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Dangote hands over drivers to Customs for conveying contrabands

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The transport section of Dangote Cement Ibese Plant has intercepted one of the company’s truck loaded with contrabands in Ibadan, and handed the drivers over to the Nigeria Customs Service for proper investigation and possible prosecution.

The arrest of the drivers, according to Dangote Cement, was effected by a team of its security personnel led by the chief security officer, who acted on intelligence bordering on misconduct by some of the drivers.

READ: Three weeks after, kidnapped Dangote company director remains missing

While handing over the drivers and the motor boy to the Customs authority, Assistant General Manager in charge of security services, Dangote Cement Ibese Plant, Ali Garba, explained that the company had a surveillance section that monitors all the trucks and their drivers’ activities.

He said, “On June 7, 2017 at about 1820 hours, intelligence information received by Dangote senior drivers Ibese led to the interception of a Dantrans truck No. KMC 38 XR/ICT-13A-083 driven by a former and dismissed driver Ismaila Abubakar. The truck was loaded with frozen turkey allegedly loaded at Iyana Isolo, Lagos State and heading to Benin City, Edo State”

Garba added that while Nasiru H. Ahmed 284393 was the bona fide driver of truck KMC 38 XR/ICT-13A-083, preliminary investigation revealed that on June 2, he loaded 900 bags of cement for the Benin Depot.

READ ALSO: Ex-worker accuses Dangote Group of neglect after spinal injury

He added, “At Kara Garage in Benin City, Nasiru H. Ahmed dropped from the vehicle and travelled to Birnin Gwari in Kaduna State, leaving the truck in the care of his motor boys, Bilyaminu Abdullahi and Bashiru, with the dismissed driver, Ismaila Abubakar.”

“Unfortunately for the bona fide driver, Ismaila Abubakar drove the truck from Kara to the Benin Depot for offloading of the cement after removing the truck tracking system and left it in Benin City.

“Investigation revealed further that instead of driving straight to the plant, they decided to go to Iyana-Isolo in Lagos State to lift frozen turkey to Benin City at the cost of N350,000, out of which only N70,000 was paid as part-payment.”

READ ALSO: Dangote, Adenuga, others can end poverty in Nigeria – Oxfam

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Budget: FG to release N350bn for capital projects

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Ifeanyi Onuba, Abuja

The Federal Government is set to release the first tranche of capital release of N350bn to its Ministries, Departments and Agencies for implementation of the 2017 budget.

The Minister of Finance, Mrs. Kemi Adeosun, disclosed this on Monday in Abuja during the public presentation of the 2017 Federal Government budget.

The event was attended by top officials in government, including the Minister of Budget and National Planning, Udo Udoma; Minister of State for Budget, Zainab Ahmed; Minister of Health, Prof. Isaac Adewole; and Minister of Foreign Affairs, Geoffrey Onyema, among others.

The 2017 budget christened, ‘Budget of Recovery and Growth’, was presented to the National Assembly on December 14, 2016, and passed by the lawmakers on May 11, 2017.

It was signed into law by the Acting President Yemi Osinbajo on June 12, 2017 and had a total expenditure outlay of N7.44tn, out of which N2.99tn was for non-debt recurrent spending; N2.36tn for capital expenditure; while debt servicing is to gulp N1.66tn.

Adeosun said her ministry was ready to make the release as soon as the budget was loaded, adding that a cash plan meeting would soon be held where the funds would be released to the MDAs.

“We are ready to make releases as soon as the budget is loaded. We have a cash plan meeting and we will release the first tranche of N350bn for capital projects,” she stated.

Udoma, in his presentation at the event, said the 2017 budget would run for one full year till June next year.

He, however, said that both the executive and the legislature were working on a template that would enable the country to commence a predictable budget year that would run between January and December of every year.

He added that if this arrangement was to commence from the 2018 budget year, then the 2017 budget would cease once the next year’s budget was passed and signed into law in January.

The implication of this, according him, is that some of the programmes of government contained in the 2017 fiscal document would be re-introduced in the 2018 budget.

Udoma explained, “The period of the 2016 budget was up till May and the period of the 2017 budget is again by the provision of the bill that was sent to us, which is now an Act of Parliament, continues again, this time, till June.

“However, whenever a new Appropriations Act comes into law, it overtakes the previous Appropriations Act. This means that assuming we were as we intend to achieve this year, we pass the 2018 budget into law; when it is signed into law, then the other one ceases to exist.

“So our aim is by January 2018, we want to get back to the January to December budget year. That means some of the projects in the 2017 budget will have to be carried over.”

He added that the budget that was passed by the National Assembly was what was signed into law by the Acting President, adding that an understanding had been reached for the submission of virement application to adjust the budget to reflect some of the projects, which the lawmakers tinkered with.

Such projects, according to him, are the railways, health and Federal Capital Territory projects.

Udoma said, “We identified some of our priority projects where the allocations have been reduced and discussed with the National Assembly and they graciously agreed that we can bring a virement application to restore the amount of those projects.

“Those projects include the railways, some health projects and Federal Capital Territory projects. But until that is done, the budget and the Appropriations Act reflect exactly what was passed by the National Assembly, and this is what the law is as I speak.

“However, we will be bringing virement application on a number of these projects under consideration. It’s only after they have approved it before it now becomes a law, and the budget will be adjusted to reflect that.”

The minister said the capital allocation of N2.36tn, which represents 31.7 per cent of the total budget, was directed at projects that were aligned with the core execution priorities of the Economic Recovery and Growth Plan.

Udoma noted that allocations had been targeted at critical economic sectors that had quick transformative potential such as infrastructure, agriculture, manufacturing, solid minerals, services, and social development.

For instance, he said the government would be embarking on a rail modernisation programme for which N148bn had been allocated mostly as counterpart funds on projects to be financed by China.

They are Lagos-Kano, Calabar-Lagos, Kano-Kaduna, Ajaokuta-Itakpe-Warri, Kaduna-Idu and other rail projects.

In the area of electricity, the minister said the sum of N40bn service-wide provision had been made to settle reconciled outstanding bills of government agencies as part of the strategy to revamp the ailing power sector.

For the housing sector, Udoma said the sum of N28bn was allocated in the budget for the Federal Government’s National Housing Programme nationwide.

He stated that the government was concerned about the number of abandoned projects scattered across the federation, adding that more targeted releases of funds would be done to relevant agencies of government.

The minister noted that in this year’s budget, funds had been allocated for construction and rehabilitation of over 65 roads and bridges across the six geo-political zones of the country.

Some of them are N10bn for the rehabilitation/reconstruction and expansion of Lagos-Shagamu-Ibadan dual carriageway sections I and II; N13.19bn for the dualisation of the Kano-Maiduguri road Sections I-V; N10.63bn for the rehabilitation of the Enugu-Port Harcourt dual carriageway Sections I-IV; and N7bn for the construction of the Second Niger Bridge phases 2A & 2B, including the access roads.

The Director-General, Budget Office of the Federation, Mr. Ben Akabueze, said the government would be engaging the citizens more in its budgeting process in order to enable the country to have a document that would be all inclusive.

He added that steps were being taken to bridge the gap between the people and the government by promoting transparency and accountability in the entire budget process.

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Ajaokuta: Indian firm makes fresh demands on FG

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Everest Amaefule, Abuja

The peace accord signed by the Federal Government and the Indian firm, Global Infrastructure Nigeria Limited, for the resolution of the Ajaokuta Steel Company’s legal tussle has been threatened by fresh demands by the GINL, investigation has shown.

Our correspondent learnt that the implementation of the agreement had been hampered by the fresh demands of the GINL, including its request to take charge of the Itakpe-Ajaokuta-Warri rail line, which is under construction.

The Indian firm also wants to run the Delta Steel Aladja and the Warri Port, in addition to the National Iron Ore Mining Company, Itakpe, which was conceded to the company by the Federal Government in the Modified Concession Agreement in August 2016.

Authoritative sources confirmed on Monday that the fresh demand had the potential to thwart the government’s renewed optimism for reviving the steel industry anchored on Ajaokuta and NIOMCO.

Delta Steel, the Itakpe-Ajaokuta-Warri rail line and the Warri Port are all important infrastructure required for the smooth operation of the steel industry within the Ajaokuta-Warri steel corridor.

The Itakpe-Ajaokuta-Warri rail line and the Warri Port are important transportation infrastructure for the movement of raw materials and finished products to and from both Itakpe and Ajaokuta.

Since the company had conceded Ajaokuta, running Delta Steel currently operated by another private firm will give it an opportunity to process some of the steel to be produced from NIOMCO in Itakpe. When operational, NIOMCO is expected to feed both Delta Steel and Ajaokuta with processed iron ore.

Under the privatisation programme of the Federal Government, the Ajaokuta Steel Complex and NIOMCO had been given as concessions to Global Steel Holdings Limited for $300m by the regime of former President Olusegun Obasanjo.

Following allegation of asset stripping levelled against the Indian firm, the concession was cancelled by the late President Umaru Yar’Adua on April 1, 2008. Consequently, the GINL approached the International Court of Arbitration in London for arbitration against the Federal Government.

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Etisalat Nigeria loan restructuring talks fail

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Etisalat has been instructed to transfer its 45 percent stake in Etisalat Nigeria to a loan trustee after debt restructuring talks with lenders failed, the company said on Tuesday.

The Abu Dhabi telecoms company said in a statement that Etisalat Nigeria had been in talks with Nigerian banks to restructure a $1.2bn loan after missing repayments.

The company said that the discussions failed to produce an agreement on restructuring the debt.

Etisalat said it had been notified to transfer its stake by June 23, adding that the stake had a carrying value of zero on its books.

An Etisalat Nigeria spokesman said the company was still in discussions with lenders to find a “non-disruptive” solution.

Etisalat said its financial exposure to Etisalat Nigeria was related to operational services worth 191 million UAE dirhams ($52m) and that discussions were ongoing with lenders regarding the use of the Etisalat brand.

Reuters/NAN

Etisalat changes ownership structure

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…Access Bank, 12 others get stake

Oyetunji Abioye

Etisalat Nigeria is now set to change its ownership structure after talks with banks to restructure its $1.2bn loan failed.

This came months after discussions with a consortium of 13 banks including Access Bank Plc and Guaranty Trust Bank Plc to restructure its loan after missing repayment deadlines failed to produce an agreement.

In a statement on Tuesday, Etisalat Nigeria confirmed the development and said it had commenced the restructuring with changes to its shareholding.

The statement, signed by the Vice-President, Regulatory & Corporate Affairs, Etisalat Nigeria, Ibrahim Dikko, did not give details of the new shareholding structure and the likely trading name.

Dikko said discussions were still ongoing regarding other issues such as the trading name during the transition phase.

Etisalat Group, the parent company of Etisalat Nigeria, on Tuesday announced the changes to Etisalat Nigeria’s shareholding in a letter filed to the Abu Dhabi Securities Exchange in Abu Dhabi, United Arab Emirate.

UAE’s Etisalat (Etisalat Group), with a 45 per cent stake in the Nigerian arm, also said it had been ordered to transfer its shares to a loan trustee by June 23, after negotiations failed, Reuters reported.
It added it was carrying the stake at nil value.

The Emerging Markets Telecommunication Services Limited, also known as Etisalat Nigeria, has up to June 23, 2017 to complete the transfer of 100 per cent of the company’s shares in Etisalat Nigeria to the United Capital Trustees Limited, the legal representative of the consortium of 13 banks.

Dikko said the management was continuing to run the business after the shareholding changes and that there were contractual and regulator issues to be finalised.

The Nigerian industry regulators had tried to prevent lenders placing the telecom firm into receivership to avoid a wider debt crisis and agreed with banks to pursue a default deal.

But banks, under pressure to avoid loan-loss provisions, have been pushing to finalise restructuring before half-yearly audits this month.

Shell Nigeria considering investment in gas project

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’Femi Asu with agency report

Shell is considering whether to invest in a gas project in the Niger Delta, the managing director of the local unit said on Tuesday.

Nigeria has the world’s ninth largest proven gas reserves at 187 trillion cubic feet.

The Managing Director, Shell Petroleum Development Company of Nigeria Limited, Mr. Osagie Okunbor, said the oil major was “on the verge of making a final investment decision” on a project in the city of Asa that would have a capacity of 300 million cubic feet.

He declined to specify the sum of money being considered as a possible investment, according to Reuters.

Okunbor stated that Shell was putting more emphasis on gas and reducing the oil portion of its footprint in Nigeria, although he added that the company was “still a significant player in onshore (oil)”.

Meanwhile, global crude oil price, Brent crude, fell to a new seven-month low on Tuesday amid growing concerns that the output cuts led by the Organisation of Petroleum Exporting Countries are failing to ease a global supply glut.

In May, OPEC, Russia and other producers extended the six-month production cut deal reached in December by nine months.

OPEC supplies jumped in May as output recovered in Libya and Nigeria, two countries exempted from the production reduction agreement.

Brent, against which half of the world’s oil is priced, fell to $45.96 per barrel as of 8:00pm on Tuesday, while the US West Texas Intermediate dropped to $43.47 per barrel.

Reuters reported that about five million barrels were left from Nigeria’s June programme and about 19 million from the July schedule, little changed in the past few days.

Maintenance at the Bonga oilfield will run from June 18 to June 30, traders said, after it was brought forward from July.

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FG constitutes panel for $3tn infrastructure masterplan

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Ifeanyi Onuba, Abuja

The Federal Government on Tuesday inaugurated a technical working group for the development of the first operational plan for the National Integrated Infrastructure Masterplan.

The TWG, with membership drawn from the relevant agencies of government, academia and private sector, is to work on the first operational plan, which is expected to cover the 2017 to 2020 fiscal periods.

The committee was inaugurated by the Permanent Secretary, Ministry of Budget and National Planning, Mrs. Fatima Mede, at the headquarters of the ministry in Abuja.

The NIIMP, which is being coordinated by the ministry, was approved by the Federal Executive Council in September 2014 as a blueprint for accelerated infrastructure development of the country over a period of 29 years from 2014 to 2043.

The plan seeks to raise the stock of infrastructure from the current level of 35 per cent of the Gross Domestic Product to at least 70 per cent by 2043.

Based on the document, an investment of $3tn is needed in energy, transport, Information and Communications Technology, agriculture, water and mining, housing, social infrastructure, vital registration and security infrastructure.

Speaking during the inauguration panel, Mede said that as a long term plan, the NIIMP would be implemented under a five-year operational plan that would allow for periodic reviews.

This, she added, would enable the government to translate strategic goals into objectives and align priorities with the recently launched Economic Recovery and Growth Plan.

The permanent secretary said, “The first operational plan, which is to cover the period 2017-2020, will serve as the capital allocation framework across sectors for annual budgeting. It will, therefore, identify priority infrastructure projects of the Ministries, Departments and Agencies that will have catalytic effect on economic growth of the nation and elaborate on enablers for implementation.”

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Power: NBET to get second batch of N701bn lifeline

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Olalekan Adetayo, Abuja

Acting President Yemi Osinbajo on Tuesday said the Federal Government would soon release a second batch of the N701bn intervention fund to the Nigeria Bulk Electricity Trading Plc.

He said the fresh lifeline was meant to boost the power sector value chain.

Osinbajo disclosed this at the inaugural Nigeria Renewable Energy Roundtable organised by the Ministry of Science and Technology in partnership with the Nigerian Economic Summit Group and Heinrich Boll Stiftung, Nigeria, at the old Banquet Hall of the Presidential Villa, Abuja.

He said the government was committed to further restructuring the power sector.

According to the acting President, the release of the fresh fund will free up the value chain, which has created several problems.

“We hope that this injection (of the fund) will help. We are also looking at several other reforms in the sector, hoping that the market can become self-sustaining, independent and runs on its own and frees up all of the private sector energy that is waiting to come into the market,” he said.

Osinbajo stated that the government would work with the private sector and create the framework for business cases by developing standardised technology packages.

He said, “We also need to explore the opportunities for revolving funds for solar PV/wind projects as well as opportunities for other investment remuneration mechanisms.

“It is also very important that we break the deadlock of the electricity market structures by exploring the options to transform the competition for markets’ approach, continue to embark on a broader restructuring of the electricity sector and strive to achieve a more systematic development of the power market design, especially for renewable energy.

“To do that, we need a framework that brings and keeps all stakeholders together towards ensuring that renewable energy becomes an engine of growth for Nigeria’s economy.”

Osinbajo added that the administration’s plan was to expand the Solar Home System programme to one million households, creating a few more million jobs.

He added that the President Muhammadu Buhari’s administration was interested in lighting up more rural communities like Wuna, an agrarian village in the Gwagalada Local Government Council of the Federal Capital Territory, which until two years ago was not on the national grid and had no other source of power.

He said in collaboration with the Niger Delta Power Holding Company, the government was able to provide a sustainable renewable solar energy solution through end-to-end solution, including a pay-as-you-go system.

Osinbajo added, “I was in Wuna to see it for myself. For the first time in its existence, the village now has solar-powered running water. The school has power and the school hall is now used as a community hall in the evenings. Each home has four points of light.

“Children can now stay up and do some studying at night. Many of Wuna’s women can now process their millet and yams at night. New jobs have been created, solar installers, maintenance, payment systems and so on.

“One guy has lost his business in Wuna. The phone charger. Every household can now charge their phones. But he now charges phones of residents of other villages. We are doing 20,000 more homes in this first phase of this exercise and a pay-as-you-go system to 20,000 households to provide access to lighting and electric power for small devices.”

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High interest rates: Senate panel plans talks with FG

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Leke Baiyewu, Abuja

The Senate Committee on Banking, Insurance and Other Financial Institutions may meet with the Federal Government in the ongoing efforts by the legislature to seek a reduction of the current high interest rates being charged by financial institutions in the country.

The panel, after meeting with stakeholders in the financial sector of the economy last week, had hinted that it might hold talks with the fiscal authorities when the National Assembly resumes from break.

The Senate had summoned the Central Bank of Nigeria, Deposit Money Banks, Nigeria Deposit Insurance Corporation, Manufacturers Association of Nigeria, Chartered Institute of Bankers of Nigeria, and the Nigerian Association of Small and Medium Enterprises to a roundtable held on June 13, 2017.

Others in attendance at the forum were the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture; National Economic Summit Group and several other bodies.

At the meeting, the lawmakers made it clear that businesses would not survive if the interest rates remained high.

Speaking to our correspondent on the telephone from Saudi Arabia where he is currently on pilgrimage, the Chairman of the committee, Senator Rafiu Ibrahim, said the engagements would continue when the lawmakers resumed plenary.

He also stated that most of those at the meeting agreed that the interest rates were too high for businesses, but different recommendations were made by stakeholders on how to bring them down.

He stressed that that was the reason why the panel was considering a meeting with fiscal authorities for further talks.

Ibrahim said, “We are still working on it. We have listened to all of them (banks and others) and we will come up with something in our discussions. We may also meet with the fiscal side. I can’t give all the details now until we finish with the process. When we resume, we will take the matter up again.

“At the meeting, everybody agreed that the high interest rate regime is not good for businesses. You can take that one as the take-home. But everybody is coming from different angles on what needs to be done, which we can give the details now.”

The Senate had on June 6, 2017, said Nigeria’s banking sector was being run by a cartel, a situation which was frustrating the monetary and fiscal policies of the Federal Government, adding that the group of bank owners had become strong that it was manipulating the economy.

The upper chamber of the National Assembly also condemned the high interest rates being charged by the banks on loans to the Small and Medium-scale Enterprises. The legislature stated that the economy could not survive when it was difficult to run businesses.

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Nigeria loses N140bn weekly to Apapa gridlock – Dangote

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Akinpelu Dada

The President, Dangote Group, Aliko Dangote, has lauded the decision of the Federal Government to reconstruct the failed Apapa Wharf Road as its grim state serves as both an embarrassment to the country and a huge loss of close to N140bn on a weekly basis.

Dangote, who spoke to journalists on Tuesday, said, “The economy loses more than N20bn daily. It (bad state of the roads) affects businesses across the country. All our operations in the hinterland in Ilorin, in Kano are operating at 40 per cent maximum capacity.”

Lamenting the state of roads in the country, Dangote said, “Today, there is no linkage road going from the South-West to the North. You have to go all the way through Ajaokuta, Obajana, Lokoja and you have to go by that uncompleted road that Obasanjo started 13 years ago.

Commenting on his resolve to personally get involved in the Apapa Wharf Road reconstruction, he said, “Because it is very embarrassing! We can’t just sit and have a road like that, which it is the heart of trade in the country. More than 60 per cent of our country’s imports and exports come through the Apapa Port and we leave the road unattended to.

“That is why we started on our own. Flour Mills said they will join us, but now the government has changed the design because they want all the cables and pipes underground and to have a more robust solution.”

To help in bringing the cost down, he explained that he forced his company to execute the project at a zero profit.

“Both Dangote and Flour Mills are pumping in over N2.5bn for the two-kilometre double lane on each side, making a total of four kilometres,” Dangote explained, adding that the biggest job “is drainage because that is what is destroying the road. We will make sure this problem is sorted out once and for all.”

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$1.2bn loan: GTBank, Access, others get 45% stake in Etisalat

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Akinpelu Dada, Oyetunji Abioye and Ozioma Ubabukoh

The ownership structure of Etisalat Nigeria is now set to change after talks with lenders to restructure its $1.2bn (N541bn) loan failed.

This came months after discussions with a consortium of 13 banks, including Guaranty Trust Bank Plc and Access Bank Plc, to restructure the loan after the telecoms firm missed repayment deadlines failed to produce an agreement.

In a statement on Tuesday, Etisalat Nigeria confirmed the development and said it had commenced the restructuring with changes to its shareholding.

The statement, signed by the Vice-President, Regulatory and Corporate Affairs, Etisalat Nigeria, Ibrahim Dikko, did not give details of the new shareholding structure and the likely trading name.

It read in part, “Etisalat Nigeria can confirm discussions are ongoing regarding other issues such as the trading name during this transition phase. Operations and services to our subscribers remain normal and will in no way be affected as we continue to deliver quality services to our subscribers.

“We will continue to tap into the rich, creative and innovative resources within our workforce to build a stronger business upon the stable foundation we have laid in our nine years of operation.”

The Etisalat Group confirmed the changes to Etisalat Nigeria’s shareholding on Tuesday in a letter to the Abu Dhabi Securities Exchange in Abu Dhabi, United Arab Emirates.

The Etisalat Group, with a 45 per cent stake in the Nigerian arm, said it had been ordered to transfer its shares to a loan trustee by June 23, after negotiations failed, Reuters reported.

It added that it was carrying the stake at nil value.

The group has up to Friday to complete the transfer of 100 per cent of the company’s shares in Etisalat Nigeria to the United Capital Trustees Limited, the legal representative of the consortium of 13 banks.

Dikko said the management was continuing to run the business after the shareholding changes and that there were contractual and regulator issues to be finalised.

“Etisalat Nigeria wishes to express its profound gratitude to the government, the Nigerian Communications Commission and the Central Bank of Nigeria for their patriotic zeal and tireless efforts at ensuring collaborative and productive engagement,” he added.

Meanwhile, the NCC has assured the over 21 million Etisalat subscribers that it will do all within its regulatory power to ensure that they continue to enjoy the services provided by the operator.

The commission said in a statement that it had taken proactive steps to cushion the impact of the new shareholding arrangement in the firm, adding, “This is without prejudice to the ongoing effort between Etisalat and the banks toward a negotiated settlement.”

The statement, which was signed by the Director, Public Affairs, NCC, Tony Ojobo, read in part, “In view of the recent development, the NCC wishes to reassure all stakeholders in the telecommunications sector, in particular the subscribers on the Etisalat network, that the commission will ensure that the integrity of the Etisalat network is not compromised.

“Accordingly, the commission has drawn the attention of the banks to the provisions of the Nigerian Communications Act, 2003, Section 38:

“Sub section 1 – The grant of a licence shall be personal to the licensee and the licence shall not be operated by, assigned, sub-licensed or transferred to another party unless the prior written approval of the commission has been granted;

“Sub section 2 – A licensee shall at all times comply by the terms and condition of the licence and the provision of this Act and its subsidiary legislation.”

The Nigerian industry regulators had tried to prevent the lenders form placing the telecoms firm into receivership to avoid a wider debt crisis and agreed with the banks to pursue a default deal.

But the banks, under pressure to avoid loan-loss provisions, have been pushing to finalise restructuring before half-yearly audits this month.

The President, Association of Telecommunications Companies of Nigeria, Olushola Teniola, asked the NCC to focus on consumers, saying, “Their ultimate choice should be paramount in the minds of all stakeholders during this difficult period for the shareholders of Etisalat.”

Teniola said that the customers and quality of service were key to the future shape and size of Etisalat.

He said, “Investors, both domestic and international, will be watching very closely how our regulator is able to manage any fall out and the precedence this sets for the industry.

“The ATCON has called for and reiterates a call for a competition czar to be created to deal with such issues raised over the last three months concerning takeovers, mergers and acquisitions in a sector that is critical to the future of our economy.”

The Chairman, Association of Licensed Telecommunications Operators of Nigeria, Gbenga Adebayo, said the body had yet to receive formal notification of the development from its member, Etisalat.

“However, we hope that the parties can resolve the matter amicably. Despite the current situation, there is still room for negotiation. We believe strongly that the matter will not affect Etisalat’s subscribers in the country,” he stated.

The loan that has proved so troubling for Etisalat Nigeria is a seven-year facility agreed with 13 local banks in 2013 to refinance a $650m loan and fund expansion of its network.

The Abu Dhabi state-investment fund Mubadala, the second-biggest shareholder in Etisalat Nigeria, declined to comment.

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Oil marketers urge FG to pay outstanding fuel subsidy claims

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The Major Oil Marketers Association of Nigeria (MOMAN) has appealed to the Federal Government to pay the outstanding fuel subsidy claims to its members to pay back their bank loans.

The Executive Secretary of the association, Mr Obafemi Olawore, made the plea in an interview on Wednesday in Lagos.

Oil marketers had on June 18 appealed to the Federal Government to pay their outstanding debts of two  billion dollars (N720 billion) owed on importation of petrol products and the accrued interests on bank loans.

Olawore said that the immediate payment of the accumulated subsidy claims would salvage the banks from total collapse over the huge debts owed them by marketers.

According to him, the delay in repayment of the loan debts owed the banks by marketers had led to retrenchment in the banking and the oil and gas sectors.

“We (marketers) are afraid that if the money is not paid on time, this may attract the Asset Management Corporation of Nigeria (AMCON) to take over our businesses.

“The debts had imparted grossly on marketers, while only very few marketers are presently importing insignificant quantity of petroleum products into the country,’’ he said.

Olawore said that the plea was to avert the scarcity of petroleum products in the country.

The executive secretary said that inability of the marketers to import fuel had impacted negatively on loading activities at the Apapa and Dockyard private depots.

Olawore said that the NNPC had become the sole importer of petroleum products, while marketers were queuing to get the products on credit.

He said that the Federal Government paid over N300 million daily as fuel subsidy.

Olawore said that anytime there was problem in the banking sector, it was always traced to the oil sector, because of  unpaid loans collected by oil marketers.

“Once we (marketers) are unable to pay, the banks will have problems,’’ he said.

“This can have negative effects on the financial sector’s stability, which is not good for the economy.

“A situation where the banks are being owed N800 billion constitutes major threat to the continuous existence of the sector,’’ he said.

(NAN)

Bayer tackles food insecurity, selects young Nigerians, others

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’Femi Asu

A global enterprise with core competencies in the life science fields of health care and agriculture, Bayer, in partnership with Groene Kring and Fédération des Jeunes Agriculteurs, has selected 100 bright young minds, including two Nigerians, to participate in its third Youth Ag-Summit.

The summit, which is part of Bayer’s Agricultural Education Programme, aims to address the United Nation’s Sustainable Development Goal of ending hunger, achieving food security and promoting sustainable agriculture.

With ‘Feeding a Hungry Planet’ as its theme, the summit will take place in Brussels, Belgium from October 9 to 13, 2017, according to a statement on Monday.

A medical student of the University of Port Harcourt, Boris Nwachukwu, one of the two selected delegates from Nigeria, was said to have written an essay that focused on feeding a hungry planet by utilising a human right approach through social justice perspective.

“I was in the clinic clerking a client in our facility when I got the selection mail. My spirit went wild but I had to hold my lips from screaming. I dream of a day where no child either from the slums of Ajegunle, Lagos or Favela of Maracana, Brazil will go to bed without having a satisfying nutritive meal,” she was quoted as saying.

The other Nigerian, Matthew Oguche, said, “It gives me great joy to be one of the delegates representing Nigeria and West Africa for the first time at the Youth-Ag summit in Brussels. I look forward to this unique opportunity to gain new perspective and collaborate with other young leaders from around the world as we deliver action on the urgent task of a sustainable and hunger-free world.”

The delegates, aged between 18 and 25, according to the organisation, were selected from 49 countries across the world, including Kenya and United Kingdom, among others.

According to Bayer, the delegates will share their diverse experiences and work together to generate innovative, sustainable and actionable solutions to global food security challenges.

It said they would undertake group projects and participate in industry tours, as well as learning from expert guest speakers, adding that their mission would be to come up with concrete new ideas that could drive agricultural progress across the globe and be put into practice back home.

“The Youth Ag-Summit aims to give young leaders the opportunity to foster their ideas, share best practices and explore the role of modern agriculture in feeding a hungry planet,” a member of the Board of Management of Bayer AG and Head of the Crop Science Division, Liam Condon, said.

According to the statement, to be considered for participation, prospective delegates were required to submit an essay of 1,500 words on the topic of food insecurity. A total of 1,187 essays from 95 different countries were submitted; all of which were reviewed by a panel of industry experts.

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Indonesian firm to build refinery in Nigeria

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Okechukwu Nnodim, Abuja

An Indonesian firm, PT Intim Perkasa Nigeria Limited, a subsidiary of PT Intim Perkasa, has indicated interest to build a refinery in Nigeria, the Nigerian National Petroleum Corporation has said.

The NNPC said PT Intim’s interest in the country was in line with the Federal Government’s plan to attract investments in modular refineries, as part of efforts to boost the local refining capacity.

The corporation stated that the Head of Investor Relations, PTPP (Persero) Tbk, partners to PT Intim Perkasa Nigeria Limited, Mr. Adi Hartadi, disclosed this in Abuja during a meeting with the Group Managing Director of the NNPC, Dr. Maikanti Baru, adding that the proposed refinery would be located in Akwa Ibom State.

The Group General Manager, Group Public Affairs Division, NNPC, Mr. Ndu Ughamadu, in a statement issued in Abuja on Wednesday, noted that the modular refinery would have the capacity to refine 10,000 barrels of crude oil per day.

Hartadi, according to the statement, said the company had more than 50 years’ experience in construction and engineering, adding that it was desirous of diversifying into downstream operations in Nigeria.

Baru, who was represented by the Chief Operating Officer, Refineries and Petrochemicals, Mr. Anigbor Kragha, said the NNPC placed high premium on investments in the refining sector.

He said the corporation had a Greenfield Refinery Department that specialised in new refinery projects and was also providing professional support to potential investors in modular refineries in line with the Federal Government’s policy on modular refineries.

Baru explained that the country’s three refineries, with a combined capacity of 445,000bpd, could not function optimally over the years due to lack of investment, adding that the NNPC would give necessary support to the Indonesian company in the downstream sector.

He was quoted as saying, “On our end, we have embarked on an ambitious plan to fast-track programmes that will restore our capacity utilisation from 30 per cent to a minimum of 90 per cent in the next 24 months.

“To do that, we are working on securing financing from third parties; not just funding, but also technical expertise to help us increase our performance to world class levels that they should be.”

Baru stated that given Nigeria’s expected population, more than 40 million litres of petrol would be required for local consumption, adding that the combined capacity of the nation’s three refineries would only be able to satisfy a little above 50 per cent of the projected local demand.

The GMD called on investors to be mindful of the clean fuel policy adopted by African countries and ensure that they produce fuels that meet specifications with regards to sulphur content.

In his address, the Third Secretary for Economic Affairs, Indonesian Embassy in Nigeria and the leader of his country’s delegation, Dr. Dwiyatna Widinugraha, said the visit was a follow-up to the earlier one by the Indonesian envoy to the NNPC, the bilateral meeting between the trade ministers of both countries as well as the visit of Indonesian Prime Minister to Nigeria.

The Indonesian Ambassador to Nigeria, Mr. Harry Purwanto, had recently expressed his country’s interest in purchasing more crude oil from Nigeria during a courtesy visit to the NNPC.

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Agricultural finance fund closes at $65.9m, says FG

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Okechukwu Nnodim, Abuja

The Federal Government on Wednesday in Abuja announced that the Fund for Agricultural Finance in Nigeria, which was initiated by the Federal Ministry of Agriculture and Rural Development, was successfully closed at $65.9m.

It said the fund would provide financial, capacity building and technical assistance to selected Small and Medium Enterprises in the agribusiness sector, adding that it was managed by Sahel Capital, a private equity firm.

In a statement issued by the Special Assistant on Media and Communications to the Minister of Agriculture and Rural Development, Dr. Olukayode Oyeleye, the government noted that a total of $31m was jointly committed to the FAFIN by the African Development Bank, the CDC Group and the Dutch Good Growth Fund.

It added that as part of the round, the German Development Bank also offered to increase its commitments to FAFIN by an additional $10m, subject to final approvals, which would increase the fund size to $76m by December 2017.

FAFIN, co-sponsored by Nigeria’s Ministry of Agriculture and Rural Development, Ministry of Finance, German Development Bank and the Nigeria Sovereign Investment Authority, was inaugurated in 2014 with $32.8m in commitments.

The Minister of Agriculture and Rural Development, Chief Audu Ogbeh, expressed the full commitment of his ministry to the development of the agricultural sector.

Ogbeh was quoted as saying, “Although key developments in the sector will continually be private sector driven, the Federal Government will provide the necessary incentives to grow the sector by facilitating financing and support for SMEs through investment vehicles such as FAFIN.”

The statement noted that Sahel Capital planned to invest the funds over the next two years, backing sustainable agribusinesses that would create jobs, improve productivity and strengthen priority value chains.

The Minister of Finance, Mrs. Kemi Adeosun, was quoted as saying, “The Federal Government is acting as a catalyst for private sector capital to drive growth in the agribusiness sector. With this close, we would have succeeded in partnering the various investors to secure $76m for agribusinesses in Nigeria.”

The Managing Partner, Sahel Capital, Mr. Mezuo Nwuneli, was also quoted as saying, “The successful final close of FAFIN is a testament to the confidence our investors have in the scaling up and sustainability of the fund that was conceived in 2013 by the former Minister of Agriculture, Dr. Akinwunmi Adesina, and the German Development Bank.

“We also look forward to partnering with our incoming investors to drive catalytic growth in the sector through our partnerships with strong agribusinesses.”

The statement noted that Sahel Capital had assessed over 100 companies since FAFIN’s launch in 2014, out of which it had elected to invest in four high growth firms in the dairy, edible oils, poultry and cassava value chains in Nigeria.

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W’Bank approves $961m for Nigeria’s economic recovery plan

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Everest Amaefule and Bayo Akinloye

The World Bank on Tuesday approved $961m loan to support the implementation of Nigeria’s Economic Recovery and Growth Plan 2017-2020.

A statement made available to our correspondents on Wednesday by the Senior Communications Officer at the World Bank office in Nigeria, Olufunke Olufon, said the fund would go into two programme-for-results operations totalling $961m.

One of the programmes is the Better Education Service Delivery for All, which will receive $611m. The programme aims to bring out-of-school children into the classroom, improve literacy, and strengthen accountability for results in basic education.

In 2013, 13.2 million school-age children were out of school, the overwhelming majority of who were in the North where out-of-school children rates were also higher among girls, in rural areas and form poor families, the bank said.

The second benefitting programme is the Kaduna State Economic Transformation Programme for Results, which will receive $350m credit. It focuses on enhancing private sector investment in Kaduna State through improved business environment, effective budget planning and execution, and fiscal accountability.

According to the bank, Kaduna State has taken a number of reform actions to improve its economic performance and social outcomes, and sustain the efforts.

The World Bank Country Director for Nigeria, Rachid Benmessaoud, was quoted to have said, “Investing in human capital and creating economic opportunities for all are key areas of focus to achieve more inclusive and private-sector led growth.

“These two operations support the government’s economic and growth recovery plan and will help Nigeria achieve sustainable and measurable results.”

The bank added that both operations implemented results-based financing, whereby disbursement of funds was linked to the achievement of tangible and verifiable results.

As a first phase for addressing out-of-school children in Nigeria, the BESDA aims to help enhance the effectiveness and efficiency of the federal Universal Basic Education Programme through incentivising results at the state level and thereby reduce the number of out-of-school children by roughly one third by 2022, the bank said.

The Kaduna operation, on the other hand, will support the state’s ambitious reform efforts to increase both private investments for job creation and revenue generation, the bank said, adding that it would also strengthen budget performance and fiscal accountability through citizen engagement.

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Wike opposes NLNG Act amendment

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Rivers State Governor, Nyesom Wike, has stated that his administration will always defend the economy of the state and the South-South geopolitical zone and join forces with other governors from the zone to stop the amendment of the Nigeria Liquefied Natural Gas Act.

The governor also stated that agitation in the South-South had remained rife because the authorities had ignored the zone, even though it produces the wealth that sustains the nation, according to a statement by his Special Assistant on Electronic Media, Simeon Nwakaudu.

Speaking on Tuesday in Port Harcourt during a courtesy visit by the management of the NLNG Limited, Wike said that the state government would mobilise the state’s representatives at the National Assembly to ensure that the firm remained in a good position to continue with its operations.

He urged the Federal Government not to allow the amendment of the NLNG Act to sail through at the National Assembly because of the negative multiplier effect it would have on the economy.

“Anything that will affect the economy of Rivers State, we will always fight it. It is about Rivers State,” the governor stated.

He commended the management of the NLNG for offering to partner the Federal Government to construct the Bodo-Bonny Bridge.

“I thank you for the Bodo-Bonny Bridge. I hope it is not political. I have always advocated for this important bridge. I thank the NLNG for telling the Federal Government that it is willing to put down money for the construction of the bridge,” the governor stated.

He pointed out that the people of the South-South always agitate for better investment of their resources in their respective communities because of the neglect they continued to suffer.

“A big company like the NLNG Limited generates funds for the country, yet the Bodo-Bonny Bridge that will create access to Bonny has not been constructed,” Wike said.

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NNPC sustains losses, records N39.3bn deficit in four months

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Okechukwu Nnodim, Abuja

The monthly financial losses of the Nigerian National Petroleum Corporation since the beginning of this year continued in the month of April.

Figures from the firm’s latest oil and gas report showed that the NNPC Group lost a total of N39.3bn between January and April 2017.

The corporation’s deficit, which stood at N33.99bn in March 2017, increased by N5.3bn to close at N39.3bn in April.

Its group financial report by entity, however, showed that the NNPC reduced its losses from the N5.62bn recorded in March to N5.3bn in April.

The Nigerian Pipelines Marketing Company, a subsidiary of the NNPC, and the oil firm’s corporate headquarters posted the biggest losses since the beginning of the year, losing N50.99bn and N47.16bn, respectively.

Some other subsidiaries of the NNPC posted profits during the review period, a development that helped in reducing the group’s consolidated year-to-date loss.

An analysis of the report showed that the N15.2bn profit made by the Port Harcourt Refining Company lifted the refineries’ subsidiary out of a loss position.

The Kaduna Refining and Petrochemical Company and the Warri Refining and Petrochemical Company posted losses of N3.6bn and N3.7bn, respectively during the period under review.

Further analysis showed that the combined capacity utilisation of the three refineries was still below 30 per cent, although it moved up from 13.46 per cent in March to 24.59 per cent in April.

On the individual capacity utilisation of the refineries in April, the report stated that the WRPC, PHRC and KRPC recorded 9.92, 29.81 and 30.3 per cent, respectively.

Speaking on how to address the persistent losses, the Group Managing Director, NNPC, Dr. Maikanti Baru, earlier in the year announced the introduction and implementation of the 12 business focus area, which he noted would institutionalise efficiency, profitability and growth.

According to him, some of the components of the 12 BUFA include ensuring security of the NNPC assets, developing new business models that would grant autonomy to the various units of the corporation and settling Joint Venture cash calls.

Baru directed the chief operating officers of the corporation’s various departments and subsidiaries to immediately commence the implementation of the policy framework and asked them revert to the management, should there be any grey area that required further intervention.

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List of loan defaulters: ‘Chief Dele Fajemirokun is no longer a director in Food Concept Plc’

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A former Director of Food Concept Plc, Chief Dele Fajemirokun, has said he is no longer a director in the company.

In a statement made available to The PUNCH, Chief Fajemirokun explained that he had resigned from being a director in Food Concept some years back.

He said the clarification became necessary after a news report in The Punch alleged that owners of Chicken Republic and some companies owed the United Bank of Africa Plc the sum of N9.3bn.

The statement read, “In the August 6, 2015 edition of The Punch captioned “Ex-minister’s firm, Chicken Republic owners, others owe UBA N9.3bn”, the name and picture of Chief Dele Fajemirokun was pasted together with the said caption as a director in one of the debtor companies by name Food Concept Plc.

“The said publication which was at the instance of United Bank for Africa Plc was made as a result of the fact that as at the time of going to press, the information contained in the Account Opening Mandate file of the aforesaid Food Concept Plc with UBA, had the name of Chief Dele Fajemirokun as one of its directors.

“There, was however, no information available to UBA, notifoing it that the said Chief Dele Fajemirokun had since resigned as a director of the said Food Concept Plc at the time of going to press.”

The statement further read, “However, upon being reliably informed by Food Concept Plc that Chief Dele Fajemirokun was no longer a director of Food Concept Plc as at the time of the said publication, The Punch newspaper and UBA would want to state that following the information supplied to UBA by Food Concept Plc after the said publication, Chief Dele Fajemirokun, was no longer a director of Food Concepts Plc – as at the time of the said publication neither was he associated with the said debt of Food Concept Plc to United Bank for Africa Plc.”

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NB to increase local raw materials sourcing to 60% by 2020

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The Nigerian Breweries (NB) Plc has said that it was making plans to increase sourcing of raw materials like sorghum, Food Grade Starch and others locally from 57 to 60 per cent by 2020.

Mr Patrick Olowookere, Corporate Communications and Brand Public Relations Manager, made the disclosure to newsmen during a facility tour in Ado Awaiye in Iseyin area of Oyo State on Wednesday.

Olowookere said the company was always looking at ways to partner with local farmers and processors to develop agricultural value chains that would strengthen the economy and save foreign exchange.

According to him, “through these partnerships, many farmers have been impacted, especially through its out-grower schemes in sorghum production.

He said: “Over 250,000 sorghum farmers have benefited in the northern agronomical zones as at 2013, producing over the 100,000 tons the company needs annually.

“That is enough to meet our production for our growing customers. We want to try as much as we can to further reduced the volume of imported of raw materials.

“By 2020, Nigerian Breweries would have finalised plans to increase its sourcing of raw materials from 57 to 60 per cent, the margin is small but apt.

Psaltry International Company (Ltd), a Food Grade Starch producing firm and others in sorghum is what gives us the assurance of quality products to suit the needs of our consumers,’’ he said.

“The firm uses CSRO 1 and 2 species of sorghum because it had a higher yield of two tons per hectare and had certifications from the Federal Ministry of Agriculture and a Rural Development.

Olowookere also said that Psaltry Company was the only partner producing Food Grade Starch for Nigerian Breweries.

Meanwhile, the Managing Director of the processing plant, Mrs Yemisi Iranloye, said that the distance of transporting harvested cassava to cities like Lagos and Akure prompted the location of the plant.

Iranloye said that the company now satisfied farmers who were treated as agents in the business through trainings, provision of hybrid cassava stems, fertilisers, pesticides and others.

“What really steered my coming to this community was the fact that having had experiences in the system; I understood the huddles farmers had to go through to transport their produce to urban cities.

“Most of the time, the cassava would have gone bad and farmers would be at a loss because the companies will not pay them, now we have been able to solve that problem.

“Currently, NB is one of our major client off-taking 60 per cent of our Food Grade Starch used as binding agents in producing most beverages, foods, cosmetics and pharmaceuticals.

“Farmers in the community have been empowered over the years to increase production to 500 hectares through the Credit Agricultural Scheme of the Central Bank of Nigeria (CBN) driven by us, and in the first year, remitted 95 per cent.

“Through these, we are always in production even when the country had challenges in availability of cassava recently, we had supplies to service our customers like NB,’’ she said.

The plant has an installed capacity of 50 tons of processed starch daily and it is currently producing below capacity of between 20 to 30 tons daily.

The company also recorded that it saved 4 million dollars as import substitution in 2015.

(NAN)

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