Business News
I collected N53m From Anenih – Yakasai
Following the letter written to the EFCC by the former Chairman of PDP Board Of Trustees, Tony Anenih, explaining how he got and shared N260 million from embattled former National Security Adviser Sambo Dasuki, Kano state Elder Statesman, Tanko Yakasai Wednesday confirmed that Chief Tony Anenih gave him and 8 other prominent northerners N53 million for advocacy visit to northern traditional rulers to mobilize their subjects for hitch free 2015 general election.
“Yes, I and 8 others collected N53m from Chief Tony Anenih to pay advocacy visit to prominent northern emirs to mobilize their subjects for a hitch free 2015 general elections”, Yakasai said.
According to the letter, Anenih claimed to have received N260 million, and he gave N53 million to a group co-ordinated by a former Special Assistant to former President Shehu Shagari, Tanko Yakasai, for the 2015 presidential election.
Yakasai also stated that this was due to the request by the PDP stalwart to make available to him list of “9 apolitical but respected individuals from the north”.
Yakasai however strongly denied the link between the funds and campaigns for former President Goodluck Ebele Jonathan, listed former minister of state, foreign Affairs, Alhaji Mamman Anka, Barrister Bitrus Gwada, Alhaji Suleiman Lawal, Dr Bahago, Chief John Macklink from Plateau, and Senator Sodangi, as beneficiaries of the money.
The former political aide to second republic NPN President had in the interview said;
“I want to make it categorically clear that no officials of the last regime either Mr. Jonathan, his lieutenant, agents, contractors or person having links or relationship with the last administration gave me cash on behalf of that regime for a reason.”
Yakasai disclosed that they visited, the Sultan of Sokoto, Sa’ad Abubakar, emir of Kano, Malam Muhammadu Sanusi II, the emir of Zazzau, Alhaji Shehu Idris and the emir of Gwandu, other first class chief visited are, The emir of Anka, emir of Ilorin, emir of Nassarawa, Minnie, Bauchi, Zuru, Kebbi, Katsina, Dutse, Hadejia and representatives of emir of Daurawa.
Other prominent rulers visited further include, The Tor Tiv, the Gwom Gbom Jos, Ohimege Igu, Kotonkarfe, Etsu of Abaji, Etsu Nupe and Atta Igala.
Yakasai declared that the N53m disbursed to his team by the Benin High Chief catered for the group’s member’s allowances, transportation and hotels accommodation on a tour that took them to 18 states in the north.
The Elder Statesman finally said;
“I want to make it abundantly clear that I didn’t received money from Chief Anenih in my private capacity as Tanko Yakasai but to patriotic individuals who are interested in the peaceful coexistence of the polity”.
Business News
Oil & Gas: DPR announces 2020 marginal field licensing round
While we see the need for these asset sales to generate much-needed revenue for the Federal Government, we are concerned that a bidding process under the current environment will be fraught with difficulties.
The Department of Petroleum Resources (DPR) on Monday announced the commencement of the 2020 marginal field bid round. This bid round is coming 18 years after the last bid round in 2002 and is open to indigenous oil & gas companies and investors interested in participating in the exploration and production business in Nigeria. Marginal fields are known oil or gas discoveries on an IOC-owned block and where there has been no activity in at least the last 10 years. With the agreement of the IOC, the DPR carves-out a piece of land surrounding the discovery and this becomes a Marginal field. On this occasion, there are 57 marginal fields available for bidding, including 11 fields revoked by the DPR.
The exercise would be conducted electronically and would include expression of interest/registration, pre-qualification, technical and commercial bid submission, and bid evaluation. The process is expected to be completed in six months. The first bid round that was formally organised by the FGN began in 2001 and was concluded in 2003. At the end of the bid round, 24 licenses were awarded to 31 indigenous companies. Another bid round was proposed in 2013 with a lot of preparation and guidelines released. Unfortunately, it never held.
Flagging off this bid round under the current economic situation points to the government’s urgent need for funds. According to the DPR guidelines, interested bidders will be required to pay a total of US$115,000 and N5m in non-refundable statutory fees comprising an application fee of N2 million per field, Bid Processing Fee of N3million per field, Data Prying fee of $15,000 per field, Data Leasing fee of $25,000 per field, Competent Persons Report of $50,000 and $25,000 for Fields Specific Report.
While we see the need for these asset sales to generate much-needed revenue for the Federal Government, we are concerned that a bidding process under the current environment will be fraught with difficulties. Firstly, the current fluctuations in oil prices may mean that intending investors may base their valuations on pricing models that can become unrealistic in the near term and then are unable to develop such fields acquired. Many local companies have been hard hit by the effects of covid -19 and the ensuing significant decline in oil prices, hence they may not have sufficient cash flows nor be able to raise needed funds from both local and international banks.
In addition, we see regulatory difficulties hampering interest in the fields. For example, the lack of passage of the long awaited Petroleum Industry Bill (PIB) remains a significant deter. Furthermore, the recently passed Deep Offshore and Inland Basis Production Sharing Contracts (Amendment) Act (DOA) has made investments in Nigeria oil & gas assets less attractive. These negative regulatory sentiments has led to many IOCs decreasing investments in the Nigerian oil & gas industry. Overall, we think this may result in many of the fields ending up in the hands of individuals with cash but with no industry expertise. Again, with the current economic crunch, many of the fields may be sold significantly below their fair value.
CSL Stockbrokers Limited, Lagos (CSLS) is a wholly-owned subsidiary of FCMB Group Plc and is regulated by the Securities
and Exchange Commission, Nigeria. CSLS is a member of the Nigerian Stock Exchange.
Business News
May Output Cut: OPEC+ records 86% compliance as Nigeria beats expectation
Some of the non-OPEC member countries recorded less than impressive compliance rates. Kazakhstan, Brunei, and South Sudan recorded 47%, 22%, and 13% compliance respectively.
As OPEC+ pushes for an extension of the current output cut of 9.7 million barrels beyond June, a new report suggests that the alliance may have achieved a fairly impressive level of compliance in May, the first month of the biggest global effort to curtail oil production.
Energy Intelligence estimates that the alliance achieved an 86% compliance rate (in May) with the production cut of 9.7 million barrels per day that was agreed for both May and June. This contradicts the 74% compliance rate that was earlier reported by a Reuters survey.
The massive output cut is intended to counter the dramatic slump in global oil prices which was triggered by the coronavirus pandemic and supply glut. The output cut has since helped to move up prices well above the April lows.
Meanwhile, some West African OPEC members fell short of their pledged output cuts, with Angola and Congo recording compliance rates of 54% and 20%, respectively. Gabon’s May output actually exceeded its volumes in October 2018, which was chosen as the baseline month against which the cuts are measured.
(READ MORE: Oil prices hit 2-months high as Bonny light rises to $33.9/barrel over vaccine test optimism)
However, the compliance by Nigeria for the month of May was better than the expected 83% after its output fell by around 260,000 barrels per day between April and May. This is, however, at variance with 52% compliance that was disclosed by Nigeria’s Minister of State for Petroleum, Timipre Sylva.
Some of the non-OPEC member countries recorded less than impressive compliance rates. Kazakhstan, Brunei, and South Sudan recorded 47%, 22%, and 13% compliance respectively.
The OPEC+ alliance’s overall compliance rate was lifted by the performances from four of its top five producers, which were close to 100%. Among these heavyweights, only Iraq lagged well behind with a compliance level of less than 50%.
Energy Intelligence estimates that Opec plus achieved an 86% May compliance rate with the production cuts of 9.7 million bpd. https://t.co/nDs8dYzqkS #OOTT #opec @energyintel
— Amena Bakr (@Amena__Bakr) June 3, 2020
Russia failed to live up to its obligations under previous OPEC+ deal. But after removing condensate, which is not counted as part of its current quota, its oil output is 8.6 million barrels per day in the month of May; indicating an impressive 96% compliance rate.
Compliance is expected to improve in the month of June.
Business News
COVID-19 palliative: Sanwo-Olu concludes Homegrown School Feeding Programme
The homegrown school feeding programme, was targeted at providing food packages for 37,589 households of pupils in Public Primary Schools years 1-3
The modified homegrown school feeding programme, launched on May 21, as part of palliatives offered by the Lagos state government to cushion the economic impact of the COVID-19 pandemic, has been concluded.
The programme, which basically modified the already existing school feeding programme, was targeted at providing food packages for 37,589 households of pupils in Public Primary Schools years 1-3.
According to an official tweet from the Lagos state government, the programme was concluded on Tuesday, June 2, 2020.
The Modified Homegrown School Feeding Programme, which was flagged off in Lagos on the 21st of May, 2020 and targeted at 37,589 households of pupils in Public Primary Schools years 1-3, has been concluded@jidesanwoolu @lagossubeb#LASG #ForAGreaterLagos #CovidLASG pic.twitter.com/lWrQscf6NW
— The Lagos State Govt (@followlasg) June 2, 2020
The Executive Chairman of Lagos State Universal Basic Education Board, LASUBEB, Mr. Wahab Alawiye-King, noted that the distribution of the packages to the beneficiary households took off on May 21, and was spread across 202 centres across the 20 Local Government Education Authorities in the State.
(READ MORE:COVID-19: Lagos receives N200 Million, 5 ambulances from BUA Foundation)
Items contained in the Take-home rations:
Each beneficiary of the packages received a take-home ration made up of “5kg Bag of Rice; 5kg Bag of Beans; 500 ml Vegetable Oil; 750ml Palm Oil; 500mg Salt; 15 pieces of eggs and 140gm Tomato Paste,” which is expected to assist the parents and guardians feed the children as they remain at home during the prolonged holiday.
He explained that each beneficiary received a Take-Home Ration made up of 5kg Bag of Rice; 5kg Bag of Beans; 500 ml Vegetable Oil; 750ml Palm Oil; 500mg Salt; 15 pieces of eggs and 140gm Tomato Paste@jidesanwoolu @lagossubeb#LASG #ForAGreaterLagos #CovidLASG
— The Lagos State Govt (@followlasg) June 2, 2020
What you should know:
The Federal government also introduced a modified homegrown school feeding programme on May 15 to be coordinated by the Honourable Minister of Humanitarian Affairs, Disaster Management and Social Development, Sadiya Umar Farouq.
Farouq noted during one of the Presidential Task Force media briefings that the distribution of Take-Home Rations (THR) to the households of the children on the programme as a feasible method, after exploring several options of reaching children in vulnerable households.
Each Take-Home Ration is said to be worth N4,200, although the Minister has not released full details of the programme.
According to the World Food programme, there are 17 countries currently distributing Take-Home rations to school children. In Liberia, Take Home Rations have been distributed since 2019.
