Business

Mambilla: FG Directs NSIA to Source $200m Judgment Debt for Chinese Firm

Published

3 years ago

August 4, 2021

Eric

The Federal Government has directed the Nigerian Sovereign Investment Authority to source $200m for settlement of International Court of Arbitration in Paris award in favour of the Chinese firm, Sunrise Power and Transmission Company Limited.

Officials of the Federal Ministry of Power said the government had agreed to pay the sum and had mandated NSIA to work out measures for settling the debt.

The $200m settlement offer was to compensate Sunrise Power for the unlawful termination of the contract for the 1,525 megawatts Mambilla hydropower project and the re-award of the same to another Chinese firm.

Based on terms the settlement, Sunrise is expected relinquish all claims to the project once the requirements contained in the agreement with the Federal Government were settled.

Officials of the power ministry also stated that the new contractors for the project were on ground, holding on till when the ongoing survey of the site and compensation of land owners were completed in Taraba, where the about $4bn plant would be constructed.

The original contract for the Mabilla project was for the plant to generate 3,050MW of electricity, but this was reviewed downwards to 1,525MW and the cost cut down by $1bn to $4bn.

The Special Assistant to the Minister of Power on Media, Aaron Artimas, explained that the Nigeria Sovereign Investment Authority had been ordered by the President, Major General Muhammadu Buhari (retd.), to take up the matter.

He said the government through the NSIA and other channels was working on how to settle the debt, stressing that it was incorrect to allege that there was no plan to honour the agreement.

Artimas, however, admitted that the payment had been delayed, stressing that this was due to some challenges, which were currently being addressed.

He said, “The only issue now is the delay in payment, but the government has committed to the agreement. However, the government is explaining that the challenge of COVID-19 affected its finances.

“But despite that, the NSIA was given a mandate on this by the President, because the government has to find money somewhere, as this was not budgeted for. So the government will pay.”

The power minister’s aide also stated that the international court had not come up with any fresh issue for the Federal Government.

He said, “The international court of arbitration or commerce in Paris that did the arbitration did not say parties should come back for any fresh or new issue because the government has accepted and signed documents following that agreement.

“There is a signed agreement between the government and the firm. The document was signed by the Minister of Power and confirmed by the President. It is a standing agreement that Nigeria will pay the $200m.”

On whether work on the power project had stalled due to the legal tussle between the Federal Government and Sunrise Power, the power ministry official responded in the negative.

Artimas said, “The project has been reviewed from 3,050MW to 1,525MW in order for it to be more bankable. Once this is fully determined, the China Exim Bank that is to finance the project will come with the funding.

“The bank is funding 85 per cent of the project while the Federal Government is handling 15 per cent.

“If it was not because of the challenge of COVID-19, the President was committed to asking the NSIA (Nigeria Sovereign Investment Authority) to release funds so that contractors can mobilise to site.”

He added, “The contractors are Messrs Synohydro Corporation of China, who are the ones handling the Zungeru Power station. So they are already in Nigeria. Therefore, there should not be any challenge.”

The Head of Communications, NSIA, Titilayo Olubiyi, told our correspondent that the Mambilla power project was captured under the Presidential Infrastructure Development Fund.

He noted that although the details on how the funding of the project would be done were not available yet, work was already ongoing by the PIDF team on financing the power plant.

Olubiyi said, “I will tell you what I know for now, but will have to refer to the PIDF team to get more information because it is an ongoing project. Mambilla is part of the PIDF projects and there are five projects under the fund.

“The Second Niger Bridge is one, Lagos-Ibadan Expressway is another, Abuja-Kano Expressway is there too. Initially, the East-West Road used to be part of that fund, before the request from the Ministry of Niger Delta Affairs that it be transferred back to them.

“So there is ongoing work to address issues around financing, restructuring, etc, as it relates to Mambilla. In terms of the details as to the nature of the funding, I may have to come back to you on that.”

The NSIA official stated that the Federal Government was still interested in getting the Mambilla project running, but insisted that all necessary issues had to be cleared for a smooth delivery.

Source: The Punch

Business

Fraud Allegations Against Us False – FirstBank

Published

1 week ago

December 15, 2024

Eric

The management of First Bank of Nigeria Limited has dismissed allegations of fraud reported against it in a recent publication by an online platform, Tech Cabal, describing the claims as baseless and unsupported by evidence.

In a corporate statement titled ‘Correction of Misleading Information Regarding Fraud Allegations,’ Olayinka Ijabiyi, the Acting Group Head of Marketing and Corporate Communications, addressed the issue on behalf of the bank.

“We have been made aware of a recent publication by Tech Cabal containing allegations of fraud involving our institution. We wish to categorically state that the story is entirely unfounded and not supported by any factual evidence,” Ijabiyi stated.

The bank reaffirmed its commitment to ethical practices and transparency, urging the public to disregard the allegations. It emphasized its dedication to maintaining trust with its customers and stakeholders while upholding its longstanding reputation as a leader in Nigeria’s financial sector.

First Bank reiterated its focus on delivering reliable and trustworthy banking services, dismissing the report as misleading and lacking merit.

Business

UBA Group to Commence Full Banking Operations in France

Published

3 weeks ago

November 29, 2024

Eric

As part of President Bola Ahmed Tinubu’s state visit to France, the Chairman of UBA Group, in the presence of President Tinubu and the President of France, Emmanuel Macron, signed a landmark business cooperation agreement with the French Finance Minister, Antoine Armand. The agreement is a significant indication of support by the French Government for the development of UBA’s full banking operations in France.

Speaking at the signing ceremony, Tony Elumelu, the Chairman of UBA Group commented: ”This partnership reinforces our commitment to seamless international banking services for our customers, not just across the 11 Francophone African countries we serve, but Africa as a whole; and French and European customers transacting with Africa. Expanding into France is a natural progression, with Paris serving as our European Union hub, as we continue to bring Africa and the world together, through innovative financial solutions. Paris will join London, New York and Dubai, as a critical component of our unique global network.”

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 45 million customers globally. Operating in twenty African countries and 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.

Business

Built to Last: UBA Set to Empower MSMEs with Wealth Management Strategies

Published

1 month ago

November 20, 2024

Eric

As part of its commitment to deepen the growth and sustainability of micro, small and medium-scale enterprises (MSMEs) on the continent, Africa’s Global Bank, United Bank for Africa (UBA) Plc, is set to host the last edition of its quarterly business series for the year.

This edition of the business series, “Profit with Purpose, Business Continuity,” will be held on Thursday, November 21st 2024, by 12 PM (noon) at the Tony Elumelu Amphitheatre, UBA House, Marina, Lagos and intending participants are expected to register via the Registration Link at https://ubagroup.zoom.us/webinar/register/WN_UG0EUWSLTZqu91jSMSih5w

The UBA Business Series is a regular seminar/workshop organised by the bank as capacity-building initiatives for small businesses, where leading business leaders and professionals share well-researched insights on relevant topics and best practices for running successful businesses, especially in a challenging business environment.

This edition seeks to showcase businesses that are resilient and have done well through generations, adapting to political and economic changes.

Renowned leaders from diverse industries, including a prominent lawyer, award winning film director, and producer, Bolanle Austen-Peters whose work has significantly impacted Nigerian Cinema, and theatre will headline this last quarter’ series. Her recent film House of GA’A has achieved a major milestone, reaching Netflix’s Global 10 list for indigenous language films.

Other prominent entrepreneurs who will be on ground to give insightful tips are, Founder and Chief Executive of Asadtek Group Limited, Ghana; Dr. James Asare-Adjei; Award winning TV Personality & Multi Media Entrepreneur, Frank Edoho, Celebrated multimedia personality, Toke Makinwa and founder of Nigeria’s pioneering indigenous premium coffee brand, Happy Coffee, Princess Adeyinka Tekena.

UBA’s Group Head, Retail and Digital Banking, Shamsideen Fashola who spoke on the upcoming workshop, said the vast knowledge and experience of the panellists, will give business owners more insight towards the importance of personal finance, wealth management and most importantly how to navigate the frailties of the harsh economy to ensure business growth.

“We know small businesses are vital to the growth and advancement of every economy, that is why at UBA, we constantly look for ways of ensuring that these business owners and operators are well-equipped to grow their businesses successfully,” he said.

“This edition provides a platform for SMEs to learn from experienced entrepreneurs who have built and sustained businesses through the decades.

“Hearing their stories and strategies will be invaluable for any business owner looking to build a lasting enterprise,” Fashola said.

Also speaking ahead of the event, UBA’s Group Head, Marketing & Corporate Communications, Alero Ladipo, noted that the business series is an invaluable learning opportunity, targeted at helping young and aspiring entrepreneurs scale up their businesses.

Ladipo further said, “At UBA, we are committed to empowering businesses of all sizes, and this business series is one way we are fulfilling that commitment.

“To this end, we have assembled an esteemed panel of speakers who will share their wealth of experience and insights on building a generational business. This is a must-attend event for anyone serious about the long-term success of their enterprise,” she said.

United Bank for Africa Plc is a leading Pan-African financial institution, offering banking services to more than forty-five million customers, across 1,000 business offices and customer touch points in 20 African countries. With presence in New York, London, Paris and Dubai, UBA is connecting people and businesses across Africa through retail, commercial and corporate banking, innovative cross-border payments and remittances, trade finance and ancillary banking services.