poultry products by empowering local farmers through access to quality inputs, financial training, and market linkages. The broader aim was to improve food security and increase incomes along the value chain.

 

Announcing the project, the USDA said in 2021 that Lesotho had imported poultry products worth $39-million, with more than 80% of poultry meat sourced from neighbouring countries. The country also imports inputs such as fertile eggs, day-old chicks, livestock feed, services, and veterinary products.

 

In an October 2023 statement, the US Embassy in Maseru said Land O'Lakes Venture37, an American company, had been selected to implement the programme in Lesotho. It partnered with the International Research Institute, the World Poultry Foundation, and the locally based Rural Self-Help Development Association.

 

But less than two years after its launch, the STEPS project has been terminated.

 

Reuters reported earlier this month that the USDA had notified grantees on 14 May 2025 that their Food for Progress awards had been ended. Speaking to GroundUp, Rural Self-Help Managing Director 'Mampho Thulo confirmed the news, saying her organisation had been notified of the decision by its partner Land O'Lakes last week.

 

Land O'Lakes technical advisor Tsoteli Kuleile told GroundUp that the company had been told to suspend the project and to refer all communication to the company's country director, Fidel O' Donovan. However, O' Donovan has not responded to questions sent to him by GroundUp.

 

"We didn't see it coming"

 

Thulo said their association had been worried after the US withdrew funding from other initiatives, such as USAID and PEPFAR projects, and the recent R6-billion Millennium Challenge Account. However, she had believed agricultural projects would be spared.

 

"We still had our fears, but we were over 90% confident that it would not be terminated... We thought they would be careful not to cut agriculture grants, especially those that transform agricultural products," Thulo said.

 

She said the STEPS project was still in its early stages. A training curriculum for farmers was being finalised and tenders were being prepared for construction projects.

 

According to Thulo, Rural Self-Help was responsible for a $1.2-million budget under the STEPS project.

 

The sudden halt has left thousands of poultry farmers in limbo. While Land O'Lakes focused on national-level commercial farming, Rural Self-Help was actively engaged with grassroots farmers across seven districts, according to Thulo.

 

The targeted districts were Botha Bothe, Leribe, Berea, Maseru, Mafeteng, Mohale's Hoek, and Quthing, with Rural Self-Help focusing on broiler and egg layer production.

 

In those districts, Thulo said the organisation was working with farmers ranging from those raising chickens for subsistence to farmers keeping 500 chickens. "The plan was to support 23,000 to 28,000 businesses by 2028," she added.

 

Thulo said she had to break the news to beneficiaries. "This beautiful project, meant to transform your poultry enterprises, is no more. We are shocked, and the farmers are shocked too."

 

The association plans to meet with farmer representatives this week to chart a path forward.

 

Thulo said more than 10 staff members had been sent home.

 

Limpho Salai, chairperson of the Basotho Poultry Farmers Association--whose members were primary beneficiaries of the project--told GroundUp that Land O'Lakes technical advisor Kuleile had instructed him not to speak to the media and to refer all inquiries to him.

 

GroundUp asked for comment from the US Embassy in Maseru but no response had been received by the time of publication. Previously, the Embassy has referred similar inquiries to the US foreign affairs administration in Washington.

 

Read the original article on GroundUp.

 

 

 

 

Nigeria's Debt to Hit N162trn As President Seeks N17trn Loans

Nigeria's public debt profile will rise to N162.025 trillion as President Bola Ahmed Tinubu has sought the National Assembly's approval for fresh loans'.

 

The president requested the legislature to approve new borrowing plans totaling $21.5 billion, along with €2.19 billion, 15 billion Japanese yen and a €65 million grant, as part of the federal government's 2025-2026 borrowing framework.

 

Using the current official exchange rate as of May 27, 2025 at N650 to $1; the proposed borrowings of $21 billion (N13.65 trillion), €2.19 billion (N4 trillion), 15 billion Japanese Yen (N174 billion) and €65 million (N116 billion) will amount to N17.355 trillion, pushing the country's debt burden to N162.025 trillion.

 

The data from the Debt Management Office (DMO) indicated that N56.6 trillion of the country's current N144.67 trillion debt profile was borrowed by Tinubu's administration as his predecessor, Muhammadu Buhari, left it at N87.379 trillion.

 

The president's fresh loan request was contained in letters read separately at both chambers of the National Assembly by Senate President Godswill Akpabio and the Speaker of the House of Representatives, Tajudeen Abbas.

 

He said the request for the external borrowing was to enable the government fund priority projects across infrastructure, agriculture, health, education, water supply, security and employment generation.

 

"These projects were selected based on technical and economic evaluations and are geared toward addressing the country's infrastructure deficit, reducing poverty, creating jobs, and boosting food security," the president stated.

 

Citing the impact of subsidy removal and dwindling domestic revenues, Tinubu emphasised the urgency of closing the financial gap through prudent external borrowing, noting that the funds would be targeted at sectors such as power, railways and healthcare.

 

"I want to emphasise that the projects and programmes included in the Borrowing Plan were selected based on thorough technical and economic evaluations as well as their anticipated contribution to the socio-economic development of the country.

 

"These initiatives aim to generate employment, promote skill acquisition, foster entrepreneurship, reduce poverty, and enhance food security, all of which will improve the livelihoods of the average Nigerian. The majority of these projects and programmes will be implemented across all 36 states and the Federal Capital Territory."

 

He said given the urgent need to stabilise the economy, it was crucial to seek the consideration and approval of the National Assembly for the 2025-2026 External Borrowing Plan as it would enable the government to fulfill its obligations to the Nigerian people through timely disbursement and effective project implementation.

 

In another letter, Tinubu requested the National Assembly's approval to raise up to $2 billion through the issuance of foreign currency-denominated financial instruments in Nigeria's domestic debt market.

 

"This request is pursuant to the provisions of Section 44 (1) and (2) of the Fiscal Responsibility Act 2007 and Section 1(7) of the Executive Order, which requires National Assembly approval for all new borrowings and appropriation of the proceeds," the president wrote.

 

He said the proceeds would be invested in critical sectors of the economy to drive growth, infrastructure, job creation, and foreign exchange earnings.

 

The strategy, according to him, aims to diversify government funding sources, stabilise the naira and deepen the local financial market.

 

He said it would allow investors have the opportunity to earn reasonable income on their US Dollar funds, while allowing the government to channel the funds to productive uses in the economy.

 

However, he acknowledged that the capital raising would increase Nigeria's public debt stock and debt servicing costs.

 

N758bn bond to clear pension arrears

 

In a third request, Tinubu asked the legislature to approve the issuance of bonds worth N757.98 billion in the domestic market to offset outstanding pension liabilities under the Contributory Pension Scheme as of December 31, 2023.

 

The request, he said, followed the federal government's non-compliance with several provisions of the Pension Reform Act 2014 over the years due to revenue constraints.

 

"This bond issuance will enable the federal government to meet its obligations to retirees, restore confidence in the pension system, and improve the welfare of retired public servants," Tinubu wrote.

 

It's fiscal irresponsibility - Experts

 

Reacting to the fresh loans' request, the Executive Director at the Centre for Fiscal Transparency and Public Integrity, Umar Yakubu, alleged that it would only fund over bloated governance structure.

 

"We've reached a level of fiscal irresponsibility where we finance government excesses with borrowing because overtime, statistics has shown that these borrowings have little or no impact on the common man," he told Daily Trust.

 

A development expert, Joseph Momoh, said continuous borrowing by the current administration might further deepen poverty rather than fast track development.

 

"If you look at the indices, nothing serious had changed. Look at cost of living, insecurity and poverty, it is on the rise and they keep borrowing without results," he said.

 

A professor of Capital Market Studies at the Nasarawa State University, Keffi, Uche Uwaleke, said: "Loan is in order if tied to specific projects with high positive impact on the economy. In order to ensure this, the loan proceeds should be ring-fenced and its utilization subjected to strict monitoring by not only government agencies but also by civil society groups and the media."

 

Under Tinubu's administration, Nigeria's public debt has jumped from N87.379 trillion as of June 2023 (one month after Buhari's exit from power) to N142.319 trillion as of September 2024, an increase of N56.6 trillion.

 

Checks by Daily Trust showed that Nigeria's total public debt rose to N144.67 trillion ($94.23 billion) as of December 31, 2024, representing a 48.58 per cent increase compared to N97.34 trillion ($108.23 billion) recorded at the end of December 2023.

 

The DMO disclosed this in its latest report on the country's public debt profile.

 

The report also revealed a quarter-on-quarter rise of 1.65 per cent from the N142.32 trillion ($88.89 billion) recorded at the end of September 2024, highlighting the continuous increase in the nation's debt burden during the final quarter of the year.

 

An analysis of Nigeria's public debt on a year-on-year basis showed an increase of N47.32 trillion, representing a 48.58 per cent rise from December 2023 to December 2024.

 

Nigeria's external debt increased by 83.89 per cent from N38.22 trillion ($42.50 billion) in December 2023 to N70.29 trillion ($45.78 billion) in December 2024.

 

The rise was attributed to new external borrowings and the impact of naira depreciation, which raised the naira equivalent of dollar-denominated debt.

 

External debts rose by N1.4 trillion, moving from N68.89 trillion ($43.03 billion) as of September 2024 to N70.29 trillion ($45.78 billion) in December.

 

This was influenced by new foreign loans acquired in the last three months of the year, alongside the further weakening of the naira.

 

External debts account for 48% of total public debt

 

As of December 2024, external debts made up of 48.59 per cent of Nigeria's total public debt; and domestic debts, 51.41 per cent.

 

A breakdown of external debts showed that the federal government accounted for N62.92 trillion ($40.98bn); while states and the Federal Capital Territory held N7.37 trillion ($4.80 billion).

 

The rise in public debts has raised concerns among economic analysts regarding Nigeria's fiscal stability.

 

The sharp increase, particularly in external debts, highlights the nation's vulnerability to exchange rate fluctuations and changes in global economic conditions.

 

With the continued depreciation of the naira, the cost of servicing foreign debt could escalate, adding pressure on the country's financial resources.

 

Further checks by Daily Trust showed that out of the N54.2 trillion budget passed by the National Assembly for 2025, N14.3 trillion was earmarked for debt servicing.

 

The budget also had a fiscal deficit of N13.08 trillion.

 

Read the original article on Daily Trust.

 

 

 

 

 

Nigerian Govt Explains Fresh Borrowing Plan

The Federal Ministry of Finance explained that the funds are earmarked for the 2025-2026 fiscal period and are part of the Medium-Term Expenditure Framework (MTEF).

 

The Nigerian government has defended its plan to borrow $21.5 million and ¥15 billion and obtain a grant of €65 million.

 

On Tuesday, President Bola Tinubu, in a letter, requested the National Assembly's approval to obtain the loans.

 

Many Nigerians have criticised the loan request.

 

Some critics, including economists and civic advocates, have questioned the necessity of external borrowing in the aftermath of the fuel subsidy removal, a policy that was expected to free up resources for domestic development.

 

They argue that the subsidy removal should have created fiscal space to meet the nation's financial needs without resorting to additional borrowing. Some others are concerned about Nigeria's rising debt profile and the long-term implications for future generations.

 

But in a statement on Wednesday, the Director of Information and Public Relations at the Fedetal Ministry of Finance, Mohammed Manga, explained that the proposed borrowing strategy is structured, strategic, and aligned with Nigeria's long-term economic objectives.

 

He said the funds are earmarked for the 2025-2026 fiscal period and are part of the Medium-Term Expenditure Framework (MTEF).

 

MTEF is a planning and budgeting tool that helps the government manage its finances over a medium-term period, typically three years.

 

Mr Manga said the proposed borrowings will be directed toward important development projects critical to national growth and stability.

 

He explained that the borrowing plan is in accordance with the Fiscal Responsibility Act of 2007 and the Debt Management Office (DMO) Act of 2003.

 

He said the funds will be used to support several infrastructure and security initiatives of the government including expansion and upgrade of power grids and transmission lines, development of irrigation systems to boost food security, installation of a nationwide fibre optics network, procurement of fighter jets to strengthen national security and enhancement of rail and road infrastructure across geopolitical zones.

 

The director noted that the projects will span multiple states including Abia, Bauchi, Borno, Gombe, Kaduna, Lagos, Niger, Oyo, Sokoto, and Yobe, reflecting a national development agenda.

 

"The borrowing plan does not equate to actual borrowing for the period. The actual borrowing for each year is contained in the annual budget. In 2025, the external borrowing component is US $1.23 billion, and it has not yet been drawn. This is planned for H2 2025. Also, the plan is for both federal and several state governments across numerous geopolitical zones, including Abia, Bauchi, Borno, Gombe, Kaduna, Lagos, Niger, Oyo, Sokoto, and Yobe States.

 

"Importantly, it should be noted that the Borrowing Rolling Plan does not equate to an automatic increase in the nation's debt burden. The nature of the rolling plan means that borrowings are split over the period of the projects. For example, a large proportion of projects in the 2024. - 2026 rolling plan have multi-year draw downs of between 5 - 7 years, which are project-tied loans.

 

"These projects cut across critical sectors of the economy, including power grids and transmission lines, irrigation for improving food security, fibre optics network across the country, fighter jets for security, and rail and road infrastructure," he added.

 

Nigeria's debt profile

 

According to Nigeria's Debt Management Office (DMO), as of 31 December 2024, Nigeria's total public debt stood at N144.7 trillion (approximately $94.2 billion). About 51.4 per cent of the total (N74.4 trillion) is domestic debt while 48.6 per cent (N70.3 trillion) is external debt.

 

The rising debt has resulted in increased debt servicing costs. In 2023, Nigeria spent N7.8 trillion on debt servicing, a 121 per cent increase compared to N3.52 trillion in the previous year. The amount spent on debt servicing rose to N13.12 trillion in 2024, a 68 per cent increase from the 2023 figure. These high debt servicing costs means less funds for important sectors such as infrastructure and social services, potentially hindering economic growth and development.

 

No immediate obligation on loans

 

However, Mr Manga clarified that the proposed loans are not immediate debt obligations but part of a rolling borrowing plan that guides borrowing over a three-year period.

 

He noted that the 2025 borrowing component is $1.23 billion and the money has yet to be drawn.

 

The director added that most of the funding will come from multilateral and bilateral development partners such as World Bank, African Development Bank, French Development Agency, European Investment Bank, Japan International Cooperation Agency (JICA), China EximBank and Islamic Development Bank.

 

These loans, he said, come with concessional terms and long repayment periods, ensuring sustainability and manageable repayment schedules.

 

"The majority of the proposed borrowing will be sourced from Nigeria's development partners, including the World Bank, African Development Bank, French Development Agency, European Investment Bank, JICA, China EximBank, and the Islamic Development Bank. These institutions offer concessional financing with favourable terms and long repayment periods, thereby supporting Nigeria's development objectives sustainably," he added.

 

Debt sustainability and revenue mobilisation

 

Mr Manga said Nigeria's debt management strategy prioritises sustainability, transparency, and economic impact.

 

He said the country's debt service to revenue ratio has begun to decline from its 2023 peak of over 90 per cent, attributing this to the end of "distortionary and inflationary" financing methods.

 

Mr Manga also stated the government had set ambitious targets for domestic revenue generation through reforms such as enhanced remittances from the NNPC Ltd, technology-enabled revenue tracking from Government-Owned Enterprises (GOEs), improved collections from MDAs and outstanding obligations

 

"The government seeks to reiterate that the debt service to revenue ratio has started decreasing from its peak of over 90 per cent in 2023. The government has ended the distortionary and inflationary ways and means.

 

"There are significant revenue expectations from the Nigerian National Petroleum Corporation (NNPC) and technology-enabled monitoring and collection of surpluses from Government Owned Enterprises and revenue-generating ministries, departments, and agencies, including legacy outstanding dues," he said.

 

Economic outlook

 

Mr Manga also noted that the government's intention was to transition the economy toward inclusive and sustainable growth.

 

He said external borrowing, when added to productive investments, will help lay the foundation for diversification and long-term prosperity.

 

"Having achieved a fair degree of macroeconomic stabilisation, the overarching goal of the federal government is to pivot the economy onto a path of rapid, sustained, and inclusive economic growth. Achieving this vision requires substantial investment in critical sectors such as transportation, energy, infrastructure, and agriculture. These investments will lay the groundwork for long-term economic diversification and encourage private sector participation.

 

"Our debt strategy is therefore guided not solely by the size of our obligations but by the utility, sustainability, and economic returns of the borrowing. Ensuring that all borrowed funds are efficiently utilized and directed toward growth-enhancing projects remains a top priority," he said.

 

Mr Manga called for continued legislative oversight and constructive public engagement, emphasising that future borrowing will remain within the framework of the DMO's Debt Sustainability Analysis and ensuring the nation's economy is not compromised.

 

"In conclusion, the government remains committed to keeping borrowing within manageable and sustainable limits in accordance with the DMO Debt Sustainability Framework. The ongoing tax reform agenda and other revenue initiatives will further improve revenue generation and prudent financial management.

 

"We reaffirm our dedication to fiscal discipline, transparency, and accountability. Constructive public engagement and legislative oversight are vital components of our journey toward long-term economic stability and inclusive national prosperity," the director stated.

 

Read the original article on Premium Times.

 

 

 

 

South Africa: No Plans to Reform South Africa's Mineral Royalty Regime - President Ramaphosa

Government remains committed to ensuring that South Africa continues to benefit equitably from its mineral wealth, while reaffirming that there are no current plans to reform the country's mineral royalty regime.

 

Responding to oral questions in the National Assembly on Tuesday, President Cyril Ramaphosa addressed concerns raised by members regarding the country's ability to fully capture the potential fiscal benefits of its mineral resources amid a global surge in demand for metals and minerals critical to the renewable energy transition.

 

"Any company that extracts a mineral resource in our country is required to pay the South African government a mineral royalty. This is because mineral resources are finite and cannot be replaced.

 

"While it is always good to review existing policies against national priorities, there is no intention at this stage to reform the current mineral royalty regime," the President said.

 

On the issue of the resource rent taxes, the President said that such taxes aim to ensure that companies extracting minerals pay a larger share of their profits to government whenever profits are high.

 

He explained that South Africa's mineral royalty regime incorporates an element of the principle underlying resource rent taxes.

 

The royalty rate is applied to the sales value of a mineral and is determined by a formula that varies according to profitability, as well as whether the mineral has been refined or is unrefined.

 

"There is a minimum rate to ensure that even if profitability is low, the country is still reimbursed for resources that are extracted. In this way, government collects more corporate tax revenue and mineral royalty revenue during commodity booms leading to a higher level of taxation," the President said.

 

President Ramaphosa cited statistics from the South African Revenue Service which show that mineral royalties doubled from R14.2 billion to R28.5 billion between 2020/21 and 2021/22 because of the commodity boom.

 

They remained elevated in 2022/23 before dropping to almost R16 billion in 2023/24, indicating that companies were not as profitable in that year.

 

In addition to the payment of mineral royalties, mining companies contribute to national revenue through the payment of corporate income tax, capital gains tax on the disposal of assets, VAT and employees' pay-as-you-earn tax contributions.

 

In the past financial year, the mining industry paid 14% of all corporate taxes in South Africa. Earlier this month, Cabinet adopted a Critical Minerals Strategy for the country, which places a sharper focus on domestic mineral value addition.

 

"The strategy itself aims to maximise the country's potential particularly in the global market for critical minerals, particularly those crucial for the country's just energy transition and the ones for which the country holds comparative advantage.

 

"This strategy aims to ensure that South Africa derives greater benefits from its mineral wealth through beneficiation, through localisation and the people who work for those companies," President Ramaphosa said. - SAnews.gov.za

 

Read the original article on SAnews.gov.za.

 

 

 

US trade court blocks Trump's sweeping tariffs. What happens now?

A US federal court has blocked President Donald Trump's sweeping tariffs, in a major blow to a key component of his economic policies.

 

The Court of International Trade ruled that an emergency law invoked by the White House did not give the president unilateral authority to impose tariffs on nearly every country.

 

The Manhattan-based court said the US Constitution gave Congress exclusive powers to regulate commerce with other nations and this was not superseded by the president's remit to safeguard the economy.

 

The Trump administration said it would appeal within minutes of the ruling.

 

 

Who brought the court case?

The ruling was based on two separate cases. The nonpartisan Liberty Justice Center brought a case on behalf of several small businesses that import goods from countries targeted by the duties, while a coalition of US state governments also challenged the import taxes.

 

The two cases mark the first major legal challenges to Trump's so-called "Liberation Day" tariffs.

 

A three-judge panel ruled that the International Emergency Economic Powers Act (IEEPA), a 1977 law that Trump cited to justify the tariffs, does not give him the power to impose the sweeping import taxes.

 

The court also blocked a separate set of levies the Trump administration imposed on China, Mexico and Canada, in response to what it said was the unacceptable flow of drugs and illegal immigrants into the US.

 

However, the court was not asked to address tariffs imposed on some specific goods like cars, steel and aluminium, which fall under a different law.

 

What has the reaction been so far?

The White House has criticised the ruling, though Trump has not yet commented directly.

 

"It is not for unelected judges to decide how to properly address a national emergency," White House deputy press secretary Kush Desai said in a statement.

 

"President Trump pledged to put America First, and the administration is committed to using every lever of executive power to address this crisis and restore American greatness," he added.

 

But Letitia James, the attorney general of New York, one of 12 states involved in the lawsuit, welcomed the decision.

 

"The law is clear: no president has the power to single-handedly raise taxes whenever they like," Letitia James said.

 

"These tariffs are a massive tax hike on working families and American businesses that would have led to more inflation, economic damage to businesses of all sizes, and job losses across the country if allowed to continue," she added.

 

Global markets have responded positively to the ruling. Stock markets in Asia rose on Thursday morning, US stock futures also jumped and the US dollar made gains against safe-haven peers, including the Japanese yen and Swiss franc.

 

 

What happens now?

The White House has 10 days to complete the bureaucratic process of halting the tariffs, although most are currently suspended anyway.

 

The case needs to go through the appeals process. If the White House is unsuccessful in its appeal, the US Customs and Border Protection Agency (CBP) will then issue directions to its officers, John Leonard, a former top official at the CBP, told the BBC.

 

That said, a higher court might be more Trump-friendly.

 

But if all courts do uphold the ruling, businesses who've had to pay tariffs will receive refunds on the amounts paid, with interest. These include the so-called reciprocal tariffs, which were lowered to 10% across the board for most countries and were raised to 145% on Chinese products, now 30%.

 

Mr Leonard said there will not be any changes at the border for now and tariffs will still have to be paid.

 

Market reactions showed, partly, investors "exhaling after weeks of white-knuckle volatility sparked by trade war brinkmanship," Stephen Innes at SPI Asset Management wrote in a commentary.

 

Mr Innes said US judges gave a clear message: "The Oval Office isn't a trading desk, and the Constitution isn't a blank cheque."

 

"Executive overreach may finally have found its ceiling. And with it, a fresh dose of macro stability – at least until the next headline."

 

Paul Ashworth, from Capital Economics, said the ruling "will obviously throw into disarray the Trump administration's push to quickly seal trade 'deals' during the 90-day pause from tariffs".

 

He predicted other countries "will wait and see" what happens next.

 

How did we get here?

On 2 April, Trump unveiled an unprecedented global tariff regime by imposing import taxes on most of the US's trading partners.

 

A 10% baseline tariff was placed on most countries, along with steeper reciprocal tariffs handed down to dozens of nations and blocs, including the EU, UK, Canada, Mexico and China.

 

Trump argued that the sweeping economic policy would boost American manufacturing and protect jobs.

 

Global markets have been thrown into disarray since the announcement and later after Trump's reversals and pausing of tariffs as foreign governments came to the negotiating table.

 

Adding to the turmoil was a prolonged trade war with China, as the world's two economic superpowers engaged in a back-and-forth raising of tariffs, which reached a peak with a 145% US tax on Chinese imports, and a 125% Chinese tax on US imports.

 

The world's two biggest economies have since agreed to a truce, with US duties on China falling to 30%, and Chinese tariffs on some US imports reducing to 10%.

 

The UK and US have also announced a deal on lower tariffs between the two governments.

 

Trump threatened a 50% tariff from June on all goods coming from the EU after expressing frustration with the pace of trade talks with the bloc - but then agreed to extend the deadline by more than a month after EU Commission chief Ursula von der Leyen said more time was needed.-BBC

 

 

 

 

 

Hailey Bieber's makeup brand sold to e.l.f. in $1bn deal

Model Hailey Bieber is selling her make-up brand Rhode to e.l.f. Beauty in a deal worth up to $1bn (£740m).

 

The 28-year-old, who is married to singer Justin Bieber, co-founded the line of skincare products, which includes blush and lip tints, in 2022, giving it her middle name.

 

It has expanded rapidly thanks in part to its online popularity, reporting more than $200m in net sales over the 12 months to March, with plans of being offered in Sephora stores in the US and UK this year.

 

In its announcement of the deal, buyer e.l.f. Beauty called the business "a beautiful brand that we believe is ready for rocketship growth".

 

 

e.l.f - short for eyes, lips and face - is paying $800m in cash and stock for the company, with a further $200m payout possible depending on future sales growth.

 

The deal is expected to close later this year.

 

Ms Bieber, who will stay with the company as chief creative officer, wrote on social media that the deal marked the "next chapter" for the brand. Other co-founders and current executives will continue to lead the business after the sale.

 

"Our partnership with e.l.f. Beauty marks an incredible opportunity to elevate and accelerate our ability to reach more of our community with even more innovative products and widen our distribution globally," she said in the business announcement.

 

The brand has become particularly popular on social media, with viral TikToks about their pocket blush and "peptide lip treatments".

 

Ms Bieber's decision to launch a beauty line follows in the footsteps of other celebrities, such as Rihanna, whose Fenty Beauty was worth nearly $3bn last year, according to Forbes estimates.

 

It also follows Kylie Jenner, who sold a stake of her cosmetics company in 2020 to Coty for $600m, and Selena Gomez's Rare Beauty line, which earned her a place on the Bloomberg billionaire index last year.

 

Overall in 2023, celebrity beauty brands generated more than $1bn in sales in 2023, according to a Nielsen IQ report.

 

Ms Bieber is the daughter of actor Stephen Baldwin and niece of actors Alec, William and Daniel Baldwin. She had her first child with her husband last year.

 

In an interview for a Vogue cover story published before the announcement of the deal, she said the success of the Rhode brand had been a surprise.

 

"In my wildest dreams, it's already gone beyond what I would've hoped for," she said.-BBC

 

 

 

 

 

 

 

Nvidia revenues surge despite tariff uncertainty

Nvidia reported a huge boost to revenues in the first quarter of the year, with sales of its chips rising more than 69% from a year ago.

 

"Global demand for Nvidia's AI infrastructure is incredibly strong," chief executive, Jensen Huang said in a press release, adding that he expected demand for AI computing to "accelerate".

 

The US company's sophisticated chips have played a central role in equipment made for artificial intelligence (AI) computing.

 

Nvidia was the last major tech firm to report during a strong earnings season for tech companies whose shares have surged in recent weeks.

 

 

Tech stocks, including Nvidia, had previously plummeted in April amid uncertainty over US President Trump's tariff policies.

 

In April, Washington restricted the sale of Nvidia's China-specific "H20" chips, which led to a drop in demand.

 

Nvidia said it had incurred a $4.5bn charge as a result. However, Nvidia's initial forecast for the impact on business was significantly higher - at $5.5bn.

 

US plans

Changes in global trade policies also loomed large in the company's forecast.

 

New export controls and tariffs have increased the complexity and cost of its supply chain, and may continue to do so, the company said.

 

Nvidia said it planned to increase manufacturing in the United States to help tackle the issue.

 

Last week, Mr Huang criticised the US rules blocking exports of advanced computing chips to China.

 

The controls were put in place following concerns that chip technology with potential military uses could be deployed by companies loyal to China's communist party.

 

Mr Huang blasted the policies as a "failure" and said they were backfiring against American companies.

 

Meanwhile, the Financial Times reported Wednesday that President Trump was ordering US chip software suppliers to stop selling their products to Chinese chip companies.

 

The move is intended to make it more difficult for China to develop its own advanced chips that would compete with Nvidia's, the paper said.

 

"The China export restrictions underscore the immediate pressure from geopolitical headwinds," according to Emarketer analyst Jacob Bourne.

 

Sustaining its dominant position would require Nvidia to navigate "an increasingly complex landscape of geopolitical, competitive, and economic challenges," he added.

 

At the same time, Nvidia has benefitted from the emergence of new buyers among governments in the Gulf states.

 

Earlier this month, Mr Huang travelled with President Trump to the Middle East where the company said it would sell hundreds of thousands of its AI chips in Saudi Arabia.

 

"Countries around the world are recognizing AI as essential infrastructure — just like electricity and the internet — and Nvidia stands at the center of this profound transformation," Mr Huang wrote after the earnings announcement.

 

Sales in Nvidia's key data centre business grew 73% on an annual basis.

 

 

BBC

 

 

 

 

Somalia: Minister Beene-Beene Launches Second Edition of Somalia's Economic Forecast Report

MOGADISHU - Somalia's Federal Minister of Planning, Investment and Economic Development, H.E. Mahmoud Abdirahman (Beene-beene), officially opened the second edition of Somalia's national economic forecast report at a ceremony held in Mogadishu on Tuesday.

 

The event marks a significant step in promoting transparency, evidence-based planning, and national ownership in the assessment of Somalia's economic realities. The report, jointly developed by all relevant government institutions, provides a comprehensive overview of the country's economic trajectory.

 

"The goal of this forecast is to produce a unified, realistic economic report that genuinely reflects the current state of Somalia's economy," said Minister Beene-beene during the opening remarks.

 

Minister Beene-beene emphasized that the document is free from exaggeration or political bias and openly identifies both the strengths and weaknesses of Somalia's economic landscape.

 

"This is not a promotional piece," he noted. "It clearly outlines where we are doing well and where we are falling short. That honesty is crucial if we are to build a resilient and inclusive economy."

 

The Minister added that all federal agencies had input in the report, ensuring that it reflects shared data and consensus, which is essential for coordination across different sectors and institutions.

 

The economic forecast is expected to play a central role in guiding both government decision-making and development partner engagement, particularly as Somalia works to finalize key reforms and transition from debt relief under the Heavily Indebted Poor Countries (HIPC) Initiative.

 

The release of the report also comes amid growing optimism over Somalia's economic stabilization and reform progress, especially in public financial management, tax collection, and investment climate improvements.

 

However, Beene-beene cautioned that the report also highlights areas requiring urgent policy action, including unemployment, inflation control, and vulnerability to external shocks such as climate change and global commodity price fluctuations.

 

The Ministry of Planning has committed to publishing regular updates of the economic forecast, making it an annual fixture in Somalia's national development dialogue. The report will also be translated into Somali and disseminated among civil society and regional administrations to promote inclusive access to economic data.

 

This latest publication reaffirms the Somali government's commitment to data-driven governance, fostering accountability, and strengthening economic resilience. As Somalia continues its journey toward sustainable development and full reintegration into the global economy, such initiatives remain crucial.

 

Read the original article on Radio Dalsan.-BBC

 

 

 

 

Nigerian Govt Targets 24-Hour Internet, Power Supply to Special Institutions

"University of Abuja is one of the beneficiaries. You have a 3.3 megahertz mini-grid here, and everybody can attest to it now that you have 24-hour electricity supply."

 

The federal government has inaugurated fibre-to-home to hostels at the University of Abuja (UniAbuja) as part of plans to ensure a 24-hour internet supply to special institutions nationwide before the end of 2026.

 

The Minister of Education, Maruf Alausa, said at an event in Abuja on Wednesday that the federal government was determined to provide the enabling environment for teaching and learning to thrive.

 

Mr Alausa said that UniAbuja was a special institution, now enjoying 24-hour internet supply, adding that other special institutions would enjoy the same before the end of 2026.

 

"President Bola Tinubu is energising institutions. We have special institutions in the country today enjoying 24-hour electricity via the presidential renewable mini-grid project, the solarisation project.

 

"University of Abuja is one of the beneficiaries. You have a 3.3 megahertz mini-grid here, and everybody can attest to it now that you have 24-hour electricity supply.

 

"The president is not stopping there. Before the end of next year, literally all the special institutions will have mini-grid. You will all enjoy 24-hour electricity supply," he said.

 

It is expected that the regular power supply would support the internet facility.

 

The Minister of Communications, Innovation and Digital Economy, Bosun Tijani said that UniAbuja was the first of the seven universities in the first phase of the pilot scheme.

 

Mr Tijani said that by the end of July, the seven institutions would have been connected.

 

"This initiative we are launching here today is the first of the seven in a pilot scheme, and by the end of July, we would have connected the seven universities.

 

"Galaxy Backbone has the infrastructure in place already; all we are doing is to take the fibre to hostels.

 

"We have taught it to be important that Nigerian university students cannot continue to learn without access to meaningful connectivity.

 

"When we give you this access, that not only are you going to be better in what you are learning, but you are actually going to create the future that our president is asking that we create as a nation," he said.

 

The Acting Vice-Chancellor of the university, Patricia Lar, in her welcome address, lauded the project, adding that it will benefit the school community.

 

"It is a special initiative that is going to create opportunities for students of all economic status to access data to be able to use for knowledge and education and to feed their creativity with ease.

 

"We are grateful for deploying fibre to our hostels. This also works with the solar power backup that has been installed on our campus.

 

The President, Medical Students Association of the institution, Faith David, who spoke on behalf of the students, expressed delight with what the government had done by connecting their hostels to fibre for Internet access.

 

"We appreciate both ministers for this initiative. We are enjoying 24-hour power and now our hostels have been connected to internet to make learning easier for us," she said.

 

(NAN)

 

Read the original article on Premium Times.

 

 

 

 

 

 

 


 


 


 Invest Wisely!

Bulls n Bears 

 

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INVESTORS DIARY 2025

 


Company

Event

Venue

Date & Time

 


 

 

 

 

 


 

 

 

 

 


 

 

 

 

 


Companies under Cautionary

 

 

 


 

 

 

 


CBZH

GetBucks

EcoCash

 


Padenga

Econet

RTG

 


Fidelity

TSL

FMHL

 


 

 

 

 


 <mailto:info at bulls.co.zw> 

 


 

 


DISCLAIMER: This report has been prepared by Bulls ‘n Bears, a division of Faith Capital (Pvt) Ltd for general information purposes only and does not constitute an offer to sell or the solicitation of an offer to buy or subscribe for any securities. The information contained in this report has been compiled from s believed to be reliable, but no representation or warranty is made or guarantee given as to its accuracy or completeness. All opinions expressed and recommendations made are subject to change without notice. Securities or financial instruments mentioned herein may not be suitable for all investors. Securities of emerging and mid-size growth companies typically involve a higher degree of risk and more volatility than the securities of more established companies. Neither Faith Capital nor any other member of Bulls ‘n Bears nor any other person, accepts any liability whatsoever for any loss howsoever arising from any use of this report or its contents or otherwise arising in connection therewith. Recipients of this report shall be solely responsible for making their own independent investigation into the business, financial condition and future prospects of any companies referred to in this report. Other  Indices quoted herein are for guideline purposes only and d from third parties.

 


 

 


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