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Economy

Minister Charges FRCN Board To Boost Ease Of Doing Business

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  • As SEC sacks Ikeja Hotels board

The Minister of Industry, Trade and Investment, Dr Okechukwu Enelamah, has called on the board of the Financial Reporting Council of Nigeria (FRC) to ensure high standards in financial reporting.

Enelamah, who inaugurated the board on Thursday in Abuja, said it should work towards achieving the government’s vision on the global Ease of Doing Business Rankings.

“The investment case is stronger when investors and other stakeholders have increased confidence that their interests are protected.

“The government is irrevocably committed to moving Nigeria up the rankings of the global ease of doing business and is conducted by the World Bank.

“We will like to move at least 20 places in this year, and by the time this government is coming to an end, we will like to be in the top 100.

“Therefore, I will like to request that you realign your operations in this direction and please let us be business-friendly.’’

Enelamah said that the 23 member board would help restore full oversight to the council thereby enabling the organisation to carry out its mandates more effectively.

The minister said the objectives of the board were to protect investors and other stakeholders’ interest, give guidance on issues relating to financial reporting and corporate governance to professional, institutional and regulatory bodies.

According to him, it would also ensure accuracy and reliability of financial reports and corporate disclosures, pursuant to the various laws and regulations currently in existence in Nigeria among others.

In his speech, the Chairman of the Board, Mr Adedotun Suleiman said that effective public financial management was critical in the government’s drive to improve the quality of life of the ordinary Nigerian.

Suleiman said the board would constructively engage with relevant stakeholders and forge strategic alliances with other relevant regulatory agencies and organisations.

“We understand the expectation of this government, especially in the area of aligning corporate financial reporting and corporate governance practice to international benchmark.

“The board will focus on rebuilding the confidence and integrity of financial reporting and the robustness of corporate government practices in Nigeria.

“And work towards securing the support and buy-in of all stakeholders, the government, the private sector, the not-for-profit sector as well as the international community, academia and civil society in support of achieving its objectives .’’

He said the board would support the management in eliciting the accord of all stakeholders and restore public confidence in the council.

In the meantime, the Securities and Exchange Commission (SEC) yesterday dissolved the board of directors of Ikeja Hotels Plc and ordered a forensic investigation into the affairs of the hospitality and tourism company. Chief Anthony Idigbe (SAN) is the interim chairman.

The apex capital market regulator said it sacked the board due to unresolved internal crisis involving some majority shareholders of Ikeja Hotels Plc, in apparent reference to the squabbles within the Ibru family, which holds the largest shareholdings in the company.

In a statement, SEC described the dissolution as a proactive measure to disallow the warring parties from taking certain actions that would give them an advantage over one another.

Ikeja Hotels, incorporated in 1972 and quoted on the NSE in 2007, controls a chain of hotels directly and through other subsidiaries and affiliates, including Tourist Company of Nigeria (TCN) Plc and Capital Hotel Plc. Ikeja Hotel. Sheraton Hotel, Ikeja, Lagos. TCN owns Federal Palace Hotel while Capital Hotel owns Abuja Sheraton Hotel. The Ibru family owns the single largest individual shareholding.

SEC noted that it had, in a bid to forestall chaos in the company, in conjunction with other distinguished personalities, held meetings with the existing board towards resolving the crises but the company continues to be plagued with unhealthy corporate governance practices in disregard of the code of corporate governance for public companies.

According to the Commission, as a public company, it is paramount that the activities of the company are conducted within the confines of corporate governance regulations in the Nigerian capital market, to ensure the protection of minority shareholders and other investors.

“Having failed to resolve its lingering crisis, the Commission in exercise of the powers conferred on it by the Investment and Securities Act, 2007 to protect investors and the integrity of the securities market, hereby approves the appointment of an interim Board for the company with Chief Anthony Idigbe, SAN as interim chairman,” SEC stated.

SEC told the interim board to oversee the conduct of a forensic investigation into the affairs of the company, among other responsibilities.

“It is the Commission’s expectation that the shareholders and key management staff of the company will work with the new team to ensure that the fortunes of the company are restored in the shortest possible time,” SEC stated.

The Nation had earlier reported that Nigeria’s apex capital market regulator, SEC was scrutinising an investigative report on the boardroom crisis at Ikeja Hotel, after the simmering ownership and management crisis within the Ibru family snowballed into a major onslaught by the Economic and Financial Crimes Commission (EFCC).

Capital market sources told The Nation that the regulators had dusted up investigative reports on Ikeja Hotel to review the facts and proactively act to protect shareholders’ interests.

A source at SEC said the apex capital market regulator had received a comprehensive report from the NSE, and the Commission had started reviewing the report in line with the market’s complaint management framework.

Authorities at the Nigerian Stock Exchange (NSE) had in November 2016 also suspended trading on the shares of Ikeja Hotels in apparent response to the high-stake dispute in the Ibru family.

Additional report from Nation

Economy

PETROL: ‘Be Wary Of Substandard Product Dumping’, Dangote Refinery Tells Nigerians

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PETROL: 'Be Wary Of Substandard Product Dumping', Dangote Refinery Tells Nigerians

…Says citizens’ health and vehicle longevity are seriously at risk!

The Dangote Refinery on Sunday warned that Nigerians may soon begin to buy substandard petrol, without much concern for either the citizen’s health or the longevity of their vehicles, except care is taken to prevent low products dumping by those open to connive with certain international traders.

The Group’s image maker and spokesman, Anthony Chiejina gave the warning, saying the group was constrained to raise the alarm, despite its desire to refrain from engaging in any media fights.

“We have lately refrained from engaging in media fights but we are constrained to respond to the recent misinformation being circulated by IPMAN, PETROAN, and other associations. 

“Both organisations claim that they can import PMS at lower prices than what is being sold by the Dangote Refinery. We benchmark our prices against international prices and we believe our prices are competitive relative to the price of imports”, Chiejina stated, stressing that the issue on ground was not about being able to land relatively cheaper petrol on ground, but the quality of such products.

“If anyone claims they can land PMS at a price cheaper than what we are selling, then they are importing substandard products and conniving with international traders to dump low-quality products into the country, without concern for the health of Nigerians or the longevity of their vehicles. Unfortunately, the regulator (NMDPRA) does not even have laboratory facilities which can be used to detect substandard products when imported into the country.

“Post deregulation, NNPC set the pace by selling PNS to domestic marketers at N971 per litre for sale into ships and at N990 for sale into trucks. This set the benchmark for our pricing and we have even gone lower to sell at N960 per litre for sale into ships while maintaining N990 per litre for sale into trucks.

“In good faith, and the interest of the country, we commenced sales at these prices without clarity on the exchange rate that we will use to pay for the crude purchased.

“At the same time, an international trading company has recently hired a depot facility next to the Dangote Refinery, intending to use it to blend substandard products that will be dumped into the market to compete with Dangote Refinery’s higher quality production.

“This is detrimental to the growth of domestic refining in Nigeria. We should point out that it is not unusual for countries to protect their domestic industries to provide jobs and grow the economy. For example, the US and Europe have had to impose high tariffs on EVs and microchips to protect their domestic industries.

“While we continue with our determination to provide affordable, good quality, domestically refined petroleum products in Nigeria, we call on the public to disregard the deliberate disinformation being circulated by agents of people who prefer for us to continue to export jobs and import poverty”, the Group Chief Branding and Communications Officer further said.

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YULETIDE Decorations: LASG To Divert Traffic At Ajose Adeogun

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YULETIDE Decorations,: LASG To Divert Traffic At Ajose Adeogun

The Lagos State Government will divert Traffic, away from a section of Ajose Adeogun Street in Victoria Island, for the mounting of end-of-the-year decoration, for a duration of three weekends starting from Saturday 19th October 2024.

The aforementioned exercise, according to Commissioner for Transportation, Oluwaseun Osiyemi,  will be carried out in three phases with each phase focusing on different sections of the street. 

To this end, the following alternative routes have been mapped out for motorists during the cause of the mounting; 

 During the First Phase which will cover Jubril Martins to Chicken Republic – (Saturday, 19th and Sunday, 20th October 2024)

Traffic inward Eko-Hotel Roundabout will be diverted to the other half (existing section) of Ajose Adeogun Street by VCP Hotel to form contra-flow traffic and exit at Eko-Hotel Roundabout to continue journeys.

Alternatively, Traffic inward to Eko-Hotel Roundabout from VCP Hotel will be diverted through Jubril Martins into Muri Okunola to link Patience Coker and access Ajose Adeogun Street to connect destinations.

During the Second Phase which will cover Molade Okoya Thomas to Mounis Bashorun section – (Saturday, 26th and Sunday, 27th October 2024). 

Traffic inward Ajose Adeogun Street from Eko-Hotel Roundabout will be diverted to a right turn into Molade Okoya Thomas to link Younis Bashorun to access Ajose Adeogun Street to continue journeys. 

During the Third phase of the project spanning 10 meters inward Ajose Adeogun (Saturday, 2nd November, 2024).

Motorists from Adetokunbo Ademola Street will maintain a lane movement for about 10 metres into Ajose Adeogun Street to connect their destinations, while Motorists inward Eko-Hotel Roundabout on Ajose Adeogun Street will maintain a lane movement for about 10 metres into Eko-Hotel Roundabout.

The Lagos State Commissioner for Transportation, Mr Oluwaseun Osiyemi while imploring Motorists to note the ease of movement plan assured that the State’s Traffic Management Authority will be on ground to manage vehicular activities along the corridor to minimise inconveniences.

The Commissioner therefore advised Motorists to be patient, as the Partial closure is part of the traffic management plans for the commencement of End of Year Decoration of Ajose Adeogun Street, Victoria Island, Lagos, by Zenith Bank PLC.

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Economy

NLC Kicks, Says Petrol Hike Will Further Deepen Poverty, Job Loss

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NLC kicks, Says Petrol Hike Will Further Deepen Poverty, Jobs Lost

The Nigeria Labour Congress (NLC) has kicked against the current petrol price hike, stressing that the latest increase in the pump price of petrol will further deepen poverty as production capacities dip.

The Congress added that the increase would lead to more job loss with multidimensional negative effects, and therefore, demanded its immediate reversal.

NLC’s position is contained in a statement signed by its President, Mr Joe Ajaero on Wednesday in Abuja, titled, “What next after increase in pump price?”.

The labour leader said the previous increases had not produced any good results, rather, people only got poorer.

He said the Congress was dismayed by the latest increase in the pump price of petrol without commensurate capacity of Nigerians or mitigatory measures.

“Even following the logic of market forces, we find it an aberration that a private company (NNPCL) is the one fixing prices and projecting itself as a hegemonic monopoly.

“We challenge the government to go to the drawing board and present us with a blueprint for inclusive economic growth and national development instead of this spasmodic ad hocism and palliative policy.

“It needs no stating the fact that the latest wave of increase has grossly altered the calculations of Nigerians once again at a time they were reluctantly coming to terms with their new realities,” he said.

It would be recalled that the Nigerian National Petroleum Company Limited (NNPCL) had raised the pump price of petrol by 14.8 per cent to N1,030 per litre from N897 across its retail outlets in the FCT.

Earlier in September, the NNPCL had increased the price of the product from N615 to N897.

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