NIGERIA LOSES $1.6BN TO CRUDE OIL THEFT ANNUALLY – SHELL

 

Shell Petroleum Development Company, has expressed concern over the activities of crude oil thieves and illegal refineries operators in the Niger Delta, saying that the country was losing $1.6bn annually to oil theft.
The company cited its forced shut down of the Nembe Creek Trunk lines, NCTL, in Bayelsa State, a facility which produces about 150,000 barrels of crude oil per day and its declaration of force majeure on Bonny Light export.
This, according to the company, was to enable it remove crude oil theft connections, investigate suspected oil theft leaks and effect repairs.

Speaking at a workshop organised for media practitioners in Yenagoa, Shell Manager, Government/Community Relations, Evans Krukrubo,  said over 90 per cent of its pipelines in the region had been ruptured by suspected oil thieves.
He noted that the shut down of NCTL production would impact negatively on Bayelsa’s share from the Federation Account.
Represented by Funkakpo Fufyin, the company said the recent upsurge in illegal refining business in the Niger Delta should be a major concern to all stakeholders.
He said: “We are not worried by the money lost by Shell, but the harm and destruction unleashed on the environment.” He blamed most of the spills in the region on crude oil thieves and illegal refinery operators, when compared to operational failures.
He  cited Bodo, in Rivers State, Imo River, NCTL and offshore of the Niger Delta as areas  identified as major hotspots for oil bunkering and sabotage.
Krukrubo called on security agencies and state government to assist the firm in curbing the activities of oil thieves and illegal refinery operators.

BUSINESS START UP TIPS

Establishing a business can be a daunting task, but experts say it can be achieved with careful planning:

The thought of owning a business is amusing to many people. However, as much as people will ‘love’ to own their own businesses, many admit that they have little or no idea about what it takes to establish them; they don’t know where to start from.

But because the thought of starting out on their own has been so hard to ignore, many people braved the odds and set up businesses only for them to collapse because they failed to consider many vital aspects.

 According to experts, starting a business is quite tasking because it requires serious planning. They, however, say the process can be fun and easy for people who take the time out to either consult professionals or carry out some form of research.

Before saying goodbye to life as an employee, you have to be prepared to take certain steps; failure to do so, they explain, may only reduce your chances of achieving your goals. Some of these steps are explained below.

ARE YOU QUALIFIED?

As appealing as the idea of being your own boss is, experts are of the view that many people are incapable of running a business or becoming successful entrepreneurs. Unlike paid employment, which may only require expertise in an area and a few traits such as discipline and hard work, being entrepreneur requires much more. In addition to discipline, such qualities as self-confidence and credibility are important. You have to also have excellent communications and human and time management skills, among others. Of course, some of the skills required to run a business can be improved along the way, but experts warn that starting without the requisite skills would be a costly mistake. So, be sure you are qualified.

BE SURE ABOUT WHAT YOU WANT TO DO

Though experts admit that starting a business can be a very challenging thing for people, especially those who have been in paid employment for a long time, they say remaining in paid employment because of this fear can lead to regret later, if things don’t work out. This is why experts advise people against starting a business because that is the only option open to them. They say once you are sure about why you want to start your business, you will be able to approach it with a great attitude and find it easier to handle challenges and go through the process without relenting.

COME UP WITH A GREAT CONCEPT

Before you quit your job to become an entrepreneur, you must first think of a concept, product or service that will generate a steady stream of income. This may sound easy, but for most people, this is actually the hardest part. You should conceive a plan that puts your knowledge, experience and expertise to use in the most profitable way possible. Once you settle on an idea, research the marketplace to see how similar businesses have fared.
It is recommended that you start out with a business that you are passionate and knowledgeable about.

 CONSIDER SUPPORT

Whatever you want to do, you will require help and goodwill. So, when you are thinking about starting a business, it is important that you also consider what those whose help you would require think about your plan. Consult your family and friends and take their views into consideration, knowing that you are not going to do it all by yourself.

CREATE A BUSINESS PLAN

No matter the amount of support, expertise and funds at your disposal, experts warn that without a great business plan, you are unlikely to succeed in setting up a good business.
Your business plan is supposed to be the blueprint or guide to everything you do regarding the business. It contains everything from your goal (mission/vision) to the nature of product or service you want to provide, among other things.

SORT OUT YOUR CAPITAL

According to experts, many entrepreneurs make the mistake of thinking that a successful business is down to the amount of money available for the business. But businesses floated with millions of naira have gone on to fail, while those established with thousands of naira have grown to command billions of naira in assets and profit. Nonetheless, you will require capital to start your business; to produce your product and pay employees, etc.
In sourcing the funds, it is important that you go to the right sources. Financial experts say small businesses and startups are better off depending on friends, and relatives as well as the entrepreneur’s savings for capital. But many people turn to the banks and borrow huge sums at high interest rates, hoping that they would break even in a short while and pay off the loans. But the reality is that because of the interest rates, they find themselves using all their profits to service the loans, with little left to grow the business.

DRAW UP A BUDGET FOR THE BUSINESS

When it comes to raising funds or spending money to keep a business running, many people rely on assumptions. According to experts, for a business to utilize ‘scarce’ funds effectively, they are better off operating based on a budget. As such, it is important that you draw up budgets for your business. Do not become one of those who say things like, “With N5m, I will be able to cover all expenses.” Experts say you can come up with a proper budget for your business through research or market surveys and the likes.

GET A STRATEGIC OFFICE

The nature of the business you want to do and the location of your targeted customer base are some of the things you have to take into consideration in citing your office or workspace. Many people just opt for the available space, but this may not be good enough. Whether you are working from home or renting an office, be sure that your workspace is designed to enable you work efficiently. If you are running an ecommerce business, then you must ensure that your website is designed properly or professionally.

GET AS MUCH HELP AS POSSIBLE

Do not try to do it all by yourself. There are many professionals out there and also resources on the internet that can help you handle the technical aspects of establishing a business. Such things as getting your business incorporated and drawing up legal (proper) employment letters and terms for your workers are very important. So also is paying your tax and operating in line with the best practice in the industry you are setting up a business in. These are some of the areas where you need help.

BE CREATIVE, PLAN FOR THE FUTURE

It is important that your business is ahead of the competition and the times. To achieve this, it is important that you predict and react to possible trends in the future. You have to reinvent your business constantly. You have to plan for the growth of the business and the challenges that come with it. Also, you have to ensure that your business can adapt to changing times and economic challenges.

TIPS FOR GETTING BIG BUSINESS LOANS

While lenders have different loan packages with varying conditions, these are general information they all require from borrowers

It is true that many people, including economists, have complained about the high interest rates entrepreneurs have to pay on loans. It is also true that business owners are decrying the difficulties they face in their quest to access credit facilities from banks.

The impression several entrepreneurs give is that if the nation’s financial institutions become very stable and strong, and are willing to give out loans with interest rates that are much lower than what is obtainable now, their funding challenges will be over.

But even if things improve as expected, experts warn business owners to realise that they cannot just walk into the bank and get loans because they run a business with ‘great prospects’. It goes beyond that. Banks are expected to (and will) ensure that certain things are in place before they grant your request.

Some of the information will be about the entrepreneur and his team, while others will be about the business. For you to succeed in your quest to get business loans some of the things you will be asked to provide and what the bank will look out for are highlighted below.

PERSONAL INFORMATION

Before you get a loan, the bank will have you provide information about yourself. The information may cover such things as your background, educational qualification, work experience and address. You may also be asked to answer questions about your health and legal records. Surely, the bank would want to know if you have a criminal record or have been enmeshed in scandals and controversies, for instance.

While a bank will be less likely to give you a loan if you have a criminal record, for instance, experts strongly advise that you should avoid lying when asked to provide information because the bank is likely to find out in the course of its background check on you. Let’s say you own three different companies and you need additional funding for one. When you go to the bank, a question may be asked you is if you own other business. When this happen, even if you believe you stand a better chance of getting the loan if the other two remain unknown, tell the truth. By doing that, you still stand a chance, but when you lie and the truth is uncovered, it’s ‘request denied.’

STRENGTH OF MANAGEMENT TEAM

You may think this shouldn’t be the bank’s business, but it is. Top bank managers will tell you that as long as you have a management team that is incompetent, it means your business will stand little chance of recording growth, thereby risking failure. This, in turn, will make it impossible for you to repay the loan. That is not a situation any bank will be pleased to find itself in. So, to enhance your chances of getting that ‘seriously needed’ loan, ensure you have an impressive management team in place. It may make the management of the bank say, “With such a management team, we are sure to get our money back.”

CREDIT WORTHINESS

Banks run credit checks on entrepreneurs and companies before giving them loans. So, if you have been ‘notorious’ in your dealing with banks in the past, then brace yourself, the past is coming back to haunt you. Also, banks run credit bureau checks with the Central Bank of Nigeria, and if it is discovered that you are indebted to other banks, for instance, you may fail to achieve your goal. It is important that you are credit worthy and the CBN will have a say in that. So, find out what your credit rating is and if there is need to improve it, do so before sending in your loan application.

If you are already running the business, the bank will require a business credit report from you. It is important that you keep the report accurate as it will also have an impact on the process.

BUSINESS PLAN

Without a good business plan, you won’t get money from the bank. Banks will only approve your loan request if they know that your business is solid or that your plan has great prospects. So, in order to boost your chances of getting a business loan, have an excellent business plan. Your business plan should be designed in such a way that it is attractive and good and has projections.

TAX DETAILS

You will need to submit personal and business income tax returns generally for the past three years. You will likely have to also sign an authorisation form, so that the bank or lender can verify that what you said was filed with the Federal Inland Revenue Service was actually filed.

FINANCIAL STATEMENTS

Generally, all owners of businesses have to provide personal financial statements. So, you might as well start pulling that information together. The business will also need to provide current financial statements, including balance sheet, profit and loss, and sometimes a statement of cash flow.

BANK STATEMENT

You will need to provide personal and business bank statements for at least the past three months. Some lenders will require a full year’s worth of statements. Again, start pulling the information together, because you will need to provide it at some point.

PROOF OF COLLATERAL

The bank will want to see some kind of collateral for the loan. The bigger the loan or the higher the risk, the more collateral will be required. Prepare a statement that shows a list of all assets, along with descriptions and current fair market value.

LEGAL PAPERWORK

And, of course, you’re going to have to provide legal paperwork. Be ready –