Business

As Wale Edun Re-awakens an Economy on the Edge of Collapse

Published

2 months ago

December 7, 2024

As Wale Edun Re-awakens an Economy on the Edge of Collapse

When President Bola Tinubu appointed Olawale Edun as Nigeria’s finance minister and coordinating minister of the economy in August 2023, many analysts wondered how he, alongside his colleagues in the fiscal and monetary authorities, would rejig an economy on the edge of total collapse.

A few months before the appointment was announced, Tinubu had just won a brutally disputed February 2023 presidential election, which was being challenged by his main opponents in court at the time. Vice President Atiku Abubakar, candidate of the People’s Democratic Party (PDP) and Peter Obi, the candidate of the Labour Party, both came second and third in the keenly contested elections. Both men claimed that the elections were rigged, and that Tinubu should be so removed from office.

Although Tinubu’s elections would later be confirmed by the election tribunals and the Supreme Court, the administration at the time faced serious legitimacy issues.

In that sense, among market analysts and economic experts, Wale Edun’s job was considered near-impossible.

It is important to state clearly that the scepticism that trailed his appointment didn’t stem from any doubt about Wale Edun’s expertise and competence to drive the reform; far from it!

In fact, he came very prepared for the job, as results of the past few months have shown.

Olawale Edun has a background in merchant banking, corporate finance, economics and international finance at both national and international levels. He is a former Chair of ChapelHillDenham Group, Lagos, a leading investment bank. He was an executive director of Lagos merchant bank, Investment Banking & Trust Company Limited, now Stanbic IBTC. He is also the Chair of Livewell Initiative, a not for profit organisation that specialises in health literacy advocacy and practical training in Nigeria, and a Trustee of Sisters Unite for Children, a not for profit institution that focuses on helping street children in Lagos.

But there were just too many hurdles for the President Bola Tinubu government to cross at the time, amid poor fiscal position, widespread poverty, dwindling revenues and drifting economy.

At the time of Edun’s appointment, Nigeria’s inflation rose to an 18-year high in July 2023. The country also faced widespread insecurity, mounting debt burden, high unemployment and slow growth which stoked tension among the population already struggling with a high cost of living.

To rejig the economy, Tinubu decided to embark on some of the boldest reforms that Nigeria has seen in years, including scrapping a popular but costly petrol subsidy and removing exchange rate restrictions.

Consequently, the naira weakened to record lows amid sky-high inflation and poverty.

Gains of Reforms

But in recent months, the pains witnessed by Nigerians seem to be paying off gradually as the gains of reforms are now manifesting.

Nothing demonstrates the confidence being restored in the local economy like how Nigeria recently achieved a milestone with its first-ever domestic dollar bond, which was oversubscribed by 180%.

Initially aiming to raise $500 million, the government finally secured $900 million in commitments. This result surprised many, given Nigeria’s fragile economic situation.

Wale Edun described the bond as a landmark for the country’s domestic market, adding that this success demonstrates investors’ confidence in the country’s ability to turn the economy around.

The bond, with a 9.75% coupon paid semi-annually over five years (an effective rate of 9.99%), is aimed at financing strategic projects in key sectors such as energy and infrastructure. The bond is part of a broader $2 billion program registered with Nigeria’s Securities and Exchange Commission. According to the terms of the issuance, the government has the option to absorb additional subscriptions up to the program’s full $2 billion limit.

The 180% oversubscription was indeed a major victory, drawing interest from Nigerian investors, the diaspora, and international institutions.

But before then, there has equally been some gains in the economy, all pointing towards Edun—-and indeed Tinubu’s—-rejig of the economy.

Already, the Federal Government no longer depends on the Central Bank of Nigeria (CBN) to fund its emerging obligations,a major part of the fruits being yielded by ongoing efforts to improve efficiency and ramp up revenues.

In September, Edun said the government has exited the use of Ways and Means advances for meeting emerging financing obligations, a practice that had been rampant until recently.

Within the periods, the federal government through the Central Bank of Nigeria cleared all outstanding matured and verified FX backlogs totaling $6 billion owed to various creditors, including foreign airlines.

All of the payments were without any depletion in the nation’s foreign reserves. Rather, the reserves have risen to a high of $41 billion, even as the nation remains at a far better fiscal position than it was before the new government came in, now meeting its obligations to creditors without hassles.

In recent months, it has become equally obvious that government was working to plug all loopholes and optimise Nigeria’s financial potential by ensuring that the country’s sovereign assets are fully harnessed for growth and development. Nigeria has huge stranded assets, which the government is expected to unlock to boost its financing liquidity, and efforts are being directed towards this path in recent months.

Another major gain of the government’s macroeconomic reforms is that the country now records a monthly net inflow of about $2.35 billion into its foreign exchange (forex) reserves in the recent months, an inrease that has contributed significantly to the stability of the naira in the forex market. Consequently, between Monday and today, Wednesday, the Naira has gained over N140 in the parallel market while strengthening and stabilizing in the orthodox market.

One equally important development that demonstrates the efficacy of Edun’s managerial competence was evident in the recent endorsement of the economic reforms by the International Monetary Fund. In her engagement with President Tinubu in November, the Managing Director of the International Monetary Fund, Kristalina Georgieva, commended Nigeria’s economic reforms under the leadership of Tinubu.

The IMF chief highlighted the progress made by Nigeria in its quest for economic stability and assured that the IMF remains strongly committed to supporting Nigeria on its path to recovery and sustained development.

What all of these have shown is that while reforms championed by Edun, Cardoso and others can be painful and tortuous, the gains can only reset a collapsing economy and fix a better future for younger Nigerians.

Like Georgieva said, the reform will surely “accelerate growth and generate jobs for its (Nigeria’s) vibrant population.” Surely, Wale Edun and others deserve all the support they can get.

Business

TM Foundation: Transforming Lives, One Generation at a Time

Published

1 day ago

January 22, 2025

Sahara Weekly

From Automobiles to Acts of Compassion: Olatunde Mukaila Lawal is Transforming Lives in South Africa

TM Foundation: Transforming Lives, One Generation at a Time

In a world where compassion is increasingly vital, TM Foundation stands out as a beacon of hope and empowerment. Established in 2019 by the visionary Olatunde Mukaila Lawal, this South Africa-based organization is dedicated to uplifting the elderly, less privileged kids, and the vulnerable, fostering stronger communities through a mission rooted in dignity, love, and care.

Making an Impact Since 2019

TM Foundation began with a simple yet powerful goal: to create meaningful change for those often overlooked. Since its inception, the foundation has provided vital resources and emotional support to kids, seniors and young individuals, bridging the gap between generations and creating a sustainable future for all.

“We believe in the transformative power of compassion,” says Lawal. “Our work is about more than just helping—it’s about empowering people and building stronger, more resilient communities.”

A Multi-Faceted Mission

TM Foundation operates on three key pillars:

Social Support and Companionship: Ensuring no one feels forgotten, the foundation offers a caring hand and a listening ear to, kids, seniors and others in need.

Promoting Wellness Across Ages:

Through various programs, TM Foundation prioritizes physical, mental, and emotional well-being for all generations.

Fostering Compassion and Understanding: Building bridges of empathy, the foundation strengthens the fabric of communities.

These programs aim to create lasting change by addressing both immediate needs and long-term challenges.

Why You Should Support TM Foundation

TM Foundation’s efforts rely on the support of individuals and businesses who share their vision. Your contribution—whether through donations, volunteering, or spreading the word—directly impacts lives. From funding wellness programs to providing companionship for seniors, every act of kindness counts.

“Together, we can ensure no one feels forgotten or alone,” Lawal emphasizes. “It’s about leaving a legacy of compassion and empowerment.”

How to Get Involved

There are many ways to support TM Foundation:

Volunteer: Offer your time and skills to assist in their programs.
Donate: Your financial contributions help sustain their impactful initiatives.
Raise Awareness: Spread the word about TM Foundation’s mission to inspire others.

Contact TM Foundation
Email: [email protected]
Website: www.tmfoundation.giving
Phone (South Africa): +27823781398 | +27 81 289 0171 | +27 69 286 4950 | +27747835891
Phone (Nigeria): +234 813 448 0159

Join TM Foundation today and become part of a movement dedicated to empowering seniors and young ones. Together, we can build a brighter, more compassionate future.

Business

Olam Agri and GIZ Sign MoU to Scale Up Sustainable Development in Global Agriculture and Food

Published

2 days ago

January 21, 2025

Sahara Weekly

Olam Agri and GIZ Sign MoU to Scale Up Sustainable Development in Global Agriculture and Food

Singapore, January 20, 2025 – Olam Agri, a market leading food, feed, and fibre agri-business, has signed a Memorandum of Understanding (MoU) with German development agency Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH to scale up sustainable development in the global agri-food sector. The MoU provides a framework that will facilitate collaboration between the two partners across staple agriculture supply chains that include rice, cotton, and rubber in developing markets in Asia, Africa, and Latin America. This extends and deepens the long-standing partnership that GIZ and Olam Agri have shared over the past 15 years helping smallholder farmers become more productive, profitable, and sustainable.

Three key objectives of the MoU are to support sustainable food production at a range of scales towards climate adaptation while protecting and preserving soil health, biodiversity, and water resources; to improve the livelihoods of smallholder farmers and providing them with access to key services and inclusive opportunities; and establishing sustainability and traceability across agriculture supply chains. This is aligned with Olam Agri’s purpose to transform food and agriculture for a more sustainable and food-secure future.

For joint projects, GIZ and Olam Agri have identified six priority intervention areas: nutrition-sensitive regenerative agriculture; harvest and post-harvest loss reduction; access to finance for smallholders; economic inclusion and rights; management of crop residues and reuse; and ecosystem services, including protection and restoration of ecosystems and carbon initiatives. Both partners will continue to identify topics relevant across value chains and regions to drive innovation and scaling, with possible cross-sectoral issues including climate and carbon credits, landscape-scale approaches, and digitisation.

Sunny Verghese, Co-Founder & Group CEO of Olam Agri, said: “We’ve shared a strong and fruitful relationship with GIZ over the years during which we’ve made significant inroads in transforming smallholder farming in several supply chains across many geographies to be more productive, profitable, and sustainable. I am thrilled to be signing this MoU with such a valuable partner that is GIZ and commit to collaborate even further to scale up our sustainability programmes in developing and emerging agriculture economies.”

Anna Sophie Herken, Managing Director at GIZ said: “The signing of this MoU with Olam Agri marks a pivotal step forward in our collaborative efforts towards sustainable food production. I am very happy and grateful that we can deepen and broaden our cooperation efforts simultaneously. We look forward to enhancing the scope and impact of our successful projects in climate-smart farming.”

The MoU builds upon years of successful cooperation between the two organisations since 2008. Starting in Africa, the partnership has expanded through several key initiatives. In the rice supply chain, for example, the progress the partnership has made with the founding of the Sustainable Rice Platform (SRP) in 2011 has led to positive transformation of the sector by advancing sustainable rice cultivation. Through climate-smart methods and technologies, sustainable rice cultivation reduces usage of water and fertilisers, and consequently significantly reduces the emission of methane, a greenhouse gas contributing to global warming. Under the joint efforts of GIZ and Olam Agri, the Market Oriented Smallholder Value Chain (MSVC) rice project in Southeast Asia has improved the livelihoods of more than 28,000 smallholder farmers and their families in four years, raising their incomes by 20 per cent while reducing their ecological impact. GIZ and Olam Agri continue to engage smallholder rice farmers in Southeast Asia in large scale projects and currently also cooperate in a regional sustainable cotton project in Togo, Côte d’Ivoire, and Chad, and in sustainable natural rubber in Côte d’Ivoire and Indonesia.

Business

Shocking Fraud: Nigerian CEO and Companies Sanctioned by World Bank

Published

3 days ago

January 21, 2025

Sahara Weekly

Shocking Fraud: Nigerian CEO and Companies Sanctioned by World Bank"

World Bank Debars Nigerian Companies Over Corruption in Social Safety Net Project

By femi oyewale

The World Bank Group has announced the 30-month debarment of two Nigerian companies, Viva Atlantic Limited and Technology House Limited, along with their Managing Director and CEO, Mr. Norman Didam, for engaging in fraudulent, collusive, and corrupt practices linked to the National Social Safety Nets Project in Nigeria.

In a statement released on Monday, the World Bank detailed unethical actions during the 2018 procurement and contract processes for the project, which was designed to provide financial assistance to poor and vulnerable households.

“The World Bank Group today announced the 30-month debarment of two Nigeria-based companies—Viva Atlantic Limited and Technology House Limited—and their Managing Director and Chief Executive Officer Mr. Norman Bwuruk Didam. The debarment is in connection with fraudulent, collusive, and corrupt practices as part of the National Social Safety Nets Project in Nigeria,” the statement read.

Allegations and Findings

According to the World Bank, Viva Atlantic Limited, Technology House Limited, and Mr. Didam misrepresented a conflict of interest in their bids and gained access to confidential tender information from public officials. These acts violated the bank’s Anti-corruption Framework.

The companies and Mr. Didam also falsified experience records, submitted fake manufacturer authorization letters, and offered inducements to project officials, further undermining the integrity of the initiative aimed at assisting Nigeria’s most vulnerable populations.

The statement added, “Viva Atlantic Limited and Mr. Didam misrepresented Viva Atlantic Limited’s experience and submitted falsified manufacturer’s authorization letters, as well as offered and provided things of value to project public officials. These actions were fraudulent and corrupt practices, respectively.”

Sanctions and Compliance Measures

The debarment bars the two companies and Mr. Didam from participating in World Bank-financed projects and operations for the next 30 months. As part of their settlement agreements, the parties admitted their culpability and agreed to meet specific conditions, including enhanced compliance measures.

Mr. Didam is required to complete individual ethics training, while both companies must strengthen their internal integrity policies and implement corporate ethics training programs aligned with the bank’s Integrity Compliance Guidelines.

The World Bank noted that reduced debarment periods were granted due to the parties’ cooperation during the investigation, voluntary corrective actions, self-imposed restraints from bidding, and the time elapsed since the infractions.

Broader Implications

The debarments are subject to cross-debarment by other multilateral development banks under the 2010 Agreement for Mutual Enforcement of Debarment Decisions, further limiting the companies’ ability to participate in international development projects.

The World Bank reiterated its zero-tolerance policy on corruption, emphasizing that the implicated parties must fulfill the stipulated conditions during the debarment period to regain eligibility for future Bank-funded initiatives.

“The companies also commit to continue to fully cooperate with the Bank Group Integrity Vice Presidency,” the statement concluded.

This development underscores the World Bank’s commitment to ensuring transparency and accountability in its projects, particularly those aimed at improving the livelihoods of the world’s most vulnerable populations.