The Nation Newspaper

Category: Business

  • NAPIMS backs stakeholders’ alliance to sustain govt’s projects

    NAPIMS backs stakeholders’ alliance to sustain govt’s projects

    The National Petroleum Investment Management Services (NAPIMS), a subsidiary of the Nigerian National Petroleum Corporation (NNPC), has said for government’s projects to be sustained, stakeholders including the benefiting communities, local and state governments, must be involved in protecting such projects.

    Speaking with The Nation during this year’s Shell’s sustainable development and community relations road show and exhibition, with the theme Delivering value together, held in Lagos, the Manager, Public Affairs Department, NAPIMS, Dr. Kennie Obateru, called for the collaboration.

    He stressed the need to engage more of the people who have the traditional responsibility to provide these amenities, including the local and state governments. He noted that those who provide these amenities to the communities cannot run the projects forever.

    According to him, there must be a kind of engagement whereby after the project had been delivered the local/state government that has the traditional responsibility to provide these amenities in the first instances could then take over and run the project that had been delivered.

    He said currently oil companies involve both the local and state governments in whatever projects they do, therefore, the state and local governments as well as the communities have to show appreciation by buying more into these projects through ensuring adequate protection.

    He said: “We get to see why they need to take over and impact of this. We still have instances where even if you go to the communities and ask the local government to provide security they ask you to bring money. I think they have to see themselves as partners rather than doing us a favour because it is about serving the people and they have the constitutional right to serve the people while we also have the responsibility to also give back to the community where we operate.”

    He added that the communities are allowed to pick the projects that they wanted while the company worked with them to deliver the projects

    The Team Leader, Education, Information, Communication and Capacity Building, Shell, Uwem Owomite, agreed that Shell had been in the forefront of the implementation of the Nigerian Content including the provision of finance to local contractors, who according to him, would otherwise not have had the money to do business.

    He said Shell doesn’t only give money to contractors doing business with it, but also to other companies that do business with it, which it would be able to use the finance to help to grow.

    Mr Owomite recalled that Shell had introduced a new scholarship programme called credit to career whereby every year the company takes about 60 brilliant students from host communities who according to him, would not have had access to basic education.

    He added that yearly about 2,700 secondary school pupils get the firm’s scholarships while another 750 students of universities are also awarded, adding that the idea of the road show was to create awareness on what Shell companies in Nigeria are doing.

    “Most often what people hear about Shell is the negative aspect but there are good and positive stories about what the company is doing in the communities and how much it has changed lives and transformed communities through the social performance projects, he said.

     

  • NIMASA arrests pirates

    The Director-General, Nigerian Maritime Administration and Safety Agency (NIMASA), Mr Patrick Akpobolokemi, said the agency has averted another ship hijack and arrested 15 suspected pirates with arms and ammunition.

    Speaking with The Nation in his office last week, the NIMASA chief said the hijack was planned to have taken place off the coast of Cotonou in the Republic of Benin, adding that the agency’s vigilance led to its foiling the arrest of the suspects.

    He lamented the release of suspected pirtaes. He said: “The continuous release of suspected pirates is frustrating our fight against pirate attack on vessels.”

    Akpobolokemi said the extension of its anti-piracy operation to Benin Republic was based on the request of the President of Benin Republic to the Nigerian government, the agency. As a result, President Goodluck Jonathan directed the agency to extend its operation to Benin waters.

    He said the operations of NIMASA had assisted in curbing the menace of piracy and armed robbery at sea and border-related vices within the Benin Republic waters and its neighbouring countries of Nigeria – Togo and Ghana.

    On the release of arrested pirates, Akpobolokemi said each time these suspects were arrested and handed over to the prosecuting agencies, they soon got themselves off the hook.

    Akpobolokemi said some suspected pirates have been arrested more than twice, thereby making rendering useless the agency’s moves to reduce or eliminate the menace of pirates on the nation’s waters.

    He said NIMASA can only make arrest and hand over to the Police or State Security Service (SSS) or any other prosecuting agency.

    He, however, sought the support of other agencies involved in the prosecution of suspects to stamp out piracy from Nigeria and, possibly, the West African coast.

    Specifically, he warmed that if piracy is not tackled to its logical conclusion, it would lead to high cost of freight of cargoes, thereby bringing an increase in the cost of goods and services.

    The agency boss also said in the last the nine months, NIMASA had arrested vessels involved in illegal ship to ship transfer of products, unauthorised midstream discharge, illegal bunkering and outright oil theft.

    He explained that since NIMASA started the war against piracy, there had been a steady decline.

  • NICON, 43 others sue FIRS to tribunal over N1.15b excess tax

    NICON, 43 others sue FIRS to tribunal over N1.15b excess tax

    NICON Insurance Plc and 43 others yesterday in Abuja, dragged the Federal Inland Revenue Service (FIRS) to the Tax Appeal Tribunal over the non-refund of about N1.15 billion overpaid stamp duties.

    In an appeal filed by their Counsel, Prof. Taiwo Osipitan (SAN), the insurance firms alleged that they paid the excess stamp duties to the Federal Government through FIRS between 2002 and 2006.

    They averred that the respondent acted “arbitrarily and capriciously” by refusing to refund the excess stamp duties to them.

    They said FIRS also erred in law, “in refusing to refund excess stamp duties paid on various increases on their share capital to the tune of N1.15 billion,’’ stating that the respondent erred in law in the decision that the appellants’ claims for refund of excess stamp duties paid by them on their respective statements of increase in share capital were time barred by virtue of Section 21 of Stamp Duties Act Cap S.8 Laws of the Federation, 2004.

    Sunday Oghayei, who stood in for Osipitan, said the appellants’ claims “are for a refund of excess stamp duties paid over and above the amount prescribed by relevant Statute/Money received by the respondent.’’

    The appellants are seeking for a “declaration that the decision of the respondent that the application of the appellants for refund of excess stamp duty payments on increases in their share capital between it and FIRS is statute barred is incorrect, arbitrary, oppressive and a derogation of the appellants’ rights,” they said.

  • Why power sector privatisation

    Why power sector privatisation

    As the power sector privatisation draws to a close, the protests over the emergence of preferred bidders for the distribution assets may rubbish thes exercise adjudged to be one the most transparent by local and international observers, EMEKA UGWUANYI Assistant Editor (Energy) writes.

    Nigerians are increasingly getting expectant of the day electricity would be stable as the privatisation process of the power sector gets completed by the end of this month.

    The Federal Government as well as other stakeholders believes the takeover of operation and management of the electricity industry would remedy the age long problem of the sector.

    Since the past four decades the power sector has been owned and controlled by the government through the Power Holding Company of Nigeria (PHCN), and despite enormous funds channelled toward improving supply and service delivery, no significant result has been achieved. This informed the government’s decision to privatise the industry.

     

    The selection process

    To ensure that utmost transparency was applied and due diligence process followed in the entire privatisation process, Chairman, Technical Committee of the National Council on Privatisation (NCP), Mr. Atedo Peterside, said in his opening remarks of commercial bids for the privatisation of the PHCN successor distribution companies in Abuja on October 16, 2012, that all the prequalified bidders were given access to the virtual data room from 1st September 2011 to the proposal submission date of July 31, 2012. Pre-qualified bidders were also allowed to visit the distribution companies and physical data rooms that were located within the franchise area of each distribution company, he added.

    To further ensure transparency in the process, Peterside said that the NCP formed three committees to evaluate the bids that were received. Each of the committees had seven members drawn from the following agencies: BPE; Nigeria Electricity Regulatory Commission; Federal Ministry of Power; CPCS Transcom – advisers on the transaction; NEXANT—USAID-funded power sector consultants providing support to the BPE; and NIAF—DFID-funded infrastructure support programme to the Nigerian government.

    Besides, he said the officials of the Economic and Financial Crimes Commission (EFCC), the Independent Corrupt Practices Commission (ICPC) and Directorate of State Security Services (DSSS) also observed the process from bid submission to the conclusion of evaluation. They were therefore witnesses to the fact that all late-comers were turned back.

    Besides, the BPE said the reason the privatisation deadline was shifted from February to October was based on the demand of bidders who had claimed they were not carried along on some issues. The Bureau also said because the privatisation was intended to be market driven, it shifted the deadline to make room for any investor to clarify any issue of his interest.

    Furthermore, state governments already have opportunity to own 30 per cent stake in assets within their areas and the Federal Government promised to release more stakes from its own to the states depending on the quantum of investment they made in the assets.

     

    The protest

    The consortium to which the governments of Edo, Delta, Ondo and Ekiti states have interests – Southern Electricity Distribution Company – was unable to score the highest mark in Aggregate Technical, Commercial and Collection (ATC&C) losses reduction, which was a major test for the bidders and consequently lost to another competitor, Vigeo Power Consortium. The governors of the four states had at a press conference dismissed the result of the privatisation exercise for distribution companies as fraudulent.

    “The entire process was a racket that is inconsistent with running a transparent government. The BPE used a set of criteria that have never been used before,” the governors said.

    Governors Adams Oshiomhole (Edo), Emmanuel Uduaghan (Delta) and Kayode Fayemi (Ekiti) in Abuja last week said that apart from the privatisation process lacking transparency, Vigeo Power Consortium lacks the necessary technical competence and financial capability to run the Benin Disco.

    Oshiomhole said the process was rigged to favour Vigeo because during the technical evaluation of the bid process, Southern Electricity scored 898 points as against Vigeo’s 847 points. He questioned how Vigeo emerged the preferred bidder at last.

    Fayemi said: “Our major complaint is competence. We are disappointed that the company that was awarded the preferred bid has no technical competence and the process by the BPE was not transparent. We are not going to sit idly and show lack of concern because the process was not transparent. We will take that up with those concerned. This is the handiwork of a racket.”

    The three governors said they had made their complaints known to President Goodluck Jonathan.

     

    BPE’s position

    BPE, in a statement, faulted the governors’ position, stating that accusation of a flawed process and irregularities against the privatisation bureau was unfounded and reckless. “The bidding process was transparent and we followed the bible of our transaction in doing that. We did not deviate from the norm when dealing with the bidding. I think the governors are bad losers,” it added.

    In a bid to give the press an opportunity to ask questions about the allegations levelled against the BPE, the Bureau has also slated a press conference that held yesterday.

     

    Vigeo’s defence

    Also reacting to the governors’ statement, the Chief Executive Officer of Global Utilities Management Company Limited (GUMCO), Mr. Abu Ejoor, said that his company, which is Vigeo’s local technical partner, has been involved in virtually all the public-private partnership initiatives in the distribution sub-sector starting from revenue cycle management (RCM). He said RCM is an outsourced management contract, which the company participated and ran in the Shomolu, Ikorodu and Ojodu districts of Ikeja Disco between 2002 and 2007.

    “During this period, the company was involved in the entire revenue cycle management from metering to revenue collection, assisting the zone to boost its revenue collection and reducing commercial losses.

    “In 2006, GUMCO, under the National Prepaid Metering Programme, introduced prepaid metering and billing to Benin Electricity Distribution Company. It started from Benin City and later extended its operations to Warri, Asaba, Ondo and Ekiti.

    “Today GUMCO has presence in all the four states in Benin Disco, helping PHCN in the management of its commercial operations, including vending management. What the company does is to bring management and investment into improving the billing and collection of discos.

    “Of all the companies that bided, only Vigeo Power has local experience in utility management through its local partner GUMCO,” he added.

    On Vigeo’s foreign technical partner, he said the success of the Delhi model in the consortium is NDPL, a Tata Power Delhi distribution company providing efficiency.

    “We believe in the transparency of the process of BPE, the integrity of the members of the bid process, and the trust the president has in them to have given them this herculean task. So it is wrong for anybody to allege that we don’t have experience to run distribution companies,” he said.

    Besides, he said: “With the TATA partnership, a private interest operator in India, stakes for excelling are high. They operate a reform that the Nigerian power sector is modeled around. They have the objective to perform and are not saddled with the bureaucracy of government, the same reason the federal government is running from with the privatization.

    “The foreign technical partner, TPDDL is the success story of the Delhi Reform reducing ATC&C Losses from 50 percent to 11 percent within 10years. The only Industry leader in India and Asia that is known to the world and major international institutions is TPDDL, having won consistently in the last six years the Asian Power Award.”

    The company emerged the preferred bidder for the Benin Disco, for scoring an average technical, commercial and collection (ATC&C) loss reduction projection or efficiency ratio of 21.78 per cent, as against Southern Electricity’s 17.72 per cent.

    The Vigeo Power Consortium is made up companies with track records of successful performance, including Vigeo Holdings, GUMCO, Africa Finance Corporation (AFC) and Tata Power Delhi Distribution Limited (TPDDL).

     

    Stakeholders’ perspective

    The Nigerian Economic Summit Group (NESG) has urged governors of the states that lost out in the bid for the discos not to play politics with the privatisation exercise.

    The Chairman, NESG, Mr. Foluso Phillips, who spoke on behalf of the Group, questioned why the governors are trying to stall the privatisation exercise despite the fact that all the bidders were given equal opportunities.

    He said: “We had a bidding process in which everybody participated. If they (the governors) have a problem with the process, the issues should have been raised at the beginning of the process. Why is it that they are now complaining after the process had been concluded?

    “We are not in a military era. I don’t really know what they are complaining about because they already have 30 per cent stake in the project. Nothing should stop the privatisation exercise because the Summit believes in the deregulation of the Nigerian economy. The whole economy should be deregulated because government in all aspect has shown that it is not capable of running a commercial entity.

    “See what happened in the telecoms sector. We need deregulation so that the private sector can create good jobs and provide better services.”

    Besides, he said States and the Federal Government should not be allowed to be much involved in the power sector because they will not be able to add value.

    “If the states and Federal Government participate, it will be more complicated because they will start fighting themselves over who sits on the board instead of looking at the commercial entity,” he said.

    Frontline financial expert, Mr. Bismarck Rewane also commended the Federal Government for opening up the power sector to private firms. Rewane, who is the Managing Director of Financial Derivatives Company Limited, stated that private owned firms were far better than public owned. “State monopoly is the worst structure in any country. As long as people are paying for what they using, Nigeria will be better off,” he said.

    Chairman, Technical Committee, NCP, Atedo Peterside has also challenged those that lost out to state the specific rules that were breached in the privatisation exercise.

    Peterside, who is also the Chairman of Stanbic/IBTC Bank, said if the losers read and understood the rules of privatization process, they would realize that rules were followed to the latter. He said: “It is sad that in year 2012 some Nigerians will not go and read the rules before they (losers) rush to make comments. The rules (Request for Proposal) are in 72 pages. They should sight which rules were breached. If they read and understood the rules, they will comprehend that the rules were followed to the latter from the very first day of the transactions. They all took part in a race and the final results have not been announced. So, if they are now faulting the entire process, it shows that something is wrong.”

    An engineer and former Executive Director (ED) of the PHCN, Mr. Bisi Oyinloye also said the process for the selection of the Discos was very transparent and urged the BPE to muster enough courage to follow through the entire process.”From what I saw on the television, the process could not have been more transparent than that. Guidelines were given to everybody and they also took a risk. Some quoted low loss rates while others quoted high loss rates. So, I don’t know why the losers are kicking against the process. Nigerians will always be critical but the truth is that everyone was given the guidelines and they all had equal opportunities. The issue thereafter is if the selected distribution companies will be able to meet their loss rates,” he said.

     

    Conclusion

    Given the transparent way the privatisation of the power sector is being handled, President Goodluck Jonathan should be commended for giving the BPE and the National Council on Privatisation (NCP), the political will to privatise the power sector. Mr. President however, should not allow the process to be truncated by political pressure.

    The NCP under the chairmanship of Vice President Namadi Sambo, should also be commended for mustering enough courage to follow through the entire process diligently.

    Some stakeholders are of the view that the 30 per cent allocated to states may be a cog in the wheel of Nigerians’expectations to see quick achievement of stable power supply. They noted that the 30 per cent given to the states can be detrimental to the privatisation process. The governors faulting and questioning the criteria for the selection process will draw the privatisation programme backward because the companies they promoted also had equal opportunities.

    The protest by the governors may also drive away both local and foreign investors needed for the power sector that needs an annual investment of $10billion for the next 10 years.

    The aggrieved governors should demonstrate good sportsmanship and work together with the preferred bidders to fix the power sector problems and provide reliable power supply to Nigerians or in alternative they (governors) should go to court of law to challenge the result instead of threatening to truncate the privatisation programme by making operation difficult for the preferred bidders.

    Also, given the fact the Vigeo Consortium is very familiar with the terrain, having been in operation for over 11 years, it makes logical and economic sense to allow the company to continue in a seamless manner that would further add value to the consumers.

  • Lagos agency, group to train concrete workers

    DISTURBED by the incidence of collapsed buildings, the Lagos State Material Testing Laboratory (LSMTL) and Building Collapsed Prevention Guild (BCPG) are planning to train concrete producers and workers in the state next month.

    BCPG has been championing the campaign against building collapse while organising bricklayers, concrete producers and workers in Lagos in the last four years.

    Speaking  with leaders of the workers in the state on the modalities of the training, Chairman, BCPG, Mr Kunle Awobodu, said  workers, operators and other artisans in concreting on construction sites, comprising iron welders, carpenters and bricklayers would be part of the seminar.

    He said BCPG was out to correct the problems in the sector.

    He appealed to the stakeholders to check the excesses of their workers.He told them that they have a role to play by refusing to work on any site where owners or developers fail to provide adequate materials.

    The Managing Consultant, LASMTL, a monitoring agency,  Mr Shola Famakin, urged concrete mixers to always liaise with the Nigerian Institute of Building (NIOB) on training that would enhance their jobs.

    He assured them that his agency would be part of the training scheduled for Ikeja, Lagos.

    He said: “There is need to go back to the basis and do the right things that people have abandoned. There is need for us to have standards for casting of concrete for decking and house columns.

    “With the look of things, he said it would be made mandatory for engineers, concrete mixers and operators on construction sites to sign certification document before embarking on concrete works on sites, urging that there was need to collaborate to get good results.

    Chairman, NIOB, Lagos chapter, emphasised the need for quality work.

    Another staff member of the Lagos LSMTL, Mr Gboyega Abisogun, said there was need for stakeholders in the industry including builders, engineers, iron benders  and concreters to work together to correct various anomalies  in order to move the sector forward.

    He blamed concrete workers for shoddy mix of materials in most construction sites, saying impatience on their part was responsible.

    Leader of concrete workers from Mushin, Alhaji Owonimess, said it was the first time professionals in the building sector  were planning such a training for concrete workers.

    He said: “I have been on the job since 1968. It is what we threw away before now that we are coming back to. I have observed that the houses we did the concrete works in the past have not collapsed but the new ones. Something must be wrong.

    “We are going to work with BCPG and government to end this embarrassment.”

    Another leader, Alhaji Olarewaju Alabede, promised that concreters would talk to themselves, saying: “It is the right time to do the right thing.”

  • ‘Dearth of mortgage finance bad for prospective home owners’

    ‘Dearth of mortgage finance bad for prospective home owners’

    Mortgage banking plays a key role in the provision of affordable housing. It provides finance. Various statistics on housing and home ownership highlight the urgent need for development in the sector, in terms of financing and affordability. Mortgage bankers, under the aegis of the bMortgage Banking Association of Nigeria (MBAN), have offered a fresh insight into how the 17 million housing gap can be bridged through mortgage. They spoke at their second Housing Finance & Investment Conference in Lagos. OKWY IROEGBU-CHIKEZIE writes

    Lack of mortgage financing is the bane of housing. It is also the reason most measures by successive governments to lift home delivery have not impacted the sector, especially the low income earners.

    This was the view of mortgage bankers and industry experts, who spoke under tha aegis of Mortgage Banking Association of Nigeria (MBAN), at their yearly conference in Lagos at the weekend.

    According to them, housing is a socio-economic tool and an important aspect of microeconomic policy considerations, whose shortfall in the country has become a source of worry, especially with the dearth of long-term mortgage financing.

    They noted that the sector would need about N24 trillion mortgage funds to provide the 17 million houses to bridge the gap.

    To them, this amount should have been accessible if there were effective mortgage policies. Mortgage finance is put at a paltry five per cent in Nigeria leaving a huge gap in the financing of homes. However, it is a different story in some advanced countries. In the United States, mortgage accounts for 72 per cent housing finance; United Kingdom (78%), China (60) Korea (54) and 92 per cent in Singapore.

    They attributed the housing financing gap to inconsistent government policies, absence of a secondary mortgage system and the dearth of relevant professionals in policy decision that concerns housing.

    Managing Director/Chief executive Officer, the Federal Mortgage Bank of Nigeria (FMBN), Mr Gimba Ya’U kumo, said the percentage of mortgage financing has been hampered by people not being able to keep to the terms of agreements and other challenges, such as death, disability, loss of employment , failure of businesses, over extended credit and, sometimes by living beyond one’s means.

    He said to bridge the 17 million housing deficit in the country, over N24 trillion was needed, at the cost of N2 million per unit. Also, N1 trillion would be required annually to to meet demand.

    Ya’U kumo regretted that nothing much had been done to get the sector to act as an employment generation catalyst to boost the GDP.

    He said: “The sector generates about 6.2 per cent of the aggregate employment in the United States, 22.3per cent in China and about 80 per cent in India.”

    The abysmal performance of the sector and widening funding gap has necessitated the urgent need for the development of a delivery and effective marketing strategy to boost public confidence and demand, he said, adding that government guarantees, incentives and subsidies were needed to entice private sector funds targeted at low cost housing.

    Ya’U kumo stressed that the gap could only be filled with the commitment of government to the sector in terms of funding and other incentives.

    The Central Bank Governor, Mallam Sanusi Lamido, who spoke as a regulator, said some key factors identified as the bane of mortgage financing, which has led to the N24 trillion gap in financing were weak capital, dearth of long-term funds, absence of mortgage refinancing or a secondary market and high cost of funds.

    The CBN boss, who was represented by the Director, Other Financial Institutions Supervision Department, Mr Femi Fabamwo, said other factors for the gap included titling challenges, poor legal framework, inadequate housing delivery systems and high cost of property transactions.

    He said the apex bank was working to institute appropriate legal frameworks, accelerated development of affordable housing, a mortgage refinancing or liquidity firm and a national housing mortgage intervention fund.

    Lagos State Governor Babatunde Fashola, while encouraging the Federal Government to play its part in lifting mortgage financing, said his administration has introduced a Home Ownership Mortgage Scheme tagged LAGOSHOMS — a rent-to-own scheme targeted at first-time home owners.

    He said a legal framework was in place to protect the rights of the mortgagee and mortgagor. Part of the legal framework, according to him, includes Lagos Mortgage and Property Law 2010; Tenancy Law 2011 no. 33 vol 9044; Housing Arbitration Rules 2011 and creation of mortgage departments in the state High Courts, whose sole purpose is to hear mortgage foreclosure matters for expeditious dispenseation of such cases.

    Fashola, who was represented by the Commissioner for Housing, Mr Bosu Jeje, said there is a department supervised by the Ministry of Housing which regulates transactions in the real estate sector.

    He said their efforts have led to the construction of over 886 housing units in some areas of the state , such as Gbagada, Epe, Ikorodu, Ikeja, Mushin, Lekki and Badagry.

    “While some of the units are ready and inaugurated, other constructions are ongoing. For example, we have Gbagada Phases 2A and 2B, Igbogbo 2A and B and others,” he added. He said opportunities and prospects abound in the sector.

    Fashola urged the private sector to invest in low income housing if the gap must be filled and in good time too. The government, according to him, cannot bear the cost alone.

    On what constitutes proper housing, the experts referred to a staement by the United Nation’s Secretary-General Ban Ki Moon, at this year’s Word Habitat Day celebration. He said:“Better planned and better functioning cities where everyone has adequate shelter, water, sanitation, health and other basic services; cities with good education and job prospects; cities with energy-efficient buildings and public transport systems; cities where all feel they belong are what is globally accepted.”

  • UK Group to establish oil and gas firm in Koko

    MOSS Group, an oil and gas company, made up of three investors from the United Kingdom is set to establish a project in Delta State in response to the Federal Government’s call for increased investment in the industry.

    The Chairman/Chief Executive of the company, Mr Steven Igbinose, who disclosed this during an interview with The Nation, said the firm would sanitise the sector by introducing a transparent and people-oriented business. He said: “We are in Nigeria to throw light on what we intend to do in the country. It is an investment, an oil and gas project that we are about to establish in Koko, Delta State. We are building six mega ultra-modern oil tank farms in that oil rich community.”

    He said a careful study of oil business environment revealed that the Koko town is both strategic and central for such business because a major chunk of Nigeria’s oil is produced in Delta State. Consequently, he said citing the project in the community would make things easier for the oil firm and more beneficial to Nigerians.

    On how the company would operate, Igbinose said he envisaged a departure from the norm because they intend to separate the oil company from the rest. “But the main purpose here is that we are trying to establish a business that would be based on pure transparency, which is what will stand us out from other existing firms in the oil and gas industry in the country. The ultimate purpose for our investing in Nigeria is for us to introduce a different business brand that is out of normal in Nigeria.”

    He explained that his group was encouraged by Federal Government’s efforts in addressing some salient issues relating to investment and economic development. He said he would bring his global experience in oil and gas matters to bear on the initiative.

    He said: “We intend to go global with my experience and the right contacts that we have. Having stayed in England for many years and considering the efforts of the Nigerian government in addressing certain anomalies in various sectors, I was inspired to come home and contribute to the economy of our great country. And with me in Nigeria are my friends and co-investors, Neoclis and Garey. They came down with me from the United Kingdom.”

    Igbinose said the firm would be involved in bulk sales and broking as well as developing a network of retail service stations. “There would be a loading gantry with six product pumps that have the capacity to dispense 150,000 litres of petroleum product each per hour. Our oil tanker that is already on ground and the oil tanker fleet is ready too, which will facilitate ship to ship bulk transfer.

    “We are also planning to establish MOSS leisure and wellness centre, medical centre as well as a boxing centre where our youths would be offered international standard training in boxing alongside normal national curricular. We shall also provide the best fire safety system and equipment within the Koko community,” he added.

    He said the project would provide jobs for many and bring development, social welfare and innovative healthcare to the people. “We also intend to go global with our subsidiary firm in UK. With my international investors that will take care of the leisure and ultra-modern boxing school respectively and the right fund at our disposal, we will not disappoint Nigerians. That will be our uniqueness,” he said.

    Explaining reason for choosing Koko, Igbinose said: “I realised that the Koko community is an investment area with rich potentials that were just lying untapped. So, I immediately thought of putting up an oil and gas firm there. I pursued the business idea and got it registered in 2008 as MOSS Petroleum. And being a native, it will afford me ample opportunity to make some positive impact on my people.”

  • Lagos gives nod for 581 building plan applications

    Lagos State Government has re-engineered its planning authority to be more responsive to public demands.

    The Commissioner for Physical Planning & Urban Development Toyin Ayinde, said the ministry has restructured the Lagos State Physical Planning Permit Authority (LASPPPA) to deliver on its mandate by ensuring that building approval plans are approved on time.

    He said the agency has subsequently approved a backlog of  581 building plan applications in just five  days. Emphasising the importance of obtaining approval before construction, he said it is critical to the quality  of life in terms of urban planning and development and the ability of the government to provide services  conveniently to well-planned areas with approved buildings.

    He appealed to members of the public who may have submitted their building plans for approval to check in the District Offices in the next few days.

    The Commissioner charged other officers to brace to respond to the expectations of citizens and continue to render selfless service to the public.

    Ayinde warned that the government would not tolerate illegal developments, obstruction of road setbacks as well as building on drainage channels.

    According to him, the state government is desirous of bequeathing sustainable living environment to the present and future generations and will, henceforth, vigorously protect the use of common paths and public highways for pedestrians use.

    He advised the public to submit their plans for approval through the appropriate channels and refrain from seeking short cuts, adding that the ministry was better positioned to process building plan applications for approval.

    He urged the public to engage professionals in the design and construction of their buildings.

  • ‘GAT does not belong to Bi-Courtney’

    ‘GAT does not belong to Bi-Courtney’

    • Fed Govt assures on air safety

    The remodelled General Aviation Terminal (GAT) in the old domestic wing of Murtala Muhammed Airport (MMA) does not belong to Bi-Courtney, the Aviation Minister, Princess Stella Oduah, has said.

    Princess Oduah,who spoke yesterday through her Special Assistant on Media, Joe Obi, explained that the location of GAT has never been concessioned to Bi-Courtney, adding that the agreement with Bi-courtney has a survey plan clearly marked in square metres.

    Oduah said: “Information at our disposal indicates that Bi-Courtney Aviation Services Limited, the Concessionaire to MM2, apparently threatened by the imminent opening of the newly reconstructed and remodelled GAT, Lagos, is mounting a media campaign in an attempt to blur, or diminish the unprecedented achievement of the Aviation Minister, in giving Nigerian airports a major face-lift and dignified ambience.

    “To be sure, the area where GAT is located has never been part of the area concessioned to Bi-Courtney Limited.

    “The agreement with Bi-courtney has a Survey Plan clearly marked in Square metres and the area of the GAT was never contemplated to be part of the area leased to Bi-Courtney.

    “Nigerians can vividly recall the dilapidated and decrepit state of the nation’s airports, including GAT prior to the assumption of office of the current Minister. Today, 11 airports, including the GAT are an elegant testimony of the desire and determination of the Minister to give Nigerians what they truly deserve – airports of their dreams that compares to any such facility anywhere around the world,” the statement said.

    “It is inconceivable that anyone would not only contemplate, but also hold fast to the jaundiced belief that a nation as big and great as Nigeria ought not to progress beyond having a terminal like MM2,” it added.

    On allegations that there are court orders restraining anybody, including FAAN, the agency in charge of federal airports from developing GAT, the minister said the court cases were still on-going.

    Meanwhile, Secretary to the Government of the Federation , Senator Anyim Pius Anyim said in Lagos yesterday that the Federal Government will continue to place high priority on the safety, security and comfort of travelling public across the nation’s airports as part of it’s transformation agenda.

    Anyim said this while inaugurating the remodelled General Aviation Terminal(GAT) at the Murtala Muhammed Airport built at a cost of N648 million.

    He assured passengers that the Federal Government is not only interested in remodelling the nation’s airports, but also in building new ones across the country, adding that the safety and comfort of the passengers are “uppermost in our minds.”

    Anyim said the business of aviation is an international one and we would like to follow international best practices in Nigeria. He implored the private sector to collaborate with Federal Government so that they can replicate in other airports what has been done here in Lagos.

  • ‘How to achieve sustainable growth in extractive industry’

    ‘How to achieve sustainable growth in extractive industry’

    Unless stakeholders including the private sector and the government engage in transparency and accountability, sustaining economic growth in the extractive industries may be a tall dream.

    The High Commissioner of Canada to Nigeria, Chris Cooter, disclosed this at a seminar on Corporate Social Responsibility (CSR) in the extractive industries in Lagos.

    At the seminar with theme: Sustainability in the extractive industries: Managing your value chain, Cooter noted that the bane of the extractive industries over the years has been the absence of early and open engagement among stakeholders including communities, which are affected by oil, gas and mine operations.

    He said time has come for stakeholders to come together to ensure that most operations in the oil, gas and mining industries are carried out in line and accordance with international best practices and standards.

    Mr Cooter said the era of shrouding the sectors’ activities in secrecy has to be dispensed with if the desired growth is to take place through investments.

    He assured of his country’s desire to support Nigeria in its quest to entrench accountability and transparency in the management and administration of its abundant natural resources by providing the template adopted by his country and other advanced countries for consideration for use.

    Besides, he said Canada is poised to bring more investments to shore up its $3billion worth investment that had already been made in the country. “So far, we have attained a major feat in our business relationship with Nigeria going by the kind of investments that we have brought here. The fact is that trade values have tripled during this period while investment is growing rapidly by the day. We are also expecting that significant new investments will come very soon to increase the $3 billion worth of investment that has been made already,” he said.

    He noted that the business relationship between the countries was expected to grow by the recent launch of the bi-national commission, which was signed in April.

    The High Commissioner said the commission, which focuses on security, economic and critical components of the economy, would provide the framework for adding momentum to the business relationship between the two countries facilitate opportunities, particularly in the extractive industries.

    The General Manager, Policy, Government and Public Affairs (PGPA), Chevron Nigeria Limited, Deji Haastrup, said the sustainance of growth in the extractive industries should not be left alone to private sector as the government and other stakeholders including non-Governmental Organisations (NGOs) have roles to play in ensuring that the huge revenues realised from oil, gas and mining are monitored and channelled into other worthwhile investments.

    He also said the country’s future lies in the diversification of the economy and the encouragement of entrepreneurship among the youth to reduce over dependence on oil.

    He enjoined stakeholders to work together so that the challenges militating against achieving transparency and accountability in the extractive industries, which include lack of respect for rule of law and sanctity of agreements, poverty, corruption and inadequate infrastructure, can be overcome.