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Reactions as Dangote Asks Northern Govs to Combat Extreme Poverty

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  • Reactions as Dangote Asks Northern Govs to Combat Extreme Poverty

Africa’s richest man and President of the Dangote Group, Aliko Dangote, on Wednesday expressed concern about the high rate of poverty in the North, saying northern governors should wake up to address the problem.

Dangote stated this when he delivered a keynote address at the 4th edition of Kaduna Economic and Investment summit (KADInvest 4.0).

He noted that 60 per cent of northerners lived in extreme poverty, saying it was unacceptable for a people with vast arable land for agriculture to live in poverty.

The billionaire urged the governors to wake up and pull the region out of its current economic woes.

He said, “The North must focus on harnessing its massive agricultural potential in terms of both production and processing. No region with high such agricultural potential should be this poor.

“We have what it takes to turn around our fortunes and I pray all the 19 governors of the northern states will wake up and follow the footsteps of the Kaduna State Government.

“Given the vast arable land and conducive condition, I think in the next 10 years, agriculture can generate more revenue and prosperity than oil that we have now if we have the right commitment.”

He also told governments in the region to identify their areas of comparative advantage, adding that the provision of information and data on what was available in various states was equally necessary.

According to him, efforts should be made to encourage local investors because “they will attract foreign investors.”

Dangote said, “While the overall social economic consideration in the country is a cause for concern, the regional indicators are very alarming. In the north-western and north-eastern parts of Nigeria, more than 60 per cent of the population lives in extreme poverty.

“It is instructive to know that the 19 northern states, which account for over 54 per cent of the country’s population and 70 per cent of its landmass, collectively generated only 21 per cent of the total sub-national internally generated revenue in 2017.

“Northern Nigeria will continue to fall behind if the respective state governments do not move to close the development gap and that is why we are always saying that the biggest challenge we have and what we are always praying for is to have 10 governors like Mallam Nasir El-Rufai in the North.”

Yakasai, Balarabe Musa back Dangote

Meanwhile, elder statesman, Alhaji Tanko Yakasai, and a former governor of old Kaduna State, Alhaji Balarabe Musa, supported Dangote’s position.

In separate telephone interviews with one of our correspondents, in Abuja, on Wednesday, both men expressed displeasure with the way northern governors were administering their states.

Yakasai said, “We still have arable land and a growing population of young, energetic but jobless people roaming the streets but our governors are not providing the right kind of leadership to turn this population into a useful force in our farms.

“What is required of the Federal Government are the right policies as well as provision of power and other infrastructure because the governors own all the land in Nigeria and land is key to agriculture. Dangote is absolutely right.”

Also, Musa said, “I agree with Aliko Dangote, our governors are part and parcel of our problem especially in the area of corruption. These governors are engaged in massive stealing, corruption and waste of public resources.

“The North certainly has no business with poverty but we are certainly not making progress with the kind of leadership we have both at the federal level and in the various northern states today.”

At the event, President Muhammadu Buhari said the Federal Government would accord priority to economic recovery.

Buhari noted that the implementation of the economic recovery and growth plan would no doubt create sustainable jobs and prosperity for Nigerians.

Earlier in his remarks, El-Rufai assured the people of the state of his administration’s willingness to implement the suggestions made at the last edition of the KADinvest, especially the state development plan, the tax consolidation and the development of a digital land registry.

El-Rufai also announced that the state had attracted over $500m investments in four years in spite of the challenges confronting it.

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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Dangote Cement Refutes Claim it Sells Cement High in Nigeria

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Dangote Cement Plc has refuted the widely propagated story that the company sells cement at a significantly higher price in Nigeria compared to other African nations like Zambia and Ghana.

The management of the leading manufacturing company said it sells a bag at N2,450 in Obajana and Gboko, and N2,510 in Ibese, the amounts stated include VAT.

Devakumar Edwin, Dangote’s Group Executive Director, Strategy, Portfolio Development & Capital Projects, who spoke with journalists in Lagos, said the company sells for an equivalent of $5.1, including VAT in Nigeria, it sells for $7.2 in Ghana and $5.95 in Zambia ex-factory, inclusive of all taxes.

Devakumar, therefore, described the allegation as false, misleading, and unfounded, and challenged the media to conduct independent investigation into the price of cement in some other African countries, including Cameroun, Ghana, Sierra Leone, Zambia.

To ensure that we meet local demand, we had to suspend exports from our recently commissioned export terminals, thereby foregoing dollar earnings.

“We also had to reactivate our 4.5m ton capacity Gboko Plant which was closed 4 years ago and run it at a higher cost all in a bid to guarantee that we meet demand and keep the price of Cement within control in the country.”

“Over the past 15 months, our production costs have gone up significantly. About 50% of our costs are linked to USD so the cost of critical components like: gas, gypsum, bags, and spare parts; has increased significantly due to devaluation of the Naira and VAT increase.

“Despite this, DCP has not increased ex-factory prices since December 2019 till date while prices of most other building materials have gone up significantly.

“We have only adjusted our transport rates to account for higher costs of diesel, spare parts, tyres, and truck replacement. Still, we charge our customers only N300 – 350 per bag for deliveries within a 1,200km radius.

“We have been responsible enough not to even attempt to cash in on the recent rise in demand to increase prices so far,” Devakumar said.

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Samsung, Vision Care Begin Fresh CSR Activities, Earmark 12,000 Masks for Nigeria

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Samsung Heavy Industries Nigeria Limited (SHIN) and Vision Care, an international relief organization dedicated to the prevention of blindness, have launched fresh Corporate Social Responsibility (CSR) initiative to help Nigeria mitigate the impact of COVID-19 pandemic.

Vision Care is a member of the International Agency for the Prevention of Blindness (IAPB), and participant of ‘VISION 2020’, a global initiative of the IAPB and the World Health Organisation (WHO).

Vision Care has since conducted more than 25 Vision Eye Camps yearly and has grown into an international non-profit organisation serving 38 countries throughout Asia, Africa and Central-South America.

Since 2015, SHIN has worked with Vision Care in the yearly Eye Camp as part of its Corporate Social Responsibility (CSR) to provide free cataract surgeries to Nigerians who cannot afford the payment. SHIN has been sponsoring the eye surgeries of Nigerians on a yearly basis.

In 2019, SHIN sponsored the eye surgeries of at least 115 Nigerian patients and 224 outward patients as part of its CSR in Nigeria.

Since it started the programme, SHIN has sponsored the eye surgeries of 572 Nigerian patients, 1,593 outward patients and has also donated glasses to 99 patients.

Due to outbreak of the COVID-19 Pandemic, the yearly Eye Camp for 2021 had been called off to adhere to Federal Government’s measures in response to the virus.

Consequently, SHIN and Vision Care came up with a fresh CSR initiative this year to donate 496 bags of rice (25kg) and 12,000 reusable face masks to three states in the country to fulfill their commitment of contributing to the society.

The items will be delivered later this month.

The three states that will benefit from the donation are Lagos, Kano and Bayelsa states.

Out of the 496 bags of rice, and 12,000 facemasks, Lagos will receive 96 bags of rice and 200 masks.

SHIN also stated that Kano State will receive 200 bags of rice and 5,000 masks, while Bayelsa State will get 200 bags and 5,000 masks.

“This is an additional CSR activity from SHI in addition to SHIN’s donation of 5,000 COVID-19 test kits from Korea. The washable masks that the head office has purchased from Korea are certified to retain its effectiveness against COVID-19 transmission for up to 50 washes,” SHIN said in a statement.

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Senate Summons NICON, AIICO, Others Over N17.4bn Pension Remittances

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The Senate Public Accounts Committee has summoned the management of the NICON Insurance Plc, AIICO Insurance and other insurance companies over their alleged failure to remit N17.4bn pension fund to the Pension Transitional Arrangement Directorate.

The Senate hinged the summon on the 2016 report of the Auditor-General for the Federation which unraveled the alleged non-remittance of N17.4bn pension fund to PTAD.

Appearing before the panel on Monday, the Executive Secretary of PTAD, Dr Chioma Ejikeme, informed the lawmakers that PTAD took over the assets and liabilities of the defunct pension offices without a formal handing over.

She said, “On taking over, the directorate wrote all underwriters to make returns and remit whatever amount that was in their custody into a CBN dedicated account.

“Some of the underwriters responded to the request while some did not.

“The bank certificate of balances, accounting statements, three years financial statements and policy files requested by the federal auditor were not handed over to PTAD at the time of consolidation.

“It is worthy to note that we discovered that N17.4bn which comprised of cash, securities and properties from the nine insurance underwriters was unremitted as a result of the letter PTAD sent to them.

“These figures represent the claims by the underwriters with regards to their indebtedness.

“In order to ascertain the true position of legacy funds in custody of underwriters, the directorate appointed a consultant in 2018 who carried out forensic audit of nine out the 12 insurance underwriters and produced a final report on the recovery of the legacy funds and assets for PTAD.”

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