Economy

Full Details of SEC Investigation into Oando Affairs

Published

8 years ago

24/10/2017

By Modupe Gbadeyanka

Business Post has seen details of an investigation carried by the Securities and Exchange Commission (SEC) on affairs in Oando Plc over petitions filed against the energy firm alleging gross financial misconduct.

In a letter dated October 17, 2017, and sent to the Group Chief Executive Officer of Oando Plc, Mr Adewale Tinubu, a copy seen by Business Post, the capital market regulator said Oando Plc violated different laid down rules and even misinformed the investing public on its actions.

The letter, signed on behalf of the Director-General of SEC, Mr Mounir Gwarzo, by the Head of Legal Department at the agency, Mrs Braimoh Anastasia, said after its investigation, it found out that Alhaji Dahiru Barau Mangal is a shareholder of Oando Plc, while the second petitioner, Ansbury Incorporated, is only a whistleblower.

The letter titled RE: SERIOUS CONCERN TO CORPORATE GOVERNANCE EXISTENCE. GROSS ABUSE OF CORPORATE GOVERNANCE AND FINANCIAL MISMANAGEMENT IN OANDO PLC said it was discovered that the Corporate Governance return submitted by Oando for the period ended December 31, 2016, the remunerations of the Group Chief Executive Officer (GCEO) and the Deputy GCEO were approved by the Board, while the CCEO was responsible for fixing the remuneration of other Executive Directors, which it said violates Part B, 14.3 of the SEC Code of Corporate Governance.

Also, SEC said it found out that the last Board evaluation of Oando Plc was done by KPMG in 2012, a violation of Part B, 15.1 of the SEC Code of Corporate Governance.

The letter stated that Oando is invited to note the violations and henceforth ensure compliance with the SEC Code of Corporate Governance.

According to the letter, SEC said the disposal of Oando Exploration Production Limited (OEPL) to Green Park Management Limited in 2013 was done without the prior approval of the Commission, which violates ISA 2007.

Furthermore, the agency noted that “following the structuring of the OEPL transaction in contravention of the ISA 2007, Oando Plc recorded a proﬁt of about N6 billion from the sale of OEPL that erased the operating loss of N4.68 billion leading to a proﬁt of N1.4 billion for the year 2013.

“The company subsequently declared dividends from the profit. Having admitted that the action was in breach of the ISA 2007, Oando Plc restated its 2013 & 2014 Audited Financial Statements which contained material false and misleading information contrary to Section 60(2) of the ISA 2007.”

SEC further stated in the letter that “the 2014 Rights Issue Circular of Oando Plc contained information relating to the profit reported by Oando Plc in 2013 arising from the sale of OEPL.

“Consequently, the said Rights issue circular contained material misleading information. This action amounts to a violation as contained in Section 85(1), 86(1) and 87(1) of the ISA 2007.”

The capital market regulator stated that Oando breached its Rules and Regulations on Payment of Dividends by remitting in 2014, dividends to the Registrar in piecemeal in violation of Rule 44 (1) of the SEC Rules and Regulations.

“The Commission notes the Report of the Independent Auditors of Oando Plc, Ernst & Young, which is contained on Pages 63-68 of the 2016 Annual Reports & Accounts of Oando Plc, more particularly in Paragraph 1 of Page 64 where the independent auditors reported the going concern status of the Company.

“The Commission observed that certain persons classified as insiders within the provisions of Section 315 of The Investment and Securities Act (ISA), 2007 and who were in possession of conﬁdential price sensitive information not generally available to the public, had between January-October 2015 traded on Oando Plc shares prior to the release of the company’s 2Ol4 Financial Statement, where the company reported a loss of N183 billion.

“On the allegation of insider dealing made by Oando Plc against Alhaji Dahiru Mangal, although investigation was initiated by the Commission, the attention of the Commission was drawn to a letter dated September 21, 2017 from Oando Plc, informing it that a suit had been filed in court in that regard, and that the matter was now sub-judice.”

“The Commission identified certain related party transactions and observed that they were not conducted on arm‘s length

“The Committee noted that Oando Plc declared dividends in 2013 and 2Ol4 from unrealized profits.

“The Commission observed discrepancies in the shareholding structure of Oando Plc. While Alhaji Mangal’s status as a shareholder in Oando Plc is not in contention or dispute, the exact units of shares held by him requires reconciliation.

“The Commission‘s primary role as the apex regulator of The Nigerian capital market is to regulate market participants and protect the investing public. The Commission notes that the above findings are weighty and therefore needs to be further investigated to ascertain their veracity or otherwise.

“After due consideration, the Commission believes that the engagement of a Forensic Auditor to conduct a forensic audit info the affairs of Oando Plc has become necessary. This is pursuant to the statutory duty of the Commission enshrined in Section T3 (k) and (r) of The ISA 2007.

“To ensure the independence and transparency of the exercise, the forensic audit shall be conducted by a consortium of experts, the consortium is composed of the following institutions:

Akintola Willians Deloitte (Team Lead); United Securities Limited; SPA Ajibade & Co; TJADAP Consulting & Associates; and Nasir Muhammad & Co.

“The cost implication of the exercise is N160 million and shall be borne by Oando Plc.

“To ensure that the interest of all shareholders, especially the minority shareholders of Oando Plc are preserved during the course of the exercise, the Commission hereby places the shares of Oando Plc on Technical Suspension.

“The Commission expects Oando Plc to give all the necessary support and co-operation to ensure the success of the forensic audit.

“Please accept the assurances of the Director General’s highest regards.”

Meanwhile, effort made by Business Post to get comment of Oando Plc on this issue failed as an e-mail sent to the firm on Monday, through its media department, was not replied to as at the time of publishing this report on Tuesday.

Economy

NASD Market Falls 1.18% to Extend Losing Streak

Published

24 hours ago

14/03/2026

Adedapo Adesanya

By Adedapo Adesanya

The NASD Over-the-Counter (OTC) Securities Exchange extended its stay in the south for the fourth consecutive session after it shed 1.18 per cent on Friday, March 13.

The unlisted securities market recorded a loss despite closing without a price decliner, and ending with two price gainers led by Geo Fluids Plc, which gained 1o Kobo to sell at N3.10 per share compared with the previous day’s N3.00 per share. Industrial and General Insurance (IGI) Plc appreciated during the session by 2 Kobo to trade at 54 Kobo per unit versus Thursday’s closing price of 52 Kobo per unit.

When the market closed for the day, the market capitalisation lost N29.83 billion to close at N2.489 trillion compared with the N2.519 trillion it finished a day earlier, and the NASD Unlisted Security Index (NSI) crashed by 49.84 points to 4,160.46 points from 4,210.31 points.

Market activity improved yesterday, as the volume of transactions rose 179.5 per cent to 10.4 million units from 3.7 million units, but the value of trades declined by 68.4 per cent to N29.9 million from N95.0 million, while the number of deals weakened by 11.5 per cent to 46 deals from 52 deals.

Central Securities Clearing Systems (CSCS) Plc remained the most active stock by value on a year-to-date basis with 38.4 million units worth N2.4 billion, Okitipupa Plc followed with 6.4 million units traded at N1.1 billion, and FrieslandCampina Wamco Nigeria Plc transacted 6.3 million units for N584.3 million.

Resourcery Plc ended the trading session as the most traded stock by volume on a year-to-date basis with 1.1 billion units valued at N415.6 million, trailed by Geo-Fluids Plc with 130.8 million units valued at N504.5 million, and CSCS Plc with 38.4 million units worth N2.4 billion.

Economy

Naira Trades N1,366/$1 at Official Market, N1,400/$1 at Black Market

Published

1 day ago

14/03/2026

Adedapo Adesanya

By Adedapo Adesanya

The Naira continued to claw back some gains against the Dollar in the different segments of the foreign exchange (FX) market, as its value was strengthened on Friday.

In the black market, it gained N10 against the United States Dollar yesterday to close at N1,400/$1 compared with the preceding day’s rate of N1,410/$1, and at the GTBank forex counter, it chalked up N6 to close at N1,385/$1, in contrast to the N1,391/$1 it was traded a day earlier.

Similarly, in the Nigerian Autonomous Foreign Exchange Market (NAFEX), it appreciated against the greenback during the session by N5.28 or 0.38 per cent to quote at N1,366.23/$1 versus Thursday’s closing price of N1,371.51/$1.

It also improved its value against the Pound Sterling in the official market on Friday by N21.81 to settle at N1,812.99/£1 compared with the previous day’s N1,834.80/£1, and gained N13.86 against the Euro to sell at N1,568.03/€1 versus N1,581.89/€1.

Pressure eased further on the FX market as the Central Bank of Nigeria (CBN) continued interventionist operations this week, selling Dollars to banks to boost liquidity after a $500 million boost last week.

This was complemented by inflows from foreign investors, exporters and non-bank corporates, among others, while Nigeria’s gross external reserves remained above $50 billion, the highest since 2009.

The Governor of the apex bank, Mr Yemi Cardoso, also eased fears of a Naira devaluation, saying the country’s financial system has been strengthened by reforms.

Regardless, external pressure looms as the US Dollar strengthened globally due to its war with Iran, now ongoing for three weeks.

Meanwhile, the cryptocurrency market was largely down as traders and investors continue to align with current realities.

The market is adapting to the conflict in real time. Early in the war, every headline produced an outsized reaction because nobody could price the tail risk. Now, traders have a framework where strikes happen, oil spikes and bitcoin dips only to recover again.

Cardano (ADA) depreciated by 3.8 per cent to $0.2623, Dogecoin (DOGE) lost 1.7 per cent to finish at $0.0948, Ripple (XRP) slumped 1.5 per cent to $1.39, Solana (SOL) dropped 1.4 per cent to sell for $87.33, Binance Coin (BNB) went down by 1.3 per cent to $653.58, Bitcoin (BTC) declined by 1.1 per cent to $70,670.63, and Ethereum (ETH) decreased by 0.9 per cent to $2,078.78.

However, TRON (TRX) appreciated by 1.7 per cent to $0.2941, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) remained unchanged at $1.00 apiece.

Economy

Oil Stays Above $100 as Strait of Hormuz Traffic Stalls

Published

1 day ago

14/03/2026

Adedapo Adesanya

By Adedapo Adesanya

The price of the major crude oil grade, Brent crude oil, closed above $100 on Friday for the second consecutive session, as the Iran war heads toward its third week, with oil tanker traffic through the Strait of Hormuz still effectively at a standstill.

It gained 2.67 per cent or $2.68 during the trading day to close at $103.14 per barrel, while the US West Texas Intermediate (WTI) crude oil grade appreciated by 3.11 per cent or $2.98 to settle at $98.71 per barrel.

Brent futures were up about 10 per cent for the week following the 27 per cent rise seen last week, which marked the biggest weekly gain in oil prices since the COVID-19 pandemic in 2020. WTI futures, which saw their best week since 1983 last week, ended the week more than 8 per cent higher.

US President Donald Trump said American forces launched a major bombing raid on Iran’s strategic Kharg Island, targeting military facilities on the key Persian Gulf outpost while warning Iran that its vital oil infrastructure could be destroyed if shipping in the Strait of Hormuz is disrupted.

The terminal accounts for roughly 90 per cent of Iranian crude shipments, loading millions of barrels per day onto tankers bound largely for Asian markets.

The US and Israel’s strikes in the conflict have largely targeted Iranian military and nuclear infrastructure. Oil facilities elsewhere in Iran have been hit, but Kharg’s massive storage tanks, jetties, and pipelines had remained untouched until the latest strike.

Iran’s new supreme leader, Mojtaba Khamenei, vowed to keep fighting in a message delivered via state television.

There have been a number of attacks on foreign ships in or near the Strait, feeding into concerns that a prolonged war could translate to a global economic shock.

Prices are rising despite the US and its allies rolling out some measures to keep a lid on energy costs.

The International Energy Agency (IEA) has agreed to release 400 million stockpiled barrels, the largest such action in history.

The US has issued a 30-day waiver for India to purchase sanctioned oil from Russia. President Donald Trump is considering loosening rules under the Jones Act that require American ships to transport goods between domestic ports, including oil and gas, in an effort to lower costs.

Traders are continuing to monitor developments in the Middle East.