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NLNG Subsidiary Cuts Workers’ Salaries by 50%

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NLNG

Seafarers in the employ of the Nigerian Liquefied Natural Gas Ship Management Limited, a subsidiary of the Nigeria LNG Limited, will from September 1 receive half of their current salaries.

The decision is said to be in response to the more than 60 per cent reduction in the company’s revenues occasioned by the drop in the global oil price, which has fallen from $140 to about $40 per barrel in the last one year.

The Manager, Nigerian Content, NLNG, Mr. Charles Okon, who spoke for the General Manager, External Relations, Dr. Kudo Eresia-Eke, confirmed the review of manning levels and wage scale for officers on the Bonny gas transport vessels.

The decision, he explained, was taken to minimise the need for staff lay-offs as had been the case in several companies in the industry.

Okon said, “This action is in line with the depressed global market situation and consistent with prevailing industry rates, and has been taken in the interest of the sustainability of the business.

“In reality, the reviewed wage scale cannot be said to be a salary reduction as claimed. The fact is that the company has simply adjusted and aligned wages with internationally obtainable benchmarks.”

He stated that the company’s Nigerian officers’ dollar- denominated wages, upon conversion at the existing rates, far exceeded wages for their peers who were being paid in naira.

He added that other conditions of service of all the NSML personnel, including leave days, would remain the same, while leave emoluments earned in line with current wage scales would also be unaffected.

Okon said, “Several BGT vessels have already been laid up and many more areas of reduction are being explored. This is consistent with the national oil company guideline for relevant industry operators to reduce operating costs by 40 per cent.

“Management has already communicated these developments to the staff and shall continue to engage them during the implementation process, and appeals for the continuing understanding and cooperation of all parties.”

However, seafarers with the NLNGSML have protested the decision, claiming that it was taken without proper consultation with their representatives.

Some of the seafarers, who spoke on condition of anonymity, said their counterparts from other countries like India, Malaysia, Pakistan, Russia and Croatia, who were also in the employ of the company, had challenged the 20 per cent wage cut imposed on them.

One of the affected seafarers said, “This unjust proposed wage cut could kill dreams of achieving the indigenisation plan, which is committed to ensuring that Nigerian seafarers are well represented on the board of the BGT and NLNG chartered vessels.

“We are being forced to comply with a proposed 50 per cent salary cut within seven days or risk losing our jobs. Why should Nigerian seafarers earn lower than their foreign colleagues?”

The President, Nigerian Merchant Navy Officers and Water Transport Senior Staff Association, Matthew Alalade, said the association was informed of the situation last week.

He stated, “Although the company has blamed the economic downturn for this decision, the seafarers are not happy with it. We plan to resolve the issue on behalf of the senior officers. The junior officers are already members of the Maritime Workers Union but we still intend to protect them.

“For the senior staff, it will be a 40 per cent cut in salaries, while it will be 50 per cent for the junior staff.”

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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Merger and Acquisition

Otedola Moves to Sell Part of Geregu Power Plc to FEDA

Afreximbank to acquire part of Geregu Power plant

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Geregu Power

Billionaire Femi Otedola-owned energy company, Geregu Power Plc is in talks with the Fund for Export Development in Africa (FEDA) for the acquisition of part of the energy company.

The company stated in a statement signed by Akinleye Olagbende, Company Secretary and made available on the Nigerian Exchange Limited (NGX).

Geregu Power hereby notifies “Nigerian Exchange Limited (the Exchange) and the investing public of its discussions with the Fund for Export Development in Africa (FEDA) for the acquisition of a portion of Geregu Power Plc shares. FEDA is the impact development arm of the Africa Export and Import Bank (Afreximbank),” the company stated.

According to the energy firm, talks are presently ongoing and “where these talks progress to a more advanced stage, the company will notify the Exchange and the investing public in line with the rules of the Exchange.”

In October, Geregu Power listed 2.5 billion shares at N100 a unit on the Main Board of the NGX. This puts the company’s market value at N250 billion and also in a better position it to raise capital to bid for Geregu II as it is presently doing.

Speaking on the listing, the Chairman, Board of Directors, Mr. Femi Otedola, CON, said “the listing of the company was the actualization of a vision to bring world-class standards in governance sustainability, and business processes to the Company and the Nigerian electricity sector.”

He added that “listing on the Main Board of the Exchange will ensure that the long-term growth of the company is assured and its benefits will be passed on to our esteemed shareholders”.

Otedola is the largest shareholder in FirstBank and also holds a 99% stake in Amperion Power, the owner of the Geregu Power Plant.

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Merger and Acquisition

Access Bank Acquires Indirect Stake in Sigma Pensions

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Access bank

Access Holdings on Friday announced it has completed the acquisition of an indirect equity stake in Sigma and the merger of its subsidiary, First Guarantee Pension Limited (FGPL) with Sigma.

According to the bank, following the sanction of the Scheme of Merger between Sigma and FGPL by the Federal High Court on December 1, 2022, FGPL has been dissolved without winding up leaving Sigma as the surviving entity, according to Access Holdings.

Commenting on the transaction, Dr Herbert Wigwe, Group Chief Executive of the Corporation, said “Following the successful completion of the merger, our plan is to leverage the synergies of these entities, as well as the Corporation’s expansive distribution network, strong risk management culture and best-in-class governance standards to create a formidable pension funds administration business.”

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Company News

Dangote Group Dismisses Rumours of Plan to Rise Cement Price

Dangote Cement says no price increase

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Africa’s leading cement producer, Dangote Cement Plc has dismissed the rumor that it plans to increase the price of its products.

The clarification became necessary following a recent publication that Dangote Cement plans a fresh increase.

Recently, there has been some publication (Not Investors King) about a potential increase in the price of cement. The publications noted that the increase will be a result of the high cost of fuel among other prevailing issues. 

According to the Senior Manager, branding and communication, Dangote Industries Limited, Mr Sunday Esan, “Dangote Cement is not embarking on a price increase”, stating that the increase is mere speculation.

Meanwhile, Dangote Cement in the third quarter of 2022, recorded an increase in the overall volume of cement sales by 6.2 percent to 20.8 metric tons in the third quarter of 2022.

According to the company’s Chief Executive Officer, Michel Puchercos, this was achieved, despite the elevated inflation caused by a very volatile global environment.

Similarly, while speaking on the increase in the price of fuel, Puchercos said “to mitigate the impact of the significant increase in energy and AGO costs, we are strengthening our efforts to ramp up the usage of alternative fuels”.

“We are on track to commission our Alternative Fuel feed system at Obajana lines I and V, and Ibese line II in November. In addition, we are ramping up our investment in Compressed Natural Gas (CNG), to reduce our AGO usage,” he added. 

Investors King understands that Dangote Cement is Africa’s leading cement producer with nearly 51.6Mta capacity across Africa. Although it has a few competitors which include BUA Cement, the company supplies most parts of Nigeria.

In addition, Dangote Cement has operations in 10 African countries. 

Its production plant in Obajana, Kogi state, is the largest in Africa with 16.25Mta of capacity across five lines while the Ibese plant in Ogun state has four cement lines with a combined installed capacity of 12Mta.

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