Business News
NLNG moves to raise $2 billion to fund Nigeria’s Gas Project
Nigerian Liquefied Natural Gas (NLNG) has sought the sum of $2 billion from commercial banks to finance its Train 7 gas project of $10 billion.
Nigerian Liquefied Natural Gas (NLNG) has sought the sum of $2 billion from commercial banks to finance its Train 7 gas project of $10 billion.
Nairametrics earlier reported SCD Group’s declaration of intent to undertake the $10 billion project after emerging successful out of the bidding process. It is a joint venture consortium between the SCD Group comprising Saipem, Daewoo and Chiyoda and the Nigerian Liquefied Natural Gas (NLNG).
[READ MORE: Seplat commences $700 million gas plant construction]
The Details: NLNG has now gone ahead to approach top tier banks like Guaranty Trust Bank Plc and Zenith Bank Plc to raise $2 billion for the project with the hope that foreign lenders and export-credit agencies will account for the remaining shortfall according to NLNG CEO, Tony Attah.
“We have done the financial market pitch to know who has the capacity,” Attah said.
Inside the financing plan: The fund is expected to comprise of debt and equity with Guaranty Trust and Sumitomo Mitsui Banking Corporation playing the role of financial advisers. The project is estimated to cost $7 billion in construction and an extra $3 billion for the installation of gas pipelines and equipment.
Gas expansion: The project is expected to boost NLNG’s capacity from 22 million tonnes to 30 million tonnes as well as increase Nigeria’s natural gas capacity to meet China’s needs. The project is expected to boost Foreign Direct Investment, FDI profile of the country, and provide about 10,000 jobs during the construction stage. It is a sure way of attaining the 35% increase in its production capacity, from 22 million tonnes per annum, MTPA, to 30 MTPA. The project will last for five years.
What this means: The completion of this project will spur Nigeria to compete with Qatar, Australia, Malaysia, and the U.S in the production of natural gas and be an industry leader in gas exportation.
[READ ALSO: Neconde Energy appoints Chichi Emenike to grow its gas business]
Corporate Press Releases
elev8 launches new Nigeria Academy, to host event series on Nigeria’s digital future
The event will bring together experts in business, digital technology and economic development to amplify Nigeria’s digital dialogue.
Global technology training company elev8 is delighted to announce the launch of its new academy in Lagos with a series of online events focused on digital transformation in Nigeria.
The Knowledge-based Economy – A Pathway to Nigeria’s Digitally Enabled Future is an opportunity for business leaders to participate in Nigeria’s digital dialogue with industry experts, technology trailblazers and government leaders.
C-suite executives and digital leaders across the country are invited to join elev8 for a special series of events exploring the impact of new technologies and digitalization, as well as the potential risks to economic growth, such as Covid-19.
Digital enablement is increasingly becoming a hot topic for global businesses. In the next few years, the digital economy is projected to be responsible for a quarter of global GDP.
Across the world, businesses are accelerating digital adoption to establish a competitive edge, drive growth and ensure efficiency. For Nigeria to compete on the world stage, investment in new technologies and skills is essential in supporting a transition to a knowledge-based economy.
Digital Event: The Knowledge-based Economy – A Pathway to Nigeria’s Digitally Enabled Future
30 November – 3 December
The event will commence with the release of a cutting-edge research report on November 30. Produced in conjunction with BusinessDay Research and Intelligence Unit.
The report examines the impact of digital transformation on Nigeria’s economic growth over the next three years.
On December 1, participants will gain valuable insight on the digital strategies and tactics deployed by leading market players in an exclusive masterclass, Digitize or Die, hosted by award-winning technology and digital innovator, Sabine VanderLinden.
The event will close on Thursday, December 3 with a live digital dialogue, featuring an expert panel of digital specialists, government figures, and business leaders, looking at the ways that digitization will impact Nigeria’s economic development.
To find out more, or register for the event, please visit: www.elev8me.com/nigeria20
Companies
ValuAlliance distributes value fund of N10 per unit for H1, 2020
ValuAlliance Value Fund has declared the distribution to unit holders, the sum of N10.00/unit for the financial year ended June 30, 2020.
ValuAlliance Value Fund (“Value Fund” or the “Fund”), formerly called the SIM Capital Alliance Value Fund, has declared the distribution to unit holders, the sum of N10.00/unit for the financial year ended June 30, 2020.
This is according to a notification by the firm, sent to the Nigerian Stock Exchange market and seen by Nairametrics.
The latest distribution indicates a decline of N1/unit when compared to its distribution in the corresponding period last year.
(READ MORE: SEC reinstates DEAP Capital’s Board)
The key highlights of the recent notification include:
- Annual General Meeting Date: 21st December 2020
- AGM Venue: 33A Alfred Rewane (Kingsway) Road, Ikoyi, Lagos, Nigeria
- Proposed Distribution: ₦10/unit
- Qualification Date: 9th December 2020
- Closure of Register Date: 10th December 2020
- Payment Date: 23rd December 2020
What you should know
- The Value Fund is a closed-end Fund registered and regulated by the Securities and Exchange Commission (SEC), whose units are listed on the main board of the NSE.
- The Value Fund for the year ended June 30, 2020 achieved a growth of 2.83% Year-on-Year, with a cumulative return of 125.32% since inception, which translates to a 9-year Internal Rate of Return (IRR) of 12.06%.
Economy & Politics
Nigeria generates N416.01 billion from Company Income Tax in Q3 2020
Total company income tax generated increased by 3.48% in Q3 2020, compared to N402.03 billion recorded in Q2 2020.
Nigeria generated the sum of N416.01 billion from Company Income Tax (CIT) in the third quarter of 2020. This was revealed in the Company Income Tax by Sectors report, recently released by the National Bureau of Statistics (NBS).
According to the report, the total CIT generated increased by 3.48% in Q3 2020, compared to N402.03 billion recorded in the previous quarter (Q2 2020). It reduced by 20.13% compared to N520.89 billion recorded in the corresponding quarter (Q3) of 2019.
READ: Nigeria’s Value Added Tax collection dips slightly in Q1 2019
READ: VAT revenue may have hit 4 year high in 2018
Highlights
- Company income tax generated year-to-date sums up to N1.11 trillion as against N1.26 trillion in the comparable period of 2019.
- Professional Services including Telecoms generated the highest amount of CIT with N55.52 billion generated, closely followed by Other Manufacturing with N42.03 billion.
- Banks & Financial Institutions generated a sum of N24.05 billion.
- Mining generated the least, closely followed by Textile and Garment Industry and Local Government Councils with N120.93 million, N167.51 million, and N321.72 million generated respectively.
READ: FBN Holdings Plc posts Profit of N21.9 billion in Q3 2020
Out of the total amount generated in Q3 2020, N244.70 billion was generated as CIT locally, while N70.34 billion was generated as foreign CIT payment. The balance of N100.97 billion was generated as income taxes from other payments.
Automobiles and Assemblies grows CIT by 994%
In terms of sectors with the highest increase in company income tax remittances, the Automobiles and Assemblies sector grew its CIT by 994%, from N81.6 million in Q2 2020 to N892.7 million. It was closely followed by the Gas sector, which grew its CIT by 626% to stand at N4.76 billion from N655.5 million.
READ: FG rejects calls for tax reduction, offers tax relief for donors to intervention funds
On the flip side, transport and haulage services recorded the highest decline in company income tax, as it reduced by 76% to stand at N7.35 billion from N31.1 billion. This is closely followed by Banks and financial institutions, which declined by 51% to stand at N24.1 billion.
READ: Unity Bank Plc posts gross earnings of N11.04 billion in Q3 2020
Bottom line
The rise in company income tax is an indication of the Nigerian government’s move to improve the generation of revenue from the fiscal side as against oil exportation. However, the halt in economic activities due to the COVID-19 pandemic contributed to the year-on-year decline in company income tax.
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