Dredging: Calabar Port channel to gulp N50bn

After endless failures, a new step to ensure that the controversial 84 kilometres Calabar port channel is dredged is again being considered by the Nigerian Ports Authority (NPA).   If approval is given by government, it was gathered that the port channel would gulp another N50 billion.   Already, the authority had decided to revisit the entire procurement process of the port channel.   Also, the authority is planning to commission a consultant to evaluate the viability of the dredging project.   The history of dredging scandals at NPA, which has lingered for over two decades, can be traced back to 1996 when the contract for the dredging of the port channel was awarded by the Federal Government to two firms- Van Oord and Jan de Nul, to scoop out 25 million cubic metres of sand to achieve an overall draft of eight metres to enable vessels of up to 30,000 tons sail on the water.   The two firms were given N3billion for the job, while Van Oord was asked to dredge the first 44 kilometres, Jan de Nul got the last 40kilometers.  But the job was abandoned.   The  same contract was  also reawarded 10 years after by President Olusegun Obasanjo to the same companies in 2006 at a whopping sum of N20. 44billion($56 million).   The entire length of the channel was divided between the two firms in 2002, while Van Oord was paid $26 million to dredge the first 44 kilometres, its competitor,  Jan de Nul, got $30million to dredge the last 40kilometers of the channel with the instruction that the two firms should scoop out 25 million cubic metres of sand to achieve an overall draft of eight  metres in 64 weeks to enable big vessels sail to the port.   Also in 2006, the same contract was awarded by a former Minister of Transport, Dr Abiye Sekibo, at N14 billion but  the two firms failed to delivered.   Under President Goodluck Jonathan, Niger Global Engineering and Technical Company Limited (NGETCL) also got N20 billion in 2014 but the contract was terminated in August 2017 over alleged fraud in the award processes and shoddy execution of the dredging contract.   This time, the authority declared that the dredging of the port would gulp N50 billion to make it navigable for modern deep sea going vessels.   According to  the authority’s  General Manager, Corporate and Strategic Communications, Engr. Adams Jatto, NPA  will determine the economics of its scales before spending such amount on the dredging.   He said: “We want to revisit the entire procurement process because the problem is that we have to dredge Calabar channel and we are talking of about N50 billion to dredge it.   “We have to look at economic of scales.  So, if we dredge to the required length, can we get vessels to come in there? So, those are the areas we are looking at to see what can be done but by and large we want to commission a consultant to look at it, give us a business case to see how viable they are if they are to be dredged but what we doing in Calabar now is to appeal to shippers with low bed to move to calabar.”

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Naira stability: CBN sells N299bn T-bills in one week

With the recent downward movement in oil prices resulting in a decline in the nation’s external reserves and triggering concerns over naira stability, the Central Bank of Nigeria (CBN) auctioned a total of N299billion worth of Treasury Bills between August 7 and 15, to lure foreign inflows, findings by New Telegraph show.   According to traders, the recent drop in oil prices, coupled with falling yields, led foreign investors to booking profits on local bonds, thereby putting pressure on the naira at the Investors and Exporters’ (I&E) foreign exchange window.   The CBN responded to the development by holding an unscheduled Treasury bill auction on August 7, during which it sold a total of N114.6billion worth of T-bills.   The auction was the apex bank’s first T-Bills sale since mid-July and  it saw the CBN offering  to sell N100billion of bills in maturities of three, six and 12 months, but  getting bids of N454.9billion, with…

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NSE lists Greenwich Alpha ETF

The Nigerian Stock Exchange (NSE) yesterday listed Greenwich Asset Management Limited’s ‘Greenwich Alpha ETF on its daily official list. The Greenwich Alpha ETF units were listed at N100 each following an Initial Public Offer (IPO) on Monday, August 19, 2019. Greenwich Alpha is an open-ended ETF, which tracks the NSE 30 Index. The index constitutes 30 of the most liquid and capitalised stocks trading on the exchange. It is designed for investors to access the constituent companies of the NSE 30 index, thereby getting the performance of the index. Speaking…

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Zenith Bank posts N89bn net earnings in HY’19

Zenith Bank Plc has recorded a profit after tax of N88.882 billion for the half year ended June 30, 2019 as against N81.737 billion reported in 2018, representing a growth of 8.74 per cent. In a filing with the Nigerian Stock Exchange (NSE), the group’s pre-tax profit also rose by 4.02 per cent from N107.358 billion during the previous year to N111.677 billion during the period under review. The lender’s gross earnings stood at N331.586 billion as against N322.201 billion posted in 2018, accounting for a growth of three per…

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UBA partners LCCI for 2019 Lagos International Trade Fair

Promises 20% discount on registration Pan African financial services institution, United Bank for Africa (UBA) Plc, and the Lagos Chamber of Commerce and Industry (LCCI), have partnered to organise the 2019 edition of the Lagos International Trade Fair.   The fair, which holds between November 1 and 10, 2019, is the 33rd edition and is expected to provide an avenue for networking and other business opportunities that will assist to catapult business activities in Africa’s largest and busiest city, Lagos and in Nigeria.   UBA, which is the headline partner, will…

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Stock market begins week bullish with N93bn gain

Trading activities on the floor of the Nigerian Stock Exchange (NSE) yesterday commenced the week on a positive track as the overall market performance indices firmed up with a gain of 0.71 per cent. Transactions on the stock market had last Friday recorded a decline to close on the red territory following depreciable demand by investors on sustained market apathy. Consequently, the All-Share Index gained 190.6 basis points or 0.71 per cent to close at 27,115.89 index points as against 26.925.29 recorded last Friday while the market capitalisation closed from…

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Report: Emefiele, fund managers meet in London

Central Bank of Nigeria (CBN) Governor, Mr. Godwin Emefiele, met fund managers in London last week to lure investors back into the local naira currency, Reuters reported two banking sources as saying yesterday. Emefiele told investors that currency stability would continue, a fund manager and a banking source said. The naira weakened to 364 last week as oil prices fell. The naira has come under pressure at the investors and exporters forex window in recent weeks due to a decline in oil prices as well as a drop in yields,…

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Fidelity Bank adopts open banking

Fidelity Bank has signed a Memorandum of Understanding with Open Technology Foundation (OTF) for the adoption of a standard Application Programming Interface (API) for its operations as a financial institution. Open banking is a system that provides a user with a network of financial institutions’ data through the use of application programming interfaces (APIs). The Open Banking Nigeria Standard defines how financial data and services should be created, shared and accessed. By relying on networks instead of centralisation, open banking helps customers to securely share their financial data with other…

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Equities: FMDQ plans to begin listing firms

FMDQ Securities Exchange has said that following the approval by the Securities and Exchange Commission (SEC), moving it from ‘an OTC Market’ to a full-fledged ‘Securities Exchange, it is planning among other things to enter the equity market. Addressing journalists on the development, the Managing Director/Chief Executive Officer of the firm, Mr. Bola Onadele Koko, said: “We will be in the equity market when we win the first listing. The fact that we want to do equity does not mean it will be now. Companies take time to come for…

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CBN:  Bad debt ratio drops to 9.36%

The Non-Performing Loan (NPL) ratio in the country’s banking system dropped to single digit at 9.36 per cent in June 2019 for the first time in about three months, the Central Bank of Nigeria (CBN) has said. Deputy Governor in charge of Financial System Stability at the apex bank, Mrs. Aishah Ahmad, stated this in her personal statement for the Monetary Policy Committee (MPC) meeting last month, which along with other MPC members’ personal statements were posted on the CBN’s website yesterday. The MPC members stated that the continuous decline in banks’ NPL…

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