Connect with us

Business

Budget office DG defends Tinubu’s foreign engagements, faults Peter Obi’s claims

info

Published

on

Images 4.jpeg

The Director General of the Budget Office of the Federation, Tanimu Yakubu, has defended the foreign engagement strategy of President Bola Tinubu, describing recent criticisms by the former Anambra State Governor, Peter Obi, as a “populist simplification” of Nigeria’s economic realities.

Mr Yakubu, in an article titled “Foreign Engagements and the Dangers of Populist Simplification: Peter Obi’s Ignorance,” argued that Mr Obi failed to appreciate the complexities involved in rebuilding investor confidence and restoring economic stability in a country emerging from fiscal and monetary challenges.

On 16 May, Mr Obi criticised the value of recent foreign state visits by Nigerian leaders, arguing that such engagements must translate into measurable economic benefits for citizens, rather than ceremonial visits.

“State visits by leaders are not tourism, and diplomacy is not a fashion parade,” Mr Obi said.

According to Mr Yakubu, the Tinubu-led administration inherited an economy burdened by structural weaknesses, including fuel subsidy costs, exchange-rate distortions, mounting debt-service obligations, dwindling investor confidence, and heavy reliance on the Central Bank of Nigeria (CBN) financing to sustain government operations.

PT WHATSAPP CHANNEL

The Budget Office DG said under such conditions, international engagements should not be viewed as ceremonial trips but as strategic efforts aimed at rebuilding sovereign credibility, strengthening diplomatic relations, restoring investor confidence, and attracting long-term capital.

Mr Yakubu said the former Anambra state governor oversimplifies economic realities, which has a tendency to reduce complex questions of economic recovery.

“No serious analyst disputes that foreign engagements should ultimately produce measurable economic outcomes. The real issue, however, is whether Mr. Obi properly understands the sequence through which nations emerging from fiscal and monetary instability rebuild investor confidence, restore credibility, and reposition themselves within global capital markets.

“President Tinubu inherited an economy facing severe structural stress: an unsustainable fuel subsidy regime, multiple exchange-rate distortions, collapsing fiscal buffers, mounting debt-service pressures, dwindling investor confidence, and unprecedented dependence on Ways and Means financing simply to sustain government operations.

“Under such circumstances, international engagements are not mere ceremonial excursions; they become instruments for rebuilding sovereign credibility, restoring policy confidence, reassuring investors, strengthening diplomatic alignments, attracting long-term capital, and repositioning the country within regional and global economic networks,” Mr Yakubu said.

Economic comparison

He also faulted Mr Obi’s comparison of Nigeria’s economic situation with that of the United States under former President Donald Trump, saying the two countries operate under entirely different economic realities.

According to him, the United States engages China from the position of the world’s dominant reserve currency issuer, also as the largest consumer market on earth, and a mature industrial economy with deep capital markets and global technological dominance.

In contrast, the director general said Nigeria is a reforming emerging economy attempting to stabilize itself after years of fiscal distortion and policy disequilibrium.

Mr Yakubu further argued that the benefits of international engagements often take time to materialise, stressing that major investments, infrastructure partnerships, and sovereign financing commitments usually emerge gradually after sustained diplomatic and economic engagement.

ALSO READ: Ex-foreign affairs minister criticises Tinubu’s ambassadorial appointments

He described it as contradictory for critics to oppose reforms such as fuel subsidy removal and exchange-rate unification while simultaneously demanding immediate foreign investment inflows.

Mr Yakubu said its is inconsistent to oppose stabilization reforms on one hand while simultaneously demanding the investment confidence that only such reforms can eventually produce.

“More importantly, many of the benefits of state engagements do not materialize instantly in the form of dramatic headline announcements. Serious investments, infrastructure partnerships, manufacturing relocations, energy financing arrangements, and sovereign investment commitments often emerge gradually after sustained diplomatic engagement, policy stabilization, and investor confidence-building.

“Ironically, many of the same critics now demanding immediate investment inflows were among those who opposed the difficult stabilization reforms, including fuel subsidy removal and exchange-rate unification, that were necessary to restore the macroeconomic credibility investors require before committing long-term capital,” he said.

He extolled the administration and CBN’s achievements in stabilising the economy with reforms, and that Nigeria was approaching a dangerous fiscal cliff before the administration’s intervention.

“Diplomacy should indeed generate economic value. But rebuilding a damaged economy requires more than slogans, photo comparisons, or selective foreign analogies.

“It requires difficult decisions, international re-engagement, policy credibility, institutional stabilization, and the patience necessary for long-term economic restructuring to take root,” Mr Yakubu said.


Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Business

Continental Reinsurance’s $156.1M Public Offer Highlights Africa’s Growth Story

info

Published

on

The Continental Reinsurance Holdings Limited Public Offer continues to build momentum as investors take a closer look at one of Africa’s leading pan-African reinsurers and the long-term growth opportunity presented by the continent’s insurance sector.

The Public Offer, which opened on 5 August 2026, gives both retail and institutional investors the opportunity to participate in the continued growth of a business that has spent more than four decades supporting insurance markets across Africa.

As the first reinsurer to seek a listing on the Botswana Stock Exchange, the transaction represents an important milestone for both Continental Reinsurance and Botswana’s capital markets.

The transaction comprises US$126.1 million relating to the acquisition of existing shares and US$30 million in fresh primary capital for the Group, representing total IPO proceeds of approximately US$156.1 million. The listing will strengthen Botswana’s position as a platform for pan-African financial services, with the Group’s Botswana-domiciled holding company accredited under the Botswana International Financial Services Centre framework. Following approval by the Botswana Stock Exchange of a revised offer timetable, the Public Offer now closes on 9 October 2026. Lawrence Mutsunge Nazare, Group Managing Director, said:

“The Public Offer gives investors an opportunity to understand our business, our markets and our future growth plans. Continental Re has spent more than 40 years helping insurers across Africa absorb risk, build resilience and support economic growth. Through this Public Offer, we are inviting investors to participate in the next phase of that journey.

The US$30 million in fresh primary capital will strengthen our underwriting capacity, support solvency and rating resilience, and help scale our Alternative Solutions business. It will also support our aspiration to strengthen our financial strength rating over time, positioning Continental Re to serve even more clients across the continent. We believe our disciplined underwriting, strong governance, pan-African footprint and long-term growth strategy provide a compelling investment proposition, and we look forward to welcoming new shareholders.”

A Business Built Across Africa

Continental Re provides composite reinsurance solutions to insurance companies across more than 50 African countries through six regional hubs in Gaborone, Lagos, Nairobi, Douala, Abidjan and Tunis. For more than four decades, the Group has helped insurers manage risk, strengthen resilience and respond when catastrophic events occur. Today, it serves more than 900 cedant, broker and counterparty relationships through a diversified portfolio spanning Property & Engineering, Casualty & Liability, Marine & Aviation, Energy & Political Risks, Agriculture and Life Insurance.

The Group’s differentiation lies not in balance-sheet scale but in its pan-African distribution network, four decades of market experience and proximity to cedants and brokers across multiple linguistic, regulatory and economic environments – competing on market knowledge, relevance and responsiveness rather than size alone

Growth Capital Going to Work

Proceeds from the Public Offer will support Continental Re’s next phase of growth by:

Strengthening the Group’s capital base.
Expanding its Alternative Solutions business.
Supporting its aspiration toward a stronger financial strength rating over time.
Supporting continued investment in technology and operational capability across Africa.
The Group’s Alternative Solutions business is a key part of this strategy. It uses Continental Re’s pan-African distribution and underwriting capabilities to originate and structure African risks for placement with highly rated global capacity – generating fee, commission and underwriting income in a capital-efficient way, without requiring the Group to retain all the associated risk on its own balance sheet.

Continental Reinsurance delivered another year of resilient financial performance, including:

Insurance revenue: BWP 2.32 billion (USD 173.1 million)
Gross written premium: BWP 2.27 billion (USD 165.6 million)
Profit before tax: BWP 105.3 million (USD 9.7 million), representing growth of more than 50% year-on-year
Loss ratio: 33%
Combined ratio: Improved to 92% (from approximately 94% in the prior year)
Financial strength rating: AM Best B+ (Stable Outlook), with balance-sheet strength assessed as Very Strong
The Board intends to distribute between 40% and 60% of annual net income as dividends, subject to future performance and Board approval.

Africa’s Reinsurance Opportunity

Africa’s reinsurance market generated approximately USD 6.3 billion in gross premiums in 2024, having grown by 89% between 2015 and 2024. Despite this growth, Africa accounts for only 1.6% of global reinsurance premiums. Insurance penetration across Africa remains approximately 2.8% of GDP, compared with a global average of around 6.8%, highlighting significant room for expansion.

Shares are available at BWP 1.00 per share, with a minimum application of 200 shares (BWP 200). Application forms are available through the Prospectus, via the Sponsoring Broker Motswedi Securities, the Botswana Stock Exchange, and Continental Reinsurance Holdings Limited offices, as well as online here.

The post Continental Reinsurance’s $156.1M Public Offer Highlights Africa’s Growth Story appeared first on Business Today NG.

Continue Reading

Business

Nigeria’s power plants operated at 86% capacity in August — NERC

info

Published

on

WhatsApp Image 2026 09 25 at 19.07.56.jpeg

The latest operational performance report by the Nigerian Electricity Regulatory Commission (NERC) has shown that Nigeria’s grid-connected power plants operated at an average of 86 per cent of their available capacity in August 2026.

This was one of the major highlights of the NERC’s August 2026 factsheet report published on Thursday. The report showed that Nigeria’s power plants had an average available capacity of 4,758 megawatts (MW) during the month under review, while average hourly generation was pegged at 4,102MW.

According to the report, about 656MW of the available generation capacity was not utilised on average during the period.

Among the major energy producers, Kainji_1 recorded a 98 per cent load factor, generating 345MW out of 352MW available capacity, while Afam_2 recorded 99 per cent, with 262MW generated against 265MW available.

It said Egbin_1 operated at 96 per cent, generating 333MW from 347MW of available capacity, while Ihovbor_2 recorded 92 per cent, generating 418MW from 454MW of available capacity.

Other major plants listed included Delta_1 at 80 per cent load factor, Zungeru_1 at 72 per cent, Odukpani_1 at 74 per cent, Shiroro_1 at 87 per cent, Jebba_1 at 83 per cent, and Okpai_1 at 87 per cent.

PT WHATSAPP CHANNEL
Dangote Refinery AD

Frequency, voltage stability breached limits

Despite the relatively high utilisation rate, NERC reported breaches of prescribed grid frequency and voltage limits during the month.

The commission said the average lower grid frequency was 49.34Hz, while the average upper grid frequency was 50.67Hz, exceeding the prescribed operating range of 49.75Hz to 50.25Hz.

Similarly, it noted that the monthly average lower grid voltage was recorded at 302.29 kilovolts (kV), while the average upper grid voltage stood at 349.68kV.

NERC said both figures exceeded the prescribed voltage range of 313.50kV to 346.50kV.

The data showed significant differences in plant utilisation.

Olorunsogo_1 recorded a 100 per cent load factor, generating 115MW from 115MW of available capacity. Omoku_1 and Igbafо_1 also recorded 100 per cent utilisation.

Omotosho_1 generated 148MW from 149MW available, representing a 99 per cent load factor, while Dadin-Kowa_1 recorded 98 per cent after generating 35MW from 36MW available.

READ ALSO: DisCos bill N250.79bn, collect N205.53bn in July — NERC

However, some plants recorded substantially lower utilisation. Afam_1 operated at 67 per cent, while Ikeja_1 recorded 76 per cent and Ihovbor_1 79 per cent.

Several listed plants recorded zero generation during the month, including Sapele_2, Alaoji_1, Geregu_2 and Ibom Power_1.

The commission’s data also showed that Olorunsogo_2 generated 87MW from 109MW available, while Sapele_1 generated 25MW from 27MW available.

Overall, the August figures indicate a grid operating at relatively high utilisation of available generating capacity, while frequency and voltage excursions remained notable operational issues.


Discover more from Premium Times Nigeria

Subscribe to get the latest posts sent to your email.

Continue Reading

Trending