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How PIA Will Help Individuals To Buy Shares In NNPC – GMD

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NNPC Unveils Date For IPO

The Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Mele Kyari, has explained how the Petroleum Industry Act (PIA) will enable individuals to acquire stakes in the new NNPC.

Kyari said that though this would not happen immediately, the major shareholders of the new NNPC were allowed in the PIA to sell shares of the national oil firm to private individuals.

The NNPC boss, who disclosed this during a live television programme in Abuja, also explained that the allocation of three per cent oil companies operating expense to host communities could be higher than the 30 per cent profit of oil and gas for frontier exploration.

On the transformation of NNPC from a statutory corporation to a limited liability company, Kyari said the new oil firm would have government shareholders to be represented by the ministers of finance and petroleum resources.

READ ALSO: How PIA Will Affect NNPC – Mele Kyari

“So, these shareholders can decide, as the law provides that over time, they can reduce the shareholding into some private shareholding. That means it can be floated subsequently as a company that is quoted on the stock exchange,” he stated.

The NNPC boss added: “The intention at the very onset is not to go to that step but there is provision in the law that allows us ultimately to sell shares of this company.”

Kyari explained that NNPC Limited would serve as a holding company for all its subsidiaries, adding that the subsidiaries would operate on their own without encumbrances from the government.

On what would be the stakes of subnational governments in the new NNPC, Kyari said the royalties and taxes to be paid by the oil firm would get to all tiers of government.

He said: “This is very simple. This company will pay taxes and royalties, which are revenues that accrue to the federation. So every part of this country and every subnational institution or government will benefit from it.

“Secondly, this company will pay company income tax that also comes to the federation for the benefit of all. So, what is different is that this company will now have profit to make and declare dividend, which will be decided by the board of directors of this company.”

READ ALSO: Nigeria Lost $50b Due To Absence Of PIA – Buhari

He said the whole concept of host community trust fund was created by the executive and that the fund would be completely managed by host communities of oil installations.

Kyari noted that the country had failed in ensuring that host communities had stakes in the continuous operation of oil assets in their various areas.

“The very reason that they don’t have a stake is that till now, we have failed as a system to make sure that those values that should have come and many other interventions did get to them,” he stated.

Kyari added that more importantly, the PIA would consolidate interventions and make them work for the communities.

 

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Buhari Launches Digital Currency eNaira

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Buhari Launches Digital Currency eNaira

President Muhammadu Buhari has launched Nigeria’s digital currency eNaira .

The eNaira is a culmination of several years of research work by the Central Bank of Nigeria in advancing the boundaries of the payment system in order to make financial transactions easier for every stratum of society.

The launch was described by CBN Governor, Godwin Emefiele, as the first in Africa and one of the earliest around the world.

READ ALSO: Govt Unveils Digital Currency eNaira

Emefiele said: “Mr President, today you make history, yet again, with the launch of the eNaira – the first in Africa and one of the earliest around the world.

“Mr. President, as you make groundbreaking reforms, there has been continuing debate on the true value of the Naira.

“Rather than worry today on the direction of the exchange rate, let us take a step back and analyse how we got here in the first place.”

 

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World Bank Blacklists 18 Nigerians, Firms Over Alleged Corrupt Practices

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World Bank Blacklists 18 Nigerians, Firms Over Alleged Corrupt Practices

The World Bank has blacklisted 18 Nigerian individuals and firms for engaging in corrupt practices, fraud and collusive practices, a new report has revealed.

A list of debarred individuals and firms was presented in a new annual report titled, ‘World Bank Group Sanctions System FY21.’

The debarments were made by the World Bank Sanctions Board, World Bank Chief Suspension and Debarment Officer and the African Development Bank (AfDB).

The debarments made by AfDB were recognised by the World Bank, making the affected firms to be barred under cross-debarment policy.

Based on the World Bank Sanctions Board’s decision, Mr. Elie Abou Ghazaleh and Mr. Fadi Abou Ghazaleh, alongside their firm, Abou Ghazaleh Contracting Nigeria Limited, were debarred for six months for collusive practices.

Based on the decision of the World Bank Chief Suspension and Debarment Officer, a Nigerian firm, Swansea Tools Resources, was debarred for fraudulent practices for two years and 10 months.

Referred to under Sanctions Case No 651, it was disclosed that the firm misrepresented its past experience in its bid for a road maintenance contract.

“The SDO determined that the respondent, a Nigerian firm, engaged in a fraudulent practice by misrepresenting its past experience in its bid for a road maintenance contract under a state employment and expenditure project in Nigeria. The SDO imposed on the respondent a debarment with conditional release for a minimum period of two years and 10 months. As a mitigating factor, the SDO considered the respondent’s limited cooperation with investigators, noting that the respondent produced documents and agreed to be interviewed but did not accept responsibility for the misconduct,” it said.

Another Nigerian firm, Juckon Construction and Allied Services Nigeria Limited, was debarred for three years over corrupt practices. Referred to under Sanctions Case No 649, it was disclosed that the firm made improper payment to a public official.

“The SDO determined that the respondent, a Nigerian firm, engaged in a corrupt practice by making an improper payment to a public official in connection with the award and/or execution of two waste management and refuse collection contracts under a state employment and expenditure project in Nigeria. The SDO imposed on the respondent a debarment with conditional release for a minimum period of four years,” the report said.

A Nigerian, Ms. Okafor Glory, was debarred for fraudulent practices for four years, while the firm involved, Unique Concept Enterprises, was debarred for five years for same reason.

READ ALSO: Govt Unveils Digital Currency eNaira

“The matter which involved Ms. Glory and the firm, Unique Concept Enterprises, was presented under Sanctions Case No 691.

“The SDO determined that the respondents, a Nigerian firm and a Nigerian citizen, engaged in fraudulent practices by submitting false documents in connection with two refuse collection and disposal contracts under a state employment and expenditure project in Nigeria. In particular, the SDO found that: (i) the corporate respondent submitted a falsified income tax clearance certificate in its bids for the contracts; and (ii) both respondents submitted a falsified advance payment guarantee in connection with the execution of one of the contracts.

“The SDO imposed on the corporate respondent a debarment with conditional release for a minimum period of five years. On the individual respondent, the SDO imposed a debarment with conditional release for a minimum period of four years. As aggravating factors, the SDO considered that (i) the corporate respondent engaged in a repeated pattern of misconduct, and (ii) the individual respondent was the managing director of the corporate respondent,” it said.

Another Nigerian firm, Asbeco Nigeria Limited, was debarred for five years for corrupt practices.The matter which involved Asbeco Nigeria was presented under Sanctions Case No 675.

“The SDO determined that the respondent, a Nigerian firm, engaged in corrupt practices in connection with an erosion control contract under an erosion and watershed management project in Nigeria.

Specifically, the SDO found that the respondent (i) made a payment of N2m (approximately $12,000) to the project’s engineer to influence his actions in connection with the procurement and/or execution of the contract, and (ii) made a facilitation payment of N50,000 (approximately $160) to the project’s cashier to influence her actions in connection with the execution of the same contract.

“The SDO imposed on the respondent a debarment with conditional release for a minimum period of five years. In determining this sanction, the SDO considered as aggravating factors the respondent’s (i) engagement in a repeated pattern of corrupt activity and (ii) interference with INT’s investigation, noting in particular that the respondent engaged in acts intended to materially impede the exercise of the Bank’s contractual audit rights,” the report stated.

Based on the World Bank’s Sanctions Board Decision, A.G. Vision Construction Nigeria Limited, was debarred for fraudulent practices and collusive practices for four years and six months.

Not included in the report is a recent debarment of a Nigerian consultant, Mr Salihu Tijani, who is a consultant for the National Social Safety Nets Project- a project designed to ensure cash transfers to poor and vulnerable households in Nigeria.
Tijani was barred for 38 months for engaging in corrupt practices.

Aside from the firms mentioned, there are some firms that were debarred by other multilateral organisations under cross-debarment, which made them to be debarred by the World Bank.

Sangtech International Services Limited; Sangar & Associates (Nigeria) Limited; Mashad Integrated and Investment Co Limited; and Medniza Global Merchants Limited were debarred by the AfDB for two years under cross-debarment recognised by the World Bank.

ALG Global Concept Nigeria Limited; Abuharaira Labaran Gero; Qualitrends Global Solutions Nigeria Limited; and Maxicare Company Nigeria Limited were debarred by the AfDB for three years under cross-debarment recognised by the World Bank.

In his opening message in the report, the President of World Bank Group, David Malpass, stated that the bank had granted over $157 billion to assist developing countries, emphasising the need for integrity and transparency standards in public finance.

“Since the beginning of the global pandemic, the World Bank Group has deployed more than $157bn in critical assistance to developing countries. The crisis has required us to be rapid and innovative in mobilising this historic support.

“Yet, for these resources to have the needed development impact on the hundreds of millions of people who live in extreme poverty, we must ensure that resources are used efficiently, effectively, and for their intended purposes. And that means remaining vigilant to the scourge of corruption and ensuring that we promote the highest integrity and transparency standards in public finance,” he said.

He further highlighted some of the consequences of corruption, which he said could be devastating.
“The negative impacts of corruption on lives and livelihoods are well known. Corruption diverts scarce development dollars from the people who need them most and corrodes the systems and services that are integral for reducing extreme poverty.

“Entrenched corruption also comes with greater economic costs for countries, as it distorts public expenditures and leads to inefficient allocations of financing away from productive investments toward rent-seeking activities. And corruption increases the costs of doing business and deters foreign investors from entering new markets.

“As the world moves toward recovering from the pandemic’s damaging impacts, these costs can also restrict the private sector, which plays an important role in revitalizing economic growth and development in our client countries,” Malpass added.

 

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Govt Unveils Digital Currency eNaira

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Govt Unveils Digital Currency eNaira

President Muhammadu Buhari is expected to formally unveil the digital currency, eNaira, today Monday.

The Central Bank of Nigeria (CBN) Director, Corporate Communications, Osita Nwanisobi, who disclosed this in a statement on Saturday said the president would perform the unveiling ceremony inside the State House, Abuja.

“Following a series of engagements with relevant stakeholders including the banking community, fintech operators, merchants and a cross-section of Nigerians, the CBN designed the digital currency, which shall be activated on Monday, October 25, 2021.

READ ALSO: CBN Postpones Launch Of Digital Currency eNaira

“The eNaira, therefore, marks a major step forward in the evolution of money and the CBN is committed to ensuring that the eNaira, like the physical Naira, is accessible by everyone.”

The statement revealed that the theme of the eNaira is ‘Same Naira, more possibilities,’ and that more details could be accessed on enaira.gov.ng.

It also said the unveiling marked the first step in that journey, which would continue with a series of further modifications, capabilities and enhancements to the platforms.

“Since the eNaira is a new product, and among the first CBDCs in the world, we have put a structure to promptly address any issue that might arise from the pilot implementation of the eNaira,” the CBN said.

 

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