The Nigerian government has spent approximately $8 billion in an attempt to stabilize the naira amid ongoing economic turmoil, according to Bismarck Rewane, CEO of Financial Derivatives Company.

Speaking on Channels Television’s News at 10 on Friday, Rewane highlighted the substantial interventions made to manage the country’s currency fluctuations and combat inflationary pressures.

His remarks follow the Monetary Policy Committee (MPC) meeting of the Central Bank of Nigeria (CBN) on Thursday, where the committee maintained the Monetary Policy Rate (MPR) at 27.50%.

Rewane explained that beyond direct interventions, the government has also resorted to external borrowing to further prop up the naira.

“We’ve also borrowed $4 billion in bond issues. When you take a look at that, you’ll see there is a lot of work. We’ve actually spent almost $8 billion trying to support the naira at current levels,” he said.

Despite this massive expenditure, the naira remains under intense pressure, with inflation and forex volatility persisting, raising concerns about the effectiveness and sustainability of the government’s interventions.

The Problem with Inflation Data Rebasing

Rewane also addressed the recent rebasing of Nigeria’s inflation data, a move that has sparked widespread skepticism. He outlined three different methods of calculating inflation, each yielding significantly different figures:

• Old Method: Inflation stands at 34.8%
• New Method (Rebased Data): Inflation drops to 24.4%
• Market Survey (Real Inflation): Inflation is closer to 33%

Expressing doubts over the sharp drop in inflation figures based on the rebased method, Rewane argued that the figures do not reflect the economic realities of ordinary Nigerians.

“There’s no way that inflation can reduce by 10% in a short period. The man on the street does not believe that inflation has come down as sharply as that,” he stated.

The National Bureau of Statistics (NBS) recently revised its Consumer Price Index (CPI) methodology, adjusting the weight of key commodities in inflation calculations. However, many analysts argue that this does not change the fact that prices of food, fuel, and essential goods continue to rise.

The revelation that the current administration has spent $8 billion defending the naira comes months after President Bola Tinubu’s administration criticized the past government for reportedly spending $1.5 billion monthly to defend the naira while maintaining an artificially low exchange rate.

Under Buhari, Nigeria’s central bank kept the exchange rate at around N400/$1, compared to the over N1,400/$1 rate seen under Tinubu. Buhari’s government also maintained inflation at a lower rate, prompting comparisons between the effectiveness of both administrations’ FX policies.

However, the Buhari-era strategy involved strict foreign exchange controls, multiple exchange rates, and restrictions on forex access, policies that the Tinubu administration has since reversed in favor of a market-driven exchange rate system. This shift, though designed to attract investment and increase dollar liquidity, resulted in sharp currency depreciation and rising inflation.

CBN Governor Expresses Optimism

The CBN Governor, Olayemi Cardoso, remains optimistic about Nigeria’s economic trajectory, citing recent macroeconomic trends as indicators of potential stability.

“At this meeting, the Monetary Policy Committee noted with satisfaction, recent macroeconomic developments which are expected to positively impact the price dynamics in the near to medium term.

“These include the stability in the foreign exchange market with the resultant appreciation of the exchange rate and the moderation in the price of PMS,” Cardoso said.

But he admitted that inflationary pressures persist, particularly due to rising food costs, and that the rebasing of inflation metrics would take time to reflect in daily life.

What This Means for Nigerians

For everyday Nigerians, the economic landscape remains deeply challenging, as the high cost of living continues to erode purchasing power. While the CBN and government officials project optimism, many remain unconvinced, given the sharp depreciation of the naira and the skyrocketing cost of goods and services.

Furthermore, the revelation that $8 billion has already been spent on defending the currency, even though the FX market was floated, has sparked concerns over the true value of the naira. There is concern that Tinubu’s administration could end up spending even more than Buhari and yet the naira will not perform better.

Elon Musk’s satellite internet company, Starlink, has firmly established itself as Nigeria’s second-largest Internet Service Provider (ISP) by subscriber base, with strong indications that it could soon become the country’s number one ISP.

The latest industry data released by the Nigerian Communications Commission (NCC) reveals that as of Q3 2024, Starlink’s active customer base had surged to 65,564, surpassing FiberOne and leaving other local ISPs trailing far behind.

The growth trajectory of Starlink in Nigeria is remarkable. At the end of 2023, the company had 23,897 subscribers, making it the third-largest ISP at the time. In just nine months of 2024, it added an astonishing 41,667 new customers, solidifying its hold as one of the most sought-after internet providers in the country.

This rapid expansion suggests that Starlink could soon overtake Spectranet, the current market leader, which has been experiencing a decline in its customer base.

While Spectranet remains Nigeria’s largest ISP, its dominance is slipping. At the end of Q3 2024, the company had 105,441 active customers, reflecting a loss of over 8,000 subscribers since the beginning of the year. In contrast, Starlink has been adding thousands of new subscribers each month, closing the gap at a rapid pace.

If this trend continues, Starlink could surpass Spectranet within the next year, if not sooner, to become Nigeria’s number-one ISP.

Meanwhile, FiberOne, once the second-largest ISP, now lags far behind with only 33,010 active subscribers, less than half of Starlink’s current customer base.

Starlink’s Disruption of Nigeria’s ISP Market

The rise of Starlink marks a major disruption in Nigeria’s internet market, particularly for local ISPs, which have long been criticized for poor service quality, limited coverage, and high levels of customer dissatisfaction.

Unlike traditional ISPs that rely on fiber-optic or wireless infrastructure, Starlink’s satellite-based model allows it to deliver high-speed internet with lower latency to virtually any location, making it an attractive alternative, particularly in areas where local ISPs and mobile operators fail to provide reliable connectivity.

For years, Nigerians have struggled with unreliable broadband services, particularly in areas outside of major cities like Lagos, Abuja, and Port Harcourt. Many consumers have abandoned their local ISPs in favor of Starlink’s more stable and efficient service, even though it comes at a significantly higher cost.

Local ISPs Struggling Against Mobile Operators and Starlink

Despite the competition among ISPs, the mobile network operators (MNOs)—MTN, Airtel, Globacom, and 9mobile—continue to dominate Nigeria’s internet space. NCC data shows that as of September 2024, these four operators had a combined 132.4 million active internet subscriptions, dwarfing the total 307,946 active customers of all ISPs combined.

While local ISPs have struggled to scale their businesses, Starlink is proving to be a game-changer, not only competing with ISPs but also attracting customers who previously relied on mobile network data services for their broadband needs.

Starlink’s Rapid Growth Across Africa

The impact of Starlink is not just being felt in Nigeria—it is disrupting the entire ISP industry across Africa. Since launching its services on the continent, Starlink has rapidly expanded across multiple African countries, with increasing adoption in nations like Kenya, Zambia, Mozambique, and Rwanda.

The primary reason for this rapid expansion is the failure of local ISPs and traditional telecom operators to provide stable, high-speed internet, especially in rural and underserved areas.

Many African countries suffer from inadequate fiber-optic infrastructure and poor last-mile connectivity, making it difficult for traditional ISPs to expand their coverage. In contrast, Starlink’s satellite-based approach eliminates the need for physical infrastructure, allowing users to access high-speed internet anywhere, as long as they have a Starlink terminal.

This has placed Starlink in a dominant position, particularly in regions where governments and businesses rely on satellite broadband for connectivity. In countries with high rural populations and weak broadband infrastructure, Starlink is becoming the go-to internet provider.

Starlink’s High Costs vs. Unmatched Service

However, Starlink remains significantly more expensive than local ISPs. In December 2023, the company raised its monthly subscription fee in Nigeria from N38,000 to N75,000, a decision that sparked widespread debate.

The price hike was met with resistance, particularly from the Nigerian Communications Commission (NCC), which initially accused Starlink of failing to obtain regulatory approval for the increase. However, the demand for Starlink’s services remained high, as many consumers were willing to pay a premium for uninterrupted internet access.

This willingness to pay more for better service underscores a larger problem—Nigeria’s local ISPs and mobile operators have failed to deliver reliable internet, forcing consumers to look for alternatives despite higher costs.

While Starlink continues to expand its reach in Nigeria, it is not without challenges.

In 2023, the company temporarily halted new orders in Lagos, Abuja, and Port Harcourt due to overwhelming demand, as it had reached full capacity in these cities. Similar issues occurred in Benin City and Warri, where Starlink service was temporarily listed as “sold out.”

Additionally, Starlink faces regulatory scrutiny from Nigerian authorities. The NCC has repeatedly warned against foreign companies operating without strict adherence to local regulations. While Starlink is officially licensed, its pricing decisions and market dominance could attract closer regulatory oversight in the future.

Will Starlink Become Nigeria’s No. 1 ISP?

With its unmatched speed, nationwide availability, and growing customer base, Starlink is well on its way to becoming Nigeria’s top ISP. If its current growth rate continues, it is expected to overtake Spectranet before the first half of 2025.

However, its dominance could depend on how well local ISPs and mobile operators respond to the competition. Unless traditional ISPs improve service quality, expand coverage, and lower costs, they risk losing even more customers to Starlink.

A Federal High Court sitting in Lagos has ordered the final forfeiture of $4.7 million, N830 million, and an extensive collection of properties linked to Godwin Emefiele, the former governor of the Central Bank of Nigeria (CBN).

The ruling, delivered by Justice Yellim Bogoro, comes after a lengthy legal battle initiated by the Economic and Financial Crimes Commission (EFCC), which alleged that the seized funds and assets were proceeds of unlawful activities during Emefiele’s tenure as Nigeria’s apex bank chief.

The court also ordered the final forfeiture of investments worth $900,000 traced to Anita Joy Omoile, a close associate and relative of Emefiele, further underscoring the financial irregularities that characterized his time in office.

The ruling follows an earlier interim forfeiture order issued in May 2024, which mandated the EFCC to publish the order in a national newspaper to allow interested parties to contest the forfeiture. However, with no substantial challenge mounted against the commission’s claims, the court has now ruled in favor of the federal government, effectively stripping Emefiele and his associates of the assets in question.

Justice Bogoro, while delivering his judgment, strongly condemned the activities of the former CBN governor and his associates, stating that their financial dealings were not the result of legitimate business activities. The judge pointed out that the country’s sudden scarcity of dollars following Emefiele’s removal from office in 2023 was a clear indication of financial mismanagement and abuse of power, emphasizing that the transactions leading to the accumulation of the seized wealth were unlawful.

The final forfeiture order extends to a series of luxurious properties and prime real estate holdings, including a 94-unit, 11-floor building in Ikoyi, an 11-floor office space in Lekki, an industrial park in Amuwo Odofin, and an estate in Texas, USA. Additionally, Emefiele and his associates have forfeited millions of naira deposited across multiple bank accounts in First Bank, Titan Bank, and Zenith Bank, all linked to various entities and individuals connected to the former apex bank chief.

The Downfall of Godwin Emefiele: From CBN Governor to Corruption Suspect

Emefiele, who served as CBN governor from 2014 to 2023, was once regarded as one of the most powerful financial figures in Nigeria. However, his tenure was fraught with allegations of financial mismanagement, corruption, and abuse of office, which ultimately led to his dramatic fall from grace.

During his time at the helm of Nigeria’s apex bank, Emefiele was accused of reckless monetary policies, unauthorized forex transactions, and secret allocations of funds that allegedly benefited a select group of individuals. One of the most controversial claims against him was the misappropriation of billions of dollars in forex transactions, which the EFCC is currently investigating.

His handling of Nigeria’s financial sector was further criticized when it was revealed that under his leadership, the CBN engaged in opaque dealings with Bureau de Change operators, allegedly leading to the massive depletion of the country’s foreign reserves. The EFCC also suspects that he played a key role in manipulating foreign exchange rates, which created artificial scarcity and fueled economic hardship for millions of Nigerians.

Beyond financial crimes, Emefiele was also accused of partisan politics, a move that many believe directly led to his fallout with President Bola Ahmed Tinubu. His decision to contest the 2023 presidential election under the All Progressives Congress (APC) while still serving as the CBN governor raised serious ethical and legal concerns. Despite denials from Emefiele, reports indicated that he was actively involved in political scheming and had mobilized significant financial resources to fund his political ambitions.

This political ambition is believed to have been a major catalyst behind one of the most controversial policies of his tenure—the Naira redesign policy, which was implemented just months before the 2023 general elections. The policy, which saw the sudden and poorly executed demonetization of old naira notes, led to a nationwide cash crisis, causing immense hardship for Nigerians.

Critics, including then-candidate Bola Tinubu, accused Emefiele of weaponizing monetary policy to sabotage his presidential bid by starving the political system of cash.

Tinubu, who was running under the APC, openly suggested that the CBN’s policy was politically motivated, as it disproportionately affected his campaign structure, which relied on mobilizing supporters at the grassroots level. Other politicians, including members of the APC, also condemned the policy, labeling it as a deliberate attempt to influence the election outcome.

The backlash against the naira redesign policy was swift and severe, erupting across the country as Nigerians struggled to access cash, businesses suffered, and the informal economy grounded to a halt. The Supreme Court later ruled that the policy was unlawful, further tarnishing Emefiele’s legacy.

Following Tinubu’s election victory, one of his first major moves was to remove Emefiele from office in June 2023. This decision marked the beginning of Emefiele’s legal troubles, as security agencies immediately placed him under investigation. The Department of State Services (DSS) arrested him shortly after his suspension, and he has since faced multiple legal battles on charges ranging from corruption, and abuse of office, to economic sabotage.

Implications of the Final Forfeiture Order

With the court’s ruling now finalized, the federal government is set to repossess and potentially repurpose the forfeited assets, including the luxurious properties, foreign investments, and millions of dollars seized from Emefiele and his associates. The EFCC’s victory in securing the final forfeiture order is being hailed as a major step in Nigeria’s ongoing anti-corruption drive, particularly in efforts to recover stolen public funds.

However, despite this forfeiture, there are concerns about whether Emefiele will face full legal consequences for his actions. Nigeria has a long history of high-profile corruption cases ending without convictions.

While the forfeiture of assets provides a symbolic victory, many are demanding that Nigeria’s judicial system go beyond asset recovery to ensure that those responsible for economic mismanagement and financial crimes face real consequences, including imprisonment.

For now, Emefiele remains embroiled in multiple legal battles, with the EFCC intensifying its investigations into other financial transactions tied to his tenure. The agency has hinted at the possibility of further charges, including more revelations regarding the mismanagement of Nigeria’s foreign reserves and unauthorized financial dealings under his leadership.

However, the former CBN governor has denied any involvement with the forfeited properties. In a statement on Friday by Olawale Fapohunda on behalf of his legal team, Emefiele distanced himself and his immediate family from ownership of the said properties and funds.

He said a part of the assets belong to his relatives, but asked those associating him and his immediate family with the assets to stop doing so in the interest of fairness.

“Our attention has been drawn to recent news reports indicating that Justice Bogoro of the Federal High Court, Ikoyi, Lagos, has granted a final forfeiture order on certain properties allegedly linked to one Anita Joy Omoile and her companies, including DeepBlue Energy Limited,” the statement reads.

“It is important to clarify that DeepBlue Energy Limited, established in 2009, is owned by a relative of our client, Mr. Godwin Emefiele, but not by Mr. Emefiele himself.

“For the avoidance of any doubt, we, as the legal representatives of Godwin Emefiele, categorically disassociate our client from the ownership of the assets in question.

“For emphasis, the assets in question do not belong to our client or any member of his immediate family.

“Furthermore, information reaching us suggests that Justice Aneke of the same Federal High Court, Ikoyi, Lagos, had previously discharged an interim forfeiture order on the same assets now forfeited by Honourable Justice Bogoro.

“We urge all stakeholders and members of the public to take note of this clarification and stop associating these assets with Mr. Godwin Emefiele.”