BY MICHAEL EBOH
LAGOS—The Federal Government, Thursday, said it was looking at ways to compensate shareholders of the three nationalised banks – Bank PHB PIc, Afribank Nigeria Plc and Spring Bank Plc.

Managing Director/Chief Executive Officer, Asset Management Corporation of Nigeria, AMCON, Mr. Mustafa Chike-Obi, who said this in Lagos, added that the corporation, in a bid to avert further crisis in the banking industry, has completed the acquisition of loans valued at N275 billion, belonging to Zenon Petroleum, Seawolf Industries and Geometric Power Industries.

Chike-Obi said the government, through AMCON, is working on the modality for compensating shareholders of the nationalised banks and would inform the public whenever a workable package was crafted.

He added that AMCON was open for dialogue with stakeholders and would welcome any idea on an effective compensation package for shareholders of the nationalised banks.

He said: “Now that the recapitalisation process is over, people are saying that we should think of ways to compensate shareholders of the banks. If anyone can tell us how to treat the shareholders, we would welcome that.”

On the loan acquisition, he said AMCON acquired N 150 billion loan of Zenon, N 100 billion of Seawolf and N25 billion of Geometric Power.

Chike-Obi, however, stressed that the loans of the three firms were performing, noting that its decision to acquire the loans was borne of the fact to ensure that the loans do not pose any significant risk to the banking industry.

Chike-Obi said, “In the process of acquiring non performing loan, we looked ahead. There were a couple of situations where loans were very large and very important that we asked the banks to sell to us, even though they were performing. Because we didn’t want a situation where after solving the problem in the industry, something that would affect the banks would happen again. So they have tendered the loans of the firms to AMCON.

“These are good businesses, but the loans are too large and may pose systemic risk. These are not loans that are problematic. We just think they could pose systemic risk to the system and we just want to guard against that.

“Additionally, AMCON has full powers to ensure the recovery of these loans even though they are performing,” he added.

He noted that the debt restructuring stage would be very critical for AMCON because it would be dealing with important people, important sectors of the economy, adding that it would try to ensure the success of the exercise.

Speaking further, he said, “As we do this, we are not a liquidation organisation. We are a resolution organisation. We would talk to people, if they have valid businesses, we would try and support them. The key thing that is important to us is the health of the economy and also employment of Nigerians. The importance of employment in Nigeria is much higher than it is in developed countries.”

…okays N100bn for gas to power electricity
BY DANIEL IDONOR
ABUJA—The Federal Government, yesterday, tasked gas and power companies to collaborate to ensure availability of gas for power projects and other industries.

Vice-President Namadi Sambo, who gave the charge at a stakeholders meeting’, said  government had approved N100 billion from the Multiple Year Tariff Order, MYTO, to cushion the effect of gas supply as well as settle outstanding debts.

He said: “Nigerian National Petroleum Company to ensure gas supply not only to the power companies but other industries like the Eleme Petrochemical that is planning to expand and produce locally 1.3 million tons of fertiliser and one million tons of methanol.”

Companies that are ready to produce fertiliser are very important to us but we should address the problem of gas aggregator”, he said

According to him, the agenda of the administration was to transform the country by creating more opportunities, jobs and wealth locally, saying that one major and important aspect of the transformation agenda is the issue of power as the farmer needs power as well as the industrial sector.

He disclosed that “as government, we are building ten new power plants that will add about five thousand megawatts to the national grid. This is also in addition to other plants built by state governments and investors that are already planning and discussing with National Electricity Regulatory Commission, NERC, and the bulk trader and gas aggregator to add more power plants in Nigeria”.

Sambo emphasised that the major challenge to achieve the required power generation in the country was how to get enough gas, adding that to address this there was need to tackle the problem from the exploration which will expand its availability.

On oil bunkering and the need to defend our national asset, he stated that Mr. President is putting up a robust plan that will put an end to such menace.

Vice President Sambo also assured investors of attractive pricing, noting that NERC is working on the price regime since it is linked with tariff as well as new gas payment which will come to effect in January next year.

Earlier, the Minister of Petroleum, Deziani Allison-Madueke and the Group Managing Director of the NNPC, Stephen Oniwon, assured that there was availability of gas in the country but the major challenges are that of security, payment for gas and price of gas to power needs to be address.

They expressed concern over the issue of vandalisation and oil bunkering which according to them, damage “our national asset”.

Madueke said Aggregator has to be managed centrally in order to address the need of all the companies in need of gas.