Nigeria has enlisted the help of investment banks such as Citigroup Inc., JPMorgan Chase & Co., and Goldman Sachs Group Inc. to assist with its first Eurobond issue since 2022.
The country, which is Africa’s largest oil producer, is looking to borrow up to $1 billion in 2024 to cover its expenses.
In addition to these banks, the government has also brought on Standard Chartered Bank and Chapel Hill Denham, based in Lagos, as advisors.
According to Peoples Gazette, Wale Edun, Nigeria’s Minister of Finance and Coordinating Minister of the Economy, founded Chapel Hill Denham Group, a firm that offers investment banking, securities trading, and investment management services to various clients, including financial institutions, multinationals, and governments.
This situation raises concerns about a conflict of interest, as Edun’s firm has been awarded the contract while he serves as the finance minister, which goes against Nigerian public service regulations.
A recent report by Sahara Reporters revealed that Edun moved the National Social Investment Programmes (NSIPs) from the Ministry of Humanitarian Affairs and Poverty Alleviation to the Ministry of Finance and Coordinating Economy without presidential approval.
Media reports mentioned that a panel set up by the minister recommended resuming the programs to help poor and vulnerable Nigerians. Interestingly, the panel suggested creating a new board led by Edun to oversee the social investment programs.
With the suspension of the humanitarian minister, Betta Edu, concerns have been raised in government circles about the decision to transfer NSIP to the Ministry of Finance and Coordinating Economy.
Government officials mentioned in the report expressed that this move could bring significant changes to the programs, potentially involving the dissolution of the current board, removal of state coordinators, and the appointment of new leaders.
“This is not a good move. The social investment programmes are currently domiciled in the Federal Ministry of Humanitarian Affairs and Poverty Alleviation.
“They are implemented by the National Social Investment Programme Agency (NSIPA) by law.
“The executive bill sent by the Muhammadu Buhari administration to the national assembly placed the NSIPA, which is in charge of these social programmes, in the federal ministry of humanitarian affairs and poverty alleviation.
“A bill would have to be sponsored to amend the principal act. Anything outside of that is illegal and against the laws setting up the NSIPA,” a government official said.
