Eat the rich
Nigerian businessmen are calling CBN out over rising interest rates
Good morning, Big Brains. Is it just me or is every Nigerian going through it? I’ll never tweet this but I want to give Dangote a big hug (allow, I’m an empath). Not in a million years did I imagine that I’d ever see that man complain to normal people like us. But nothing surprises me in 2024 anymore.
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Let’s get into today’s edition:
CPPE calls on the Central Bank to stop lending rate increases
Dangote refinery to look for oil from Libya and Angola due to supply issues in Nigeria
Army warns against using military camouflage without permission
The Big Deal
CPPE calls on the Central Bank to stop lending rate increases
The Central Bank of Nigeria has been responsible for some of the inconveniences Nigerians—including the richest man in Africa—-are hissing about right now. Yemi Cardoso, the governor of CBN, woke up one day and decided that an interest hike was exactly what Nigeria needed. That decision has caused the interest rate to jump from 18.75% to 26.25% over the past three months.
The repeated increase in interest rates has been criticised by business experts including Aliko Dangote, saying it makes borrowing money more expensive and worsens the country's economic problems.
Like many affected Nigerians, the Centre for the Promotion of Private Enterprise (CPPE) is now urging CBN to halt the interest rate hikes and there’s a chance that CNB will consider the request.
Why is this a big deal?
Last month, we reported that consumer credit in Nigeria has risen by 12%, meaning that Nigerians are borrowing more money now than they did last year. The rising cost of living has forced Nigerians who rely on loans for survival to face CBN’s outrageous interest rates. For the first time in a long time, the struggles of the average Nigerian are similar to those of the upper-class Nigerians who also rely on loans for business growth.
If the CBN agrees to lower the current interest rate, Nigerian business owners and citizens who depend on loans will sleep better at night, comforted by the thought of getting loans at reasonable rates.
Dangote refinery to look for oil from Libya and Angola due to supply issues in Nigeria
We should all know less about Dangote, but the man has been going through it and he wants the world to know. The Dangote Refinery in Lagos, one of the largest oil refineries in the world, has hit a major roadblock. Despite being a massive project capable of processing 650,000 barrels of oil a day, it's struggling to get enough crude oil from Nigeria to keep things running smoothly.
Dangote has turned to importing crude from distant places like Brazil and the United States, but he hasn’t had much luck so far.
So, what’s the plan?
Well, Dangote is keeping his optimism alive by trying to import crude from Libya and Angola to fill the gap left by Nigeria’s oil troubles. The refinery had hoped to rely on the Nigerian National Petroleum Corporation (NNPC), but the NNPC has been unable to meet the refinery’s demand.
As if that isn’t stressful enough for Dangote, the refinery has now found itself in hot water with Nigeria’s oil regulators, particularly the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA). The NMDPRA accused the refinery of producing fuel with too much sulfur and hinted that Dangote might be trying to monopolise the industry.
In response, Dangote has challenged the regulators to come to visit the plant in Lagos and see for themselves that their products are top-notch. He’s even put the brakes on plans to invest in Nigeria’s steel industry to avoid more accusations of trying to monopolize the industry
What’s our business?
If it survives the back-to-back challenges, the Dangote refinery holds some benefits for Nigerians. When it’s up and running at full capacity, it’s expected to create thousands of jobs and give Nigeria’s economy a major boost by cutting down on fuel imports. Let’s hope they can smooth out these bumps in the road.
Army warns against using military camouflage without permission
Hate to be the bearer of bad news but the Nigerian army just put an end to a fashion era that could have lasted a lifetime.
The director of army public relations, Onyema Nwachukwu, just confirmed that military camouflage fashion pieces are no longer allowed in Nigeria. Nwachukwu explained that this rule was made because terrorists and other criminals were misusing military uniforms to commit serious crimes.
“The Nigerian army is committed to following the law and keeping everyone safe,” he said.
This Week’s Big Question
“If you could witness any event in history, what would it be and why?”
Debola’s response - “I want to witness at least one genuinely free and fair election in this country. Even if it’s just once abeg.”
You can also share your response here and if it’s as interesting as Debola’s response, we’ll feature it in the next edition.
The Big Picks
I’ll Unite US To Defeat Trump, His Extreme Agenda, Says Kamala Harris: Kamala has pledged to unite the Democratic Party and the nation to defeat Donald Trump and his Project 2025 agenda.
Why Nigerians are praying for the success of a new oil refinery: A few months ago, a prayer was held in Kano, a city in northern Nigeria, for the success of the Dangote refinery, which was set to begin operations next month and Nigerians are still praying.
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