TheNewsGuru

Tag: Loan

  • Dangote seeks loan deals to finance Lagos refinery project, cost rises $19bn

    Dangote seeks loan deals to finance Lagos refinery project, cost rises $19bn

    President of Dangote Group, Aliko Dangote is in talks with some of the world’s biggest oil traders to help finance his mega refinery project in Lekki, Lagos, Reuters has reported quoting close sources to the project.

    The 650,000 barrel-per-day refinery, once complete, will be the continent’s largest plant and redraw major trade flows of crude and fuel in the Atlantic basin.

    The refinery has been delayed by several years and the cost has ballooned to $19 billion from Dangote’s earlier estimates of $12-14 billion.

    Construction was also delayed due to COVID-19 outbreaks among workers at the site and delays getting materials, two sources with knowledge of the project said.

    Many industry sources do not expect any products before the second half of next year.

    Hit by economic consequences of the COVID-19 pandemic and soaring construction costs, Dangote needs a cash injection.

    Nigeria’s state oil firm NNPC has agreed to buy a 20% stake in the refinery for about $2.8 billion but Dangote is looking for outside cash.

    NNPC’s head Mele Kyari said a process was on-going to raise $1 billion with Afreximbank to fund part of its stake purchase.

    The billionaire has held talks as recently as a month ago with executives from the world’s top two oil traders – Trafigura and Vitol.

    Trafigura and Vitol declined to comment. A spokesperson for the Dangote Group did not respond to multiple requests for comment.

    Two sources with direct knowledge said the option of raising another $500 million from a trade house or consortium was being actively explored.

    The details of a potential loan from a trading firm have not been finalised but the trader could receive a long-term contract to supply crude and receive cargoes of refined products as repayment.

    Swiss traders like Vitol along with Nigerian firms, have cashed-in for years in gasoline-short Nigeria by supplying mega tenders and being part of lucrative crude-for-fuel swap deals for over a decade.

    Getting a hold of Dangote’s fuel will give the trader a stranglehold on a key set of new oil flows. Nigeria’s new oil bill, approved last month after nearly 20 years of political wrangling, has added fuel-import licence requirements that experts fear will give Dangote an effective monopoly.

    Under the new laws, the regulator will prioritize local refiners for import licences and volumes would be based on production capacity or market share.

    While Nigeria will remain open in theory to international trading houses, a partnership with Dangote would be the only way to guarantee a foothold in Africa’s biggest economy

    Despite being Africa’s biggest oil producer and exporter, Nigeria depends almost entirely on fuel imports after allowing its significant refining capacity, 445,000 barrels-per-day, to become dilapidated over several decades.

    Many past and current Nigerian officials, including President Muhammadu Buhari, have announced plans to refurbish them but political will has been lacking.

    The Natural Resources Governance Institute, a non-profit policy think tank, has previously pointed to the moribund refineries as a key focus of oil corruption and waste in the country.

    Source: Reuters

  • BREAKING: Buhari writes Senate, seeks approval of fresh loan of $4bn, €710m

    BREAKING: Buhari writes Senate, seeks approval of fresh loan of $4bn, €710m

    President Muhammadu Buhari has written the Senate, seeking for the approval of of fresh borrowing to the tune of $4,054,476,863 and €710 million in an addendum to the 2018-2020 borrowing plan.

    The letter was read during plenary today, Tuesday by the Presidentof the Senate, Senator Ahmad Lawan as Buhari is asking the National Assembly to approve grant components of $125 million.

    Mr Buhari also explained that the need to borrow more funds is to meet “emerging needs” of some “critical projects.”

    “I write on the above subject and submit the attached addendum to the proposed 2018-2020 external rolling borrowing plan for the consideration and concurrent approval of the senate for the same to become effective.

    “The distinguished senate president may recall that u submitted a request on 2018-2020 borrowing plan for the approval of the senate in May 2021.

    “However, in view of other emerging needs and to ensure that all critical projects approved by FEC as of June 2021 are incorporated, I hereby forward an addendum to the proposed borrowing plan.

    “The projects listed in the external borrowing plan are to be financed through sovereign loans from the World Bank, French Development Agency, EXIM Bank and IFAD in the total sum of $4,054,476,863 and €710 million and grant components of $125 million,” part of the letter read.

    The president said the loans, when obtained, will stimulate the economy and create job employment.

    His recent loan request comes barely two months after the National Assembly approved his earlier request to borrow $8.3 billion and €490 million loans contained in the initial 2018-2020 borrowing plan.

    The lawmakers had said the needed funds were meant for projects geared towards the realisation of the Nigerian Economic Sustainability Plan that cut across key sectors such as infrastructure, health, agriculture and food security, energy, COVID-19, among others.

  • Some Chelsea players wanted to stay with their loan teams – Tuchel

    Some Chelsea players wanted to stay with their loan teams – Tuchel

    Chelsea manager Thomas Tuchel admits major changes are due within the playing ranks over the coming weeks.

    Tuchel has spoken of the team’s preparations for the 2021/22 season and also the return of their loan players.

    The German said, “It was new and interesting because some players want more playing time. Others wanted to stay at the clubs that loaned them.

    “Chelsea are a positive and hardworking team, eager to learn, ready to work and eager to win.

    “I am pleased to be their coach.”

  • Senate approves Buhari’s $6.1bn external loan request, passes N895.842bn Supplementary Budget

    Senate approves Buhari’s $6.1bn external loan request, passes N895.842bn Supplementary Budget

    The Senate on Wednesday approved a loan request of $6.1 billion by President Muhammadu Buhari.

    The $6.1 billion which is about N2.343trillion was approved following the consideration of the report of the Senate Committee on Local and Foreign Debts at plenary. Chairman of the committee, Senator Clifford Ordia, presented the report.

    TheNewsGuru.com, TNG reports that President Buhari had in May, asked the National Assembly to consider and approve the loan.

    The loan, he said, will be raised from multilateral and bilateral lenders as well as the international capital market.

    He also disclosed that the National Assembly already approved the borrowing of N4.6 trillion in the 2021 Appropriation Act and that the new borrowing of N2.3 trillion will part-finance the deficit in the 2021 budget.

    In his presentation, Senator Ordia said the request is not new as it had already been approved in the borrowing plan when the National Assembly passed the 2021 Appropriation Bill.

    “What we are about to pass is not a new borrowing, it has been approved in the 2021 budget,” he said.

    After the approval, the Senate President, Ahmad Lawan, said the National Assembly must make sure that there are no frivolous expenditures by the executive.

    “Let me thank the committee, this is not a new loan. This is a borrowing plan we have approved. What we have done is to provide the necessary resolutions for the implementation of it.

    “Every cent counts. Our committees must be alive to oversee it. No frivolous expenditures should be entertained.”

    Nigeria’s 2021 budget already has a deficit of N5.6 trillion.

    The President had said the loan will be used to fund “projects from priority sectors of the economy namely: power, transportation, agriculture and rural development, education, health, provision of counterpart funding for multilateral and bilateral projects, defence and water resources.”

    …Passes N895.842bn Supplementary Budget

    Meanwhile, the Senate also passed into law a supplementary budget of N895 billion of which N173 billion is for recurrent expenditure and N722 billion will be for contribution to a development fund for capital expenditure for the year ending 31st December 2021.

    This supplementary budget is intended to equip the military in fighting insurgency, covid 19 vaccination, and also funding for the management of HIV.

    Its passage comes after a satisfactory report by Senator Jibrin Barau, Senate Committee Chairman on Appropriation, where he explained that the supplementary budget would augment the effort of various government agencies to discharge their responsibilities.

    Senator Barau further noted that security agencies will be able to procure arms and equipment as they continue to contain the security threats posed in various regions of the country.

    TNG recalls that President Buhari on the 22nd of June transmitted the supplementary budget of N895.8 billion to the Senate for approval.

    The president’s request comes about two weeks after the Federal Executive Council approved the budget.

    According to the Federal Government, the budget is specifically meant to enhance the capacity of the military and para-military agencies to tackle the various security challenges in the country.

    “The total of this expenditure is made up of N83.56 billion for COVID-19 vaccine programme, covering 30 billion vaccines from Johnson and Johnson vaccines and the logistics cost related to the deployment of that vaccine,” the Minister of Finance, Zainab Ahmed, had said on June 9.

    “It also contains the sum of N1.69 billion for the Nigerian Comprehensive AIDS programme currently operating in the States and an additional contingency provision of N40 billion under the public service-wide wage adjustments to take care of the needs for allowances to the health and education sectors and other wage-related issues.”

    She said the Council also approved an aggregate sum of N770.60 billion to further enhance the capacity of the defence and security agencies to address current and emerging security challenges in our country.

  • Super Eagles defender Ebuehi joins Serie A club Venezia on loan

    Super Eagles defender Ebuehi joins Serie A club Venezia on loan

    Tyronne Ebuehi has linked up with Serie A newcomers Venezia on a one-year loan deal from Benfica.

    Venezia have the option to buy Ebuehi if they remain in Serie A for the 2022-23 campaign.

    Venezia earned promotion from Serie B via the play-offs, stepping up along with Empoli and Salernitana

    He is the third major signing of Venezia’s summer after LASK left-back David Schnegg and Maccabi Tel Aviv midfielder Dor Peretz.

    “Venezia FC is pleased to announce that the signing of Nigerian international right-back Tyronne Ebuehi, 25, on loan from Benfica, “reads a statement on the club website.

    The 25-year-old spent last season on loan at Dutch club FC Twente, starting 33 of 34 matches during the campaign.

  • AMCON takes over Buhari’s properties for N600m loan default

    AMCON takes over Buhari’s properties for N600m loan default

    The Asset Management Corporation of Nigeria (AMCON) have taken over some assets belonging to senator representing Oyo North Senatorial district on the platform of the ruling All Progressives Congress (APC), Abdulfatai Buhari.

    The agency accused the lawmaker of unwillingness to defray a N600 million loan.

    The corporation said it took the action after securing a court order to sell the assets to recover the loan.

    The unpaid loan was taken by a Buhari-linked company, Abadat Ventures Limited, from a major bank.

    It was classified as a Non-Performing Loan (NPL) and purchased by AMCON from the bank during the second phase of eligible bank asset purchases this year.

    AMCON alleged that Buhari had shown unwillingness to repay the loan, despite the concessions made available to him by the Corporation in a bid to amicably resolve the matter.

    The corporation approached the Federal High Court, to obtain an order to take over assets of Abadat. It was granted by Justice I. E Ekwo of the Federal High Court, Abuja on March 25.

    In compliance with the enforcement order, the corporation went about putting the logistics together and took effective possession of the two properties as listed by the court through its appointed receiver manager – Mr. Baba Mohammed Waziri of Baba Waziri & Co. Chambers.

    The enforced properties include property situate at No 12, St, Petersburg Street, Wuse II, Abuja and Plot 516, (also known as No 2. Marte Close), off Misau Crescent, off Birnin Kebbi Crescent, Garki II, Abuja.

    Besides granting the corporation possession of the seized properties, the court also ordered the receiver-manager to take all necessary steps required to realise the assets of the obligor, with a view to paying the outstanding loan in line with Section 553 and 554 of the Companies and Allied Matters Act, 2020.

    Head, Corporate Communications, Asset Management Corporation of Nigeria (AMCON), Jude Nwauzor, who confirmed that the properties were effectively under AMCON’s possession explained that the enforcement was carried out in a seamless manner, as the court had directed officers and men of the Police, court bailiffs and other security agencies to assist AMCON in securing the assets.

    Nwauzor added that Buhari, as the chief promoter of Abadat and his firm, had remained recalcitrant despite all efforts, negotiations and windows of opportunity provided them by AMCON to enable them to repay the indebtedness.

    According to him, having exhausted all possibilities, AMCON had no other options as a law abiding corporate organisation than to seek judicial intervention.

  • Barca president Laporta secures €500M loan

    Barca president Laporta secures €500M loan

    Barcelona president Joan Laporta has secured the club a loan worth €500m, all from investment bank, Goldman Sachs.

    Barcelona have been facing financial Armageddon after the Josep Maria Bartomeu era, and there have been concerns over whether the club would be able to both pay their players and recruitment new ones in the summer.

    L’Esportiu reports the club obtained the loan on Tuesday morning, with the money likely going towards refinancing part of the debt, easing the short-term pressure on the club hierarchy.

    “This credit will give air and stability to the club, we can be calm this season and next season,” Barcelona sources explained to the newspaper.

    “We have looked at what could be the worst-case scenario, that fans don’t enter the stadium throughout next season. Even so, we can be calm after this operation.”

    In the same report it was claimed that the American investment fund had offered the club favourable conditions with regards to repayment, far better than any normal bank would offer.

  • Our First Bank loan is being serviced, reduced by 30% – Honeywell Group

    Our First Bank loan is being serviced, reduced by 30% – Honeywell Group

    The Honeywell Group has said that its loan with First Bank is being serviced as the conglomerate had reduced the facility by 30% in the last two and half years.

    This was disclosed by the Group in a statement issued on Sunday.

    According to the statement, the company and the bank have had a professional business relationship since 1975, which preceded the group’s investment in the bank over a decade later.

    According to the Honeywell Group, the credit facilities accessed from First Bank were granted after due negotiations, with the necessary documentation and in line with regulatory policies and industry standards.

    The Group further explained that following agreed terms, its facilities are adequately secured with First Bank with collaterals in place at over 170% of forced sales value and 230% at open market value.

    It stated, “In 2015, First Bank under the directive of the Central Bank of Nigeria, drew our attention to a 2004 circular (BSD/9/2004) which requires that insider related facilities must not exceed 10% of paid-up share capital.

    Based on this directive we subsequently entered negotiations with the bank to agree on an appropriate repayment structure and the final negotiated position was duly approved by the CBN.

    In addition to the above, First Bank, on the directive of CBN, requested additional security in the form of FBN Holdings Plc shares held by the Chairman of Honeywell Group, Dr Oba Otudeko citing a 2001 circular. This was duly provided through an authorisation to place a lien on the shares.”

    Honeywell Group has continued to meet all its obligations on its facilities with the bank according to agreed terms and has reduced its exposure by nearly 30% in 2.5 years. The facilities were charged at market rate and the bank continues to earn significant interest therefrom.”

    TheNewsGurue.com, TNG reports that the Central Bank of Nigeria had earlier directed Honeywell to fully repay its obligations to First Bank within 48 hours, warning that failure to do so would cause the CBN to take regulatory measures against the insider borrower and the bank.

    The apex bank had noted in a letter last Wednesday that First Bank had yet to comply with regulatory directives on divesting its interest in Honeywell despite several reminders.

    Also, the CBN asked First Bank to forward evidence involving the divestment of interest in Honeywell Flour Mills and Bharti Airtel Nigeria Ltd within 90 days.

  • Gov Diri reacts to N3bn loan diversion allegations

    Gov Diri reacts to N3bn loan diversion allegations

    Gov. Douye Diri of Bayelsa on Tuesday described the claim that the N3 billion Agricultural loan obtained from the Central Bank of Nigeria (CBN) was diverted as false and cheap blackmail.

    Diri, who reacted to the allegations on Tuesday noted that the smear campaign was aimed at arm twisting his administration to get appointments into his administration.

    Dr John Idumange, a former General Manager of Bayelsa Broadcasting Corporation, had alleged diversion of N3 billion agricultural loan obtained by the immediate past administration led by Chief Seriake Dickson.

    Idumange, who was an aide on Research and Documentation to Dickson, who was governor from 2012 to 2020, claimed that the present administration was diminishing the efforts of Dickson’s government.

    Idumange also afterwards claimed that he had reported the alleged fraud to the Economic and Financial Crimes Commission (EFCC).

    However, Diri, who said he was not averse to constructive criticisms dismissed the allegations as a mere ploy by Idumange to attract attention for personal aggrandisement.

    “Let me start by saying that our administration welcomes criticism provided that they are constructive but this one on diversion of N3 billion is clearly a falsehood.

    “Let me state it clearly in the full glare of the press thal I shall not succumb to this cheap blackmail targeted to ‘knock my head’ against that of former Gov. Seriake Dickson. The plot has failed.

    “I want to warn Chief dumange that I cannot be intimidated by this blackmail into giving out appointments, the CBN has said that no funds were diverted and clearly the N3 billion is not in the treasury of Bayelsa government.

    “The CBN manages the funds being warhoused in Access Bank. So, we do not have access to the funds, and if CBN has said the funds are not missing, then the allegations are simply false,” Diri said.

    Meanwhile, former governor, Sen. Dickson, had in a statement on Friday, washed his hands off the allegations, and urged his supporters to close ranks and work for the success of Diri’s administration.

  • Man Utd field loan offers for Van de Beek

    Man Utd field loan offers for Van de Beek

    Manchester United have turned down loan offers this month for Donny van de Beek.

    ESPN says United have had to turn down loan proposals for Van de Beek.

    Van de Beek’s start to life at Old Trafford hasn’t gone as anyone would have planned since his summer move from Ajax, with his role mainly reduced to substitute appearances in the Premier League.

    However, the report says United have no plan to let him leave, even on loan, as Ole Gunnar Solskjaer wants to keep his squad together as he looks to win the FA Cup, Europa League, and Premier League.