Business

Foreign Reserve May Hit $50bn By Year End — CBN

Published

8 years ago

April 11, 2018

The Governor of the Central Bank of Nigeria (CBN), Mr Godwin Emefiele, has expressed optimism that the nation’s foreign reserves would grow to 50 billion dollars before the end of the year.
Emefiele said this at the 25th Seminar for finance correspondents and business editors with the theme: “Sustaining Economic Growth Beyond Recession”, in Uyo.
Emefiele, represented by Mr Edward Adamu, Deputy Governor, Corporate Services, said the reserves would continue to grow following the recent accretion the nation had recorded.
He said that the economic recovery would consolidate as the sentiments improved in the macro economy and supported by proactive monetary, trade, industrial and fiscal policies.
The governor also said the apex bank expected a continued uptick in Gross Domestic Product (GDP) growth with a positive spillover to improved unemployment rate.
On the foreign exchange market, he said the rate stability would continue.
“As we entrench and sustain the transparency in the FX market, as foreign FX reserves accretion continues, market confidence and improved sentiments remain.
“We expect that the exchange rate will not only be stable but would begin to appreciate against major currencies.
“The adverse competitiveness outcome which such appreciation may entail will be adequately mitigated by proactive policies to ensure that our balance of payments position is not undermined”, he said.
According to him, there is also need for strong policy coordination.
“Finally, we expect a re-doubling of strong policy coordination, collaboration and cooperation which flourished during the very difficult times,” he added.
He said that the need was greater now than ever for a robust policy coordination between the key aspects of economic policymaking space to sustain the recovery.
This, he said, would include fiscal, monetary, exchange and trade policies, which must be targeted at protecting farmers to boost agricultural outputs and support local companies.
Emefiele said it would also enhance manufacturing and industrial capacities, to diversify the economy away from oil and fossil fuels.

Business

Lithium Prices Tumble As Traders Brace For CATL Supply Surge

Published

1 minute ago

June 29, 2026

The Tide

Lithium carbonate futures in China fell ~10% over two trading sessions, dropping to a 10-week low of approximately 157,000 yuan ($23,175) per tonne on Tuesday following market speculation that China’s EV battery giant, Contemporary Amperex Technology Co. (CATL), may soon restart its massive Jianxiawo mine. Reports from authorities in Jiangxi Province show that CATL’s Jianxiawo lithium mine in Yichun passed a preliminary land pre-review and site selection, with the Jiangxi Provincial Department of Natural Resources issuing a “Project Land Use Pre-Approval and Site Selection Opinion”, valid from June 17, 2026, through June 17, 2029.

The approval report has also extended losses for lithium miners, with Lithium Americas (NYSE:LAC) cratering 15.2% over the past 30 days; Sigma Lithium Corp. (NASDAQ:SGML) has lost 14.8%, Atlas Lithium Corp. (NASDAQ:ATLX) has declined 10.2%, Albemarle Corp. (NYSE:ALB) is down 14.8% while Sociedad Química y Minera de Chile S.A. (NYSE:SQM) has shed 5.6% over the timeframe.

Located in Jiangxi Province, China, the Jianxiawo mine is one of the largest hard-rock, lepidolite-hosted lithium deposits in the world. Lepidolite is a lithium-bearing mica mineral comparable to the more common spodumene, which is composed of lithium and aluminum silicate. While it yields less lithium per ton of raw ore compared to spodumene, the sheer scale of the Jianxiawo lithium deposits makes it a force to reckon with, with the mine capable of producing ~46,000 tons of lithium carbonate annually, roughly equivalent to 3% of the global lithium supply.

The pullback is a reversal from the early-year rally when lithium carbonate futures spiked past 200,000 yuan per tonne driven by supply disruptions as well as an unexpected surge in demand from the grid-scale energy storage sector.

Global supply of lithium carbonate took a hit after major mining operations, including the Jianxiawo mine, faced extended shutdowns and permit delays. Back in February, Zimbabwe’s government suspended the export of 14 critical metals, including lithium concentrates, indefinitely in a bid to curb leakages and force foreign operators (largely Chinese) to building local processing plants. Unlike the phased timeline originally planned for January 2027, this emergency directive took effect immediately and even applied to minerals in transit. Mining giants such as Zhejiang Huayou Cobalt and Sinomine must now build local processing infrastructure in Zimbabwe, including a $400-million plant by Prospect Lithium and a planned $500 million lithium sulfate plant. Chinese refineries which rely heavily on Zimbabwean spodumene were starved of supply, triggering a rise in lithium prices.

That said, a cross-section of Wall Street is warning that it’s still too early for lithium bears to do a victory lap, pointing out that the resumption of operations at the Jianxiawo mine still faces major regulatory hurdles and that the operation still requires a renewed mining permit, updated environmental impact reviews, and formal approval for a tailings storage facility.

The mine’s original permit has expired, forcing CATL to navigate China’s revised Mineral Resources Law, which now classifies lithium as a standalone strategic mineral. The tailings facility approval is, however, the most significant bottleneck. Because Jianxiawo extracts low-grade lepidolite ore, it produces millions of tons of waste/slag annually. Under China’s strict environmental oversight, building and approving the required large-scale tailings dam is generally a complex, time-consuming process.

“Though the exact purpose of the land use, remaining process, and timeline is yet to be confirmed, the market appeared to price in the resumption of Jianxiawo in the near term,” analysts at Citi said in a note, predicting a continuation of tight lithium supply-demand dynamics because of new battery capacity scheduled in the third quarter.

Several Wall Street analysts remain optimistic that the global lithium market is transitioning into a structural supply deficit starting in the current year following a prolonged period of oversupply and a price crash. According to a recent Fastmarkets analysis, the structural mismatch where demand outpaces newly added mine capacity is driving a notable market correction and a recovery in prices.

The analysts point out that battery energy storage (BESS) deployment has emerged as a major new structural demand pillar, with the massive growth projected for this market reducing the lithium market’s singular reliance on electric vehicle (EV) adoption cycles. Indeed, the global BESS market is expected to nearly triple to reach up to $150 billion by 2030, with global capacity forecast to multiply between 5 and 15 times by the end of the decade mainly powered by the AI boom. Meanwhile, slowing mine output is expected to be bullish for lithium prices after multiple miners cut production or abandoned planned projects in recent years amid a global lithium glut.

By Alex Kimani for Oilprice.com

Business

Navy Nabs 13 Black Sand Miners In Bayelsa –Impound Two Boats

Published

2 minutes ago

June 29, 2026

The Tide

The Nigerian Navy has arrested Thirteen 13 Black Sand miners in Bayelsa state

The Service also impounded two Wooden Boats used for the illegal operations

Director of Naval Information, Capt. Abiodun Folorunsho, said this in a statement issued to Newsmen in Abuja.

Folorunsho said with the operation, the Navy had recorded another operational success in its efforts to curb illegal exploitation of natural resources

According to Folorunsho the operation was conducted by Forward Operating Base (FOB) FORMOSO, following credible intelligence on the movement of boats suspected to be involved in illegal mining activities.

He said the intelligence revealed the boats were operating within the coastal communities of Brass Local Government Area.

“Acting on the intelligence, Naval personnel intercepted the boats at Lekeson and Liama communities, where large quantities of suspected illegally mined black sand were discovered onboard.

“A total of 13 crew members were arrested in connection with the activity,” he said.

The Naval Director of information said that the successful operation underscored the Navy’s commitment to protecting Nigeria’s maritime environment and preventing the illegal exploitation of natural resources that undermine economic development and environmental sustainability.

“The Nigerian Navy remains resolute in sustaining operations against illegal resource extraction and other maritime crimes, while maintaining security and stability within the nation’s waterways,” he said.

Folorunsho also said that the two wooden boats recovered, the black sand and the 13 suspects have subsequently been handed over to the Divisional Police Officer, Nembe Division, for further investigation and possible prosecution.

He said this was done in line with the extant procedures and directives of the Bayelsa Government.

The Naval spokesperson reaffirmed the Navy’s commitment to collaborating with relevant stakeholders and security agencies to safeguard Nigeria’s maritime resources.

Folorunsho assured that it would also ensure that the nation’s waterways remain safe and secure for legitimate economic activities.

CHINEDU WOSU

Business

AMMON Blocks Importation Of 1.5m Meters –Report

Published

3 minutes ago

June 29, 2026

The Tide

The Association of Meter Manufacturers of Nigeria has secured a court injunction halting the procurement of 1.55 million smart meters.

This development is a direct threat to the implementation of the World Bank’s $500m Nigeria Distribution Sector Recovery Programme.

In its latest Implementation Status and Results Report obtained from its website olat the weekend, the World Bank disclosed that the legal action had become the programme’s biggest implementation risk and could force the cancellation of the procurement if the dispute is not resolved soon.

According to the report, the injunction has stalled the opening of bids under the second phase of the International Competitive Bidding process for the procurement of additional smart meters.

“The most significant implementation risk at present is the court injunction obtained by the Association of Meter Manufacturers of Nigeria on April 30, 2026, which has halted the opening of bids for the procurement of 1.55 million additional smart meters (ICB2),” the World Bank noted.

The bank explained that AMMON, representing local meter manufacturers and assemblers, argued that the international procurement framework excluded Nigerian manufacturers and undermined domestic industry development.

It noted that the Transmission Company of Nigeria Project Management Unit had extended the bid submission deadline three times since the injunction, with the latest deadline fixed for June 25, 2026.The report warned that failure to resolve the dispute promptly could have wider consequences for the programme.

It stated, “The team is engaging with government counterparts to find a resolution. If the matter cannot be resolved in the near term, cancellation of the ICB2 procurement may need to be considered to avoid market uncertainty, cost escalation, and further programmatic delay.”

The Nigeria Distribution Sector Recovery Programme, approved by the World Bank in February 2021, is designed to improve the financial and technical performance of electricity distribution companies through reforms, metering and network investments.

Despite the legal setback, the World Bank said implementation under the programme continued to improve, maintaining its “Moderately Satisfactory” ratings for both overall implementation progress and progress towards achieving its development objective.

The report noted that the programme had been upgraded from “Moderately Unsatisfactory” six months earlier, reflecting sustained improvements in implementation.

It added that deployment of smart meters under the first phase of the international procurement had accelerated significantly.

According to the report, as of June 15, 2026, about 1.23 million smart meters had been manufactured, 1.03 million had arrived in Nigeria, while 482,000 had been installed, up from 365,000 recorded during the programme’s mid-term review in April.

“Under the Investment Project Financing component, meter installation under ICB1 has continued to accelerate. As of June 15, 2026, 1.23 million smart meters have been manufactured, of which 1.03 million have reached Nigeria, of which 482,000 have been installed,” the report stated.

The bank added that the programme had so far provided direct electricity access to about 530,000 people under its contribution to the Mission 300 initiative, with the figure expected to rise as installations continue.

It also expressed optimism that the Nigerian Electricity Regulatory Commission’s January 2026 directives on DISREP implementation would further accelerate meter deployment by electricity distribution companies.

The report further revealed that contracts for another 217,000 meters to be procured locally through the National Competitive Bidding process had reached an advanced stage following comments from the Attorney General of the Federation.

It noted however, that the Bureau of Public Enterprises(BPE) had tied the signing of those contracts to the lifting of the AMMON court injunction.

“The NCB contracts for 217,000 domestically procured meters are in an advanced stage of finalisation following receipt of comments from the Attorney General of the Federation. However, BPE has linked NCB contract signature to the vacation of the AMMON court injunction,” it stated.

The World Bank also disclosed that contracts for the Meter Data Management System, delayed since mid-2025, were in the final drafting stage and expected to be executed before the end of June.