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CBN New Stamp Duty Policy Goes Live on InfoWARE Global ERP

tamp Duty Collection Still Our Responsible - FIRS

The Federal Government through the Central Bank of Nigeria (CBN), recently imposed stamp duty of N50 on bank customers for money received into their accounts.  Consequently, bank customers will henceforth pay N50 stamp duty for money received into their accounts via electronic transfer, cash and cheques.

To give full vent to this measure, the Central Bank of Nigeria (CBN) has dedicated an account known as the CBN NIPOST Stamp Duty Account into which all collections accruing from the new duty would be paid. It has been estimated that the total cash lodgements into various bank accounts, transfers of cash arising from Point of Sale, Automated Teller Machines, mobile banking transactions etc. may hit fifty (50) million in volume per day and probably net the Federal Government about N2.5 billion daily.

While there is no or little issue about compliance from Deposit Money Banks and other financial institutions on the new N50 charge in acknowledgement of services rendered in respect of teller deposits and electronic transfers, there is however one major complication as to how these deductions directly impact in-house customers’ account most especially for Brokerage houses, Investment Banks among others.

The InfoWARE Advantage

At InfoWARE, we’ve successfully completed the implementation of the Stamp Duty Policy across our platform to facilitate a robust and automated execution of the new N50 charge on clients’ portfolio. Specifically, this means that an automatic N50 stamp duty charge is debited per client’s deposit transaction above N1000 which is seamlessly reconciled across their respective accounts. This contrasts sharply with the idea of manually raising multiple GL journal entries/books and ultimately saves more productive time while dealing with very large volume of transactions.

According to DGM, InfoWARE Limited, Oluwafunto Olasemo, “Clearly, we’ve taken a proactive step in rolling out a simplified and flexible approach that would enable our clients eventually determine whether to transfer the N50 stamp duty charge on their customers or not, since appropriate deductions would have been effected on their receiving account on Deposit Money Banks platform”.

To learn about how our team can help you with a swift and comfortable deployment process, please contact your InfoWARE Account Officer or solutions@infowarelimited.com.

3 Ways to Get Your Visa Application Approved by Foreign Embassies in Nigeria

UK Visa

Nigerians generally love the idea of travelling outside their country, whether for work, school or vacation, however, most times, they are unable to make their desired trip as due to immigration issues: they need to apply for a visa to visit most foreign countries, especially those outside Africa.

While every visa application is judged fairly, rigorously, and on its merits, often times, Nigerians have their visa application rejected or denied for reasons ranging from mistakes made by an unscrupulous agent, insufficient funds and false information.

Jovago.com, Africa’s No. 1 online hotel booking portal, understands that getting a visa rejected can be quite a painful experience as the process is tedious, and so if you are in Nigeria, read on to discover top three secrets on how to get your visa application approved by foreign embassies.

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Do not make mistakes in the visa application

The visa application, whether paper or electronic, is a formal document and it is important that you do not make any mistakes while inputting required information. Make sure you write your answers clearly or type them in with a clear font. Scan and correct typos, run-on sentences and jargons, including slangs. Ensure you avoid big grammar as well or ambiguous phrases. Keep your responses short, simple and straight to the point; you stand a higher chance of getting your visa that way.

When you eventually go for the interview as well, make sure you are prepared so that your answers correspond with what you already inputted in the forms submitted. Also, answer with confidence as a weak and feeble answer can be your undoing.

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Do not give false Information

Most times, applicants give false information in the bid to present themselves in a better light. They believe that the truth could limit the chances of their visa being approved, forgetting that the applications are vetted and information thoroughly verified. Most embassies (especially the UK and the USA) share information on a lot of things and so if the information you are giving is different from information in a previous application in another embassy, they could penalize you for it.

Lying on a visa application is a very bad idea. If they find out, they will not only deny you the visa, they will make it almost impossible for you to visit the UK ever again and possibly any other countries they share that information with. And worse, if they find out after you have entered their country, you could  face up to two years in prison or get deported. Note that lying and hiding information in visa application are regarded as same and leads to prosecution as well.

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Ensure you have sufficient funds

Most Nigerians believe that the minute they have enough funds to purchase a ticket to a destination, they can apply for the Visa. WRONG! There are other costs to consider: Hotel bill, transportation, and feeding allowance. Your bank statement must reflect that you can cater to these costs on your own without breaking the bank.

Generally, most embassies assume all applicants are seeking permanent entry into their country until proven otherwise. Using your last savings to embark on a “vacation” smells rather fishy.  A major way to prove that you have strong economic reasons to return to your country following your stay is to show abundant funds and a steady source. Some people try to beat this procedure by borrowing large money and installing in their account prior to application. Unfortunately, the foreign embassies also check pattern and consistency of inflow and outflow of funds recorded in your account and they certainly rely on their estimates to justify giving you a visa or denying it. Ensure you CAN afford to travel to a particular country before you apply for a visa.

CMB To Build Affordable Houses In Apapa GRA

CMB Building Maintenance & Investment Company Limited, a foremost real estate development company, has unfolded plans to boost its affordable portfolio of real estate development with the introduction of a residential housing estate in Apapa GRA.

The latest addition is situated in Apapa, which is the major port of the city of Lagos, Nigeria, and is located to the west of Lagos Island, across Lagos Harbour.

CMB’s development drive towards the Apapa axis is coming on the heels of the directive by the Senate to the Federal Ministry of Works and the Nigerian Ports Authority, NPA, to immediately begin the process of removing structures on rights of way (motor ways) and other locations impeding smooth traffic flow across the country.

The estate will constitute 2 blocks of 38 units of tastefully finished 3 bedroom apartments with a service quarter and 2 pent apartments. The estate will boast of facilities such as alternative power supply, potable water supply, adequate parking space, landscaped area, elevators, fire escapes, a serene environment and facility management services.
The Managing Director of CMB, Mr Kelechukwu Mbagwu, said the decision to expand its business to the Apapa corridor is largely based on the company’s drive to be a fore-runner in reducing the nation’s current housing deficit. He urged developers across the country to embrace this mandate of private sector participation.

2 Million Nigerian Farmers Benefit From USAID Agricultural Initiative

The United States Agency for International Development (USAID) Markets 11 has declared that over two million rural Nigerian farmers have benefited from agricultural and capacity building assistance of the agency since 2005 as part of efforts to boost food security in the country.

The Director, External Relations USAID Markets 11, Mr. Godson Ononiwu, disclosed that in Benue and. Kwara states, USAID Markets 11 has been providing agricultural and capacity building to 70,139 aqua culture, rice and soya bean farmers since April 2012.

“The project’s rice farmers in these states have increased production from 2.58 metric tons per hectare to 4.55 metric tons and 3.9 metric tons per hectare”.

“Markets 11 is. USAID/Nigeria flagship project which aims to sustainably improve performance, income, nutrition and food security of poor Nigerian rural farmers or smallholders in an environmentally friendly manner”.

He stressed that the project works across five main values chains of aquaculture, cassava, cocoa, rice and sorghum, adding that the agency has assisted rice farmers’ cooperative societies in Kpada so as to boost its rice production from two to five tons per hectare.

The External Relations Director said USAID MARKET II interventions were in the areas of rice, sorghum, cocoa, soya bean, cassava, maize and aquaculture production.

Key Things To Look Out For Before Using Any Mobile Money Operator

Restorium Capital Tackles Funding Gap In Nigeria's Financial Market

Is my money safe? Why should I put my card details on this website or application? These people must be scammers… These are the typical reactions of an average Nigerian asked for his/her card details online.

Mobile money/payment is new to most Nigerians, as such most people are still wary about sharing their card details online.

  1. How does Mobile Money/Payment work?

Mobile Money transforms your smartphone into an electronic wallet (e-wallet). Funds could be stored in your mobile e-wallet for making electronic payment for goods and services, to transfer funds to family and friends, pay your bills and buy airtime.This reduces your need to carry cash around when shopping and also makes life easier, convenient and safe.

Your e-wallet could be funded via authorised mobile payment  operators, partner banks, network service providers, transfers from your ATM/Debit cards, or any other funding method offered by your operator. Once you download the app and register, your card is secure and ready for use. Which means you can conveniently use your smartphone to send money to family and friends, buy airtime of any network, etc. Gone are the old days of using your phone to just call, receive and send text messages.

To be sure your money is safe, here are few questions you should ask yourself and look out for before using any mobile money operator

  • Is the operator licensed to offer mobile money services by CBN?

In Nigeria, the regulatory body for mobile money is the Central Bank of Nigeria (CBN). The CBN framework for mobile payments goes a long way in ensuring funds in the schemes are well secured and protected from fraud.

   2. What are your rights?

Mobile money consumers have rights to ease of enrollment, Privacy, Trust, and Security of transaction convenience. Ensure proper confirmation of transaction details and recipients’ mobile phone numbers at all times before authorizing transactions,comply with all security rules as provided by the scheme operator, escalate complaints to the Consumer Protection Departments of the Central Bank of Nigeria, if resolution of complaints is unduly delayed. These rights were put together by CBN.

  1. Is the mobile operator PCI DSS secured?

The Payment Card Industry Data Security Standard (PCI DSS) is a proprietary information security standard for organizations that handle branded credit cards from the major card schemes including Visa and MasterCard.

They Help merchants and financial institutions understand and carry out standards for security policies, technologies and ongoing processes that protect their payment systems from breaches and theft of cardholder data.So you have to be sure your mobile operator is PCI DSS secured before using.

Widely accepted communications protocols allow mobile phones to communicate with different technologies. Mobile technology is making mobile payments more secure and safe for its consumers. Newer smartphone apps help direct connection and authentication of payers and recipients, with the use technology security companies like PCIDSS,3Ds and VeriSign to secure and watch all online transactions. Zoto is licensed by CBN and is PCI DSS certified to make sure all your details stay safe. Zoto is a good example of a verified mobile money operator, the app lets you make convenient transactions with no hassle.

 

Communications Minister, Shittu, To Meet With Lawmakers Over Payment of MTN Fine

The minister of Communications, Barrister Adebayo Shittu yesterday confirmed that he will meet with the Senate Committee on Communications today as well as face the House of Reps counterparts on Thursday to explain his role in the N50 billion payment paid by MTN and the withdrawal of court case against the government.

Shittu who was bombarded with questions by journalists in Lagos yesterday during a working visit to three telecommunications operating companies, MainOne, MTN and Globacom said the request of the lawmakers was in order.

According to him, the legislature has the power to empower  law, from time to time, the activities of the executive arm of government are to ensure transparency in the system, he said.

He said,“The latest about the MTN fine matter now is that, MTN, which took the government to court for imposing N1.04 trillion on it for violation of Subscriber Identity Module (SIM) registration rule has come out to say it wanted an out of court settlement.

In a democratic system, out-of-court arrangement should be encouraged for peaceful resolution of any matter and we have accepted their offer to settle out of court. “We have also given them conditions to withdraw the case and make some commitment payment in good faith for us to begin further negotiations and they have down the two.

He said,“But the lawmakers are saying they wanted transparency on the two matters for which I am ready to address first before House of Representation tomorrow (today) and later in the Senate. I am, indeed, more than prepared to discuss how the whole exercise is going with the lawmakers”.

The Senate had summoned that Shittu, alongside the Attorney General of the Federation and Minister of Justice, Abubakar Malami (SAN), to explain their role in the claim that MTN Nigeria Limited had paid N50 billion to the Federal Government.

Kwara State Targets Investments Worth N30 Billion By 2019

Kwara State governor, Alhajhi Abdulfatah Ahmed has revealed that the state’s target was to attract N30 billion worth of investments, through public private partnerships in key sectors such as manufacturing, power, health, energy and aviation between now and 2019.

“We also estimate about N1.5b worth of new investments in our solid mineral sector within the same period.”

“With 64 outlets subdivided into different dimensions of office suites, and multi-use stalls and coupled with its strategic location along the dualised Fate Road, the hub, no doubt, presents great economic opportunities for Kwara State in terms of job creation, business growth and enhanced Internal Revenue,” he said.

Ahmed remarked that owing to these, it is safe to say that greater prosperity is coming to Kwara State because, when investment and opportunities converge, prosperity is imminent and “brighter and rewarding future assured.”

However, he promised that the government will continue to provide an enabling environment for businesses to bloom in the state.

UNFPA Reaffirms Its Commitment To Enhance Reproductive Healthcare

The UN Population Fund (UNFPA) has reaffirmed its pledge to boost reproductive healthcare delivery in Nigeria. Ms Ratidzai Ndhlovu, the Country Representative of the fund in Nigeria, disclosed this in Abuja at the opening of a three-day leadership summit on demographic dividend in Africa.

According to her, UNFPA is committed to ensuring that “every pregnancy is wanted, every child birth is safe and every young person’s potential is fulfilled’’. She said that the demographic dividends in Africa provide an enormous potential and opportunities for UNFPA to achieve this mission.

She said the summit has been convened to deepen understanding of the demographic dividend issues and discuss ways by which donors can support seed funding to select institutions.

The UN Resident and Humanitarian Coordinator in Nigeria, Ms Fatima Samoura, called on African leaders to invest in young persons to secure a better for the continent, noting that about 25 per cent of Africa’s estimated population of 1.2 billion in 2016 are youths below 25 years in many countries.

 

Wapic Insurance Appoints New Managing Director

The Board of Directors of Wapic Insurance Plc has appointed Mrs. Adeyinka Adekoya as the Managing Director/Chief Executive Officer of the company. They also approved the appointment of Mr. Rantimi Ogunleye as the Managing Director of Wapic Life Assurance Limited. The National Insurance Commission (NAICOM) has approved the appointment.

Adekoya, the company said, is a fellow of the Chartered Insurance Institute of Nigeria (FCII) and an Associate of the Chartered Insurance Institute, London (ACII). Mrs. Adekoya holds a B.Sc in Insurance and an MBA, both from the University of Lagos.

“She has over 25years experience in the insurance industry, of which over 20years has been at senior management levels. Immediately prior to her appointment, Mrs. Adekoya was General Manager and Head, Institutional Business Development at Cornerstone Insurance Plc. She was also the Deputy General Manager, Technical at Law Union & Rock Insurance of Nigeria Plc.

“Ogunleye is a qualified actuary and an Associate of the Chartered Insurance Institute of Nigeria. Mr. Ogunleye holds a B.Sc in Actuarial Science and an MBA, both from the University of Lagos. He also attended the Senior Management Programme (SMP) of the Pan African University (Lagos Business School). He has over 22 years’ experience in the insurance industry, of which over 10years has been at management levels. Prior to his appointment, Ogunleye was Head, Bancassurance Financial Institutions Channel at Mansard (now AxaMansard) Insurance Plc. He had also previously worked at Cornerstone Insurance Plc and Crusader Insurance (Nigeria) Plc,” the company said.

The Chairman, Board of Directors of Wapic Insurance Plc, Mr. Aigboje Aig-Imoukhuede said: “With the appointment of two first class insurance professionals who possess extensive experience and knowledge of the domestic market as CEOs of our life and general businesses, I am confident that Wapic is well positioned to deliver on its strategic goal of becoming a top 3 underwriter over the next five years.”

Wapic Insurance Plc was incorporated in 1958 and has evolved to become the parent of three insurance companies licensed to underwrite life classes of insurance in Nigeria and general classes of insurance in Nigeria and Ghana. Wapic Insurance Plc, is listed on the Nigerian Stock Exchange and has over 850,000 shareholders.

We Will Sell Forex To CBN By 2020 – Dangote

President of Dangote Group, Aliko Dangote, has revealed that his conglomerate would be selling foreign exchange to the Central Bank of Nigeria (CBN) by year 2020. He said the problem with Nigeria should not be blamed on oil, noting that oil traded at $9 per barrel in 1998.

Dangote said his company is expected to generate 12,000 megawatts of electricity for Nigeria by 2018.

“We are looking at a situation that by 2020 we are the one selling foreign exchange to CBN. Our projects are mainly import substitution. We are working to be self-sufficient to grow about a million tonnes of rice over the next five years,” he said.

“Our gas project would have our gas pipelines on the sea bed. The output should be able to provide about 12,000MW power.  We see a lot of transformation when we are done with most of our projects by 2018.

“We have 15 countries in the ECOWAS community that is duty-free. Export market is big and profitable if you have capacity. Players in the manufacturing should be encouraged to export if they have the capacity. We must also meet local consumption.”

He also called on the leaders of the economy not to forget diversification of the economy even when oil bounces back to the $80 region.

 

BANKING & FINANCE JOBS | African Development Bank (AfDB) Job Recruitment (4 Positions)

African Development Bank (AfDB) – Established in 1964, the African Development Bank is the premier pan-African development institution, promoting economic growth and social progress across the continent. There are 80 member states, including 54 in Africa (Regional Member Countries). The Bank’s development agenda is delivering the financial and technical support for transformative projects that will significantly reduce poverty through inclusive and sustainable economic growth.

We are recruiting to fill the following positions below:

CLICK HERE TO VIEW JOB DETAILS AND APPLY

MANUFACTURING JOBS | Fan Milk Plc Entry Level & Exp. Job Recruitment 2016

Fan Milk Plc is a leading manufacturer and marketer of healthy, nutritious and safe frozen dairy and non-frozen dairy food products with distribution channels across the length and breadth of Nigeria. Fan Milk Nigeria is a well established and fast growing food processing industry offering wide range of products

We are recruiting to fill the following vacant positions below:

CLICK HERE TO VIEW JOB DETAILS AND APPLY

MANUFACTURING JOBS | Nestle Nigeria Plc Fresh Graduate & Exp. Job Recruitment 2016

Nestle Nigeria Plc – As the Leading Nutrition Health and Wellness Company, we are committed to enhancing People’s lives, everywhere, every day. Infact enhancing lives will influence everything we do together.

A presence in more than 130 countries and factories in more than 80 research centres brings many global benefits. We believe in long term career development and appreciate how challenges and motivation will help you reach your potential. Nestle Nigeria Plc upholds the principle of Non- Discrimination and Equal Employment Opportunities in its recruitment processes.

We are recruiting to fill the following positions below:

CLICK HERE TO VIEW JOB DETAILS AND APPLY

LEGAL JOBS | Nigerian Navy Massive Recruitment Exercise 2016

The Nigerian Navy wishes to inform the general public and all interested candidates that the online registration for 2016 Recruitment Exercise will commence on 5 March 2016 and close on 2 April 2016.

2016 Nigerian Navy Recruitment Exercise

Basic Qualifications
Applicants must:

  • Possess a minimum of 5 credits in not more than 2 sittings in WASSCE/GCE/NECO/NABTEB (English and Mathematics inclusive).
  • Be between the ages of 18 – 22 years while 24 – 26 years are the acceptable limit for those with OND, NCE, Nurses and Motor Transport Department (MTD) respectively. Candidates with higher qualifications than those specified in the guidelines should not apply.
  • Applicants must be single and of Nigerian origin by birth.
  • Required height of 1.70 metres for Male and 1.67 metres for Female.
  • Check for full detailed instruction at www.navy.mil.ng

General Information for Candidates to Note

  • The recruitment exercise will commence with an aptitude test and screening of certificates of candidates at designated centres for various states nationwide from 9 April 2016. You are advised to carefully read the instructions on the website or call the following support lines from 9am to 4pm on working days: 08124511398 and 08159999011.
  • Candidates are advised in their own interest not to give any form of gratification or inducement to any person or group of persons to assist them on the recruitment exercise.
  • Candidates are advised in their own interest not to submit multiple online applications. Any candidates with multiple submissions will be disqualified.

Application Closing Date
2nd April, 2016.

Method of Application

Interested and qualified candidates should APPLY

Senator Ben Murray Bruce, Jay Jay Okocha, Others Attend ABL Tip Off

The African Basketball League has officially tipped off on Saturday March 5th 2016 at the Landmark Event Centre with the Dakar Rapids of Senegal making history by winning the first game in the season.

Vector, CDQ and a host of other entertainers bounced around a giant stage and entertained fun lovers who came in their hundreds to support the new big thing in Nigeria, ABL.

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In his opening speech, the CEO of ABL, Ugo Udezue welcomed the six participating teams; Lagos Islanders, Stallions and Lagos Warriors from Nigeria, Dakar Rapids from Senegal, Abidjan Ramblers from the Cote d’Ivoire and Izobe Basketball Club from Libreville.

The double header weekend was well attended by Senator Ben Murray Bruce, Jeffery Daniels, Jay Jay Okocha, Sasha , Sexy Steel ,Sound Sultan ,Matthew Ohio of Industry nite and VJ Adams.

Stallions’ player J. Felando made history by becoming the first player to score a point in the league. He made a 2pt field goal 23secs into the game.

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Felando ended up playing for 34mins with 29points and 11 rebounds. He ties the record of most points in a game with Dakar-Rapids’ Gavin Schuman

Felando alongside his team mate and captain Akin Akuntunde had double doubles – 29pts,11reb and 17pts,18reb – respectively.

Dakar Rapids had two players who made 20+ points – Schuman 29, Niang 26. Stallions had the most 3points as they made 8 out of 20 attempts. The visiting team won with just one point (69-70) and became the first team to win a game in the league.

In the second game played on Sunday, Afam Muojeke and Mark Hill combined for 51points to lead the Lagos Islanders past the visiting Abidjan Ramblers.

It was an electrifying atmosphere at the Landmark Event Centre as the Lagos Islanders rallied in the fourth quarter to cut the lead and eventually win the game. Lagos Islanders scored the first point and 2.16sec into the first quarter, Jacobs made a 2pts layup shot to tie the game 4-4. Afam Muojeke emerged leading scorer for Lagos Islanders with 28pts, 7 rebounds while Jourdain led for Abidjan Ramblers with 22pts, 8 rebounds.

The next game is between Lagos Warriors vs Libreville Izobe on Thursday 10 March at the Landmark Event Centre. Tip off time is 7pm.

The ABL is proudly supported by TRACE, Union Bank, Wakanow, Cornerstone Insurance, Cruz Vodka, Lagos State Government, BEAT 99.9FM and ASKY Airline.

Stock Market Index Jumps 0.27% As Investors Scurry for Value Stocks

Trading activities on the floor of the Nigerian Stock Exchange,NSE, appreciated further on Monday, March 8, as the All Share Index (NSE ASI) appreciated by 0.27% to 25,890.94 points, compared with the marginal appreciation of 0.01% recorded last Friday.
on the Nigerian Stock Exchange as investors continued to take strategic positions in some value stocks ahead of their corporate earnings and dividends declaration.
Year-to-date (YTD), the Index depreciated by 9.61%.

Similarly, the Market Capitalization appreciated marginally by 0.27% to close at N8.91trn, compared with the marginal appreciation of 0.01% recorded last Friday to close at N8.88trn.

The appreciation recorded in the share prices of Oando, UBA, Stanbic IBTC, FBN Holdings, and Transcorp were mainly responsible for the gain recorded in the Index.

The total value of stocks traded on the floors of The NSE today was N1.31bn, down by 12.09% from N1.49bn traded last Friday. The total volume of stocks traded was 186.37mn in 3,106 deals.

The three most actively traded stocks were: Zenith Bank (25.45mn), Fidelity Bank (25.31mn) and FBN Holdings (19.86mn). The most actively traded sectors were: Financial Services (146.51mn), Conglomerates (19.23mn) and Consumer Goods (13.22mn).

Nigerian Stocks Plunge 16% Since December

Stocks quoted on the Nigerian stock market has dropped by 16 per cent since December 2015, even as the Central Bank of Nigeria, CBN says that weakening the naira would raise inflation, already close to 10 per cent, Control Risks Services West Africa has disclosed.

Commenting the impact of devaluation on business environment, Control Risk stated “Uncertainty about the timing and extent of any devaluation will remain a significant risk, particularly those whose operations rely on large quantities of imported goods, as well as to investors and prospective investors.

Many potential investors are likely to stay shy of Nigeria until the fears surrounding the possible devaluation of the currency have been alleviated. File photo: The floor of Stock exchange Continuing, it said.

“As assets in Nigeria continue to slide in value, investors who are prepared to take a longer term perspective will find there are buying opportunities.”

Daniel Magnowski, Senior Analyst, Control Risks said: “A lot more clarity is needed about Nigeria’s Fiscal and monetary policies before people regain the confidence to invest.”

According to him “Meanwhile, the central bank says that weakening the naira would raise the inflation rate, already close to 10%. Nigerian stocks have fallen 16% since the end of December 2015, the biggest drop in sub-Saharan Africa.” Commenting further on devaluation, he said.

“After falling to a record low of N390 to the US dollar on 18 February the naira (currency)’s gained value on the black market this week to trade at around 364 to the dollar.”

 

Nigerian Oil Firms Struggle To Repay Bank Loans Over Dollar Scarcity

Nigerian oil servicing firms are struggling to offset their dollar-based bank loans as demand for the U.S. currency leaped amid a plunge in crude oil prices and foreign exchange restrictions by the Central Bank of Nigeria, CBN.

Consequently, banks were said to be considering lowering their lending bases to oil service companies, Daily Trust learnt.
Service companies are those providing support services to oil and gas companies, ranging from drilling, surveying, cementing, casing (treating wells) among others.

Many have embarked on an aggressive capital-cutting plan that involved cancelling or delaying projects and reducing headcounts.

The effect of these, according to the CEO of Oildata Energy Group and Chairman of the Petroleum Technology Association of Nigeria (PETAN), Emeka Eneh, was the continuous drop of Nigeria’s rig count and declining reserves.

Eneh, in a presentation, last Thursday in Abuja, said: “From the service companies’ perspective, it is brutal. We have PETAN members who are virtually under the weather because they have to pay back serious dollar-based bank loans at a time when they can’t even source the dollar.

“Our reserves and production is declining, if you take out deep water production the story is quite dismal. Ever since I got into this country, we have been about 2 million barrels it hasn’t changed by much.”

There was also mounting pressure by oil companies for service firms to crash their prices by 40 percent.
But Eneh said cost reduction needed to be industry wide, adding that service companies should not carry the brunt alone.

“Dollars per barrel is made up of not just service company costs but you have development cost, opex, infrastructure cost and something that is hidden there in the middle called the high systemic cost which are prevalent in our industry. For example, if a Nigerian technician needs to go offshore, he buys an ID card for close to $1,000, he renews that every year, it adds up after a while.

“Production Cut May Not Resolve Supply Glut” – IEA

The International Energy Agency, IEA has said that despite Nigeria’s lobbying of some Organization of the Petroleum Exporting Countries, OPEC, to cut production, to shore up global crude oil prices,  cutting production may not resolve the current oil glut.

However, production outstrips consumption by around 2 million barrels a day, according to the Organisation for Economic Cooperation and Development, OECD’s energy arm of the IEA.

However, the Minister of State for Petroleum Resources, Dr. Ibe Kachikwu, believes all hope is not lost as oil producing countries are beginning to find solution to the low price.

He said: “I don’t need to tell you about the price of oil despite the shuttle diplomacy here and there. It is still very challenging but at least we are inching up and for the first time, we are beginning to have both the Saudis and the Russians come back to the table.

“When I started that whole move, I was criticised and told that it would not hold but I am happy that over the last few weeks, we see that everybody has bought into that and we are beginning to see prices inch up very slowly.

“But hopefully, if the meeting that we are scheduling to happen in Russia between the OPEC and non-OPEC members happens on the 20th of March, we should see some dramatic movements, though we are not likely going to see the prices of many years ago.

“I think we are very humbled today to accept that if we hit the price of $50 we will be celebrating and that is the target that we have.” But the IEA forecast that “stockpiles will continue to build until the end of 2017, even if demand rises. Once the market rebalances supply and demand, there is still going to be more than 3 billion barrels of oil in storage tanks that will take years to clear.”

The Agency also expects non-OPEC production to fall by 600,000 barrels a day in 2016, and global demand to rise by about twice that amount.

The IEA further noted: “On the assumption, perhaps optimistic, that OPEC crude production is flat at 32.7 million barrels per day, mb/d in the first quarter of the year, Q1 16, there is an implied stock build of 2 mb/d followed by a 1.5 mb/d build in Q2 16.

Tension Mounts in Oil Sector over Impending Sack

The minister of Labour and Employment, Chris Ngige has in the past couple of weeks met several times with workers in the oil sector under the auspices of the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) in an attempt to assure them of job security despite threats from oil companies to lay off workers.

However, despite assurances by the minister of labour, there is great anxiety amongst workers in the oil sector about the looming mass sack. The question is just a matter of when and who may be affected.

Recent reports suggest that Chevron and Royal Dutch Shell, have unveiled plans to sack 18,500 of thier employees globally, including those in their services in Nigeria in 2016.

While Shell revealed its plans to sack 10,000 staff and slash direct contractor positions in the company’s unedited full year 2015 results, Chevron announced it would continue the process that began in 2015, and complete the sacking of 8,500 staff in its services globally by the end of 2016.

The United States oil company revealed it would lay off 7,000 staff before 2016 ends in addition to the 1,500 it announced early in 2015, according to a 2015 last quarter report published by New York Times.

NUPENG in a statement by its president, Igwe Achese, described the planned sack as alarming, warning that it may be forced to embark on industrial action if the federal government fails to stop the companies from sending oil workers in Nigeria to the unemployment market.

The apprehension forced NUPENG and PENGASSAN to petition the minster of labour and employment raising issues bordering on industrial and employment relations – retrenchment, casualization, redundancy as well as unfair treatment of Nigerians in the employ of the oil majors.

But despite appeals from the government, the oil majors appear determined to cut their work force.

After a scheduled meeting between the Minister of Labour and Employment, Senator Chris Ngige, and a majorirty of oil companies in Nigeria, the minister called on operators in the sector to shelve such plans so as to avoid throwing the nation into a huge social upheaval.

The minister emphasised that the nation was already facing a lot of social security problems and could not to afford more problems through job cuts; assuring that the scheduled meeting will look at all the issue.

“The oil majors in Nigeria must therefore bend backwards and see what they can plough back from their profits to keep Nigerian workers on their duty posts,” the minister said.

Speaking further, Ngige assured the oil majors that the current economic downturn would not last forever.

According to him, “keep the existing jobs. We have a downturn today but you can be sure it will not last forever. If you are not creating new jobs, let us keep the ones we have. That is what this government is pleading and we must emphasise that is what we want.”

He said because oil and gas sector remained the financial backbone of the country’s economy for now, any threat of industrial unrest therein should be nipped in the bud.

Speaking on behalf of the International Oil Compananies (IOCs) at the meeting, which included Agip, Mobil producing, Chevron Addax and Total, the Director of Human Resources and Medical, Chevron Nigeria Limited, Ihuoma Onyearughe, appealed for understanding and collaboration on the part of the government in view of the current challenges facing the industry.

“The issue of laying people off is not a decision that comes lightly. I will not come here to tell you that people are being laid off or not. The situation in the oil company is dire. We want to ask for more understanding in appreciation of the challenges we face.

“Nevertheless, we have heard the minister and we will take your message back to our various companies,” she said.

 

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