Shell has accused Venture Global of wrongfully earning $3.5 billion, according to a news report by Financial Times.

The irony of Shell’s arbitration case against Venture Global LNG, United States of America (U.S.A.), is that Shell’s partner, the Nigeria Liquefied Natural Gas (NLNG), has been sanctioned by a London Arbitration Court and The High Court of Justice of England and Wales for a similar breach of LNG supply contract it failed to deliver due to an alleged unprecedented and historical improvement in LNG spot prices.

The British oil major alleges that the United States (U.S.) gas giant (Venture Global LNG) redirected gas shipments to higher-priced spot markets instead of keeping its long-term contracts with European customers.

Shell has accused U.S. gas company Venture Global of wrongfully earning $3.5 billion, after delivering LNG shipments to higher-priced spot markets following a commodities price spike after Russia invaded Ukraine in February 2022.

Venture Global LNG had earlier on condemned Shell for its poor performance track record at its LNG facilities.

Many LNG Industry watchers relate this allegation by Venture Global to NLNG’s London arbitration and court cases, where it was found that Nigeria LNG breached a contract for failing to deliver 19 cargoes of LNG, a contract it executed in January 2020, the arbitration panel was made up of John Beechey CBE, J William Rowley KC and Nevil Phillips.

Further investigation from Online reports, reveals a staggering disregard of contract terms and conditions by NLNG. This is captured in an anonymised Judgement of The High Court of Justice of England and Wales issued against NLNG, on 31st July, 2024.

The allegations by Shell against Venture Global are surfacing ahead of arbitration hearings Shell and several other energy companies have initiated against Venture Global, a newcomer that has disrupted the global LNG market, as reported by Financial Times.

Shell’s claim was based on a study commissioned by Compass Lexicon consultancy, which aimed to determine the extra revenue Venture Global had seemingly wrongfully earned by denying certain European customers their contracted cargoes.

Shell Chief Executive Wael Sawan had expresssed his view on the Venture Global breach stating that “it is not in the spirit of what we have typically seen, nor is it the norm in LNG business.

“The global LNG business has been built over the past 60, 70 years on the back of sanctity of contracts, on the back of really ensuring that suppliers and buyers live up to their part of the bargain.”

The Global LNG Market is focusing on these proceedings as it will surely have a fundamental impact on future financial and legal ratings as well as stringent contract provisions to enforce and respect the sanctity of contracts between LNG counterparts.

On the side of Nigeria LNG (NLNG) it is yet to be confirmed if it will proceed to the UK Court of Appeal, to seek an appeal against the judgment issued.

Nigeria’s maiden foreign-currency domestic bond recorded a subscription of $900 million, overshooting the initial offer size of $500 million.

Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, spoke on the results of the landmark sovereign bond yesterday.

He said the oversubscription of the $500 million further highlighted continuing investor confidence in Nigeria’s economic stability and growth.

According to him, the huge success of the first-ever domestic dollar bond has strengthened the government’s efforts at deepening economic growth and advancing financial inclusion.

He noted that the successful issuance underscored the government’s commitment to diversifying its sources of funding and bolstering economic growth despite current economic challenges.

Edun said: “The issuance of this inaugural domestic FGN US Dollar Bond demonstrates that investors, as well as Nigerians, continue to have faith in the country’s economy.”

He explained that the landmark bond issuance attracted a diverse range of investors, including Nigerians and non-Nigerians residing in the country, Nigerians in the diaspora, as well as qualified institutional investors.

He reiterated that the net proceeds from the bond would be directed towards critical sectors of the economy as approved by President Bola Ahmed Tinubu.

He affirmed that Nigeria’s economic trajectory remains bright as shown by key headlining economic indices, including the extremely successful issuance of the inaugural domestic foreign-currency-denominated bond.

According to him, the forthcoming listing of the dollar-denominated bond on the Nigerian Exchange (NGX) and FMDQ Securities Exchange will position Nigeria as a key player in deepening its capital markets and promoting financial inclusion.

The Series I $500 million Domestic FGN US Dollar Bond, a five-year bond with a coupon of 9.75 per cent, is the first tranche of the $2 billion bond registered by the Federal Government with the Securities and Exchange Commission (SEC).

The bond’s structure allows the government to absorb oversubscriptions within the limit of the programme’s total size of $2 billion.

The bond was issued sequel to Presidential Executive Order No. 16 of 2023.

Director General of Debt Management Office (DMO), Ms Patience Oniha, said the huge success of the $500 million bond was a pivotal step in Nigeria’s economic development.

She said DMO was very pleased with the remarkable outcome of the capital raising, noting that the over $900 million from diverse investors attested to the depth and increasing sophistication of the domestic fixed-income securities market.

She reaffirmed the Federal Government’s commitment to collaborating with investors and stakeholders to drive economic growth and development in the country.

Oniha commended all the parties involved in the transaction, noting that its success was made possible through the advisers’ expertise and guidance.

She added: “We also appreciate the continued support of the Nigerian public and our institutional partners who contributed to the successful completion of this historic issuance.”

Yesterday’s announcement of the offer results confirmed The Nation’s exclusive reports on the success of the innovative bond issue.

Market sources said the success of the $500 million bond would open up a new window of capital raising for other tiers of government and companies, with the maiden sovereign bond serving as a benchmark for subsequent issuances.

Four days before the September 15, 2024, date announced by the Nigerian National Petroleum Company Limited to start lifting Premium Motor Spirit, popularly called petrol, from the Dangote Refinery, investigations by The PUNCH show that no commercial agreement has been reached to that effect by both parties.

Multiple sources from NNPC and Dangote confirmed on Tuesday that the two oil firms had yet to reach a deal on the quantity and pricing of PMS to be lifted by the national oil company.

On September 5, 2024, the Executive Vice President of Downstream, NNPC, Adedapo Segun, said during a live television programme that the company would lift Dangote petrol on September 15.

He also outlined factors that would determine the price of the commodity, as he stated that foreign exchange rates and market forces would influence the cost of petrol, stressing that the market had been deregulated.

But on Tuesday, government sources close to the development revealed that no paperwork had been signed by both parties for the lifting of petrol from the $20bn Dangote refinery by NNPC from September 15.

They stated that the terms and conditions required for the deal had not been agreed on, stressing that the national oil company may not lift any petrol from Dangote on the announced date.

When told that September 15, 2024, is around the corner and asked whether plans had been concluded for NNPC to lift Dangote petrol from that day, a senior official at Dangote refinery, who spoke to one of our correspondents in confidence due to lack of authorisation to speak on the matter, said nothing had been agreed on pricing, and petrol lifting, among other things.

“Right now, no documentation from NNPC and NMDPRA (Nigerian Midstream and Downstream Petroleum Regulatory Authority) on product lifting. Nobody has spoken to us that they want to pick up PMS on September 15.

“For you to come and pick products in five days there must be discussions on pricing and other things, which is the commercial engagement. Of course, there must be an offer and other things, the lawyers will structure the terms and conditions,” the source stated.

On how PMS lifting from the Dangote refinery could be, the official replied, “It will be through the same way that products are imported and put in terminals before being lifted by marketers for distribution across the country.”

Another official at the Federal Minister of Petroleum Resources, corroborated the position of the Dangote source, stating that “nothing concrete has been agreed on right now in terms of petrol lifting, but I believe the process is still ongoing.”

A seasoned business adviser to several companies in the upstream, midstream, and downstream oil and gas sectors in Nigeria, Mr Dan Kunle, urged President Bola Tinubu to intervene in the matter.

“The President must act now to address the concerns caused by the issues surrounding the supply of petrol and how this has been fueling the socioeconomic crisis across the country,” he advised.

The spokesperson for the NNPC, Olufemi Soneye, had yet to respond to enquiries on the matter up till when this report was filed on Tuesday night.

Refiners react

Also on Tuesday, the Crude Oil Refiners Association of Nigeria said the Dangote refinery petrol might be cheaper if it gets the necessary concessions from the Federal Government.

CORAN’s comment is coming amid fears that the Dangote petrol may be more expensive when released into the market.

The PUNCH reports that the refinery has yet to roll out its petrol a week after it was unveiled by the President of the Dangote Group, Aliko Dangote.

Marketers had expressed fears that the product from the Dangote refinery may be as high as N1,000/litre considering the current landing cost of petrol.

However, speaking in an interview with our correspondent on Tuesday, CORAN Publicity Secretary, Eche Idoko, disclosed that there is no way Dangote’s PMS will be more expensive if the government fulfils its promises.

While saying he was not in a position to determine the price, he stated, “There’s no way his fuel will be too expensive if all the other concessions the government has arranged come to bear. So, if those come to bear, definitely his prices will be cheaper.

“The only thing that will make his products more expensive is if he gets the crude on a higher term. That was all we were crying out for the first time. We must have a special pricing arrangement for local refining like it’s done in other places,” he suggested.

The CORAN spokesman advocated that the committee set up by the Federal Government on naira crude sale to local refineries should come up with a report, while the Nigerian Midstream and Downstream Petroleum Regulatory Authority will guide on prices.

He also requested, “For those of us who are local refiners, we must be able to create a special pricing arrangement for both feedstock and the refined product that will satisfy the Nigerian people.”

The position of the association, he said, is to make sure members break even in business while producing the quality specification that best serves Nigerians and delivering it at a reasonable price that will satisfy Nigerians.

He told our correspondent that the group was planning to meet with Dangote on pricing.

“By the time we interact with Dangote on his pricing arrangement, we will be able to address him where we deem it necessary and then we will also come out and publicly address the press on that. At this instance, we are yet to do that,” he said.

On the back and forth between the Dangote refinery and the Nigerian National Petroleum Company Limited, Idoko said refiners were not surprised.

“We are not surprised at what is happening. Usually, when there is going to be a market shift, the incumbents are bound to react,” he noted.

He stressed that discussions are still ongoing and there is nothing concrete yet.

“Because there is nothing concrete and everything is still based on speculations and bickering from both Dangote and NNPC, we don’t want to take a position until the negotiations are completed, especially with the committee set up by the Federal Government to see to the supply of crude in naira is completed and we are properly briefed, then we can give a position.

“But, by way of summary, our position ultimately will be what would be in the interest of, first, the Nigerian people, and then secondly, we would also throw our weight behind people who are seeking to invest in our economy. Those are the two paramount things.

“We always keep telling the government and telling anybody who cares to listen, that the decisions that have to be reached on local refining shouldn’t be done from the lens of one man alone. Dangote means just one out of many of us.

“So, we want the decision of the government to be palatable to even new entrants. So, in this instance, we want to tell the government to actually look at the broader picture of things and not say, ‘We are doing this because of Dangote’. We are doing it because of new entrants that are coming tomorrow,” he stressed.

According to him, refining locally has its advantage over importing products.

“As Nigerians, we also expect that in the overall pricing, Dangote is going to be circumspect and would look at the interest and purchasing power of Nigerians. Even though we know he’s in the business for gain, we do expect, as the person that he is, that he’s going to look at the interest of Nigerians in arriving at a price.

“We also want to advise NNPC to be very transparent about it and it’s not the time for politics because people are really suffering,” Idoko mentioned.

On the condition of the NNPC that it would only pick Dangote PMS if it is cheaper, Idoko maintained that the intervention of the Federal Government is still being awaited.

“I know if Dangote gets a special arrangement, they will also sell under that special arrangement for that quantity they are going to be refining. So, a lot is still going on right now. And then as an umbrella association, we don’t want to make any statement until we have seen the actual facts.

“But I think whatever you are seeing in the press is the normal thing that happens between the two parties trying to buy. So everything is done to give you a negotiating advantage. And in this case, playing to the people’s sentiments is key.

“But when it comes to pricing, I know that some compromise will be reached sometime, but our position is that whatever the compromise is, it should be in the overriding interest of Nigeria and Nigerians.

“Dangote has not briefed us nor has the committee set up by the Federal Government reverted to us on what had been agreed. We have told them what our intentions are and we have told them w

The Nigerian banking sector is facing significant challenges that could impede its growth and innovation.

Tony Elumelu, Chairman of UBA Group, has said that high regulatory and compliance costs are placing undue pressure on banks, potentially stifling the sector’s ability to contribute to Nigeria’s economic growth, indicating that the Nigerian banking sector is facing significant challenges that could impede its growth and innovation.

Elumelu said this during his keynote speech at the CIBN 17th Annual Banking & Finance Conference on Tuesday.

He noted that despite the sector’s critical role in Nigeria’s economy, employing millions and supporting countless businesses, regulatory challenges remain a significant concern.

He urged stakeholders, including government agencies, regulatory bodies, and banking institutions, to engage in meaningful dialogue to create a more collaborative environment.

Elumelu said: “The sector employs millions, provides crucial financial support to countless businesses, and generates income for millions of shareholders. However, the sector faces challenges that impede its growth and innovation, including regulatory and high compliance costs.”

Other key issues
Elumelu tackled several pressing issues beyond the challenges facing the banking sector.

He highlighted the critical need for Nigeria to address its infrastructure and energy deficiencies, stressing that reliable access to electricity is fundamental for economic growth. Without it, industrialization and education remain severely hindered, preventing the country from unlocking its full potential.

Elumelu also discussed the national security crisis, calling for decisive action to ensure safety for citizens and attract investment. He argued that a secure environment is essential for economic prosperity, as it allows businesses and agriculture to flourish without fear.

Also, the empowerment of youth entrepreneurs was a focal point. Elumelu emphasized the importance of creating an enabling environment for young Nigerians to start businesses, thus driving economic growth. He called on the government and private sector to invest in youth initiatives, ensuring that opportunities are created locally to stem the tide of migration.

Elumelu concluded by stating the impact of his business and philanthropic efforts through Heirs Holdings, UBA Group, and the Tony Elumelu Foundation. These entities are making significant contributions to power, energy sufficiency, job creation, and youth entrepreneurship across Africa, embodying his vision of Africapitalism, which is economic development driven by the private sector for social good.

What you should know
Nairametrics earlier reported that the Central Bank of Nigeria (CBN), alongside law enforcement agencies, would closely monitor the Nigerian banking sector’s recapitalization efforts to prevent the influx of illicit financing into the sector.

In a circular, the CBN made clear its intention to apply its robust anti-money laundering regulations vigorously. With the collaboration of relevant law enforcement agencies, the bank aims to ensure that the capital raised during the recapitalisation process is free from the taint of illegality.

Banks are required to conduct comprehensive anti-money laundering screening checks.

This includes Know Your Customer (KYC), Customer Due Diligence, and monitoring suspicious transactions to prevent the use of illicit funds in the recapitalisation exercise.

Also, the Economic and Financial Crimes Commission (EFCC) is poised to take legal action against top executives in Nigeria’s banking sector over allegations of financial crimes, including money laundering and fraudulent practices.

In a strategic move to reduce fuel costs and provide Nigerians with an affordable alternative to petrol and diesel, President Bola Ahmed Tinubu has made Compressed Natural Gas (CNG) available for vehicles at N230 per litre.

This initiative offers a cheaper and cleaner alternative to petrol, which currently sells for over N900 per litre, reflecting the President’s commitment to lowering the cost of living and alleviating the pressures of fuel subsidy removal.

The Presidential Compressed Natural Gas Initiative (PCNGi), launched under President Tinubu’s directive, aims to deliver wide-reaching benefits by significantly cutting fuel costs.

The introduction of CNG as a fuel source aligns with the government’s drive towards energy diversification and is designed to bring immediate relief to Nigerians, especially those who depend on transport for their livelihoods.

As part of this initiative, President Tinubu has ordered the distribution of one million free CNG conversion kits to commercial vehicles involved in transporting people, food, and goods.

These kits, along with free installation, will be rolled out over the next 18 months, helping the transport sector transition to CNG and benefit from significantly lower fuel prices. The distribution of these kits will be conducted in collaboration with key partners, ensuring nationwide accessibility.

In the first phase of the initiative, PCNGi will begin the immediate distribution of 10,000 free conversion kits this week.

These kits will be provided at no cost to transport operators through key national transport associations, including the National Union of Road Transport Workers (NURTW), Moove, Uber, and the Kaduna State Transport Authority (KSTA).

This will enable commercial drivers to switch their vehicles to run on CNG, easing the cost burdens for both transporters and the public.

The distribution process is supported by PCNGi in partnership with NIPCO Gas, which will manage the conversion process through a network of authorized conversion centers across Nigeria. These centers will provide the necessary infrastructure and services to ensure a smooth transition for vehicles switching to CNG.

By adopting CNG, Nigeria is embracing a cleaner, cheaper, and more sustainable fuel alternative that benefits both the economy and the environment. The government’s goal is to distribute the full one million conversion kits by the end of 2025, ensuring Nigeria’s commercial transport sector is fully equipped to adopt CNG and reduce dependence on costly petrol and diesel.

Some of the 184 active conversion centers include Kojo Motors, Surulere; OttoXpress Limited, Ikoyi; AutoMedics Limited, Ilupeju; Briscoe Nigeria Plc, Rivers; Rolling Energy Limited, Kwara State; Nsik Oil and Gas Company, Akwa Ibom; NITT, Gombe; NITT, Ekiti; NIPCO Gas, Ibafo; NIPCO Gas Ltd, Abuja; NIPCO Gas, Sapele; and BOVAS in Idimu-Ikotun, Lagos, among many others.

The Nigerian Aviation Handling Company Plc (NAHCO) has secured the bid to provide passenger and cargo ground handling services for Emirates Airlines at Lagos International Airport, as the United Arab Emirates carrier ramp up efforts to resume flights into the country.

Emirates Airlines halted flights into Nigeria in October 2022 because it could repatriate funds accruing from ticket sales held in the country.

The carrier will resume flight on October 1, 2024 after a two-year hiatus.

In a statement, signed by its Assistant General Manager, Corporate Communications, Mr Tayo Ajakaye, NAHCO said the renewed contract underscores the company’s unrelenting commitment to delivering exceptional ground handling services and highlights its role as a critical partner in Nigeria’s aviation industry.

The agreement with Emirates Airlines, Ajakaye said reinforces NAHCO’s position as the trusted service provider to some of the world’s leading airlines.

“We are honoured to welcome Emirates Airlines back to Nigeria and to continue our longstanding relationship with this important Airline. Securing this renewal is a testament to NAHCO’s consistent quality of service and the trust our partners place in us. We look forward to further strengthening valued partnerships and continuing to set the standard for ground handling in Nigeria,” said Dr. Seinde Fadeni, Chairman of NAHCO Plc.

Prince Saheed Lasisi, Group Executive Director – Commercial & Business Development at NAHCO Plc stated, “Our successful renewal of this contract with Emirates Airlines is a reflection of the hard work and dedication of the entire NAHCO team.

“We are proud to be the preferred ground handlers once again for Emirates as they resume their flights to Nigeria. Our focus remains on delivering world-class services that meet and exceed the expectations of our airline partners.”

Mr. Indranil Gupta, Group Managing Director /Chief Executive Officer of NAHCO PLC noted that it was a privilege to have been chosen once more by Emirates Airlines for their ground handling needs at Lagos Airport, and to extend the company’s successful partnership with one of the world’s leading Airlines.

He expressed optimism about the company’s future and reaffirmed NAHCO’s commitment to supporting the growth of the company’s airline partners in Nigeria.