Liabilities
NNPC renews OML 118 with Shell, Total, Exxon, Eni
The Nigerian National Petroleum Corp renewed Oil Mining Lease 118 with the local subsidiaries of Shell, Total, Exxon and Eni for another 20 years, the West African country’s state oil firm said in a statement on Tuesday. The deal signals the end of “long-standing disputes over the interpretation of the fiscal terms of the production-sharing contracts” between the investors in the field, the statement said. The Nigerian government will immediately recognise revenues of $780 million from the signing of the agreement, “while it would also free the parties from over $9 billion in contingent liabilities,” the statement said. The deal was signed between NNPC, Shell Nigeria Exploration and Production Company, Total Exploration and Production Nigeria Limited, Esso Exploration and Production Nigeri...
Senate summons insurance firms over failure to remit N17.4 billion pension fund
The Senate Public Accounts Committee, on Monday, summoned NICON Insurance Plc, AIICO Insurance and other insurance companies over alleged failure to remit N17.4 billion fund to Pension Transitional Arrangement Directorate (PTAD). The Executive Secretary of PTAD, Dr Chioma Ejikeme, had told the panel that PTAD took over the assets and liabilities of defunct pension offices without a formal handing over. She said, “On taking over, the Directorate wrote all underwriters to make returns and remit whatever amount is in their custody into a CBN dedicated account. Some of the underwriters responded to the request while some did not. “The bank certificate of balances, accounting statements, 3 years financial statements and policy files requested by the Federal Auditor were not handed over to PTAD ...
Gombe to pay retirees outstanding gratuity, releases N775 million
Gombe State government is set to commence the payment of another tranche of outstanding gratuity to retired civil servants in the state. A statement by director-general, media and public affairs, to the state government, Ismaila Misili, noted that this followed the release of N775 million by Governor Muhammadu Inuwa Yahaya for the payment of the retirees’ benefits. He said sequel to the governor’s directives, the committee set up by the governor to verify and ascertain the correctness of outstanding gratuity owed state retirees has concluded arrangements to commence the payment and therefore requests retired state civil servants from January to December 2015, to come forward for verification and collection of their entitlements. “The exercise, according to the chairman of the committee and...
Nigerian government borrows over N2 trillion from bond investors in 2020
Leveraging on excess liquidity that persisted in the banking system and the near zero yields on treasury bills (TBs), the Federal Government, through the Debt Management Office (DMO), raised N2.1 trillion from investors in its monthly bond issuance programme in 2020. This represents 33 percent, year-on-year, (y/y) increase when compared with the N1.58 trillion raised by the DMO in 2019. The N2.1 trillion raised in 2020 also represents 31 percent more than the N1.6 trillion funding target for the DMO under the Revised 2020 Budget. Meanwhile, the monthly bond auctions conducted by the DMO in 2020 recorded 275 percent oversubscription, reflecting scramble for the high yielding FGN bonds by investors. Newsmen report on monthly bond auction results show that the DMO offered N1.825 trillion wort...
Norwegian Air furloughs staff, pleads for help to survive in 2021
Norwegian Air’s cash crisis could force the debt-laden budget airline to halt operations early next year, the company warned as it issued another plea for rescue funding after reporting quarterly results on Tuesday. The rapid expansion of the pioneer in low-fare transatlantic flights has left it with heavy debts and problems that have been compounded by the COVID-19 pandemic. It is now serving domestic routes only, with just six of its 140 aircraft flying. “Norwegian is dependent on additional working capital in order to continue operating through the first quarter of 2021 and beyond,” the carrier said. The company held cash and cash equivalents of 3.4 billion kroner ($380m) at the end of September, down from 4.98 billion kroner ($550m) three months earlier. Its latest plea comes after Nor...
CNPP urges President Buhari to sack minister, spokesperson
The Conference of Nigeria Political Parties (CNPP) has urged President Muhammadu Buhari to sack the Information Minister, Lai Mohammed and the presidential spokesperson, Garba Shehu. CNPP accused the duo of continuously misinforming Nigerians and turning the country into a laughing stock. Secretary-General, CNPP, Willy Ezugwu, made the call in a statement on Sunday in reaction to the duo’s comments on Transparency International Corruption Perceptions Index report. Ezugwu described Mohammed and Shehu as major liabilities that have contributed to the poor image of the All Progressives Congress (APC) government. He noted that the Buhari administration would have been perceived in a better light without the two. “To most Nigerians, the Minister of Information represents a face of misinformatio...