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Business News

Total to refund $592 million to FG, as Reps consider probing NNPC/Chevron contract

Total Exploration and Production Nigeria (TEPNG) has been directed to refund $592 million to the Federal Government. @HouseNGR gave the directive after an investigation was made into the budget of certain projects.

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House of Representatives, Nigerian National Petroleum Corporation, National Petroleum Investment Management Services

Total Exploration and Production Nigeria (TEPNG) has been directed to refund $592 million to the Federal Government. The House of Representatives gave the directive after concluding investigations into the budget of certain projects.

The House of Representatives had received a report of the Committee on Gas Resources led by Fred Agbedi, which covered contract for the upgrade of OML 58, upgrade 1, the execution of Obite-Ubeta-Rumuji Pipeline and the Northern Option Pipeline Projects.

What’s the $592 million for? The Nigerian National Petroleum Corporation and the National Petroleum Investment Management Services were said to have overpaid the oil and gas company for the awarded contract.

The Report Findings: Besides the recommendation that Total refund the sum to the Federal Government, the committee also made other discoveries;

  • That a forensic investigative audit into the cost overrun emanating from all change orders, including $2.2bn on OML 58 Upgrade 1, $560m on OUR Pipeline and $528m on NOPL Pipeline Projects be conducted.
  • That the actual cost of the projects as awarded by NNPC/NAPIMS and TEPNG be ascertained as it is difficult to ascertain the actual cost since all the parties do not agree on the cost.
  • That a supposed entity called Diakrino Services Limited, which was engaged by NNPC/NAPIMS to conduct a Value for Money audit at the cost of $1m, was not a legal entity as was confirmed by the committee from a search at the Corporate Affairs Commission.

Lawmakers Directive;

  • Four staff members of NNPC/NAPIMS involved in managing the contract awarded to Diakrino have been directed to refund the contract sum of $1 million to the Federation Account.
  • The lawmakers said the firm should also be apprehended and prosecuted for violating the Procurement Act, 2007.
  • Lawmakers also considered the recommendation to investigate the Contract for the Modification of the EGP 3B Production Platform following the Joint Venture Agreement between the NNPC and Chevron Nigeria Limited.
  • The lower chamber approved the recommendations that the excess payment of $592 million be recovered from TEPNG in consonance with the recommendations of Tabor VFM Audit Report.

Olalekan is a certified media practitioner from the Nigerian Institute of Journalism (NIJ). In the era of media convergence, Olalekan is a valuable asset, with ability to curate and broadcast news. His zeal to write was developed out of passion to shape people’s thought and opinion; serving as a guideline for their daily lives. Contact for tips: [email protected]

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Business

FG explains why Lagos-Ibadan rail line was not linked to the sea

The government in its explanation said that the delay was due to disruption by trucks going in and out of the port complex.

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FG needs $656 million to complete Lagos-Ibadan railway project – Amaechi, Nigeria loses N150 billion annually to shipping tariffs, Ibadan to Kano rail construction

The Federal Government has stated why the China Civil Engineering Construction Company (CCECC) Nigeria Limited could not link the final part of the Lagos-Ibadan rail line to the sea.

The government in its explanation said that it was due to disruption by trucks going in and out of the port complex.

According to a press statement signed by the Director, Press and Public Relations of the Federal Ministry of Transportation, Eric Ojiekwe, this disclosure was made by the Minister of Transportation, Rotimi Amaechi, while on a routine tour of the Lagos-Ibadan rail line project on Saturday, April 10, 2021.

The Minister pointed out that the original blueprint for the Lagos-Ibadan rail line project was not adhered to by CCECC Nigeria Limited and TEAM consortium and therefore warned that the master plan of the soon to commence Ibadan-Kano rail line project should not be changed.

The statement from the ministry partly reads, “The Nigerian Government has restated its commitment to connect the whole country by rail with the soon to commence Ibadan-Kano Standard Gauge Rail project.”

Amaechi forewarned that the master plan of the soon to commence project should not be changed as the original blueprint for the Lagos-Ibadan wasn’t adhered to by Messrs CCECC Nigeria and TEAM consortium. The Minister who rode the train from Ebute-Meta to the 8.72 km Apapa Port Spur line, informed the media that the inability of Messrs CCECC Nigeria to link the final part of the rail line down to the sea is rather due to disruption by trucks going in and out of the port complex.’’

The Minister had noted that the Federal Government has paid its share of the counterpart funding of the Ibadan-Kano rail line project and is waiting for China-Exim bank to ratify its side of the agreement for the project to commence.

He also advised the Nigerian Railway Corporation (NRC) to acquire more land around the train stations and the rail tracks for future development adding that this will be near impossible to do in the future as whatever space available now would have been taken over by businesses attracted to the rail line.

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In case you missed it

It can be recalled that full commercial train services commenced on the Lagos-Ibadan rail line after train operations commenced on December 7, 2020, with only Lagos, Ibadan and Abeokuta residents enjoying the train services.

This is because other minor and major stations along that route were yet to be completed.

 

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Manufacturing

Industrial Index loses -12.39 points, as BUA and Lafarge Cement shares top losers list

The NSE Industrials index lost 12.39 index points in the first trading week in the month of April.

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Manufacturing: Activity levels pick up albeit readings still below water

The Nigerian Stock Exchange Industrial Index at the close of trading activities for the first week in the month of April closed on a bearish note, following a 0.66% decrease in the shares of BUA CEMENT and Lafarge.

At the close of trading activities on the Nigerian Stock Exchange on the 9th of April 2021, the industrial index depreciated by 55.01 index points, to close lower at 1,928.18 index points for the week.

When compared to the overall performance of the market, the NSE Industrial index underperformed, noting that the NSE All-Share Index and Market Capitalization depreciated by 0.66% to close the week at 38,866.39 and N20.3350 trillion respectively.

READ: COVID-19, VAT, FX scarcity adversely impacted our operations in 2020 – Nigerian Breweries boss says

What you should know

The NSE Industrial Index was designed to provide an investable benchmark to capture the performance of the Industrial Sector. It comprises the most capitalized and liquid companies in the industrial sector and is based on the market capitalization methodology.

The index tracks the performance of ten industrial companies on the Nigerian Stock Exchange which includes Dangote, BUA, and Lafarge Cement.

The overall performance of the companies for the week was bearish, as the index closed on a negative note driven by the decrease in the share price of BUA Cement and Lafarge.

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MEYER (19.51) was the only gainer for the week, while BUACEMENT (-1.09%) and LAFARGE WAPCO (-3.00%) were the only losers for the week.

GAINER

  • MEYER up by19.51% to close at N0.49.

LOSER

  • WAPCO down by -3.00% to close at N21.00.
  • BUACEMENT down by -1.09% to close at N72.70.

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