The Nation Newspaper

Category: Business

  • Appeal Court orders NIMASA to pay N6.8b judgment debt

    Appeal Court orders NIMASA to pay N6.8b judgment debt

    The Appeal Court, has ordered the Nigerian Maritime Administration and Safety Agency, (NIMASA) to pay a judgment debt of N6.8 billion into an interest yielding account in the name of its Registrar, pending the determination of its appeal against the judgment.

    The court gave the order yesterday in Lagos while ruling on NIMASA’s application challenging an earlier order, by Justice Okon Abang of the Federal High Court, directing the payment of the judgment debt into an interest yielding account pending appeal.

    The three-man justices’ panel of the appellate court led by Justice Adamu Jauro, held unanimously that the application failed and ordered NIMASA to pay the judgment debt owed to a shipping firm, to Hensmor Nigeria Limited, into an account with First Bank. The court fixed February 11 next year for hearing of the substantive appeal.

    Before the ruling, lawyer to NIMASA,Adegboyega Awomolo (SAN), told the court that his client refused the payment of the judgment debt as ordered by the trial court due to its pending appeal and in which one of its bankers, First City Monument Bank Plc (FCMB) was joined.

    The debt arose from a judgment given late last year by Justice Abang in a suit by Hensmor, who claimed that NIMASA arrested its ship, MT Aigbomien, for five years from March 14, 2006, during which its content, a consignment of kerosene was stolen and the ship went bad.

    In the suit,Hensmor claimed that while the ship was under NIMASA”s arrest, its 63 metric tons of dual purpose kerosene (DPK) content was stolen, it lost a daily income estimated at $7,000 and the vessel valued at $25million rendered unserviceable.

    NIMASA appealed the judgment and filed an application for stay of execution pending appeal, which was granted by the trial court on condition that NIMASA pays the judgment debt into an account opened in the name of the lower court’s Deputy Registrar.

    Realising that NIMASA was unwilling to obey the judgment, Hensmor initiated a garnishee proceedings, resulting in an order nisi made by the court on May 15 this year.

  • Fed Govt spends N600b on wheat import

    Fed Govt spends N600b on wheat import

    The Federal Institute of Industrial Research,Oshodi (FIIRO) has explained that part of the reasons the Federal Government stepped up the use of cassava bread in the country was to cut the N600billion spent on wheat imports which is eating into the foreign reserves of the country.

    FIIRO’s Director, Jide Olumeko, at a two-day training for Southwest Master Bakers on 20 per cent increase in high quality cassava flour in bread production, called on bakers to embrace the cassava bread technology and increase the use of cassava flour in production to improve prices.

    Olumeko, represented by FIIRO’s Desk Officer for Cassava Value Chain, Titus Efuntoye, said the use of cassava flour could reduce bread prices by 65 per cent and boost foreign exchange.

    He said increased use of cassava flour will help bakers as it would lead to lower cost of production and increase demand.

    Olumeko said: ”Government is trying to ensure food security in the country hence the initiative. Importation of wheat is weighing heavily on government’s resources as it spends over N600billion annually to import wheat.

    “Efforts in research have discovered that we are able to substitute wheat flour with cassava flour which has a higher nutritional value than the former due to its lower glycerin index responsible for diabetes.”

  • CBN to sell N116.2b TBs, DMO, N50b bonds

    • Naira drops to two-month low

    The Central Bank of Nigeria(CBN), which sells bills to help manage currency supply within the market,is offering N116.2 billion ($733 million) of treasury bills on Thursday, November, 22. Also, the Debt Management Office is scheduled to sell N50 billion of 10-year and seven-year bonds next week, according to Bloomberg news.

    Meanwhile, the naira declined against the dollar on the interbank market, yesterday, reaching a two-month low and capping the worst week in 12, as foreign inflows and oil company foreign-exchange sales were said to be limited.

    It retreated 0.3 percent to N158.52 a dollar, the lowest closing level since September 5. It retreated 0.7 percent this week, according to data compiled by Bloomberg.

    “It’s a temporary shortfall in supply this week,” Samir Gadio, a London-based emerging markets strategist at Standard Bank Group Limited., said in an e-mailed reply to questions yesterday. “I don’t think there were significant foreign-exchange sales from oil companies and foreign inflows have been less robust.”

    Oil-producing companies, which sell dollars to meet domestic expenses, are the second-biggest source of foreign currency after the Central Bank, which sells dollars on Mondays and Wednesdays to keep the naira within a three percent band around N155 per dollar.

  • ‘NCP never recommended cancellation of Manitoba’s contract ’

    Chairman of the Technical Committee of the National Council on Privatisation (NCP), Mr Atedo Peterside, has denied stories making the rounds, which falsely suggested that his Technical Committee recommended the cancellation of Manitoba Hydro International’s Management Contract to manage the Transmission Company of Nigeria (TCN).

    He said: “It is sad that deliberate falsehoods are being peddled and planted in selected media houses in order to discredit his Technical Committee members.He advised honest reporters and editors to please seek to verify sensitive stories of this nature so they do not end up being used by opponents of reform and progress.”

    PresidentGoodluck Jonathan had also on Sunday while fielding questions from a panel of editors during a presidential media chat monitored on Nigeria Television Authority (NTA), said the Manitoba’s N3.6billion three-year contract had not been revoked.

    He said he had given all relevant agencies up till today (Tuesday) to tidy the transaction.

  • Five Star boss urges NPA on projects

    FIVE Star logistics has implored the management of Nigerian Ports Authority (NPA) to hasten the completion and repairs of quay wall around the port for seamless movement of goods and trucks.

    The Executive Chairman of Comet Group of Companies, owners of the company, Musa Danjuma, made the call in a speech he delivered at the launching of the company’s latest asset, a 124 metric tonnes mobile liebbher crane.

    The event, which held at the Ro-Ro Terminal in Lagos, attracted notable personalities in the maritime sector. The crane, can lift 124 tonnes weight across a radius of 48 meters.

    Danjuma said the company made investment in pursuit of the Federal Government’s desire to make Nigeria the cargo hub for West and Central Africa.

    Managing Director of Comet Group of Companies, Mr Pier Luigi Carrodano, observed that the new crane “would be more than sufficient to meet client’s present and immediate future needs,” adding that the crane can pick containers from ship’s deck up to 16 rows, the size of Post-Panamax Container Liner. Therefore, it promises to boost container handling and bulk operations at the ever busy terminal.

  • Firm seeks roadmap for local content

    The Managing Director, Lagos Deep Offshore Logistics (LADOL), operators of the Lagos Free Zone behind Tin Can Port, Dr Amy Jadesimi, has challenged the government to chart a definite roadmap for Local Content Law administration in the maritime industry.

    She said this became imperative following the delay in the disbursement of the Cabotage Vessel Finance Fund (CVFF) by the Nigerian Maritime Administration and Safety Agency (NIMASA).

    The LADOL boss, who spoke with The Nation at the Logistics West Africa Conference and exhibition in Lagos, said the call became necessary in view of some challenges faced by local operators.

    She bemoaned the foreign domination of the shipping business in the country and urged the Federal Government to make the fund available to Nigerians.

    The LADOL boss also called on some private sector operators, who still operate as appendages to foreign interests, to have a change of focus. Mrs Jadesimi noted: “We need to see more private sector indigenous operators in the industry being on their own. We need to stop being mere agents. This agency model of classifying ourselves with one or two percentages of large contracts is not sustainable and will not help us.”

    Mrs Jadesimi said with the passage of the local content law, many indigenous operators were coming into the business with a measure of confidence, noting that it is the right way to go.

    She said the impact of free zones to the maritime and oil and gas industry, and how they are facilitating logistical efficiencies, specifically called for a sustained synergy between the Ministry, relevant government agencies and notable private sector operators in taking another look at some of the areas of the law, which constitute significant challenges that still impede the success of the law.

    According to her, one of such areas is the issue of tender process, which, she says, actually works against Nigerian players, in favour of foreign interests.

    “So, they now have to work together with qualified private sector and look at how we can encourage such investors who are seen to be doing something realistic so that they can continue to invest with a measure of confidence,” she added.

    Harping on challenges facing operators in the industry, Jadesimi said from LADOL’s experience, financing was still a huge problem because of bank’s lending rate compared to what obtains elsewhere.

    She, however, berated some of the top players who she accused of festering what ‘zero sum game: I win you lose, and I lose, you lose’ syndrome, which she described as “very damaging and anti-development.”

  • Stakeholders seek coordinated regulation

    Stakeholders have called for coordination in the regulation of practices in the oil and gas industry so as to engender the needed growth.

    They made the call at the PSRG-Richardson Health, Safety, Security and Environment (HSSE) forum held in Lagos.

    The forum noted that the establishment of various regulatory agencies who are working at cross-purposes was not in the best interest of the industry.

    It therefore suggested that the Department of Petroleum Resources (DPR) be adequately equipped and empowered to effectively perform its regulatory functions in the oil and gas sector.

    The forum also recommended that a division of the Nigeria Police Force, which is to be dedicated completely to the oil and gas industry should be created and well equipped to enhance security of operations, installations and assets.

    In his presentation entitled: “HSSE: Confronting the Challenges in the Nigerian Oil and Gas Environment,” Emiy Ikuru, Managing Director of Foisi Global Investment Ltd urged the development of a measurable and sustainable HSSE management system in the oil and gas industry. He called for the implementation of a security policy that meets the challenges of increasing crime and effective response strategies to emergencies that threaten the safety of staff, assets and the general public.

    Also speaking on the “Challenges of protecting oil and gas industry assets: An operator’s perspective,” Capt. Albert Oti (rtd) said an effective approach to pipeline protection would involve local communities in guarding the pipelines. It will also require the deployment of technology such as sensors, which are globally used to monitor pipelines.

    On the types of security breaches and threats prevalent in the Nigerian oil and gas industry, he listed them to include facility vandalisation, armed attacks on personnel and installations, kidnapping and hostage taking and the disruption of operations. Others are community protest action, crude oil theft and illegal bunkering, cyber crime and electronic infractions.

    To address these challenges, Oti urged operators to develop an effective oil and gas infrastructure protection strategy and acquire risk assessment and warning capabilities. He said there is the need for an integration of information sharing and control in the security of oil and gas infrastructure between operators and relevant security agencie.

    Head of HSE at the Department of Petroleum Resources (DPR), Dorothy Bassey,who was represented by Ijeoma Onyeri, spoke on approaches to sustainability in her paper entitled: “Developing a winning formula for sustainability in the oil and gas industry.

    She listed innovation, transparency, taking responsibility and maintaining standards as some of the key elements required to develop a winning and sustainable business in the oil and gas industry.

  • Customs denies attempt to bribe lawmakers

    The Customs Service has denied buying 200 cars for members of the National Assembly to pass the amended Customs and Excise Management Act (CEMA).

    Its Customs National Public Relations Officer, Deputy Comptroller Wale Adeniyi, said the claims by the Managing Director of Maritime Media Limited, Elder Asu Beks, that Customs acquired the cars to influence the lawmakers to free the Service from the control of the Presidency and the Federal Ministry of Finance were not true.

    “It is good and easy for us to address the issue raised by Mr Asu Beks. First, he raised the allegation that Customs bribed the distinguished Senators with 200 cars to pass the CEMA Bill. Well, we find this allegation curious and unfounded and these are allegations that Mr Asu Beks cannot back up with any evidence. This is not a substantive issue, but, for me as a concerned Nigerian and as a Customs officer, the onus of proof lies with MrAsu Beks to tell Nigerians how Customs actually bribed the distinguished Senators with 200 vehicles. “Beks needs to come out with more facts. What type of vehicles are they? What model? Where were the vehicles bought? Were they imported into Nigeria? He needs to let Nigerians know that this is the evidence he has. He cannot just come and make this type of allegation and we allow him to go like that. It is also in the interest of distinguished members of the House, because it is a credibility issue, and throwing this kind of allegation wildly at them like this is not good for our democracy.”

    The Customs image-maker said the attempt to pass the new Customs bill is noble, because the existing CEMA is old and obsolete.

    “The exercise is to bring the law in tandem with the challenges of modern Customs administration. It is obvious that people like Beks, who are condemning this bill, have not read it. It is so obvious. What this bill sought to repeal is the old 1958 Act. There is a new Act, which was enacted in 2004, which is the Customs Excise Consolidated Act 2004 CAP C49. All the powers of Mr President in terms of granting waivers and concession are intact in Section 12 of this particular Act. Section 12 talks, particularly, about the powers to impose, to vary or remove any import duty and to amend the schedule of the tariff.

    “These are powers that are vested in Mr President and these powers are intact. So, Mr Beks and the like have not read the bill. CAP 49 of 2004 is not among the provisions that the new bill seeks to repeal. All the other powers of the Minister; the power to appoint the Board and members of the Board; to chair the Board of the Nigeria Customs Service and all the powers of the Board are all enshrined in the new bill. They are there and the new bill is not taking away any power that was vested in the under the former Act,” Adeniyi stated.

    He told The Nation that Customs might take legal action against Beks to compel him to proof his unfounded allegation.

  • SAHCOL, Medview collaborate

    The Skyway Aviation Handling Company Limited (SAHCOL) has been picked to provide ground handling services to Medview Airline’s Domestic Operations.

    By this deal, SAHCOL shall be providing Ramp and Passenger Handling Services to Med-view Airline in its flight operations in the country.

    SAHCOL has been partnering Medview in the provision of ground handling services in its Hajj operations.

    Chairman of SAHCOL, Dr.Taiwo Afolabi, at the take-over of SAHCOL from the Federal Government in December 2009, promised to invest in personnel development, state-of-the-art equipment, fleet replacement, and infrastructure.

    Less than three years later, these promises and much more has been fulfilled, which has helped tailored the company to meet the needs and expectations of its growing list of clientele.

    The activities of SAHCOL include passenger handling, ramp handling, cargo handling/warehousing, aviation security, baggage reconciliation, executive lounge, and other related ground handling services, while ensuring that ground handling assignment is carried out in an efficient, speedy and safe manner, by deploying the right tools and expertise.

    SAHCOL also provides ground handling services to Arik Air, the United /Continental Airline, Air France Cargo, Etihad Airways, Egypt Air, Middle East Airlines (MEA), Allied Air, Aero Contractors Airline, Dana Air, Sudan Air, African Open Sky Airlines, among others.

    Skyway Aviation Handling Company Limited’s services are tailored towards meeting the needs and expectations of its growing list of clientele, which includes international scheduled and ad-hoc operators, and domestic airlines operating in/out of airports in Abuja, Lagos, Minna, Kaduna, Jos, Yola, Kano, Maiduguri, Sokoto, Port Harcourt, Calabar, Enugu, Owerri, Ilorin, Akure, Benin, Ibadan and Uyo.

  • Dana crash: Multiple claims delay $70,000 payment to families

    Dana crash: Multiple claims delay $70,000 payment to families

    WHY has the outstanding $70,000 compensation to families of victims of the June 3 Dana plane crash not been paid five months after the accident?

    The Nation has learnt that payment is being delayed because of multiple claims by some family members.The families, it was learnt, could not agree on who should be the next- of- kin to collect the letter of administration from the Probate Registry of the Lagos High Court to get the outstanding payments.

    To solve the problem, the Ministry of Aviation, Dana Air and the Nigeria Civil Aviation Authority (NCAA) have set up a familiy assistance programme.

    The seventh of such meetings was held last week at NCAA annex, at the Murtala Muhammed International Airport, Ikeja, Lagos.

    Although airline officials and family members who attended the meeting declined to comment on its outcome, NCAA’s Director-General, Dr Harold Demuren, said the challenge remained a sore point for air crashes.

    Demuren said: “When we start having problems about the claims we cannot leave the families of the victims or the victims alone. That is why we came up with the family assistance programme. We have been working hard on what can we do to assist them so that they can get the smallest thing that is available under the law, concerning the compensation claims to the families.

    “There are some families who have received the $30,000, being the first tranche of compensation but nobody has got the $70,000, the second tranche because this is being reinsured abroad.

    “To get the outstanding $ 70,000 would require a letter of administration from the Probate Registry, which would have to come from the Lagos State government. We want to see how we can fast-track the issuance of the letters of administration for the families of the Dana Air tragedy.

    “We want to see how the issuance of the letters can fast-track and accelerate the process of getting the letters of administration and once we get that, we have got assurance from the insurance companies that the money would be paid on getting this letters.

    “We have been discussing that and how we can assist them considering the agonies they had been passing through since the accident occurred on June 3, 2012. The families of the affected victims have had to travel from the parts of the country to Lagos on several occasions.

    “Eighty individuals have so far got the 30 per cent; whether infants, elderly, payments must be made on every person on board that aircraft because life is life.

    “The contract on the tickets is per passenger.

    “We have to contend with the controversies or muliple claims from families of victims. And most, regrettably, we have many of those.

    “In all air accidents in Nigeria, this issue of multiple claims by families of deceased always comes up. We must resolve this issue or less the affected families might lose the money.

    “Nobody would pay when there are multiple claims and the one would be in the escrow account until the families can resolve their differences.

    “We are putting a lot of pressure on Dana Air and it is towing that line also.They said the money is there but it needs the letter of administration before its insurance company can pay the remaining 70 per cent. We are talking to the Lagos State Government to fast-track this special dispensation, to treat the Dana Air case as special.

    “The Lagos State Governor State has given instruction to the Attorney-General and Commissioner of Justice, who has given same directive to the Probate Registry to act fast.

    “We need to treat Dana Air’s case as a special. It is a tragedy for the nation.”