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NNPC Remits $49m to Federation Account After 14 Months

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The Nigerian National Petroleum Corporation, NNPC, weekend disclosed that it paid $48.99 million to the Federation Account in two months, June and July 2016.

The NNPC, in its Monthly Financial and Operations Reports, revealed that the payment was after its failure to make any dollar remittances to the Federation Account Allocation Committee, FAAC, for 14 months, from April 2015 to May 2016.

This, according to the report, is mainly due to declining crude oil earnings, which led to the NNPC transferring all dollar proceeds from crude oil and gas export sales to payments for Joint Venture Cash Call.

Specifically, the NNPC’s last foreign exchange (dollar) remittance to the Federation Account was in March 2015, when it paid $184.978 million to FAAC.

For the month of June 2016, the report pointed out that the NNPC remitted $4.866 million, while $44.125 million was remitted in the month of July 2016.

In addition, the report noted that in a 12-month period, from August 2015 to July 2016, only the amount remitted for June and July 2016, $48.99 million, had been paid into the Federation Account, while of a total NNPC crude oil and gas export sales proceed of $3.212 billion, $3.163 was utilised for Joint Venture cash call funding.

Giving further breakdown, the NNPC report said, “Total export revenue of $226.47 million was recorded in June, 2016 representing 21 per cent increase relative to preceding performance. Crude oil export sales contributed $153.011 million (or 67.56 per cent) of the dollar transactions compared with $68.89 million contribution in previous month. Also the export gas sales amounted to $73.46 million in the month of June, 2016. Twelve month crude oil and gas transactions indicate that crude oil and gas worth $3.254 billion was exported.

“Total export proceeds of $212.25 million were recorded in July 2016 as receipt. Contribution from crude oil amounted to $145.51 million while gas proceeds was $64.21 million and miscellaneous receipt amounting to $2.53 million.

Continuing, the NNPC said, “The poor performance is attributable to upsurge in attack and sabotage of oil facilities in the Niger Delta. At Forcados Terminal alone about 300,000 barrels of oil per day, bopd, were shut in since February 2016 following force majeure declared by Shell Petroleum Development Company, SPDC.

“A number of crude oil liftings were deferred until the repair is completed. Other major terminal affected by the renewed spate of vandalism includes Bonny, Usan and Qua Ibo terminals.

“Total export crude oil and gas receipt for the period of August 2015 to July 2016 stood at $3.21 billion. Out of which the sum of $3.16 billion was transferred to Joint Venture (JV) cash call in line with 2015/2016 approved budget and the balance of $0.49 billion was paid to Federation Account.

“However, this amount falls short of the calendarised appropriated amount of $615.80 million and $712.46 million for 2015 and 2016 respectively. This is due to worsening production and fall in crude oil price.”

Remits N98.8bn in two months

On the other hand, the report added that the NNPC remitted N98.844 billion in the months of June and July to the Federation Account from the domestic sales of crude oil and gas.

Specifically, N62.288 billion and N36.556 billion were remitted by the NNPC to the Federation Account in June and July 2016 respectively.

To this end, the report stated that out of total earnings of N993.33 billion from domestic crude oil and gas sales recorded from August 2015 to July 2016, N111.4 billion was utilised for Joint Venture cash call (naira only) payments, while N881.93 billion was remitted to the Federation Account in the 12-month period.

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

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Insurance

Heirs Insurance Group Unveils Revolutionary Website for Seamless Insurance Experience

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Heirs Life Assurance- Investors King

Heirs Insurance Group has launched a website designed to revolutionize the insurance experience for its customers.

With a focus on simplicity, accessibility, and personalized service, the new website aims to streamline the process of obtaining insurance coverage and empower customers to make informed decisions about their insurance needs.

The website boasts a range of innovative features that make navigating insurance options easier than ever before.

From simple and intuitive navigation menus to personalized insurance recommendations, the website is designed to guide customers through every step of the insurance process quickly and efficiently.

According to Ifesinachi Okpagu, the Chief Marketing Officer of Heirs Insurance Group, the new website embodies the company’s commitment to delivering exceptional customer service.

“Today’s customers want simplicity, and this new website delivers on that request,” Okpagu said. “We are empowering customers to take control of their lives, their businesses, assets, and their most cherished people.”

One of the key features of the website is its personalized insurance experience, which takes customers through a short journey to help them identify the best insurance plan for their needs.

Whether customers are looking for coverage for their home, car, business, or loved ones, the website provides tailored recommendations to ensure they find the right insurance solution quickly and easily.

With its user-friendly interface and innovative features, the new website from Heirs Insurance Group sets a new standard for the insurance industry, making it easier than ever for customers to protect what matters most to them.

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Banking Sector

Safaricom, Access Holdings Forge Partnership to Revolutionize Remittance Corridor in Africa

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Access bank

Safaricom, the leading telecommunications company in Kenya, has entered into a strategic partnership with Access Holdings, spearheaded by Aigboje Aig-Imoukhuede.

The collaboration aims to revolutionize the remittance corridor between East and West Africa, marking a significant step towards enhancing financial inclusion and empowering millions of individuals across the continent.

The partnership comes on the heels of Access Holdings’ recent acquisition of the National Bank of Kenya Limited, signaling the company’s ambitious expansion into the East African market.

Leveraging Safaricom’s extensive network and expertise in mobile money through M-Pesa, which currently dominates the mobile money market in Kenya, the alliance seeks to create seamless and efficient channels for remittance transactions.

Aigboje Aig-Imoukhuede, the driving force behind Access Holdings, expressed enthusiasm about the collaboration, highlighting its potential to transcend traditional boundaries and foster greater economic connectivity between East and West Africa.

He highlighted the fusion of collective expertise and resources between the two entities, underlining their shared commitment to driving financial inclusion and empowerment across the continent.

The partnership holds promise for addressing the challenges faced by millions of Africans in accessing affordable and reliable remittance services.

By connecting more than 60 million customers and 5 million businesses across eight countries, the collaboration aims to facilitate over $1 billion in daily transaction value, significantly boosting the flow of remittances within and outside Africa.

With the first phase of the collaboration focusing on key markets such as Nigeria, Kenya, Ghana, and Tanzania, stakeholders anticipate a transformative impact on the remittance landscape, paving the way for greater intracontinental trade and economic integration in line with the objectives of initiatives like the African Continental Free Trade Area (AfCFTA).

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Banking Sector

EFCC Urged to Repatriate Recoveries to NDIC for Depositors’ Relief

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The Nigeria Deposit Insurance Corporation (NDIC) has made a fervent plea to the Economic and Financial Crimes Commission (EFCC) to expedite the repatriation of recovered funds to its coffers to facilitate the timely reimbursement of depositors affected by bank failures.

During a recent meeting between the Managing Director of NDIC, Bello Hassan, and the Executive Chairman of the EFCC, Ola Olukoyede, at the NDIC headquarters in Abuja, Hassan stressed the importance of enhanced collaboration between the two agencies in recovering depositors’ funds lost due to bank failures.

Hassan emphasized that the return of recoveries made by the EFCC on behalf of the NDIC would significantly contribute to the prompt reimbursement of affected depositors.

He commended the EFCC for its unwavering efforts in combating corruption and financial crimes, highlighting its crucial role as a key member of the Taskforce on Implementation of the Failed Banks Act chaired by the NDIC.

The NDIC boss also highlighted the existing partnership between the two organizations, which led to the establishment of the NDIC Help Desk at the EFCC in 2022.

He disclosed that several high-profile cases referred to the EFCC were currently under investigation.

In response, Olukoyede reiterated the EFCC’s commitment to collaborating closely with the NDIC to combat financial crimes and safeguard the integrity of the Nigerian banking sector.

He pledged to intensify efforts to repatriate recovered funds promptly, acknowledging the interconnectedness between criminal activities and bank failures.

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