<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/IJVJN3SG2BNFJFNACAXCPMV3RA-820x547.jpg" alt="" class="wp-image-498805" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/IJVJN3SG2BNFJFNACAXCPMV3RA-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/IJVJN3SG2BNFJFNACAXCPMV3RA-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/IJVJN3SG2BNFJFNACAXCPMV3RA-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/IJVJN3SG2BNFJFNACAXCPMV3RA-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/IJVJN3SG2BNFJFNACAXCPMV3RA-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/IJVJN3SG2BNFJFNACAXCPMV3RA-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A general view of the Makola market, one of the country&#8217;s largest trading centres in Accra, Ghana March 26, 2022. Picture taken March 26, 2022. REUTERS/Francis Kokoroko/File Photo</figcaption></figure>



ACCRA, June 20 (Reuters) &#8211; Ghana has reached an agreement in principle with its bondholders for the restructuring of $13 billion worth of international debt, three sources told Reuters on Thursday, on the heels of a deal finalised with official creditors earlier this month.



The deal will see bondholders take a haircut on principal of up to 37% and maturity of the bonds lengthened, two of the sources said.



The West African gold and cocoa producing nation defaulted on most of its $30 billion in external debt in 2022, under the strain of the COVID-19 pandemic, the war in Ukraine and higher global interest rates and surging debt.



Like Zambia, Ghana also signed up for debt treatment under the G20 Common Framework, a process designed to facilitate quick debt overhauls and to bring the newest large bilateral lender, China, into the process.



Zambia&#8217;s bondholders signed off on its restructuring earlier this month, after the southern African copper producer became the first African country to default during the pandemic.



For Ghana, &#8220;things are pretty close. We can expect an announcement by next week,&#8221; one source said, asking not to be named because they were not authorised to speak to media.



The other two sources said the announcement could come as soon as Friday.



Ghana&#8217;s finance ministry and the Paris Club, an alliance of creditor nations, could not immediately be reached for comment due to the late hour.



Ghana started formal talks with two groups of bondholders in mid-March &#8211; a group of Western asset managers and hedge funds and another one including regional African banks.



The negotiations, however, stalled in April after the proposed deal failed to meet the International Monetary Fund&#8217;s (IMF) debt sustainability analysis requirements, forcing both sides to regroup to find a suitable solution.



The three sources said the deal had since fit into a revised IMF debt framework on Ghana shared with bondholders earlier, resulting in the agreement in principle.



The world&#8217;s No.2 cocoa producer earlier this month agreed a pact with its official creditor committee to formalise a debt restructuring deal reached in January.



The outlines of the agreement paved the way for the IMF executive board to hold a June 28 meeting on Ghana to consider a second review of its $3 billion loan, three-year package and the release of the next tranche of $360 million.



(Editing by Alessandra Prentice, Shri Navaratnam and Jamie Freed)

FILE PHOTO: FILE PHOTO: People make trade in Accra

Ghana, bondholders reach agreement in principle to restructure $13 bln debt, sources say

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/SU6XM3FG2VIQ7PJBFXDGABCTFM-820x547.jpg" alt="" class="wp-image-497815" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/SU6XM3FG2VIQ7PJBFXDGABCTFM-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/SU6XM3FG2VIQ7PJBFXDGABCTFM-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/SU6XM3FG2VIQ7PJBFXDGABCTFM-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/SU6XM3FG2VIQ7PJBFXDGABCTFM-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/SU6XM3FG2VIQ7PJBFXDGABCTFM-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/SU6XM3FG2VIQ7PJBFXDGABCTFM-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Customers peruse goods at Makola market in Accra, Ghana, June 15, 2015. REUTERS/Francis Kokoroko/File Photo</figcaption></figure>



ACCRA, June 18 (Reuters)&nbsp;&#8211;&nbsp;Ghana&#8217;s economy grew 4.7% year-on-year in the first quarter of 2024, the country&#8217;s statistics agency said on Tuesday.



Samuel Kobina Annim, the government statistician said the first quarter growth rate was driven by strong performance in industry and services sectors.



The gold-, oil- and cocoa-producer and its bondholders will restart talks this week to hash out a debt restructuring deal on $13 billion of international bonds.



The west African nation defaulted on most of its $30 billion in external debt in 2022, weighed by the COVID-19 pandemic, the war in Ukraine and rapid global interest rate hikes that boosted borrowing costs.



(Reporting by Christian Akorlie; Writing by Maxwell Akalaare Adombila Editing by Bate Felix)

Customers peruse goods at Makola market in Accra

Ghana’s economy grew 4.7% in the first quarter of 2024

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/FVASB46IHROJZMH44F6CQPKGAQ-820x547.jpg" alt="" class="wp-image-497812" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/FVASB46IHROJZMH44F6CQPKGAQ-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/FVASB46IHROJZMH44F6CQPKGAQ-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/FVASB46IHROJZMH44F6CQPKGAQ-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/FVASB46IHROJZMH44F6CQPKGAQ-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/FVASB46IHROJZMH44F6CQPKGAQ-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/FVASB46IHROJZMH44F6CQPKGAQ-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: The buildings of the central business district of Plateau are pictured ahead of the presidential elections in Abidjan, Ivory Coast October 27, 2020. Picture taken October 27, 2020. REUTERS/Luc Gnago</figcaption></figure>



ABIDJAN, June 18 (Reuters)&nbsp;&#8211;&nbsp;Ivory Coast expects a more than threefold increase to its oil output by 2027, boosted by recent oil and gas discoveries at the West African nation&#8217;s Baleine and Calao offshore fields, President Alassane Ouattara said on Tuesday.



The world&#8217;s top cocoa-producing nation is hoping to become a major regional oil and gas producer and regional energy hub.



Ouattara told a joint session of parliament that more than $15 billion is expected to be invested in the country&#8217;s oil sector, adding that output would grow to about 200,000 barrels per day (bpd) from 60,000 bpd by 2027.



&#8220;It will be a spectacular leap,&#8221; Ouattara said.



Italy&#8217;s Eni has said it would invest $10 billion in developing the Baleine field, which will take place in three phases from 2023 to 2027.



Certified reserves of the Baleine field, discovered by the Italian energy group in 2021, are estimated at 2.5 billion barrels of oil and 3.3 trillion cubic feet of natural gas.



The group announced its Calao discovery in March, with preliminary assessments indicating potential resources ranging between 1 billion and 1.5 billion barrels of oil.



Ivory Coast&#8217;s economic growth is forecast around 7% between 2024 and 2027, President Alassane Ouattara also said, adding that the country is expected to remain the economic powerhouse of the French-speaking West Africa region.



(Reporting by Loucoumane Coulibaly and Bate Felix; Writing by Anait Miridzhanian; Editing by Kirsten Donovan and David Goodman)

FILE PHOTO: The buildings of the central business district of Plateau are pictured ahead of the presidential elections in Abidjan

Ivory Coast expects threefold oil output increase by 2027

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/02/F4TO3YKQWNK6NCNXZJUQ2UEGC4-820x547.jpg" alt="" class="wp-image-423316" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/02/F4TO3YKQWNK6NCNXZJUQ2UEGC4-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/02/F4TO3YKQWNK6NCNXZJUQ2UEGC4-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/02/F4TO3YKQWNK6NCNXZJUQ2UEGC4-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/02/F4TO3YKQWNK6NCNXZJUQ2UEGC4-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/02/F4TO3YKQWNK6NCNXZJUQ2UEGC4-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/02/F4TO3YKQWNK6NCNXZJUQ2UEGC4-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A man walks past the International Monetary Fund (IMF) logo at its headquarters in Washington, U.S., May 10, 2018. REUTERS/Yuri Gripas/</figcaption></figure>



ACCRA, June 12 (Reuters)&nbsp;&#8211;&nbsp;Ghana&nbsp;has finalized&nbsp;a&nbsp;pact with its official creditor committee to&nbsp;formalise a debt restructuring deal agreed in January,&nbsp;smoothing the path towards a release of further funding from the International Monetary Fund,&nbsp;its finance ministry said on Wednesday.



The&nbsp;outlines of the agreement&nbsp;pave the way for approval by the&nbsp;IMF&#8217;s executive board for a&nbsp;second review of a $3 billion loan package and release of the next tranche of $360 million.



&#8220;The IMF Board&#8217;s approval should also trigger more financial assistance from our development partners, particularly the World Bank,&#8221; the finance ministry said in a statement.



The announcement confirms a Reuters report last week that a memorandum of agreement was about to be formalised.



Ghana is restructuring its debt to help it emerge from its worst economic crisis in a generation after defaulting on&nbsp;much of&nbsp;its overseas debt in 2022 amid soaring servicing costs.



Each creditor nation is now expected to sign the agreement individually, the ministry said, adding it would&nbsp;also bolster ongoing restructuring discussions with private creditors.



Ghana&#8217;s sovereign dollar bonds were little changed by 0837 GMT, with most issues trading between 50-51 cents on the dollar, a distressed level that suggests the market expects trims on private debt.



The financial terms of the agreement with official creditors remained unchanged from the deal agreed in January, the ministry said, adding it provided &#8220;significant debt service relief&#8221; during the period of the IMF-supported programme.



Ghana, the world&#8217;s second largest cocoa producer, is also facing cocoa delivery delays due to poor harvests, a move that could cut its income and compound debt distress



(Reporting by Maxwell Adombila Akalaare; Additional reporting by Libby George in London; Writing by Sofia Christensen and Duncan Miriri; Editing by Bernadette Baum)

FILE PHOTO: Man walks past the IMF logo at HQ in Washington

Ghana, creditor panel agree on debt restructuring, paving way for IMF cash

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/VHFMCME3UZO7DANJAKAOCLCA2U-820x547.jpg" alt="" class="wp-image-495905" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/VHFMCME3UZO7DANJAKAOCLCA2U-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/VHFMCME3UZO7DANJAKAOCLCA2U-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/VHFMCME3UZO7DANJAKAOCLCA2U-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/VHFMCME3UZO7DANJAKAOCLCA2U-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/VHFMCME3UZO7DANJAKAOCLCA2U-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/VHFMCME3UZO7DANJAKAOCLCA2U-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Nigeria&#8217;s President Bola Tinubu looks on after his swearing-in ceremony in Abuja, Nigeria May 29, 2023. REUTERS/Temilade Adelaja/File Photo</figcaption></figure>



ABUJA, June 12 (Reuters)&nbsp;&#8211;&nbsp;Nigeria&#8217;s President Bola Tinubu said on Wednesday economic reforms would continue despite increasing hardships that have fuelled public anger, and promised to send an executive bill to parliament soon to set a new minimum wage.



Tinubu, who came to power a year ago, removed a decades-old petrol subsidy that kept prices artificially low and devalued the currency, sending inflation soaring to 33.69% in April, its highest level in nearly three decades and eroding incomes.



In a television broadcast to mark Democracy Day, Tinubu acknowledged hardships caused by the reforms, which also include higher interest rates and the partial removal of electricity subsidies, but he said this would create a stronger foundation for future growth.



&#8220;Our economy has been in desperate need of reform for decades. It has been unbalanced because it was built on the flawed foundation of over-reliance on revenues from the exploitation of oil,&#8221; Tinubu said.



&#8220;As we continue to reform the economy, I shall always listen to the people and will never turn my back on you.&#8221;



Nigeria is grappling with the worst cost-of-living crisis in decades and labour unions last week suspended a strike called to pressure the government to agree a new monthly minimum wage.



The government has offered to double the minimum wage to 62,000 naira ($41.89) a month against labour demands of 250,000 naira, and Tinubu said his government had negotiated in good faith. The last minimum wage was set in 2019.



&#8220;We shall soon send an executive bill to the National Assembly to enshrine what has been agreed upon as part of our law for the next five years or less,&#8221; Tinubu said.



He did not say whether the bill would contain the government minimum wage proposal or a new figure.



Labour union leaders have said they would wait to hear back from Tinubu before deciding on next steps.



($1 = 1,480.0000 naira)



(Writing by MacDonald Dzirutwe; Editing by Jamie Freed)

FILE PHOTO: Nigeria’s President Bola Tinubu looks on after his swearing-in ceremony in Abuja

Nigeria’s president says economic reforms will continue despite hardships

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="550" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/WFQYVBPXURJ57NHQPRJRSOJRI4-820x550.jpg" alt="" class="wp-image-495374" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/WFQYVBPXURJ57NHQPRJRSOJRI4-820x550.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/WFQYVBPXURJ57NHQPRJRSOJRI4-300x201.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/WFQYVBPXURJ57NHQPRJRSOJRI4-134x90.jpg 134w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/WFQYVBPXURJ57NHQPRJRSOJRI4-768x515.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/WFQYVBPXURJ57NHQPRJRSOJRI4-1536x1031.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/WFQYVBPXURJ57NHQPRJRSOJRI4-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A general view shows Tata Steel Port Talbot steel production plant, ahead of its planned transition from blast furnace to electric arc furnaces, at Port Talbot, Wales, Britain, March 11, 2024. REUTERS/Toby Melville/File Photo</figcaption></figure>



LONDON, June 5 (Reuters)&nbsp;&#8211;&nbsp;A group of 10 West African countries has weighed into a debate over whether companies around the world should be allowed to use carbon offsets to cut emissions, arguing they are critical to attracting financing for climate and conservation efforts.



While some scientists and technical advisers have criticised offsets as undermining efforts to rein in climate change by permitting continued greenhouse gas emissions, others see them as a necessary tool to boost crucial finance.



In a letter to the Science-Based Targets initiative (SBTi), the world&#8217;s top corporate climate-target verifier, the 10 countries called on its trustees to ensure offsetting is included within net-zero guidance to companies.



The letter, signed by Burkina Faso, Cape Verde, Ivory Coast, Gambia, Guinea-Bissau, Guinea, Liberia, Mali, Senegal and Togo, said recent reports questioning the validity of offsetting emissions were the work of &#8220;misguided activists&#8221;.



There is growing debate over the ethics and efficacy of offsets, also called carbon credits, to excuse some corporate emissions. Offsets are generated by investing in projects that lower or prevent carbon emissions and can be traded.



On Wednesday, U.N. Secretary-General Antonio Guterres weighed into the fray, warning about &#8220;dubious carbon offsets that erode public trust while doing little or nothing to help the climate.&#8221;



&#8220;We need high integrity carbon markets that are credible and with rules consistent with limiting warming to 1.5 degrees. I also encourage scientists and engineers to focus urgently on carbon dioxide removal and storage – to deal safely and sustainably with final emissions from the heavy industries hardest to clean.&#8221;



The letter&#8217;s main author told Reuters that the lack of certainty in the SBTi&#8217;s guidance was damaging corporate confidence and slowing financing.



&#8220;The SBTi is, rightly or wrongly, the gatekeeper that can unlock finance from corporations around the world that wish to contribute to climate action &#8230; at the same time as (and not instead of) taking action to decarbonise their valuation,&#8221; said Ousmane Fall Sarr, coordinator of the West African Alliance on Carbon Markets and Climate Finance.



The SBTi&#8217;s current guidance only allows very limited use of renewable energy certificates which a company can use to reduce so-called Scope 2 emissions, those related directly to the energy it uses.



But SBTi&#8217;s board of trustees said on April 9 that, subject to certain rules and guidance, it would allow them for Scope 3 emissions, those associated with their supply chains, distribution and product use. This was welcomed by both companies and developing countries that are relying on carbon offset projects to generate cash.



Uncertainty remained, however, because the board had not followed SBTi&#8217;s normal procedure for policy-setting. SBTi has said it is reviewing the scientific research and debating the issue before making a final call.



In a statement to Reuters, it said it welcomed feedback from all stakeholders, and would open a public consultation once its research was complete.



<h2 class="wp-block-heading" id="h-no-alternative">&#8216;NO ALTERNATIVE&#8217;</h2>



The SBTi, formed by a coalition of non-profit organisations, is seen as a key player in global efforts to scale up the market for voluntary carbon credits by addressing quality concerns and ensuring they deliver the benefits they claim.



The United States added momentum on&nbsp;May&nbsp;28 by unveiling its own guidelines for voluntary carbon credits.



In their May 24 letter, the West African countries reminded the SBTi board of its pledge in April, which is still on its website. &#8220;To us, carbon markets is climate finance,&#8221; the letter said. &#8220;There is no alternative. We are at a pivotal moment.&#8221;



With climate financing still far below needed levels, the letter said offset revenues were crucial to supporting poor communities, encouraging conservation, making the transition to clean energy and adapting to the conditions of a warmer world.



The OECD has said poor nations&#8217; actual climate investment needs could total $1 trillion per year by 2025.



Ousmane said the lack of clarity on offsets would also hold up country efforts to calculate and update their national climate plans ahead of the COP29 United Nations climate summit in November in Baku, Azerbaijan.



Countries must update these &#8220;nationally determined contributions&#8221; before next year&#8217;s COP30 summit in Brazil, but are being encouraged to submit them this year.



(Reporting by Virginia Furness in London; Editing by Katy Daigle, Simon Jessop, Alexander Smith and Rod Nickel)

FILE PHOTO: Views of Tata Steel Port Talbot steel production plant in Port Talbot, Wales

West African nations call for firms to be able to offset carbon

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="615" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/ZHFRG3BTB5JXRNXZVXU4QXPJNI-820x615.jpg" alt="" class="wp-image-493619" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/ZHFRG3BTB5JXRNXZVXU4QXPJNI-820x615.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/ZHFRG3BTB5JXRNXZVXU4QXPJNI-300x225.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/ZHFRG3BTB5JXRNXZVXU4QXPJNI-120x90.jpg 120w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/ZHFRG3BTB5JXRNXZVXU4QXPJNI-768x576.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/ZHFRG3BTB5JXRNXZVXU4QXPJNI-1536x1152.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/ZHFRG3BTB5JXRNXZVXU4QXPJNI-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A member of the Nigeria Labour Congress dances in front of the domestic airport which has been shut down as Nigeria&#8217;s main labour unions called for an indefinite strike from Monday after failing to agree to a new minimum wage with the government, in Lagos, Nigeria. June 3, 2024.REUTERS/Seun Sanni</figcaption></figure>



LAGOS/ABUJA, June 3 (Reuters)&nbsp;&#8211;&nbsp;Nigeria&#8217;s main labour unions on Monday shut down the national grid and disrupted airline operations across the country as they began an indefinite strike over the government&#8217;s failure to agree a new minimum wage.



This strike is the fourth embarked upon by the Nigerian Labour Congress (NLC) and the Trade Union Congress (TUC), two of the country&#8217;s biggest unions, since President Bola Tinubu took office last year.



The Transmission Company of Nigeria (TCN) said union members drove away operators at the country&#8217;s power control rooms and shut down at least six substations, which eventually shut the national grid at 02:19 am (0119 GMT).



Nigerian airline Ibom Air said it was suspending flights until further notice due to the strike, while another, United Nigeria, said airports across the country have been shut down and that striking workers had permitted none of its flights to operate.



Electricity and aviation unions said in a statement on Monday they had directed their workers to withdraw their services in compliance with the indefinite strike.



Since taking office Tinubu has embarked on Nigeria&#8217;s boldest reforms, which has fuelled a rise in inflation to an almost 30-year high and worsened a cost-of-living crisis in Africa&#8217;s most populous nation.



He has been under pressure from unions to offer relief to households and small businesses after scrapping subsidies on petrol, which kept fuel cheap but cost the government $10 billion last year.



Unions declared an indefinite strike on Friday after talks for a new minimum wage meant to cushion the impact of reforms collapsed. They said the strike would last until a new minimum wage was in place.



The TCN said it was making effort to recover and stabilize the national grid, but unions were obstructing grid recovery nationwide.



Unions have also demanded a reversal of an electricity tariff hike effected last month for better-off consumers who use the most power, as the government tries to wean the economy off subsidies.



On Thursday, Nigeria&#8217;s privatisation body said the country had secured a World Bank loan of $500 million for its electricity sector.



(Writing by Chijioke Ohuocha; Editing by David Goodman and Jan Harvey)

Nigerian unions shut down power grid, disrupt airlines with strike over minimum wage

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/3K2CS37WYNNUVIVKGJN5PCM5CM-820x547.jpg" alt="" class="wp-image-430849" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/3K2CS37WYNNUVIVKGJN5PCM5CM-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/3K2CS37WYNNUVIVKGJN5PCM5CM-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/3K2CS37WYNNUVIVKGJN5PCM5CM-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/3K2CS37WYNNUVIVKGJN5PCM5CM-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/3K2CS37WYNNUVIVKGJN5PCM5CM-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/3K2CS37WYNNUVIVKGJN5PCM5CM-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Nigerian President Bola Tinubu arrives for the closing session of the New Global Financial Pact Summit, Friday, June 23, 2023 in Paris, France. Lewis Joly/Pool via REUTERS/File Photo</figcaption></figure>



LAGOS, May 30 (Reuters)&nbsp;&#8211;&nbsp;Nigerian Josephine Akiga looks around her empty restaurant in Abuja, where a sole customer sits eating, longing for the days when the place was filled with people.



Business has been so tough since President Bola Tinubu took office a year ago that she sometimes lets customers pay what they have for a meal just to keep business ticking along.



&#8220;When &#8230; you have not sold anything since morning, it&#8217;s better to have that money than to allow the person to go,&#8221; said Akiga. &#8220;So you just ask the person to sit and then give him food for the money he has.&#8221;



Since taking office in May last year, Tinubu has implemented reforms including slashing fuel and electricity subsidies and devaluing the naira currency twice NGN=D1 to try to increase investment and boost output. He says the policies are necessary to put Nigeria on a long-term growth path.



But the economy is growing well short of the 6% annual expansion targeted by Tinubu, while the reforms have driven inflation to a 28-year high, worsening a cost-of-living crisis.



Analysts&nbsp;say&nbsp;economic hardship&nbsp;is&nbsp;also fuelling crime which in turn is hurting people&#8217;s livelihoods.



Bismarck Rewane, a prominent economic analyst who was appointed to Tinubu&#8217;s economic council in March, agreed with the need for economic reforms but said more attention should have been paid to their implementation.



&#8220;The reforms came too quickly but there was no concrete plan to deal with the impact these reforms would have on the people,&#8221;&nbsp;he said.



The end of the fuel subsidy, which for decades made petrol very cheap for Nigerians, has hit people particularly hard. Petrol is widely used in the country to power not only cars but also generators for small businesses and homes.



Anthony Idowu, a 47-year-old bank employee, said the cost of filling his car had nearly quadrupled to 36,000 naira ($30) since the petrol subsidy was removed&nbsp;last year.



He now runs his petrol generator at home for only four hours a day to save money even if it means sleeping without a fan in the sweltering heat of Lagos, he said.



<h2 class="wp-block-heading" id="h-vicious-cycle">VICIOUS CYCLE</h2>



The government has also been criticised for not doing enough to sort out the country&#8217;s security problem, which&nbsp;some people&nbsp;say is affecting their livelihoods.&nbsp;The government insists the security situation is improving, saying it has eliminated thousands of armed gang members and Islamist fighters.



Abdulrasheed Isa Gora, a 32-year-old petty trader and farmer in the Birnin Magaji area of northwest Zamfara state, said attacks by armed gangs were on the rise, making it difficult to farm or travel to other communities to sell his wares.



Earlier this week, he and members of his community paid 50 million naira ($42,000) to free 18 family members and some residents who were kidnapped on March 10. Some 40 others remain missing, he said.



&#8220;We are living by God&#8217;s favour, not the government&#8217;s,&#8221; said Gora.



Nigeria has long struggled with insurgency and attacks by armed gangs who kidnap for ransom in the north, where poverty levels are higher.



But data from the Armed Conflict Location &amp; Event Data Project showed the number of kidnappings doubled to 7,086 in Tinubu&#8217;s first year in office.



Security analysts say economic hardship and the allure of ransom payments are driving mass abductions.



&#8220;That could well be the case,&#8221; said Information Minister Mohammed Idris, when contacted by Reuters.



&#8220;That is why the president is encouraging everyone not to pay ransom because when you pay ransom you are going to continue on this cycle of violence,&#8221; he said.



Back in the restaurant, it was economic uncertainty that was at the&nbsp;top&nbsp;of Akiga&#8217;s worries.



From daily sales of 100,000 naira ($84) a year ago, she was hardly making 20,000 naira ($17) now and that was quickly used up buying more stock.



&#8220;Any money you make you take it back to the market,&#8221; she said.



(Reporting by MacDonald Dzirutwe in Lagos and Abraham Achirga in Abuja, additional reporting by Ahmed Kingimi in Maiduguri; Editing by Ana Nicolaci da Costa)

FILE PHOTO: Summit for a new global financing pact takes place in Paris

Hardship, insecurity cloud Nigeria president’s first year in office

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/VFKU2JNBTBIDVNPMOMLDRAUIO4-820x547.jpg" alt="" class="wp-image-491240" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/VFKU2JNBTBIDVNPMOMLDRAUIO4-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/VFKU2JNBTBIDVNPMOMLDRAUIO4-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/VFKU2JNBTBIDVNPMOMLDRAUIO4-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/VFKU2JNBTBIDVNPMOMLDRAUIO4-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/VFKU2JNBTBIDVNPMOMLDRAUIO4.jpg 960w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Pedestrians walk in front of Ghana&#8217;s central bank building in Accra, Ghana, November 16, 2015. REUTERS/Francis Kokoroko</figcaption></figure>



ACCRA, May 27 (Reuters)&nbsp;&#8211;&nbsp;Ghana&#8217;s central bank held its main interest rate steady at 29%&nbsp;GHCBIR=ECI&nbsp;for the second meeting in a row&nbsp;on Monday,&nbsp;as a slide in the local cedi currency has slowed inflation&#8217;s decline.



The West African cocoa, gold and oil producer,&nbsp;which defaulted on most of its external borrowing in December 2022,&nbsp;has been restructuring its debts as it tries to emerge from its worst economic crisis in a generation.



&#8220;The latest forecast shows a slightly elevated inflation profile on account of recent exchange rate pressures,&#8221; Bank of Ghana Governor Ernest Addison told a news conference, adding that inflation was expected to fall to between 13% and 17% by the end of 2024.



Consumer inflation fell marginally last month to 25.0% year-on-year GHCPIY=ECI from 25.8% in March, but it remains well above the central bank&#8217;s 8% target with a margin of error of 2 percentage points either side.



Addison said the cedi&nbsp;GHS=&nbsp;had been partly hurt by speculative foreign currency buying but that the central bank had enough reserves to support the market.



Godfred Alufar Bokpin, professor of finance at the University of Ghana, said there was not much scope to ease monetary policy given current risks to the cedi and a general election later this year.



Last week Ghana received a draft memorandum of understanding from its bilateral creditors including China and France to restructure $5.4 billion of debt, which it is currently reviewing before signing.



Once agreed, the document will pave the way for the International Monetary Fund&#8217;s executive board to meet next month to approve a disbursement of $360 million under the country&#8217;s $3 billion bailout programme, which Addison said helped clear uncertainty.



&#8220;We are very happy and quite certain that the Fund meeting will happen in June,&#8221; Addison told Reuters on Monday.



In addition to the restructuring memorandum with official creditors, Ghana is seeking a deal with holders of about $13 billion in international bonds. It has&nbsp;restructured most of its local debt.



(Writing by Anait Miridzhanian; Editing by Bate Felix, Alexander Winning and Andrew Heavens)

VFKU2JNBTBIDVNPMOMLDRAUIO4

Ghana central bank holds rate as currency slide slows disinflation

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="555" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/03/QHXVUHX3MJJHRDRSFYCEORRMQ4-2-1-820x555.jpg" alt="" class="wp-image-469888" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/03/QHXVUHX3MJJHRDRSFYCEORRMQ4-2-1-820x555.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/QHXVUHX3MJJHRDRSFYCEORRMQ4-2-1-300x203.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/QHXVUHX3MJJHRDRSFYCEORRMQ4-2-1-133x90.jpg 133w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/QHXVUHX3MJJHRDRSFYCEORRMQ4-2-1-768x520.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/QHXVUHX3MJJHRDRSFYCEORRMQ4-2-1-1536x1040.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/QHXVUHX3MJJHRDRSFYCEORRMQ4-2-1-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">People walk past the Bank of Ghana in Accra, Ghana, November 28, 2018. REUTERS/Zohra Bensemra/File Photo</figcaption></figure>



ACCRA, May 24 (Reuters)&nbsp;&#8211;&nbsp;Ghana has agreed a memorandum of understanding (MoU) with its bilateral creditors, including China and France, to restructure $5.4 billion of debt, two government sources said on Friday, one-and-a-half years after the West African country defaulted.



The MoU paves the way for the executive board of the International Monetary Fund (IMF) to approve the disbursement of $360 million under Ghana&#8217;s $3 billion, three-year bailout programme, which is expected next month.



Once signed, the agreement would form the basis of a deal to restructure loans its official creditors, including China and France under the Paris Club of creditor, agreed in January.



Ghana&#8217;s Finance Minister Mohammed Amin Adam is due to hold a press briefing on Friday morning.



Ghana was the second country in Africa to default on most of its $30 billion external debt during the pandemic as the exporter of gold, cocoa and oil battled to emerge from its worst economic crisis in a generation. The first country was Zambia.



Ghana&#8217;s economy has since started to recover, with inflation easing from 54.1% in December 2022 to 25% in April 2024 and 2023 growth of 2.9% exceeding the IMF&#8217;s 2.3%.



Together with Zambia and Ethiopia, the world&#8217;s second-biggest cocoa producer is reworking its debt under the G20 Common Framework, a process set up during the pandemic to speed up debt overhauls.



However, progress has been slow, holding back the countries&#8217; economic recoveries and access to much needed overseas loans, aid and investment.



The IMF declared Ghana&#8217;s debt unsustainable in its Debt Sustainability Analysis (DSA) and is aiming for the country to restore itself to a &#8220;moderate&#8221; risk of debt distress by 2028.



This would bring Ghana&#8217;s public debt-to-GDP ratio from 88.1% at the end of 2022 to 55% by 2028.



Terms with official creditors will be of interest to Ghana bondholders, who are next in line for a deal, as they will seek an equitable solution under the comparability of treatment principle, a key element of the Common Framework for debt restructuring.



Ghana did in April find common ground with some of its biggest bondholders, including Western asset managers and hedge funds as well as regional African banks. But the IMF said that the interim deal was outside the DSA threshold and needed to be tweaked.



The regional African banks had also rejected parts of the deal, including an option to retain the original value of the bonds with a longer maturity and lower coupon.



The government said it was working to satisfy the IMF&#8217;s requirements.



The country concluded a domestic debt restructuring in October, during which 206 billion Ghanaian cedi ($17.5 billion) was swapped for longer-dated, lower-interest debt, resulting in 61 billion Ghanaian cedi of savings, then Finance Minister Ken Ofori-Atta said.



(Reporting by Maxwell Akalaare Adombila; Writing by Sofia Christensen, Karin Strohecker and Portia Crowe; Editing by Alison Williams and Subhranshu Sahu)

People walk past the Bank of Ghana in Accra

Ghana seals debt restructuring deal with official creditors, sources say

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/GettyImages-1763140582-820x547.jpg" alt="" class="wp-image-486652" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/GettyImages-1763140582-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/GettyImages-1763140582-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/GettyImages-1763140582-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/GettyImages-1763140582-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/GettyImages-1763140582-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/GettyImages-1763140582-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">SAINT PETERSBURG, RUSSIA &#8211; 2023/11/02: The national flag of the Federal Republic of Nigeria as a participating country at the 12th St. Petersburg International Gas Forum (SPIGF 2023). (Photo by Maksim Konstantinov/SOPA Images/LightRocket via Getty Images)</figcaption></figure>



ABUJA, May 21 (Reuters)&nbsp;&#8211;&nbsp;Nigeria&#8217;s central bank raised its benchmark lending rate&nbsp;by 150 basis points to&nbsp;26.25% from 24.75%&nbsp;NGCBIR=ECI, in a decision announced on Tuesday.



Analysts had widely predicted another hike given inflation has continued to soar and the local naira currency&nbsp;NGN=D1&nbsp;has been highly volatile.



The decision is the third rate increase this year, after hikes of 200 basis points in March and 400 basis points in February.



Inflation&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL8N3HI4A6&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">reached</a>&nbsp;a 28-year high of 33.69% year-on-year in April&nbsp;NGCPIY=ECI, spurred by the government slashing petrol and electricity subsidies and twice devaluing the naira.



(Reporting by Chijioke Ohuocha, Elisha Bala-Gbogbo, MacDonald DzirutweEditing by Bate Felix)

The national flag of the Federal Republic of Nigeria as a

Nigeria’s central bank raises benchmark rate to 26.25%

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="541" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/XHKXHIOUFZIJZAGULBLYUNLOQA-1-820x541.jpg" alt="" class="wp-image-487399" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/XHKXHIOUFZIJZAGULBLYUNLOQA-1-820x541.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/XHKXHIOUFZIJZAGULBLYUNLOQA-1-300x198.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/XHKXHIOUFZIJZAGULBLYUNLOQA-1-136x90.jpg 136w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/XHKXHIOUFZIJZAGULBLYUNLOQA-1-768x507.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/XHKXHIOUFZIJZAGULBLYUNLOQA-1-1536x1014.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/XHKXHIOUFZIJZAGULBLYUNLOQA-1-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Workers offload boxes with Oxford/AstraZeneca vaccines as the country receives its first batch of coronavirus disease (COVID-19) vaccines under COVAX scheme, at the international airport of Abuja, Nigeria March 2, 2021. REUTERS/Abraham Archiga</figcaption></figure>



ABUJA, May 16 (Reuters)&nbsp;&#8211;&nbsp;Dubai&#8217;s Emirates airline will resume flight schedules to Nigeria from Oct. 1, it said on Thursday, ending a close to two-year halt to flights.



The United Arab Emirates (UAE) stopped issuing visas to Nigerians in 2022 after Emirates suspended flights between the nations because of an inability to repatriate funds from Nigeria.



&#8220;We are excited to resume our services to Nigeria. We thank the Nigerian government for their partnership and support in re-establishing this route and we look forward to welcoming passengers back on board,&#8221; Adnan Kazim, the airline&#8217;s deputy president and chief commercial officer, said in a statement.



The Lagos-Dubai service has been popular with Nigerian customers in the past and Emirates said it hopes to reconnect travellers to Dubai and onwards to more than 140 destination with its resumption of services.



Nigerian President Bola Ahmed Tinubu and UAE President Mohamed bin Zayed Al Nahyan met last September in Abu Dhabi and discussed the lifting of the visa ban and new investments into Africa&#8217;s most populous country.



The resumption of schedules also includes cargo flights, the statement said.



(Reporting by Ope Adetayo; Additonal reporting by Elisha Bala-Gbogbo; Editing by Jason Neely and David Goodman)

Oxford/AstraZeneca vaccines against COVID-19 arrive in Abuja

Emirates to resume Nigeria flights after nearly two years

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="429" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/GBZMQIYKR5O7TASYIDE6U6N6UY-820x429.jpg" alt="" class="wp-image-486962" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/GBZMQIYKR5O7TASYIDE6U6N6UY-820x429.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/GBZMQIYKR5O7TASYIDE6U6N6UY-300x157.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/GBZMQIYKR5O7TASYIDE6U6N6UY-160x84.jpg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/GBZMQIYKR5O7TASYIDE6U6N6UY-768x402.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/GBZMQIYKR5O7TASYIDE6U6N6UY-1536x804.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/GBZMQIYKR5O7TASYIDE6U6N6UY.jpg 1920w" sizes="auto, (max-width: 820px) 100vw, 820px" /></figure>



ABUJA, May 15 (Reuters)&nbsp;&#8211;&nbsp;Nigeria&#8217;s headline consumer inflation&nbsp;NGCPIY=ECIaccelerated to a new 28-year high in April, hitting 33.69% year-on-year, up from 33.20% in March, statistics agency data showed on Wednesday.



Inflation in Africa&#8217;s most populous nation has been spurred by President Bola Tinubu&#8217;s administration&nbsp;slashing petrol and electricity subsidies and twice devaluing the local naira currency&nbsp;NGN=D1.



The central bank has raised interest rates twice this year, including its largest hike in around 17 years, as it struggles to contain the price pressures.



The central bank governor has indicated that rates will stay high for as long as needed to bring down inflation. The bank holds&nbsp;another rate-setting meeting next week.



Areport by the National Bureau of Statistics showed the food and non-alcoholic beverages category continued to be the biggest contributor to inflation in April.



Food inflation&nbsp;NGFINF=ECI, which accounts for the bulk of the inflation basket, reached 40.53% in annual terms, against 40.01% in March.



Price pressures have left millions of Nigerians grappling with the worst cost of living crisis in decades as they struggle to meet their basic needs.



To ease the pressure on government workers, Tinubu has announced a salary hike of up to 35% for civil servants. To help vulnerable households his government has also restarted a direct cash transfer programme and has distributed at least 42,000 tons of grains such as corn and millet.



(Reporting by Elisha Bala-Gbogbo; Additional reporting by Mohd Edrees; Editing by Alexander Winning and Gareth Jones)

GBZMQIYKR5O7TASYIDE6U6N6UY

Nigeria inflation scales new 28-year peak in April

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/GettyImages-1763140582-820x547.jpg" alt="" class="wp-image-486652" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/GettyImages-1763140582-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/GettyImages-1763140582-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/GettyImages-1763140582-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/GettyImages-1763140582-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/GettyImages-1763140582-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/GettyImages-1763140582-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">SAINT PETERSBURG, RUSSIA &#8211; 2023/11/02: The national flag of the Federal Republic of Nigeria as a participating country at the 12th St. Petersburg International Gas Forum (SPIGF 2023). (Photo by Maksim Konstantinov/SOPA Images/LightRocket via Getty Images)</figcaption></figure>



LAGOS, May 14 (Reuters)&nbsp;&#8211;&nbsp;The Nigerian government on Tuesday launched an information portal where investors can access details of its mineral resources, facilities and infrastructure, according to a statement from the ministry of mines.



&#8220;Before if you are a prospective foreign investor, you have to travel to Nigeria to access required information, but with this launch, anywhere you are in the world, with a click of a button, you can access all the information you require to make informed investment decisions,&#8221; said Dele Alake, Nigeria&#8217;s mining minister.



Africa&#8217;s top oil producer, which is also rich in gold, limestone and zinc, wants its mining industry to play a much bigger role in its effort to diversify the economy away from its reliance on oil.



The portal, called Nigeria Mineral Resources Decision Support System (NMDSS), can be accessed on the website of the same name, and contains publicly available data on geology and mineral wealth in Nigeria.



Nigeria is seeking to woo investors to a mining sector that has long been underdeveloped, contributing less than 1% to the country&#8217;s gross domestic product.



It has stepped up reforms in the sector including offering investors 75% in a new national mining company, cutting exports of unprocessed minerals, and enforcing compliance with rules against illegal mining.



Alake said illegal mining was being curbed by the recently unveiled mining marshals, while about 152 cooperatives had been formed by artisanal miners to legalise their operations, in line with reform efforts.



(Reporting by Isaac Anyaogu; Editing by Mark Potter)

Nigeria launches mineral resources portal for investors

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="615" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/OULLDAWHK5KNFJ24OWEHO2DK5I-820x615.jpg" alt="" class="wp-image-486266" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/OULLDAWHK5KNFJ24OWEHO2DK5I-820x615.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/OULLDAWHK5KNFJ24OWEHO2DK5I-300x225.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/OULLDAWHK5KNFJ24OWEHO2DK5I-120x90.jpg 120w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/OULLDAWHK5KNFJ24OWEHO2DK5I-768x576.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/OULLDAWHK5KNFJ24OWEHO2DK5I-1536x1152.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/OULLDAWHK5KNFJ24OWEHO2DK5I-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Members of the Nigerian Labour Union, holding flags and placards, march during a protest against fuel price hikes and rising costs, in Abuja, Nigeria August 2, 2023. REUTERS/Abraham Achirga</figcaption></figure>



LAGOS, May 13 (Reuters)&nbsp;&#8211;&nbsp;Nigeria&#8217;s labour unions on Monday began a protest over a hike in electricity tariffs by more than 200% for some users by blocking access to the offices of the country&#8217;s electricity regulator and power companies.



The Nigerian Labour Congress (NLC) and the Trade Union Congress (TUC) &#8211; two of the country&#8217;s biggest unions &#8211; had issued a two-week notice calling for the reversal of the new tariff hike and warned of &#8220;swift and decisive action.&#8221;



Strikes by these unions, which often follow this kind of protest, usually have an economic impact.



The NLC and TUC are demanding an immediate return to the previous electricity tariff, an immediate end to the practice of segregating consumers into what they say are arbitrary bands, and a return to corporate governance within the sector.



The Nigerian Electricity Regulatory Commission (NERC) had on April 3 raised electricity tariffs from 66 naira ($0.0465)/kwh to 225 naira ($0.1585) for about 15% of the 12 million grid-connected customers who are supposed to get up to 20 hours of power monthly.



&#8220;We have noted your concerns and we will go back to the drawing board,” NERC head Sanusi Garba told the protesting workers, who have insisted that the new rates be reversed before any negotiations are held.



The increase drew nationwide outrage because the power companies lacked the capacity to meet the contracted hours and would trim supplies to other users to satisfy their wealthier customers. NERC last week reduced the tariffs to 206.8 naira ($0.1456)/kWh saying the naira rose marginally against the dollar.



Nigeria&#8217;s regulator fixes tariffs based on economic factors including the price of gas &#8211; still sold locally in dollars &#8211; the inflation rate and the exchange rate, as most inputs are imported. It is trying to wean the sector off government subsidies that have led to tariffs that cannot guarantee commercial returns for investors.



Labour unions chanting solidarity songs also blocked the offices of some of the country&#8217;s power distribution firms as well as the ministry of power in Abuja.



Electricity workers at some distribution companies were sent away from their own offices, forcing some to return home.



&#8220;NLC just chased us out of our office,&#8221; one electricity worker posted on X with a smiley emoji. &#8220;My weekend has been extended.&#8221;



($1 = 1,419.9000 naira)



(Reporting by Isaac Anyaogu; Editing by Hugh Lawson)

Members of the Nigerian Labour Union protest against fuel price hikes and rising costs, in Abuja

Nigeria’s labour unions protest hike in electricity tariff

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/GettyImages-1251784338-820x547.jpg" alt="" class="wp-image-484743" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/GettyImages-1251784338-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/GettyImages-1251784338-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/GettyImages-1251784338-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/GettyImages-1251784338-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/GettyImages-1251784338-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/GettyImages-1251784338-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">The International Monetary Fund (IMF) headquarters during the spring meetings of the IMF and World Bank Group in Washington, DC, US, on Thursday, April 13, 2023. The IMF trimmed its global-growth projections, warning of high uncertainty and risks as financial-sector stress adds to pressures emanating from tighter monetary policy. Photographer: Samuel Corum/Bloomberg via Getty Images</figcaption></figure>



ABUJA, May 9 (Reuters)&nbsp;&#8211;&nbsp;The International Monetary Fund on Thursday maintained its growth forecast of 3.3% for Nigeria&#8217;s economy for 2024, up from 2.9% last year, citing a pick up in services and trade sectors.



The IMF added that growth outlook was still challenging in Africa&#8217;s most populous nation and top oil producer, with food price inflation 40% in March, raising food security concern.



&#8220;If Nigeria grows at 3.3% that is just above the population dynamics, which is a big challenge,&#8221; IMF mission chief for Nigeria, Axel Schimmelpfenning, told journalists.



Since taking office about a year ago, President Bola Tinubu has embarked on sweeping reforms, including slashing costly petrol and electricity subsidies and devaluing the naira currency twice within a year to narrow the gap between the official and parallel market exchange rates.



The Fund forecast that fuel subsidies could cost up to 3% of GDP this year as the increases in pump prices have not kept up with their dollar cost, Schimmelpfennig said, adding that officials remain committed to phasing that out in another one or two years.



&#8220;The reforms are focused on how to raise that growth so that Nigerians can see real impacts on their living standards,&#8221; Schimmelpfenning said.



Global ratings agencies have reviewed Nigeria&#8217;s economic outlook upwards due to the impact of reforms, with Fitch the latest to revise Nigeria&#8217;s outlook to positive from stable on May 3.



&#8220;We think a lot has happened. We also have to recognise that the problems built up over many years were quiet severe. We can&#8217;t expect that everything is going to be resolved overnight,&#8221; he added.



Schimmelpfenning said scaling up a cash transfer programme and boosting government revenues so that the country has more resources to provide services to its citizens is a key priority.



On monetary policy, the IMF welcomed the Central Bank of Nigeria&#8217;s (CBN) recent interest rate hikes to curb galloping inflation, calling for a data-driven approach to further rate tightening.



The IMF urged the CBN to build up its foreign exchange reserves and recommended a transparent and balanced framework for forex interventions aimed solely at smoothing out excessive short-term volatility.



(Additional reporting by Elisha Bala-Gbogbo;Editing by Bate Felix, Tomasz Janowski and Franklin Paul)

Spring Meetings Of The International Monetary Fund And World Bank

IMF maintains Nigeria growth forecast at 3.3% for 2024

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="570" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/RJUY6X5BFJKNPKIPRWK27O7NZI-820x570.jpg" alt="" class="wp-image-484289" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/RJUY6X5BFJKNPKIPRWK27O7NZI-820x570.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/RJUY6X5BFJKNPKIPRWK27O7NZI-300x209.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/RJUY6X5BFJKNPKIPRWK27O7NZI-129x90.jpg 129w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/RJUY6X5BFJKNPKIPRWK27O7NZI-768x534.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/RJUY6X5BFJKNPKIPRWK27O7NZI-1536x1068.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/RJUY6X5BFJKNPKIPRWK27O7NZI-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: An abandoned Nigeria&#8217;s first oil well that was built in 1956 sits under an uncompleted building in Oloibiri, Bayelsa State, Nigeria February 9, 2024. REUTERS/Seun Sanni/File Photo</figcaption></figure>



LAGOS, May 8 (Reuters)&nbsp;&#8211;&nbsp;Nigeria is inviting bids from international investors with financial and technical capacity for 12 onshore and deepwater oil blocks, its oil regulator said in a speech yesterday at a global oil conference in Houston, Texas.



Africa&#8217;s biggest oil producer opened this year&#8217;s licensing round on April 29 seeking to deepen exploitation of the country&#8217;s estimated 37.5 billion barrels of crude oil and 209.26 trillion cubic feet of natural gas reserves.



&#8220;Nigeria is committed to conducting the licensing round in a fair, competitive and transparent manner and ensuring a level playing field for both indigenous and international investors,&#8221; said Gbenga Komolafe, head of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).



Some investors have balked at participating in previous bids due to a lack of transparency in the award process leading to companies without capacity to drill winning oil fields. This eventually led to threats to cancel the awards.



Komolafe said in addition to these blocks, the seven deep offshore blocks from the 2022 mini-bid round exercise shall also be concluded along with this licensing round.



This will bring a total of 19 oil blocks offered to investors in 2024.



Apart from technical and commercial ability, the regulator said it would pay attention to how the bidders plan to align with the country&#8217;s net-zero carbon emissions targets, eliminate gas flares and avoid polluting rivers and farmlands.



Nigeria, a member of the Organization of the Petroleum Exporting Countries (OPEC) has seen its oil production decline from around 2 million barrels a decade ago to just over 1.3 million barrels per day.



Oil majors are leaving onshore fields prone to sabotage and frequent claims to compensation for spills to focus on deepwater fields where disruptions are less common.



(Reporting by Isaac Anyaogu; Editing by Toby Chopra)

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IMF maintains Nigeria growth forecast at 3.3% for 2024

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West Africa

Ghana, bondholders reach agreement in principle to restructure $13 bln debt, sources say

Ghana’s economy grew 4.7% in the first quarter of 2024

Ivory Coast expects threefold oil output increase by 2027

Ghana, creditor panel agree on debt restructuring, paving way for IMF cash

Nigeria’s president says economic reforms will continue despite hardships

West African nations call for firms to be able to offset carbon

Nigerian unions shut down power grid, disrupt airlines with strike over minimum wage

Hardship, insecurity cloud Nigeria president’s first year in office

Ghana central bank holds rate as currency slide slows disinflation

Ghana seals debt restructuring deal with official creditors, sources say

Nigeria’s central bank raises benchmark rate to 26.25%

Emirates to resume Nigeria flights after nearly two years

Nigeria inflation scales new 28-year peak in April

Nigeria launches mineral resources portal for investors

Nigeria’s labour unions protest hike in electricity tariff

IMF maintains Nigeria growth forecast at 3.3% for 2024

Nigeria invites bids for 12 new oil blocks, promises fair process

News Tips

Advertise With Us

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