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Dangote Cement Eyes $700m Forex Earnings From Terminals

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  • Dangote Cement Eyes $700m Forex Earnings From Terminals

The cement terminals being built by Dangote Cement Plc in Ibeshe, Lagos State and Onne, Rivers State, will fetch the company $700 million when completed, it was learnt yesterday.

Going by the schedule, the terminals will be completed before the end of this year, the company said at its 10th Annual General Meeting (AGM) in Lagos.

The plants are being built to shore up the company’s market share, its Chairman Alhaji Aliko Dangote told shareholders at the AGM, adding that the project, which was delayed by equipment suppliers, will be ready before the end of the year.

Dangote said the terminals would rake in the millions of dollars in foreign exchange through cement exportation to sub-Saharan Africa.

According to him, the company will be opening export facilities within the terminals to export clinker and cement to its facilities in Cameroun and other African countries.

Dangote said: “Later in 2019, we will open export facilities in Lagos and Port Harcourt that will enable us export clinker, initially to our grinding facility in Cameroun and then to new grinding plans we are building in West Africa.

“Not only will these generate useful foreign currency for Dangote Cement to support other expansion projects outside of Nigeria, they will also help to increase the output of our Nigerian plants.”

The company will be exporting cements through the terminals to Ghana, Cameroun, Sierra Leone and Congo, among others.

Dangote said that the terminals would make Nigeria the biggest exporter of cement in sub-Saharan Africa.

According to him, the company’s capacity will increase on the completion of the terminals.

Besides, the project will help to improve job creation and increase Nigeria’s prosperity.

On dividends, he said that the dividend payment represented 52.4 per cent increase over the N10.50 per share paid in 2017.

Specifically, the company declared N272.6 billion, which translated to N16 per ordinary 50k share, approved by shareholders.

The dividend was higher by 52.4 per cent against the N178.9 billion or N10.50 per share paid by the company for the 2017 financial year.

Independent Shareholders Association of Nigeria (ISAN) founder Sunny Nwosu lauded the company for the impressive dividend it declared last year.

Nwosu said the company, made of quality board members, had good corporate governance record in all its operational areas, even outside the country.

Dr Farouk Umar, Chairman of Association for Advancement of Rights of Nigerian Shareholders, praised the company for the impressive report in 2018 in spite of the economic situation.

Umar said that the shareholders were happy with the N16 dividend declared in 2018, adding that the trend should be sustained.

He asked why the Benue Cement Plant stopped production.

The Benue plant would resume production as soon as the coal plant being built is completed.

Another shareholder, Nona Awoh, urged the company to strengthen its capacity utilisation to increase its market share.

Awoh advised that the company should map out new strategies to reduce its unclaimed dividend stock.

The company, during the financial year ended December 31, 2018, reported ¦ 901.2 billion revenue against the ¦ 805.5 billion achieved in in 2017, an increase of 11.9 per cent.

The profit before tax stood at ¦ 300.8 billion, an increase of a 3.9 per cent over the ¦ 289.59 billion recorded in 2017.

The profit for the year stood at N390.33 billion from the N204.25 billion achieved in 2017.

Another shareholder Mrs. Bisi Bakere lamented what she called gender imbalance in the board and asked for adjustment to admit more women.

Mrs. Cherie Blair, wife of the former British Prime Minister, who stated that the success of any organisation depends on the ability of its Board of Directors to set a good example and demonstrate a clear commitment to doing things right and doing the right things.

He encouraged Dangote not to close down the non-performing plants in some countries and canvassed a Nigerian as a Managing Director of the Cement Company. According to him Nigerians have learnt enough from expatriates and are ready to take over.

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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