Thread by @ugodre

Good Evening and welcome to
@Nairametrics Corporate News Roundup for the week ended September 15, 2019.
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1. The Nigerian Liquefied Natural Gas (NLNG) is seeking a $2 billion facility from Nigerian banks, as part of funding for Train 7, its gas project.
CEO of the company, Tony Attah, disclosed this in an interview with Bloomberg.

Train 7 is expected to cost $10 billion, so the rest of its funding will be from foreign lenders and export credit agencies.

The NLNG is a joint venture comprising the Federal Government, represented by the Nigerian National Petroleum Corporation (NNPC) with 49% interest; Shell Gas B.V, which has 25.6%; Total Gaz Electricite Holdings, France with 15%; and Eni International, with 10.4%.

2. SCD Group, a Joint Venture consortium comprising Saipem, Daewoo and Chiyoda, has won the contract for the construction of the NLNG Train 7 project.

The announcement was made at the signing of the Letter of Intent for the NLNG Train 7 EPC contract.

The Final Investment Decision would be signed by the end of October.

At the event, Managing Director of the NLNG, Mr Tony Attah, stated that the company had concluded arrangements to ensure that after the signing, the project would be completed within four to five years.

3. The Federal Executive Council (FEC) has approved an increase in the Value Added Tax (VAT) to 7.5% from 5%.
The Minister of Finance, Budget and National Planning, Zainab Ahmed, disclosed this to state house correspondents at the end of the cabinet meeting held last Wednesday.

About N7.5 trillion is expected to be made from the increase, with 15% going to the FG, while the States and Local Governments will share 85%.

Initial reports had put the proposed rate at 7.2% but the minister apparently was misquoted.

4. The Federal Government will commence deducting the N614 billion budget support facility from state governments this month.

Minister of Finance, Budget and National Planning, Mrs Zainab Ahmed, made this disclosure in Abuja while presenting a draft of the 2020 to 2022 Medium Term Expenditure Framework and Fiscal Strategy Paper.

According to Ahmed, the indebted states would start getting direct debits from their monthly Federation Account Allocation Committee (FAAC) disbursements.

The deductions would be made from the states’ monthly federal allocations and directly remitted to the Central Bank of Nigeria.

Meanwhile, some state governors are reportedly trying to lobby the FG for an extension.

5. Members of the organized private sector, which include the Manufacturers Association of Nigeria (MAN), Lagos Chamber of Commerce and Industry (LCCI), Nigeria Employers’ Consultative Association (NECA). and several others have kicked against the proposed VAT increase.

MAN President, Mansur Ahmed, said that the plan to increase VAT would worsen the current economic hardship which Nigerians are experiencing at the moment.

6. About 23,141 defaulters are owing tax liabilities totalling N254 billion. Executive Chairman of the FIRS, Babatunde Fowler, made this known during the 49th annual conference organized by the Institute of Chartered Accountants of Nigeria (ICAN) in Abuja.

Fowler also disclosed that the FIRS had recovered over N97.7 billion from tax defaulters since banks placed restrictions on their bank accounts.

7. Former Governor of Cross River State, Donald Duke, has denied the Asset Management Corporation of Nigeria’s (AMCON) claim that he owed N537,334,360.77.

In a statement made available to the public, Duke stated that he had owed N350 million, which had been repaid.

According to Duke, AMCON claimed that he owed an extra N137,334,360.77 and when he disputed the figure, the corporation filed a suit against him so as to arm-twist him into paying the disputed sum.

8. The Federal Government has approved the release of N100 billion for the completion of the Kano Free Trade Zone.

Acting Managing Director of the Nigeria Export Processing Zone Authority (NEPZA), Terhemba David Nongo, made this known during an interview.

9. The Bureau of Public Procurement (BPP) has disclosed that it saved N26.86 billion for the Federal Government in 2018, through a downward review of inflated contracts by the ministries and agencies of government.

According to the Bureau’s annual report, the total amount saved stemmed from the review of contracts awarded to contractors by various Ministries, Departments and Agencies (MDAs) and the Central Bank of Nigeria before being given a certificate of “No Objection’’ by the bureau.

The report shows that out of the inflated amount saved, the highest amount of N22.22 billion was recorded from the Ministry of Power, Works and Housing. The money was saved from an initial request of N877.40 billion.

10. Companies operating within the shores of Nigeria will soon have to pay extra, due to the Nigerian Police Trust Fund Act, which was recently signed into law by President Muhammadu Buhari

The Nigerian Police Trust Fund Act specifies the imposition of a 0.005% levy on every Nigerian company’s net profit.

11. Red Star Express Plc, a logistics and cargo generating company, has started its general sales agent services in partnership with Azman Air Services Limited.

The company would be connecting passenger goods and packages from one airport to another using Azman Air's carriers.

`12. Fintech startup, Kuda, has raised the sum of $1.6 million as seed funding.
The funds were raised in a Pre-Series A round led by Haresh Aswani, Managing Director, Africa Division of the Tolaram Group, Ragnar Meitern and other angel investors.

Proceeds of the fundraising will be used for further development of its banking platform.

Kuda, which is a digital bank, will commence operations in the final quarter of the year.

13. Cornerstone Takaful Insurance Company Limited and Salam Takaful Insurance Company Limited have been granted provisional approval by the National Insurance Commission (NAICOM).

Takaful is a type of Islamic insurance that operates according to Sharia or Islamic law tenets. It majorly covers health, life and general insurance needs.

In this type of insurance, members contribute money into a pool system to guarantee one another against loss or damage. Any claims made by participants are paid out of the takaful fund.

14. Arla Foods, a Danish company and one of the biggest dairy firms in the world, has signed a Memorandum of Understanding with the Kaduna State Government.

The company will invest $100 million in projects to help boost milk production in the state.

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