BoI’s facility boosts local cables production by 30,000 tonnes

BoI boss, Rasheed Olaoluwa

THE Bank of Industry’s s intervention in the nation’s real sector, especially in the cables and wires industry, has increased local production of electric cables by 28,000 metric tonnes following the expansion of Coleman Wires and Cables factory from 2000 metric tonnes to 30,000 metric tonnes.

Speaking during the official commissioning of Coleman Wires and Cables factory, Arepo 2, in Ogun State, Managing Director, BoI, Rasheed Olaoluwa, said: “BoI is very pleased to have been instrumental to making this factory a reality. As a lender, you are happy, when you give out a loan and the loan has been well utilised for the purpose of which it was taken.

 “We are very happy to see that the facility we have disbursed to this company has turned into a reality.”

He added that the support of BoI to the company is consistent with the Development Finance Institution’s mission to transform the nation’s industrial sector, adding that the company has been able to shoot up its production capacity from 2000 metric tonnes to 30,000 metric tonnes.

His words: “We are very proud of the achievement of the company. From inception, the company started roughly with about 2000 metric tonnes of wires and cables and today I am very proud to announce that this company has grown from 2000 tonnes to over 30,000 tonnes of cable.”

According to him, the cable company was able to achieve this feat by maintaining and producing high quality standards of cable acceptable in any part of the world.

“It is no accident that the company has become the largest producer of cables and wires not only in Nigeria but the entire West African region. This company is a very innovative one achieving great strides in their business operations over the years and has also improved on“their activities and has also gained efficiency over the years,” he said.

The Managing Director, Coleman Wires and Cable, George Onafowokan, stated that “Our viewpoint is to satisfy local demand by also removing the import element. Arepo 2 is a continuous process of our innovation and commitment to the Nigerian market. With this expansion, we are telling the world that is possible for Nigerian companies to succeed in“engineering business and we are not stopping here,”

Source: Vanguard Business-By Franklin Alli

IFC Nigeria’s portfolio hits $1.7bn – Lore

 

International Finance Corporation (IFC), a member of the World Bank has said that the corporation’s total portfolio in Nigeria stood at 1.7 billion dollars (N334.87 billion). Mrs Eme Essien Lore, Country Manager, IFC Nigeria, made the disclosure in an interview with newsmen on Thursday in Lagos.

She said that the total portfolio was for IFC 2015 fiscal year from July 2014 to June 2015. Lore said that the amount was invested in key critical sectors of Nigeria such as infrastructure, commercial banks, microfinance, insurance, manufacturing, agribusiness, health and education.

“IFC total portfolio in Nigeria today stands at 1.7 billion dollars and our investment sectors include infrastructure, commercial banking, microfinance, insurance, manufacturing, agribusiness, health and education,’’ Lore said. The country manager told newsmen that the corporation would continue to invest in its key focus areas in the country to ensure growth and development.

“Going forward we will continue to invest in our key focus areas in the country,’’ she said. Lore said that IFC would support the country’s quest to move away from dependence on oil and gas. She stated that IFC would assist in developing infrastructure, especially power, through investments and advice that would help in attracting private investments.

According to her, infrastructure, especially power has been identified by the private sector in several surveys as the critical constraint to private sector development. Lore said that it would support the country’s quest to move away from dependence on oil and gas, adding that it would help to open up the agricultural sector for more private participation.

“Agriculture has been a critical contributor to the country’s GDP and could be said to be the largest employer in Nigeria, especially the rural poor. “So, we will help the Federal Government achieve its goal of diversifying the economy from the oil and gas sector by placing emphasis on supporting agribusiness,’’ Lore said.

She also said that the corporation would continue to invest in the financial sector so that they could support the Micro, Small and Medium Enterprises (MSMEs) sector. “At IFC, we believe one of the critical sectors that hold the key to achieving our goal of reducing poverty and shared prosperity is MSMES,’’ Lore said.

Source: Vanguard Business

The new dimension to e-fraud

 

DEAR customer, due to the new BVN policy by the CBN your account has been deactivated and to reactivate, call…”

The above text message is the latest bait used by fraudsters to lure unsuspecting bank customers to disclose their bank account details, especially their debit or credit card details and their Personal Identification Number (PIN), so that they can gain unauthorized access into the accounts and fraudulently withdrew the money therein.

The fraudsters realized that many bank customers may not have enrolled for the BVN, and hence decided to take advantage of the warnings from the banks to deny customers that have not enrolled access to their accounts, to lure people into divulging their card details. Thus the BVN deadline and the threat of account deactivation became a potent weapon in the hands of fraudsters.

While it may be difficult to ascertain if any bank customer have fallen prey to this new antic, the enormity of the threat and perhaps the potential impact on the industry, was reflected in a press release issued by the Central Bank of Nigeria (CBN) calling the attention of bank customers to the circulation of such text message.

The press release stated, “It has come to the notice of the Central Bank of Nigeria(CBN) that certain unscrupulous individuals have been sending unsolicited mails and text messages to unsuspecting bank customers, alerting them about deactivation or suspension of their bank accounts due to uncompleted Bank Verification Number (BVN) registration process.

An example of such messages reads thus; “Dear customer, due to the new BVN policy by the CBN your account has been deactivated and to reactivate, call……”

The Central Bank of Nigeria wishes to warn individuals and the general public that those messages are intended to lure bank account holders to reveal their personal details with which the fraudsters could use to defraud them.

Deposit money banks

“The public is therefore warned that neither the Central Bank of Nigeria (CBN) and deposit money banks nor their employees or agents would ever call bank customers or send e-mail/text messages requesting for passwords, card details or personal identification number (PIN). Bank customers are therefore advised to personally visit their banks for any issue requiring disclosure of personal bank details. Please be warned.”

The warning, though necessary, may be too late, and most importantly, it does not address the root of the problem. The real problem is the lopsided communication about the BVN. There is so much emphasis on the deadline for enrollment as if customers that fail to enrol by the deadline won’t be able to enrol again.

Also most of the messages from banks, emphasis the fact that customers that fail to enroll by the deadline will be denied access to their account, with less emphasis on the fact that the customers will be allowed access once he enroll for the BVN.

The October 31st  deadline is not deadline for BVN enrollment, rather it is deadline for liberty to operate accounts without BVN enrollment. After the deadline, enrollment becomes a criterion for operating a bank account and hence it becomes compulsory.

That is what should have been emphasized. Hence, the messages from the banks should be, “From November 1st  2015, only customers that have enrolled for BVN would be allowed to operate their bank accounts”.

By so doing, the fear or threat of not been able to operate your account, which is been erroneously created, would not arise, and thus, the BVN deadline would not be  attractive to fraudsters as a weapon to defraud bank customers.

Vanguard Business - By Babajide Komolafe

ExxonMobil donates e-learning centres to 3 schools in Lagos-Nigeria

 

EXXONMOBIL Nigeria, in conjunction with other stakeholders (Aker Solutions, EPC3 Project Manager) and the CAP Project Consultant, Crestsage Nigeria Limited), recently commissioned three e-learning centres and donated them to three primary schools in Lagos State under the Community Assistance Programme (CAP) on the Erha North Phase 2 Project EPC3.

The three beneficiary primary schools under the programme are Ansar Udeen Nursery & Primary School, Ebute Metta; Awoyaya Nursery & Primary School and Obalende Nursery & Primary School, Ikoyi.

Speaking at the event, Senior Project Manager, ExxonMobil, Mr Wale Bishi, said the programme is another significant step “we are taking in our quest to improve the quality of education available to our young ones through social investment in critical infrastructure required to equip them with the requisite skills for competing in today’s knowledge economy, especially from their early years.”

On the choice of the three beneficiary primary schools, Bishi said: “We specifically selected these schools located in economically challenged neighbourhoods in order to optimize the impact of the vast array of e-learning resources being donated and commissioned today on their pupils, some of whom may not have any prior contact with the equipment in these centres.

“By availing the young ones in these schools with modern facilities comparable to some of the best primary institutions in the country, we are enhancing their chances of competing on an equal footing with their more privileged counterparts and empowering them to contribute meaningfully to the Nigerian economy in due course.

“Apart from building these e-centres to exact standards, they have also been equipped with such facilities as standard computer tables and chairs, monitors, servers, internet modems for wireless connectivity, e-library and e-learning software and BrainFriend software for effective instruction in relevant local curriculum.”

Also speaking, the CEO of Crestsage Limited (CAP Project Manager), Mr Charles Emembolu, said: As Crestsage’s contribution to ensure sustainability of the project, we trained teachers and pupils of the schools under the umbrella of our affiliate, STEM (Science, Technology, Engr & Maths) Organisation TechQuest. Under this initiative, we have trained about 18 teachers and 60 pupils across the three schools.

“Overall, the six pillars of corporate citizenship and social responsibility of safety, quality, integrity, diversity, innovation and sustainability were met by Crestsage in the delivery of this project. For this we at Crestsage are first and foremost grateful to God and to the stakeholders who made this project implementation a huge success.

“It is our dream that this success story is replicated across Nigeria as a balance for economic growth, social development and sustainability. I hope that these young beneficiaries will continue to hav the right level of training and use of the computer and e-learning facility through our collective support.”

Source: Vanguard Education - By Etop Ekanem

General Electric partners AMI to host Media Training on Energy and Infrastructure Coverage

Nairobi, 2nd October 2015- African Media Initiative (AMI) and General Electric (GE) have partnered to boost media coverage in Africa of Energy and Infrastructure issues. Some 20 journalists drawn from the East Africa region will undergo basic training on the Energy sector in Africa, and on using sector data to tell impactful stories that will enrich media content and better inform citizens. The training is set to take place from 9-10 October 2015, in Nairobi, Kenya.

The training will explore the importance of covering the energy sector, the weaknesses identified in coverage of infrastructure and energy-related issues, as well as the use of data and cutting edge technologies to craft and disseminate media messages for audiences across all platforms.

Patricia Obozuwa, Director of Communications for GE Africa said the initiative was part of GE’s efforts to support developmental journalism through capacity building. She said the media if properly harnessed plays a key role in influencing development of societies. As an Energy and Infrastructure company, we are glad to be associated with the Energy and Infrastructure category of the prestigious CNN awards. We believe this training will ultimately help in the quality of entries for subsequent awards” said Obozuwa.

This workshop will be the first in a series of regional training events that GE will sponsor to create an Africa-wide network of journalists specializing in reporting on Energy and Infrastructure.

AMI’s partnership with General Electric will provide the necessary expertise required in shaping media understanding of the Energy and Infrastructure sector. Journalists will be encouraged to publish and broadcast stories that drive the development agenda and clearly outline the critical role that energy and infrastructure play in the growth of national economies.

ABOUT GE

GE imagines things others don’t, builds things others can’t and delivers outcomes that make the world work better. GE brings together the physical and digital worlds in ways no other company can. In its labs and factories and on the ground with customers, GE is inventing the next industrial era to move, power, build and cure the world. www.ge.com

ABOUT AMI

The African Media Initiative (AMI) is a pan-African organization that seeks to strengthen the continent’s private and independent media sector from an owner and operator perspective to promote democratic governance, social development and economic growth.

It does so through a set of strategic activities aimed at transforming the media and communications landscape on the continent. AMI’s overall goal is to promote the development of pluralistic media as a necessary and critical ingredient of democratic governance, as well as economic and human development in Africa.

Source: Vanguard in Sponsored

Top 10 performing stocks

                                                             Nigerian Stock Exchange

FIDSON Healthcare Plc led last week on the league of top 10 performing stocks, rising by 13.67 per cent or N0.41 to close at N3.41 from N3.00 per share. Dangote Sugar Refinery followed with 8.29 per cent or N0.53 appreciation, closing at N6.92 from N6.39; Continental Reinsurance placed third, rising by 5.26 per cent or N0.05 to close at N1.00 from N0.95 per share.

Ikeja Hotesl Plc was the next as it advanced by 4.07 per cent or N0.14 to close at N3.58 from N3.44; Ecobank Transnational Incorporated’s shares rose by 2.76 per cent or N0.50 to close at N18.60 from N18.10; Beta Glass Company plc went up by 2.33 per cent or N1.05 to close at N46.20 from N45.15; Wema Bank advanced by 2.11 per cent or N0.02 to close at N0.97 from N0.95; Red Star Express appreciated by 1.18 per cent or N0.05 to close at n4.30 from N4.25; Union Bank of Nigeria Plc gained 0.87 or N0.05 to close at n5.80 from N5.75, while Flour Mills of Nigeria Plc advanced by 0.76 per cent or N0.16 to close at N21.16 from N21.00 per share.

Fidson, which led the pack, recently disclosed plans to grow its product portfolio by construction of N7.5 billion biotech plant in Nigeria. According to the company, the facility which is built to conform to the World Health Organization (Geneva) current Good Manufacturing Practice (WHO-GMP) standards, would double the company’s production capacity and will also for the first time, add intravenous fluids to Fidson’s product portfolio. The company recently released its results for nine month period ending 30th September 2015, which showed 18 per cent decline in revenue from N7.5 billion to N6.2 billion in the same period in 2014. The results further showed a 14 per cent reduction in cost of sales to N2.9 billion from N3.4 billion. Consequently, profit before tax increased two per cent to N696.3 million from N685.8 million, while profit after tax rose to N473.5 million from N466.4 million, also indicating two per cent increase. Basic earnings per share increased two per cent to N32 from N31 in the same period in 2014. The biotech plant, which is nearing completion, is expected to impact the company’s earnings in 2016.

Dangote Sugar Refinery (DSR), which closed as the second on the list, seems to have started recording reversal in its financials as indicated in the nine month unaudited statement released last week. Arm Research had placed the shares on sell following poor financial performance recorded in the year ended December 31, 2014. However, the company recorded marginal improvement in top-line and bottom-line with the post-tax profits rising by 1.3 per cent year-on year-to N9.34 billion from N9.14 billion in the previous year despite two percent increase in tax expense. The company also reported group revenue of N73 billion for the period representing a 1 per cent year-on year-growth. Also, the basic earnings per share rose to 115 kobo from 114 kobo, representing 1.3 per cent increase. Explaining the improvement experienced so far, the company said: “After a good pick up in the second quarter, we struggled to sustain the pace of improvement in the third quarter as we continued to face challenges getting our sugar out of the Apapa area to our customers, which constrained our overall operations in the quarter.

“We have begun to explore alternate means of product evacuation including the rail and additional warehouses to fulfill the growing demand of our sugar in the Northern parts.” The share price has been fluctuating, but rose steadily in the last three trading days to settle at the current market price. The share has recorded 52 wk high of N8.26.

As it is customary with insurance companies quoted on the Nigerian Stock Exchange (NSE) to renege on the post-listing rules obligations of timely submission of yearly and quarterly financial statements, Continental Reinsurance is among insurers penciled as operating below the NSE requirement. Owing to this, the company was fined N900, 000 for late filing of its 2013 full year financial reports. Its financial statement for period, which was later made public, indicated a mixed performance. While its revenue rose for the period, the underwriting profit declined. The company recorded gross earnings of N16.15 billion as against N15.04 billion in 2013.

The underwriting profit fell to N1.3 billion in 2014 from N1.68 billion in 2013, while the profit after tax declined by 51.1 per cent to N856 million from N1.75 billion in the corresponding period in 2013.

Vanguard Business: By NKIRUKA NNOROM

Uproar, as banks fail to link BVN to customers’ accounts

File photo: Customers besiege banks as BVN registration deadlines expires

MILLIONS of bank customers were yesterday denied access to their bank accounts due to failure of banks to link their accounts to their Biometric Verification Number (BVN).

Vanguard investigations revealed that bank customers that had obtained the BVN from one bank, and had submitted it to other banks where they also have accounts, discovered that their accounts in the other banks had been blocked.

According to Mr. Stanley Chima, “I had done my BVN through Access Bank, and submitted it to UBA last week. This morning I discovered the UBA account has been blocked, because it was yet to be linked to my BVN.”

He was one of the many customers that besieged banks’ branches across the country with similar problems.

A bank staff who spoke to Vanguard on condition of anonymity however blamed bank customers for the problem. She said that many customers did not submit their BVN for linkage to other accounts until last week, and the result was piles of BVN linkage request that could not be concluded as at the October 31st deadline.

She said though it takes just five minutes to process each request and link the BVN to the customer’s account, the problem is that the staff processing the request are also the ones that had to attend to those who came for BVN enrolment last week.

She said in addition to this, some customers sent their BVN to friendly bank staff who promised to help link it to their account, but forgot to do so until the deadline expired.

Vanguard investigations however revealed that customers in Diaspora also had problems linking their BVN to their bank accounts.

Linking of bvn to accounts

For example, Mr. Umeh Ricky Kelechi, a customer in Diaspora     complained that all attempts to link his BVN to his First Bank account had been unsuccessful.

“For two weeks now I have been trying to link my BVN, which I have done via the linkage form, SMS and even sent countless of email and have not received any confirmation. I linked my   BVN via online to my   accounts in other banks, which didn’t take me 24hours   but Firstbank has not answered me in two weeks,” he said.

It would be recalled that the CBN had last week advised bank customers to link their BVN to accounts with other banks. In a statement issued on Thursday, the apex bank said, “The point needs to be stressed here that it is not enough to just enroll for BVN. The process is duly concluded only when all accounts owned by a bank customer are linked to his or her BVN. What is left therefore is for the remaining account holders to get their accounts linked to BVN.”

Vanguard Business: By Babajide Komolafe

Nigeria’s hospitality business hits N562bn

The hospitality business in Nigeria is now peaking at N562 billion as at last year. This was disclosed by SlimTrader, West Africa Vocation Education, WAVE, a technology/e-commerce solution provider. In a chat with Vanguard,  Femi Akinde, Managing Director, SlimTrader, said:    “The Hospitality industry in Nigeria is worth approximately  N562 billion ($3billion) in 2014 and still growing.

Akinde said Nigeria does not have enough hotels. “We just have 7,000 hotels for 70 million adults, excluding  people coming into the country. If we consider the internal travels that happen in Nigeria, 7,000 hotels are probably not enough to accommodate all of the people that are looking for rooms.”

Nnenna Onyewuchi, a Board Member of WAVE,   added, “I think hospitality business in Nigeria is in transition, I think the entrant of international brands have changed the game    and I think that the Nigerian customers are beginning to demand a better, quality of service. I am certain that is why today, Nigerian customers are not ready to deal with  any kind of service; they are demanding a better and courteous service.

“People in the hospitality business need a better quality employee; this is where WAVE comes in. It is not that you just need someone who can take an order and go, we also need someone who can talk to people, who is able to be pleasant, who is able to deal with difficult customers.”

What we are seeing is the formalisation of retail and an improvement of the customer service experience in general and across the board, it is causing people to demand for better customer service and that requires better customer service representatives. “As the Nigerian economy continues to grow and expand, we have seen a real growth in the formal retail business.” Especially in the hospitality business, hotels, restaurants and shops and all of these businesses need people on the customer service line.

“As these hotels and stores come up. What we find is that the young people in    Nigeria just don’t have the requisite skills    to do these jobs, so what you have is a poll of entry level front line retail jobs and then you have a poll of candidates who should be filling these jobs , but don’t have the skills.

“So what we have done is  build a more employable poll of entry level young people in Nigeria, so that is what we have done, and so the training is on some soft skills, because these are front line things, its customer service, it’s about communication, problem solving, how do you deal with people, how do you manage your time, how do you manage difficult people, as well as more specific hot skills, that is the training we are doing today.”

“It is really about how do we help young people to be better prepared to get to the work place, how we  get them ready to starting working on day one. How do we give them the skills to get a job and retain the job and get to the best part of their career?

Vanguard Business: By Princewill Ekwujuru

Union Bank sustains positive performance, records N13.17bn PBT in 3rd quarter

 

LAGOS—UNION Bank of Nigeria Plc has announced impressive financial performance for the nine month period ended September 30, 2015 with the profit before tax for the period growing to N13.17 billion.

This represents 11 per cent increase over N11.89 billion posted in the corresponding period in 2014. Also, its profit after taxation rose to N13.0 billion as against N11.79 billion in quarter three (Q3) 2014, representing 11 per cent increase.

Meanwhile, the bank has assured that it would maintain a stable outlook for the rest of the year, while revealing its readiness to launch a new brand identity during the course of the year.

Highlights of the unaudited financial statement of the bank released on the Nigerian Stock Exchange, NSE, showed that Union Bank recorded net Interest Income was up four per cent to N38.8 billion compared to N37.2 billion in Q3 2014.

While total assets grew by 10.3 per cent to N1.02 trillion from N921 billion in December 2014, net loans & advances rose by 13 per cent to N341.7 billion from N302.4 billion as at December 2014.

Commenting, Mr. Emeka Emuwa, Managing Director/CEO, UBN said: “Our gross earnings grew to N86.4 billion in the nine months ended 30th September 2015, representing an 11 per cent increase compared to the corresponding period in 2014.This earnings growth, coupled with sustained cost discipline has enabled the bank deliver a profit before tax, PBT, of N13.2 billion, an 11 per cent increase over the same period last year.

“Looking towards the end of the year, we remain confident that the fundamentals of our business will remain strong, spurred by the momentum of our refreshed brand. As we get set to launch Union Bank’s new identity, we have entered a new phase of our transformation. Our new brand identity positions us competitively in the industry and we are confident in our ability to deliver a superior customer experience to our existing customers and attract a new base of customers.”

Also speaking, Chief Financial Officer, Mrs. Oyinkan Adewale, said: “We are pleased with the financial performance of the bank during a particularly challenging period for the industry as a whole. Excluding the sale of subsidiaries (gain of N3.4 billion YTD Q3 2015 and N6.3billion YTD Q3 2014), Union Bank recorded PBT of N9.8 billion for the period under review, up by N4.2 billion and representing a 74 per cent growth over the same period in 2014.

Our loan impairment charges continue to reflect our cautious approach to loan growth and our outlook as we anticipate the impact of economic headwinds on business activity. Even as we continue to invest in our branch infrastructure and step up marketing and communications initiatives, total expenses for the period are two per cent lower than the same period in 2014. As we go into the final quarter of the year, we expect to sustain this level of performance, leveraging on our new brand identity.

Other highlights of the results showed that net operating income was up two per cent to N55.5 billion from N54.5 billion in Q3 2014. Total expenses were down by two per cent to N42.3 billion from N43.1 billion in the corresponding period in 2014. Customer deposit also increased four per cent, rising to N526.1 billion from N507.4 billion in the corresponding period.

Business vanguard: By Nkiruka Nnorom

Fuel scarcity: Kachikwu ignites hope with new refining models

ONE of the take home messages from the Group Managing Director, the Nigerian National Petroleum Corporation, NNPC, Dr. Emmanuel Ibe Kachikwu, after scaling his ministerial screening was that finally, the nation’s four refineries will be made to work.

If this happens by December as being planned, then not only will Nigerians kiss goodbye to the perennial fuel shortages that bite harder during this period, but also significantly reduce the cycle of petroleum products importation and the attendant huge capital flight and subsidy claims.

Heads were up at the National Assembly, as millions of Nigerians watched the live telecast of the ministerial screening, when Kachikwu gave the assurance that all the local refineries would have been re-streamed by the year end.

According to him, this will displace massive fuel imports, cut huge import bills, reduce pressure on the nation’s lean foreign exchange earnings occasioned by the free fall in crude oil prices at the international market as well as create multiplier effects in the domestic economy.

He expressed confidence in the technical skills of the refineries workforce, saying that over 80 percent of the NNPC technical staff are competent. He cited the achievements of the Port Harcourt Refining Company, PHRC, at rehabilitating the plants as part of the potential available in the industry.

New business model

While responding to legislators’ questions, Kachikwu gave a rundown of the Nigeria petroleum industry, and promised to drive an operations model that will place the Corporation on a performance platform that will guarantee commercial viability.

For the over one hour he was put to task, he gave a detailed explanation of a reform package that has been activated to re-inject vibrancy in the petroleum industry. He also disclosed of plans to enhance efficiency and transparency in the sector as well as restructure the national oil firm to be competitive across the full value chain of the industry.

He equally promised to build local capacity across all the business units of the Corporation to enable it live up to the roles as the industry leader, government’s revenue earner, custodian of the nation’s petroleum assets and lead domestic fuel market supplier.

He, however, noted that target objectives will remain only a dream except the operations of all the business arms of the Corporation are commercialised and profitable.

Using the refineries as an example, he said their new role is to operate as profit centres, reliable fuel sources as well as feedstock sources for ancillary businesses, particularly for the petrochemicals and industrial.

At the Port Harcourt Refinery, for instance, he said the complex has become the reference for domestic technical ingenuity, internal innovation and revival model for sister refineries in Warri and Kaduna respectively.

Nigerian refineries: Nigeria’s four refineries have combined capacity for 445,000 barrels crude oil processing per day, which produce about 18 million litres of the premium motor spirit, PMS or petrol. This product is highly prized in the country as one of the main fuel for transportation and light machines used by homes and small businesses.

However, the refineries have remained largely moribund for decades due to poor maintenance and wrong business models. The refineries are over 30 years and have not had a proper turn around maintenance, TAM, for over 15 years, as they relied on the NNPC for administrative and funding control, a system that slowed processes and denied them of financial independence.

But Kachikwu, who is tipped to become the junior but powerful Minister of Petroleum Resources, has reiterated that the new business model he activated in the system will dismantle all administrative and funding constraints in all the Corporation’s business units, especially the refineries. He added that this will enable them to leverage internal energies and competencies in optimising uptime at the plants.

He told journalists in Lagos that the refineries are of strategic national economic and security importance, and restated his commitment to not only recover their capacity but also explore opportunities of building new plants with a view to leveraging the economies of scale in the existing industry hubs.

Operational efficiency: Kachikwu maintained that all the nation’s refineries must be revamped and attain 60 percent process capacity by December, when government will decide the best management model to adopt in making them efficient.

He noted that none of the refineries can operate profitably below 60 percent capacity, adding that if this were the case, such a refinery will not be supplied crude feedstock through traditional allocation processes.

Under this circumstance, he said the Corporation will have no choice than to explore private sector management for any underperforming refinery.

He said: “If after we finish (facility maintenance) and we think that the issue is management then we see if there is somebody willing to buy a majority share that have the skills set and the market reach internationally to do the work.

“Obviously if we did that and by then we have expressions of interest from people who are building refineries in this political environment they will be given the first right of refusal, because they will be able to help manage what is there, help to share skills.”

He specified that the acceptable 60 percent performance benchmark must not be a flash in the pan, adding that it would require sustainable uptime at the refineries fluid catalytic cracking units, FCCUs, which is the optimum process unit.

To scale the 60 percent performance hurdle the refineries must add value to crude oil at all the process units in order to cut waste, enhance commerciality of operations and optimise resources.

He had told journalists: “The greatest immediate challenge is how do you limit the debt loss factor and then on the medium term basis address the issues and make the refineries to work for example? The reality is that the refineries are not working now, because if you give me a 60percent this week and next week I am down to zero performance, when you take an average, you are down to 20percent and the average performance of the refineries right now is below 30percent, that is on a continuity basis. That is the fact.”

Scaling the hurdle: Interestingly, out of the three refineries, only the 210, 000 barrels per day Port Harcourt Refinery has all its three key process units including the Crude Distillation Unit, CDU; Vapour Distillation Unit, VDU; and Fluid Catalytic Cracking Unit, FCCU, on-stream after an internal rehabilitation programme.

The company which initiated and successfully evolved the downstream petroleum industry local content model for in-country refinery refurbishment and upgrade is already working to ramp up its production performance level to 80 percent installed capacity in order to enter a sustainable commercial comfort zone.

Kachikwu, pointed out that only PHRC appears to have crossed the performance hurdle and stressed that government will no longer run unprofitable businesses when better options exist in private sector partnership.

After revamping the refineries, he said, their business models will be examined to determine the best management approach to take. The model, he said, will protect and preserve the public interest in the refineries without compromising efficient commercial and technical operations standards.

Business Vanguard: By Clara Nwachukwu

Renewables to top Global Power Growth by 2020 – IEA

 

RENEWABLE energy is expected to represent the largest single source of electricity growth over the next five years, driven by falling costs and aggressive expansion in emerging economies, the France-based International Energy Administration, IEA, said in its annual market report.

Pointing to the great promise renewables hold for affordably mitigating climate change and enhancing energy security, the report, warns governments to reduce policy uncertainties that are acting as brakes on greater deployment.

“Renewables are poised to seize the crucial top spot in global power supply growth, but this is hardly time for complacency,” said IEA’s Executive Director, Fatih Birol, as he released the IEA’s Medium-Term Renewable Energy Market Report 2015 (MTRMR) at the G20 Energy Ministers meeting. “Governments must remove the question marks over renewables if these technologies are to achieve their full potential, and put our energy system on a more secure, sustainable path.”

The report noted that renewable electricity additions over the next five years will top 700 gigawatts (GW) more than twice Japan’s current installed power capacity. “They will account for almost two-thirds of net additions to global power capacity – that is, the amount of new capacity that is added, minus scheduled retirements of existing power plants.

Non-hydro sources such as wind and solar photovoltaic panels (solar PV) will represent nearly half of the total global power capacity increase,” it added. The report sees the share of renewable energy in global power generation rising to over 26 per cent by 2020 from 22 per cent in 2013. This is considered a remarkable shift in a very limited period of time.

“By 2020, the amount of global electricity generation coming from renewable energy will be higher than today’s combined electricity demand of China, India and Brazil.” It also showed that the geography of deployment will increasingly shift to emerging economies and developing countries, which will make up two-thirds of the renewable electricity expansion to 2020.

China alone will account for nearly 40 per cent of total renewable power capacity growth and requires almost one-third of new investment to 2020. It noted that renewable generation costs have declined in many parts of the world due to sustained technology progress, improved financing conditions and expansion of deployment to newer markets with better resources

Vanguard Business: By Sebastine Obasi

NNPC, Shell to promote clean operations in Nigeria

 

THE Nigerian National Petroleum Corporation, NNPC, and Shell Petroleum Development Company of Nigeria, SPDC, have reiterated their commitment to promoting sustainable development in the area of their operations across the country.

Speaking at the 2015 SPDC Joint Venture External Relations Road show and Exhibition in Abuja, the Group Executive Director, Exploration & Production, NNPC, Dr. Maikanti Baru, emphasised the need for organisations to operate and deliver services in a manner that is efficient and effective, with minimal impact on the environment.

Baru, who was represented by the General Managing, Planning, Nigeria Petroleum Investment Management Services, NAPIMS, Mr. Dung Gwom-Bot, maintained that while businesses should strive to be socially equitable and economically viable, they should also focus on meeting the basic needs of the population and future generation.

He said: “It is imperative to take into cognisance that for any growth or development to be successfully sustainable, it must be all encompassing and inclusive, that is, economic growth, environmental stewardship and social inclusion must be inherent. “Opportunities abound for organisations to do more in areas of sustainable development, while we on our part would continue to invest and optimally utilise resources to preserve the environment, provide clean energy, reduce waste and support local businesses for economic stability.”

Also speaking, the Managing Director, SPDC/Country Chari, Shell Companies in Nigeria, Mr. Osagie Okunbor, said the journey towards sustainability is a continuous process, adding that Shell views sustainability as delivering energy in a responsible way to meet the world’s growing needs.

Okunbor, who was represented by the General Manager, Business and Government Relations, SPDC, Mr. Simbi Wabote, said that a responsible approach to sustainability as practiced by Shell is not just viewed as a matter of principle, but also as making good business sense.

According to him, sustainability allows the company to share benefits with the communities in which it operates, while increasing trust and building lasting and positive relationships.

Source: Vanguard Business: By Michael Eboh