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Legal firebrand Falana asks Tinubu administration to enforce Naira Yuan swap deal

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Human rights lawyer, Femi Falana, SAN, has urged Nigerian business owners to conduct their business with China in naira since both nations signed a currency exchange agreement in 2018.

Mr Falana said in a statement on Monday that the agreement, valued at RMB 16 billion sought to enhance local currency liquidity for both Nigerian and Chinese industrialists and businesses, thereby mitigating the challenges of sourcing United States dollars.

“About five years ago, the Federal Government of Nigeria and China entered into a currency exchange agreement. The transaction, which was valued at RMB 16 billion or N720 billion was aimed at providing adequate local currency liquidity to Nigerian and Chinese industrialists and other businesses, thereby, reducing difficulties encountered in the search for the United States Dollar.

“The swap was also designed to improve the speed, convenience, and volume of transactions between the two countries,” part of the statement read.

However, according to Falana, “the International Monetary Fund and the World Bank, which superintend the Central Bank of Nigeria, have colluded with the Central Bank of Nigeria to frustrate the currency swap.”

According to him, the purpose “of the economic sabotage is to promote the dominance of the US dollar in Nigeria. Hence, the federal government, state governments, and the business community have been prevented from transacting business in Naira and Yuan.”

Falana also revealed that using the Freedom of Information Act, he recently sent an inquiry to the Central Bank of Nigeria to verify the current status of the currency swap agreement between Nigeria and China.

He noted that despite confirmation that the agreement remains valid, the CBN still restricts Nigerians from engaging in transactions in China using naira.

“I was recently compelled to exercise my right under the Freedom of Information Act by requesting the Central Bank to furnish me with information on the status of the currency swap agreement between Nigeria and China.

“In its reply to my letter, the Central Bank confirmed that the currency swap agreement will not be due for renewal until 2024. In spite of the confirmation of the currency swap, the Central Bank has not allowed Nigerians to transact business in China by paying Naira.

“However, since the currency swap is valid and subsisting, I call on the Nigerian business community to insist on transacting business in Naira, including payment for goods imported from China.”

How the EFCC abandoned its case against former Heritage Bank chief Ifie Sekibo

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Five years after filing a criminal case against Heritage Bank’s former chief executive Ifie Sekibo, the Economic and Financial Crimes Commission seems to have clandestinely abandoned the case.

The criminal complaint caused shockwaves within the banking sector after the EFCC announced the charges it had filed against the Rivers-born banker.

The agency was led at that time by Ibrahim Magu, who would later suffer a spectacular fall from grace after he was accused of graft and pocketing bribes to "kill" cases.

Interestingly, Mr Magu’s temporary and permanent successors have not deemed it fit to provide an update on the status of the criminal complaint filed against Mr Sekibo.

In 2018, the anti-corruption agency had charged the Managing Director of Heritage Bank, Ifiesimama Sekibo, before a Federal High Court in Lagos for allegedly perpetrating a fraud in the sum of N605,321,051.05.

Joined with Sekibo in the charge sheet marked FHC/C/95C/18 was Kolapo Kola Daisi and a company, Greame Properties Limited.

The EFCC, in the first count, alleged that Sekibo, on July 29, 2016, “while being a bank employee, to wit: Managing Director of Heritage Bank, acquired the sum of N180m beyond your legitimate income through Greame Properties Limited, a company owned by you.”

The EFCC prosecutor, Ekene Iheanacho, who signed the charge sheet, said the bank chief violated Section 7(1) of the Bank Employees, Etc (Declaration of Assets) Act, Cap B1, Laws of the Federation of Nigeria 2004 and he is liable to be punished under Section 7(2) of the same Act.

In the second count, the anti-graft agency alleged that Sekibo and Greame Properties Limited “did retain in the Diamond Bank Plc account number 0006129214 operated by Greame Properties Limited the sum of N180m received from the account of Vlamings Professionals Limited when you reasonably ought to know that the said money was direct proceeds of your unlawful activity, to wit: conspiracy and fraud.”

According to Mr Iheanacho, Sekibo and Greame Properties Limited acted contrary to Section 15(2)(d) of the Money Laundering Act 2011 (as amended by Act No. 1 of 2012) and are liable to punishment under Section 15(3) of the same Act.

In the third count, the EFCC alleged that Sekibo “acquired N125, 321, 051.05 beyond your legitimate income through the Diamond Bank Plc account of FIFC Development and Management Limited operated by you.”

In count four, the EFCC alleged that Sekibo conspired with Daisi “to transfer the sum of N300m proceeds of unlawful activity,” into the account of Hiltrans Global Investment Limited “when you reasonably ought to know that the said fund was fraudulently withdrawn from the account of Heritage Bank Company Limited in Access Bank Plc.”

EFCC arrests five over forgery of government documents

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The Economic and Financial Crimes Commission, EFCC, on August 24, 2023 arrested five people for allegedly using forged letterheads of the Offices of the National Security Adviser and the Attorney General of the Federation and Minister of Justice to fraudulently obtain money from unsuspecting members of the public.

The suspects are Mr. Yakubu Hamza Mohammed, Mr. Bashir Ladan, Mr. Adamu Ibrahim, Mr. Steven Anom and Mr. Mohammed Bello.

They allegedly conspired and used the letterheads to produce fake employment and recommendation letters for a fee, to unsuspecting members of the public.

EFCC spokesman Wilson Uwujaren said in a statement that the suspects would be charged to court as soon as the investigation is concluded.

Namibia plans US $2.1 B port expansion

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Namibia’s state-owned Namibian Ports Authority (Namport) has announced plans for a $2.1 billion port infrastructure expansion project to support the southern African country’s burgeoning energy industry.

The expansion project will involve the construction of new berths and quay walls at the country’s major port of Walvis Bay as well as the construction of a new port in the town of Lüderitz.

Under the plan, Namport will set aside roughly 350 hectares of land for development and will collaborate with the private sector through public-private partnership agreements, allowing companies to establish operations under a landlord port model.

“We are hoping to commence with the operation in the last quarter of next year, which will take about three years at most,” stated Namport CEO, Andrew Kanime, adding, “We are seeking private companies with technical expertise and financial resources to invest in this space.”

With offshore activity in Namibia accounting for approximately 13% of rigs working on African waters, the project will be designed to support drilling services at the country’s primary port of Walvis Bay. Meanwhile, a port at Lüderitz is poised to provide market access for the mineral rich Northern Cape Province of South Africa.

The announcement comes after significant oil discoveries were made by supermajors, TotalEnergies and Shell, in Namibia’s offshore Orange Basin in 2022 and 2023, resulting in an estimated resource base of 7 million barrels of oil equivalent for the country. Namibia is expected to reach first crude production by 2029 and is poised to become Africa’s fifth largest oil producer by 2030.

UNCTAD report shows Africa’s rise in global mineral chains

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A report by the United Nations Conference on Trade and Development (UNCTAD) shows that Africa has the potential to become a major participant in the global supply chain of critical minerals.

According to the report, which was released this month, Africa’s abundance of critical minerals and metals vital to technology-intensive industries and the energy transition, including aluminum, cobalt, copper, lithium and manganese, offers a new regional market opportunity for businesses and industries seeking to diversify and strengthen their supply chain relationships.

“Key players and stakeholders are looking to strengthen the resilience of existing supply chains by diversifying their sources. This may create an opportunity for African economies to heighten their involvement in global supply chains,” indicates the Economic Development in Africa Report 2023.

Recent upheavals in the geopolitical landscape, including trade turbulence, economic uncertainty, and climate challenges, have resulted in African countries becoming an increasingly attractive destination for multinational companies to source high-technology mineral resources. Diversified supply chains offer the potential to reduce inflationary pressure, contribute to increased stability and prosperity, while opening new domestic and regional markets for Africa, thereby contributing to the continent’s socioeconomic development.

“We believe that such a perspective for supply chain diversification provides new opportunities for African economies to position themselves as geographic alternatives and optimize their strategic value for future leading-edge supply chains,” stated UNCTAD Secretary-General, Rebeca Grynspan.

Critical mineral development will be crucial to transitioning towards a low-carbon global economy, with lithium, cobalt, copper, manganese, and graphite serving as critical elements for the development of solar panels and lithium-ion batteries used in electric vehicles. As such, Africa’s abundance of raw materials includes 48% of global cobalt and 47.6% of global manganese reserves, and nearly 15% of copper and 5% of lithium reserves, thereby positioning the continent to contribute significantly towards the global energy transition.