Economy
NLNG Not For Sale—FG
By Modupe Gbadeyanka
Minister of State for Petroleum Resource, Mr Ibe Kachikwu, has disclosed that federal government has no intention to put the Nigerian Liquefied Natural Gas Limited (NLNG) up for sale as being speculated.
Mr Kachikwu made this known on Monday while appearing before an investigative hearing established by the House of Representatives to look into the sale of national assets.
The probe panel is led by Mr Fred Agbedi, a lawmaker from Bayelsa State, who is the Chairman of the House Committee on Gas Resources and Allied Matters.
The Minister, who was represented by the Director in charge of Gas Resources in the Ministry, Mrs Esther Ifejika, disclosed that NLNG would not be sold to investors for whatever reason.
“We are not aware of any plans to sell NLNG by the federal government,” Mr Kachikwu emphatically told the lawmakers.
Also at the hearing, Mrs Ifejika, who said the presentation of the Ministry and that of the Nigerian National Petroleum Corporation (NNPC) were harmonized could not proceed further with the presentation as the committee discovered glaring discrepancies in the documents of the Ministry and that of the NNPC as presented by Bello Rabiu, Chief Operating Officer, (Upstream), who represented the Group Managing Director, Maikanti Baru.
Having rejected both documents for lack of authenticity and signature as observed by members, the panel further queried the NNPC and the Ministry over what it called some staggering increases in the upgrade contract of OML 58 and the execution of the Northern Option Pipeline.
TOTAL E&P who handled the Joint Venture contract said the initial contract sum was $3.451 billion, but was eventually increased to $4.6 billion after consideration of a number of factors.
Given the revelation, members of the panel expressed displeasure over the huge variation in the contracts amounting over $1.15 billion.
Members were however told that the NNPC entered into a JV with Total Exploration and Production Nigeria Limited (TEPNG) and there was a Modified Carry Agreement and award to TEPNG to execute the OML 58 Upgrade 1 in 2008, Obite-Ubeta-Rumuji (OUR) pipeline in 2010, and the Northern Option Pipeline in 2011 respectively.
Explaining the process which he said followed laid down procurement processes, Rabiu of the NNPC, informed the panel that no money had been paid on the variations.
He said following the variations raised by the contractor, the board of the corporation suspended the procurement with a view to subjecting same to the Federal Executive Council (FEC), approval, adding that same is being waited.
According to Patrick Olinma, who represented Total’s managing director at the hearing, contract for the upgrade of OML 58 upgrade 1 and the execution of the Northern Option Pipeline were awarded to Saipim/Ponipcelli/Desicon (SPD) and Sapim/Desicon (SD) Consortiums as the major contractors at an initial contract cost ceiling of $1.665 billion and $472million with a completion date of 2012 and 2013.
“However, during execution, these projects encountered some challenges which led to delays and an increased cost of over $3.8 billion and $921m respectively as at December, 2015 and an additional $79m and about $921m incurred upon full completion resulting in the expenditure of about $175m and $170m respectively,” he said.
Similarly, the contract for the execution of the Obite-Ubeta-Rumuji (OUR) pipeline project in 2010 was awarded to Zahem/Baywood Consortium as the major contractor at the carrying cost of $269million, $293 million and $469million.
Members however, posited that the reason for the variations was because the contractor engaged by Total was incompetent resulting in the extra cost.
But the Total representative said that they had a duty to comply with the local content act and that they were told there were 14 communities which in reality were 74 communities.
The Chairman of the Committee said though the parliament made the law, it did not say that the contractor should be employed as a learning curve, adding that the cost is too staggering to be ignored.
At this point, the panel demanded that both NNPC and Total produce the board’s resolution on the contracts before it was awarded to ensure they comply with procurement laws.
Other requirements include, love of adherence to section 21 of the procurement Act which provides for the constitution of a Procurement Planning Committee, with staff from both sides of the divide deciding the mode of procurement.
Also demanded are the market survey, financial bid evaluation with emphasis on inflation and variation variables, as well as financial and technical bid analysis.
Panel also asked for financial updates on payment, status reports on the projects, saying that the motion’s primary concern dwells on the procurement process.
Additional information from The Nation.
By Adedapo Adesanya
President Bola Tinubu has reaffirmed plans to list the entire Nigerian National Petroleum Company (NNPC) Limited on the Nigerian Exchange (NGX) Limited.
The President made this known on Thursday while receiving a delegation of the NGX Group Plc at the State House, Abuja.
The team was led by the NGX Group chairman, Mr Umaru Kwairanga, and its chief executive, Mr Temi Popoola. The President was briefed on the capital market’s growth from about N30 trillion in 2023 to N160 trillion.
According to a statement by the Special Adviser to the President on Information and Strategy, Mr Bayo Onanuga, President Tinubu said the planned listing of NNPC would form a key part of his administration’s ongoing economic reforms.
He described the move as part of broader reforms aimed at expanding investment opportunities for Nigerians and deepening the country’s capital market.
“One day, not just the arms and legs, the totality of it will be listed on the Nigerian Exchange,” he said.
The President also reaffirmed that his administration’s target of building a $1 trillion economy remained achievable, citing Nigeria’s population and human capital as major advantages.
“I can see the excitement in the room. All I can do is to celebrate you all today. When we took over, it was very challenging. I had to talk to myself and define my background to accept the assets and liabilities of my predecessor. I asked for the job, and I have to do it,” President Tinubu said.
Reflecting on the administration’s monetary reforms, the President praised the Governor of the Central Bank of Nigeria (CBN), Mr Yemi Cardoso’s role in restoring confidence in the financial system.
“My capable partner in one of the thinking and reasoning days was Yemi Cardoso, whom I put at CBN. We were in the negative with monetary policy and the reserve. We had N30 trillion printed, and there were liabilities. I thank you very much, Yemi Cardoso,” he said.
President Tinubu said the performance of the stock market reflected broader improvements in the Nigerian economy.
“If the stock market is doing well, then we are doing well. We can teach this in classrooms to our undergraduates. If they can be in the classroom without the harrowing feeling of how to pay and what to pay, then we can build a nation of success and prosperity. My assurance to you is that I won’t stop reading, thinking and supporting you,” he said.
The President also reiterated his belief in private sector-led investments, recalling his longstanding support for the Dangote Refinery project.
“If we can push the private sector to invest in the economy wisely, then we will grow. It is one reason why I backed Aliko Dangote even before I became President. God bless the soul of Muhammadu Buhari. We discussed how we can support the private sector to go into the refinery business,” he added.
On his part, NGX Group CEO Temi Popoola told the President that the total value of listed equities had increased from nearly N30 trillion when the administration assumed office in 2023 to about N160 trillion, with projections to reach N230 trillion before the end of the year.
“The picture today is that when you took office in 2023, the total value of stocks listed in Nigeria was just shy of N30 trillion. Today, Mr President, that figure is N160 trillion. By the end of this year, with the listings we are seeing in our market, we expect that figure to rise to N230 trillion,” Popoola said.
He added that the Nigerian All-Share Index had risen from 52,000 points to 244,000 points, while the reforms had created an estimated 500,000 to 900,000 new millionaires, attributing the market’s performance to the administration’s reforms and expressing confidence that Nigeria could attain a $1 trillion economy before 2030.
By Adedapo Adesanya
The NASD Over-the-Counter (OTC) Securities Exchange surged by 2.05 per cent on Thursday, August 6, amid fresh buying interest after a lukewarm preceding session.
The market capitalisation gained N56.21 billion to close at N2,795 trillion compared with the previous session’s N2.739 trillion, while the NASD Security Index (NSI) rose by 93.63 points to end at 4,657.59 points against Wednesday’s 4,563.96 points.
During the trading day, there were five price gainers and two price losers, led by Okitipupa Plc, which depreciated by N28.00 to settle at N252.00 per share compared with the previous day’s N280.00 per share, and Acorn Petroleum Plc, which fell by 5 Kobo to close at N1.25 per unit versus midweek’s N1.30 per unit.
On the flip side, 11 Plc gained N22.5o to sell at N247.50 per share versus N225.00 per share, MRS Oil Plc grew by N12.00 to N132.00 per unit from N120.00 per unit, Central Securities Clearing System (CSCS) Plc added N9.94 to end at N129.74 per share versus N119.00 per share, FrieslandCampina Wamco Nigeria Plc improved by N4.09 to N148.09 per unit from N144.00 per unit, and Industrial and General Insurance (IGI) Plc expanded by 5 Kobo to 55 Kobo per share from 50 Kobo per share.
The volume of securities skyrocketed by 360,690.4 per cent to 2.9 million units from 802 units on Wednesday, the value of securities surged by 47,518.0 per cent to N99.2 million from N208,240, and the number of deals increased by 300 per cent to 62 deals from two deals a day earlier.
Great Nigeria Insurance (GNI) Plc ended the day as the most traded stock by value on a year-to-date basis, with 3.4 billion units transacted for N8.4 billion, followed by Infrastructure Credit Guarantee (Infracredit) Plc with 2.3 billion units traded for N6.5 billion, and CSCS Plc with 77.0 million units sold for N5.5 billion.
GNI Plc also ended as the most traded stock by on a volume year-to-date basis, with 3.4 billion units exchanged for N8.4 billion, followed by Infracredit Plc with 2.3 billion units valued at N6.5 billion, and Resourcery Plc with 1.1 billion units worth N415.7 million.
By Adedapo Adesanya
The Naira further slipped against the United States Dollar by N2.33 or 0.17 per cent to N1,364.88/$1 from N1,362.55/$1 in the Nigerian Autonomous Foreign Exchange Market (NAFEX) on Thursday, August 6.
In the same vein, the domestic currency weakened against the Pound Sterling in the official FX market by 71 Kobo yesterday to trade at N1,838.09/£1, in contrast to Wednesday’s value of N1,837.38/£1, but against the Euro, it gained 45 Kobo to close at N1,574.80/€1 compared with the previous day’s N1,575.25/€1.
At the GTBank FX desk, the Naira improved its value against the US Dollar by N4 on Thursday to quote at N1,369/$1 versus midweek”s rate of N1,373/$1, but at the parallel market, it remained unchanged at N1,400/$1.
The NAFEM interbank FX turnover jumped to $98.804 million on Thursday, up by more than 31 per cent from $75.357 million the previous day.
Similarly, the number of deals at the NFEM interbank increased to 106 from 82, confirming higher US Dollar flows at the official FX market.
Traders expect the Naira to hold steady, buoyed by dollar sales by the Central Bank of Nigeria (CBN), whose presence in the market will help ease demand pressure.
In the cryptocurrency market, major cryptocurrencies were mostly down as the Senate delayed a vote on the Crypto Clarity Act until at least September.
The bill, which would set out which U.S. regulator oversees which digital assets, needs 60 votes to pass, and it is unclear whether it currently has 50. Several Republican senators have said publicly they oppose it, and Democrats want stricter rules preventing President Donald Trump from profiting from crypto while in office.
Ripple (XRP) shrank by 2.5 per cent to $1.02, Solana (SOL) depleted by 1.5 per cent to $72.86, Binance Coin (BNB) fell by 1.4 per cent to $587.41, Dogecoin (DOGE) tumbled by 0.9 per cent to $0.0692, Bitcoin (BTC) decreased by 0.6 per cent to $64,344.69, and Ethereum (ETH) tumbled by 0.3 per cent to $1,902.03.
However, Cardano (ADA) appreciated by 7.7 per cent to $0.2025, and TRON (TRX) rose by 0.3 per cent to $0.3267, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) traded flat at $1.00 apiece.
