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Nigeria to Drive West Africa’s Green Energy Bond

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green energy - Investors King
  • Nigeria to Drive West Africa’s Green Energy Bond

Nigeria has accepted to lead West African countries in their plan to implement the Paris Climate Change Agreement and subsequently access the green bonds attached to the agreement, the President of Sustainable Energy Practitioners Association of Nigeria (SEPAN), Dr. Chidi Onuoha has said.

Onuoha said in an interaction with THISDAY shortly after the closing ceremony of the sixth edition of the Nigeria Alternative Energy Expo (NAEE) in Abuja, that the decision to allow Nigeria take the lead in West Africa’s desire to tap into the green bond was based on her recent show of passion for renewable energy deployment.

Green bonds are standard bonds with a green as a bonus feature. They were created to fund projects that have positive environmental and/or climate benefits. According to reports, the green bond market which took off in recent years with $42 billion issued in 2015, has continued to grow with issuance in 2016 hitting over $50 billion by September.

Onuoha stated that so far, Nigeria, which recently signed the Paris agreement with the possibility of quickly ratifying it, was better positioned to drive the initiative for West Africa. He said a framework had been set up in this regard.

“The president said in Paris that Nigeria will reduce carbon emission under the climate change agreement by 20 per cent unconditionally, using renewable and energy efficiency sources and ending gas flaring. That is our own Nationally Determined Contributions (NDC).

“We have been able to design a framework for Nigeria’s achievement of this NDC. With this, we are going to be able to earn revenue from the carbon market which is huge with billions of dollars,” said Onuoha in his summary of the expo’s overall takeaway.

He said: “If Nigeria ratifies this, the practical aspect of implementing this will attract so much of this funds.We saw the need to set up the West African Emission Trading Association, we have it in South Africa where their cities have green bond initiatives, as well as in East Africa. These are some the things we will use for the Paris agreement and West Africa which sees Nigeria as a hub has asked Nigeria to develop the process, and that is what we have done.”

According to him, “We have been able to set up the West African Emission Trading Association. With this, we want to be ready to tap into the business opportunities that the carbon we save can give us. We want to be able to trade the carbon for money because emission trading is key in this business.”

Onuoha also said operators in Nigeria’s renewable energy sector have decided to continue to push the government to see the economic benefits of supporting the sector. He added that the sector had more potential to employ more people than the oil and gas sector which the government is more interested in.

“We have made sure that renewable energy and energy efficiency has been mainstreamed in Nigeria’s energy policy. The government recently signed a PPA with 14 developers for solar power. This is a good thing and the direction we have been pushing for.

“Because we still have a rent mentality and Nigeria still look to oil as a revenue source, we want the government to begin to drive the narrative that this sector is a huge one. We want Nigerians and government to know there are huge potentials in this sector because for every 1 megawatts deployed, 3000 people are employed in terms of solar installers and technicians amongst others, and that is a constant,” Onuoha added.

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Businessinsider, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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Guinness Nigeria Postpones Spirits Importation Exit, Extends Deal with Diageo

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Guinness Nigeria Plc has announced a delay in its plan to halt the importation of spirits as it extended its agreement with multinational alcoholic beverage company Diageo until 2025.

The decision, communicated through a corporate notice filed with the Nigerian Exchange Limited on Tuesday, cited a longer-than-expected transition period for separating its business from Diageo’s.

Initially slated for discontinuation in April 2024, the importation of premium spirits like Johnnie Walker, Singleton, Baileys, and others under the 2016 sale and distribution agreement with Diageo will now continue for an additional year.

The extension comes as the process of business separation between Guinness Nigeria, a subsidiary of Diageo, and Diageo itself faces unexpected delays.

In October, Guinness Nigeria had announced plans to cease importing spirits from Diageo, a move aimed at reducing its foreign exchange requirements.

However, the separation process has encountered unforeseen hurdles, necessitating the extension of the importation agreement.

The notice, signed by the company’s Legal Director/Company Secretary, Abidemi Ademola, highlighted the ongoing efforts by Guinness Nigeria and Diageo to implement the separation, originally scheduled for completion by April 2024.

The extension underscores the complexity of disentangling the businesses and ensuring a smooth transition.

Guinness Nigeria reaffirmed its commitment to the long-term growth strategy, aligning with Diageo’s decision to establish a new, wholly-owned spirits-focused business.

Despite the delay, both companies remain dedicated to managing the importation and distribution of international premium spirits in West and Central Africa, with Nigeria as a key hub.

The postponement comes amid challenges faced by Guinness Nigeria, including significant exchange rate losses, which amounted to N49 billion in the 2023 half-year operations.

Despite these setbacks, the company remains optimistic about its future prospects in the Nigerian market.

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Private Sector Warns: Interest Rate Hike to Trigger Job Cuts and Inflation Surge

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Private employers

As the Central Bank of Nigeria (CBN) announced a hike in the Monetary Policy Rate (MPR) from 22.75% to 24.75%, concerns have been raised by the private sector regarding the potential ramifications on job stability and inflationary pressures.

The move, aimed at curbing inflation and stabilizing the exchange rate, has prompted apprehension among business operators who fear adverse effects on the economy.

Representatives from the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA) and the Nigerian Association of Small Scale Industrialists have voiced their worries over the increased difficulty in accessing affordable credit.

They argue that the higher interest rates will impede the private sector’s ability to borrow funds for expansion and operational activities.

This, they fear, could lead to a reduction in business investments and subsequently result in widespread job cuts across various sectors.

The Lagos Chamber of Commerce and Industry (LCCI) acknowledged the necessity of the interest rate hike but emphasized the potential negative consequences it may bring.

While describing it as a “price businesses would have to pay,” the LCCI highlighted the current fragility of the economy, exacerbated by various policy missteps.

They cautioned that the increased cost of borrowing could stifle entrepreneurial activities and discourage expansion plans critical for economic growth and job creation.

Experts have echoed these concerns, warning that the tightening monetary conditions could exacerbate inflationary pressures and hinder economic recovery efforts.

With inflation already soaring at 31.70%, the rate hike could further fuel price hikes, especially in essential goods and services, thus eroding the purchasing power of consumers.

However, CBN Governor Yemi Cardoso defended the decision, citing the imperative to address current inflationary pressures and ensure sustained exchange rate stability.

He emphasized the need to restore the purchasing power of ordinary Nigerians and expressed confidence that the economy would stabilize by the end of the year.

Despite assurances from the CBN, stakeholders remain cautious, calling for a more nuanced approach that balances the need for price stability with the imperative of fostering economic growth and job creation.

As businesses brace for the impact of the interest rate hike, all eyes are on the evolving economic landscape and the measures taken to mitigate its effects on livelihoods and inflation.

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Breaking Barriers: Transcorp Hotels CEO Shares Journey from Crisis to Success

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Dupe Olusola

Dupe Olusola, the Managing Director/CEO of Transcorp Hotels Plc, reflects on her remarkable journey from navigating the depths of a global pandemic to achieving unprecedented success in the hospitality industry.

Appointed in March 2020, amidst the onset of the COVID-19 pandemic, Olusola found herself at the helm of a company grappling with the severe economic fallout and operational challenges inflicted by the crisis.

Faced with a drop in occupancy rates from 70% to a mere 5%, Olusola and her team were confronted with the daunting task of steering Transcorp Hotels through uncharted waters.

Undeterred by the adversity, they embarked on a journey of transformation, leveraging creativity and resilience to navigate the turbulent landscape.

Implementing innovative strategies such as introducing drive-through cinemas, setting up on-site COVID-19 testing facilities, and enhancing take-away services, Transcorp Hotels adapted to meet the evolving needs of its guests and ensure continuity amidst the crisis.

Embracing disruption as a catalyst for growth, Olusola fostered a culture of collaboration and teamwork, rallying her colleagues to overcome obstacles and embrace change.

Through unwavering determination and a commitment to excellence, Transcorp Hotels emerged from the pandemic stronger than ever, breaking profit and revenue records year after year.

“It’s indeed been a great opportunity to learn and relearn, to lead and to grow. When you see success stories, remember it’s a journey with twists, turns, ups and downs but in the end, it will all be okay”, she said.

Olusola’s leadership exemplifies the power of adaptability and perseverance, inspiring her team to transcend limitations and chart a course towards unprecedented success.

As Transcorp Hotels continues to flourish under her stewardship, Olusola remains steadfast in her dedication to driving innovation, fostering growth, and breaking barriers in the hospitality industry.

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