Economy
Board to Disqualify NCDF Payment Defaulters from Oil Contracts
By Modupe Gbadeyanka
Oil and Gas Companies that default in the deduction and remittance of one percent of the value of contracts they executed in the upstream sector of the oil and gas industry will henceforth be disqualified from participating in tenders for new contracts.
This warning was given by the Nigerian Content Development and Monitoring Board (NCDMB) and also indicated plans to conduct a forensic audit of the industry to track and recover due payments on the Nigerian Content Development Fund (NCDF) held by some companies.
The NCDF was established by Section 104 of the Nigerian Oil & Gas Industry Content Development (NOGICD) Act of 2010 and provides that one percent of every contract in the upstream sector of the Nigeria Oil and Gas industry shall be deducted at source and paid into the Fund.
The Board manages the Fund and employs it for projects, programmes and activities directed at increasing Nigerian Content in the Oil & Gas industry.
Speaking in Lagos at the Stakeholders Forum on the NCDF Remittances, the Executive Secretary of the Board, Engr. Simbi Wabote stated that some companies were defaulting in their deduction and remittance on contracts they executed.
He noted that the Forum provided a window for all covered entities to understand the channels for paying the one percent NCDF to the Board before the audit, adding that there were no exemptions for players in the upstream sector.
He charged companies to make the remittance to the NCDF TSA Account with the Central Bank of Nigeria (CBN) stressing that NCDMB does not operate an account in any commercial bank.
Giving a background to the Fund, Mr Wabote explained that the NCDMB focused the early years in collections, putting in place the Operating Model for utilization of the Fund, establishing the NCDF Advisory Committee for efficient governance of the Fund and creating confidence and trust of industry stakeholders.
According to him, “The Board opened up the Fund for utilization from 2013, based on the approved operating model that segmented 70% of the Fund to financing Commercial interventions and 30% for Developmental initiatives and activities carried out by the Board on behalf of the industry.
“Under Commercial interventions, the Fund was leveraged to provide 30% Partial Guarantee to commercial banks for loans granted to oil and gas service companies towards financing project execution, asset acquisition or facility upgrade. It also provided 50 percent interest rebate on performing loans. Beneficiaries of the Fund include Ladol, Starz and Vandrezzer.”
Speaking further, the Executive Secretary stated that Developmental Interventions covered Capacity Development Initiatives (CDIs) including training programmes, NCCF administration, establishment of NOGICJQS, establishment of oil and gas parks, direct equity participation by the Board in high impact projects as well as compliance monitoring activities carried out by the Board on behalf of the industry
The introduction of the Treasury Single Account (TSA) policy by the Federal Government and the need to deepen accessibility of the Fund for critical activities, he said, created the need to re-engineer the Operating Model of NCDF
He noted that “to enhance accessibility to the Fund, the Board in July 2016 signed a Memorandum of Understanding (MOU) with the Bank of Industry (BOI) to establish the Nigerian Content Intervention Fund (NCI Fund).
He confirmed that the Board was at the verge of finalizing the processes for release of the initial $100 Million (N31 Billion) to BOI for the pilot phase. Once this was concluded, he said, the Board will conduct a roadshow and publicise the requirements for accessing it.
He stated that only contributors to the Fund with manufacturing proposals in the oil and gas industry can approach BOI for the NCI Fund facility. The Fund has a single obligor limit of $10 million and tenor of up to 5-10 years on the basis of 8 percent interest rate.
In his presentation, the General Manager, Finance and Accounts, NCDMB, Mr Obinna Ofili explained that remittances of the NCDF has to be made in the currency of the contract, notably, Naira, USD, GBP and EUR.
He confirmed that though the Act provided that deduction should be based on awarded contract sums, the Board adopted the invoice model to make it convenient for stakeholders.
By Bon Peter
The Area 11 Command of the Nigeria Customs Service (NCS) in Onne, Rivers State surpassed its 2024 annual revenue target by N16 billion.
This information was revealed to newsmen by the Customs Area Controller of the Command, Mr Mohammed Babandede, at a news conference last week.
He also disclosed that the command recently intercepted 12 containers of illicit drugs worth over N20.30 billion concealed in various items.
According to him, the content of the seized container included 1,721,100 bottles of 100ml cough syrup codeine, 510,000 tablets of 50mg Really Extra Diclofenac, 7,100,000 tablets of 225mg Royal apple Tramadol and Tramaking, 3,461 pieces of sanitary ware fittings used for concealment, 840 pieces of Chilly cutter used for concealment, and 153 cartons of TVS rubber.
“Our vigilant officers and men have successfully intercepted and seized an additional 12 containers (40 feet) of illicit medicine.
“This is a testament to our unwavering commitment to safeguarding public health, ensuring security of our nation and compliance with Nigeria’s import regulations. This also justifies our commitment to trade facilitation, transparency, effective and efficient service,” he said.
He said last year, the command received the support of different stakeholders, thanking them for working with the agency to achieve success.
“We appreciate the continued support and collaboration of all stakeholders, including the media, in amplifying our message and efforts to combat smuggling,” he said.
Mr Babandede stated that, “It is worth noting that the morale and dedication of our officers have been significantly bolstered by the Comptroller-General of Customs’ award, recognizing Area 2 Command as the Best Command in Anti-Smuggling Operations.
“This honour has further strengthened our resolve, and I assure you that we will not relent in performing our duties to protect the lives and well-being of Nigerians.”
The customs chief said earlier last year, the command was given a revenue target of N618 billion but as of December 31, 2024, it generated N634 billion, higher than the N321 billion recorded in 2023, promising to do more in 2025.
By Dipo Olowookere
The Nigerian Exchange (NGX) Limited appreciated by 0.39 per cent on Friday as the demand for local equities continued to increase.
During the final trading session of the week, the insurance maintained its upward trend with a growth of 7.81 per cent as the banking index appreciated by 1.08 per cent, the consumer goods sector rose by 0.52 per cent, and the industrial goods counter expanded by 0.33 per cent, while the energy space went down by 0.49 per cent.
At the close of business, the All-Share Index (ASI) jumped by 406.19 points to 103,586.33 points from 103,180.14 points, and the market capitalisation increased by N248 billion to N63.166 trillion from N62.918 trillion.
The bourse recorded 67 appreciating shares and 11 depreciating shares, implying a positive market breadth index and strong investor sentiment.
Chams, Omatek, NCR Nigeria, Learn Africa, and Regency Alliance topped the gainers’ table after they gained 10.00 per cent each to finish at N2.31, 88 Kobo, N6.05, N4.95, and 88 Kobo, respectively.
On the flip side, TotalEnergies lost 9.74 per cent to trade at N630.00, CWG depreciated by 6.04 per cent to close at N7.00, Thomas Wyatt went down by 5.26 per cent to N1.80, ABC Transport crumbled by 4.07 per cent to N1.18, and UAC Nigeria shed 3.19 per cent to N31.90.
Yesterday, investors traded 709.3 million stocks valued at N8.2 billion in 13,593 deals compared with the 829.8 million stocks worth N5.7 billion transacted in 11,752 deals on Thursday, representing a slowdown in the trading volume by 14.52 per cent and a rise in the trading value and number of deals by 43.86 per cent and 15.67 per cent, respectively.
At the close of business, Chams topped the activity log with 58.1 million equities sold for N133.8 million, Veritas Kapital traded 55.1 million shares valued at N89.2 million, Abbey Mortgage Bank exchanged 50.1 million stocks for N165.5 million, AIICO Insurance transacted 39.7 million equities worth N68.3 million, and NPF Microfinance Bank sold 34.3 million stocks valued at N64.0 million.
By Adedapo Adesanya
The NASD Over-the-Counter (OTC) Securities Exchange extended its positive start to the year with a 0.08 per cent rise on Friday, January 3.
The market saw a gain of N840 million, with the value of the alternative bourse growing to N1.046 trillion from the N1.045 trillion it closed a day earlier as the NASD Unlisted Security Index (NSI) made an addition of 2.43 points to wrap the session at 3,052.34 points compared with 3,049.91 points recorded at the previous session.
The appreciation posted yesterday at the NASD OTC exchange was caused by two price gainers led by Industrial and General Insurance (IGI) Plc which jumped by 2 Kobo to end at 20 Kobo per share compared with the preceding session’s 18 Kobo per share and UBN Property Plc, which improved its value by 16 Kobo to close at N1.98 per unit, in contrast to Thursday’s closing price f N1.82 per unit.
The market posted a price loser, which was FrieslandCampina Wamco Nigeria Plc as it dropped 18 Kobo to finish at N39.76 share versus the previous day’s N39.94 per share.
There was an 856.6 per cent surge in the volume of securities traded in the session to 11.3 million units from the 1.2 million units traded in the preceding session.
Equally, there was a jump in the value of shares traded yesterday by 1,078.4 per cent to N56.8 million from the N4.8 million made previously, and the number of deals increased by 22.7 per cent to 27 deals from 22 deals.
FrieslandCampina Wamco Nigeria Plc was the most active stock by value (year-to-date) with 1.4 units worth N55.8 million, IGI Plc came next with 10.6 million units valued at N2.1 million, and 11 Plc was in third with 6,45 units sold for N1.4 million.
IGI Plc closed the day as the most active stock by volume (year-to-date) with 10.6 million units sold for N2.1 million, FrieslandCampina Wamco Nigeria Plc came next with 1.4 million units valued at N55.8 million, and UBN Property Plc followed with 275,740 units worth N545,965.
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