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Inter-state Transporters Plan 70% Fare Hike

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Young Shall Grow

Private transport companies in the country plan to increase fares by as much as 70% to enable them stay in business.

The transporters stated this, recently, at a stakeholders’ meeting in Lagos that was organised by the Association of Private Transport Companies of Nigeria (APTCON). In a communique, they resolved that “As a means of survival, to increase transport fares by 70%, beginning end of third quarter 2016, if no immediate help or support comes from government and its agencies.”

They said their operational cost has increased considerably from increased cost of maintaining their fleet and poor state of roads in the country, among other challenges have greatly increased their cost of doing business, threatening their ability to stay afloat.

The transporter agreed, that “as a means of survival, to increase transport fares by 70%, beginning end of third quarter 2016, if no immediate help or support comes from government and its agencies”. Stakeholders at the meeting included the FRSC, LASTMA, NARTO, God Is Good Motors (GIGM), Chisco Transport, Libra Motors, Cross Country, Eagle Transport, GUO Transport, Ekeson, EFEX Executive, First Tarzan Motors and Ecobus. Others were Jetvan Automobiles, Toyota Nigeria ltd, Goddy Edosa Motors, Fairplus International, Greener Line, Harmony Transport, TRACAS, Okeyson Motors and Ohomba Line, as well as Access and Wema Banks, among others.

A communiqué released at the end of the APTCON stakeholders’ meeting noted that road transportation remains the most visible and effective means of moving people and goods within the Nigerian economy; that the road transport sector has, over the years, suffered severe neglect with poor attention paid by successive governments to development of appropriate infrastructure; that the absence of decent infrastructure has been a major setback for efficient delivery of service and value in the road transport sector; that, being in the throes of economic recession, road transport operators have seen their little margins completely wiped away by inflation, rising cost of funds, double taxation, unstable value of the Naira as well as unnecessary harassments and extortion by security operatives.

The stakeholders said that the prostrate state of the automotive industry has made importation of passenger buses not only prohibitive but unsustainable; that, in the face of poor Return-on-Investment (ROI), the road transport business is in danger of imminent collapse with attendant job losses and damaging impact on the economy.

They, therefore, resolved to alert government and its agencies on the continued relevance and strategic importance of the road transport sector to the overall well-being of the Nigerian economy; to fully mobilize its members to press for urgent rehabilitation of dilapidated infrastructure hindering efficient delivery of service and value to the Nigerian public; to seek Federal Government’s immediate intervention by way of a bailout to cushion the harsh business climate and return the industry to sustainability; and to seek import reliefs, where necessary, for its members as a short-term measure for fleet replenishment while the automotive industry receives government attention; to set up a committee for the harmonization of membership and to rally all operators for the execution of all defined tasks as may be resolved.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

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Aliko Dangote Remains Africa’s Richest Man With $12.1 Billion Net Worth -Forbes

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Aliko Dangote Remains Africa’s Richest Man With $12.1 Billion Net Worth -Forbes

Nigerian industrialist, Aliko Dangote, is Africa’s richest person for the tenth year in a row.

In the Forbes Africa latest billionaires list, Dangote’s total net worth stood at $12.1 billion, a $2 billion increment when compared to last year. Thanks to the 30 percent increase in the price of Dangote Cement share.

Nassef Sawiris of Egypt followed Dangote with $8.5 billion net worth with the majority of his investments coming from construction and other investments.

In third place was Nicky Oppenheimer of South Africa with an $8 billion total net worth.

Mike Adenuga and Abdulsamad Rabio, the two Nigerians, came fifth and sixth with $6.3 billion and $5.5 billion net worth, respectively.Forbes Africa's billionaires list

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Portland Paints, Chemical and Allied Products Plc Agreed to Merge

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Portland Paints

Portland Paints, Chemical and Allied Products Plc Agreed to Merge

Portland Paints and Products Nigeria Plc and Chemical and Allied Products Plc have agreed to merge, according to the latest statement from both companies.

In a statement released through the Nigerian Stock Exchange, the Board of Directors of CAP said we are “pleased to inform you that following discussions and negotiations, the Boards of CAP and Portland Paints have reached an agreement to undertake a merger between both entities (the “Merger” or the “Proposed Merger”).

Accordingly, we “hereby present to you the terms and benefits of the Proposed Merger for your consideration and seek your support and approval to effect the Proposed Merger.

“The Proposed Merger presents a compelling opportunity to create significant value for shareholders of CAP and achieve the company’s strategic growth objectives as a larger company with a broader product portfolio, more corporate owned brands and diversified revenues.

“The resultant entity is also expected to benefit from enhanced distribution capabilities in addition to economies of scale and operational efficiencies.”

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Tony Elumelu Acquires Shell, Total, ENI Stakes in OML 17

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Tony Elumelu Acquires Shell, Total, ENI Stakes in OML 17

Tony Elumelu owned Heir Holdings Limited and its related company Transnational Corporation of Nigeria Plc on Friday announced it has completed the purchase of 45 percent stake in Oil Mining Lease (OML 17) through TNOG Oil and Gas Limited.

The acquisition includes all assets of Shell Petroleum Development Company of Nigeria Limited (30 Percent), Total E&P Nigeria Ltd (10 percent) and ENI (five percent) — in the lease.

It was further stated that TNOG Oil and Gas Limited will also have the sole right to operate OML 17.

The field presently has a production capacity of 27,000 barrels per day. Also, there are estimated 2P reserves (proven and probable) of 1.2 billion barrels and an additional one billion barrels in possible reserves — all of oil equivalent.

A consortium of global and regional banks and investors provided a financing component of $1.1 billion for the largest oil and gas financing in Africa in over a decade.

In a statement released on Friday, Shell said the completion was after all the necessary approvals have were received from authorities.

“A total of $453m was paid at completion with the balance to be paid over an agreed period. SPDC will retain its interest in the Port Harcourt Industrial and Residential Areas, which fall within the lease area,” the SPDC said.

Speaking after the completion of the deal, Elumelu said “We have a very clear vision: creating Africa’s first integrated energy multinational, a global quality business, uniquely focused on Africa and Africa’s energy needs. The acquisition of such a high-quality asset, with significant potential for further growth, is a strong statement of our confidence in Nigeria, the Nigerian oil and gas sector and a tribute to the extremely high-quality management team that we have assembled.

“As a Nigerian, and more particularly an indigene of the Niger Delta region, I understand well our responsibilities that come with stewardship of the asset, our engagement with communities and the strategic importance of the oil and gas sector in Nigeria. We see significant benefits from integrating our production, with our ability to power Nigeria, through Transcorp, and deliver value across the energy value chain.

“I would like to thank Shell, Total and ENI, for the professionalism of the process, the Federal Government of Nigeria, the Ministry of Petroleum Resources, and the NNPC for the confidence they have placed in us.”

Tony Elumelu is the Chairman of Heirs Holdings Limited, Transcorp and United Bank for Africa Plc.

Also, read Transcorp Plc Acquires FGN’s 100% Equity in Afam Power for N105 Billion

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