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IMF: Dangote Refinery, Supportive Credit Facility, Can Accelerate Nigeria’s Economic Recovery Process

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Aliko Dangote

The International Monetary Fund (IMP) has noted that the non-oil sector of the Nigerian economy could be stronger, benefitting from its recent growth momentum, higher production from the new Dangote Refinery, and supportive credit policies.

In IMF’s Executive Board 2021 Article IV Consultation with Nigeria released recently, the global organisation added that Nigeria’s ratification of the African Continental Free Trade Agreement could also yield a positive boost to the non-oil sector while oil production could rebound, supported by the more generous terms of the Petroleum Industry Act.

According to the IMF, Nigeria exited the recession in the fourth quarter of 2020 and its output rose by 4.1 per cent (y-o-y) in the third quarter, with broad-based growth except for the oil sector, which is facing security and technical challenges.

While growth was projected at 3 per cent for 2021, it stated that headline inflation rose sharply during the pandemic, reaching a peak of 18.2 per cent year-on-year (y-o-y) in March 2021, but has since declined to 15.6 per cent in December.

The institution attributed this to the new harvest season and opening of land borders, although it noted that the reported unemployment rates (end 2020) have yet to come down. It, however, confirmed that more recent COVID-19 monthly surveys have shown that employment was back at its pre-pandemic level.

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“Despite the recovery in oil prices, the general government fiscal deficit is projected to widen in 2021 to 5.9 per cent of GDP, reflecting implicit fuel subsidies and higher security spending,” the Fund said. “Moreover, the consolidated government revenue-to-GDP ratio at 7.5 per cent remains among the lowest in the world.

“After registering a historic deficit in 2020, the current account improved in 2021, and gross FX reserves have improved, supported by the IMF’s SDR allocation and Eurobond placements in September 2021.

“Notwithstanding the authorities’ proactive approach to contain COVID-19 infection rates and fatalities and the recent growth improvement, socio-economic conditions remain a challenge. Levels of food insecurity have risen, and the poverty rate is estimated to have risen during the pandemic.”

The directors highlighted the urgency of fiscal consolidation to create policy space and reduce debt sustainability risks and called for significant domestic revenue mobilisation.

“They noted that exchange rate reforms should be accompanied by macroeconomic policies to contain inflation, structural reforms to improve transparency and governance, and clear communications regarding exchange rate policy.

“Directors considered it appropriate to maintain a supportive monetary policy in the near term, with continued vigilance against inflation and balance of payments risks. They encouraged the authorities to stand ready to adjust the monetary stance if inflationary pressures increase,” the consultation noted.

“Directors recommended strengthening the monetary operational framework over the medium term – focusing on the primacy of price stability – and scaling back the central bank’s quasi-fiscal operations. Directors welcomed the resilience of the banking sector and the planned expiration of pandemic-related support measures. They agreed that while the newly launched eNaira could help foster financial inclusion and improve the delivery of social assistance, close monitoring of associated risks will be important. They also encouraged further efforts to address deficiencies in the AML/CFT framework.

“Directors emphasised the need for bold reforms in the trade regime and agricultural sector, as well as investments, to promote diversification and job-rich growth and harness the gains from the African Continental Free Trade Agreement. Improvement in transparency and governance are also crucial for strengthening business confidence and public trust. Directors called for stronger efforts to improve the transparency of COVID-19 emergency spending,” the IMF added.

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Scrap Dealers Begin 15-Day Strike, Blame Chinese, Foreign Firms for Market Crisis

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The National Association of Scrap and Waste Dealers Employers of Nigeria has commenced a 15-day nationwide warning strike over what it described as the devaluation of its members’ businesses by Chinese and other foreign companies operating in Nigeria.

The association announced the commencement of the strike on Thursday, saying its members were withdrawing their services to draw the attention of the Federal Government and relevant authorities to what it described as unfair practices threatening the survival of the scrap and waste recycling industry.

The Vice President of the association, Aminu Hassan Soja, popularly known as Sarkin Karafan Kasar Hausa, disclosed the decision while addressing journalists in Kano on Thursday.

Hassan said members of the association were losing between ₦2 million and ₦3 million on every truckload of scrap materials as a result of what he alleged were activities of Chinese and other foreign companies in the sector.

According to him, the situation had significantly affected the prices of scrap materials and was making it increasingly difficult for Nigerian-owned businesses to remain viable.

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The association’s vice president further alleged that some foreign operators were involved in practices that were affecting the quality of construction materials produced from recycled metals.

Hassan specifically alleged that 12-millimetre iron rods were being presented or processed as 10-millimetre rods, a development he linked to concerns over the quality of building materials and the reported collapse of buildings in different parts of the country.

He said the alleged practices were taking place despite existing laws and regulations governing the production and marketing of construction materials in Nigeria.

The association’s leader expressed concern that foreign companies were allegedly operating as though there were no effective laws regulating their activities in the country.

Hassan said the decision to embark on the 15-day strike followed efforts by the association to draw the attention of relevant authorities to the challenges facing its members.

He said the association had written to relevant government agencies as well as security agencies to formally notify them of the warning strike and its implications.

According to him, the association has a membership of more than two million people across the country, stressing that its members had complied with the directive to withdraw their services.

Hassan described the association as one of the largest employers of labour in the country outside the agricultural sector, saying the activities of its members contribute significantly to employment and the recycling economy.

He said the strike was therefore intended to compel the authorities to address the concerns raised by the association and protect local operators in the scrap and waste business.

Soja says the association’s leadership had information that some individuals could attempt to act as saboteurs from within the association.

Hassan urged members to remain united and adhere to the directive throughout the 15-day warning strike, while calling on government agencies to intervene in the issues raised by the association.

He said the association remained open to dialogue with the Federal Government and other stakeholders, but insisted that the concerns of its members must be addressed to prevent further losses and protect businesses operating in the sector.

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Kaduna Court Dismisses El-Rufai Trial Judge Recusal Application, Orders Accelerated Hearing

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Governor El Rufai

 

The Kaduna State High Court has dismissed an application seeking the recusal of Justice Darius Khobo from the trial of former Kaduna State Governor, Mallam Nasir Ahmed El-Rufai.

The court, in its ruling last week on the application, held that the applicant had not waived his right to complain of alleged bias by his conduct.

Justice Khobo, however, ruled that the multiple processes filed by the applicant before the Court of Appeal and the Kaduna State High Court constituted an abuse of court processes.

The court also held that the applicant failed to establish a likelihood of bias against him.

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The court formulated three issues for determination in resolving the application.
On whether the applicant had waived his right to complain of bias by his conduct, the court resolved the issue in favour of the applicant, holding that the right had not been waived by mere conduct.

However, in the second issue, whether the applicant had abused the processes of the court, the court ruled in favour of the respondent, finding that the multiple processes filed before the Court of Appeal and the State High Court constituted an abuse of court process.

The third issue, which concerned whether there was a likelihood of bias against the applicant, was also resolved in favour of the respondent, with the court holding that the applicant failed to prove such likelihood.

In its final analysis, the court held that the application for recusal lacked merit and consequently refused and dismissed it.
The court directed that the trial on the substantive charge should continue on a day-to-day basis, as practicable in the circumstances.

It further ordered that the defendant remain in the custody of the Independent Corrupt Practices and Other Related Offences Commission, ICPC, pending the continuation of the trial.

The case was adjourned to October 12 and 13, 2026, for accelerated hearing.

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Chinese, Nigerian workers celebrate Mid-Autumn Festival

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Chinese and Nigerian workers at a project site in Nigeria have celebrated the Mid-Autumn Festival with storytelling, poetry, traditional food and discussions aimed at promoting cultural understanding between the two countries.

The celebration, organised by the project team, brought Chinese and Nigerian colleagues together under the theme of cultural exchange, with participants sharing traditions and beliefs associated with the moon in their respective societies.

The event featured lantern displays, mooncakes, poetry recitals and presentations on the history and customs of the Chinese Mid-Autumn Festival.

Chinese staff introduced their Nigerian colleagues to traditional stories associated with the festival, including the legend of Chang’e flying to the moon and the story of Wu Gang and the cassia tree.

They also explained customs such as moon-gazing, eating mooncakes, displaying lanterns and solving riddles.
A major focus of the presentation was the Chinese cultural understanding of the festival as a time for family reunion.

The Chinese team explained that, even when family members are separated by distance, the full moon provides a symbolic connection as people look at the same moon and share thoughts and blessings with their loved ones.

The Nigerian participants said the emphasis on family togetherness resonated with values deeply rooted in Nigerian communities.

Sharing Nigerian moon traditions

The cultural exchange continued with a session in which Nigerian colleagues shared stories and traditions surrounding the moon in different Nigerian communities.

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Participants spoke about local beliefs linking the moon with harvest, love, time and seasonal changes, while others explained how the moon has traditionally featured in communal gatherings and storytelling.

One of the Nigerian participants observed that full-moon nights in some communities are occasions for gathering, singing, dancing and storytelling, drawing parallels with the Chinese Mid-Autumn Festival.

The observation attracted laughter and applause from the participants, who noted the similarities between the two cultures despite their geographical distance.

Chinese staff also discussed the place of the moon in Chinese poetry and folk traditions, with participants agreeing that the shared appreciation of the moon provided a common cultural connection.

Poetry brings colleagues together

The celebration also featured a Chinese poetry session during which Nigerian colleagues were introduced to poems by renowned Chinese poets Su Shi and Li Bai.

The participants recited lines from Shui Diao Ge Tou and Jing Ye Si, with Chinese colleagues explaining the meanings of the verses and helping their Nigerian counterparts with pronunciation.

Particular attention was given to the famous sentiment wishing that loved ones would live long enough to share the beauty of the same moon despite being separated by distance.

The participants described the message as a universal expression of love, friendship and longing that transcends cultural boundaries.

Mooncakes symbolise friendship

The celebration ended with the presentation and sharing of mooncakes, a major traditional food associated with the festival.

Chinese staff explained that the round shape of the mooncake symbolises reunion and completeness before inviting their Nigerian colleagues to taste different varieties, including lotus seed, red bean and mixed-nut fillings.

For some of the Nigerian participants, it was their first experience of eating mooncakes.

One participant described the experience as more than tasting a new food, saying the gesture reflected the care and thoughtfulness of the project team.

The organisers said the celebration provided an opportunity for Nigerian colleagues to experience Chinese culture while enabling Chinese staff to learn more about Nigerian traditions.

They said such activities could strengthen mutual understanding, friendship and cooperation between Chinese and Nigerian workers.

The project team said it would continue to use traditional festivals and other cultural activities as platforms for people-to-people exchanges, with the aim of deepening China-Nigeria relations at the community and workplace levels.

The celebration, they added, demonstrated how cultural traditions can provide a bridge between people from different backgrounds and promote greater understanding and cooperation.

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