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Category: Economy

  • Nigeria may lose $27.29bn over ESIC Project – Admiral Okoja

    A retired Rear Admiral, Andrew Okoja.

     

     

     

     

     

     

     

    By Aisha Cole

    Lagos, June 11, 2024 (NAN) A retired Rear Admiral, Andrew Okoja, has warned that Nigeria stands to lose $27.29 billion in foreign investment for the Escravos Seaport Industrial Complex (ESIC) project in Delta State.

    Okoja, who is also the chairman of the Mercury Maritime Concession Company (MMCC), said this in a statement on Tuesday in Lagos

    He stated that the country was on the verge of missing this significant funding due to prolonged delays by the federal and Delta State governments in granting final approval for the project’s commencement.

    “The delay in providing the necessary approvals by both the federal and Delta State governments may result in Nigeria missing out on creating much-needed job opportunities and boosting the nation’s economy,” Okoja said.

    Okoja emphasised that the investors are prepared to commit funds for the project’s start.

    He noted that the ESIC project promises to significantly open up Delta State and seven other states, including the FCT, Abuja, to international investment in trade, commerce, and industry.

    “ESIC will transform the economy of Delta State and other beneficiary states from a predominantly rural economy to one driven by metropolitan development of international standards.

    “This project is modelled after the Lekki Deep Seaport/Free Trade Zone (FTZ) and aims to address the perennial port congestion problems in Nigeria,” he added.

    Okoja further explained that the ESIC project is a non-solicited Public-Private Partnership (PPP) regulated by the Infrastructure Concession Regulatory Commission (ICRC).

    According to him, it involves a 50-year renewable concession lease to Build, Own, Operate, and Transfer (BOOT) the ESIC deep seaport and Free Trade Zone project.

    He noted that EDIB International of Hong Kong had expressed its willingness to invest $27.29 billion in developing the ESIC project earlier in the year.

    The project is complementary to the ongoing Lagos – Calabar coastal road initiative in the country. (NAN)(www.nannews.ng)

    AIC/AWA

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    Edited by Olawunmi Ashafa

     

  • Trade modernisation project’ll ease technology transfer to NCS personnel- official

    Trade modernisation project’ll ease technology transfer to NCS personnel- official

    Technology
    By Martha Agas
    Abuja, June 11, 2024 (NAN) The Trade Modernisation Project(TMP), of the Nigeria Customs Service (NCS), is designed to ease the transfer of technological knowledge to NCS personnel, its General Manager, Mr Ahmed Ogunshola, has said.

    Ogunshola told the News Agency of Nigeria(NAN), on Tuesday in Abuja that the project was applying technology to ease export and import clearances, and payment of duties and the release of goods.

    “We are deploying modern technology for its implementation; we are working with NCS personnel from the beginning of the process until its completion, to ensure sustainability.

    “Our feeling is that if there is no sense of ownership, honestly, at the end of the day, it will be jettisoned.

    “We jointly designed and developed these solutions, so there is 100 per cent knowledge transfer in everything that we are doing.

    “From the day the first code of the software was written, NCS officers were in the room with us. It was designed, developed and is being deployed from this room (modernisation hub). This has been on since July 2023,” he said.

    NAN reports that TMP Ltd is the concessionaire of the NCS trade project.

    It is a 20-year concession agreement which has three phases with phase one covering year one to six; phase two, seven to 13, and phase three from 14 to 20.

    The agreement was signed on May 27, 2023 between the Federal Government of Nigeria, represented by NCS Board, and the Trade Modernisation Project Ltd.

    TMP is the automation of the business processes of the NCS to simplify, and enhance, the experience of stakeholders in the trade value chain.

    Ogunshola said that during the third phase of the project’s implementation, the concessionaire would step back from management it, leaving NCS to handle it for full six years.

    “NCS will continue to perform all its activities and operations; none of its statutory mandate has been concessioned to anyone, and they will continue to man all their stations.

    “All we are doing is to provide systems and platforms as well as services that enhance those functions and activities of NCS.

    “ We believe that by the end of the project, NCS will be a pride among its peers,” he said.

    NAN reports that the project is expected to generate in excess of 250 billion dollars for the Federal Government over the life of the concession.

    The concessionaire is expected to invest 3.2 billion dollars to deliver the project over the 20-year period.(NAN)(www.nannews.ng)
    MAA/ETS

    =≈======

  • Tolaram to acquire 58.02% diageo’s shareholding in Guinness Nigeria

    Acquisition

    By Rukayat Moisemhe

    Lagos, June 11, 2024 (NAN) Diageo’s 58.02 per cent shareholding in Guinness Nigeria Plc is to be acquired by Tolaram Africa, following an agreement signed on June 11.

    Mrs Omobola Johnson, Board Chairman, Guinness Nigeria, disclosed this in a statement signed by Mrs Eniola Alli-Faweya, the Head of Corporate Communications, on Tuesday in Lagos.

    According to Johnson, Tolaram has entered a long-term license and royalty agreements for continued production of the Guinness brand and its locally manufactured Diageo ready-to-drink and mainstream spirits brands.

    She said that the transaction was expected to be completed during the fiscal year 2025, subject to obtaining the requisite regulatory approvals in Nigeria.

    Johnson stated that following the completion of the transaction, Guinness Nigeria would remain listed on the Nigerian Stock Exchange Ltd.

    She added that subject to regulatory approvals, Tolaram intends to launch a mandatory takeover offer in compliance with local law requirements.

    “Today’s announcement represents a significant opportunity for the next phase of growth for Guinness Nigeria.

    “This partnership brings together Tolaram’s deep expertise in manufacturing and distribution, and Diageo’s exceptional capabilities in brand building and innovation.

    “I believe this is a winning combination which leaves Guinness Nigeria extremely well placed to drive further growth in this market,” she said.

    Adebayo Alli, Managing Director, Guinness Nigeria, said the announcement marked an exciting moment for Guinness Nigeria, its employees and customers.

    Alli expressed readiness to work alongside Tolaram, which was described as one of the largest and most respected consumer goods companies in Africa.

    “I am pleased to note Tolaram’s alignment with Guinness Nigeria’s values and its strong commitment to build an enduring and sustainable business,” Alli said.

    Haresh Aswani, Managing Director, Tolaram Africa, said the group was thrilled to welcome Guinness Nigeria, a company with rich legacy and strong consumer loyalty into its ecosystem.

    Aswani said the strategic move would expand the company’s significant footprint in the Nigerian market and presented an opportunity to leverage their combined strengths to foster innovation and deliver immense value to customers and shareholders.

    The News Agency of Nigeria (NAN) reports that Tolaram is one of the largest consumer packaged goods companies on the continent.(NAN)(www.nannews.ng)

    ARM/BEN/AWA

    Edited by Benson Ezugwu/Olawunmi Ashafa

  • Company tax for Q1 2024 stands at N984.61bn- NBS

    Company tax for Q1 2024 stands at N984.61bn- NBS

    Tax

    By Okeoghene Akubuike

    Abuja, June 11, 2024 (NAN) The nation’s aggregate Company Income Tax (CIT) for Q1 2024, is reported to be N984.61 billion, the National Bureau of Statistics (NBS) says.

     The figure is contained in the NBS Company Income Tax (CIT) Q1 2024 Report released in Abuja on Tuesday.

     According to the report, the figure shows a growth rate of -12.87 per cent on a quarter-on-quarter basis from N1.13 trillion recorded in Q4 2023.

     The report said local payments received were N386.49 billion, while foreign CIT payment contributed N598.13 billion in Q1 2024.

     It said on a quarter-on-quarter basis, activities of households as employers, undifferentiated goods- and services-producing activities of households for own use recorded the highest growth rate with 330.42 per cent.

     The report said this was followed by administrative and support service activities with 33.18 per cent.

     “On the other hand, activities of manufacturing had the lowest growth rate with –70.24 per cent, followed by electricity, gas, steam and air conditioning supply with –69.14 per cent.”

     In terms of sectoral contributions, the report showed that the top three largest shares in Q1 2024 were mining and quarrying with 20.94 per cent. 

     “This was followed by financial and insurance activities with 18.73 per cent and information and communication with 12.56 per cent.”

     It said on the other hand, the activities of households as employers, undifferentiated goods- and services-producing activities of households for own use recorded the least share with 0.02 per cent.

     “This was followed by water supply, sewerage, waste management, and remediation activities with 0.07 per cent and activities of extraterritorial organisations and bodies with 0.24 per cent.”

     The report, however, said, on a year-on-year basis, CIT collections in Q1 2024 increased by 109.93 per cent from Q1 2023.(NAN) (www.nannews.ng)

     OKE/AMM

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    Edited by Abiemwense Moru

  • Nigeria recorded N1.43trn VAT in Q1 2024, says NBS

    Nigeria recorded N1.43trn VAT in Q1 2024, says  NBS

     

    Vat
    By Okeoghene Akubuike
    Abuja, June 11, 2024 (NAN) The National Bureau of Statistics (NBS), said the aggregate Value Added Tax (VAT) stood at N1.43 trillion in Q1 2024.

    This is according to the VAT Q1 2024 Report released in Abuja on Tuesday.

    The report shows a growth rate of 19.21 per cent on a quarter-on-quarter basis from N1.20 trillion recorded in Q4 2023.

    The report also showed that local payments recorded were N663.18 billion, while foreign VAT payments contributed N435.73 billion, while import VAT contributed N332.01 billion in Q1 2024.

    On a quarter-on-quarter basis, the report showed that accommodation and food service activities recorded the highest growth rate at 59.15 per cent , followed by the activities of administrative and support at 47.79 per cent .

    “On the other hand, activities of extraterritorial organisations and bodies had the lowest growth rate at –57.01 per cent , followed by human health and social work activities at –27.73 per cent.”

    In terms of sectoral contributions, the report showed the top three largest shares in Q1 2024 were manufacturing at 26.72 per cent, information and communication at 17.42 per cent and mining and quarrying activities at 15.42 per cent .

    “On the other hand, activities of households as employers, undifferentiated goods and services-producing activities of households for own use recorded the least share at 0.01 per cent.

    “This was followed by activities of extraterritorial organisations and bodies at 0.03 per cent, and water supply, sewerage, waste management and remediation activities at 0.05 per cent.

    On a a year-on-year basis, it showed that VAT collections in Q1 2024, increased by 101.65 per cent from Q1 2023. (NAN) (www.nannews.ng)

    OKE/SH

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    edited by Sadiya Hamza

  • Your bank deposits are safe, CBN reassures Nigerians

    Your bank deposits are safe, CBN reassures Nigerians

     

    CBN Governor,  Yemi Cardoso

    Deposits

    By Kadiri Abdulrahman

    Abuja, June 10, 2024 (NAN) The Central Bank of Nigeria (CBN) has again reassured the banking public of the safety of their deposits and the banking system’s resilience.

    The apex bank’s Acting Director of  Corporate Communications Department, Mrs Hakama Sidi-Ali, gave the assurance in a statement on  Monday in Abuja.

    Sidi-Ali’s statement was a response to concern in some quarters about the stability of some Nigerian banks in the wake of Heritage Bank Plc’s license revocation,

    She faulted claims that the CBN was considering revoking the operating licences of Fidelity, Polaris, Wema, and Unity Banks.

    She also clarified that a circular issued by the Bank on January 10, 2024, notifying the public about the dissolution of the Boards of Union, Keystone, and Polaris Banks, was currently being circulated as though it was freshly issued.

    According to the director, Heritage Bank’s case was isolated

    “Allegations of further revocation of licences prior to the completion of CBN’s recapitalisation exercise are mere fabrications aimed at creating panic within the system,” she said.

    She said that bank customers, particularly those of Heritage Bank, needed not worry about the safety of their deposits, adding that the Nigeria Deposit Insurance Corporation (NDIC) had commenced payment to the bank’s insured depositors.

    She urged members of the public to continue their regular banking activities without fear, dismissing any false reports regarding the health of specific Deposit Money Banks.

    “The CBN, with its robust regulatory framework, is proactively ensuring the stability of Nigeria’s financial system, thereby guaranteeing the safety of depositors’ funds in all Nigerian financial institutions,” she said.

    Sidi-Ali reiterated the assurances of the CBN Governor, Olayemi Cardoso, that the recapitalisation of banks in Nigeria was intended to bolster the banking system and safeguard the sector against risks.

    She urged all stakeholders to cooperate in ensuring the success of the process, which she said would be for the overall growth of the Nigerian economy.

    “Without prejudice to the ongoing recapitalisation process, I want to restate that the Nigerian banking industry remains resilient. Key financial soundness indicators remain within current regulatory thresholds.

    “Customers are, therefore, encouraged to proceed with their transactions as usual, as the CBN is committed to ensuring the safety of the banking system,” she said.(NAN)(www.nannews.ng)

    KAE/MNA

    Edited by Maureen Atuonwu
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  • Unity Bank projects N5.2bn profit in Q3

    Profit
    Lagos, June 10, 2024 (NAN) Retail lender, Unity Bank Plc, has projected a profit after tax of N5.2 billion in third quarter of the year.
    This was contained in its earning forecast released to the Nigerian Exchange Ltd. (NGX) on Monday.
    The lender projected a pre-tax profit of N5.7 billion while targeting a turnover of N26.93 billion in gross earnings during the quarter.
    This indicates 8.2 per cent increase from the second quarter of 2024 projection of N24.89 billion.
    The earnings forecast also showed that the bank expects to record its interest income at N23 billion, with net revenue anticipated to hit N6.58 billion for the period.
    Unity Bank’s operating income is expected to rise to N13.38 billion, while cash flow from financing activities is projected to rise to N353.6 billion for the projected quarter.
    Meanwhile, the bank’s improved projected cash from financing activities and the expected increase in cash and cash equivalents highlight the lender’s strong liquidity position, which is critical for sustaining current and future business operations.
    The bank stated that it expected to achieve the result and surpass the projection, barring any unforeseen significant changes in the operating macroeconomic environment under which assumptions underlying the forecast were made.(NAN)(www.nannews.ng)
    RUKY/AWA
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    Edited by Olawunmi Ashafa

  • NSE seeks Seplat’s collaboration on renewable energy, national development

    Collaboration
    By Rukayat Adeyemi
    L-R: Director External Affairs & Social performance, Seplat Energy Plc, Ms Chioma Afe, Chief Operations Officer/Executive Director, Mr Samson Ezugworie, President , NSE, Mrs Margaret Oguntala, CEO, Seplat Energy Plc, Mr Roger Brown, Managing Director, Seplat East Onshore Ltd, Ibi-Ada Itotoi, during a visit of a delegation led by the President/ Chairman –in-Council of the NSE to SEPLAT Energy Plc, on Monday in Lagos.
    Lagos, June 10, 2024 (NAN) The Nigerian Society of Engineers (NSE), on Monday, solicited collaboration of Seplat Energy Plc on capacity building for local engineers, renewable energy expansion projects and innovations for national development.

    NSE’s President, Mrs Margaret Oguntala, also an engineer, made the appeal while leading a delegation of the society on a visit to Seplat Energy in Lagos.

     

    Oguntala said that the visit was in line with NSE’s objectives and committed to partnerships toward influencing and providing quality advice to governments, commerce and industry sector players, academia and other stakeholders.

     

    She listed programmes embedded in the NSE Strategic Agenda developed by its council to drive growth in various sectors and communities.

     

    She commended the company’s demonstration of leadership through innovations, sustainability, and excellence within the industry and its efforts in pursuing cleaner energy use to reduce carbon emissions.

     

    She said the firm’s efforts in reducing carbon emissions, investing in renewable energy sources, and supporting local communities aligned perfectly with the values and objectives of the NSE.

     

    Oguntala solicited support from the energy firm toward the expansion of NSE’s renewable energy installations at its headquarters in Abuja, as well as capacity building of engineers to ensure the development of the nation.

     

    “We believe that working together with us to expand this infrastructure will go a long way in helping us to achieve our objectives and bolster your contribution to supporting  a more sustainable and prosperous future for our country.

     

    “NSE also seeks to collaborate with Seplat Energy in the realm of capacity building and professional development.

     

    “Our engineers are the backbone of the energy sector, and they must be equipped with the latest knowledge, skills, and technologies.

     

    “We propose the establishment of joint training programmes, workshops and research initiatives that will not only enhance the capabilities of our engineers but also drive innovation within the sector.

     

    “As we look towards the future, it is clear that the path to sustainable development lies in strong partnerships and collective actions.

     

    “The NSE is committed to fostering such partnerships, and we are confident that our collaboration with Seplat Energy will yield significant benefits for both our organisations and for the nation as a whole,” she said.

     

    Oguntala announced that the 2024 National Engineering Conference and Exhibition with the theme “Sustainable Engineering Solutions to Food Security and Climate Change” will focus on food security.

     

    She added that the Council of NSE carefully considered and approved the theme for the conference to reflect the desire of President Bola Tinubu in achieving sustainable food security for Nigeria.

     

    The NSE president thanked the Chief Executive Officer(CEO) of Seplat Energy, Mr Roger Brown, and his team for hosting the NSE while expressing hope for fruitful partnerships for advancement of Nigeria.

     

    Responding, Brown, CEO of Seplat Energy, thanked the NSE team for recognising the firm as a leading indigenous energy company and for the partnership over the years.

     

    Brown congratulated Oguntala on her emergence as the first female president of NSE since inception in 1958.

     

    According to him, Seplat Energy is leading Nigeria’s energy transition with accessible, affordable and reliable energy that drives social and economic prosperity.

     

    “As the nation’s trusted independent energy supplier, we understand that Nigeria’s energy transition is a unique challenge. It needs leaders with long-term vision, local insight and courage to forge new pathways.

     

    “We are one of them. Step by step, we are bringing together like-minded trailblazers and forming networks of partners to make cleaner forms of energy more available and reliable for everyone.

     

    “Each step propels us further, and in our mission to lead Nigeria’s energy transition with accessible, reliable and sustainable energy that drives Nigeria’s social and economic prosperity.”

     

    “In line with our strategy to deliver energy transition, we have assessed various midstream gas, power, and renewable investment opportunities that are focused on increasing energy supply and reliability, lowering costs, and reducing carbon intensity of Nigeria’s electricity consumption,” he said. (NAN)

    RUKY/AWA
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    Edited by Olawunmi Ashafa

  • Naira appreciates against dollar by 0.02%

    Naira

    By Grace Alegba

    Lagos, June 10, 2024 (NAN) The Naira on Monday slightly appreciated at the official market trading at N1,483.62 to the dollar.

    Data from the official trading platform of the FMDQ Exchange, a platform that oversees the Nigerian Autonomous Foreign Exchange Market (NAFEM), revealed that the Naira gained 37 kobo.

    This represents a 0.02 per cent gain when compared to the previous trading date on Friday when it traded at N1,483.99 to the dollar.

    However, the volume of currency traded reduced to $161.69 on Monday down from $269.27 million recorded on Friday.

    Meanwhile, at the Investor’s and Exporter’s (I&E) window, the Naira traded between N1,505 and N1,410 against the dollar. (NAN)

    GA/AWA
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    Edited by Olawunmi Ashafa

  • Equity market opens with N324bn gain

    Market

    By Rukayat Adeyemi

     

    Lagos, June 10, 2024 (NAN) The Nigerian equity market on Monday opened the week on a positive note with a gain of 0.58 per cent.

    Consequently, investors gained N324 billion or 0.58 per cent, as the market capitalisation which opened at N56.128 trillion, closed at N56.452 trillion.

    The All-Share Index also closed 0.58 per cent or 573 points stronger to close at 99,793.71 as against 99,221.14 recorded on Friday.

    As a result, the Year-To-Date (YTD) return rose to 33.46 per cent.

    The market’s positive performance was primarily driven by gains in Seplat, Guaranty Trust Holding Company (GTCO) Zenith Bank, United Bank For Africa(UBA), Transcorp Hotel (more…)