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…
Read MoreNSE 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…
Read MoreZenith 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…
Read MoreStock 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…
Read MoreEquities: 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…
Read MoreIOSCO issues statement on benchmark transition
The Board of the International Organization of Securities Commissions (IOSCO) has published the statement on communication and outreach to inform relevant stakeholders regarding benchmarks transition. The statement seeks to inform relevant market participants of how an early transition to Risk Free Rates (RFRs) can mitigate potential risks arising from the expected cessation of LIBOR. IOSCO in a notice obtained by Newsfieldglobal said it wished to raise awareness of the impact of LIBOR’s likely cessation and the need for relevant stakeholders to transition from the widely used USD LIBOR…
Read MorePresco reports 24% drop in profit
Presco Plc has posted 24.39 per cent drop in profit after tax for the half year ended June 2019. According to a report obtained from the Nigerian Stock Exchange (NSE), the unaudited financial result for the first half showed profit after tax of N3.016 billion from N3.989 billion recorded in 2018, accounting for a drop of 24.39 per cent. Profit before tax stood at N3.882 billion in 2019 from N5718 billion a year earlier, representing a decline of 32.1 per cent. …
Read MoreShareholders seek friendly policies, regulation
Some shareholders of quoted companies listed on the capital market have stressed the need for regulators to always seek for friendly policies and regulations to encourage new listings and bring back investors. Capital market shareholders, who made the call on enquiry, said the Securities and Exchange Commission (SEC) and the Nigerian Stock Exchange (NSE) should review penalties imposed on quoted companies to attract new listings. They noted that incessant penalties was discouraging companies from seeking quotation on the nation’s bourse,…
Read MoreNNPC, Dangote parley over $12bn refinery
The Nigerian National Petroleum Corporation (NNPC), owner of ailing refineries in Nigeria, on Wednesday agreed to a collaboration with Africa’s richest man, Alhaji Aliko Dangote over his $12 billion refinery. The Group Managing Director of NNPC, Mallam Mele Kyari, and Dangote made this know when President and Chief Executive Officer of the Dangote Group paid a courtesy visit at the NNPC Towers in Abuja. The national oil company, Kyari said according to a statement, was not in contest for market share with the forthcoming Dangote Refinery but rather providing support…
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