The Nation Newspaper

Tag: Dangote

  • Mining dispute: BUA welcomes Dangote’s decision to await court decision

    Mining dispute: BUA welcomes Dangote’s decision to await court decision

    BUA International Limited, owners of BUA Cement, yesterday  welcomed Dangote Cement Plc’s resolve to await the outcome of the courts’ decision on the disputed mining site in Obu, Okpella Edo State.

    The two industrial giants are feuding over the ownership of the site. They have been exchanging brickbats.

    Yesterday’s BUA statement said Dangote Group’s decision was contained  in its corporate disclosure published on the Nigerian Stock Exchange (NSE) website dated December 20, 2017 and titled, “Dangote Cement-Response to BUA Allegations.”

    BUA said its rival’s response was in line with what BUA had  always insisted on. “We appreciate the decision to wait for a judicial outcome rather than resorting to self-help and/or using influence and certain agencies of government in disrupting operations at some of BUA’s mining areas covered by Mining License (ML) 18912and ML 18913 in Obu, Okpella, Edo State,” the statement said.

    “With respect to the statement by the Ministry of Mines published in a national newspaper (not The Nation) of December 8, 2017 and alluded to by Dangote Cement in its statement, BUA said it had responded to the ministry through its lawyers and media channels .

    “BUA remains resolute and unequivocal about its stand that status quo be preserved as instructed by the Federal High Court sitting in Benin in Suit between BUA International Limited & BUA Cement vs. Hon. Minister of Mines & Steel Development and Dangote Cement Plc,” the statement said.

    It added: “For the purpose of clarity, this means that BUA remains in possession of the mining areas covered by Mining Leases 18912 and 18913 in Obu, Okpella, Edo State and will continue to exercise its rights to operate those mines in line with the dictates of the courts.

    “If anyone or any stakeholder (especially the ministry) remains in doubt as to what status quo means in this case, they are free to write to the courts for interpretation. BUA also affirms that it fully

    intends to abide by the outcomes of the judicial process as provided by the laws and constitution of the Federal Republic of Nigeria.”

    BUA Group also expressed hope that with the statement by Dangote,

    “This will put an end to the continued cycle of harassment or clandestine moves by certain stakeholders to usurp the powers of the courts and disrupt operations at our site in a clear disregard of existing court directives.”

    The statement therefore enjoyed and urged all stakeholders involved-not limited to the Edo State Government, the ministry of mines and Steel and others parties-to also await the outcome of the

    judicial process in the interest of a competitive business climate governed by the rule of law.

    Dangote Cement Plc said on Tuesday that it was aware of several misleading media publications one of which was captioned “A Cry for Help: Wanton Abuse of Power by a Serving Minister Geared at Sabotaging Operations of BUA Cement” wherein BUA alleged an abuse of power by the Federal Ministry of Mines and Steel Development for the benefit of Dangote Cement and made other unwarranted and unfounded claims Dangote Cement also drew attention to a subsequent publication released in a newspaper (not The Nation) by the ministry on December

    8, 2017, clearly stating their position on the letter by BUA and addressing the issues raised therein.

    In the said publication by the ministry titled “Our Position on BUA  Group’s Misleading Publication,” which was made available to The Nation, the ministry said, inter alia, that it “Regards the publication (by BUA) as nothing more than an attempt by the cement company to blackmail the ministry into granting free pass for illegal operations.”

    The ministry said while it does intend to join issues with BUA Group, which has an enviable history of industrial performance, it deemed it appropriate to, however, state the facts for the purpose of enlightening members of the public.

    It stated, for instance, that in its records and those of the Nigerian Mining Cadastre Office (MCO), the BUA Group does not have a mining lease over the contentious site No. 2541ML; therefore BUA’s mining activities there were illegal.

    Among others, the ministry said it stood by the Stop Work Order issued to BUA Group and signed by the Permanent Secretary, dated October 17, 2017. It said the letter was issued after thorough investigations confirmed that “BUA Group was indeed, engaging in illegal mining of

    marble/limestone…..”

    Dangote Group,  said the issues being raised by BUA are subject of litigation by several parties. “The ongoing suits shall be resolved by the courts in accordance with their role under the Constitution and laws of the Federal Republic of Nigeria,” Dangote stated, in a statement signed by its Head of Investor Relations, Carl Franklin.

  • Fed Govt orders Dangote, BUA to vacate disputed mining site

    Fed Govt orders Dangote, BUA to vacate disputed mining site

    •Security agents to halt firms’ operations at Okpella • Our position, by BUA

    THE Federal Government has ordered the Dangote Group and the BUA Group to vacate the mining site causing dispute between them in Obuh community, Okpella, Estako East Local Government Area, Edo State.

    This, according to Governor Godwin Obaseki, is to avoid breakdown of law and order in the area.

    Obaseki announced the Federal Government’s directive yesterday at a meeting with leaders and elders of Okpella community at the Government House, Benin.

    The governor told the community leaders that the Federal Government decided to suspend mining activities in the area since both parties involved in the crisis are in court and to allow peaceful resolution of the crisis.

    Obaseki said: “We are following the rule of law; there is a dispute. It is not unusual to have disputes over assets, but they are laid down methods to resolving disputes of this nature. What we understand as a government is that there is dispute or claim between two parties over an existing mining right and the Mining Act of 2007 is quite clear, the Federal Ministry of Mines decides on how to award or issue leases.

    “In this particular case, there are multiple claims and they have all gone to court. We have a letter from the Federal Ministry of Mines and Power instructing that the party currently mining that particular site should vacate pending the outcome of the decision in court. So, the position of Edo State government today is that court orders must be obeyed. Federal Government´s instruction should be obeyed. That mine should be shut until the outcome or the determination of the case in court.”

    Consequently, the governor directed the Police Commissioner and the Army Brigade Commander in the state to halt further operations at the Obu mines with immediate effect.

    The governor described Okpella as the mineral gem of Edo State and as such mineral resources ought to be a blessing to the people, “but regrettably, the situation on ground has degenerated to a security threat and therefore there is the need to nip it in the bud”.

    The Okpela chiefs lauded the government’s decision and declared their loyalty to the state government.

    Okpella chiefs’ spokesman Chief Moshood Aliu told the governor that they were in his office to declare their support for the state government’s effort at industrialising the state and for him to intervene in the dispute between Dangote Cement and BUA.

    The community heads added that the youths were being incited against one another in a bid to enforce perceived right to ownership of the mines, a situation, they said, generating tension in the area.

    Spokesman of Okpella community Mr. Ayuba Giwa said the Federal Ministry of Mines and Solid Minerals ought to be more prudent in granting mineral licence.

    “We urged all parties to abide by the rule of law and the rule of law includes the fact that in 1994, Okpella took this matter to the Federal High Court in Benin and judgment was given in favour of Okpella. “

    In its response, the BUA group said:

    “We heard of the alleged closing down of the Obu mines in Okpella, Edo State by Edo State Governor.

    “Whilst this remains in the territory of hearsay, our position on this matter remains very clear. Just as the Edo State Government said in its statement, this is an issue no state government has jurisdiction over as it is a Federal Issue.

    “It is, however, interesting to note that the mine under contention, ML2541, has been claimed repeatedly by the Ministry of Mines and Dangote to be in Okene, Kogi State.

    “Thus, we are curious and are at great loss as to why the Governor of Edo State is closing down a mine in Edo State, which has been claimed by the other parties involved to be outside his state in Okene, Kogi State and which the purported ML2541 licence also states clearly.

    “The ministry has written us prior and our response was published in our open letter to His Excellency, The President of the Federal Republic of Nigeria on December 4, 2017.

    “This case remains in a competent court of jurisdiction which has ordered all parties – BUA, Dangote, the Ministry of Mines and others to maintain status quo and we will continue to abide by the dictates of the court as a responsible corporate citizen.

    “We are however yet to receive some form of official communication asking us to close our mining sites ML18912 and ML18913 in Edo State, thus this alleged closing down report still remains in the territory of hearsay.

    “We will respond accordingly when and if we get an official communication from the proper authorities.”

     

     

  • Foreign investor snaps 3.2% stake in N124.1b Dangote deal

    •Meristem Stockbrokers closes major deal

    Nigeria’s most capitalised quoted company and Africa’s largest cement company-Dangote Cement Plc, recorded a major investment of more than N124.1 billion yesterday at the Nigerian Stock Exchange (NSE), another major deal that underlined the attraction of the cement company to major investors.

    An off-market, negotiated deal was struck for 549.98 million ordinary shares of 50 kob0o each of Dangote Cement at N225.68 per share. The deal was consummated through Meristem Stockbrokers Ltd, which represented the seller and CSL Stockbrokers Ltd, which represented the buyer.

    The deal represented 3.23 per cent equity stake of the total issued outstanding shares of 17.04 billion ordinary shares of 50 kobo each of the most capitalised quoted company at the NSE.

    While the details of the other parties to the deal were still sketchy, there are indications that the deal was between Dangote Industries Limited (DIL) and an existing foreign investor, which increased its shareholding in the cement company.

    The Nation had exclusively reported that DIL, the majority core investor in Dangote Cement, plans to sell shares valued at more than N200 billion in a partial divestment that will widen the float for Dangote Cement. DIL is owned by Africa’s richest billionaire, Alhaji Aliko Dangote and it owns more than 90 per cent majority equity stake Dangote Cement.

    An off-market, negotiated cross deal is usually not subjected to the dynamics of price discovery for the particular period. Off-market trade implied that the deal was sealed outside the floor of the NSE.

    The negotiated cross deal platform of the Exchange is a special-purpose trading platform that is meant for voluminous transaction. By the cross deal, it implies that the buyer and the seller had been prearranged and the transfer at the stock market was a mere perfection of the agreement between the two. The negotiated cross deal allows the parties to the deal to close the deal at reduced cost.

    Yesterday’s deal appeared to be a continuation of recent voluminous transactions in Dangote Cement. Last week, investors had struck two cross deals for the transfer of about 94.7 million shares of Dangote Cement valued at N23.12 billion. The transactions represented 0.56 per cent of the total issued outstanding shares of the company.

    A cross deal was struck for 22.625 million ordinary shares of 50 kobo each of Dangote Cement at N241.50 valued at N5.464 billion while another cross deal was struck for 72.071 million ordinary shares of 50 kobo each at N245 per share worth N17.657 billion.

    Also, foreign investors had in mid November 2017 snapped up 0.75 per cent equity stake in Dangote Cement in a deal valued at N27 billion. The foreign investors had struck a deal for the exchange of 128.56 million ordinary shares of 50 kobo each at N210 per share. Reliable sources indicated that the foreign investors were from Dubai, United Arab Emirates (UAE).

    The Nation had reported that Dangote Cement had secured regulatory approval for block divestment of 852.03 million ordinary shares of 50 kobo each. The block divestment represents 5.0 per cent of the issued share capital of Dangote Cement. Dangote Cement accounts for more than 30 per cent of the total market capitalisation of quoted equities.

    A source in the know had told The Nation that DIL plans to undertake the block sale in tranches and that the sale of 416 million ordinary shares in the third quarter of this year was the first tranche of the N200 billion divestment. About 2.44 per cent equity stake in Dangote Cement was swapped under pre-arranged transactions earlier this month. A report on the transactions indicated that six deals were struck for the transfer of 416 million ordinary shares of 50 kobo each at a below-the-market price of N210.

    South African government had in June 2013 bought into Dangote Cement. The South Africa’s government, through its wholly owned investment company, Public Investment Corporation of South Africa (PIC), had acquired 1.5 per cent equity stake in the Nigerian cement group to emerge the second largest equity investor.

    A reliable source had said the block divestment might not be unconnected with a regulatory requirement to free more shares of the cement company for ownership and trading by minority investors.

    Meanwhile, the deals on Dangote Cement pushed the turnover at the NSE yesterday to 752.11 million shares valued at N127.93 billion in 3,576 deals. Dangote Cement accounted for 96 per cent of the transaction value as investors invested. The pricing trend was negative as the benchmark index showed average decline of 1.24 per cent to close at 37,957.96 points.

     

  • BUA petitions Buhari over alleged sabotage by Dangote, ministry

    BUA petitions Buhari over alleged sabotage by Dangote, ministry

    BUA Group Executive Chairman/Chief Executive Officer Abdulsamad Rabiu has petitioned President Muhammadu Buhari to intervene and investigate alleged acts of sabotage against BUA Cement operations by Dangote Group in connivance with top officials of the Ministry of Mines and Steel Development.

    This was contained in a letter dated December 4, 2017, signed by Rabiu titled: “A Cry for help: Wanton abuse of power by a serving minister geared towards sabotaging operations of BUA Cement”.

    In the letter, BUA accused the ministry under the watchful eyes of its minister of trying to divert the course of justice in a dispute between two of the firms – BUA Group and Dangote Group.

    BUA, in the letter, also stated that Dangote Group had connived with the ministry’s top officials, including using thugs and agents of the state to ensure that operations at BUA Cement in Okpella were disrupted despite a suit pending before a Federal High Court due for hearing on December 5 and 6.

    BUA recounted that some armed militia said to be loyal to Dangote Group and his cohorts had unleashed mayhem on its over US$1 billion cement manufacturing plant with the intent to destroy properties worth millions of dollars before the timely intervention of BUA security personnel and security agencies, who ensured that no live was lost in the illegal invasion.

    The letter said in what can only be acts of impunity, cronyism and corruption, pressure has been mounted on top government officials to force BUA Group to relinquish its mining area to Dangote Group and this was again manifested when senior officials of the ministry and high ranking police officers allegedly stormed the mining area of BUA Cement to enforce a ‘Stop Work’ order on November 29, 2017 despite another strongly worded letter from BUA’s lawyers to the ministry refuting the claims made in the order.

    Rabiu described the invasion of BUA Cement in Okpella, Edo State as a calculated attempt to undermine operations in and around BUA Cement, monopolise the cement industry in a democracy and a free market, which is not suitable for the nation’s economic growth.

    BUA Executive Chairman argued that the move by Dangote Group and the ministry would lead to increase in price of the commodity, the cost of construction and housing delivery across the country. This, he said, will also jeopardise the country’s peace and security.

    “In view of the above, Sir, we are therefore constrained to make this passionate plea to you as the most incorruptible Nigerian leader and the President to intervene in ensuring that these actions of the minister and Dangote Group… be curbed whilst we await the outcome of the judicial decision on this matter,” the firm said.

  • Dangote crashes cement price on Jumia platform

    Dangote crashes cement price on Jumia platform

    In a new move designed to reduce price and ease logistics inherent in the purchase of its products, Dangote Cement Plc has signed a pact with foremost e-commerce platform, Jumia Nigeria, to sell its cement to customers online.

    At the unveiling of the deal in Lagos, Dangote Cement’s Key Account Director Chux Mogbolu said the company was happy to partner with the online shopping giant, in a bid to make Dangote cement available with ease to customers.

    According to the deal, Nigerians and corporate bodies wishing to purchase a minimum of 300 bags of 50kg of Dangote Cement and above can now order on Jumia from the comfort of their rooms at a reasonable price of N2,500 per bag as opposed to how much is sold in the open market and see them delivered to any place of their choice without any extra cost for transportation.

    Mogbolu, however disclosed that the purchase would only be within Lagos, Port- Harcourt and Abuja for now.

    He said: “Dangote Cement decided to work with Jumia Nigeria based on its credibility and excellent performance over the years in online shopping management.” He added that the new initiative would help arrest the scams perpetrated by online fraudsters who deceived the people by asking them to come and purchase Dangote Cement for N1000 per bag.

    “For now, the pilot scheme is live in Lagos, Abuja and Port Harcourt, but we can extend to other cities depending on the level of demand and performance of the new deal.

    “With the deal, Nigerians in need of seamless supply of cement from Dangote can now place order and pay online and wait for the delivery in record time from any of Dangote’s nearest cement plant to Lagos, Port Harcourt or Abuja.

    “We are starting with Minimum Order Quantity (MOQ) of 300, 600 and 900. We may increase depending on demand surge as time goes on,” Mogbolu explained.

    Speaking on the deal too, Chief Executive Officer of Jumia Nigeria, Juliet Anammah said the deal with Dangote Cement is part of efforts to deepen service delivery on Jumia Nigeria online platform.

    She said expressed belief that the deal will be beneficial to all parties involved and deepen further online shopping in Nigeria as obtained all over the world.

    The Jumia Nigeria chief reflected on the 2017 Black Friday Festival and said it has attracted more than 14 million visits since the campaign started on November 13.

    “The annual sales event, which was initiated in Nigeria in 2013 by Jumia remains the busiest and largest shopping day of the year on both online and offline stores. This year’s explosive Black Friday numbers demonstrates the increasing capacity and flexibility of the online retail space in Nigeria.

    “We deliver to the 36 states across Nigeria, and are able to reach neighborhoods and shoppers who traditionally have not had access to a wide variety of products and deals. This year we also see the increasing interest in groceries and other FMCG products which reflect the increasing relevance of Black Friday to the average Nigerian,” she said.

    Some key highlights of the 2017 figures presented by Jumia Nigeria in Lagos on Thursday showed among other things that More than 1.9 million visits on Black Friday Big Bang. 14.4 million visits since the start of the sales event; overall, 85 per cent of all visits were made on a mobile device, compared to 72 per cent in 2016; and 86,000 smartphones and counting have been sold in the past two weeks.

  • Dangote sells cement on Jumia platform

    Dangote sells cement on Jumia platform

    Dangote Cement yesterday said it has taken its product to e-commerce platform, Jumia, to combat charlatans who rip off customers with fake claims about pricing.

    Key Accounts Director at Dangote Cement, Chux Mogbolu, who spoke during a press conference organised by Jumia Nigeria to unveil the milestones achieved by Jumia during ongoing Black Friday, said the partnership was between two great brands and it was designed to bring ease to customers.

    “This partnership is for life. A bag of cement on the platform is only N2,500 and it includes the cost of freighting and offloading to the warehouse of the customers. Convenience and reliability are assured. This will hopefully address online scammers who say the sell the product for N1000 per bag and never do anything. The consignment will be delivered within 48 hours,” Mogbolu said.

    He said the company would be starting the pilot project with 300 bags while hoping reduction in the minimum order quantity (MOQ) would go down in the future.

    Chief Executive Officer, Jumia, Juliet Anammah, said its 2017 Black Friday Festival has attracted more than 14 million visits since the campaign started November 13.

    The annual sales event, which was initiated in Nigeria in 2013 by Jumia remains the busiest and largest shopping day of the year on both online and offline stores.

  • Dangote: From Congo with honour

    Dangote: From Congo with honour

    Foremost industrialist Aliko Dangote’s aggressive investment in Africa has earned him the Republic of Congo’s highest honour. He was conferred with ordre du merite Congolas, following the inauguration of Dangote Cement’s 1.5 million metric tonnes plant in Mfila, Congo. The $300 million investment is expected to boost Congo’s economy, Assistant Editor OKWY IROEGBU CHIKEZIE reports.

    His joy knew no bound. By the time President Denis Sassou Nguesso of Congo Brazzaville finished reeling off what the  Central African country would gain from Dangote’s 1.5 million metric tonne cement factory, their excitement was justified.

    For instance, with promises to directly engage over 1,000 Congolese and also provide livelihood to about 5,000 nationals of the poor Central African country indirectly, it was hardly surprising that the people and government of Congo conferred the nation’s highest honour on Chairman of Dangote Cement Alhaji Aliko Dangote.

    At the inauguration of the biggest cement plant in Mfila, an excited Nguesso said Congolese had no option but to honour Dangote  because of his huge investment in their country and the potential for his people in ancillary industries as well as its overall impacts on the economy.

    Nguesso did not mince words when he described the investment as an industrial revolution within the Economic Community of the Central African States (CEMAC). According to him, the coming on stream of the Dangote cement plant is timely and encouraging, because it is starting operations at a time government’s total revenues had plummeted by as much as 31.3 per cent.

    Also, the country’s revenues from the oil sector, the Congolese President said, had fallen to as low as 65.1 per cent since 2015 due to the slide in global crude oil prices. He, therefore, said his country was happy to host the huge investment, which was constructed at a conservative cost of $300 million. He also encouraged other Nigerian investors to take a cue from Dangote.

    Nguesso, however, reiterated that it’s only Africans that can develop Africa.

    He said his government has observed the operations of Dangote cement in other African countries and how it has helped boost their economies by sparking other allied industries. He expressed the  hope that the Congo situation would not be an exception.

    Incidentally, the Congolese president’s wish was not lost on the pan-African serial investor. Dangote, in his address, said the plant would boost Congo’s economy, conserve foreign exchange that would otherwise have been spent on imports for the country. It will also create employment opportunities down the value chain.

    Giving more details, Dangote, who said his company was delighted to have completed the plant on schedule, added that the 1.5 million metric tonnes per annum plant has more than doubled the cement production capacity of Congo Brazzaville, which stands at 2.550 million metric tonnes per annum, far in excess of national demand.

    “It is envisaged that this will contribute substantially to the availability and affordability of cement in the country and the Republic of Congo will no longer need to depend on imports to bridge the gap between demand and supply,” Dangote stated.

    He praised the bold economic reforms by Nguesso’s administration. “The construction industry, which is a major sector of the economy, is a beneficiary of your administration’s policies, and has been receiving investors’ attention.

    “We believe that our investment will contribute to Congo-Brazzaville’s current economic renaissance under Nguesso’s leadership,” Dangote said.

    He pointed out that his organisation received tremendous support and encouragement both from the government and people of Congo-Brazzaville, right from the conceptualisation stage of the cement project, to its final completion and commissioning.

    In appreciation of the good gesture of the government and the people, Dangote announced that without waiting to stabilise production, the cement company had already begun  its Corporate Social Responsibility (CSR) projects with the construction of a road.

    The road project, measuring 30 kilometres (KM) around Yamba, would have cost the local government approximately 240 million CFA to execute.

    That was not all. Dangote further stated: “We have also disbursed scholarships for students and we are also building a school and renovating a hospital within our host communities.

    “Apart from these, we have repaired a dilapidated bridge on a major highway at a cost of $300,000, to enable heavy duty vehicles to cross the bridge. As a policy, we also ensure that we give priority to qualified indigenes from our local host communities in our recruitment drive.”

    Dangote informed the gathering that his company’s total cement production capacity across Africa stood at 45.8 million metric tonnes per annum as at  end of May 2017. This makes it one of the biggest cement producers on the continent.

    He added that the company’s aspiration was to rank among the top 10 cement producers in the world by 2020.

    Dangote pointed out that the company’s key operations in Nigeria had significantly improved its fuel mix and this has helped it increase margins across the Group. “It is especially good for Nigeria because most of the coal we are using is mined in our own country,” he said.

    The foremost industrialist added that his pan-African operations are performing strongly with excellent sales growth in Cameroon, Ethiopia and Senegal, Ethiopia, Zambia, Cameroun and Tanzania.

    He added that the Congo-Brazzaville plant, which began operations in the third quarter of 2017, will be the fifth cement plant that would be inaugurated in the last two years.

    As it turned out, Dangote’s aggressive expansion programme has not gone unnoticed at least, by the government and people of Congo, who are the latest beneficiaries of the serial investor’s pan-African investment drive.

    The symbolic offer of a collection of green shrub by the indigenes to show their ancestors’ approval of the cement plant was the highpoint of their show of appreciation.

    The government and people of Nigeria, Dangote’s home country, are no less happy. For instance, President Muhammadu Buhari, who was represented at the event by a delegation led by the Minister of Mines and Steel Development, Dr. Kayode Fayemi, praised Dangote and his cement company for championing Africa’s economic renaissance.

    Buhari said the sterling accomplishment of construction of cement plants across several African countries, made the Dangote Cement brand, and indeed Aliko Dangote himself, worthy ambassadors of Nigeria.

    President Buhari said his government has consistently supported and encouraged the Dangote Group in its quest to contribute its quota to the economic emancipation of the African continent, which is blessed with a plethora of natural resources.

    “I believe that it is only home-grown practical solutions that can address the myriad issues plaguing Africa today and one of such challenges that Africa has been grappling with for decades is infrastructure deficit.

    “I am confident that massive investments in cement production, which is a key driver of infrastructural development, will contribute in no small measure, to addressing this perennial problem,” Buhari said.

    He recalled with satisfaction that local cement manufacturers such as Dangote Cement, Lafarge and BUA, have exploited one of the solid minerals, limestone, which is a basic input for cement production.

    “The backward integration policy of the Federal Government in the cement sector, which was launched in 2002, has contributed to this success story by successfully substituting imports with local production, we have saved over $3 billion spent on cement importation into Nigeria, annually.

    “We have also started using cement for road construction in the country due to its numerous advantages over the more common bituminous road. Again, in this area, Dangote Cement is leading the charge, through AG-Dangote, its joint venture, with Andrade-Gutierrez, a construction giant in Brazil”, the Nigerian president stated.

     

  • Dangote gets kudos for industrialisation

    Dangote gets kudos for industrialisation

    Kano State Governor Umar Ganduje has praised the President/CEO, Dangote Industries Limited, Aliko Dangote, for his industrialisation effort in almost all sectors of the economy.

    Ganduje, who spoke at Dangote Special Day at the Kano Trade Fair, said Nigeria is lucky to be blessed with Aliko Dangote, who has made Nigeria and Africa proud.

    Represented by the Commissioner for Commerce, Industry, Cooperatives and Tourism, Ahmad Rabiu, the governor said Dangote is synonymous with development, given his initiative in the economy.

    His words: “Dangote Group and Dangote Foundation have touched lives in Nigeria and beyond. There is no household that does not use Dangote products. Everywhere you go, there are Dangote products and services from which many are benefitting.”

    Ganduje hoped the 38th Kano International Trade Fair will be a success because Dangote is involved.

    Aliko Dangote said the government’s diversification agenda put the economy on the right trajectory for growth.

    According to him, diversification will take the country to the next level and away from overdependence on oil.

    Dangote, who was represented by the General Manager, Stakeholder Management, Dangote Group, Bello Abdullahi Dan-Musa, said the country should continue to explore opportunities in various sectors to grow the economy.

    His words: ”We are committed to diversification as it is what Nigeria needs and indeed Africa, to add value to our basic endowments for economic growth.

    “That is why we are also exploring opportunities in the different sectors, cement, flour, salt, sugar and recently, Oil and Gas and agribusiness to move the country forward.

    “Dangote businesses are meant to impact the people’s lives in different ways, that is why Dangote Group is structured to deliver basic goods and services that are essential for improving standard of living.”

  • AfDB portfolio in Nigeria over $6bn – Adesina

    AfDB portfolio in Nigeria over $6bn – Adesina

    Dr Akinwumi Adesina, President of African Development Bank ( AfDB ), says the bank’s total active portfolio in Nigeria is over six billion dollars.

    Adesina said this in an interview on Wednesday in Abuja.

    “The bank supports Nigeria very strongly.

    “When Nigeria was going through a tough economic time, we led the world actually in rallying support around for a budget support which we did at 600 million dollars to help build more resilient economy as it shows a better diversified economy.

    “If you look at our total active portfolio in the country now, it is over 6 billion dollars.

    “Take for example, we invested over 300 million dollars from the private sector part of the bank in Dangote industries – Petro-chemical industries and the fertiliser manufacturing companies.

    “We also invested over 100 million dollars in the Indorama fertiliser companies as well; they are looking at us to do more, additional 100 million dollars for them.’’

    In addition, he said the Bank had been supporting the recovery effort of the Federal Government in the North East.

    He, however, commended President Muhammadu Buhari for the investment made so far in rebuilding the North East.

    “I give the President kudos for all that has been achieved. We have to rebuild the infrastructure – road, schools etc

    “We have Basic Livelihood Support Programme for over 250 million dollars that we have done for the North East of Nigeria.

    “On agriculture, the Board has just approved a programme called Enable Youth.

    “The programme is to create a generation of young commercial farmers in Nigeria; that is about 430 million dollars we are investing in that.’’

    Adesina, who won the 2017 World Food Laureate Award in Agriculture in the U.S., further said that the Bank had been doing a lot of line credit in Nigeria for commercial banks to lend to small and medium size enterprises.

    He said that the Bank had been talking with the Minister of Power about how to help in the power sector in Nigeria.

    “We have invested a lot in the transmission companies of Nigeria.

    “We are also helping them to have an additional 200 million dollars to post bonds, to be able to raise money to modernise the transmission network in Nigeria.

    “I remember during COP 22 in Morocco, I spoke to the Minister of Power, Fasola and I told him to visit Noor Ouarzazate, the largest Concentrated Solar Power ( CSP ) plant in the World, that was financed by the AfDB in Morroco.

    “He said he was very pleased with the idea and we are supporting his ministry now with a big project, we are going to do in Jigawa a project on Solar.

    “We have a number of states that have approached us and we are looking at various opportunities of supporting from Ogun, we are looking into that; we are looking at Kaduna, Kano states and others.

    “Nigeria is a big market for us and we are going forward in terms of our planning investment over the next three years.

    “It will be over 4.1 billion dollars that we are planning for Nigeria that will cover agriculture, infrastructure, power sector, basic livelihood in terms of water and sanitation,’’ he said.

    Adesina, however, expressed optimism over the implementation of the bank projects in Nigeria, adding that there was a very stringent monitoring system to ensure implementation of set targets.

    “We are quite pleased with a lot of progress I have seen on several of the projects that we have in Nigeria.

    “Obviously, a lot of improvement is needed in terms of the time it takes to actually sign some of the required agreements; it takes a lot of time.

    “We are going to do better because the more we can do that, the more we can actually show better impact in Nigeria.

    “Having talked to the authority to help us improve the time, it takes between when we approve something and when it is signed, it becomes effective in Nigeria.”

    NAN

  • Dangote to open cement Plant in Congo

    Dangote to open cement Plant in Congo

    Dangote Cement will formally open its 1.5million metric tonnes Cement Plant in Congo on Thursday.

    The plant, built at a cost of $500 million, is expected to directly employ more than 1000 people, and thousands more in indirect job placement.

    The Plant which is now the largest in Congo rolled out its first bag of cement on the 7th of August, 2017.

    Dangote Cement plants currently feature in 17 African countries. The Congo Plant commissioning will bring the total of Dangote Cement fully operational Plants in Africa, to 10.

    The company’s third quarter unaudited results showed that the Congo plant which recently began operations has almost doubled the size of the cement sector in the country.

    In the overall, Dangote Cement maintained its strong hold in the domestic cement market accounting for 65 percent of the Nigerian cement market while Pan-African volumes went up by 7.5 percent to 7.0 mta. Analysis of the results indicated that the company recorded strong volumes in Senegal, Ethiopia and Cameroon.

    In the nine months under review, the 1.5 mta clinker grinding facility in Douala Cameroon sold approximately 938 kt of cement, indicating an increase of 16.4 percent on the 806 kt sold the same period in 2016.

    The company attributes the increase in sales to a number of factors ranging from strong brand recognition, increased point of sales branding, improvements in sales and marketing strategies to higher visibility through trade shows.

    Dangote Cement Ethiopia increased sales by 16.8 percent to nearly 1.7 mta in the first nine months of 2017 representing capacity utilization of approximately 88 percent. The cement plant in Pout Senegal sold 1.0mta of cement in the period under review, up by 21.7 percent on the comparable period of 2016. This represents almost 89 percent capacity utilization at the factory.

    Statement from the company stated that “Our Pan-African operations are performing strongly with excellent sales growth in Cameroon, Ethiopia and Senegal. We are consolidating our success across Africa and have just commissioned our 1.5Mta factory in Congo, the tenth country in which we have established operations.

    In our key operations in Nigeria we have significantly improved our fuel mix and this has helped increase margins across the Group. It is especially good for Nigeria because most of the coal we are using is mined in our own country”.

    It would be recalled that top rating agencies, Moody’s Investors Service(Moody’) and Global Credit Ratings recently scored Dangote Cement high marks in their recent published ratings assigning a stable outlook to the foremost cement conglomerate.

    Moody’s assigned a first-time Ba3 corporate family rating (CFR), Ba3-PD probability of default rating and Aaa.ng national scale rating (NSR) corporate family rating to Dangote Cement Plc (DCP), with the outlook on the ratings as stable while Global Credit Ratings accorded initial long term and short term national scale issuer ratings of AA+(NG) and A1+(NG) respectively, to Dangote Cement Plc, with the outlook accorded as Stable.

    Speaking on the rating, Douglas Rowlings, Vice President and lead analyst for Dangote Cement Plc at Moody’s said, “Dangote Cement Plc’s Ba3 corporate family rating, one-notch above the Government of Nigeria’s rating, reflects the company’s strong standalone credit profile and track record of demonstrated financial support from a larger and more diversified parent, Dangote Industries Limited.”

    He added that the ratings factor in the diversification of the company’s revenue streams as DCP’s new cement production plants are commissioned in Africa with Pan-African volumes expected to reach 40 percent of total sales volumes by 2020.

    According to Moody’s, DCP’s Ba3 CFR and Ba3-PD probability of default rating reflect its strong financial profile, which factors high operating margins trending above 50 percent, low leverage as measured by debt/EBITDA trending below 1.0x over the next 18 months and high interest coverage as measured by EBIT/interest expense trending above 8x over the next 18 months.

    Other factors which contributed to the rating include; conservative funding policies with debt funding matched to the currency of cash flow generation and prudent financial policies which will ensure sustenance of strong credit metrics through operating and project build cycles; and the additional parent level financial strength afforded by being part of a broader diversified group of companies under the Dangote Industries Limited (DIL) umbrella.

    Global Credit Ratings (GCR) credit ratings on Dangote Cement were based on the fact that DCP is one of Africa’s leading integrated cement companies.