The attempt by Rivers State Government to acquire a stake in a disputed mining lease in Ogoniland located in the oil mining concession OML 11 operated by Shell Petroleum Development Company (SPDC) has hit the rock following a court ruling in the United Kingdom.
The Ejama-Ebubu community in Tai Eleme Local Government Area of Rivers State had requested to register Nigeria’s court judgement in a UK High Court. The court awarded the community N15.41 billion for damages suffered as a result of the pollution caused by the 1969/70 oil spill as the community had blamed Shell for the oil spill.
However, the UK High Court rejected their request as the request for registration of a court order should normally be within a year. But the request by the community was made more than eight years after the court’s ruling. The court in Nigeria had given the order on June 14, 2010. The community sought for the registration on February 25, 2019.
Why the community went to UK: The move to register the judgement of a Nigerian court in a UK court was to enable the representatives of the community to have access to Shell’s asset in Europe and around the world for enforcement.
Did Rivers truly acquire any stake? Despite the claim by the Rivers State Government that it had acquired the stakes of the oil mining lease in the community, the Department of Petroleum Resources denied any knowledge of the sale.
According to a report by Premium Times, Governor Wike said the state government had submitted a bid of $150 million for 45% equity in the asset reputed to hold about 250,000 barrels per day (BPD) of oil potential. The asset is jointly owned by Shell and the Nigerian National Petroleum Company (NNPC).
While a source claimed that the community could have offered the asset to the state government, Shell didn’t acknowledge the sale, stating that the matter was still in court. The Nigerian court order had been challenged by Shell. The oil company filed a petition to object to the ruling, stating that the spill was a third-party incident as it occurred during the civil war.
“The spill was caused by third parties during the Nigerian Civil War, a challenging period which resulted in significant damage to oil and gas infrastructure in the region,” Shell’s spokesperson, Bamidele Odugbesan said.
Odugbesan added that “While SPDC does not accept responsibility for these spills, the affected sites in the Ebubu community were fully remediated.” The UK judgement means the community will have to wait for the ruling on the appeal of Shell against the N15.41 billion for damages order.
Heavy sell-off in Guinness shares leads to N6.9 billion market value loss in a single day
Shares of Guinness Nigeria Plc suffered a 9.89% loss today.
Guinness Nigeria Plc suffered a 9.89% loss today following a heavy sell-off in the shares of the brewer. This triggered a market value loss amounting to about N6.9 billion at the close of trading activities on the Nigerian Stock Exchange, as investors scaled-down stakes in the brewer.
Data tracked at the close of the market today revealed that the shares of GUINNESS declined from N31.85 per share at the market open, to N28.70 per share at the close of the market today, to print a loss of 9.89%.
This decline saw the market capitalization of the leading maker of beer and spirits fall from N69.75 billion to N62.86 billion at the close of trading activities today, putting the total market value loss at N6.89 billion.
The shares of Guinness at the close of the market today cleared at N28.70 per share, 9.89% lower than the closing price of N31.85 per share yesterday.
At the current price, Guinness shares are currently trading 20.27% lower than their 52-week high of N36.00 per share. However, the shares of the company have returned about 120.8% gains for investors who bought them at their 52-week low trading price of N13.00 per share last week.
During trading hours on the Exchange today, about 159,380 ordinary shares of Guinness Nigeria Plc worth about N4.57 million, were exchanged in 27 executed deals.
The shares of Nigerian Breweries Plc and Golden Guinea Breweries Plc closed flat at N50.1 per share and N0.81 per share respectively, while the shares of International Breweries Plc shed 0.88% to close low today at N5.65 per share.
What you should know
- At the close of trading activities today, the NSE All-Share Index and market capitalization appreciated by 0.29% to close higher at 39,128.34 index points and N20.477 trillion respectively.
- The NSE Consumer Goods Index, an investable benchmark designed to track the performance of the shares of consumer goods companies like Guinness Nigeria Plc, depreciated by -0.35% to close the day lower at 553.26 index points.
NAICOM revokes operational licence of UNIC Insurance, appoints Receiver/Liquidator
NAICOM stated that it had appointed Hadiza Baba Gimba as the Receiver/Liquidator to wind up the affairs of the company.
The National Insurance Commission (NAICOM) on Wednesday announced the withdrawal of the operational licence issued to UNIC Insurance Plc.
Although no official reason has been provided for the revocation of the insurance firm’s operating license, NAICOM, however, stated that the decision of the regulator was in the exercise of the powers conferred on it by the enabling laws.
According to a report from the News Agency of Nigeria (NAN), this disclosure is contained in a notice which was issued by the commission in Lagos to the general public and policyholders, where it noted that the revocation of the operational license, RIC 043, is with effect from March 25.
NAICOM, thereafter stated that it had appointed Hadiza Baba Gimba as the Receiver/Liquidator to wind up the affairs of the company.
NAICOM in its statement said, “The general public/policyholders are by this notice required to direct all inquiries and correspondence regarding UNIC Insurance to the receiver/liquidator.
The receiver/liquidator will be dealing with the company’s liabilities in accordance with the provision of Insurance Act 2003.’’
What you should know
- It can be recalled that NAICOM, for the third time in June 2020, gave insurance firms in the country a one-year extension to meet the recapitalisation obligation that was recently set for them apparently due to the coronavirus pandemic which had disrupted the activities of most insurance companies.
- Some insurance companies had been going through some bad patches with a good number of them struggling to meet up with their obligations and the recapitalization requirements.
- The recapitalisation programme requires life insurance firms to meet a minimum paid-up capital of N8.0 billion, up from N2.0 billion previously. In the same vein, general insurance companies are required to raise their minimum paid-up capital to N10.0 billion from N3.0 billion previously.
- The regulatory capital for composite insurance was raised to N18.0 billion from N5.0 billion previously while reinsurance businesses are now required to have a minimum capital of N20.0 billion from a previous N10.0 billion.
Nairametrics | Company Earnings
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