Dangote Industries Limited has said its $2bn petrochemical plant located in Ibeju-Lekki, in Lagos is designed to produce 77 different high-performance grades of polypropylene in the country.
The company said in a statementDangote $2B Petrochemical Plant on Sunday that with a turnover of $1.2 billion, the plant, situated alongside the Dangote Refinery, had been strategically positioned to cater to the demands of the growing plastic processing downstream industries in Africa and other parts of the world.
The Group Executive Director, Strategy, Capital Projects and Portfolio Development Industries Limited, Devakumar Edwin, said the plant would drive investment in the downstream industry, generate huge value addition, create jobs, increase tax revenues, reduce foreign exchange outflow and increase the Gross Domestic Product of the country.
Edwin, while giving an update on the plant in Lagos, was quoted as saying the petrochemical plant would reduce the demand for foreign exchange from the nation’s treasury to import petrochemical by-products.
He added that the plant currently nearing completion will also embark on the production of polyethylene products in the nearest future.
“The Dangote Petrochemical plant being built alongside the refinery will primarily produce polypropylene products. We are thinking of adding polyethylene products at a later stage.
“We have 77 types of polypropylene, which can go for different usage that we can produce from our petrochemical plant. Currently, the plant is capable of producing about 900,000 tonnes of polypropylene per annum. Our petrochemical plant should be the biggest in Africa.” He said
Edwin said the plant will reduce the demand for foreign exchange from the nation’s treasury to import petrochemical by-products.
“Right now, raw materials from polypropylene are imported into the country even as there is no foreign exchange for manufacturers to import raw materials. The Dangote plant is going to take care of this challenge.
“When the raw materials are locally available, there will be many more people who will be willing to invest in the economy. So, it not just the savings of foreign exchange from petrochemical products’ importation, but the country’s downstream sector will also benefit hugely from the availability of raw materials in the country.” He added.
Flour Mills of Nigeria Repays N51.64 Billion Series 2 Commercial Paper
Flour Mills of Nigeria Plc (FMN) has successfully repaid its N51.64 billion Series 2 Commercial Paper as revealed in a statement issued by the company.
This follows the earlier repayment of its N13.33 billion Series 1 Commercial Paper in August 2023.
Both the Series 1 and Series 2 Commercial Papers, totaling N64.97 billion, were initially issued on February 22, 2023, under FMN’s N200 billion Commercial Paper Programme.
The Series 1, with a yield of 13.0%, raised N13.3 billion, while the Series 2, with a yield of 14.0%, raised N51.64 billion.
FMN had launched its N200 billion Commercial Paper Programme on February 10, 2023, reflecting the company’s strategic financial planning.
The Group Chief Finance Officer, Mr. Anders Kristiansson, expressed satisfaction with the timely and successful repayment of the Series 2 Commercial Paper.
He emphasized FMN’s commitment to financial prudence and acknowledged the confidence placed in the organization by the investing public.
Kristiansson expressed gratitude to stakeholders for their continuous support, reiterating FMN’s dedication to delivering sustainable value and upholding the highest standards of corporate governance.
In addition to the successful repayment, FMN tapped into the market for its Series 3 Commercial Paper in June 2023, with subscriptions from banks and Pension Fund Administrators, contributing 39.7% and 40.8%, respectively.
The transaction was managed by FBNQuest Merchant Bank Limited as the Lead Arranger, with ChapelHill Denham Advisory Limited, FCMB Capital Limited, and United Capital PLC serving as Joint Arrangers.
African Airlines Projected to Cut Losses to $400m in 2024, Says IATA
The International Air Transport Association (IATA) has forecasted a reduction in losses for Nigerian and other African airlines from $500 million in 2023 to $400 million in 2024.
The Switzerland-based IATA made this projection while presenting the global airline industry outlook in Geneva, Switzerland, on Wednesday.
IATA’s Director-General, Willie Walsh, shared the outlook, stating that global airlines are expected to generate approximately $964 billion in revenue in the coming year.
The report indicated that airline industry net profits are anticipated to reach $25.7 billion in 2024, reflecting a slight improvement over the projected $23.3 billion net profit for 2023.
Despite the challenges faced by the aviation industry in recent years, IATA sees the $25.7 billion net profit in 2024 as a testament to aviation’s resilience.
Walsh acknowledged the impressive speed of recovery but emphasized that the net profit margin of 2.7% remains below industry expectations.
IATA estimates that around 4.7 billion people will travel in 2024, surpassing the pre-pandemic level of 4.5 billion recorded in 2019.
However, Walsh highlighted ongoing challenges, including regulatory burdens, fragmentation, high infrastructure costs, and a supply chain populated with uncertainties.
He emphasized the need for the industry to build a resilient future, given its significant contribution to global GDP and livelihoods.
Fuel prices are expected to average $113.8 per barrel in 2024, accounting for 31% of all operating costs, totaling $281 billion.
Walsh concluded by expressing optimism about more normal growth patterns for both passenger and cargo in the post-pandemic era.
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