The Nation Newspaper

Tag: Alhaji Aliko Dangote

  • Help diversify economy, Dangote urges local investors

    Help diversify economy, Dangote urges local investors

    President of Dangote Group, Alhaji Aliko Dangote, has urged private investors in the nation’s manufacturing and agriculture sectors to help build the nation’s economy.

    Dangote who lamented over dependence of the economy on oil to the detriment of other viable sectors, called on Nigerian and international businessmen to lead in the task of diversifying the economy, say doing so is the only viable option to the current economic quagmire.

    Addressing a select group of business executives in Lagos on the new initiatives of his Pan African conglomerate, Dangote saidit has become apparent that Nigeria needed to move away from a monolithic economy that thrives only on trading of oil and gas.

    He said a situation in  which state governments could not  meet their obligation to their workforce, and the Federal Government is not having enough resource to meet its obligations, calls for  drastic steps to be taken to move the economy away from its present one sector dominance to other areas like agriculture, mining and manufacturing.

    He said apart from building a refinery and a petrochemical, the Dangote Group is also veering into fertilizer plant construction to help the agric sector, while on the other hand,it has also invested heavily in rice cultivation.

    He explained that all these ventures are capital intensive, but with prospects for massive job opportunities which Nigeria needs at this time.

    He urged Nigerians to see the current challenges as a passing phase, adding that it would make the country to be e economically stronger in the future.

    He expressed his abiding faith in Nigeria as an economically viable nation,  saying that Nigeria remains the destination of choice for investments despite the challenges.

    Said he: “I have always said it that Nigeria is a good place to investment. God has given us in Nigeria which many other countries don’t have and they keep searching for it. We have got fertile land for agriculture, we have the minerals resources and we have oil. All we need to do is to harness them for our good.

    “The present challenges we are facing should not deter us from growing our economy. It shouldn’t stop us from  investing. It’s just a passing phase. Other countries that we refer to as developed started from somewhere. They all experienced some of these challenges in the past. So I want us to see these challenges as obstacles towards attaining greatness.”

    Dangote told the Business executives that it was for this reasons that he had continued investing in Nigeria’s economy because “If Nigerians do  not invest in their country, other people would not come. They will  want to see our success story before they can come,” he stated.

  • Dangote to invest $9 billion on food processing factory in Kebbi

    Dangote to invest $9 billion on food processing factory in Kebbi

    MILLIONAIRE industrialist, Alhaji Aliko Dangote, is set to invest about $9 billion to establish a food processing factory in Kebbi State.

    Part of the plans, according to the state governor, Usman Saidu Dakingari, was to cultivate and develop farmlands across the state.

    The governor said it was the need to encourage investments in the agro-allied potential of the state that prompted his administration to build the Sir Ahmadu Bello International Airport in Birnin Kebbi for easy movement of businessmen who wish to invest in the state.

    He revealed that the state has been exporting onions to Morocco and other countries in Africa and the Middle East, but added that farmers and farm produce buyers face hardship while evacuating the produce from the state.

    He expressed confidence that air freighting of farm produce directly from the state would create bigger market for farmers who now have the opportunity to choose the market that is most profitable, thereby earning more for their efforts.

    Dakingari said, “Dangote’s company approached Kebbi State and expressed the desire to put an investment of about $9 billion in sugar cane, rice and maybe ranching. I have seen such investment in Kenya and other places like Namibia. Meat produced from these countries are processed and exported overseas to Europe.

    “If people like Dangote come in and say this is possible, then it is good for the state. We have fruits, onions; we have one of the best markets for onion in Kebbi State. These days, we produce watermelon too, we produce mangoes and all these are things that can be exported overseas.”

    He also stated that the state has a favourable weather to produce flowers for export, adding that with the new airport in the state, warehoused farm produce could be exported anytime to foreign countries.

    “At present, there is a farmer just around the airport that has started warehousing; he will build warehouses for both export and import. These are things that will not happen in one day but the airport is futuristic.”

    On how the state government sourced funds to build the airport, the governor said commitment and prudence are the major factors that made the project possible, adding that there is a plan to invite international carriers like Ethiopian Airlines, Emirates Cargo to use the airport for their cargo operations.

  • Growing youth unemployment worries Dangote

    Growing youth unemployment worries Dangote

    President, Dangote Group, Alhaji Aliko Dangote, has expressed worries over growing youth unemployment in the country, arguing that it is a curious paradox that an economy that is the largest in Africa could have this high unemployment rate.

    Dangote, who spoke in Lagos at the National Summit on Entrepreneurship and Innovation with  Entrepreneurship, job creation and poverty reduction as its theme, said: “The theme is quite apt, as the three terms are clearly interwoven. Entrepreneurs create jobs and when people are gainfully employed, the incidence of poverty is greatly reduced.”

    He said: “This forum is coming at a time when Nigeria has been rated the largest economy in Africa with a Gross Domestic Product (GDP) of $510 billion (well above South Africa’s $350billion); the 26th largest economy in the world; and the leading destination for investment in Africa.”

    Despite these excellent achievements, he said, the level of unemployment in the country remains high, lamenting that ‘reports put Nigeria’s unemployment rate at about 24 per cent.’

    The job creation figure released by the National Bureau of Statistics (NBS) last September showed that the economy created 500,224 jobs across the country in the first six months of the year.

    He said: “More efforts are obviously needed in view of the large army of unemployed Nigerians, particularly graduates, roaming the streets in search of often elusive white-collar jobs. As you may well imagine, this has a lot of security implications for the country.”

    Represented by the Group Executive Director, Stakeholders’ Management & Corporate Communications, Dangote Industries Ltd, Mansur Ahmed, he urged the young and upcoming entrepreneurs to focus on achieving their dreams despite the many challenges of doing business in the country.

    He said the young entrepreneurs should focus on achieving their goals of establishing their businesses instead of dwelling on the challenges militating against their enterprises.

    According to him, all entrepreneurs in the country face similar challenges therefore, focus should be on finding ways of making their business succeed and move forward, rather than dwelling on constraints.

    He counselled them to know themselves and identify their calling saying that ‘success is in your calling and character’.

    Dangote challenged them to build the necessary skills and competence required to succeed as according to him, young entrepreneurs should think big, dream big and aim high.

  • Dangote joins Bill Gates, others in top world’s 25 businessmen

    Dangote joins Bill Gates, others in top world’s 25 businessmen

    Barely a week after he was ranked among the 100 most influential personalities in the world by the renowned Time magazine, a leading business broadcast organisation, CNBC has ranked the foremost entrepreneur and Africa’s richest man, Alhaji Aliko Dangote, as one of the 25 people who have had most profound impact on business and finance, worldwide.

    Forbes had earlier named him as the second most powerful  blackman, coming only after the United States President, Barack Obama and the 64th most powerful in the world in the ranking of the movers and shakers of the world.

    CNBC ranked Dangote as 23th among the first 25 people who have impacted the business world most since 1989, the year CNBC went live. In the list, Steve Jobs led the pack followed by world richest, Bill Gates.

    “They have disrupted industries, sparked change and exercised an influence far beyond their own companies,” the medium said.

    The South Africa based broadcast medium said: “As CNBC embarks on its second quarter-century, it faces a world completely altered from when it started. Then, the Dow was below 2,400, Wal-Mart didn’t make the list of America’s 500 largest companies and there was no World Wide Web.

    “Only four U.S. companies have annual revenue of more than $50 billion. Today there are more than 50, including upstarts such as Apple, Microsoft, Amazon and Google. No dictionary contained the words “e-commerce” or “app.” A blog was still archaic slang for a servant boy.”

    It described the 25 men and women from different parts of the world and across different industries as having had “for better or worse, been the rebels, icons and leaders in the vanguard of that change”.

    “Here is our ranked list of the 25 people we judge to have had the most profound impact on business and finance since 1989, the year CNBC went live. They have disrupted industries, sparked change and exercised an influence far beyond their own companies.”

    As CNBC embarks on its second quarter-century, it faces a world altered from when it started. Then, the Dow was below 2,400, Wal-Mart didn’t make the list of America’s 500 largest companies and there was no World Wide Web. Only four U.S. companies had annual revenue of more than $50 billion. Today, there are more than 50, including upstarts such as Apple, Microsoft, Amazon and Google. No dictionary contained the words “e-commerce” or “app.” A blog was still archaic slang for a servant boy.

  • Dangote to sell more equity stakes in Dangote Cement

    Alhaji Aliko Dangote, the core investor in Dangote Cement Plc, may have to sell additional 13.4 per cent equity stake out of its dominant majority equity stake of about 94 per cent in Dangote Cement Plc in order to comply with the minimum float requirement of the Nigerian Stock Exchange.

    The dilution, however, could be by way of shares sale or issuance of new shares to the general investing public to dilute the core investor’s shareholding.

    A report on companies in violation of the 20 per cent free float by the NSE obtained by The Nation had shown that Dangote Industries Limited (DIL), the holding company of Alhaji Aliko Dangote; and core investor in Dangote Cement has up till October 2014 to sell down or dilute its shareholdings in the cement company. The report was dated July 05, 2013.

    Dangote Industries Limited was mandated by the NSE to either sell down or dilute its shareholdings to enable the company meet the crucial 20 per cent free float requirement for the main board of the Exchange.

    The report indicated that Dangote Cement, the most capitalised company on the NSE, only has a free float of 5.11 per cent. However, DIL recently sold 1.5 per cent equity stake to the South African government. The deal, totaling N45.75 billion, was consummated the NSE. South Africa, through its wholly owned investment company, Public Investment Corporation of South Africa (PIC), acquired 255.61 million ordinary shares of 50 kobo each of Dangote Cement at N179 per share.

    By the expiration of the deadline, Dangote Industries is required to have completed partial divestments or dilution of its shareholdings to free 20 per cent equity stake for public holding, unless the management of the NSE grants fresh waivers and extensions for the company. In the extreme instance, a company with deficient public float may opt to delist its shares.

    The NSE did not respond to enquiry on possibilities of further waiver and continuing subsistence of a company on its main board with a deficient free float.

    The Nation’s investigation indicated that Dangote Industries may divest as much as N422 billion, according to current market valuations. DIL may have to sell about 2.28 billion ordinary shares of 50 kobo each if it chooses the divestment option. Dangote Cement opened yesterday at N185 per share.

    However, the NSE’s report indicated that the timeline for the compliance with the 20 per cent minimum public float was given to Dangote Industries after it had applied for waivers from the Quotations Committee of the NSE. It was said to have outlined plans to meet the minimum public float, which the NSE took into consideration in extending the timeframe for compliance with the minimum public float.

    Public float is technically a synonym of public shareholder and it refers to the shares of a quoted company held by ordinary shareholders other than those directly or indirectly held by its parent, subsidiary or associate companies or any subsidiaries or associates of its parent company; its directors who are holding office as directors of the entity and their close family members and any single individual or institutional shareholder holding a statutorily significant stake, which is 5.0 per cent and above in Nigeria.

    Thus, public shareholders and public float do not include shareholders or shares held directly or indirectly by any officer, director, controlling shareholder or other concentrated, affiliated or family holdings.

    Key extracts of audited report and accounts for 2012 showed that market share rose steadily during the year, averaging an estimated 57.1 per cent in 2012 compared with the 50.5 per cent achieved in 2011. The company announced a profit after tax of N151.93 billion up from N121.4 billion of 2011 representing an increase of 25 per cent. The company paid a dividend per share of N3.

    Dangote Cement plans to list on the London Stock Exchange (LSE). Already the largest cement producer in sub-Saharan Africa, Dangote Cement wants to reach 43 million metric tonnes in 2015. With three plants and 70 per cent market share in Nigeria, the company has contracts to construct factories in eight African countries, from Senegal to South Africa to Ethiopia.

    Meanwhile, Union Global Partners Limited, the core investor in Union Bank of Nigeria Plc and other core investors in Tourist Company of Nigeria were also required to reduce their shareholdings. Union Global Partners is required to either sell down or dilute its shareholdings on or before June 2017 while NPF Microfinance Bank has up till the end of next month to increase its public float. Union Global Partners Limited, a special purpose vehicle that included many investment firms including African Capital Alliance (ACA), investment funds of The Netherland and United States Governments and other Nigerian investors.

    Union Bank of Nigeria falls short of the minimum float by 6.0 per cent, implying either a divestment of some 1.02 billion ordinary shares by the core investors or issuance of supplementary shares to general investing public.

    Tourist Company of Nigeria has the highest deficiency rate of 18.69 per cent, indicating possible divestment of some 420 million ordinary shares.

    Stock markets maintain minimum public float to prevent undue concentration of securities in the hands of the core investors and related interests, a situation that can make the stock to be susceptible to price manipulation. Besides, it provides the general investing public with opportunity to reasonably partake in the wealth creation by private enterprises.

    The recently revised listing rules of the NSE stipulates that the public shall hold a minimum of 20 per cent of each class of equity securities of a company quoted on the main board, 15 per cent of each class of equity securities of a company quoted on the Alternative Securities Market (ASeM) and 10 per cent of each class of equity securities of a dual-listed company. Prior to the review, the minimum public float for the main board of NSE was 25 per cent.