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Economy

NCDMB, Navy Collaborate to Enforce Oil and Gas Act

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Oil and Gas Act

By Adedapo Adesanya

The Nigerian Content Development and Monitoring Board (NCDMB) and the Nigerian Navy have reached an agreement to collaborate closely to enforce the Nigerian Oil and Gas Industry Content Development (NOGICD) Act in maritime operations.

The partnership will help curb the use of non–compliant and non–categorized vessels and intercept illegal vessels and non–compliant crew members on oil and gas locations.

The two organisations would set up a high-level committee that would work out detailed modalities for the collaboration and enable both organizations to accomplish their respective mandates.

These decisions were reached during the visit of the Executive Secretary of NCDMB, Mr Simbi Kesiye Wabote to the Chief of Naval Staff, Vice Admiral Awwal Zubairu Gambo in Abuja.

According to the Executive Secretary, the board receives alerts regularly via its whistle-blowing portal and would like to investigate such information and recommend genuine cases to the Navy.

Other possible areas of collaboration include support to the board in assessment visits to vessels and provision of information to the board on vessels and tankers plying the Nigerian waters and oil and gas locations.

Mr Wabote indicated that the Navy is well situated to drive the security aspect of the industry’s operations, particularly in securing the nation’s shores against piracy and illegal oil bunkering.

He said the Navy’s role was critical because the bulk of Nigeria’s oil and gas reserves lie along with the coastal areas of the country including major infrastructure and plants for hydrocarbon processing and exports.

He also commended the Navy for its efforts in promoting Nigerian content, notably by engaging the services of indigenous engineers and service companies in the fabrication and maintenance of Navy boats, thereby boosting local content in the industry.

He highlighted the need for closer ties particularly because of the Board’s long-term vision to increase Nigerian Content levels in the oil and gas sector from the current level of about 40 per cent to 70 per cent by the year 2027 as part of the Nigerian Content 10-Year Strategic Roadmap.

He identified the board’s marine vessels development and categorization strategy as one of the core initiatives that would support the actualisation of the 10-year roadmap.

The goals of the marine vessel initiative are to promote the construction and maintain vessels in Nigerian yards, stimulate ownership of marine vessels by Nigerian entities, grow flagging & registration of vessels in Nigeria, deepen Nigerian manning of marine vessels, and develop world-class ship repairs and shipbuilding yard.

He reported that the board had made progress in the various aspects of these objectives such as support for the acquisition of marine vessels by Nigerians via the Nigerian Content Intervention Fund managed by the Bank of Industry (BoI), provision of sea-time training for marine cadets, patronage of in-country dry-docks, and the completion of the feasibility study and site selection for the proposed development of shipyard.

Listing some of the achievements of the board in the past five years, Wabote stated that it had begun the first phase of developing the Brass Island Terminal in Bayelsa State.

The facility will carry out repair and maintenance of large ships and vessels such as LNG LNG carriers, VLCCs and maritime equipment such as jack-up rig vessels.

In his comments, Vice Admiral Awwal Zubairu lauded the Board for the numerous achievements it had recorded in implementing the NOGICD Act and pledged the support of the Nany in deepening stakeholders’ compliance with the NOGICD Act.

He also sought the assistance of the Board in upgrading the Naval shipyard in Lagos, particularly the slipway.

While highlighting the Navy’s milestones in research and development, the Naval chief sought the board’s collaboration in improving the Navy’s R&D capabilities as well as creating a market for their products in the oil and gas industry.

Adedapo Adesanya is a journalist, polymath, and connoisseur of everything art. When he is not writing, he has his nose buried in one of the many books or articles he has bookmarked or simply listening to good music with a bottle of beer or wine. He supports the greatest club in the world, Manchester United F.C.

Economy

Academy Press, NGX Group Emerge Week’s Worst-Performing Stocks

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Academy Press

By Dipo Olowookere

Investors offloaded shares of Academy Press, Nigerian Exchange (NGX) Group and others last week as precautionary measures, especially for the NGX Group.

Information went round that the parent company of the nation’s main stock exchange violated the same offence it punished several organisations for.

This triggered mixed reactions, and the board had to issue a statement to calm nerves, stressing that it was committed to upholding “the highest corporate governance standards, as it has historically done.”

“We are extremely mindful of due process, our records are verifiable, and we are on course with our long-term strategy execution,” a part of the statement issued last week further said.

In the week, Academy Press lost 22.73 per cent to trade at N1.70, NGX Group fell by 13.92 per cent to N17.00, Cadbury Nigeria dropped 13.82 per cent to close at N11.85, BUA Cement declined by 10.39 per cent, while CWG went down by 10.00 per cent.

The disruption in investors’ confidence in the market caused the share prices of 42 firms to shrink in the five-day trading week, compared with 39 recorded in the previous week.

Business Post reports that 17 equities gained points last week, higher than the 13 appreciated a week earlier.

Vitafoam gained 12.25 per cent to close at N22.45, Fidelity Bank grew by 10.85 per cent to N3.78, Unity Bank appreciated by 10.00 per cent to 44 Kobo, eTranzact rose by 9.97 per cent to N3.20, while RT Briscoe jumped by 9.37 per cent to 35 Kobo.

Data from the bourse showed that the All-Share Index (ASI) and the market capitalisation depreciated by 0.91 per cent to 49,026.62 points and N26.445 trillion, respectively.

Similarly, all other indices finished lower except for the NGX premium, banking, pension, NGX AFR Bank Value and NGX MERI Value, which appreciated by 0.13 per cent, 2.27 per cent, 0.05 per cent, 0.08 per cent and 1.84 per cent, respectively, while the ASeM, growth and NGX SOVBND indices closed flat.

The activity chart revealed that investors traded 562.856 million shares worth N9.438 billion in 16,013 deals during the week, in contrast to the 719.398 million shares valued at N8.004 billion transacted in 17,444 deals in the preceding week.

The financial services sector led the chart with 381.958 million shares valued at N4.551 billion traded in 8,627 deals, contributing 67.86 per cent and 48.21 per cent to the total trading volume and value, respectively.

The ICT industry followed with 59.345 million shares worth N2.480 billion in 1,272 deals, while the third place was the services space with 32.212 million shares worth N95.807 million in 607 deals.

Zenith Bank, NGX Group and GTCO were the busiest stocks in the week, with a cumulative sale of 183.929 million units worth N3.499 billion in 3,628 deals, contributing 32.68 per cent and 37.07 per cent to the total trading volume and value, respectively.

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Economy

Investors, Others Anticipate Outcome of CBN’s MPC Meeting

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MPC Meeting CBN

By Aduragbemi Omiyale

The much-awaited Monetary Policy Committee (MPC) meeting of the Central Bank of Nigeria (CBN) commenced today, Monday, September 26, 2022.

It is the last, but one meeting of the monetary team saddled with the responsibility of determining the Monetary Policy Rate (MPR) for the country.

The meeting is for two days. The first leg of the gathering started at 10 am today at the MPC Meeting Room on the 11th Floor of the headquarters of the CBN in Abuja.

Tomorrow, Tuesday, September 27, 2022, the second part of the gathering will take place at the same venue by 8 am.

After about five hours or more, the Governor of the CBN, Mr Godwin Emefiele, will inform the public, through the media, of the outcome of the MPC meeting.

He will address journalists on the team’s decision after deliberations, especially after carefully looking at the economic parameters, including the inflation rate, the gross domestic product (GDP), and the money in circulation, among others.

At the last gathering, which occurred precisely in July, the anchor interest rate was increased by 100 basis points to 14.0 per cent from 13.0 per cent. This action was taken mainly to control the rising inflation.

About two weeks ago, the National Bureau of Statistics (NBS) announced that the inflation rate in Nigeria jumped to 20.52 per cent in August 2022 from 19.64 per cent in July 2022.

Last week, the major central banks across the globe further hiked interest rates to tackle inflation, and it is expected that Nigeria will follow suit.

Inflation in Nigeria has been triggered by the rising cost of food items as a result of insecurity in the northern part of the country, where most of the food crops are planted.

This year’s problem has majorly been caused by flooding and the inability of farmers to go to their farms as a result of bandits and terrorists, who collect taxes from them before crops can be planted.

Efforts by the government to protect the farmers have not yielded the expected results.

Members of the MPC will look at these issues and give their expert view on whether the rate should be lowered, raised or left intact. But observers believe that the interest rate would be further increased to reduce money in the financial system and then hope that the prices of goods and services will decrease to attract more consumers.

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Economy

Vendease Raises $30m to Aid Food Supply Chain

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Vendease

By Adedapo Adesanya

Vendease, a digital platform which allows African restaurants to buy supplies, access financial services and power their business operations, has raised $30 million in an equity and debt funding round.

The series A equity round of $20 million was co-led by TLcom and Partech in a rare joint investment by two of the biggest Africa-focused funds. Following their investments, Mr Andreata Muforo (Partner at TLcom) and Mr Cyril Collon (General Partner at Partech) will join Vendease’s board as new directors.

The equity round also included VentureSouq, Hustle fund, Hack VC, GFR Fund, Kube VC, Magic Fund and Kairos Angels, who re-invested after participating in the previous round.

Vendease also raised the $10 million debt round from the local finance market.

Commenting on the funding, Mr Tunde Kara, CEO and co-founder of Vendease, said the company would use the proceeds to consolidate its growth and operations in Nigeria and Ghana and to support its expansion across the continent.

“Our mission is to enable the efficient flow of food across Africa, from the point of production to consumption. We want to transform how the entire sector works and remove the bottlenecks that stunt the growth of restaurants and food businesses,” he added.

Launched in January 2020, Vendease’s digital procurement engine makes it easier for restaurants in 8 cities across Nigeria and Ghana to buy food supplies at considerably cheaper rates than open market prices, with guaranteed 12-hour delivery. Over the last 12 months, the company has moved more than 400,000 metric tonnes of food through its platform, helping its users save more than $2,000,000 in procurement costs and more than 10,000 man-hours. Its data has also helped them reduce wastage from overstocking by an additional $485,000.

The company said it has seen triple growth in the number of users on its platform and 5x in revenue over the last 12 months.

“Users have also accessed more than $12 million worth of inventory via its embedded finance product,” the company added.

For restaurant owners, they simply need to download the app, complete the registration process in a few clicks, and they will be able to access all the benefits of Vendease’s platform. They can also access working capital through Vendease’s Buy-Now-Pay-Later offering to maximise their growth opportunities.

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