Access Holdings Plc Holds Signing Ceremony On Planned ₦351 Billion Rights Issue

Mohammed Shosanya

Access Holdings Plc,Tuesday held a formal signing ceremony as part of the arrangements to raise a total of ₦351,009,103,017.25 (Three hundred and fifty-one billion, nine million, one hundred and three thousand, seventeen naira and twenty kobo) by way of a Rights Issue (“the Offer”) to existing shareholders.

The offer is part of the Group’s strategy to enhance its working capital requirements, which includes organic growth funding for its banking and non-banking subsidiaries, a statement said on Tuesday.

Access Holdings’ shareholders had at its 2nd Annual General Meeting (AGM), which held on Friday, April 19, 2024, unanimously backed its plan to execute a Capital Raising Programme of about US$1.5 billion as well as the subset initiative to raise capital through a Rights Issue of ordinary shares to its shareholders.

Under the Rights Issue, 17,772,612,811 (Seventeen billion, seven hundred and seventy-two million, six hundred and twelve thousand, eight hundred and eleven) ordinary shares of N0.50 each at N19.75 per share on the basis of 1 (one) new ordinary share for every 2 (two) existing ordinary shares held as of Friday, June 7, 2024.

At the Signing Ceremony, Acting Managing Director/Chief Executive Officer of Access Holdings Plc, Bolaji Agbede, disclosed that “The Rights Issue is a significant step in delivering our 2023-2027 strategic plan. The additional capital will enable us to maximise emerging opportunities and deliver long-term value to our shareholders.”

Chapel Hill Denham is the Lead Issuing House to the Offer, while Atlas Registrars Limited will serve as Registrars through the exercise.

The Joint Issuing Houses are Coronation Merchant Bank, Stanbic IBTC Capital, Vetiva Advisory Services, Greenwich Merchant Bank, FCSL, First Ally Capital, FCMB Capital, Renaissance Capital Africa and Meristem Capital.

Other parties to the Offer are Coronation Merchant Bank, Coronation Securities, Chapel Hill Denham Securities Limited, FSDH Capital, Cordros Capital, Cowry Securities, First Integrated Capital Management Ltd, Network Capital Ltd, CSL Stockbrokers Limited, Compass Investment & Securities Ltd, PAC Securities Limited, Dynamic Portfolio, Chartwell Securities Limited, Tiddo Securities Limited, and Futureview Securities Limited.

Subject to approval of the Securities and Exchange Commission (SEC), the Acceptance and Application Lists for the Rights Issue are expected to open on Monday, July 8, 2024, and close on Thursday, August 8, 2024.

The Rights Circular for the Issue, which contains a Provisional Allotment Letter and the Participation Form, will be mailed directly to shareholders of the Group. Printed copies of the Participation Form can also be obtained at any Access Bank branch and the offices of the Issuing Houses during the Offer Application Period.

All existing shareholders and prospective investors are encouraged to read the Rights Circular and Prospectus and, where in doubt, consult their Stockbroker, Fund/Portfolio Manager, Accountant, Banker, Solicitor, or any other professional adviser for guidance before subscribing.

Interest Rate Hike Will Kill Nigeria’s Manufacturing Sector-Dangote

Mohammed Shosanya

Chairman of the Dangote Group, Aliko Dangote, has faulted the hike of interest rate to almost 30 per cent by the Central Bank of Nigeria (CBN).

He spoke at the Banquet Hall of the State House, Abuja, during the opening session of a three-day summit organised by the Manufacturers Association of Nigeria (MAN), on Tuesday.

He said with the present interest rate regime, it will be difficult to create jobs,adding that it would also be tough for the manufacturing industry to grow and compete favorably.

“Nobody can create jobs with an interest rate of 30%. No growth will happen”,he said.

Dangote,who advocated the need for new policies that will protect domestic industries,also called on the government to protect existing businesses in the country, especially manufacturers, by providing an enabling environment for them to thrive.

He said:“We must look to leading countries in the West and the East who are actively protecting their domestic industries.”

He further likened an import-dependence to poverty importation.

He added:“Import dependence is equivalent to importing poverty and exporting jobs. No power, no growth, no prosperity. Similarly, no affordable financing, no growth, no prosperity. There is no industrialization without protection Ignoring these facts, is what gives rise to insecurity, banditry, kidnapping and abject poverty”.

Nigerians Spend N16.5trn Annually On Fuelling Generators-Minister

Mohammed Shosanya

Nigerians spend N16.5trillion annually on fuelling and servicing of generators,Minister of Power, Adebayo Adelabu,has said.

He disclosed this at the ongoing NOG Energy Week in Abuja,on Tuesday.

His disclosure was based on a research carried out for the year 2023,which he said,covered expenditure on fuelling and service of generators.

He added:“What Nigerians spend on self-generation of power – on fuelling and servicing their generators- is N16.5 trillion according to a research that was carried out in 2023. Looking at this you will see that What Band A customers pay is still cheaper compared to this, despite having 24 hours uninterrupted supply”.

The Minister,who disclosed that the power sector in Nigeria consumes the largest share of the country’s domestic gas supply,advocated the need for increased investment in Nigeria’s gas development to unlock the full potential of the power sector and achieve the Nigeria Energy Transition Plan.

He said,in line with the Nigeria Energy Transition Plan vision 30:30, which seeks to achieve 30GW by the year 2030, the country’s energy mix is projected to be 70% thermal source and 30% renewable source.

According to him,the power sector would require over five times what the industry currently utilises from the domestic gas market to achieve the nation’s 70% thermal energy target with gas-powered generation.

Besides,he said additional investments would be needed to increase the country’s gas production to achieve this level of gas supply to the power sector without compromising the export obligations.

He implored investors to consider the investment in the further development of gas production in the country, especially on the nation’s abundant unexploited Non-Associated Gas reserves.

He also urged investors to consider the significant benefits of investing in renewable energy projects in Nigeria to enable the country achieve its renewable energy target.

He said:”Our country boasts abundant resources, particularly solar, wind, and hydro energy, providing a remarkable opportunity for sustainable growth. The renewable energy market has grown tremendously in the last decade, with over $1 billion leveraged by Multilateral Development Banks.

“By channeling investments into these renewable sources, we can effectively meet our carbon emission targets while playing a crucial role in combating climate change.

“As demonstrated by our recently completed $550 million Nigeria Electrification Project, investing in renewable energy helps reduce carbon emissions, enhance energy security, and support economic development.

“Additionally, to complement the NEP, the $750 million DARES project would provide electricity to 2.5 million people in Nigeria by deploying solar home systems and mini-grids. These investments will propel Nigeria toward achieving its desired energy mix and transition targets”.

He reaffirmed the country’s unwavering commitment to achieving net zero emissions by 2060.

NNPCL Declares State of Emergency on Crude Oil Output

Mohammed Shosanya

The Nigeria National Petroleum Company Limited has declared a state of emergency on production in Nigeria’s oil and gas industry.

The action is pursuant to increasing Nigeria’s crude oil production and growing its reserves,Group Chief Executive Officer of NNPC Ltd, Mr. Mele Kyari,said.

He disclosed this in a keynote address at the opening ceremony of the 23rd edition of the Nigeria Oil & Gas Conference and Exhibition (NOG Energy Week) in Abuja, on Tuesday,according to a statement signed by Olufemi O. Soneye
Chief Corporate Communications Officer,NNPC Ltd.

“We have decided to stop the debate. We have declared war on the challenges affecting our crude oil production. War means war. We have the right tools. We know what to fight. We know what we have to do at the level of assets. We have engaged our partners. And we will work together to improve the situation,” the GCEO declared.

He said,a detailed analysis of assets revealed that Nigeria can conveniently produce two million barrels of crude oil per day without deploying new rigs, but the major impediment to achieving that remains the inability of players to act in a timely manner.

He disclosed that the “war” will help NNPC Ltd. and its partners to speedily clear all identified obstacles to effective and efficient production such as delays in procurement processes, which have become a challenge in the industry.

Speaking on medium to long-term measures aimed at boosting and sustaining production, Kyari said NNPC Ltd. would replace all the old crude oil pipelines built over four decades ago and also introduce a rig sharing programme with its partners to ensure that production rigs stay in the country for between four and five years which is the standard practice in most climes.

He was quoted in the statement as imploring all players in the industry to collaborate towards reducing the cost of production and boosting production to target levels.

He expressed the company’s commitment to investing in critical midstream gas infrastructure such as the Obiafu-Obrikom-Oben (OB3) and the Ajaokuta-Kaduna-Kano gas pipelines to boost domestic gas production and supply for power generation, industrial development and economic prosperity of the country.

On Compressed Natural Gas (CNG), Kyari observed that NNPC Ltd. has since keyed into the Presidential CNG drive, adding that in conjunction with partners such as NIPCO Gas, NNPC Ltd. has built a number of CNG stations, 12 of which will be commissioned on Thursday in Lagos and Abuja.

The opening ceremony of the NOG Energy Week also saw goodwill messages and keynotes presented by the Secretary General of the Organisation of the Petroleum Exporting Countries (OPEC), Haitham Al Ghais; Secretary General of the Gas Exporting Countries Forum (GECF), Engr. Mohamed Hamel; Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri; Minister of State for Petroleum Resources (Gas), Rt. Hon. Ekperikpe Ekpo; Special Adviser to the President on Energy, Ms. Olu Verheijen as well as the Chairman, Independent Petroleum Producers Group (IPPG), Mr. Abdulrazaq Isa.

NNPC Ltd. is the Principal Sponsor of 2024 NOG Energy Week Conference & Exhibition which has as its theme “showcasing opportunities, driving investment and meeting energy demand.