Economy
NUPENG Starts Nationwide Strike January 9
By Modupe Gbadeyanka
Chairman of the South-West zone of the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG), Mr Tokunbo Korodo, has disclosed that the union would embark on a three-day nationwide warning strike from Monday, January 9, 2017.
The strike, according to Mr Korodo, is to kick against the anti-labour practice of International Oil Companies (IOCs).
Speaking in Lagos, the union leader noted that the warning strike was inevitable because all other options had failed.
“We are not gaining anything by going on strike because it is not a joyful thing but as a union, we have to protect and fight for the welfare of our members.
“We have sensitised the public and also sought the intervention of the Federal Government over the anti-labour activities of the IOCs on our members but we are not getting results.
“Our members that put in their best within the duration of time they worked were not paid their severance packages by their employers when they sacked them,” he said.
Speaking further, Mr Korodo lamented that, “250 members of our union were affected by the divestment by Chevron Nigeria Ltd., in the South-East and this is giving us a serious concern because they cannot feed their families.”
According to him, Minister of Labour, Mr Chris Ngige, had asked all parties to maintain the status quo ante and was adhered to as a show of respect for authority, but said the IOCs seem to be above the law or more powerful than the government.
“They failed to maintain the status-quo ante being amicably agreed to both parties. Chevron had to tell our 250 members that their contract with it was no more binding on it because it cannot trace the company that employed them as contract workers for it.
“The minister said that Chevron had to pay the sacked workers but its management refused to comply.
“It got to a time when Ngige called for a meeting in Abuja to mediate; at times its representatives would not show up.
“We would risk our lives and resources to Abuja, no IOCs member would come. Even when their representatives came, they would be those without a mandate to represent the organization just to frustrate the discussion,” he said.
He urged members of the public not “to see the strike as if we are unnecessarily punishing Nigerians.
“That’s why we are using this period to protest by asking tanker drivers to hang green leaves on their trucks and our members to wear red cloth.
“By next year, if our grievances are not addressed within this period, we will proceed on a three-day warning strike.
“If the government and people concerned are not able to apprehend and resolve it, we may be forced to turn the strike into an indefinite one.”
By Adedapo Adesanya
The Organisation of the Petroleum Exporting Countries and its allies (OPEC+) will likely stick to its existing deal to cut oil output at a meeting on Monday, April 3.
According to Reuters, this was said disclosed by five delegates from the producer group after oil prices recovered following a drop to 15-month lows due to banking fears and demand worries.
Brent crude has recovered towards $80 a barrel after falling to near $70 on March 20 as fears ease about a global banking crisis and as a halt in exports from Iraq’s Kurdistan region curbs supplies.
OPEC+ is due to hold a virtual meeting of its ministerial monitoring panel, which includes Russia and Saudi Arabia, on Monday.
The consensus was that Kurdistan curbs and recent price drops were not sufficiently important to affect the overall OPEC+ policy path for 2023.
Kurdistan’s crude oil exports – around 400,000 barrels per day shipped through an Iraqi-Turkey pipeline to Ceyhan and then on tankers to the international markets – were halted late last week by the federal government of Iraq.
Last week, the International Chamber of Commerce ruled in favour of Iraq against Turkey in a dispute over crude flows from Kurdistan. Iraq had argued that Turkey shouldn’t allow Kurdish oil exports via the Iraq-Turkey pipeline and Ceyhan without approval from the federal government of Iraq.
Talks between officials from Kurdistan and from the Iraq federal government have failed in recent days, but they are set to continue next week.
Three other OPEC+ delegates also told Reuters that any policy changes were unlikely on Monday. After those talks, the next full OPEC+ meeting is not until June.
Last November, OPEC+ reduced its output target by 2 million barrels per day – the largest cut since the early days of the COVID-19 pandemic in 2020. The same reduction applies for the whole of 2023.
Saudi Arabia’s energy minister, Prince Abdulaziz bin Salman, has said OPEC+ will stick to the reduced target until the end of the year.
By Dipo Olowookere
The board of Oando Plc has informed the investing community of its intention to leave the Nigerian and Johannesburg stock exchanges in the coming months.
The reason for exiting the stock market, according to the energy firm, is to become a private company and to achieve this, its core investor, Ocean and Oil Development Partners Limited (OODP), has offered to buy all the shares held by minority shareholders in Oando.
OODP is offering to pay N7.07 in cash or its equivalent in South African Rand (ZAR) for each of the stock, which it said represents a 58 per cent premium to the last traded share price of Oando on Tuesday, March 28, 2023, being the day prior to the date it submitted the scheme application to the Securities and Exchange Commission (SEC).
Oando trades its shares on the floors of the Nigerian Exchange (NGX) Limited and the Johannesburg Stock Exchange (JSE).
This news comes hours after the company announced that it had bounced back into profitability after years of dishing out losses to the frustration of shareholders.
In its unaudited financial results for 2021, Oando reported a profit after tax of N34.7 billion, in contrast to the loss after tax of N140.7 billion of the preceding year.
Before now, Oando has had it rough with regulators in Nigeria, leading to its suspension from the market and a court tussle over allegations that it tampered with its financial statements to deceive investors.
In the notice released this week, Oando said after the acquisition of “the shares of all minority shareholders in Oando,” it would “subsequently be delisted from NGX and JSE and re-registered as a private company.”
At the moment, the energy firm said it has “applied for the SEC’s No Objection to the scheme, noting that the deal is “subject to the approval of the shareholders of Oando at the Court-Ordered Meeting of the company, as well as the sanction of the Federal High Court.”
However, it disclosed that, “The terms and conditions of the transaction will be provided in the scheme document, which will be dispatched to all shareholders following the receipt of an order from the Federal High Court to convene a Court-Ordered Meeting,” promising to update the market “upon receipt of requisite approvals from shareholders and regulators.”
By Adedapo Adesanya
The World Bank Group’s Board of Executive Directors has announced Mr Ajay Banga, a US national, as the only nominee for the position of the bank’s next president and may clinch the post if he passes the next hurdle.
This was contained in a statement issued by the World Bank on Friday.
“The World Bank Group’s Board of Executive Directors today confirmed that, as announced on February 22, the period for submitting nominations for the position of the next President of the World Bank Group closed on Wednesday at 6:00 pm ET.”
“The board received one nomination and would like to announce that Ajay Banga, a US national, will be considered for the position.
“In accordance with established procedures, the Board of Executive Directors will conduct a formal interview with the candidate in Washington D.C., and expect to conclude the Presidential election in due course,” the board said.
US President Joe Biden in February nominated Mr Banga to lead the World Bank, saying he is “well equipped” to lead the global institution at “this critical moment in history.”
No other country proposed an alternate candidate for the prestigious post.
Mr Banga, 63, was born in India and is a naturalised US citizen. He has led Mastercard Inc and now currently serves as Vice Chairman at General Atlantic.
If confirmed, Mr Banga would become the first-ever Indian-American to head either of the two top international financial institutions, the International Monetary Fund (IMF) and the World Bank.
Mr Banga is expected to replace the current World Bank president, Mr David Malpass, who will step down in June, nearly a year before his term is scheduled to expire.
Mr Malpass faced strong criticism over the bank’s commitment to climate action and over his personal views on climate change.
