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Tag: Dangote Group

  • Katsina hands over Songhai Agric coy to Dangote group

    The Katsina State government has handed over the multi-million naira Songhai Agric Company to Dangote group of companies.

    The company was handed over on a 10-year lease agreement as part of efforts to resuscitate the economy and lift ailing industries.

    Governor Aminu Masari, who signed for the government, said entering into an agreement with Dangote group has brought in facilities that will improve the people’s standard of living.

    Masari noted that the cultivation of over 10,000 hectares of land for tomatoes farming and processing along Zobe Dam is a worthy investment being encouraged by an investor-friendly government.

    He said: “This day will go down in history as one of my happiest days, both as governor and an indigene of the state. Dangote is investing into perpetuity and on something that will add value to the lives of our people.”

    “We will ensure the success of the projects because we want to put something in place that will outlive us.”

    President of the Dangote Group Aliko Dangote, who signed for his group, said his company’s aim is to put the state’s arable lands into economic use. He promised to pay up the lease agreement within the week as a mark of goodwill.

    He said: “Katsina is my second home and the governor is my senior brother because there is no difference between Kano and Katsina .We want to see what we can do in Agriculture. While the entrepreneur takes the risk, the duty of government is to provide the enabling environment for investment.”

    Director-General of the state investment promotion Council Tukur Jikamshi traced Dangote’s decision to invest in the state to the state economic summit which he co-sponsored.

    He gave details of the agreement to include the takeover of the Songhai Agricultural Initiative, to be converted into a world-class Agric Research Institute for students and the teaching of Agriculture and other Agro-allied businesses.

    The company is expected to establish a tomatoes processing factory along Zobe Dam.

  • Dangote donates N1.2b structure for Business School in Bayero University

    Dangote donates N1.2b structure for Business School in Bayero University

    The Business Schools being undertaken by the Aliko Dangote Foundation, according to the President of Dangote Group is part of the efforts to build entrepreneurship in the sub-consciousness of Nigerians through education at the highest level.

    In his avowed commitment to encouraging entrepreneurship in the country as a way out of the economic doldrums, Nigeria’s business magnate, Aliko Dangote, is donating another N1.2 billion structure for running of business school in Bayero University, Kano ( BUK ).

    The building which will be handed over to the university management formally next month is a state of the art edifice and will effectively mark the commencement of study of business in the institution and the first in the Northern part of Nigeria.

    It would be recalled that Dangote is also building a similar business school in the University of Ibadan and would be commissioned anytime soon.

    The Business Schools being undertaken by the Aliko Dangote Foundation, according to the President of Dangote Group it is part of the efforts to build entrepreneurship in the sub-consciousness of Nigerians through education at the highest level.

    He explained that the situation Nigeria has found itself necessitates revisiting school curriculums to reflect the new consciousness of entrepreneurship and manufacturing and efforts made to encourage study of business especially at the second level in the university.

    When visited, the building which has been completed and awaiting commissioning, is a modern Business School within the premises of Bayero University, Kano. It comprises of auditoriums, lecture theatres, offices, classes, library, and complete electrical fittings and cooling system, among others.

    Speaking on the gesture by Africa’s richest man, the BUK Dean of Faculty of Dangote Business School, Professor Murtala Sagagi said that there was no Business School in Bayero University, Kano (BUK) until Dangote started the project.

    “We have an ambition to have a business school and we could not go ahead with the project because there was no befitting structure to accommodate the kind of dream we had but with Dangote coming in about five years ago and that was when the University decided to say this is the time to have the business school,” he said.

    He noted that Kano is the second most vibrant commercial city in the country after Lagos, saying “we have industries, banks, different type of businesses, micro, small, medium and large enterprises.”

    “We are having large scale investors from China, Spain and all over the world coming to Kano to make investment and this means the State needs an institution, a kind of faculty, school that can able to develop the capacity not only the management of those organisation but those people who are working in different units or department within the organisation.”

    “Looking at the public sector, we have limited capacity in budget, project management, which has led to things not moving well in the country. With our unique disadvantage here in Northern Nigeria, the South is far ahead in terms of capacity level, for example there are about 20 universities in Ogun State, while in Kano State we have only three Universities and all of them owned either by the state government or federal government. It is just of recent we are getting private investors coming in.”

    Sagagi pointed out that all these show that there is a need for massive capacity building in Management, Finance, Marketing, E-Business, and particularly entrepreneurship and innovation in this part of the country and also for the entire country.

    He noted further that “Bayero University has a unique reputation in the whole country and this explains why in the last National Institution Accreditation exercise, BUK became the best University in the Country, not because we have the best of everything but because of the quality of our curriculum, faculty and most importantly the quality of the students.”

    The dean added that “the Dangote Business School is a great development and we hope that this business school will not only be seen as a Kano business school or Northern business school because I can tell you about 40 per cent of our students are not from Kano and more than 22 per cent of our student are from Southern part of the country.”

    He urged other eminent Nigerians with wealth to emulate Dangote and contribute to the education advancement of the nation as a way of boosting the country’s economic development pointing out that “if Nigeria is blessed with two of Alhaji Dangote, Nigeria will witness unprecedented economic boost in terms of job creation, employment and poverty reduction.”

  • Dangote group set to commence $150m Solar Power Project in Kano

    Dangote group set to commence $150m Solar Power Project in Kano

    Kano state Government has finally handed over 150 hectares of land promised to Dangote Group of companies for the development of $150m Dangote/Black Rhino Solar power plant in Zakirai, Gabasawa local government area of the state. 

    A Memorandum of Understanding (MoU) for the provision of the 100 Solar megawatts was  signed between the  Kano state Government and the Dangote Group in August last year, with the aim of increasing electricity supply  to the people, revive the  industries closedown as well as enhance  the economic development of  the state .

    The Secretary to Kano State Government, Alhaji Usman Alhaji  signed on behalf of the state, while Executive Director Dangote Group , Engr. Mansur Ahmed  for his company, said the project will be jointly funded by its partners from the United States Black Rhino

    Representative of Aliko Dangote, Managing Director Stakeholder Management Dangote Group, Bello Danmusa received the land on behalf of the business magnatel. 

    The occasion was witnessed by representatives of the district head of Zakirai, Alhaji Abubakar Bello Bayero and Surveyor General of Kano state, Dayyabu Dandikko Rogo

    The project is expected to be completed within two years. 

    The representative of Alhaji Abubakar Bello Bayero thanked Aliko Dangote for the project saying  “It will enhance small businesses of women and youth for their empowerment and curb restiveness.”

  • Dangote Group, Ocean Beach Resorts row over multi-million naira Lagos project

    Dangote Group, Ocean Beach Resorts row over multi-million naira Lagos project

    The aim of those who conceived the idea of Lekki Golf Resort was to bring the entire world to Lagos, since the flight from the capitals of most countries to the West African city is not more than 10-hours. To them, the future of Lagos lies in tourism, leisure and entertainment, considering that oil is gradually going out of fashion.

    To make this dream a reality, Ocean Beach Golf and Leisure Resorts partnered the Lagos State Government to build the Lekki Golf Resort. But the dream of making Lagos the centre of tourism, leisure and entertainment is about to be truncated.

    The Lekki Golf Resort project started about 10 years ago when former Lagos State governor, Asiwaju Bola Ahmed Tinubu, was about to leave office. That was after a property was given to Ocean Beach Golf and Leisure Resorts by the Lagos State Land Bureau, since it was a joint venture between the Lagos State Government and the Ocean Beach Golf and Leisure Resorts Ltd.

    Realising the viability of the project, Tinubu’s successor, former Governor Raji Fashola, commissioned the project two days before Tinubu left office as the governor of Lagos State.

    Speaking to The Nation, the Managing Director, Ocean Beach Golf and Leisure Resorts Ltd, owners of the Lagos Lekki Beach Golf Resort, Mr. Ibikunle Fakeye, said the project was conceived to bring development to Lagos.

    “The future of this country, especially Lagos, depends on how many people it can attract into the leisure industry. The most viable asset Lagos has is its water fronts. And the only way we can make maximum use of it is to build leisure and entertainment along the water fronts,” Fakeye said.

    Although there are many other golf courses in Nigeria, the Lekki Golf Resort, aside bringing development and generating employment when completed, will have the capacity to bring great golf players to Nigeria. It is going to be a leisure and tourism centre.

    Fakeye said: “On this project, I can say the Lagos State Government can be making $100 million annually from tournaments, hotels, restaurants and concerts. This facility has a broadcasting centre that will broadcast events that are going on live. We also have medical clinics to carry out emergencies. Not only that, there is also a helicopter park that will be bringing guests.”

    Speaking further, Fakeye said most investors who want to stay in Nigeria and do business will be happy to stay in that environment because they would meet the kind of people they want to do business with. “It is both a meeting and recreational area. It has been designed to meet US Professional Golf Association and the European Golf Association standards so that they can allocate tournaments to us here. Then we can attract a lot of income both from sponsors of sports and merchandisers. Merchandisers are those who manufacture the shirts they wear, the caps, the balls and other things. Nigeria is a massive place you can attract manufacturers to,” he said.

    Aside boosting the economy of Lagos State, it will also create employment for the teeming unemployed youths, especially those in the hospitality business.

    “Golf creates employment for young ones. Part of the reasons we’re building a golf course is to create employment for secondary school leavers and graduates who are into related things we do there; like those who are into hotel and catering businesses, those who want to do research on water animals and those who want to do research in vegetation.

    “There are so many opportunities in this golf course. We have lots of companies that are interested in partnering with us,” Fakeye told The Nation.

    Threats to the project

    Good as the project looks, it has been faced with one encumbrance or the other since it started. The handlers of the project, Ocean Beach Golf and Leisure Resorts Ltd, according to Fakeye, had been able to surmount many of the challenges but some seem to be beyond them.

    The first was the hostility of the community, where the multi-billion naira project is being sited in Lekki, Lagos. According to Fakeye, at the beginning of the project, the villagers were opposed to siting it in their community. It took education and persuasion to make them see the benefits of such a project. Although the villagers are yet to move to their new abode, it is just a matter of time.

    Speaking on how Ocean Beach Golf and Leisure Resorts Ltd and the community reached a consensus, Fakeye said rather than wait for the government, Ocean Beach Golf and Leisure Resorts Ltd had to spend its money to do a master plan layout for the villagers’ new land before getting approval.

    He said: “We had encumbrances on the land and these encumbrances are still there. We have villagers who have been given land on the opposite side. They have exercised land and it was also the government that said your exercise is not complete until you have a master plan layout. We on behalf of the community and the government, we did this master plan layout.

    “We applied for approval of this master plan layout. We knew the villagers do not have the fund for this, but we on our own, rather than wait for government or the community, applied. It is about 140 hectares. It took us six years to get the approval. This is a project that has government involvement. We don’t know why it took us so long”.

    Ocean Beach Golf and Leisure Resorts Ltd is currently waiting for the government to relocate the villagers. “Within the time we started, we have been attacked by the villagers. We have been shot at by the community and our equipment have been damaged,” Fakeye said.

    But he said that all the challenges had been put behind them because the community now knows better and they are the ones urging the Ocean Beach Golf and Leisure Resorts Ltd to speed up the project.

    However, Ocean Beach Golf and Leisure Resorts Ltd has been able to surmount the challenges posed by the host community, the project is currently threatened by the activities of Dangote Group. According to Fakeye, Dangote Group in its bid to create a way to move its heavy equipment, allegedly damaged a part the golf course.

    Fakeye said: “The damage done to the site is causing us hundreds of thousands of dollars. If you look at where Dangote is building its jetty, for example, there is a small channel of water beside us. Dangote said it was difficult for their company to move heavy equipment because they are building refinery and ferterliser plants. They have heavy equipment and they are looking for a place to offload them, and they said they want to use the place for one year.

    “We asked them for the design to see what they want to build there so as to see whether it fits. As we speak, they have not submitted any design. This was four years ago.”

    Ocean Beach Golf and Leisure Resorts Ltd was surprised that rather than agree on the design before the commencement of work on the site, Dangote went ahead to dredge a small channel of water beside the resort. Fakeye claimed that the effect of the dredging was so much that it caused so much damage to the resort.

    “All the plants, our irrigation equipment that were installed to water our grasses were swept away due to the activities of Dangote. All the money we have invested till date had been washed down by their activities,” he said.

    Fakeye, while admitting that Dangote had written Ocean Beach Golf and Leisure Resorts Ltd a letter, claiming that it was not their activity that caused the damage on the golf course but would help in remedying some of the damaged portion on the golf course. He wondered why Dangote was trying to rectify the damage after insisting that it never caused the problem on the resort. “Somebody said it was not his action that caused the damage, yet he still wants to rectify the damage. How do you justify that?” Fakeye asked.

    Fakeye said his organisation, the Lagos State Government and Dangote Group had several meetings on the need for Dangote to submit a working design. “Yet, Dangote is going ahead to build a sea port there. It is not an extension of Free Trade Zone. I don’t know what the Ministry of Commerce, the Ministry of Physical Planning and Environment and the Ministry of Justice are doing for someone or corporate body that is violating the environment and they are quiet.

    Fakeye insisted that the Lagos State Government should make Dangote do the right thing rather than allow it to destroy the environment because the future of Lagos depends on tourism and leisure.

    “Refinery is going out of fashion. It is only now that we Nigerians are looking at refinery when it is going out of fashion all over the world. I don’t mind refinery being built, but I mind it destroying the nature and environment.”

     

    Our story, by Dangote Group

    Dangote Group, reacting to the damaged resort in a letter written to Ocean Beach Golf and Leisure Resorts Ltd on December 7, 2017, and signed by the Group Executive Director of Dangote, D.V.G Edwins, said: “We had clearly established, through various pictures, how erosion is happening all along the coast and, as such, the erosion near the golf course is not due to any specific activity of our company in the area.

    “However, we always believe in good neigbourliness and, since you presumed that our presence next to your property is the cause of the erosion in your property, we decided to execute restoration work.

    “To our utter surprise, your resort has willfully and persistently refused to allow us to construct a temporary access from our area of operation to carry out restoration on your property.

    “We are deeply dismayed that our gesture of goodwill, as a good neighbour to maintain peaceful and cordial relationship is neither being understood nor appreciated by your resort.

    “Under this circumstance, we hereby put you on notice that if we are prevented from creating access to your site to restore your shore, we would cease to make any further efforts, having made our best efforts to please and assist our neighbour, even though we were neither the cause nor the source of your problem.”

  • Don’t close Obuh mining site, Okpella leaders

    Don’t close Obuh mining site, Okpella leaders

    Community leaders of Okpella Community in Estako East local government have urged the federal government to rescind its decision on the closing down of Obuh mining site because of ownership tussle between Dangote Group and BUA Group.

    The community leaders said the closing down of the site was ill-advised and capable of causing crisis in the community because of loss of jobs.

    A former council chairman of the locality, Mr. Godwin Isichei, who spoke on behalf of the leaders said BUA Cement has created 10,000 direct and indirect employment for the people of Okpella and other indigenes of Edo North.

    Isichei explained that there was no need for dispute as according to him, the area Dangote Group is laying claim to is in Kogi State while the area assigned to BUA is in Edo State.

    He said several meetings on boundary dispute he attended as chairman of Estako East spelt out the areas belonging to Edo and Kogi States.

    His words, “Giving the directive is totally wrong and not advisable. For BUA to shut down the plant it has invested so much in is not good for the economy of Okpella. It will cause unemployment and crime in the area.

    “What Dangote is claiming is in Okene. What BUA inherited from Bendel Cement is Obuh. We don’t have Obuh at Okenne. There is no way Obuh can be in Okenne, Kogi State. The place should be opened to any investors. We are not asking Dangote not to come but the way he is going about the whole process, the entire community is not happy. He should not instigate the shutting down of BUA. Dangote does not have a Cement plant but BUA has a plant and has even expanded.

    “It was wrong to shut the mining site when the matter is pending in court. Where is the order to close down the site. Obaseki can call both sides and resolved the issue. We do not want our community to be turned to a theatre of problem.”

  • Edo Summit: Mahindra, Tolaram, Dangote to showcase $1.5bn investment

    Edo Summit: Mahindra, Tolaram, Dangote to showcase $1.5bn investment

    As preparations hit top gear for the Edo State Investment Summit tagged Alaghodaro 2017, international industrialists including the Mahindra Group of India, Tolaram Group from Singapore and Dangote Group are set to showcase their over $1.5bn investment outlay in the state.

    The companies are billed to share their experiences, prospects and insights from investing in critical sectors of the state such as agro-industries, manufacturing and human capital, and will be storming Edo with their partners at the event holding from November 10 to 12, at Edo Hotels, Benin City, the state capital.

    The three-day summit is christened ‘Alaghodaro,’ which means progress and will host business leaders, investors, bankers, financiers, industry experts, policymakers, among others to engage, discuss and explore Edo’s rich potential across various sectors.

    The Dangote Group proposes extensive investment in cement manufacturing in Okpella axis of the state estimated at over $1bn, which is strategic to extending the frontiers of the conglomerate in southern Nigerian.

    The plant is expected to take advantage of Edo’s strategic location as a logistics hub linking eastern, northern and western parts of the country, in moving its finished products across the country. The state’s massive limestone deposit is also a major consideration for investments in cement manufacturing.

    The Mahindra Group is partnering with the state government in building the Edo Industrial Park, on which major industrialisation efforts in the state would be anchored. The Industrial Park will be situated at Ologbo in Ikpoba Okha Local Government Area of the state and would serve as a hub to train human capital and engage major industries in the state. The implementation plan has been concluded and submitted to the state government.

    On its part, Tolaram Group will, at the summit, showcase its over $50m agro-allied investment outlay, which covers oil palm, cassava to feed processing plant, expected to create 50,000 jobs across the state.  

    Chairman of Alaghodaro 2017, Asue Ighodalo, said the summit is a deliberate move by the state government to steer off heavy dependence on oil money, noting that the state intends to get investors to buy into its ideas and programmes aimed at guaranteeing a better future Edo and its people.

    According to him, the world over, governments are looking beyond oil to alternative revenue sources in order to ensure sustainable development, and we must also get creative and take action today for our future and the future of our children.

    The summit would foster knowledge sharing, and provide an avenue to build relationships, spark innovation and inspire commitment to the strategic deployment of private capital for greater socio-economic impact.

  • Dangote denies proposed 10-year tax holiday rumor

    Dangote denies proposed 10-year tax holiday rumor

    Dangote Group is not aware of any upcoming 10-year-tax holiday arising from its ongoing construction  of the 35 kilometre Apapa to Oworonshoki  end of the Lagos-Ibadan Expressway

    The Group Executive Director, Strategy, Portfolio Development and Capital Projects, Dangote Industries Limited,  Devakumar Edwin, said the company has never benefited from any tax waivers or credits in its entire history, except when it is industry-based and when applicable to all its competitors.

    Edwin, who spoke yesterday to cross section of journalists in his Ikoyi office, said while the company has volunteered to repair the Apapa road as part of its Corporate Social Responsibility (CSR) at no cost at all to the Federal Government, the construction of Apapa to Oworonshoki long highway would be done at 15 to 25 per cent less than the lowest bid.

    He said: “It is very painful when some people accuse our company of benefitting from a 10-year tax rebate from the government. There is nothing like tax credit in all these. We volunteered to construct the Apapa to Oworonshoki long highway at a cost that will be about 15 to 25 per cent less than the lowest bid on the road. We hope to get back our money after three years by removing the sum from the tax we are supposed to pay.”

    He said the company proposed to the government to reduce 50 per cent of the total cost of the road, from its proposed tax, on its first year after completion and 25 per cent of the costs respectively for two years from its proposed tax.

    “The government came forward and said, you guys are repairing the road, good enough but this road is very important to all Nigerians. Is it possible for you to help us do proper road construction of the 35 kilometers from Apapa to Oworonshoki? We advised the government to go for a competitive bidding and also that we  will take it up at a cost that will be lower than the lowest bid received by the government.

    Since the government may not be handy with cash, we proposed that we will recover our money in three years in installments against our future tax. So infact the government will not pay anything to us, we will only offset our costs against our three years tax.

    He said the Group  had previously  built a 24 kilo metres   concrete road at Ibeshe, Ogun-state that cost the company a whooping N8.7 billion at no cost to the government and recently the Obajana-Kabba 44 kilo metre high way on which government contractors gave a bill of N16 billion but we told government that we can do it at N6.9billion. our company should be commended rather than being vilified by detractors.

    It would be recalled that the federal government said it would give tax relief to private sectors that invest in road construction in the country.

    Speaking at the Road Construction Summit 2017 organised by Lafarge and other at the  weekend in Lagos, the Minister of Power, Works and Housing, Babatunde Fashola said that there are a lot of possibilities that lie ahead when private capital comes into road construction under the tax relief order as proposed to be amended and complements government spending.

    According to him, the government has just concluded an agreement using the tax incentive order to hand over the Apapa area comprising Creek Road, Liverpool Road, Marine Beach to Mile 2, Oshodi, Oworonshoki to the Lagos end of the Toll Gate on the Ibadan Expressway to Dangote Group.

    Also, he said the government has signed an agreement with NLNG to construct the Bodo-Bonny Bridge at the cost of N120.6 billion with NLNG and federal government sharing the cost.

    “We have identified 28 toll plazas out of the old toll plazas, on roads where construction work is currently going on, at which we propose to restore toll plazas. We have also concluded traffic surveys on 51 major highways and now have current traffic data on these roads and we can project vehicular traffic movement for tolling and concession purposes,” Fashola said.

    Going by the recent second quarter GDP report, the Minister said, “With respect to construction and related activities, GDP in the sector had been negative since Q2 2015, but turned positive for the first time in Q1 2017 growing by 0.15 per cent and continued to positive growth into Q2 2017 by growing by 0.13 per cent. The reversal in construction has to do with civil works especially due to FGN capital expenditure.”

    Chairman, Lafarge Africa, Mr. Mobolaji Balogun noted that with the federal and respective state governments grappling with dwindling resources, it has become crucial that the ecosystem of public and private sector players brainstorm on issues of funding, partnerships, design, and quality of roads in Nigeria, as for sure government can no longer do it alone.

     

  • Our involvement in roads rehabilitation, by Dangote Group

    Our involvement in roads rehabilitation, by Dangote Group

    Dangote Group yesterday explained its involvement in roads rehabilitation. It also debunked the allegation that the company will benefit  from a 10-year tax holiday after constructing the 35 kilometres Apapa to Oworonshoki  highway end of the Lagos-Ibadan Expressway

    Speaking to reporters in his Ikoyi office, Group Executive Director, Strategy, Portfolio Development and Capital Projects, Dangote Industries Limited, Mr. Devakumar Edwin, revealed that the company has never benefited any tax waivers or credits except when it is industry based and apply to all its competitors.

    He explained that while the company has volunteered to repair the Apapa road as part of its Corporate Social Responsibility (CSR) at no costs at all to the Federal Government, the construction of Apapa to Oworonshoki long highway will be done at 15 to 25 per cent less than the lowest bid.

    According to him: “It is very painful when some people accuse our company of benefitting 10 years’ tax rebate from the government. There is nothing like tax credit in all these. We volunteered to construct the Apapa to Oworonshoki long highway at a cost that will be about 15 to 25 per cent less than the lowest bid on the road…We hope to get back our money after three years by removing the sum from the tax we are supposed to pay.”

    He explained that the company proposed to the government to reduce 50 per cent of the total cost of the road, from its proposed tax, on its first year after completion and 25 per cent of the costs respectively for two years from its proposed tax.

    “The government came forward and said, ‘you guys are repairing the road. Good enough but this road is very important to all Nigerians…Is it possible to help us do proper road construction of 35 kilometers from Apapa to Oworonshoki? ‘We advised the government to go for a competitive bidding and also that we  will take it up at a costs that will be lower than the lowest bid received by the government…Since the government may not be handy with cash, we proposed that we will recover our money in three years in installments against our future tax, so infact, the government will not pay anything to us, we will only offset our costs against our three years tax, so government will not pay us a dime for the road and it is not as if we are not paying tax.”

    According to him his company  had previously  built a 24-kilometre  concrete road at Ibeshe, Ogun State that cost N8.7 billion at no cost to the government and the Obajana-Kabba 44 kilometre highway which government contractors gave a bill of N16 billion but we told government that we can do it at N6.9billion. our company should be commended rather than being vilified by detractors.”

    The Federal Government said it would give tax relief to private sectors that invest in road construction in the country.

    Speaking at the Road Construction Summit 2017 organised by Lafarge at the  weekend in Lagos, Minister of Power, Works and Housing Babatunde Fashola said private capital could help turn around infrastructure.

    According to him, the government has just concluded an agreement using the tax incentive order to hand over the Apapa area comprising Creek Road, Liverpool Road, Marine Beach to Mile 2, Oshodi, Oworonshoki to the Lagos end of the Toll Gate on the Ibadan Expressway to Dangote Group.

    Also, he said the government has signed an agreement with NLNG to construct the Bodo-Bonny Bridge at the cost of N120.6 billion with NLNG and Federal Government sharing the cost.

    “We have identified 28 toll plazas out of the old toll plazas, on roads where construction work is currently going on, at which we propose to restore toll plazas. We have also concluded traffic surveys on 51 major highways and now have current traffic data on these roads and we can project vehicular traffic movement for tolling and concession purposes,” Fashola said.

    Going by the recent second quarter GDP report, the Minister said, “With respect to construction and related activities, GDP in the sector had been negative since Q2 2015, but turned positive for the first time in Q1 2017 growing by 0.15 per cent and continued to positive growth into Q2 2017 by growing by 0.13 per cent. The reversal in construction has to do with civil works especially due to FGN capital expenditure.”

    Chairman, Lafarge Africa, Mr. Mobolaji Balogun noted that with the federal and respective state governments grappling with dwindling resources, it has become crucial that the ecosystem of public and private sector players brainstorm on issues of funding, partnerships, design, and quality of roads in Nigeria, as for sure government can no longer do it alone.

  • Afreximbank introduces $300m equity offering to Nigerian investors

    Afreximbank introduces $300m equity offering to Nigerian investors

    The African Export-Import Bank (Afreximbank) on Thursday in Lagos met with leading Nigerian investors to push for strong participation in the bank’s $300 million equity offering.

    Dr Benedict Oramah, the President of Afreximbank, told the investors that the equity offering would be issued through depository receipts backed by its Class “D” shares for new and old investors in the bank.

    The News Agency of Nigeria reports that Class “D” shareholders can be any investor.

    Oramah said that the aim was to generate between $100 million and $300 million as part of the bank’s target to mobilise up to $1 billion to boost African trade over the next five years.

    He told investors that the issuance of the receipts was to enhance the bank’s capitalisation so as to significantly narrow the trade financing gap in Africa, currently estimated at $120 billion annually.

    He said that the receipts would be listed on the Stock Exchange of Mauritius and managed by SBM Asset Managers as lead arranger.

    According to him, the issuance also represents an opportunity for Afreximbank to diversify its shareholder base by enabling investors in Africa and beyond who have not yet invested in the bank to do so.

    He said that Afreximbank had consistently delivered development impact in its member countries including Nigeria where virtually every banking institution had benefited from its support.

    Kee Chong Li Kwong Wing, the Chairman of SBM Group, said that the decision to use Mauritius was due to the country’s highly developed financial services system and its experience in similar investment drives.

    Li said that as part of its support for the Afreximbank depository receipts issue, the government of Mauritius planned to grant permanent residency to investors putting in up to $500,000 into the offer.

    According to him, the minimum investment amount is $30,000.

    Those present at the event include Aliko Dangote, President of the Dangote Group, Gov. Godwin Obaseki of Edo, former Gov. Donald Duke of Cross River; a representative of  Oba of Lagos and many others.

    Afreximbank’s shareholders are a four-tier mix of public and private entities with Class “A”, consisting of African states, African central banks and African public institutions.

    Class “B” is made up of African financial institutions and African private investors, Class “C” shareholders are non-African investors’ mostly international banks and export credit agencies.

    Afreximbank is a foremost pan-African multilateral financial institution devoted to financing and promoting intra- and extra-African trade.

    The bank was established in October 1993 by African governments, African private and institutional investors as well as non-African investors.

    Its two basic constitutive documents are the Establishment Agreement which gives it the status of an international organisation, and the Charter which governs its corporate structure and operations.

    Since 1994, it has approved more than $51 billion in credit facilities for African businesses including about $10.3 billion in 2016.

    Afreximbank had total assets of $11.7 billion as at Dec. 31, 2016 and is rated BBB+ (GCR), Baa1 (Moody’s) and BBB- (Fitch).

    The Bank has its headquarters in Cairo.

  • Dangote Group disburses N850m compensation for sugar refinery project

    Dangote Group disburses N850m compensation for sugar refinery project

    Dangote Group has commenced the disbursement of more than N850 million, as compensation to land owners affected by its sugar refinery project in Tunga, Awe Local Government Area of Nasarawa State.

    The News Agency of Nigeria (NAN) reports that 60,000 hectares was acquired by the group for the construction of the refinery.

    Deputy Governor of the state, Silas Agara, who disbursed the funds to the beneficiaries on Thursday in Lafia, cautioned against impersonation and any act that would scuttle the project.

    He said that government would sanction anyone sabotaging the effort, and assured that all those whose land were taken would be duly compensated.

    Agara said the sugar refinery project was a rare privilege that would turn around the economic fortune of the community and state at large.

    He lauded the community for their peaceful disposition since the acquisition of their farmlands and called for more cooperation for the success of the project.

    Mohammed Ibrahim-Shuaibu, tradition ruler of the area, commended the Dangote Group for the compensation, explaining that names of the beneficiaries were compiled by a committee that included members of the community.

    Ibrahim-Shuaibu assured the company of the community’s full support and cooperation, for the take off and smooth operation of the sugar refinery.