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Cement: Nigeria Saves $2bn Yearly From Local Production

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Abdulsamad Rabiu
  • Cement: Nigeria Saves $2bn Yearly From Local Production

The Executive Chairman of BUA Group, Abdulsamad Rabiu, has stated that over $2bn is saved yearly from more than 25 million metric tonnes of cement produced by local manufacturers.

This, he said, could be attributed to recent investments in the cement industry.

He stated this at the end of the Presidential Industrial Advisory Council meeting chaired by Vice-President Yemi Osinbajo.

According to him, BUA has invested over $1bn in Obu Cement complex and $300m in Sokoto Cement expansion.

He said the reduction in the price of low pour fuel oil and the appreciation of the local currency in the foreign exchange market had helped the subsector to grow tremendously.

He disclosed that a new cement plant in Sokoto State and the second line of BUA’s Obu Cement would be inaugurated in 2018 to increase the country’s total annual cement output.

A statement quoted him as saying, “The cement industry in Nigeria will continue to save Nigeria a lot of foreign exchange. If, for example, you look at what we have produced in Nigeria today, which is about 25 million to 30 million tonnes, the value in terms of foreign exchange is almost $2bn a year.

“That is a lot of money being saved because if we did not have these cement plants, we would have been importing cement. And not only would we have had to spend foreign exchange on import but the price of cement would have been higher than what it is today.

“Foreign exchange has also come down; it is stable even though as we all know, the cement industry does not really require a lot of foreign exchange. But the fall in foreign exchange rate has really helped in terms of the things that we import into Nigeria like spare parts and raw materials like gypsum.”

Speaking on the outcome of the meeting with Vice-President Yemi Osinbajo, the BUA CEO explained that discussions at the meeting revolved around the advancement of the industrial sector and core challenges facing operators, the statement added.

He said, “As you all know, this council is one that is trying to bring private sector together with the government to come up with ideas on how we can improve on a lot of things, most especially infrastructure and other things. This is a step in the right direction.

“The council has made a lot of progress. A lot of areas have been identified that the government together with the private sector is going to work to see that work can start as soon as possible.”

“In fact, last week, one of the ideas that we presented was deliberated upon at the Federal Executive Council meeting and approval was given. We are looking forward to another meeting and I believe in the next few months, a lot of things will take shape as far as this council is concerned,’’ Rabiu added.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

Economy

Electricity Consumers, Hoteliers, Others Kick Against Petrol Price, Power Tariff Hikes

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power

Groups Kick Against Increase in Petrol Price, Power Tariff

The Network for Electricity Consumers Advocacy of Nigeria, the Nigerian Hotels Association, the Federation of Tourism Associations of Nigeria, Hotel Owners Forum, Abuja, and Power Up Nigeria have all kicked against the recent increases in power tariff and petrol price.

In a joint press conference held in Abuja on Friday, the groups rejected the increase and demanded an urgent reversal, saying the economic hardship imposed on Nigerians and businesses in the country by the COVID-19 pandemic would worsen if the increases in electricity tariff and petrol remains.

The speech jointly signed by presidents of NHA, FTAN, HOFA, Power Up Nigeria and read by the NECAN Secretary, Uket Obonga, the groups said it was sad that the Federal Government had chosen to compound the suffering of the Nigerian people at a time when the rest of the world are making efforts to ease the impacts of COVID-19 on their citizens.

They said, “It is sad to note that while other nations are enacting policies and taking measures to cushion the hardship imposed on their citizens by the COVID-19 pandemic, the Federal Government has chosen to place an unpardonable burden on Nigerians.

“This burden is not only the electricity tariff increase but also the hike in the pump price of petrol at a time that the people are suffocating under a distressed economy.”

They added, “It is very unfortunate that the Federal Government could allow itself to be misled into believing that tariff increase is the silver bullet that will shoot the sector revenues to Eldorado.”

The groups further stated that the cause of weak revenue in the power sector had not been addressed, neither is the nation’s low internally generated revenue addressed.

According to the groups, this was not the first time power distributors companies were pushing for a tariff increase, but the past Multi Year Tariff Order reviews that ended up increasing the price of electricity did not yield the desired result.

They said, “Recall that as soon as the MYTO 2015 order came into effect on February 1, 2016, the power distribution companies began another quest for further increase.

“They flagrantly disregarded the provisions of the MYTO path and energy charges contained therein, as the Discos went ahead to choose which tariff rate to use in determining bills given to the customers.

The groups argued that the incessant request for tariff increase had become a hypothetical exercise rather than the solution to the sector’s revenue problem.

We, therefore, wish to state categorically that we reject the September 1, 2020 tariff increase as ordered by the Nigerian Electricity Regulatory Commission,” they said.

They added, “We call on the Federal Government to rescind the increase because we note that there is nothing put on the ground to cushion the effect of the dual increase of the end user tariff and the pump price of petrol.”

Meanwhile, the Nigerian Electricity Regulatory Commission (NERC) has approved power distribution companies (DisCos) to start collecting 87.9 percent of the recently raised electricity tariff from consumers in the first half of 2021.

This was disclosed in the latest tariff review documents forwarded to the 11 power distribution companies in the country. Also, DisCos were approved to start collecting 100 percent of the new tariff from the second half of 2021.

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Economy

Nigeria’s Electricity Consumers to Start Paying Full Rates from H2 2020

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electricity

Electricity Consumers to Pay Full Rates from July 2021

The Nigerian Electricity Regulatory Commission has approved power distribution companies to collect an average of 87.9 percent of the recently raised electricity tariff from consumers in the first half of 2021.

In the latest tariff review documents issued to the 11 power distribution companies, power distribution companies had been approved to collect 100 percent of the new tariff from July to December 2021.

The approved new collection rates for the Discos means that Nigeria’s electricity consumers would be required to pay higher tariffs starting from the second half of 2021.

This is coming despite Nigerians kicking against the increase implemented on September 1, 2020. Nigerians have declared the numerous increases by President Muhammadu Buhari as anti-people policy, saying the administration continues to compound the people’s burden despite COVID-19 negative impacts on them.

A few numbers of Nigerians have staged protests to compel the administration to revise increases on Value Added Tax, pump price and electricity tariff because of the ongoing economic uncertainties and weak macroeconomic data after the National Bureau of Statistics (NBS) reported that the inflation rate rose above 13 percent, unemployment rate hits 27.1 percent and general plunged in economic activities and earnings of the Nigerian people.

However, the approval means DisCos will collect an average of 88 percent tariff in the first half of 2021 and up it to 100 percent in the second half of 2021 as contained in the NERC’s directive.

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Economy

Shipping Companies Lost 1,382 Containers to Bad Weather Yearly – Report

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NPA

World Shipping Council Says 1,382 Containers Lost Year

A recent report by the World Shipping Council has estimated that about 1,382 containers are lost at the sea yearly due to bad weather and other unforeseen circumstances.

In the report titled ‘Containers lost at sea – 2020 update’, the council attributed the disappearance of over 1,382 containers to severe weather, rough seas, ship groundings and structural failures as some of the problems which can result in containers being lost at sea.

The report said it used a survey-based system to calculate the losses made by shipping companies over a 12-year period.

It said, “Upon review of the results of the 12-year period (2008-2019) surveyed, the WSC estimates that there were on average a total of 1,382 containers lost at sea each year.

“With 12 years of data, it is particularly interesting to look at the trend of three-year averages, reported in each of the survey updates.

“In the first period (2008-2010), total losses averaged 675 per year and then quadrupled to an average of 2,683 per year in the next period (2011-2013).

“This was due in large part to the sinking of the MOL Comfort (2013) that resulted in a loss of 4,293 containers and further impacted by the grounding and loss of M/V Rena (2011) resulting in approximately 900 containers lost.

“Nevertheless, the next period (2014-2016) was marked by another vessel sinking with the tragic total loss of the SS El Faro (2015) with the loss of 33 crew members and 517 containers.

“Even with that, the three-year average annual loss for the period was 1,390, about half of the previous period. The downward trend continued into the most recent period (2017-2019) when the three-year average annual loss was almost halved again to 779.”

The WSC, therefore, encouraged governments and other stakeholders to improve container safety and reduce containers lost at sea.

This, it said could be achieved by making adjustments to the Safety of Life at Sea and revising the International Organisation for Standardisation standards for container lashing equipment and corner castings.

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