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Amid Insecurity, Passengers Boarding Nigerian Trains Dropped by 25.3% in Q2 2022

The Abuja Kaduna attack forced many Nigerians to abandon the train for an alternative transport means.



Lagos-Ibadan Train Services - Investors King

Nigeria Railway Corporation (NRC) has reported a 25.5 percent drop in passengers in the second quarter (Q2) of 2022 when compared with the second quarter of 2021, data from the National Bureau of Statistics (NBS) has revealed.

According to the data which was released on Tuesday, the Nigeria Railway Corporation (NRC) had an impressive performance during the first three months (Q1) of 2022 with 953,099 passengers using the train service, compared to 424,460 reported in the corresponding quarter of 2021. This represents a growth rate of 124.5 percent. 

Similarly, there was a significant increase in the use of the cargo section of the train service across the country. 

In the first quarter of 2022, 32,139 tons of goods were transported which represents a growth rate of 254.30 percent when compared to 9,071 tons of goods reported in the first quarter of 2021. 

With respect to the revenue generated within the period under review, a sum of N2.07 billion was generated from passengers in the first three months of 2022 which is 132.82 higher than the N892.46 million generated in the first three months of 2021. 

Additionally, the cargo section isn’t left behind. A sum of N71.76 million was made in the first quarter of 2022 compared to N18.89 million generated in the first quarter of 2021. 

However, the huge improvement recorded in both cargo and passenger in the first quarter of 2022 witnessed a significant decline in the second quarter of 2022. 

This decline is mostly a result of deteriorating insecurity across the country. 

Investors King learnt that after the terrorists launched a deadly attack on the Kaduna to Abuja train, a lot of Nigerians have cut their travel schedule to the bearest minimum. 

Subsequently, in the second quarter of 2022, passengers boarding trains across Nigeria declined by 25.29 percent when compared to the second quarter of 2021. 

In other words, 422,393 passengers used the train service in the second quarter of 2022 compared to a higher number of 565,385 passengers who boarded trains in the second quarter of 2021.

The decrease was also reflected in the revenue. While a sum of N598.73 million was generated in the second quarter of 2022, a sum of N1.08 billion was recorded in the same quarter of the previous year, representing a decrease of 44.76 percent. 

However, more people used the cargo section of the train service in the second quarter of 2022. 

Revenue generated from goods in the second quarter of 2022 was N86.00 million, representing an increase of 14.34 percent when compared to 75.21 million reported in the second quarter of 2021. 

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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



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



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



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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