Connect with us

Business

Buhari Seeks National Assembly Approval for $1bn Eurobond

Published

on

eurobond
  • Buhari Seeks National Assembly Approval for $1bn Eurobond

The Federal Government has asked the National Assembly to approve the plan to raise $1bn through Eurobond issuance.

It was gathered on Tuesday that President Muhammadu Buhari had transmitted a letter to the National Assembly to seek legislative approval for the Eurobond issuance, which might force the lawmakers to come out of their ongoing recess.

The decision to seek approval was part of the discussion when the leadership of the National Assembly met with Presidency officials on Tuesday.

A reliable source, who was privy to the meeting, told our correspondent that the discussion was aimed at preventing the new plan from suffering the same fate of rejection as the $29.9bn loan plan when it was presented for legislative approval.

The source said, “The fallout of the meeting between the Senate President, Bukola Saraki; Speaker of the House of Representatives, Yakubu Dogara; and the Presidency on Tuesday is that the Federal Government wants the National Assembly to approve its new request for a $1bn Eurobond. It appears that since the approval of proposed $29.9bn external loan has not been obtained, this is the other option available to the government.

“The National Assembly will reconvene anytime from now on the executive’s request. The letter got here last Thursday after the plenary had been adjourned for three weeks to allow the Ministries, Departments and Agencies of government to come and defend their budgets.”

Buhari had in October 2016 written to the National Assembly to approve his administration’s external borrowing plan of $29.960bn for the execution of key programmes and infrastructural projects across the country for the period 2016 to 2018.

The President explained that the external borrowing plan was to fund infrastructure in agriculture, health, education, water supply, growth and employment generation, poverty reduction through social safety net programmes, among others.

But the Senate on November 1, 2016 rejected the borrowing plan for lack of details.

The House of Representatives had said that it could not act alone on the request since the Senate had rejected it.

The Chairman of the House Committee on Media and Public Affairs, Mr. Abdulrasak Namadas, had said that the hands of the House were tied on the issue.

He said the House would wait till the questions raised by the Senate were addressed.

Speaking further on the Eurobond plan, the source disclosed that the leadership of the Senate and the House of Representatives would hold a joint meeting on Tuesday night at Saraki’s residence to determine the date that the lawmakers would reconvene.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

Business

Aliko Dangote Remains Africa’s Richest Man With $12.1 Billion Net Worth -Forbes

Published

on

Aliko Dangote Remains Africa’s Richest Man With $12.1 Billion Net Worth -Forbes

Nigerian industrialist, Aliko Dangote, is Africa’s richest person for the tenth year in a row.

In the Forbes Africa latest billionaires list, Dangote’s total net worth stood at $12.1 billion, a $2 billion increment when compared to last year. Thanks to the 30 percent increase in the price of Dangote Cement share.

Nassef Sawiris of Egypt followed Dangote with $8.5 billion net worth with the majority of his investments coming from construction and other investments.

In third place was Nicky Oppenheimer of South Africa with an $8 billion total net worth.

Mike Adenuga and Abdulsamad Rabio, the two Nigerians, came fifth and sixth with $6.3 billion and $5.5 billion net worth, respectively.Forbes Africa's billionaires list

Continue Reading

Business

Portland Paints, Chemical and Allied Products Plc Agreed to Merge

Published

on

Portland Paints

Portland Paints, Chemical and Allied Products Plc Agreed to Merge

Portland Paints and Products Nigeria Plc and Chemical and Allied Products Plc have agreed to merge, according to the latest statement from both companies.

In a statement released through the Nigerian Stock Exchange, the Board of Directors of CAP said we are “pleased to inform you that following discussions and negotiations, the Boards of CAP and Portland Paints have reached an agreement to undertake a merger between both entities (the “Merger” or the “Proposed Merger”).

Accordingly, we “hereby present to you the terms and benefits of the Proposed Merger for your consideration and seek your support and approval to effect the Proposed Merger.

“The Proposed Merger presents a compelling opportunity to create significant value for shareholders of CAP and achieve the company’s strategic growth objectives as a larger company with a broader product portfolio, more corporate owned brands and diversified revenues.

“The resultant entity is also expected to benefit from enhanced distribution capabilities in addition to economies of scale and operational efficiencies.”

Continue Reading

Business

Tony Elumelu Acquires Shell, Total, ENI Stakes in OML 17

Published

on

Shell

Tony Elumelu Acquires Shell, Total, ENI Stakes in OML 17

Tony Elumelu owned Heir Holdings Limited and its related company Transnational Corporation of Nigeria Plc on Friday announced it has completed the purchase of 45 percent stake in Oil Mining Lease (OML 17) through TNOG Oil and Gas Limited.

The acquisition includes all assets of Shell Petroleum Development Company of Nigeria Limited (30 Percent), Total E&P Nigeria Ltd (10 percent) and ENI (five percent) — in the lease.

It was further stated that TNOG Oil and Gas Limited will also have the sole right to operate OML 17.

The field presently has a production capacity of 27,000 barrels per day. Also, there are estimated 2P reserves (proven and probable) of 1.2 billion barrels and an additional one billion barrels in possible reserves — all of oil equivalent.

A consortium of global and regional banks and investors provided a financing component of $1.1 billion for the largest oil and gas financing in Africa in over a decade.

In a statement released on Friday, Shell said the completion was after all the necessary approvals have were received from authorities.

“A total of $453m was paid at completion with the balance to be paid over an agreed period. SPDC will retain its interest in the Port Harcourt Industrial and Residential Areas, which fall within the lease area,” the SPDC said.

Speaking after the completion of the deal, Elumelu said “We have a very clear vision: creating Africa’s first integrated energy multinational, a global quality business, uniquely focused on Africa and Africa’s energy needs. The acquisition of such a high-quality asset, with significant potential for further growth, is a strong statement of our confidence in Nigeria, the Nigerian oil and gas sector and a tribute to the extremely high-quality management team that we have assembled.

“As a Nigerian, and more particularly an indigene of the Niger Delta region, I understand well our responsibilities that come with stewardship of the asset, our engagement with communities and the strategic importance of the oil and gas sector in Nigeria. We see significant benefits from integrating our production, with our ability to power Nigeria, through Transcorp, and deliver value across the energy value chain.

“I would like to thank Shell, Total and ENI, for the professionalism of the process, the Federal Government of Nigeria, the Ministry of Petroleum Resources, and the NNPC for the confidence they have placed in us.”

Tony Elumelu is the Chairman of Heirs Holdings Limited, Transcorp and United Bank for Africa Plc.

Also, read Transcorp Plc Acquires FGN’s 100% Equity in Afam Power for N105 Billion

Continue Reading

Trending