Daily Watch – ATM, mobile banking fraud on the rise, NNPC inks OML deals with Schlumberger

2nd July 2018

  • The United Kingdom and Nigeria are exploring ways to list naira-denominated bonds on the London Stock Exchange to help fund infrastructure projects in Africa’s largest economy, the City of London’s Lord Mayor told Reuters. Charles Bowman, who acts as an ambassador for the British capital’s financial district, made the comments during a three-day visit to Nigeria during which he held talks with Vice President Yemi Osinbajo; Industry, Trade and Investment Minister, Okechukwu Enelamah and NSE as well as CBN representatives. “We have a lot of capital in London but we don’t have the projects to support. Nigeria has lots of projects to support and not the capital – you are reliant on the banking structure,” Bowman told Reuters.
  • The CBN says ATM and mobile banking fraud is on the increase. Speaking at the unveiling of the 2017 Nigerian Electronic Fraud Forum annual report in Lagos, Dipo Fatokun, director of Banking and Payment Systems at the regulator said the value of electronic banking fraud cases between 2015 and 2017 stood at ₦5.571 billion. NeFF data showed that the value of over-the-counter fraud which was ₦732.85 million in 2015, had dropped to ₦259.022 million by 2017. Fraud carried out through ATM channels rose from ₦355.89 million in 2015 to ₦497.643 million in 2017 while mobile payment fraud rose to ₦347.645 million in 2017 from ₦248.144 million in 2015. In a separate announcement, the regulator said all commercial banks must resolve disputes arising from the use of Unstructured Supplementary Service Data channels within three days.
  • TCN says it has begun the construction of four new power sub-stations with 330KVA at different locations in Ogun. The four sub-stations are located in Ogijo, MFM (Ibafo), Arigbajo and Agbara. Speaking at the inauguration of the new 60MVA, 132/33KV transformer at the Ijebu-Ode sub-station, CEO Usma Gur Mohammed, said the construction of the four new sub-stations was part of the FG’s expansion programme in view of Ogun’s increasing industrialisation.
  • The NNPC has said that it has finalised a crude oil production financing deal with Schlumberger for the Anyalu and Madu oil fields under OMLs 83 and OML 85, off Nigeria’s coast. The deal got the nod over the weekend in London with the execution of the final contractual agreement between it and the company under a joint venture agreement it has with First E&P. According to a statement by the corporation’s spokesman Ndu Ughamadu, Schlumberger would provide $724.14 million out of the required project cost of $1.082 billion while the balance of $358.79 million funded with cash flows generated by the project. The Anyalu and Madu fields are projected to hold 193 million barrels of crude oil and 0.637 trillion cubic feet of proven gas reserves with a production plateau of 50,000 barrels of oil per day and 120 million standard cubic feet of gas per day.
  • Teleology Holdings has requested for a 20-day extension to pay the final bid price for the acquisition of telecommunication company, 9mobile. A source close to Barclays Africa told the News Agency of Nigeria that Teleology communicated its commitment to the payment of the final bid price to the apex bank days ahead of the expiration of the 90-day payment timeline, which lapsed on 30 June. The extension was “to enable [Teleology] to perfect the process for the final payout in consonance with the provision of the acquisition agreement.” A CBN source said that the firm is in order in triggering the 20-day extension as it is contained in the agreement. The source said the regulator granted the extension but with a provision that it must pay an additional non-refundable $50 million fee to further strengthen its stake in the 9mobile acquisition bid.