The Nation Newspaper

Tag: assets

  • Pension assets hit N4.6tr

    THE NATIONAL Pension Commission, PenCom, at the weekend said the nation’s total pension assets, had risen above N4.6 trillion.

    Director-General of PenCom, Mrs. Chinelo Anohu-Amazu, who disclosed this at a one-day dialogue on ‘The capital market and 2015 federal budget’, organised by the Chartered Institute of Stockbrokers in collaboration with Association of Stockbroking Houses of Nigeria and the Association of Issuing Houses of Nigeria, said it was heartening to note that things are really looking up for the pension scheme thus far.

    She said with more than 21 pension fund administrators and over 6.3 million contributors nationwide, the pension scheme holds a lot of promise as a major source of socio-economic development.

    “Payment of pension under the contributing pension scheme is now prompt and consistent since 2007. So far, over 6.3 million contributors have been registered into the scheme since its inception.”

    While noting that the Pension Reform Act 2004 was not perfect, she however, said the re-enacted Pension Reform act, 2014, has been designed in such a way to cover those in the public and private sub-sector.

    The PenCom boss, who was represented by Mr. Olulana Olayemi, also hinted of plans by the Commission to partner with investors in the capital market with a view to developing the sector.

    According to her, pension fund is very important in view of the fact that it produces long-term funds for the capital market.

    PenCom, she said, would come out with useful regulations to support investment windows within the market.

    The capital market operators, she maintained, should be able to come up with new products that will make use of pension assets.

    “On our part, we will come with risk acceptance criteria to guide the process. We would be very flexible. This is just to show the extent we are willing to go to support capital market,” she stressed.

  • Discount Houses’ assets, liabilities rise 20% to N187b

    Discount Houses’ assets, liabilities rise 20% to N187b

    The  total assets and liabilities of discount houses stood at N187 billion in October, showing an increase of 20.4 per cent above the level at end-September last year, a Central Bank of Nigeria (CBN) report on the subsector has shown.

    The development was accounted for, largely, by the 43.5 and 24.9 per cent rise in claims on banks and claims on the Federal Government, respectively.

    Correspondingly, the increase in total liabilities was attributed, largely, to the 66.4 and 29.5 per cent rise in borrowings and money-at-call, respectively.

    It said discount houses’ investment in Federal Government securities of less than 91-day maturity rose to N69.0 billion and accounted for 45.7 per cent of their total liabilities.

    At that level, discount houses’ investment in Nigeria Treasury Bills rose by 31.1 per cent above the level at the end of the preceding month.

    Thus, investment in Federal Government securities was 14.3 percentage points below the prescribed minimum level of 60 per cent. Total borrowing and amount owed by the discount houses was N58.4 billion, while their capital and reserves amounted to N28.6 billion.

    CBN data indicated that growth in the key monetary aggregate contracted in October 2014. On month-on-month basis, broad money (M2) fell by 1.5 per cent, in contrast to the growth of 2.7 per cent in the preceding month.

    The development reflected the 9.1 per cent fall in foreign asset net of the banking system, which more than offset the effects of the 0.9 and 4.1 per cent growth in domestic credit (net) and other assets (net) of the banking system, respectively.

    Similarly, narrow money supply (M1) declined by 1.5 per cent below the level at the end of the preceding month due to the 4.6 and 0.7 per cent fall in its currency and demand deposit components, respectively. Over the level at end-December 2013, however, M2 grew by 4.2 per cent. Reserve money (RM) rose by 4.0 per cent at the end of the review month and was below the quarterly benchmark.

    Available data indicated mixed developments in banks deposit and lending rates during the review month. The seven- day and 12-month deposit rate fell from 4.54 and 9.31 per cent to 4.43 and 9.23 per cent, respectively, while the average savings deposit rate remained at 3.43 per cent same as in the preceding month.

  • Conduct Bureau directs Fayemi, others to declare assets

    Conduct Bureau directs Fayemi, others to declare assets

    Director, Code of Conduct Bureau in Ekiti State, Mr. Akinfolarin Feyisola,  has directed Governor Kayode Fayemi to declare his “end of tenure assets” unfailingly before the expiration of his tenure.

    Feyisola, who spoke with the News Agency of Nigeria (NAN) in Ado-Ekiti yesterday, said the directive also affected the outgoing deputy governor and other political office-holders.

    He said all the affected public officers had been duly informed.

    The bureau chief said it was mandatory for every political office-holderto declare their assets when coming and leaving office.

    He added that defaulters would be dragged before the Code of Conduct Tribunal for contravening the law.

    According to him, some of the officers had started collecting the assets declaration forms after receiving the reminder of the constitutional provision.

    The director said the current closure of all courts in the state was a challenge for those who had filled their forms, but have nowhere to swear affidavit or do other court processes.

    Feyisola advised those who are yet to collect or complete their assets forms to do so immediately, while awaiting the re-opening of the courts.

  • Pension assets hit N4.41tr

    Pension assets hit N4.41tr

    The pension fund assets under the management of the National Pension Commission (PenCom) hit N4.41 trillion as at last June.

    The figure was obtained by The Nation from the National Pension Commission (PenCom).

    In a report titled, ‘Summary of Pension Fund Assets as at June 31, 2014,’ PenCom stated that there  was a 2.04 per cent increase from the N4.32 trillion total assets recorded in May, this year.

    Of the amount, Pension Fund Administrators (PFAs) have invested N2.63 trillion in Federal Government Securities, accounting for 59.53 per cent of the total assets.

    A break down showed that N2.04 trillion was invested in FGN Bonds and N587.66 billion was committed to Treasury Bills.

    In the period under review, the PFAs, however, traded a volume of Domestic Ordinary Shares of N637.84 billion and Foreign Ordinary Shares of N55.86 billion.

    They bought State Government Securities of N187.55 billion and Corporate Debt Securities of N82.92 billion.

    They also invested N1.24 billion in Supra National Bonds, N527.42 in Local Money Market and N496, 000 in Foreign Money Market.

    Similarly, a total of N228.71 billion was invested in the Real Estate Properties accounting for 5.18 per cent of the total pension assets.

    They had a total of N46 billion in cash and other assets during the period under review.

    Meanwhile, the PFAs investment in May showed that total trade on FGN Securities was N2.59 trillion out of which N1.98 trillion was invested in FGN Bonds and N609.38 billion in Treasury Bills.

    Also in May, they invested N615.31 billion in Domestic Ordinary Shares, N54.82 billion in Foreign Ordinary Shares, N190.85 billion in State Government Securities, N78 billion in Corpoprate Debt Securities, N1.23 billion in Supra National Bonds, N496.25 billion Local Money Market and N813, 000 in Foreign Money Market Securities.

    The PFAs invested N228.33 billion in the real estate and N7.5 billion in Private Equities, with cash and other assets put at N42.99 billion.

  • Oando pays $1.5b for ConocoPhillips’ assets

    Oando pays $1.5b for ConocoPhillips’ assets

    Oando Energy Resources Incorporated (OER), the exploration and production arm of Oando Plc, yesterday paid $1.5 billion for the acquisition of the divested ConocoPhillips’ upstream’s  oil and gas assets in Nigeria.

    The completion of the landmark transaction, acording to the firm, brings to a close the deal, which has been on the table since 2012, when ConocoPhillips’ announced it decision to pull out of its upstream operations in Nigeria.

    With the conclusion of the  deal, Oando becomes the owner of ConocoPhillips’ 20 per cent non-operating interests in onshore assets, including oil blocks in oil mining leases (OMLs) 60, 61, 62, and 63.

    Its ownership also extends to related infrastructure and facilities in the Joint Venture in which Nigerian Agip Oil Company Limited,  holds 20 per cent and the Nigerian National Petroleum Corporation 60 per cent.

    The related infrastructure and facilities include 40 discovered oil and gas fields, of which 24 are currently producing, 12 production stations, approximately 1,490 km of pipelines, three gas processing plants, the Brass River Oil Terminal, and the Kwale-Okpai 480 Mw combined cycle gas-fired independent power plant.

    Also, ConocoPhillips’ 95 per cent operating interest in OML 131 and 20 per cent non-operating interest in oil prospecting licence (OPL) 214, converted to OML 145 last month, will be fully  transferred to Oando.

    Other companies in the Joint Venture asset (OML 145) include ExxonMobil (20 per cent and operator), Chevron (20 per cent), Svenska (20 per cent), Nigerian Petroleum Development Company (15 per cent) and Sasol (5 per cent).

    Oando also said that through this transaction, OER will indirectly own all of the issued share capital of ConocoPhillips in Nigeria effective January 1, 2012, which translates to the date of the transaction.

    Oando said the total reserves and associated resources in the deal,  including proved, plus probable reserves, amount to about of 211.6 million barrels of oil equivalent (MMboe), adding that the transaction represents a significant opportunity for OER to create scale and significant value for its shareholders.

    It noted that OER’s sales production from the onshore assets, averaged 36,494 barrels of oil equivalent per day (boe/d) in 2013 and 39,266 boe/d in the first half of 2014.

    Oando said: “Upon completion of the transaction, OER will be positioned as one of the leading E&P players in the Nigerian oil & gas sector, as measured by end-2013 proved plus probable reserves of 230.6 MMboe.

    “The transaction was financed with an approximate 50/50 debt-equity ratio and is immediately cash generative and will contribute significantly to the cashflows of the company.

    “This transaction represents a transformational leap forward for our company and is in keeping with our overall strategy to grow our portfolio of Nigerian-based assets by focusing on those opportunities that deliver high quality growth in reserves and production,” said Pade Durotoye, Chief Executive Officer of OER.

    “Our management team is familiar with these assets and possess the managerial experience and technical expertise necessary to unlock their value for our shareholders,” he added.

    The Chairman, OER, Mr. Wale Tinubu, said: “We believe in the significant potential that the Nigerian oil and gas industry holds and are privileged to play a pivotal role in its consolidation, growth and development. We will continue to seek strategic opportunities that provide a platform for enhanced growth and value creation for our stakeholders.”

  • Leadway Assurance assets hit N101b

    Leadway Assurance assets hit N101b

    Leadway Assurance Company Limited has grown its  assets hitting N101.2 billion at the end of the 2013 financial year from the N68.8 billion recorded in the previous year representing a 47 per cent increase.

    The firm also paid claims in excess of N10.9 billion, a 51 per cent increase from the N7.2 billion record of 2012.

    Its Chairman, Mallam Umar Yahaya, made this known at the company’s 42nd Annual General Meeting in Lagos.

    He said the N10.9 billion claims payout is continuing evidence of the promise that the company has kept to its customers over the years.

    He said though 2013 figures are still emerging, the firm had  remained the single highest claims’ paying company in the industry, adding that it also closed the year with a balance sheet size that remained strong at N97.1billion in 2013 with tradeable reserves (insurance funds) of N49.7 billion, currently the highest in the insurance industry.

    He said: “Competition remains rife within the insurance industry with key dynamic players challenging and changing the way we do business and putting us on our heels not only to consolidate, but also to surpass our current achievements if we are to stay ahead in 2014.”

    “We have positioned ourselves to benefit from the National Insurance Commission (NAICOM)’s market development restructuring initiative (MDRI) following the release of operational guidelines on micro-insurance and have started rolling out new products while extending our markets through new channels in order to take advantage of emerging trends and compete favourably with numerous competitors in the industry.”

    Apart from the parent company, Leadway Assurance Company Limited, other companies in the Group include Leadway Capital and Trusts Limited, Leadway Hotels Limited and Leadway Properties and Investments.

  • ‘$100b pension assets feasible’

    The $100 billion (N16 trillion) pension asset target set by the Federal Government will be realised in less than 20 years.

    Managing Director of UBA Pensions Custodian Limited,  Bayo Yusuf, who spoke at the just concluded World Pension Summit, Africa Special in Abuja, said the government’s set target will be realised before the set date with the absorption of the informal sector into the industry

    He said: “The informal sector has about 17.6 million employers with about 43 million employees. The pension industry has been growing at a rate of about 30 per cent without contributions from the informal sector. So imagine the type of growth we would record if this sector is brought into the industry.”

    UBA Pensions he said, has commenced the digitalisation of pension payments to help streamline payment procedures, as well as ensure prompt collection of pension benefits.

    Yusuf said the number of Retirement Savings Account (RSAs) is growing. “Right now we are just six million RSAs and we are talking of bringing the informal sector into it.

    “So we are working with the banks in such a way that for the informal sector, with your phones, you can remit your pension contribution. You don’t need to go to the bank. What this means is that technology is going to be a major game changer in pension administration in the few months and years to come,” he said.

    He also said the firm  pays  N3.5 billion monthly through Pension Funds Administrators (PFAs) to settle 25,000 retires across the country.

     

  • Banks may grow assets to $168b, says KPMG

    Banks may grow assets to $168b, says KPMG

    Nigeria’s banking sector is expected to grow to over $168 billion by 2015, a KPMG report has said. The sector was worth $117 billion in 2011, a Customer Service report by the global auditing firm said.

    The report said that while Nigeria may be Africa’s most populous country, only about 20 per cent of the population is banked and two-thirds have never been banked at all.

    KPMG said the sector has recently experienced a number of regulatory changes including a repeal of universal banking licences and the promulgation of more stringent regulations by the Central Bank of Nigeria (CBN) which was aimed at reducing soaring books of non-performing loans and stamp out severe breaches of corporate governance.

    “However, with the establishment of the Asset Management Company of Nigeria (AMCON) to purchase toxic assets of banks and recapitalise troubled banks, some stability has returned to the sector,” it said.

    This development made the leading rating agency Standard & Poor’s (S&P), to upgrade the sector in 2012 to a positive outlook due to the country’s improved asset quality, capitalisation and corporate governance.

    The report posted on the firm’s website said with Automated Teller Machines (ATMs) becoming almost ubiquitous in the cities, it was not surprising that it had become the fastest growing channel in recent years. “Almost eight in 10 customers surveyed use the ATM and nearly two thirds of these people visit an ATM on a weekly basis with cash withdrawal and balance enquiry amongst the most common transactions customers perform via the ATM,” it said.

    However, it said that despite the proliferation of new channels in recent years, adoption of other alternate channels is still comparatively low.

    It also said very few respondents saying they use internet banking (seven per cent), Point of Sale (six per cent), telephone banking (five per cent) and mobile payments (two per cent). Of the respondents that had used internet banking, one- third were private sector employees and 15 per cent, were students.

  • Court faults EFCC on seizure of suspect’s assets

    THE Federal High Court in Abuja has held that the Economic and Financial Crimes Commission (EFCC) was wrong in confiscating two luxury cars belonging to a suspect.

    Justice Elvis Chukwu, in a judgment, held that the EFCC acted illegally in seizing the vehicles belonging to a former presidential candidate and National Chairman of the African Liberation Party (ALP), Dr. Emmanuel Osita Okereke, without a court order.

    The judge ordered the commission to release both cars.

    The EFCC had on January 23 this year, arrested Okereke, also a former head of the now disbanded taskforce against unlawful importation and smuggling of goods, small arms, ammunition and light weapons, on suspicion of alleged criminal conduct.

    His two vehicles – Toyota Land Cruiser SUV with registration No. FE 03 ABJ and a Toyota Hilux pickup with registration number FE O16 ABJ – were confiscated by the EFCC.

    Although he regained freedom three days later, on January 25, the EFCC held on to his cars, a development that compelled him to sue.

    In the fundamental rights enforcement suit, Okereke challenged his undue detention and the continued seizure of his vehicles.

    He said both actions by the EFCC violated his rights as guaranteed under Sections 35 and 44 of the Constitution.

    Okereke accused the EFCC of sponsoring publications in the media to smear his image and brand him a rogue.

    He sought a compensation of N5million against the commission.

    In its counter argument, the EFCC denied any wrong doing.

    It argued that the plaintiff was invited for questioning upon reasonable suspicion of his alleged involvement in criminal activities.

    The EFCC denied unduly detaining the plaintiff. It said he was granted bail the same day he was arrested, but failed to meet his bail conditions.

    The commission argued that a detainee’s inability to regain freedom on time, owing to his/her inability to perfect a bail granted him/her could not amount to undue detention.

    EFCC argued that it was within its statutory powers to invite a suspect for questioning upon reasonable suspicion. It said no court could restrain it from exercising such powers.

    It denied sponsoring any media publications against the plaintiff.

    In the judgment, Justice Chukwu declined to declare the Okereke’s arrest as unlawful as canvassed by the plaintiff. He agreed with the EFCC that having been granted bail, the plaintiff’s failure to perfect the bail on time could not be termed illegal detention.

    The Judge upheld EFCC’s powers to arrest and seize properties of any Nigerian upon reasonable suspicion of having committed a crime.

    He however held that in this case, the EFCC failed to establish that the two cars seized from the plaintiff were products of crimes.

    The Judge held that since the commission was yet to establish that the plaintiff has committed any crime, particularly in relation to the two cars, there was no basis for their continued seizure especially without a court order.

    “I agreed that EFCC, as an organ established by law has statutory powers to make arrest. The point must be made here that such arrest can only be based on reasonable suspicious that a crime has been committed”.

    “It must also be stated that EFCC has no power to embark on endless seizure of properties of citizens as such could amount to infringements on their right to own properties,”the judge held.

    he further held that properties of anybody, including suspects in an alleged crime, could only be lawfully confiscated upon an order of a competent law court.

    Judge Chukwu the alleged offending publications against the plaintiff, but declined to award monetary compensation against EFCC.

    The Judge held that the Plaintiff failed to prove that the EFCC actually sponsored the alleged malicious publication.

    He held that the plaintiff was at liberty to sue any of the media houses for libel.

     

  • ‘Ex-Delta governor has no hidden assets in Oando’

    ‘Ex-Delta governor has no hidden assets in Oando’

    Former Governor of Delta State James Ibori has no hidden assets in Oando Plc, the company said.

    It said the ex-governor has insignificant shares in it and it has not been involved in money laundering.

    Its Corporate Communications Manager, Alero Balogun, said the company is a publicly traded one, therefore, the management doesn’t control transactions on the floor of the stock exchange.

    She said: “We state categorically that Mr. James Ibori does not own ‘a large part of Oando’ and that this statement is incorrect and misleading. Oando is a publicly traded company listed on the Nigerian and Johannesburg Stock Exchanges and does not and cannot control the trading in its securities on the floor of the respective exchanges.

    “Based on our current shareholding register, Mr. James Ibori’s shareholding stands at 443 shares out of a total issued and paid up share capital of 6.8 billion ordinary shares, which is clearly insignificant, and cannot be considered as ‘a large part of Oando.”

    Oando also stated that “it does accept that sometime in 2004, in the normal course of its business, it sold some of its foreign exchange earnings for Naira and the recipient of the US Dollars was a company which has now turned out to be one controlled by James Ibori. At the time of the transaction, this information was unknown to Oando. The total amount was US$2.7 million made in three separate transactions over a period of about seven months. This amount was insignificant considering the company’s turnover of approximately US$800million in 2004.

    “The above constitutes the only transactions between Oando and any company controlled by Mr. Ibori. Consequently, Oando cannot be described as a company where James Ibori has hidden assets as a result of these foreign exchange transactions.”

    Commenting on the statements made in court, Andrew Baillie QC, counsel representing Oando also stated outside the courtroom: “It is unfortunate that our client has been dragged into these proceedings. There is no suggestion from the prosecution of any wrongdoing or involvement in wrongdoing on the part of Oando.”

    It said that Ibori, who governed Delta State from 1999 to 2007 and influenced national politics, was jailed for 13 years in Britain after pleading guilty in February 2012 to 10 counts of fraud and money-laundering worth 50 million pounds ($79 million).

    A three-week confiscation hearing began at London’s Southwark Crown Court yesterday during which prosecutors will present evidence of Ibori’s assets and seek court orders to have them seized. Defence lawyers will dispute the prosecution case.