Connect with us

Business

NNPC Repays $2.3bn JV Cash Call Arrears

Published

on

NNPC
  • NNPC Repays $2.3bn JV Cash Call Arrears

The Nigerian National Petroleum Corporation has so far repaid $2.3bn cash call arrears to its Joint Venture partners.

Nigeria’s oil and gas production structure is split between JV (onshore and in shallow waters) with foreign and local firms and Production Sharing Contracts in deep water offshore.

The NNPC 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.

In his valedictory speech at the corporation’s headquarters on Monday in Abuja, as he officially exited the office of NNPC’s Group Managing Director, Maikanti Baru, stated that the payment of cash call arrears was one of the achievements of his team.

He, however, noted that the payment of cash call arrears was the least in the minds of state governors during his days as NNPC GMD.

Speaking on what his team achieved, as spearheaded by the oil firm’s erstwhile Chief Financial Officer, Isiaka AbdulRazaq, the immediate past NNPC boss stated that the former CFO “championed the cash call exit repayment process of $5bn arrears of the JV through incremental production.

“He (AbdulRazaq) obtained Federal Government approval and instituted the self-funding model. So far $2.3bn has been paid (47 per cent of the total amount outstanding) and on 4th July 2019, the cash call arrears repayment of ExxonMobil was realised.”

Baru added, “He ensured that our salaries and up-front payments were done before or on the 25th of every month even during the economic downturn and recession. We closed the pension gap of over N198bn.

“Delivered the updated audited financial statements of NNPC to date – all the seven years backlog from 2010 have been cleared. Syndicated financing for JV and NPDC assets – we raised funding in excess of $10bn despite the tight international lending market.”

The former GMD also noted that his team promoted transparency through the regular and consistent monthly publication of the NNPC Operations and Financial Reports.

Baru, who was the 18th GMD of NNPC, gave a long valedictory speech and pointed out that the payment of cash call arrears was the least on state governors’ minds.

According to him, the governors always wanted every kobo made by NNPC to be shared, without minding the need to service the debts arising from cash call arrears for the Joint Ventures.

Baru described his 1,099 days stay in the office as the GMD eventful and that he had done his best to put the corporation on the path of recovery and sustainable growth.

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.

Business

COVID-19 to Plunge Global Consumer Spending by 8.6 % in 2020

Published

on

Global Consumer Spending to Drop by 8.6 Percent in 2020

The coronavirus pandemic has changed almost every aspect of people’s daily lives, and consumer spending is no exception. The uncertainty of the COVID-19 crisis caused considerable changes in consumer habits, forcing them to cut down their budgets and prioritize spending.

According to data presented by Stock Apps, the coronavirus outbreak is expected to cut global consumer spending to $44.3trn in 2020, an 8.6% plunge year-over-year.

$4.2trn Drop in Spending Amid COVID-19 Crisis

Falling consumer spending has significant effects on overall Gross domestic product (GDP) growth, considering it accounts for almost 70% of GDP.

Before the COVID-19 crisis, global consumer spending has witnessed steady growth for five years in a row, revealed Statista, IMF, United Nations, World Bank, and Eurostat data. In 2015, it amounted to over $41.5trn. Over the next twelve months, this figure rose to $42.5trn and continued growing. Statistics show that in 2019, consumers worldwide spent a total of $48.5trn, the highest amount in a decade.

However, the coronavirus crisis triggered a sharp fall in 2020, with global consumer spending expected to plunge by $4.2trn year-over-year. Nevertheless, statistics show the following years are set to witness a recovery, with consumer spending growing by 20% to $53.5bn in 2022.

Statista data also revealed that Switzerland represents the leading country globally, with over $40,000 in consumer spending per capita in 2020. Luxembourg ranked second with around $5,000 less than that. Iceland, Denmark, and Norway follow, with $34,300, $25,800, and $25,600, respectively.

60% of Consumers Changed their Shopping Behaviour

The McKinsey&Company survey showed consumers became increasingly cautious with their spending in 2020. Even after countries lifted lockdowns, many consumers still see their incomes fall, forcing them to reduce budgets and change shopping habits.

Statistics show that increased time spent indoors led to significant growth in consumer spending on groceries, household, and home entertainment. Brazil, South Africa, and India lead in this category, with up to 30% consumer spending growth. Major consumer markets like the United States, United Kingdom, Germany, and China witnessed around 15% grocery shopping growth in the first half of the year.

However, with consumers being mindful of their spending and turning to less expensive products, 2020 has witnessed a plunge in clothes and accessories, outside entertainment, services, travel, and transportation spending. Respondents in all countries said they cut down spending in these categories between 20% and 50%.

The McKinsey survey also revealed the COVID-19 outbreak triggered a significant change in the shopping mindset. More than 60% of consumers globally have tried a different brand or shopped at another retailer during the crisis, mostly for convenience, value, and quality.

In China and the United States, over 75% of consumers reported trying a new shopping method, and 60% plan to stick with it post-crisis. The United Kingdom and Germany follow with 71% and 54% of consumers who practiced new shopping behavior. In Japan, where lockdowns weren’t imposed, only 33% of consumers changed their shopping mindset.

Continue Reading

Business

Survival Fund: Buhari Commences Disbursement of N75 Billion Support Fund

Published

on

President Muhammadu Buhari

FG to Commence Disbursement of N75 Billion Survival Fund to MSMEs

The Federal Government to commence the disbursement of N75 billion COVID-19 support fund to successful Micro, Small and Medium Enterprises (MSMEs) that applied for financial support under the National MSME Survival Fund this week.

On September 10, 2020, the Federal Government announced the introduction of two financial support schemes to support around 1.7 million small businesses with N75 billion.

According to Tola Adekunle, the Special Assistant to the President on MSMEs, Office of the Vice President, who doubles as Project Coordinator, Survival Funds Scheme, payment disbursement to some of the beneficiaries of the schemes would commence this week.

He said, “Presently we are doing it in batches of 12 states to be able to monitor the scheme and as we speak now 12 states are ready. We are hoping that by the end of this week, we will be able to pay 12 states.

“We are starting with the artisans and it is 4,500 persons per state, plus 4,500 for transporters, bringing it to about 9,000 for each state. Right now, we have about 54,000 from 12 states.”

Asked by journalists when those on payroll support would start receiving payments, he said “By the end of this month.

“We want to ensure that the staff start getting their salaries and same for the second and third month.

Adekunle explained that payroll support which was introduced under the survival fund to help businesses that employed between 10 to 50 people, will ensure 10 of the 50 employees are paid between N30,000 to N50,000 depending on their salaries. Payment, he said would commence by the ending of this month.

He said, “We now pay 10 of those people from among the 50 employees and we pay them between N30,000 and N50,000.

“But the minimum we pay is three staffs for three months to support their businesses and to ensure that we are helping businesses to augment their salaries.”

He, however, said the program ended on October 15 but states that were yet to meet their quotas were demanding extension. A demand he said was valid given that only less than 20 states have met their quotas.

In my own opinion, it is valid but the decision lies in the hands of the committee and the project coordinator so I have to convince them based on data analysis,” he said.

Speaking on the total number of applicants for the payroll support, Adekunle said, “As at the day it closed, we had about 432,000 businesses that had applied. However, we have shortlisted less than 70,000 businesses that qualify and meet the requirements.”

Continue Reading

Business

Airtel Compensate Customers Following Service Disruption, Not Anonymous

Published

on

Airtel Financial Results

Fake Anonymous Hacker Did Not Credit Airtel Subscribers, Airtel Compensate Customers For Service Disruption

Airtel Africa on Monday compensated customers by sharing free N1,000 airtime following Friday’s service disruption.

In a text message forwarded to customers, the telecommunication company says “Dear customer, we apologise for the recent service disruption experienced on October 16. “Normal service has been restored and your line will be credited with five minutes of on-net calls and 100MB of data both valid for one day.

This was before the fake anonymous hacker claimed it has hacked the system of the company and credited all Airtel subscribers N1,000.

Most Airtel users that did not know the reason for the unusual gesture took to their social media to validate the fake anonymous claim, a claim the real anonymous has refuted and warned people to be careful of sharing their vital information with criminals parading as anonymous.

Nigerian youths continue to demand anonymous support as they seek an end to police brutality, harassment and dehumanisation of innocent citizens. The youths have vowed to continue protesting until the demanded reform and changes are effectively implemented, an unusual demand in a nation known for its lackadaisical and nonchalant attitude towards change and reform.

Continue Reading

Trending