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 Adedapo Adesanya
The NASD Over-the-Counter (OTC) Securities Exchange made a marginal 0.01 per cent rise on Tuesday, April 29, pushing the Unlisted Security Index (NSI) up by 0.29 points to 3,282.42 points from the previous session’s 3,282.42 points.
Also, the market capitalisation of the trading platform increased slightly by N170 million to remain relatively unchanged at N1.922 trillion.
At the trading session, the bourse ended with two price gainers led by Geo-Fluids Plc, which chalked up 15 Kobo to sell at N2.13 per unit compared with the previous day’s N1.98 per unit, and Food Concepts Plc grew by 13 Kobo to settle at N1.29 per share compared with the N1.17 per share it was traded a day earlier.
However, Afriland Properties Plc lost N1.71 to close at N16.07 per unit versus the preceding day’s price of N17.78 per unit, and FrieslandCampina Wamco Nigeria Plc crumbled by 65 Kobo to finish at N37.50 per share, in contrast to Monday’s closing value of N38.15 per share.
The volume of securities traded in the session went up by 223.6 per cent to 2.2 million units from the 692,885 units transacted in the previous trading day, the value of transactions jumped by 70.8 per cent to N38.6 million from N22.6 million, while the number of deals fell by 18.4 per cent to 31 deals from 38 deals.
Impresit Bakolori Plc remained the most active stock by volume on a year-to-date basis with 533.9 million units worth N520.9 million, followed by Okitipupa Plc with 153.6 million units sold for N4.9 billion, and Industrial and General Insurance (IGI) Plc with a turnover of 71.2 million units valued at N24.2 million.
The most traded stock by value on a year-to-date basis was Okitipupa Plc with a turnover of 153.6 million worth N4.9 billion, trailed by FrieslandCampina Wamco Nigeria Plc with the sale of 14.7 million units for N566.9 million, and Impresit Bakolori Plc 533.9 million units valued at N520.9 million.
By Adedapo Adesanya
The Naira marginally appreciated against the United States Dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEX) on Friday, April 11.
Data obtained by Business Post from the Central Bank of Nigeria (CBN) showed that the exchange rate closed at N1,601.04/$1 during the trading session compared with the previous day’s value of N1,601.38/$1, indicating that the Nigerian currency improved its value by 0.08 per cent or 34 Kobo against the greenback.
Also, against the Pound Sterling, the local currency appreciated yesterday by N5.57 to sell for N2,145.85/£1 versus Monday’s closing price of N2,186.65/£1 but against the Euro, it lost N5.00 to trade at N1,823.82/€1, in contrast to the N1,818.82/€1 it was exchanged a day earlier.
At the parallel market, the Nigerian Naira maintained stability against the US Dollar on Tuesday, remaining unchanged at N1,610/$1.
Meanwhile, the cryptocurrency market turned bearish yesterday after a wave of economic data suggests the US economic activity is slowing down due to the tariffs policies unleashed by the administration of President Donald Trump.
Consumer confidence, according to a survey by the Conference Board, is currently at its lowest level since May 2020, a period when the world was on lockdown.
However, there are evidence that negotiation of trade deals with other countries, could offer support.
Dogecoin (DOGE) depleted by 3.3 per cent to sell at $0.1740, Ripple (XRP) lost 2.6 per cent to quote at $2.22, Cardano slumped by 2.4 per cent to trade at $0.6955, Litecoin (LTC) went down by 1.9 per cent to finish at $84.89, and Solana (SOL) recorded a 1.4 per cent depreciation to close at $146.55.
Further, Ethereum (ETH) declined by 1.3 per cent to end at $1,779.01, Binance Coin (BNB) crumbled by 1.2 per cent to settle at $603.30, and Bitcoin (BTC) slipped by 0.2 per cent to trade at $94,682.75, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) remained unchanged at $1.00 each.
By Dipo Olowookere
An additional N11.49 billion has been recovered by the House of Representatives Committee on Public Accounts from some oil companies operating in Nigeria.
A statement signed by the spokesman of the lower chamber of the National Assembly, Mr Akin Rotimi, said the total amount recovered from these energy firms is now N61.5 billion.
He stated that the recovered funds were from oil and gas companies with outstanding obligations to the federal government.
It was revealed that $182,057.44 (N291.29 million) was recovered from Platform Petroleum Limited, $730,889.37 (N1.17 billion) was from Midwestern Oil and Gas, N1.58 billion from Seplat Energy, $3.9 million (N6.1 billion) from Aradel Holdings, $500,000 (N775 million)
From Network Exploration & Production, and $1 million (N1.55 billion) from Shoreline Resources Limited.
According to the statement, the committee’s intensified efforts are anchored on findings from the Auditor-General’s reports and data obtained from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).
These have informed sustained engagements with oil firms to ensure accountability for unremitted funds and outstanding liabilities.
The legislative arm of government also warned some organisations ignoring invitations to desist from such.
It said these defaulting firms collectively owe over $384 million and N325.7 million to the federal government, listing them as Neconde Energy Ltd – $110.5 million and N325.7 million, Heirs Holdings – $137.7 million, AITEO Ltd – $34.8 million, Continental Oil & Gas Ltd – $31 million, General Hydrocarbon – $28.4 million, Energia Ltd – $19.5 million, Waltersmith OML 16 – $8.7 million, Bilton – $5 million, Pillar Oil Ltd – $4.6 million, Millennium Oil and Gas Ltd – $2.067 million, Conoil Producing Ltd – $1.1 million, and Frontier OML 13 – $952,216.51.
“This Committee will not tolerate attempts by corporate entities to evade their responsibility to the Nigerian people.
“These companies are withholding billions of Naira owed to the federal government, and we will not allow them to disregard the authority of parliament.
“If these companies believe they are too big to be held accountable, they must understand that their licenses are at risk.
“We are prepared to recommend immediate revocation for any company that shows contempt for this Committee and the laws of the nation,” the chairman of the panel, Mr Bamidele Salam, fumed.
“No company is above the law. The funds being withheld are critical to the country’s growth and must not be hoarded while Nigeria suffers. Every company operating in Nigeria must settle its obligations promptly, as required by law,” he declared.
-
Feature/OPED5 years agoDavos was Different this year
-
Travel/Tourism9 years ago
Lagos Seals Western Lodge Hotel In Ikorodu
-
Showbiz2 years agoEstranged Lover Releases Videos of Empress Njamah Bathing
-
Banking7 years agoSort Codes of GTBank Branches in Nigeria
-
Economy2 years agoSubsidy Removal: CNG at N130 Per Litre Cheaper Than Petrol—IPMAN
-
Banking2 years agoFirst Bank Announces Planned Downtime
-
Sports2 years agoHighest Paid Nigerian Footballer – How Much Do Nigerian Footballers Earn
-
Technology4 years agoHow To Link Your MTN, Airtel, Glo, 9mobile Lines to NIN
1 Comment