22 Jun

Daily Watch – Shell picks $3.6 billion fine over Bonga spill, Ebonylife to launch VOD service

  • Nigeria’s total debt rose slightly by 4.5 per cent to ₦22.7 trillion in Q1 2018, the DMO has said. In a statement issued on its website, it said the increase was largely due to a growth in the domestic debts of states and the FCT. The proceeds from the $2.5 billion Euro bond issued in February 2018 which were used to redeem maturing domestic debt also led to the increase in total public debt stock. The DMO also said a total of ₦643.6 billion was spent on servicing the country’s domestic debt.
  • Nigeria has rolled over its crude for oil products contracts by six months until the end of the year, the head of the NNPC told Reuters on Thursday. “We have rolled it over until the end of December,” Maikanti Baru said on the sidelines of the OPEC seminar in Vienna. The contracts, dubbed direct sale, direct purchase agreements (DSDP), were due to expire at the end of June. OPEC appears poised to raise oil output, with Iran softening its opposition to an increase and Saudi Arabia warning of supply shortages and price rallies if production remained stable.
  • Shell Nigeria is liable to a $3.6 billion fine levied on it by the National Oil Spill Detection and Response Agency over a 2011 crude oil spill offshore on Nigeria’s coastline, a federal court has ruled. Mojisola Olatoregun, the federal judge, held that NOSDRA’s power to impose penalties does not violate the provisions of the Nigerian Constitution, Premium Times reports citing a 24 May court judgement it recently obtained. The judgement pertains to a December 2011 spill within Shell’s OML 118 situated 120 kilometres off Nigeria’s coast, where the company’s export line linking their FPSO vessel at the Bonga deep offshore ruptured and spewed about 40,000 barrels (6.4 million litres) of crude oil into the sea, according to NOSDRA.
  • The management of the Ibadan DisCo says it has made all outstanding payments on a ₦6 billion loan that instigated the suspension of its directors by the NERC. In a statement, Seye Alayande, the company’s secretary, said the news of the suspension by the regulator was received with shock and disbelief. According to him, as of 14 June, the Integrated Energy Distribution and Marketing Group had made all outstanding payment due as at May 2018, in respect of its monthly ₦150 million commitment to the loan. The NERC had said it suspended the directors of the electricity distribution company over its “inability to retrieve a ₦6 billion inappropriate loan” given to IEDMG, its core investor. Alayande described the decision as unwarranted and lacking in judgement since the directors “demonstrated willingness and commitment” to fulfilling IBEDC’s financial obligations.
  • EbonyLife TV says it will introduce EbonyLife ON, its new video-on-demand service to an international audience from 1 July. Initially targeted at viewers in the African diaspora, the VOD service will be made available “for anyone who wants access to authentic, well-made programmes that highlight positive and dynamic stories from Africa, regardless of their location,” it said in a statement. The new launch comes on the heels of a release of new programming from the entertainment broadcaster, including a new EbonyLife original series – ‘Castle & Castle,’ Nigeria’s first legal drama starring Nollywood heavyweights Richard Mofe-Damijo and Dakore Egbuson-Akande. Monthly subscriptions will start from as little as ₦500 on its Android app and ₦700 for Apple consumers in Nigeria, £2.24 in the UK and $2.99 in the US.