24 Jan

Daily Watch – Oando aims to make peace with its past, More effort to reconcile FAAN, Bi-Courtney

  • The NNPC has announced a plan to build more depots across the country. The company’s GMD, Maikanti Baru said the addition to the corporation’s existing 23 depots would ease products supply and distribution. Baru charged members of the board to expand the company’s market share of the downstream sector from 13 to 30 percent, adding that building more depots was more feasible than acquiring dormant ones. Baru said the company would venture into lubricants production as well as marine and industrial services to boost its revenue profile in line with the corporation’s vision to become an integrated oil company.
  • The Infrastructure Concession Regulatory Commission has initiated a process to resolve the concession problem between the Federal Airports Authority of Nigeria and Bi-Courtney Aviation Services, operators of the Murtala Muhammed Airport Terminal Two, Lagos. The ICRC’s Acting Director-General, Chidi Izuwah, during a monitoring visit to the MMA2 and the hotel and conference centre, said the commission was engaging the Minister of State for Aviation, Senator Hadi Sirika, on the challenges and believed that they would be resolved soon. The MMA2 was awarded to BASL in 2003 as a public-private partnership project on Build, Operate and Transfer basis, but has since been enmeshed in a legal battle following disagreements between both parties on aspects of the agreement, including the tenure.
  • The CBN has announced the injection of $210 million into the interbank foreign exchange market, extending efforts to boost liquidity and alleviate dollar shortages. The bank said it had released $100 million earmarked for the wholesale market, $55 million for small businesses and individuals, and $55 million for certain dollar expenses such as school fees and medical bills. The CBN said it: “will continue to manage the forex with a view to reducing the country’s import bills and halting accretion to its foreign reserves.”
  • Oando said it had settled a squabble with a key shareholder and was working on resolving remaining shareholder disputes and getting a suspension of its shares lifted. The company said it has addressed issues raised by Dahiru Mangal, ending a drawn-out conflict, and would consider appointing one of his representatives to its board. Mangal, who owns more than 10 percent of Oando’s shares, petitioned the SEC last year, alleging financial mismanagement at the firm. The SEC ordered a forensic audit into the oil company’s shareholding structure, citing concerns about possible insider trading. The conflict led to the suspension of Oando’s shares on the Lagos and Johannesburg stock exchanges. They have been suspended at ₦5.99 each for more than three months. Mangal said that after receiving clarifications from Oando’s management, he had withdrawn his petition to the SEC. Ansbury, an investment vehicle with an indirect shareholding in Oando, had also filed a petition with the SEC alleging abuse of corporate governance and financial mismanagement. Oando said the company was now focusing on settling remaining disputes. Reports last year said the petitions centred around the ownership of some Oando shares bought through an investment vehicle at the time the company bought ConocoPhillips’ Nigerian business for $1.65 billion in 2014.
  • The FIRS has announced that it collected a total of ₦4.03 trillion in the 2017 fiscal period. This represents 82.38 percent of the government’s ₦4.89 trillion target for the year. The 2017 figure was ₦720 billion more than the 2016 total collection figure of ₦3.3 trillion. An analysis of the collection performance indicated that taxes from non-oil sources accounted for 63 percent, while oil tax accounted for 37 percent of the total collection. Stamp duties recorded the biggest increase in performance with 94 percent during the 2017 fiscal period. Oil revenue generated was ₦1.52 trillion. About 60 to 70 percent of the FIRS collection came from Lagos.