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Reps Threaten to Recommend Revocation of Oil Licences

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  • Reps Threaten to Recommend Revocation of Oil Licences

An ad hoc committee of the House of Representatives on Tuesday threatened to recommend the revocation of various controversial Oil Prospecting Licenses and Oil Mining Leases awarded by the Federal Government.

An estimated $1.75bn in revenue is said to be owed the government by winners of oil well bids.

The committee became increasingly frustrated after it turned out that government agencies, particularly the Department of Petroleum Resources, were unwilling to provide information on the payment of royalties, signature bonuses, application fees and other dues by owners of the oil wells.

The committee, which is chaired by a member from Kaduna State, Mr. Gideon Gwani, is investigating alleged breaches of due process in the award of the oil blocks to select companies and individuals.

Earlier on Monday, the DPR, the Nigerian National Petroleum Corporation and Central Bank of Nigeria failed to produce documents on the funds derived from the wells.

On Tuesday, the DPR again was unable to furnish the committee with evidence of the presidential approvals for the wells.

Many wells were awarded through the discretionary powers of the President as exercised by the Minister of Petroleum Resources.

But, asked to produce the approvals, the DPR officials made excuses before the committee.

Two well owners, Oriental Energy and Platform Petroleum, were also unable to furnish the committee with information on the presidential approvals.

In addition, Platform Petroleum admitted to have not fully paid its royalties for 2016.

Gwani threatened, “Those who failed due process tests and whose licences to operate came through processes other than those prescribed by the law, we will recommend that such licences be revoked, relinquished and thrown back into the basket for Nigerians to bid for properly.

“In the course of this investigation, we found out even today that a company refused to pay royalties for the whole of 2016. This is a fee that is supposed to be paid monthly.

“As such, it is important that the DPR begins to enforce the (Petroleum) Act, since it is clear that any company that failed to do business in accordance with the Act by not paying the requisite fees as and when due, that company’s licence will be relinquished and the block taken away.”

He added, “We are looking at the process by which these licences were acquired because we found out that the process might have been abused.”

“It could be that someone in government was doing business with the issuance of these licences to themselves and their cronies by manipulating presidential assent. We found out that languages that were not presidential were used in some of these letters of award.

“That has given the committee an idea of how things were manipulated and that is why we want to take it further by finding out the owners of these companies from the Corporate Affairs Commission.”

On further actions the committee would take, he stated, “This committee is determined to expose any oil company that did not get its licence right and we will recommend it for revocation.

“Revocation of such licences will even be good for the country as it will provide the opportunity for our Niger Delta oil and gas investors to partake in the new bidding process.

“Personally, my believe is that if we have more Niger Delta investors in the sector, then agitation and vandalism of oil assets will be reduced, knowing that they have a greater stake in the sector.”

Last week, the committee named many OPLs and OMLs, whose proceeds had not been accounted for by the affected government agencies.

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.

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Arla Food To Set Up Dairy Farm In Nigeria, Train 1,000 Dairy Farmers

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Arla Foods- Investors King

Arla Foods, makers of Dano Milk, has announced that it will build a state-of-the-art commercial dairy farm in Northern Nigeria where it plans to train and support up to 1,000 local dairy farmers as part of its long-term commitment to developing the Nigerian dairy sector.

The 200-hectare farm, scheduled to open in 2022, will have housing for 400 dairy cows, modern milking parlours and technology, grasslands and living facilities for 25 employees.

The firm said the farm is expected to produce over 10 tonnes of milk per day to supply locally produced dairy products to Nigerian consumers.

Managing Director, Arla Foods, Peder Pedersen said “there was a great need for nutritious food and dairy products to satisfy the growing demand from Nigeria’s fast-growing population.”

“This requires a complementary approach where imported food is crucial to ensuring food security while also supporting the government’s long-term agricultural transformation plan to build a sustainable dairy sector in Nigeria,” Pedersen said.

In 2019 Arla scaled up its commitment to developing a sustainable dairy sector in Nigeria with a new public-private partnership with the Kaduna State government.

It is the first of its size and offers 1,000 nomadic dairy farmers permanent farmlands. Arla is the commercial partner that will purchase, collect, process and bring the local milk to market.

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The Board of Chemical and Allied Products Plc (CAP Plc) Appoints Vitus Ezinwa as a Non-Executive Director

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Chemical & Allied Products (CAP) Plc - Investors King

The Board of Chemical and Allied Products Plc (CAP Plc) has appointed Dr. Vitus Ezinwa as a Non-Executive Director of the company effective from Thursday June 17, 2021, subject to the approval of the Company’s shareholders at the next Annual General Meeting.

The company announced in a statement signed by Ayomipo Wey, Company Secretary/General Counsel, CAP Plc.

Dr. Ezinwa is a seasoned business manager and human resource professional with experience in leading multinational corporations.

He is currently the Chief Operating Officer (COO) of UAC of Nigeria Plc (“UACN”) and previously, the Group Director of HR at UACN.

Prior to Joining UACN, Dr. Ezinwa worked as Group Human Resources Director for Promasidor Africa; Human Resources Director, CocaCola Nigeria & Equatorial Africa with responsibility for 10 countries and Human Resources Director for British American Tobacco, West & Central Africa covering Ghana, Benin, Niger & Togo.

Dr. Ezinwa was, until recently, the Group Human Resource Director for Tropical General Investments (TGI) Group.

He is a member of the Advisory Board of Afterschool Graduate Development Centre, member of the Institute of Directors and a Fellow of the Chartered Institute of Personnel and Development (CIPD) UK.

He is a co-founder and Director of HR Network Africa and was until 2014, a member of the Lagos Business School’s Advisory Board. He holds a Bachelor’s degree in Sociology/Anthropology from the University of Nigeria, Nsukka, MBA in Management from Lagos Business School, a Master’s in applied business research and a Doctorate in Business Administration, both from Swiss Business School, Zurich, Switzerland.

In addition to holding an executive director role on the Board of UACN, Dr. Ezinwa is a non-executive director of Grand Cereals Limited.

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Business

DLM Capital Group Retains Position as Best Structured Finance & Securitization Team in West Africa

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Sonnie Ayere - Investors King

DLM Capital Group, a prominent Developmental investment bank, has once again emerged as the best-structured finance and securitization team in West Africa at the just concluded Capital Finance International (CFI) 2021 awards.

The leading developmental investment bank has won the award in the last three years to affirm its position as the leading investment institution and asset manager in the region.

CFI awards seek to identify the contributions of individuals and organizations that contribute significantly to the advancement of economies and truly add value for all stakeholders.

DLM Capital Group creates bespoke business solutions for alternative financing and harnessing funds for growth. The group focuses on four key sectors — consumer credit, agriculture, microfinance, and education with a mandate to reduce poverty and improve living conditions for Africans, while mobilizing resources for the continent’s economic and social development.

In the past three years, our portfolio management team’s performance has remained consistent, and our clients have benefited immensely from exposure to our solutions, including the NMRC securitization deal and the DLM Primero BRT Securitization,” said Head of Corporate Communications and Marketing, DLM Capital Group, Chinwendu Ohakpougwu.

We are positioned to provide services to an expansive client base of retail, high net-worth and institutional customers. DLM Capital Group remains committed to constantly providing financial solutions that will enable our clients make a difference, and we are honored to be recognized once again as a reflection of the quality of support offered to our clients’,’ she added.

DLM has won recognition in West African capital markets, acting as a sole arranger to over 80 percent of structured finance transactions in Nigeria — and all the securitization transactions. It provides deal structuring, advisory execution and capital raising services across the Nigerian capital market.

The Institution recently launched an asset financing scheme and is preparing a venture into digital banking under its subsidiary, Sofri.

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