What Nigerian Companies Were Up to Last Week

Roundup of Company News from Nigeria for the week ended March 18, 2017.

1. Etisalat was easily the most intriguing story this week. On Sunday, the CBN and NCC called a crisis resolution meeting between the banks and Etisalat. Following the meeting, Etisalat’s creditors agreed to take receivership off the table. But the terms of the debt still have to be renegotiated.

2. A few banks declared their exposure to Etisalat, Fidelity Bank has exposure of around N17.5 billion ($56 million) to Etisalat Nigeria, the Nigerian lender’s investor relation’s team said on Thursday.

3. GT Bank confirmed that it has $138 million exposure to Etisalat or N42 billion. On Wednesday. GT’s chief executive, Segun Agbaje said Etisalat’s loan would be restructured.

4. Banks are opposed to converting the dollar part of Etisalat Nigeria loan to naira. According to United Capital Data, the dollar part of the loan in the sector is about 65%, which is about $235 million.

5. Segun Agbaje also announced that GT Bank would not refinance its Eurobond due next year because it does not see opportunities to grow its dollar loan book. Due to currency devaluation, the bank expects naira loans to grow 10%, down from 15.8% last year.

6. Malabu Oil Scandal seems here to stay a long time. Things got further complicated on Sunday when the former Attorney General of the Federation Mohammed Adoke wrote an open letter titled ‘Settlement of dispute over ownership/operation of OPL 245, between the Federal Government of Nigeria, Shell Nigeria Ultra Deep and Malabu Oil and Gas Limited.’ to his successor, Mr. Abubakar Malami. In the letter, Adoke maintains that the deal was sanctioned by three successive Presidents – Olusegun Obasanjo, the late Umaru Yar’Adua and Dr. Goodluck Jonathan – so how can it be illegal he asks? He also asked that if it was so illegal, why have they not distanced themselves from the deal. Mr. Adoke is currently in embroiled in an open court case against the EFCC, where he has been accused of his role in the fraud case.

7. In case you ever wanted to know the Nigeria’s top employers, Jobberman’s 2016 Best 100 Companies to Work For Survey, has rated General Electric, Airtel and Ericsson as the top three companies to work for in Nigeria. The banking sector locked down three spots in the top 10 for the first time, with Guaranty Trust Bank Plc., First Bank of Nigeria Limited and Union Bank Plc. taking the sixth, seventh and ninth spots, respectively compared to 56th, not on the list, and 33rd positions, respectively in the previous year. However, from its number one spot in 2015, Konga dropped to number 10 in 2016.

8. INTELS acquired the Liebherr crane, which is worth N1.83 billion ($6 million), also thought to be the largest in Africa. Reputed to be one of the largest ports handling equipment in the world, the crane weighs 600-tonne. According to the Head of Administration and General Services Chibuisi Onyebueke, the crane sits on 104 tyres, and is capable of lifting cargoes as heavy as 208 tons with a 17-metre boom outreach.

9. The Accident Investigation Bureau (AIB) released its report on the 2012 Dana Crash on Monday. The crash was as a result of on double engine failure, as well as the failure of the pilot to take the appropriate decision to land on the nearest airfield. AIB Commissioner Mr. Akin Olateru said investigators found that the aircraft’s engine number one lost power 17 minutes into the flight from Abuja, and thereafter on final approach, the second engine also lost power. The aircraft and failed to respond to throttle movement on demand for increased power to sustain the aircraft in its flight configuration. The Dana Boeing MD-83 aircraft, with registration 5N-RAM, on its way to Lagos from Abuja, had crashed into some houses at Iju-Ishaga (Lagos), killing all 153 people on board and six others on the ground.

10. Nigeria Liquefied Natural Gas (NLNG) plans a $25 investment to reduce gas flaring and air pollution in the Niger Delta, according to internal NLNG documents seen by New Telegraph reporters. The plan is to expand NLNG’s liquefaction and purification facilities – which currently run on 6 trains. To achieve this, NLNG is building two additional trains (7 and 8) to add to their existing trains, it would cost $25 billion to build the new trains. The $25 billion investment would be made based on shareholding percent – NNPC 49%, Shell Gas 25.6%, Total LNG Nigeria Limited 15%, and Eni – 10.4%.

11. NNPC had quite a scandalous week. First, Nigeria Extractive Industries Transparency Initiative (NEITI) said that NNPC owed an accumulated debt (2000 – 2014) of $15.8 billion to the Federation Account. The money in question was given to the NNPC by the NLNG. The costly transaction process involved the NLNG paying its dividend to the NNPC, who was then to pay the money into the Federation Account. But as with all things, NNPC failed to do so, instead used its money to run its operations.

12. A NAPIMS’s 2016 budget performance presentation to the senate committee on upstream petroleum, NNPC was reported to have spent $9 million on staff transfers and $2 million on vehicles maintenance. However, NNPC denied these claims. It released a statement on Tuesday, saying the money in question “consisted of appropriated items on pension fund, retirement benefit, and staff transfers/redeployment.It also said that the $2million allegedly spent on vehicles maintenance, comprised budget items, which included light vehicles maintenance, operation, and fuelling.

13. Capital Oil, MRS, and NNPC. Two indigenous downstream petroleum firms and the NNPC are accused of illegal oil transactions. The issue is that about 130 million litres of petrol imported by the NNPC downstream (worth $9 million), is illegally stored in two depots, one belonging to Capital Oil and the other MRS. Already, an investigation committee set up by the NNPC Retail, a downstream subsidiary of the NNPC, has recommended the sack of three officials, whose actions or inactions may have led to the fraud.

14. GT Bank announced that the second edition of its Food and Drink fair is to take place on 1st of May 2017. The 2-day event will treat attendees to enthralling gastronomic tours across a wide variety of exciting cuisines and delicacies while offering small businesses in the Nigerian food industry a free and vibrant platform to connect with a wider segment of their target markets as well as experts in their business fields. The 2016 debut of the consumer-focused event had over 90 exhibitors from the food sector and attracted over 25,000 guests over the 2-day period

15. Logistics company, INTELS Nigeria Limited announced last week that it has acquired a 600-tonne Liebherr crane worth $6 million (about N1.83 billion). The crane which has been deployed, is reputed to be one of the largest port handling equipment in the world and can handle loads of up to 208 tonnes. By the way, a tonne equals 1000 kilograms.

16. SystemSpecs, the owners of the Remita (software used for facilitation of the TSA) revealed last week that volume of transaction on its networks grew to $30 billion in 2016. That’s equivalent of about a third of Nigeria’s GDP. The company also revealed last week that it has given financial support of N3 million to three technology startups. Each of the companies received N1 million to accelerate their venture.

17. Remember the NLNG pipeline that blew up some weeks back. Well, they claimed the facility belongs to a third party but also houses their own pipeline. They revealed that work was ongoing to restore it and that it could be back on stream as early as this week.

18. Work seems to be ongoing at Dangote Refineries. Last week Man Diesel and Turbo announced that it signed a deal with Dangote Group to deliver two compressor trains to Dangote Oil Refining Company. They did not reveal the cost of the refinery only saying that it was in double-digit million-dollar order volume. The highly efficient machinery trains consist of an axial compressor driven by a steam turbine with about 30 MW power. The company also revealed that the trains will come into operation for the refinery process of Fluid Catalytic Cracking (FCC), thereby supporting the production of fuel. It will be ready in 2018.

19. Guinness Nigeria Plc confirmed last week that it would be raising N39.7 billion in new equity funds from shareholders. Equity will be raised via a rights issue as they will be offering 684.495 million ordinary shares of 50 kobo each to shareholders at a discounted (to market value as at last week) price of N58 per share. The rights’ shares will be pre-allotted on the basis of five new ordinary shares for every 11 ordinary shares held as at March 15, 2017. The rights’ issue price of N58 per share represents a discount of 17 per cent from Guinness Nigeria’s last traded price of N70 per share yesterday at the Nigerian Stock Exchange (NSE). Guinness needs the money to repay its debt which is currently valued at about N33 billion. It’s parent company Diageo owns about N9 billion of that debt. Diageo’s share of the company could rise by 8% by the time the equity is raised. It currently owns about 55% equity in Guinness and planned to increase it to 75% last year when the share price was still N175.

20. Rumours that Air Peace is owned by the immediate past first lady of Nigeria, Patience Jonathan (AKA Mama Peace) as doused last week. Chairman of Air Peace, Chief Allen Onyema, dismissed insinuations that a former First Lady had an interest in the carrier.Air Peace is arguable one of the best local airlines in Nigeria. The Chairman was awarded “Aviation Man of the Year 2016” by ATQnews and Akwaaba African Travel Market held in Port Harcourt.