Transnational Corporation of Nigeria Plc announced today that it has entered an agreement with Sacoil Holdings Limited (now Efora Energy Limited, “Efora”) to settle all existing legal disputes around its Oil Prospecting Licence 281 (“OPL 281”). Transcorp will pay a total sum of $5.5m.
This disclosure was made by the company in a press release which was signed by the company’s secretary, Mr. Chike Anikwe.
According to the information contained in the statement, the agreement provides for the full and final settlement of all disputes and claims of both parties in connection with a participating interest in OPL 281 previously assigned to Efora in October 2006.
The resolution of the dispute is significant, given that it is one of the legacy issues which the core investor that took over Transcorp in 2011 inherited, and has been taking steps to resolve.
However, under the terms of the announced settlement, both parties agreed to forgo their respective claims against each other and discontinue pending lawsuits and arbitration in relation to their claims. In addition, Transcorp will pay a total sum of $5.5m over a period of thirteen months to Efora.
What they are saying
Commenting on the development, President/CEO of Transcorp, Owen Omogiafo, said:
“I am glad that the mutual understanding that resulted in our partnership at inception, has brought about this win-win resolution with great potential for future cooperation.
“We see this as a significant development that will pave way for our planned development and optimization of the Oil & Gas asset without legal constraints.
“OPL 281 remains a prolific asset that will contribute substantially to the performance of the company upon completion of its development.”
However, Efora’s CEO, Damain Matroos said:
“I am very happy to have brought this matter to a close during these challenging economic times and this removes one more legacy issue for the Group. The conclusion of this matter and the receipt of these funds would also allow the Group to allocate more time and resources to invest in new initiatives to generate value for our shareholders.”
How this development strengthens Transcorp
One of the underlining strengths of the Transcorp Group is the quality of its assets, and the OPL 281 oil block is a significant part of its portfolio. It recently added to its energy asset mix, a 1000MW power generation plant – Afam Power, making it the leading power producer in Nigeria with a combined installed capacity of 1936MW across its power plants.
FIRS rakes in N4.178 trillion revenue, achieves 98.6% of revenue target
FIRS has raked in the total sum of N4.178 trillion as revenue out of the personal target of N4.239 trillion.
The Federal Inland Revenue Service(FIRS) has raked in the total sum of N4.178 trillion as revenue out of the personal target of N4.239 trillion – 98.6% of the revenue goal for the year.
This is according to a tweet by an aide to President Buhari, Lauretta Onochie, via her verified Twitter handle, as seen by Nairametrics.
Executive Chairman, FIRS, Muhammad Mamman Nami says the agency has raked in ₦4.178T revenue out of d ₦4.239T target it set for itself -News
— Lauretta Onochie (@Laurestar) November 24, 2020
Commenting on the recent development, Lauretta Onochie said: “Executive Chairman, FIRS, Muhammad Mamman Nami says the agency has raked in ₦4.178T revenue out of the ₦4.239T target it set for itself -News.
“Meanwhile, @MBuhari exempted those on minimum wages & those who run small businesses from paying tax. That’s more money in their pockets.”
Why it matters
Following the instability in the oil market and the recession that the country has found itself in, due to the impact of the COVID-19 pandemic, it is pertinent to explore other alternative sources of income, like taxation. This sort of news is also a cheering one, especially as it is in line with the present administration’s goal of creating viable alternative sources of revenue for the country.
What this means
With some weeks to go before the year ends, the result so far indicates that the agency has been proactive and worked assiduously well to achieve its objective. Attaining 98.6% of its target is no mere feat.
FG to buy only locally assembled vehicles for its use
The FG has disclosed plans to buy only locally assembled cars rather than imported foreign ones.
The Federal Government has announced plans to buy only locally assembled cars and discontinue the purchase of imported foreign ones for its use, as part of its bid to promote its policy on the local auto industry.
According to a report by Punch, this was disclosed by President Muhammadu Buhari in a speech delivered by Vice President Yemi Osinbajo, on Monday, November 23, 2020, at the opening session of the 26th Nigerian Economic Summit Group (NESG) Conference themed: “Building Partnerships for Resilience”
Osinbajo also explained that the Federal Government would buy locally assembled cars rather than imported foreign ones.
In his response on the issue of import duties which was raised at the summit during his presentation, the Vice President explained that the reduction of import duty on vehicles would help reduce the cost of transportation.
Osinbajo said, “The point of the reduction in levies on motor vehicles, commercial vehicles for transportation is to reduce the cost of transportation by reducing the cost of vehicles.
“With subsidy removal and the increase in fuel price and the pass-through to food prices, transportation costs had to be reduced. Now the automotive policy is directed at localizing the production of vehicles.
“So, the logic was to increase the duty and levies, so that local production becomes more competitive. But the annual demand for vehicles is about 720,000 vehicles per year. Actual local production is 14,000 vehicles a year.”
Osinbajo pointed out that the country’s local production capacity is grossly inadequate to meet serious national needs and this would ultimately lead to higher prices of vehicles and more pressure on other sectors of the economy that depends on transportation.
It can be recalled that in one of her outings, the Minister for Finance, Budget and National Planning, Zainab Ahmed, revealed that the major cause of the increase in inflation rate in the country is increased transportation costs.
Osinbajo, however, stated that the government was not giving up on the local auto industry.
“Two important things to note, the first is that we still have a relatively high duty at 35 per cent; So, there is still a disincentive for importation,” he said.
He added that the government was also promoting a policy of buying only locally manufactured cars. “The introduction of a new automotive policy in 2013, which is currently up for review, was geared towards discouraging the importation of wholly assembled automobiles and encouraging local production. It specifically allows local assembly plants to import completely knocked down vehicles at 0% import duty and semi-knocked down vehicles at 5% import duty, while importers will pay 70% on new and fairly used vehicles.”
Beneficiaries of TraderMoni, others advised to repay their loans to get higher loans
Beneficiaries of GEEP have been advised to repay their loan to enable them get a higher loan and access to other products.
Beneficiaries of TraderMoni, FarmerMoni, MarketMoni under the Government Enterprise and Empowerment Programme (GEEP) have been urged to repay their loans in order to enable them to get a higher loan and to have access to other GEEP products.
The disclosure was revealed through a verified tweet by the government agency, as seen by Nairametrics. The call is also sequel to concerns over the repayment of the empowerment funds as stipulated in the terms and condition of disbursement
— GEEP (MarketMoni, TraderMoni, FarmerMoni) (@geep_ng) November 24, 2020
What they are saying
In response to the concerns and as a way of encouraging beneficiaries to comply, the Government Enterprise and Empowerment Programme (GEEP) through its verified tweet said: “Beneficiaries are advised to repay their loan to enable them to get a higher loan, and to have access to other GEEP products.”
How to repay the loan: The agency outlined practical steps for the repayment of these loans, which include;
Step 1: To repay the loans, beneficiaries were urged to walk into any of the listed banks; GTB, UBA, Ecobank, Union Bank, Stanbic, Sterling, Wema, Fidelity, Heritage, Jaiz.
Step 2: Beneficiaries are instructed to report to any of the aforementioned banks, telling them that you would like to pay your ‘’BOI-GEEP’’ loan on PayDirect.
Step 3: Give them your phone number and the amount that you would like to pay.
What you should know
The Government Enterprise and Empowerment Programme (GEEP) is an initiative of the Federal Government of Nigeria, and Africa’s largest microcredit scheme, 100% digitized. One of its products is the BOI-GEEP loan scheme, a Social Intervention Programme (SIP) of the Federal Government of Nigeria, executed by the Bank of Industry (BOI), a parastatal of the Federal Ministry of Industry, Trade and Investment. The interest-free loans range between N10,000 and N100,000 for owners of microenterprises.
The BOI-GEEP scheme extends to the MarketMoni, FarmerMoni, and TraderMoni.