- FG Owes IOCs $1bn in JV Cash Call
The Federal Government has yet to pay oil companies a total of $1.07bn in cash call required for the development of joint venture assets for the first four months of the year.
The government failed to exit the JV cash call arrangement in January in line with an agreement it reached with the international oil companies in December.
The nation’s oil and gas production structure is split between JV (onshore and in shallow waters) with foreign and local companies, and Production Sharing Contracts in deep water offshore.
The Nigerian National Petroleum Corporation owns 55 per cent of the JVs with Shell, and 60 per cent of all the others, and the JVs are jointly funded by the private oil companies and the Federal Government through the corporation.
The latest monthly report of the NNPC showed that the corporation paid a total of $1.78bn from January to April this year, as against $2.85bn expected to be paid for the period.
It paid $171.1m in January; $168.2m in February; $267.1m in March; and $142.1m in April from its export proceeds.
The NNPC said a total of N163bn, an equivalent of $1.03bn at a budgeted exchange rate of N197/$, was transferred to the JVCC from domestic crude oil receipts from January to April.
The NNPC was expected to pay $712.46m to its joint venture partners monthly for the development of oil and gas assets, in line with the 2016 budget.
It said, “Total export crude oil and gas receipt for the period of April 2016 to April 2017 stood at $2.5bn. Out of which the sum of $2.29bn was transferred to the JV cash call in line with the 2016 approved budget pending the 2017 budget approval and the exit of JV cash call, and the balance of $0.21bn was paid to the Federation Account.
“However, this JVCC amount falls short of the 2016 appropriated amount of $8.64bn. This is due to the twin effect of production disruption in the Niger Delta and low crude oil prices during the year.”
The chronic JV funding shortfalls being experienced in the industry have resulted in declining JV oil production over the years.
But production from the PSC arrangement, where the NNPC does not provide the funding, has increased almost proportionately to the JV production decline over the same period.
The funding problem, which has lingered for over two decades, has been exacerbated by the steep fall in global oil prices, which have driven down the country’s earnings from the commodity, its major revenue earner.
Analysts at FBN Capital Limited said in a note on Friday, “Under an agreement with the oil majors, a haircut has been applied to the corporation’s arrears, a first repayment has been made, and the ventures are to become incorporated and self-financing.”
President Muhammadu Buhari, while presenting the 2017 budget estimates to a joint session of the National Assembly in December, disclosed that one major policy coming into effect from January this year would be to stop direct funding of the JV operations.
He stated that from January, the Federal Government would no longer make provision for the JV cash calls, adding, “Going forward, all joint venture operations shall be subjected to a new funding mechanism, which will allow for cost recovery.
“This new funding arrangement is expected to boost exploration and production activities, with the resultant net positive impact on government revenues, which can be allocated to infrastructure, agriculture, solid minerals and the manufacturing sectors.”
The government, in its Economic Recovery and Growth Plan, said it would reduce its stakes in joint venture oil assets, refineries and other downstream subsidiaries such as pipelines and depots.
UAE Agrees to Issue Visas to Nigerians, FG Approves Emirates to Fly Into Nigeria
UAE to Issue Conditional Visa Visa to Nigerians
The United Arab Emirates (UAE) has changed its position on Nigeria’s immigrants following the federal government’s decision to restrict flights from the Arab nation from operating in Nigeria’s airspace.
The Minister of Aviation, Sirika Hadi, disclosed this on Wednesday on his official Tweeter handle@hadisirika.
However, the minister said the commencement of the Visa issuance is condition precedent. Therefore, he pleaded with Nigerians to bear the unusual condition attached to the agreement reached by the Federal Government and the Arab nation.
The tweet read, “UAE has written to state that they agree to issue visas to Nigerians, consequently decision has been reached to allow Emirates to fly into Nigeria. Commencement of the Visa issuance is condition precedent. Please bear with this unusual situation. Many thanks.”
UAE has written to state that they agree to issue visas to Nigerians, consequently decision has been reached to allow Emirates to fly into Nigeria. Commencement of the Visa issuance is condition precedent. Please bear with this unusual situation. Many thanks 🙏🏽🇳🇬🇳🇬🇳🇬🙏🏽
— Hadi Sirika (@hadisirika) September 30, 2020
United Arab Emirates had stopped the issuance of visas to Nigerians following COVID-19 outbreak in Nigeria and the rest of the world. In return, the Nigerian government restricted flights from the Arab nation from operating in the Nigerian airspace immediately it resumed operation.
The two countries have now reached an agreement to welcome immigrants from each other but the condition attached to visa issuance for Nigerians looking to travel to UAE remains unclear and vague at best for now.
HealthPlus Founder, Alta Semper Foreign Investor In Leadership Battle
HealthPlus Founder Bukky George and Alta Semper, the foreign Investor that invested $18 million In the company in Leadership Battle
HealthPlus Limited, one of Nigeria’s major integrated pharmacies, is enmeshed in a leadership tussle as a foreign Private Equity firm, Alta Semper, that invested $18 million in the company two years ago is pushing for a complete takeover and has terminated the appointment of Mrs. Bukky George, the Chief Executive Officer and the original founder of the company.
In a letter signed by two directors, Afsane Jetha and Zachary Fond, the majority of the company’s board on September 25, 2020 issued an instruction appointing one Mr Chidi Okoro as the new chief transformation officer to provide interim leadership for HealthPlus Limited.
The statement reads, “The difficult decision was made in full compliance with Nigerian law and following a long and drawn-out process of engagement, through which the board sought to address multiple issues with the way the company was being managed.
“Despite a series of significant breaches of the terms of Mrs George’s engagement as CEO, the board explored a range of options that would enable her to continue to play an alternate leadership role.”
The statement also said a larger number of the board determined that a change of leadership was necessary for HealthPlus to achieve its strategic goals.
It said, “Mrs George continues to serve on the board, while Mr Okoro oversees the day-to-day operations of the company.
“The decision of Alta Semper Capital to acquire majority control of HealthPlus in 2018 and its belief in the company’s potential to become a market leader, not just in Nigeria, but across the continent, is a testament to the strength of the HealthPlus brand.”
However, another statement titled ‘Attempted hostile takeover by foreign private equity firm’ and signed by the management of the company said the announcement is false, wrongful and should be ignored.
It said, “It is the handiwork of unscrupulous foreign and local businesswoman and businessmen intent on reaping where they have not sown simply because they now see opportunities from the COVID-19 pandemic.
“It is instructive to note that the chairman of the board of directors resigned two days ago and another director resigned five weeks ago. Both gentlemen had been displeased and frustrated by the impasse and its debilitating effect on the company, its fortunes, employees and, above all, the sheer injustice occasioned by it all.”
“Mrs Bukky George founded and grew HealthPlus against the odds to the household brand that it is today. She continues to run the company as founder and Chief Executive Officer.”
The management said in 2018 HealthPlus limited decided to partner with Alta Semper Capital to grow the company through fresh capital injection but since the deal was signed, it has been problematic.
According to them, the private equity company was to exit HealthPlus after five years as stated in the agreement reached two years ago. They also stated that George was ready to give a controlling stake to Alta Semper in order for the company to realise its investment.
“Unbeknown to Mrs George and HealthPlus Nigeria, the collaboration was doomed from the beginning because of the greed of the owners of Alta Semper and their ulterior motive of hijacking a thriving pharmaceutical concern in Nigeria,” it added.
Five Largest Cosmetic Brands Now Worth Over $40bn, Gained $4bn Despite COVID-19
World`s Five Largest Cosmetic Brands Worth Over $40bn in 2020, a $4bn Increase Despite COVID-19 Crisis
The COVID-19 outbreak has severely impacted the multi-billion-dollar cosmetics industry, causing thousands of closed stores and weak first and second-quarter sales.
However, the largest cosmetics companies and top beauty brands globally managed to increase their value despite the coronavirus crisis. According to data presented by Buy Shares, the world’s five largest cosmetic brands hit over $40bn value in 2020, a $4bn increase year-on-year. With $11.7bn in brand value, L’Oréal ranked as the largest cosmetic brand globally.
L’Oréal Brand Value Jumped by $1.3bn in 2020
In 2019, the brand value of the French multinational cosmetic giant L’Oréal amounted to $10.38bn, revealed the Brand Finance 2020 annual report. In the last twelve months, this figure rose by $1.3bn, an 13% increase year-on-year.
The report revealed that L’Oréal`s brand value increase had been primarily boosted by steady growth in sales across key markets in the last decade, especially in Asia, where over 20% of net sales are concentrated. The North American market sales rose by nearly 20%, mostly driven by CeraVe, SkinCeuticals, La Roche-Posay, and Vichy, which all delivered double-digit growth. The Group has also benefited from its digital transformation strategy, especially in Eastern Europe, where online sales surged by 50%.
Gillette ranked as the second-largest cosmetic brand in 2020. Statistics show the value of the US brand, owned by the multinational corporation Procter & Gamble increased by 18% in the last four years, rising from $7.1bn in 2016 to $8.48bn in 2020.
With almost $7.4bn in brand value, NIVEA represents the third-largest cosmetic brand globally. In 2016, the German personal care brand vas valued at $6.1bn. In the next twelve months, this figure rose to nearly $6.7bn. After a slight drop in 2018, the NIVEA brand value jumped to $6.8bn last year and continued rising. Statistics indicate the value of brand owned by the Hamburg-based company Beiersdorf Global AG rose by almost 20% in the last four years.
Estée Lauder Brand Value Surged by 41% in Two Years
The Brand Finance data also revealed that the brand value of Estée Lauder, the fourth-largest cosmetic brand in the world, jumped by 27% in 2020, the most significant increase among the top five companies. In 2018, the US skincare brand was worth $4.4bn. Over the last two years, this figure surged by 41% to nearly $6.3bn in 2020.
Statistics show that 2019 has been the most successful year in Estée Lauder’s history, with the global net sales reaching almost $15bn, an 8.6% increase year-over-year. Although the US corporation reported a net loss of $6 million due to the COVID-19 outbreak, statistics show its online sales skyrocketed in the first half of 2020.
The value of the US skincare producer Clinique, the fifth-largest cosmetic brand in the world, jumped by 15.4% year-over-year to $6.22bn in 2020.
Analyzed by geography, the United States represents the leading region globally, with $59.5bn in the total value of the eighteen leading cosmetic brands and 42% market share in 2020. French cosmetic companies ranked second with $40.1bn brand value and 28.3% market share. Japan, Germany, and the United Kingdom follow, with $12.6bn, $9.5bn, and $8.5bn value, respectively.
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