The Nation Newspaper

Tag: Dangote

  • Dangote, Otedola live it up at Ali Baba’s show

    One thing that is common to politics and business is the saying that there is no permanent friend or enemy but permanent interest. After years of bickering, the feud between two of Africa’s richest men, Alhaji Aliko Dangote and Femi Otedola, seems to have abated. The two business moguls appear determined to prove that a broken friendship is not a broken ornament that cannot be mended.

    Sighted together at a party in Lagos recently, the two billionaires displayed full-fledged solidarity, subtly telling the world that their differences have been resolved and their broken fence mended.

    Of course, they had been friends until the feud that shook the Nigerian socio-economic sphere as no one had expected their seemingly water-tight friendship to crack. Forbes magazine had profiled them as two of Africa’s richest men. Aliko was indeed identified as the richest in Africa while Otedola’s also occupied a pride of place on the list and was also spotted as a businessman with a bright future. But like a pack of badly arranged cards, their relationship crumbled after a conflict of interests from their conglomerates.

    But thanks to the intervention of Lagos-based publisher, Nduka Obaigbena, their cordial relationship was restored and a new friendship emerged from the ashes of the old one. The two were seen together at the Ali Baba concert on January 1, chatting all throughout the event.

  • Dangote, Otedola live it up at Ali Baba’s show

    One thing that is common to politics and business is the saying that there is no permanent friend or enemy but permanent interest. After years of bickering, the feud between two of Africa’s richest men, Alhaji Aliko Dangote and Femi Otedola, seems to have abated. The two business moguls appear determined to prove that a broken friendship is not a broken ornament that cannot be mended.

    Sighted together at a party in Lagos recently, the two billionaires displayed full-fledged solidarity, subtly telling the world that their differences have been resolved and their broken fence mended.

    Of course, they had been friends until the feud that shook the Nigerian socio-economic sphere as no one had expected their seemingly water-tight friendship to crack. Forbes magazine had profiled them as two of Africa’s richest men. Aliko was indeed identified as the richest in Africa while Otedola’s also occupied a pride of place on the list and was also spotted as a businessman with a bright future. But like a pack of badly arranged cards, their relationship crumbled after a conflict of interests from their conglomerates.

    But thanks to the intervention of Lagos-based publisher, Nduka Obaigbena, their cordial relationship was restored and a new friendship emerged from the ashes of the old one. The two were seen together at the Ali Baba concert on January 1, chatting all throughout the event.

  • Economic slowdown: Dangote urges investors not to relent

    Economic slowdown: Dangote urges investors not to relent

    Dangote Group has urged investors to continue to invest in the economy as Nigeria still remains a fertile ground for growing businesses.

    The Manufacturers Association of Nigeria (MAN) recently said the devaluation of the naira and increase in the interest rate are all contributory factors to the increase in the cost of production.

    In a statement, the President, Dangote Group, Alhaji Aliko Dangote said Nigeria still remains a fertile ground for growing business, adding that it is not resting on its oars.

    He said investors should collaborate with government towards ensuring that the country, which is Africa’s biggest economy, remained robust.

    According to him, the company  is committed in its aggressive growth plan towards ensuring that Nigeria becomes net exporter of cement.

    The statement described Nigeria as a land of hope and opportunities and commended the Federal Government for encouraging private investment in the country through the recent listing of Nigeria top 100 companies.

  • Dangote to begin rice production

    Dangote to begin rice production

    In response to the federal government call to domesticate the production of rice in Nigeria, the Dangote Group of Companies will next year begin the production of rice in the country,

    Group Executive Director, Stakeholders Management and Corporate Communications of Dangote Group, Mansur Ahmed, spoke when a team of officials of the Nigerian Institute of Management, led by its president and chairman of council, Dr Nelson Uwaga, visited the company in Lagos.

    Boasting of it as having the largest sugar refinery of 1.5million tonnes and an expected 150 hectares of sugar plantation, Ahmed said Dangote hopes to have the largest rice mill in the country in the next three-five years.

    Dangote Group, which has presence in nine countries, is the largest dealers of cement in Africa, with a growing presence in other sectors such as steel, oil and gas, sugar and salt industries.

    Uwaga lauded the group for creating value and opportunities for Nigerians and also becoming an icon in the corporate world.

  • Dangote, Elumelu, Ovia lose billions

    Dangote, Elumelu, Ovia lose billions

    •Naira devaluation, oil price crash take toll

    Nigeria’s super rich have lost billions of naira in their networth following the devaluation of the naira and the crash in oil price.

    Central Bank of Nigeria (CBN) Governor Godwin Emefiele, last month, announced a nearly 10 per cent devaluation of the Naira, after admitting that a plunge in world oil prices and dwindling dollar reserves were making it difficult to defend the value of the currency.

    The Naira is now trading at N187 to $1, compared to N165 last month. In dollar terms, the devaluation has knocked more than $40 billion off the value of Nigeria’s economy.

    According to a report in Forbes, Alhaji Aliko Dangote, Africa’s richest man, is the biggest loser among Nigeria’s richest people as the Naira’s slump and falling stock prices have erased more than $7.8 billion of his fortune. In February, FORBES locked him in with a $25bilion worth in its annual ranking of the World’s Billionaires. But as of market close on Tuesday, he’s worth $17.2 billion. More than half of the drop in his fortune has happened since early November. As of Nov. 7, Dangote was worth $21.6 billion, $4.4 billion more than now.

    Here’s why: The last few weeks have been a bit of a disaster for many companies listed on the Nigerian Stock Exchange. Several blue-chip stocks such as Dangote Cement, Zenith Bank, Transcorp and United Bank of Africa among several others have hit one-year-lows as a result of the fall in oil prices, a general uncertainty regarding the 2015 general elections, Central Bank regulatory headwinds, and weak earnings from large cap companies. These have all contributed toward putting naira-denominated assets including equities at risk

    “This is whipping up negative market sentiments as foreign and institutional investors such as pension funds who hold equity stakes in companies (due to their large cap and liquidity status) have mostly fled their positions,” says Ugodre Obi-Chukwu, a leading financial analyst and publisher of Nairametrics, a website that provides analysis and opinion about Nigerian stocks, investing, personal finance and the economy.

    Dangote Cement, Africa’s largest manufacturer of cement has shed close to 40% of its market value between the beginning of November and now. The company’s stock, which was trading at N215 ($1.15) at the beginning of November, is now valued at N165 (88 Cents) as at Monday.

    At the beginning of November, Dangote’s stake in the cement manufacturer was valued at more than $18 billion. It is now valued at $13.2 billion. Dangote has also lost more than $230 million in paper value within the same period on his stakes in publicly-traded Dangote Sugar, Dangote Flour, and National Salt Company of Nigeria. Between November (when FORBES published the list of Africa’s 50 Richest) and today, Dangote, has lost more than $4 billion in his net worth.

    After Dangote, the second biggest loser among Nigeria’s ultra-rich isTony Elumelu, the Chairman of Heirs Holdings, an investment company. Heirs Holdings, which is wholly-owned by Elumelu, is the controlling shareholder in Transcorp, a publicly-listed conglomerate with interests in power production, hotels and agriculture. Transcorp’s current market capitalization is now $700 million, down from $1.4 billion at the beginning of November. Heirs Holdings has lost an estimated $345 million in paper value on Transcorp, and its stake in the company as at Monday is now worth roughly $400 million, down from $700 million.

    Elumelu’s investments in other listed companies like UBA, Africa Prudential PLC and UBA Capital have shed a little over $27 million in value.

    Other big losers include Nigerian multi-millionaire banker Jim Ovia, a co-founder of Zenith Bank. The value of his stake in the financial services provider is $240 million as of late Monday, down from more than $350 million last month. He owns a 9% stake in the bank.

  • Dangote Cement for Cameroun

    Dangote Cement for Cameroun

    DANGOTE Cement bags, the 3x Premium, will be introduced into the Camerounian market in January, a statement from the company said yesterday.

    The General Manager of the Dangote Cement Plant, Baba Abdullahi, an engineer, said this while conducting Cameroonian reporters round the 1.5 million metric tonnes per annum capacity facility in Douala.

    He added that the plant was already being test run, explaining that full production would start next month.

    He said Dangote Cement would be deploying its “state of the art machinery and latest technology from the point of production to delivery to customers.”

    He added that the company was known for employing the best practices in its operation.

    According to him, the entry of Dangote cement in the Cameroonian market would contribute to the growth of the country’s economy.

    According to him, “the management of Dangote cement is upbeat about the prospect of stimulating the construction and housing sectors of the economy of Cameroun.”

    He stated that the country’s cement customers were anxious to buy the cement because the Dangote 3X 42.5 grade would be the first in the market that is produced locally.

  • SON okays Dangote’s products

    SON okays Dangote’s products

    THE Standard Organisation of Nigeria (SON) has approved the quality, environmental and safety measures put in place by the Dangote Cement and some business units under the Dangote Group.

    It has, therefore, certified business units for quality management, occupational, health and safety as well as environmental management system.

    A statement by the Group Managing Director of Dangote Cement Plc, Devakumar Edwin, indicated that Dangote Cement plants in Gboko, Ibese and Obajana have all been certified for ISO 9001, Quality management system, ISO 14001, Environmental Management system and BS OHSAS 18001, Occupational Health and Safety Management system.

    Edwin gave the names of other units, which have been certified by SON as Agrosacks Nigeria Limited, Dangote Sugar Refinery Plc, Dangote Salt (NASCON), Dangote Flour Mills Plc and Dangote Pasta Limited.

    The Dangote Cement boss explained that the Dangote Group subsidiaries have always been compliant to all regulations as a law abiding corporate citizen and take the issue of environment very seriously.

  • Dangote Sugar: Panel to assist land owners

    Taraba State Acting Governor Abubakar Sani Danladi has set up a six-man committee to investigate the compensation of land owners of the Dangote Sugar industry in Lau Local Government Area.

    The committee is chaired by former Deputy Governor Uba Maigari with Yakubu Bulus as its Secretary.

    Other members are: Danladi Baido, Joshua Ivo, Ishaya Abdul, Abubakar Bala and Bulus Audu.

    A statement yesterday in Jalingo, the state capital, by the Chief Press Secretary to the State Government, Hassan Mijinyawa, said the committee was set up following persistent complaints from land owners.

    Our reporter learnt that the land owners petitioned government when a previous committee, led by former Deputy Governor Abubakar Dauda Armaya’au, refused to pay what was regarded as appropriate compensation, even as the sugar firm had reportedly paid the compensation.

    Danladi said the new committee would determine and consider the complaints to the government over the discrepancy in the compensation.

    The committee is to also determine if funds released to compensate the owners of the land acquired by Dangote Group of Companies were “actually and correctly” prepaid to genuine land owners.

    The committee has two weeks to submit its findings and recommendations to the state government.

    Danladi added that the committee would also advise the government on other matters concerning Dangote Group’s acquisition of the land in Lau.

    Besides their petitions, the land owners had protested on the streets of Jalingo the way the Armaya’u-led committee frustrated them from getting their compensation.

  • $9b Dangote refinery hikes property prices in Lekki

    $9b Dangote refinery hikes property prices in Lekki

    THE  Lagos chamber of Commerce and Industry (LCCI) has  thrown its weight behind the fiscal and monetary policy responses by the government to keep the economy afloat in the face of falling oil prices.

    In a statement, LCCI Director-General Mr. Muda Yusuf said the fiscal and monetary policy responses by the government and the Central Bank of Nigeria (CBN) were inevitable, stressing that some of the policies were long overdue.

    He said: “The economic situation has again underlined the critical imperative of economic diversification. An economy that is diversified has a better capacity to withstand shocks. At every turn in our advocacies, we have canvassed the need for the creation of an enabling environment to enhance the productivity of enterprises and consequently ensure economic diversification.”

    On the measures, he said they included fiscal and monetary policies taken to stabilise the macro-economic conditions to minimise dislocations.

    These, he said, include reduction in international travels and trainings by Federal Government officials, tax on luxury items, and review of oil price benchmark to $73 from $78 in the 2015 Medium Term Expenditure Framework (MTEF).

    Others are renewed commitment to fiscal prudence, upward revision of revenue target for Federal Inland Revenue Service (FIRS) and the Nigeria Customs Service.

    Yusuf said on the monetary policy front, some items, such as electronics, finished goods, information technology, generators, telecommunications equipment, and invisible transactions, were excluded from the official foreign exchange window.

    The LCCI said the implication is that transactions involving the enumerated items would be funded at a higher exchange rate from either the interbank foreign exchange market or parallel market.

    He recommended that several budget heads needed to be further scrutinised to ensure cost effectiveness and better transparency in the management of public finance. According to him, they include the: consolidated revenue fund charges, service wide votes, presidential amnesty programmes, capital supplementation and debt services.

    Others are refreshments and meals, foodstuffs and catering, honorarium and sitting allowance, welfare packages, repairs and maintenance. All these budget heads have substantial amounts voted for them in the budget annually. Some of the provisions do not reflect the desired prudence in the management of public funds. Huge savings will be made if a proper scrutiny of the budget heads is made, he warned.

    Yusuf regretted that the biggest platform for corruption in the economy today is the management of subsidy on petroleum products. The pressure it exerts on the government treasury is enormous, he warned.

    He called for an accelerated reform of the oil and gas sector and the passage of the Petroleum Industry Bill (PIB), which he said will mitigate the challenge the subsidy management poses for government finance.

    Furthermore, he cautioned that the tax yield in the economy is not commensurate to the magnitude of activities taking place in the economy.

    The property market in the
    Lekki area of Lagos, Nigeria’s
    commercial nerve centre, is  experiencing an unprecedented boom, with rising demand pushing up property prices, The Nation has learnt.

    The development is said to be in anticipation of the coming on stream of the proposed $9 billion Dangote Refinery and Petrochemical Company in the area, as well as other petrochemical companies scrambling to buy land in the area.

    Since Dangote Group awarded the project management consultancy, engineering and construction management of its 400,000 barrels per day (bpd) (20 million tonnes) oil refinery and 600,000 tonnes polypropylene plant, the Lekki corridor of Lagos and its environs have not been the same again. The area, which used to have a narrow single-lane road and notorious traffic congestion, is fast becoming a global business haven with a new dual carriageway with three lanes on both sides.

    On account of these, the multi-billion naira investment and the economic activities it is expected to spur in and around the Lekki Free Trade Zone (LFTZ) was one of the issues that came up at this year’sTokyo Annual Conference of International Bar Association in Tokyo, Japan in October. The plant, which would be one of the biggest in Africa after completion, generated so much interest among foreign investors at the conference. The consensus was that it would be a big investor attraction to Nigeria and Africa.

    This is why property prices in that area have soared by over 100 per cent from what it was late last year. Experts in real estate attribute this to the influx of people to Lekki. This made the value of property in the area very high, as prospective property owners scramble for residential apartments and office spaces.

  • Surveyors seek sustenance of Dangote’s price

    Surveyors seek sustenance of Dangote’s price

    The Nigerian Institute of Quantity Surveyors (NIQS) has urged stakeholders in the building and construction industry to help  sustain the slash in the price of cement as announced by the management of Dangote Cement Plc.

    It said the company should not be left alone in the affordable cement campaign.

    The leadership of the Lagos State chapter of the institute said in Lagos that what the management of  Dangote Cement did was unprecedented in the history of pricing and adjustment “and that everybody should ensure that the price slash succeeds.”

    The Chairman, Mr. Olayemi Shonubi, who led other executive members to visit the Group Managing Director of Dangote Cement, Mr. Devakumar Edwin, said the institute was concerned about the hitherto skyrocketing price of cement and other building materials and  heaved a sigh of relief when Dangote Cement came up with the new price regime.

    He regretted that some stakeholders, including those who should be at the vanguard of price cut, doubted the ability to sustain the slash, saying it would be a matter of time before the price increased again.