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Dangote Projects $30 Billion Revenue for 2024, Aiming for Global Top 120

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Aliko Dangote - Investors King

Alhaji Aliko Dangote, the founder of the Dangote Group and Africa’s richest individual, has revealed ambitious plans for his conglomerate to reach over $30 billion in revenue by the end of 2024.

In an exclusive interview with CNN, Dangote said this milestone would place the Dangote Group among the top 120 companies globally.

Dangote attributed this optimistic projection to the recent strategic restructuring within the company.

“We have divided the company now into two main segments: myself as group president, the group president of oil and gas, and the group president of other businesses,” he explained.

This division aims to streamline operations and ensure that key personnel are effectively managing the various segments of the business.

A significant contributor to this projected revenue surge is the much-anticipated oil refining facility in Lagos. Dangote described the refinery as a game changer for Nigeria and the region.

“This refinery will change the game. By processing all of Nigeria’s crude oil domestically, it will reduce carbon emissions by up to 2 million tonnes,” he said.

The facility is expected to process about 21 million barrels of crude oil per month, eliminating the need for Nigeria to import petroleum products and significantly reducing the environmental impact of international shipping.

The environmental benefits of the refinery are substantial. Dangote highlighted that the reduction in shipping could save nearly 2 million tonnes of CO2 emissions annually.

“This will help in terms of reducing CO2 emissions significantly. Rather than ships bringing products from Europe or exporting crude from Nigeria, we will cut down on approximately 480 ships of 1 million barrels each per year,” he noted.

Revenue and Profitability Outlook

Regarding the financial viability of the refinery, Dangote is optimistic about the imminent profitability of the $19 billion investment.

“We will start making money soon from the refinery. Running businesses is about making money, but it also gives me great satisfaction that our activities are helping to make Africa great,” he affirmed.

Dangote acknowledged the challenges in securing adequate crude oil from producers. While the Nigerian National Petroleum Company Limited (NNPC) has been supportive, international oil companies (IOCs) are hesitant to redirect their crude from export markets to the local refinery.

“NNPC has been very helpful, but some IOCs are struggling to provide us with crude because they are used to exporting,” he explained.

Dangote also voiced his concerns about the low level of intra-African trade, which currently stands at only 16%.

He sees the African Continental Free Trade Area (AFCTA) as a potential catalyst for growth but emphasized the need for better integration and free movement within the continent.

“For AFCTA to work, we need to remove visa requirements, allow free movement of people, goods, and services. Without that, it is almost impossible to achieve prosperity,” he argued.

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Businessinsider, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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Goya Foods Takes Legal Action to Assert ‘Goya Olive Oil’ Trademark Ownership

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Goya Foods

“Goya Olive Oil” trademark in Nigeria, Goya Foods Incorporated has initiated legal proceedings against the Registrar of Trademarks under the Federal Ministry of Trade and Investment.

The case, numbered FHC/ABJ/CS/883/2023, was brought before the Federal High Court in Abuja.

Goya Foods, a prominent producer and distributor of foods and beverages across the United States, Spanish-speaking countries, and Nigeria, seeks to enforce a longstanding consent judgment issued by the court in December 2006.

The judgment directed the Registrar to rectify the Trademarks Register to reflect Goya Foods Incorporated as the rightful owner of the “Goya Olive Oil” trademark, without any further formalities.

The lawsuit, exclusively revealed to sources, underscores Goya Foods’ determination to safeguard its intellectual property against alleged infringements.

According to court documents, Goya Foods obtained the consent judgment against Chikason Industries Limited, which was accused of marketing “Goya Olive Oil” in Nigeria, thus infringing on Goya Foods’ registered trademark.

Legal counsel for Goya Foods, Ade Adedeji, SAN, emphasized the necessity of rectifying the Trademarks Register to protect their trademark interests effectively.

Despite appeals to the Registrar, the requested rectification has not been implemented, prompting Goya Foods to escalate the matter through legal channels.

The case has been adjourned to September 27, 2024, for further proceedings, highlighting the complexity and significance of trademark disputes in the global marketplace.

Goya Foods remains committed to upholding its brand integrity and securing its proprietary interests amidst the evolving landscape of international trademark law.

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IOCs Accused of Blocking Direct Crude Sales to Dangote Refinery

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Dangote Refinery

Dangote Industries Limited (DIL) has accused International Oil Companies (IOCs) of obstructing direct crude oil sales to its refinery and forcing the company to use costly middlemen.

This development comes after a statement by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) suggested a “willing buyer-willing seller” dynamic was in place as mandated by the Petroleum Industry Act (PIA).

Devakumar Edwin, Vice President of DIL, countered NUPRC CEO Gbenga Komolafe’s claims, stating that IOCs consistently make it difficult for local refiners by pushing sales through international trading arms, which inflate prices and bypass Nigerian laws.

“These middlemen earn unjustified margins on crude produced and consumed within Nigeria,” Edwin stated.

He noted that only one local producer, Sapetro, has sold directly to DIL, while others insist on using trading arms abroad.

Edwin detailed the financial impact, citing instances where DIL was charged a $2-$4 premium per barrel above the official price.

In April, DIL paid $96.23 per barrel for Bonga crude, which included significant premiums, compared to a much lower premium for West Texas Intermediate (WTI) crude.

While acknowledging NUPRC’s support in resolving some supply issues, Edwin urged the regulatory body to revisit pricing policies to ensure fair market practices.

“Market liquidity is essential for fair pricing. We hope NUPRC addresses these issues to prevent price gouging,” he stated.

This dispute highlights ongoing challenges in Nigeria’s oil sector, where domestic refiners struggle to secure local crude amidst complex market dynamics.

The outcome of these negotiations could significantly impact the refinery’s operations and broader industry practices.

The situation underscores the need for transparent and efficient crude supply systems to bolster Nigeria’s refining capacity and economic growth.

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Dangote’s $20 Billion Refinery to Begin Petrol Sales Next Month

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Petrol - Investors King

Aliko Dangote announced on Monday that his long-awaited $20 billion refinery complex will commence petrol sales starting next month.

The announcement came during a press briefing held at the refinery site in Lagos, where Aliko Dangote, Africa’s richest man, detailed the project’s progress and future plans.

“We are proud to announce that the Dangote Refinery will begin selling petrol from August,” Dangote stated confidently.

“This milestone marks the culmination of years of meticulous planning, construction, and overcoming numerous challenges.”

Dangote’s refinery, touted as the largest single-train refinery in the world, is designed to process 650,000 barrels of crude oil per day once fully operational.

The facility aims to not only meet Nigeria’s domestic demand for refined petroleum products but also contribute significantly to export markets across West Africa.

“We have entered the steady-state production phase earlier this year, and now we are ready to begin commercial sales,” Dangote explained. “Initially, we will focus on petrol production, with plans to expand our product range as we ramp up to full capacity.”

The refinery’s launch is expected to alleviate Nigeria’s longstanding dependence on imported refined products, thereby boosting the country’s energy security and reducing foreign exchange outflows associated with fuel imports.

Beyond petrol sales, Dangote revealed ambitious plans to list both the refinery and its associated fertilizer plant on the Nigerian Exchange Group (NGX) by the first quarter of 2025.

This move aims to attract broader investor participation and unlock additional value for shareholders.

“We are committed to transparency and accountability in our operations,” Dangote emphasized. “Listing these subsidiaries on the NGX will not only strengthen our corporate governance framework but also enhance the refinery’s financial sustainability.”

Challenges and Future Prospects

Despite celebrating the imminent commencement of petrol sales, Dangote acknowledged challenges encountered during the project’s execution, including delays in securing land for a petrochemical facility in Ogun State, which incurred substantial costs.

“We faced bureaucratic hurdles that resulted in significant delays and financial losses,” Dangote lamented. “Nevertheless, we remain steadfast in our commitment to advancing Nigeria’s industrial capabilities and contributing to economic growth.”

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