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How PIA Will Affect NNPC – Mele Kyari

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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 affect the corporation.

Kyari who spoke with Arise TV on Monday said the national oil company would be transformed into a private company that would pay taxes and dividends to its shareholders.

He said the new company would be incorporated under the Company Allied Matters Act (CAMA).

On Monday, President Muhammadu Buhari signed the Petroleum Industry Bill (PIB) into law.

READ ALSO: Huge Quantities Of Fuel Smuggled Out Of Nigeria – Customs

Kyari explained that all liabilities and assets of the NNPC will be transferred to the new company.

He noted that some toxic assets may be excluded.

“Coming back to the NNPC, the provision of the law clearly states that the corporation will be transformed into a CAMA company. The meaning of this is that the company will just be another privately owned company, in a sense,” Kyari said.

“This company will pay taxes, royalties and dividends to its shareholders. This isn’t the situation today because the corporation has no such obligation. This has stalled its development, its growth and its prosperity.

READ ALSO: Govt To Borrow N4.89tn For Budget Deficit

“According to the new Petroleum Industry Act, a new company will be incorporated within six months . That means all assets and liabilities of the NNPC will be transferred to the new company.

“Not all of them, by the way. The bill is very clear. Some toxic assets of the corporation may not be transferred. The federation or shareholders can decide to keep some of the assets and leave some with the corporation.

“Therefore, you are going to have a much more efficient, much more slimmer, much more commercial national oil company.”

 

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CBN Retains MPR At 11.5 Per Cent

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CBN Retains MPR At 11.5 Per Cent

Central Bank of Nigeria (CBN) Governor Godwin Emefiele has disclosed that the Monetary Policy Rate remains 11.5 per cent.

Emefiele spoke with journalists after the first Monetary Policy Committee meeting for the year held in Abuja on Tuesday.

Other parameters left unchanged are the Cash Reserve Ratio and Liquidity Ratio at 27.5 per cent and 30 per cent respectively.

READ ALSO: Buhari Approves Suspension Of Fuel Subsidy Removal

Announcing the committee’s decision, Emefiele said : “After a careful balancing of the benefits and the downside risks of the policy options, the MPC decided to hold all parameters constant, believing that a whole stance will enable the continuous permeation of current policy measures in supporting the recorded growth recovery and further boost production and productivity which will ultimately rein in inflation in the short to medium term.

“The MPC thus decided by a unanimous vote, the MPC voted as follows, one, retain MPR at 11.5 per cent; retain the asymmetric corridor of +100/-700 basis points around the MPR; retain the CRR at 27.5 per cent; and retain the Liquidity Ratio at 30 per cent.”

 

 

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Dangote Refinery To Begin Operations Before End Of Third Quarter Of 2022

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Dangote Refinery To Begin Operations Before End Of Third Quarter Of 2022

The Dangote Refinery and Fertiliser projects is set to come on stream before the end of third quarter of this year.

This was disclosed by Alhaji Aliko Dangote, President of Dangote Group, when Dr. Akinwumi Adesina, President of the African Development Bank (AfDB) led a delegation of the bank to the project site in Lagos.

“The refinery will commence operation by the third quarter of 2022. On the mechanical completion, we are almost finished but we have started hydro testing, almost 70 per cent gone, hopefully before the end of Q3 operation will commence,” Dangote said.

READ ALSO: Dangote Tells Court American Ex-mistress Trying To Extort $5m

Group Executive Director, Strategy, Portfolio Development & Capital Projects, Dangote Industries Limited, Devakumar Edwin, said the refinery complex, which includes a refinery, petrochemical plant, a fertiliser plant and a subsea pipeline project, is the largest single-train refinery in the world.

Edwin stated that the 650,000 barrels-per-day refinery would stimulate economic development in Nigeria.

According to him, Dangote Petroleum Refinery can meet 100 per cent of the Nigerian requirement of all liquid products (Gasoline, Diesel, Kerosene and Aviation Jet), and also have surplus of each of these products for export.

He stated that this would create a market for $11 billion per annum of Nigerian crude and foreign exchange savings/earnings $9.9 billion.

“We have impacted on job creation with 3,580 Nigerian personnel on site, excluding employment by the various contractors and subcontractors at the site,” he noted.

Commending Dangote for the initiative, the AfDB President said, “One of the things I admire the most about Alhaji Dangote is that, he actually believes in Nigeria, and he invests his money in Nigeria. He believes in Africa and invests in Africa. Nobody could invest the type of billions of dollars that is here, unless the person not only has the vision but also the commitment and passion for his country. We are extremely proud of you and of your commitment to the continent.

“I am completely blown away with what I saw here today. I can’t believe what I saw. This project will reverse the huge sum the nation spends on foreign exchange. When you look at how much we import, it is about $57 billion worth of different products and we export only about $50.4 billion, so we have to balance that with about $7 billion and talking to them here, they showed us that they can have a domestic market of about $11 billion and that is an incredible market and that will save Nigeria about $9 billion, a year from importing petroleum products. So, this is huge for Nigeria and even for Africa as a continent.”

 

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AMCON Seizes Ibadan Electricity Company

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AMCON Seizes Ibadan Electricity Company

The Assets Management Corporation of Nigeria (AMCON) has taken over the Ibadan Electricity Distribution Company (IBEDC) Ltd.

This was disclosed on Friday by the Chief Operating Officer, John Ayodele, in an internal memo to members of staff.

“Further, to the judgment wherein the Federal High Court on the 8th of September 2021 granted preservative orders in favour of Asset Management Corporation, AMCON, (being the Receiver/Manager of Integrated Energy Distribution and Marketing Limited); the court has appointed Mr Kunle Ogunba Esq.SAN to act as Receiver/ Manager Nominee in the receivership action,” Mr Ayodele said.

Mr Ayodele also disclosed that the receiver appointed, Mr Ogunba, had already held a meeting with the management staff.

The action follows the judgement by the Federal High Court on September 8, 2021, which granted orders in favour of AMCON as Receiver/Manager of Integrated Energy Distribution and Marketing (IEDM) Limited, IBEDC’s core investor, over defaults in a Loan Service Agreement with Polaris Bank.

READ ALSO: Appeal Court Rejects Jimoh Ibrahim’s Bid To Repossess Assets Seized By AMCON Over N70bn Debt

The takeover also includes the assets of IEDM, including shares and interests in related companies and entities, in addition to the monies kept in banks.

In 2018, the NERC in an order on June 19, 2018, directed IBEDC to commence the process of dissolution of its Board within 21 days period, citing alleged delay in the repayment of some loans by IBEDC investors.

The loan was granted by IBEDC from funds released to all DisCos by the CBN under the Nigeria Electricity Market Stabilisation Funds (NEMSF) for the purpose of improving the networks and reducing aggregate technical, commercial and collection losses.

The IBEDC, led by Tunde Ayeni, responded that the electricity company had completely fulfilled its financial commitments.

In response, the directors of the electricity company sued NERC for its decision to suspend them from the Board of IBEDC.

In July 2020, the Federal High Court in Abuja set aside the order from NERC that removed the Tunde Ayeni-led Board of Directors of the IBEDC.

 

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