All Posts in "Day: March 8, 2022"

FCMB Names Odeghe As Executive Director

First City Monument Bank (FCMB),has  appointed  Obaro Odeghe as  its new Executive Director, Wholesale Banking.
His appointment  follows the nod of the Central Bank of Nigeria (CBN),a statement from the bank said
According to the statement, Obaro’s roles will focus on deepening FCMB’s wholesale banking franchise in Nigeria by further expanding the coverage of bulk currency exchange, large fund management, trade transactions, working capital financing, and bank-to-bank lending for large corporations, other financial institutions, and government agencies, among others.
A seasoned financial services executive with over 25 years of experience, Obaro’s record of exceptional performance cuts across Trade Finance and Operations, Corporate, Commercial, SME, Consumer, and Institutional Banking.
Obaro Odeghe,the statement said,holds a Bachelor of Agriculture degree from the University of Benin and a Master’s degree in Business Administration from the same University. He has attended several domestic and international executive training programmes at leading business schools, including Kellogg School of Management, Harvard Business School, Stanford Graduate School of Business, and the London Business School.
He is a Fellow of the Institute of Credit Administration, a member of the Institute of Directors (IoD), an honorary Senior Member, Chartered Institute of Bankers of Nigeria (HCIB) and currently a Non-Executive Director on the Board of Financial Institutions Training Centre. He is also a Fellow of the National Institute of Marketing of Nigeria (NIMN) and the National Institute of Management (NIM).
Main Admin by — March 8, 2022 in Next Level 0
Our Move On ExxonMobil Assets Acquisition Intact, Says Seplat

Seplat Energy says it has not aborted  its  move to acquire Exxonmobil assets in Nigeria
The company  conveys the clarification in a statement,saying the Sale and Purchase Agreement (SPA), earlier announced February 25, 2022, deals with the acquisition of the entire share capital of MPNU’s shareholders, Mobil Development Nigeria Inc. and Mobil Exploration Nigeria Inc., being entities of ExxonMobil Corporation registered in Delaware (ExxonMobil).
It added:“The company has become aware of newspaper and social media reports that the Nigerian National Petroleum Company Limited (NNPC) has exercised a right of pre-emption under the NNPC/Mobil Producing Nigeria Unlimited (MPNU) Joint Operating Agreement (JOA).”
The energy company stated that the MPNU is not a party to the SPA and continues to hold its interests, rights, and obligations under the NNPC/MPNU JOA.
It  also confirms that no event of termination has occurred, and the SPA remains valid and subsisting amid some reports that the SPA between ExxonMobil and Seplat Energy has been terminated.
The energy firm said it is a compliant company and will continue to follow the laws of the Federal Republic of Nigeria.
Main Admin by — March 8, 2022 in Oil&Gas 0
DisCos Defend Obligations On Customer Metering Requirements

The Association of Nigerian Electricity Distributors,has clarified that its members are operating within the regulatory guidelines established  by Nigerian Electricity Regulatory Commission (NERC) relative to meeting customer metering requirements.
Its Executive Director, Research and Advocacy, Barr. Sunny Oduntan, disclosed this in Abuja
 Speaking on the different channels through which customers can obtain electricity meters,Oduntan clarified  that not all approved metering schemes, currently active in the country, offer meters at no immediate expense to customers.
He said:“Under the Nigerian Electricity Regulatory Commission (NERC)’s “Meter Asset Provider and National Mass Metering Regulations,” Regulation No. NERC-R-11-2021, there are two metering programmes –  National Mass Metering Programme (NMMP) and the Meter Asset Provider (MAP).  The NMMP is a policy intervention by the federal government, with funding from the Central Bank of Nigeria (CBN). This programme commenced in 2021 and the objective of the  program is to  expeditiously close the electricity metering gap. These meters are provided free of charge to customers and as loans to the electricity distribution companies (DisCos). The first phase of NMMP covered the delivery and installation of a million meters and concluded in October, 2021.  In the second phase, four million more meters are expected to be installed.
“The second route to obtaining a meter is under the Meter Asset Provider (MAP) scheme which was approved in 2018. This avenue is available to customers who are unwilling to wait for the availability of meters under the NMMP. Such customers can pay for a meter under the scheme. The amount paid by the customer will be amortised and refunded over a 36-month period via energy credits, ,” Oduntan explained.
“This twin approach is aimed at closing the metering gap in the next one or two years, so that estimated billing will be reduced to a minimum. However, of note is that under the second program, with the advantage of expedited delivery and installation, the customer has to first pay for the meter before being refunded. Ultimately, the meter is free to the customer, via the energy credits”
He added that the implementation of Phase 0 (zero) of the NMMP has been concluded by all the DisCos, while waiting for the commencement of Phase 1.
He said all the DisCos are finalizing the documentation and disbursement requirements of the funding for Phase 1, with an expected kick-off of the same soonest.
Main Admin by — March 8, 2022 in Power 0
Oil,Gas Sector Contributed 8.2% To Nigeria’s GDP In 2020 – NEITI

The 2020 oil and gas industry audit report released by Nigeria Extractive Industry Transparency Initiative (NEITI)  showed that the oil and gas sector contributed only 8.16% to the total GDP in 2020.
This represents a decline of 0.46% when compared to the 8.62% recorded in 2019.
Nigeria earned $20.43billion from the oil and gas sector in 2020,representing a  decline of 40% compared to the 34.22billion realized from the sector in 2019.
Dr. Orji Ogbonnaya Orji, the Executive Secretary of NEITI, disclosed these at  the public presentation of the agency’s industry reports of the oil, gas, mining as well as the fiscal allocation and statutory disbursement in Abuja.
 The report further revealed that the sector dominated the country’s export in 2020, contributing about 75% (N9.44Trillion) of the total export value of N12.52Trillion.
On remittances to the Federation Account from the oil and gas sector, the report also disclosed that $14.65Billion, representing 71.17% of the total earnings in 2020, was remitted to the account, while total aggregate financial flows from the oil and gas sector to government in ten years (2011-2020) was $394.029 billion.
 The report also revealed that the total crude oil production in 2020 was 646.7mmbbls, representing a 12% decrease when compared to the 735.24 mmbbls produced in 2019. Out of the above total production in 2020, 648.48mmbbls were lifted, and this was 11.85% lower than the 735.66mmbbls lifted in 2019.
 On domestic crude allocation and consumption, the NEITI report also disclosed that 107.746mmbls was managed by the NNPC under the Direct Sale Direct Purchase arrangement. It also revealed that the value of the crude exchanged under the DSDP arrangement was $6.7billion, while the value of the refined products received for local consumption was $6.03billion, indicating a variance of $134.78million.
 As regard to fuel subsidy, the NEITI report further disclosed  that NGN106.9billion was paid as subsidy between January and June 2020 to sustain product availability with an outstanding balance of N26.74Billion yet to be paid. NEITI also reported that 20.01billion litres of petrol, 52million litres of kerosene and 5.33billion litres of diesel were respectively imported into the country for domestic use during the period under review.
 The report said 39.16mmbls of crude valued at US$44.73million (N15.71billion) was stolen with 349 cases of pipeline vandalism recorded in 2020,representing an improvement on the 1,387 cases of vandalism reported in 2019.
 The report revealed that the gas sub-sector contributed over $1.5billion to the Federation account.
It added that  the total gas production in 2020 was 3.01million cubic feet. While 64% of this total quantity was sold, 8% was flared and 4% unaccounted for.
The report emphasized the need  for further investigations into the circumstances surrounding the transfer of the Federation’s stake in OML 24 operated by Pan Ocean and New Cross Energy. NEITI’s concern is on the value for money of the transaction, payment for the federation equity interest and recovery of the $309.1million that should have been paid for the asset.
It welcomed the Petroleum Industry Act and the prompt decision of President Buhari to set up a nine-member committee, including NEITI, to oversee its implementation adding that the courageous implementation of the reports of the Steering Committee when concluded will set the stage for a new oil and gas industry ready for competition and investment going forward.
Main Admin by — March 8, 2022 in Oil&Gas 0
CBN To Manufacturers :Don’t Take Dollar Loans

…Says Agric is Nigeria’s Saving Grace
The Central Bank of Nigeria (CBN) has urged Nigerian manufactures whose revenues are naira- denominated to  shun  dollar loans.
It promised  to continue to provide naira funding, advising that where the revenue stream is in naira, dollar loans should be avoided.
The CBN Governor, Godwin Emefiele spoke during a facility tour of Tolaram Group projects manager of the Lagos Sea Port under construction.
He added:“So, for any entrepreneur that wishes to do business in Nigeria, we will provide naira funding and will always advise that particularly if your revenue stream is in naira, such company should avoid taking dollar loans. Take cheap naira loans at single digit interest rate with two years moratorium”.
He assured that  the CBN will continue to  encourage people to take advantage of such loans to drive industrialisation in Nigeria and get a manufacturing business back alive again.
He  disclosed that the bank has provided N100 billion intervention fund to Tolaram Group under the Differentiated -Cash Reserve Ratio or through the Commercial Agriculture Credit Guarantee Scheme, which represents only 10 per cent of the N1 trillion, which is about $2 billion, project embarked by the company. “You can see we have sown a seed and we have also given support through making foreign exchange available for them to bring in the equipment to get the Lagos Port operation to work.
“The Tolaram Group has clearly demonstrated that it is one of the largest manufacturing companies with 19 factories in the country. We will not rest on our oars to the extent that we must make sure that whatever you need either Naira loans through our interventions or dollars to import your equipment and plants and the rest of them, we will continue to accord you priority.”
Emefiele also disclosed that Infrastructure Corporation of Nigeria Limited (InfraCorp), Lagos state government and Federal Government will collaborate and begin engagement meant to ensure easy movement of goods out of the Lagos Free Trade Zone. The N15 trillion InfraCorp is co-owned by the CBN, the African Finance Corporation (AFC) and the Nigerian Sovereign Investment Authority (NSIA). “The InfraCorp is chaired by the Central Bank of Nigeria. Its board has been formally constituted, with  a CEO in InfraCorp and as soon as we leave this meeting, I will be calling on InfraCorp to begin engagement,” he said.
“I will also be involved in engaging the Lagos state government, as well as the Federal Government as well as the Federal ministry of works see what can be done on evacuating goods out of Lagos, as well as decongesting the traffic for people living around Lekki port axis. I want to give assurance that this is something that would be dealt with. This would be a middle-to-long-term plan. We are happy that this port infrastructure is here and will improve ease of doing business, reduce congestion at the Lagos Tin Can and Lagos Apapa ports.”
He said the apex bank would work with the Lagos Free Zone by having a dedicated export desk that would make it easy for goods to be exported out of the Lagos Port.  “That is a very essential thing that we need to deal with, because again talking in a very selfish mode, we need a foreign exchange.  If we export, we earn foreign exchange, and I am going to start working with them to ensure that we designate the Lagos Free Zone as an export zone,” he said.
Meanwhile,Governor, Central Bank of Nigeria (CBN), Mr Godwin Emefiele,has  expressed satisfaction on the tremendous impact agriculture and the huge role agriculture has played in revitalizing the country in the last six years.
Emefiele disclosed this to  journalists during an inspection tour of the palm plantation at Odighi village in Ovia North East Local Government Area of Edo state at the weekend.
He wondered what would have happened to Nigeria if the agriculture sector had not been revamped, vis a vis the rising cost of food items across the globe.
The CBN Governor expressed  satisfaction that the Bank has assumed a pivotal role since 2015 upon the pronouncement by President Muhammadu Buhari that “we produce what we eat and eat what we produce” by coming up with several initiatives aimed repositioning the sector with a view to creating employment opportunities as well as growing the the gross domestic product (GDP) of the country.
On his assessment of the farm, an elated Emefiele, expressed joy in the blooming maize and cassava, stating that in the next 12 months, harvests would have commenced.
Acknowledging the significant role played by Edo state Government, thanked Governor Godwin Obaseki immensely for matching words with action by making sure that arable land is made available to those who are genuinely interested in agriculture. He also appealed to other state Governors to emulate Edo state which has So far, made available about 70 per cent of the promised arable land.
He spoke on the socio-economic impact of the CBN interventions, Emefiele singled out the Anchor Borrowers Programme (ABP) among other interventions schemes, which revolutionized agricultural practice whereby small holder farmers who hitherto could not approach commercial banks for loans, are now being granted credit facilities in the forms of inputs like seedlings, fertilizer and herbicides. Those small holder farmers can now cultivate and produce enough for their families and sell produce as loan repayment with ease, thereby generating employment, improving living standards and creating wealth simultaneously. Emefiele also commended the efforts of the promoting company, Agri-Allied Resources and Processing Limited and its parent company, Tolaram Limited for heeding to clarion made by the CBN to source their critical raw materials locally. He noted that the company has painstakingly embraced backward integration principle by acquiring farmland to the tune of 18,000 hectares for cultivation of oil palm, cassava and maize which are the critical raw materials used by the group.
Main Admin by — March 8, 2022 in Business 0
Group Decries Electricity Supply Hitch, Fuel Scarcity

Coalition for Affordable and Regular Electricity (CARE), has decried the current epileptic power supply and fuel scarcity,saying Nigerians are subjected to monumental suffering on account of the twin issue.
The  group in a statement by its national coordinator,Chinedu Bosah,and secretary,Monsuru Shoyombo,said the hardship is unbearable in view of  the fact that the only alternative for a number of people is the reliance on private expensive electricity generation through generator sets.
 The group said,the ongoing fuel scarcity has made it extremely difficult to generate electricity at homes and businesses and as a consequence, the cost of living has increased.
According to the group,it is unthinkable that Nigeria is stewing in crisis despite a global comparative advantage it  is supposed to have in electricity through  gas, abundant solar, wind and hydro reserves while it is also a major crude oil producer.
It said since November 2013 when the power sector was privatized, the story has been constant darkness, tariff hikes, outrageous estimated (crazy) billings and bailout of irresponsible and inefficient power sector companies.
It added that   between 2005 the process of privatizing began and today, over $15 billion has been expended on the power sector including the senseless bailouts.
It maintained that the current fuel scarcity and poor electricity supply are further evidence of the failure of the Buhari-led regime and the capitalist policies (privatization, deregulation etc).
It said:”These two sectors are overwhelmingly under the control of the private sector profiteers with the self-serving government playing a bell boy role as so-called regulator. Privatisation and deregulation have only put more money in the pockets of a few privileged and greedy individuals leaving the vast majority of the working masses in more misery and crises.
” The irony of it all is that the same Buhari-led capitalist government often claims paucity of funds when it comes to public education, healthcare and basic amenities and as a result these critical sectors are underfunded. Besides, the government keep borrowing trillions of Naira only to squander most of it including public funds generated on white elephant projects and bailout of weak and inefficient private companies and capitalist elite.
“Coalition for Affordable and Regular Electricity (CARE) calls on Nigerian workers and electricity consumers across communities to resist tariff increment and struggle for massive public investment, free prepaid meters for all consumers and uninterrupted power supply. The leadership of the Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC) must end their strategic partnership with the self-serving bourgeois ruling elite and mobilize the working class and the poor masses to reverse the privatization and deregulation policies.
“Fundamentally, the way forward is the renationalization (public ownership) of the power and oil sectors, massive public investments and democratic control and management by the working class and consumers”
Main Admin by — March 8, 2022 in Power 0
NNPC Explains Interest In Power Plants,Gets Varsity Students’  Support  To Stop Fuel Scarcity

Nigerian National Petroleum Company Limited (NNPCL), formerly Nigerian National Corporation (NNPC),has justified its interest  in the acquisition of the power plants put up for sale by the Federal Government through the Nigeria Integrated Power Plants (NIPPs),saying it has requisite  expertise and experience to be an active participant in the power sector in Nigeria.
Managing Director of NNPCL, Mallam Mele Kolo Kyari, disclosed this when he led top management team of the Oil & Gas Company on a courtesy visit to the Bureau of Public Enterprises (BPE),a statement said.
He was quoted saying that as an oil company and enabler organisation, NNPCL was determined to boost power generation and supply to Nigerian homes through increased investment .
He said the company  had signed a contract with China Machinery Engineering Company (CME) and General Electric, (GE) to provide 50 Mega Watts of electricity to Maiduguri, Borno State.
He added that his company  was determined to run the organisation efficiently and profitably for the benefit of the shareholders hence it plans to engage in activities that would generate funds; and for the power sector, “NNPCL is a partner of choice”.
He  disclosed  organisation’s   readiness  to partner with  the Bureau of Public Enterprises (BPE) after the audit of some of its assets for the sale and divestment of those  assets  through the BPE.
The planned audit,he said,would be carried out by renowned and reputable audit firms.
Speaking, Director General of the Bureau of Public Enterprises (BPE), Mr. Alex A. Okoh said that the NNPCL had indicated interest in  the acquisition of some NIPP plants and would be  given a level playing ground to compete with other bidders.
He added that the National Council on Privatisation(NCP) would be notified of the desire by the NNPCL to bid for the NIPP plants.
Meanwhile,the National Association of Nigerian Students NANS has concluded plans to inaugurate an independent task force to assist the Nigeria National Petroleum Company Limited (NNPC) and other relevant agencies checkmate hoarding, price hike and diversion of the product across the country.
National President of NANS, Comrade Sunday Asefon, expressed that  it was unfortunate that adulterated fuel got into the country but it was assuring that the management of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) rose up to the challenges by riding the country of the bad product in record time.
He emphasized that concerted efforts must be put in place by all concerned stakeholders in the Petroleum industry to find lasting solution to the problem and restore normalcy.
He  said: “It is also a verifiable fact that the Government through the Nigeria National Petroleum Company, (NNPC Ltd), and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA),  demonstrated consistency and dedication, by first alerting Nigerians of the off-spec petroleum products as well as working to ensure that all affected companies and individuals responsible for this adulterated fuel are appropriately sanctioned.
“We commend NMDPRA for alerting the country of methanol above national specifications in the imported petrol, and proceeded to declare that efforts were on top gear to remove the contaminated products from circulation to avoid economic damage.
“As Nigerians we recall that the Group Managing Director of the NNPC, Malam Mele Kyari, in subsequent statements and an appearance at the House of Representatives outlined efforts by NNPC to arrest the situation. Among which was NNPC and other relevant agencies embarking on Petrol Distribution Surveillance (PDS), with the sole aim of seeing to  the seamless evacuation of adulterated products from the vessels to depots and trucking from depots to other inland depots as well as retail stations.
“NANS wish to declare its readiness to join the surveillance team to monitor and ensure effective distribution, avert diversion and fight out delibrate price hike by retailers.Information available to Nigerian student’s Apex body also confirmed that there is daily monitoring of trucks out from depots to all 36 states of the nation.
“Besides these, there is never a plan to enforce new pump price on Nigerian as insinuated by some unscrupulous elements. In the coming days, NANS shall inaugurate Independent Task Force to assist the NNPC and other relevant agency to end the hoarding, price hike and diversion across the nation.
“Our team shall be entering all fuel stations to ensure anyone with product that refuses to sell are compelled to sell while those selling at higher prices shall be forced to reduce to sell at normal price. This action has become imperative in order to find amicable solution and support the NNPC to help Nigerians  overcome this suffering”.
Main Admin by — March 8, 2022 in Oil&Gas 0
World Bank Mobilizes $700 million Support Fund For Ukraine

The World Bank Board of Executive Directors has approved a supplemental budget support package for Ukraine, called Financing of Recovery from Economic Emergency in Ukraine – or FREE Ukraine – for $489 million.

The package approved by the Board consists of a supplemental loan for $350 million and guarantees in the amount of $139 million and is also mobilizing grant financing of $134 million and parallel financing of $100 million, resulting in total mobilized support of $723 million.

The bank said the support will help the government provide critical services to Ukrainian people, including wages for hospital workers, pensions for the elderly, and social programs for the vulnerable.

The initial World Bank support was increased with guarantees from the Netherlands for 80 million euros ($89 million equivalent) and Sweden for $50 million.

The World Bank has also set up a multi-donor trust fund (MDTF) to facilitate channeling grant resources from donors to Ukraine, with contributions from the UK, Denmark, Latvia, Lithuania, and Iceland in the amount of $134 million thus far. The World Bank is calling for further grant contributions to the MDTF. In addition, Japan is linking $100 million in parallel financing to the support package.

“The World Bank Group is taking quick action to support Ukraine and its people in the face of the violence and extreme disruption caused by the Russian invasion,” said World Bank President David Malpass. “The World Bank Group stands with the people of Ukraine and the region. This is the first of many steps we are taking to help address the far-reaching human and economic impacts of this crisis.”

The World Bank Group is preparing a $3 billion package of support for Ukraine in the coming months and additional support to neighboring countries receiving Ukrainian refugees.

According to UNHCR, since the onset of the invasion, 1.7 million Ukrainians – primarily women, children, and elderly – have fled to neighboring countries. Medium and long-term support will be needed for the provision of public services, both for refugee and host communities, and labor market access for refugees.

The World Bank’s overall portfolio of projects in Ukraine supports improvements in basic public services, in areas such as water supply, sanitation, heating, power, energy efficiency, roads, social protection, education and healthcare, as well as private sector development. Since Ukraine joined the World Bank in 1992, the Bank’s commitments to the country have totaled more than $14 billion in about 90 projects and programs.

Main Admin by — March 8, 2022 in News 0