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Transcorp settles legal dispute with Efora on OPL 281, agrees to pay $5.5 million

Transcorp signed an agreement with Efora Energy to settle all existing legal disputes around its Oil Prospecting Licence 281.

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Transnational Corporation of Nigeria Plc announced today that it has entered an agreement with Sacoil Holdings Limited (now Efora Energy Limited, “Efora”) to settle all existing legal disputes around its Oil Prospecting Licence 281 (“OPL 281”). Transcorp will pay a total sum of $5.5m.

This disclosure was made by the company in a pressrelease which was signed by the company’s secretary, Mr. Chike Anikwe.

According to the information contained in the statement, the agreement provides for the full and final settlement of all disputes and claims of both parties in connection with a participating interest in OPL 281 previously assigned to Efora in October 2006.

The resolution of the dispute is significant, given that it is one of the legacy issues which the core investor that took over Transcorp in 2011 inherited, and has been taking steps to resolve.

However, under the terms of the announced settlement, both parties agreed to forgo their respective claims against each other and discontinue pending lawsuits and arbitration in relation to their claims. In addition, Transcorp will pay a total sum of $5.5m over a period of thirteen months to Efora.

What they are saying

Commenting on the development, President/CEO of Transcorp, Owen Omogiafo, said:

“I am glad that the mutual understanding that resulted in our partnership at inception, has brought about this win-win resolution with great potential for future cooperation.

We see this as a significant development that will pave way for our planned development and optimization of the Oil & Gas asset without legal constraints.

“OPL 281 remains a prolific asset that will contribute substantially to the performance of the company upon completion of its development.”

However, Efora’s CEO, Damain Matroos said:

“I am very happy to have brought this matter to a close during these challenging economic times and this removes one more legacy issue for the Group. The conclusion of this matter and the receipt of these funds would also allow the Group to allocate more time and resources to invest in new initiatives to generate value for our shareholders.”

How this development strengthens Transcorp

One of the underlining strengths of the Transcorp Group is the quality of its assets, and the OPL 281 oil block is a significant part of its portfolio. It recently added to its energy asset mix, a 1000MW power generation plant – Afam Power, making it the leading power producer in Nigeria with a combined installed capacity of 1936MW across its power plants.

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ECONOMY & POLITICS

Nigeria’s inflation hits 14.23 percent as food prices increases

Nigeria’s inflation rate rose by 14.23% in October 2020 as against 13.71% recorded in September 2020

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The National Bureau of Statistics on Monday November 16, released a data which revealed that Nigeria’s inflation rose to 14.23 percent, 0.52 percent higher than the 13.71 percent recorded in September.

According to the data, the core food index rose by 17.38 percent majorly driven by increases in food items. Core inflation also maintained a steady rise to 11.14 percent, from the 10.58 percent reported in August this year.

The bureau said;

“The Consumer Price Index, which measures inflation increased by 14.23 per cent (year-on-year) in October 2020.

“This is 0.52 per cent points higher than the rate recorded in September 2020 (13.71 per cent).”

Urban inflation rose to 14.81 percent year-on-year from the 14.31 percent recorded last month, while rural inflation hit 13.68 percent.

Inflation was highest in Zamfara, Sokoto and Ebonyi, while Lagos, Abuja, and Cross River recorded the lowest in October.

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Business

Tony Elumelu conferred with Belgium’s most important national honour

Nigerian billionaire-entrepreneur, Tony Elumelu, has been conferred with Belgium’s oldest and most important national honour.

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The Chairman, United Bank for Africa (UBA) Group, Tony Elumelu, has been conferred with Belgium’s oldest and most important national honour titled: “The honorary distinction of Officer in the Order of Leopold.”

The entrepreneur made the disclosure via his verified Twitter handle. The award is said to be in recognition of his commitment to the eradication of poverty & the economic empowerment of young Africans.

Elumelu tweeted, “Last night, the Kingdom of Belgium conferred on me with the honorary distinction of Officer in the Order of Leopold, the country’s oldest and most important National Honour.

“I am humbled by this recognition of the work @TonyElumeluFDN in catalysing entrepreneurs across Africa and will continue to drive the economic empowerment of our brilliant young #Africanentrepreneurs to propel development in Africa.”

What you should know

Themoneymetrics  had earlier reported that Tony Elumelu had been named in “Times 100” list of 100 most influential people in the world 2020.

Why it matters

The latest award, amongst others, is in recognition of his commitment to the eradication of poverty and the economic empowerment of young Africans.

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Business

FG to sell Geregu, Omotosho and Calabar power plants for N434 billion

The Federal Government has mapped out some of its power plants for sale and to concession some assets in 2021.

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The Federal Government announced that it will sell the Geregu, Omotosho and Calabar power plants for N434 billion in 2021. The FG also disclosed plans to concession major sports stadiums across the country.

This was disclosed by the Bureau of Public Enterprises (BPE) in its 2021 Budget Defence in Abuja, reported by Vanguard.

Geregu Power Plant would be sold for N140.7 billion, Omotosho Power Plant N151.4 billion and  Calabar Power Plant N143.4 billion, the BPE said.

Senator Theodore Orji, member of the Senate Committee on  Privatization and Commercialization disclosed that Geregu is already majority-owned by private investors.

“We also found that in Geregu Power Plant, the core investor already owned 51% shares and that the transaction emanated from a request by the investor for additional 29% of FGN residual 49% shares,” Orji told the BPE

The Government also announced plans to concession some sports and entertainment infrastructure next year including the National Stadium, Lagos, Moshood Abiola Stadium, Abuja, Jos International Stadium, Adokiye Amiesimaka Stadium and the National Art Theatre

What you should know  

Our source reported in 2019 that  Femi Otedola, revealed plans to shift focus to power generation with a planned investment of up to $1 billion into Geregu Power Plc.

Chief Executive Officer, Geregu Power Plc, Akin Akinfemiwa, told our source  in June that they have invested the sum of 100 million dollars (USD) to carry out a major overhaul not only to ensure that the three turbines were operational at the nameplate capacity of 414MW but also to add an extra 21MW to bring the total nameplate and available capacity to 435MW.

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