Financial institutions that have started raising capital have stated that they will allocate $1.20bn from the proceeds to invest in technology and bolster their cybersecurity infrastructure.
This was indicated in the offer prospectus of five lenders that have commenced their capital raise, to meet the new capital requirement of the Central Bank of Nigeria.
In late March, the CBN announced new capital requirements for the banks operating in the country.
The apex bank directed commercial banks with international authorisation to increase their capital base to N500bn, national banks to N200bn and those with regional authorisation were expected to achieve a N50bn capital floor.
CBN gave the financial institutions two years to achieve the target and three options: raising additional capital, mergers and acquisitions, and licence upgrade or downgrades. According to PwC, there is a significant capital shortfall of N4.2tn across all licence categories, as much as between 35 per cent and per cent of the new minimum capital.
An analysis of the offering documents showed that Guaranty Trust Holding Company had budgeted the highest amount to be invested in technology.
GTCO offered nine billion ordinary shares of 50 each at N44.50 per share with the intent to raise about N400.50bn.
Of its net proceeds of N392.49bn, the holding company said 94.3 per cent of the proceeds (N370bn) would go towards the recapitalisation of its banking subsidiary, GTBank, while the remaining 5.7 per cent would be on the acquisition of pension fund administration and asset management businesses.
The offer document revealed that GTBank intends to spend N98.50bn (26.6 per cent) of the net offer proceeds on technology infrastructure upgrades, with a majority of it going towards, “Core banking application implementation, associated hardware infrastructure, network architecture, and ancillary costs related to optimisation of data centre/disaster recovery centre.”
Meanwhile, information security & fraud prevention and detection software get about N15bn (4.1 per cent) of the net proceeds.
Access Holdings indicated that 20 per cent of the net proceeds from its rights offer (N343.09bn) would be invested in IT infrastructure upgrades and development.
About N41.17bn would be invested in network infrastructure and N27.48bn in cybersecurity capabilities, bringing the total spend on IT to N68.62bn.
A significant portion of the net proceeds would go towards local and international business expansion (N223.01bn).
Zenith Bank Plc said that the proceeds of its offering would “enable the bank to conclude the overhaul of its information technology infrastructure and provide additional working capital to support its expanding operations and enable the Bank to take maximum advantage of emerging opportunities”.
For investment in technology, Zenith Bank noted that it would spend about 20 per cent of the net proceeds, N99.27bn, which amounts to N19.85bn.
A breakdown showed that Zenith Bank planned to spend N8.93bn on computer hardware/servers, N3.97bn each on software licences, registration and network infrastructure upgrades and another N2.98bn on cybersecurity architecture/software.
Fidelity Bank, which has closed its offering, planned to invest about N19.01bn in IT infrastructure, which is about 20 per cent of the net proceeds from the offering.
The bank, which raised about N127bn in its combined offer, said that it intended to invest N9.03bn in cybersecurity capabilities, N7.60bn in software licences and hardware and N2.38bn as additional investment in its network infrastructure.
Of the five banks reviewed, FCMB Group has the least amount budgeted for technology at N16.22bn (15 per cent of the net proceeds). About N11bn would go to upgrade its information technology infrastructure and N5.23bn towards investment in cybersecurity capabilities.
Fresh budgets for IT infrastructure are being allocated amid a recent surge in attacks on banks’ technology infrastructure, resulting in financial losses and subsequent legal actions.
Also, days ago, GTB confirmed that there was an attempt to compromise its website, which left customers unable to access online services.
The bank, in a mail, reassured its customers that the hacking attempt was not successful and that its website was not cloned.
“While there was an isolated incident of an attempt to compromise our website domain, we would like to reassure our customers and stakeholders that the bank’s website has not been cloned and that we do not store customer information on our website, and as such, there has been no instance of compromise of customer data,” GTB said in the statement.
The International Monetary Fund’s Global Financial Stability Report in April indicated that the risk of extreme losses from cyber incidents was increasing.
“Such losses could potentially cause funding problems for companies and even jeopardise their solvency. The size of these extreme losses has more than quadrupled since 2017 to $2.5bn and indirect losses like reputational damage or security upgrades are substantially higher,” another IMF report said.
Meanwhile, the reviewed banks intend to spend about N22.94bn on the offer costs to raise a combined N1.06tn.
Offer costs include all costs, expenses and taxes on them, stamp duty, spending on underwriting, legal, accounting, printing, distribution, filing and registration fees, marketing and advertising expenses and other miscellaneous expenses.
Following the recent cases of fake certifications uncovered by the Joint Admissions and Matriculation Board (JAMB), examination boards in Kenya and Uganda are now reaching out to the country to verify the credentials of Nigerians applying for admission to tertiary institutions in their countries.
JAMB made this known in a document: ‘Registrar’s Report on 2023 ADMISSION & 2024 UTME Policy Meeting,’ document on Wednesday, Channels TV reports.
According to the document, JAMB stressed the need to protect Nigeria’s tertiary institutions from international disrepute, adding that it would not falsify the records of any students.
“Uganda and Kenya examination boards are now writing to JAMB to confirm records presented by candidates for admission of candidates. JAMB would not falsify record,” the Nigerian examination body stated.
The Federal Government recently suspended the verification of degree certificates from Uganda, Kenya, Benin Republic, Togo and some other countries over allegations of certificate racketeering.
This followed an investigation by a Daily Nigeria reporter, Umar Audu on how he obtained a degree within six weeks in the Benin Republic.
After his report, the Federal Government set up an Inter-Ministerial Investigative Committee on Degree Certificate Milling to probe the activities of certificate racketeers.
LEADERSHIP consequently reported that JAMB threatened to sanction higher institutions that fail to submit lists of students admitted immediately after matriculation.
According to JAMB’s Public Communications Advisor, Fabian Benjamin, the initiative is one of the recommendations made by a committee set up by the Federal Government to combat fake degree racketeering in the country.
According to a ‘Clarification On Disclosure Of Admitted Candidates Outside Caps (2017-DATE)’ by JAMB obtained, institutions are to “regularly submit their matriculation lists to the Federal Ministry of Education not later than three months after matriculation ceremonies.”
The list is expected to be submitted through the dedicated channel of JAMB.
“The Board has observed a large number of candidates thronging its offices to resolve issues related to the disclosure of candidates admitted outside the Central Admissions Processing System (CAPS) from 2017 to date. While we appreciate the enthusiasm, we must correct the misconception that the focus is on candidates’ actions. The true emphasis lies with the institutions, which must disclose all candidates admitted outside CAPS before the August 31st, 2024 deadline.
“This directive requires immediate attention and compliance. We urge institutions to carefully review our initial letter and ensure full compliance, as failure to disclose will result in severe consequences. Candidates are also reminded not to accept admissions outside CAPS.
“The Board reiterated that candidates not disclosed by institutions would not be entertained. The Board will not tolerate any condonement of undisclosed admissions moving forward.”
In a similar development, a memo addressed to the JAMB on July 15, 2024, the education ministry said, “You may recall that following the publication of allegations of certificate racketeering involving some foreign institutions, especially in Cotonou, Benin Republic, and other countries, the ministry constituted an inter-ministerial committee to investigate the allegations to find lasting solutions.
“The committee has submitted its report and the Honourable Minister of Education has approved its recommendations for implementation.
“In that regard, I hereby convey the request of the honourable minister for the implementation of the following recommendations of the committee:
“Enforce the mandatory requirement for all tertiary institutions in Nigeria to exclusively conduct their admissions processes through the Central Admissions Processing System under the auspices of the Joint Admissions and Matriculation Board; mandate all tertiary institutions in Nigeria to regularly submit their matriculation lists to the Federal Ministry of Education not later than three months after matriculation ceremonies through the dedicated channel of the Joint Admissions and Matriculation Board.
“You are kindly requested to implement the above recommendations and furnish the ministry with implementation updates.”
[Leadership]
The Nigeria Customs Service (NCS) has reaffirmed that the federal government’s prohibition on rice importation via land borders remains firmly in place.
This clarification was made amid recent announcements concerning new fiscal measures aimed at food imports, specifically paddy rice.
Speaking during an inspection at the Apapa port in Lagos, Comptroller-General of NCS, Adewale Adeniyi, stressed that while the fiscal policies have been updated, they primarily focus on brown rice and paddy rice, allowing them to be imported duty-free.
However, these changes do not affect the existing ban on rice being brought into the country through land borders.
Adeniyi emphasized, “The new fiscal measures do not permit rice to be brought in through land borders. The only modification is that brown rice or rice paddy will now be allowed duty-free.”
He further explained that rice imported in smaller quantities via the seaports, especially by those with access to foreign exchange, does not fall under the Customs Service’s import prohibition.
Periodic inspections reveal rice being imported at the port, typically in smaller packages.
These imports, according to the Comptroller-General, are not covered by the prohibition act and are allowed under the new fiscal guidelines.
The NCS remains committed to enforcing this policy across all land borders, maintaining Nigeria’s push towards local production and food security.
There is widespread anger following the unveiling of the new Airbus A330 presidential jet purchased by President Bola Tinubu’s government.
DAILY POST recalls that the Special Adviser to President Tinubu on Information and Strategy, Bayo Onanuga had on Monday night, released the pictures of the presidential jet via his verified X handle.
According to him, the new jet replaces the 19-year-old Boeing B737-700 (BBJ) which was acquired by former President Olusegun Obasanjo during his tenure.
Tinubu’s aide claimed that the new jet saved Nigeria huge maintenance and fuel costs, running into millions of dollars annually.
Countering the claim that the jet was acquired without approval by the National Assembly, Onanuga said “the Nigerian Senate’s security and intelligence committee recommended replacing the ageing aircraft in the presidential fleet to reduce downtime and operational expenses”.
Our correspondent, however, reports that the claim does not align with earlier reports from the Nigerian Senate.
DAILY POST recalls that the Senate President Godswill Akpabio on June 27, declared that the upper chamber did not receive any request for the purchase of new aircraft for the president.
Nigerians had perceived the move by the presidency to get a new jet, but the Senate President vehemently debunked the report, saying there was nothing like that in their table.
Akpabio, who spoke after a closed-door meeting, said, “I have never had that correspondence to approve the purchase of a plane. We care about the President, we care about Nigerians.
“We will approve things that will benefit the people. There is nothing before us”.
Similarly the Senate leader, Senator Michael Opeyemi Bamidele (APC, Ekiti Central) said, “There is no such request, if the request comes, not only the Senate will debate it, we are 469 here. So this is the handiwork of the fifth columnist and propagandists.”
DAILY POST reports that there was no parliamentary debate prior to the arrival of the exotic presidential jet.
Although the presidency deliberately omitted the price of the jet, it was gathered that the Nigerian government spent over $100 million (N159 billion) to acquire the Airbus A330.
This is coming amid the ravaging economic downturn that has relatively made feeding difficult for millions of citizens.
Recall that Nigerians had earlier in the month staged a 10-day nationwide protest over hunger.
The untoward hardship was birthed by some unfavorable policies of the President Tinubu-led administration, particularly the removal of fuel subsidy which was announced on May 29, 2023.
Concerned citizens who reacted to the procurement of the new jet, accused the government of neglecting the plight of the citizens.
No argument can justify this latest profligacy – Ezekwesili
Former Minister of Education, Oby Ezekwesili on Wednesday said President Bola Tinubu has no argument to justify the purchase of the Airbus A330
Ezekwesili said no argument from Tinubu will persuade Nigerians into justifying what she termed “latest profligacy.”
Posting on X, Ezekwesili wrote: “No argument justifies the purchase of a 14 year old Airbus plane by the @NGRPresident @officialABAT for his indulgence.
“No argument that can persuade reasonable people justifies this latest profligacy.
“Continue with your obscene indulgence until the Day your hungry citizens can no longer bear to sleep on their empty stomachs.
Tinubu acting like Sani Abacha pro max – Adeyanju
Activist lawyer, Deji Adeyanju on Wednesday while reacting to the purchase of the new Presidential jet, an Escalade bulletproof vehicle, and a Yacht accused President Tinubu of acting like former Military Head of State, Sani Abacha pro max within one year of assuming power.
Posting on his Facebook page, Adeyanju wrote: “Critics don’t make good leaders. If in doubt, just look at Tinubu. The guy is acting like a Sani Abacha pro max just under one year. A hypocrite that can’t take what he gives.
“Just got back to Abuja from Lagos and saw Tinubu’s outrageously huge presidential jet.”
Tinubu bought private jet, bulletproof car in one year but Nigerians suffering – Sowore
A former presidential candidate of the African Action Congress, AAC, Omoyele Sowore, on his part, knocked Tinubu’s government for procuring a Presidential jet and a bullet proof vehicle within one year in office despite the failure to tackle the economic crisis bedeviling Nigerians.
Sowore said Nigerian leaders were only concerned about meeting their personal desires and not what the citizens were going through.
The activist cum politician, who was one of the key organizers of the just concluded EndBadGovernance protests, disclosed this in a series of posts on his X page.
According to Sowore: “Asiwaju Bola Ahmed Tinubu said one year isn’t enough for Nigerians to enjoy a better country but look at what he bought for himself in just one year.
“Yacht, jet, Bulletproof Escalade, mansion for VP #RevolutionNow.
“Day of fun at the expense of suffering Nigerians, @officialABAT jumbo luxury Presidential Jet arrives Nice, France. #France #EndBadGovernanceInNigeria #FearlessInOctober #RevolutionNow
“The only thing that makes these thieving rulers in Nigeria happy is when they fulfil their personal desires; they don’t care about the people.
“It is the time for the people to bond and take them head-on. #FearlessInOctober #EndBadGovernanceInNigeria 2.0.”
They don’t care about us – LP chieftain, Okon Fredrick
Similarly, a chieftain of the Labour Party, Mr Okon Fredrick said the move by the government to purchase an exotic jet amid the hardship in the country showed that the government officials did not care about the citizens.
In a chat with DAILY POST, Okon said, “leadership is by example. Tinubu had consistently appealed to Nigerians to be patient with his government, yet he is not patient enough to continue using the old jet.
“Like the singer Micheal Jackson once said, ‘they don’t really care about us’, we are on our own. Nothing about us matters to them
“This is obviously the wrong time to be buying a presidential jet with such a huge amount of money. We just finished a round of protest trying to tell the government that we are dying of hunger.
“Just a few days after the protest was halted, the executive is flying a new jet of over N100 billion.
“The citizens are watching and one day, like Charly Boy usually says, their mumu go do.”
[DailyPost]
Price of petrol is being moderated by the Federal Government and the Nigerian National Petroleum Company Limited (NNPCL) to guarantee stability, the oil giant has said.
The NNPCL said it has been making PMS available for retail distribution at about half of the landing cost under an agreement with the government to safeguard Nigerians from the global fluctuation in oil prices.
Its Chief Financial Officer Umar Ajiya explained that the company has been offsetting the shortfall in landing price and sale price through a reconciliation arrangement between the government and the company.
He said the company had not paid any money to any marketer in the name of petrol subsidy in the last eight to nine years.
While the official pump price of petrol is about N600 per litre, average landing cost is about N1,200.
Ajiya said the company covered about N7.8 trillion in “shortfall” in the first seven months of this year, making a distinction between the current arrangement and the inglorious past of “subsidy scam”, known for payments to third parties for sometimes frivolous claims on supply.
“I think there is one fact that I need to make very clear that in the last eight or nine years, that this company, even as a corporation as it were, has not paid anybody a dime or one naira as subsidy.
“No one has been paid a kobo by NNPC in the name of subsidy. No marketer has received money from us by way of subsidy,” Ajiya said at a news conference.
He said the government directs NNPCL to sell the petrol it imports, at a price that is half of the landing price.
He said the reconciliation of the shortfall has been between the federation and NNPCL.
According to him, at times the Federal Government pays the money and it could as well net off for it.
“What has been happening is that we have been importing PMS, landing at a certain price, and government is telling us to sell it at half price. So, that gap between that landed price and half price is what we call shortfall or we call it subsidy.
“And the deal is between the federation and ourselves to reconcile. Sometimes they give us money, sometimes we do net off. So, there is no money exchanging hands to any marketer or to anybody in the name of subsidy,” Ajiya said.
President Bola Tinubu on inauguration day May 29, last year, announced that fuel subsidy is gone. Prior to the removal, Nigeria was spending more than N400 billion on subsidy monthly with national consumption volume of over 60 million litres per day.
The figure was on the upward swing due to smuggling of the product which is of the highest grade in West and Central Africa to neighbouring countries.
Upon the phasing out of the payment, which was also in line with the Petroleum Industry Act (PIA) that fully deregulated the product price, the national consumption officially reduced to 50 million litres per day.
Prior to this, NNPCL had been enmeshed in what was known as “subsidy scam” under which huge payments were found to have been made to third parties as subsidy to bridge landing and sale prices. Several claims of product supply were found to be untrue.
Many oil chiefs were arraigned by the government over allegations of bogus subsidy claims.
Ajiya spoke at the presentation of the audited report and accounts of NNPCL for the 2023 business year in Abuja.
The Independent Petroleum Marketers Association of Nigeria (IPMAN), Mosimi Depot, yesterday attributed the current fuel scarcity in Ogun State and other Southwest states to the inability of NNPCL to make petroleum products available to its members three months after they had paid for the product.
IPMAN appealed to the Federal Government, as well as other critical stakeholders in the industry to prevail on NNPCL management to arrest the current situation, which has compounded the economic challenges residents, motorists and commuters are facing in the region.
Chairman, IPMAN, Mosimi Depot Otunba Femi Adelaja, who made this known while speaking in Abeokuta, Ogun State, said his members had since June made deposit payment of N75.142 billion to NNPCL for supplies through the Lagos Private Depot Owners (PDO) but NNPCL is yet to make the product available to its members.
Executive Vice President, Downstream, NNPCL, Dapo Segun , said it was not uncommon for the company to be in an open credit agreement with PMS suppliers, as it is a global practice in the industry.
He said that establishing an open credit agreement with suppliers spoke volume of the credibility which the national oil company had built over a period of time.
“Concerning the outstanding to the suppliers, it is not in that magnitude that has been put out, it is actually lower than the N6.8 billion.
“What matters really is the relationship between us and our suppliers to ensure that we keep faith in making these payments to our suppliers which we have done overtime.
“You would understand that it is not a static figure and I wouldn’t want to be quoting any figure, when we make payments it goes down, when they supply products it goes up.
“It is a dynamic way, but the most important thing is to ensure that we continue to make PMS available across the country,” Segun said.
[TheNation]
The British government on Wednesday announced new measures to crack down on high numbers of asylum seekers arriving illegally on small boats from France.
It said 100 “new specialist intelligence and investigation officers” would be recruited to the National Crime Agency (NCA) to help dismantle smuggling gangs that run the dangerous crossings.
The interior ministry added that the government aims over the next six months to achieve the highest rate of deportations of failed asylum seekers for five years.
The Labour government, which won an election last month, intends to increase detention capacity at removal centres and sanction employers who hire people with no right to work in the UK, the Home Office said.
“We are taking strong and clear steps to boost our border security and ensure the rules are respected and enforced,” interior minister Yvette Cooper said in a statement.
Stopping the small boat arrivals was a key issue in the July 4 election, in which Labour won a thumping majority.
Within days of taking power, Prime Minister Keir Starmer scrapped a controversial scheme to deport illegal migrants to Rwanda, which had been a flagship policy of the last Conservative government.
Starmer has instead pledged to dismantle the people-smuggling gangs who organise the crossings and are paid thousands of euros by each migrant.
The Home Office is recruiting a so-called Border Security Commander who will work with European countries against the people-smuggling gangs.
Starmer has also pledged with French President Emmanuel Macron to strengthen “cooperation” in handling the surge in undocumented migrant numbers.
More than 200 people crossed the Channel in three boats on Monday, taking the provisional total for the year so far to 19,294, according to Home Office figures.
This is a 10 percent increase on the number recorded last year, which was 17,620, but down on the 21,344 crossings recorded in the same period of 2022.
The Home Office said the NCA is pursuing about 70 investigations against criminal networks involved in people trafficking.
It said the government would issue financial penalty notices, business closure orders and bring possible prosecutions against anyone employing illegal workers.
The department also said it was adding 290 beds to two removal centres and redeploying staff to try to remove failed asylum seekers at the highest rate since 2018. The ministry did not give figures on the numbers involved.
[Vanguard]
Chinese Firm To Sell Seized Nigerian Properties In UK On eBay To Recover $70 Million Judgement Debt
Admin
A Chinese investment group is moving to sell two residential properties seized from Nigeria on global marketplace eBay in an effort to recover up to $70 million in arbitration awards.
Zhongshang Fucheng Industrial Investment Ltd took possession of the two properties in Liverpool, United Kingdom, in June 2024, after Nigeria failed to settle a 2021 arbitration ruling.
The properties, located at 15 Aigburth Hall Road and Beech Lodge, 49 Calderstones Road, were targeted following a December 2021 British court order that permitted Zhongshang to seize Nigerian assets in the UK to recoup the $70 million debt, which remains unpaid as of August 2024, with interest accumulating at two per cent per month.
Court records indicate that Zhongshang was awarded $55.7 million, plus $9.4 million in interest, and £2.86 million in legal costs, as part of a dispute stemming from a 2001 trade agreement between Nigeria and China. The conflict arose when Ogun State revoked Zhongshang’s rights to a free trade zone in 2016, a move the company argued violated the treaty.
In 2018, Zhongshang initiated arbitration proceedings against Nigeria in the UK, accusing Nigerian federal agencies, including the police and immigration authorities, of acting on behalf of Ogun State without due process. The firm also alleged that two of its executives were expelled from Nigeria in 2016, with one reportedly detained and tortured by local police.
This latest development adds to Nigeria’s legal challenges abroad, coming only months after the country narrowly avoided a disastrous $11 billion arbitration ruling in favor of Process & Industrial Developments Ltd (P&ID). That ruling was overturned after evidence of bribery and corruption surfaced. However, the Zhongshang case presents a tougher challenge, with courts across Europe, including the UK, Belgium, and France, granting enforcement orders that allow the seizure of Nigerian assets. Efforts to protect Nigeria through sovereign immunity have so far failed, even in the United States.
A consultant working with Zhongshang revealed that the firm is preparing to list the seized Liverpool properties for sale on platforms like eBay, with an estimated value of $2.2 million.
“They’ve decided to sell them through online channels like eBay, as that might attract buyers more quickly,” the consultant told Peoples Gazette.
Although the properties are owned by Nigeria, they were not classified as diplomatic or consular assets, making them vulnerable to seizure.
It’s unclear when the Nigerian government acquired the properties, but court filings indicate that they had been rented out to private tenants unconnected to Nigeria’s diplomatic mission in the UK.
In a June 2024 ruling, Master Lisa Sullivan of the UK High Court, King’s Bench Division, ruled in favor of Zhongshang’s claim, stating, “The properties are currently leased to residential tenants with no ties to Nigeria’s mission, making them eligible for seizure under commercial purposes outlined in section 13(4) of the State Immunity Act.”
Zhongshang has assured that the sales process will be transparent, with the proceeds being made public in light of strong Nigerian interest in the case. “Zhongshang is committed to keeping the Nigerian people informed about the recovery process,” the consultant added.
[NaijaNews]
Nigeria’s state oil company, NNPC Limited, has released its 2023 full-year audited results, showing a profit after tax of N3.29 trillion.
This represents a significant increase from the N2.5 trillion profit reported in 2022, marking a 31.6% year-on-year growth and the largest corporate profit reported by any Nigerian company, according to Nairametrics records.
Total revenue generated for the year was N23.9 trillion or $26.4 billion using the exchange rate of N907/$1 which was the closing rate used for the year 2023.
Revenue from Nigeria amounted to N21.3 trillion , representing 89.1% of total revenue, indicating that the corporation earned the majority of its income domestically rather than from international operations.
Key highlights
- Revenue – N23.9 trillion vs N8.8 trillion (171.5%)
- Gross Profit – N7 trillion vs N2.1 trillion (233%)
- Operating Expenses – N3.1 trillion vs N1.7 trillion (80.9%)
- Operating Profit – N4.3 trillion vs N694.2 billion (525%)
- Pre-tax Profit – N5.9 trillion vs N1.8 trillion (227%)
- Income Tax – N2.69 trillion
- Profit after tax – N3.29 trillion vs N2.5 trillion (30.6%)
- Total Assets – N246.8 trillion vs N58.5 trillion (321%)
- Net Assets – N28.5 trillion vs N9.2 trillion (200%)
- Cash and Bank Balances – N7.1 trillion vs N2.3 trillion (200%)
- Cash flow from operations – N10 trillion vs N4.6 trillion (117.3%)
- Cash flow from investing – N3.7 trillion vs N2.1 trillion (76.1%)
- NNPC Ltd reported that it does not have any external loans.
Total Assets surpass Nigeria’s nominal GDP
Even more remarkable is the company’s total assets, which were reported at a staggering N246.8 trillion ($272 billion using N907/$1 or $154 billion using N1,600/$1 as of August 2024) surpassing Nigeria’s nominal gross domestic product (GDP).
According to the National Bureau of Statistics, Nigeria’s nominal GDP was N229.9 trillion in the year ended December 2023.
While GDP and total assets refer to two different things in the realms of finance and an economy, it however highlights just how large the size of NNPC is.
A more relatable proxy is the company Net asset of N28.5 trillion which is the book value of NNPC. This represents around 12% of GDP more than the oil and gas contribution to GDP as of 2023.
The significant size of the oil company’s total assets was driven by its trade and other receivables, which stood at N162.9 trillion, and fixed assets (property, plants, and equipment) valued at N67.8 trillion, bringing the total to N230.7 trillion.
The increase in the value of trade and other receivables, as well as fixed assets, can be attributed to the impact of foreign currency translation, as most of the company’s assets are denominated in dollars.
Additionally, NNPC Ltd’s revenue from crude oil sales is also dollarized, which likely contributed significantly to the rise in naira terms.
The company reported that its currency translation rate for fixed assets was N907.1/$1 compared to N448.4/$1 in 2022.
For revenue, the company used an average rate of N644.2/$1, compared to N431.3/$1 in the previous year.
Analysis
A cursory review of the results reveals that the company’s revenue of N23.9 trillion is the largest it has ever reported.
Crude Oil Sales – The company generates revenue from crude oil sales, petroleum product sales, natural gas, power, and services.
- Revenue from crude oil sales reached N14 trillion, a significant increase from the N3.5 trillion reported the previous year.
- Interestingly, in terms of geographical markets, Nigeria generated N12 trillion in revenue, with Panama coming in second at N2 trillion.
- Crude oil sales revenue in 2022 was also higher from Panama, amounting to about N2.9 trillion, compared to Nigeria’s N545.3 billion.
Petroleum Product Sales – The company reported revenue of N7.1 trillion from petroleum product sales, up from N4.5 trillion the previous year.
- Petroleum product sales include the sale of fuel, kerosene, diesel, naptha, and other related products.
- Once again, Nigeria led in terms of geographical markets, generating N6.9 trillion compared to N4.3 trillion the previous year. This represents around 97% of total petroleum product sales, with sales to the Bahamas generating just N151.7 billion (up from N129.5 billion a year earlier).
- The NNPC has been the sole importer of petroleum products in Nigeria for years, relying on imports through its controversial Direct Sale, Direct Purchase (DSDP) structure.
- Following the removal of the fuel subsidy on May 29, 2023, NNPC Ltd’s profits from this division were expected to rise as product sales reflect higher prices for the majority of the year.
Revenue from Natural Gas – This category represents the invoice value of natural gas sold to third parties, generating about N2.3 trillion in the year under review, compared to N683 billion reported the previous year.
- Nigeria was again the major source of revenue, contributing N1.9 trillion (up from N638.7 billion in 2022), accounting for 82.6% of total revenues.
- The Cayman Islands also contributed to gas revenue, generating N402.7 billion, compared to N3.9 billion, N24 billion, and N16.3 billion from the UK, Panama, and the Cayman Islands respectively in the previous year.
Revenue from Services – This includes revenue from seismic contracts, time-based contracts, gas transmission tariffs, shipping, marine, and engineering services.
- The company generated a total of N464 billion during the year, up from N100.5 billion the previous year.
- Nigeria contributed N379.2 billion towards revenue from services, compared to zero in 2022. Another significant contribution came from Cyprus, which generated N80.49 billion.
- Interestingly, the entire revenue of N100.5 billion generated in 2022 came from the Cayman Islands. However, in 2023, the Cayman Islands contributed nothing to revenue.
Cash Payments – NNPC Limited reported a massive increase in its cash and cash equivalents by N5.232 trillion during the year, ending with a cash balance of N7.7 trillion.
To the Government
- Income tax paid was N497.2 billion in 2023, compared to N102.5 billion in 2022.
- Royalties paid in cash amounted to N669 billion, up from N76.5 billion in 2022.
- Dividends paid to its sole shareholder, the Federal Government, were N546.6 billion, compared to zero a year earlier.
Investing
- The company earned N230.9 billion from the sale of property, plants, and equipment.
- However, it paid N2.5 trillion for the purchase of property, plants, and equipment.
- An additional N370.2 billion was spent on the purchase of exploration and evaluation assets.
- Another N1.2 trillion was paid for the purchase of oil and gas properties.
Interest Payments
- NNPC Limited reported that it does not have any external loans, so the interest payments appear to be for legacy loans.
- During the year, it paid N441.45 billion in interest payments.
[Nairametrics]
A 21-year-old student from the Kwara State College of Health Technology, Mojisola Awesu, has been found dead at a refuse dump in the Aleniboro area of Ilorin.
The Kwara State Police Public Relations Officer, DSP Toun Ejire-Adeyemi, confirmed the unfortunate incident in a statement made available to newsmen on Tuesday.
Ejire-Adeyemi disclosed that the discovery was made on August 12, 2024.
A resident had alerted the police, prompting operatives to visit the scene and recover the remains.
The body was subsequently identified as that of one Awesu and was taken to a morgue.
The police PRO stated that the investigation into Awesu’s death revealed a chain of events, noting that on August 13, a missing person report was filed by one Blessing, who identified herself as Awesu’s roommate.
In the report, Awesu had left home on August 9 to attend a party allegedly organized by students from two private universities in the state, Summit University and Al-Hikmah University.
The police spokesperson further explained that Awesu had been contacted by her friend, Timileyin, who introduced her to a Summit University student named Adebayo Happiness who allegedly offered Awesu ₦15,000 to attend the party pretending to be his girlfriend.
However, upon arriving in Ilorin, Awesu reportedly felt uneasy about the hotel she was lodged in by Happiness and also noticed that no party was taking place at the location.
The PPRO noted that Awesu’s last communication was with her roommate, where she expressed her discomfort with the situation.
Shortly after, her phone became unreachable, and all attempts by her roommate to contact her proved futile.
Ejire-Adeyemi said, “According to the report, Miss Mojisola received a phone call on August 9, from Miss Timileyin, who informed her about an event organised by students of Summit University and Al-Hikmah University in Ilorin.
“Miss Timileyin introduced Mojisola to one Mr Adebayo Happiness, a student of Summit University, who allegedly invited her to the night party under the pretence of having her act as his girlfriend for a fee of N15,000.00.
“Upon her arrival in Ilorin, Miss Mojisola informed her roommate that she felt uncomfortable in the hotel she was lodged by Adebayo Happiness and noted that there was no party at the said location.”
Following the revelations, the Kwara State Police Command launched an investigation into the incident.
Ejire-Adeyemi confirmed that several suspects have been arrested in connection with the case, and the investigation has been transferred to the State Criminal Investigation Department for further examination.
The Nigerian Securities and Exchange Commission (SEC) under Emomotimi Agama has revealed its plans to issue licenses to crypto exchanges in the country to complement the growing adoption of cryptocurrencies in the country.
In June the Nigerian SEC launched a new program aimed at speeding up the registration process of Virtual Assets Providers (VASPS).
SEC also announced amendments to its rules on Digital Assets Issuance, offering platforms, Exchanges, and Custody.
In an interview today on Bloomberg, Nigerian SEC Chief Emomotimi Agama reiterated his commitment to regulating cryptocurrency in Nigeria for the sake of young Nigerians who are neck deep into the industry.
“Being a crypto enthusiast and fintech enthusiast, I can tell you without doubt that this is going to happen sooner than you think.”
“We must support the youths of this country to be able to achieve the benefit that is accruable in fintech. The market size is huge and it is growing,”
Fast-growing crypto economy
Nigeria has one of the fastest-growing crypto economies in the world with a very high demand for crypto assets. This statistic has forced the hand of the Central Bank of Nigeria to lift restrictions on Nigerian banks facilitating cryptocurrency transactions after a ban that lasted for two years.
The Apex bank stated that it was improper to continue upholding stringent measures in a sector that is growing so fast and has massive potential.
Nigeria was named the second biggest economy in terms of crypto adoption last year and in August 2022 was named the most crypto-crazy country by volume of Google searches.
Crypto entities delist Naira peer-to-peer
Following the crackdown on crypto entities earlier this year, top exchanges have closed down Naira P2P and Naira withdrawals on their platforms.
Big crypto exchanges like OKX and Binance have delisted their Naira p2p trading following accusations of currency manipulation and money laundering from Nigerian Authorities.
The Nigerian SEC in its latest move to issue licenses to crypto exchanges is a 360-turnaround in policy following earlier crackdowns on crypto entities.
The SEC chief explained in his Bloomberg interview that the regulatory body wants to provide a platform where crypto dealings will be transparent and devoid of bad actors.
“The SEC wants to provide a platform where people can formally do these things and we are able to get all of the information that we need,”
“What we will not encourage is the use of cryptocurrency to manipulate our currency,” Agama said.
What to know : The Nigerian authorities are still locked in a spat with Binance Ltd over claims of money laundering and tax evasion. Tigran Gambaryan a Binance executive is still been detained by Nigerian authorities at the time of the report.
[Nairametrics]
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An Islamic cleric, Sheik Abdulrahaman Azzamfari, has weighed in on the persistent threats by bandits in Zamfara state.
In a video seen by Daily Trust, Azzamfari delivered a message to the government of Zamfara, expressing deep concerns about the escalating insecurity and banditry in the region.
According to him, the current administration’s approach had not effectively tackled the wave of violence, allowing bandits to sense a vacuum and intensify their attacks.
He said: “The Zamfara state government must know that we are in a horrible state. Residents have farmed but they are not getting anything from it.
“The situation is worse now. Hunger and high cost of things are forcing people to migrate and abandon farming, while some to join criminal activities.
“The deployment of soldiers alone cannot solve the issue. Mediation and reconciliation with the affected communities are crucial.
“The state government must take steps towards reconciliation, as the situation is beyond mere imagination and requires a collective effort to resolve.”
[DailyTrust]
In a recent interview on the “In My Opinion” Podcast, Flavour shared his journey to fame.
He recalled his first collaboration with rapper Nigga Raw (now known as Mr. Raw), where he played the piano for him in the studio.
Flavour revealed how he sought out Nigga Raw’s producer to learn music production, paying a weekly fee of ₦1,000.
He said that once he acquired the skills, he began charging ₦5,000 per beat for his services.
“From learning studio production to becoming a producer. From there, I started doing jobs as a producer, and I charged 5,000 per beat,” Flavour narrated.
He also revealed how he started accompanying Nigga Raw, who at the time, was one of the most famous artists in Eastern Nigeria to shows.
He said he later recorded the chorus to a Nigga Raw song that blew up in the East and gave his first glimpse of success.
The singer credited Nigga Raw with opening his eyes to what it means to be an artist.
“Nigga Raw was the guy that opened my eyes to what being an artist is about,” Flavour explained on the lessons he picked up from being a backup and spending time in the studio with Nigga Raw.
During the interview, Flavour shared how he contemplated what type of music he wanted to make between RnB and Highlife before deciding that RnB isn’t a profitable route, so he settled for Highlife Fusion.
Oil producers, under the aegis of the Independent Petroleum Producers Group, have warned against being forced to sell crude oil to the Dangote Refinery and other local ones in Nigeria.
The IPPG also called on the Nigerian National Petroleum Company Limited to re-direct its allocated crude oil volumes to Dangote Refinery and other local refineries to mitigate the current crude supply shortage being experienced by the local refiners that is impacting local product availability in many parts of Nigeria.
The Chairman of IPPG, Abdulrazak Isa, in a letter dated August 16, 2024, and addressed to the Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission, Gbenga Komolafe, said the NNPC should utilise its allocated 445,000 barrels per day intervention crude oil volume to salvage the current situation as it did in many instances in the past.
Isa said some IPPG members already owned and or were supplying crude oil to local refineries but insisted that the NNPC was in a good position to mitigate the current crude supply shortfall faced by local refiners by leveraging its statutory crude allocation for meeting local domestic consumption.
“Historically, NNPC has always had an intervention crude oil volume (445kbopd) meant to satisfy the nation’s domestic consumption. This volume has always been used, under various swap mechanisms, to import refined products for domestic consumption.
“Since there is now domestic refining capacity to meet consumption, this dedicated volume should be reserved for all domestic refineries under a price hedge mechanism that can be provided by a suitable financial institution such as Afrexim Bank,’’ he stated.
Isa, however, maintained that, “Any national production above this allocated volume should be treated strictly as export volumes, adhering to the willing buyer, willing seller framework of the international market especially since the refiners will need to export excess products that surpass domestic demand thus boosting FX earnings.’’
The group expressed concerns over certain recent developments including the domestic crude oil refining requirements and crude oil production forecast for the second half of 2024, announced by NUPRC, as well as the request to all producing companies for their monthly quotations for crude oil supply to licensed refineries in Nigeria.
Specifically, IPPG said some of its members had received letters from the Dangote Refinery for crude supply nominations for October, and faulted the approach as bringing them under an obligation, saying it conflicted with the spirit of the willing-buyer, willing-seller framework prescribed by the Petroleum Industry Act 2021.
He asserted that the objective of enhancing the country’s petroleum value chain should be done within the confines of the law and existing obligations, expressing the confidence that an amicable solution could be reached by all stakeholders without jeopardising the existing commercial agreements, economic interests and business models of each segment of the oil and gas sector.
“While we fully support and commend the efforts of Nigerian entrepreneurs to enhance domestic refining capacity, it is important that no private sector business is unduly pressured into arrangements that may effectively subsidise another within the oil and gas value chain under any guise whatsoever.
“Under this willing-buyer, willing-seller framework, it is essential for refiners to negotiate and execute long-term crude oil Sales and Purchase Agreements with producers and their marketing agents. These agreements should follow industry best practices, with typical tenures ranging from one to five years,’’ the IPPG chairman said.
He added that some of them had also received allocation letters from NUPRC for the supply of specific volumes of crude oil to the domestic market for the second half of 2024, expressing concerns about its potential implications for the economy, especially the foreign exchange earnings through royalties and taxes.
The group noted, “We understand that the current allocation methodology appears to be based on a matrix of production forecasts by producers, issued technical allowable rates as well as crude oil requirements of domestic refineries, rather than actual local consumption needs. This raises significant concerns as it suggests that allocations are being determined based on the demands of refiners, which may exceed what is needed for domestic consumption.
“Such an approach could lead to inefficiencies and unfairly disadvantage producers. Therefore, it is crucial that refineries with excess capacity beyond local consumption do not exploit the Domestic Crude Oil Supply Obligations to the detriment of oil producers and other stakeholders, including the Government.’’
Isa called for transparency in how the allocations to oil producers were determined and requested NUPRC to provide clear details on the allocation criteria and methodology, while he sought an opportunity for IPPG to make input into the production forecast to ensure it accurately reflects operational realities.
The PUNCH recalls that Dangote and other local refineries have repeatedly accused international oil companies of not selling crude to them.
President Bola Tinubu later directed the NNPC to sell feedstock to the local refineries in naira
On Monday, the Federal Government announced that the deal would commence in October
The Publicity Secretary of the Crude Oil Refiners Association of Nigeria, Eche Idoko, told our correspondent last week that a meeting was held to that effect.
He disclosed that CORAN is asking for a crude supply contract with refineries that are operating and a conditional crude supply contract with those who are currently at ATC (Authority To Construct) and construction stages to enable the close out on their final investment decisions and bring their refineries to full operation.
The CORAN spokesperson has earlier stated that the supply of crude to local refineries in naira would bring down the cost of petrol and strengthen the naira against the dollar.
Recently, the management of Dangote Group insisted that the IOCs were still frustrating crude supply to the 650,000-capacity refinery.
In a statement, the group alleged that the IOCs insisted on selling crude oil to its refinery through their foreign agents, saying the local price of crude will continue to increase because the trading arms offer cargoes at $2 to $4 per barrel, above NUPRC official price.
The group also alleged that the foreign oil producers seem to be prioritising Asian countries in selling the crude they produce in Nigeria.
The PUNCH also reported two weeks ago that the Dangote refinery engaged in an exchange of words with the NUPRC over the alleged supply of 29 million barrels of crude oil to the refinery.
The Dangote Group had accused the NUPRC of failing to effectively enforce the Domestic Crude Supply Obligations regulations, saying the refinery had yet to get enough crude locally.
Reacting, the NUPRC debunked the claim, stating that it facilitated the supply of over 29 million barrels of crude oil to Dangote from January to June 2024.
The NUPRC argued that it had facilitated the domestic supply of crude oil to Dangote refinery and other refineries using the monthly production curtailment platform.
But in a swift response, the Dangote Group also denied receiving 29 million barrels of crude from any source.
Spokesperson for the Dangote Group, Anthony Chiejina, said, “We received NUPRC’s statement that they have facilitated the allocation of 29 million barrels of crude oil to the Dangote Petroleum Refinery and Petrochemicals, we would like to thank them for this allocation but at the same time, we wish to let them know that we are yet to receive these cargoes.
“Aside from the term supply we bilaterally negotiated with NNPCL, so far NUPRC has only facilitated the purchase of one crude cargo from a domestic producer. The rest of the cargoes we have processed were purchased from international traders.”
Chiejina added that all the refinery was asking for was for refineries in Nigeria to buy crude directly from the companies that produce it in Nigeria rather than from international middlemen
[Punch]
TikTok trends often capture the humor in everyday life, and the “Very Demure, Very Mindful” trend is a perfect example created by a beauty influencer, known as Jools LeBron.
LeBron, in a viral audio clip, humorously contrasted the idea of being “demure” and “mindful”.
In the forty-second TikTok video she shared, she flaunted a polished makeup look and described herself as “very demure, very mindful.”
To Jools, being “demure” means being mindful, modest, and considerate of both oneself and others, presenting herself in a refined and thoughtful way.
The trend quickly caught on as users showcased their clumsy or chaotic moments while the refined voiceover played in the background.
The irony and self-deprecating humor of the trend resonate with many, offering a refreshing break from the often curated perfection on social media.
This trend highlights TikTok’s unique ability to turn simple ideas into viral sensations, encouraging everyone to embrace their imperfections and laugh at life’s less graceful moments.
Who is Jools LeBron, creator of ‘very demure, very mindful trend?
Lebron is a prominent social media influencer renowned for her makeup and beauty tutorials, as well as her popular ‘Get Ready With Me’ videos.
Since 2021, she has also gained attention for her extensive collection of Bratz dolls and her passion for creating wigs.
According to Variety, Lebron has shared that the success of her ‘very demure very mindful’ videos has allowed her to travel internationally for event hosting and to support her transition financially. Lebron identifies as a transgender woman.