Category: Business

  • Naira trades flat

    Naira trades flat

    The naira traded flat against the U.S. dollar at both the interbank and foreign exchange markets yesterday, as strong demand for the greenback soaked up liquidity from two oil firms and the Central Bank of Nigeria’s currency auction.

    The naira according to Reuters closed at N157.80 to the dollar, around the same level it ended at on Friday.

    At the bi-weekly auction, the CBN increased dollar supply to $200 million, from the $180 million it sold at last Wednesday’s auction, but maintained the rates at N155.78.

    Dealers said the local unit of French oil firm Total sold $44 million to some lenders, while Agip sold around $7 million, but strong demand lapped it up.

    The naira has traded around the N157-158 level to the dollar over the past one month, owing partly to dollar sales from oil companies and inflows from offshore investors buying bonds.

    Dealers expect the currency to hover around current levels throughout the week, as month-end dollar inflows from oil firms boost liquidity.

  • First Bank finances Broron’s oil vessel

    First Bank finances Broron’s oil vessel

    First Bank of Nigeria Plc has solely financed the multi-million dollar brand new oil and gas vessel, DSV Arianna. This is a milestone considering the poor response of Nigerian banks in funding oil and gas projects in the country.

    DSV Arianna is a brand new 78-metre ROV support and multifunctional field maintenance vessel acquired by Broron Oil and Gas Limited to service its clients such as Mobil Producing Nigeria Unlimited and Addax Petroleum Limited.

    First Bank’s Group Head, Corporate Banking, Ikeja 1, Oluremi Ajose-Adeogun, who spoke to our correspondent during the christening ceremony of the vessel in Lagos, said the bank found the oil company competent. This, he said, was why First Bank chose to fund the acquisition of the vessel. Although she didn’t reveal the amount the bank spent in financing the vessel, she said they (First Bank) didn’t syndicate the loan with any other bank.

    She said: “There are a lot of potentials in the industry for Nigerians that own vessels in the oil and gas industry and we think if the banks are willing to support Nigerians that have the capacity in terms of knowledge of the industry and the wherewithal to execute contract of this nature, we can do a lot to stimulate the economy.

    “In the past most of the foreign companies are the ones that have vessels of this nature and as a result we had a bit of capital flight in the sense that money that should be spent in the economy was taken out by the foreign companies that own the vessels.

    “But now a lot of Nigerians have seen the potentials and are going into it and is good if the banks can support the Nigerian companies that are willing to do the business.”

    On what attracted the bank to fund the project despite the company being a relatively unpopular in the oil and gas industry, she said “what attracted us to finance the project is because the company has an existing contract it was running with a foreign leased vessel, so when the company approached us to fund the purchase of its own vessel, and we could see our way out of the finance, we decided to support them.”

    Commenting on the level of support by Nigerian banks to the oil and gas industry, she said that Nigerian banks are financing a lot of oil and gas projects. Apart from First Bank, which is doing a lot in that regard, other banks she added are doing something too. “if Nigerian banks cannot finance Nigerian companies, who will?,” she quipped.

    She said: “First Bank didn’t syndicate the loan with another bank. There are a lot of other such requests for financing but the bank evaluates them based on its risk acceptance criteria. For instance, in a project such as this vessel, we consider the company’s experience to be able to deploy the vessel. We also consider your experience in the industry job, the contract and consider if you have the capacity to execute the contract and also ask ourselves if we can see our way out of the loan if we lend you the money. When we have transactions that are viable, we are always willing to finance them, she added.

    Broron Oil and Gas Limited provides marine, subsea construction and maintenance services, pipeline and piping engineering, project management services and procurement support services. The company led by Henry Ojogho.

    The company currently has an ongoing contract agreement with Mobil Producing Nigeria Unlimited to provide a multifunctional Field Maintenance Vessel (FMV) at QIT (Qua Iboe Terminal) with DPII capabilities for the following field operations: diving, survey operations for positioning and subsea inspection and seabed imaging with ROV

  • Coca-Cola partners firms to protect environment

    Coca-Cola partners firms to protect environment

    Coca-Cola Company is supporting industry coalition to protect the environment by encouraging proper disposal and management of its wastes, including used packaging materials.

    The company, according to its Technical Director, Mr Nkem Akobundu, is supporting the conversion of its PET bottles into fibres for making pillows, clothes and mattresses.

    Akobundu spoke at the launch of the new look Eva Water, in Lagos. He said the company had 13 sites where it treats waste water.

    He said: “Our company is conscious of how it manages our carbon foot print. Besides, we have in place energy management devices that reduce our energy consumption.

    Where we use a lot of energy we combine heat and water to heat our boilers. Additionally, we do not release gas to the environment, as we have installed coolers with carbon dioxide (Co2) compressors.”

    Akobundu also said plans were ongoing with Tetra Pack to recycle the seven-layer paper packaging of 5alive juice.

    On the new look Eva,  he insisted that it is of the same quality but with a better appeal.

    In his contribution, Senior Brand Manager, Still Beverages of Coca Cola, Mr Otome Olumide Oyo, said: “The DNA of Coca Cola runs in all its brands and as a global player in beverages, it is important to us to continue to leverage our global foot print regardless of where we are.

    Our new Eva has better handling and stand up distribution challenges, we continuously engage ourselves and also take care in the preservation of the environment.”

    Coca-Cola, he said, has supported the recycling of PET bottles since 2005, helping to establish a collection and buyback system that includes 22 collection centres in 10 States across the country.

    He maintained that through the project, nearly one billion bottles have been recycled with about 6,000 tonnes recycled this year, stressing that the new Eva bottle is another sustainable way the company is demonstrating its commitment to environmental sustainability.

    ”The new Eva water bottle is safe for the consumers and safer for the environment.

    We at Coca-Cola would never compromise our existing standards and would continue to bring our consumers the best innovative products to cater to their needs and ensure the safety of the environment,” he said.

  • Lagos Land Information System set to go online

    •To train surveyors on e- registration

    The Lagos State Geographic Information Systems (GIS) and digital mapping would go online before the end of the year to speed up land documentation.

    The present land documentation system is slowed down by physical submission and retrieval of land information for processing land titles, particularly Certificate of Occupancy (CofO). The base station is ready and would become operational once some issues are resolved.

    Surveyor General of Lagos State, Mr Joseph Olorunjuwon Ajenla, who stated this at the weekend, said his mission is to integrate data from the land registry, land information systems and GIS to have a robust land registry.

    “At the punch of a botton we will have the characteristics of all land in Lagos State, the government will not only earn money but the public will have ease in identifying their properties and the issue of multiple C of O will be a thing of the past.”

    He said very soon, the GIS system would be operational, explaining that the takeoff was delayed by some logistics beyond anybody’s control. “The state governor has done a lot in that line. The package has been uploaded and everything is set. It is just some gray areas that are being fashioned out now.”

    The control centre, he said, ought to be in the office of the Surveyor General with backup from the ICT centre. “This will be the control area from which everybody will access it from outside through the web. We have the officers on ground to manage all resources the public will need. Once you pay by using the card system, you will have access to the web page.”

    He said the surveys for public land was always on time since they had some zonal offices to take care of this and that more would be created. The existing ones include, Eti Osa, Epe, Ibeju Lekki, Ikorodu, Badagry, Amuwo and Ilupeju, adding that all these offices are on ground.

    “We are trying to create two more at Ojo to manage the riverine area to Agbara and Badagry will just have a stopover at Oke Afo and those in Ojo will take over from there down to FESTAC. Amuwo will take care of Apapa and environs. We can monitor all the land in Lagos State so that cases of encroachment will be minimised.”

    I supervise survey practice in Lagos State as Chairman of Ethics Committee. You can control but can only give directives to private surveyors except we make legislation to enforce the status that says 40 days after surveying a land the surveyor must bring the red copy (survey information, showing beacon numbers, among others) to the Surveyor General’s office. We have about 500 land information applicants whose red copies are not here and this means the survey plan submitted is just an ordinary paper and they will be thinking that the Office of the Surveyor General has been delaying their application for CofO whereas we are not.”

    He said besides surveyors not submitting survey plans, there were some erroneous surveys the private surveyors do which they cannot submit to the records office. “So, these are the short comings that we have in the Surveyor General’s office. We will make legislation to ensure that the private surveyors practice ethically. Also, will talk to them to ensure they practice the right way.”

    Ajenla said there is a transition in place to ensure that surveyors submit their red copies online instead of submitting the hard copies. “So that our CofO will be e-CofO that is coded and unlike the yellow pages we now have it will not be more than A4 paper and information embedded there can only be read electronically.”

    On land acquisition, he said government acquires land for its projects for overriding public interest and to create wealth which was not just money but every other thing.

    He said people who fall within this acquired land were usually compensated but that those who bought the land after the acquisition in error were not entitled to compensation.

    He explained that there are two categories of acquisition. One is committed which means the government has planned to execute a project on a given land such as a road. Those that are not committed, he said falls within global acquisition to deter land grabbers.

    The system, he said incorporates the role of the traditional land owners known as omoniles. “They apply for excision of villages and the government has been very benevolent with them by giving them parcels of land which they must plan in conformity with the designs and layout of the government. They should go in accordance with the state’s schemes so that they will not be creating slums while we are creating civil societies. That is why we supervise them.”

    On the issue of high cost of land documentation, he said Governor Fashola has embarked on a reduction of the cost of land documentation. “The World Bank during their visit made the observation and the governor has said he would do all in his power to reduce this cost, not only for individual developers of housing but for every category of people who need land, including investors.

    The government, he said is trying to reduce the cost of purchasing land and the cost of building. These could be done through reduction in charges.

  • DPR warns marketers on illegal construction of filling stations

    DPR warns marketers on illegal construction of filling stations

    The Department of Petroleum Resources (DPR) has warned oil marketers on the construction of filling stations without its approval.

    The DPR Director, Osten Olurunsola gave this warning at the 2012 major and independent marketers meeting held in Lagos. He decried the rising issue of marketers building new filling stations without seeking the statutory approval from the regulator.

    Olorunsola, who spoke through Mr Lanre Buraimoh, DPR’s Assistant Director, Product Depot and Jetty, said: “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.”

    He told the marketers that the construction of filling stations and fabrication of underground tanks should be undertaken only by DPR accredited consultant. Likewise all oil and gas equipment suppliers must be accredited by DPR, he added.

    He 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, Olorunsola said the Department is in advanced stages for the implementation of the Trucking Policy, which is envisaged to enhance tanker trucks usage and institute orderliness in trucking activities at the depots. The policy will also minimise pipeline vandalism, check diversion, theft and adulteration of petroleum products, and enhance road users’ safety, amongst others.

    On the current fuel scarcity, the DPR chief said that fuel distribution has remained stable until recently when reduction in supply has been noticed probably as a result of outstanding subsidy payments to the marketers and vandalism of distribution facilities as witnessed recently at Arepo. He said that the government is making concerted effort to ensure the availability of petroleum products.

    He also appealed to the marketers to step up product supply, especially as the festive periods approach. “We are approaching the end of year with the expected usual surge in social and festive activities. The attendant elevated quest for consumption of petroleum products cannot be over-emphasised. We wish to encourage marketers to ensure product availability to the public at this critical period. Marketers are strongly advised not to engage in acts that may lead to creation of products scarcity, and other associated ills such as hoarding and product diversion for profiteering, he said.

    DPR Operations Controller Mr Gbenga Koku corroborated Olorunsola, urging the marketers to conduct their operations within the provisions of petroleum laws and regulations, adding that a lot of challenges still lie ahead towards transforming and repositioning the downstream sector for sustainable economic development.

    He said: “We will continue to monitor licensed outlets, and hand over the illegal operators to the police. We will not licence retail outlets constructed without recourse to petroleum regulations.”

  • ‘Govt  requires N1.896tr for power’

    ‘Govt requires N1.896tr for power’

    The Head of Service of the Federation, Alhaji Isa Bello Sali, yesterday said in accordance with President Goodluck Jonathan’s Transformation agenda, about N1.896 trillion investment is envisaged in the power sector between 2011- 2015 Mr Sali, who spoke during the launch of the National Power Training Institute (NAPTIN ) graduate skill development programme in Abuja, said the fund is expected to cover investments in four major areas of power- generation, transmission, distribution, and alternative energy.

    He added that the objective is to provide adequate and sustainable power for industrial growth and national development, as well as intensify rural electrification efforts in a more efficient manner and achieve optimal mix, using the most appropriate technology.

    Sali pointed out that the strategy to be adopted in achieving these objectives is to create a deregulated and competitive electric power sector to attract foreign and local investments, noting that the implication for Human Capital Management is that only the best will be attracted to work in the sector.

    This, according to him, will go more than just being in possession of a Bachelor’s or Masters degree in Electric Engineering or Power related courses. The possession of practical skills and proven track record would be the requisite qualification for practitioners in the sector, Sali stressed.

    Following the need for manpower NAPTIN yesterday began an intervention training Programme for 5,027 skilled employees across the power sector.

    This intervention, said the Director, Business Services of the institute, Mrs. Fatima Jubrila, is one f the steps government requires to bridge the gap of 17,441 skilled employees required in the Power Holding Company of Nigeria (PHCN) in the next five years.

    The Minister of State for Power, Darius Ishaku, who flagged – off the NAPTIN training development Programme, said the graduate engineers will go through a skill development Programme for a period of 12 months.

     

  • Marketers to support NNPC in fixing Arepo pipeline

    The Western Zone of the Independent Petroleum Marketers Association of Nigeria (IPMAN) would assist the Nigerian National Petroleum Corporation (NNPC) to fix the vandalised major pipeline, System 2B, at Arepo in Ogun State, to ease distribution of petroleum products across the country.

    The South-West Zonal Chairman, IPMAN, Mr Olumide Ogunmade said this in a joint communiqué issued by the group after their meeting in Lagos. He condemned the attack of officials of Products and Pipeline Management Company (PPMC), a subsidiary of NNPC, in the course of their official duty. The group noted that such sabotage on socio-economic infrastructure of the country should be stopped.

    Ogunmade said the association would support the NNPC in whatever action it takes to restore pumping of products into the System 2B pipeline in the shortest possible period.

    He said that the current products rationalisation within the southwest depots was as a result of the vandalised pipeline at Arepo, which has caused the entire nation a setback in the petroleum distribution sector.

    “We commiserate with the management of NNPC/PPMC on their staff that were attacked at Arepo in the course of repairing the vandalised pipeline. We promise to support the management of NNPC/PPMC in whatever action they will take in restoring the System 2B pipeline in the shortest possible period.

    “We also want to appeal to the Federal Government not to surrender to vandals by ensuring the quick repair of the System 2B pipeline. The effect of leaving the pipeline unrepaired is scarcity of products all across the country,” he said.

    The group also appealed to the government to put in place measures that would holistically address the issue of pipeline vandalism. “Strong mechanism should be put in place to checkmate activities of vandals not just on NNPC pipeline network but all oil and gas infrastructure. We also urge the National Assembly to put in place laws that will ensure that vandal are punished,” they added.

    Ogunmade said: “We also plead with host communities of NNPC right of ways such as Magboro, Magbon, Arepo, Ogere, Ijedodo, Isawo, Ogolonto in Ikorodu and others, to cooperate with the PPMC management in ensuring the pipelines are protected. Communities where the pipelines passed should be very security-conscious to drive the local economy.”

    He added that the level of pipeline vandalism in the country is getting worrisome and needs divine intervention.

    The NNPC said oil thieves opened fire on a team of engineers and technicians of the PPMC that came to repair the pipeline and killed three.

  • Unions, aviation agencies meet on  debt recovery

    Unions, aviation agencies meet on debt recovery

    • Air Nigeria’s pilots petition CBN over N35.5b

     

    Two days after Arik Air resumed flights at airports across the country, union members and heads of aviation agencies yesterday reopened talks on the huge indebtedness by domestic airlines.

    At the meeting, which was held at the headquarters of the Nigeria Airspace Management Agency ( NAMA), were officials of the Federal Airports Authority of Nigeria ( FAAN), the Nigeria Civil Aviation Authority (NCAA) and the Ministry of Aviation.

    A source said the meeting dwelt on how to recover the debts without putting pressure in the system. Other strategies were explored.

    Also yesterday, reports that Arik Air gave directive that it would not permit the Managing Director of FAAN, George Uriesi, to board its aircraft were swiftly denied by the airline.

    The airline’s spokesman, Banji Ola, said in a telephone interview, that he was not aware of such directive.

    He said : “ I am not aware of such directive. I cannot confirm that because at no time did we give such directive, so I am wondering where that came from.”

    Meanwhile, staff of Air Nigeria, have petitioned the Central Bank of Nigeria (CBN), asking it to investigate the disappearance of the N35.5 billion aviation intervention fund given to the carrier last year. The fund was meant for streanthening the firm’s operations before the recent shut down of its domestic flights.

    In the petition dated September 12, 2012, entitled, “ Closure of Air Nigeria, call for investigation of N35.5billion Aviation Intervention Fund,’’ the branch chairman of the National Association of Aircraft Pilots and Engineers (NAAPE), Air Nigeria, Roland Ahmed, said the body wants the CBN Governor to probe the N35.5 billion facility drawn by the carrier.

    It said, ‘’The fund was released after much pressure to enable Nigeria airlines refinance their huge debts as well as inject life to the administration of aviation.

    ‘’We understand that the fund extended to Air Nigeria was guaranteed by the airline’s main banker, United Bank for Africa. To this end, we feel obliged to intimate you of the recent closure of Air Nigeria by its Chairman, Jimoh Ibrahim.

    ‘’Permit us sir, to draw your attention to this, as we believe it to be an anomaly and a defeat of the noble intention of the Federal Government through the CBN. We therefore implore your office to take immediate steps to safeguard, the N35.5billion public fund, which now appears trapped by Air Nigeria’s closure.’’

    The workers also noted that the airline’s Air Operator Certificate (A0C) expires after 60 days. It lamented that the statement credited to the airline’s chairman that it would re-open for business in 12 months time, was contrary to the provisions of the Nigeria Civil Aviation Authority.

    The CBN had, while injecting the fund to the sector, said “airlines can now partake from the funds and those that are indebted to banks can refinance their loans and amortise them over a period of 10-15 years.”

    The funds were to be dedicated to the airlines that meets the International Civil Aviation Organisation’s certifications. It was also meant to address all the issues of technical standards and planes’ airworthiness.

    The Minister of Aviation, Stella Oduah-Ogiemwonyi had recently called for a review of the fund because it was not delivering on its mandate.

  • Drop in oil revenue: Fed Govt, others to draw from solid minerals’ fund

    Drop in oil revenue: Fed Govt, others to draw from solid minerals’ fund

    The three tiers of government have agreed to source for more funds from proceeds of solid minerals – no thanks to a fall in revenue last month.

    The Chairman, Forum of Commissioners of the 36 states of the federation, Timothy Odaah, told journalists in Abuja that the drop in oil revenue witnessed during the last Federation Account Allocation Committee meeting, was a temporal phenomenon that would not have significant impact on the nation’s economy.

    He said: “You have heard contributions being made and what is on ground now is that solid minerals should also be included as the basis for derivation and the essence is to encourage states because almost every state in the nation has some solid minerals or oil buried in their land.

    “If that is done, it would be an incentive because we have seen dwindling economy all over the world.”

    He added that the clarion call is that every state must do a lot in order to beef up their internally generated revenue.

    Odaah said the development would improve at the next FAAC meeting, adding that there is much understanding because “we wouldn’t have agreed totally but the circumstances have made us to agree to the terms and by next FAAC, there would be much more improvement.”

    He also called on the states to diversify their revenue in order to boost developmental projects.

    The country suffered a huge decline of N260. 512 billion in gross revenue last month.

    The Accountant General of the Federation, Mr. Jonah Otunla had disclosed that the drop from N825.396 billion to N564.884 billion recorded in July was caused by security challenges experienced by the Nigerian National Petroleum Corporation (NNPC) in crude oil production.

    Otunla noted “the drop in oil production was due to a number of factors among which are the security challenges faced by the NNPC, force majure declared at Bonny Terminal and shutdown of Balema Gas Plant and Trans Niger pipeline as well as decreased in Production Sharing Contract and Modified Carry Arrangement.”

    The drop in oil revenue compelled FAAC to augment the allocation for the month of August by N143 billion.

  • LAWMA raises alarm on rail line refuse dumping

    Desirous of continually combating the menace of waste in Lagos metropolis, the Lagos Waste Management Authority (LAWMA) has called on residents, especially those living along Rail-corridors to desist from dumping refuse on the rail line.

    In a statement, LAWMA frowned at the attitude of some residents who engage in the obnoxious act of dumping refuse along such a sensitive location.

    The statement warned that such attitude is capable of spreading diseases and defacing the environment if not checked.

    The statement read in part: “Railway transportation in the State eases the burden of transportation for a reasonable percentage of the populace and dumping garbage along those lines can hamper its efficiency and safety as a means of transportation”.

    While emphasising government’s commitment towards effective waste management, the Authority warned that anyone caught violating the environmental sanitation laws through such illegal dumping will face the full wrath of the law.

    In the same vein, the Authority reaffirmed its call on people who own properties and shops on major roads and highways to comply with government’s directive to secure covered containers for proper disposal of their refuse.

    Highlighting the measures put in place, the statement disclosed that the activities of sweepers in the State is being expanded to cover the hinterlands, while local policing are being assigned to such spots for effective monitoring.