Business
Wabote Strengthens Commitment To Rewarding Local Contents In The Upstream Sector As Lamikanra Fuels Legal Fire Works
Wabote Strengthens Commitment To Rewarding Local Contents In The Upstream Sector As Lamikanra Fuels Legal Fire Works
The expected revenue generation of, at least, $10 billion every year when all the oil and gas industrial parks being built by the Nigerian Content Development and Monitoring Board, NCDMB, fully take off in different oil producing states in the Niger Delta, appears to be the most assuring signal from the South South geo political zone that commencement of sustainable developments is no longer a function of speculative endeavour.
In a recent disclosure by NCDMB Director of Corporate Communications, Engineer Ginah O. Ginah, the monies are expected to be generated from world standard parks that are at different stages of construction across the Niger Delta region which is part of the Engineer Simbi Kesiye Wabote’s led NCDMB efforts to significantly increase local contents in the oil and gas industry and generally drive Nigeria’s industrialisation.
Already, the first of such parks built at Odukpani in Cross River State is ready to commence business as many manufacturers and industrialists have indicated their interests to take advantage of the scheme.
But legal attempts to create a clog on these implementable initiatives were recently addressed by a Federal High Court sitting in Yenagoa, Bayelsa State, which, on Tuesday, May 9, 2023 delivered a landmark judgment confirming the authority of the Nigerian Content Development and Monitoring Board (NCDMB) to collect the one percent Nigerian Content Development Fund (NCDF) levy from every contract awarded in the Nigerian oil and gas upstream transaction as mandated under section 104 of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act.
The upstream section is the exploration, drilling and production end of oil industry as opposed to the downstream sector – which is the product refining and marketing sector.
Earlier, a group of Nigerian Drilling Companies known as Incorporated Trustees of the International Association of Drilling Contractors, IADC, had instituted a case against the NCDMB, seeking to stop the collection of one percent NCDF levy.
In the lawsuit – Suit No.FHC/YNG/CS/178/2022, IADC challenged the powers of NCDMB to demand the one percent NCDF levy from their members and contractors.
They averred that the demand is contrary to the clear provisions of section 104(2) of the NOGICD Act which states that “the sum of one percent of every contract awarded to any operator, contractor, subcontractor, alliance partner or any other entity involved in any project, operation, activity, or transaction in the upstream sector of the Nigeria oil and gas industry shall be deducted at source and paid into the Fund.”
The group also obtained an ex parte injunction against the Board prohibiting the demand, collection or anything whatsoever either by itself or through its agents, representatives, or privies in relation to NCDF payment or remittance from their members and contractors pending the final determination of the lawsuit.
But an experienced and highly respected Counsel in Oil & Gas legal space, Oladejo Lamikanra, SAN, who represented NCDMB, argued that section 104 of the NOGICD Act is charging section and a revenue clause of the Act and so must be construed liberally in favour of the operator.
Oladejo Lamikanra, SAN, asked the court to set aside the interim orders granted the Drillers and dismiss the case.
Oladejo Lamikanra argued further that there is no double taxation but rather reading the NOGICD Act as a whole, NCDMB has acted properly and fairly within its statutory powers.
The Drillers association, represented by Adedapo Tunde-Olowu, SAN, of the prestigious Lagos based Lawfirm AELEX, argued that the association should be exempted from the 1% levy and that NCDMB has no power to impose the statutory levy.
Tunde-Olowu, SAN pressed further that once an operator in the upstream sector has paid the 1% levy, their subcontractors to (whom they issue ancillary or subsidiary contracts) should not be subject to another 1% levy. He emphasized that it amounts to “ double taxation” and so have refused to pay the levy.
In further submission, the NCDMB’s representative said the case of the Drillers amount to biting the same fingers that has fed them and allowed them to flourish and prosper.
The legal expert noted that section 104 is the revenue base and life-blood of the Nigerian Content Board, stressing that if the Drillers ( an association of over 60 members in the oil & gas industry) succeeds, it would mark the demise of the Nigerian Content Board and with it, the accrued benefits of progressive development and promotion of Nigerian participation and local content in the oil & gas industry would be destroyed.
On Tuesday May 9, 2023, the Court upheld all the submissions of the NCDMB based on the arguments of Dejo Lamikanra, SAN of the Port Harcourt & Abuja based prestigious law firm-Creeks & Shield, Solicitors.
The court said that even if the preliminary objection against the case has not succeeded, it would still have dismissed the Drillers case on the merits because the burden of proving their case was on them ( the Drillers) and that on balance, the plaintiff failed to supply any credible evidence to support their claims in the originating summons.
The presiding judge Honourable Justice Isa H Dashen disagreed with the Drillers case. The court set aside the interim orders it granted against NCDMB in July 2022.
Further the Court dismissed the case of the Drillers as totally lacking in merit and incompetent. It held that NCDMB has the statutory power to impose 1% levy on all operators in the upstream sector of the oil and gas industry and that the levy on subcontractors of Drillers does not amount to double-taxation as claimed by Plaintiff Drillers.
While the case was on, the Committee on Oil & Gas of the National Assembly attempted to wade into the dispute but the interim ex parte order of court granted the Drillers in August 2021 frustrated the two hearing dates scheduled by the NASS.
For context, since 2010 when the NOGICD Act was enacted by the Goodluck Jonathan’s administration, local content and participation of indigenous oil & gas operator has increased from less than 10% to over 35% and growing.
Meanwhile, reports have it that the legal battle may be far from over as the theatre of “ war” has only shifted from Federal High Court to Court of Appeal where Tunde-Olowu, SAN and Oladejo Lamikanra SAN would further slug it out.
Available information indicates that one of the judicious applications of the Fund by NCDMB is the credit scheme extended to Nigerian oil and gas businesses through the Nigerian Content Intervention Fund (NCI Fund), managed by the Bank of Industry (BoI) and the Nigerian Export-Import Bank (NEXIM-Bank).
Other notable utilizations of the NCDF are the development of Nigerian Oil and Gas Parks Scheme (NOGAPS), equity participation in notable third-party ventures, Human capacity development initiatives, and the institution of the Nigerian Content Research & Development Fund as well as other R&D initiatives.
Other applications are the construction of the 17-storey Nigerian Content Tower, entrepreneurship schemes and competitions, and the ongoing construction of the Conference Hotel Project (CHP).
Naira devaluation’s fake news, says CBN
The Central Bank of Nigeria (CBN) has debunked a report by a national daily that it has devalued the naira to N631 per dollar at the Importers and Exporters’ (I&E) window.
A top official of the apex bank, who told this medium that the report is completely false , warned that such reports could have serious adverse consequences for the economy.
According to the top official, the CBN has not changed its strategy of allowing a gradual convergence of the parallel and official market exchange rates.
“The report is not true. The CBN has not devalued the naira. The exchange rate of the naira on the FMDQ website as at yesterday was N464.67 per dollar. The authors of the report may have their own agenda, but the CBN’s plan is that the best approach is to allow for a gradual convergence of all the rates.”
Business
ZENITH BANK MAINTAINS POSITION AS ‘BEST CORPORATE GOVERNANCE FINANCIAL SERVICES’ IN AFRICA FOR THE FOURTH CONSECUTIVE TIME
ZENITH BANK MAINTAINS POSITION AS ‘BEST CORPORATE GOVERNANCE FINANCIAL SERVICES’ IN AFRICA FOR THE FOURTH CONSECUTIVE TIME
For the fourth consecutive year, Zenith Bank Plc has been named as the Best Corporate Governance ‘Financial Services’ Africa 2023 by the Ethical Boardroom. The award, which was published in the Spring 2023 edition of The Ethical Boardroom magazine, is in recognition of the bank’s adherence to global best practices and institutionalization of corporate governance, setting an industry-wide example of best practices in that field.
Speaking on the recognition, the Group Managing Director/Chief Executive of Zenith Bank Plc, Dr. Ebenezer Onyeagwu, said: “I am extremely pleased that Zenith Bank has been awarded the Ethical Boardroom Corporate Governance Award as a regional governance champion for the fourth year running. No doubt, the bank’s board has pioneered the exemplary governance culture for which we are now renowned. Indeed, this recognition reflects our steadfast commitment, discipline and high ethos in the conduct of our business and dedication to the principles of good corporate governance. This award will motivate us to strengthen this culture internally and advocate for good governance at every forum”.
He dedicated the award to the Founder and Group Chairman, Jim Ovia, CFR, for providing the template for an enduring and very successful institution; the Board for their vision and outstanding leadership; the staff for their dedication and commitment; and the bank’s customers for their unwavering loyalty to the brand.
Ethical Boardroom is a trailblazing and leading international magazine that delivers in-depth coverage and critically-astute analysis of global corporate governance issues to help boards stay ahead of the governance curve.
Zenith Bank has been generally adjudged a Corporate Governance compliant bank by the Nigerian Exchange (NGX) hence its listing on the Premium Board of the Exchange. The bank continues to sustain this reputation and reappraise its processes to ensure that its business conforms to the highest global standards at all times.
The bank’s track record of excellent performances has continued to earn it numerous awards including being recognised as the Number One Bank in Nigeria by Tier-1 Capital, for the 13th consecutive year, in the 2022 Top 1000 World Banks Ranking published by The Banker Magazine; Bank of the Year (Nigeria) in The Banker’s Bank of the Year Awards 2020 and 2022; Best Bank in Nigeria, for three consecutive years from 2020 to 2022, in the Global Finance World’s Best Banks Awards; Best Commercial Bank, Nigeria 2021 and 2022 in the World Finance Banking Awards; Best Corporate Governance Bank, Nigeria in the World Finance Corporate Governance Awards 2022; Best Commercial Bank, Nigeria and Best Innovation In Retail Banking, Nigeria in the International Banker 2022 Banking Awards. Also, the bank emerged as the Most Valuable Banking Brand in Nigeria in the Banker Magazine Top 500 Banking Brands 2020 and 2021, and Retail Bank of the year, for three consecutive years from 2020 to 2022, at the BusinessDay Banks and Other Financial Institutions (BAFI) Awards. Similarly, Zenith Bank was named as Bank of the Decade (People’s Choice) at the ThisDay Awards 2020, Bank of the Year 2021 by Champion Newspaper, Bank of the Year 2022 by New Telegraph Newspaper, and Most Responsible Organisation in Africa 2021 by SERAS Awards.
Business
UBA Revitalises Alumni Network, Ex-staff to Enjoy Debt Restructuring, Product Offerings, Airport Protocol, Other Benefits
UBA Revitalises Alumni Network, Ex-staff to Enjoy Debt Restructuring, Product Offerings, Airport Protocol, Other Benefits
Africa’s Global Bank, United Bank for Africa (UBA) Plc, has relaunched the UBA Alumni Network Program, aimed at fostering stronger connections and providing exclusive benefits to its esteemed former employees.
Improving upon the services it promised when it was first launched two years ago, the revamped UBA Alumni Network will now offer a wide array of advantages designed to empower and engage ex-staff members throughout their journeys.
UBA’s Group Managing Director, Oliver Alawuba, who welcomed the Ex-staff during the UBA Alumni relaunch in UBA House on Friday, expressed the bank’s commitment to reposition the alumni to do more to ensure that ex-staff remain comfortable ambassadors of the brand.
He said, “I understand that this very key network was launched in 2021, and we have come here today to assure all the members of our alumni that UBA, which is over 75 years old, will continue to play the role of becoming a beacon of hope to our Ex-staff.
Continuing Alawuba said, “As a bank that is interested in the welfare of both staff and ex-staff, we are going to roll-out products that are specifically tailored to suit the needs of all our alumni.”
At the event, which saw a lot of former staff attended both physically and virtually, UBA’s Deputy Managing Director, Muyiwa Akinyemi, noted that the bank is where it is today because of the sacrifices made by its ex-staff several years ago, as he added that this is the driving force behind the bank’s desire to support them.
“Today, we are here, but tomorrow, we might be somewhere else, and it is therefore essential for us to bond with our former employees who we recognise as ambassadors that have contributed to the bank’s legacy in various sectors over the years,” Akinyemi stated.
He explained that with 35 million customers and over 25,000 staff, the bank remains committed to fostering a vibrant alumni community, adding that “We will continue to rely on this all important network to help us to know how to serve you better, in the four continents and 24 countries that UBA currently operates in.”
UBA staff, Wale Esan and Nnenna Chikezie, were on ground at the event to reel off some of the new offerings and benefits to be enjoyed by members of the UBA alumni, which include: Debt restructuring and moratorium for staff who left while still servicing loans; top-up loans, CoT concessions, access to senior citizens loans; fast tracking of banking services.
Other benefits are assisted airport protocol services for international travels including check-in and departure services; end to end VIP travelling services for ex-staff. The bank will also assist any staff who has challenges with the airport authorities for quick and easy resolution.
The Chairperson of the UBA Alumni Network, Mosunmola Yusuf, who was a former staff with the Employee Experience unit, explained that UBA aims to harness the wealth of knowledge and experience of its former employees, creating a powerful network that extends far beyond the continent.
“We see this as an innovative effort to build a strong bond of human community; because we believe human connectivity is necessary to promote cordial living and will assist to achieve the individual and collective goals that we plan to attain,” she stated.
UBA alumni were encouraged to send their enquiries to the email: UBAAlumnicare@ubagroup.com for quick resolution.
United Bank for Africa is one of the largest employers in the financial sector on the African continent, with 25,000 employees’ group wide and serving over 35 million customers globally.
Operating in 20 African countries and in the United Kingdom, the United States of America, France and the United Arab Emirates, UBA provides retail, commercial and institutional banking services, leading financial inclusion and implementing cutting edge technology.
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