General News
NNPC’s Withdrawal of $1.2Bn Triggers Panic in Banks
Nigerian National Petroleum Corporation (NNPC) has withdrawn $1.2 billion (N240 billion) from banks, triggering more dollar liquidity squeeze in the money market and causing the value of the naira to depreciate further at the parallel market, according to New Telegraph.
The NNPC reportedly wrote to the lenders last Tuesday, intimating them of its intention to transfer its domiciliary accounts to the Central Bank of Nigeria (CBN).
A top NNPC official, who pleaded anonymity, confirmed the withdrawal yesterday. He said the decision to move the accounts to the CBN stemmed from the ongoing probe of the corporation, stressing that it was to harmonise all “their accounts.”
A CBN official, who also asked not to be named because he has no clearance to speak on the issue, corroborated the NNPC official’s statement.
He said the NNPC’s directive to transfer its funds to the Central Bank was in order given the fact that the CBN is a banker to the government and that the oil corporation is also an institution of the government.
He, however, said the funds would boost the CBN’s reserves and improve its ability to stabilise the naira, which has received severe bashing at the parallel market, where forex end users that do not need documentation source for their dollars.
Besides, he said the decision to move the NNPC accounts to the CBN might not be unconnected with the ongoing probe of the oil swap deal and NNPC.
But the withdrawal of the funds has continued to jolt the money market, as banks, which had already created assets with the dollars, were said to be running helter-skelter to restructure the mis-matches that had been created with the NNPC funds.
According to New Telegraph, a treasurer in one of the tier-one banks said lenders may have to start calling back their dollar loans extended to customers.
“This is a serious problem for us because the CBN has not been selling dollars to banks and we have used the dollars being recalled by NNPC to pay for trade obligations to customers offshore,” said another senior treasurer of a tier-two bank.
Renaissance Capital, a leading investment banking firm originating from Russia that operates in high-opportunity emerging and frontier markets, few days ago, put the shortfall in the forex market, which the apex bank had not been able to meet at $4 billion.
This has exerted enormous pressure on the parallel market, where N243 exchanged for a dollar yesterday. The official exchange rate, however, remained stable at N196.95 per dollar.
Since June 24 when the markets started reacting to the CBN’s latest policy to restrict access to foreign exchange for certain categories of importers, the naira has declined against the dollar almost on a daily basis.
Although most analysts are predicting another devaluation to around N210, Non-Deliverable Forwards – currency derivatives traded offshore – pointed to it being priced at around N255-N261 to $1 before the end of the year.
Just last week, the release of part of the N400 billion funds approved by the Federal Government to clear the backlog of salaries in states and local governments had further worsened the fortunes of the ailing naira.
Aminu Gwadabe, president, Association of Bureau De Change Operators of Nigeria (ABCON), said the demand for dollars had surged as individuals rushed to convert their naira to dollars.
He said: “There is a lot of demand with the recent injection of cash by the government. Part of the funds is being converted to dollars.”
Similarly, another BDC operator, who asked not to be named, said, “The scarcity is really serious; there is no dollar anywhere. So, people who have the money are buying available dollars with a view to later selling at a higher rate.” As at April, the CBN had spent $4.7 billion in defending the naira. Last February alone, it used at least $3.4 billion in fixing the exchange rate.
Nigeria’s reserves, according to the latest data on the banking watchdog’s website, is $29.95billion as at last Monday, which is totally at variance with the $31.89 billion announced by the CBN Governor, Mr. Godwin Emefiele, last week during his meeting with the Senate.
Some critical stakeholders in the economy, including the Managing Director of Financial Derivatives Limited, Bismarck Rewane, had stressed the need for a further devaluation of the naira.
For instance, Mr. Bisi Onasanya, Managing Director and Chief Executive Officer of First Bank of Nigeria Limited, , contended that the CBN needed to let the naira devalue because the foreign- exchange trading restrictions had started to harm growth in the economy.
“People just don’t believe the CBN has what it takes to sustain the exchange rate at the present level.
The market needs to reopen. You cannot peg the naira at a level that the whole world knows is unrealistic.
“We are in a situation where Nigerian banks are shopping for foreign exchange in the international market. We need to bite the bullet and move on, or there will be repercussions over the long term,” he said.
But reacting to the steady decline in the value of the naira on the parallel market last Thursday, Mr. Ibrahim Mu’azu, CBN’s Director, Corporate Communications, stated that the apex bank would not be distracted by the development and would not take it into consideration in determining the exchange rate.
He said the volume of trading in foreign exchange taking place in the market was so marginal that it should not be used to determine the naira’s rate.
New Telegraph had reported last week that the banking watchdog had begun probing banks to ascertain those that have complied with its directive on the transfer of public sector revenue accounts to the CBN account.
The investigation followed the expiration of the June 30, 2015 deadline that the banking watchdog set for the exercise.
Federal High Court in Lagos has declined Access Bank Plc’s request to freeze the bank accounts of MTN Nigeria Communications Plc over a disputed N180.95 billion debt claim linked to a long-expired infrastructure-sharing deal with now-defunct Multi-Links Telecommunications.
Justice Akintayo Aluko, ruling on an ex parte application filed by Access Bank and three companies in receivership, Multi-Links Telecommunications Limited, Capcom Telecoms Limited, and Cyancom Limited, refused to issue an interim order freezing MTN’s funds.
The judge held that MTN must first be given an opportunity to be heard before any such drastic action is taken.
Access Bank, through its counsel Mr. Kunle Ogunba (SAN), had requested an interim injunction restraining MTN from withdrawing or tampering with funds across all its accounts in Nigeria up to the amount of N180.95 billion.
The bank claimed this figure represents a long-standing debt owed by MTN to Multi-Links.
As part of the orders sought, the applicants also requested that all financial institutions in Nigeria be directed to disclose, under oath, the balances in MTN’s accounts within seven days.
The suit, marked FHC/L/CS/1004/2025, essentially sought to lock down MTN’s funds pending the determination of the main suit.
However, Justice Aluko ruled that, while the plaintiffs presented a seemingly compelling case, MTN must be allowed to respond.
“Due to the peculiar nature of the case and the potential implications of the orders sought, especially in light of MTN’s correspondence marked ‘MTN 17,’ the defendant must be heard before any orders are granted,” the judge said, according to ThisDay Newspaper.
The court ordered MTN to appear and show cause within five days, with the case adjourned to June 23, 2025, for further proceedings.
According to Nairametric, at the heart of the dispute is a fibre-sharing agreement between MTN and Multi-Links dating back over a decade, sources say.
The deal gave both parties “irrefutable rights of use” of each other’s fibre infrastructure for 10 years, expiring in 2024.
However, due to financial and operational setbacks, Multi-Links reportedly underutilised MTN’s infrastructure while MTN made significant use of Multi-Links’ network.
As Multi-Links spiralled into financial distress, the company went into receivership under the control of Diamond Bank. Before it folded, Multi-Links attempted to sell its fibre assets to MTN, but negotiations collapsed over pricing disagreements.
Years later, a company named Hoop Telecoms emerged, claiming to have acquired Multi-Links’ fibre infrastructure. However, Hoop reportedly disclaimed any responsibility for Multi-Links’ past liabilities. Despite this, the company billed MTN nearly N170 billion, retroactively charging for years prior to its supposed acquisition of the assets.
MTN flatly rejected the demand, estimating its actual obligation under the original agreement at just over N1 billion.
The telecoms firm also took the matter to the Nigerian Communications Commission (NCC), which reportedly found that Hoop Telecoms lacked a valid telecom licence and thus had no legal standing to make such claims.
The situation grew more complex after Access Bank acquired Diamond Bank in 2019, thereby assuming control of Multi-Links’ receivership. According to sources familiar with the case, Access Bank aligned itself with Hoop Telecoms’ claims and pushed for a legal settlement, which MTN resisted.
One insider told Nairametrics that several vested interests, including political actors, saw the claim as an opportunity to pressure MTN into a payout.
“There was talk that pushing MTN to pay could benefit everyone involved,” the source said. “But MTN stood its ground and sought legal protection.”
Caught in this web of legal and commercial ambiguity, MTN sought a court’s protection.
But to the company’s surprise, Access Bank approached a court seeking a Mareva injunction, a legal order to freeze MTN’s accounts across Nigerian banks to the tune of N180.95 billion. Such orders are typically issued when a plaintiff fears the defendant may dissipate assets to frustrate judgment enforcement.
Insiders suggest that Access Bank may not have been fully briefed on the intricate history and legal background of the Multi-Links-MTN arrangement and might now be reconsidering its position.
According to one source, MTN and Access Bank have since opened lines of communication to explore an amicable resolution of the matter.
The judge’s refusal to grant the Mareva injunction offers MTN some short-term relief, but the legal battle is far from over.
The company now has until June 23 to respond formally and argue why the court should not freeze its accounts.
MTN declined to comment when contacted, stating that the case is subjudice. Access Bank has yet to respond to Nairametrics’ enquiry as of press time.
While the final outcome remains to be seen, the case raises deeper questions about the enforcement of legacy telecom agreements, the legal risks around receivership claims, and the influence of non-commercial interests in high-stakes disputes.
The Board of Directors of the African Development Bank Group has approved a financing package of up to $184.1 million to support the development of the Obelisk 1-gigawatt solar photovoltaic project and 200MWh battery energy storage system in Egypt, which will be Africa’s largest solar power plant.
Located in Qena Governorate in southern Egypt, the project entails the design, construction, operation, and maintenance of a photovoltaic power plant with an integrated battery energy storage system. The Egyptian Electricity Transmission Company will be the sole off-taker under a 25-year Power Purchase Agreement.
The project’s total cost is estimated at more than $590 million. The Bank Group’s financing package includes $125.5 million of ordinary resources, as well as concessional funding from Bank Group-managed Special Funds the Sustainable Energy Fund for Africa (SEFA) worth $20 million, and the Canada-African Development Bank Climate Fund ($18.6 million), a partnership of the Bank Group and the Government of Canada.
A further $20 million will come from the Climate Investment Funds’ Clean Technology Fund, with additional financing to be mobilized from a consortium of development finance institutions.
Under Egypt’s Nexus of Water, Food, and Energy (NWFE) platform, Obelisk has been granted a Golden License by the government, which recognizes it as a strategic initiative that will contribute to addressing Egypt’s energy constraints and advancing its energy transition.
Dr. Rania Al-Mashat, Egypt’s Minister of Planning, Economic Development and International Cooperation, said “the Obelisk solar project is another important milestone for Egypt under the energy pillar of the NWFE program which has since its launch in November 2022 at COP27 in Sharm El Sheikh delivered 4.2 GW of privately financed renewable energy investments, worth about $4 billion, with the support of partners such as the Africa Development Bank.
“The goal of NWFE’s energy pillar is to add 10 GW of renewable energy capacity with investments of approximately $10 billion, and phase out 5 GW of fossil fuel power generation by 2030.”
The project, expected to be fully operational by the third quarter of 2026, will generate an estimated 2,772 gigawatt-hours of clean, reliable, and affordable energy annually to the national grid. The battery energy storage system will help meet peak evening demand with renewable power while also mitigating the variability of solar power generation.
The project is expected to reduce annual carbon dioxide (CO2) emissions by approximately one million tons and create about 4,000 jobs during construction and 50 permanent jobs during operation, with a special focus on women and youth employment.
“Obelisk is another landmark development under NWFE that leverages on Egypt’s and the African Development Bank’s leadership as well as commitment to harnessing the country’s renewable energy to enhance the resilience of the country’s energy supply to meet its fast-growing energy demand sustainably,” said Kevin Kariuki, African Development Bank Vice President for Power, Energy, Climate, and Green Growth.
“This project also contributes to Egypt’s ambition of producing 42 percent of its power generation capacity from renewable energy sources by 2030 while spurring economic growth and reducing greenhouse gas emissions,”
Ambassador of Canada to the Arab Republic of Egypt Ulric Shannon said: “Canada is proud to support solar energy development in Egypt. This initiative is a meaningful step toward enhancing energy security and stability, with direct benefits for the Egyptian people.
“We are pleased to collaborate with the African Development Bank and other partners in supporting Egypt’s transition to a sustainable, low-carbon economy.”
The Obelisk Solar Project aligns with the African Development Bank’s Ten-Year Strategy, its New Deal on Energy for Africa, and its Country Strategy Paper for Egypt as well as SEFA’s strategic framework which aims to accelerate African countries energy transition by increasing the share of renewables and catalyzing commercial capital mobilization in the power sector. The project also advances Egypt’s commitment to achieve 42 percent generation capacity from renewable energy sources by 2030.
“This project exploits the abundant renewable energy potential in Africa and demonstrates how strong partnerships and innovative solutions contribute to balancing three core objectives in the energy sector, namely energy security, affordability, and sustainable economic development,” said Wale Shonibare, Director of Energy Financial Solutions, Policy, and Regulation at the African Development Bank. “It has high potential for replicability across the continent.”
Office of the Surveyor General of the Federation (OSGOF) and the National Space Research and Development Agency (NASRDA) have pledged to deepen collaboration in key national development areas, including geospatial data infrastructure, satellite technology, communication sector regulation, and population census operations.
This was the outcome of a high-level meeting held on Tuesday at the headquarters of OSGOF in Abuja, where Abudulganiyu Adeyemi Adebomehin, surveyor General of the Federation, received Dr. Matthew Adepoju, director general of NASRDA, and his management team.
This was disclosed in a statement issued on Wednesday by Henry David, head, Information and Public Relations, Office of the Surveyor General of the Federation, titled ‘SGOF Pledges To Support NASRDA For Optimal Performance.’
According to the statement, the discussions at the meeting focused on the impact of upstream and downstream operations in Nigeria’s communication sector, challenges of mast proliferation near residential areas, and the broader implications for public health. Both agencies expressed concern over the unregulated installation of communication infrastructure and its potential link to rising cancer rates.
“The downstream sector of communication companies involves placing signal-receiving stations within living communities, which poses significant health risks due to radiation,” the two agencies said in a joint position. “Co-location of infrastructure, as practised in developed countries like the UK and US, should be adopted here to reduce radiation exposure.”
The two agencies called for stronger regulation of telecommunication operators, noting that television and radio signal disruptions—commonplace in Nigeria—are largely due to a lack of oversight, a situation that does not persist in countries with stringent telecom regulations.
Addressing issues of national data management, the agencies stressed the critical need for collaboration with the National Population Commission (NPC) in the upcoming national census. “Without the input of NASRDA and OSGOF, the census will remain speculative,” they jointly noted.
On geospatial data, both parties resolved to work together to strengthen the National Geospatial Data Infrastructure, which they described as vital for national planning and development.
In his remarks, Surveyor General Adebomehin expressed firm support for NASRDA’s initiatives. “I will defend NASRDA to the best of my ability. If you need software engineers, we have capable hands here,” he said. “Keep encouraging your staff. Behind every successful organisation in the world, you will find Nigerians. We are in full support of your mission.”
Adebomehin urged NASRDA to engage the Presidency directly in acquiring high-precision satellite systems. “You need a satellite that can deliver accuracy of less than 10 centimetres,” he said. “This will reduce the government’s losses from MDAs sourcing satellite services externally.”
Duniya Magaji Joseph, director of Geodesy at OSGOF, called for improved inter-agency collaboration, especially with the military. “Anytime the military collaborates with OSGOF, the outcome is always better,” he said. “We need to overcome the tendency to work in silos driven by funding concerns and instead focus on joint advantages.”
NASRDA’s DG, Dr. Matthew Adepoju, said his agency is working with the Ministry of Steel Development on mineral exploration projects, including the identification of new sites for raw materials such as steel and limestone. He stressed the importance of OSGOF’s technical input in these initiatives.
“We’ve agreed to support the Ministry of Steel Development in identifying new resource locations,” Adepoju said. “But I don’t want NASRDA to go it alone. We want OSGOF fully involved so that roles are clearly defined, and the synergy is more impactful.”
To mark the visit, NASRDA presented symbolic gifts, including a plaque and a vest, to the Surveyor General in appreciation of OSGOF’s commitment to partnership.
The meeting, held in Abuja, concluded with both agencies reaffirming their shared mandate to support national development through technology, data integration, and inter-agency cooperation.
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