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Delta Line Shares Divested to Make it Profitable—Okowa
By Modupe Gbadeyanka
Delta State Governor, Mr Ifeanyi Okowa, has explained why his administration decided to divest shares of the state-owned transport company, Delta Line, to a private organisation.
In a statement issued in Asaba, the Executive Assistant to the Governor on Communications, Barrister Fred Latimore Oghenesivbe, emphasised that Delta Line was not outrightly sold to God is Good Motors as being peddled on social media.
According to him, government is making solid plans to divest part of its shares in the transport company to pave the way for joint ownership with the highest bidder, adding that the divestment of shares became necessary to make the company viable and better managed by tested and trusted stakeholders in the transportation sector.
“The state government is not comfortable with the poor financial status of Delta Line despite the huge investments in billions of Naira pumped into it in the past; a development so frightening due to inability of the company management to pay staff salaries and maintain its fleet let alone making profit for government.
“Similar transport companies in the state and elsewhere managed by private investors are doing very well, declaring huge profits year after year while Delta Line continue to degenerate; and all efforts put in place to make the company viable proved abortive hence government decided to divest part of its shares and partner with professional managers in the transport sector to manage Delta Line efficiently and profitably.
“The huge leakage of funds became unbearable which led to the sack of various key management staff of the transport company and strict checks and balances were introduced. These measures could not also solve the problems as rogue elements within the system quickly devised new unscrupulous methods of stealing money.
“The company was unable to save money to pay backlog of salaries and entitlements and therefore could not function effectively and efficiently without partial funding by government,” he said.
On the allegation that the Delta State Chapter of the Nigerian Labour Congress (NLC) offered N2 billion in its bid but government decided to sell its shares to God is Good Motors, Mr Oghenesivbe explained that there is no concrete evidence that NLC presented financial statements showing capacity to pay for the shares, adding that it is hazy as to NLC strict compliance with the bid.
On the unconfirmed rumour that some members of Delta State Chapter of the All Progressives Congress (APC) are planning to stage protest to force government to reverse its decision to stop the divestment process, Mr Oghenesivbe said the decision subsists and cannot be put on hold or jettisoned for any reason whatsoever, adding that the divestment is a well throughout strategy to revive Delta line, manage it efficiently, imbibe good corporate governance and make profits for government and other shareholders.
“APC Delta is completely out of the political radar in the state hence its leaders and docile handful of members want to busy themselves with a matter that was well deliberated upon and proper decisions taken for the interest of the state and Deltans.
“APC should concentrate on how to manage its three years old internal crisis rather than meddle with issues of good governance alien to the party’s (APC) mediocre leaders and their overzealous followers in Delta State.
“The co-shareholders saddled with the responsibility of managing Delta Line shall retain the work force after critical staff audit and competence evaluation exercise expected to weed out ghost workers and redundant human elements in the now unprofitable transport company.
“There is nothing to worry about because the name and corporate colours of Delta Line shall be retained, operational routes and scope of daily commercial and administrative activities sustained and modified except for strategic restructuring as may be effected by the new managers for the purposes of good corporate governance and viability,” the statement added.
By Adedapo Adesanya
The Lagos State Government has reiterated its commitment to creating an eco-friendly state with fewer cars on the roads in the future.
The Lagos State Commissioner for Transportation, Mr Oluwaseun Osiyemi, said this during a presentation at the closing of the fifth Lagos Real Estate Marketplace Conference and Exhibitions in Lagos.
Mr Osiyemi said that the commitment is in line with the T.H.E.M.E.S Agenda of Mr Babajide Sanwo-Olu’s led administration, expressing concerns that traffic congestion costs the state trillions of Naira in budget deficits annually.
The transportation commissioner noted that the heavy reliance on road transportation, which accounts for 90 per cent of travel in Lagos, is unacceptable and unsustainable.
The Commissioner stated that water and rail transportation account for only two per cent of the means of transportation, highlighting their gross underutilisation.
Mr Osiyemi emphasised that every sector in the state must be robust enough to contribute significantly to the wellbeing of its residents, as Lagos accounts for 30 per cent of the nation’s gross domestic product.
He expressed the state’s readiness to maximise the use of intermodal transportation system, to help upscale socio-economic activities in the metropolis and reduce man-hour loss to traffic.
In a panel discussion, the Special Adviser to Governor Sanwo-Olu on Climate Change and Circular Economy, Ms Titilayo Oshodi, emphasised the need for the state and its stakeholders to adopt a purposeful approach to waste management.
Ms Oshodi highlighted the importance of a circular economy in recycling, repurposing and reusing waste effectively.
She noted that several policies were already in place in the state for managing waste, urging producers and manufacturers across various sectors to collaborate with the state government to contribute to carbon reduction efforts.
Other panellists including Ms Stella Okengwu, Chief Executive Officer of Winhomes, said that the current economic situation calls for housing to be built based on clear demand that aligns with people’s budgets while Mr John Oamen, Co-founder of Cutstruct, urged the state government to promote the digitisation of construction procurement.
This, he added, would enhance the efficiency and practices of the construction and real estate sectors.
By Modupe Gbadeyanka
There are plans by Heirs Insurance to introduce insurance products tailored for vehicle owners, a statement from the underwriting firm has disclosed.
According to the subsidiary of Heirs Holdings, this low-cost motor insurance package known as the Flexi Comprehensive Motor Insurance Plan will provide the benefit of a comprehensive motor insurance plan for a fraction of the cost, addressing the financial realities many Nigerians face.
The underwriting company announced the plan to introduce this package as it launched a new campaign designed to reward its customers.
This initiative themed Unwrapping Smiles will bring hope to individuals, families, and communities this holiday season, and will run from December 10 to December 31, 2024.
It will feature community-focused outreaches, including Christmas gifts and exciting rewards to put smiles on the faces of Nigerians. It will also include the launch of a holiday-watch web film known as The Underwriters for all Nigerians to enjoy.
“At Heirs Insurance Group, we are committed to providing much more than insurance. In a season when many Nigerians seek hope and reasons to smile, we are proud to offer initiatives that inspire and uplift,” the Chief Marketing Officer of Heirs Insurance, Ms Ifesinachi Okpagu, said.
By Adedapo Adesanya
Nigeria’s Presidential Compressed Natural Gas Initiative (PCNGi) claims that investments in championing the CNG value chain have hit $450 million.
This was disclosed by Mr Michael Oluwagbemi, Project Director and Chief Executive Officer (CEO), PCNGi, during the 9th Edition of the Nigeria Energy Forum (NEF2024) Day 2, Virtual Event themed Energising Sustainable Industrialisation.
According to the PCNGi CEO, the amount goes into things like mother stations, daughter stations and refuelling stations as well as conversion centres which are starting to spring up across the nation.
Mr Oluwagbemi, represented by Mr Tosin Coker, the Head of Commercial, PCNGi, said the initiative had successfully converted more than 10,000 vehicles from petrol to CNG.
“By 2027, the initiative will have converted more than one million vehicles using petrol to CNG,” he said.
On incidents of explosion of vehicles using CNG, the CEO assured Nigerians that it had taken precautionary measures with different agencies of government to ensure safety.
Mrs Ibironke Olubamise, National Coordinator of the GEF Small Grants Programme (SGP), managed by UNDP, said the SGP was investing in youth energy innovation for economic growth and environmental sustainability.
Mr Daniel Adeuyi, NEF Group Chairman, said, “The event featured three super sessions on Energising Industrial Revolution, Community Climate Action by GEF-SGP UNDP and Clean Energy Innovations.
“The sessions are to share lessons learnt from real-life projects and build capacity of young entrepreneurs and cross-industry professionals.”
Mr Joseph Osanipin, the Director General of the National Automotive Design and Development Council (NADDC), said that the council had trained more than 4,000 auto technicians on how to convert petrol vehicles to CNG.
He said the council had started campaigns to sensitise Nigerians on the advantages of using CNG to power their vehicles.
“CNG can guarantee a cleaner environment, it is cheaper and affordable,” he said.
Mr Oluwatobi Ajayi, the Chairman and Managing Director of Nord Automobile Ltd., said the company was established to tackle the growing demand for vehicles in Africa and reduce import dependency.
He said that because of the Federal Government’s CNG initiative, the company had incorporated it into their vehicle production to meet up with the government policy.
Mr Armstrong Tankan, the Managing Director and Chief Executive Officer, Ministry of Finance Incorporated (MOFI), said that MOFI was set up in 1959 as the statutory vehicle to hold all the assets owned by the federal government.
“Today, we’ve been able to identify the assets the federal government owns and we are trying to track them.
‘We actually do have assets, not just locally but globally as well and we must establish visibility over what the federal government owns before we can start talking about managing them.
“So, we want to try to minimise the waste, minimise the overlaps and help to improve output,” he said.
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