Economy
NCDMB Boss Tasks Local Firms to be Competitive
By Dipo Olowookere
Executive Secretary of the Nigerian Content Development and Monitoring Board (NCDMB), Mr Simbi Wabote, has advised local service companies and manufacturers to strive to be competitive and adjust their business models in line with trends to stay in business.
Mr Wabote gave this charge while speaking on the Requirements for Sustainable Growth of Manufacturing in Nigeria’s Oil & Gas Sector, at the Nigerian International Pipeline Technology and Security Conference organized by the Pipeline Professionals Association of Nigeria in Abuja recently.
According to him, the board will continue to ensure patronage of local businesses in line with the provisions of the Nigerian Content Act and Presidential Executive Order 003, but companies that set their prices above reasonable thresholds will not be supported.
“It must be stated that local content is not at all cost. There is a level of premium that becomes un-economic for patronage and there is little the Board can do in such situations,” he said.
He commended the Federal Government for promoting the Local Content policy through various initiatives, one of which is the Executive Order 003, which mandates all Ministries, Departments and Agencies to give consideration for the procurement of at least 40 percent made-in-Nigeria products and services across all sectors of the economy.
Speaking further, the Executive Secretary listed requirements that would make the nation’s manufacturing sector grow, including the provision of steady power supply and patronage of locally manufactured goods.
He also gave an insight into some achievements recorded by the Board, including an increase of in-country value addition from the paltry five percent level to 26 percent.
Mr Wabote mentioned the existence of two world-class pipe mills, five pipe coating yards, the increase in the number of Nigerian-owed marine vessels to 36 percent, resuscitation of moribund dry-dock facilities and local manufacturing of electrical cables required in the oil and gas industry. He further stated that Nigeria has also grown its fabrication capability to over 60,000 metric tonnes per annum and has capacity to carry out over 80 percent of engineering design in-country.
Other achievements of the Board include the creation of over 30,000 direct jobs, delivery of over six million training man-hours, award of over 90 percent of industry contracts to Nigerian companies, growth of indigenous operating companies and construction of facility for in-country integration of Floating, Production, Storage and Offloading vessels.
In his speech at the event, the Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Dr Maikanti Kacalla Baru, described pipeline vandalism as a great threat to Nigerian economy, both in terms of revenue lost and environmental effects and charged key players in the industry to confront the challenge.
He insisted that pipelines remained the cheapest means of transporting crude oil and natural gas, regretting that the Trans Niger Pipeline (TNP) with a capacity of 150,000 barrels of production per day (Bopd) was breached 39 times in 2016. “Year-to-date 2017, we have recorded 27 breaching incidents on the TNP,” he said.
The GMD added that “for the Trans Forcados Pipeline (TFP) with a capacity of 300,000 Bopd, recorded 17 breaches in 2016 while year-to-date 2017, we have recorded at least 15 breaching incidents on the TFP.”
Mr Baru also lamented that about 700,000 barrels of oil per day was deferred due to pipeline vandalism in 2016 “while power generation in the country dropped significantly as the gas plants had to shut down thereby resulting in shortages in gas supply to power.
“At present, huge amount of money is spent on protecting these pipelines which significantly add to the cost of production,” he added.
By Modupe Gbadeyanka
The federal government has been asked by the Nigerian Bar Association (NBA) to suspend the implementation of the controversial tax laws.
In a reaction to the tax reform acts, the president of the group, Mr Afam Osigwe (SAN), the suspension of the laws would allow for a proper investigation into allegations of alterations in the gazetted and harmonised copies.
A member of the House of Representatives, Mr Abdussamad Dasuki, alleged that some parts of the laws passed by the parliament were different from the gazetted copy.
To address the issues raised, the NBA said it is “imperative that a comprehensive, open, and transparent investigation be conducted to clarify the circumstances surrounding the enactment of the laws and to restore public confidence in the legislative process.”
“Until these issues are fully examined and resolved, all plans for the implementation of the Tax Reform Acts should be immediately suspended,” the association declared.
It noted that the controversies “raise grave concerns about the integrity, transparency, and credibility of Nigeria’s legislative process.”
“These developments strike at the very heart of constitutional governance and call into question the procedural sanctity that must attend lawmaking in a democratic society,” it noted.
“Legal and policy uncertainty of this magnitude has far-reaching consequences. It unsettles the business environment, erodes investor confidence, and creates unpredictability for individuals, businesses, and institutions required to comply with the law. Such uncertainty is inimical to economic stability and should have no place in a system governed by the rule of law.
“Nigeria’s constitutional democracy demands that laws, especially those with profound economic and social implications, emerge from processes that are transparent, accountable, and beyond reproach. Anything short of this undermines public trust and weakens the foundation upon which lawful governance rests.
“We therefore call on all relevant authorities to act swiftly and responsibly in addressing this controversy, in the overriding interest of constitutional order, economic stability, and the preservation of the rule of law,” the organisation stated.
By Adedapo Adesanya
Demand for hot stocks, including MRS Oil Plc, buoyed the NASD Over-the-Counter (OTC) Securities Exchange by 0.52 per cent on Tuesday, December 23.
The energy company was one of the three price gainers for the session as it chalked up N19.69 to sell at N216.59 per share versus the previous day’s value of N196.90 per share.
Further, FrieslandCampina Wamco Nigeria Plc gained N2.95 to close at N56.75 per unit versus N53.80 per unit and Golden Capital Plc appreciated by 84 Kobo to N9.29 per share from Monday’s N8.45 per share.
Consequently, the market capitalisation went up by N10.95 billion to N2.125 trillion from N2.125 trillion and the NASD Unlisted Security Index (NSI) rose by 18.31 points to 3,570.37 points from 3,552.06 points.
Yesterday, the NASD bourse recorded a price loser, the Central Securities Clearing System Plc (CSCS), which gave up 17 Kobo to close at N33.70 per unit against the previous trading value of N33.87 per unit.
The volume of securities traded at the session went down by 97.6 per cent to 297,902 units from the previous day’s 12.6 million units, the value of securities decreased by 98.5 per cent to N10.5 million from N713.6 million, and the number of deals remained flat at 32 deals.
By value, Infrastructure Credit Guarantee Company (InfraCredit) Plc ended as the most actively traded stock on a year-to-date basis with 5.8 billion units exchanged for N16.4 billion. This was followed by Okitipupa Plc, which traded 178.9 million units valued at N9.5 billion, and MRS Oil Plc with 36.1 million units worth N4.9 billion.
In terms of volume, also on a year-to-date basis, InfraCredit Plc led the chart with a turnover of 5.8 billion units traded for N16.4 billion. Industrial and General Insurance (IGI) Plc ranked second with 1.2 billion units sold for N420.7 million, while Impresit Bakolori Plc followed with the sale of 536.9 million units valued at N524.9 million.
By Dipo Olowookere
It was another bullish trading session for the Nigerian Exchange (NGX) Limited as it closed higher by 0.59 per cent on Tuesday.
The market further rallied due to continued interest in large and mid-cap stocks on the exchange by investors rebalancing their portfolios for the year-end.
Yesterday, Aluminium Extrusion sustained its upward trajectory after it further appreciated by 9.96 per cent to N14.90, as Austin Laz gained 9.81 per cent to close at N2.91, Custodian Investment improved by 9.69 per cent to N38.50, and First Holdco soared by 9.35 per cent to N50.30.
Conversely, Royal Exchange declined by 7.22 per cent to N1.80, Champion Breweries shrank by 6.57 per cent to N15.65, NASCON lost 5.36 per cent to trade at N105.05, Sovereign Trust Insurance depreciated by 5.28 per cent to N3.77, and Japaul went down by 4.51 per cent to N2.33.
At the close of business, 29 shares ended on the gainers’ table and 27 shares finished on the losers’ log, representing a positive market breadth index and bullish investor sentiment.
This raised the All-Share Index (ASI) by 895.06 points to 153,354.13 points from 152,459.07 points and lifted the market capitalisation by N579 billion to N97.772 trillion from the previous day’s N97.193 trillion.
VFD Group finished the day as the busiest stock after it recorded a turnover of 192.0 million units worth N2.1 billion, GTCO exchanged 63.5 million units valued at N5.6 billion, Access Holdings traded 49.8 million units for N1.0 billion, First Holdco sold 45.8 million units valued at N2.3 billion, and Secure Electronic Technology transacted 38.3 million units worth N28.4 million.
In all, market participants bought and sold 677.4 million units valued at N20.8 billion in 27,589 deals compared with the 451.5 million units worth N13.0 billion traded in 33,327 deals on Monday, showing an improvement in the trading volume and value by 50.03 per cent and 60.00 per cent apiece, and a shortfall in the number of deals by 17.22 per cent.
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