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Economy, Businesses Lost More Than N1trn to Flooding in Two Weeks

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Harvey

Flooding in parts of Nigeria has crippled many businesses which experts have put at a loss of about N1 trillion.

Investors King understands that the last two weeks have been a nightmare for many communities in Benue, Anambra, Niger, Nasarawa and other states in Nigeria that are worst hit by the flood.

Our correspondent learnt that the flood which took over the Lokoja-Abuja Federal Highway caused a stall in vehicular movement. Goods and materials coming from the South, particularly from the South West were stuck up along the highway. 

Petrol-loaded trucks coming from Lagos were also affected which caused a huge disruption in the supply chain to Abuja. Subsequently, many gas stations were shut down in Abuja while the few that dispense petrol witnessed long queues of customers.

The National Emergency Management Agency (NEMA), disclosed that many houses have been submerged and a large chunk of dry land was cut off due to the flooding. The agency also stated that more than 80 lives were lost while 600,000 persons were displaced. 

Similarly, Kogi State Governor, Yahaya Bello said the flood crisis in Kogi needs all the attention it can get. The governor disclosed that Kogi State’s worst-hit Ibaji district is “100 percent underwater” while calling for quick intervention.

Meanwhile, while reacting to the flood crises, a Wealth Management expert and CEO of SD & D Capital Management Limited, Mr Idakolo Gbolade said the Nigerian economy and businesses have lost over N1 Trillion in two weeks to this year’s flooding.

He said “The flooding has affected Nigeria’s economy and businesses greatly. Billions of businesses plying the Lokoja-Abuja road have been stranded for over 15 days now. 

For instance, tankers using Lokoja road to supply petrol to North Central and Abuja have been held up in Lokoja. This will no doubt affect businesses relying on fuel for energy”. 

In addition, the Director-General of the Nigerian Meteorological Agency, Prof. Mansur Matazu on Tuesday revealed that the North Central and Southern zones should expect more flooding. This could further worsen the already bad situations within the concerned regions. 

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Merger and Acquisition

Otedola Moves to Sell Part of Geregu Power Plc to FEDA

Afreximbank to acquire part of Geregu Power plant

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Geregu Power

Billionaire Femi Otedola-owned energy company, Geregu Power Plc is in talks with the Fund for Export Development in Africa (FEDA) for the acquisition of part of the energy company.

The company stated in a statement signed by Akinleye Olagbende, Company Secretary and made available on the Nigerian Exchange Limited (NGX).

Geregu Power hereby notifies “Nigerian Exchange Limited (the Exchange) and the investing public of its discussions with the Fund for Export Development in Africa (FEDA) for the acquisition of a portion of Geregu Power Plc shares. FEDA is the impact development arm of the Africa Export and Import Bank (Afreximbank),” the company stated.

According to the energy firm, talks are presently ongoing and “where these talks progress to a more advanced stage, the company will notify the Exchange and the investing public in line with the rules of the Exchange.”

In October, Geregu Power listed 2.5 billion shares at N100 a unit on the Main Board of the NGX. This puts the company’s market value at N250 billion and also in a better position it to raise capital to bid for Geregu II as it is presently doing.

Speaking on the listing, the Chairman, Board of Directors, Mr. Femi Otedola, CON, said “the listing of the company was the actualization of a vision to bring world-class standards in governance sustainability, and business processes to the Company and the Nigerian electricity sector.”

He added that “listing on the Main Board of the Exchange will ensure that the long-term growth of the company is assured and its benefits will be passed on to our esteemed shareholders”.

Otedola is the largest shareholder in FirstBank and also holds a 99% stake in Amperion Power, the owner of the Geregu Power Plant.

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Merger and Acquisition

Access Bank Acquires Indirect Stake in Sigma Pensions

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Access bank

Access Holdings on Friday announced it has completed the acquisition of an indirect equity stake in Sigma and the merger of its subsidiary, First Guarantee Pension Limited (FGPL) with Sigma.

According to the bank, following the sanction of the Scheme of Merger between Sigma and FGPL by the Federal High Court on December 1, 2022, FGPL has been dissolved without winding up leaving Sigma as the surviving entity, according to Access Holdings.

Commenting on the transaction, Dr Herbert Wigwe, Group Chief Executive of the Corporation, said “Following the successful completion of the merger, our plan is to leverage the synergies of these entities, as well as the Corporation’s expansive distribution network, strong risk management culture and best-in-class governance standards to create a formidable pension funds administration business.”

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Company News

Dangote Group Dismisses Rumours of Plan to Rise Cement Price

Dangote Cement says no price increase

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Africa’s leading cement producer, Dangote Cement Plc has dismissed the rumor that it plans to increase the price of its products.

The clarification became necessary following a recent publication that Dangote Cement plans a fresh increase.

Recently, there has been some publication (Not Investors King) about a potential increase in the price of cement. The publications noted that the increase will be a result of the high cost of fuel among other prevailing issues. 

According to the Senior Manager, branding and communication, Dangote Industries Limited, Mr Sunday Esan, “Dangote Cement is not embarking on a price increase”, stating that the increase is mere speculation.

Meanwhile, Dangote Cement in the third quarter of 2022, recorded an increase in the overall volume of cement sales by 6.2 percent to 20.8 metric tons in the third quarter of 2022.

According to the company’s Chief Executive Officer, Michel Puchercos, this was achieved, despite the elevated inflation caused by a very volatile global environment.

Similarly, while speaking on the increase in the price of fuel, Puchercos said “to mitigate the impact of the significant increase in energy and AGO costs, we are strengthening our efforts to ramp up the usage of alternative fuels”.

“We are on track to commission our Alternative Fuel feed system at Obajana lines I and V, and Ibese line II in November. In addition, we are ramping up our investment in Compressed Natural Gas (CNG), to reduce our AGO usage,” he added. 

Investors King understands that Dangote Cement is Africa’s leading cement producer with nearly 51.6Mta capacity across Africa. Although it has a few competitors which include BUA Cement, the company supplies most parts of Nigeria.

In addition, Dangote Cement has operations in 10 African countries. 

Its production plant in Obajana, Kogi state, is the largest in Africa with 16.25Mta of capacity across five lines while the Ibese plant in Ogun state has four cement lines with a combined installed capacity of 12Mta.

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