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Amaechi: FG Needs $45bn to Fix Transportation Infrastructure

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  • Amaechi: FG Needs $45bn to Fix Transportation Infrastructure

The Minister of Transportation, Mr. Rotimi Amaechi, has said the federal government requires $45 billion to fix the country’s transportation infrastructure, adding that rail infrastructure is a capital intensive sector.

Explaining the amount spent so far on rail infrastructure in the country during an interview on Channels Television breakfast programme, Sunrise Daily yesterday, the minister revealed that this figure would be needed to solve the country’s “problem of transportation to a great extent.”

He said the sector is capital-intensive, adding that huge funds would be needed to construct more railroads and acquire coaches.

He said: “It is capital intensive. N1trillion is about $2.7 billion and that is just about 200 kilometres of the railway. So, if you plan to do Lagos-Ibadan and you are looking at about $8.7 billion – this will be between N3 trillion and N4 trillion. How much is the budget of the country?

“That is why I said we need about $35 to $45 billion to be able to do Lagos-Kano, Port Harcourt-Maiduguri, Lagos-Calabar, and Abuja-Warri. Once you do these four tracks, you have covered the country, and you have solved the problem of transportation to a great extent.”

Amaechi also gave a breakdown of the expenses incurred so far on rail construction most especially the Lagos-Ibadan railroad.

According to him, the federal government is making efforts to acquire coaches and locomotives for the Lagos-Ibadan railroad.

He said: “Lagos-Ibadan Railroad will cost about $1.6 billion. This does not include the extra cost of things we did not prepare for. The Kaduna-Abuja construction will cost about $1billion.

“We have paid about $500 million to buy locomotives for Lagos-Ibadan. So that’s what we’ve so far spent.”

Speaking on his political fight with the Governor of Rivers State, Mr. Nyesom Wike, the minister said he is not at war with the Rivers State governor.

He said he is only inconvenient with the level of insecurity in the state.

“There is no war going on between Wike and me. It is like my friend Akpabio, when we met the other day, I said we are not quarreling.

“What is going on between Wike and me is the fact that he wants to run a second term. The fact is that he ran the first term in which people were killed. Today, he is accusing the army and not the police because they refused to take bribe from him.”

The former governor said during his administration as the state governor, he investigated and ensured the arrest of the perpetrators of crime.

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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DLM Trust Unveils DLM Single Asset Trust

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DLM Capital Group

DLM Trust, a subsidiary of DLM Capital Group is thrilled to announce the launch of DLM Single Asset Trust.

The model is a variant of the Living Trust construct that allows for a groundbreaking solution for individuals or Corporations seeking to settle assets into a trust, for the benefit of themselves and their chosen beneficiaries.

The DLM Single Asset Trust guarantees that peoples’ assets are protected and managed in accordance with their intentions by operating under the tenets of trust, security, and careful management. The DLM SAT offers a novel approach to trust services by fusing state-of-the-art technology with knowledgeable advice to enable people and families effortlessly manage their assets.

DLM SAT enables individuals, often referred to as Settlors, to create a single asset trust that will serve both their own and their designated beneficiaries’ purposes. The Trust Fund may be started using the Settlor’s assets/funds and then expanded with future contributions in accordance with the Settlor’s goals. Only authorised individuals, including the settlor, can access the trust because of its strong independent and confidentiality level. DLM Trust Company holds the Fund in trust and manages it for the benefit of the Settlor and designated Beneficiaries.

In a statement, MD of DLM Trust, Lola Razaaq commented on the introduction of the DLM Single Asset Trust, stating that it is a means of establishing a timeline for legacy preservation. “The DLM SAT is our newest offering, and we are thrilled to announce this important milestone for DLM Trust.” The aim of our organisation is to equip people and families with the necessary resources and assistance to safeguard and maintain their heritage for future generations. “Furthermore, we are transforming the concept of future planning with DLM Single Asset Trust.” she said.

DLM Trust Company Limited is registered with Securities and Exchange Commission (SEC) and incorporated under the Companies and Allied Matters Act to provide trust services to individuals, corporations, sub-sovereign entities. As always, strategic thinking and innovation will be combined by DLM Trust Company to offer its clients best-in-class services. Since its founding, DLM Trust has worked on a variety of creative and unique transactions, including securitizations, private and public bonds.

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Shell’s $2.4bn Asset Sale Under Close Scrutiny

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Shell

The proposed $2.4 billion asset sale by energy giant Shell to Renaissance Africa Energy has become the focal point of intense scrutiny as the Federal Government of Nigeria aims to ensure transparency and regulatory compliance in the transaction.

The deal has sparked widespread interest and raised questions about its implications for the country’s energy landscape.

Shell, a prominent British energy major with a century-long history of operations in the Niger Delta, announced in January its intention to divest its Nigerian onshore subsidiary, Shell Petroleum Development Company of Nigeria Limited, to Renaissance Africa Energy.

This landmark agreement, if finalized, would represent a pivotal moment in Nigeria’s energy sector dynamics.

Renaissance Africa Energy, a consortium comprising five companies, including four Nigerian-based exploration and production firms and an international energy group, has confirmed its participation in the deal.

The consortium’s involvement underscores its strategic positioning to capitalize on Nigeria’s vast energy resources and contribute to the country’s economic development.

The proposed transaction, however, is contingent upon approvals from the Federal Government of Nigeria and other relevant regulatory bodies.

To ensure adherence to regulatory protocols and safeguard national interests, the government has initiated a comprehensive due diligence process, commencing with a high-level meeting held on Monday.

Parties involved in the deal, alongside officials from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), convened in Abuja for a thorough examination of the transaction details.

Gbenga Komolafe, the Chief Executive of NUPRC, outlined the government’s objective to conclude the divestment exercise by June, underscoring the importance of timely and meticulous evaluation.

Komolafe revealed that the government has enlisted the expertise of two globally renowned consulting firms, S&P Global and the BCG Group, to facilitate the due diligence process.

These consultants, recognized for their proficiency in financial analysis and regulatory compliance, will collaborate with NUPRC to ensure that the transaction aligns with industry best practices and regulatory standards.

The due diligence meeting served as a forum to discuss the proposed divestment of Shell’s participating interests in the SPDC JV assets, which are currently operated by the Shell Petroleum Development Company of Nigerian Limited.

These assets, awarded as Oil Exploration Licence-1 in 1949, have played a pivotal role in Nigeria’s hydrocarbon industry, contributing significantly to the nation’s crude oil and gas output.

With an estimated total reserve of nearly 5 billion barrels of oil and extensive gas resources, the SPDC JV assets hold immense strategic importance for Nigeria’s energy security and economic prosperity.

However, as Nigeria seeks to optimize its energy sector operations, the selection of a responsible and capable successor to manage these assets remains paramount.

As discussions continue and the due diligence process unfolds, stakeholders remain optimistic about the prospects of the deal.

Representatives from Shell, Renaissance Africa Energy, and regulatory authorities expressed their commitment to ensuring a transparent and seamless transition, with the overarching goal of advancing Nigeria’s energy sector agenda.

The outcome of the scrutiny surrounding Shell’s $2.4 billion asset sale will not only shape the future of Nigeria’s energy landscape but also demonstrate the country’s commitment to fostering a conducive investment environment and promoting sustainable development in the oil and gas sector.

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POS Terminal Deployment in Nigeria Hits 2.68 Million in March 2024

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POS Business in Nigeria

The total Point of Sale (POS) terminals deployed across Nigeria have now reached 2.68 million as of March 2024.

According to data released by the Nigeria Inter-Bank Settlement System (NIBSS), this represents a Year-on-Year (YoY) growth rate of 47.36% and reflects the accelerating pace of digitalization within the nation’s financial sector.

The proliferation of POS terminals signals a fundamental shift towards cashless transactions, as businesses and consumers increasingly embrace the convenience and efficiency offered by digital payment solutions.

This surge in adoption highlights the growing reliance on technology to facilitate financial transactions, driving innovation and transforming the way commerce is conducted across various sectors of the economy.

Breaking down the figures, January 2024 saw a deployment of 2.47 million POS terminals, representing a significant YoY increase of 50.61% compared to the same period in 2023.

Similarly, February 2024 witnessed a surge in deployment with 2.58 million POS terminals, marking a YoY growth rate of 54.49% compared to February 2023.

While these numbers paint a picture of rapid expansion, a closer examination reveals that there are over a million registered POS terminals yet to be deployed or taken up by merchants.

In January 2024, the number of registered terminals reached 3.44 million, rising from 2.31 million in 2023. February and March continued this trend, with registered terminals reaching 3.6 million and 3.73 million respectively in 2024.

The increase in registered POS terminals underscores the potential for further expansion and utilization within Nigeria’s digital payment landscape.

As the number of terminals continues to grow, there is a clear indication of the country’s readiness to embrace cashless transactions on a broader scale, paving the way for increased financial inclusion and efficiency.

Industry stakeholders view this surge in POS terminal deployment as a positive step towards realizing Nigeria’s vision of becoming a digital economy powerhouse.

However, challenges such as infrastructure development, regulatory frameworks, and merchant adoption still need to be addressed to fully harness the potential of digital payments in driving economic growth and development.

As Nigeria moves towards a cashless future, collaboration between the public and private sectors will be crucial in overcoming these challenges and ensuring that the benefits of digitalization are accessible to all segments of society.

With the continued expansion of POS terminal deployment, Nigeria is poised to emerge as a leader in digital payments innovation, transforming the way transactions are conducted and driving economic progress in the process.

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