The Nation Newspaper

Tag: expansion

  • ‘Dangote’s global expansion conforms to ECOWAS, WTO pacts’

    ‘Dangote’s global expansion conforms to ECOWAS, WTO pacts’

    The massive business expansion of the Dangote Group across Africa and around the world is in conformity to the extant agreements among Economic Community of West African States (ECOWAS) member-states and members of the World Trade Organisation (WTO).

    This was the submission of an expert in international trade and immediate past Director-General of the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), Dr. John Isemede.

    He spoke to reporters in Abuja, last weekend.

    Dr Isemede, who is a consultant with the United Nations Industrial Development Organisation (UNIDO), expressed satisfaction that the Dangote Group has been complying with relevant laws of doing business in Africa.

    He said the ECOWAS Trade Liberalisation Scheme (ETLS) was drawn by member- states to eliminate barriers to businesses in the region.

    The NACCIMA chief, who had worked in Ghana, said the country could not meet 30 per cent of its cement need until Dangote established a cement factory there.

    He said: “Not only that, the company has been creating jobs, doing lots of charity works through its Dangote Foundation in Ghana and elsewhere, as well as contributing to the growth of African economy.”

    Noting that there are many Ghanaian products in the Nigerian market, Isemede, who is also a member of the Federation of West African Chambers of Commerce and Industry, added that the two countries have a very cordial political and economic relationship.

    The ETLS of which African countries are signatories is aimed at gradually creating a customs union among member states through the establishment of a free trade zone and the adoption of a common external tariff.

    Isemede urged Nigerians to form business association in any country they find themselves, stating that this will help protect them against undue attacks from citizens of host countries. He said globalisation is reducing boarders to mere bus stops, urging Africans to work together in line with the collective agreement signed by ECOWAS and WTO.

    Also speaking, the Chief Technical Advisor to the United Nations Industrial Development Organisation (UNIDO), Mr. Charles Malata, said in the past there were no boundaries in Africa, and that the only limitation was the quality of products.

    He said UNIDO is working on the National Quality Infrastructure Project for Nigeria to promote quality businesses and break barriers to businesses on the continent.

    Mr. Malata said quality and standard should be the baseline for moving products in Africa, as it would help in building trust. The UNIDO Technical Advisor added that no West African country should cry foul of domination by products from another West African country. Rather, they should strive to improve their own standards and invest in commodities they have comparative advantage.

    “As a country, one has to take a strategic decision by investing in where it has comparative advantage,” he said, calling on investors from Africa to strive to build trust in their businesses. He also stated that all barriers to regional and international trade must be removed for the continent to join the rest of the world in development and globalisation.

  • Transcorp Hotels floats N10b bond for expansion

    Transcorp Hotels floats N10b bond for expansion

    Transcorp Hotels Plc has launched a N10 billion bond issue to provide complementary finance for the upgrade of the company’s flagship Hotel, Transcorp Hilton Abuja, and construction of a multipurpose banquet centre.

    The N10 billion Series 1 Senior Seven-Year 16.0 per cent fixed rate unsecured bonds 2022 is being issued under the N30 billion medium term bond programme of the company. The bond issue is fully underwritten by FSDH Merchant Bank Limited and United Capital Plc.

    The new bonds will carry a amortised gross coupon of 16.0 per cent per annum for a period of seven years. The redemption on maturity, expected to be 2022, will be at 100 per cent of the nominal amount of the bonds. The bonds are available in denominations of N1,000, and will be listed on the main market of the Nigerian Stock Exchange and also the FMDQ OTC platform for enhanced tradability.

    FSDH Merchant Bank Plc is the lead issuing house, while United Capital Plc and Stanbic IBTC Capital Limited are joint issuing houses. FSDH Merchant Bank and United Capital Plc are the joint underwriters to the bond issue.

    The launching of the bond issue followed approvals from relevant regulators including Securities and Exchange Commission (SEC) and National Pension Commission (Pencom), which has issued a certificate of “PENCOM Compliance” to enable participation by Pension Fund Administrators (PFAs) in the bond.

    Managing Director, Transcorp Hotels, Valentine Ozigbo, said the net proceeds from the bond issue would be used as part of the financing for the upgrade of the Transcorp Hilton Abuja and the development of a 5,000-seater multipurpose Banquet centre.

    “The availability of funds enables us to enhance our financial flexibility by diversifying our sources of funding while significantly extending the maturity of the group’s funding and ensuring optimal capital mix. We are delighted by the investor reception for Transcorp Hotels in the bond markets,” Ozigbo said.

    Transcorp Hotels, the hospitality subsidiary of Transnational Corporation of Nigeria Plc, owns and operates Transcorp Hilton Abuja and also holds 100 per cent interest in Transcorp Hotels Calabar Limited, which owns and operates the Transcorp Hotel in Calabar

     

  • FHA’s Lugbe Estate to benefit from Abuja expansion

    FHA’s Lugbe Estate to benefit from Abuja expansion

    The Assistant General Manager, Town Planning, Federal Housing Authority (FHA), Hajiya Aminat Salawu, has said the Authority would benefit from the plan of the Federal Capital Development Authority (FCDA) to expand the Abuja City near the Nnamdi Azikwe International Airport.

    The plan, the owners said, would integrate Lugbe and its surrounding communities into the Phase Five of the Federal Capital city, near the FHA Estate, Lugbe, thereby making it a major beneficiary.

    “When the plan is implemented, Lugbe Estate will be better structured. It will have better facilities. Lugbe Estate will go through urban renewal and upgrading. It will become more viable, and as the plan unfolds, it would further translate to improved lives for residents of the FHA’s  sprawling estate laid out on over 385-hectare in the area,” Salawu explained.

    The proposed district centre for Phase Five is in the estate as well as an oriented road and a major collector road.

    But the development would not be without pains as it would lead to major physical, social and economic dislocations for residents. Salawu said her unit was super-imposing the structural plan of the new phase on FHA Estate’s layout and its satellite image. This steps, she further reiterated, were aimed at helping the authority to determine the number of its houses and plots that would fall on the right of the way of the facilities.

    According to her, 500 of such housing units and plots of land had been identified, whose owners would have to be relocated.

    While the FHA would provide a social safety net for those to be affected by the new land, the FCTA will bear the cost of relocation.

    The FCTA is conducting a census of the development in the affected area to effect the required adjustment to the structural plan for the new Phase Five.

  • AMAA launches expansion with Los Angeles show

    AMAA launches expansion with Los Angeles show

    As the popular Africa Movie Academy Awards (AMAA) glides towards its 11th edition, organisers have unveiled a series of business and social initiatives which would not only to advance African filmmakers, but evolve a strategic synergy of Black Creatives all over the world.

    The new objectives which underscore why the Nomination Announcement and Gala was taken to Hollywood, Los Angeles, home to leading studios in world cinema, is also expected to evolve a new sense of co-productions and other forms of partnerships, through interactions between African filmmakers and their Hollywood counterparts.

    Announcing the new initiative in Los Angeles on Saturday evening, DayoOgunyemi, CEO of AMAA, hinted at a ‘ground-breaking partnership between AMAA and Facebook in Africa,’ saying that AMAA intends to showcase the profile of willing actors,  producers and directors to specific countries and relevant establishments with capacity to monetize talents through co-productions.

    “Every 5 ‘likes’ on your Facebook page should translate into people buying your video. They should want to know more about you, having excited them with your profile.  This is part of the revolution of the social media, and Facebook is changing how people watch your works,” said Ogunyemi.

    “The dynamics of being on radio for example, is limited. But online radio has a greater possibility of reaching black people across the world.”

    Founder of AMAA, Peace Anyiam-Osigwe mesmerized the gathering with her eloquent speech about the vision of a united Africa, sharing the thoughts of icons like Mariah Makeba and other visionary African leaders on the need to achieve one Africa.

    “I don’t want to be apologetic about who I am as a Creative. I don’t want you to describe me as a black filmmaker. We have to rewrite our history by ourselves. I don’t want to know if you are Black American, I don’t want to know if you are African. American, I don’t want to know if you are African Caribbean, I just want you to realise one thing, check your DNA, you are black and we are just one,” she said, spurring the crowd into more applause.

     

    AMAA 2015 nominations: it’s October 1 against iNumber Number!

    There was great excitement as the jury for the 2015 AMAAs, led by Keith Shiri, took their turns to reveal the nominated films in the 26 categories of the Awards, billed to take place in Johannesburg, South Africa, on September 29.

    Although every film nominated is a winner in principle, films such as iNumber Number from South Africa, October 1 from Nigeria and Timbuktu from Mauritania showed strength of dominance as films with most nominations in different categories.

    Chairman of AMAA College of Screeners, ShaibuHusseini, reiterated that a total of 842 films were entered for the award, before reading out the first set of nominations, which included a new category; the Michael Anyiam-Osigwe Best Film by African Living Abroad, in honour of Michael Anyiam-Osigwe, a patron of the African Film Academy who passed on last year.

    According to Shaibu, about 842 filmmakers clicked on the AMAA websites, wanting to be part of the Awards, showing the expansion of the scheme within the spate of 10 years.

     

    Excitement as filmmakers storm Beverly Hills in party bus

    The evening of glitz and glamour had musician J. Jackson and Grammy-winning American R&B songstress, Chrisette Michele treating guests to great music. And for the visiting African filmmakers, a trip to the venue in a posh party bus, is a memory that will linger for a long while.

    Among the celebrities that rocked the mobile party were OC Ukeje, OmotolaJalade-Ekeinde, ChiomaChukwuka-Akpotha, Patience Ozokwor (Mama G), FaithiaBalogun, Doris Simeon, Lydia Forson from Ghana, and Kim Eagle and Terry Pheto  from South Africa.

    Others are filmmakers such as Kingsley Ogoro, KunleAfolayan, EmemIsong. ChidiNwokeabia, Paul Okoli and Tony Anih.

  • Toyota breaks ground on centre expansion

    Toyota breaks ground on centre expansion

    A groundbreaking to expand the Toyota Technical Centre near Ann Arbor is further evidence that Michigan is one of two North American pillars for the Japanese automaker in North America.

    Toyota is investing $126 million to add two more buildings to its complex in York Township. One will be a prototype facility for vehicle development; the second is a supplier centre.

    The powertrain development facility on the Ann Arbor Township campus is also being expanded as the automaker develops more of the engines and automatic transmissions here for vehicles that are designed and manufactured in North America.

    The construction is to be completed in late 2016.

    More than 300 jobs are relocating to Michigan, including employees from Erlanger, Ky, who worked in purchasing and supplier engineering as well as some vehicle and powertrain development staff from Calif. Consolidating people from all functions in one campus will make quick decision-making easier.

    The expansion is part of Toyota’s unification of its North American operations with much of the research and development centred in Michigan and the move of the corporate headquarters to Plano, Texas, from Torrance, Calif. Toyota will no longer have a third hub in Kentucky.

    The Toyota Technical Centre opened in 2008 on land acquired from the state of Michigan. There are about 1,200 employees now.

    Toyota has 14 plants in North America, including 10 in the U.S., and employs nearly 40,000 of which 37,000 are n the U.S.

  • CCNN begins $300m cement plant expansion

    Cement Company of Northern Nigeria (CCNN) Plc has launched a $300 million expansion project to modernise and increase the capacity of its 30-year old cement plant.

    The expansion project, estimated at about N48 billion, would increase the company’s installed capacity by 200 per cent to 1.5 million metric tonnes. The take-off fund for the expansion was provided by BUA International Limited, which holds 50.72 per cent equity stake in CCNN through its wholly-owned subsidiary-Damnaz Cement Company.

    The expansion is part of the ongoing modernisation and cost optimisation programme aimed at reducing average cost and enhancing productive capacity with a view to ensuring that CCNN remained competitive in the cement industry.

    There are indications that the company may subsequently float supplementary equity issue to refinance its capital structure and provide long-term funds necessary for such long-term expansion project.

    President, BUA International Limited and chairman, Cement Company of Northern Nigeria (CCNN), Alhaji Abdulsamad Rabiu, confirmed the commencement of the expansion project, said the core investor sourced the funds for the expansion for CCNN.

    According to him, after considering all the options, the core investors decided to jumpstart the expansion plan given its strategic importance to competitiveness of the cement company. It should be recalled that CCNN had earlier secured shareholders’ approval to raise new funds of about N45 billion but it was unable to float equity issue due to the lingering investors’ apathy at the primary issue market.

    Rabiu said expansion was the highpoint of the competitive strategy of the cement company, noting that in spite of the high quality of its cement, bigger cement companies pose threats to CCNN’s market share.

    In a chat with The Nation, managing director, Cement Company of Northern Nigeria (CCNN), Mr. Alf Karlsen, said the increase in installed capacity would enable the company to maintain its current market share and expand into new markets.

    He noted that CCNN is currently the major supplier of cement in the Sokoto, Kebbi and Zamfara axis adding that the high quality of its cement brand has enabled the company to maintain the lead within its niche market.

    He assured shareholders that CCNN would remain competitive and make good returns to investors as it implements various initiatives to boost capacity and reduce cost.

    CCNN last month distributed N880 million as cash dividends to shareholders, implying a dividend per share of 70 kobo. The dividend payment came on the heels of sustained improvements in the company’s fundamentals.

    Audited and emerging earnings reports of CCNN had indicated significant improvements in actual and underlying returns of the cement-manufacturing company. Audited report and accounts of CCNN for the year ended December 31, 2013 had shown that a more efficient cost management and appreciable growth in sales underpinned substantial growth in profit and returns to shareholders. Gross and pre-tax profit margins improved from 28.1 per cent and 10.9 per cent in 2012 to 31.8 per cent and 12.5 per cent respectively in 2013.

    While sales had grown by 4.4 per cent, declines in cost of sales and finance expenses as well as containment of the operating expenses impacted positively on the bottom-line. Besides, the report also showed considerable improvements in financing structure and liquidity, providing a positive balance sheet support that enabled top-line performance to trickle down into substantial earnings to shareholders. The company halved its gearing ratio and further increased equity funding just as liquidity improved to a new high.

    The profit outlook of the company improved appreciably during the year with both actual and underlying profitability ratios showing corresponding performance. Underlying profitability indices showed a generally positive outlook. Gross profit margin improved from 28.1 per cent in 2012 to 31.8 per cent in 2013. Average pre-tax profit per every unit of sales increased from about 10.9 per cent to 12.5 per cent. Return on total assets improved from 11.6 per cent to 13.1 per cent. Return on equity was steady at 15.7 per cent.

    The underlying performance reflected the improvements in the operations and productivity of the company as well as increase in its cost management. Total sales reached a new high at N15.8 billion in 2013 compared with N15 billion in 2012. Cost of sales meanwhile slipped marginally from N10.88 billion to N10.77 billion. Gross profit thus rose by 18 per cent from N4.24 billion to N5.02 billion. Operating expense was curtailed at N3.64 billion in 2013 as against N3.40 billion in 2012. While non-core business income dropped by 22 per cent from N958 million to N743 million, the reduction in interest expenses counterbalanced the negative effect. Finance expenses dropped to N147 million as against N152.

    With all these, profit before tax rose by 19.2 per cent to N1.97 billion in 2013 as against N1.65 billion in 2012. Profit after tax also grew by 19.1 per cent to N1.42 billion compared with N1.20 billion in the previous year. Basic earnings per share thus improved from 95 kobo to N1.13.

    Also, emerging earnings reports for the current business year have shown a stronger upward growth trajectory. Interim report and accounts of CCNN for the six-month period ended June 30, 2014 showed that sales rose by seven per cent in first half 2014 to N9.39 billion as against N8.81 billion recorded in corresponding period of 2013. Profit before tax almost doubled from N1.22 billion to N2.34 billion. Profit after tax showed similar performance, rising from N832.1 million in first half 2013 to N1.59 billion in first half 2014.

  • FG earmarks N752bn for expansion of power transmission for five years

    FG earmarks N752bn for expansion of power transmission for five years

    Vice President Namadi Sambo recently said the Federal Government had earmarked N752 billion for expansion of power transmission in the next five years.

    Sambo said this at the inauguration of the National Council on Power in Abuja.

    Sambo, represented by the Minister of Power, Prof Chinedu Nebo, said government would continue to expand the national transmission grid to all parts of the country.

    He said this would be done through additional resources leveraged from Development Finance Institutions (DFIs).

    The VP said government was also committed to adequate provisions within the national annual budget in the years ahead.

    He added that government also intended that more innovative approaches would be adopted to fund the Transmission Company of Nigeria (TCN) by opening private sector investment window in future.

    He said some institutions had been established to earn investors’ confidence by further enhancing the environment for doing business in the sector.

    Sambo said for the sector to grow in the direction the government intended it to be, metering gap amongst consumers must be bridged to shore up market revenue.

    He said it was for this reason that government was sourcing for various fundings.

    Sambo said this included opening an initial N33 billion soft term credit line to enable the distribution companies to acquire smart meters.

    He stated that the Ministry of Power and the Ministry of Mines and Solid Minerals Development had been directed to ensure the take-off of the first large scale coal-to- power project.

    Sambo called on the council to come up with clear roles and mandates for stakeholders in the sector, as well as set targets and strategies toward achieving the power reform objectives.

    The Minister of Power, who is also the Chairman of the council, said it would facilitate the progress needed to adequately advance the sector.

    Nebo said the council would ensure the transformation of power to launch the country into an era of massive industrialisation and double digit GDP growth rate.

     

  • Norwegian airline prepares for global expansion

    Norwegian airline prepares for global expansion

    A Norwegian direct airline service to Los Angeles has revived hopes for a budget long-haul market.

    Budget airline Norwegian has started the new twice weekly service out of London’s Gatwick Airport.

    It will fly twice weekly from London to Fort Lauderdale and thrice weekly to New York.

    Norwegian made its first foray into long-haul last year with routes from Scandinavia to the United States and Thailand.

    Norwegian says that some low season flights can be had for as low as £179 ($272) one-way to New York, however only a limited of seats are available at this price.

    Norwegian’s website was offering flights in the height of the holiday season in July and August from £329 to £647.

    But the service, run from a new company called Norwegian Air International (NAI) in the Republic of Ireland, has been heavily criticised by US airlines and labour unions.

    They say NAI is using Ireland because of its more flexible labour laws.

    The Air Line Pilots Association (ALPA) said the creation of Norwegian Air International “was clearly designed to attempt to dodge laws and regulations, starting a race to the bottom on labour and working conditions”.

    Among their complaints is NAI’s use of pilots and crews from Asia to drive down costs.

    Norwegian says that it always respects the regulations of the markets in which it operates and says it is hiring 300 American cabin crew and New York-based pilots for its 787 Dreamliner operation.

    It said in a statement that NAI was based in Ireland to “access to future traffic rights to and from the EU (Norway is not a member of the EU)”, and because being registered in Ireland gave it access to more flexible rules on financing.

    Norwegian has planned its long-haul business round fuel-efficient aircraft. It has a fleet of 787 Dreamliners with four more due for delivery before the end of the year.

    If the Norwegian long-haul budget model works it could have far reaching consequences for the development of travel and how airports are used.

    The new generation of fuel efficient aircraft could mean more passengers flying “point-to-point” rather than via large hub airports such as Heathrow, Schiphol or Charles de Gaulle.

    There is an argument that these new routes are so significant, they could change the course of the runway debate in Britain

  • On Lagos-Ikorodu road expansion

    SIR: Government exists everywhere to take care of the needs of its people. This accounts for the reason why the Lagos State Government acceded to the request of the people for the expansion of the Mile 12 to Ikorodu Road. I have lived abroad for several years before deciding to relocate back home to contribute to the development of my fatherland. I was very happy when I heard that the road would be expanded from a two-lane dual carriageway to a three-lane dual carriageway. However, to borrow words from our own Nobel laureate, Professor Wole Soyinka, words soon ’turned to ashes in our mouth’ when we learnt that the additional lanes to be added on both sides were actually to extend the Bus Rapid Transit system to Ikorodu.

    The plan, no doubt is desirable but can we be so sure that the four lanes would still be enough for other traffic after taking two lanes for the BRT? Government needs to think through it very well.

    Point number two is the issue of the construction methodology. The contractor handling the project sometimes becomes insensate to the plight of users of that road during construction period. Traffic would sometimes snarl five or more kilometres. Some of the construction being done in the daytime could indeed be done at night to minimise traffic issues encountered on the road particularly during peak hours of going and returning from work.

    All said, I think one should give kudos to the Lagos State government under Governor Babatunde Raji Fashola for embarking on this gigantic project. It will sure change the face of Ikorodu when it is completed. Today, the experience might be harrowing but at the end of the day, road users will have cause to smile. There is therefore the need for everyone to support the government to achieve a prompt delivery of the project.

    • Lola Magnus,

    Ajegunle, Ikorodu, Lagos

     

  • Standard Bank pushes for African expansion

    Standard Bank has said it will press ahead with plans to open another 30 branches in sub-Saharan Africa this year, aiming to cash in on booming loan and deposit growth even as the costs of such investment hit its bottom line.

    Africa’s biggest bank by assets, Standard Bank is 20 per cent owned by Industrial and Commercial Bank of China. It blamed a below-forecast nine per cent increase in first-half profit on costs of investment.

    “It really has been growing rapidly and we’ve continued to invest, which is part of the reason for the cost growth that you’ve seen,” Chief Executive Jacko Maree told Reuters Insider, referring to its 16 operations across the continent.

    “But if you look at the profitability in Africa you saw the profits growing by some 80 per cent, just looking at the on-the-ground banks on the continent, which is a very big jump.”

    He pledged to do all he could to control spending after a 17 per cent rise in the six months to the end of June but said costs would continue to climb as the bank seeks to cash in on an estimated 30-40 per cent rise in loans and deposits across the continent.