The Nation Newspaper

Tag: N11b

  • Delta govt spends N11b on Asaba flood control projects

    The Delta State government is spending N11 billion to solve the flood menace in Asaba, the capital

    Governor Ifeanyi Okowa spoke this during his quarterly media interaction in Asaba yesterday.

    Okowa said his administration would fulfil his campaign promises, including ending the ordeal residents encountered during the rainy season.

    According to him, the government, after a study of flood challenges in the capital, identified three critical areas to tackle.

    “The first is to drain water from the Direct Labour Agency, Jesus Saves and Agric roads and evacuate it into the River Niger.

    This will be completed by the end of May.

    “The contract for the second drain project, which will evacuate water from Ralph Uwechue to the Anwai River, was awarded in February, and it will be completed in 12 months.

    “The third water drainage is to Delta State Broadcasting Station Road and Okpanam Road. This will also be completed in 12 months,” he said.

    He said the drainage projects were handled by competent contractors, and promised that they will be completed on time.

    Okowa, however, appealed to the people to be patient with government, adding that the impact of the projects will be felt in 2019.

    The governor further said that N720 million was spent in conducting the January 6, council election, including the runoff in some parts of the 25 councils.

    He also said government set aside N2 billion for the Ministry of Basic and Primary Education to renovate and furnish over 1,600 public primary schools.

    He said the government was supporting some councils to build rural markets to grow commerce.

    The governor added that the government completed the Oghara Market and approved construction of  Ozoro and Burutu markets.

    On security, he said government inaugurated peace-building committees which ensured the sustainability of peace.

    He urged feuding communities to embrace peace and advised youths, who pose challenges to investors, to desist from the act.

    Okowa said the government also approved some funds for the completion of the Stephen Keshi Stadium, Asaba, for the hosting of the 2018 Africa Senior Athletics Competition (ASAC) in August.

    According to him, all ancillary facilities, including the swimming pools, parking lots, lightning, among others, will be completed before the competition.

    The governor promised that the facilities will meet international standard.

    “Work is ongoing at the stadium and we hope to complete it early enough for the hosting of the ASAC as we are expecting over 100 countries in attendance.

    Okowa hoped work at the airport will be completed before the competition.

    He said the contractor handling the runway project promised that the work will be ready before April ending.

    “We want to reassure that we are committed and focused in delivering on our promises; there is a lot to be done and we hope that our resources will improve.

    “We are urging the people to support us and for those youths who act as stumbling blocks to investors, I remind them that they are destroying their future,” Okowa said.

  • ‘Delta lost property worth N11b to fire’

    Delta State Commissioner for Bureau for Special Duties,  Mr. Ernest Ogwezzy, said the state lost property worth N11 billion to fire outbreaks between January and October.

    Ogwezzy, in an interview with News Agency of Nigeria (NAN) yesterday in Asaba, said they included factories, shops, markets and houses.

    He said the fire command saved property, worth N65.4 billion, during the period.

    The commissioner said the command received 175 fire calls, adding that 12 were false.

    Ogwezzy said the command rescued six persons.

    He said the highest came from Asaba, with 69 calls, followed by Warri, with 38 calls.

    “Ughelli was next with 17 calls and Sapele, 16 calls.

    “Some of the fire incidents recorded during the period include Beta Glass factory, Ughelli, which occurred on July 8, followed by another fire incident that occurred at Upper Agbarho, off Isoko Road, Ughelli on April 6,’’ Ogwezzy said.

    He noted that fire incidents reduced slightly, compared to what it used to be.

    Ogwezzy said the directorate had been enlightening people on how to avoid fire outbreak.

    He said there were numbers with which it could be contacted in case of outbreaks.

  • Kwara owes contractors N11b, says Ahmed

    Kwara State Governor Abdulfatah Ahmed has put the value of project debts in the state at N11.1 billion.

    He said his administration disbursed N1.7 billion to reduce the debts, noting that the balance is N9.4 billion.

    Ahmed spoke in Ilorin, the state capital, during the launch of the Kwara State Infrastructure Development Fund (IF-K).

    He promised that payment would resume in December, with ongoing and new projects targeted for completion by December, 2018.

    “As a demonstration of faith and a token of our commitment to pay outstanding contractor debts, this amount will be reduced on a quarterly basis until all debts are liquidated before end of the administration.

    “Simultaneously, contractors will drop off the IF-K grid as their obligations are terminated to allow for the introduction of new portfolio of fresh projects.

    “The fund will be financed through a N5 billion seed fund and a N500 million monthly contribution from the state’s Internally Generated Revenue (IGR) through an Irrevocable Standing Payment Order (ISPO). This implies that the money will be taken at source from the state’s IGR and provides an additional layer of assurance to project partners.

    “Additional non-IGR funds, such as those from the Federal Government and global development partners, will be added to IF-K as they become available.

    “Under IF-K, funds will be disbursed on a quarterly basis and are projected to grow by N6 billion by end of the year. In order to ensure accountability and insulate the funds from political control, the IF-K will be managed by a reputable investment company, Investment One, which has been appointed by law as trustee for the scheme.

    “Investment One is also to market the fund to potential investors and mitigate against payment risks by ring-fencing the funds and limiting their utilisation to the approved purposes.

    “I must also emphasise that we will continue to fund smaller projects through other platforms as only projects worth N300 million and above will be included on the IF-K payment grid.

    “Over the next 10 months, therefore, over N5.8 billion will be pumped into the state’s economy via IF-K. Our expectation is that this injection will keep our project partners in business and have a positive spiral effect on employment generation. In the medium term, the remaining N5.3 billion will boost the state’s Gross Domestic Product (GDP) for about 18 months while sustaining the multiplier impact on job creation.”

  • Oando grows Q3 net profit by 76% to N11b

    Oando Plc optimized its bottom-line performance in the third quarter as significant improvements in top and midline costs moderated decline in turnover and returned higher earnings to shareholders.

    Key extracts of the interim report and accounts of Oando for the nine-month period ended September 30, 2014 showed that while turnover dropped by 12.5 per cent, the group drew on improved input and marketing costs to grow gross profit and operating profit by 70.4 per cent and 97.3 per cent respectively. Net profit after tax rose by 75.7 per cent.

    Group turnover stood at N338.11 billion in third quarter 2014 compared with N386.25 billion in corresponding period of 2013. Gross profit meanwhile rose from N70.4 billion in 2013 to N79.60 billion in 2014. Operating profit also nearly doubled at N36.25 billion in 2014 as against N18.37 billion in 2013. Profit before tax rose marginally from N9.76 billion in third quarter 2013 to N10.18 billion in third quarter 2014.

    With tax gain of N523.4 million, group net profit rose to N10.70 billion in 2014 as against N6.09 billion in comparable period of 2013. Earnings per share meanwhile improved from 93 kobo to N1.26.

    Oando has, this year, recorded several milestones, including the successful acquisition of ConocoPhillips, the largest acquisition by an indigenous player in Africa; in the upstream, OML 125 production increased by 17 per cent to 651,000 bbls, while OML 56 production increased by 30 per cent to 171,000bbls compared to prior comparative period; in the midstream, Oando Gas and Power is extending its natural gas distribution network by 8.0km from Ijora to the Marina business district in Lagos state, positioning the company to benefit from the growing demand for gas and power infrastructure in the country while in the downstream, the completion of the Apapa Single Point Mooring (ASPM) Jetty, a first in Africa; with expected demurrage cost savings and additional income streams.

    On the impact of Oando’s $1.5 billion acquisition of ConocoPhillips Nigeria which has transformed the company into Nigeria’s largest indigenous oil and gas producer, it is expected that there would be further improvements in the company’s performance as the acquisition is set to increase daily oil production exponentially by 600% equivalent to 45,000 boe/d, annual revenue of over US$600 million, and annual free cash flows of $150 million.

    On the outlook for the company, group chief executive officer, Oando Plc, Mr. Wale Tinubu has said the company’s strategic refocus on the higher margin promises to create profitable growth for the company and immense value add for its stakeholders in the near term.

    “With an eye to the future, we took on our largest and most daring feat with the acquisition of ConocoPhillips Nigeria, adding capacity to support our future growth plans. We have succeeded in repositioning ourselves within the sector, and through future acquisitions and innovative efficacy we will seek to up our market share in sub-Sahara’s upstream sector within the next five years to 100,000 boe/d in net production.  We remain committed to strengthening our balance sheet and expect 2014 to be another strong year for the Company,” Tinubu said.

    He noted that the company has already seen positive indications from its active strategic initiatives; upstream investments, midstream expansion and downstream optimisation.

    Oando recently distributed a total of N2.4 billion as cash dividends to shareholders, consisting of a final dividend of 30 kobo per share for the 2013 business year financial year and an interim dividend of 70 Kobo per share for the six-month period ended June 30, 2014, bringing total dividend per share to N1.

    Chairman, Oando Plc, Oba Michael Gbadebo, said the company has already started to reap the rewards of recent strategic initiatives in the previous year.

    “We have successfully cemented our leading status as Nigeria’s premier indigenous exploration and production player, whilst also growing the midstream business and refocusing the pioneer downstream business,” Gbadebo said.

    According to him, the company will remain on the growth path and continue to work diligently to stay ahead of its peers while creating value for its shareholders..