Here are three big stories from Africa’s economic and political landscape that you (probably) didn’t miss but should keep in mind this week:
MultiChoice settles tax dispute with Nigeria for $37.3 million
Last week, the long-running tax dispute between MultiChoice, Africa’s largest pay TV operator, and the Nigerian government have finally called it quits. After nearly three years of investigations, audits and lawsuits, MultiChoice agreed to pay a tax settlement of $37.3 million (₦35.4 billion or R475 million) to the Federal Inland Revenue Service ( FIRS), the country’s tax authority. This is a significant reduction from the initial tax claim of $1.27 billion (₦1.8 trillion or R63 billion) that the FIRS issued to MultiChoice in July 2021.
In 2021, a dramatic tax dispute erupted between MultiChoice, the South African entertainment giant, and Nigeria’s Federal Inland Revenue Service (FIRS) when the FIRS accused MultiChoice of owing a staggering ₦1.8 trillion (approximately R63 billion at the time) in unpaid taxes. , alleging that the company had failed to pay VAT since its launch in Nigeria. This prompted the FIRS to freeze MultiChoice’s bank accounts in July 2021, causing significant disruption to the company’s operations.
MultiChoice, which owns popular brands including DStv, GOtv, Showmax and SuperSport, denied the allegations and challenged the tax claim in court, arguing that it had complied with all its tax obligations and cooperated with the FIRS. In March 2022, the two parties reached an amicable settlement, agreeing to conduct a forensic audit of MultiChoice’s accounts systems to accurately determine the tax liability.
The audit, which was supposed to be completed within six months, took longer than expected due to the complexity of the issues. However, after lengthy negotiations and legal proceedings, a settlement was reached. While the initial charge was ₦1.8 trillion, the final negotiated amount was ₦35.4 billion (approximately R475 million), a significant reduction from the original claim. The settlement marks the end of one of the most contentious tax disputes in Nigeria’s history and a major victory for MultiChoice, which generates about 34% of its total revenues in Nigeria, its largest market in Africa.
TotalEnergies to withdraw from Nigerian onshore oil
TotalEnergies, one of the world’s largest energy companies, has announcement its intention to sell its minority stake in a major Nigerian onshore oil company, following a similar move by Shell last month. The company’s CEO, Patrick Pouyanne, revealed this project during the presentation of the company’s financial results for 2023.
The Shell Petroleum Development Company of Nigeria Limited (SPDC) is a joint venture between the Nigerian National Petroleum Corporation (55%), Shell (30%), TotalEnergies (10%) and Eni (5%). It operates 13 onshore oil blocks in the Niger Delta, with a total production capacity of approximately 950,000 barrels per day. However, the company has faced numerous challenges over the years, including frequent oil spills, pipeline vandalism, oil theft, community protests, legal disputes and regulatory uncertainties.
Pouyanne said TotalEnergies was looking to restructure its portfolio and focus on its core businesses, particularly in the areas of renewable energy and low-carbon solutions. He said oil production in the Niger Delta, a region plagued by environmental degradation, social unrest and criminal activity, was not in line with the company’s health policies, safety and environment. “We want to divest our share of SPDC and we are looking to reshape the portfolio,” he said. “Basically, it’s because producing this oil in the Niger Delta does not comply with our policies (health, safety and environment), it’s a real difficulty.”
Access Bank CEO Herbert Wigwe dies in helicopter crash
Herbert Wigwe, group chief executive of Access Bank, one of Nigeria’s largest banks, was among six people killed in a helicopter crash in Southern California on Friday evening. according to to the authorities and the banking group. The victims included the wife and son of Herbert Wigwe, as well as Abimbola Ogunbanjo, the former chairman of the Nigerian Exchange Group. The identities of the other two passengers and the cause of the accident have not yet been confirmed as the Federal Aviation Administration (FAA) and the National Transportation Safety Board (NTSB) continue to investigate the incident.
Herbert Wigwe, former Group Managing Director of Access Holdings, was not only a prominent banker and entrepreneur, but also a visionary leader who influenced the business ecosystem in Nigeria and beyond. Through acquisitions and strategic partnerships, he transformed Access Bank, a small commercial bank he co-founded in 2002, into Access Holdings, Nigeria’s largest lender by assets and Africa’s largest bank in customer terms. Wigwe’s vision was not limited to Nigeria or Africa. It sought to build a globally connected ecosystem community, inspired by Africa for the world. He established Access Bank’s presence in 12 countries across three continents and forged strategic alliances with global players such as Microsoft, Mastercard and WorldRemit. He also launched the Access Conference, a biennial event that brought together world leaders to discuss the major challenges facing humanity. Access Holdings released a statement expressing condolences to the families of the deceased and announcing that it will soon appoint an interim CEO.
The other business leader lost in the crash, Abimbola Ogunbanjo, also known as Bamofin, was the former chairman of the Nigerian Exchange Group Plc (NGX Group), the non-operational holding company formed from the demutualization of the Nigerian Stock Exchange (NSE). ). He was also the Managing Partner of the renowned law firm Chris Ogunbanjo LP, where he had extensive experience in commercial law, capital markets, shipping and mergers and acquisitions.
ICYMI: market overview
- The Nigerian stock market fell in a 5-day trading week, with the NGX All-Share Indiax depreciating by 2.5% to close at 101,858.37 points. The biggest gainers were Meyer Plc. (60.70%), Juli Plc. (44.29%), Geregu Power Plc (19.00%), Cornerstone Insurance Plc (17.37%) and May and Baker Nigeria Plc (11.75%). The main decliners were Eterna plc (-18.78%), Abbey Mortgage Bank plc (-18.39%), Unity Bank plc (-17.79%), Mutual Benefit Assurance plc (-17.57%) and Sterling Financial Holdings Company Plc (-15.58%). %).
- The naira closed the week at ₦1,451.36/$1 on Friday window for investors and exporters.
- Brent crude closed the week at $81.69 while the U.S. West Texas Intermediate Crude (WTI) closed at $76.55
- THE global market capitalization of cryptocurrencies amounted to $1.8 trillion, Monday, February 12 at 6 a.m. Bitcoin stood at $48,164.82, an increase of 12.97% over the week, Ethereum also rose by 9.17% to trade at $2,500.98. Binance coin also rose 6.15% over the week, to trade at $320.51.
- Nigerian Online Teaching Platform Klas raised $1 million in pre-seed funding led by Ingressive capitalwith the participation of Techstars, HoaQ and several angel investors.
- Last Thursday, From a distancea Ghana-based tech talent startup that connects African tech talent with remote working services, has raised £250,000 in pre-seed funding ($315,000) to scale its operations and expand across Africa .
