The Nation Newspaper

Tag: Dangote

  • Dangote vows to scale up investments in Nigeria, others

    Dangote vows to scale up investments in Nigeria, others

    Africa’s richest man and President of Dangote Group Alhaji Aliko Dangote has promised to increase his investments in Nigeria and other parts of the world.

    He spoke while being honoured by a United States of America-based organisation, Africa-America Institute (AAI), after receiving the “2016 African Business Leader Award.”

    Dangote was presented with the award at a ceremony at the sidelines of the United Nations General Assembly in New York, United States.

     Other prominent African awardees were Stephen Hayes, president and CEO of the Corporate Council on Africa (CCA), who won the AAI ‘2016 U.S. Business Leader Award’; and Sunil Benimadhu, executive director of the Stock Exchange of Mauritius (SEM), who won the AAI ‘2016 Distinguished Alumnus Award.’

    At the Award Gala, with the theme: “Education: The Key to Africa’s Economic Growth”, Dangote expressed delight that the institute brought education in Africa to the front burner, noting: “I have always been passionate about education because I believe it is a weapon of liberation.”

    Founded in 1953, AAI is a premier U.S.-based international organisation dedicated to strengthening human capacity of Africans and promoting the continent’s development through higher education and skill training, convening activities, programme implementation and management.

  • Dangote Cement drags equities to N17b loss

    Dangote Cement drags equities to N17b loss

    The Nigerian stock market suffered a relapse yesterday as the decline in share price of the highly influential Dangote Cement Plc dragged the equities market to a net capital loss of N17 billion.

    While the overall pricing trend remained tight amidst continuing rally in the oil and gas sector, losses recorded by Dangote Cement overwhelmed the modest positive pricing trend that had shaped the market in the previous two trading days.

    Aggregate market value of all quoted companies on the Nigerian Stock Exchange (NSE) dropped from its opening value of N9.692 trillion to close at N9.675 trillion. The All Share Index (ASI), the common value-based index that tracks prices of quoted equities, declined by 0.17 per cent from 28,214.57 points to close at 28,166.42 points. Average year-to-date return now stands at -1.66 per cent.

    Dangote Cement, Nigeria’s most capitalised quoted company, controls nearly one-third of total market capitalisation of the Nigerian equities’ market. Dangote Cement’s share price dropped by N3 or 1.64 per cent to close yesterday at N180, orchestrating a general negative market position. Guaranty Trust Bank, Nigeria’s most capitalised banking stock, followed Dangote Cement with a loss of 94 kobo to close at N25.83. Guinness Nigeria followed with a loss of 23 kobo to close at N92.77. Nigerian Aviation Handling Company declined by 16 kobo to close at N3.32 while Ecobank Transnational Incorporated dropped by 12 kobo to close at N11.38 per share.

    Total turnover stood at 410.10 million shares valued at N3.62 billion in 4,179 deals. Banking stocks dominated top activities’ chart. The three most active stocks included Diamond Bank, with 141.36 million shares; FCMB Group, 48.10 million shares and FBN Holdings, with 40.76 million shares.

    On the positive side, downstream oil majors continued to lead the gainers. Total Nigeria led the 18-stock gainers’ list with a gain of N13.50 to close at N283.50. Mobil Oil Nigeria followed with a gain of N8.55 to close at N179.55. Forte Oil rose by N7.76 to close at N163.11. Nigerian Breweries gathered N1.46 to close at N143.50 while PZ Cussons Nigeria rose by 94 kobo to close at N19.90 per share.

    “Whilst a tight monetary policy environment prevails, we perceive frail sentiment towards equities may persist as investors continue to take advantage of higher yields in the fixed income market,” analysts at Afrinvest Securities stated.

     

  • RMAFC disagrees with Dangote on NLNG, others

    RMAFC disagrees with Dangote on NLNG, others

    The Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) has disagreed with the proposal of the President, Dangote Group, AlhajiAliko Dangote that the Nigerian Liquefied Natural Gas (NLNG) and other assets of the Federal Government be sold to raise cash to pull the economy out of recession.

    A statement endorsed by its Acting Chairman, Shettima Umar Abba Gana, explained that it would be unwise for the Federal Government to dispose of its crown jewels that generate revenue and keep the Federation Account healthy over the long term.

    The statement recalled that when the government sold petroleum marketing companies, the Nigerian National Petroleum Corporation (NNPC) was forced to establish NNPC Retail Ltd, adding that the revenue derived from the sale of some oil blocks by some international oil companies (IOCs) has not been remitted into the Federation Account.

    Similarly, the Commission noted that the government sold houses meant for ministers and members of the National Assembly as part of the monetisation policy, adding that the Federal Government might be compelled to build houses for political office holders because of rising cost, rent and security concerns.

    Citing the Nigeria Extractive Industry Transparency Initiative (NEITI) 2013 audit and financial report of the oil and gas industry, RMAFC lamented that  $12.9 billion was received by NNPC from the NLNG in eight years which the corporation did not remit to the Federation Account. The audit, according to the Commission, also revealed that NLNG paid $1.289 billion as dividends in 2013.

    “It is the considered view of the Commission that Nigeria’s assets such as the NLNG and other strategic national resources for that matter should not be sold to meet short-term financial obligation,” RMAFC warned.

    Contrary to the advice given by the Central Bank of Nigeria (CBN) Governor, Mr Godwin Emefiele, that the government stood to realise $10 billion from the sale of these assets, the Commission said the same amount could be borrowed from the International Monetary Fund (IMF) and use the revenue from these same assets to repay the loans over the next 20 years after which the government would still retain the assets and continue to enjoy their regular annual dividend payments.

    The Commission said instead of selling off such vital assets, which generate considerable funds for the federation, wealthy Nigerians should be encouraged to set up their own LNG projects, since Nigeria ranked seventh in the world and first in Africa with natural gas reserves base totalling 188 trillion cubic feet (Tcf) as at May 1, last year.

    In addition, Nigeria’s natural gas is regarded as one of the best in the world as it has low hydrogen sulphide (H2S) or carbon dioxide (Co2) impurity levels, it added.

  • Oil in Lagos excites Dangote

    Oil in Lagos excites Dangote

    THE discovery of oil in Lagos State in commercial quantity has been described as a good development for which Dangote Refinery and Petrochemicals will benefit from.

    Group Executive Director of the Dangote Industries Limited Devakumar Edwin spoke in Lagos when the leaders of League of African Development Students (LEADS) visited his office.

    Edwin, who said it was a good development that Lagos is now an oil-producing state, added that the discovery would strengthen the country’s oil output.

    He stated that Dangote Refinery and Petrochemical would be willing to partner the state and the Federal Government in ensuring that the oil production from Lagos adds value to the economy of Lagos State and Nigeria.

    He said: “We are very happy at the discovery of oil in Lagos. It is indeed a good and welcome development for us as a company. It will accelerate the growth level of the state and also be of immense benefits to the residents and the country at large.

    “Not only will Lagos be regarded as an oil-producing state and share out of the derivation fund, but Lagos will continue to be an invaluable partner to the Dangote Group with the Dangote Refinery in Ibeju-Lekki.”

    Edwin noted that though the crude oil prices might be unattractive at the moment, which has made major international oil firms to slow down, “it did not mean that the oil and gas industry was devoid of development”.

    The Dangote Group boss said although it is just in its early phase, the Badagry oil find will be a lot more attractive for investments, when prices begin to rise at the international oil market.

    “The crash in the global crude oil price is not making it attractive to invest and make a sustainable investment. No attractive investments in deep water, but perhaps shallow waters. Oil majors are cutting down on their investments, and also retrenching, I will be surprised if people go in fast into Badagry. But, by and large, it is a welcome find, for when the prices begin to rise, we will begin to reap the benefit.”

     

     

     

     

     

  • How to save the economy, by Dangote

    How to save the economy, by Dangote

    •Says ‘we need to sell off some of our assets’ 

    Business mogul Aliko Dangote believes  a wave of asset selling by the government could be the saving grace for Nigeria in the face of the current economic recession.

    “I think the real challenge for us is now for us to have the political will in terms of selling some assets,” he told the Consumer News and Business Channels (CNBC) Africa yesterday.

    “I think it’s an easier route than the IMF (International Monetary Fund) or the World Bank to borrow money, because what you need to do is actually to beef up the reserves.”

    Dangote spoke before Nigeria’s credit rating was downgraded to B from B+ by S&P Global Ratings yesterday.

    He urged the government to sell assets in some of its joint ventures with the private sector in an open tender process.

    He said that Africa Finance Corporation – a development finance institution established in 2007 – would fetch close to $800 million while  government s should also look to sell 100 percent of the country’s stake in Nigeria LNG Limited.

    “If I had challenges in my company, I would not hesitate to sell assets, to remain afloat, to get to the better times, because it doesn’t make any sense for me to keep any assets and then suffocate the whole organization,” Dangote said.

    S & P branded the economy “weakened more than we expected owing to a marked contraction in oil production, a restrictive foreign exchange regime and delayed fiscal stimulus.”

    The  economy is set to contract on an annual basis in 2016 for the first time in 21 years, with its all-important oil industry suffering under weak global prices.

    The  gross domestic product (GDP) dropped by 2.06 percent in the second quarter of 2016, after falling 0.36 percent in the previous three months.

    Dangote said the economy  should have been diversified a long time ago, lamenting the  overreliance on oil.

    But  he was optimistic that Nigeria would exit recession by  the last  quarter of the year and said the country “has all the answers” to bounce back to health.

  • Dangote promises more investments in Edo

    The President of Dangote Group, Aliko Dangote, on Wednesday paid homage to the Crown Prince of Benin Kingdom, Eheneden Erediauwa.

    Dangote, who said he was in the palace to commiserate with him on the death of  late Oba Erediauwa  and to congratulate him on his forthcoming coronation as the new Oba of Benin, promised to bring more investment to the state.

    He said with the kind of weather and natural resources in the state, Edo could be made an employment hub for job seekers.

    Dangote said the state is blessed with human and material resources, adding that jobs creation would not be a difficult task.

     

  • Dangote joins ONE campaign board

    Dangote joins ONE campaign board

    The  ONE Campaign has announced the appointment of the President of Dangote Group, Aliko Dangote, to its board. A statement from the anti-poverty group said Dangote, one of Africa’s most prominent business leaders, brings a wealth of expertise and experience on how to encourage development and poverty fighting efforts.

    The announcement comes shortly after Dangote and ONE’s co-founder Tom Freston travelled to the Northeast, where they visited a camp for Internally Displaced Persons (IDPs), fleeing instability caused by Boko Haram, and highlighted how, without immediate aid, nearly 50,000 children are at risk of death this year.

    On the trip, they announced a partnership between ONE and Dangote Foundation, which will strengthen civil society and boost efforts to fight poverty and preventable disease in Nigeria.

    Freston, who chairs the board, said: “On behalf of the board, and ONE’s seven million members worldwide, I welcome Aliko Dangote. It is a true privilege to have someone with so much knowledge and experience to help guide the efforts of ONE. We are at a crucial point in the fight against poverty with many opportunities, but also many challenges. It is only by working with someone of Aliko Dangote’s calibre that we can succeed in our aim.”

    Speaking about his new role, Dangote said: “I am happy to be part of this incredible organisation. The goal of ending poverty is so important that everyone has a duty to help, and I am honoured that I will be able to play my part by advising and supporting the leadership of ONE.”

  • Dangote, Bono to draw global attention to suffering in Nigeria

    Dangote, Bono to draw global attention to suffering in Nigeria

    Business mogul Aliko Dangote says his foundation has spent over N4.5 billion to help insurgency-ravaged communities in Borno, Yobe and Adamawa states following the havoc caused by Boko Haram.

    Addressing reporters on his foundation’s partnership with international rock artist Bono, the co-founder of ONE Campaign in Abuja yesterday, Dangote said his foundation would continue to help in alleviating suffering in the three affected Northeast states.

    Dangote Foundation, he said, would intervene in health care and empowerment for the less privileged, with 70 per cent of its fund dedicated to Nigeria and the balance to Africa and the rest of the world.

    The partnership between Dangote Foundation and ONE Campaign, co-founded by Bono, lead singer of the rock group U2, hopes to tackle challenges facing Nigeria, but particularly malnutrition and employment crisis in the Northeast.

    One of these challenges is the plight of Internally Displaced Persons (IDPs) in the Northeast.

    Bono and Dangote said $300 million would be required to bridge the funding gap to tackle these issues but they have only $100 million.

    Bono was instrumental to Nigeria securing debt relief in 2004 and he vowed to use his international clout to draw global attention to the suffering in Nigeria.

    The partnership will focus on the most marginalised citizens, particularly girls and women, who face the brunt of poverty and help empower those most at risk from extreme poverty, extreme climate and extreme ideology.

    The partnership will help amplify calls to millions of Nigerians on health, anti-corruption and agriculture. To kick-start the partnership, they launched a campaign, tagged: ‘Make Naija Stronger’, calling on the Federal Government to deliver on its commitments to invest more in health care.

     

  • Dangote begins construction of concrete roads in States

    Dangote begins construction of concrete roads in States

    Dangote Industries Limited (DIL) has commenced the construction of concrete roads in various states across the country. Sources at the company’s head office revealed that the company has already commenced construction of roads in Lagos, Bauchi, Kogi, Kaduna and Ogun state among many others.

    The source said: “We are very happy at the moment. I can categorically state that we are in more than five states across the country already constructing roads. The reception has been wonderful. State Governments are beginning to see the need to embrace concrete roads and we are very happy at the way things are currently going.

    It would be recalled that the Chairman of Dangote Cement, Aliko Dangote recently reiterated his plea to the Federal Government to consider the use of concrete roads in the country.

    Dangote said, it will be to the benefit of Nigerians and even the Federal Government to embrace the option of using concrete for roads in the country. Aside from being very cheap, he said concrete roads are more durable and that its maintenance cost is near zero.

    According to him: “We are pushing for Nigeria to do a concrete road. It is cheaper to do a concrete road that will last 50 years than to do a bitumen road. It will also help in eliminating corruption because if you go and build a bitumen road, it will have to be adequately maintained unlike a concrete road that is very durable.”

    Executive Director Stakeholders Relations and Corporation Communications, Mansur Ahmed , an engineer also strongly canvassed for the use of concrete to construct roads in the country recently at a conference in Abuja. He said: “ Using concrete to make roads is a choice that Nigeria must make”

    He also said concrete roads makes more economic sense for a country like Nigeria, as the use of Asphalt has left the roads in deplorable conditions. He said Asphalt is no longer evoke in developed climes.

    He also revealed that the construction of concrete road is faster and can last for half a century compare to Asphalt.

    He emphasized that concrete roads are 20 per cent cheaper to build.

    According to him, in the construction of concrete roads, the cement raw materials are readily available while Asphalt is imported into the country.

    It would be recalled that the company has just expanded its frontiers to Asia, by constructing a 3 million metric tons per annum (mmtpa), Cement Plant in Nepal, as part of its new investment of $4.34 billion into 15 African countries.

    Dangote recently said: “…..We are not only building cement plants in Africa, we have gone far away to NEPAL to build a 3 million metric tons Cement Plant capacity and by the time all these our new projects are completed in the next two years, Dangote Cement will have more than 70 million capacity but we are not going to stop there, hopefully, by 2020, our targets is getting to somewhere around 100 million tons capacity. I can assure you categorically that Africa will not lack cement now and even in the future…Africa will be self -sufficient rather than be a dumping ground for other manufacturers of cement. “

    The new Plants for which agreement was signed recently with Sinoma, was on the construction of the following Plants: 3mmtpa in Nepal, 2.5mmtpa in Ethiopia, 3mmtpa in both Kenya 1&2; 1.5mmtpa in Zambia; 1.5mmtpa in Senegal, 1.5mmtpa in Niger, 1.5mmtpa in Mali, Cameroon, Cote D’Ivoire and Ghana also have Plants of 1.5mmtpa capacity respectively.

    It would be recalled that Dangote Cement recently commissioned its 1.5 million metric tonnes per annum (mmtpa) capacity cement plant valued at $400 million with a 30 megawatts coal plant to power the factory.

    The project was inaugurated by Zambia President , Edgar Chagwa Lungu, at Masasiti district, Ndola, Zambia.

     

  • Dangote commences road construction

    Dangote commences road construction

    Dangote Industries Limited (DIL) has commenced the construction of concrete roads in various states across the country. Sources at the company’s head office revealed that the company has already commenced construction of roads in Lagos, Bauchi, Kogi,  Kaduna and Ogun state among many others.

    The source said: “We are very happy at the moment. I can categorically state that we are in more than five states across the country already constructing roads. The reception has been wonderful. State Governments are beginning to see the need to embrace concrete roads and we are very happy at the way things are currently going.

    Chairman of Dangote Cement, Aliko Dangote recently reiterated his plea to the federal government to consider the use of concrete roads in the country. Africa’s richest man said it will benefit Nigerians and even the federal government to embrace the option of using concrete for roads in the country. Aside from being very cheap, he said concrete roads are more durable and that its maintenance cost is near zero.

    He said: “We are pushing for Nigeria to do a concrete road. It is cheaper to do a concrete road that will last 50 years than to do a bitumen road. It will also help in eliminating corruption because if you go and build a bitumen road, it will have to be adequately maintained unlike a concrete road that is very durable.”

    Dangote’s Executive Director Stakeholders Relations and Corporation Communications, Engr Mansur Ahmed, also canvassed the use of concrete to construct roads in the country recently at a conference in Abuja.

    He said: “Using concrete to make roads is a choice that Nigeria must make.”