#pulseMajor business events in 2014 From the biggest acquisition to crippling loses of the year, FEMI IBIROGBA and RUTH OLUROUNBI chronicle business events that defined 2014. Their report. World Bank, Key Global expressed intention to invest $1billionin power sector On Tuesday, March 4, 2014, the World Bank and Key Global agreed and made public their decision to invest $1billion in the Azura Edo Independent power plant which will generate 450 megawatts (MWs) of electricity. NSE shares transaction costs reduced by over N1 billion On Wednesday, March 5, 2014, investors in the Nigerian capital market were in for good times as the Nigerian Stock Exchange (NSE) commenced reduction of cost of Trade Alert Service by about N1.24 billion from March 2014. Thursday, March 7 2014, FG eyed further $25 billion investment in ICT by 2015 The Federal Government said it expected that by 2015, foreign direct investments (FDI) in the Information and Communication Technology (ICT) sector of the economy would have increased by about $25 billion. FG receives $5.7 billion 80% financial bids for 10 power plants On Monday, March 10, 2014, the Federal Government received $5.7 billion (80 per cent) financial bids for 10 national integrated power plants which provided the government with $5.7 billion. Wednesday, 12th March, 2014 TCN targets 10,000mw transmission capacity by 2017. The Chairman, Board of Transmission Company of Nigeria (TCN), Mr Ibrahim Waziri, assured total overhaul of the company to improve electricity distribution operations in the country as the company targeted 10,000 megawatts by 2017. Friday, 14th March, 2014 Fuel Subsidy: FG Released N41 billion to 27 oil marketers It was reported that the Federal Government of Nigeria paid N41.074 billion to 27 oil marketers as fuel subsidy. Friday, 21st March, 2014 Goldman Sachs Asset Management former boss said Nigeria would be the 15th largest economy by 2050. Mr Jim O’neill, a former chairman, Goldman Sachs Asset Management, a consulting firm, said Nigeria could be the world’s 15th largest economy if its large population actively participated in economic development. Tuesday, 25th March 2014 The International Finance Corporation (IFC) expressed its commitment to invest $1.5billion yearly in Nigeria on key sectors of the economy. Friday, 4th April 2014 The Debt Management Office (DMO) concluded arrangements to raise between N200 billion ($1.21billion) and N280 billion ($1.70billion) from the sale of FGN bonds in second quarter (q2) 2014. Tuesday, 8th April 2014 The World Bank forecast 5.2 per cent growth for Africa in 2014. The World Bank predicted a 5.2 per cent growth for sub-Saharan Africa (SSA) in 2014, from the 4.7 per cent recorded in the previous year. Friday, 11th April 2014 It was reported the economy recorded $12.13 billion forex flow in January. Amidst growing anxiety over declining foreign reserves, provisional data from the Central Bank of Nigeria (CBN) indicated the total foreign exchange (forex) inflow through the economy was $12.13 billion in January 2014. BPE on access to power Wednesday, 4th June 2014, Bureau of public Enterprise (BPE) said over 90 million Nigerians lived without having access to electricity, thus further showing the need for public-private partnership arrangement that would bring an end to the problem. Thursday, 12th June 2014 The British Standard Institute (BSI) said that the Central Bank of Nigeria (CBN) had maintained the highest level of information security standard (ISO27001) compliance since being certified in July 2013. Friday, 20th June 2014 World Bank commended Nigeria for reducing gas flaring The World Bank said there had been a minimal reduction in gas flaring in many countries, including Nigeria, even as it announced that it would soon propose a target of zero routine gas flaring by 2030 and would be looking to many organisations to support their initiative. Tuesday, 24 th June 2014 It was reported that the Federal Government said it had inaugurated four power transmission sub-stations to boost electricity supply across the country. Wednesday, 25th June 2014 NSDC, BOA, signed N2 billion MoU on sugar development The National Sugar Development Council (NSDC) and the Bank of Agriculture (BOA) signed a memorandum of understanding (MoU) worth N2 billion for the development of sugar industry. Thursday, 26th June 2014 Bureau de Change Traders Association in Wuse Zone 4, Abuja, urged the Central Bank of Nigeria to dialogue with operators before implementing the new N23 million minimum capital requirements. July 16, 2014 Jim Ovia became chairman of Zenith Bank Jim Ovia, the Pioneer Managing Director and Chief Executive Officer of Zenith Bank Plc, resumed office as the board chairman and non-executive director of the bank he retired from about four years ago following the CBN policy which limited the tenor of banks chief executive officers to a maximum of 10 years. The bank, subsequently, welcomed its founding father back with N57.85 billion profit before tax (PBT) in the first half year result of the bank. The PBT of the bank rose by 11.1 percent when compared with N52.09 billion in the corresponding period last year, leading analysts to believe that Ovia’s second coming would will enrich the operations of the bank. July 30, Oando acquired ConocoPhilips On July 30, 2014, Oando Energy Resources completed the landmark acquisition of the onshore and offshore business ConocoPhilips Oil and Gas for $1.5 billion. The acquisition placed the indegenious company on a higher advantage over its competitors at it became Nigeria’s largest indigenous oil and gas producer, as the acquisitions ensures that the company increases its daily oil production exponentially by 600 per cent equivalent to 45,000 boe/d, annual revenue of over US$600 million and annual free cash flows of $150 million. September 24, 2014 Aigboje Aig-Imoukhuede became the NSE president On Wednesday, September 24, Aigboje Aig-Imoukhuede was officially installed as the President of the Nigerian Stock Exchange (NSE), succeeding Africa’s richest man, Aliko Dangote. Aig-Imoukhuede’s tenure is regarded as new and energizing chapter in the history of the Exchange, more so, as he, alongside his friend and current Group Managing Director/CEO of Access Bank, Herbert Wigwe, transformed Access Bank to what it is today. November 27, 2014 Allison-Madwueke elected as first female OPEC president Nigeria’s Minister of Petroleum Resources, Mrs Diezani Alison-Madueke, on November 27, 2014, elected as the first female President of the Organisation of the Petroleum Exporting Countries (OPEC) at the 166th meeting of the OPEC Conference in Vienna, Austria. Alison-Maduke took over from His Excellency Abdourhman Atahar Al-Ahirish, Libya Vice Prime Minister for Corporation and her tenure takes effect from January 2015. Her election is historic, as she is the first female to head the oil producing countries’ organisation. August 27, 2014, Tony Elumelu returned as UBA Chairman, announced $100m entrepreneurship fund The media went ballistics with the report that former Group Managing Director and Chief Executive Officer Tony Elumelu of United Bank of Africa (UBA) was back, this time as the new chairman of the bank. Mr Elumelu succeeded Ambassador Joe Keshi. Less than four months after this announcement, Elumelu was in the news again, as he, on December 1, 2014, announced the launch of a $100m Pan-African entrepreneurship initiative – The Tony Elumelu Foundation Entrepreneurship Programme – a multi-year programme of training, funding, and mentoring, designed to empower the next generation of African entrepreneurs, through his Tony Elumelu Foundation. Big losses of 2014 N27bn lost to gas flaring in one month Nigeria lost about $170.166 million, around N27.227 billion to gas flaring in one month, as oil and gas companies flared 39.07 billion Standard Cubic Feet (SCF) of gas in the month of August 2014. N75b annual loss to smuggling of textile products The National Union of Textile, Garment and Tailoring Workers of Nigeria (NUTGTWN) recently said Nigeria loses estimated N75 billion in revenue to textile and garment materials smuggling, annually. The union’s president, President, Oladele Hunsu, and Secretary, Isa Aremu, said the loss is recorded because of evasion of duties and taxes on the smuggled materials. $11.5bn lost to tumbling oil prices It was said that the Federal Government and the oil and gas producing companies may have lost an estimated $11.5billion to the drop in the price of Brent crude oil from $115 per barrel in June to a recent $68.62 according to reports in the media. Reports indicated that Nigeria could have lost close to $11.5 billion between June and November this year, as the country produces about 2.4 million barrels per day and exports 2.2 million barrels per day. This significant loss, among other pressing factors, may have forced the federal government to introduce a raft of measures to shore up its revenue in the face of dwindling earning from crude oil, its main revenue source. Worried that the price would tumble below $80 per barrel, the federal government revised the 2015 budget benchmark to $65 which is below the $77.50 used in 2014. In September 2014 Nigeria’s $10bn loss to Merger and Acquisition fees An investigation by the committees on Justice and Finance of the House of Representatives revealed that multinational oil companies operating in the Nigeria may have fleeced the country a total of $10 billion (N16 trillion) in revenue due from mergers and acquisitions that were consumated in the country in the last ten years. The companies mentioned in the committees’ report were Chevron and Texaco which formed ChevronTexaco; Total, Elf and Fina which formed TotalFinaElf and Exxon, which merged with Mobil to form ExxonMobil. The report speaks volumes of the penchant of oil companies for evading the payment of due taxes and fees and the laxity, and sometimes compromise, of government officials who neglect to enforce the laws or prosecute those who flout it. December 23, 2014 Dangote lost $7.8bn Africa’s richest man, Aliko Dangote, as of February, this year, was worth $25 billion. On November 7, Dangote was worth $21.6 billion. But a few weeks ago, when the CBN governor announced the devaluation of Nigeria, Dangote’s fortunes took another crippling plunge, leaving him with only $17.2 billion. credit:vanguard
Posted on: Fri, 02 Jan 2015 06:23:24 +0000
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