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The Evolving EU-Nigeria Social, Economic Alliance

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stimulus
  • The Evolving EU-Nigeria Social, Economic Alliance

The European Union (EU) has had a lot of successes since it was founded on November 1, 1993, in Maastricht, The Netherlands.

Although the body’s activities actually started as far back as the 1950s with a different nomenclature, it formerly became a union in 1993.

Beginning as a pretty much amorphous geo-political entity with only six countries as members, it now covers a large portion of the European continent.

It was founded upon numerous treaties and has undergone expansions that have taken it from the founding six member states to 28, a majority of the states in Europe.

However, with the result of the Brexit, the number of member states is more accurately fixed at twenty-seven and half, pending when the negotiation of socio-economic and political relations between the EU and the United Kingdom is completed.

There is also growing global apprehension that with the surprising Brexit outcome, the shocking election of Donald Trump as the United States president and other seeming nationalist positions being taken by more prosperous nations around the world, the era of globalisation may be ebbing out, leaving regional bodies like the EU in need of urgent strategic reforms to remain relevant.

Conversely though, for its relationship with Africa, the EU has achieved quite a bit. From the EU observer missions to the various elections within the African continent which have tacitly forced many African dictators to play fairly during electioneering, to massive economic aids and cooperation, Europe has to a considerable extent shown commitment the well being of Africa.

Apart from Nigeria which has put up an argument against some provisions of the Economic Partnership Agreement (EPA) between the EU and Africa, Caribbean and Pacific (ACP) countries, most of the other countries and regions have endorsed the EPA, paving the way for massive trading between them and Europe.

EU Effort in Nigeria

The primary instrument for EU assistance is the European Development Fund (EDF). The current allocation to Nigeria from this global fund is around €512 million over the period 2014 to 2020. In addition, the EU provides funding from a number of other aid instruments such as humanitarian aid, support for civil society and assistance to fight terrorism.

The three priority sectors for the current development EU assistance are: In the social sector, improving access to quality primary health care, the fight against malnutrition and measures to strengthen resilience and promote social protection. Included here are support for routine and polio immunization campaigns, activities to improve access to clean water and sanitation, and reinforce livelihoods and revenue generation in rural populations through food and nutrition security.

As for the economy, the EU is helping to increase access to sustainable electricity, supporting efforts to improve conditions for economic growth with a focus on improving competitiveness and diversification, development of renewable energy and energy efficiency measures and strengthening public finance systems at state and federal levels, to create a stable environment for trade and investment activities.

In the governance sector, there is continued support for action to strengthen democracy in Nigeria, the fight against corruption, the fight against trafficking of human beings, drugs and small arms, the reform of the justice system, measures to manage migration more efficiently and effectively, and capacity building for civil society organisations.

All current European Union (EU) development cooperation activities in Nigeria are funded primarily through the allocation of EUR 689 million from the 10th European Development Fund (EDF) to the EU/Nigeria National Indicative Programme (NIP).

The only 11th EDF operations that are already being implemented are those funded from the Bridging Facility.

These are primarily an additional EUR 15 million towards the electoral process leading up to the elections in February 2015, an additional EUR 8.5 million towards the campaign to eradicate polio in Nigeria and EUR 1.5 million to provide psycho-social support and schools in a box to communities directly affected by Boko Haran violence in Borno and especially those in the Chibok area.

Operations in Nigeria funded under the EU Instrument contributing to Stability and Peace (IcSP) formerly called the Instrument for Stability and from various EU Thematic Budget lines are also included as is EU funded humanitarian assistance in Nigeria.

A Fresh Euro 44bn Fund

Also, last weekend, the EU announced that it has launched a €44 billion Africa economic development fund aimed at helping Nigeria and other African countries drive economic growth and development.

The Vice President, EU, Digital Single Market, Andrus Ansip, said the EU is already developing a strategic framework for the implementation and disbursement of the fund, maintaining that the EU is also designing security measures to ensure the fund is effectively and efficiently disbursed.

Ansip during a press briefing in Lagos explained that the fund which would be made available for disbursements in first quarter 2018 as credit money, was designed to help developing economies cover identified risks to attract foreign direct investments (FDIs).

The fund is also going to help the digital industry in Nigeria which the EU sees as one of the areas with the strongest growth potential.

He said: “Our aim is to help developing economies. We have decided to create the European external investment fund which is targeted at covering main risks to attract private investment. This kind of fund was really efficient in the European union (EU) where we created investment for strategic investment and we believe this fund will go a long way to help the African economy.”

According to him, the fund would go a long way in reducing the number of refugees who seek greener pastures in European countries, saying that in the last two years, Europe has experienced the greatest mass movement of people since the second World war.

He pointed out that more than 1 million refugees and migrants have arrived in the EU, adding that EU has agreed on a range of measures to deal with the crisis.

“This fund meant for supporting development in African countries will be beneficial to the European countries as you know today that most people in Africa prefer to leave African countries to seek greener pastures in European countries. We are faced with lots of refugee crisis. To tackle this menace, we can provide some help to those countries to help build their economies instead of seeking refuge in Europe,” he said.

He said: “Our aim is to support digital development in Africa and also help to build healthy economies in developing countries. The EU is the biggest donor of digital development aids. We believe the fragment of digital aid is little in developing countries, this is where we are.

The European Union wants to support digital development in Africa. We will like to provide financing to build strong and healthier economies in developing countries in Africa.”

He said digital development in Nigeria and in other African countries has grown rapidly, noting that internet penetration has grown to over 80 per cent where 100 per cent of Nigerians now has access to Internet services.

“The development was much more rapid when compared to Europe. I believe in digital development for the bright future of Africa,” he said.

He said funds are important for economic development, but stressed that ideas and how to cooperate with other African countries is even more critical to get more assistance of development funds.

He said African countries must create the right environment for digital development, create an effective regulatory environment that would have a much bigger influence than funds in the future of African countries.

Is the CEO and Founder of Investors King Limited. He is a seasoned foreign exchange research analyst and a published author on Yahoo Finance, Business Insider, Nasdaq, Entrepreneur.com, Investorplace, and other prominent platforms. With over two decades of experience in global financial markets, Olukoya is well-recognized in the industry.

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Petrol

Three Oil Companies Ask Court To Stop NMDPRA From Seizing Their Petrol Import Licences, Accuse Dangote Refinery of Monopoly

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Aliko Dangote - Investors King

In response to Dangote Refinery N1 billion suit, three oil companies including Matrix Petroleum Services Limited, A.A. Rano Limited, and AYM Shafa Limited, have prayed the Federal High Court in Abuja to stop the Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) from reviewing or withdrawing their import licenses.

The oil companies also urged the court not to block them from importing petrol in the interest of energy security and promotion of healthy competition in the Nigerian oil and gas sector.

Dangote Refinery had approached the court and filed and a N100 billion suit in damages against NMDPRA for allegedly continuing to issue import licenses to NNPCL, Matrix, and other companies for importing petroleum products such as Automotive Gas Oil (AGO) and Jet Fuel (Aviation Turbine Fuel), despite that the refinery is producing the products in quantity that meets Nigerians’ needs.

The refinery also dragged NNPCL, AYM Shafa Limited, A.A. Rano Limited, T. Time Petroleum Limited, 2015 Petroleum Limited, and Matrix Petroleum Services Limited in the suit.

Counsel to Dangote Refinery, Ogwu James Onoja SAN, in the originating summons, dated September 6, 2024, claimed that NMDPRA contravened Sections 317(8) and (9) of the Petroleum Industry Act (PIA) by issuing import licenses for petroleum products.

Onoja stated that such licenses should only be granted in cases of petroleum product shortages and not when Dangote Refinery is meeting the needs of the populace.

According to Onoja, NMDPRA has been discouraging local refiners such as Dangote Refinery by its actions.

Responding to the suit through their written address and counter-affidavit, dated November 5, 2024, and filed by Ahmed Raji SAN, the three oil companies said their businesses do not in any way hamper, disrupt, or harm Dangote Refinery’s operations.

The three defendants claimed the plaintiff allegedly sought to monopolise the petroleum industry in Nigeria, where it alone would control supply, distribution, and pricing.

In the defendants’ affidavit, deposed by Ali Ibrahim Abiodun, Acting Managing Director of AYM Shafa (with the consent and authority of Matrix, A.A. Rano, and AYM), it was stated that the defendants are qualified and capable of being licensed as importers of refined petroleum products under Section 317(9) of the PIA and that their licenses to import such products were lawfully issued by the appropriate authority, NMDPRA.

The deponent claimed that it typically takes an average of two months for Dangote Refinery to fulfill orders and that it rarely meets demand, with trucks waiting for months to be loaded at the refinery.

In contrast, he claimed it takes about three weeks to import petroleum products from offshore refineries.

The affidavit revealed that A.A. Rano’s oil depot in Lagos has a storage capacity of 55,000,000 liters and can load about 200 trucks per 24 hours.

The deponent stated that the company also owns 220 filling stations and another 85 affiliates and leased filling stations.

According to the deponent, AA Rano was one of the first to take delivery of AGO from Dangote Refinery, loading 20,000 MT of AGO on or about April 16, 2024, and has since purchased and loaded additional cargoes totaling approximately 190,000,000 liters.

Despite this patronage, the affidavit claimed that Dangote Refinery has continued to place obstacles that make it difficult for A.A. Rano to purchase products solely from the refinery.

The oil companies called on the court to dismiss the suit.

Meanwhile, the court adjourned the matter till January 20, 2025, for a status report.

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Energy

Malaysia’s CNG Ban Sparks Debate in Nigeria as Tinubu Pushes for CNG Adoption

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Nigerians on and off social media have expressed concern following a recent decision by the Malaysian government to phase out Compressed Natural Gas (CNG) vehicles by July 2025.

While the Nigerian government continues to urge citizens to use CNG as a cleaner, cheaper fuel alternative to petrol, Anthony Loke, Malaysian Transport Minister, questioned the safety of CNG.

Announcing the ban, the Malaysian Minister highlighted the risk associated with CNG vehicles, especially after tanks exceeded their 15-year safe usage limit.

Minister Loke announced the ban while speaking at a press conference on Wednesday, November 6.

The Malaysian Minister disclosed that the ban will affect over 44,000 vehicles in Malaysia, including private cars, taxis, buses, and industrial machinery.

According to Loke, “These NGV tanks have a safe usage lifespan of approximately 15 years, and if they are not replaced, they become unsafe to use and may fail at any time.”

Loke announced that the phase-out will be in stages with the first being the halting of CNG sales by the state oil and gas corporation, Petroliam Nasional Berhad (Petronas) at its stations starting July 1, 2025.

The latest development has sparked numerous reactions as Nigerians criticized the Tinubu government for adopting CNG amid Malaysia’s phase-out.

Reacting to the development, @Gozie_mu wrote, “Nigeria to embrace it because we are the world’s dumping site.”

Another user, @iniekott, wrote: “Meanwhile, Nigerian rulers are putting CNG forward as a safe alternative to petrol.

“Note the clear-headed and tangible provisions made by the Malaysian government to help citizens with the transition.”

“Malaysia introduced CNG in the 1990s; now they are stopping it in 2024, while Bola and his supporters are asking Nigerians to change to CNG. APC is taking you 34 years backwards, but some of you’re defending it,” a user, PaschalNwosu5 wrote.

#SmartAtuadi criticized the government’s carelessness saying, “Nigeria seems determined to promote CNG without considering the safety implications that Malaysia has raised.”

Many others called on the government and government officials to lead by example by converting their vehicles to CNG before urging Nigerians to do so.

#Oserume1 commented, “If CNG was a good idea, Tinubu would have converted his official luxury Cadillac Escalade from petrol to CNG!”

@ekenezion said, “The president refused to convert his Escalade to CNG.”

@buzuzu7 opined, “I will only embrace this if all ministers and the presidency lead by example. I can’t be your guinea pig.”

The Nigerian government had since reacted to the CNG ban in Malaysia.

The Special Adviser to President Bola Tinubu on Information and Strategy, Bayo Onanuga, in his statement said the planned phase-out by the Malaysian government speaks more to the safety of LPG and not the safety of CNG.

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Energy

National Grid Collapses Twice in Two Days, Nigerians Express Frustration

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Electricity

The Nigerian National Grid has announced yet another collapse, marking the second occurrence in just two days. 

The collapse of the Grid was made known by the Nigeria National Grid via its official page on the X platform. 

Following the Grid collapse, the Jos Electricity Distribution PLC, released an apology statement through the Head of Corporate Communications, Friday Elijah, stating that the grid has collapsed and assuring Nigerians that the power will be restored to normal soon 

“The current outage being experienced within our franchise States is a result of loss of power supply from the national grid. The loss of power supply from the national grid occurred this morning at about 1128 hours of today, Thursday, 7th November 2024, hence the loss of power supply on all our feeders,” the statement read. 

In a similar vein, Ikeja Electric PLC apologised to its customers regarding the grid that collapsed. It said, “Please be informed that we experienced a system outage today 07 November, 2024 at 11:29Hrs affecting supply within our network.” Adding that “Restoration of supply is ongoing in collaboration with our critical stakeholders.” 

It should be noted that the grid collapsed on Tuesday and shortly after power was restored, the grid reportedly collapsed again on Thursday.

Moreover, the recent Grid collapse has garnered eyebrows from netizens showing discontent towards the constant collapse of the electricity grid. 

One netizen with the user name @Aumarsafana2917 tweeted “Enough of all these stories now, we’re tired. We’ve heard them enough.” 

Another X user, @ikbank tweeted “ This has become so absurd. Are we now living in a nation where things no longer work? For crying out loud, how many things are we going to continuously experience this collapse (outage). Why can’t things work effectively with minimal stress. So tiring!” 

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