Tag: Elumelu

  • Dangote, Elumelu, Ovia lose billions

    Dangote, Elumelu, Ovia lose billions

    •Naira devaluation, oil price crash take toll

    Nigeria’s super rich have lost billions of naira in their networth following the devaluation of the naira and the crash in oil price.

    Central Bank of Nigeria (CBN) Governor Godwin Emefiele, last month, announced a nearly 10 per cent devaluation of the Naira, after admitting that a plunge in world oil prices and dwindling dollar reserves were making it difficult to defend the value of the currency.

    The Naira is now trading at N187 to $1, compared to N165 last month. In dollar terms, the devaluation has knocked more than $40 billion off the value of Nigeria’s economy.

    According to a report in Forbes, Alhaji Aliko Dangote, Africa’s richest man, is the biggest loser among Nigeria’s richest people as the Naira’s slump and falling stock prices have erased more than $7.8 billion of his fortune. In February, FORBES locked him in with a $25bilion worth in its annual ranking of the World’s Billionaires. But as of market close on Tuesday, he’s worth $17.2 billion. More than half of the drop in his fortune has happened since early November. As of Nov. 7, Dangote was worth $21.6 billion, $4.4 billion more than now.

    Here’s why: The last few weeks have been a bit of a disaster for many companies listed on the Nigerian Stock Exchange. Several blue-chip stocks such as Dangote Cement, Zenith Bank, Transcorp and United Bank of Africa among several others have hit one-year-lows as a result of the fall in oil prices, a general uncertainty regarding the 2015 general elections, Central Bank regulatory headwinds, and weak earnings from large cap companies. These have all contributed toward putting naira-denominated assets including equities at risk

    “This is whipping up negative market sentiments as foreign and institutional investors such as pension funds who hold equity stakes in companies (due to their large cap and liquidity status) have mostly fled their positions,” says Ugodre Obi-Chukwu, a leading financial analyst and publisher of Nairametrics, a website that provides analysis and opinion about Nigerian stocks, investing, personal finance and the economy.

    Dangote Cement, Africa’s largest manufacturer of cement has shed close to 40% of its market value between the beginning of November and now. The company’s stock, which was trading at N215 ($1.15) at the beginning of November, is now valued at N165 (88 Cents) as at Monday.

    At the beginning of November, Dangote’s stake in the cement manufacturer was valued at more than $18 billion. It is now valued at $13.2 billion. Dangote has also lost more than $230 million in paper value within the same period on his stakes in publicly-traded Dangote Sugar, Dangote Flour, and National Salt Company of Nigeria. Between November (when FORBES published the list of Africa’s 50 Richest) and today, Dangote, has lost more than $4 billion in his net worth.

    After Dangote, the second biggest loser among Nigeria’s ultra-rich isTony Elumelu, the Chairman of Heirs Holdings, an investment company. Heirs Holdings, which is wholly-owned by Elumelu, is the controlling shareholder in Transcorp, a publicly-listed conglomerate with interests in power production, hotels and agriculture. Transcorp’s current market capitalization is now $700 million, down from $1.4 billion at the beginning of November. Heirs Holdings has lost an estimated $345 million in paper value on Transcorp, and its stake in the company as at Monday is now worth roughly $400 million, down from $700 million.

    Elumelu’s investments in other listed companies like UBA, Africa Prudential PLC and UBA Capital have shed a little over $27 million in value.

    Other big losers include Nigerian multi-millionaire banker Jim Ovia, a co-founder of Zenith Bank. The value of his stake in the financial services provider is $240 million as of late Monday, down from more than $350 million last month. He owns a 9% stake in the bank.

  • Elumelu: delayed passage of National  Health Bill stifling health sector

    Elumelu: delayed passage of National Health Bill stifling health sector

    The Chairman of the Federal Government Ministerial Committee on the Development of World-Class Hospitals and Diagnostic Centres, Tony Elumelu, said yesterday that the delay in the passage of the National Health Bill and the National Health Insurance Scheme (NHIS) bill was affecting the development of the health sector.

    He was briefing reporters after a meeting with President Goodluck Jonathan at the State House.

    Elumelu said lack of funds led to the non- completion of the 84 hospital projects across the country, which made it difficult to stop the movement of Nigerians to India, South Africa and other countries for medical care.

    He said: “We believe our people deserve good medical facilities, attention and care. However, our committee believes everyone should urge the National Assembly to pass the NHIS bill into law, as this will unlock a lot of opportunities in the health sector.

    “It will provide the much-needed effective demand of funding that will help the sector take off. If our lawmakers do not pass the NHIS bill, we won’t achieve much.”

    Elumelu went on: “As our legislators go back to their constituencies to seek election mandate, we should ask them to give us the National Health Bill and the NHIS Bill, which will help us progress.

    “We can set up modern facilities, if there is no money to make this sector attractive, it will collapse. I praise what the Minister of Agriculture has done. This is what the Health Minister is trying to do. We want to re-position the heath sector and make it commercially-viable.”

  • Elumelu addresses UN General Assembly

    Elumelu addresses UN General Assembly

    The United Nations (UN) General Assembly and Economic and Social Council (ECOSOC), on Wednesday, hosted the opening session of the 2014 Forum on Partnerships, titled: The Role of Partnerships in the Implementation of the Post-2015 Development Agenda.

    The event was attended by the UN Secretary General and the Presidents of the General Assembly and ECOSOC as well as all 193 representatives to the UN General Assembly.

    On the invitation of a panel, chaired by UN Secretary General Ban Ki-moon, the Chairman of Heirs Holdings and founder of the Tony Elumelu Foundation, Mr Tony Elumelu, gave the keynote address and outlined his views on the role of the private sector in the Post-2015 Development Agenda.

    He was the only speaker from the private sector to address the forum.

    Elumelu highlighted the importance of job creation and power generation to improve the lives of Africans and people all over the world.

  • Elumelu threatens to sue EFCC for ‘illegal detention’

    A House of Representatives member, Ndudi Elumelu, has threatened to sue the Economic and Financial Crimes Commission (EFCC) for detaining him and subsequently arraigning him for allegations of bribery in the $13.2 billion power probe.

    Elumelu, who represents Aniocha/Oshimili onstituency of Delta State, was on June 26 cleared of the charges and discharged and acquitted.

    He spoke with reporters in Onicha-Uku, Aniocha North, Delta State.

    The lawmaker blamed his travails on those indicted by the report.

    According to him, his committee rejected all attempts to be bribed to kill the report.

    Elumelu said his lawyers were studying the matter, adding that the anti-graft agency dented his image with the court proceedings.

    He said: “Since 2009 till date, if you own internet you would see a barrage of negative comments about the issue. So, I have asked my lawyers to actually sit down properly to look at the issue of us challenging why, in the first instance, I was brought before the court.

     

     

  • Maina, Elumelu, Lawan:  The haunted hunters

    Maina, Elumelu, Lawan: The haunted hunters

    Panels in Nigeria do not just help the government to distract, entomb or procrastinate; they also consume virtually everyone who has had the misfortune of heading them. The examples of Abdulrasheed Maina (Presidential Task Team on Pension Reform (PTTPR), Ndudi Elumelu (House of Representatives Committee on Power Sector Reforms), and Farouk Lawan (House of Representatives Ad Hoc Committee on Monitoring of Fuel Subsidy Regime) are pointers to the contradictions that afflict the body politic. There are a few less significant cases, and many more near misses. The recent Mallam Nuhu Ribadu panel (Petroleum Revenue Special Task Force), a red herring, escaped the fate of the first three panels by the skin of its teeth and probably by the combustible nature of the panel chairman’s personality.

    After many months of controversial manoeuvrings, Maina was last week declared wanted by the police on the instigation of the Senate which had summoned him to shed light on missing pension funds totalling some N195bn. The Maina Presidential Task Team was constituted about two years ago to investigate pension funds mismanagement and to sanitise and modernise the procedure for pension administration in the military, police, Department of State Security (DSS), customs, immigration, prison and pension office (CIPPO) and the Head of Service Pension Offices. However, presenting the Senate’s case against Maina, Senator Kabiru Gaya said: “…N195 billion pension fund is unaccounted for. In the head of service alone, N139 billion was released but N100 billion was paid out to pensioners. In the police service, N131 billion was paid in five years but only N88 billion was paid out, N44 billion is yet to be accounted for. This money belongs to the masses and it is expected that it should be accounted for.”

    Why Maina avoided the summons has not been fully explained by any official in the Task Team. But he was quite enthusiastic in declaiming late last year that the team had discovered earth-shaking facts on pension maladministration. As he put it exuberantly and perhaps exaggeratedly: “I want to tell you that what we have uncovered will surprise Nigerians. We have found that pension fund up to N3.3 trillion was stolen by the cabal and we are going to recover all the money…we have recovered about N221 billion and deleted 71,135 ghost pensioners from the civil service list…In addition N74 billion of the N181 billion discovered has been mopped up for utilization in the 2012 budget…We have conducted biometrics for 170,000 pensioners, established e-pension management system, pioneered the payment of pensioners in the Diaspora and introduced smart cards to eliminate physical verification of pensioners.” By the time he began to lyricise his team’s achievements, he had become a hunted and haunted man.

    But a national reputation is not secured upon the basis of one aberration. While the Senate was engaged in a cat-and-mouse game with Maina, with the latter still avoiding either arrest or imprisonment, Mr Ndudi Elumelu, a member of the House of Representatives, was left bewildered by how rapidly he transformed from hunter to hunted. It began with the late President Umaru Yar’Adua suggesting that his predecessor, Chief Olusegun Obasanjo, had spent some $10bn dollars on power projects without result. Soon, the House of Representatives also declared alarmingly that the Obasanjo government actually spent $16bn on power projects with little to show for it. No one knew nor bothered to verify how the legislators did their calculations. But the sound of $16bn was enough to send the country, which was asphyxiating under a minuscule 3000MW generation of electricity, into a deafening uproar.

    In 2008, Elumelu was put at the head of the national consensus to get its pound of flesh from the enraged power sector (not fuel subsidy) cabal, not minding the collateral damage. But before the panel was through with its assignment, an assignment that saw it stepping on giant toes and engaging in acerbic exchange with Obasanjo, stories alleging bribery and corruption against the panel and its chairman became rife. Words of encouragement from governors and sympathisers were sadly insufficient to exculpate Elumelu. He was not even allowed to present his report, having barely managed to complete the assignment without being hounded into jail. He eventually went to jail for about a month, and was tried for allegedly misappropriating some N5.2bn Rural Electrification Agency (REA) contracts. It was only last year that he was discharged and acquitted. As for the panel’s recommendations, a total of some 88, most were thrown out, and the surviving few inoculated against causing damage to anyone’s reputation. The shell-shocked Elumelu is today quietly chewing the cud in the legislature.

    If Maina is scurrying animatedly from one rathole to another to evade what his pursuers call capture, and Elumelu has become almost phlegmatic, swearing never again to be lured into any national assignment where he would step on toes, Farouk Lawan, another House of Representatives member, is dismayed by how quickly he has fallen and how numbed he has become. If Maina is as clever as his words and visage indicate, he will humour the furious legislators probing the pension scam and get away with nothing but fierce censure. Elumelu has become a safe ruminant and legislative wonk. He was badly beaten and bruised, but he is still perching on what looks like the moral high ground. This is not the case with Lawan. The petit legislator has been beaten insensate by sickening, short-range blows from the executive branch and one of its men Friday, the illustrious and undiscriminating Mr Femi Otedola.

    Lawan’s story is probably the most dramatic and pathetic since Nigeria began its troubling experimentation with parliamentary practices. Member of the House of Representatives since 1999, his star rising with each passing year, and his elocution, like his rich voice, deliberate, endearing and near as oratorical as anyone who is not an orator can get, Lawan seemed made for parliamentary jousting and destined for parliamentary glory. Not only was he leader of the so-called Integrity Group in the Reps, a label he and others in his group acquired when they battled former Speaker Patricia Etteh over corruption allegations, he inspired confidence in many Nigerians about his bona fides, and evoked an unquenchable ability to strive for his country’s glory. In April 2012, according to the prosecutor, he solicited for a $3m bribe from businessman Femi Otedola, and only managed to collect $620,000 of the sum before his luck ran out. The state will try to make the accusation stick; but Lawan will try his best to wriggle out of the net. There is little hope, however, that he will succeed.

    But Lawan’s troubles began when he was named chairman of the panel on fuel subsidy payments. The panel did the job with such public daring and flourish that Nigerians were glued to what they dubbed the subsidy opera. In the din, Lawan’s mellifluous voice and characteristic surefootedness, both of which belied his size, could be heard and seen distinctly, soothing wounded hearts and lifting broken spirits. But with the Otedola accusation, the once confident Lawan voice has given way to a hoary, feeble baritone, slower than usual, and many of his statements contradictory and clearly illogical. A court has remanded him in prison until his bail application can be heard later this week. After stalling for many months Lawan now probably feels subdued, disconsolate and haunted, broken in spirit as he is in body, and perhaps with not the faintest idea of a way out.

    Of the three gentlemen, Lawan is probably the worst hit. While the courts will be procedurally restrained by legal exigencies to assume his guilt, the public is less troubled by any consideration of conscience. Once Otedola went public, they had concluded there was no conceivable way of escape for the petit PDP legislator from Kano. More, the public sighs in frustration at the paradoxical jinx afflicting panels in these parts, and the seeming impossibility of finding one good man in government by whom we could swear, or failing that, one good man anywhere to probe the failure of government.

  • Tony Elumelu joins golden club

    Tony Elumelu joins golden club

    The rank of successful men and women in the golden age of 50 appears to be swelling by the day. Tayo Ayeni, the famous brains behind Skymit Motors, and PR guru, Yomi Badejo Okunsanya, only recently celebrated their 50th birthday in grand style.

    Now, a former Managing Director of the United Bank for Africa and Chairman, Heirs Holdings Limited, Tony Elemelu, is set to make his entry as he clocks 50 in few weeks. The social pulse is beating more quickly because it promises to be a memorable occasion.

    Upon his retirement from the UBA as managing director, Elumelu founded Heir Holdings and Tony Elumelu Foundation in order to continue to contribute his quota to the economic transformation of the African continent. Both organisations have been working to encourage and positively impact on Africa’s business leaders and entrepreneurs, including business students and young entrepreneurs and CEOs of multinational companies.

  • Elumelu Foundation names leadership director

    The Tony Elumelu Foundation has appointed Ms. Désirée Younge, a Sierra Leonean, as Director of Leadership and Entrepreneurship Development.

    Ms. Younge, according to a statement, has experience in philanthropy and impact investing having worked with Synergos Institute’s Global Philanthropists Circle, and Robin Hood Foundation in the United States.

    For the past three years, she has run her own US based philanthropic strategy advisory company working with philanthropists, not-for profit organisations, and businesses to help them strategically execute their philanthropic missions.

    “I am excited to join The Tony Elumelu Foundation, an African foundation that’s thinking about philanthropy from a non-traditional perspective, and finding innovative solutions to drive long-term economic and social impact to improve the capabilities, and showcase the untapped leadership potential of Africans,”said Ms. Younge.

    She joins The Tony Elumelu Foundation at an exciting time. Now starting its third year of operations, the Foundation, according to the statement, continues to pursue its mission of enhancing the competitiveness of the African private sector through a coordinated strategy of programmes, grants and impact investments. Some of the highlights include the rapidly expanding African Markets Internship Programme (AMIP), now planned for nine African countries, the launch of the Elumelu Legacy Prize Programme, the Blair Elumelu Fellows Programme in Liberia and Sierra Leone, the Elumelu Fellows Programme and the AllWorld Nigeria50. Grants include business development awards to pre-start up businesses in the Co-Creation Hub in Lagos, Nigeria, as well as funding for consultancies to examine agricultural and SME investment opportunities in Nigeria. Most recently, the Foundation made a significant impact investment, in a regional agricultural commodity exchange based in Kigali, Rwanda.

    “This is an exciting time for the Foundation as we head into our third year and continue to develop innovative initiatives and partnerships that address the continent’s business leadership and entrepreneurship needs,” said the Chief Executive Officer of the Tony Elumelu Foundation, Dr. Boer.

    “Ms. Younge’s extensive experience and knowledge will provide an invaluable asset to the Foundation. We are delighted to welcome her on board.”

    Tony Elumelu, Founder of the foundation, said: “These past two years have been an exciting journey. I am continually impressed by the innovative creativity of our team as well as the African entrepreneurs, business leaders and public sector enablers that we encounter through the work of the Foundation. Together, we are creating economic prosperity and social wealth for our African people from within.”

  • PHCN: FirstBank, Otedola, IBB, Elumelu bid $1.11b

    PHCN: FirstBank, Otedola, IBB, Elumelu bid $1.11b

    Berger, Nestoil, others among successful bidders 

    A MAJOR step in the battle for stable electricity was taken yesterday.

    Construction giant Julius Berger, First Bank, Transcorp and Forte Oil, owned by businessman Femi Otedola, are among the consortia of companies named as successful bidders for the unbundled Power Holding Company of Nigeria (PHCN) generation firms.

    Five of the six generation companies were put up for the bid. The sixth – Afam Generation Company – was excluded because non of the three companies that submitted bids for it was qualified.

    The six generation companies are part of the 18 firms in the unbundled PHCN – the power behomoth that has failed to take this country out of darkness.

    National Council on Privatisation (NCP) chair Mr. Atedo Peterside announced the result.

    The companies are located in Geregu, Ughelli, Sapele, Shiroro and Kainji.

    The Bureau of Public Enterprises (BPE) named a consortium, which includes Transcorp Nigeria Plc, as the highest bidder for the Ughelli Power Plc, with an offer of $300 million.

    The consortium of Transcorp and Wood Rock/Symbion Power/Medea/PSL/Thomasen emerged as the preferred bidder over Amperion Power Distribution Ltd and Feniks Electricity.

    Amperion, a consortium, which includes Forte Oil Plc, a petrol marketing firm with majority shares owned by Otedola, offered $252 million to emerge as reserve bidder.

    Symbion Power is a United States (U.S) electricity company, Medea is a Luxemburg-based engineering firm. PSL is an indigenous firm and Thomassen Services, an Oman engineering company.

    For Geregu Power Plant, a group known as Amperion Power Distribution Ltd, which includes Forte Oil Plc, won with a bid of 132 million.

    Other partners in Amperion include Guernsey, a company located in a United Kingdom (UK) protectorate in Europe and Shanghai Municipal Electric Power of China.

    For Sapele Power Plc, CMEC/Eurafric Energy JV, a consortium, which includes financial giant FirstBank Nigeria Plc, won the bid with an offer of $201 million.

    The reserved bidder for Sapele is a group comprising Julius Berger Nigeria, which offered $106.5 million above the reserve price of $106 million.

    North-South Power Company Ltd, with former Military President Gen. Ibrahim Babangida as a promoter, Niger State government as a stakeholder, won the bid for Shiroro Power Plant, offering $23.6 million.

    Other core investors in the company include indigenous firms XS Energy Ltd, BP Investment Ltd, Urban Shelter Ltd and Road Nigeria Plc.

    The “Shiroro Group’’ also has China International Water Electric and China Three Gorges Corporation, an electric power utility company.

    For Kainji, Mainstream Energy Solutions Ltd, a consortium which includes businessman Col. Sani Bello, and NIGELEC, a Niger Republic registered company, is the preferred bidder, with an offer of $50.7 million.

    The companies offered a total $1.119billion for the five companies.

    The eight firms that qualified for the five companies are: Amperion Power Distribution Company Limited (Geregu), Mainstream Energy Solutions Limited (Kainji), North-South Power Company Limited (Shiroro), Amperion Power Distribution Company Limited (Ughelli), Feniks Electricity Limited (Ughelli), Transcorp & Woodrock/ Symbion/ Medea/ PSL/ Thomassen (Ughelli), CMEC/Eurafric Energy JV (Sapele) and JBN-Nestoil Power Services Limited (Sapele).

    The NCP reminded Amperion Power Distribution Limited that the rules allow it to win only one generation company.

    Peterside said: “Out of the 23 bids that made it to the evaluation stage, 10 failed the first test of completeness and responsiveness. The remaining 13 bids were then subjected to full technical evaluation. Out of the 13 bids, eight scored the minimum of 75 per cent that was required to progress to the next stage. The bidders that scored 75 per cent and above were asked to submit the post-qualification bidders’ guarantee, following the approval of the evaluation results by NCP.

    “Officials of the Economic and Financial Crimes Commission (EFCC) and the Independent Corrupt Practices Commission (ICPC) also observed the entire process from bid submission to the conclusion of evaluation. They were, therefore, witnesses to the fact that all late-comers were turned back.”

    The NCP chairman said there was no controversy over the sale of generation plants located in Kainji and Shiroro in Kwara and Niger states.

    “Kainji and Shiroro are hydro assets; you cannot sell River Niger and you can only give a consensus to the people utilising it. So there is no controversy over the issue of hydro plants,” he said.

    Mr Obinna Okudo, Chief Executive Officer of Transcorp, told reporters that his company would “deliver optimum services to Nigerians.’’

    “We are going to let Nigerians know that a Nigerian company can lead a foremost Nigerian sector (electricity),’’ he said shortly after his company was announced as the preferred bidder for Ughelli.

    Director-General Bolanle Onagoruwa assured investors of NCP’s commitment to international best practice in the sale of the 17 PHCN successor companies.

    Onagoruwa said: “We wish to reaffirm that the National Council on Privatisation (NCP) will continue to ensure that electricity sector privatisation transactions are completed to the best of internationally accepted standards.

    “We have come so far and achieved so much since mid-2010 when this administration restarted the electricity sector reform programme.

    “With your support and with the strong desire to serve our patient and long-suffering citizens of Nigeria, we will continue to strive to achieve even more and ultimately succeed.’’