The Nation Newspaper

Tag: firms

  • Firm’s She Will Connect campaign yielding fruits

    World’s leading silicon innovator, Intel, has underscored the need for the girl-child to be empowered through technology, saying it will open avenues where their voices can easily be heard.

    Its Group Manager, Corporate Affairs, Babatunde Akinola, spoke while hosting female beneficiaries of  Intel’s ‘She Will Connect‘ (SWC) programme in Victoria Island, Lagos.

    The programme is aimed at reducing  gender gap all over the world through collaborations that would bring about an innovative combination of digital literacy training, online peer network and gender relevant content.

    Akinola observed that access to technology has opened a window of opportunities for women and the girl-child, noting that it is transforming their roles across the world.

    He explained that breaking the stereotypes on appropriate career paths for girls is critical to women’s economic empowerment.

    She reaffirmed Intel’s commitment to push for gender equality in the world of technology as well as equip young girls and women with digital literacy skills.

    “We started She Will Connect with a mission to empower five million girls in the next five years. This is the first year running and we are excited that the initiative is already yielding fruits among the beneficiaries present today,” Akinola said.

    Meanwhile, the programme’s Team also stopped at the Pastor Bimbo Odukoya Foundation (PBOF) Girl’s Home to train the girls on the use of computer and internet, using the Intel Easy Steps curriculum before heading to the cinema.

    Titilope Sonuga, She Will Connect ambassador, urged the girls to believe in their potential.

    “You can be whoever you want to be and your sex should not impede your career path. This is why we want more women to embrace technology, because technology is a liberator,” Sonuga said.

    One of the beneficiaries, Opeyemi Anifowose, a 26-year-old fashion designer and University of Ibadan undergraduate, expressed her gratitude to Intel for the initiative.

    “I participated in the training in May and since then, I have been applying what I learnt to my work. I now go online to research on latest trends in fashion designing and learn how to make them by myself,” Anifowose said.

    Coordinator of PBOF, Osasu Paul-Azino, said: “She Will Connect ties into our objective which is to rescue, empower and protect the rights of woman and the girl-child. It is important that we give a voice to them, and She Will Connect is doing so with technology empowerment.”

     

  • Eight firms get NERC’s licences for 1,648.25Mw

    Eight firms get NERC’s licences for 1,648.25Mw

    The Nigerian Electricity Regulatory Commission (NERC) yesterday licenced eight firms with a combined capacity to generate 1,648.25 megawatts (Mw) of electricity and a distribution company (DisCo).

    Head, Public Affairs Department, Dr. Usman Arabi in a statement, said the licensing took place at NERC’s headquarters in Abuja.

    The licences were a mixture of on-grid, off-grid, embedded generation and distribution of electricity. One of the licensees, Ossiomo Offistes and Utilities/ Ossiomo Power &Infrastructure, based in Edo State will engage in electricity distribution and in embedded generation of 55Mw gas power electricity.

    Another is the Anambra State Independent Power Generation Company Limited, an on-grid gas-fired plant has the capacity for  528Mw capacity. There is also  Cummins Power Generation, Nigeria Limited (NBC) Ikeja with a capacity for 3.5Mw off- grid. It also has licence for a 1.7Mw to serve A&P Foods, in Agege, Lagos.

    The licence to Sinosun Investment Limited, based in Jibiya, Kastina State is for an on-grid, solar power generation of 100Mw capacity. In the same vein, LR-Aaron Power Limited, located in Gwagalada has licence for 100Mw solar powered electricity generation.

    While Lafarge Africa Plc for an on-grid, gas-fired 260Mw in Ewekoro, Ogun State. For Azikel Power Limited, the on–grid licence is for 500Mw power plant, in Bayelsa State, Middle Band Solar One Limited from Kogi State, was granted an on-grid licence for 100Mw.

    Only one firm got distribution licence while there are six gas-fired generation licence with a combined electricity capacity of 1, 348Mw, as well as three solar generations for a combined capacity of 300 Mw.

    The licence falls into three categories of embedded generation (55Mw),  two off –grid generation(525Mw) and six on-grid generation (1,588 Mw).

     

  • Group seeks peace between oil firms, host communities

    The Gas Alert for Sustainable Initiative (GASIN) is advocating for peace between oil operators and their host communities to reduce misunderstanding with its attendant friction between them.

    To ensure that peace reigns, the group organised a one-day workshop in Port Harcourt for oil bearing communities in Ahoada West Local Government Area of Rivers State, government regulatory agencies, oil operators like Shell Petroleum Development Company (SPDC), Nigeria Agip Oil Company (NAOC) as well as the National Oil Spill Detection and Response Agency (NOSDRA).

    At the end of the session, all the stakeholders at the workshop agreed that the Federal Government should save the lives of oil bearing communities and the people who live there from the adverse effects of gas flaring by putting the necessary mechanisms in place to end the phenomenon.

    Such mechanisms should be seen to ensure that oil and gas operators do not over step their bounds when it comes to their relationships with their host communities.

    In a 16-point communique issued by the participants at the end of the workshop, it was also agreed that “oil spills should be contained and cleaned without delay while communities should not deny access to the spill sites.”

    Oil company operators were also urged to enlighten communities on the normal grievance- handling procedure to present their complaints and “communities should also avail themselves of this opportunity to enable peaceful relations.”

    It was also agreed that communities should be committed to make input for improved sustainable community development and relations through ownership approach to the projects executed for them by the operators.

    However, speaking to declare the event open, the Port Harcourt Zonal Director of NOSDRA, Mr Cyrus Nkangwung observed that there has been a big gap between communities, companies and regulators, this, he added has always led to misunderstanding.

    Nkangwung also said that the workshop would afford the parties involved the chance to find ways of smoothening relationships as “the era of apportioning blames is over.”

    The NOSDRA zonal director also commended GASIN for initiating the programme, pointing out that the group “has been rigid in ensuring that communities and regulators, oil and gas companies come together to understand themselves”.

    The Director of GASIN, Rev. Fr. Edward Obi, said the workshop was on how to resolve friction between oil communities, operators and the government.

    Obi said the event would enable oil companies to inform communities of what they are doing noting that “when things happen and communities cannot find somebody from companies informing them of what the situation is, it breeds tension because of lack of understanding.”

    Representatives of SPDC and NAOC used the opportunity to clear the air on the various schemes they have been executing for their host communities to ensure their development.

  • SEC to punish 94 firms

    SEC to punish 94 firms

    NINETY-FOUR inactive companies which could not comply with the new minimum capital base for capital market functions are to lose their licences.

    In a circular issued at the weekend, the Securities and Exchange Commission (SEC) directed the 94 firms to state on or before December 4 why “their registration as capital market operators should not be cancelled”.

    Extant capital market rules require the regulators to give quoted companies and operators notices before delisting them. The circular at the weekend served as both a pre-notice on the cancellation of the certificates of registration of the 94 firms as well as a notice to the investing public on the status of the firms.

    The Commission stated that the capital market firms “have consistently failed to render their statutory returns to the Commission and may have been unable to comply with the new minimum capital requirements before the deadline stipulated by the Commission which expired on 30th September, 2015”.

    SEC had started post-recapitalisation audit of capital market operators with a view to providing a final list of active and well-capitalised bona fide capital market operators by the end of this year. It had earlier released the preliminary list of firms that had met the September 30, 2015 deadline for recapitalisation.

    Both the SEC and the Nigerian Stock Exchange (NSE) are engaged in coordinated concerted efforts to weed out poorly capitalised capital market firms, which they had fingered as sources of several infractions. The regulators had argued that well-capitalised firms would be able to retain competitive technology, human resources and capital to operate effectively without recourse to infractions and pilferage of investors’ funds. But, some operators said infractions were not limited to small firms, noting that stockbroking service, as an agency service, requires no such huge capital but rather the integrity capital of the professionals. They warned that muscling out small firms might inadvertently hinder the spread and depth of the market since they are easily approachable by small-scale retail investors.

    The Nation noted that revocation of licences of the inactive firms as well as small-size firms may not have any significant impact on the operations at the stock market. There are 220 active broker-dealers on the NSE, but less than 15 per cent of the operators account for more than three-quarters of trading turnover at the market.

    The SEC circular confirmed several reports by The Nation that the NSE and SEC planned to delist poorly capitalised and inactive firms. The NSE is verifying compliance with its Minimum Operating Standards (MOS), which became effective on January 1, 2015.

    The MOS requirements were introduced last year by the management of the Exchange. The MOS requirements relate to all the dealing members of the Exchange and they address the five broad areas of manpower and equipment; organisational structure and governance; effective processes; global competitiveness; and technology.

    A new rule on the revocation of dealing licences and expulsion of inactive firms, which came into effect on June 29, empowers the Exchange to revoke the licence of any dealing member that has been inactive for six consecutive months.

    According to the rule, under no circumstances shall a dealing member cease to carry out its day-to-day business activities for which it was licensed to operate without any reasonable cause. A dealing member may be deemed inactive voluntarily and involuntarily.  Voluntary inactivity occurs where the firm has not recorded any trading activity without being suspended by the Exchange or SEC. Involuntary inactivity occurs where the firm has been suspended by the NSE or SEC for any infraction.

    Also, under the new amendments, the suspension of any stockbroking firm by SEC will lead to immediate suspension by the NSE. Revocation of any broker’s registration will lead to expulsion of the firm by the NSE.

    ”Where a Dealing Member’s registration is revoked by the Commission, as soon as the Exchange  is  notified,  it  shall  immediately  commence  the  process  of  expulsion  of  the dealing member,” the rules states.

  • Firms, NSE woo investors with mobile trading

    Firms, NSE woo investors with mobile trading

    Four technologically advanced stockbroking firms and the Nigerian Stock Exchange (NSE) have launched an initiative to step up the use of mobile online trading portals for transactions at the stock market. The four stockbroking firms, which included GTI Securities, Investment One Stockbroking International Limited, Meristem Securities and CSL Stockbrokers, had earlier launched mobile trading portals. Capital Bancorp Plc also has online trading portal.

    The new initiative, tagged: “Smart Trade”, being coordinated by the NSE was meant to rally the stock market behind the mobile online trading, standardise and unify the platform and further provide regulatory support for the individual stockbroking firm’s efforts.

    At the launch of the initiative at the Exchange in Lagos, executive director, market operations and technology, Nigerian Stock Exchange (NSE), Ade Bajomo said online and mobile stockbroking have potentials to tremendously improve the depth of the Nigerian capital market by widening investors’ base.

    According to him, from the current retail trading investors’ base of five million, the stock market could leverage on increasing mobile and internet usage in Nigeria to grow retail investors’ base to some 25 million, which will create a win-win situation for all stakeholders.

    Bajomo said the online platform would enable investors to buy and sell stocks on the Exchange with real-time processing functionality, adding that the platform would also enhance financial inclusion, transparency and market integrity as it gives investors greater control over their investment decisions.

    He said the platform would provide users real-time market data with availability of various technical indicators to analyse the trend and momentum of the market, thus enabling investors to make informed decisions based on the latest data.

    He assured that the online portal was made up of world-class technology with robust client data protection and security framework to give clients a seamless experience when processing transaction.

    Managing director, GTI Securities, Amos Aledare, said the stockbroking firm has put in place adequate arrangements to ensure hitch-free operation of its online trading portal.

    Managing Director, Investment One Stockbroking International Limited, Mr Oluwole Awe, said the initiative would move the market to the next level, assuring that stockbrokers would support the initiative to achieve the desired result.

    “The platform has a robust security features, which are well articulated to ensure that investors trades and accounts are not compromised. This platform will enable our client make their stockbroking portfolios on mobile devices tablets, laptops and desk top computers,” Bajomo said.

    He outlined that the mobile online trading initiative would ride on the back of full dematerialisation and the direct cash settlement to create a seamless experience for investors.

    The direct cash settlement initiative will require complete documentation and reconciliation of investor information, holdings, contact details and bank account details.

    According to him, while full dematerialisation is being implemented, the direct cash settlement initiative would be simultaneously implemented, leveraging on the progress made from putting into operation the dematerialisation processes.

    “Direct implication of this initiative would be increased investor control, which in turn would translate to increased investor confidence, improved levels of financial inclusion and surge in trading volumes,” Bajomo said.

     

  • Firms, NSE woo investors with mobile trading

    Firms, NSE woo investors with mobile trading

    Four technologically advanced stockbroking firms and the Nigerian Stock Exchange (NSE) have launched an initiative to step up the use of mobile online trading portals for transactions at the stock market. The four stockbroking firms, which included GTI Securities, Investment One Stockbroking International Limited, Meristem Securities and CSL Stockbrokers, had earlier launched mobile trading portals. Capital Bancorp Plc also has online trading portal.

    The new initiative, tagged “Smart Trade”, being coordinated by the NSE was meant to rally the stock market behind the mobile online trading, standardize and unify the platform and further provide regulatory support for the individual stockbroking firm’s efforts.

    At the launch of the initiative at the Exchange in Lagos yesterday, executive director, market operations and technology, Nigerian Stock Exchange (NSE), Ade Bajomo said online and mobile stockbroking has potential to tremendously improve the depth of the Nigerian capital market by widening investors’ base.

    According to him, from the current retail trading investors’ base of five million, the stock market could leverage on increasing mobile and internet usage in Nigeria to grow retail investors’ base to some 25 million, which will create a win-win situation for all stakeholders.

    Bajomo said the online platform would enable investors to buy and sell stocks on the Exchange with real-time processing functionality adding that the platform would also enhance financial inclusion, transparency and market integrity as it gives investors greater control over their investment decisions.

    He said that the platform would provide users real-time market data with availability of various technical indicators to analyse the trend and momentum of the market, thus enabling investors to make informed decisions based on the latest data.

    He assured that the online portal was made up of world-class technology with robust client data protection and security framework to give clients a seamless experience when processing transaction.

    Managing director, GTI Securities, Amos Aledare, said the stockbroking firm has put in place adequate arrangements to ensure hitch-free operation of its online trading portal.

    Managing director, Investment One Stockbroking International Limited, Mr Oluwole Awe, said the initiative would move the market to the next level, assuring that stockbrokers would support the initiative to achieve the desired result.

    “The platform has a robust security features which is well articulated to ensure that investors trades and accounts are not compromised. This platform will enable our client make their stockbroking portfolios on mobile devices tablets, laptops and desk top computers,” Bajomo said.

    He outlined that the mobile online trading initiative would ride on the back of full dematerialization and the direct cash settlement to create a seamless experience for investors.

    The direct cash settlement initiative will require complete documentation and reconciliation of investor information, holdings, contact details and bank account details.

    According to him, while full dematerialization is being implemented, the direct cash settlement initiative would be simultaneously implemented, leveraging on the progress made from putting into operation the dematerialization processes.

    “Direct implication of this initiative would be increased investor control, which in turn would translate to increased investor confidence, improved levels of financial inclusion and surge in trading volumes,” Bajomo said.

     

  • High cost of funds takes toll on firms

    High cost of funds and lack of access to amenable capital are adversely impacting on earnings potential and returns of several companies, reports have shown.

    Early third quarter earnings reports from quoted companies indicate that most firms were constrained by increasing financing charges, otherwise known as interest expenses, leading to steep declines in profits in most cases.

    Not less than 70 per cent of non-financial quoted companies that have so far submitted earnings reports for the period ended September 30, 2015 recorded declines in profits, with more than 80 per cent of the declines in the bottom line directly related to increase in financing charges.

    A review of the reports showed that while other macroeconomic conditions, especially slowdown in top-lines due to decline in purchasing power and increase in costs of sales due to exchange rate depreciation, contributed to low performances by companies, high cost of funds was the major factor that wiped off positive trading and operating profit performance to undermine pre-tax profit.

    For the nine-month period, Mobil Oil Nigeria Plc reported that financial charges rose by 50 per cent while its pre-tax profit dropped by the same margin. Nigeria’s second most capitalised quoted company, Nigerian Breweries, also reported that financial charges jumped by 53.6 per cent just as pre-tax profit declined by 11.8 per cent. Transnational Corporation of Nigeria (Transcorp) Plc’s financing charges rose by 42.6 per cent while its profit before tax dropped by 26 per cent.Another downstream oil company, Forte Oil, recorded a modest increase of 1.63 per cent growth in pre-tax profit against the background of 16.8 per cent increase in interest expenses.

    Also, Courteville Business Solutions Plc’s financing charges jumped by 207 per cent, which contributed to 18 per cent decline in pre-tax profit. First Aluminium Nigeria Plc witnessed 14 per cent increase in interest expense, which also contributed to 26 per cent decline in pre-tax profit of the struggling company.

    Financing cost, which rose by 200.8 per cent, contributed significantly to N38.58 billion loss recorded by Oando Plc in the first half ended June 30 this year according to report released at the weekend. Oando’s financial charges for the six-month period had risen to N26.65 billion this year as against N13.27 billion recorded in comparable period of last year, compounding the slowdown in sales and foreign exchange challenges. The integrated energy group had recorded profit before tax of N8.57 billion in comparable period of last year.

    Many top management sources said their inability to source new equity capital due to the meltdown at the capital market had forced them to continue relying on high-interest bank loans. Many had suspended or slowed down considerably their long-term corporate growth plans due to paucity of funds.

    Head, financial advisory group, GTI Capital Limited, Mr. Hassan Kehinde, said the inability of companies to raise funds locally through the capital market had forced them to opt for foreign loans, which initially were obtained at relatively cheaper rates but subsequently became serious burden due to devaluation of naira.

    Citing several companies in the fast-moving consumer goods industry and oil and gas sector, Kehinde said the apathy in the primary market of the Nigerian capital market was partly responsible for undue financial leverage noticed in the accounts of many companies.

    He added that besides the risk of high interest expense due to tightened banking operating environment at home and the foreign exchange risk associated with foreign loans, financial mismatch might further undermine the performance of several companies as they had been forced to use short-term banking loans to finance unsuitable relatively longer projects.

    Companies that had recently launched bids to raise new capital have demurred from furthering the issuance process as share prices continued to fall at the Nigerian Stock Exchange (NSE). Flour Mills of Nigeria Plc, which recently submitted application for regulatory approval to raise N30.25 billion through a proposed rights issue, opens today below the proposed offer price at N21. Flour Mills had planned to offer 1.09 billion ordinary shares of 50 kobo each to existing shareholders at N27.50 per share. Another company, May and Baker Nigeria Plc, which had announced plan to float a rights issue, opens at N1.22, a price the promoters of the issue considered to be below the intrinsic value of the company with World Health Organisation (WHO)-certified manufacturing complex.

    A management source in one of the prospective issuers had told The Nation that they were reconsidering their new issue plan and would likely opt for private placement on concerns that the company might not get the right value for its shares through the open offer and investors might shun the issue.

    Companies that had floated new issues in recent period largely fell below their offer targets. All the companies have also been trading below their offer price, putting subscribers to the issues in losses.  Access Bank, which had offered about 7.63 billion ordinary shares of 50 kobo each at N6.90 to existing shareholders, recorded 79.4 per cent success rate.

  • Capital market firms fret over post-recapitalisation audit

    Some capital market firms have started preliminary internal audit, re-evaluation of assets and documentations ahead of the Securities and Exchange Commission’s (SEC’s) comprehensive post-recapitalisation audit of the market.

    On October 2, SEC released a provisional list of 972 firms that have been cleared to operate in the  capital market after if drew the curtain on a two-year recapitalisation exercise. The list included 437 capital market operators that were cleared to have met the new minimum capital requirements by the September 30, this year’s deadline, nine other operators that were in the process of merging into four companies, six self regulatory organisations and a long list of 525 capital market consultants and experts.

    The Nation had reported that SEC was planning to launch comprehensive investigative audits of capital market firms as part of post-recapitalisation process with a view to ascertaining the veracity of assets of the firms.

    SEC had indicated that the October 2, this year list was a provisional list and that the final list of registered and certified capital market operators would be made public after the verification exercise.

    A source had said  the Commission plans to conduct stress and impairment tests on the assets filed  by the firms and to further confirm the authenticity of their claims.

    The source said top on the list of accounting firms being considered by the Commission were KPMG and Akintola Williams Deloitte adding that the Commission decided on the investigative audits to avoid the repeat of bubble assets that undermined the previous recapitalisation exercise, especially in the banking and insurance sectors.

    Industry sources yesterday said several firms were undertaking preliminary review of their assets valuation with a view to ensuring that the overall calculation tallies with the requirements for their respective functions.

    Many firms that had used equity portfolios and other related assets were said to be sourcing for additional assets to shore up and bridge possible gap that might have been created due to depreciation in the valuation of the assets. The equity market has declined by an average of more than 4.4 per cent since the September 30 deadline for the recapitalisation.

    A top management executive at a broker-dealer firm said the company was making efforts to ensure that it has what the executive described as a buffer zone to make up for any possible demand for additional capital due to accounting difference that may arise from the audit.

    The source noted that while the firm had filed appropriate and factual information, it cannot be ruled out that auditors may have differing view and there may be need to harmonise such positions either way.

    million, representing an increase of 400 per cent. Minimum capital base for dealer increased by 233 per cent from N30 million to N100 million.

    Also, issuing houses, which facilitate new issues in the primary market, will now be required to have minimum capital base of N200 million as against the current capital base of N150 million. The capital requirement for underwriter also doubled from N100 million to N200 million. Trustees, rating agencies and portfolio and fund managers had their minimum capital base increased by 650 per cent each from N40 million, N20 million and N20 million to N300 million, N150 million and N150 million respectively. A  Registrar will now have a minimum capital base of N150 million as against the current requirement of N50 million. While the minimum capital base for corporate investment adviser remained unchanged at N5 million, individual investment advisers will have to increase their capital base by 300 per cent from N500,000 to N2 million.

  • ‘Why Fed Govt must repurchase iron, steel firms’

    How can Nigeria realise its dream of industrialisation? It is by repurchasing the iron and steel companies, privatised by  immediate past President of the Institute of Business Development (IBD), Mr. Ifeanyi Obibuzor, has said.

    He said repurchasing the  Ajaokuta Steel Company Limited (ASCL), Kogi State; Delta Steel Company (DSC), Ovwian-Aladja in Delta State, and National Iron Ore Mining Company at Itakpe, among others, remained the panacea for achieving employment and industrialisation drive.

    He spoke on the sideline of the induction/Annual General Meeting (AGM) of the Institute in Lagos

    ASCL, Nigeria’s largest integrated steel plant expected to produce 1.3 million metric tons (MT) of liquid steel per annum, has been a subject of litigation between the Federal Government and Global Infrastructure Nigeria Limited (GNIL), an Indian firm, since 2008. This followed the revocation of the concession agreement that handed over the steel plant to GNIL.  DSC has also been acquired by Premium Steel & Mines, a company owned by Mr. Sunil Vaswami and other institutional investors from the Asset Management Corporation of Nigeria (AMCON). The acquisition has also been a subject of intense controversy.

    However, he said repurchasing the facilities had become necessary in view of the fact that building new ones would be difficult considering Nigeria’s prevailing economic situation caused by the crisis in the international oil market where oil prices have dropped drastically. “We need to repurchase the steel companies we sold because if we think of building new ones, it may be impossible,” he insisted.

    While stressing the need to look inwards, Obibuzor said there is no way Nigeria could move forward as an industrialised nation without addressing the issue of engineering infrastructure, which, according to him, consists of the capabilities and physical plants required to enable a prolific machine and equipment design and production to take place in the country.

    “If we have engineering infrastructure, we can design and produce machineries that will produce other machines. That is when we can think of utilising the steels to make the bodies of cars and have spare parts. We need to look at long term planning as an institute and a nation and then access what we have done, the gaps and how to bridge them,” he said.

    Obibuzor pointed out that in developed economies, the steel sector is the highest employer of labour and it is treated as a strategic sector because of the positive multiplier effect it has on employment generation.

    Aside creating direct employment, he said repurchasing the steel companies and putting them into full and efficient use would create millions of indirect employment opportunities for Nigerians.

  • 101 firms bid for NNPC offshore job

    101 firms bid for NNPC offshore job

    • $1b turnover required from bidders

    The Nigerian National Petroleum Corporation (NNPC) yesterday opened 100 bids from 101 firms for its Offshore Processing Agreements (OPA).

    The stop-gap OPA arrangement, which is designed to run for three months, obliges NNPC to allocate a certain volume of crude oil within the period for refining at offshore locations in exchange for petroleum products at pre-agreed yield pattern.

    In his opening remarks at the commencement of the exercise in Abuja, NNPC Group Managing Director (GMD) Dr. Emmanuel Ibe Kachikwu explained that the corporation made the bidding process open for the first time for critics not to have the impression that there is a sinister motive.

    According to him, NNPC is working hard and hoping to ensure that this OPA bidding is  the last one.

    Addressing reporters, the Pipelines & Products Marketing Company (PPPMC) Limited, Mrs Esther Nnamdi-Ogbue, said would-be winners have a minimum of $1billion turnover.

    Of the 445,000 barrel per day (bpd) required for refining, NNPC is planning to  process 210,000bpd through OPA.

    She said: “When we look at what the refineries are doing currently, we have 210 going to OPAs. The intention is that our refineries work better and are hoping that the 210 will currently be used in the OPA arrangements.”

    Ogbue added that the Federal Government hopes that OPA agreements will take effect by January.

    According to her, following the rehabilitation of domestic refineries, NNPC hopes to exit OPA agreements in the next 12 months.

    Asked whether there will be any concession for local content, she explained that although Nigerians are encouraged to participate in the exercise, they must pay the right price for the benefit of the citizens.

    The PPMC chief said: “Even though we support Nigerians, NNPC and  PPMC is not father Christmas. Your price must be right

    “This processing is taking our crude, processing in the refineries while we pay the necessary bills. Yes, Nigerians are encouraged but they must pay the right price. PPMC is commercial. I am looking at my bottom-line; Nigerians are impacted.

    “If you don’t give the right price, it will affect you and me when it gets to the petrol stations when you want to buy kerosene or LPG (liquified petroleum gas).  Yes we encourage Nigerians but they must pay the right price.”

    Kachikwu said he invited the Group Executive Director of Refining to the exercise because he has the responsibility of taking the NNPC out from future OPAs.

    Some of the firms that are involved in the OPA bidding are Emirate National Oil Company Singapore ltd, Enoch International Refining & Marketing, Rain Oil Ltd, Petroco Oil Ltd, Litasco SA, Eni Trading & Shipping, Otni Brooks Ltd, Ontario Trading SA, Optimal Energy Resources Ltd, Green &Green Petrolchem, Ene gas.

    Hot Air Global, North West Petroleum , Shell Western Supply Trading Ltd, Hoil, Oma Trading International Ltd, Oma Trading International Ltd, Bono Energy Ltd, Samano SA DA CV, Unipec Benjeing , Total Oil Trading SA, Slok Ltd, Grupo API, ForteOil Plc, SLK Oil and Services Ltd, Noble Clean Fuel, Energy Equity Ltd, China Zewa oil Company Ltd, Petrolson Ltd.