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Dangote’s $2.5bn Fertiliser Plant Expected to Generate Over $400m Annual Foreign Exchange

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Aliko Dangote - Investors King

Days of persistent forex scarcity may be coming to an end in Nigeria as Dangote’s $2.5 billion fertiliser plant is projected to realise more than $400 million in foreign exchange every year.

The plant scheduled for launching on Tuesday, 22nd March 2022, occupies 500 hectares of land in Lekki Free Trade Zone, Lagos Nigeria.

According to the Dangote Group, President Muhammadu Buhari will visit Lagos for the inauguration of the plant.

Buhari will be joined by the Lagos Governor, Babajide Sanwo-Olu as well as the Minister of Agriculture and Rural Development, Dr. Mahmouds Abubakar, the Minister of Industry, Trade and Investment, Adeniyi Adebayo and Governor, Central Bank of Nigeria (CBN), Godwin Emefiele, for the inauguration ceremony of what has been described as Africa’s largest granulated urea fertiliser complex.

Although arguably rich in agriculture and blessed with fertile lands, Nigeria’s dependency on fertiliser is growing by the day and this is also important for the mass production of certain food products across the country. The Dangote fertiliser plant is also coming up at a time when stakeholders have expressed the need to create an even better Nigeria where food security is assured.

According to Dangote, Nigeria is estimated to need about five to seven million metric tonnes of fertilisers per annum. However, the current level of fertiliser utilisation in Nigeria is 1.5 million metric tonnes. The company also went ahead to disclose that it has been positioned to produce over three million metric tonnes per annum of urea fertiliser in phase one of operations. Dangote also revealed that the company will work with agriculture stakeholders and development partners with state governments across Nigeria, as well as across Africa – provided that they are looking for a sustainable approach to improve soil and farm yields.

Investors King also gathered that plans are already on the way for expanding production to provide more than the plant’s three million metric tonnes per annum capacity and to produce multiple grades of fertilisers to meet soil, crop and climate-specific requirement for the African continent.

Dangote is one of the few Nigerian-owned enterprises that has made strong commitments to providing sustainable solutions across a number of sectors and the diversification of the business to the agriculture sector in Nigeria is also one that has been welcomed across boards. Over the years, Dangote has created sustainable environmental management practices, and products through a proactive approach that addresses the challenges of climate change and global warming.

While Dangote is also making a commitment to the sustainability of the environment, the establishment of this fertiliser plant will also lead to employment opportunities for Nigeria and reduce the country’s importation of fertilisers.

Also, the plant is expected to generate over $400 million annual foreign exchange from export to other African countries.

During the visit by the president, the unveiling of the plaque, a facility tour of the fertiliser plant and an inspection tour of the 650,000 oil refinery and 900,000 polypropylene plant as well as the Lekki Deep Sea Port is also expected to be undertaken.

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Guinness Nigeria Postpones Spirits Importation Exit, Extends Deal with Diageo

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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.

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

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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.

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NNPC Gears Up for Public Listing, Embraces Full Commercialization

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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.

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