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Nigeria, South Korea Trade Volume Fall on Investors’ Confidence

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NIMASA
  • Nigeria, South Korea Trade Volume Fall on Investors’ Confidence

South Korea says the volume of trade between it and Nigeria has dropped from $4.5bn about (N1.42tn) in 2014 to $1.8bn about (N567.5bn) in 2015.

The Korean Deputy Minister for Multilateral and Global Affairs, Amb. Jongmoon Choi said this in Abuja at the end of a bilateral meeting between both countries.

Nigeria and South Korea expressed worry over the decrease of $2.7bn in the volume of trade between the two countries.

He said, “The trade volume between the two countries was about $4bn in 2013, and in 2014 it was about $4.5bn.

“This was higher, but unfortunately our trade volume has slid back a bit, which is of concerns to us,” he said.

Choi said that there was the need to revitalise the volume of trade, adding that the sharp drop was due to some factors.

The envoy listed some of the factors to include the loss of investors’ confidence in doing business in Nigeria.

He, however, pledged his country’s determination to increase its investment in Nigeria, which he said stood at about $500m.

“When it comes to investment, it is more important than trade because together we do investment from South Korea to Nigeria.

“So, together we bring in technology and managerial skills and most importantly, hard working experience, the total amount of our investment stands at about $500m, this is a bit low.

“So we are taking the time to regenerate the momentum to boost our economic relations.”

Choi said that his country had planned to increase its Official Development Assistance (ODA) to Africa, adding that Nigeria had a sizeable amount of ODA released to the continent earlier.

The minister expressed pleasure over the resolution by the Federal Government to address the challenge of double taxation on investments in Nigeria.

Earlier, the Permanent Secretary, Ministry of Foreign Affairs, Amb.Olushola Enikaolaye said the two countries had a good relationship.

“Our relationship has been very good, we have seen it blossom, South Korea remains strategic partner within the auspices of our international relations,” he said.

He called on the government of South Korea to support Nigeria in its efforts to diversify its economy from oil to other sectors such as agriculture to address the challenge of food security.

Is the CEO and Founder of Investors King Limited. He is a seasoned foreign exchange research analyst and a published author on Yahoo Finance, Business Insider, Nasdaq, Entrepreneur.com, Investorplace, and other prominent platforms. With over two decades of experience in global financial markets, Olukoya is well-recognized in the industry.

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Oando Targets 100,000 Barrels Per Day Production by 2028

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Oando Plc

Nigerian energy company Oando is targeting a production of 100,000 barrels per day by 2028, following its acquisition of Eni’s Nigerian Agip Oil Company (NAOC) earlier this year.

This was disclosed by Oando Executive Director Alex Irune during an exclusive Fireside Chat at the ongoing African Energy Week: Invest in African Energies conference with Bloomberg News Correspondent Jennifer Zabasajja.

He shared the company’s future expansion plans and role in Nigeria’s energy transition and plans by the company to contribute to the 2 million barrels per day.

Mr Irune also highlighted the growing role of indigenous firms in the sector, particularly as international oil companies (IOCs) divest from onshore and shallow water assets.

“In the space of 24 months, you’re going to see about 60 percent-70 percent [of Nigeria’s production] by indigenous players, just based on the transition of IOCs to the deep offshore and the acquisitions we have seen, whether it’s Seplat, our deal or the ongoing Renaissance deal,” he said.

He also revealed that Oando is focused on maximizing the development of assets acquired through its deal, which increased its stake in OMLs 60, 61, 62 and 63 to 40 percent and nearly doubled its reserves to one billion barrels of oil equivalent.

The company’s ownership in NAOC’s joint venture assets will also grow, including 40 oil and gas fields, 12 production stations, and key infrastructure including pipelines, processing plants and the Brass River Oil Terminal.

He also noted that Oando remains open to future mergers and acquisitions across the continent.

“We’re always looking to do a deal. We stay where we have a comparative advantage, but we don’t rule out any markets. Nigeria is the first place we look – we have an immense amount of potential. As a leading energy company, we owe it to the country to reach that potential.”

Mr Irune also discussed the role of Nigeria’s Petroleum Industry Act (PIA) in strengthening the investment case, particularly for gas in Nigeria and fostering industry synergies.

The Oando-NAOC deal was the first M&A transaction following the PIA’s implementation and the company plans to leverage the deal to boost oil and gas production, with a view to supporting Nigeria’s energy transition in the future.

“In the immediate term, our focus is on producing every drop of oil we can to be able to fund that transition journey. We will use gas as a transition fuel – our assets are largely gas assets as a company, and Nigeria is largely a gas province as a country.”

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Alleged Bankruptcy: AMCON Withdrawals Case Against Dapo Abiodun’s Petroleum Company

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Asset Management Corporation of Nigeria (AMCON) has said it has withdrawn the case it instituted against Heyden Petroleum Limited.

The Corporation had approached the Lagos Division of the Federal High Court and prayed for the court’s approval to takeover Heyden Petroleum Limited owned by the Ogun State Governor, Dapo Abiodun.

AMCON had accused the company of bankruptcy, saying it was moving to acquire it in order to save it from further risk.

The presiding judge of the Federal High Court, Justice Ambrose Lewis-Allagoa had, after reviewing AMCON’s motion and supporting documents, agreed with it and ordered an interim takeover of the petroleum company.

Meanwhile, in a swift reversal, AMCON, in a statement issued by its Head of Corporate Communications, Jude Nwauzor, disclosed that the Asset Management Corporation had discontinued the matter, noting that “AMCON is not in dispute with Heyden Petroleum.”

Nwauzor said, “Our attention has been drawn to a publication in the media regarding to the pending litigation between the Asset Management Corporation of Nigeria (AMCON) and Heyden Petroleum Limited

“We hereby notify the general public that AMCON and Heyden Petroleum Limited have settled all issues between them amicably, and Heyden Petroleum Limited has demonstrated commitment to meeting their obligations and has been making payments accordingly.

“Given this latest development, AMCON has formally discontinued its pending litigation against Heyden Petroleum Limited, particularly Suit No. FHC/AMC/67/2024.

“As a responsible debt recovery agency of the Federal Government of Nigeria, it is not the practice of AMCON to engage in a media trial of obligors who are meeting their obligation. Accordingly, the general public is urged to disregard any negative commentaries on the relationship between AMCON and Heyden Petroleum Limited.”

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N1.3bn Fraud Allegation: Court Orders Arrest of Dana Air MD For Not Showing Up For Arraignment

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Mr. Hathiramani Ranesh

A Federal High Court in Abuja has ordered the arrest of the Managing Director of Dana Air, Mr. Hathiramani Ranesh for failing to appear in court for his arraignment in the alleged N1.3 billion fraud preferred against him by the Office of the Attorney-General of Federation (AGF).

The Federal Government had on October 10, 2024, asked the court to issue a bench warrant for the arrest of Dana Air after failing to honour invitation for his arraignment.

The AGF had filed a six-count charge against Ranesh and two others and marked Dana Group PLC and Dana Steel Ltd as the 2nd and 3rd defendants, respectively.

The prosecution argued that Ranesh and the two companies, along with others still at large, committed a felony between September and December 2018 at the DANA Steel Rolling Factory in Katsina.

They were accused of conspiring to remove, convert, and sell four units of industrial generators—three units Ht of 9,000 KVA and one unit of 1,000 KVA—valued at over N450 million. These assets were reportedly part of the Deed of Asset Debenture used as collateral for a bond, which remains valid.

The defendants and others at large were said to have conspired to fraudulently divert N864 million between April 7th and 8th, 2014, at House No. 116, Oshodi-Apapa Expressway, Isolo-Lagos.

This sum, reportedly part of the bond proceeds from Ecobank intended for revitalizing production at Dana Steel Rolling Factory in Katsina, was allegedly diverted for unauthorized purposes.

They were also accused of conspiring to transfer N60,300,000 to an Atlantic Shrimpers account (No: 0001633175) at Access Bank, fraudulently diverting funds earmarked as part of the Ecobank bond proceeds for resuming production at the Katsina factory.

The cumulative amount involved in the charge totals N1,374,300,000. Each offense is said to be contrary to and punishable under Section 516 of the Criminal Code Act, Laws of the Federation of Nigeria, 2004.

After Mojisola-Okeya Esho, counsel to the Federal Government, had requested for bench warrant to be issued against Ranesh, the defence lawyer, B. Ademola-Bello, disagreed with Esho, saying that they had filed a preliminary objection challenging the jurisdiction of the court to hear the matter and that the prosecution had already been served.

Delivering ruling on the application, Justice Obiora Egwuatu, agreed with Esho that Ranesh’s arrest was necessary due to his failure to appear in court despite being served with the charge and several proceedings having taken place.

Justice Egwuatu held that, according to Section 184 of the Administration of Criminal Justice Act (ACJA), 2015, the court has the authority to issue an arrest warrant against any defendant who fails to attend court sessions.

Egwuatu ordered that Ranesh must appear before the court on January 13, 2025, before any objections can be raised.

Consequently, he adjourned the matter till January 13, 2025, for hearing.

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