Economy
ExxonMobil Pledges to Henceforth Comply with Nigerian Content Act
By Modupe Gbadeyanka
Managing Director of ExxonMobil Nigeria, Mr Paul McGrath, has promised that his company will henceforth comply with all provisions of the Nigerian Content Act alongside associated regulations.
Mr McGrath made this pledge on Thursday in Lagos when he received the management of the Nigerian Content Development and Monitoring Board (NCDMB), led by the Executive Secretary, Mr Simbi Wabote.
The ExxonMobil boss described compliance with the provisions of the Nigerian Content Act as not only a legal and moral obligation for operating and servicing oil and gas companies but also a good strategy for improving profitability and sustainability of operations.
He promised that ExxonMobil will collaborate with the board to achieve its mandate, assuring that “together we can transform things.”
He admitted that the company had defaulted in complying with some provisions of the act in the past, but said such would stop henceforth.
Mr McGrath, who was appointed in March 2017, added that the company would also seek the agency’s guidance and assistance when faced with difficulties and exigencies of business.
“The new leadership has zero tolerance for Nigerian Content violations and non-compliance issues. If we must do, we have to first discuss with NCDMB for guidance,” he said.
He also underscored the collaboration ExxonMobil had enjoyed from the NCDMB over time, which contributed to the company’s successes.
The MD also pledged the company’s support for the board’s initiatives, stating that it is open to staff exchange between the two organisations and is working to open a liaison office in the agency’s new headquarters, when completed in Yenagoa, Bayelsa State.
In his presentation, Engr. Simbi Wabote explained that the visit was in line with the Board’s efforts to encourage and support operating companies to introduce and execute new projects needed to sustain and grow Nigerian Content in the oil and gas industry.
He reiterated the board’s determination to shorten the industry contracting cycle, which informed the adoption of definite timelines for statutory approvals and pioneering the development and use of Service Level Agreements (SLAs).
The first SLA was signed between the Board and the Nigerian Liquefied Natural Gas Company (NLNG) and it commits the parties to compliance with Nigerian Content Act and timely approvals of documents respectively. The model will soon be replicated with other operating companies.
Mr Wabote also advised ExxonMobil to begin early to engage the Board on the development of its Owowo field to enhance utilization of in-country capacities.
Speaking further, the Executive Secretary cautioned operating companies against engaging in single sourcing and selective tendering, stressing that reasons for such must be justifiable and discussed with the Board ahead of execution. He also warned companies against irregular spot hiring and utilization of vessels under the guise of emergency.
On the status of the Nigerian Content Intervention Fund (NCIF), Mr Wabote explained that disbursement to deserving companies was yet to start because the board is working to perfect the governance process.
He added that the Funds would only be disbursed through a banking process, after proper risk assessments so as to create the needed confidence and trust.
By Aduragbemi Omiyale
Over the weekend, more than 3,000 Nigerians joined a public forum organised by the Nigerian Exchange (NGX) Limited to educate them on money management and sustainable investing skills.
The programme, moderated by US-based financial planner and author, Mr Kalu Aja, was held via a Twitter Spaces session, with the different products available on the exchange, including equities, fixed income, Exchange Traded Funds (ETFs), mutual funds and Exchange Traded Derivatives (ETDs) explained to them by the Head of Product Development at NGX, Ms Chidinma Chukwueke-Okolo.
She spoke about ETFs and mutual funds, which give investors options to diversify their investments and reduce risk in the market, listing examples on NGX.
“ETFs are low-cost passive investment schemes that track the performance of listed indices on the Exchange and help to diversify while Mutual Funds are portfolios of different investor funds pooled by a fund manager to invest actively in the market,” Ms Chukwueke-Okolo added.
She also spoke on responsible investing in accordance with the theme of Global Money Week, explaining to the participants how to access sustainable investment products on NGX.
The capital market expert informed prospective investors to watch out for the recently approved NGX Technology Board, which will feature listings from tech companies who wish to gain access to the capital market, urging investors to take advantage of NGX’s website to do their research on the market and improve their knowledge.
Also speaking, the chief executive of MoneyAfrica and Ladda.ng, Ms Tosin Olaseinde, gave practical investing tips to listeners and stressed the importance of long-term investing, budgeting and saving on financial security.
“You have to be intentional about cultivating good financial habits. Also, understand your risk appetite and diversify between low, medium and high-risk investments,” she posited.
By Modupe Gbadeyanka
The credit ratings of a leading underwriting company in Nigeria, AXA Mansard Insurance Plc, have been affirmed by a reputable rating agency, AM Best.
The ratings affirmed were the Financial Strength Rating of B+ (Good) and the Long-Term Issuer Credit Rating of “bbb-” (Good), with the outlook stable.
AM Best explained that the ratings reflect the strength of AXA Mansard’s balance sheet, which it said was strong.
“The ratings also reflect rating enhancement, in the form of lift, from AXA Mansard’s ultimate parent, AXA S.A,” a statement from AM Best said.
“AXA Mansard’s balance sheet strength is underpinned by risk-adjusted capitalisation at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR).
“Capital consumption is primarily driven by asset risk, which incorporates the company’s substantial real estate investments,” it added.
The rating firm said it expects prospective operating performance to be supported by corrective underwriting measures in the health portfolio, as well as positive contributions from the company’s life book, affirming that the insurance company has a solid foothold in its domestic market where it ranks among the largest non-life companies, and it enjoys a leading market position in the health segment.
“With good long-term growth prospects, AXA Mansard is expected to further strengthen its competitive market position over the coming years,” a part of the statement noted.
Commenting on the ratings, the Chief Financial Officer of Axa Mansard, Ms Ngozi Ola-Israel, said “the affirmation of our ratings by an agency like AM Best lends credence to the significant improvement in our internal capital generation abilities with a strong focus on continuously improving our underwriting performance through technical excellence.”
Also speaking on the ratings, the Chief Executive Officer of Axa Mansard, Mr Kunle Ahmed, said the efforts put in place by the team to build a world-class insurance company were yielding positive results.
“The affirmation of our ratings as stable and the retention of our FSR and ICR ratings despite the exposure to the high levels of economic, political and financial system risks further testify to our strong leading position and capacity to provide security for our stakeholders and ability to protect what truly matters to them,” he stated.
AM Best Company is a global credit rating agency with over 100 years of history of providing quantitative and qualitative assessments for Insurance companies, with its Best’s Credit Rating Methodology used to determine the financial strength and creditworthiness of insurance companies.
AM Best is the world’s oldest and most authoritative insurance rating and information source.
By Adedapo Adesanya
The value of the NASD over-the-counter Securities Exchange increased in the 12th week of trading last week for the fifth straight week by N49.17 billion or 5.1 per cent to N1.01 trillion from N961.12 billion in the previous week.
This was influenced by the admission of Purple Real Estate Income Plc into the OTC stock market and it made it the second time the bourse was hitting the N1 trillion mark after Access Bank Plc pushed the market to that region last year.
Business Post observed that the inclusion of Purple Real Estate Income into the platform caused the expansion, but the market on its own closed weaker as the NASD Unlisted Securities Index (NSI) fell by 0.15 per cent or 1.07 points to settle at 730.37 points compared with 731.44 points recorded in the previous week.
In the week, 11 Plc lost 6.7 per cent to close at N140.00 per unit versus N150.00 per unit, Central Securities Clearing System (CSCS) depreciated by 1.4 per cent to N14.00 per share compared with N14.02 per share, First Trust Microfinance Bank Plc declined by 9.6 per cent to close at 47 Kobo per share from 52 Kobo per share, and Industrial and General Insurance (IGI) Plc shed 12.5 per cent to end at 7 Kobo per unit, in contrast to the preceding week’s 8 Kobo per unit.
On the flip side, FrieslandCampina Wamco Nigeria Plc appreciated by 1.2 per cent to N76.00 per share from N75.11 per share, and Geo-Fluids jumped by 32.4 per cent to N1.8 per unit from N1.36 per unit.
On the activity chart, IGI Plc was the most traded stock by volume last week with 45.96 million units, Geo-Fluids Plc traded 36.90 million units, and First Trust Microfinance Bank Plc transacted 4.89 million.
Conversely, Geo-Fluids Plc was the most active stock by value with N56 million, Nipco Plc followed with N9 million, FrieslandCampina Wamco Nigeria Plc posted N9 million, and 11 Plc raked in N4 million.
At the close of transactions, there was a 61.1 per cent decrease in the trading value to N88.8 million from N228.5 million, while the trading volume rose by 109.3 per cent to 88.2 million units from 42.1 million units, with the number of deals declining by 4.3 per cent to 45 deals from 47 deals.
In the year, the alternative stock exchange has recorded a turnover of 700.3 million units of securities valued at N2.60 billion traded in 735 deals.
