Business
Shareholders confront Conoil over shortcomings in corporate governance
LAGOS-Shareholders of Conoil Plc have raised concern over the shortcomings in the company’s corporate governance practices, especially the continuous absence of the chairman, Mr. Mike Adenuga, from the Annual General Meetings, AGMs.Specifically, they said that Adenuga has in the last 10 years absented himself from the AGMs, noting that his absence is detrimental to the interest and progress of the company, being the majority shareholder.
This is contained in a letter addressed to the chairman of Conoil Plc by members of Renaissance Shareholders Association, RSA, signed by their president, Amb. Olufemi Timothy.
They also criticized the company for frequent change in managing directors, MDs, saying that the company has produced more MDs than any of its peers in the petroleum marketing sector as it has in the last decade engaged not less than 10 managing directors, having an average of one MD per annum.
Querying why the company could not sign on one MD for at least a period of five years, they said that a stable management is necessary for consistent policy implementation and a steady growth.“If we may be correct, you have not been to the company’s AGM for over a decade now, (10 years).
This to us, who are concerned about your stake and that of other 26 percent holders of the equity of the company, is a disservice to the company and its business. “A leader must always be seen leading its team at all times. No report of events at the AGM to you could be as accurate as when you are present to see the feelings; hear the comments, compliments and the body language of people by yourself.
We wish that you will have a change of mind, attitude on this. Come to the next AGM wherever you know will be secure enough for you and your team, if security is your concern,” they said.
The shareholders frowned at lack of confidence shown in the affairs of the company by the directors as manifested through their lack of having shareholding in the company. According to them, only three out of the 10 directors hold interest in the company.
They also called on the company to appoint more non-executive directors, especially independent and minority shareholders into the Board, saying that having a Board of Directors consisting of five executive and five non-executive directors is against the recommendations of the Code of Corporate Governance that states that non-executives directors must be more than the executives who form the management team upon which the Board has an oversight function.
“Please, we recommend that you appoint more non-executive directors, especially, independent directors and minority shareholders’ representative.Since a few years ago that the two directors representing minority shareholders (holding 26 percent) left the Board, you have not replaced them a
Chairman Conoil Plc, Otunba Mike Adenuga Jnr
ccordingly,” they noted.
On the account for the year ended December 31, 2013, they said that it would have been impossible for the company to achieve such a robust result without the extra-ordinary income earned from the debts owed the company by the federal government on delayed payment of subsidy on imported fuel.Consequently, they argued that the N2.77 billion dividends declared for the year would not have been possible without the extra-ordinary income and would not be sustained in the subsequent years if the management could not produce profit before tax and gross operating profit of N4.5 billion and N20billion in 2014 respectively.They said, “The accounts for 2013 year-end appear to the best in the last five years.
But can it be sustained? If the results in the statement of profit or loss on page 24 is anything to rely on, the statement of profit or loss states that our gross profit was N17 billion while other operating income of N2.5 billion was recorded, as a result of interest paid to our company from the debts owe the company by the federal government on delayed payment of subsidy on imported fuel.“What happens in a year without this kind of extra-ordinary income, payment?
We should work harder and improve on our revenue and not rely on other, extra-ordinary income (occasional).“Our actual PBT was N2.57 billion, while PAT would have been – N1.07 billion for the year 2013 end. We could not have been able to declare N2.77 billion cash dividend in the year, if not for the extra income.“We believe that; to sustain this dividend payment in the 2014 year-end results, the management must produce PBT of N4.5 billion and above without extra-ordinary income, while the gross operating profit must move up to about N20 billion.”
Vanguard-
. . . Tinubu Lauds NNPC Ltd, Partners Over Three Commissioned Gas Projects
In line with its renewed hope agenda, the Federal Government has reiterated determination to utilize Nigeria’s abundant gas resources towards revamping her industrial growth and kick-starting economic prosperity.
Biztellers reports that President Bola Ahmed Tinubu made the assertion while commissioning three critical gas infrastructure projects executed by the NNPC Limited and its partners in Ohaji-Egbema, in Imo State and Kwale, in Delta States, on Wednesday.
The three projects commissioned include the expansion of the AHL Gas Processing Plant, the ANOH Gas Processing Plant and the 23.3km ANOH to Obiafu-Obrikom-Oben (OB3) Custody Transfer Metering Station Gas Pipeline Projects.
He said, “It is pleasing that approximately, 500MMscf of gas in aggregate would be supplied to the domestic market from these two Gas Processing Plants, which represents over 25% incremental growth in gas supply.
“In practical terms, this translates into more gas to the Power Sector, Gas-Based Industries, and other critical segments of the economy.”
The President pointed out that from the onset, his administration was clear of its intention to leverage on the virtually unlimited capacity of gas to deepen domestic gas utilization, increase national power generation capacity, revitalize industries, and create multiple job opportunities for economic growth.
He said aside the Presidential Compressed Natural Gas (CNG) Initiative which is aimed at moving Nigerians away from petrol and diesel as vehicular combustion fuel, significant progress has also been recorded in incentivizing gas development through Presidential Executive Orders.
While congratulating the projects partners (NNPC Limited, Sterling Oil Exploration & Energy Production Company Limited (SEEPCO) and Seplat Energy for the successful implementation of the three projects, Tinubu particularly charged the NNPC Limited to, as the national energy company of choice, sustain its relentless efforts and record more successes in the energy sector for the benefit of all Nigerians.
President Tinubu described the commissioning as a highly significant milestone for Nigeria as it demonstrates his administration’s efforts to accelerate the development of critical gas infrastructure geared at enhancing the supply of energy to boost industrial growth and create employment opportunities.
He said the projects were fully in line with the Federal Government’s Decade of Gas initiative, and his administration’s quest to grow value from the Nation’s abundant gas assets while concurrently eliminating gas flaring and accelerating industrialization.
“I wish to assure the citizenry that these are just the beginning, as the federal government is stepping up its coordination of other landmark projects and initiatives that will ensure the earliest realization of gas fueled prosperity in our country.
“Consequently, I wish to assure investors in the energy space that this is an investment enabling government and we will not relent in facilitating the ease of doing business,” the President noted.
Earlier in his address, the Minister of State for Petroleum Resources (Gas) Rt. Hon. Ekperikpe Ekpo highlighted the efforts of his ministry to continue to champion the utilisation of gas as a transition fuel as Nigeria moves towards achieving clean energy efficiency and security by 2060.
Ekpo commended the President for his leadership and support towards the success of the three projects.
In his remarks, the GCEO NNPC, Mele Kyari described the commissioning as a demonstration of Mr. President’s commitment and support to grow the domestic utilization of natural gas for power generation, as feedstock for gas-based industries and overall rapid industrialization of Nigeria on the back of the enormous gas resources in the country.
Kyari assured that as part of its mandate, NNPC Ltd remains committed to maintaining energy security by executing more strategic gas projects for the benefit of Nigeria.
The Nigerian Government has listed her April 2024 Savings Bonds worth N4.214 billion on the Nigerian Exchange Limited (NGX) platform.
This was disclosed in the market bulletin signed by the Head, Issuers Regulation Department of NGX, Godstime Iwenekhai.
According to the bulletin, “Trading License Holders are hereby notified that the April 2024 Issue of the Federal Government of Nigeria (FGN) Savings Bonds was listed on Nigerian Exchange Limited (NGX) on May 13, 2024.”
Details of the Bonds include FGS April 2026, 1.228 million units valued at N1.228 billion at a coupon rate of 17.046%, while FGS April 2027, 2.986 million units amounted to N2.986 billion at a coupon rate of 18.046%.
The bonds are backed by the full faith and credit of the FGN and charged upon the general assets of Nigeria, according to the debt office.
FGN Savings Bond is issued monthly in tenors of two and three years with quarterly payment of coupons (interest) at a rate predetermined and published by the DMO every month.
The retail savings bond product was introduced by the DMO on behalf of the FGN in 2017 to democratise its activities in the bond market by making it easily accessible to Nigerians to ensure continuous development of the domestic market and bridge infrastructure deficit which has been a constraint to economic growth.
Nigeria’s inflation rate surged to 33.69% in April 2024, up from 33.20% in March, according to the latest data from the National Bureau of Statistics (NBS).
The Consumer Price Index (CPI) report, released Wednesday, shows a 0.49 percentage point rise within a month.
Year-on-year, the inflation rate has surged by 11.47 percentage points, compared to 22.22% in April 2023, highlighting the ongoing economic challenges and rising costs for consumers.
The report reads “In April 2024, the headline inflation rate increased to 33.69% relative to the March 2024 head line inflation rate which was 33.20%.
“On a year-on-year basis, the headline inflation rate was 11.47% points higher compared to the rate recorded in April 2023, which was 22.22%.
This shows that the headline inflation rate (year-on-year basis) increased in the month of April 2024 when compared to the same month in the preceding year (i.e., April 2023).
“Furthermore, on a month-on-month basis, the headline inflation rate in April 2024 was 2.29%, which was 0.73% lower than the rate recorded in March 2024 (3.02%).
“This means that in the month of April 2024, the rate of increase in the average price level is less than the rate of in crease in the average price level in March 2024.”
Prices of food and basic commodities have surged dramatically in recent weeks, as Nigerians grapple with a soaring cost of living and one of the nation’s most severe economic crises.
The crisis has been intensified by the government’s removal of petrol subsidies and the unification of forex windows.
The naira, which had appreciated against the dollar in April, has since plummeted from about N1,100/$1 to roughly N1,500/$1.
Following the latest inflation report from the National Bureau of Statistics (NBS), the Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) is anticipated to review the country’s interest rate, currently set at 24.75%.
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