44 BUSINESS DAY C002D5556 NEWS NNPC, contractors sign agreement for $2.8bn Ajaokuta-Kano gas pipeline project OLUSOLA BELLO & HARRISON EDEH The construction of the over $2.8 billion Ajaokuta - Kaduna - Kano gas pipeline, expected to supply gas to the proposed 1,000 megawatts Abuja power plants and other users, is expected to take off any moment from now. This is because the Nigerian National Petroleum Corporation (NNPC) has signed agreement with two consortia for the Engineering, Procurement and Construction (EPC), and commissioning of the project under a 100 percent contractor financing model for Lots 1&3 of the 40inch x 614km project. One of the consortia is a mixture of indigenous and foreign contractors. Under the terms of contract, Lot 1 with total length of 40inch x 200km stretching from Ajaokuta to Abuja Terminal Gas Station was awarded to the OilServe/ Oando Consortium. While Lot 3 that runs from Kaduna Terminal Gas Station (TGS) to Kano TGS with total length of 40inch x 221km was awarded to the Brentex/China Petroleum Pipeline Bureau (CPP) Consortium. It is envisaged that contract agreement for Lot 2, which covers 40inch x 193km stretching from Abuja to Kaduna, will be executed in the weeks ahead. Under the terms of contract, Lot 1 with total length of 40inch x 200km stretching from Ajaokuta to Abuja Terminal Gas Station was awarded to the OilServe/ Oando Consortium. Maikanti Baru, group managing director of the NNPC, while speaking at the signing ceremony, said the AKK Gas pipeline was a section of Trans-Nigerian Gas Pipeline under the gas infrastructure blueprint designed to enable the industrialisation of the Eastern and Northern parts of Nigeria. The project will also enable connectivity between the East, West and North, which is currently nonexistent. The AKK section has suffered setbacks due to scarce resources for government to fully finance the project, hence the adoption of the contractor financing model, he said. “The two other pipelines, the OB3 & ELPs 2 in the Gas Master Plan blueprint, are currently at various stages of completion and are being financed directly by the Federal Government,’’ he said In his remarks on behalf of the Oilserve/Oando Consortium, Emeka Okwuosa, chairman of Oilserve Limited, expressed gratitude to the Federal Government and the NNPC for providing the opportunities for indigenous companies to flourish in the Nigerian oil and gas industry. According to Okwuosa, the decision to award Lot 1 of the AKK project to an indigenous consortium speaks volume of government’s resolve to grow and encourage the attainment of the ideals of local content philosophy. Abubakar Nuhu, vice chairman of Brentex Nigeria Limited, said the Brentex-CPP Consortium would rely mainly on the acclaimed pedigree and global expertise of CPP in pipeline construction to deliver a world-class project. It would be recalled that the process for the award of the AKK project took off in July 2013, with the advertisement for tenders published by the NNPC in major national newspapers. After a painstaking technical and commercial evaluation process, the Federal Executive Council (FEC), at its 46th meeting on December 13, 2017, approved the contract valued at over $2.8 billion. Stakeholders task FG to tackle corruption in immigration service ANTHONIA OBOKOH A legal rights group has called on the Federal Government to tackle corruption in Nigeria Immigration Service (NIS) command across the country, saying it will reduce the fraud and pressures from the embassies. This call was made at a press conference convened by Prince Williams- Joel, managing partner, Prince Joel & Associates, and partner at NOVO IN- IZIO LLC, at the unveiling of the firm’s immigration clinic sessions and supplementary services in Lagos. “Tackling the menace of corruption is not an easy task, but it ispossible,even if many feathers have to be ruffled.If our government has a resolute commitment to tackle corruption, Nigeria needs to address growing concerns and dearth of practical knowledge of visa application requirements, practice, procedure and other immigration related matters to visa applicants,” Williams-Joel said. According to Williams- Joel, the immigration clinic is a hub for issues relating to visa, as the firm is worried by the influx of touts who have completely and effectually taken over visa applications and immigration related services from professionals Monday 09 April 2018 The week-on-week foreign exchange turnover declined by 16 percent to $1 billion ($195.3m) from $1.2 billion recorded in the previous week at the investors and exporters forex window. At the Nigerian Autonomous Foreign Exchange (NAFEX) rate opened the week appreciating 17 kobo to N359.83/$1 from N360/$1 at the prior Thursday’s close. By midweek, the rate depreciated to 21 kobo to close at N360.04/$1 and appreciated 3 kobo to N360.01/$1 the subsequent day. However, NAFEX rate appreciated 13 kobo W-o- W to close at N359.87/$1 compared to N360/$1 in the previous week, according to a report by Afrinvest Securities Limited. The CBN continued its weekly interventions of $210 million via the Wholesale SMIS (Secondary Market Intervention Auction). Consequently, rates traded flattish within tight bands during the week. Following the resumption of financial markets after the Easter holidays, the week opened flat on Tuesin Nigeria. In return, they offer poor and abysmal immigration related services to visa applicants with the attendant consequence of perpetual increase in the percentage of numbers of visa denials from foreign embassies, high commissions and consulates. Michael Damiari, immigration attorney and head of chambers, Prince Joel & Associates, speaking on the denial of visa, said it was not a myth that no fewer than 220,000 Nigerians apply for non-immigrant visas every year. “It is proven that several unemployed intended emigrants use touts and miscreants under the guise that they are travel agents to apply for visa for them,” Damiari said. However, Charles Ejiogu, an attorney at law admitted to the New York Bar and Federal District Court, advised Nigerians to always know what visa they want before applying, in relations to advice and assistance, the immigration clinic was open to all citizens to reach out for more knowledge on visa application. The immigration clinic is a strategy and innovation introduced by the firm to address growing concerns and dearth of practical knowledge of visa application requirements, practice, procedure and other immigration related matters. L-R: Oliver Alawuba, executive director, United Bank for Africa (UBA) plc; Emmanuel N. Nnorom, group CEO, Heirs Holdings and celebrant; Florence Nnorom, wife of the celebrant; Tony Elumelu, chairman, Heirs Holdings and UBA plc, and Haruna Jalo-Waziri, MD/ CEO, Central Securities Clearing System (CSCS) plc, at the 60th birthday celebration of Emmanuel Nnorom in Lagos, at the weekend. Experts explore right policies to grow real estate in Nigeria THEODORA KIO-LAWSON In a bid to address challenges militating against the progress of the real estate sector in Nigeria, legal and real estate experts in Nigeria are seeking the right policies to help drive its growth. Speaking at the seventh Detail Business Series in Lagos organised by Detail, Nigeria’s first commercial solicitor firm specialising in non-court room practice, Andrew Nevin, partner and chief economist, PwC, said the real estate was not growing, as it should because of land registry. Navin said, “Land registry has delayed the progress of the real estate sector. It is delaying its investment, which is costly. In Lagos, we need approximately 5 million dwellers and we are not getting them as expected as a result of the land registry.” According to Navin, the right economic policy will go a long way in improving the real estate sector. “At PwC, we are trying to push forward the most suitable economic policy for the real estate and for the country as a whole, because if real estate sector doesn’t work, nothing else works. It should be the biggest employer,” he said. Sonnie Ayere, CEO, Dunn Loren Merrifield, said the real estate had a whole lot of disrupting factors restraining its progress in Nigeria, especially in the area of raising enough fund to secure a house, shopping space and the likes. “In trying to develop, it is important to know how to raise money right. One means foreign countries raise money is through the ‘Crowd funding’ where many people come together to raise money. This practice cannot be visible in Nigeria because the law is out rightly against such practice here. But we are looking for a way around such law so that it can seize being practiced in Nigeria, ”Ayere said. The mortgage terms and agreements are also bottlenecks to eliminate in the sector, he said. He therefore advised people who embark on mortgage skill to rather go for ‘loss of work insurance,’ which to him was more suitable and affordable for those who want to secure and own a house. The ‘loss of work insurance’ covers for a minimum of one year peradventure there are any incidences, he said, adding that in cases where people lose their jobs, it pays the mortgage for 12 months, and sometimes another six months giving them enough time until they secure a new job. Toyin Ajose, associate partner heading Detail’s real estate and construction practice, said this was the seventh detail series but the first time to focus on real estate, adding that the theme, ’Navigating the evolving real estate marketplace – dealing with market disruptors’ was timely and apt. Ajose said, “We try to focus on our practice areas. We look out for what is new and relevant so as to draw attention to that area so that people are positioned to benefit from the changes in the market.” She said the issues that suppress the real estate prompted them to call in experts to speak on them. Forex turnover declines 16% at investors’ window HOPE MOSES-ASHIKE day with the CBN spot rate at N305.65/$1, and this appreciated 5 kobo to N305.60/$1 by midweek, which remained constant throughout the week. The parallel market rate opened flat at N362/$1 and remained unchanged till the end of the week. The total value of open contracts of the Naira settled OTC futures in the FMDQ OTC futures market improved by $57.2 million, representing a 1.8 percent W-o- W growth to $3.3 billion on Friday from $3.2 billion last week close. Nonetheless, the APR-2018 instrument was the most subscribed with a total market value of $660.5 million (contract price: N360.31/$1), while the MAR-2019 was the least subscribed with a total market value of $8.8 million (contract price: N361.96/$1). Analysts Cowry Assets Management Limited and Afrinvest expect rates to continue to trade within tight bands, as the apex bank remains committed to sustaining its foreign exchange interventions in the face of domestic macroeconomic and external sector positives, including the steady accretion to the external reserves.
Monday 09 April 2018 Moyanga joins board of Africa Franchise Centre FRANK UZUEGBUNAM Former chairman of the Franchise Association of South Africa (FASA) and one of Africa’s most notable names in the area of franchising and small enterprise development, Peter Sipho Moyanga, has joined the advisory board of Africa Franchise Centre (AFC). AFC is a private sector-led initiative to increase prosperity and support growing businesses by promoting franchising as a business development model. The Africa-wide initiative was launched in Lagos in November 2017 at a ceremony attended by franchise business leaders and commercial diplomats from US Embassy and many African countries. Moyanga, an expert in the field of franchising, property and business development, is known to have done pioneering work in the development of franchising across Africa, leading workshops and training sessions in partnership with African Development Bank and other development agencies. Moyanga has been involved with McDonalds Corporation in South Africa since 1995, having been one of their first employees when the corporation entered that market. He served as multi-department head, responsible for information and technology department, operations development, field service and franchising. He left corporate life to become an owner operator (franchisee), and currently owns many McDonald’s outlets in South Africa, through his company, Moyanga Family Foods. He is also a director $1bn ECA withdrawal: Senate decries Buhari’s lack of consultation OWEDE AGBAJILEKE,Jos Senate president, Bukola Saraki, has expressed disappointment with President Muhammadu Buhari’s approval of $1 billion from the Excess Crude Account (ECA) to fight the rising spate of insecurity across the country, without recourse to the National Assembly. Saraki also disclosed that lawmakers were unhappy with the Executive arm of government for lack of consultation with the Legislature on the matter. Saraki revealed this on Saturday while declaring open the 2018 Senate Press Corps retreat in Jos, the Plateau State capital. The Senate resumes from Easter break on Tuesday, April 10, and the matter is expected to top agenda upon resumption. Delivering his address, the Senate president disclosed that the lawmakers had equally expressed their disappointment to him that they were not consulted before the President unilaterally apof Moyanga Louw and Associates, a firm of SME and Franchise Development experts. Peter, a Wits Business School graduate of Business Administration (MAP), has been an independent nonexecutive director of Vukile Property Fund Limited since 2004. He is also a non-executive director at Brikor Limited. He is also on the board of Notshi Investments (Pty) Limited and served as board chairman of Medishield Medical Aid Scheme, one of South Africa’s foremost medical aid schemes. He is also a long-serving national director of Reach for a Dream Foundation. Moyanga joins an Advisory Board of AFC, which already has such known names as Brent Omdhal, US commercial counsellor to Nigeria; Anayo Agu, former senior commercial specialist at the US Commercial Service in Nigeria, and now special adviser to Enugu State government on Small and Medium Enterprises and Investment Promotion; Antoine Zimmariah, franchisee for Domino Pizza, and Coldstone Creamery in Nigeria, as well as Pat Utomi, chairman, Centre for Values and Leadership. proved the funds, and called for reform of security architecture in the country. “There is no way the security architecture of this country can work without a strong synergy between the executive and the legislature. When you see certain agencies who by their actions and utterances frustrate the relationship between the two arms, you begin to wonder. “What do we need to do? Do the police need more funding or more powers? Do they need new legislations to strengthen them. These are the issues where the executive and the legislature must work together. “Just few days ago, where the issue of providing funding for the purchase of security equipment. In a good environment, such an issue needed to have been discussed with lawmakers. Already, some senators are angry. They said the executive did not consult them before such a decision was taken. These are the issues we are talking about.” C002D5556 BUSINESS DAY 45 NEWS L-R: Chidi Amuta, keynote speaker; Okey Akpa, MD, SKG Pharma, and Pat Iloba, general manager, sales and marketing, SKG Pharma, during the annual trade partners conference in Lagos, yesterday. Pic by Olawale Amoo Ismai’la Muhammadu Zakari, president, Institute of Chartered Accountants of Nigeria (ICAN) (r); with Wale Mokuolu, chief executive/managing partner, Mokuolu Rubens & Co. Chartered Accountant/special guest, at the ICAN award of accreditation/ recognition certificates to tertiary institutions and tuition center in Lagos, at the weekend. Pic by Olawale Amoo BusinessDay’s agribusiness summit holds April 27 CALEB OJEWALE BusinessDay’s annual Agribusiness and Food Security Summit is set to hold April 27, at the Landmark Event Centre in Lagos, where stakeholders across different value chains will proffer solutions to some of the sector’s pressing concerns. Some of the confirmed specials guest and speakers at this year’s summit include Audu Ogbeh, minster for agriculture and rural development, Godwin Emefiele, governor, Central Bank of Nigeria, and Godwin Obaseki, governor, Edo State. This year’s keynote speaker is Hans-Willem van der Waal, managing director of AgroFair, a company that imports Fairtrade and/ or organic certified bananas, pineapples and other tropical fruits mainly from Cen- NNPC says group financial statements up to date HARRISON EDEH, Abuja Nigerian National Petroleum Corporation (NNPC) says it has completed outstanding audit of the group financial statements from year 2011 to 2016. The audited backlog, the corporation says, has been formally approved by the Board of the corporation in line with extant laws governing the operations of the national oil company. Providing details of the development in an exclusive interview published in Q1 2018 edition of the NNPC Magazine, Isiaka AbdulRazaq, chief financial officer/group executive director, Finance and Accounts of the NNPC, said the delivery of the audited financial statements would help foster better relations tral and South American countries, and distributes all over Europe out of its Rotterdam-based logistics centre. Hans-Willem is also an administrator of ColeACP, the association of importers and exporters of the Africa Caribbean Pacific countries. The Agribusiness summit is themed ‘Evolving actionable models and innovations to make Agribusiness more viable.’ The summit this year will take a pragmatic approach, as focus areas will not be platforms to discuss problems, rather, to advance solutions that will fix germane problems plaguing the country’s agricultural sector. Individuals and organisations (both local and international), that have cognate experience and outstanding success rates in the focus areas, will participate in discourse on solving these problems in Nigeria. The audience will get with stakeholders and further promote transparency and accountability in the corporation. AbdulRazaq, in a statement issued by the corporation on Sunday, said the drive to achieve the clean slate dated back to August 2015, when the current management of the Finance and Accounts Directorate took over the mantle of leadership and inherited a total of 65 unaudited financial statements for NNPC Group Corporate and its subsidiaries, covering 2011 - 2014. “There were, undoubtedly, challenges that led to the backlog which may have been beyond the control of the previous managements. However, the important factor was not to look to the past. We saw an opportunity to learn from the insights shared, and also interact with these entities and other participants at the summit. Focus areas for this year’s summit include Practical Access to Finance; as funding remains a critical issue in Nigeria’s agricultural development, players in different parts of the value chain remain unable to secure funds for expansion and improve productivity. This summit aims to champion purposeful discourse on innovative, effective funding models that will offer a definitive solution to this problem in Nigeria. The second focus area will attempt to solve the problem of Supply Chain Integration. Even when funding is available, the uncertainties of accessing a market in good time and at the right price are a very discouraging element for to challenge the problem and resolved to clear the arrears in the shortest possible time,’’ the NNPC CFO said in the statement. The statement pointed out that the NNPC management constituted a Project Steering Committee (PSC) under the chairmanship of AbdulRazaq, which met on a weekly basis with the auditors and all relevant stakeholders to identify and isolate key challenges and give them priority attention. “With this approach, Management achieved the first step of concluding the audit of the 2011 – 2012 financial positions and presented same to the Board in 2016 and in recognition of that modest achievement, the NNPC Board further mandated Manage- agribusiness investment in Nigeria. Post-harvest losses remain of serious concern to producers and other players in the agriculture value chain and needs more strategic efforts to be adequately addressed. This panel will chart a course on making the process from farm to market better streamlined; creating an efficient supply chain system that is based on well-defined marketing mechanisms and pricing. The third focus area is one innovations driving agribusiness development. Technology is increasingly driving agribusiness in many ways, but the possibilities still remain endless. Experts with innovations in funding, seedlings, and mechanisation will offer insights into how different technologies can be used to further advance agricultural development in Nigeria. … embarks on integrity audit of over 5,000km pipeline network ment to clear the remaining outstanding reports for the years 2013 – 2016 and the result today is the delivery and Board approval of the audited Group Financial Statements as at 31 December 2016,’’ he said. Also, in the publication, managing director of the Nigerian Pipeline and Storage Company (NPSC), Luke Anele, revealed plans by the company to embark on comprehensive audit of the over 5,000km of petroleum products and crude oil pipelines under its watch. According to Anele, the project, which has already been approved by the NNPC management, is to be executed by the National Engineering and Technical Company (NETCO), an upstream subsidiary of the NNPC Group.