Business
NCDMB Charges Indigenous Companies On Compliance
Mid-way into a 10-year Strategic Road Map for enhanced indigenous participation and utilisation of local assets in oil and gas operations, industry regulator Nigerian Content Development and Monitoring Board (NCDMB) has recorded a 54 per cent Nigerian content level in 2022.
Presenting a status report at the 11th Practical Nigerian Content Workshop organised by the Board and DMG Nigeria Events at Uyo, Akwa Ibom State, the Executive Secretary NCDMB, Engr Simbi Kesiye Wabote explained that the average of Nigerian Content performance in the last five years is 44 percent, which represents the 10-year period the Nigerian Content Strategic Roadmap has been implementing so far.
He indicated that the performance in 2022 is well above the 42 percentage target set by the Project Management Office (PMO), just like in 2021 when 42 percent was achieved, above the target of 38 percent.
He confirmed that the tracking of the performance is based on the Board’s monitoring and evaluation of Industry activities.
Strikingly, the technical capability development pillar of the Road Map stands out as a major highlight as fabrication and construction, hitherto under near-total dominance by foreign firms, had 99 per cent Nigerian content during the period under review.
He further disclosed that 77 out of 96 initiatives under the short- and medium-term categories of the Road Map had been completed in November 2022.
He stated that manpower in the oil and gas industry had reached 81 per cent Nigerian content as of November, while project management as of that month was 80 per cent.
Zeroing in on year 2022, the Executive Secretary revealed that “performance was largely driven by the contracts awarded under the [Nigerian Liquefied Natural Gas] Train 7 Project.” Low points in accomplishment were in procurement, engineering and services, with Nigerian Content as unimpressive as 34, 46, and 50 per cent respectively. These, he assured, would be sufficiently addressed.
Technical data, cited by Engr. Wabote showed the capture of 12 new indigenous operators in the upstream sector of the oil and gas industry, bringing the total to 97. In the service subsector, there were 1,303 new corporate entrants, raising the total to 9,532, while 22,512 individual registrations were recorded, bringing the total to more than 271,000.
The Executive Secretary informed stakeholders that the Board has commenced the process of “allocation of serviced plots to manufacturers [of equipment components, spares, and tools required in petroleum industry operations] to kick start operations within our NOGAPS [Nigerian Oil and Gas Parks] industrial parks at Emeyal 1, Bayelsa State, and Odukpani in Cross River State,” assuring that “Construction work is also ongoing at the other NOGAPS parks in Akwa Ibom, Imo, Delta and Ondo States with Edo as the newest addition to the list.”
Engr. Wabote expressed the Board’s displeasure at the activities of indigenous oil and gas companies, which seek to undermine its effectiveness after they had benefitted from strategic interventions in funding and capacity building programmes of the organisation. He advised them to turn a new leaf and ensure compliance with regulations or face the consequences.
He commended the Group Managing Director of the Nigerian National Petroleum Company (NNPC) Limited, Malam Mele Kyari, who had to fly in from Rabat straight to the Conference in Uyo, for his commitment to NCDMB’s local content drive.
In his own remarks the NNPC boss assured the nation that the effort to deepen the utilisation of gas to drive industrialisation and economic development was very much on course. While emphasising Nigeria’s interest in gas as energy transition fuel, he stated that “Gas provides the opportunity to power the global economy.”
Among several projects embarked upon by Government, he cited the multibillion dollar Nigeria-Morocco Trans Saharan Gas Pipeline, which had taken him to Morocco recently. Feedstock for the pipeline, he explained, would be from faraway Brass in Bayelsa State. He further assured, “We will complete the OB-3 [East-West pipeline, with a projected capacity of two billion standard cubic feet] pipeline.”
In a welcome address, the Governor of Akwa Ibom State, Mr. Udom Emmanuel, expressed the joy of the people of the State for the opportunity to host the PNC for a second time. Represented by the Deputy Governor, Mr. Moses Ekpo, he stated the desire of the State to be considered in plans for oil and gas producing states.
The PNC Conference continues on Wednesday, with paper presentations and panel discussions on the general theme of deepening Nigerian content.
The Nigeria Deposit Insurance Corporation (NDIC) has announced revisions to the Maximum Deposit Insurance Coverage for banks operating within the country.
NDIC’s Managing Director, Bello Hassan, disclosed the updated coverage benchmarks during a media briefing in Abuja on Thursday.
The coverage for Deposit Money Banks has been increased from N500,000 to N5 million, for Microfinance Banks from N200,000 to N2 million, for Primary Mortgage Banks from N500,000 to N2 million, and for Mobile Money Operators subscribers’ pass-through from N500,000 to N5 million per subscriber.
Hassan underscored that the objective of the update is to enhance depositor safety, foster public trust, promote the inclusivity of financial services, and ensure the overall stability of the financial sector.
More to follow.. . .. .
The 63rd Annual General Meeting (AGM) of the Nigerian Exchange Group Plc (NGX Group), held at the Nigerian Exchange Group House on Monday, April 29, 2024.
During the gathering, the Group concluded on ordinary and special business matters, while also unveiling plans to embark on a comprehensive digital transformation strategy to expand its business operations in line with its overarching strategy.
The meeting’s agenda, approved by the Board of Directors, included the declaration of a final dividend, ratifying the appointment of Temi Popoola as the Group Managing Director/Chief Executive Officer of NGX Group, presenting financial statements to shareholders, re-electing non-executive directors retiring by rotation, authorizing, and disclosing remuneration, among other undertakings.
Notably, the NGX Group, subject to regulatory approval, discussed its authorization on a rights issue to raise capital of up to N10 billion with a subjoined resolution to increase its share capital to sufficiently accommodate the rights issue.
All resolutions were approved by shareholders just as appointment and reelections of directors were ratified.
Following substantial authorization across its agenda, the NGX Group introduced plans to propel the markets with a digital transformation journey that includes an online platform for public offers and deep investments in its technology stack amongst others.
The platform will provide a smarter and efficient way for Issuers to raise capital and enhances the subscription process and operational workflow of POs in the capital market including initial public offerings (IPOs), rights issues and other public offers.
On the development, the Group Chairman, NGX Group, Umaru Kwairanga said, “I am particularly grateful to our shareholders for their assent to the critical business we conducted today. As the Board oversees the strategic direction and gives management the necessary support and guidance, we believe that the coming year will be a better one in terms of value created for our shareholders.
“NGX Group is positioned to capitalize on opportunities amid the positive and forward-looking reforms by the government and our stakeholders should rest assured we will deliver excellently.”
On his part, Group Managing Director/Chief Executive Officer, NGX Group, Temi Popoola, said, “As we complete our 63rd AGM, I extend my sincere gratitude to our shareholders, customers, employees, regulators, and directors for their steadfast support. In a year that underscored NGX Group’s strategic agility and operational excellence, we witnessed growth stemming from our dynamic revenue streams. We are optimistic and well-positioned to forge a future marked by success, resilience, and prosperity.
Addressing the digital transformation agenda, Popoola stated, “The future of our business and the capital markets hinges on technology. That is why we are driving this digital transformation journey across our subsidiaries through the Group. NGX Group’s digital transformation will democratize access to public issuances for every Nigerian with a mobile phone, supporting capital-raising efforts for companies. Additionally, we aim to commercialize our technology solutions and expand our footprint across Africa”.
Key insights and proceedings from the NGX’s AGM can be accessed via the live recording available on NGX Group’s website at www.ngxgroup.com.
. . . Firm Declares N4.5bn Dividend For 2023
The Nigerian Content Development and Monitoring Board (NCDMB) has announced that it had received an interim dividend payment of N450 million out the N1.5bn declared by the Waltersmith Refinery and Petrochemical Company Limited.
The NCDMB made the disclosure on Monday, adding that the payment represented NCDMB’s 30% share in the company for the year ended 2023.
Recall that the NCDMB had in July 2018 invested $10m to acquire 30% stake in the 5000 barrels-per-day (bpd) modular refinery project located at Ibigwe, Imo State, to support the Federal Government’s policy on modular refinery, stimulate investment and create employment opportunities.
Rising from a Board Meeting of Waltersmith Refinery and Petrochemical Company Limited, the Executive Secretary, NCDMB, Engr. Felix Omotsola Ogbe confirmed that a total dividend of N4.5bn had been approved for the year 2023, pending final approval at the Annual General Meeting (AGM).
The company reported a total profit of N23.6bn as profit after tax for the same year.
The Executive Secretary hinted that NCDMB expects to receive additional 30 percent of the outstanding N3bn dividend after the AGM is convened later this year.
He added that the receipt of this interim dividend payment was a testament to the strong performance and profitability of Waltersmith Refinery and Petrochemical Company Limited.
He said, “The NCDMB is proud to be a part of this success and looks forward to continued collaboration with the company in the future.”
He affirmed that the company was upscaling the refinery capacity from 5000 bpd to 10,000bpd and the expansion project was already 44 percent completed and on time to be commissioned by early 2025.
The NCDMB’s investment in the Waltersmith project was also geared to catalyse the industrialisation of the Nigerian oil and gas industry and its linkage sectors and deepen Nigerian Content in the oil and gas industry. It was the first third-party investment embarked by the Board, and it provided proof of concept and paved the way for other successful investments by the Board.
Two weeks ago, NCDMB received a cheque of $1 million from Nedogas Development Company Limited (NDCL), being part of the return on investment (ROI) on one of the Board’s strategic investments.
The cheque was presented by the Chairman of the company, Engr. Emeka Ene when he visited the Nigerian Content Tower in Yenagoa Bayelsa State, where he was received by the Executive Secretary, Engr. Felix Omatsola Ogbe and other members of the Board’s management.
Nedogas Development Company Limited (NDCL) is a joint venture company between Xenergi Limited and NCDMB Capacity Development Intervention Company and it culminated in the construction and commissioning of a 300 MMscfd Capacity Kwale Gas Gathering (KGG) and injection facility located in the Umusam Community, near Kwale in Delta State, Niger Delta, Nigeria.
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