Morning Review

Nigeria’s debts stand at N6.02trn – Senate

CHAIRMAN, Senate Committee on Local and Foreign Debts, Senator Ehigie Edobor Uzamere (ACN, Edo South) disclosed, yesterday, that Nigeria’s Foreign and Domestic debts stand at a total of US $39.72 billion (N6.02 trillion) which is 20.29 per cent of Nigeria’s Gross Domestic Product, GDP. Speaking at the inauguration of his Committee by Deputy Senate President, Senator Ike Ekweremadu, Uzamere said at the advent of civilian rule, the country’s external debt was well over US$326 billion, but the nation’s current debt is now US$5.398 billion as external which translates to 2.76 per cent of our Gross Domestic Product, GDP, while our Domestic Debt is N5.210 trillion representing 17.53 per cent. According to Uzamere, “this amount is unsettling and called for concern,” adding that the total debt of N6.02 trillion is more than the Federal Government’s annual budget.

Senate to debate PIB afresh – Punch

The passage of the Petroleum Industry Bill by the Senate may be further delayed following the presence of many versions of the draft legislation and the intention of the upper legislative chamber to start deliberations on it on a clean slate. Meanwhile, the Deputy President of the Senate, Ike Ekweremadu, has recommended the allocation of crude oil to importers to refine and resell to Nigerians as a way out of the fuel subsidy removal debacle. Ekweremadu, who made the suggestion while inaugurating the Senate Committee on Petroleum (Upstream) on Thursday in Abuja, noted that the subsidy debate was overheating the polity. He said “In Nigeria, with the quantum of oil we have, we are still talking about oil subsidy and talking about importation of petroleum products. I think it is something we have to search our soul and appeal to those who are responsible for this situation to do us the single favour of stopping this embarrassment. “I believe we can do that through the rehabilitation of our refineries, building new refineries, no matter how small they are, and scatter them everywhere; with this, we will be able to overcome the major challenge.” He suggested that the large number of importers and exporters should be brought in to begin refining of crude so that that they could sell at a lower price without been subsidised. Ekweremadu said, “I am not an expert in oil issues, but talking from the point of view of a lay man, I am just wondering if while we are trying to rehabilitate our refineries and build new ones, whether all these people who claim to be oil importers whether some of them cannot be allocated crude oil to refine wherever and bring back instead of giving them money in the name of oil subsidies.

AMCON: VIP debtors lobby govt officials to restructure loans – Punch

Indications have emerged that some highly placed individuals, who have enormous debts with the Asset Management Corporation of Nigeria, have been lobbying top government officials to influence the corporation to restructure their loans. Our correspondent gathered from reliable sources in AMCON that the debtors had approached senior government officials and some members of the National Assembly in a bid to have their loans restructured in a favourable manner. One of the sources, who pleaded not to be mentioned because of the sensitive nature of the matter said, "Some of the debtors, especially the influential ones, have been trying hard to get their loans restructured in a way that will favour them by lobbying top government officials at the Ministry of Finance and National Assembly. "The way they (debtors) want their loans to be restructured is not appropriate. AMCON will only manage non-performing loans and other acquired assets in a manner that is consistent with minimum resolution costs." The Managing Director, AMCON, Mr. Mustapha Chike-Obi, had said last week that the corporation had started the work of loan re-performance, restructuring and recovery. He said, "AMCON has restructured and recovered over 10 per cent of the non-performing loans it acquired. In the process, AMCON has tried to balance maximum recovery with minimum disruption of viable businesses, keeping in mind that employment of Nigerians is a key plank in the President’s transformation agenda.

Fed Govt earmarks N9b for asset insurance - Nation

The Federal Government has set aside N9 billion for the insurance of its assets, the Commissioner for Insurance Mr Fola Daniel has said. The Commissioner, who disclosed this to journalists in Uyo, said the money was earmarked to provide insurance cover for all federal governments properties, adding that the government would soon issue a circular that would enable insurers have access to the funds. Government’s insurance provision for its assets was N14 billion in 2010, out of which insurers only accessed N9 billion. Daniel said the industry has in recent times enjoyed adequate support from the government in repositioning insurance business. He said that the campaign on the enforcement of insurance has reached its climax, noting that companies are now keying into the initiatives of the National Insurance Commission (NAICOM). The commissioner said that NAICOM would commence on-site enforcement of compulsory insurance from November 15, adding that Ibadan Oyo State capital has been chosen for take-off of the exercise.

New investors buy 68% of GTAssure for N12.3bn - Businessday

Assur Africa Holdings (AAH), a consortium of international investors, yesterday took over 67.68 percent  (majority) shareholding of Guaranty Trust Assurance plc (GTAssur) from Guaranty Trust Bank plc (GTBank) in a transaction valued at about US$76 million. The take over follows what the participants in the deal described as a transparent bidding process over the last one year. Segun Agbaje, GTBank Chief Executive Officer, said all the parties involved were pleased to welcome Assur Africa Holding to Nigeria and wish them all the best as they assume ownership of the controlling stake in GTAssur. “As one of the largest transactions by volume and value to be executed in compliance with the CBN directive on divestment of non-banking subsidiaries, we are privileged to have been able to contribute to the foreign direct investment drive of the Federal Government of Nigeria.” AAH is made up of six members, comprising three international Developmental Finance Institutions (DFIs) – DEG ( Germany ), Proparco (France) and FMO ( Netherlands) and three Private Equity Funds with substantial investments across Africa. Though based in the Netherlands, FMO’s area of operation is international with partners and clients from all over the globe, contributing to the development of the private sector in Africa, Asia, Eastern Europe and Latin America. On the other hand, DEG a member of KfWBankengruppe (KfW Banking Group), is one of the largest European Development Finance Institutions for long-term project and company financing. Created in 1977, PROPARCO is a Development Financial Institution partly held by Agence Française de Dévelopement (AFD) and private shareholders from the North and South of France. AfricInvest-Tuninvest Group is one of the leading private equity firms in North and sub-Saharan Africa with over $550 million of assets under management across 10 Private Equity funds sponsored by prestigious DFIs, private and institutional investors. DPI is a fund advisory business founded in 2007, to make private equity investments in Africa . DPI combines a value investing orientation with a disciplined investment style, uncovering unique and exclusive investment opportunities in rapid growth economies and sectors in Africa. Top officials of the member firms of Assur Africa Holding including Nanno Kleiterp (CEO, FMO), Runa Alam (CEO, DPI) and Ziad Oueslati (Director, AfricInvest Capital Partners) say they are delighted and very excited about the acquisition.