₦airaland Forum

Welcum:
It is needed for a proper implementation of the new Tax Law. If you know, you know.

The tax law will most likely be implemented in first quarter of 2025. The census can only happen in 3rd or 4th quarter

Harvestock01:
My simple response is that, this thing we call FREEDOM has a steep price.

Any so called ''freedom'' without strict boundaries is what leads to destruction. That is why crime rate is much less in less democratic environments,
You cannot afford to democratize nonsense for the citizens to do anyhow!

HesInMe:
With respect, these kinds of comments are infuriating. Stop pretending you have a Palantir, a God-given insight into the future bestowed only upon thee.

We need to do better as a group. We're not doing talisman investing. Tell us the investment case you see for Oando -- one that we can all analyze. Ordinarily, a company with the horrendous track record Oando has -- poor management, high indebtedness, uber-complicated financials, byzantine (I dare say, corrupt) deal making, and negative shareholder returns -- should have no prayer in this market. It's not "Wale-hate."

Wale has a lot to do to prove himself because he truly has an unenviable record as regards Oando's performance in the last 10 years or so.

But we need to put things in proper perspective:
Oando as a downstream company (up to around 2010/11) did not have all the problems that you mentioned above. In fact, they were paying regular dividends as high as N2; N3 per share etc. at that time. And the same Wale was the CEO then.
Their problem started when they decided to switch from downstream to upstream, with the acquisition of ConocoPhillips. That was when they started experiencing huge financial challenges which became worse when the prices of crude oil fell and they have been struggling up till now.

All the same, shareholders have really suffered more than enough and Wale must do all he can to rectify the situation.

Harvestock01:
USA has tough laws and regulations against narco, accompanied by aggressive enforcement, has this stop the trade?

Has the execution by China stopped criminality in the country? Why was the Buhari decree that prescribed death penalty for drugs peddling later scrapped?

It is one thing to have an idealistic views about something and the workability in emotionally conflicting human environment .

Which tough laws does US have against criminals like smugglers or drug pushers?
Can you compare the rate of crime in China or S/Arabia with Nigeria and USA?
The harsh and deadly consequences of breaking the law in China or S/Arabia is the first deterrent in the mind of every potential law breaker.
How many S/Arabia or Chinese nationals have you heard or seen engaging in smuggling or drug trafficking in their respective countries?
There is nothing like ''idealistic view'' if a nation is very determined to eradicate criminality from their society. Our leaders don't have the balls nor the economic strength to withstand the pressure hence they crumble when some international NGOs from Europe or USA threaten them sanctions or apply some pressure on them under the guise of human rights.
President Duterte of Philippine did similar thing when he decided to wage war against drug trafficking.

Agbalowomeri:
Which battle is easier to win? You just have to choose your battles if you must make impact. You have only 4 years, 8 is not guaranteed.

Such leader should just do the best within the 4 years or 2 years, and leave posterity to judge.
Any leader that is always bothered about lasting the whole 4 years or 8 years cannot change this country. I am talking about the determination to take drastic actions

Picky1:
Why do humans especially in naija always like to waste time!
Gambling is a disease as that OANDO guy ojt will just be laughing at nsempa guys. He will be happy and popping champagne about the confusion he has set because instead of shareholders protesting and calling him out they are busy cracking their brains unnecessarily.
Naija, we have a very long way to go....
Hope some are also learning sha

It is better to also educate and equip oneself with fundamental facts and understanding of the issues before protesting and calling out top managers and executives who have some facts and figures at their disposal.
This is reason why NLC most time lose when they go and bargain with FGN after protesting on the street for days.
It is strategically better to know the facts, before proceeding to action.

Agbalowomeri:
So what happens when PMS sells at say N200 in naija and in Cameroun here it is above 1k? There will be scarcity forever in naija due to snuggling. We can all see that Christmas is approaching and there is PMS everywhere. That's a departure from the norm.

As I heard, Nigeria's crude is one of the most expensive to extract. At ca. $45. I don't know how true that is

The smuggling persists because government officials and their businessmen friends and cronies are reluctant in doing something drastic about it e.g. promulgating a law that imposes death sentence or life imprisonment on smugglers and customers/immigration officers that aid and abet them. Once they are able to try and execute some few criminals, like they do in China, everyone else will stop or reduce the smuggling drastically

BabsO2:
At current exchange rate and oil prices, petrol cannot sell for N500. If oil prices go down to $30s then N500 is possible if the exchange rate stays fixed. If exchange rate also improves to N900/$ then even at current oil prices N500 will petrol be.

Pegging our petrol price to the international price is one of the major mistakes that we are making as a country. I don't think any OPEC country does that.
What we need to do is to determine the inter-generational cost of producing the crude oil from our soil and add some equitable markup/margin on it and sell to the local market. This is how the local economy can be competitive against other countries. Governments have successfully deceived us into believing that it is the right thing to relate the cost of oil in New York with the price we sell it in our villages and towns when we are the producers.
The price of Coca cola in New York is the not the same as Coca Cola produced at NBC in Ibadan

yoruboid:
From the Student Loan, to the floating of the Naira (which has led to a trade surplus of over N14tn this year alone), to the removal of subsidy, to the Tax Bill and LGA autonomy, Tinubu is obviously the most prepared for this role

And yes, the inflation maybe there, but it will come down

Trust the process. All the below listed under two years is quite a feat and if you like don’t take advantage of the opportunities. Many are doing so and making their lives better

Doubling of aggregate government revenues to over 9.1 trillion Naira.

Reduction in revenue spent on debt service from 97% to 68%.

Clearance of $5 billion in outstanding foreign exchange obligations.

Resurgence of the oil and gas industry.

Increase in oil production to 1.61 million barrels per day.

Signing of two Foreign Direct Investment deals worth over half a billion dollars.

Launch of the Compressed Natural Gas (CNG) Initiative.

Distribution of one million conversion kits to commercial vehicles.

Reduction in transportation costs by approximately 60%.
Establishment of the student loan scheme.

Processing of 45.6 billion Naira for student payments.

Creation of the Consumer Credit Corporation with over N200 billion.

Allocation of an additional N50 billion each for student loans and Credit Corporation.

Securing $620 million under the Digital and Creative Enterprises (IDiCE) program.

Introduction of the Skill-Up Artisans Programme (SUPA).
Launch of the Nigerian Youth Academy (NIYA).

Initiation of the National Youth Talent Export Programme (NATEP).

Financial support of over N570 billion to the 36 states.

Benefits to 600,000 nano-businesses, with an additional 400,000 expected.

Processing of 75,000 beneficiaries for N1 million Micro and Small Business loans.

Construction of 10 MSME hubs, creating 240,000 jobs.

Payments of N1 billion each to large manufacturers.

Signing of the National Minimum Wage law, raising the minimum wage to N70,000 per month.

Launch of the Renewed Hope City and Estate housing initiative.

Plan to build 100,000 housing units over the next three years.

Removal of tariffs and import duties on essential food items and medical supplies.

Distribution of fertilizers and initiation of a project to cultivate over 10 million hectares of land.

Order of mechanized farming equipment worth billions of Naira.

Increased food production and job creation through agricultural incentives.

So what is the total effect on poverty, standard of living, cost of living, cost of food/agricultural items, medicine, health care, transportation, employment, human capital development index etc. of all the things you listed above?

KarlTom:
I have placed an order for 1bullion van of popcorn...

You must be a very big man!.
Bullion van does not come easy, no matter ''what is inside''!
To pay to hire a bull van for just 1 minute is not joke!
Congratulations!

ProphetUtuocha:
Mark this:
Those whose minds are paralysed
By reactionary analysis and Wale-hate
And thus are skeptical
To buy Oando
At these low prices
Will struggle to buy at much higher prices

At Last, the Oando Prophet has appeared and delivered his prophecy from the mountains once again.
He who has ears, let them hear!

Harvestock01:
The end of a long analysis paralysis on Oando signifies the onset of a parabola.

You guys no go kill person on top Oando matter

designking:
Oando Plc commenced as early morning dive momentum as it moved on a gain of N3.80 from a previous day market close of N60 to current stands at N65.60 per share.

The surprising price movement snowball when the company has announced the date of AGM planned to be held on December 17, 2024 amidst the board's of directors' plans and strategic effort to restructure the oil and gas company, while it also planning to convert of debt trades receivables from the debtors to equity shares as investor beginning to show renewed interest on the new strategic plan by the company to return to profitability and its revenue drive.

Is this an advert or MH for Oando?
The people in Oando are very sophisticated and savvy! They aren't slacking at all.

Hogwarthtrades:
Criticism is fair game but casting aspersion of corruption without evidence is not a good ground for healthy discourse. I hope you know the Dangote industries tax credit scheme oworonshoki -apapa concrete laden expressway project was done by Hitec when Jb couldn't carry out the project .

That said, Julius berger is a good company but it's known for bloated budgets for project they can not try in Germany (home country). I see no reason why Hitech wouldn't be qualified for the much needed coastal highway.

In a very transparent system, Hitech would never get the Lagos-Calabar expressway.
What is the magnitude and how complex is the Oworonshoki-Apapa expressway compared to the Lagos-Calabar expressway?
Does Hitech have any pedigree in such major projects? How many states in Nigeria has Hitech done any major project if not Lagos state? How many major bridges has Hitech constructed in Nigeria? If they are that good, how many major projects were they able to win and execute successfully before Tinubu came to power?

It may be okay to give them intra-city projects like Lekki Expressway, but they clearly do not have the capacity for major inter-city projects of distances covering thousands of kilometers.
Julius Berger does very good quality jobs and their quotes may be higher than others who do shoddy jobs. There are numerous examples in the country where Julius Berger has proven to be more reliable than most other construction firms.

BabsO2:
Go experience the traffic jam on work commute and you will see clearly the massive influx of population into that axis and the urgent need for both coastal and lagoon roads at that axis and the need for an Eti-Osa petrol VAT for use in building freeways in Lekki/VI/Ikoyi axis.

I am not contesting the need for a road in that axis. But the need for such road does not mean it must done in a corrupt and fraudulent manner.

BabsO2:
On the Coastal Road, Lekki end needs it urgently. And construction work is proceeding fast at that end.

The project lacks any modicum of transparency and accountability.
Anything worth doing is worth doing well.

emmanuelewumi:
I don't understand the rationale behind the Lagos Calabar coastal road, they can't finish the project in 8 years and tens of billions of Naira must have been spent.

FGN should open up infrastructural projects and developments to the private sector and Julius Berger should position themselves for this niche.

I just hope say the attack on Julius Berger is not an indirect attack on Adenuga as he is the majority shareholder

Tinubu just wants to give contracts to and enrich Hitech! That is his main concern.

emmanuelewumi:
Corporate executives are highly paid, they know what to do when shareholders are ready by saying "otoge" or "enough is enough".

The ''red flags'' came from you, and I was trying to benefit from your vast and enviable knowledge.
There are no ''corporate executives'' here that could help, hence my SOS to your good self.

megawealth01:
Is the company listed? Any of them that's listed that JAGABAN is related to directly or indirectly abeg let me know so I can go and secure the bag sharp sharp

Follow the MONEY joor

Hitech is not listed yet.

Then go for more Oando (just forget Wale and his shenanigans for a while and focus on your interest in Jagaban's influence)

emmanuelewumi:
So many red flags

Excellent post.
Can you highlight some remedial corporate actions that could be taken to resolve some of these red flags?
And can you relate any company to some of these remedial steps in recent times?

megawealth01:
I left it as it is joor. That broker I used in buying SUNU and some of the penny stocks that year I left them like that joor...

I don't have all the stocks in NGX. I'm not a big man. I'm just a regular guy

Just a regular wetin?
Which regular guy would have the temerity and audacity to bear such big moniker/name that bears the tag ''mega.....''

yMcy56:
ACCESS
https://doclib.ngxgroup.com/Listings-site/corporate-disclosure-site/Documents/Access_Holdings_-_SCB_Acquisition.pdf

https://doclib.ngxgroup.com/Financial_NewsDocs/42649_JULIUS_BERGER_NIGERIA_PLC-STATEMENT_ON_THE_ABUJA-KADUNA-ZARIA-KANO_ROAD_PROJECT_CORPORATE_ACTIONS_NOVEMBER_2024.pdf

Tinubu's recklessness and desperation to enrich his cronies in Hitech is mind-boggling!
Julius Berger is by far the most competent and trusted construction firm that has been handling major road projects in this country for decades. All of a sudden, one clueless and incompetent president is cancelling their contracts and re-awarding them to a company that has never demonstrated the capacity and competence to undertake such major projects

yMcy56:
OANDO
Getting attention in market.....
@65.90 at the moment......
Bids far outweigh offers....
13M bids Vs. 1m+ offers ATM....

You are doing well.....
The Oando money will surely mature for all of us to enjoy, if we are patient long enough.

On a second thought, some scenarios came up in my mind about Oando's proposed financial restructuring:

Let us consider these two theoretical scenarios/options:

Option 1:
Write off the related party receivables to bad debts in the P/L and report huge losses for the year.
This would lead to a huge drop in price of the shares. With the huge losses, no dividend nor bonus can be paid to shareholders.

Option 2: this is what some of us think Oando is trying to do:
Convert and reclassify the related party receivables to investments in related parties (after receiving their shares). This would avoid writing off the receivables to bad debts, thereby preserving potential profits in the P/L. This could boost the company's chances of posting net profits for the year coupled with positive reactions in the stocks market. Shareholders would also benefit in future when the shares are distributed pro-rata.

The choice is for shareholders to decide

brain54:
Story...


I don't want to sound like a pessimist. But I give that refinery 1 year max before it goes back to redundancy.

Much ado about something that would not last!

Exactly my fears too.
We are just too eager to celebrate any mediocre thing.

Omooloriredade:
No it doesn't work that way. While preparing report for Q3, all business transactions for that quarter will be reported. Also, note that Oando takes over the assets and liabilities of NAOC so results will be consolidated eventually. If I buy your business, I buy everything you own including your account balances, debt or liabilities, everything except anything that was already excluded in the negotiations.

Next year, after the consolidation, Q1, Q2 that were standalone in 2024 will be restated in 2025 quarterly reports.

Disclaimer - I no be accountant o but this is my understanding of how things work.

An entity can only recognise revenues coming from what actually belongs to it. NAOC officially became part of Oando around third or fourth week in August, 2024, hence they can only reflect the revenues from that acquisition date up to 30 Sep in their Q3 2024 results.

megawealth01:
Una dey wyne Wale for him game?

You seem to know Wale and Oando too well! And Wale seems to be taking advantage of his uncle, the useless and clueless president, to play this fast one.
How I wish I will have time to attend the AGM and ask them tough questions with other shareholders.

HesInMe:
I'm not an accountant, but this sound like funny business o. Have you forgotten that accounts receivables (current assets) go down? At best, assets stay constant. Most likely, total assets will go down.

You are assuming Oando will value the so-called equity they will get as much as the AR they are foregoing. If my company owes you N1 billion, and couldn't pay you cash as promised because my business is struggling, and so then I offered you N1 billion worth of shares in my struggling business, would you take that deal?

Oando would likely change the receivables (current assets) to Investments when they receive shares (equity) from the related parties. These investments may be later revalued or kept at same value, and then be liquidated and distributed to existing shareholders pro rata via cash or additional shares from the unissued or unalliotted share capital, if it exists in the boos of Oando.
This is an internal book keeping in order to avoid huge bad debt write-offs in the P/L that could make the company to record huge losses. But this will still come back to bite them because their liquidity and solvency ratios will be affected negatively because the current asset (receivables) would reduce by the original value of those receivables now eliminated.

SAK:
Where is that prophet? Let him say something now ! Abi he doesn't see something again ?

Lol

Ayoefa:
Nathanyahu is still a wanted criminal in most countries around the world.

In Iran, Syria, Iraq, Afghanistan, etc and other terrorist states because he has been dealing with them

HesInMe:
Oando shareholder here. There is nothing positive about this.

Unless accounting has changed under Professor Wale, accounts receivables (AR) are sales that Oando made to customers and booked as revenue but hasn't collected cash. And there's a (bad) reason why not. It is not good when your customers have problems raising cash to pay you, "asset-rich" or not. And if you want to liquidate those ARs, which fool will stand ready to pay you face value for the privilege of being owed by those "asset-rich" debtors?

And please stop the special-dividend delusion. First, that AR has already been booked as revenue; it is not some new income. Second, a company as indebted as Oando is cannot be paying dividends. At minimum, that would probably violate their debt covenants. Creditors want their money first before you pay shareholders.

So why this weird proposal? I suspect, but do not know for sure, that it's got to do with concerns about recovery of the AR and the arcane, I-am-too-sharp-for-myself deals that Wale & Co have been doing behind the scenes. Instead of writing down the AR, which would negatively hit revenues, they're trying to shuffle the deck. Unless I'm missing something, that can't be good for minority shareholders. Perhaps I should've sold at N90.

I think the so called ''Receivables'' in the related parties would be reclassified as ''ordinary investments'' or ''investments in associates'' (in order to avoid a direct write-off to the P/L), then it will be valued and liquidated with the proceeds distributed to shareholders (on pro-rata basis) out of unissued share capital (if one exists or is created), otherwise it would be cash distribution.

chimex38:
Pro-rata sounds more like a bonus issue thing.

Bonus will have to come from unissued or unallotted shares. Does Oando have unissued shared capital?
I think the so called Receivables in the related parties would be reclassified as ordinary investments or investments in associates (in order to avoid a write-off to the P/L), then they will be valued and liquidated with the proceeds distributed to shareholders (on pro-rata basis) out of the unissued share capital if it exists or created, otherwise it would be cash distribution.