Business
Nigerian oil and gas projects to get more funds from Chinese banks
The NNPC Group Managing Director, Dr. Maikanti Bar, revealed that Chinese banks had made commitments to invest as much money as might be needed to finance oil and gas projects in Nigeria.
He made this disclosure when a delegation of the Nigerian Gas Association led by its President, Engr. Dada Thomas, paid him a courtesy visit yesterday, in Abuja.
The GMD while recalling the recent financing agreements signed in London wherein, for the first time, the Chinese contributed $250m towards the projects, reiterated NNPC’s commitment to the development of the Gas Industry.
The GMD said that the recent debt settlement for the Joint Ventures would have great impact on the Gas Industry as the initiative was capable of freeing some dedicated funds that could be used to develop the sector.
He added that the Nigerian National Petroleum Corporation (NNPC) has unveiled plan to expand gas generation and distribution nationwide to support the Federal government’s aim to increase power generation to 10GW.
We have the aspiration of government to raise power generation to at least 10 giga watts capacity, not just 10GW in terms of installed capacity, but one that will be steady in the grid by 2020. All these will drive our activities to ensure that the gas business is expanded and government’s aspiration to earn as much revenue from gas as oil will definitely be realized, Dr Baru stated.
The GMD stated that as part of its commitment towards developing the power sector, NNPC is currently making efforts to link the eastern part of the country, where there are a lot of gas reserves with the west, where high consumption demand exit.
He noted that a lot has been achieved in the contracting process of the $2.7billion Ajaokuta-Abuja-Kaduna-Kano pipeline project, dubbed AKK Pipeline Project.
Dr Baru said NNPC would contribute towards the National Gas Policy recently adopted by the Federal Executive Council as well as the Fiscal Bills on gas being worked out by the legislature, with the view to reposition gas in Nigeria’s domestic energy mix.
According to him, NNPC was committed to seeing that the Ogidigben Gas Industrial City project, which is a project with potential to increase gas consumption in the country, come to fruition. He said what was remaining is getting the developer to bring in the various investors to put their industries in place.
He also applauded the inputs of the Nigerian Gas Association (NGA) in developing the gas sector while admonishing the Association to extend its advocacy to the power sector being the major consumer of gas in the country.
Speaking during the visit, NGA President, Engr. Dada Thomas, applauded the GMD of NNPC for the remarkable initiatives that he had taken so far to turn around the fortunes of the Corporation and the country’s economy at large.
Business
Shoprite Nigeria is worth at least N25 billion
N25.6 billion price tag is only reflective of what Shoprite Nigeria’s operations is worth on paper.
Africa’s largest retail chain, Shoprite, announced on Monday that it is has decided to divest from its Nigerian retail entity, Retail Supermarkets Nigeria, the owners of Shoprite Supermarket Nigeria.
Going by several media reports and social media accounts, the sale is close to being consummated and a buyer is already in line to purchase the company. Getting information on the purchase consideration for this deal can be difficult especially if there are non-disclosure clauses.
For example, then Zinnox purchased Konga from Naspers (another South African firm) and AB Kinnevik two years ago, though the purchase consideration was not disclosed. However, we do not know what Shoprite Nigeria is worth on paper.
What is it worth on paper? Going by the company’s most recent annual report published in June 2019, Shoprite values its equity in its Nigerian subsidiary, Retail Supermarkets Nigeria Ltd at R 1.164 billion (1.1 billion rands). This translates to about N25.6 billion using the official exchange rate. This is also an equivalent of $67.7 million. The exchange rates are modest and will certainly be higher if the transaction was to be at this valuation.
However, the N25.6 billion price tag is only reflective of what Shoprite Nigeria’s operations is worth on paper, what accountant’s callbook value. It could be more or even less depending on how the negotiation goes.
Shoprite Nigeria business is also its second-largest, based on book value and next only to Angola.
How will it be funded? The potential investors will likely fund this transaction via debt or equity or a combination of both. Deals like this also take time to be completed even if an agreement is announced and will also be approved by the Securities and Exchange Commission of Nigeria and possibly South Africa.
We will keep you updated as we get more information.
Business
Social clubs, recreational centres to reopen August 14
The closure of all spas, bars, lounges, night clubs, cinemas, and game arcades remains in place.
The Lagos State Government has announced that social clubs and recreational centres will be allowed to reopen operations starting from Friday 14 August 2020.
Earlier today, the government released a statement via its official Twitter handle, in which Governor Babajide Sanwo-Olu was quoted to have said that the reopening would be subject to clearance and possession of the Provisional Safety Compliance Certificate. This clearance certification can be gotten right here.
The Governor also added that at the moment, the safety clearance certificates are only being issued to social clubs with registered trustees.
READ MORE: Update: Lagos to reopen worship centres on August 7
*COVID-19* : Measures announced by the Lagos State Government to further relax the lockdown. @jidesanwoolu @drobafemihamzat #LASG #LagosAgainstCovid19 #CovidLASG #ForAGreaterLagos pic.twitter.com/3Mqz1o9dC7
— The Lagos State Govt (@followlasg) August 3, 2020
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In the meantime, however, the closure of all spas, bars, lounges, night clubs, cinemas, and game arcades remains in place. Any of the listed businesses that reopen prior to the set date and without meeting the set guidelines will be shut down. A monitoring and enforcement team will be at work to ensure that the “guidelines and directives are complied with to the letter”.
The Backstory
As part of moves towards a complete easing up of the lockdown, the Lagos State recently announced the reopening of schools. The government also announced that the reopening of religious houses and places of worship would take effect from August 7.
However, this is subject to strict adherence to standard precautions that have been put in place. All schools are expected to provide hand-washing facilities and ensure physical distancing within their premises. The Lagos State government will make available face mask 200 schools to which this reopening exemption applies for the duration of the reopening.
Relevant agencies have been directed to carry out spot checks and random inspections of schools and defaulters will be sanctioned appropriately.
Business
FG announces reopening of 104 unity schools tomorrow
The outcome of the meeting was disclosed in a press statement.
The Minister of State for Education, Emeka Nwajiuba, has announced that all the 104 Unity Colleges are ready to open for exit classes tomorrow, August 4, 2020.
The Minister revealed the preparedness of the Unity Colleges during a Zoom meeting with the Commissioners of Education of the 36 States of the Federation on Monday morning.
The outcome of the meeting was disclosed in a press statement by the Federal Ministry of Education. The statement was signed by the ministry’s Director of Press and Public Relations, Ben Bem Goong.
READ MORE: World Bank approves $500 million to help keep 6 million Nigerian girls in school
While announcing the formal opening of exit classes for the unity schools, Nwajiuba expressed his delight at the level of comprehensive preparation that has been put in place by the principals of the Unity Colleges.
During the meeting, the various state commissioners reported varying degrees of preparation and readiness for reopening between August 4 and August 10, 2020, for virtually all schools within their jurisdictions.
READ MORE: FG earmarks $1.6 billion for sea-port construction
The press statement from the ministry says, ‘’Ahead of August 4th, 2020, Minister of State for Education, Hon. Chukwuemeka Nwajiuba has announced that all the 104 Unity Colleges are ready to open their gates to exit classes tomorrow.’’
‘’From today, the Honourable Minister of State for Education, Permanent Secretary and Directors will embark on an assessment tour of all Unity Colleges to ascertain and confirm the reports they have received from the Principals of Unity Colleges.’’
‘’Similarly, Federal Education Quality Assurance Directors deployed to the States have been directed to monitor compliance in their respective states.’’
READ MORE: Unity Bank’s H1 2019 results indicate 96% growth in profit
The Commissioners of Education from the states were asked to embark on assessment tours in their areas of coverage to ascertain the level of preparations for reopening. While most of the schools will be reopening tomorrow, others will continue to fine-tune their preparations in the coming days for reopening.
Emeka Nwajiuba asked all schools to communicate their specific reopening dates to their parents and students in order to avoid chaos in the system. The statement also noted that all returning students are to undergo temperature checks among other protocols before being admitted into their schools.
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Social clubs, recreational centres to reopen August 14
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