After the meeting held at Aso Rock, the Federal Government directed that Dangote Cement factory in Obajana, Kogi State, be reopened with immediate effect.
Dangote’s cement factory located in Obajana in Kogi State is the largest cement factory in Africa and one of the largest in the world.
Arising from a meeting of the National Security Council (NSC), the Minister of Interior, Ogbeni Rauf Aregbesola, informed journalists that an agreement had been reached between the Dangote Group and the Kogi State Government on the need to reopen the factory while urging both parties to respect the agreement.
Investors King had earlier reported that the Kogi State Government sealed Dangote’s cement factory in Obajana due to a disagreement on ownership.
The Kogi State House of Assembly had ordered the sealing of the factory following agitations by indigenes who raised questions about the ownership of the company.
The House of Assembly stated that an investigation into the company’s operations allegedly revealed that there was nothing much to show on the circumstances surrounding the acquisition of the company by Dangote Group.
It also claimed that Dangote Group was invited to appear before the assembly, but its officials did not appear despite requesting for more time.
Similarly, Kogi State Commissioner for Information, Kingsley Fanwo, noted that the acquisition of Dangote Cement Factory in Obajana did not follow due process.
Before the acquisition of the cement factory, Kogi State Government owned more than 90 percent stake in the company.
On the other hand, Dangote Industries Limited, the parent company of Dangote Cement Plc released a statement which claimed that the acquisition of the company followed due process.
The company insisted that Kogi State had no equity interest in Obajana Cement while noting that the plant and machinery were conceived and built by Dangote Industries Limited, well after it acquired the shares in Obajana Cement Company.
However, the Federal Government premised on the thousands of jobs that could be at risk if the cement factory was closed for too long.
The Minister of Interior, Ogbeni Rauf Aregbesola said “the council (National Security Council) ordered the immediate reopening of the factory and advised that all issues in contention be resolved legally as the government was committed to providing employment”.
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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