The Nation Newspaper

Tag: N8b

  • Oil firm invests N8b in downstream

    The Chief Executive Officer, ENYO Retail and Supply Limited, an retail outlet,  Abayomi Awobokun, said the company has invested over N8 billion in the downstream retail business with eyes on expanding its market share in the petroleum sub-sector.

    Awobokun, in a press outing yesterday in Lagos, said set up the company to impact positively in the downstream subsector of the oil and gas industry, adding that despite the challenges confronting the petroleum industry, his team of investors is ready to expand beyond its present market share, going forward.

    He said Enyo is the first to offer customers what he termed loyalty scheme, which he said is an opportunity to reward its loyal buyers. “We want to use innovations and modern designs to our advantage to grow business in the downstream. Enyo doesn’t want to get involved in the business of importing products. We buy from those that import and then sell,” he said.

    He urged the government to look at issues such as supply shortages, customers distrust, congestion and poor road facilities.

    He said the firm is looking at delving into a 24-hour service in the future with a combination of pumps where customers can either serve themselves, or be served by attendants. He added that the firm is planning on buying over stations across the country for rapid growth.

    “There are negative stigmas affecting the downstream sector. Past events have given it a bad name. There is general distrust between the customers and the marketers. The economy is also another challenge. Nigerians don’t buy fuel for luxury like driving from Lagos to Akure just for sightseeing. They buy fuel for essentials and not pleasure.

    “There is also the challenge of lack of basic infrastructure. Moving of products from the depots to the filling stations is very challenging. But despite all these challenges, there is still room for growth,’’ he said.

  • ‘N8b isn’t enough to fight climate change’

    A member of the House of Representatives representing Ikwuano/Umuahia federal constituency, Chief Sam Onuigbo has said that the N8 billion voted to fight for climate change is not enough to the job.

    The sum was included in the 2017 budget which is before the National Assembly meant to contain the ravages of global warming in the country.

    Speaking with newsmen in Umuahia, the Abia State capital, Onuigbo said that the proposed sum will not be enough.

    Onuigbo, who also chairs the House Committee on Climate Change, said that Nigeria is particularly vulnerable due to such hostile developments as pollution, flood, coastal and gully erosions, desertification, drought, drying up of Lake Chad.

    He said that the challenges also include clashes between farmers and herdsmen, noting that they have combined to create food scarcity, poor access to energy, unemployment, poverty, insurgency and general insecurity in the land.

    The federal lawmaker said, “When these disasters caused by climate change occur, we have seen a pattern that sources of livelihoods are destroyed and women and children are usually disproportionately affected”.

    Onuigbo recognises, however, that the N8 billion is little compared to the $8 billion being put forward by Morocco and about $50 billion by Saudi Arabia, it represents a significant growth.

    He said that this reflects President Muhammadu Buhari’s commitment to addressing Climate Change issues, and ensuring that Nigeria adheres to her Nationally Determined Contributions (NDC).

    Onuigbo said, “One cannot over emphasis how impactful Climate Change has been on our society, and the need to take it seriously, more attention will be paid to Climate Change, as it has the power to affect other key areas of our lives”.

    He called on the executive and the legislature to synergise their efforts in a deliberate and coordinated way in taking actions aimed at protecting our environment and empowering the people.

    Onuigbo maintained that empowering the people will clear the path towards accelerating industrialisation in a way that supports a rapid and resilient economic growth, adding that there is need to work to achieve sustainable development in all facets of our economy.

    He noted that the numerous interactive sessions that his committee had held with the cross-cutting MDAs were primarily aimed at closing the obvious knowledge gap through creating awareness so as to earn public acceptance and behavioral change.

    Onuigbo then urged Federal Government to carry out public awareness campaigns on the effects of climate change so as to enable Nigerians especially the farmers to adapt to climate change in order to mitigate its effects, and also to adjust their farming programmes periodically in that regards.

  • EU votes N8b for NDLEA’s safety equipment

    EU votes N8b for NDLEA’s safety equipment

    The European Union, (EU) has said  it will be supporting the National Drug Law Enforcement Agency (NDLEA) with safety and screening equipment valued at 36 million euros (about N8billion)  over the

    next 50 months.

    The EU also said it would continue to train and retrain the personnel in its efforts to combat the movement of illicit drugs into and outside the country.

    Head, EU Delegate to Nigeria, Amb. Michel Arron who spoke in Lagos during a meeting with the NDLEA, explained that the essence of the support was for the agency and the country at large to be able to improve law enforcement capacity in drug control and tackle organised drug –related crimes in the country.

    In the first phase of the collaboration, the EU donated 100 desktop computers and 15 laptops, stressing that this would help in boosting anti-drug agency’s capability to gather and process data.

    He argued that the donation would also assist the NDLEA to achieve three objectives, which include; policy formulation and improve drug legislation, coordination of the sector and improve law enforcement of  capacity in drug control and tackling organised drug- related and to enhance drug prevention, treatment and care services adapted to Nigeria conditions.

    Arrion said words needed to be turned to action by people on the ground with the very best information, data and access to the latest technologies available, adding that as a result, reliable data about drug trafficking and drug abuse in Nigeria was required.

    The Ambassador stated that under the project, two full scale national survey on cannabis production and drug use in the country were currently being conducted by the United Nations Office on Drugs and Crime (UNODC) in close collaboration with NDLEA with all necessary means including satellite images being used to measures the scale of cannabis cultivation to questionnaires related to drug use to be completed at the local communities.

    He said: “The desktops are to help NDLEA to have good IT platform, analyse information and collect data. The laptops is to enable NDLEA to know the next move of drug traffickers  and to make NDLEA a very proactive organisation.”

    The Chairman of NDLEA, Ahmadu Giade, commended EU and UNODC for its support to drug control programmes in Nigeria, adding that EU’s donation demonstrates its willingness to assist countries in the implementation of International drug convention.

    He said  the challenges posed by illicit drug cultivation ,trafficking and abuse are enormous, adding that NDLEA believe that through shared responsibility, greater progress would be made in prosecuting the illicit drug war.

  • Transcorp Hotels plans N8b IPO, eyes listing

    Transcorp Hotels Plc, the owners of the prestigious Transcorp Hiltons Hotel, Abuja, plans to float an initial public offering of N8 billion and subsequently list its shares as a separate entity on the Nigerian Stock Exchange (NSE), according to sources in the know of the plan.

    Transcorp Hotels Plc is a subsidiary of Transnational Corporation of Nigeria (Transcorp) Plc, a quoted conglomerate with interests in agriculture, hotel and tourism, oil and gas and power. Transcorp’s share price rose by 5.41 per cent on Monday at the NSE to close at N6.43 per share.

    According to the plan, Transcorp Hotels would issue 800 million ordinary shares of 50 kobo each at a price of N10 per share, pricing its IPO higher than the market value of its parent company.

    Transcorp holds 88 per cent majority equity stake in Transcorp Hotels through Capital Leisure and Hospitality Limited. The remaining 12 per cent is owned by the Federal Government of Nigeria.

    The net proceeds of the IPO, according to sources, would be used to finance the expansion plan of the hotel and tourism company as well as support its balance sheet.

    Transcorp had recently signed a new deal with Hilton Worldwide to build a new premier hotel in the up-market suburb of Ikoyi, Lagos.

    The proposed Transcorp Hilton Lagos, a full service, 350-room hotel on Glover Road, Ikoyi, will be the Hilton Group’s second hotel in Nigeria by Transcorp, following the award-winning Transcorp Hilton Hotel Abuja, which is one of the leaders in Hilton’s global network. The new hotel will be jointly owned by Transnational Hotels and Tourism Services Ltd, a hospitality subsidiary of Transcorp and Tony Elumelu’s Heirs Holdings. Heirs Holdings holds the majority stake in Transcorp.

    Speaking at the official signing of the management contract at Heirs Holdings’ office in Lagos, Chairman, Heirs Holdings, Mr. Tony Elumelu said the agreement marked another milestone in the long-standing partnership with Hilton Worldwide.

    According to him, the Ikoyi development, along with the extensive refurbishment and upgrade of the group’s existing hotels in Calabar and Abuja, demonstrates Heirs Holdings’ commitment to driving growth in real estate and hospitality, a strategic sector for Nigeria’s economic development.

    “The new Transcorp Hilton Lagos will not only present an additional world-class venue for the increasing numbers of investors, businessmen and tourists to Nigeria, but is creating much-needed jobs for our citizens, enabling their social and economic development,” Elumelu said.

    Transcorp plans to draw on the growing profiles of its subsidiaries to consolidate its improving fundamentals. Interim report and accounts of Transcorp for the six-month period ended June 30, 2014 had shown that turnover rose by 177 per cent while group operating profit and pre-tax profit jumped by 145 per cent and 122 per cent respectively.

    The report showed that turnover doubled to N21.2 billion in June 2014 as against N7.67 billion recorded in comparable period of 2013. Gross profit rose from N5.99 billion in first half 2013 to N14.96 billion in first half 2014. Operating profit for half year 2014 was N9.75 billion as against N3.99 billion in comparable period of 2013. Group profit before tax doubled to N8.02 billion in 2014 compared with N3.61 billion in corresponding period of 2013. After taxes, net profit rose from N2.48 billion in 2013 to N6.89 billion in 2014.

    The improved bottom-line underlined stronger returns with earnings per share rising from 5.53 kobo to 11.30 kobo. Transcorp paid a dividend per share of 5.0 kobo for the 2013 business year, its first dividend since inception.

    Elumelu had noted that the principal cause of asset growth for the group and company was its acquisition of the Ugheli Power Plant, Nigeria’s largest generating facility and where its influence has already seen a doubling of capacity.

    “I believe that we will build on the solid foundation laid over the last couple of years to begin an era of steady and increasing dividend payment to our shareholders,” Elumelu said.

    He noted that following Transcorp’s takeover of the Ugheli power plant, power output has more than doubled at the plant from 160 megawatts on handover date to 360 megawatts currently pointing out that the goal of the new board is to increase output at the plant to 700 megawatts by December 2014 by embarking on an extensive rehabilitation programme.