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Shell Spends N17bn on GMoU Clusters in Rivers

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Shell
  • Shell Spends N17bn on GMoU Clusters in Rivers

The Shell Petroleum Development Company of Nigeria Ltd (SPDC) has said it has spent a total of N17billion on the Global Memorandum of Understanding (GMoU) clusters in Rivers State.

The initiative gave communities opportunity to decide and implement projects and programmes that had lasting impact on people’s lives.

The funding, the company said, since the GMoU concept took off in 2006, has enabled the 19 clusters in Rivers State to embark on projects covering health, education, water and power supply improvement, sanitation and infrastructure development.

Under the terms of the GMoU, SPDC and its joint venture partners provide secure five-year funding for communities to implement development projects of their choice, which are managed by Cluster Development Boards under the guidance of mentoring NGOs.

Currently there are 39 active GMoU clusters in Rivers, Delta, Bayelsa and Abia States and since inception in 2006 a total of $239 million (N44.36 billion) has been disbursed to these clusters to fund development projects.

“The success of the GMoU initiative has proved what could be achieved when government, international oil companies, communities and NGOs worked together for the common good.,” said SPDC’s General Manager, External Relations, Igo Weli, at a presentation of the 2019 edition of the Shell in Nigeria Briefing Notes to journalists in Port Harcourt last Friday.

Shell in Nigeria Briefing Notes is an annual publication detailing the activities of the business interests of the global energy giant in Nigeria covering SPDC, Shell Nigeria Exploration and Production Company, and Shell Nigeria Gas.

On another level of social investment in Rivers State, Weli listed the Community Health Insurance Scheme (CHIS), which was established in 2010 in partnership with the Rivers State Government, as an SPDC JV flagship project that delivers affordable integrated health care to beneficiaries. Clients in the scheme pay N10,000 per annum which covers about 95 per cent of the people’s primary and secondary health care needs including child birth, seizure disorders, diabetic and ophthalmic care at the Obio Cottage Hospital.

“10 other hospitals in Rivers State also enjoyed ‘robust health intervention scheme by SPDC JV.”

In education, he cited the establishment of the first centre of excellence in Marine Engineering and Offshore Technology at Rivers State University in Port Harcourt established in 2017 which runs an 18-month Master’s and Diploma programmes in Marine Engineering, Naval Architecture as well as Offshore and Subsea Engineering. This, he said, was in addition to the many SPDC JV scholarship schemes which date back to the 1950s.

In enterprise development, SPDC JV has trained more than 460 young men and women from Rivers State under the Shell LiveWIRE programme between 2013 to 2018.

The Shell LiveWIRE programme was introduced in 2003 to help young entrepreneurs to convert their bright ideas into sustainable businesses, creating wider employment and income opportunities for communities.

LiveWIRE was extended to Ogoniland in 2014, with the objective of raising living standards and reducing crude oil theft through the promotion of sustainable alternative livelihoods.

Supporting Ogoni youths in sustainable alternative livelihoods was in line with one of the recommendations of the 2011 United Nations Environmental Programme (UNEP) Report for the restoration of the Ogoni environment.

In 2018, 100 Ogoni youths from communities near the Trans Nigeria Pipeline participated in training with 80 top performing trainees receiving business start-up funding totalling more than $90,000 (N27.27 million).

To date, the LiveWIRE programme has trained 7,072 Niger Delta youths in enterprise development and provided business start-up grants to 3,817.
To mark Nigeria’s centenary anniversary, SPDC and its JV parties donated a modern public library to the Port Harcourt Literary Society in November 2016.

Equipped with books, internet access and reliable power supply, the library to which SPDC contributed around $5 million (N1.58 billion), has continued to deliver significant benefits to many residents of Port Harcourt.

On the general development of the Niger Delta, Weli noted that between inception of the Niger Delta Development Commission in 2002 and the end of 2018, Shell companies alone contributed N375.16 billion to the commission for the purpose of facilitating the rapid, even and sustainable development of the Niger Delta region into an area that is economically prosperous, socially stable, ecologically regenerative and politically peaceful.

He said, “We’re proud of our extensive social investment footprints in Rivers State, which in some cases even stretch beyond the SPDC joint venture. He noted that the responsibility for the development of communities, societies or states resides primarily with government and community stakeholders themselves.

“It stands to reason therefore that abdicating that responsibility for development to the private sector either fully or substantially is, in my assessment, one of the key issues militating against sustainable development not just of Rivers State but of the Niger Delta.”

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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Company News

Axxela Limited Raises N16.4bn in Oversubscribed Bond Issuance

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Bonds- Investors King

Axxela Limited, a leading sub-Saharan African gas and power company, has successfully completed its N15 billion Series 1 Bond Issuance.

The company raised N16.4 billion due to oversubscription and investor confidence in the company’s financial strength and strategic direction.

Bolaji Osunsanya, Axxela’s Chief Executive Officer, expressed his satisfaction with the outcome, highlighting the bond’s oversubscription of 109%.

Despite challenging economic conditions marked by rising interest rates and limited market liquidity, Axxela’s bond offering attracted strong interest from a diverse group of investors, including pension fund administrators, asset managers, and high-net-worth individuals.

Osunsanya explained that the proceeds from the bond issuance would play a crucial role in funding the company’s long-term capital expenditures, managing its weighted average cost of capital, and diversifying its funding sources.

The funds will support the completion of ongoing gas pipeline projects across Nigeria, aligning with the company’s commitment to enhancing energy infrastructure and contributing to the country’s energy transition agenda.

Stanbic IBTC Capital, serving as the lead issuing house alongside seven joint issuing houses, played a pivotal role in facilitating the transaction, with Stanbic IBTC Bank acting as the transaction bank.

The successful bond issuance reflects Axxela’s strategic positioning as a key player in the region’s energy sector and its ability to leverage strong investor confidence to drive growth and innovation in the industry.

As Axxela continues to expand its presence and strengthen its operations, the oversubscribed bond issuance serves as a testament to the company’s resilience and its commitment to delivering value to shareholders and stakeholders alike.

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Company News

Dangote Refinery Continues Price Slashing: Diesel Now at ₦940/Litre, Aviation Fuel at ₦980/Litre

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Dangote Refinery

Dangote Petroleum Refinery has once again sent ripples through Nigeria’s fuel market by further reducing the prices of diesel and aviation fuel.

In a bid to alleviate economic hardships faced by Nigerians, the refinery has lowered the price of diesel to ₦940 per litre and aviation fuel to ₦980 per litre.

This latest move comes on the heels of the refinery’s recent price reduction to ₦1,000 per litre for diesel, which was celebrated across the country.

The decision to slash prices further underscores Dangote Refinery’s commitment to providing affordable fuel to consumers.

Anthony Chiejina, the Head of Communication at Dangote Petroleum Refinery, announced the development.

He revealed that the new prices are part of a strategic partnership with MRS Oil and Gas stations to ensure accessibility and affordability of fuel across all major locations, including Lagos and Maiduguri.

The refinery’s management expressed optimism that the price reduction would significantly ease the financial burden on consumers, particularly amid rising inflation and energy costs.

They also hinted at extending the partnership to other major oil marketers to ensure uniform pricing and prevent retail buyers from purchasing fuel at exorbitant prices.

This marks the third major reduction in diesel prices in less than three weeks, signaling Dangote Refinery’s proactive approach to addressing economic challenges.

The move has garnered praise from various quarters, with Nigerian President Bola Tinubu commending the refinery for its efforts to support the economy.

Industry experts, including Ajayi Kadiri, the Director General of the Manufacturers Association of Nigeria, lauded the refinery’s initiative, highlighting its potential to stimulate economic activities across critical sectors such as industrial operations, transportation, logistics, and agriculture.

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Appointments

First Bank of Nigeria Appoints Olusegun Alebiosu as Acting CEO Following Resignation of Dr. Adesola Adeduntan

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Olusegun Alebiosu

First Bank of Nigeria Limited, a subsidiary of FBN Holdings PLC, has announced the appointment of Mr. Olusegun Alebiosu as its Acting Chief Executive Officer (CEO).

This decision comes in the wake of the resignation of Dr. Adesola Adeduntan, who has led the bank for the past nine years.

The appointment, which takes immediate effect, is subject to the approval of the Central Bank of Nigeria (CBN), reflecting the bank’s commitment to regulatory compliance and governance standards.

Mr. Alebiosu, a seasoned banking professional with over three decades of experience, is well-prepared to take on the responsibilities of leading First Bank Nigeria during this transition period.

Having served as the Executive Director and Chief Risk Officer, he played a pivotal role in the transformation and growth of the institution over the past eight years.

His extensive experience spans various aspects of the banking and financial services industry, including credit risk management, financial planning, corporate and commercial banking, and project financing.

Before joining First Bank Nigeria in 2016, Mr. Alebiosu held key positions in renowned financial institutions such as Coronation Merchant Bank Limited and the African Development Bank Group.

Expressing gratitude for Dr. Adeduntan’s exemplary leadership, the Board of Directors acknowledged his significant contributions to the bank’s growth and success during his tenure.

Dr. Adeduntan’s departure marks the end of an era characterized by remarkable achievements and milestones for First Bank Nigeria.

As Acting CEO, Mr. Alebiosu is poised to build upon the bank’s legacy and steer it towards continued growth and profitability. With a strong focus on strategic objectives, he aims to uphold First Bank Nigeria’s reputation as a leading financial institution in Nigeria and beyond.

In his new role, Mr. Alebiosu will work closely with the Board of Directors and management team to ensure seamless operations and uphold the bank’s commitment to delivering exceptional services to its customers.

As the banking industry undergoes rapid transformation and evolving regulatory landscape, First Bank Nigeria remains committed to maintaining its position as a trusted financial partner for individuals and businesses across the country.

With Mr. Alebiosu at the helm, the bank looks forward to a new chapter of innovation, resilience, and sustainable growth.

The appointment of Mr. Olusegun Alebiosu underscores First Bank Nigeria’s commitment to continuity and stability amidst leadership changes, signaling confidence in his ability to lead the bank through its next phase of growth and development.

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