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The United Kingdom Invests £10 million in Nigeria’s Energy Sector

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By Derrick Bangura.

Nigeria’s low-carbon energy project has received a £10 million injection from the United Kingdom. The concessional financing will help Nigeria meet its COP26 obligations by lowering risks and encouraging pension and insurance funds to invest in energy access initiatives.

Following a successful investigation by the British Serious Fraud Office into the employment of corrupt agents in the oil and gas sector, the UK negotiated an agreement with the Nigerian government that would allow the country to receive £210,610 in compensation.

On Monday, the governments of Nigeria, the United Kingdom of Great Britain, and Northern Ireland signed a Memorandum of Understanding (MoU) pledging to work together to combat corruption.
The MoU was signed by Vicky Ford, the UK’s Minister for Africa, and Abubakar Malami, the Attorney General of the Federal Republic of Nigeria and Minister of Justice, who was represented by Mohammed Umar, the Permanent Secretary in the Ministry of Justice. It lays out the terms and conditions under which the UK and Nigerian governments will make the reparation payment.

“The Security and Defence Dialogue conducted in February 2022 between our two countries reinforced both the UK and Nigeria’s resolve to work together to counter illicit financial flows, bribery, and corruption,” Ford stated during the signing of the MoU.

“The United Kingdom has a zero-tolerance stance toward corruption, and we trust that today’s signing demonstrates our commitment to this.”

She stated that in a global economy where international trade is critical, corporations must operate with honesty and openness more than before.
Illicit money flows, bribery, and corruption have all been cited as key roadblocks to both countries’ economic progress, commerce, and security.

A four-year corruption probe launched by the UK’s Serious Fraud Office (SFO) resulted in the reparation payout from the UK to Nigeria. The funds were recovered through a Deferred Prosecution Agreement (DPA), in which the prosecutor agrees to drop charges in exchange for the defendant consenting to certain conditions, such as recognizing criminal responsibility and paying the required reparation.

The DPA was reached with Amec Foster Wheeler (AFWEL) in this matter, and it related to the use of corrupt agents in the oil and gas industry.

The payment proved that if such offenses were discovered, the UK Serious Fraud Office (SFO) would investigate the corporations and, if proof was discovered, ensure that they were subjected to appropriate sanctions.
The UK government remitted £4.2 million to Nigeria in March 2021 from cash recovered from former Delta State Governor James Ibori’s cronies.

“The Government of the United Kingdom shall transfer the compensation payment in the sum of £210,610 (118.4 million Naira) within twenty-eight (28) days from the date of signing this MOU,” according to the agreement.

“The MoUs confirm that the Nigerian government has promised to use the returned monies for projects that will benefit and improve the country in both cases.”

“The United Kingdom will continue to restore all illicit assets, whatever of value, in accordance with the United Nations Convention Against Corruption (UNCAC).”

“We take a zero-tolerance approach to corporations who think they can bribe their way to financial success,” stated Lisa Osofsky, Director of the Serious Fraud Office in the United Kingdom. Bribery and corruption not only hamper real economic progress and free trade, but they also harm democracy, putting all of our countries’ security at risk.
“I am, of course, delighted that the tenacity of my SFO colleagues has resulted in the people of Nigeria being compensated in a way that will truly benefit them.”

Malami, while thanking the UK for the gesture, promised that the repatriated fund would be expended on the Lagos-Ibadan Expressway, Abuja to Kano road, and the Second Niger Bridge.

On UK’s injection of £10 million of concessional financing alongside InfraCredit to mobilise pension and insurance investments, the statement noted that it would help to reduce the risk for pension and insurance funds to invest in energy access projects, and support Nigeria’s COP26 commitments.

The financing would also help Nigerian investors focus on low carbon energy, and support off-grid, low-carbon energy projects. Additionally, the £10 million would be blended to de-risk transactions and, therefore, mobilise domestic institutional investment from local pension funds, insurance firms and other local institutional investors. This would help scale up domestic financing for eligible off-grid clean energy infrastructure, such as solar mini-grid and home systems, clean cooking infrastructure and SME cold storage infrastructure in Nigeria.

UK Minister for Africa, Vicky Ford, speaking on the investment, said, “The UK is committed to increasing both renewable energy and energy access in Nigeria, driving clean, sustainable and resilient growth.

“As the world looks to transition to clean growth, we are witnessing an era-defining opportunity for the private sector. This transaction is particularly exciting as it brings together UK government support with the institutional capital, which is essential to grow the sector at scale.

“This innovative blended finance initiative will provide affordable long-term financing from local investors for the low carbon energy sector to support scaling up of off-grid low carbon energy projects in unserved and underserved communities.

“This initiative will support the implementation of Nigeria’s Nationally Determined Contributions plan, which Nigeria submitted to the UNFCCC before COP26, its Energy Transition Plan, which was presented by the Nigerian government at COP26, and Nigeria’s plans to increase energy access, including the Solar Naija programme.”

On his part, the MD/CEO, Nigerian Sovereign Investment Authority (NSIA), and Chairman of InfraCredit, Uche Orji said:

“InfraCredit is pleased to be working with FCDO to mobilise private investment from domestic pension funds and other institutional investors into such an important developmental area as low carbon energy access.

“This programme is aligned with NSIA’s other clean energy initiatives which aims to deliver up to 250-500MW of renewable energy capacity in Nigeria that will reduce annual CO2 emissions, alleviate poverty, create jobs and support local economic growth.”

Speaking at the announcement, the Minister of State for Power, Mr. Godwin Jedy-Agba, said with the support from the UK Government’s Energy Transition Council showed the pathway to an energised economy and carbon neutrality by 2060. The assistance also highlighted the need for additional investments of $410 billion above business as usual over the next 40 years.

Jedy-Agba stated, “Whereas all efforts have been geared towards unlocking private sector activity in the clean energy transition, one major challenge continues to be private sector access to local currency financing. This is where local institutions such as pension and insurance funds have a key role to play, as only these institutions possess the scale of local currency liquidity required to accelerate the transition.”

The Minister of Foreign Affairs, Geoffrey Onyeama, at a meeting with Ford said the federal government looked forward to cooperate with the United Kingdom (UK) in the security of the West African sub-region.

Onyeama received, in audience, the United Kingdom Minister for Africa, Latin America and the Caribbean. He expressed gratitude to the government of the United Kingdom for its extensive and significant support in diverse areas, stating that the West African sub-region is facing huge security challenges, including governance challenges.

He noted that the COVID-19 pandemic had a big hit on the economies of the world and also expressed gratitude to the United Kingdom for support during the period, particularly with vaccines and other support in the area of health.

Onyeama added that the United Kingdom had been involved in the security of the West African sub-region, saying a lot is going on in the sub-region, particularly in Mali, Guinea, and Burkina Faso with the support of the United Nations.

The minister said, “So, we look forward to continuing to cooperate with you in this area because we feel that it is not something that we can do alone in the sub-region.

“We need the United Nations’ support and also the support of European countries. We have been engaged and in the framework of the G5 Sahel and other initiatives.”
Ford went on to say that the UK would be speaking with the Nigerian government about how to help with community policing, training, and upgrading the police force.

Ford, on the other hand, stressed that the move was a collaborative effort rather than the UK dictating Nigeria what to do.

“This was us listening, exchanging experiences, especially from national security areas that we may have seen and experienced both in our country and around the world, and putting our experiences together,” she continued.

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Businesses count losses amid power outage in Bauchi, Gombe, and Jigawa

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Business owners in Bauchi, Gombe and Jigawa are recording losses due to week-long blackout ocassioned by vandalism of the power transmission line in parts of northern Nigeria.

The sudden disruption in electricity supply in the past days, also affected essential services such as water, sanitation, street lighting and healthcare delivery as most hospitals have been operating without light.

Some of the affected businesses including shop keepers, millers and artisans, who spoke while reacting to a survey by the News Agency of Nigeria (NAN), described the situation as “pathetic”.

The survey examined the perennial collapse of national grid and the need for alternative power supply in the country.

Rice millers in Gombe had decried the impact of the erratic power supply on their businesses.

A Miller, Musa Arab, at Nassarawo Industrial Layout in Gombe, said the trend was crippling their operations as they relied on electricity supply from the grid to process paddy.

He said the mills were not operational power outage as they could not afford exorbitant pump prices of petrol or diesel to run their machines.

This, he said, reduced the volume of rice supply to the market and posed serious challenge to food security.

“We must invest in power because it is the biggest determining factor for industries to thrive.

“I have over 20 workers in my mill, and we have 100 mini rice mills here, so you can imagine those who have no jobs for the past 10 days.

“Government must go tough on those responsible for the perennial grid collapse because some persons may be benefitting from it,” he said.

Also, Yusuf Ibrahim said the situation might trigger the already fragile inflation, as prices of local varieties would shot up ocassioned by the diminish supply.

He said that some had jerked up their charges to cover the expenses on diesel thereby affecting rice prices.

A check by NAN at the Gombe Main market showed that a 100 kilogramme of rice was sold for between N120,000 and N160,000, as against N110,000 and N150,000, before the blackout.

Mr Usman Sani, a rice dealer, attributed the hike in price to low supply of the produce to the market in spite of the number harvest recorded this cropping season.

He said the prices had decreased slightly at the onset of the harvest, however, it showed sprawling increase due to power outage.

“The price of rice is already dropping as a result of harvest but the trend reverse since the blackout in the past days “ he said.

Ugochukwu Daniel, a bartender in Bauchi, decried the epileptic power supply in the country, adding that lack of durable energy supply would retard Nigeria’s quest to attain social and economic greatness.

Daniel said that she spent much on fuel to run power generator for refrigrator and lightening the beer parlour, to enable her to keep the business running.

He said that businesses could only thrive in an enabling environment with stable electricity supply, to enhance wealth creation and reduce poverty among Nigerians.

“My trade is about chill drinks and it survives on electricity to operate otherwise you will out of bussiness.

“Without electricity there is nothing you can do, and not only business but about everything. We depend on it,” he said.

Similarly, Samuel Adamu, said the persistent power outage had forced him to patronised charcoal for ironing clothes in spite of its high cost and cumbersome processes.

He said that most cleaners in the area had resorted to fabricated iron charcoal in spite of hike in its prices which suddenly jumped from N5,000 to N15,000.

Adamu said the situation also encouraged division of labour in laundry to cut cost and make some gains.

“Presently, I do wash the cloth, and engage someone for ironing. The charge is N300 per set as against N150”.

While advocated development of renewable energies to enhance power supply in the country, Adamu urged security agencies to entensify efforts towards electrical installations in the country.

In the same vein; Mr Muhammad Adamu, Chairman, Jigawa State House Assembly Commitee on Power and Energy, said the Jigawa Electricity Law 2024, made sound provisions to improve power generation and distribution in the state.

This, he said, was an offshoot of the devaluation brought about by the 5th alteration of the constitution, where removed power from the executive legislative list and to the concurrent list.

“It empowered the state houses of assembly to enact laws on power.

“The committee has also carefully pursued the bill and reviewed its structure and the promise it holds for the state power sector, infrastructure and the overall economy of the state.

“The new law will pave way for the establishment of Jigawa Electricity Commission, to regulate the state’s electricity market,” he said.

According to Adamu, the law will protect residents and investors in the energy sector through ensuring prepaid meter installation and possibility of recouping investor’s funds as well as address vandalism.

“The law will lead to provision of reliable, affordable and sustainable power, essential for development of all sectors of the economy, particularly in rural areas,” Adamu said.

“Vandalism will be over because we pay Kano Electricity Distribution Company (KEDCO) money for powered supplies, but whenever there is problem of damages or broken down transformers, it is either the communities or individuals that pay for the repairs”.

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Mercedes urges delay of EU tariffs on Chinese electric vehicles

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Mercedes urges delay of EU tariffs on Chinese electric vehicles

The head of German luxury carmaker Mercedes-Benz, has called for the European Union to de-escalate the dispute with China over tariffs on electric cars.

“We need more free trade instead of new trade barriers.

“That is why it is important to find a solution that suits both the EU and China,” chief executive Ola Källenius told the Monday edition of Bild newspaper.

“The negotiations for this take time. In order not to jeopardise them, the EU should postpone the enforcement of the planned tariffs,’’ he said.

At the start of the month, a majority of EU countries paved the way for additional tariffs of up to 35.3 per cent on battery-powered electric vehicles imported from China.

Germany, however, voted against the measure amid concerns over retaliatory actions which could hurt the country’s giant car industry.

The European Commission had pressed for extra tariffs after an investigation accused Beijing of subsidising domestic electric car manufacturers, and thus distorting the market in the EU.

But whether the import tariffs would actually come into force at the beginning of November is still up to the commission.

The plans can still be dismissed if Brussels reaches a solution with China at the negotiating table.

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ACCI moves to promote business connections, balance work-life

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ACCI moves to promote business connections, balance work-life

The Abuja Chamber of Commerce and Industry (ACCI), is taking innovative steps to enhance professional relationships and promote a healthy work-life balance.

The President of ACCI, Dr Emeka Obegolu, said this in a statement on Tuesday in Abuja.

Obegolu said ACCI was committed to creating environments where professionals could connect beyond the confines of traditional boardrooms.

He said the upcoming “Business Meets Golf’’ Tournament epitomises this vision.

“Scheduled for Oct. 18 to Oct 19 at the IBB Golf Club, the tournament will gather industry leaders, top executives, and key decision-makers for a unique networking experience.

“This two-day event aims not only to strengthen business ties but also to foster partnerships that can drive economic growth.

“The ACCI’s initiative reistates the importance of maintaining a balance between professional achievement and personal well-being.

“By encouraging corporate cultures that prioritise relaxation and self-care, the Chamber acknowledges that such balance is vital for productivity and overall success,” he said.

According to Obegolu, the event will feature a range of activities designed to facilitate both business engagement and relaxation.

“Highlights include a Business-to-Business (B2B) cocktail on the first day, followed by the golf tournament and additional networking opportunities on the second day.

“The tournament will culminate in an awards ceremony recognising outstanding golfers among the participants.

“‘Business Meets Golf’ exemplifies our dedication to fostering innovative networking opportunities.

“We aim to create spaces for meaningful discussions that can lead to impactful collaborations,” Obegolu said.

The ACCI boss said in addition to promoting business connectivity, the council aimed to restate the importance of relaxation and a balanced lifestyle.

Obegolu said through events like this, the Chamber continued to play a pivotal role in supporting trade and industry in Nigeria while driving sustainable growth within the private sector.

He said to raise awareness about this landmark event, ACCI was partnering with the News Agency of Nigeria (NAN) and Media Trust Limited, to ensure broad visibility and engagement from leading brands.

The Abuja Chamber of Commerce and Industry (ACCI), is taking innovative steps to enhance professional relationships and promote a healthy work-life balance.

The President of ACCI, Dr Emeka Obegolu, said this in a statement on Tuesday in Abuja.

Obegolu said ACCI was committed to creating environments where professionals could connect beyond the confines of traditional boardrooms.

He said the upcoming “Business Meets Golf’’ Tournament epitomises this vision.

“Scheduled for Oct. 18 to Oct 19 at the IBB Golf Club, the tournament will gather industry leaders, top executives, and key decision-makers for a unique networking experience.

“This two-day event aims not only to strengthen business ties but also to foster partnerships that can drive economic growth.

“The ACCI’s initiative reistates the importance of maintaining a balance between professional achievement and personal well-being.

“By encouraging corporate cultures that prioritise relaxation and self-care, the Chamber acknowledges that such balance is vital for productivity and overall success,” he said.

According to Obegolu, the event will feature a range of activities designed to facilitate both business engagement and relaxation.

“Highlights include a Business-to-Business (B2B) cocktail on the first day, followed by the golf tournament and additional networking opportunities on the second day.

“The tournament will culminate in an awards ceremony recognising outstanding golfers among the participants.

“‘Business Meets Golf’ exemplifies our dedication to fostering innovative networking opportunities.

“We aim to create spaces for meaningful discussions that can lead to impactful collaborations,” Obegolu said.

The ACCI boss said in addition to promoting business connectivity, the council aimed to restate the importance of relaxation and a balanced lifestyle.

Obegolu said through events like this, the Chamber continued to play a pivotal role in supporting trade and industry in Nigeria while driving sustainable growth within the private sector.

He said to raise awareness about this landmark event, ACCI was partnering with the News Agency of Nigeria (NAN) and Media Trust Limited, to ensure broad visibility and engagement from leading brands.

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