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REVEALED: Aiteo Boss, Benedict Peters, In $2Billion Debt Scandal…How He Sacked Financial Director, Bruce Burrows

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Trading house Aiteo, which had prospered under Goodluck Jonathan’s tenure, has recently had to start making hefty repayments to creditors that had helped the firm buy the giant OML 29, The Capital reports.

Aiteo founder and CEO, Nigerian businessman Benedict Peters, is using this as an opportunity to reorganize the group.

Banks push for payments

To buy the 45% stake of OML 29 from Shell, ENI, and Total for a total $2.58 billion, Peters borrowed nearly $2 billion from various Nigerian banks. Peters forked out the rest of the sum from his own fortune, largely built on extremely lucrative swap contracts won when Diezani Alison-Madueke was the minister of petroleum resources.

When the firm had trouble meeting its repayments in 2016, according to our sources it renegotiated an 18-month grace period with the banks that ended in June this year. Since that date, Aiteo has had to pay out heavy sums and is understood to be trying to negotiate another arrangement. The oil firm had bought OML 29 when crude oil prices regularly peaked over $100 and the sale price matched its market value.

With the sharp downturn in oil prices halfway through 2014, the loan became unworkable. Nearly all of the trader’s revenue from the license goes straight into paying back its creditors. With production dampened by a string of attacks on its pipelines in Niger Delta and the continued lull in oil prices, Aiteo has struggled to meet its reimbursement deadlines.

Peters counters with new financiers

Peters, who has lived in Ghana since 2016, can no longer count on his financial director, Bruce Burrows, hired in 2017 to help work out a new deal with the banks. Burrows, who previously worked for Ernst & Young and Seven Energy and now lives in London, was sacked by Peters in October, though he had never been given much room for maneuver.

Peters delegates very little, except to his older brother Francis Peters who handles the firm’s relations with banks and the government. Since the beginning of the year, the group’s finances have been in the hands of Nigerian financier Razak Shittu, former head of oil & gas for United Bank for Africa (UBA), who will be looking to secure a repayment schedule.

Shell’s stranglehold

Adding to the pressure placed by the banks, Shell – the former owner of OML 29 – had negotiated extremely strict terms with Aiteo for the 2014 sale that are still having repercussions on the trader today. One of the first conditions of the sale was that Aiteo undertook to sell nearly its entire output on the block, which currently produces between 80 and 90,000 bpd, to Shell’s own trading branch.

Indeed, this unit had directly lent several tens of millions of dollars to Aiteo to purchase OML 29. Aiteo accepted to sell such a large volume to Shell that with current output levels it will still have to work with the Anglo-Dutch major’s division for nearly 10 more years. Making the noose all the more tighter, in the formula used for the sale price of OML 29 crude oil, Peters agreed to guarantee Shell a very comfortable margin estimated at more than $1 per barrel.

The firm also accepted to use Shell’s Bonny oil terminal, whose transfer rates sit at just over $2 a barrel. Shortly following the OML 29 sale, one of Shell’s main negotiators for the operation, British expert Humphrey Doody, became a board member of Aiteo. However, according to sources in Lagos, Doody was recently made to step down from this role

BIG STORY

Access Bank Advocates For Innovative Financing Models To Realise SDGs

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At the 2024 Medic West Africa Event, organised by ABCHealth in collaboration with Informa Markets, Access Bank reaffirmed its dedication to fostering positive transformation in healthcare across Africa.

The event, which served as a platform for stakeholders across industries deliberate on the theme ‘Healthcare Investments in Africa: Mobilizing the Private Sector to Drive Healthcare Investments in Africa,’ aimed to chart a path through which corporates can leverage innovative financing models and strategic partnerships in fostering the achievement of the United Nations Sustainable Development Goals.

The discussions also explored strategies for strengthening healthcare infrastructure, leveraging technological advancements, as well as enhancing community health initiatives.

Lending his voice to the conversation, Ralph Opara, Group Head, Commercial Banking Division at Access Bank Plc, stressed that, “The government can’t carry the burden of the health sector alone. Hence, it is imperative that the private sector explores and implements innovative financing models and strategic partnerships to bridge the healthcare investment gap.”

Opara noted that collaborative effort between the public and private sectors is not only crucial but essential to driving innovation, improving healthcare accessibility, and ensuring sustainable development across the continent.

Walking the talk on partnerships, Access Bank partnered with the Private Sector Health Alliance of Nigeria (PSHAN), to launch the Adopt-A-Health Facility Program (ADHFP) with the primary aim of delivering, at least, one global standard Primary Healthcare Centre (PHC) in each of the 774 Local Government Areas (LGAs) in Nigeria. So far, the initiative has resulted into over 180 PHCs adopted across the country.

Other notable participants at the event include Mories Atoki, CEO, ABCHealth; Jane Ike-Okoli, Head of Specialised Sectors Business & Commercial Banking, Stanbic IBTC; Odunayo Sanyo, Executive Director, MTN Foundation; Ibironke Akinmade, Group Head, Health Finance, Sterling Bank, and Zouera Youssoufou, MD/CEO, Aliko Dangote Foundation.

  • About Access Bank PLC

Access Bank, a wholly owned subsidiary of Access Holdings Plc, is a leading full-service commercial bank operating through a network of more than 700 branches and service outlets spanning 3 continents, 21 countries and over 60 million customers. The Bank employs over 28,000 thousand people in its operations in Africa and Europe, with representative offices in China, Lebanon, India, and the UAE.

Access Bank’s parent company, Access Holdings Plc, has been listed on the Nigerian Stock Exchange since 1998. The Bank is a diversified financial institution which combines a strong retail customer franchise and digital platform with deep corporate banking expertise, proven risk management and capital management capabilities. The Bank services its various markets through three key business segments: Corporate and Investment Banking, Commercial Banking, and Retail Banking. The Bank has enjoyed what is arguably Africa’s most successful banking growth trajectory in the last 18 years, becoming one of the continent’s largest retail banks.

As part of its continued growth strategy, Access Bank is focused on mainstreaming sustainable business practices into its operations. The Bank strives to deliver sustainable economic growth that is profitable, environmentally responsible, and socially relevant, helping customers to access more and achieve their dreams.

 

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Nigerians Will No Longer Work Under Inhuman Conditions — Senate President Akpabio

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Nigerian workers have been reassured by Senate President Godswill Akpabio that the National Assembly and the executive branch of government will cooperate to provide them with improved working conditions and a livable wage.

The Senate President declared that  “No Nigerian worker will again be allowed to work under inhuman conditions. We will do everything to give you the best because you deserve the best.”

He made this known in a statement on Wednesday by his Special Adviser on Media and Publicity, Eseme Eyiboh, to congratulate the workers as they commemorate the 2024 May Day.

Akpabio, in the message, extolled the sterling qualities that stood out to the Nigerian workers, saying “A Nigerian worker is noted for his patriotism, hard work, resilience, and dedication to duty.

“I am happy to be associated with the Nigerian workers in the last more than 25 years and I can attest to the fact that everywhere you go, the Nigerian worker’s spirit resonates profoundly.”

Speaking on this year’s theme for Workers’ Day, “Ensuring safety and health at work in a changing climate,” Akpabio promised that the National Assembly under his leadership was more than committed to ensuring the best working conditions for the Nigerian workers.

The Senate President reiterated that the theme for this year’s celebration was apt and in tune with the international best practices, assuring that Nigeria would not be left behind.

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NLC, TUC Give FG May 31 Ultimatum For New Minimum Wage

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The Organised Labour has handed the Federal Government May 31 deadline to come up with a realistic and reasonable new minimum wage for Nigerian workers.

Labour made this known during the Workers’ Day celebrations at the Eagle Square in Abuja on Wednesday.

The President of the Nigeria Labour Congress (NLC), Joe Ajaero; and his counterpart in the Trade Union Congress (TUC), Festus Osifo were unanimous that the N30,000 current minimum wage has been grossly insufficient for Nigerian workers in the light of current economic realities and inflationary pressure including food inflation, hike in energy and transportation cost, amongst others.

They insisted that a new living wage of ₦615,000 be expeditiously approved by the President Bola Tinubu administration before the end of May.

Ajaero said, “The Nigeria Labour Congress and the TUC have made it clearly and emphatically that should the minimum wage negotiation continue and linger till the end of May, we can no longer guarantee industrial harmony in this country.”

On his part, Osifo asked the Nigerian Electricity Regulatory Commission (NERC) and power distribution companies to immediately reverse the current increase in electricity tariff for Band A customers.

“The NLC and TUC hereby advise NERC and power sector operators to reverse the last increase in electricity tariff within the next one week,” the trade union boss said.

Nigerians mark this year’s May Day amid spiralling, and unending snake-like queues at filling stations as scarcity of Premium Motor Spirit (PMS) also known as petrol worsens across the Federation.

Although there have been assurances by the major oil supplier in the country, the Nigerian National Petroleum Company (NNPC) Limited to alleviate this issue, however, the queues have persisted for over one week.

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