The Nation Newspaper

Category: Business

  • Oil firms aiding bunkering, says ex-CJN Belgore

    Oil firms aiding bunkering, says ex-CJN Belgore

    Former Chief Justice of Nigeria (CJN), Salihu Belgore, has accused oil companies of encouraging oil bunkering in the country.

    Belgore, who spoke at the opening of a three-day national workshop on the judiciary and the oil and gas industry organised for Judicial Officers by the International Institute for Petroleum Law, Energy and Policy (IIPLEP), in Abuja, called for the reorganisation of the oil industry to curtail wastages and check bunkering.

    Speaking on the theme: ‘The Nigerian Judiciary and the Oil and Gas Industry: Fostering a better understanding,’ he alleged that oil companies have refineries in neighbouring countries where they process the stolen oil.

    In her address, the Chief Justice of Nigeria, Justice Mariam Aloma-Mukhtar, identified regulatory uncertainty “as the main obstacle to industry growth and expansion, saying it is a menace no economy can put up with.

    She urged the government to step up efforts to pass the Petroleum Industry Bill (PIB) to address the challenges.

    “It is most significant to note that when companies are unsure of judicial outcomes when deals go sour, or when companies fear uncertain liability, they are less likely to consummate some deals and more likely to keep some new products from the market, thus slowing down the pace of economic growth.

    “It is hoped that the PIB when passed, will stimulate largely eliminate a litany of legislative hiccups, form new bedrock and open up new frontiers for a more robust oil and gas sector that will be both private sector led and commercially driven.”

    Aloma-Mukhtar also stressed the need for the judiciary to be impartial and treat all litigants alike whether they are corporations or individuals.

    The NJI Administrator, Justice Umaru Eri, stated that the survival of the economy rests to a great extent on whatever happens in the oil and gas industry.

  • Firm seeks buyers for aircraft

    Firm seeks buyers for aircraft

    As the global airline industry is going through crisis, leading to the liquidation of many, indications have emerged that Malev Hungarian Airlines has approached Arik Air to buy some of its airplanes.

    Investigations revealed that Malevolent Hungarian Airlines, which is in liquidation, is seeking buyers for two of its aircraft: Boeing 737 – 800 , but the offer was rejected by Arik Air on the grounds that the aircraft first generation types ranging from eight to 10 years.

    Arik Air’s rejection of the offer to buy the aircraft, it was learnt, is predicated that the aircraft type is at variance with the aircraft type on the fleet of Arik Air.

    It was further gathered that at the time of the liquidation of the Malevolent Hungarian Airlines, it had 22 aircraft in its fleet, which are being kept.

    There are also indications that some of the aircraft could find their way to Nigeria through other carriers, which source for aircraft held in storage by either liquidated carriers or airlines, which are ready to dispose their airplanes when in crisis.

    The desire to acquire used aircraft from foreign carriers has become fashionable among Nigerian carriers because of the prohibitive costs of getting new airplanes either from the shelf or on order from major aircraft manufacturers.

    Another factor that accounts for this is the seeming difficulty of Nigerian carriers to get lessors release aircraft to them because of high cost of lease rentals and insurance, which has increased, after the crash of Dana Air and the collapse of Air Nigeria, making Nigeria one of the high risk countries among aviation investors.

  • 2013 budget: ‘$75 oil benchmark positive’

    2013 budget: ‘$75 oil benchmark positive’

    • Rep to Okonjo-Iweala: Abide by $80 benchmark or resign

    Africa Global Research Standard Chartered Bank has said the $75 oil benchmark on which the Federal Government hinged the 2013 budget, is adequate to protect Nigeria from being vulnerable if oil prices fall.

    It however said there are gaps in the daily oil output the Appropriation is premised, given the fact that investment in the sector is not even, or growing.

    The claim that Nigeria is producing at an all-time high of 2.53mn bpd does not inspire confidence, the bank, said.

    The desk made its verdict known in a confidential analysis made available to the government by Razia Khan, Regional Head of Research, Africa Global Research, Standard Chartered Bank, London,

    The observations of the desk have been made available to key government officials.

    A copy of the brief obtained yesterday, reads in part: “The adoption of a $75/bbl benchmark assumption is still relatively positive. Of greater concern is the suggestion that there might be an attempt by the House to raise this to $80/bbl.

    “In our view, given global risks, and Nigeria’s on-going fiscal and export dependency on a single commodity, the priority for Nigeria has got to be increasing its rate of saving.

    “Were oil prices to fall, Nigeria would currently be left very vulnerable, with no sound mechanism for being able to smooth spending, let alone provide a counter-cyclical boost to the economy,” she said, adding that the Sovereign Wealth Fund, while encouraging, is not yet sizeable enough to create a sound buffer against external shocks.

    “It cannot be assumed either that the debt markets currently comfortably open to Nigeria, would be unaffected by any fall in the oil price. There is therefore a need for much more fiscal conservatism, and the signals from the House are a considerable concern,” she stated.

    The brief also faulted the oil production figures put forward by the Federal Government in the face of dwindling investment in the sector.

    Meanwhile, the Minister of Finance, Ngozi Okonjo-Iweala has been advised to resign if she finds it impossible to comply with the provisions of the Appropriation Act, 2013 when passed into law.

    The arrow head of the House joint committee that examined the 2013-2915 Medium Term Expenditure Framework (MTEF) and Fiscal Startegy Paper (FSP), Dr. Abdulmumin Jubrin, said Okonjo-Iweala should resign if it would be impossible for her to relate with the $80 benchmark, given by the House of Representatives, stressing that the 2013 budget would be anchored on the $80 bench mark, as stated by the Speaker.

    “The Minister of Finance would have to resign her position If she can not comply with the provisions of the Appropriation Act because that would amount to breaking the law. By the time the budget is passed, it becomes law that everybody must comply with,” he stressed.

    “We are talking from the point of law because our position on the issue of benchmark would be backed by the law and if it would be unacceptable to her, it would be better she resigns rather than break the law,” he added.

  • Firm grants marketing right to Nigerian partner

    Firm grants marketing right to Nigerian partner

    A CANADA-BASED firm IKO Shingles has given five years marketing exclusivity right to its Nigerian partner, 7 Stars Nig. Ltd., in recognition of its aggressiveness in marketing its roofing materials in the country.

    Speaking to The Nation at the weekend in Lagos, the firm’s Commercial Country Manager Russia/Account Manager Africa, Mr Eddy De Peuter, said IKO Shingles has taken over a large share of the roofing market in Nigeria within its short period of existence, serving high-end clientele.

    He said in appreciation of that, his firm granted exclusivity marketing right to their Nigerian sole distributor to encourage it to do more in the face of stiff competition.

    On the inroad made in the sector, he said: “Increasingly, our products are becoming popular and our distributor is engaged in a N1.5 billion roofing project consisting of 12 Victorian buildings on Monrovia Street, off Aminu Kano Crescent, Abuja. This is excluding the ones in Lagos and the East and prospects in other states.”

    He went on: “The Abuja project is not only a big one for us but has projected our high quality roofing materials in the upscale market. The location and value of the houses is a good marketing benchmark for us.

    “One good thing about us is that we have trained installers and those that have basic knowledge about our products. This makes it a lot easier for our customers to get the best as they are assured of our highest consideration in handling their roofing installation.”

    On what differentiates their products from other shingles in the market, De Peuter said they constantly embark on research and development on new technologies that always positioned them above others.

    He disclosed that the company has developed a self-adhesive and laminated shingles in their factory in Slovak, which are wind and harsh weather resistant, to serve the Nigerian market effectively.

    The shingles, he said, are sound proof with zero transmission of heat to the interior and no variation in colour after a long use unlike the aluminium shingles in the local market.

    He encouraged designers and architects to patronise the roofing material to give the best to their clients given the flexibility the product offers in terms of design concept.

    On weather challenges, especially strong wind, he said the material was produced to withstand hurricanes and strong wind, especially in coastal communities. It is being used in Mauritius and Angola to build hotels and estates.

    Asked if his firm was planning to manufacture shingles in Nigeria, he said the decision would depend on the volume of trade recorded within a time frame, adding that the country is best positioned to serve the West African coast.

  • Naira falls to three-week low

    The naira fell to its weakest in three weeks on the interbank market yesterday, as dollar demand by foreign exchange bureau and importers outpaced supply of hard currency, traders said.

    The naira closed at N157.55 to the dollar on the interbank market, weaker than the N157.40 to the dollar it closed on Friday and the level last seen on September 25 when it closed at N157.65 to the dollar.

    The currency however remained unchanged at the bi-weekly auction, as the Central Bank of Nigeria (CBN) sold $162.2 million at N155.75 to the dollar, compared with $120 million sold at the same rate at the last auction on Wednesday.

    Dealers said demand for the dollar from importers pushed down the local currency.

    “We see the naira strengthening a little in the coming days as dollar sales by one of the oil companies and expected inflow from offshore investors buying local debt boosts supplies and helps calm the market,” one dealer said.

    Traders said a unit of Shell sold some dollars toward the end of trading yesterday, adding that its effect would be felt in the market later in the week.

  • NNSL ex-workers protest non-payment of entitlements

    Almost 17 years after the Nigerian National Shipping Line (NNSL) was liquidated by the Federal Government, ex- members of staff of the national carrier have stormed the Federal Ministry of Transport, Abuja, to protest the non-payment of their entitlements.

    The aggrieved ex- employees carried placards with different messages, such as: “We cannot continue like this”; “Some of our dead are still in the mortuary”; “Our children are out of school”; and “Many of us have no roof over our heads” to the ministry to demand for payment of their entitlements.

    The protesters said some them are widows and widowers. One of them, Mr Oluremi Adetunji, who spoke with The Nation, said a top shot in the ministry had, after the verification of their documents, directed them to the Nigerian Maritime Administration and Safety Agency ( NIMASA) to collect their entitlements, adding that, despite the directive, they had not been paid.

    He said it was the responsibility of the ministry to direct NIMASA to pay them.

    “Maybe the government wants us to die before paying our money; that is why we went to the ministry so that Nigerians will know the problem we are facing before our sudden death.”

    A senior official of the ministry who does not want his name in print said the ministry had met with the protesters and that some agreements had been reached to solve the problem.

  • Budget 2013: Experts condenm zero allocation to sector

    Budget 2013: Experts condenm zero allocation to sector

    Insufficient allocation to housing in budgets has been a major problem. The government is yet to match its talk on adequate housing with action. Last year, the allocation to the sector was N24.9 billion. So, it was with high hopes that stakeholders waited for the 2013 Budget, which President Goodluck Jonathan presented last week, believing it would, at least, be an improvement. But their hopes were dashed; the budget was silent on the sector. OKWY IROEGBU-CHIKEZIE writes that the sector may not witness any growth next year, except some measures are taken by the government to lift it. Stakeholders also criticised the government on the ongoing 24,000 housing units projects and the 6,000 units deal with states, saying they are insignificant in the face of the huge deficit of 16 million units

    Budget 2013 termed “Fiscal consolidation with inclusive growth,” may have taken care of or boosted some sectors of the economy, but not so with the housing sector because it neglected its challenges.

    In developed economies, the sector is used to measure the Gross Domestic Product (GDP) but not in Nigeria where its contributions to the GDP is minimal that it is not reckoned with.

    Although the government has introduced some programmes to provide affordable housing to a large percentage of the population, they remain a rhetoric because their impact has not been felt.

    While presenting the 2013 Budget at the National Assembly, President Goodluck Jonathan said: “The provision of affordable housing is one of the administration’s strategic imperatives for guaranteeing our citizens’ productivity and well-being. We are creating an enabling environment for the private sector to produce the much needed housing, while creating jobs in the process.

    “To facilitate this, I will be holding a presidential retreat on housing in early November, to discuss policy and modalities for dealing with land titling issues, developing an affordable mortgage finance system and reducing the high cost of housing construction.”

    He said under various housing programmes, about 2,000 housing units have been completed, while over 24,000 others were at various stages of completion. These are aside the houses being constructed for the use of the Armed Forces and paramilitary services.

    In addition, the President said the Federal Government had entered into partnerships with some states to provide 6,000 housing unit.

    So far, about 600 housing units under the direct construction scheme of the Federal Housing Authority (FHA) in some states have been completed.

    According to him, these will ensure that more Nigerians enjoy the benefits of having their own homes.

    Observers are wondering how all these, especially when there is no budgetary figure tied to housing, will make a difference in the face of a bourgeoning housing deficit and growth of slums in the cities.

    In the 2012 Budget, Lands, Housing & Urban Development received N24.9 billion but, this year, no figure was allocated to it. Analysts are wondering what may have given rise to such neglect. While some attributed the anomaly to the government’s lack of understanding of the complexities of the sector, others believe the government does not attach importance to the welfare of its citizens in terms of their accommodation and has, therefore, left each one to take his destiny in his hand.

    A developer and Managing Director, Fine Homes Ltd, Mr Afam Icheku, while criticising the paltry figures of housing projects by the Federal Government, which didn’t add up to 30,000 units in the face of a need of over 16 million houses, said nothing in the budget suggested that the government was working towards encouraging home ownership.

    He predicted that there would be an increase in slums with only the rich able to build and own decent houses.

    The National Public Relations Officer of the Nigeria Institute of Builders (NIOB), Mr Kunle Awobodu, in his assessment of the 2013 Budget as it relates the housing sector, said there was no reason to cheer in the sector.

    He criticised the government on the planned one million houses proposed for this year, which never saw the light of day, wondering how the huge housing gap could be closed.

    Awobodu berated the government for not taking housing seriously. In addition, he criticised governments for not engaging professionals to deliver the little they are doing in the sector, to maximise the resources put into such projects.

    A former President of the Nigeria Society of Engineers (NSE), Mr Kashim Ali, was not happy with the government for positioning the housing ministry as an implementation agency rather than a policy organ.

    He regretted the zero budget on housing and asked the ministry to sit up and reposition agencies, such as the Federal Housing Authority (FHA) and Federal Mortgage Bank, to operate like commercial enterprises to deliver on their mandates.

    Ali urged the ministry to offer incentives to the private sector with easy access to land, tax holidays, and reduced cost of building materiald to engineer them to provide affordable housing.

  • Fashola, Asiodu demand action plan on sustainable energy

    Fashola, Asiodu demand action plan on sustainable energy

    Government has been urged to develop an action plan that will support energy generation and application to meet the needs of the citizenry without compromising future generations.

    At a walk organised by the Nigerian Conservation Foundation (NCF) and the Lagos State Government, supported by Chevron Nigeria Limited and other corporate institutions, Governor Babatunde Fashola said energy generation pattern over the decades has plced severe pressure on the environment.

    Represented by his Special Adviser on the Environment, Mr Taofeek Folami, he said: “Energy is the golden tread that connects economic growth, increase social equity and create an environment that allows the world to thrive. Development is impossible without energy and sustainable development is impossible without sustainable energy.”

    Speaking on the theme of the walk “Sustainable energy for all”, NCF President Chief Philip Asiodu said Nigeria must join the others to promote and adopt renewable and sustainable energy options that would help to mitigate the dire consequences of environmental degradation in addition to a bold re-afforestation programme.

    He said: “Nigeria must join the rest of the world to promote and adopt renewable and sustainable energy options that will help to mitigate the dire consequences of environmental degradation, in addition, of course, to a very bold re-afforestation programme.”

    He stated that recent study showed that Nigeria has huge solar energy and wind potentiial, biomass and other renewable sources. Fortunately, the cost of large-scale solar energy plants is becoming more competitive with improvements in technology.

    Asiodu added that the message from the event was that, in whatever position we found ourselves, whether as a student, youth, home builder, bread winner, parent, government official or corporate executive, we must keep the environment in our subconscious and think renewable energy, to guarantee a robust, healthy and economically viable future for our children and the generations yet unborn.

    The event was aimed at sensitising the public on the need to change attitudes that are inimical to the environment while promoting sustainable development in Nigeria. The Walk, which kicked off at the Lagos Government House, Marina, saw government officials, representatives of civil society groups, representatives of corporate organisations, students and members of the public in their hundreds walking with fanfare in and out of Marina, Lagos.

  • DPR seals depots in Apapa

    The Department of Petroleum Resources (DPR) has sealed petroleum products depots in Apapa, Lagos for various offences.

    In a statement by the DPR, Deputy Director, Public Affairs, Mrs Belema Osibodu, the agency said sequel to its recent Annual General Meeting (AGM) held with depot operators and marketers, during which the Department warned that appropriate sanctions would be meted out to enforce compliance, for violations, including the sale of petrol (PMS) above approved prices, it has started action

    “We have commenced the sealing of identified depots. The PMS delivery arms of the under listed depots have been sealed indefinitely by the Department. They include MRS Oil and Gas Limited; Obat Petroleum Limited and Ascon Nigeria Limited.

    “This action was based on credible information received on the depots, which confirmed that they were selling PMS above approved prices.

    “We hereby state that this sanitization exercise by the Department is a continuous one in addition to the ongoing petrol station surveillance nationwide, to ensure compliance with approved prices of PMS.”

    At the AGM, the DPR also warned oil marketers on the construction of filling stations without its approval.

    The DPR decried the rising issue of marketers building new filling stations without seeking the statutory approval from the regulator. “The past year witnessed an upsurge in the number of marketers who began construction of filling stations with an “Approval to Construct,” and then later applied for a waiver from the Department. This is an outright violation of the laws governing the construction of filling stations, and an appropriate penalty will soon be in place for this,” the Department said.

    The agency drew the attention of the marketers to strict compliance with oil and gas industry standards as practised worldwide. On ensuring further application of global standards in local operations, it said the plans are at advanced stages for the implementation of the Trucking Policy, which is envisaged to enhance tanker trucks usage, institute orderliness in trucking activities at the depots, minimise pipeline vandalism, check diversion, theft and adulteration of petroleum products, and enhance road users’ safety, amongst others.

  • Oteh to investors: put your money in healthy banks

    Oteh to investors: put your money in healthy banks

    The Director-General, Securities  and  Exchange Commission (SEC), Ms Aruma Oteh, has warned those interested in investing in bank stocks to put their money in healthy banks.

    Speaking at the Learning Series of SEC yesterday in Abuja, Ms Oteh said it was necessary for investors to put their money in healthy banks, as the SEC has already taken “a decision to protect the banking sector and by extension, the country’s economy.”

    She explained that the capital market burst was because “people did not ask enough questions, that’s why some companies’ CEOs mismanaged their money.”

    Ms.Oteh cautioned that investors should exercise discipline and make sure they manage and invest their funds wisely, adding that “any stakeholder  who does nothing until a company folds up is not a dilligient investor.”

    She said annual general meetings are very important and should not be ignored by investors as they offer platforms for investors to be acquainted with development in their companies.

    She said the Commission has set up another division under the collective investment services departments that focuses on registering venture capitalists.

    She said over the next few years, SEC would focus on venture capitalists because it recognises its importance in  helping entrepreneurs to put their business ideas into reality, adding that  SEC is hoping to scale up the country in terms of financial planning.

    She said the Commission is working closely with SMIDAN, and has also  made efforts to operationalise the National Investment Protection Fund. SEC has ”worked closely with the Nigerian Stock Exchange to revamp the fund which has been dormant until now,” she stated.

    Ms. Oteh said 142 firms out of the 214 listed, have complied with the corporate governance code of the Commission, adding that SEC is not just interested in listing requirements, but also pro listing them.

    Oteh said SEC has been very clear on the issue of integrity in building a world class market in spite of what she called “attacks on SEC” and on her person.