BusinessDay 26 Feb 2018

Monday 26 February 2018 C002D5556 BUSINESS DAY 21
COMPANIES & MARKETS
Business Event
L-R: Chiedu Osakwe, representing the vice president; Abdullahi Mahmoud, former director, FBN
Holdings Plc; Chidi Anya, director, FBN Holdings Plc; UK Eke, GMD, FBN Holdings Plc; Mallam
Bello Maccido, chairman FBNQuest Merchant Bank, and Abimbola Ogunbanjo, president, Council of
Nigeria Stock Exchange, at the Corporate Governance Rating System Certification Ceremony 2018
L-R: Onome Umuze, relationship manager, corporate banking division, First City Monument Bank
(FCMB); Elizabeth Ajibola, managing director, MT Olive Nigeria Limited; Mfon Ukpanah, manager
distributive trade, FCMB, and Olusegun Oyewole, relationship manager, corporate banking division,
FCMB, during the Dangote Sugar Refinery Plc Customer & Bankers Forum in Lagos.
PENGASSAN proffers solutions to
Nigeria’s lingering fuel crisis
JOSHUA BASSEY
Petroleum and Natural
Gas Senior Staff Association
of Nigeria
(PENGASSAN) has
listed total rehabilitation
of the refineries, fuel depots
and all oil/gas infrastructure as
the solution to the lingering fuel
crisis in the country.
The union particularly expressed
concern about the attendant
man-hours being lost by
Nigerians queuing up at station
stations across the country and
challenged the Federal Government
to rise to the task of bringing
an end to what it described
as “an embarrassing situation”.
According to PENGASSAN,
it is time for the government to
involve the Original Equipment
Manufacturers (OEM) in the
rehabilitation and repair of the
four refineries.
“Our refineries are due for a
major expansion and ‘debottlenecking’,
development of new
strategies in ensuring adequate
and sustainable crude supply
to the refineries. Government
should fast-track processes that
will encourage private sector
involvement in local refining,”
said Francis Johnson, president
of PENGASSAN, who led
other unionists to talk with the
Petroleum Products Pricing
Regulatory Agency (PPPRA)
and Petroleum and Pipelines
marketing Company (PPMC).
Addressing the managements
of the agencies and some
legislators during the visits,
Johnson, however, praised their
roles in ensuring that Nigerians
were protected from feeling the
pangs of the vagaries of global
price regime of petroleum products,
and prevented collusion
and restrictive trade practices
harmful in the sector.
Johnson said, “We want sustainable
steps to be taken to end
the persistent fuel crisis that has
inflicted undue hardship on
Nigerians. Let me reinstate our
call for increase local refining
by ensuring that the nation’s
refineries work at maximum
capacity.
“We are equally calling on
the Federal Government to
rehabilitate and upgrade all depots
in the country, while there
is need to carry out an overhaul
of all pipeline networks to ease
distribution and supply of petroleum
products.”
The union also advised the
government to address the issue
of surrounding the integrity
of pipelines by repairing and
replacing damaged pipelines
to enhance supply of crudes to
refineries and export terminals
as well as distribution of refined
products to all the depots.
“We have to reinstate that
unless there is increase in the
government’s commitment
not only to maintain but also to
rehabilitate and repair as well
as replace ageing and ruptured
pipelines, there will continue
to be challenges with the distribution
and supply of petroleum
products to all parts of the
country.
“This will also negatively
impact on local refining due
to inadequate supply of crude
through the pipelines to the
refineries. The dream of gas
to power, and domestic and
industrial gas development
policies of the Government will
be unrealised.
“The NNPC and security
agencies should ensure security
of lives of staff of PPMC/NPSC/
SML in oil and gas installations,
as they are always at the frontline
of repairing damaged pipelines
and protect pipelines from
being vandalised. There should
be improved surveillance with
the use of modern technology,
adequate implementation of
pipeline right of ways and location
of security agencies’ offices
in “black spots” along pipelines,”
Johnson said.
VFD Group records 175%
oversubscription on Debt Note offer
L-R: Olayide Bamidele, chairman, Association of Senior Civil Servant of Nigerian; Fiyinfoluwa
Adenike Ogunbanke, permanent secretary, public service office; Olufunmilayo Balogun, permanent
secretary, office of finance; Folashade Adesoye, head of service, Lagos State Government, and
Dimeji Olona, general manager, life assurance, LASACO Plc, representing the GM LASACO, during
the presentation of assurance death benefit to beneficiaries of deceased public servants in Lagos.
L-R: Jean Phillipe Torres, managing director, Total Nigeria Plc Jay Jay Okocha, brand ambassador,
Total Nigeria Plc; Umar Mohammed, winner of Total Lubricants Text & Win Promo; Stanislas
Mittelman, chairman, Total Nigeria Plc, and Adewole Adesua, general manager, sales and
marketing, Total Nigeria Plc, at the award ceremony of brand new car of Total Lubricants Text &
Win Promo to the winner in Lagos.
KELECHI EWUZIE
VFD Group, a financial
service focused
investment group
based in Lagos has
recorded a 175% oversubscription
on its Debt Note product
offer.
According to the group,
it issued fixed rate unsubordinated
secured Debt Notes
of N1m only per note to sophisticated
individual and
corporate investors. The offer,
designed to raise N300m in
one week, closed on February
16 at N525m representing a
175% oversubscription.
Adenrele Omolara, the
Head of sales at VFD Group,
said the group thoroughly
researched the investment
market and discovered the
need for a retail-focused, high
yield and tradeable financial
instrument promoted and
issued by a company with an
impeccable reputation.
According to her, “The
excitement exhibited by investors
towards the offer was
an indication of the Group’s
understanding of the market’s
needs”.
The Debt Notes are set
at an interest rate of 19% per
annum with a one-year tenor.
They are backed by the issuer’s
equity portfolio held by
United Capital Trustees, thus
giving the Debt Notes a 1:2
cover ratio.
Nonso Okpala, Group
Managing Director (GMD)
stated “VFD Group’s Debt
Note affords retail investors
an opportunity to earn a minimum
interest of 19% with
prospect of an enhanced yield
as a result of the tradability of
this financial instrument.”
Based on the product’s
term sheet, Anchoria Asset
Management (AAM), will provide
an Over the Counter
(OTC) platform for the purpose
of trading these notes.
There are also plans to list the
Debt Notes on FMDQ as this
is an innovative pilot scheme
aimed at establishing an active
OTC market for Debt Notes.
Okpala further said, “You
can always count on VFD
Group to provide leadership
in product and service innovation
in the financial sector.