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NBC, Coca-Cola Present Start-up Equipment to Vulnerable Nigerians

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In furtherance of its efforts to support communities and governments to cushion the impact of the COVID-19 pandemic in the country, The Coca-Cola System in Nigeria, comprising Nigerian Bottling Company Limited (NBC) and Coca-Cola Nigeria Ltd, has donated business start-up equipment to women and youths in communities in Aba, Abia State and Port Harcourt in Rivers under its post-COVID-19 community interventions.

The beneficiaries, who had earlier been trained by a local NGO, Genius Hub, received shoe-making and tailoring equipment on behalf of the Coca-Cola System to start their businesses and begin their journey to self-reliance.

The Coca-Cola System, which has always supported its stakeholders and communities with positive and impactful interventions, implemented the program with funds from The Coca-Cola Foundation.

The beneficiaries, who beamed with smiles while receiving the equipment, expressed gratitude to the Coca-Cola System, noting that the gesture would improve their economic status.

“I am very grateful for this sewing machine and other fashion designing equipment given to me, and I want to thank you, Nigerian Bottling Company and Coca-Cola Nigeria. You have not only given us fish, but you have also taught us how to fish,” one of the beneficiaries, Mrs. Gift Ejike, said.

Another beneficiary and a community leader, Elder Azubuike Erondu, also commended the NBC and Coca-Cola Nigeria for the intervention, describing it as a more sustainable approach to helping communities overcome the economic disruptions caused by the pandemic.

“The NBC and Coca-Cola Nigeria have done excellently well for us, and we are grateful. This is a timely intervention, especially for people who are still recovering from the effects of the pandemic. The pandemic affected businesses and brought untold hardship on many people. But through this intervention, we have gained valuable skills and received start-up equipment and support to launch our businesses and create value,” Erondu said.

According to the Director of Public Affairs and Communications, NBC, Ekuma Eze, the intervention, tagged ‘Making a Difference’, ‘was a continuation of the Coca-Cola System’s support for Nigerians adversely affected by the COVID-19 pandemic.

“We are witnesses to the disruptions caused by the COVID-19 pandemic, especially to families, small businesses, artisans and other vulnerable Nigerians. As a responsible organisation committed to the growth of our communities, we believe this initiative will support and empower vulnerable people in our communities to regain their feet post-pandemic.”

“We also recognise the critical role and contributions of the micro, small, and medium enterprises (MSMEs) sector to the Nigerian economy. Therefore, this intervention will lift the beneficiaries out of their present predicament and also presents an important avenue to stimulate the growth of this important sector.”

Ekuma, who assured that the equipment grant was a precursor to many more rewarding programs to support host communities, commended its implementing partner, Genius Hub, for the diligent execution of the program and reiterated the System’s commitment to welfare of Nigerians.

Also speaking, Public Affairs, Communications and Sustainability Director, Coca-Cola Nigeria Limited, Nwamaka Onyemelukwe, said: “Without a doubt, entrepreneurship remains a veritable tool to promote economic empowerment and build a sustainable economy for the benefit of us all. This is why, for the past 70 years, we have remained committed to continually unlock new vistas of opportunities for our people and communities to thrive. “

The ‘Making a Difference’ program is the latest COVID-19 and post-pandemic intervention by the Coca-Cola System in Nigeria. The company launched a food relief intervention to support vulnerable households in the wake of the pandemic. The System also donated over 13 million centiliters of its beverages, including Eva premium table water and soft drinks, to provide hydration and nourishment for patients and healthcare workers at Isolation and Treatment Centres across different states in the country.

Besides, both companies also supported the Federal Ministry of Health and NCDC to develop risk communication materials to complement the government’s public education and mobilisation initiatives in the fight against the Coronavirus outbreak.

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NNPC E&P Ltd and NOSL Begin Oil Production at OML 13, Akwa Ibom State

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NNPC Exploration and Production Limited (NNPC E&P Ltd) and Natural Oilfield Services Limited (NOSL) have commenced oil production at Oil Mining Lease 13 (OML 13) located in Akwa Ibom State.

The announcement came through a statement signed by Olufemi Soneye, the spokesperson of NNPC E&P Ltd, highlighting the collaborative effort between the flagship upstream subsidiary of the Nigerian National Petroleum Corporation (NNPC) and NOSL, a subsidiary of Sterling Oil Exploration & Energy Production Company Limited.

The production, which officially began on May 6, 2024, saw an initial output of 6,000 barrels of oil. The partners aim to ramp up production to 40,000 barrels per day by May 27, 2024, reflecting their commitment to enhancing Nigeria’s crude oil production capacity.

Soneye said the first oil flow from OML 13 shows the dedication of NNPC E&P Ltd and NOSL to drive growth and development in Nigeria’s oil and gas sector.

He stated, “The achievement does not only signify the culmination of rigorous planning and execution by the teams involved but also represents a new era of economic empowerment and development opportunities for the host communities.”

For Nigeria, the commencement of oil production at OML 13 holds immense significance. It contributes to the country’s efforts to increase its oil production capacity, essential for meeting domestic energy needs and driving economic growth.

Moreover, Soneye reiterated NNPC E&P Ltd and NOSL’s commitment to operating in a safe, environmentally responsible, and community-beneficial manner.

This partnership underscores their dedication to sustainable practices and fostering positive impacts in the local communities where they operate.

The commencement of oil production at OML 13 marks a pivotal moment in Nigeria’s oil and gas industry, signifying not only increased production capacity but also the collaborative efforts between industry players to drive growth and development in the nation’s vital energy sector.

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Manufacturers Grapple with Losses Amid Economic Strain

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In the first three months of 2024, some of Nigeria’s major manufacturers found themselves navigating treacherous waters as financial losses mounted amidst economic turbulence.

According to data compiled by BusinessDay, rising interest rates and a further devaluation of the naira contributed to the woes of these industrial giants.

The latest financial reports from 13 listed consumer goods firms paint a grim picture, with seven of them collectively recording a staggering loss of N388.6 billion in Q1.

Names such as International Breweries Plc, Cadbury Nigeria Plc, and Nigerian Breweries Plc were among those that bore the brunt of the downturn.

On the flip side, a few companies managed to buck the trend. BUA Foods Plc, Unilever Nigeria Plc, and Dangote Cement Plc reported a combined profit of N171.9 billion, showcasing resilience amidst the challenging economic landscape.

While the overall revenue of these manufacturers saw an impressive 79 percent increase to N2.27 trillion, it was overshadowed by soaring financing costs.

In Q1 alone, finance costs skyrocketed to N616.5 billion from N65.8 billion in the same period in 2023.

Analysts attribute these mounting losses to the confluence of factors, including the devaluation of the naira and escalating interest rates. With the naira experiencing nearly a 30 percent devaluation this year alone, coupled with a 40 percent devaluation last June, companies faced intensified pressure on their margins.

Moreover, the Central Bank of Nigeria’s decision to raise the monetary policy rate to 24.75 percent in March further exacerbated the situation.

This marked the second consecutive increase, following a 400 basis points hike in February, aimed at curbing inflation.

The adverse effects of these economic headwinds were felt across various sectors. Nestle reported the highest finance cost of N218.8 billion, followed closely by Dangote Cement and Dangote Sugar Refinery.

Commenting on the challenging business environment, Uaboi Agbebaku, the company secretary at Nigerian Breweries, highlighted how increased interest rates and FX volatility led to a staggering 391 percent rise in net losses compared to the same quarter in 2023.

Looking ahead, manufacturers remain cautiously optimistic but vigilant. Thabo Mabe, managing director at NASCON, emphasized the importance of navigating the turbulent waters while executing robust strategies to ensure sustained growth.

As Nigeria grapples with economic uncertainties, the resilience of its manufacturing sector will play a pivotal role in shaping the nation’s economic trajectory.

However, concerted efforts from both the public and private sectors will be needed to steer the industry towards stability and growth.

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Shell Nigeria’s $1.09 Billion Tax and Royalty Payments Power Economic Growth

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Shell Petroleum Development Company of Nigeria Limited (SPDC) and Shell Nigeria Exploration and Production Company Limited (SNEPCo) paid a sum of $1.09 billion in corporate taxes and royalties to the Nigerian government in 2023.

This figure, revealed in the recently published 2023 Shell Briefing Notes, shows Shell’s commitment to supporting Nigeria’s development through substantial financial contributions.

According to the briefing notes, SPDC disbursed $442 million in taxes and royalties, while SNEPCo remitted $649 million.

Despite a decrease from the $1.36 billion paid in 2022, these payments highlight Shell’s continued role as a key contributor to Nigeria’s revenue generation efforts.

Osagie Okunbor, Managing Director and Country Chair of Shell Companies in Nigeria said “Shell companies in Nigeria will continue to contribute to the country’s economic growth through the revenue we generate and the employment opportunities we create by supporting the development of local businesses.”

The briefing notes also provided insights into Shell’s ongoing operations and initiatives in Nigeria. The company’s investments span more than six decades, with a focus on powering progress and promoting socio-economic development.

Through collaborations with stakeholders and communities, Shell aims to provide cost-effective and cleaner energy solutions while fostering sustainable growth.

“It is important to emphasize that Shell is not leaving Nigeria and will remain a major partner of the country’s energy sector through its deep-water and integrated gas businesses,” Okunbor reiterated, underscoring Shell’s long-term commitment to Nigeria’s energy landscape.

Shell’s contributions extend beyond financial payments, encompassing initiatives aimed at enhancing local capacity building, fostering job creation, and promoting social development. By prioritizing safe operations and environmental stewardship, Shell seeks to align its business objectives with Nigeria’s sustainable development goals.

As Nigeria navigates economic challenges and seeks avenues for growth, Shell’s substantial tax and royalty payments serve as a testament to the company’s enduring partnership with the Nigerian government and its commitment to driving economic progress.

Through continued collaboration and investment, Shell endeavors to play a pivotal role in Nigeria’s journey towards prosperity and sustainability.

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