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Osinbajo Inaugurates N107bn BUA’s Sokoto Cement Plant

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foreign exchange market
  • Osinbajo Inaugurates N107bn BUA’s Sokoto Cement Plant

Vice-President Yemi Osinbajo on Tuesday in Sokoto State inaugurated the BUA cement and coal power plants built at the cost of $350m (N107bn).

The cement plant situated in Kalambina, Sokoto State, has an installed capacity of 1.5 million metric tonnes per annum, while the coal power plant is a 32-megawatts multi-fuel captive plant capable of generating more power than what the entire Sokoto State is currently generates, according to the Chairman, BUA Group, Abdulsamad Rabiu.

In his remarks, the Vice President, Osinbajo stated that Nigeria, which currently produces over 40 million metric tonnes of cement per annum, was the largest producer of the commodity in Africa and that the BUA cement plant would further consolidate the Federal Government’s efforts to be self-sufficient in cement production and a net exporter of the product.

He noted that the investment by the firm in the plant and others like it were a clear demonstration that the country had vast capacity and potential for profitable investments.

The vice-president stated that the next three years would be critical in Nigeria’s infrastructure, adding that for the country to be where it ought to be in terms of development, construction was crucial.

According to him, with a housing deficit of 17 million and the fact that concrete roads have been discovered to be better than asphalted roads in terms of durability, it shows that cement will feature prominently in Nigeria’s infrastructural development efforts.

He noted, however, that with the volume of demand and work that would go to the sector, it would be possible to construct roads and build houses at cheaper rates than being done currently.

“I believe that between Rabiu and his brother, Dangote, they can find a way to bring down the price of cement,” Osinbajo added.

Also speaking, the Sokoto State Governor, Aminu Tambuwal, said the BUA cement plant was one of the efforts of the state government in partnership with the private sector to harness the vast and unexploited natural resources in the state.

He stated that the state had been encouraging more private sector investments through incentives, tax breaks, waivers, access to finance and others.

According to him, the focus of the state has recently shifted to the Small and Medium Enterprises sector, while also formulating a strategic investment plan to support and guide businesses that produce raw materials for the productive sector.

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Businessinsider, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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Economy

Nigeria’s Plan to Review Oil Companies’ Gas Flaring Strategies

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Oil

Nigeria is ramping up its efforts to address environmental concerns in the oil and gas sector with a comprehensive plan to review gas flaring strategies of international and indigenous oil companies.

The Minister of State for Environment, Dr. Iziaq Salako, announced this initiative during a national stakeholders engagement meeting on methane mitigation and reduction held in Abuja, Investors King reports.

Gas flaring, a common practice in the oil industry, releases methane—a potent greenhouse gas—into the atmosphere, contributing to climate change and posing health risks to communities near oil facilities.

Nigeria aims to end routine gas flaring by 2030, aligning with global climate goals and commitments.

Dr. Salako explained the importance of reducing methane emissions and highlighted the detrimental effects on public health, food security, and economic development.

He outlined practical steps being taken to tackle methane emissions, including the development of methane guidelines and the engagement of government institutions.

The ministry, through the National Oil Spill Detection and Response Agency, will conduct periodic reviews of oil companies’ plans to ensure compliance with the gas flaring deadline.

Deloitte management consultants will assist in conducting comprehensive forensic audits to scrutinize the legitimacy of forward-contracted transactions.

President Bola Tinubu’s commitment to environmental sustainability underscores the government’s dedication to addressing climate change and fulfilling its multilateral environmental agreements.

The engagement event served as a platform for stakeholders to discuss methane mitigation strategies, existing policies, and implementation challenges.

Collaboration and dialogue among diverse sectors are crucial in charting a unified course towards sustainable methane reduction in Nigeria’s oil and gas industry.

As the country navigates its environmental agenda, ensuring accountability and transparency in gas flaring practices remains paramount for achieving a greener and healthier future.

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Economy

Interest Rate Jumps to 24.75% as CBN Takes Aggressive Stance Against Inflation

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Dr. Olayemi Michael Cardoso

The Central Bank of Nigeria (CBN) has announced a significant increase in the monetary policy rate, known as the interest rate, to 24.75%.

This move disclosed by CBN Governor Olayemi Cardoso during the 294th Meeting of the Monetary Policy Committee press briefing in Abuja, represents a bold step by the apex bank to address the mounting inflationary pressures faced by the country.

With inflation soaring to 31.70% in February, the CBN aims to moderate this upward trend by tightening its monetary policy stance.

This decision follows the previous hike in the interest rate to 22.75% in February, showcasing the CBN’s commitment to combatting inflationary forces.

While the bank opted to maintain the Cash Reserve Ratio at 45%, the significant increase in the interest rate underscores the urgency of the situation and the need for decisive action.

Governor Cardoso emphasized that these measures are essential to stabilize the economy and safeguard the purchasing power of the Nigerian currency.

The 294th MPC marks the second meeting under Governor Cardoso’s leadership, indicating a proactive approach to addressing economic challenges.

The next MPC meeting is scheduled for May 20th and 21st, 2024, highlighting the ongoing commitment of the CBN to navigate Nigeria’s economic landscape amidst inflationary pressures.

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Economy

Nigeria Braces for 10th Consecutive Interest Rate Hike by Central Bank

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Central Bank of Nigeria (CBN)

As Nigeria grapples with persistently high inflation, the Central Bank of Nigeria (CBN) is gearing up to implement its tenth consecutive interest rate hike in a bid to curb the soaring prices and attract investment.

Analysts surveyed by Bloomberg are anticipating a substantial 125 basis-point increase in the key rate to 24%, marking one of the most significant adjustments in the current tightening cycle.

The decision, expected to be announced by Governor Olayemi Cardoso on Tuesday at 2 p.m. in Abuja, comes on the heels of inflation accelerating to 31.7% in February, far surpassing the central bank’s target range of 9%.

This surge has been primarily attributed to the sharp depreciation of the naira, prompting authorities to devalue the currency twice since June to narrow the gap with the unofficial market rate and encourage investor confidence.

While these measures have seen the naira strengthen in recent days and bolstered investment inflows, including a fourfold increase in overseas remittances and significant foreign investor portfolio asset purchases, there remains a palpable need for more decisive action.

Giulia Pellegrini, a senior portfolio manager at Allianz Global Investors, emphasized the necessity for the CBN to intensify its tightening efforts to regain foreign investors’ confidence in the local bond market.

While acknowledging the positive strides made by the central bank, Pellegrini stressed the importance of a more assertive approach to prevent the diversion of investor attention to other frontier markets.

As the Nigerian economy navigates through these challenging times, the impending interest rate hike signals the CBN’s determination to address inflation head-on and foster a more stable economic environment.

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