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Oando Acquires Oil Block In Angola

Oando Plc  Favour Ifeoluwa & Akinola Ajibade  Oando Plc  says it has completed and won the bid for the operatorship of oil block KON 13 in Angola. The firm which recently acquired Eni of Italy’s oil assets in Nigeria, said that the award of the oil block located in Angola’s onshore Kwanza Basin followed a competitive bidding process by the country’s oil and gas sector regulator. It further said hat the asset in which it owns 45 per cent participating interest, has estimated prospective resources of 770 to 1,100 million barrels of oil. Oando is handling its operations relating to the asset through its upstream subsidiary, Oando Energy Resources (OER). “Oando Plc,  Africa’s leading indigenous energy solutions provider listed on both the Nigerian Exchange Limited and Johannesburg Stock Exchange is pleased to announce that its upstream subsidiary, Oando Energy Resources (OER), has been awarded operatorship of Block KON 13 in Angola’s Onshore Kwanza Basin, following a...
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Nigerian Banks to Ghana: 'We Are Devastated'

Nigerian lenders battle  credit losses 


By Akinola & Favour Ajibade


Top Nigerian banks are battling credit losses, caused by default in the sovereign debt of  Ghana. 
The issue  has chopped off their profit margin, as well as  of their operations.
This is coming on the heels of the recent restructuring of Ghana 's public debt of 576 billion cedis( approximately $49billion, a development, which saw the West African nation exchanging 87.8 billion cedis of notes, which would have otherwise paid an average of 19 percent debt owed by Ghana. 
This problem is aggravated by the low returns on bonds, which is put at 8.35 percent, with resultant on financial institutions and other creditors operating in Ghana..
Prior to this period, Nigerian banks have reported expected credit losses from Ghana impairment (at least N284 billion) arising from their investments in Ghanaian financial instruments.
Out of this, Guaranty Trust Bank, the flagship banking subsidiary of GTCO recorded ₦35.6 billion impairment after Ghana’s sovereign securities default which earned the lender a 3.3 percent dip in profit before tax from ₦221.5 billion posted in 2021 to ₦214.2 billion in 2022.
Zenith Bank, which is the largest bank in Nigeria by  profitability and gross earnings followed, by booking  a sharp increase in impairments of  107 percent to N124.2 billion, up from N59.9 billion in 2021 due to the impact of Ghana’s sovereign debt restructuring programme resulting in the increase in the cost of risk from 1.9 percent in 2021 to 3.3 percent in 2022, and a decrease in capital adequacy ratio from 21 percent to 19 percent. That was not all.
The top Tier 1 lender in its audited financial statement for the period ended December 31, 2022  incurred a net impairment loss of N58.7 billion from its Ghanaian operations for the year under review. 
“On February 14, 2023, the Group exchanged N123.6 billion (GHS2, 675,754,659) of its existing Government of Ghana bonds for a series of new bonds with maturity dates commencing from 2027 to 2038 under the Ghana Domestic Debt Exchange Programme.

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