Nine banks make N59.6bn from maintenance charges in 6 months

As Nigerians continue to groan under excessive bank charges deducted from their accounts, Zenith, UBA, Access banks and six others made N59.596 billion from these charges, including electronic banking fees, National Daily has gathered.

From the banks half year results for 2017, United Bank for Africa, Stanbic IBTC, Access Bank, Guaranty Trust Bank, Zenith Bank, FBN Holdings, Diamond and Fidelity Banks had jointly made N34.849 billion through electronic banking charges, although it was less than N76.155 billion which they made through the same channel in the first half of 2016.
With the exception of Zenith Bank which recorded a rise in income from electronic banking fees, the other banks had significant declines in the income from electronic channels. There was also a decline in what the banks made through account maintenance charges.
In the first half of the year, eight banks made N24.747 billion, a reduction in the charges compared to N28.368 billion that was made in the first six months of 2016. Of the banks, Zenith Bank stood out in what it made from account maintenance charges while UBA, despite the substantial decline in electronic banking fees income still recorded the highest figure.
UBA which recorded the highest income from electronic transactions saw a 45.9 per cent decline from N18.085 which it made in the comparable period of 2016 to N9.781 billion. GTB which saw a 61.4 per cent decline from N17.263 billion it made in 2016, followed UBA with an income flow of N6.668 billion from electronic banking charges.
FBN Holdings also saw a decline from N10.59 billion which it made in 2016 from electronic banking charges recording an income flow of N6.53 billion, while Zenith Bank recorded a 168 per cent in income flow from electronic transactions in the first six months of the year making N5.386 billion as against N2.008 which it made in the comparable period of 2016.
Zenith Bank also made N8.32 billion from account maintenance charges in the first half of the year compared to N8.92 billion which it made in the H1 period of 2016. GTB increased it income flow from account maintenance charges from N3.89 billion to N4.87 billion.
The Central Bank of Nigeria (CBN), earlier in the year had reviewed the Guide to Bank charges cutting down what customers pay for electronic bank transactions although it retained the account maintenance fee which banks started charging after the phasing out of commission on turnover in 2016.
The apex bank in the revised guideline cut the charges on internet banking transactions to N50 from N100 and Real Time Gross Settlement (RTGS) to N500 from N700. It however increased charges on card maintenance fees from N100 annually to N600 annually.


Four Nigerian banks are showing signs of distress, MPC

It seems the days of distress are back with us in Nigeria. The last time we had this type of distress was during the tenure of former Governor of (Central Bank of Nigeria) CBN, Mallam Lamido Sanusi, now Emir of Kano.  The CBN revealed this on its website, but refused to disclose the names of the banks affected

Four commercial banks in the country are operating with too many non- performing loans on their books and with liquidity ratios below the minimum requirement , two members of the Central Bank of Nigeria ’ s Monetary Policy Committee have said in statements on the bank ’ s website.
The two MPC members, Dr . Doyin Salami and Prof . Balami Dahiru Hassan, did not name the lenders, but said the four banks together were equivalent to at least one Systemically Important Bank.
Their statements were part of those of eight members of the MPC published late on Tuesday.

According to Hassan , financial sector stress tests showed that the Capital Adequacy Ratios for the nation ’ s banking industry worsened to 11 . 51 per cent in June, from 12. 81 per cent in April, as against a regulatory minimum of 15 per cent for banks with international licences.
He said , “ The financial performance indicators showed that when the four outlier banks were removed , the CAR , NPLs ratio and the Liquidity Ratio are all above the prudential requirement .
“ The banking sector liquidity ratio showed that all DMBs registered above the minimum of 30 per cent Liquidity Ratio with the exception of four outlier banks . The stress test , therefore , shows that the Deposit Money Banks are less resilient to shocks . ”
Hassan stated that the NPLs stood at 15. 07 per cent in June compared with the five per cent regulatory limit .
Salami , on his part, said the ratio stood at 8 . 17 per cent when excluding the four lenders in question .
He stated , “The Financial System Stability Report by the CBN staff highlights one of the biggest challenges with, which the central bank must grapple.
“ At slightly over 15. 0 per cent , the portfolio of the NPLs as a proportion of the total loan book of banks remains above the regulatory maximum and continues to rise . Whilst the CBN staff continue to note that once the figure is discounted for the impact of ‘ four outlier banks ’ , the NPL ratio drops to 8 . 17 per cent . ”
The International Monetary Fund had urged Nigerian policymakers to quickly increase the capital of undercapitalised banks and put a time limit on regulatory forbearance after it said last month that four banks were under – capitalised .
Union Bank of Nigeria Plc on Wednesday started a N 50bn share sale to existing shareholders to enhance its regulatory and working capital .

Anambra Least Foreign And Domestic Indebted State. Lagos, Osun, Highest -NBS 

The National Bureau of Statistics (NBS) in its report on Nigerian Domestic and Foreign Debt – June 2017 data yesterday, said Nigeria’s foreign debt stood at $15.05 billion, while the domestic debt portfolio was put at N14.06 trillion in June this year.
This represents a growth of $3.64 billion and N0.04 trillion respectively within a six-month period.

The NBS showed that $9.67 billion of the debt was multilateral; $218.25 million, bilateral, while $5.15 billion was from the Exim Bank of China, credited to the Federal Government.

Federal Government debt accounted for 74 percent of Nigeria’s total foreign debt while all states and the Federal Capital Territory (FCT), accounted for the remaining 26 percent.

Total Federal Government’s debt accounted for 78.66 percent of Nigeria’s total domestic debt, while all states and the Federal Capital Territory (FCT), accounted for the 21.34 percent balance.

A breakdown of the Federal Government domestic debt stock by instruments reflected that N7.5 trillion or 68.41 percent of the debt was in Federal Government Bonds. About N3.3 trillion or 29.64 percent are in treasury bills, while N215.99 million or 1.95 percent are in treasury bonds.

Lagos State has the highest foreign debt profile among the 36 states and the FCT, accounting for 37 percent; Kaduna, 6 percent; Edo, 5 percent; Cross River, 4 percent; and Ogun, 3 percent, followed closely.

Lagos State had the highest domestic debt profile among the thirty-six states and the FCT, accounting for 10.39 percent; Delta, 8.04 percent; Akwa Ibom, 5.18 percent; FCT, 5.09 percent; and Osun, 4.90 percent, followed in that order.

10 Tips Job-seekers Must Follow If They Want To Get A Meaningful Job 

By Patrick Okunima

1. Applying directly to job postings should represent no more than 20% of what you do. Getting referred to a job is 5-10X more effective than applying directly. If you’re going to apply, only apply to jobs when you’re a perfect fit for the skills and experience listed on the job description.
2. Leverage your understanding of the recruiter’s role. Many recruiters are gatekeepers who don’t know the job and will just box-check your skills and experiences. Others are extremely talented, who want to work with the best people to craft great career moves. You must avoid the former and seek out the latter.
3. Implement a 20/20/60 job-hunting plan. A job hunting plan requires a performance-based resume, an understanding of how recruiters find candidates, and applying through the backdoor. Networking is the key to the backdoor. It must represent 60% of what you need to do.
4. Focus on the job, not the money. It’s better to be underpaid than overpaid. Getting promoted or obtaining a big compensation increase will only occur after you’ve demonstrated great performance. You need to put yourself into these situations. Ignore anyone who says otherwise.
5. Present your strengths and weaknesses via short stories. No one believes general statements. You must validate each of your strengths with a specific example of how it was used in a real job situation. In addition, you need to demonstrate how you’ve turned your weaknesses into strengths. Never say you don’t have any weaknesses! It means you’ve stopped growing.
6. Divide and conquer by asking the universal question. Very early in the interview, or phone screen, you must ask the interviewer to describe the focus of the job, some of the big challenges, and how the new person’s performance will be measured. Pick at least two from this list. Then prove each is a core strength using the SAFW response below.
7. Practice the universal answer to any question. You need to be able to prove every strength with a specific example. Form your answer using the SAFW two-minute response: Say A Few Words – Statement – Amplify – few Examples – Wrap-up.
8. Weave the 10 Best Predictors of Job Success into Your SAFW Response. I just wrote a post for interviewers on how to evaluate your answers. Make sure you have an example proving you possess at least three or four of these strengths. Then during the interview ask if these traits are important for on-the-job success. Of course they will be. Then give your example. Note: this is a slam dunk!
9. Use the phone screen to minimize the impact of a weak first impression. Even if you make a good first impression, it’s important to ask the universal question (see above) early in the phone screen. Answering it correctly will increase the likelihood you’ll be invited to an onsite interview. This will help focus the actual interview on your past performance, instead of box-checking your skills and experience, or judging you on first impressions.
10. Uncover any concerns before the end of the interview. To determine where you stand, ask the interviewer about next steps. If they’re not specific, you probably won’t be called back. In this case, ask the interviewer what’s the biggest concern he/she has about your background. Then ask how the skill, trait or factor mentioned is used on the job. To overcome the concern, you’ll need to use the SAFW two-minute response to prove you can handle the requirement.
Getting a job for some is no fun. For all, it’s hard work. But working hard on the wrong things is a waste of time. So rather than complaining, take some advice from Jim Rohn: “Things will get better for you, when you get better.” Learning the ten techniques above is a great way to start.

CBN releases new guidelines on mobile money transaction and balances

THE Central Bank of Nigeria (CBN) has reviewed daily mobile money wallet transaction and balance limit, as well as the Bank Verification Number (BVN) requirement for mobile money wallet holders.

In a circular to all mobile money operators, signed by the Director, Banking and Payments System Department, CBN, Mr. Dipo Fatokun, the apex bank explained that it was reviewing the requirements in line with its initiative to enhance access to financial services through the Mobile Money Services.
CBN stated: “In line with the initiative of the bank to enhance access to financial services through the Mobile Money Services, the daily transaction limit and balance limit on mobile money wallets have been reviewed to afford users of Mobile Money Services, more flexibility in the use of mobile money wallet.”
The revised limits on transaction and balances, shows that for Know Your Customer (KYC) level-1, daily cumulative transaction limit is N50,000 while cumulative balance limit is N300,000, in line with the three-tiered KYC requirements. For KYC level-2, daily cumulative transaction limit is N200,000 while cumulative balance limit is N500,000.
The revised limits for KYC level-3, according to the circular, are: N5 million daily cumulative transaction limit while cumulative balance is unlimited.
The circular dated September 7, 2017 further stated that BVN is not required for wallet holders on KYC level-1, while those on KYC levels-2 and 3 are mandated to have BVN. “Furthermore, the bank hereby clarifies that the Mobile Money wallet holders on Tiered KYC level-1 are not required to provide Bank Verification Number as part of the KYC documentation, while BVN is mandatory for Mobile Money wallet holders on KYC-levels 2 and 3,” the circular further stated.

Oando Shareholders Pass Vote of Confidence on Wale Tinubu  

Despite the brief protest carried out yesterday by a group of shareholders under the aegis of Oando Shareholders Solidarity Group at the venue of the 40th Annual General Meeting (AGM) of Oando Plc, held in Uyo, Akwa Ibom State, the company went ahead with its AGM, where other shareholders of Oando passed a vote of confidence on Tinubu and his management team.All of the company’s resolutions were also passed as contained in the meeting’s agenda.

The shareholders who were not part of the protest, however, advised the feuding investors in Oando’s holding company to reconcile in order to forestall further erosion of the company’s value.

The leader of the protesters, Mr. Francis Michael said: “We are here to protest and press for the need to change the management of the company over gross mismanagement and abuse of   corporate governance.”

According to him, they had read several reports on the gross mismanagement of Oando Plc by the present management of the company.

“For the past three months, there have been reports of huge financial mismanagement, very high debts and cooked books by Oando Plc.

“As it stands, Oando is in a very bad shape although the company’s report points to the contrary.  We and our relatives have lost so much as a result of the mismanagement.

“The value of our shares today stands at less than 10 per cent of what it used to be. It has plunged from a high of N95, less than seven years ago, to as low as a little above N6 per share.

“In the face of this, the management and board are feeding fat on the company, earning huge salaries and rewarding themselves handsomely,” Michael said.

He added that there was strong uncertainty regarding Oando as a going concern, a situation, which he said was clear from the 2015 and 2016 reports as pointed out by its auditors.

“We therefore call on the present CEO of Oando Mr. Wale Tinubu to step down and allow a competent hand to manage the affairs of the company to save millions of Nigerians from further loss of their hard earned money.

“We are also calling on the Securities and Exchange Commission (SEC) and the Nigerian Stock Exchange (NSE) to commence the immediate investigation of the company to determine the true state of the financial position and corporate practice.

“We also demand the rejection of the proposal concerning the remuneration of the CEO and directors of Oando Plc and the rejection of the 2016 annual report and accounts and the need to convene an Extraordinary General Meeting within the shortest possible time to address the issue of mismanagement and abuse of corporate governance in the company,” he said.

The shareholders of Oando have been at one another’s throats, following accusations and denials of indebtedness and mismanagement of the company.

Leading the charge are the Chairman of MaxAir, Alhaji Dahiru Mangal, on the one hand, and Mr. Gabriele Volpi, who through his company, Ansbury Investment Inc., invested over $700 million in Ocean and Oil Development Partners Limited (OODP BVI), a special purpose vehicle registered in the British Virgin Islands.

Through its investment, Ansbury acquired a 61.9 per cent stake in OODP BVI, while a company owned by Tinubu, Withmore Limited, holds 38.10 per cent of the stake in OODP BVI.

Volpi further alleged that he also lent $80 million to Withmore to enable Tinubu, whom he said he trusted at the time, to acquire the 38.10 per cent stake in OODP BVI.

Tinubu had approached Volpi to invest in the British Virgin Islands-registered firm when Oando was seeking to acquire ConocoPhillips’ upstream oil and gas assets in Nigeria for $1.5 billion, a deal eventually consummated in 2014.

OODP BVI, in turn owns 99.99 per cent of the shares of Ocean and Oil Development Partners Nigeria Limited (OODP Nigeria), which holds 55.96 per cent of the shares in Oando, the oil and gas company listed on the Nigerian and Johannesburg Stock Exchanges.

Ansbury is now claiming to own 100 per cent of the shares of OODP BVI and 99.99 per cent of OODP Nigeria over Withmore’s inability to repay the $80 million loan, effectively whittling down Tinubu and the Deputy Managing Director of Oando, Mr. Omamofe Boyo’s interests in Oando Plc to 1.2 per cent.

The shareholders of Ansbury had also accused Tinubu and his deputy of financial mismanagement and cooking the books of the quoted company, a position that was buttressed in two petitions written to SEC seeking to stop Oando’s AGM and the removal of Tinubu and Boyo, among other directors of the company.

However, SEC ruled that the AGM could go ahead as planned, but added that nothing stops it from reversing the resolutions passed at the AGM should its ongoing investigation show that Oando has indeed been mismanaged or its books falsified.

Tinubu, however, had maintained that contrary to Ansbury’s claim, the equity holding in OODP BVI has Withmore holding 60 per cent of the equity and Ansbury with 40 per cent, a fact which he says was reflected in Oando Plc’s annual accounts.

He also stated that under the terms of the loan agreement, the $80 million, with a five year-tenure, was not due for repayment, prompting the shareholders to proceed to arbitration for a resolution of the dispute.

Tinubu had further dismissed allegations of financial impropriety, stating that a representative of Ansbury was a director of Oando for three years and approved its accounts, at least up till 2015.

But in their independent report, Oando’s external auditors, Ernst &Young, had raised a material uncertainty related to the viability of the company.

“We draw the attention to Note 45 in the financial statements, which indicates that the company reported a comprehensive loss for the year ended December 31, 2016 of N33.9 billion (2015: loss of N56.6 billion), and as at that date, its current liabilities exceeded current assets by N263.8 billion (2015: N260.4 billion).

“As stated in the note, these conditions, along with other matters, indicate that a material uncertainty exists that may cast significant doubt on the company (and Group’s) ability to continue as a going concern,” the auditors said.

Yet, some of the minority shareholders, who spoke yesterday during the AGM called for a reconciliation of the feuding investors who hold the controlling interest in Oando to forestall further erosion of the company’s value.

They also called for more disclosure and strict adherence to corporate governance tenets.

Mr. Nonah Awoh, a shareholder, particularly noted that disclosure of information regarding third party-related activities and the shareholding structure, among others, would allay suspicion and the present lack of trust and confidence in the board and management by some shareholders.

“Going forward, there should be disclosure on what you are doing. That way, those who want to sympathise with you will sympathise with you.

“It is important that you also disclose those who are on the main board and those that sit on board of the other subsidiaries. It is also pertinent to know how long a director sits on the board. Is it for eternity or not?” Awoh asked.

Another shareholder, Dr. Faruk Umar, President of the Association for the Advancement of the Rights of Nigerian Shareholders (AARNS), said: “We must have unity of purpose. If you have invested in Oando, you won’t want this company to go down.

“We are appealing to all parities, after this AGM, they should reconcile. This company must survive. We have put in our money. And this company should not be allowed to lose more value,” he pleaded.

Also speaking, the National Coordinator of the Progressive Shareholders Association of Nigeria (PSAN), Mr. Boniface Okezie, said: “Today is a sad day because if you look at the agenda, there is no dividend payout.

“But I want to appeal at the same time that we should be patient and pray that the company’s fortunes improve so that we can start receiving dividends.

“The management should be focused and take advantage of the recovery in oil prices and perform better,” he stated.

Okezie also appealed to the Chairman of Oando and Alake of Egbaland, Oba Michael Gbadebo, who is a traditional ruler to use his good offices to reconcile the shareholders.

In his report to the shareholders, Gbadebo said the company had aligned its operations with a long-term strategic view by divesting from their energy services business and partially from its downstream business, as well as optimising its balance sheet through the restructured N108 billion-syndicated medium-term loan.

“We will focus on further reduction of our debts to create a platform for long term profitability while driving growth via our dollar-denominated upstream and downstream trading businesses,” the chairman assured the shareholders of the company.

Also speaking, Tinubu stated that the protest was uncalled for, stressing that SEC had approved that the AGM should hold after examining the petition written by Ansbury.

He assured the shareholders that the company’s story had been that of resilience, innovation and growth “and I am assuring you that we are fully committed to repositioning your company towards sustained growth moving forward


Nigeria learn from Tanzania’s economic sustainable recovery, MAN Dg

Tanzania is set to take Nigeria through stages of sustaining economic recovery following its exit from recession in order to prevent a relapse.
The President, Manufacturers Association of Nigeria, Dr. Frank Jacobs, stated this on the sidelines of the pre-Annual General Meeting media briefing in Lagos on Wednesday.
Jacobs said the former President of Tanzania, Mr. Benjamin Mkapa, who is billed to deliver a lecture titled, “Sustaining Economic Recovery: Gleaning from the Tanzanian Experience,” led his country out of economic challenges and placed it on the path of sustainable growth.

Tanzania had suffered an economic recession in the 1980s as a result of the 1979 war with Uganda.
Failing to secure a loan from the International Monetary Fund in 1979, the country launched its first Self-Guided National Economic Survival programme as well as economic reforms aimed at trade liberalisation in 1985.
Prior to Mkapa’s assumption of office in 1995, Tanzania’s economy was state-controlled but by 2005 when he completed his tenure, the economy moved from a command economy to a market economy.
The Tanzanian economy, which is driven mostly by agriculture (agriculture contributes 50 per cent to the Gross Domestic Product), has continued to grow strongly since the 1990s.
The Current GDP per capita of Tanzania grew more than 40 per cent between 1998 and 2007 and overall, real economic growth has averaged about four per cent a year.
Jacobs said the Tanzanian former president who would speak at the MAN AGM themed, “Recovery and Growth of the Nigerian Economy,” would teach valuable lessons about how to sustain the exit from recession.
He said, “Our choice of the speaker was based on his experience in managing an economy that experienced serious challenges like ours.
“We believe that the valuable experience he will share with us will further enrich our macroeconomic policy thrust and our government can learn one or two things from the Tanzanian experience and apply them to addressing our challenges while also adopting our home-grown policies and strategies towards resolving the challenges of the economy.”

Oando’s crisis deepens as one of the core investors asks Wale Tinubu and his deputy to step down

Oando is one of Nigeria’s leading indigenous oil and gas company. There is a board room crisis  going on that may affect the fortunes of the conglomerate if care is not taken.

One of the founders and majority shareholder of Intels Nigeria Limited, operator of the oil and gas logistics terminals in Onne, Rivers State and Warri, Delta State, Mr. Gabriele Volpi, has stepped up his battle against the group chief executive officer of Oando Plc, Mr. Wale Tinubu, over control of Oando, citing alleged mismanagement, cooked books and huge debts, THISDAY has learnt.
Accordingly, Ansbury Investments Inc., a firm set up by Volpi, a multi-billionaire who holds dual Italian and Nigerian citizenship, with extensive interests in oil and gas, ports logistic services and real estate spanning 40 years in Nigeria, has written a petition to the Securities and Exchange Commission (SEC) and is seeking to stop Oando from holding its Annual General Meeting (AGM) slated to take place in Uyo, Akwa Ibom State on September 11.

He is also pushing for the removal of Tinubu and his deputy, Mr. Omamafe Boyo, over their inability to repay an $80 million loan, which he lent them.

However, Oando has pushed back on the allegations, with a senior official in the company informing THISDAY that Oando’s AGM would go ahead as planned and accused Volpi of resorting to blackmail in order to force Tinubu and his deputy to buyout Ansbury.
In 2012, Volpi had through his company, Ansbury, invested about $700 million in Ocean and Oil Development Partners Limited (OODP BVI), a special purpose vehicle registered in the British Virgin Islands, by acquiring a 61.9 per cent stake in the firm, while a company owned by Tinubu, Withmore Limited, held 38.10 per cent of the stake in OODP BVI.
Volpi, who also has extensive business interests in Angola, is alleging that he lent $80 million to Withmore to enable Tinubu, whom he said he trusted at the time, to acquire the 38.10 per cent stake in OODP BVI.
Tinubu had approached Volpi to invest in the British Virgin Islands-registered firm when Oando Plc was seeking to acquire ConocoPhillips’ upstream oil and gas assets in Nigeria for $1.5 billion, a deal eventually consummated in 2014.
OODP BVI, in turn, owns 99.99 per cent of the shares of Ocean and Oil Development Partners Nigeria Limited (OODP Nigeria), which holds 55.96 per cent of the shares in Oando Plc, the oil and gas company listed on Nigerian and Johannesburg Stock Exchanges.
THISDAY gathered that the grievances of Ansbury, which is now claiming to own 100 per cent of the shares of OODP BVI and 99.99 per cent of OODP Nigeria over Withmore’s inability to repay the $80 million loan, effectively whittling down Tinubu and Boyo’s interest in Oando Plc to 1.2 per cent, stemmed from the alleged mismanagement of the company by Tinubu and Boyo.

Ansbury, it was also learnt, is said to be alarmed over the alleged “huge financial mismanagement, very high debt and cooked books” of Oando.
Ansbury is alleging that Oando is in a very bad shape, despite the official financial communications from the company to the contrary.
It was further learnt that Ansbury took the decision to remove the CEO, and sack the entire board and management since March 2017.
Apart from removing Tinubu and sacking the board of directors, Ansbury is also planning to reject any proposal seeking approval for the remuneration of the CEO and other directors of Oando and also reject the approval of the company’s 2016 annual report at its next AGM.
Speaking on the crisis of confidence between the shareholders, a source in Ansbury said: “The situation is that Withmore never repaid the loan, and Ansbury is struggling to recover the $80 million and the shares of OODP BVI.

“So the reality is that Ansbury controls 100 per cent of OODP BVI, that control the 99.99 per cent of OODP Nigeria, that is the main shareholder of Oando Plc.
“As far as we are concerned, Oando, in which we are the majority shareholder due to our indirect interest in the quoted company, is being mismanaged, its accounts are being cooked, and it has huge liabilities that have eroded the value of the company.”
To buttress this claim and stop the AGM from going ahead, Ansbury on May 3rd and 4th submitted a petition to SEC in Lagos and Abuja, respectively, in which it drew the attention of the regulator to the alleged state of affairs in Oando and sought its intervention.
THISDAY further gathered that Tinubu is aware of the plan by Ansbury to remove him and was said to have commenced moves to stop his ouster.
Aware that Ansbury is not in a position to take control of OODP Nigeria at the moment, Tinubu was said to have initiated steps to retain his control over Oando.
The Oando CEO was alleged to have quickly called the AGM in order to obtain the approval of the shareholders of the company’s 2016 annual report, keep himself as CEO of the company, retain the current board of directors who are in his corner and get approval for his remuneration and that of the directors.
Tinubu was also alleged to have approved the notice of the AGM with the minimum notice and slated it to take place in Uyo, which the Ansbury source described as a remote location, in order to keep the latter’s shareholders at bay.
According to a notice of the 40th AGM of Oando, which was signed by its chief compliance officer and company secretary, Ms. Ayotola Jagun, and published on August 15, the AGM will be held in Akwa Ibom State Hall, Uyo on September 11.
THISDAY, however, gathered that in order to checkmate Tinubu, Ansbury has asked SEC to put the AGM on hold to allow Ansbury to take over OODP Nigeria and to avoid a meeting where the major shareholder is not allowed to attend.
In the first petition to SEC, Ansbury alleged serious financial abuse and accused the management of Oando of gross abuse of corporate governance tenets in its running of the company.
The petition was titled “Serious Concern to Corporate Governance Existence, Gross Abuse of Corporate Governance and Financial Management in Oando Plc – Request for Urgent Regulatory Intervention.”
In the petition, Ansbury cited page eight of the company’s annual report of 2016, alleging that the “strong uncertainty regarding the going concern status of the group had already arisen in 2015 and strengthened in 2016 as clearly pointed out by the auditors in their report”.
The petitioners also alleged that “operational management closed with a consistent loss of over N7.68 billion, significantly worse than 2015”, arguing further that “the net loss for the year from continuing operations in 2016 amounts to N25.8 billion, adding to the net loss of N34.9 billion of the previous year (2015)”.
Ansbury also informed SEC that Oando’s “current liabilities as at December 31, 2016, far exceeds the current assets by N263.7 billion, confirming serious financial imbalance from the previous financial year”.
It added: “The profit for the year 2016 (N3.94 billion) only derives from the positive flow generated from the sale of consistent part of the group’s assets, which was not enough to fully repay outstanding debts and has significantly decreased the possibility of generating future cash flows to repay current liabilities.
“The already severe debt situation of the group highlighted by the management under notes will deteriorate even further if certain potential liabilities became due, such as: (i) the increase in the liabilities deriving from a price adjustment inherent in the sale of downstream business (already valued at N50 billion and in accordance with the counterpart); (ii) pending legal suits against the group (equal to N608.2 billion), have a high possibility to succeed against the company as projected by the management. The total value of suits pending is higher than the current sales of the entire group.
“Based on the foregoing, we hereby request that SEC should urgently intervene and adopt all measures deemed appropriate in order to protect the interest of investors, which is one of the principal mandates of SEC, most especially the interest of shareholders of Oando Plc in view of the severe financial situation and imminent disruption of the affairs of the company, which the current management of the company does not seem to be able to cope with.”
On the allegation of gross abuse of corporate governance tenets levelled against Tinubu and his management team, Ansbury argued that despite the severe financial situation of the company, the management has kept on increasing the remuneration of directors.
“This action and the progressive impoverishment of the group seems directed towards a liquidation of the latter more than restructuring and reorganisation, taking into consideration the fact that both the strategy adopted by the management till now and the projected divestiture are not sufficient to service the existing debt,” the petitioners explained.
Ansbury urged SEC to convene an extraordinary general meeting (EGM) urgently to sack the entire board and management so as to save the company from imminent collapse.
In another separate petition dated August 17, 2017, and signed on behalf of Ansbury by Andrea Carollo, the investment firm also urged SEC to postpone Oando’s AGM, pending the resolution of the shareholding matter.
“Further to our previous letters on the captioned matter, we write to request your urgent assistance in postponing the Oando AGM, pending the resolution of the shareholding matter previously raised. We reiterate the statement made in our previous letters that Ansbury holds 61.90 per cent of the shareholding in OODP BVI, which in turn, holds 99.99 per cent of the shares in OODP Nigeria, which in turn holds approximately 56 per cent of Oando shares.
“Notwithstanding this, Ansbury has no visibility of, or input in the management of Oando, or in fact OODP Nigeria,” Ansbury explained in the second petition.
In response to Ansbury’s petitions, SEC constituted a task force and invited the representatives of Ansbury to give reasons why SEC should intervene and stop the AGM.
THISDAY obtained the minutes of the 10-man task force, which had Mr. Charles Udorah as its chairman.

Others who sat on the task force included Nasiru Muhammed, Abubakar Ambursa, Tafa Maikyau, Mr. Rotimi, Bisi Makojuola, Mr. Somibi, Mr. Silvano Bellinato, Mr. Mike Epelle, Mrs. Joke Aliu, and Mr. Cephas Caleb.
According to the minutes, the task force met at the fourth-floor meeting room of SEC Towers in Abuja on August 30, 2017, and after deliberations, it came up with what it called “possible steps to be taken going forward”.
One of the three steps it suggested was that Ansbury should write a letter to Oando in response to the notice of the meeting stating that there is no valid representation for OODP Nigeria.
The task force also suggested that “Ansbury should file an action in court for an order postponing the AGM, or in the alternative, for an order of injunction restraining Oando Plc from entertaining any representation from OODP Nigeria during the AGM”.
The task force also advised Ansbury to prepare a detailed written submission stating the grounds upon which SEC should postpone the AGM.
“Ansbury’s request to postpone the meeting will effectively constitute SEC into a court of law. The proper thing for Ansbury to do is to seek legal redress in a court of law. Further, Ansbury has other causes of action against Withmore.
“For example, even the ‘police report’ attached to the letter written to Ansbury and signed by Wale Tinubu and Omomafe Boyo was not a police report but a mere letter written by a private company and signed by a retired DSP.

“This is clearly false information that can be successfully challenged in court,” the task force said.
The task force further held that the company (Oando) is a going concern and SEC could always intervene to reverse decisions that were not properly arrived at the AGM when it concludes its investigation.
“Suspending the AGM is not likely to resolve or aid the resolution of the issues raised in the resolution. Where the AGM holds, will not affect SEC’s powers to subsequently deal with the issues raised in the petition as it deems fit,” the task force concluded.

Nigeria spends N5tn yearly on off-grid diesel generation — Report

Stanley Opara files this report for Punch Newspaper

Aside from the massive recurrent national grid investments in Nigeria running into several billions of the United States dollar, the country is said to be spending N5tn ($14bn) on off-grid diesel generation yearly.
Off-grid diesel generation refers to systems that have no connection with the national utility grid, but provide electricity for homes, businesses, or applications.
This assertion was made by the Regional Vice-President for Central and Southern Africa, Rosatom, Mr. Viktor Polikarpov, in an interview with our correspondent on Nigeria’s energy investments and the accruing dividends.

According to him, primary energy consumption in Nigeria is largely satisfied by traditional biomass and waste (typically consisting of wood, charcoal, manure, and crop residues) and accounts for 74 per cent of the energy mix.
This high share, he stated, represented the use of biomass to meet off-grid heating and cooking needs, mainly in rural areas.
Polikarpov said, “The International Energy Agency estimates that 115 million people in Nigeria rely on traditional biomass and waste as their main sources of energy. The other 26 per cent is made up of oil, gas and hydropower. In recent years, the electricity production from hydroelectric sources has plunged due to water shortages and climate change.”
He urged the country to leverage the nuclear power generation option, saying that for Nigeria to embark on the path of dynamic development, it needed more than 60,000 megawatts to ensure sustainable growth. The Federal Government aims to electrify at least 80 per cent of the country’s population by the year 2035.
He added, “In order to achieve this, the country’s energy mix should be diversified to include all available resources; and this should include traditional sources as well as non-traditional sources such as the renewable and nuclear.
“There are three important factors that should be considered when designing the optimum energy mix. The energy trilemma, as it’s otherwise referred to, is made up of economics, security of supply and environmental impact. Not many sources alone can bring together these three factors and therefore a mix is crucial.
“Hydrocarbons such as coal, for instance, are economically viable and offer stable power but are unfortunately very harmful for the environment. The renewable sources such as wind and solar are great for the environment but are intermittent by nature, and only produce electricity when the wind is blowing or the sun is shining, and there are unfortunately no economically viable methods of storing power at this point.
“Nuclear is one of the only power sources capable of ticking all three boxes and is therefore crucial to help balance any energy mix. In order to combat the current energy challenge faced by Nigeria, the country needs access to affordable and clean base-load power.”
The Rosatom official said base-load generation is important to the economic development of any country and is commonly described as the minimum amount of power needed by the grid to effectively run an economy.
According to him, base-load options, which are generally limited to hydro power, fossil fuels and nuclear, will enable the country to move towards nuclear energy.
According to Polikarpov, investing in nuclear projects will stimulate cash flows to the regional and national budgets that can surpass direct investments by a significant margin.
The actual amount of investments, he said, depended directly on technologies involved, adding that a recent analysis conducted by the Nuclear Energy Institute found that nuclear plants created some of the largest economic benefits when compared to all other generating sources due to their sheer size and the number of workers needed to construct and operate the plants.
Quoting the NEI report, he said, “The operation of a nuclear plant requires the highest number of skilled workers per kWh produced when compared to any other technology and on average, these jobs pay 36 per cent more than the average salaries in the area where the plant is constructed.
“New plant construction creates a direct demand for thousands of locally sourced skilled labourers, such as welders, pipe fitters, masons, carpenters, mill wrights, sheet metal workers, electricians, iron workers, heavy equipment operators and insulators, as well as engineers, project managers and construction supervisors.
“There will also be thousands of indirect jobs created through localisation, including engineering services and the manufacture of components including pumps, valves, piping, tubing, insulation, reactor pressure vessels, pressurisers, heat exchangers and moisture separators.”

How D’banj contributed to Nigerian music multi million dollar enterprise.

A music buff and a practitioner  responded to the story of Davido revealing how D’banj wanted to sign him on his label but it did not work out. This response is quite revealing of how signing of artiste was not properly structured in the music industry at the beginning when it was evolving.

Read his contribution:

The way i see it, it wasnt 2014, just a case of slip of tongue on part of Dbanj…guess maybe it was when Davido was 18 or 19.
Moreso, during the Mo-hit era, ‘signing’ any artiste was a case of oral agreement which was one of Dbanj’s biggest career mistakes: he signed everyone in the Mohits – Dr Sid, Wande Coal, D’ Prince, Kayswitch even when Don Jazzy did not really want to do so as he was skeptical of taking such risks. infact, most people didnt know that Dbanj’s mother was the most important support the Mohit crew had when Dbanj and Don Jazzy came back to Nigeria – she gave her Maryland house for the entire Mohit crew to stay pending when they hit their success because against all odds and even Dbanj’s father reluctance, she supported her son solidly in his quest for music success. Remember ‘Why Me’ Video? The Toyota Previa in that video was Dbanj’s mum car which she gave them to convey themselves around when no one else was there to support them. She was therefore the biggest investor in Mohit empire when likes of Dbanj and Don Jazzy were penniless and were even ready to sell Mohit to Storm Records for N1 million because they desperately wanted to ‘make’ it. However, their story changed forever at the Ali Baba Show of 2007!
Dbanj’s legendary status in the modern-music era of African music is beyond mere comprehension which was also sealed by MTV based award of Legendary status t him – When the likes of Tuface, Psquare, etc were still charging N50,000 to maximum of N200.000 per show, he increased the stake to N1 million or Nothing and steadily till he started charging N10 million and then music practitioners and artistes’ eyes opened
He was the first artiste to get a multi-million Naira endoresoment – Powerfist in 2006 beating Femi Kuti to same endorsement as Femi was the original artistes in PZ’s plan before going ahead to clinch Glo’s 70 million Naira deal plus a Range Rover and other entitlements
His direct and indirect impact has affected the careers of artistes like Davido, Olamide, Wizkid, Wande Coal, Naeto C, M.I Ikechukwu even the legends like Tuface and Psquare. Go ask them, the mere mention of Dbanj to most of these superstars and they tell you how Dbanj has forever affected their lives and careers (except of course forever bitter minds among them)
Although, others see it as a failed project or misadventure, Dbanj’s Good Music signing was infact the deal-breaker for new generation of music artistes – selling new new African music culture to the global market. When you hear some ‘ignoramuses’ referring to Dbanj as Kanye West houseboy, i just laugh. If only Don Jazzy could see the future…if only he could understand this bullish visionary called Dbanj, they would be conquering Africa and global market together – with Don Jazzy supplying the iconic African percussion sound and stagemaster Dbanj bringing his A-game Enigmatic prowess to the fore – with the two partners writing the names in gold forever in the history of Africa
A young African boy without any major label backing bold enough to cause disruption in the African music industry is now building his own fantastic music business structure post-Mohit to sell the addictive African sound to the global market. I am closely following on what this Dbanj will use the CREAM Platform to develop in the music world. Like he said, you never see him coming through
One word to sum Dbanj: He will never give up in his Quest to be the Coca-cola of music business and the ElChapo grandmaster of African sound movement.