Business

Vibrant West Africa’s Fuel Black Market Collapses On Nigeria’s Subsidy Removal

Published

2 years ago

June 27, 2023

Nigeria’s decision to eliminate fuel subsidies has had a significant impact, resulting in the collapse of a thriving black market in Vibrant West Africa’s Fuel Black Market Collapses On Nigeria’s Subsidy Removal. This informal sector, which played a central role in the region’s economic activity, has been disrupted as the price of cheap contraband Premium Motor Spirit, better known as petrol, from Nigeria suddenly doubled.

In a report on Monday, American news platform, Reuters, noted that black market fuel vendors and commercial drivers in Cameroon, Benin and Togo, who heavily relied on smuggled petrol from Nigeria, have witnessed their businesses crumble since the subsidy removal. As fuel supplies dwindle, long queues have formed at official petrol stations, where prices are now competitive.

In Garoua, a town in North-West Cameroon near the Nigerian border, the cost of a litre of petrol on the black market used to be around 300 CFA francs (about $0.48) but it has skyrocketed to a minimum of 600 CFA francs, causing dissatisfaction among customers who perceive the high prices as unjustified.

The repercussions extend to commercial motorcycles, or okada, leading to conflicts between hand-to-mouth riders and customers demanding low fares, regardless of the circumstances.

Ousmanou Mal Djoulde, a rider in Garoua, has been forced to more than double his fares, resulting in many customers refusing to pay and business becoming painfully slow, Reuters reported.

The trade in black market fuel holds such significance in the local economy that authorities either turn a blind eye or are complicit. A Reuters reporter in Garoua observed a Cameroonian customs officer seated on a motorcycle being refuelled with smuggled Nigerian petrol.

Unfortunately, there is no reliable data on the volume of fuel smuggled from Nigeria. The head of Nigerian National Petroleum Corporation, Mele Kyari, acknowledged that 66 million litres of petrol leave their depots daily, but he could not provide an accurate estimate of local consumption. Smuggling is acknowledged to be rampant.

According to Reuters, Benin and Togo, neighbouring nations to the west of Nigeria, have also witnessed a decline in supplies and customers for contraband fuel vendors, while official petrol stations have experienced a sudden surge in activity. At the Hilacondji border crossing between Togo and Benin, some black market fuel stalls have closed, leaving vendors waiting with empty containers for potential deliveries.

In the absence of improvements, some individuals have sought alternative livelihoods such as fishing or engaging in other small businesses. The closure of informal fuel depots has left previously employed individuals without work, adding to the unemployment rate.

According to the United Nations, over 80% of employment in Africa is in the informal sector, making it a crucial driver of economic activity. In Cotonou, the commercial capital of Benin, located about 60 km from Nigeria, long queues have formed at official petrol stations, and some have struggled to meet the sudden surge in demand, particularly from commercial motorcyclist, locally known as “zemidjan.”

A worker at the JNP fuel station in Cotonou, named Janvier, reported that their daily sales have increased from around 2,000 litres to up to 7,000 litres. However, the heightened demand has caused supply shortages, forcing them to turn away customers.

Business

First Bank: Controversy Trails Multi-billion Naira Shares Deal

Published

1 day ago

July 18, 2025

Editor

There seems to be uncertainty around the share sales and purchase deal between Oba Otudeko, Hassan Odukale on one hand and Femi Otedola on the other in First HoldCo, the parent company of First Bank.

The deal delivered an unprecedented quantum of the financial group’s shares to Otedola, the current Group Chairman of First Holdco, from the shareholdings of Odukale and Otudeko, the two immediate past chairmen of the group.

Also the deal ramped up Otedola’s holdings in the Group to an unprecedented level of 40%, the largest in the history of the bank and also largest single shareholdings amongst the tier-1 banks in Nigeria.

However, when Vanguard contacted the Nigerian Exchange Limited, the Spokesperson, Clifford Akpolo, said: ”I am not aware of these transactions as the NGX Reg has not notified the NGX.”

The NGX trading rules required that a sale or purchase of shares up to 5% must be notified to the NGX Reg. The deal covered about 25% of the bank’s total shareholding.

Similarly, First Bank’ s spokesperson, Mr. Ismail Omamegbe, did not respond to a text message sent to him, nor responded to calls in respect of the deal.

But sources in the bank indicated that the deal was executed off-trading floor and in connection with the long-drawn battle between the current board of the bank group and the two former board chairs who opted to surrender their shares for the bank to drop legal proceedings against them.

The deal, executed through 17 negotiated trades at ?31 per share, involved the transfer of 10.43 billion units of FBN Holdings shares and is estimated to be worth over ?324 billion.

The acquisition, confirmed by trading data and capital market sources, marks a turning point in the ownership structure of one of Nigeria’s oldest and most prominent financial institutions.

The buyer in all 17 deals was First Securities Ltd, while the sellers included CardinalStone Securities, Meristem Stockbrokers, Renaissance Capital, Regency Asset Management, Stanbic IBTC Stockbrokers, United Capital Securities, and First Securities Ltd (acting as both buyer and seller in select trades).
(VANGUARD)

Business

South-South Contributed Over 21% Nigeria’s GDP In 2024 – Banker’s institute

Published

2 days ago

July 17, 2025

Editor

The President of the Chartered Institute of Bankers of Nigeria, Prof. Pius Olanrewaju, has stated that the South-South region contributed N34 trillion to the country’s economy in 2024.

He made the remark at the South-South Zonal Banking and Finance Conference in Calabar on Thursday.

He spoke on the theme, ‘Building An Inclusive South-South: Economic Diversification as a Catalyst For Development.’

Olanrewaju, who quoted the data from the Cable Data Index, said the feat was more than 21 per cent of Nigeria’s real Gross Domestic Product.

The president described the growth as “impressive,” saying that it was not driven by oil alone but significant expansions in trade, services, and the creative industries.

According to him, to fully harness this potential, coordinated financial, technological, and policy support is essential.

“As we work to reposition the South-South for broad-based prosperity, the financial system must play a central role, not merely as a source of capital, but as a catalyst for innovation, ideas incubation, and inclusive economic growth.

“This conference, therefore, provides a strategic opportunity for stakeholders to reimagine the South-South economy, not merely as a resource belt, but as a region of diverse capabilities and resilient enterprises,” he said.

Olanrewaju added that Nigeria must move beyond old models and chart a new course for the development of the South-South region, where financial institutions and stakeholders collaborate to diversify the economy for shared prosperity.

He, however, commended Governor Bassey Otu for his pledge of land for CIBN Secretariat in Cross River and being the first sitting governor to willingly undergo and complete the Chartered Bankers Programme.

On his part, Otu said that the conference discussion on the economic diversification in the South-South region was timely against the backdrop of global trade and economic volatility that was affecting the nation’s economy.

Represented by his deputy, Mr Peter Odey, Otu said the South-South region must now act with urgency to diversify its economy while leveraging its shared natural endowment in agriculture and extractive resources.

“This conference must help develop tailored financial solutions that reflect the unique strengths and realities of states like Cross River in the south-south.

“Diversification should be evidence-based and must be backed not just by financial advice but project-focused financing and real investment support,” he stated.

He said that Cross River had taken the bold step to invest in its agricultural sector by launching an agro-processing hub.

Otu further said that the state had invested in aviation by acquiring more aircraft for Cally Air, constructing the Bakassi Deep Seaport and injecting N18 billion in its tourism sector.

Similarly, the Cross River Branch Controller of the Central Bank of Nigeria, Mr Tolefe Jibunoh, said that the region was blessed with natural resources, cultural diversity and immense human potential.

Jibunoh, who was represented by Head, Currency Control Office, CBN, Calabar, Mr Segun Shittu, noted that strategic diversification could unlock unprecedented opportunities for growth in the region.

He added that the CBN remained steadfast in maintaining monetary possibilities and promoting a sound financial system as a catalyst for sustainable economic development for the benefit of all.

NAN

Business

Naira Rises In Parallel Market

Published

4 days ago

July 15, 2025

Editor

The naira today appreciated to N1,545 per dollar in the parallel market from N1,550 per dollar last weekend.
Likewise, the Naira appreciated to N1,528.65 per dollar in the Nigerian Foreign Exchange Market (NFEM).

Data published by the Central Bank of Nigeria, CBN, showed that the exchange rate for the naira fell to N1,528.65 per dollar from N1,532 per dollar last week Friday, indicating N3.35 appreciation for the naira.

Consequently, the margin between the parallel market and NFEM rate narrowed to N16.35 per dollar from N18 per dollar last weekend.