The biting scarcity of dollars may force some airlines to shut down operation any time from now, Daily Trust can report.

Though the scarcity has always crippled airline operations, it got worse recently with many airlines finding it extremely difficult to continue operations as they are unable to source for dollars to pay for aircraft maintenance.

No fewer than 10 aircraft belonging to local operators are in different maintenance, repair and overhaul (MRO) facilities abroad as they are unable to source for dollars to pay for the cost of maintenance.

An average C-check costs $1m (about N750m at N750/$) and it could be more depending on the extent of the check to be carried out on an aircraft.

One of the operators who spoke with our correspondent yesterday said at least one or two airlines may suspend operations soon if the forex crisis did not subside.

Checks by our correspondent yesterday revealed that Azman Air had suspended most of its domestic routes as its aircraft were undergoing maintenance and they are yet to arrive owing to the scarcity of dollars.

The source said, “I can tell you many airlines are facing acute dollar shortage. We can’t access dollars to buy spare and fulfil other obligations. Airlines are currently grounding operations because we feel it is better to ground operations than to compromise safety. Safety of passengers is very paramount and this is also the advice of the regulatory authority, the Nigeria Civil Aviation Authority (NCAA).”

Our correspondent learnt that the current development may lead to further increase in air fares.

“Airlines are already paying more to get forex at the black market for spare parts and maintenance. Now that the naira has been devalued and coupled with this unified exchange rate, we only hope we would have more access to dollars but imagine paying over N700 for one dollar, it means the operation cost of airlines would go up again.”

Another operator who spoke with our correspondent stated that several requests to the Central Bank of Nigeria (CBN) for dollars could not be met.

Speaking with our correspondent yesterday, Chief Executive Officer of Aero Contractors, Ado Sanusi stated that while airlines had been managing the scarcity, the industry has become extremely hit by the forex crisis in recent times.

“You know dollars cut across a lot of variables in aviation- the Jet A1, the spare parts, the leasing, and MRO and sometimes even payment of salaries to expat staff. So there is a lot of things that have affected the profitability of airlines in Nigeria because of this dollar.

“But we are happy with this unified dollar exchange as the banks are free to trade as we are reading. We hope that by the time this is fully implemented, it would actually assist us in getting some relief. You know we are dealing with availability and the pricing.”

Daily Trust

Nigeria's banking index surged 23% to a more than 20-year high on Wednesday, as investors snapped up financial firms for the second day following last week's suspension of central bank governor Godwin Emefiele, who oversaw restrictive policies.

Nigeria's top 10 banking index jumped 134.8 points to 706.86 points by 1008 GMT to lift the All-share index up 1.86%.

Sterling Bank gained the maximum 10% allowed on the bourse. UBA and Access Corporation climbed more than 9%.

Reuters

President Bola Tinubu has signed the Nigeria data protection bill into law.

Vincent Olatunji, national commissioner of the Nigeria Data Protection Bureau (NDPB), announced the signing of the bill at a workshop in Abuja on Tuesday.

The legislation allows for the establishment of the Nigeria Data Protection Commission (NDPC) to replace the NDPB.

The commission is expected to protect citizens’ private information and be independent.

The legislation will be headed by a national commissioner with the responsibility of regulating the processing of personal information.

The legislation allows Nigerians to seek redress from any form of data breach.

The law stipulates that citizens’ personal data is “processed in a fair, lawful and accountable manner”.

On April 4, former President Muhammadu Buhari asked the national assembly to consider and pass the bill.

The former president had premised his request on section 58(2) of the constitution.

“Pursuant to section 58, sub-section 2 of the 1999 constitution as amended, I forward herewith the Nigeria data protection bill for consideration and approval of by the senate,” Buhari had said in the letter.

The  Cable

The presidential candidate of the Labour Party, Peter Obi, on Wednesday, informed the Presidential Election Petition Court in Abuja that INEC chairman, Mahmood Yakubu, has been evading service of a subpoena on him.

Obi wants Yakubu to testify before the five-member panel of the court concerning his petition challenging President Bola Tinubu’s victory in the 25 February election.

His claim that Yakubu was evading service of a subpoena came barely 24 hours after the lawyers to the Peoples Democratic Party (PDP) and its presidential candidate, Atiku Abubakar, also signaled that they would be bringing the INEC chair to testify in court on the subpoena. Yakubu was scheduled to testify in their case on Thursday.

Obi’s legal team, led by Livy Uzoukwu, has been at loggerheads with Nigeria’s electoral commission over their inability to access electoral documents to aid their case.

The presidential candidate and his party, the Labour Party, in their joint petition, urged the court to nullify Tinubu’s victory owing to INEC’s alleged fraudulent activities during the disputed presidential election.

At the resumed hearing on Wednesday, Obi’s lawyer, Livy Uzoukwu, said the office of the electoral umpire’s chairman declined to accept a subpoena served on Yakubu to produce some documents before the court.

Uzoukwu’s disclosure came about after Obi’s legal team exhausted electoral documents it was tendering before the court.

He said the team would have loved to continue with tendering of more documentary evidence but for the refusal of Yakubu’s office to accept a subpoena served on him to produce some documents.

They blamed the INEC boss for hindering the progress of their suit.

INEC denies Obi’s claim

Reacting to Uzoukwu’s claim, INEC’s lawyer, Kemi Pinheiro, asked Obi’s legal team to stop blaming the electoral commission for its tardiness in conducting the case.

Pinheiro said it had become Uzoukwu’s strategy to blame respondents in the petition for their inability to prosecute their case diligently.

“It has become a habit. Whenever they want to seek an adjournment, they look for somebody to whip. It cannot be true that the office of the INEC Chairman refuses a subpoena.

“Don’t use INEC as a whipping boy. If they have nothing else to do today, they should just stay so. It is their day. It is not correct that the office of INEC Chairman refused to accept a subpoena,” Pinhero told Uzoukwu.

Background

Since the court began substantive hearing of Obi’s petition against Tinubu’s victory on 30 May, his lawyers have largely tendered documentary evidence as exhibits to support their case.

The evidence so far comprised electoral documents like results sheets and Bimodal Voters Accreditation System (BVAS) machines reports, amongst others that were used in the conduct of the presidential election.

During the pre-hearing session of the court, which lasted two weeks, Obi indicated that he would call 50 witnesses to substantiate his claims of electoral malpractices against INEC and Tinubu.

But Obi has only called two witnesses as the 23 June deadline for prosecuting his case inches close.

The court gave him three weeks to assemble witnesses and tender documents to prove his case/

Afterwards, the court adjourned further hearing in the suit until Thursday.

PT

RUSSIAN PERSPECTIVE

Medvedev sees option of Russia destroying Western communications cables on Atlantic seabed

Given the West’s involvement in the sabotage of the Nord Stream gas pipelines, Russia should have a free hand to destroy Western seabed communications cables, Russian Security Council Deputy Chairman Dmitry Medvedev warned on Wednesday.

"Now that the Western countries’ complicity in the sabotage of the Nord Streams has been proven, there should be no constraints, even moral ones, on us to prevent us from destroying our enemies’ seabed communications cables," the senior politician wrote on his Telegram channel.

Nord Stream sabotage

On September 27, 2022, Nord Stream AG reported unprecedented damage that occurred the day before on three strings of the Nord Stream 1 and Nord Stream 2 offshore gas pipelines. On September 26, 2022, Swedish seismologists registered two explosions on the pipeline routes. The Russian Prosecutor General’s Office launched a criminal case in connection with the incident based on charges of international terrorism.

On February 8, US investigative journalist Seymour Hersh published an article claiming, citing anonymous sources, that US Navy divers had planted explosive devices under the Nord Stream 1 and 2 gas pipelines under the cover of the BALTOPS naval exercise in June 2022, and that the Norwegians then activated the bombs three months later. According to the journalist, the decision to conduct the operation was made by US President Joe Biden personally, following nine months of discussions with White House national security advisers.

The White House has categorically denied the claims. The New York Times reported earlier, citing American officials, that a certain "pro-Ukrainian group" had the intention of blowing up the gas pipeline running from Russia to Germany.

Nord Stream probe

Russia has repeatedly complained that no probe into the incident is actually taking place, with Moscow being kept away from any investigation.

Kremlin Spokesman Dmitry Peskov earlier demanded "a transparent and urgent international probe," which he said was not currently happening. He insisted that no doubt remained that the sabotage was deliberate.

Russian Foreign Ministry Spokeswoman Maria Zakharova has said the United States has been staying mum on the Nord Streams because Washington itself is involved in extremist and criminal activities and that every word could be used against it.

** Kiev loses about 7,500 troops in attack in three directions — Russian top brass

The Ukrainian military has lost about 7,500 troops killed and wounded since June 4 in its attempts to attack in the south Donetsk, Zaporozhye and Donetsk areas, Russian Defense Ministry Spokesman Lieutenant-General Igor Konashenkov reported on Wednesday.

During the last 24-hour period, Ukrainian troops made unsuccessful attempts to attack in the south Donetsk, Zaporozhye and Donetsk directions and continued sustaining heavy losses among personnel and military equipment, the general told a briefing on the progress of the special military operation in Ukraine.

"In all, Ukrainian troops have lost about 7,500 personnel killed and wounded at the frontline alone since June 4, without counting soldiers destroyed in strikes by Russia’s long-range precision weapons and aircraft deep into Ukrainian territory," Konashenkov said.

Russian forces hit Ukrainian army reserves, mercenaries’ sites by precision weapons

Russian forces delivered precision strikes by seaborne and airborne weapons targeting Ukrainian army reserves, mercenaries’ deployment sites, foreign arms and equipment depots in the past day, Konashenkov reported.

"At night, Russian forces delivered multiple strikes by seaborne and airborne long-range precision weapons against the amassment areas of the Ukrainian army’s reserves and foreign mercenaries, and also foreign-made ammunition, armament and military equipment depots. All the designated targets were destroyed. The goal of the strikes was achieved," the spokesman said.

Russian forces neutralize three Ukrainian subversive groups in Kupyansk area

Russian forces neutralized three Ukrainian subversive groups and destroyed roughly 30 enemy troops in the Kupyansk area over the past day, Konashenkov reported.

"In the Kupyansk direction, the activity of three Ukrainian subversive/reconnaissance groups was thwarted near the settlements of Sinkovka, Berestovoye and Artyomovka in the Kharkov Region by strikes of attack and army aircraft, artillery fire and active operations by units of the western battlegroup. As many as 30 Ukrainian troops, an armored combat vehicle, two motor vehicles, a US-manufactured M109 Paladin motorized artillery system and a Polish-made Krab self-propelled artillery gun were destroyed in that direction in the past 24 hours," the spokesman said.

Russian forces eliminate Ukrainian saboteurs in Krasny Liman area

Russian forces eliminated a Ukrainian subversive group in the Donetsk People’s Republic in the Krasny Liman area over the past day, Konashenkov reported.

"In the area of the settlement of Grigorovka in the Donetsk People’s Republic, a Ukrainian subversive/reconnaissance group was eliminated," the spokesman said.

Aircraft and artillery of Russia’s battlegroup Center inflicted damage on the enemy units near the settlements of Nevskoye and Chervonaya Dibrova in the Lugansk People’s Republic, Terny and Torskoye in the Donetsk People’s Republic and the Serebryansky forestry, the general specified.

"As many as 60 Ukrainian personnel, an infantry fighting vehicle, two pickup trucks, a Gvozdika motorized artillery system, a D-20 howitzer and a Grad multiple rocket launcher were destroyed in that area in the past 24 hours," he said.

Russian forces destroy over 205 Ukrainian troops in Donetsk area

Russian forces destroyed over 205 Ukrainian troops in the Donetsk area over the past day, Konashenkov reported.

"During the battles, the Ukrainian army’s losses amounted to over 205 personnel, two armored combat vehicles, seven motor vehicles, and two D-20 howitzers," the spokesman said.

In addition, Russian forces destroyed ammunition depots of the Ukrainian army’s 45th artillery and 57th motorized infantry brigades near Seversk Maliy and Chasov Yar in the Donetsk People’s Republic, the general reported.

Russian forces repulse Ukrainian attacks near Vremevka in DPR

Russian forces repulsed attacks by two Ukrainian motorized infantry companies at the Vremevka salient in the Donetsk People’s Republic (DPR) over the past day, Konashenkov reported.

"At the Vremevka salient near the settlement of Makarovka in the Donetsk People’s Republic, the attacks by two Ukrainian motorized infantry companies supported by four tanks and 11 armored combat vehicles were repelled by self-sacrificing and professional actions of defending units from the battlegroup East, air strikes and artillery fire. Four enemy tanks and seven armored combat vehicles were destroyed in the battles," the spokesman said.

Near the settlement of Prechistovka in the Donetsk People’s Republic, Russian forces successfully repelled attacks by two Ukrainian company tactical groups. The enemy’s losses amounted to five tanks and five armored combat vehicles, the general reported.

"In areas near the settlements of Rovnopol in the Donetsk People’s Republic, Levadnoye in the Zaporozhye Region and the Oktyabr state farm, Russian forces destroyed five enemy tanks," he said.

Kiev loses over 800 troops in Zaporozhye, south Donetsk areas in past day

The Ukrainian military lost over 800 troops, 20 tanks and two US-made howitzers in the south Donetsk and Zaporozhye areas over the past day, Konashenkov said.

"In all, the enemy’s losses in the south Donetsk and Zaporozhye directions in the past 24 hours amounted to over 800 Ukrainian personnel, 20 tanks, four infantry fighting vehicles, 15 armored combat vehicles, two US-made M777 artillery systems, a Msta-B howitzer, a D-30 howitzer and a Grad multiple rocket launcher," the spokesman said.

Russian forces thwart Ukrainian army attack in Zaporozhye area

Russian forces thwarted a Ukrainian attack in the Zaporozhye area over the past day, Konashenkov reported.

"In the Zaporozhye direction, strikes by assault aircraft foiled an attack by units of the Ukrainian army’s 128th mountain assault brigade near the settlement of Zherebyanki in the Zaporozhye Region," the spokesman said.

Near the settlement of Novoandreyevka in the Zaporozhye Region, an artillery ammunition depot of the Ukrainian army’s 65th mechanized brigade was obliterated, the general reported.

Russian forces destroy Ukrainian air defense radar in Zaporozhye area

Russian forces destroyed a Ukrainian air defense radar in the Zaporozhye area over the past day, Konashenkov reported.

"Near the city of Zaporozhye, a P-18 aerial target detection and tracking radar was destroyed," the spokesman said.

Russian forces destroy 50 Ukrainian troops, artillery gun in Kherson area

Russian forces destroyed roughly 50 Ukrainian troops and a motorized artillery system in the Kherson area over the past day, Konashenkov reported.

"In the Kherson direction, as many as 50 Ukrainian personnel, nine motor vehicles and an Akatsiya self-propelled artillery system were destroyed in the past 24 hours as a result of damage inflicted by firepower," the spokesman said.

In the past 24 hours, operational/tactical and army aircraft, missile troops and artillery of the Russian groupings of forces struck 107 Ukrainian artillery units at firing positions, manpower and military equipment in 137 areas, the general said.

Russian air defenses intercept two Storm Shadow cruise missiles in Ukraine operation

Russian air defense forces intercepted two Storm Shadow cruise missiles, four rockets of the US-made HIMARS multiple launch rocket system and shot down 20 Ukrainian unmanned aerial vehicles over the past day, Konashenkov reported.

"During the last 24-hour period, air defense capabilities of the Russian Aerospace Forces intercepted two Storm Shadow long-range cruise missiles and four rockets of the HIMARS multiple launch rocket system," the spokesman said.

In addition, Russian air defense systems destroyed 20 Ukrainian unmanned aerial vehicles in areas near the settlements of Sladkaya Balka in the Zaporozhye Region, Zhovtnevoye in the Kharkov Region and Valeryanovka in the Donetsk People’s Republic, the general reported.

Russian forces cripple over 5,100 field artillery guns in Ukraine operation

Russian forces have destroyed over 5,100 Ukrainian field artillery guns and mortars since the beginning of the special military operation in Ukraine, the general said.

"In all, the following targets have been destroyed since the start of the special military operation: 442 aircraft, 238 helicopters, 4,605 unmanned aerial vehicles, 426 surface-to-air missile systems, 9,982 tanks and other armored combat vehicles, 1,124 multiple rocket launchers, 5,111 field artillery guns and mortars and 10,947 special military motor vehicles," Konashenkov reported.

WESTERN PERSPECTIVE

Russia steps up aerial strikes on Ukraine, killing at least 6 amid Kyiv counteroffensive

Russian forces fired cruise missiles at the southern Ukrainian city of Odesa and shelled the eastern Donetsk region early Wednesday, killing at least six people and damaging dozens of homes, regional Ukrainian officials said.

Russian forces have recently stepped up aerial strikes in their nearly 16-month war, a Ukrainian military spokesman said. The country’s armed forces, meanwhile, have reported limited gains in the early stages of a counteroffensive to take back the nearly one-fifth of Ukraine’s territory that is under Russian control.

The grinding Ukrainian advance is pressing slowly ahead, Deputy Defense Minister Hanna Maliar said Wednesday. Western analysts and military officials say the effort to dislodge entrenched, powerfully armed and large numbers of Russian troops could take years.

Ukrainian troops have advanced 200-500 meters (650-1,600 feet) at various sections of the front line around the Donetsk city of Bakhmut and 300-350 meters (980-1,150 feet) in the southern Zaporizhzhia region, Maliar claimed. Ukrainian forces have managed to make gains despite the Russian edge in artillery and air power and large number of landmines left behind by Russian troops, she said. Maliar noted that, since the start of Russia’s full-scale invasion, Ukraine’s losses on the battlefield had been “incomparably smaller” than those of Russian troops.

It wasn’t possible to verify the battlefield claims.

Ukrainian forces can expect to make slow progress in what will be a “hugely difficult” fight as the counteroffensive gains traction, a Western official said on condition of anonymity to discuss intelligence.

“Intense fighting is now ongoing in nearly all sectors of the front,” the official said. “This is much more than probing. These are full-scale movements of armor and heavy equipment into the Russian security zone.”

The official described the Ukrainian attacks as methodical and said that, broadly speaking, “Russian forces have put up a good defense.”

In Odesa, three food warehouse employees were killed in a strike that also damaged homes, shops and cafes in the city’s downtown, the regional administration said on Facebook. An additional 13 people were wounded.

Search teams were looking for possible survivors under the rubble of the warehouse, it said.

The attack on the port city, launched from the Black Sea, was the second in a week and involved four Kalibr cruise missiles, three of which were intercepted by air defenses, the administration said.

In eastern Ukraine, Donetsk province Gov. Pavlo Kyrylenko wrote on Telegram that at least three people died after shelling destroyed seven homes and damaged dozens of others in the cities of Kramatorsk and Kostiantynivka.

Ten towns and villages along the front line in Donetsk were struck as Kyiv’s troops slowly advance, according to Ukraine’s presidential office.

A missile hit the Ukrainian-controlled city of Kramatorsk, where Kyiv’s forces are headquartered, killing two civilians and wounding two others while damaging 29 homes, the presidential office said. Russian shelling of Kostiantynivka killed one civilian, with 57 houses damaged, it added.

Andriy Kovalov, a spokesperson for the General Staff of Ukraine’s armed forces, said the Russian military increased missile and aerial strikes as Kyiv’s forces intensify attacks along the war’s 1,000-kilometer (600-mile) front line and claim some modest gains at the beginning of their counteroffensive.

In a briefing, he said strikes on the Kharkiv, Donetsk and Kirovohrad regions, in addition to the Odesa region, involved Kh-22 cruise missiles, sea-launched Kalibr cruise missiles, and Iranian-made Shahed drones. Nine were intercepted.

Kovalov said Ukrainian forces had made advances in several sections and fighting was continuing in or near at least two Donetsk province communities.

The U.K. Defense MInistry, which has regularly issued updates on the conflict, wrote on Twitter that southern Ukraine “has often been more permissible for Russian air operations” compared with other parts of the front.

Separately, the mayor of the central city of Kryvyi Rih, President Volodymyr Zelenskyy’s hometown, said the death toll from a Russian strike that hit an apartment building a day earlier had risen to 12.

Ukrainian authorities continued to rescue people from the flooded areas of southern Ukraine’s partially Russian-occupied Kherson region following the destruction of the Kakhovka dam last week.

A total of 28 settlements on the Ukrainian-held western bank of the Dnieper River remain under water, and nearly 2,800 people have been taken to safety so far, the presidential office said, adding that the rescue effort was taking place under relentless Russian shelling. Ukraine’s Prosecutor General said that two volunteers were wounded Wednesday in Russian shelling of the regional capital, also called Kherson, while attempting to evacuate people.

A visit by Rafael Mariano Grossi, the head of the International Atomic Energy Agency, to the Zaporizhzhia Nuclear Power Plant on Wednesday was postponed for security reasons.

He met with Zelenskyy on Tuesday to discuss the perils facing the nuclear plant, which grew more serious after the Kakhovka Dam burst last week.

The plant has been in the crossfire repeatedly since Russia launched its war on Ukraine in February 2022 and seized the facility shortly after.

The largest nuclear power plant in Europe faces “a relatively dangerous situation,” the head of the United Nations nuclear watchdog told journalists in Kyiv on Tuesday.

The Ukrainian-controlled areas of the Kherson region came under artillery fire 57 times over the past 24 hours, the presidential office said.

Rumors swirled Wednesday about a relative and close associate of the Kremlin-backed, strongman leader of Chechnya, Ramzan Kadyrov. The reports said that lawmaker Adam Delimkhanov had been wounded — or even killed — in Ukraine.

After Russian state television reported that the lawmaker had been wounded and Ukrainian Telegram channels suggested that he had been killed, Kadyrov published a photo showing Delimkhanov.

In a photo caption, Kadyrov said that Delimkhanov was “alive and well” — adding that he knew this “from the very beginning,” despite earlier requesting Ukrainian intelligence to provide information on what positions were hit so that he could locate his “dear brother.”

Tass/AP

Sudan's western cities under fire as war spreads

Fighting rocked several cities in western Sudan on Wednesday in an expansion of the country's almost two-month-old war as a regional governor was killed after publicly blaming the deaths of civilians on the country's paramilitary force.

The conflict between the army and the paramilitary Rapid Support Forces has caused a humanitarian crisis in Khartoum, as well as major cities in the Kordofan and Darfur regions.

The widening footprint of fighting threatens to prolong the violence and draw in armed groups - particularly those with tribal affiliations - as well as external actors.

West Darfur state governor Khamis Abbakar was killed on Wednesday, an armed group he commanded said, hours after he accused the RSF and allied militias of "genocide." No details on his death were available. Two government sources said the RSF was responsible.

"Civilians are being killed randomly and in large numbers," Abbakar told Al-Hadath TV earlier on Wednesday, calling for international intervention.

The RSF did not immediately respond to a request for comment.

Activists say 1,100 people have been killed since the conflict began in mid-April in the westernmost city of El Geneina, the capital of West Darfur.

While the attacks originally targeted areas of El Geneina where members of the Masalit tribe lived, these attacks have spread to the entire city, the governor said.

"We haven't seen the army leave its base to defend people," he added before his death.

The Darfur region of Sudan has seen periods of conflict since the early 2000s, when millions were displaced and 300,000 killed by attacks from Arab militias known as the Janjaweed. The RSF evolved out of those groups, becoming a legalized governmental force in 2017.

In a statement, the RSF called the fighting in El Geneina a tribal conflict, blaming the country's former regime for fanning the flames. It said it had been making efforts to get aid into the city.

Diplomatic efforts to address Sudan's conflict led by the United States and Saudi Arabia have faltered, as numerous ceasefires have been violated. On Tuesday, senior U.S. State Department officials said they were considering a new approach for the coming days.

FIGHTING ACROSS DARFUR

The Darfur Bar Association, a local group monitoring the fighting, said on Wednesday that artillery strikes hit civilian homes in Nyala, capital of South Darfur, after RSF soldiers complained of not receiving salaries.

"The assault could start again at any moment, we don't feel safe," said resident Salah Alamin, 39.

The city of Zalingei, capital of Central Darfur, was under siege, the association said. The city of El Fashir, capital of North Darfur, has been quieter but has seen a wave of displacement from RSF-controlled Kutum.

Meanwhile in El Obeid, a hub between Khartoum and Darfur in North Kordofan, residents said the army launched air and artillery strikes against RSF positions. The RSF has controlled the roads connecting the city to other towns and has agreed with local tribal leaders to secure the area from armed gangs.

Residents said the RSF attacked one of those towns, Al-Rahad, on Wednesday.

In Kadugli, South Kordofan, the army pushed back an RSF attack on one of its bases, as troops loyal to rebel leader Abdelaziz al-Hilu surrounded the city. Sources from al-Hilu's faction, SPLM-N, said that they sought to protect civilians from armed militias.

Within Khartoum, residents reported clashes and air and artillery strikes in southern and eastern districts of the city and in neighbouring Omdurman on Wednesday.

The U.N. said on Tuesday that some 1.7 million people had been displaced internally and more than 500,000 had left the country.

In army-controlled Port Sudan, meanwhile, middle school students began taking exams, while pilgrims to Mecca began their Hajj journeys, as some attempted to find some normality.

The Sudanese Doctors Union said that at least 958 people have been killed since fighting began on April 15, over the integration of the RSF into the military.

Reuters

On Monday, the President signed into law a bill establishing an education bank that will provide interest-free loans to “indigent students.” The clumsily titled bill, “An Act to Provide Easy Access to Higher Education For Nigerians Through Interest-Free Loans From Nigeria Education Bank Established in this Act with a View To Provide Education for All Nigerians and for Related Matters” has reportedly been in the works since 2016. According to presidential aides, the initiative will help “indigent students” fund educational pursuits in public institutions, be they in universities, polytechnics, or vocational training centres.

People object to student loans for many useful reasons, but this initiative does not yet look like it will ensnare the destinies of the students who take them. Whether it will be properly managed is another argument altogether.

Where things get interesting is the income requirement. To access the loan, the student or their family must not make more than a N500,000 income per annum. For a law that will supposedly provide “easy access to higher education…for all Nigerians,” this is a curious characterisation of who belongs to the indigent class. If a law that supports the indigent pegs the income level at <N42,000 per family monthly, then we have an interesting inkling into what the government classifies as “indigent.”

Nigeria’s poverty rate has typically been measured through dollar figures. Presently, the official and international measure of poverty rate is counted as living on less than $1.90 daily. When the National Bureau of Statistics launched the results of the 2022 Multidimensional Poverty Index Survey that found that 63 per cent of persons living within Nigeria (133 million people) are multidimensionally poor, they did not mark their assessment of poverty through income level. They used other descriptive means. What resonates between those who calculate the average poverty rate in dollars and those who focus on qualitative means is that most Nigerians are poor and such poverty is not only about money but also access to certain facilities.

While a broad category of Nigerians will fall under the <N500,000 mark, I still wonder at the image of the “ideal” (or un-ideal) low-income family that exists in the mind of the bill drafters and the government officials who pushed it into a law. If such a family has a car, the average monthly sum they are not supposed to exceed is less than the costs of filling up the petrol tank under the new fuel pricing regime. I suppose it does not matter to the bill drafters how many people must comprise this hypothetical family, as long as they live on less than N42,000 monthly. Besides, how do they define their idea of “family” given the complexities of the Nigerian socio-cultural realities? Does “family” mean the nuclear variety or the extended one? Monogamous vs. polygamous families, which one?

In these very challenging economic times, earning even N5m annually does not take most families out of the indigent zone. Statistically, the average Nigerian spends more than 90 per cent of their income on food alone. Beyond eating, an average family in Nigeria also must buy diesel for their generator in addition to their paying for electricity, healthcare, security, education, and generally pick the slack in all areas where the government is lacking. You could earn ten times the figure used to set the mark for student loans for the “indigent” and still be impoverished. That is why it is curious that lawmakers would calibrate a loan facility meant for the indigent at N500,000 or less annually.

Even the Nigerian government that pays a N30,000 minimum wage has serially admitted that the sum gives people meager purchasing power. By setting income qualifications for student loans at N500,000 or less, the government shows how incoherently it conceives of the idea of indigence. While they accept, on the one hand, that majority of Nigerians are impoverished and their earnings cannot sustain them, their idea of indigence on the other hand is inchoate. You practically need to be destitute to apply for the loan.

Now, I quite understand that the government does not want the student loan funds abused by people who do not need them. However, tying access to the loans to such poor income earnings means the people for whom the loans are supposedly meant are exactly those who would be unable to access them.

First, in today’s Nigeria, living on N500,000 or less annually—either as an individual or as a family—means your chances of going to school and staying long there enough to aspire for tertiary or vocational education are already slimmed from the outset. It is a no-brainer that the people who live on < N42,000 monthly (or <N1,400 daily) are the ones least likely to go to even primary or secondary school and highly likely to drop out if they even get started at all. There are many foundational problems that one would encounter if one had to live within those means, and the promise of future loan access will not resolve any of them. Did the drafters of the bill conduct research that showed that people in the <N500,000 or less income category are in greater danger of being unable to pursue their educational pursuits than those who earn N43,000?

Second, the inflation rate in Nigeria is too high for any set sum to be reasonable beyond a few years. Why make a law about income requirements when what N500,000 was worth in January 2023 is nowhere close to either its present or future value? We do not need a soothsayer to foretell that today’s N500,000 will be a chicken feed in 2033. Those who debated the bill must be out of touch with Nigeria’s reality to assume that adjusting income requirements to a sum less than what even the least paid civil servant earns annually makes reasonable sense.

They should have left the income requirements segment open, so each family decides if they want to proceed or not. You could earn N10m annually and still need loan support because your four children happen to be in the tertiary institutions at around the same time. There is no reason to close off a major segment of Nigerians who will actually need the loan facility from accessing it. Life in Nigeria is too precarious to assume that all of us are not hovering around the indigent bracket. Realities differ, and bureaucrats need not be wading through sociological complexities to determine loan qualification. They should have let anyone wanting to take a loan do so, as long as they repay it.

Overall, restricting a facility meant for the “indigent” class to N500,000 and below shows that we are once again dealing with a general Nigerian problem of quantitative illiteracy. Nigeria has a problematic relationship with figures. We treat numbers like they are magical rather than a reasonable abstraction of reality, and that is why we tend to calibrate them inordinately. How can a country where a bag of rice costs around N40,000 bracket consider living on even a mere N42,000 monthly as anywhere outside indigence?

So, how do you intend to provide education for all Nigerians, as the newly signed law boasts, when you have a poor idea of what constitutes poverty in the country? How do you even generate the means of social uplift across all segments when you have yet to develop a reasonable idea of how much it takes to both survive and thrive within the present Nigerian socioeconomic realities? If the government fulfils its promises of increasing the minimum wage anytime soon, even the least paid worker will likely be thrown out of the income bracket that can get the loan. So, who are those indigent people for whom the education bank will be built?

Punch

Consumers are under a lot of financial strain. The World Economic Forum reports that the cost-of-living crisis is affecting people across the globe. With food and fuel prices rising, it’s becoming increasingly difficult to keep financially afloat. On top of that, salaries aren’t keeping up with inflation, making it more difficult to save and build wealth.

During such times of economic difficulty and uncertainty, fraudsters lure unsuspecting consumers into ‘get-rich-quick’ schemes, offering an avenue to make easy money by investing in a “lucrative” financial opportunity.

Nothing beats the prospect of making easy money, and every now and again there seems to be a “get-rich-quick” scheme circulating on WhatsApp or social media that seems legitimate. But it’s not.

Our research interests centre on financial systems in emerging economies, and we advocate for financial inclusion and empowering marginalised communities through financial literacy and financial planning. We use our academic platform to share our expertise on finance, including common financial traps people should steer clear of.

‘Get-rich-quick’ schemes are one such trap. They’re also sometimes called Ponzi or pyramid schemes. The schemes are a form of financial fraud. The people running them take money through deception: misrepresentating information and identity. They promise financial benefits that don’t exist.

You should avoid them because, more often than not, they are bogus and fraudulent business ventures.

There have been some massive fraud schemes over the past 30 years. In the early 1990s, MMM Global – one of the world’s largest and most notorious Ponzi schemes – defrauded up to 40 million people, who lost an estimated US$10 billion. Ponzi schemes have resurfaced in different forms in South Africa, Nigeria, Zimbabwe, Kenya, Ghana and several other African countries.

There are five tell-tale signs of a ‘get-rich-quick’ scheme. Watch out for them.

The five tell-tale signs

First, they offer exaggerated and above-market returns within a short period, with promising little to no risk.

There are two golden rules when it comes to investing. The first is that it takes time to make money. Amassing a small fortune within a short time should raise questions about the scheme.

The second rule is the higher the risk, the higher the return. In other words, no investment is risk-free or can guarantee significant returns. There is always some risk involved. An investment that promises substantial returns tends to be quite risky, which repels most people with a low appetite for risk.

Secondly, new members are constantly recruited to join the scheme.

Typically, such schemes are sustained by relying on the investments of new members to pay existing members. Once the number of existing members exceeds new members, the scheme goes ‘belly-up’. At best, you lose out on the returns you were promised. At worst, you lose all the money you’ve invested.

When the scheme collapses, it is almost impossible to recover the money you’ve lost because you’ve technically given it to a stranger (remember, the definition of financial fraud encompasses the misrepresentation of identity).

Third, there is an urgency to join the scheme but no clarity on how the scheme works.

This is a classic characteristic of a ‘get-rich-quick’ scheme. There is usually no clear answer about the nature of the scheme, what it invests in, how it generates its returns or the credentials of the organisation.

Legitimate investments are transparent and can provide investors with all the information they need to help them decide whether to invest. Unsurprisingly, properly checking ‘get-rich-quick’ schemes will unmask their fraudulent nature. This is why there’s always the urgency and coercion to make an immediate financial commitment under the guise of missing a once-in-a-lifetime opportunity to get rich.

Fourth, the scheme is not registered with or regulated by any recognised authority.

Regulatory authorities are important because they monitor the conduct of financial service providers and protect consumers by keeping their best interests in mind. The protection provided by financial regulators also instils confidence in financial systems.

‘Get-rich-quick’ schemes are not registered and operate outside the framework of regulatory bodies. This makes investors more vulnerable to loss and makes it more difficult to seek legal recourse when the loss occurs.

Legitimate investments in South Africa are offered by authorised financial service providers and regulated by the Financial Sector Conduct Authority. You can search for any authorised financial service provider on the authority’s website.

Fifth, they use the testimonies from existing members who’ve earned big bucks to promote the scheme.

In the initial stages, the scheme tends to pay out to those who have invested early, and these members are encouraged to share the news of their wealth (which travels fast and far) to promote the scheme.

But this tactic creates the impression that you, too, can earn returns in the double digits. These schemes are both unsustainable and unethical as one person gets wealthy through someone else being deceived.

Too good to be true

It’s worth repeating that if it sounds too good to be true, it probably is.

Wealth comes from a sound investment strategy and decisions made over time. Any promise to “get rich quick” should be treated with the cynicism it deserves. It will ultimately reveal its fraudulent nature. Recognising the signs of “get-rich-quick” schemes can save you from unnecessary financial distress.

It’s always a good idea to investigate before committing your finances to any investment. You can find more information on the various types of scams through the South African Banking Risk Information Centre’s website and report them to the South African Fraud Prevention Service.

Bomikazi Zeka is an assistant professor in Finance and Financial Planning, at the University of Canberra and Abdul Latif Alhassan is an associate professor in Development Finance and Insurance, at the University of Cape Town. This article was originally published in The Conversation.

Inc

Nigerian stocks soared to their pinnacle since 9 June 2008 on Tuesday as the benchmark index enlarged by 4 per cent in response to the news of the arrest over the weekend of Godwin Emefiele, the Central Bank governor.

The new development strengthened optimism that the much-needed liquidity in the market may soon return.

Transaction volume more than doubled compared to the previous session following a much-improved risk appetite that greeted the suspension.

Emefiele’s arrest impacted reactions in the market as his raft of unorthodox policies has kept many investors at bay in recent years.

Foreign participation in the Nigerian equity market had dwindled from N104 billion about the time former President Muhammadu Buhari took over to just N8.5 billion in April, according to the Nigerian Exchange data.

The brisk trade witnessed in the market on Tuesday echoes the general optimism visible across the markets after Emefiele’s arrest, with Nigeria’s dollar bonds jumping to their peak level on Monday this year.

“We expect the prevailing positive sentiments to stir up further buy-interests in anticipation of the H1-2023 earning season. On the other hand, profit-taking activities will weigh on the bourse’s performance, as investors seek to book their gains off profitable counters,” said analysts at United Capital in their outlook note for this week.

“For equity-vested fund managers and investors, we recommend bargain-hunting exercises across fundamentally sound stocks with improved or relatively cheap valuations,” they added.

Market breadth, an indicator of investor sentiment towards trade, was positive as 61 gainers were reported compared to 14 decliners.

The all-share index grew by 2,232.6 basis points to 58,163.6, while market capitalisation climbed to N31.7 trillion. Year to date, the index has returned 13.5 per cent.

Top Five Gainers

NASCON appreciated by 10 per cent to close at N17.05. Access Holdings enlarged by 10 per cent to end trade at N14.30. GTCO rose to N30.80, notching up 10 per cent in the process. Lasaco went up by 10 per cent to N1.98. Zenith Bank completed the top 5, climbing by 10 per cent to N30.80.

Top Five Losers

John Holt led the losers, declining by 10 per cent to close at N1.26. Ellah Lakes shed 10 per cent to end trade at N3.60. The Initiates fell to N0.47, losing 9.62 per cent. Caverton slid to N1.24, recording a 4.62 per cent depreciation. Veritas Kapital closed at N0.22, going down by 4.35 per cent.

Top Five Trades

Altogether, 1.2 billion shares, estimated at N19.2 billion, were traded in 10,369 deals.

UBA was the most active stock, with 214.9 million shares worth N2.3 billion traded in 608 deals. GTCO’s shares of 208.1 million units, priced at N6.2 billion, exchanged hands in 613 transactions. Zenith Bank had 85.7 million shares valued at N309.2 million, traded in 743 deals. Japaul traded 72.6 million shares, estimated at N37.4 million in 216 transactions. Access Holdings traded 72.1 million shares valued at N1 billion in 658 deals.

PT