Economy
Groups Demand Probe of NNPC, to Petition EFCC
By Modupe Gbadeyanka
Two groups in Nigeria, the Conference of Nigeria Political Parties (CNPP) and the Coalition of National Civil Society Organisations Against Inept Leaders, have demanded an open investigation into how two companies owned by virtually the same individuals emerged as the top two preferred bidders in the slop oil sale by the Nigerian National Petroleum Corporation (NNPC).
They want answers to the recruitment of 487 new workers in the moribund refinery that generated no revenue, with the payment of N23 billion as salaries in 2020.
In a statement, the CNPP wondered how the Port Harcourt Refinery Company (PHRC), which is allegedly managed by one Ahmed Dikko, an engineer, reported zero income in 2020 and yet incurred administrative expenses of N19.215 billion, paid salaries, wages and other benefits to workers to the tune of N22.55 billion as shown in the 2020 audited financial reports of the NNPC.
The organisations, in a joint statement signed by the Secretary-General of the CNPP, Mr Willy Ezugwu, and the Publicity Secretary of the Coalition of National Civil Society Organisations, Mr Ali Abacha, called for a thorough investigation into the procurement process, which threw up the companies in the controversial slop oil sale now found to be owned by the same directors and all others operations of the corporation since 2015.
Disclosing that they were set to petition the Economic and Financial Crimes Commission (EFCC) over what it described as “manipulative management” of the NNPC, the CNPP queried “a controversial bid that saw scarce slop oil, which was traditionally reserved for local industries, being controversially offered to preferred bidders that are export companies in a suspicious deal.”
The CNPP and the coalition of civil society said that, “According to media reports, the corporation has begun a process of buying media editors to ensure that their activities are not dissected, especially after the release of its 2020 audited financial statements and declaration of doubtful profits.
“Already, data collated from audited financial statements as released by the NNPC, led by its Group Managing Director, Mele Kyari, recently had exposed how Port Harcourt Refinery Company (PHRC), which is managed by one Ahmed Dikko, an engineer, reported zero revenue in 2020 but incurred administrative expenses of N19.215 billion, paying salaries, wages and other benefits to unproductive workers to the tune of N22.55 billion.
“Worse still, even though it generated zero revenue, Port Harcourt refinery employed 487 new workers and paid N23 billion as salaries in 2020.
“It is becoming more and more obvious that there are fishy deals which led to the budgeting of $1.5 billion to revamp the over 50-year old Port Harcourt refinery.
“We had predicted that the planned resuscitation of the refinery was a mere conduit for siphoning public funds but we are now working to connect the $1.5 billion turnaround maintenance budget and overnight recruitment of 487 new workers with the sudden 2020 profit declared by the NNPC at a time no refinery is generating income in the country.
“We, therefore, demand for a though the investigation into the procurement process at NNPC, the activities of the Group Managing Director, Mele Kyari and that of the Minister of State for Petroleum Resources, Timiprye Sylva, over courageous media report of multiple behind-the-scene moves since the slop oil bid winners were announced as contained in a recent media investigation by Premium Times.
“The bid supervised by the Group Executive Director (GED) Refinery, Mustapha Yakubu has left more questions than answers as the media report added that the first allocation issued to Sign Oil & Gas on June 22, 2021, expired with the company unable to meet a 10 working-day deadline for payment.
“On July 8, 2021, the investigative report noted, the allocation was transferred to the second bid winner, Synthesis Integrated Pure Oil at N105.00k per litre instead of N111.00k per litre, which is seen as part of schemes to achieve a predetermined goal.
“For us, these are signs of manipulative management of the nation’s oil assets and clever moves to siphon public funds through cronies, associates and for members of oil cabals with protections from certain government officials who believe that the anti-corruption agencies are in their pockets.”
By Adedapo Adesanya
Food Concepts Plc neutralized the gains recorded by three securities, returning the NASD Over-the-Counter (OTC) Securities Exchange into the negative territory with a 0.27 per cent loss on Thursday, December 4.
Yesterday, the share price of the parent company of Chicken Republic and PieXpress declined by 34 Kobo to sell at N3.15 per unit compared with the previous day’s N3.49 per unit.
This shrank the market capitalisation of the OTC bourse by N5.72 billion to N2.136 billion from N2.142 trillion and weakened the NASD Unlisted Security Index (NSI) by 9.57 points to 3,571.53 points from 3,581.10 points.
Business Post reports that Central Securities Clearing System (CSCS) Plc went down by 50 Kobo to N38.50 per share from N38.00 per share, FrieslandCampina Wamco Nigeria Plc gained 29 Kobo to sell at N55.79 per unit versus N55.50 per unit, and Geo-Fluids Plc added 5 Kobo to close at N4.60 per share compared with Wednesday’s closing price of N4.55 per share.
Trading data indicated that the volume of securities recorded at the session surged by 6,885.3 per cent to 4.3 million units from the 61,570 units posted a day earlier, the value of securities increased by 10,301.7 per cent to N947.2 million from N3.3 million, and the number of deals went up by 146.7 per cent to 37 deals from the 15 deals achieved in the previous trading session.
At the close of business, Infrastructure Credit Guarantee Company (InfraCredit) Plc was the most traded stock by value on a year-to-date basis with the sale of 5.8 billion units for N16.4 billion, trailed by Okitipupa Plc with 170.4 million units worth N8.0 billion, and Air Liquide Plc with 507.5 million units valued at N4.2 billion.
InfraCredit Plc also finished the session as the most traded stock by volume on a year-to-date basis with 5.8 billion units transacted for N16.4 billion, followed by Industrial and General Insurance (IGI) Plc with 1.2 billion units sold for N420.2 million, and Impresit Bakolori Plc with 536.9 million units traded for N524.9 million.
By Dipo Olowookere
The upward trend witnessed at the Nigerian Exchange (NGX) Limited in recent sessions continued on Thursday as it further improved by 0.10 per cent.
This was despite investor sentiment turning bearish after the local equity market ended with 23 price gainers and 28 price gainers, indicating a negative market breadth index.
UAC Nigeria gained 10.00 per cent to finish at N88.00, Morison Industries appreciated by 9.94 per cent to N3.54, Ecobank rose by 8.53 per cent to N36.90, and Coronation Insurance grew by 8.47 per cent to N2.56.
On the flip side, Ellah Lakes depreciated by 10.00 per cent to N13.14, Eunisell Nigeria also shed 10.00 per cent to finish at N72.90, Transcorp Hotels slipped by 9.95 per cent to N157.50, Omatek shrank by 9.23 per cent to N1.18, and Guinea Insurance dipped by 8.46 per cent to N1.19.
Yesterday, the All-Share Index (ASI) went up by 152.28 points to 145,476.15 points from 145,323.87 points and the market capitalisation chalked up N97 billion to finish at N92.726 trillion compared with the previous day’s N92.629 trillion.
Customs Street was bubbling with activities on Thursday, though the trading volume and value slightly went down, according to data.
A total of 1.9 billion stocks worth N19.2 billion exchanged hands in 23,369 deals during the session versus the N2.3 billion valued at N21.0 billion traded in 21,513 deals a day earlier.
This showed that the number of deals increased by 8.63 per cent, the volume of transactions depleted by 17.39 per cent, and the value of trades decreased by 8.57 per cent.
For another trading day, eTranzact led the activity chart with 1.6 billion units sold for N6.4 billion, Fidelity Bank traded 31.0 million units worth N589.3 million, GTCO exchanged 28.3 million units valued at N2.5 billion, Zenith Bank transacted 27.1 million units for N1.6 billion, and Ecobank traded 21.9 million units worth N744.3 million.
By Adedapo Adesanya
The Naira marginally depreciated against the United States Dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEM) on Thursday, December 4 amid renewed forex pressure associated with December.
At the official market yesterday, the Nigerian currency lost 0.01 per cent or 18 Kobo against the Dollar to close at N1,447.83/$1 compared with the previous day’s N1,447.65/$1.
It was not a different scenario with the local currency in the same market segment against the Pound Sterling as it further shed N15.43 to sell for N1,930.97/£1 versus Wednesday’s closing price of N1,925.08/£1 and declined against the Euro by 20 Kobo to finish at N1,688.74/€1 compared with the preceding session’s N1,688.54/€1.
Similarly, the Nigerian Naira lost N5 against the greenback in the black market to quote at N1,465/$1 compared with the previous day’s value of N1,460/$1 but closed flat against the Dollar at the GTBank FX counter at N1,453/$1.
Fluctuations in trading range is expected to continue during the festive season as traders expect the Nigerian currency to be stable, supported by intervention s by to the Central Bank of Nigeria (CBN)in the face of steady dollar demand.
Support is also expected in coming weeks as seasonal activities, particularly the stylised “Detty December” festivities, will see inflows that will give the Naira a boost after it depreciated mildly last month, according to a new report.
“As the festive Detty December season intensifies, inbound travel, tourism spending, and diaspora inflows are expected to provide moderate support for FX liquidity,” analysts at the research unit of FMDA said in its latest monthly report for November.
Traders cited by Reuters expect that the Naira will trade within a band of N1,443-N1,450 next week, buoyed by improved FX interventions by the apex bank.
Meanwhile, the crypto market was down as the US Federal Reserve’s preferred inflation gauge, core PCE, likely rose in September—moving in the wrong direction. However, volatility indices show no signs of major turbulence.
If the actual figure matches estimates, it would mark 55 straight months of inflation above the US central bank’s 2 per cent target. The sticky inflation would strengthen the hawkish policymakers, who are in favour of slower rate cuts.
Ripple (XRP) depreciated by 4.5 per cent to $2.08, Solana (SOL) went down by 3.8 per cent to $138.11, Litecoin (LTC) shrank by 3.1 per cent to $83.23, Dogecoin (DOGE) slid by 2.5 per cent to $0.1463, Cardano (ADA) declined by 2.1 per cent to $0.4368, Bitcoin (BTC) fell by 0.9 per cent to $91,975.45, Binance Coin (BNB) crumbled by 0.9 per cent to $899.41, and Ethereum (ETH) dropped by 0.7 per cent to $3,156.44, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) closed flat at $1.00 apiece.
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