Nigeria Appoints Transaction Parties To Execute Eurobond Programme

fecThe Nigerian government on Wednesday approved the appointment of five transaction advisers to run handle issuance of the proposed one-billion-dollar Eurobond in the International Capital Market which will commence in January 2017.

Nigeria Citigroup, Standard Chartered Bank, Stanbic IBTC Holdings PLC, White & Case LLP, Banwo & Ighodalo and AfricaPractice are the five parties approved by the Federal Executive Council during its weekly meeting in the nation’s capital, Abuja.

Before the approval, the Minister of Finance, Mrs Kemi Adeosun, told the Council members that the companies were expected to run all issuance programmes for the country for the next three years.

$1-Billion-Dollar Euro Bond

The minister said that the one-billion-dollar Euro Bond was part of the funding for capital projects in the 2016 budget which runs till March 2017.

kemi_adeosun
The selection of the advisers was an open and transparent one, Mr Kemi Adesina told Council members

Mrs Adeosun told the Council that the team of five advisers, would run all Euro Bond issuance programmes until 2019, to cut out the cumbersome process of re-tendering and selection for the programme which is already generating significant investor interest.

She stated that the selection was based on an open and competitive bid process in line with the Public Procurement Act, 2007 and a certificate of “No Objection” was received from the Bureau of Public Procurement (BPP) to award contracts to the recommended Parties.

“We have so far, received strong commitment from the international community. Investors believe in the long-term economic outlook for Nigeria, as we continue with our structural reforms and increased focus on infrastructure development to diversify the economy and grow the non-oil sector.

“Stable oil prices and steadying foreign reserves will support our plans and we expect high demand for this issue to further push down yields. We are confident that this will be a successful outing in January, 2017,” she stated.

The approval was part of two memos that were discussed and approved at the Federal Executive Council meeting presided over by President Muhammadu Buhari.

The other memo was for the amendment to the gazette for the establishment of the Hydrocarbon Pollution Restoration Project (HYPREP).

Amina Mohammed, Renewable Energy, Jatropha
Amina Mohammed Minister of Environment

On the hydrocarbon pollution project gazette amendment, the Minister of Environment, Amina Mohammed, pointed out that it was necessary to establish crucial government structures to manage the clean-up of the Niger Delta region is reason for council’s approval.

According to him, the government’s intention is to rollout a training plan for women on livelihood in the contaminated areas in Ogoni, recruit young people in the area for the clean-up process.

The government had few months ago launched a clean-up programme in Ogoniland, to save the land from adverse effect of oil exploration activities.

Stanbic IBTC Says It Has Met Financial Reporting Standards

StanbicStanbic IBTC Holdings says it has met the disclosure requirements of the International Financial Reporting Standards.

The company was responding to what it called “inaccurate and unseemly allegations” made against Stanbic IBTC Holdings PLC by the Financial Reporting Council of Nigeria (FRCN).

The company, in a statement said that although the matter was in court, it was constrained to respond to certain aspects of the report for the benefit of its stakeholders and the general public.

It said, “FRCN’s allegations are inaccurate and unfortunate, and the manner in which it has chosen to make them is procedurally defective.

“Whilst FRCN takes refuge in Regulation 21 of the Directorate of Inspection and Monitoring Guidelines Regulations 2014 for the wide publicity that it has given to its regulatory decision, Regulation 21 only applies ‘Where the Panel and the entity agree that accounts are to be rectified by way of revision or restatement’.

“That is not the case here, because Stanbic IBTC does not agree that its accounts are defective or require rectification.  Moreover, Regulation 27 makes clear that where a reporting entity does not accept FRCN’s position, FRCN ‘shall institute a legal action against the entity’.

“FRCN has ignored this laid down process in preference for self-help and media publicity,” it said.

The company further explained that the matters that FRCN alleged to be wrong were not wrong “in any material respect” and many are not matters of financial reporting, but matters of business decision and judgment for Stanbic IBTC and its board of directors.

“For example, the decision whether to enter into a sale and lease back, whether in relation to intellectual property or any other asset, is a business decision and entirely a matter for the board of directors of Stanbic IBTC and certainly not a matter for FRCN.

“In the same vein, NOTAP’s refusal to register a franchise agreement does not render the agreement null or void, or indeed relieve Stanbic IBTC of its liability. It merely means that any foreign currency payment due to the foreign counterparty under the unregistered agreement cannot be remitted. Stanbic IBTC has not and will not make any remittance which is subject to NOTAP approval without obtaining such approval.

“Stanbic IBTC is a very responsible organisation and fully complies with all extant laws and regulations in Nigeria and international best practices applicable to the conduct of its business.”

The statement added that contrary to media reports, the Directors of Stanbic IBTC have not been ousted, “The directors, who are from Nigeria and elsewhere, are reputable individuals who uphold the best corporate governance practices and whose credibility, integrity and proven track record are impeccable.”

FRC Directs Stanbic IBTC To Give Financial Details For 2013/2014 Year

ibtc-frcThe Financial Reporting Council (FRC) has directed Stanbic IBTC Plc to withdraw and restate their financial statements for years ended December 31 2013 and 2014.

The Council, in a statement, also suspended the FRC registration numbers of four of its Directors who signed the misleading statement of financial positions of Stanbic IBTC Holdings Plc for the years under review, until the investigations are completed.

These persons include Atedo Peterside, Sola David Borha, Arthur Oginga and Dr. Daru Owei.

The FRC number of the audit engagement partner, Mr. Ayodele Othihiwa, was also suspended.

The Central Bank of Nigeria (CBN) and the Economic and Financial Crimes Commission (EFCC) have been requested to assist in the effort and the Federal Inland Revenue Service (FIRS) has also been requested to ensure related taxes are paid and the government is not unduly short changed.