Barely a year after states got over N500 billion bailout to enable
them pay salaries, the Federal Government yesterday announced another
N90 billion loan for workers salaries with 22 stringent conditions.
Some of the conditions are that the benefitting states have to clean up the ghost workers list, set up efficiency units, reduce the recurrent expenditure, and be ready to publish their accounts and budgets.
Other conditions include improving accountability and transparency, increasing public revenue, rationalising public expenditure, improving public financial management and sustainable debt management. A tranche of N50 billion, which will be repaid in three months is to be shared across all the participating 36 states and then N40 billion to be repaid in nine months.
Announcing the loans in Abuja, Minister of Finance, Mrs. Kemi Adeosun, said the loan would be through the Federal Government bonds, adding that the state governors had been briefed on the Fiscal Sustainability Plan (FSP) at a separate session in the past and they have bought into it. However, she insisted that the fund is not a bailout like last year’s largesse but a loan, which must be paid with a price.
She said the aim of FSP is to support states to overcome current fiscal challenges while reforming financial management to ensure their long-term viability.
“The first thing to say is that this is not a bailout. It is very important everybody understands this. It is definitely not a bailout. The bailout was done last year July and there were no conditions attached. This is a loan we have secured from the private sector and it has conditions attached to it. So it is actually a loan to be repaid and not a bailout. What I mean by paying the price is that when you want to borrow money, the lender sets some conditions and these conditions are very stringent. There are 22 of them and I think all of you have the fiscal sustainability plan.
“Governments unanimously approved the plan and you know it is going to involve a lot of work. They have to clean up the ghost workers, set up efficiency units, reduce the recurrent expenditure, publish accounts and their budgets. A lot of very tough conditions. But what I mean by paying the price is that governors and commissioners believe that these reforms are necessary if they want the reforms to be fiscally sustainable. Every state must be viable. We cannot have a situation where states are solely dependent on the Federation Account. Once the Federation Account is down, they cannot survive.”
Total Nigeria secures shareholders approval to pay N4.75bn dividend
By Chinenye Anuforo
Shareholders of Total Nigeria Plc have approved a total dividend payout of N4.75 billion for the year ended December 31, 2015.
The shareholders gave the approval at the company’s 38th Annual General Meeting held in Lagos at the weekend. They also hailed the management of the company for its policy of constantly paying them dividend. Mr. T.O Adebayo, a prominent shareholder commended the management of Total on the dividend payout. He said, “We appreciate the board of our company for the dividend. Despite the reduced revenue and profits, the company still paid us dividend.”
He however, urged the management of the company to look at areas it did not do well in 2015 and employ strategies that will drive growth and profitability.
The company earlier in 2015 distributed the sum of N679 million as interim dividends representing N2.00 per share, while another N12.00 is to be distributed as final dividend for the 2015 year end, subject to the deduction of appropriate withholding taxes at the time of payment.
Speaking during the AGM, Mr. Momar Nguer, Total Nigeria Chairman, told shareholders that the company’s target was to become market leader in terms of solar solutions. He hinted that following the successful launch of the first station at Onigbongbo Lagos in 2014, 8 solar stations are currently being developed. “Our recently launched solar lamps business line is growing steadily. Last year, I informed you that we would be introducing our offer of solar home system (SHS). The SHS is a solar driven energy solutions for homes which we will launch into the Nigerian market in 2016.”
We will also have a solar hybrid solution. Our solar activities, be it Awngo, SHS, solar stations or hybrid solutions are a true demonstration of our commitment to better energy.”
On the company’s performance he explained that 2015 was indeed a year the company experience several challenges and difficulties which affected its performance and operating results. “Because of these challenges, your company’s turnover reduced by 13.5 per cent from N240.6 billion in 2014 to N208 billion. Profit after tax reduced by 23.5 per cent. From 5.3 billion to N4.05 billion. Interest expense was N1.8 billion, and 31.7 per cent lower than the previous year mainly due to lower overdrafts utilised in comparison with 2014”, he said.
However, he assured the shareholders that with challenges come oppourtunities and Total remain ready to take advantage of the opportunities these challenges will bring. “Notwithstanding the challenging circumstances, we believe that we have the capabilities to succeed”, the Chairman assured.
Culled from The Sun
Some of the conditions are that the benefitting states have to clean up the ghost workers list, set up efficiency units, reduce the recurrent expenditure, and be ready to publish their accounts and budgets.
Other conditions include improving accountability and transparency, increasing public revenue, rationalising public expenditure, improving public financial management and sustainable debt management. A tranche of N50 billion, which will be repaid in three months is to be shared across all the participating 36 states and then N40 billion to be repaid in nine months.
Announcing the loans in Abuja, Minister of Finance, Mrs. Kemi Adeosun, said the loan would be through the Federal Government bonds, adding that the state governors had been briefed on the Fiscal Sustainability Plan (FSP) at a separate session in the past and they have bought into it. However, she insisted that the fund is not a bailout like last year’s largesse but a loan, which must be paid with a price.
She said the aim of FSP is to support states to overcome current fiscal challenges while reforming financial management to ensure their long-term viability.
“The first thing to say is that this is not a bailout. It is very important everybody understands this. It is definitely not a bailout. The bailout was done last year July and there were no conditions attached. This is a loan we have secured from the private sector and it has conditions attached to it. So it is actually a loan to be repaid and not a bailout. What I mean by paying the price is that when you want to borrow money, the lender sets some conditions and these conditions are very stringent. There are 22 of them and I think all of you have the fiscal sustainability plan.
“Governments unanimously approved the plan and you know it is going to involve a lot of work. They have to clean up the ghost workers, set up efficiency units, reduce the recurrent expenditure, publish accounts and their budgets. A lot of very tough conditions. But what I mean by paying the price is that governors and commissioners believe that these reforms are necessary if they want the reforms to be fiscally sustainable. Every state must be viable. We cannot have a situation where states are solely dependent on the Federation Account. Once the Federation Account is down, they cannot survive.”
Total Nigeria secures shareholders approval to pay N4.75bn dividend
By Chinenye Anuforo
Shareholders of Total Nigeria Plc have approved a total dividend payout of N4.75 billion for the year ended December 31, 2015.
The shareholders gave the approval at the company’s 38th Annual General Meeting held in Lagos at the weekend. They also hailed the management of the company for its policy of constantly paying them dividend. Mr. T.O Adebayo, a prominent shareholder commended the management of Total on the dividend payout. He said, “We appreciate the board of our company for the dividend. Despite the reduced revenue and profits, the company still paid us dividend.”
He however, urged the management of the company to look at areas it did not do well in 2015 and employ strategies that will drive growth and profitability.
The company earlier in 2015 distributed the sum of N679 million as interim dividends representing N2.00 per share, while another N12.00 is to be distributed as final dividend for the 2015 year end, subject to the deduction of appropriate withholding taxes at the time of payment.
Speaking during the AGM, Mr. Momar Nguer, Total Nigeria Chairman, told shareholders that the company’s target was to become market leader in terms of solar solutions. He hinted that following the successful launch of the first station at Onigbongbo Lagos in 2014, 8 solar stations are currently being developed. “Our recently launched solar lamps business line is growing steadily. Last year, I informed you that we would be introducing our offer of solar home system (SHS). The SHS is a solar driven energy solutions for homes which we will launch into the Nigerian market in 2016.”
We will also have a solar hybrid solution. Our solar activities, be it Awngo, SHS, solar stations or hybrid solutions are a true demonstration of our commitment to better energy.”
On the company’s performance he explained that 2015 was indeed a year the company experience several challenges and difficulties which affected its performance and operating results. “Because of these challenges, your company’s turnover reduced by 13.5 per cent from N240.6 billion in 2014 to N208 billion. Profit after tax reduced by 23.5 per cent. From 5.3 billion to N4.05 billion. Interest expense was N1.8 billion, and 31.7 per cent lower than the previous year mainly due to lower overdrafts utilised in comparison with 2014”, he said.
However, he assured the shareholders that with challenges come oppourtunities and Total remain ready to take advantage of the opportunities these challenges will bring. “Notwithstanding the challenging circumstances, we believe that we have the capabilities to succeed”, the Chairman assured.
Culled from The Sun
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