Connect with us

Company News

Dangote’s $500m Refinery in Ethiopia at Risk of Attack by Rebels

Published

on

A $500m cement refinery belonging to Dangote in Ethiopia is at risk of being a casualty in the ongoing war between Tigray rebels and allies vs the Ethiopian government and allies.

Ethiopian Prime Minister Abiy Ahmed now sits at the head of a civil war that has lasted for months in Ethiopia, a year after being awarded the Nobel Peace Prize. This civil war has even been referred to by some as bearing the marks of genocide. The country had been struggling with huge political, economic and ethnic challenges before a feud between Abiy and the former ruling party, the Tigray People’s Liberation Front (TPLF) escalated matters.

Before Abiy came into power, the TPLF ruled Ethiopia strongly. The party oversaw a period of economic growth and stability, but at the cost of basic civil rights. This authoritarian rule sparked an uproar that eventually saw Abiy’s predecessor resign. Abiy was brought in by the ruling class in 2018 to bring change without changing the political order. However, Abiy rearranged the ruling coalition which the TPLF had established, ostracizing the TPLF. Abiy’s drive for a pan-Ethiopian political party sparked fears that the country’s Federal system was under threat. Tigray leaders withdrew to the North of the country, where they operated their own regional government.

In September 2020, tensions rose as the Tigrayans went against Abiy to hold regional parliamentary elections which he delayed due to the ongoing coronavirus pandemic. Abiy regarded the elections as illegal and cut off any funding to the TPLF leadership, causing situations to escalate between regional and federal governments.

In November, Abiy accused the TPLF of attacking a federal army base and stealing weapons before ordering a military assault, sending troops from Eritrea and the neighbouring region of Amhara. Since then, both parties have been at each other’s necks, with pure acts of violence being committed at will. A year on, this war has led to the deaths of thousands, the displacement of over 2 million, fueled famine and allowed other atrocities.

The Dangote refinery is the largest in Ethiopia, and is located in the Orioma regional state, less than 90km from Addis Ababa. The refinery was commissioned in 2015, and has a production capacity of 5,000 tons per day as well as 2.5m metric tons per annum.

A report by MoneyCentral states that the rebels have captured cities around the capital, and have now begun to advance towards the capital. As the rebel groups advance of the capital, it is increasingly likely that any establishment that is ‘helpful’ to the federal government – or even the country’s economy – will be attacked to make a statement that they are truly against the government.

Continue Reading
Comments

Company News

Guinness Nigeria Postpones Spirits Importation Exit, Extends Deal with Diageo

Published

on

Guinness - Investors King

Guinness Nigeria Plc has announced a delay in its plan to halt the importation of spirits as it extended its agreement with multinational alcoholic beverage company Diageo until 2025.

The decision, communicated through a corporate notice filed with the Nigerian Exchange Limited on Tuesday, cited a longer-than-expected transition period for separating its business from Diageo’s.

Initially slated for discontinuation in April 2024, the importation of premium spirits like Johnnie Walker, Singleton, Baileys, and others under the 2016 sale and distribution agreement with Diageo will now continue for an additional year.

The extension comes as the process of business separation between Guinness Nigeria, a subsidiary of Diageo, and Diageo itself faces unexpected delays.

In October, Guinness Nigeria had announced plans to cease importing spirits from Diageo, a move aimed at reducing its foreign exchange requirements.

However, the separation process has encountered unforeseen hurdles, necessitating the extension of the importation agreement.

The notice, signed by the company’s Legal Director/Company Secretary, Abidemi Ademola, highlighted the ongoing efforts by Guinness Nigeria and Diageo to implement the separation, originally scheduled for completion by April 2024.

The extension underscores the complexity of disentangling the businesses and ensuring a smooth transition.

Guinness Nigeria reaffirmed its commitment to the long-term growth strategy, aligning with Diageo’s decision to establish a new, wholly-owned spirits-focused business.

Despite the delay, both companies remain dedicated to managing the importation and distribution of international premium spirits in West and Central Africa, with Nigeria as a key hub.

The postponement comes amid challenges faced by Guinness Nigeria, including significant exchange rate losses, which amounted to N49 billion in the 2023 half-year operations.

Despite these setbacks, the company remains optimistic about its future prospects in the Nigerian market.

Continue Reading

Company News

Apple’s Market Value Plummets Amid Regulatory Scrutiny on Both Sides of Atlantic

Published

on

inside apple company

Apple Inc. finds itself at the center of regulatory storms on both sides of the Atlantic, leading to a significant dip in its market value.

The tech giant is facing intense scrutiny from regulators with allegations of antitrust violations looming large.

In the United States, the Department of Justice, along with 16 state attorneys general, has filed a lawsuit against Apple, accusing the company of breaching antitrust laws.

This legal action has sent shockwaves through the investment community, resulting in a 4.1% drop in Apple’s shares on Thursday alone.

This decline wiped out approximately $113 billion in market value, increasing its year-to-date losses to 11%.

Once hailed as the world’s most valuable firm, Apple’s shares have underperformed major indices like the Nasdaq 100 and the S&P 500 in 2024.

Across the pond, European regulators are also eyeing Apple’s practices closely. The company faces potential probes into its compliance with the region’s Digital Markets Act.

This legislation empowers authorities to levy hefty fines, up to 10% of a company’s total annual worldwide revenue, for violations.

With investigations looming, Apple’s future in the European market appears uncertain.

Despite Apple’s staunch defense against the allegations, investors remain jittery about the implications of regulatory actions.

The company’s legal battles have underscored broader concerns about its dominance in the digital marketplace and the impact on competition.

As the regulatory saga unfolds, Apple must navigate turbulent waters, balancing legal challenges with its commitment to innovation and market leadership.

Continue Reading

Company News

NNPC Gears Up for Public Listing, Embraces Full Commercialization

Published

on

NNPC - Investors King

The Nigerian National Petroleum Company Limited (NNPC) is poised for a transformation as it sets its sights on a public listing.

The announcement came from Mele Kyari, the Group Chief Executive Officer of NNPC, during his address at the ongoing 2024 CERAWEEK in Houston, United States.

Kyari affirmed NNPC’s commitment to aligning with the provisions of the Petroleum Industry Act (PIA), which mandates the company to become a quoted entity.

This move, he emphasized, is a pivotal step towards realizing the objectives outlined in the PIA, ensuring transparency, efficiency, and profitability in the Nigerian oil and gas sector.

In his remarks, Kyari highlighted the transformative journey NNPC has undergone, transitioning from a government-owned corporation to a commercially-oriented and profit-driven entity.

He emphasized that the company has evolved into a full limited liability company, capable of generating dividends for its shareholders while adhering to tax and royalty obligations.

Furthermore, Kyari underscored the strategic importance of NNPC to Nigeria’s resource management and economic development, emphasizing its pivotal role in the country’s energy sector.

The planned public listing of NNPC shares is anticipated to democratize ownership and enhance transparency within the company’s operations.

Kyari noted that the process is in line with the legal framework established by the PIA and is expected to commence within the stipulated timeline.

NNPC’s bold move towards commercialization signifies a paradigm shift in Nigeria’s oil and gas industry, promising increased accountability, efficiency, and value creation for stakeholders.

As the company embraces this new era, it aims to consolidate its position as a key player in the global energy landscape while driving sustainable growth and development domestically.

Continue Reading
Advertisement




Advertisement
Advertisement
Advertisement

Trending