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Tag: Dividends

  • President asks governors to deliver more dividends

    President asks governors to deliver more dividends

    Governors elected on the platform of the All Progressives Congress (APC)  were yesterday challenged by  the president to intensify efforts in the delivering of dividends of democracy.

    The economy is stabilizing but many Nigerians are yet to feel its impact, President Bola Ahmed Tinubu declared.

    It was at the 14th National Executive Committee (NEC) meeting of the APC at the State House Conference Centre in Abuja.

     President Tinubu emphasised that governance must translate into real change for ordinary citizens.

    “Nigerians are still complaining at the grassroots. To you the governors, you have to wet the grass more and lead the way in delivering progressive change to Nigerians. May God bless our democracy and give us more fertile lands”, the President declared.

    He assured members of the party that the national economy, though recently battered, is now on the path to sustained growth and resilience.

    Read Also: CBN pauses dividends, bonuses for select banks in new stability measures

    “I thank all of you. Outside there, it is not easy to navigate the stormy waters of economic instability. Now that the economy is stabilised, no other fear for the country except upward movement and sustained growth, I can assure you,” he said.

    Addressing the nation’s security situation, President Tinubu acknowledged progress but called for continued vigilance.

    “Thousands of terrorists and bandits have been neutralised, and you could see that the fear is going down. But we still have to be very serious, vigilant and make sure that we put additional investment in our people, retain our people and be accommodating and be serious about security in the country,” he stated.

    The President also  reinforced the party’s open-door policy, welcoming recent high-profile defections into the APC.

    “We need to invest more, and that is about our party. We will continue to grow. Once again, I welcome Governor Umo Eno of Akwa Ibom and Governor Sheriff Oborevwori of Delta and other political leaders who have joined us. Our doors remain open,” he said.

    He congratulated Senator Monday Okpebholo of Edo State on the Supreme Court affirmation of his candidacy, noting his spirited reaction to the court’s judgment.

    “We saw his dancing steps after the judgment. We will continue to work with you,” Tinubu said, also lauding the recent launch of the revitalised Edo Line Transport Company as a promising initiative.

    The President expressed appreciation for the confidence reposed in him by party leaders and reiterated the importance of grassroots mobilisation.

    “I am deeply grateful for the confidence vote expressed today and the ones already expressed at the zonal chapters to meet regularly to strengthen our grassroots mobilisation and unity. We need to do that,” he said.

    On food security, Tinubu pledged that his administration would remain focused on achieving a sovereign food guarantee for the nation.

    “Those who are working with me to achieve sovereign food guarantee for our country, we will continue to work hard for Nigerians and listen to all of you to achieve the expected goals of this country,” he said.

  • We’ve seen democracy dividends, Kwara chief tells minister

    The Baale (community leader) of Bode Saa’du, Moro Local Government Area, Kwara State, Barrister Bola Yusuf, has hailed the Federal Government for reconstructing the Ilorin-Jebba Road, saying the road has opened up the area to social and economic activities.

    Yusuf gave the commendation in Bode Saa’du, a town on the newly-constructed single carriage way, yesterday, when the Minister of Information and Culture, Alhaji Lai Mohammed, inspected the construction of the Ilorin-Jebba-Mokwa-Birnin Gwari-Kaduna Road.

    The community leader said: “We are indeed very grateful to the government. We cannot over-emphasise the importance of this road.

    “There is no gainsaying that it has impacted on the economy and everything. When it was not done, it affected our people.

    “Now that it has been done, every Nigerian who passes this road has kind words to say to the government.

    “We have tasted and are still tasting the dividends of democracy, and it is our trust in God that it will continue by the special grace of God.”

    The Ba’ale recalled that the deplorable state of the road, a key arterial road linking the South-West and the northern parts of the country, had forced a lot of residents to relocate to other places.

    “Our market closed down because people were not secured and they could not cope. There is a big cattle market here and we have our local market here, but people could not just do anything.

    “It affected everything and it could take you weeks to travel across the road. It was a terrible thing and people were moving out of this area,” he said.

    Yusuf said the reconstruction of the road has now reduced travelling time from Ilorin to Jebba from four days to about two hours.

    In his remarks, the minister said until the present administration came into office, the Ilorin-Jebba Road was a total failure, adding: “Work commenced in 2014, and by the time this administration came it was only 15.9 per cent completed. As at today, it is 100 per cent completed. I think this is very significant.”

    The Minister said the present administration has chosen to invest in critical infrastructure to revamp the economy instead of sharing money to a few individuals.

    “Rather than put money in the pockets of certain individuals, government decided to put money in infrastructure, which will impact positively on the lives of everyone.

    “This government is not distracted; it is focused on improving infrastructure in Nigeria and actually, this is the essence of this kind of tour.

    “We are not just talking, we are showcasing,” he said.

    Alhaji Mohammed said the government is convinced that when it provides the critical infrastructure, the country will be on the path to greatness.

    Also speaking, the Federal Controller of Works in Kwara State, Mr. Atitebi Wasiu, said the Ilorin-Jebba Road is part of the Trans-Saharan road from Lagos to Algiers in Algeria, and cuts through West Africa.

    He said the 93.6km Ilorin-Jebba Road, which was abandoned for about 10 years due to its deplorable condition, now records daily traffic of about 7,500 vehicles, including  heavy duty trucks.

    But the Controller assured that the road was well constructed with a lifespan of at least 20 years.

    On the Jebba-Mokwa Section, the Resident Engineer in Niger State, Mr. Samuel Sumango, who represented the Federal Controller of Works in the state, said 38 failed portions of the road, including the construction of double cell culverts through the Ecological Fund, had been rehabilitated.

    “This road was terribly bad to the point that some vehicles spent one or two weeks, some of them tumbled as they were going. It was a terrible road. But we thank God now. This is the handiwork of this very administration,” he said.

    Mr. Sumango said the Tatabu Bridge, which failed and practically cut off the South West and the Northern parts of the country on that axis, was rebuilt within one year and reinforced to a dual carriage.

    Since kick-starting a nationwide tour of federal government infrastructural projects in May 2018, the Minister has inspected about 10 Federal Government projects, including the Lagos-Ibadan Standard Gauge Rail Line, Lagos-Ibadan, Oyo-Ogbomoso and Enugu-Port Harcourt Expressways, and the Second Niger Bridge.

  • Law Union and Rock declares dividends 

    Law Union & Rock Insurance Plc, one of the leading general insurance companies in the country, has paid dividend to its shareholders despite the economic challenge in the country in 2017.

    Its Chairman, Mr. Remi Babalola made this known at the company’s 49th Annual General Meeting at Onikan, Lagos.

    He stated that the company’s profitability grew by 66.8 per cent, adding that it recorded good performance in 2017 with eight per cent growth in its top line over the figure from the previous year.

    He said:“A significant contribution to the profit came from the company’s investment income while its Gross Premium written stood at N4.252 billion compared to N3.936 billion recorded in 2016. Profit before tax of N1.099 billion was achieved compared to N659 million recorded in 2016, which indicated a steady performance improvement of our company. Total assets grew by 16.9 per cent to N10.031 billion from N8.58 billion posted in 2016 financial year with a 28.6 per cent growth in shareholders’ funds from N5.03 billion to N6.47 billion.

    “The company also recorded a giant feat in its general reserves with retained earnings of N704 million from accumulated loss of N24 million recorded in 2016. In recognition of this performance, the company declared a cash dividend of 4 Kobo per share for the financial year.”

    Mr. Babalola said the company is stronger and liquid and will remain committed to meeting its obligations as they fall due.”

    The Chairman further presented the new Executive Director, Technical/Operations, Mr Olasupo Sogelola and Mr. Kunle Aluko, a non-executive director to the shareholders. Both appointment have been approved by the NAICOM.

    Its Managing Director, Mr. Jide Orimolade said the company will not relent in delivery of the best service to the customers.

    “The loyalty of the customers was very instrumental to the consistent growth of the company’s topline in the past few years, which has enabled it to eliminate its accumulated loss and cross to a positive retained earnings in 2017,”Orimolade said.

    Shareholders at the event were  happy as the three retiring directors -Mr. Babalola, Mr. Obinna Onunkwo and Mrs. Funmi Ekundayo were re-elected for another three years.

  • What’ll happen to over N100b unclaimed dividends?

    What’ll happen to over N100b unclaimed dividends?

    The rising portfolio of unclaimed dividends currently estimated at over N100billion has remained a source of worry to the regulatory bodies in the capital market, especially the Securities and Exchange Commission (SEC) which has devised means and ways to address the issue, reports Ibrahim Apekhade Yusuf

    One issue that has remained on the front burner of public discourse in recent times, especially amongst stakeholders in the capital market is the issue of unclaimed dividends.

    To address the problem frontally, the Securities and Exchange Commission few years ago had introduced e-payment system.

    Specifically, SEC set machinery in motion requesting all Registrars of public companies to return all unclaimed dividends, which have been in their custody for 15 months and above, to the paying companies with evidence of remittance expected to be filed with the Commission not later than June 30, 2015, yet not much was achieved with that.

    Subsequently, the apex regulatory body had two years ago stepped up efforts towards free dividend (e-dividend) registration with a deadline initially set for last December 2017, but was forced to extend it again to February 28, 2018.

    Justifying the new deadline, the Commission said the extension was part of its developmental and an effort to encourage more shareholders to key into the initiative.

    According to SEC, the review of the progress in the e-dividend registration exercise, after the December 31, 2017 deadline, showed that there was still a great influx of shareholders desirous of mandating their bank accounts for payment of dividends electronically. “In light of the foregoing, the SEC, as part of its developmental role, has extended the period for the free e-dividend registration exercise till February 28, 2018, to encourage more shareholders mandate their bank accounts.

    “Accordingly, shareholders that are yet to register should continue to approach their banks or registrars to mandate their accounts for the collection of their dividends electronically, including unclaimed dividends, not exceeding 12 years of issue,” the SEC stated.

    Acting Director General of SEC, Dr. Abdul Zubair, who made the announcement at a press briefing recently, enjoined all the investors who were yet to register to key in.

    He said “Such investors should continue to approach their banks or registrars, as usual to seamlessly mandate their bank accounts for the collection of their dividends electronically, including unclaimed dividends, not exceeding 12 years of issue.”

    Zubair also announced an extension of the forbearance window for multiple accounts consolidation to March 31, 2018.

    He said:  “With a view to encouraging many more investors to consolidate their multiple subscriptions into one account, the SEC wishes to announce an extension of the forbearance for multiple accounts till 31st March, 2018.

    “Accordingly, investors that bought shares of the same company during public offers, using different names, are allowed till 31st March, 2018 to continue to approach their stockbrokers or registrars to regularise their shareholdings, in line with SEC rules on customer identification. Thereafter, all shares not regularised shall be transferred, on trust, to the Capital Market Development Fund.”

    Thorny issues with e-dividend mandates

    The Securities and Exchange Commission, SEC, and Nigerian Stock Exchange, NSE, had few years ago begun the implementation of the Direct Cash Settlement (DCS) initiative. But the initiative may not have fared any better judging by the growing level of apathy from stockbrokers and investors.

    As to be expected shareholders have accused registrars of frustrating the electronic dividend (e-dividend) registration, by not implementing the e-divided mandate and merging of multiple accounts even after investors have registered for the e-dividend.

    Consequently, they requested that the SEC should allow continuation of the free e-dividend registration exercise, which closed effectively today, and merging of multiple accounts, claiming that most registrars do not have the capacity in terms of manpower and technology to meet the deadline.

    Modus of operandi of DCS

    While the e-dividend was introduced to address the increasing trend of unclaimed dividend in the capital market, the DCS was part of the ongoing initiatives introduced by SEC and NSE to protect investors and eliminate fraudulent activities in the Nigerian capital market.

    It took effect from January 4, 2016. It is the direct payment of proceed of sale of shares/securities into an investor’s nominated bank account. It is a process where cash proceeds from trades executed by stockbrokers on the Exchange settles directly into investors’ bank account.

    It starts when a client gives his broker the mandate to sell his or her shares. Once those shares are sold, payment is made directly into the client’s account. This is in contrast to the old practice where proceed from sale of shares securities is paid directly into the stockbroker’s account and stockbrokers then deduct transaction fees and remit the balance to the client’s account.

    Alleged conspiracy of registrars

    In the past there have been allegations that some operators, especially registrars do trade with the unclaimed dividends in their possession and looking at the quantum of the money available as unclaimed, the commission needs to discourage this act and reduce the amount of unclaimed dividends.

    Shedding light on this claim, a staff of SEC, who would not be named because he was not authorised to speak, said shareholders need to approach registers for their unclaimed dividends while the registrars are expected to carry out some verification exercise on the shareholders and reference the issue to the paying company who is now expected to release the dividend in question to the registrars for onward payment to the shareholder.

    However, speaking on the registrars’ side, the President of Council, Institute of Capital Market Registrars, Mr. Bayo Olugbemi said we should rather talk about how it affects the shareholders and not registrars.

    He said, SEC is the regulator and Registrars will comply but looking at the issue from the angle of contacting the payment company before shareholders can get paid will only amount to stressing the shareholders.

    Mr. Oderinde Taiwo, the National Coordinator of Proactive Shareholders Association of Nigeria, A member of World Federation of Investors speaking from the shareholders angle said the directive is not in the best interest of shareholders.

    Furthermore, Sir Sunny Nwosu the National Coordinator of Independent Shareholders Association of Nigeria also said it is very wrong and not in favour of minority shareholders. He further said a rule is a rule and a law is a law, SEC rule cannot supersede the law and concluded that he would lend his weight against such move from SEC.

    Lending credence to the foregoing, the President, Constance Shareholders Association, Shehu Mallam Mikail noted that the procedure for claiming dividends for deceased persons was most cumbersome such that interested parties are usually discouraged from pursuing their claims.

    “Actually, the procedure for claiming the dividend of the dead person is too stressful and cumbersome, and the next of kin might not even know how to process it. “It involves court process, and here in Nigeria, there are many delays, which may frustrate the next of kin to abandon the entire process, and this is part of the reason why there is still huge unclaimed dividend figure in the capital market.”

    Mounting criticisms against DCS

    While commenting on the DCS initiative, the Chairman, Progressive Shareholders Association of Nigeria,   PSAN, Mr. Boniface Okezie said, stockbrokers are not helping matter on this direct cash settlement. “They (stockbrokers) still prefer the indirect payment settlement. My recent transaction with them showed that they prefer the old system to the new system. They are supposed to inform me to supply my account details to key into the direct cash settlement, but they did not.

    “Also, the NSE and SEC need to carry along the entire stakeholders when introducing new measures and products to the market. There should be proper and enhanced enlightenment on this new initiative if its objectives are to be achieved. The NSE needs to up its game. In most cases, retail investors are ignored and are not involved on issues that affect the market.”

    Echoing similar sentiments, the National Coordinator, Proactive Shareholders Association of Nigeria, PROSAN, Mr. Oderinde Taiwo said, “The DCS initiative is good, but most local retail investors are not much aware of it let alone its benefits. The regulators, especially the NSE do not parley and regard us as major stakeholders. We are the ones that sustain the market when it crashed in 2008 because it is our own; we do not have alternative market, but the so called big investors (foreign and institutional) left the market for other markets. So, there is need for enhanced enlightenment by the regulators so that investors will key into this laudable initiative.”

    In the view of the Managing Director, APT Securities & Funds Limited, Mallam Kasimu Kurfi, said; “The Direct Cash Settlement still has a long way to go because most of our local investors want to have cash before or immediately after disposal of their sharers which the system does not allowed. Only few wait for the Transaction Date plus three working days (T+3days). There is need for more enlightenment.”

    On his part, Managing Director/CEO, High Cap Securities Limited, Mr. David Adonri said: “Direct cash settlement by CSCS for sales made by investors is wonderful development. It is still at its infancy of implementation but those who are already utilising it can attest to its numerous benefits. Shareholders are hereby encouraged to embrace and key into it without further delay.”

    In his own remarks, the spokesperson of Independent Shareholders Association of Nigeria, ISAN, Mr. Moses Igbrude said: “Direct cash settlement is a new initiative which all stakeholders need to support and pursue to logical conclusion. Registrars frustrating e-dividend Igbrude however noted that there are still problem with the implementation of the e-dividend initiatives, as registrars still post dividend warrants to shareholders even when they have completed the exercise. I think some registrars are having human and technology gaps.

    “When shareholders fill the e-dividend forms instead of posting it immediately they just dump it by the side of their table and later on they forget to affect it in shareholders accounts. So, SEC should carry out proper audit on the e-dividend registration. The exercise should be made to remain open rather than fixing deadline given some of the lapses identified.”

    In her remarks about the e-dividend registration, Chairperson of Pragmatic Shareholders Association of Nigeria, Mrs. Bisi Bakare said:” There have been several complaints from some of our shareholders on the e-divide registration. The exercise still have some hiccups as shareholders still get dividend warrants in their addresses both old and new. Even the merging of multiple accounts has not recorded the expected results. And for me as a person, I had an issue with the merging of my accounts. After complying with the registration processes, my accounts were yet to be merged as my registrar still posts dividend warrant to my old address. The regulators should take this matter serious with the registrars and deadline for any registration of e-dividend and merging of accounts should be removed; rather there should be continuous sensitisation.”

    NCMDF to the rescue

    It is instructive to note that the Nigerian Capital Market Development Fund, NCMDF is a new initiative by the Securities and Exchange, SEC, aimed at reducing or eradicating the rising unclaimed dividend by shareholders of quoted companies.

    Thoughts on NCMDF

    Expectedly, Nigerian shareholders continued to lend their support for the NCMDF initiative by SEC. According to Egbejiogu Chigozie, a businessman, “The seed funding coming from the Commission is laudable and showing its commitment to end unclaimed dividend. The problem is managing the fund; many shareholders believe that government agencies are not good at managing money. I am not so sure of what SEC’s role would be in this development Fund. Until we get the full detail of how it will be run, one cannot really say much.  Apparently, it is not good for investors to use fake names in investing in shares; it is my hope that with the Capital Market Development Fund, such practice would be eliminated. It is about time we begin to eliminate practices that will discourage both local and foreign investors from coming into our market.”

    In the view of Ebuka Benedict, an entrepreneur and shareholder, the NCMDF is a good initiative, provided it will be well managed.

    “The only issue is how the Fund would be managed and who is to be held accountable when it is mismanaged. I hope that the Board of this Fund should be occupied by people with integrity and track record. I hope with the existence of such Fund, investors will stop using fake names to buy shares, knowing that when caught such shares would be forfeited to the Fund. I think the Fund to be established by SEC is like a security measure against financial malpractice and it will also help to checkmate money-laundering in the capital market. Hope it will not be mismanaged.”

    Divergent view over NCMDF

    While commenting on SEC’s introduction of the Unclaimed Dividend Trust Fund, Gbenga Bamidele, a market analyst recalled that in the past such attempts were resisted by shareholders because of lack of trust in the management of public funds, thus he wondered what has changed thus far.

    Raising some posers, he asked, “Why is it that SEC is always interested in using shareholders money to develop the market?”

    Noting that the Commission receives allocations from the federal government, which should be enough to develop the market, Bamidele said, “The shareholders should be allowed to determine what happens to their money. I believe that the Companies and Allied Matters Act, CAMA settles the issue of unclaimed dividend. The SEC should concentrate on the area of market development and not interfering with shareholders’ money.”

    No cause for alarm

    According to Sammie Opeoluwa, a capital market analyst, it is pertinent to note that at the centre of the issue of unclaimed dividends is the problem of ignorance on the part of shareholders. “There is really no cause for alarm as far as the issue of unclaimed dividends is concerned. We need to educate investors at this time that their unclaimed dividends are safe and can still be claimed provided it is not up 12 years as stated in Section 385 of CAMA. Based on this SEC directive, shareholders still need to contact the affected registrars for their unclaimed dividends who will now refer the issue to the paying company after it has been duly verified that they have an outstanding dividend to claim before they eventually get paid.”

  • Expect dividends of democracy till end of my tenure – Aregbesola

    Expect dividends of democracy till end of my tenure – Aregbesola

    Osun State Governor, Rauf Aregbesola, yesterday assured the  people of the state of continued delivery of dividends of democracy till his last days in office. Speaking at the grand finale of Calisthenics competition to commemorate the 7th year anniversary of his administration at Osogbo Township Stadium, Aregbesola disclosed that 28,000 students have so far been trained for the Calisthenics display.

    According to him,  the exercise has improved the health, agility and mentality of the students. He said: “We introduced this programme in 2012 and we have so far trained 28,000 students. We are inculcating the spirit of unity, team work, hardworking in the lives of the students through Calisthenics. We are preparing them for a world beyond here.”

    The governor, who praised parents for their support for the programme, said the parents willingly bought the costumes for the students this year. He explained that the prizes given to the participants were to develop sporting facilities in their various schools. Osun Central senatorial district won the firs prize of N2 million while Osun West came second with a prize of N1 million.

    Read Also: Osun empowers 350,000 people with N15bn loan

     

     

  • Anchor declares dividends on 2016 accounts

    Shareholders of Anchor Insurance Company Limited have  approved a dividend payment of N3.6kobo per share in its financial year 2016.

    The shareholders approved the payment at the company’s 27th annual general meeting (AGM)  at the Le Meridian Ibom Hotel and Golf Resort in Uyo, the Akwa Ibom State capital.

    Chairman of the company, Dr. Elijah Akpan, stated that despite the  harsh economic situation  in the global and domestic environments, the company recorded growth in some key indices in the year ended December 31, 2016.

    He said the dividend payout is an indication of 12 per cent growth.

    He said the company experienced 11 per cent growth in profit after tax margin from N205 million in 2015 to N228 million in the year ended December 2016.

    He stressed that the growth was mainly attributable to improved efficiency in operations of the company and introduction of unique and acceptable insurance products backed with cutting-edge innovative technology.

    He said: “Its investment and other incomes grew by 16 per cent from N182 million in 2015 to N212 million in 2016. This is as a result of shrew investment operations and decisions. The company incurred claims of over N371 million while the underwriting result at the end of the year amounted to N1.013billion compared to approximated N965 million earned during the year ended December 2015 which amounted to 5.04 per cent in 2016.

    “The company total asset increased in 2016 by 6.5 per cent with an approximated total of 5.8billion compared to N5.4billion recorded in 2015 while its shareholders fund grew from N4.5 billion in 2015 to N4.7 billion in the year 2016 thus showing a 5.03 per cent growth in shareholders fund”.

    Akpan further stated  that the company is implementing her plans to improve her capital base through available instruments in the market  with introduction of improved insurance products, Retail and Micro Insurance, Property Investment and Leasing.

    The firm’s Managing Director, Adeduro Mayowa, added that the company is poised to develop and introduce more innovative insurance products following the launch of AnchorLoEIS into the insurance market with the aim of making the company the trailblazer while setting standard for others to follow in respect to non-generic insurance products.

  • Ortom promises dividends of democracy

    Ortom promises dividends of democracy

    Benue State Governor Samuel Ortom has assured the people that his government will provide democracy dividends to them.

    Ortom addressed youths at the Benue People’s House yesterday. They came to express their support for the anti-open grazing law and the governor’s return in 2019.

    He assured them he will continue to provide opportunities for the citizens to excel in agriculture and business.

    The governor, who thanked the youths for their orderly conduct, maintained that the anti-open grazing law has come to stay.

    According to him, the law is aimed at restoring peace between herdsmen and farmers, and not stopping anyone from staying in Benue.

    Anthony Adah, Dan Nyikwagh and Sunny Nyio, who led and spoke on behalf of the youths, told Ortom that after seeing his performance in the last two years, it became necessary for them to encourage him to run for a second term.

    They said youths will continue to support his policies, especially those aimed at protecting lives and property.

  • Ambode promises more dividends of democracy

    Ambode promises more dividends of democracy

    Lagos State Governor Akinwunmi Ambode has promised to provide more dividends of democracy to the citizens of the state. He made the promise during the Lagos at 50 celebration by the three local governments –Oshodi,Isolo and Ejigbo – which held at the Youth Centre, Ejigbo.

    Ambode, who was represented by his Special Adviser on Communication and Communities, Hon Kehinde Bamigbetan, said he would not let the people of the state down, adding that Lagos would cater for all, whether they are from the state or not.

    He said Lagos has come this far because of some good citizens of the state who are law-abiding, pay their taxes regularly, protect government’s properties and assist their neighbours.

    Ejigbo Local Council Government Area (LCDA) Sole Administrator Hon Ibrahim Adigun and his counterparts in Oshodi and Isolo were at the event. Adigun urged the people of Ejigbo on the need to be more obedient and be supportive of his administration, thanking for their assistance.

    The event was spiced with march-pasts by artisans, traditional dances by the Ibo Atilogun, masquerade displays, among others. The people of the LGAs wore a uniform dress specially  designed for the occasion.

  • Battle to recover $15b gas sales dividends begins

    Battle to recover $15b gas sales dividends begins

    DETECTIVES are probing the whereabouts of $15.8billion Nigeria Liquefied Natural Gas (NLNG) Limited dividends, The Nation learnt at the weekend.

    Under investigation by the Economic and Financial Crimes Commission (EFCC) are former Petroleum Resources Minister Diezani Alison-Madueke and some former officials of the Nigerian National Petroleum Corporation (NNPC) and the Nigerian Petroleum Development Company (NPDC), the upstream arm of NNPC in charge of oil exploration and production.

    Some ex-Managing Directors of NNPC, former NPDC bosses and past executive directors are being investigated.

    The EFCC stepped into the “missing” cash issue following the audit report of the Nigeria Extractive Industries Transparency Initiatives (NEITI).

    The March 2017 Policy Brief of NEITI claimed that its audit report indicated that “it is doubtful if the entire $15.8 billion due from 2000 to 2014 is still intact”.

    According to some official documents, the $15,822,713,000.00 dividends came from the NLNG between 2000 and 2014.

    The funds were not paid into the Consolidated Revenue Fund of the Federation or the Federation Account.

    But about US$7.85 billion out of the dividends was allegedly withdrawn in 2011 under the guise of funding the Brass LNG Project.

    Detectives are working on some clues that a huge chunk of the $7.85billion might have gone into the 2011 presidential election campaign of former President Goodluck Jonathan.

    A source in the anti-graft commission confirmed the probe, saying it is all to ascertain if any part of the money has been spent, whether such expenditure followed due process, and if the expenditure was for specified purposes.

    “Although the dividends accumulated over a period of 14 years, about $7.85billion was withdrawn from the NLNG Dividend Account in March 2011 for Brass LNG Project which payment ought to spread for five years,” the source said, adding that the ex-minister on 30th March 2011 sent a memo to Dr Jonathan that about $7.85billion be sourced from NLNG Dividend Account for Brass LNG Project.

    Said the source, who pleaded not to be named so as not to jeopardise the investigation: “Although the $7.85billion was to be sequestered for Brass LNG Project, it was allegedly spent in one swoop.

    “We are working on clues that the bulk of the $7.85billion might have been diverted into private hands or used for the 2011 presidential campaign of the ex-President.

    “Diezani and her collaborators in NNPC and NPDC allegedly violated NNPC Funding Plan, which made the ex-President to give approval, for the Brass LNG project.”

    The Brass project was to be funded over a period of five years as follows: Year One ($1.18b); Year Two ($1.57b); Year Three ($1.96b); Year Four ($1.96b) and Year Five ($1.18b). Total is $7.85 billion.

    “We want to probe the circumstances behind the withdrawal of $7.85 billion at once in 2011.  So far, about $1.15 billion was said to have been spent by NNPC, leaving a balance of $6.7 billion to be accounted for, the source said.

    Some shareholders, who have invested over $1 billion in Brass LNG Project, have become frustrated. Some oil majors, such as ConocoPhillips and Total, have pulled out of the project “because the Federal Government is not serious”.

    The source added: “At a point, NNPC scaled down its seconded staff to Brass Project from about 58 to 12.

    “As for the balance of the $15.8billion, this is why we are likely to interact with some past Managing Directors and Executive Directors of NNPC, and NPDC.”

    The Nation stumbled on Mrs Alison-Madueke’s letter to Dr Jonathan on the withdrawal of the $7.85 billion in 2011.

    The 30th March 2011 titled “Request for approval to use dividend from NLNG project to fund Brass LNG project” states:

    “Nigeria’s enormous gas reserves offer significant potential to build viable domestic gas based economy as well as take advantage of a vibrant export gas market. Following recent approvals by Your Excellency in respect of the domestic gas market, steady progress is being made in meeting gas supply to the power sector and stimulating the growth of gas based industries, such as petrochemicals, fertilizer.

    “The Brass LNG project was conceived in 2001 as a two-train plant of total capacity of 10 million tons per annum with provision for expansion. The plant will be located on the Brass Island adjacent to the AGIP oil terminal facilities.

    “The project is being promoted by NNPC (49%), AGIP (17%), Total (17%) and ConocoPhillips (17%). It is expected that gas will be supplied from the NNPC/Agip JV (4.7TCF), NNPC/Total JV (3.6TCF) and NNPC/Chevron JV (3.3TCF).

    “The estimated cost of the Brass LNG project is about $16bn of which NNPC equity contribution (49%) is $7.85bn.

    “The project has expended over $700m, mostly on the front-end engineering and design, early site works, project management. NNPC plans to divest a total of 19% of its equity; 9% to Strategic Investors (Itochu, SemSah, LNG Japan) and 5% each to Bayelsa and Rivers states, after FID.

    “The project has made steady progress towards an early Final Investment Decision (FID). Attached to this letter is a brief presentation on the progress made so far towards FID. In particular, it highlights the major issues that NNPC as an investor needs to address urgently towards an early FID.

    “For FID to be achieved, there are 5 key Conditions Precedent (CP), namely:  Closure of Engineering, Procurement and Construction (EPC) contracts Closure of Gas Supply and supporting Gas Supply Agreement (GSPA); Execution of Sales and Purchase Agreement (SPAs) and Financing Closure of Shipping arrangements

    “Prayer.  In the light of foregoing, His Excellency Mr. President is kindly requested to approve:

    1. That the dividends due NNPC from the NLNG project be sequestered and dedicated to fund the Brass LNG projected;
    2. b) That the estimated sum of US$7.85 billion NNPC equity contribution be sourced primarily from the NLNG dividend account and other sources as detailed in Table 1 above.”

    But in its March 2017 Policy Brief, NEITI said it was important for NNPC to explain what has become of the $15.8billion dividends.

    It said the “recovery of these funds will significantly enhance government’s fiscal position in the short term”.

    The Policy Brief said: “However, NEITI’s audits have revealed that until 2015, NNPC failed to remit the interests and dividends from NLNG to the Federation Account.  In those years (2000-2014) NLNG paid a total of $15.8 billion to NNPC, which NNPC acknowledged receiving but failed to remit to the Federation Account.

    The dividends from Nigeria’s investment in the NLNG are undoubtedly covered by clear constitutional provisions which prescribe that all revenue received by the Federation must be paid into the Consolidated Revenue Fund of the Federation.

    Section 80 (1) of the 1999 Constitution states: “All revenues or other moneys raised or received by the Federation (not being revenues or other moneys payable under this Constitution or any Act of the National Assembly into any other public fund of the Federation established for a specific purpose) shall be paid into and form one Consolidated Revenue Fund of the Federation”

    Also, Section 162 (1) of the 1999 Constitution states thus:

    “The Federation shall maintain a special account to be called “the Federation Account” into which shall be paid all revenues collected by the Government of the Federation, except the proceeds from the personal income tax of the personnel of the armed forces of the Federation, the Nigeria Police Force, the Ministry or department of government charged with responsibility for Foreign Affairs and the residents of the Federal Capital Territory, Abuja”

    “These sections of the Constitution are especially important because NNPC once stated that it had spent part of the NLNG dividends on gas projects. NNPC maintained that this was done in line with approvals from the Federal Government. The NNPC has also stated that it thought that the shareholdings were owned by the Federal Government and not the Federation.

    “However, it is doubtful if this alibi on lack of clarity on ownership can hold up to scrutiny. The NNPC is the joint venture partner with international oil companies on behalf of the Federation in all oil mining projects. NNPC also does all lifting for crude oil for the Federation. Can it now be said that revenue accruing from such lifting belongs to the Federal Government alone, because the NNPC is an agency of the Federal Government? Analogously, the NNPC holds shares in NLNG on behalf of the Federation and cannot possibly claim that such shareholding is for the Federal Government alone. It is also doubtful that even revenue belonging to the Federal Government can be expended without appropriation.”

  • Linkage assures shareholders of dividends

    Linkage Assurance Plc has assured its shareholders of dividends payment going forward.
    It’s Managing Director, Dr Pius Apere, made this known while responding to shareholders’questions at the Company’s 22nd Annual General Meeting (AGM) in Lagos.
    Apere, who said bad days are over for the company, said its future looks bright given the result of its restructuring, which is beginning to impact on its overall performance.
    He said: “We have got to the end of the tunnel where dividend will start coming. The figures from our 2016 unaudited accounts, plus expected dividend from investment would put smiles on the faces of shareholders.
    “The company has strengthened its human capital with new heads of department, while its marketing team has been beefed up with top flight insurance marketers and the results coming are fantastic.
    “We have gone past the time when we measure our performance based on gross premium, we are now measuring based on bottom line. Going forward, there will be an improved communication between our company and the shareholders so that all of us will keep pace with developments in the company.
    Speaking on the firm’s 2015 results, Chairman of the Company, John Eseimohkumoh said its gross premium grew by 24 per cent from N3.05 billion in 2014 to N3.79 billion while net premium rose 25 per cent to close N2.44 billion at the end of 2015.
    He said investment and other incomes rose by 26 per cent from N1.19 billion in 2014 to N1.50 billion.
    “Profit before tax also grew by 60 per cent from N580.85 million in 2014 to N929 million, while profit before tax closed at N512.24 million, a growth of 58 per cent.
    “Going forward, we are confident that that in spite of the uncertainties in the economy, the future is still bright. In line with our strategic roadmap we will continue the repositioning strategy aimed at transforming the company through a set of definitive strategic initiatives as enunciated in our growth plan,” he added.