Posts in category: General Article

Fidelity Bank Plc’s combined N127.1 billion rights and public offer have struck early success as enthusiastic shareholders mobilise to pick their pre-allotted shares and buy more stakes in the Bank.

Shareholders said “they would pick their rights and buy more shares from the public offer in a massive show of support and positioning in the Bank.”

In separate interviews, shareholders said the pricing of the highly discounted rights issue and public offer, the operational growth of the bank over the years, dividend records and capital gains were attractions to buy more stakes in the bank.

“Fidelity Bank is one of the few companies that pay dividends twice a year in the stock market. The bank had delivered an average annual capital gain of more than 100 per cent over the past five years and ranked among the elite stocks with the highest corporate governance rating in the Nigerian stock market,” they said.

Shareholders envisioned that a post-recapitalisation Fidelity Bank would deliver higher returns and continue to be a leading preserver of values for shareholders’ wealth.

Fidelity Bank is offering a rights issue of 3.2 billion ordinary shares of 50 kobo each at N9.25 per share. The bank is also simultaneously offering 10 billion ordinary shares of 50 kobo each to the general investing public at N9.75 per share.

The acceptance and application lists for the rights issue and public offer, which opened on June 20, 2024, are scheduled to close on July 29, 2024. The rights issue has been pre-allotted on the basis of one new ordinary share for every 10 existing ordinary shares held as at the close of business on January 05, 2024.

President, Association for the Advancement of Rights of Nigerian Shareholders (AARNS), Dr Faruk Umar, said the enthusiasms that have greeted the combined rights and public offers suggest a strong possibility of oversubscription for both offers.

Umar said Fidelity Bank has several factors working in its favour including its steep growth, high returns and stable board and management.

“The performance of Fidelity Bank has tremendously increased over the past years. The bank has a very professional board with some of the best independent directorships in the banking industry. The prolific appreciation of the share price is a testimony of the confidence shareholders have in the stock of the company.

“The rights issue’s price is reasonable compared to the dividend paid recently. I am very confident that both the rights and the public offer will be oversubscribed,” Umar said.

National coordinator, Independent Shareholders Association of Nigeria (ISAN), Mr. Moses Igbrude, said Fidelity Bank has consistently shown strong performance and paid dividends over the years while investors have also benefited from price appreciation.

“I believe it is a good investment. As for me, I will take up my rights and equally buy the public offer. I am encouraging investors to take up their rights. The bank is solid and strong with a lot of potential to grow,” Igbrude said.

Chairman, Ibadan Zone Shareholders Association (IBZA), Mr Eric Akinduro, said the combined offer was an opportunity for investors to position for greater returns.

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The Bank of Industry (BoI) and the Jigawa State Government have signed a Memorandum of Understanding (MoU) to create a N6 billion MSME Growth Fund. This notable partnership was marked by the inauguration of BoI’s 33rd state office in Dutse. The loans offered through this fund will be available at single-digit interest rates.

Executive governor of Jigawa State, Mallam Umar Namadi, lauded the MoU as a pivotal step in the state’s economic progress. He emphasised the crucial role of SMEs in driving economic growth, providing youth employment, and reducing poverty. “The state government’s commitment to supporting SMEs through this partnership is evident in the N6 billion growth fund, comprising a N4 billion matching fund and a N2 billion managed fund. The Jigawa State Youth Empowerment/Employment Agency (JISYEEA) will oversee this initiative. This collaboration aligns with our state’s 12-point agenda and President Bola Ahmed Tinubu’s Renewed Hope Agenda. We appreciate BOI’s confidence in Jigawa and their efforts to bring financial access closer to our people,” stated Governor Namadi.

BoI managing director, Dr. Olasupo Olusi, highlighted the significance of the partnership in his welcome address. Represented by the executive director of corporate services, Mr. Usen Effiong, Dr. Olusi praised Governor Namadi’s initiative to establish the N6 billion MSME Growth Fund and his support in setting up BoI’s office in Dutse.

Dr. Olusi also commended Governor Namadi for his leadership and the economic advancements achieved under his administration. He acknowledged the state government’s provision of a purpose-built property and two years’ rent, which facilitated the seamless establishment of the Jigawa State office. He also emphasised the importance of the N4 billion Matching Fund and N2 billion Managed Fund in unlocking the state’s economic potential.

“This collaboration is historic,” Dr. Olusi remarked. “Providing financial support to MSMEs across Jigawa’s 27 local governments will boost the manufacturing sector and support their value chains.

BoI and the Jigawa State Government are each contributing N2 billion for the Matching Fund, with an additional N2 billion from the state for the Managed Fund. These funds will fuel entrepreneurship, support startups, and enable existing businesses to thrive.

We believe in the resilience and potential of Jigawa State’s entrepreneurs.”

The commissioning of the Jigawa State office increases BoI’s physical presence to 33 state offices.

“This establishment is already yielding positive results, with loan approvals for financial interventions of about N2 billion for indigenous companies and another N2.5 billion under review. The Rural Area Program for Investment and Development (RAPID) has 1,621 applications at advanced review stages, targeting businesses in rural areas,” Dr. Olusi noted. In his concluding remarks, the managing director invited all stakeholders to actively engage in the partnership, emphasising the importance of collaboration for the success of the initiative. “Together, we can build a Jigawa State where innovation thrives, businesses flourish, and prosperity knows no bounds.”

The ceremony was attended by prominent figures, including the deputy governor of Jigawa State, Engr. Aminu Usman; the secretary to the state government, Malam Bala Ibrahim, and other senior government officials.

The BoI management was represented by the executive director of Micro, Small, and Medium Enterprises (MSMEs), Mr. Omar Shekarau; chief economist and head of strategy and research, Dr. Rislanudeen Mohammed, and divisional head of MSME North, Mr. Sanusi Gidado.

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…As Nigeria’s oil rig count rises to 34 in June

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has confirmed the successful completion of two of the International Oil Companies (IOCs) divestment of onshore assets in the country’s oil and gas industry, worth billions of dollars.

This is as the country’s oil rig count increased to 34 in June 2024, a significant increase from the previous year.

Nigeria’s rig count rose by 36 per cent year-on-year, up from 25 rigs recorded in June 2023. This marks a steady increase in upstream activities, indicating a renewed confidence in the industry and the country’s ability to attract investment.

NUPRC chief executive, Gbenga Komolafe, announced this yesterday in Abuja during his presentation at the ongoing 23rd Nigeria Oil and Gas Energy Week.

Komolafe said the two deals involve the divestment of Eni NAOC’s interests in Oil Mining Lease (OML) 60 to Oando and the Equinor– Project Odinmin, adding that both deals have been completed and the Signing Ceremony is to be conducted in the coming days.

Equinor is selling its Nigerian business, including its stake in the Agbami oil field, to Nigerian-owned Chappal Energies. The transaction involves Equinor’s subsidiary Equinor Nigeria Energy Company (ENEC) being acquired by Project Odinmin Investments Limited (POIL), a special purpose vehicle owned by Chappal Energies.and Giving updates on the status of the divestment of SPDC – RENAISSANCE, Komolafe said that documents submitted by SPDC are still undergoing due diligence.

Recall that Shell agreed to sell its Nigerian onshore subsidiary, the Shell Petroleum Development Company of Nigeria Limited (SPDC), to Renaissance Consortium for $2.4 billion.

Meanwhile, on the ExxonMobil–Seplat Deal, he said the company has expressed commitment to proceed to apply for Ministerial Consent to NUPRC.

Recall that the ExxonMobil-Seplat deal is about the divestment of ExxonMobil’s 40 per cent  stake in Mobil Producing Nigeria Unlimited (MPNU) to Seplat Energy Plc.

In February 2022, Seplat announced an agreement to acquire ExxonMobil’s 40 per cent stake in MPNU for $1.28 billion.

However, the deal was stalled for over two years as NNPC invoked its right of first refusal and challenged the transaction, citing national interest.

In May 2022, the federal government declined to approve the transaction.

In July 2022, a court issued an injunction prohibiting ExxonMobil from finalising the divestment.

After intervention by President Tinubu, NNPC signed a settlement agreement with ExxonMobil and MPNU to facilitate the divestment to Seplat.

As part of the settlement, NNPC will hold a 70 per cent stake in the resulting joint venture with Seplat as the operator.

The deal allows Seplat to acquire ExxonMobil’s offshore shallow water assets in Nigeria, with NNPC taking a majority stake in the joint venture.

The divestment deals are expected to bring in fresh capital, technology, and expertise, which will help to increase oil production, reduce carbon emissions, and create new opportunities for Nigerians in the industry.

He stated further that the divestment of Exxon Mobil (MPN) to Seplat is inconclusive as no documentation for the transaction was sent to the commission.

The NUPRC Boss told participants that the divestment process needed to be carefully looked into as countries like Lebanon, Canada, Brazil, Australia, New Zealand, and the UK had bad experiences with their divestment process.

He added that the NUPRC has been mandated to protect the interest of Nigeria particularly in terms of investments made in the oil and gas sector.

Komolafe said, “We were able to review examples of countries that were not afraid to divest and had very bad experiences. We looked at an example of Lebanon, Canada, Brazil, Australia, New Zealand, and the UK.

“As a country, and as a regulator, we do not want that to happen for our nation. While we recognize the right of investors to do their best, the security of the national interest must be guaranteed.

“I find it necessary to announce here this afternoon, the status of these four divestments. I’m happy to announce that the Nigerian Agip Oil Company (NAOC) to Ocean and Oil (OANDO), Equinor to Project Odinmim exercise has been completed, and the signing ceremony will be conducted in two days.

“As regards the direction of SPDC to Renaissance, the status is that the regulator has received the documentation and is currently undergoing the necessary due diligence.

“On the MPN – SEPLAT, the regulator, as we speak, is yet to receive the documentation for due diligence.”

Speaking further, Komolafe explained that the NUPRC has proactively put in place the divestment framework that would continue to drive investments into the oil and gas sector in Nigeria.

“The objectives are to ensure that the seller will ensure that the buyer can demonstrate financial capacity and technical capabilities, there are no liquid influences, and the issue of decommission and abandonment will be well situated,” he added.

In his presentation titled “Defining the Outlook for Deep-Water Exploration and Production in Nigeria,” Komolafe also outlined the future plans for deepwater upstream investment in the country.

He emphasised the need for sustained investment in the industry to achieve the country’s oil production targets.

During the panel session, some of the International Oil Companies (IOCs) stressed the need for a stable regulatory framework, improved security, and competitive fiscal terms to attract more investments into the industry.

The successful completion of these divestment deals according to the NUPRC boss is a testament to the commission’s commitment to creating an enabling environment for investment in the oil and gas industry.

The deals are expected to have a positive impact on the country’s economy and contribute to the growth of the industry.

Also speaking on the need to boost Nigeria’s Deep offshore assets, the CCE said, Nigeria’s deep offshore accounts for 43 per cent of the country’s total oil reserve, adding, “our total international oil production, our deep offshore accounts for 30 per cent of our daily production. And of the total world development, the deep offshore contributes 60 per cent  of the entire world.”

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Access Holdings Plc yesterday held a formal signing ceremony as part of the arrangements to raise a total of N351.009 billion by way of a rights issue to existing shareholders.

The Offer is part of the Group’s strategy to enhance its working capital requirements, which includes organic growth funding for its banking and non-banking subsidiaries.

Subject to approval of the Securities and Exchange Commission (SEC), the Acceptance and Application Lists for the rights issue are expected to open on July 8, 2024, and close on August 8, 2024.

The Signing Ceremony with respect to the offer was held in Lagos, this is Access Holdings’ shareholders had at its second Annual General Meeting (AGM), which held on April 19, 2024, unanimously backed its plan to execute a capital raising programme of about $1.5 billion as well as the subset initiative to raise capital through a Rights Issue of ordinary shares to its shareholders.

Under the rights issue, 17.773 billion ordinary shares of N0.50 each at N19.75 per share on the basis of one new ordinary share for every two existing ordinary shares held as of June 7, 2024.

At the signing ceremony, acting managing director/chief executive officer of Access Holdings, Bolaji Agbede, disclosed that “the rights issue is a significant step in delivering our 2023-2027 strategic plan. The additional capital will enable us to maximise emerging opportunities and deliver long-term value to our shareholders.”

Chapel Hill Denham is the lead issuing house to the offer, while Atlas Registrars Limited will serve as registrars through the exercise.

The Joint Issuing Houses are Coronation Merchant Bank, Stanbic IBTC Capital, Vetiva Advisory Services, Greenwich Merchant Bank, FCSL, First Ally Capital, FCMB Capital, Renaissance Capital Africa and Meristem Capital.

Other parties to the offer are Coronation Merchant Bank, Coronation Securities, Chapel Hill Denham Securities Limited, FSDH Capital, Cordros Capital, Cowry Securities, First Integrated Capital Management Limited, Network Capital Limited, CSL Stockbrokers Limited, Compass Investment & Securities Limited, PAC Securities Limited, Dynamic Portfolio, Chartwell Securities Limited, Tiddo Securities Limited, and Futureview Securities Limited.

Established in 2022, Access Holdings Plc consists of the Access Bank Group; Access Pensions; a Payment and Switching Services Company; a Digital Lending Company, and an Insurance Brokerage Company.

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Seeks protection of local industries against economic downturn

President of the Dangote Group, Aliko Dangote, has criticised the Central Bank of Nigeria’s decision to raise interest rates to nearly 30 per cent.

The foremost entrepreneur also advocated for policies that safeguard domestic industries and cultivate them into indigenous champions capable of generating jobs and fostering prosperity in face of current global economic woes.

The Africa’s richest man told the gathering of manufacturers and investors in Abuja while delivering a speech on ‘Rethinking Manufacturing in Nigeria’ as the keynote speaker at the Nigeria Manufacturers’ Summit that Nigeria has what it takes to be prosperous.

Recall that in May, the Monetary Policy Committee of the Central Bank of Nigeria increased the benchmark interest rate by 150 basis points from 24.75 per cent to 26.25 per cent.

The Central Bank had defended its monetary policy, saying high interest rates are necessary to curb inflation.

Speaking at the manufacturers’ summit at the Presidential Villa Abuja, the Dangote Group president said businesses were struggling to cope with the high rates.

“Nobody can create jobs with an interest rate of 30 per cent. No growth will happen,” he said.

According to him, an import-dependent country is equivalent to poverty importation.

Dangote has urged for a fundamental rethinking of Nigeria’s approach to manufacturing and industrial policy.

Dangote emphasised the critical role of industrialidation in sustainable economic growth.

“Import dependence is equivalent to importing poverty and exporting jobs,” Dangote said, highlighting one of his key messages.

The business magnate pointed out the stark contrast between Nigeria’s manufacturing sector and those of other countries. “Sadly, Nigeria remains far behind with its manufacturing sector accounting for less than five per cent of its merchandise export in 2022,” he said, comparing this to countries like China and South Korea, where manufacturing accounts for 93 per cent of exports.

Dangote reflected on Nigeria’s industrial history, noting, “Post independence and indeed until the late 1980’s we had a thriving and consistently growing and increasingly diversifying manufacturing industry.”

He then contrasted this with the current state, saying, “But as all of us can testify, our manufacturing sector has declined over the years.”

The industrialist strongly advocated for government protection and support of industries. “I believe a primary role and responsibility of the government is not only to promote investment and encourage investors in Manufacturing, but also to ensure that those investments are nurtured and protected to grow and thrive,” he asserted.

Addressing common misconceptions, Dangote stated, “We are often told that protecting your industries makes your country uncompetitive! This is pure fiction. It is quite the reverse. I say you cannot be competitive until you protect and support your own industry.”

He used Nigeria’s cement industry as an example of successful government protection leading to competitiveness.

“Today we are among the 10 most competitive cement producers in the world and the biggest cement producer and cement exporter in Africa,” Dangote said.

Dangote called for urgent action: “We must look to leading countries in the West and the East who are actively protecting their domestic industries.

We must similarly enact policies to protect our domestic industries and nurture them into home grown champions that will create the jobs and prosperity we desperately need.”

Dangote noted that there are various factors contributing to the underperformance of the manufacturing sector, emphasising that the crucial issue requiring attention is government policy and its approach toward investments and investors.

He pointed out that industrial or manufacturing entities are not like trading entities, expressing that the fundamental role and responsibility of the government should be not only to promote investments and attract investors in manufacturing but also to ensure that these investments are nurtured and protected to facilitate growth and sustainability.

He emphasised that Government Protection of the industry, does not solely encompass short to medium-term Regulatory Mechanisms such as tax holidays and other incentives which have their place in industrial policy and should be applied when necessary to mitigate investment challenges.

Disputing assertions that protecting domestic industries leads to reduced competitiveness, Dangote argued to the contrary, citing examples such as China, Korea, India, and various other Asian nations.

He pointed out that these countries successfully developed into robust economies and posed a challenge to the established global economic order precisely because they protected their industries.

He noted that in the past, Nigeria was not competitive in cement production, producing less than two million tons of cement per annum up to 2007.

He pointed out that due to strategic government policies and support, Nigeria has since become Africa’s largest cement producer and exporter, ranking among the top 10 globally in competitiveness.

Dangote noted that in 2023, Dangote Cement alone contributed more tax revenue to the government than the entire banking sector.

According to him, in the past, Nigeria was not competitive in cement production. Up to 2007, Nigeria produced less than two million tons of cement per annum. Today we have about 60 million tons of production capacity and another nine million under construction.

“The foundation for this success story was laid by an administration which decided to extend full support and protection to Nigeria’s cement industry. Today we are among the 10 most competitive cement producers in the world and the biggest cement producer and cement exporter in Africa. In 2023, Dangote Cement alone paid more taxes into the coffers of the government than the entire banking industry.”

Dangote also refuted claims that protecting industries would lead to monopoly, stating that it is common knowledge that foreign investors only come when they see that local investors are also doing well.

Reiterating that Nigeria has all it takes to develop and sustain a globally competitive manufacturing sector, Dangote called for re-thinking of her industrialization policy, by learning from leading countries in the West and the East who are actively protecting their domestic industries.

The summit, organised to address challenges in Nigeria’s real sector, was attended by key stakeholders including the Vice President and leadership of the Manufacturer’s Association of Nigeria.

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Gives indigenous firms marching order to raise crude production Targets less than $20 per barrel production cost

The federal government has resolved all outstanding issues surrounding the $1.3 billion Oil Mining License (OML) 245 oil field scandal.

Minister for state for petroleum resources, Heineken Lokpobiri, who made this known, said a meeting between the Attorney general of the federation, NNPC, and officials of the disputing parties was held to address the lingering issues.

decisive steps to significantly reduce the country’s crude oil production costs in order to enhance its global competitiveness.

Lokpobiri, while speaking at the 23rd annual NOG Energy Week in Abuja, said, “Nigeria has resolved all the issues with OPL 245; soon we will be seeing an influx of investments,” Lokpobiri said on Tuesday.

He added, “The differences between this government and the previous governments is the fact that we are addressing, resolving and fixing all issues as they come”.

Lokpobiri maintained that if Nigeria is able to resolve issues around OPL 245, it could attract investment to the tune of billions of dollars and markedly change the story of the oil industry in Nigeria.

“The block has been tied down for 28 years,” he lamented.

According to him, businessmen understand only one thing. What can we do to sustain our investments and ensure profitability?

Is this investment destination globally competitive?

“What this government has successfully done is to create an atmosphere where we become globally competitive.

“Few weeks ago I tasked my team to benchmark Nigeria’s fiscals with other countries all over the world, and it was discovered that Nigeria’s fiscals are globally competitive.

“That is why many global companies that left the country are beginning to return

The minister also gave a marching order to indigenous oil firms to within the next few days come up with strategies to increase their crude production output.

The IPPG has the obligation to share with me in the next few days what their plan is to increase production. There are 28 IPPG members and each of them produce about 5,000 barrels per day.

Today they can increase it to 10,000 barrels if they make a little more investment.

He said the future of energy security in the country lies with the IPPG.

The minister also charged the Nigerian National Petroleum Company (NNPC) Limited to take decisive steps to significantly reduce the country’s crude oil production costs in order to enhance its global competitiveness.

According to Lokpobiri, Nigeria’s crude oil production cost is currently highest in the world.

He said that while the NNPC has said it plans to drive the cost down to at least $30 per barrel, he insisted on a target production cost of less than $20 per barrel.

“Why is Saudi Arabia’s cost less than $6 per barrel? If Saudi’s is less than $6 let us also remove all the middlemen, impediments that push up production cost so that we can be globally competitive,” he said.

He stressed that his mandate from President Bola Tinubu is to increase production to enable the country to meet our local demand and have enough to export and have the requisite petrodollars to strengthen our local economy, adding that this is what he’s been working to achieve.

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Microsoft and Data Science Nigeria (DSN) have collaborated to equip non-profits with the Artificial Intelligence (AI) tools and knowledge they need to amplify their impact and create a more prosperous and sustainable future.

This is even as the organisations have hosted the inaugural AI for Non-Profit Organisations and Social Good Summit, at Microsoft’s Lagos office.

The summit gathered leaders from various sectors and non-governmental organisations (NGOs) to learn and network collaboratively, showcasing the transformative potential of AI for non-profits and social enterprises.

AI offers great potential for non-profits to transform their social impact interventions at scale. As a
general-purpose technology, it can improve the quality of lives of citizens in various sectors, such as
health, financial inclusion, agriculture, and education. By showcasing how AI can significantly improve
efficiency, scale impact, and address socio-economic challenges, the summit demonstrated the relevance and importance of AI for low-resourced countries like Nigeria.

Sub-Saharan Africa (SSA) philanthropies lead at Microsoft, Winnie Karanu, reaffirmed Microsoft’s commitment to driving AI transformation in the sector, stating that, “At Microsoft, we believe
that AI can be a powerful force for good in Nigeria, where it can help solve some of the most pressing challenges facing the country. That is why we are dedicated to equipping non-profits with the AI tools and knowledge they need to amplify their impact and create a more prosperous and sustainable
future for all.”

An engaging panel discussion moderated by CEO/founder of Data Science Nigeria, Dr. Bayo Adekanmbi, focused on the role of AI in social good, sharing practical examples and emphasising the importance of ethical AI development. The panel included top professionals such as a senior lecturer from the University of Lagos and one of the principal investigators of the EduAI Hub, Dr. Oladipupo Sennaike; executive director of MTN Foundation, Ms. Odunayo Sanya; information management officer and expert on Humanitarian Affairs, Dr. Frederick Atenaga, and head ICT and vice president of GIEVA, who is also the grant winner of the renowned Microsoft and DataDotOrg Grant, Mr. Sunday Taiwo.

Participants at the Summit also engaged in hands-on workshops, acquiring practical AI skills to apply in
their organizations, and explored a variety of cutting-edge digital tools designed to enhance the social
impact of non-profits. These sessions provided a great opportunity to demonstrate emerging AI
applications for key non-profit operations such as fundraising, program planning, human resource
management, partner management, outreach optimization, personalised donor management, and
precision-based intervention.

Reliance Infosystems Limited, a Microsoft Tech for Social Impact Partner, made a substantial contribution by demonstrating non-profit industry innovation on Microsoft business applications. Its focus included fundraising and engagement, volunteer management, and program impact dashboards.

Microsoft and DSN share a vision of digital inclusivity and skills development for non-profits. This mission is supported by Microsoft’s Philanthropies team, which also partners with the Federal Government of Nigeria to provide digital skills across the country through the Digital Skills Nigeria
platform.

CEO of DSN, Dr. Bayo Adekanmbi, highlighted the importance of ongoing AI capacity development efforts, adding that, “Our collaboration with Microsoft aims to equip Nigerian non-profits with the skills needed to create inclusive and equitable AI applications. This initiative will enable these organizations to address critical issues in health, finance, agriculture, and education, focusing on the practical application of AI across sectors.”

Ultimately, the collaboration hopes to drive significant social impact in Nigeria by demonstrating the potential for AI to support social good initiatives and offering practical insights on how to leverage the technology for programmatic and capacity development purposes.

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At NOG: NCDMB Declares Zero Tolerance For Firms Lacking Project Execution Capacity
In a move to ensure the success of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act, the Nigerian Content Development and Monitoring Board (NCDMB) has declared zero tolerance for firms lacking the capacity to execute projects in the industry

The executive secretary, Nigerian Content Development and Monitoring Board (NCDMB) Felix Omatshola Ogbe, said entities acting solely as intermediaries, with no demonstrable capacity to execute any project or activity, would be excluded from the Nigerian local content plan.

Speaking at the Nigerian Oil and Gas (NOG) Energy Week 2024 in Abuja on Monday with the theme, “Showcasing opportunities, driving investment and meeting energy demand,” Ogbe said the move became imperative following the earlier directive by President Bola Tinubu to encourage local content agenda and protect their rights while developing the sector to harness its full potential.

The Presidential Directive seeks to further deepen local content in the Nigerian oil and gas industry while enhancing competitiveness, mitigating risks of approving unqualified contractors, improving the approval timeline, creating an enabling business environment in the Nigerian oil and gas industry.

Among other obligations, the Board is required to establish procedures for its execution in accordance with the Presidential Directive.

Speaking on the development, Ogbe said the Board has designated five focal areas for implementing the Presidential Directive

The areas, according to Ogbe, include promoting the utilisation and growth of in-country capacities.
To achieve this, he said the Board would leverage existing processes to assess and verify the capacity of companies, facilitate and carry out in-country capacity audits in collaboration with all relevant stakeholders.

He also explained that the Board will be enhancing the cost competitiveness of oil and gas projects. This area, he added, will include allocating permission to operators to source capacities out-of-country only after in-country capacity gaps have been identified.

He said, “The Approval of Nigerian Content Plan (NCP), which consists of contractors that meet the legal definition of Nigerian companies and demonstrate capacity to execute projects within Nigeria. The Board will only acknowledge the necessity of international players’ participation when the necessary Nigerian Content level is unavailable locally or insufficient.

“Entities acting solely as intermediaries, with no demonstrable capacity to execute the project or activity, shall not be approved.”

Ogbe noted that the Board is steadfast in its dedication to guaranteeing that any services provided will generate value in the country.

He assured that the Board will evaluate current policies and guidelines to encourage the development of indigenous capabilities and guarantee that these policies and guidelines are not misused, misapplied, or misinterpreted.

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The federal government, in collaboration with the Manufacturers Association of Nigeria (MAN), is organising a three-day national manufacturing policy summit scheduled for July 2-4, 2024.
According to a statement by the spokesman of the vice president, Stanley Nkwocha, the summit with the theme, “Rethinking Manufacturing,” will be held at the Banquet Hall of the Presidential Villa, Abuja.
President Bola Ahmed Tinubu who is expected to attend the event as the Special Guest of Honour will also declare the summit open.

The President will also reinstate the administration’s commitment to industrial growth and economic diversification.

The Office of the Vice President, the Federal Ministry of Industry, Trade and Investment (FMITI), National Institute for Policy and Strategic Studies (NIPSS) and other partners will play key roles in the summit to bring together stakeholders from Ministries, Departments and Agencies (MDAs), multilateral partners, regional institutions, and industry leaders to forge a new path for Nigeria’s manufacturing sector.

According to the director general of MAN, Segun Ajayi-Kadir, “the Summit will focus on discussions on overcoming the binding constraints that limit the performance of the manufacturing sector, enhancing supply chain resilience, leveraging technology, and generally fostering a conducive business environment to drive the growth of the sector.”

Construction sector stakeholders, including the Nigeria Building and Road Research Institute (NBRRI) have called for the revamping of the National Building code to drive sustainable outcomes in building practices in the country.

The move, they noted, will address the spate of building collapse in the built sector, even as they stressed the need for real estate operators, developers, architects and construction experts to adhere to code of practice and use of standard materials to attain sustainability of building construction in Nigeria.

NIBRRI, on its part, disclosed that the National Building Code was long overdue for a complete update and overhaul while it stressed that a complete overhaul of the national building code will enforce stringent laws and policies and also address the menace of building collapse in the country.
The institute noted that the code of conduct is a guide enabling professionals in the built environment to do the right thing as expected and not to cut corners.Traveling across Quang Binh to stunning cinematic locations

Speaking on the recent spate of building collapse, director general and chief operating officer of NBRRI, Prof. Samson Duna said, the institute carried out a robust research on building collapse in Nigeria and the outcomes revealed that substandard materials, poor remuneration, poor supervision, lack of proper topography, absence of building and planning permit, corruption, soil texture, among others, contribute to collapse of building in the country.

He appealed to construction and industry workers to use materials that meet standard specifications in construction and follow the code of practice to achieve sustainability in the construction sector.

The director of NBRRI added that the code of practice covers construction, labour, material testing, machines and manpower, noting that construction workers should adhere to the standard requirements for the use of any materials in construction.

He, however, called for the laboratory testing of reinforcement to meet industry specification while stressing that if this is achieved, building collapse will be a thing of the past.

Similarly, the Lagos State Building Control Agency, (LASBCA) also buttressed the need to check incessant building collapse even as the building control agency vowed to publish the details of defective buildings with structural issues.

The director, Public Affairs, LASBCA, Olusegun Olaoye said, publishing the list of defective buildings in national dailies was to enlighten the building public and encourage occupants to vacate.

Olaoye was reacting to the trend of building collapse and steps taken by the government to improve urban planning and development control in the state.

He said: “First, we look at the causes of building collapse which we have identified to include but not limited to the use of non-professionals and quacks in the building and construction industries; use of substandard materials, non-adherence to building codes, old age of structures, among others.

“To effectively curb the menace of building collapse, the state government, through the state building control agency, has strengthened its monitoring department to effectively monitor building construction in the state to ensure that standard materials are used by the building public.”

Also speaking, CEO of Ove Arup & Partners, Kunle Adebajo, called for the enactment and enforcement of stringent building codes to mandate the construction of safe and fit -for-purpose buildings. Adebajo said, this would also promote the use of sustainable alternatives where applicable, as the industry must drive home the importance of these codes.

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To him, “the ideal approach would involve a comprehensive revamping exercise, enabling state and local development control authorities to drive sustainable development more effectively. However, the reality of building practices within the country often shows a disregard for these existing codes.”

On her part, the head, Architect Department, West African Ceramics Limited, Amaka Onyiuke, said it was important for the country to stop importing building materials produced locally, saying such practices would not support local content.

“If we keep importing from abroad, we keep supporting foreign economy to grow at the expense of our own economy. That means we will keep using foreign currency and continue destroying our products.

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