By Adedapo Adesanya
The Nigerian Content Development and Monitoring Board (NCDMB) has said that Africa’s industrialisation agenda is at the heart of the African Continental Free Trade Agreement (AfCFTA) and fossil fuels remains a very significant part of the energy mix required for industrialising the continent.
This was disclosed by Mr Simbi Wabote, the Executive Secretary of the board, during his keynote address at the 9th Anniversary Lecture and Investiture into the Realnews of Fame Hall of Fame in Lagos.
Mr Wabote said that revenues obtained from the sale of the hydrocarbon resources would remain “key drivers of the economies of the African oil and gas producing countries.”
He noted that the pull of investments on hydrocarbon development projects is indeed a challenge for oil-producing countries such as Nigeria.
Speaking on resolving the impending challenge of investments in the oil and gas industry, Mr Wabote said that the key areas of focus that could be used to address this challenge included the collaborative platform provided by AFCFTA to provide funding and the technology required to operate and develop hydrocarbon projects.
“The second is to have in place an investment-friendly law such as the Petroleum Industry Act (PIA) 2021. This will come in handy to attract much-needed funds for project developments when the effect of the premature halting of new hydrocarbon projects lead to supply shortages with attendant unbearable price hikes,” he said.
According to him, there is a need to increase in-country hydrocarbon resource utilisation.
“For crude oil, this can be realized through massive refining and production of petrochemicals.
“In realisation of the enormous prospects that gas holds as a cleaner, more efficient fuel in Nigeria, President Muhammadu Buhari declared the year 2021 to 2031 as the Decade of Gas.
“As variously espoused by Mr President and the Honorable Minister of State for Petroleum Resources at various fora, the future of Nigeria’s hydrocarbon industry is in GAS.
“Thus, I am extremely pleased that the Ministry of Petroleum Resources, under the sterling leadership of President Muhammadu Buhari and the Honorable Minister of State for Petroleum Resources, Timipre Sylva, have commenced implementation of several initiatives that seek to develop the gas sector in line with the ‘’Decade of Gas’’ declaration.
“Construction works on NLNG Train-7 has commenced which will increase the current capacity of the plant by 30 per cent. The 614km-long Ajaokuta-Kaduna-Kano (AKK) gas pipeline under construction by NNPC is expected to transport 3.5bscf/day of gas,” he said.
He disclosed that other initiatives that have been put in place in line with the ‘’Decade of Gas’’ declaration include the Nigeria Gas Flare Commercialisation Program, NGFCP, and the Nigeria Gas Expansion Program, NGEP, aimed at deepening domestic utilisation of LPG and Autogas.
On the developments at the NCDMB, Mr Wabote said: “We are also pursuing various aspects of gas development and utilization programs to enhance the delivery of government policy directives on gas. 59. 70 per cent of our partnership investment programs are targeted towards gas development projects.
He assured that AfCFTA holds a great promise for the economic growth and development of Nigeria and indeed other African countries and that “there is no doubt that the Nigerian oil and gas industry has a role to play in AfCFTA and urged all the key stakeholders in the oil and gas industry to align with the industry to better fit into the AfCFTA regime.
NEM Insurance Seeks Regulatory Approval for Share Reconstruction
By Dipo Olowookere
The board of NEM Insurance Plc is seeking regulatory approval for its proposed share reconstruction, a notice from the Nigerian Exchange (NGX) Plc has confirmed.
Ms Lilian Dako, who signed the disclosure on behalf of the Head of Listings Regulation Department at the NGX, said the underwriting firm filed its application through its stockbroker, Apel Asset Limited.
NEM Insurance intends to redenominate the nominal value of its stocks from 50 kobo to N1 and then turn every two shares of 50 kobo into one share of N1.00 each.
At the moment, the total authorised shares of the company stand at 10,400,000,000 units of 50 kobo each but this will change to 5,200,000,000 units of N1.00 after the exercise.
However, the authorized share capital will remain at N5.2 billion both before and after the share reconstruction, according to the statement.
“Following the resolutions passed at the Annual General Meeting (AGM) of NEM Insurance Plc on June 24, 2021, trading license holders are hereby notified that Nigerian Exchange Limited has received an application from Apel Asset Limited for a proposed share reconstruction of NEM Insurance Plc.
“The share reconstruction involves redenomination of the nominal value of the company’s shares from N0.50 to N1.00, resulting in the consolidation of every 2 shares of N.50 each held in NEM Insurance Plc into one share of N1.00 each.
Analysis of the Company?s share capital, pre and post share reconstruction, is provided in the table below:
Details Pre Share Reconstruction Post Share Reconstruction
Authorized share capital (N) 5,200,000,000 5,200,000,000
Issued Share Capital (N) 5,016,477,989 5,016,477,989
Nominal Value per share (N) 0.50 1.00
Total Authorized (Units) 10,400,000,000 5,200,000,000
Total Issued Issues (Units) 10,032,955,535 5,016,477,989
“Further information regarding the share reconstruction will be communicated in due course,” the notice from the exchange today stated.
OPEC Extends Compensation for Nigeria, Others to June 2022
By Adedapo Adesanya
The Organisation of the Petroleum Exporting Countries (OPEC) has extended the compensation period for defaulting countries in the ongoing oil cuts until June 2022.
This was contained in a statement by the group’s Secretariat, which noted that the extension was granted following requests by some of the underperforming countries.
Nigeria is one of the defaulters and the Vienna-based cartel had previously extended the deadline to submit their compensation plans latest by December 17.
The group reiterated the “critical” importance of adhering to full conformity and to the compensation mechanism.
For some of the countries involved in the Declaration of Cooperation, DoC had defaulted at trimming their cut quotas at some point in the agreement.
Reaffirming the decision of the 10th OPEC and non-OPEC Ministerial Meeting, ONOMM held on April 12, 2020, and July 18, 2021, the overall monthly production adjustment plan was adjusted by 400,000 barrels per day for the month of January 2022.
The group reaffirmed the continued commitment of participating countries in the DoC to ensure a stable and balanced oil market.
The biggest concerns were whether the emergence of a new variant of the coronavirus might torpedo the budding global economic recovery, and the restiveness of the United States and key Asian customers, including China, over high oil prices.
The 24th OPEC and non-OPEC Ministerial Meeting will be held on January 4, 2022.
FarmTime Gets $50,000 to Boost Organic Fertilizer Production
By Dipo Olowookere
An agric-startup based in Tanzania, FarmTime Company Limited, has become the latest beneficiary of a new revenue-linked matching fund designed to incentivize investors to back younger entrepreneurs.
The firm, which was established in 2017 to recycle and repurpose plant and animal waste to produce organic fertilizers, delivering consistent and traceable nutrients at affordable prices, has secured a $50,000 funding support to expand its operations.
FarmTime, a new entrant to the organic fertilizer market in Tanzania, obtained the fresh capital in a round led by Umsizi Fund, which triggered a guaranteed match from the Young Entrepreneurs Fund (YEF).
YEF was launched in 2019 and provides matching investments of up to $50,000 to qualifying entrepreneurs. To date, over $250,000 has been invested across Africa with a growing pipeline of opportunities.
The scheme was designed to incentivise investments into very young entrepreneurs in Africa. It is a “guaranteed follow” fund that will match investments into ventures led by graduates of African Leadership Academy (ALA) programs, including The Anzisha Prize.
Rather than take equity positions, the fund has very intentionally chosen an innovative debt model with variable repayments linked to company revenues.
The founder of the latest beneficiary, FarmTime, Mr Jubilate Lema, disclosed that the new funds would be used to develop solutions to food security that balance human prosperity and the environment at large.
“I hope more funds take the approach of Umsizi and YEF with a revenue-linked debt instrument,” says Lema, “It was easy to understand, doesn’t load our cap table, and forced us to think about cash flow as well as growth.”
Josh Adler, Executive Director of The Anzisha Prize, which manages the fund on behalf of ALA, while commenting, stated that, “YEF is part of a growing move toward more structured exits from investors with a patient capital mandate.
“As a leadership development institution, ALA is able to draw in new forms of support for exceptional young leaders like Jubilate through the fund without having to build investment capabilities internally.”
As for Ed Brakeman from the Umsizi Fund, he said, “This one of the more exciting investments for us in some time with a revenue-linked loan in partnership with YEF.
“We’re eager to support FarmTime’s growth and are confident that we as investors will see returns while ensuring support for the business through the challenging period of product launch and revenue ramp-up.”
Since its inception five years ago, FarmTime has invested in research and product development, licensing and setting up a factory. It has already processed approximately 9,000 kilograms of coconut husks, 2,600 kilograms of fish waste, and 76 kilograms of seaweed, amongst other inputs.
Like Our Facebook Page
Latest News on Business Post
- Be Wary of What You Post Online—Security Expert Warns December 7, 2021
- Lagos to Start Monthly Tenancy in 2022 for Easy Payment December 7, 2021
- HealthPlus Launches Digital Prescription Website December 7, 2021
- African Expansion: Equinix Acquires MainOne for $320m December 7, 2021
- NEM Insurance Seeks Regulatory Approval for Share Reconstruction December 7, 2021
- Reps Order IGP to Prosecute Dowen Student Killers December 7, 2021
- OPEC Extends Compensation for Nigeria, Others to June 2022 December 7, 2021
- Charles O’Tudor Steps Down as CEO of Adstrat BMC December 7, 2021
- Seye Olurotimi of MSME Africa Emerges 2021 FATE SME Journalist December 7, 2021
- Heritage Bank Partners CBN, LCFE to Disburse N41bn to Wheat Farmers December 7, 2021
Feature/OPED2 years ago
Davos was Different this year
Economy5 years ago
Kwara Disburses N1.7b For Projects
Travel/Tourism5 years ago
Lagos Seals Western Lodge Hotel In Ikorodu
Technology12 months ago
How To Link Your MTN, Airtel, Glo, 9mobile Lines to NIN
Economy5 years ago
How To Identify Fake Naira Notes
Banking3 years ago
Sort Codes of GTBank Branches in Nigeria
Economy4 years ago
NSE Market Capitalisation Sheds N76b as Sell‐offs Persist
Economy4 years ago
FAAC: FG, States, LGs Share N655.18b in January