The Flour Mills of Nigeria Plc (FMN) has perfected plans to buy out minority shareholders to focus on strengthening its position as the future of African food businesses.

Boye Olusanya, the group managing director, stated that the company has received approval from the Nigerian Exchange Limited (NGX) and the Securities and Exchange Commission (SEC) to proceed with the purchase.

FMN disclosed on Tuesday that the buyout would be executed through a scheme of arrangement, supervised by relevant regulatory bodies.

According to Olusanya, this move aligns with FMN’s goal to become the leading Pan-African food business, improving its ability to innovate and grow, while focusing on long-term value for stakeholders.

He said the buyout would enhance FMN’s operational efficiency and decision-making agility.

The company plans to apply to the Federal High Court for approval to convene a shareholders’ meeting, where the resolution to buy out minority shareholders will be discussed.

Olusanya said the resolution would pass if at least 75% of shareholders, either in person or by proxy, approve it at the Court-Ordered Meeting (COM). FMN’s board has already recommended the offer to shareholders, citing the buyout’s potential advantages for innovation and sustainable growth.

The Nigeria National Petroleum Company Limited (NNPCL) has revealed plans to revive two Liquefied Natural Gas (LNG) projects: the Brass and Olokola LNG projects.

With these projects, the NNPCL seeks to maximize Nigeria’s abundant gas resources for economic development and prosperity.

According to Mr. Umar Ajiya, NNPCL’s Chief Financial Officer (CFO), the company has initiated discussions with investors to bring back the Brass and Olokola LNG projects.

Ajiya spoke at the ongoing 2024 Gas Technology Conference and Exhibition (Gastech) in Houston, United States, on Thursday.

He attributed the suspension of the multi-billion-dollar projects to unfavorable market dynamics and slow decision-making by the government.

Ajiya revealed that the LNG projects offer many economic benefits for the country.

His words: “Brass LNG and OK LNG are two projects with the potential for manifold economic benefits, including job creation, power generation, revenue generation, and economic diversification.

“However, the multi-billion-dollar projects were stalled due to unfavorable market dynamics and slow decision-making by the political class in the past.

“In the past, gas prices fell, and the economics of the projects required high capital expenditure (CAPEX), which was a disincentive for investors and partners. Additionally, there was slow decision-making by the political class,” Ajiya added.

He further described NNPC as a commercially driven company that recognizes the importance of timely project development and execution.

Ajiya explained, “Abundant gas resources exist in many parts of the world, and therefore, the earlier Nigeria makes smart decisions to bring partners to the table, the better.”

“We are also pleased to have the Petroleum Industry Act, 2021 (PIA), which has provided fiscal incentives for investors and created an enabling environment that has rekindled hope in the energy sector,” he stated.

Speaking about Gastech, Ajiya noted that it is an avenue for NNPC to learn new technologies that will help the company tap into the global market with its abundant LNG resources.

According to NNPCL’s Chief Corporate Communications Officer, Olufemi Soneye, in a statement on Friday, “Gastech is the world’s leading forum dedicated to delivering a more sustainable energy future by bringing together experts who brainstorm to create pathways toward global energy security for lasting climate impact.”

The Nigerian National Petroleum Company (NNPC) has expressed interest in securing a permanent presence at the Dangote Refinery in Lagos, as part of a proposed crude oil supply deal, Devakumar Edwin, vice president of Dangote Industries Limited has said.

“NNPC has informed us that they intend to station a team of 6 to 10 people permanently at our refinery. They’ve asked us to provide office space for them since they will be supplying the crude, overseeing the production, and buying back the products in Naira,” Edwin said in a Twitter Spaces session organised by Nairametrics.

Edwin explained that talks with the NNPC are focused on a new crude supply model, in which the refinery would purchase crude from the government in Naira and sell PMS in the same currency, instead of using dollars.

He said that negotiations are still in progress, with key issues such as crude pricing and the Naira exchange rate yet to be settled.

“We are still in talks with the government about receiving crude in Naira. The discussions are ongoing, and nothing has been finalized yet. Some unresolved issues include the pricing of crude, the pricing mechanism, and determining the appropriate exchange rate for the Naira,” he said.

This change represents a major shift from the refinery’s initial business model as a free zone entity, which was intended to conduct transactions in dollars.

Edwin said that Aliko Dangote agreed to the federal government’s suggestion to sell NNPC products to the government in Naira, even though this could result in financial losses.

According to Edwin, Dangote said the critical need for foreign exchange and the deteriorating value of the Naira as key factors in his decision to proceed with the deal.

“Dangote intervened and said, ‘We are going to accept this because the country desperately needs foreign exchange, and the value of the Naira is deteriorating every day. I understand that I am going to take a loss – because, by the time we sell the product and convert it to dollars, the exchange rate may have worsened.’”

Edwin stated that in his commitment to the national cause, Dangote added, “I am willing to take this loss in the interest of the country. I don’t mind, the country is in bad shape. Someone has to take certain risks, and I am ready to face this loss, no matter how significant it may be.”