Ict/Telecom
NNDC To Float New Telecom Firm
The New Nigeria Development Company (NNDC) said it had concluded arrangement to float a new telecommunications company even as it posted a pre-tax profit of 609 per cent.
Chairman of the company, Prof. Halidu Abubakar gave the indication shortly after the company’s 44th Annual General Meeting (AGM) in Kaduna. “Arrangements have gone far in the merger between our Gamji Telelecommunications Company with our affiliate company, Backbone Connectivity Network (BCN) Nigeria,“Abubakar said.
He said the merger would produce “a bigger and more vibrant telecommunication company which will enable us to get better value as a result of synergy.“
The NNDC chairman said discussion was going on with the NNPC on the oil and gas exploration in the Northern region.
“We are making plans to collaborate with the NNPC in our continuous search for hydrocarbon potentials in the Northern Sedimentary basins.
“ The objective is to be part of all the activities of NNPC in the basins and this will reduce financial commitments of our company.“
He said that the company was also collaborating with states to acquire more mining sites to boost solid mineral development, in addition to exploring new areas including property development.
“ The company has identified new areas of strategic focus including boosting agricultural production, development of solid minerals, massive investment in property development, resuscitation of promising ailing industries and consultant services.“
Abubakar said that the company was scouting for more investable funds through collaboration with other development finance institutions, so as to play a greater role in the nation’s economic development.
The 23-member NNDC board had earlier approved the appropriation of N20 million to finance the Young professional Development Trust and the Learning Resources Centre Funds. The Chairman said that the company’s performance had improved in spite of the challenges posed by the deterioration in the Nigerian economy.
“Particularly the insecurity in the country in general and the 2011 post election crisis that occurred in some part of the country, which adversely affected business activities and international investment.“
Abubakar said the company had recorded a pre-tax profit of N69.25 million as against the preceding year’s profit of N9.76 million.
He said the figure represented an increase of N59.49 million or 609 per cent for the year ended March 31, 2012.
“The gross earnings of the company stood at N414.24 million during the year under review, representing an increase of N34.82 million or 9.18 per cent over the previous years’s figure of N379.42 million. “ Operating expenses for the period under review stood at N318.81 million against the preceding year’s figure of N348.26 million, indicating a decrease of N29.44 million or 8.45 per cent,“ the chairman added.
He said the nominal value of the company’s quoted investments stood at N239.26 million, while the market value stood at N6.801 billion.
The chairman commended the NNDC associate companies for recording encouraging result in spite of the difficult operating environment.
Abubakar commended shareholders for sustaining their trust and confidence in the company and pledged to do better in the years ahead.
Secretaries to Governments of the 19 Northern States participated in the NNDC’s 44th AGM.
The Managing Director, Shell Nigeria Exploration and Company Limited (SNEPCo), Elohor Aiboni, said Bonga, Nigeria’s first deep-water asset, has recorded major milestones, due to effective leadership, cutting-edge technology, continuous improvement and collaboration with stakeholders.
She noted that since coming on stream in November 2005, Bonga has maintained a track record of production that saw it achieve one-billion-barrel export on February 13, last year.
In her presentation, titled “The Bonga Journey to a Billion Barrels”, at the ongoing 2024 Offshore Technology Conference in Houston, Texas, United States, Aiboni, said: “SNEPCo is grateful for the contributions of all the parties to the Bonga story and we can all be proud of the milestones.
“Bonga has been consistent. In 2014, nine years after coming onstream, it achieved half a billion barrels of crude and doubled it in 2023. We have worked relentlessly to ensure excellent asset management, project and wells delivery and deployment of technology and innovations in our operations”.
According to her, these factors, “coupled with the supportive partnership of the Nigerian National Petroleum Company Limited and our co-venturers – TotalEnergies, EP Nigeria Limited; Nigerian Agip Exploration; and Esso Exploration and Production Nigeria Limited, make Bonga stand out as a world-class investment case”.
She continued that, “SNEPCo also enjoyed the support of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and the Nigerian Content Development and Monitoring Board (NCDMB) in the success of Bonga operations”.
Aiboni also listed the challenges of keeping the Bonga Floating Production, Storage and Offloading vessel full as the asset ages and dealing with unexpected developments with subsea wells and equipment.
She said: “SNEPCo responded with a campaign of operational excellence, which among other initiatives, led to the creation of a programme known as the Bonga Business Improvement Plan that continually reviews and identifies improvement initiatives and drives sustainability in operations and upskilling of staff.
“The Bonga success story has been led by Nigerians who have been managing directors of SNEPCo since it was established in 1993, in a deliberate policy by Shell to develop indigenous manpower for deep-water operations in Nigeria.
“Today, some 97percent of the SNEPCo workforce is Nigerian and overall, Bonga has helped to create a new generation of Nigerian deep-water professionals.
“Our vision at SNEPCo remains to be the best deep-water business, powering growth and achieving net zero emissions in line with Shell’s Powering Progress strategy”.
Banks’ borrowings from the Central Bank of Nigeria (CBN) fell month-on-month, (MoM) by 44 percent to N12.16 trillion in April from N21.7 trillion in March.
Analysis of latest data from the CBN shows that the 44percent drop represents the first MoM decline in banks borrowing from since January when it increased by 268.7 percent to N3.6 trillion from N976.29 billion in December 2023.
However, further analysis showed that banks’ deposits in the CBN SDF grew MoM by 118.4 percent to N428.97 billion in April from N196.37 billion in March 2024.
Banks make use of the SLF to access liquidity to run their day-to-day business operations while the Standing Deposit Facility window (SDF) on the other hand, is an overnight deposit facility that allows banks to lodge excess liquidity (money) with the CBN and earn interest.
The decline in banks’ borrowing from SLF may reflect an increase in banking system liquidity and also the decision of the apex bank last year to remove the limit on the remunerable daily placements by banks at the SDF.
According to the CBN Governor, Mr. Olayemi Cardoso, the CBN removed the cap on the remunerable SDF to increase activity in the SDF window and manage liquidity.
A Financial technology expert, Olatunji Akinrinola, has highlighted the exponential growth of the FinTech industry, which according to him, was driven by technological advancements.
Akinrinola made this assertion in a press release recently, where he stressed that the role of technology in driving this exponential growth in the FinTech sector was very outstanding.
According to him, Technology has revolutionised the way financial services are delivered, making them more accessible, efficient, and inclusive.
“Through innovations such as mobile banking, digital payments, and blockchain technology, FinTech companies have been able to reach a larger population and provided them with access to financial services”, he stated.
Akinrinola emphasised the role of technology in enabling financial inclusion, adding: “Technology has democratised access to financial services, particularly in regions with limited banking infrastructure.
“Mobile money platforms and digital wallets have empowered individuals to conduct financial transactions conveniently and securely, without the need for traditional banking services”.
He also underscored the role of Artificial Intelligence (AI) and data analytics in driving innovation within the FinTech industry, noting: “AI-powered algorithms and predictive analytics have revolutionised risk assessment, fraud detection, and customer personalisation in financial services.
“These technologies enable FinTech companies to provide tailored solutions and mitigate risks more effectively, ultimately enhancing the overall customer experience”.
Akinrinola stressed the importance of regulatory frameworks in fostering the growth of the FinTech industry.
“While technology has accelerated the growth of FinTech, it is essential to establish robust regulatory frameworks to ensure consumer protection and maintain market stability. Regulators play a crucial role in balancing innovation with risk management, thereby creating a conducive environment for the sustainable growth of the FinTech sector”, he stated.
Akinrinola underscored the role of technology in driving the exponential growth of the FinTech industry, saying, “Technology has been a game-changer for the FinTech sector, enabling innovation, expanding access to financial services, and driving economic growth.
“As technology continues to evolve, the FinTech industry will undoubtedly play a significant role in shaping the future of financial services ecosystem”.
Corlins Walter