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Shareholders Worried About Future of Oando

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  • Shareholders Worried About Future of Oando

As the Oando Plc insists on retaining Wale Tinubu as its Group Chief Executive (GCE), aggrieved shareholders are worried about the future of the oil company, in view of the unresolved corporate governance issues relating to the group’s financials.

The shareholders, who stormed the venue of the Group’s Annual General Meeting in Calabar, Cross River State, in a letter read out by the leader, Clement Ebitimi, had accused the Oando management of mismanagement, thereby plunging the company into crisis.

The letter included many demands, in which the shareholders also called on Tinubu “to step down and allow competent hands to manage the company,” to save billions in assets of the company. They equally called on the Nigerian Stock Exchange (NSE), and the Securities and Exchange Commission (SEC), “to commence an immediate investigation to determine the true state of the company’s financials and corporate governance practice,” especially as regards the remuneration of the CEO and other directors.

They carried placards with various inscriptions, some of which read: Oando is in crisis; investors are being fooled; Enough of the deceit, and a host of many others.

The shareholders further rejected the 2016 financial report presented by the Board, saying: “We have read several newspaper reports on allegations of gross mismanagement by the present Management of Oando Plc. “As it stands, Oando is in a very bad shape, although the company’s report points to the contrary. Despite these official denials, shareholders have lost a fortune with the shares of the company plummeting to the bottom.

“We have lost enormous sums of money with our relatives as a result. The value of our shares today stands at less than ten percent of what it used to be. It has plunged from a high of N95 less than ten years ago to as low as a little above N6 per share,” he said.

The protesting shareholders, who held down the proceedings of the meeting for over two hours were particularly concerned about the future of Oando, based on the Report of the Independent Auditors, for the year ended 31 December, 2016, in which they drew attention to the Material Uncertainty Related to Going Concern.

The report read in part: “We draw attention to Note 45 in the financial statements, which indicates that the Company reported a comprehensive loss for the year of N33.9billion (2015: loss N56.6billion) and as at date, its current asset exceeded current liabilities by N14.6billion (2015: N32.8billion net current liability). The Group reported a comprehensive income of N112.4billion for the year ended 31 December 2016 (2015: loss N37billion) and as at that date, its current liability exceeded current assets by N263.8billion (2015: N260.4billion).

“As stated in the note, these conditions, along with other matters, indicate that a material uncertainty exists that may cast significant doubt on the company (and Group’s) ability to continue as a going concern.”

But, Oando in a statement in Lagos, said the disturbances delayed the proceedings of the meeting for only about 15 minutes, while claiming that the aggrieved parties were not shareholders, as all shareholders were allowed access to the venue to raise their legitimate concerns to management and the Board.

The company added that shareholders subsequently voted unanimously to all resolutions, expressing confidence in the management team, led by the Group Chief Executive Officer, Wale Tinubu, and retaining the company’s Board of Directors.

“There was a protest outside the venue carried out by non-shareholders as all shareholders were allowed access to the venue to raise their legitimate concerns to management and the Board.”

Notwithstanding the fact that all the motions presented at the meeting were approved by the shareholders, some of their representatives had requested a quick resolution to the issues raised by the petitioners to enable Oando management focus on building the brand.

They also urged the shareholders to resolve their disputes with the company in private to avoid unnecessary sensationalism.

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.

Energy

How Nigeria’s National Power Grid Collapsed Ten Times Within 9 Months 

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The national power grid has again collapsed, leaving many Nigerians in total darkness.

Investors King can authoritatively report that this is the tenth time the power grid will be disrupted this year alone.

For this recent collapse, the grid, reportedly lost power generation around 1:39 pm on Tuesday.

Information revealed that power generation was 2,711 megawatts as of 1:00 pm, having previously peaked at 3,631 MW.

Earlier, power generation peaked at 3,934.77 MW around six o’clock in the morning.

However, between 2 pm and 3 pm, hourly generation dropped to 0.00 MW.

The Transmission Company of Nigeria confirmed that the national grid experienced a partial disturbance at about 1:52 pm on Tuesday, 5th November 2024.

TCN spokesperson Ndidi Mbah mentioned that the recent collapse was due to a series of line and generator trippings that caused instability in the grid and, consequently, the partial disturbance of the system.

Mbah pointed out that data from the National Control Centre revealed that a part of the grid was not affected by the bulk power disruption.

TCN however indicated that work work is in progress to restore power.

She explained that engineers are already working to quickly restore bulk power supply to the states affected by the “partial disturbance.”

Mbah noted that presently, bulk power supply has been restored to Abuja at 2:49 pm, maintaining that “we are gradually restoring it to other parts of the country.”

She apologized to Nigerians for whatever inconvenience the collapse might have caused.

Findings by Investors King revealed that the grid had collapsed at ten different times between March and November, this year.

Times the grid collapsed included February 4, March 28, April 15, July 16, two times in August 5, October 14, October 15, twice in October 19 and now today, November 5.

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Energy

Darkness Falls Again: TCN Explains Latest National Grid Collapse

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The Transmission Company of Nigeria (TCN) has provided an explanation for the latest National Grid collapse, which occurred on Tuesday, November 5.

Tuesday’s collapse, marking the 10th in 2024 alone, left Nigerians in total darkness.

Recall that the National Grid collapsed twice in October, sparking concerns among Nigerians.

Reacting to the latest collapse via a statement on Tuesday, the General Manager of TCN Public Affairs, Ndidi Mbah, disclosed that the collapse happened at 1:52 pm.

The GM revealed that the grid collapse was caused by line and generator trippings.

Mrs. Mbah said, “TCN states that the national grid experienced a partial disturbance at about 1:52 pm today, 5th November 2024.

“This followed a series of line and generator trippings that caused instability in the grid and, consequently, the partial disturbance of the system.

Data from the National Control Centre (NCC) revealed that a part of the grid was not affected by the bulk power disruption.

Mbah disclosed that operators are working to restore power in affected states, adding that power was restored in Abuja.

She explained, “TCN engineers are already working to quickly restore bulk power supply to the states affected by the partial disturbance. Presently, bulk power supply has been restored to Abuja at 2:49 pm, and we are gradually restoring power to other parts of the country.”

Apologizing to Nigerians, TCN said, “We sincerely apologize for any inconvenience this may cause our electricity customers.”

Investors King, in an earlier report, revealed that in an attempt to address the persistent collapse of the national grid, the Nigerian Electricity Regulatory Commission (NERC) announced that discussions were underway with Independent Operators to take over the management of the grid.

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Energy

Nigeria Partners with ECOWAS and Morocco to Launch $26B African Gas Pipeline

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The Nigerian government, in partnership with the Economic Community of West African States (ECOWAS), Morocco, and Mauritania, has announced plans to advance the $26 billion African Atlantic Gas Pipeline project to drive economic growth across Africa.

This development was revealed on Monday, November 5, by Mele Kyari, Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPCL), at the ECOWAS Inter-Ministerial Meeting on the Nigeria-Morocco Gas Pipeline Project.

Speaking at the meeting, which was attended by ECOWAS Ministers of Hydrocarbons and Energy as well as representatives from Morocco and Mauritania, Kyari stated that, once completed, the project will connect 13 African countries.

Represented by Olalekan Ogunleye, NNPC’s Executive Vice President for Gas Power & New Energy, Kyari said this will be Africa’s largest pipeline project.

Ogunleye confirmed that progress has been made with the front-end engineering design completed, the phase two study finalized, and work ongoing for environmental and social impact assessments as well as land acquisition and resettlement.

He emphasized NNPC’s readiness to execute the project: “Today, we come together to make significant progress in the African Atlantic gas pipeline project, which is a transformative initiative connecting at least 13 African nations in shared prosperity and development. These achievements underscore our capability to deliver this landmark project, supported by strong regional collaboration.”

Ekperikpe Ekpo, Minister of State for Petroleum Resources (Gas), described the project as a game-changer for the regional economy, stating, “We stand at a critical juncture where these agreements can reshape our energy landscape, strengthen our economies, and uplift our people.”

He also highlighted that the project will increase Africa’s presence in the global gas market, noting that “the agreements demonstrate a strong commitment to advancing hydrocarbon and energy trade across ECOWAS, enhancing access to natural gas in West Africa, and expanding Africa’s global footprint in the gas market.”

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