Business
Okonjo-Iweala Lauds Nigeria’s Rail Projects
The Minister of Finance,
Dr Ngozi Okonjo-Iweala, has commended the progress made so far in the construction of the Federal Capital Territory’ s rail projects.
Okonjo-Iweala made the commendation when she inspected the project sites of Abuja terminal expansion at the Nnamdi Azikiwe Airport. Abuja.
The minister expressed satisfaction with the level of work done so far on the light rail in Idu and the Abuja-Kaduna rail projects.
According to her, the Federal Government is looking forward to a constructed terminal that is similar to those found outside the country which Nigerians will be proud of.
“ My impression on the progress is very good, the work is going on well and the terminal is 30 per cent completed.
“ I am quite excited as you can see because what I saw up there is quite impressive. The quality seems solid and the design looks good.
“ The Federal Government took a loan of 500 million dollars from the NEXIM Bank of the Chinese Government to construct modern terminals in the country.
“ We have four terminals that are going to be financed from this money, they include, Abuja, Lagos, Kano and Port-Harcourt,’’ she said.
On the light rail, the Minister said what she had in her head was different from what she had seen; adding that what she had seen would endure longer.
“They have explained to me how they will be working on phases for the project and God willing by May next year we will be riding on it.
“What we had borrowed was 500 million dollars but they had started work before then and we had already paid 162 million before the loan was approved.
“ This is not just about borrowing money, it is about a relationship between China and Nigeria, and for this segment we have already borrowed what is needed to complete this section,’’ she said.
The Chinese Ambassador to Nigeria, Mr Gu Xiaojie said the Chinese Government was committed to the partnership and that CCECC was also committed to completing the project.
“ Best quality is ensured for the project and CCECC is also undertaking the project and are undergoing training programme and employing local force for the project.
“ It is a very good project and the Nigerian Government is making very good use of the Chinese loans.
“ I think from what I have seen, it is going on very well, they are constructing according to the standard and I think we will finish this on time ,’’ Xiaojie said.
The Director, Rail and Mass Transit, Federal Ministry of Transport, Mr Gafai Bature, said the national rail was at 84 per cent completion and would be ready for inauguration by December.
“ The Idu station is the first station and one can come here and take a train to Kaduna within a maximum of one hour.
“ The train speed is about 150 kilometer per hour. We are hoping that by December, new locomotives will arrive to carry passengers within the FCT.
“ The light rail is like a city train within the FCT and its environs but the national rail is a heavy gauge train that carries passengers and goods.
“ The national rail is segmented into six. After this, we will embark on Lagos to Ibadan, Lagos to Ilorin, Ilorin to Minna, Minna to Abuja and Minna to Kano.”
He said that the first stage of the project covered 186 km from Idu to Kaduna, adding that the total sum of the project was 849 million dollars.
Business
Electricity: Bands BCDE Suffer No Power
As DisCos struggle to meet the required 20 hours power supply to “Band A” customers following shortage of gas which has hindered power generation since January, customers on Bands B, C, D, and E are left with no light, according to The Tide’s source.
The source learnt that the distribution companies were concentrating more on the Band A customers to keep their Band A feeders from being downgraded.
Band A customers enjoy a minimum of 20 hours of electricity daily.
On April 3, the Nigerian Electricity Regulatory Commission announced that subsidies would no longer be paid for the electricity consumed by Band A customers.
The electricity tariff for Band A customers was revised upward from N68 per kilowatt-hour to N255/KWh.
1 kWh is the amount of energy that could be used if a 1,000-watt appliance is kept running for an hour. For example, a 100-watt light bulb operating for 10 hours would use 1 kWh.
After the power subsidy was removed, the NERC directed the 11 DisCos to release their lists of Band A customers, who must get at least a 20-hour supply daily.
The regulator and the Minister of Power, Adebayo Adelabu, emphasised that there would be sanctions should the distribution companies fail to supply Band A customers with 20 hours of electricity.
The DisCos were also mandated to inform customers whenever they failed to meet the required minimum service level.
NERC said where a DisCo failed to deliver on the committed level of service on a Band A feeder for two consecutive days, the DisCo should, by 10 am the next day, publish on its website an explanation of the reasons for the failure and update the affected customers on the timeline for restoration of service to the committed level.
It stated that if a customer’s service level improves to at least 20 hours, they should be upgraded from lower service bands to Band A, adding that if the DisCo fails to meet the committed service level to a Band A feeder for seven consecutive days, the feeder will be downgraded to the recorded level of supply by the applicable framework.
In their efforts to meet up with the service level, the source gathered that some of the DisCos were gradually resorting to diverting the little allocation they get to the Band A customers.
This is in spite of the fact that the gas constraints that have hindered power generation since the beginning of the year have yet to be addressed.
Many communities said they could not boast 30 hours of power supply since January, a development the government blamed on the refusal of gas companies to supply gas to power-generating companies due to heavy debt.
Recall that recently, the IBEDC spokesperson, Busolami Tunwase, explained that, “One of the primary factors is the low supply of gas to generating companies, which has led to a gradual decrease in available generation on the grid.
Business
‘Inappropriate Insider Dealing’ Earns Julius Berger NGX Sanction
Authorities at the Nigerian Exchange (NGX) have sanctioned Julius Berger Nigeria (JBN) Plc for engaging in inappropriate insider dealing in shares.
According to a document obtained by The Tide’s source, JBN, Nigeria’s leading construction company, was sanctioned for “insider dealing during closed period”.
Incorporated in 1970, Julius Berger, Nigeria, which was incorporated in 1970, became a publicly quoted company in 1991 and has more than 10,000 shareholders.
NGX Regulatory Company (NGX RegCo), the self regulatory organisation (SRO) that regulates activities at the NGX, stated that JBN breached certain provisions of the listing rules and was thus sanctioned accordingly.
According to NGX RegCo, JBN violated provisions on “closed period”, in breach of the construction company’s commitment to adhere to listing rules and standards.
The NGX had tightened its rules and regulations to checkmate boardroom intrigues and block information arbitrage that tend to confer advantages on companies’ directors.
The amendments expanded the scope and authority of corporate financial reporting while eliminating gaps that allowed companies to sidetrack relevant rules in stage-managing corporate compliance.
The enhanced framework provided clarity and greater disclosures on directors’ trading in shares, corporate liability for accuracy and compliance of financial statement, dissuade bogus dividend payment and other sundry boardroom’s maneuverings that tend to favour insiders.
The amendments came on the heels of noticeable increase in violations of rules on ‘closed period’, a period when directors are banned from trading in the shares of their companies.
Rule 17.17 of the NGX disallows insiders and their connected persons from trading in the shares or bonds of their companies during the ‘closed period’ or any period during which trading is restricted.
This period is mostly at a period of sensitive material information, like prior knowledge of financials, dividends or major corporate changes, which places directors and other insiders at advantage above other general and retail investors.
A review of the disclosure violations at the stock market had shown that all violations in 2021 were related to violation of Rule 17.17 on ‘closed period’.
Under the amendments, in addition to the provisions of relevant accounting standards, laws, rules and requirements regarding preparation of financial statements, companies are now required to include several specific declarations on securities transactions by directors, changes in shareholding structure, self-assessment on compliance with corporate governance standards and internal code for directors on securities transactions among others.
Business
Nigerian Breweries To Suspend Operations In Two Plants
Nigerian Breweries Plc says it is planning for a company-wide reorganisation which include the temporary suspension of operations in two of its nine breweries.
It said this is part of a company-wide reorganisation as part of a strategic recovery plan aimed at securing a resilient and sustainable future for its stakeholders.
The Business Recovery Plan includes a rights issue and a company-wide reorganisation exercise which includes temporary suspension of two of its nine breweries and an optimisation of production capacity in the other seven breweries, some of which have received significant capital investment in recent years.
These measures include relocating and redistributing employees to the remaining seven breweries and offering support and severance packages to those that become unavoidably affected.
The company said this move is essential to improve its operational efficiency, financial stability and enhance a return of the business to profitability, in the face of the persistently challenging business environment.
In letters signed by the company’s Human Resource Director, Grace Omo-Lamai, and addressed to the leadership of the National Union of Food, Beverage & Tobacco Employees (NUFBTE) and the Food Beverage and Tobacco Senior Staff Association (FOBTOB), the company informed both unions that its proposed plan would include operational efficiency measures and a company-wide reorganisation that includes the temporary suspension of operations in two of its nine breweries.
As a result, and in accordance with labour requirements, the company invited the unions to discussions on the implications of the proposed measures.
Recall that the company recently notified the Nigerian Exchange Group (NGX) of its plan to raise capital of up to N600 billion by way of a rights issue, as a means of restoring the company’s balance sheet to a healthy position following the net finance expenses of N189 billion recorded in 2023 driven mainly by a foreign exchange loss of N153 billion resulting from the devaluation of the naira.
Speaking on these developments, the Managing Director/CEO, Nigerian Breweries, Hans Essaadi, described the business recovery plan as strategic and vital for business continuity.
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