Connect with us

Business

Stakeholders Worry as steel Import Rises

Published

on

us business
  • Stakeholders Worry as steel Import Rises

The Federal Government and stakeholders in the manufacturing sector have expressed worries over the low production level of steel and the huge amount spent on steel imports annually.

Annual steel production in Nigeria is put at under two million metric tonnes per annum, (about 0.11 per cent of global steel) while import is five million tonnes.

According to a Former Minister of State for Mines and Steel Development, Abubakar Bwari, Nigeria spends up to $4.5bn on steel imports yearly.

Also, local Annual Per Capita consumption is less than 10 kilogrammes compared to the world average Annual Per Capita consumption which stood at 208kg as at 2016.

Worried about this development, the Federal Government is making moves to boost local consumption of steel.

The Assistant Director (Steel) in the Ministry of Mines and Steel Development, Mr Ime Ekrikpo, gave this indication in Lagos during the Annual General Meeting of the Basic Metal Sectoral Group of the Manufacturers Association of Nigeria.

While presenting a paper on the theme of the AGM which was, Revival of Ajaokuta Steel Complex and Aluminum Smelter Company of Nigeria-Priority for Developing the Metals Industry in Nigeria, Ekrikpo said the government was concerned about the low per capita steel consumption in Nigeria and had the intention of increasing the consumption to 100kg by 2020.

He said, “The steel and aluminium sector substantially needs to be grown in the area of internal production and consumption to support and stimulate growth in virtually all sectors of the economy due to its importance in the industrialisation drive of the government.”

Ekrikpo added that the government had intention of exploring and exploiting the potential of the solid minerals sector and adding value to them.

“At the moment, the private sector is running the steel sector in Nigeria 99.9 per cent with the major metals recycling companies numbering about 95. Only about 35 or less of them are still active but operating at very low capacities (less than 20 per cent) producing less than 200,000 tonnes per annum,” he stated.

He attributed the low production capacity of the steel sector in Nigeria to the high cost of production which made the sector uncompetitive among other global players.

According to him, major steel rolling mills at Ajaokuta and Katsina have been privatised with only Katsina (Dana Steel Mills) being operational with upgraded facilities.

Jos was also privatised but is currently not operational, while Delta Steel Rolling Mill is partially operational, he said, adding that Ajaokuta steel mill was in arbitration.

The outgoing Chairman, Basic Metal, Iron and Steel and Fabricated Metal sectoral group of MAN, Chief Oluyinka Kufile, in his welcome address, observed that several product lines from the steel industry such as; iron rods, wire rod, steel coils, metal doors and others, as well as the products to produce them efficiently were inadequate due to insufficient raw materials and absence of policy environment to support the industry.

He acknowledged the efforts of government in creating enabling environment for industrial growth and also banning exports of scrap metals, a major raw material for the steel industry.

The new Chairman of the group, who was elected during the AGM, Kamarudeen Yusuf, urged the government to check importation of finished product manufactured from steel, saying that this was the only way local manufacturers could be competitive.

He said the government should also encourage underwriting insurance companies to come into the country and assist investors in getting their projects underwritten.

He disclosed that his firm, KAM industries, was set to inaugurate a 300-tonne capacity steel rolling mill (an equivalent of Ajaokuta steel rolling mill) before year end.

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.

Business

Pharmaceutical Industry M&A Activity Grew by 17% in H1 2020 amid 56% Drop in Deal Value

Published

on

merger and acquisition

Pharmaceutical Industry M&A Activity Rose by 17% in the First Half of 2020

According to the research data analyzed and published by ComprarAcciones, merger and acquisition (M&A) deal activity in the pharmaceutical sector rose by 17% in H1 2020, disregarding the economic toll of the global pandemic.

It saw a total of 41 deals during the period, but the Q2 2020 deal value total of $3.3 billion was the lowest quarterly total since Q1 2018.

According to PwC, the pharma subsector posted a drop of 56% in deal value from H2 2019 to H1 2020. For the PLS sector as a whole (pharma, biotech and medical devices), the decline in deal value was a massive 87.2% during the same period.

Pharma and Life Sciences (PLS) M&A Total Deal Value Sank from $272.9B to $35B YoY

The total deal value for the pharmaceutical subsector in H1 2019 was $100.1 billion. In contrast, its total deal value in H1 2020 was valued at $7.7 billion.

The PLS sector had a total of 99 deals valued at $35 billion in H1 2020. In H2 2019, the figures were higher, with 129 deals valued at $86.5 billion. H1 2019 was even bigger, with 119 deals valued at a remarkable $272.9 billion.

Meanwhile, for the healthcare industry as a whole, H2 2020 started off with 13 deals valued at $1 billion+ according to S&P Global.

On the other hand, based on a report from Global Data, the global M&A deal value started on a downtrend in Q1 2020. It went from $151.2 billion to $129.9 billion from February to March. Another study from S&P Global shows that the decline carried into Q2 2020, with a 35% drop in deal volume. Similarly, total transaction value dropped by 40%, the highest drop since 2015.

Comparing H1 2020 to H2 2019, the total deal volume sank by 32% year-over-year (YoY) from 10,155 deals to 6,938 according to Merger Market. Deal values sank by 53%, from $1.9 trillion to $901.6 billion during the same period.

Continue Reading

Business

Lagos State to Support Businesses Looted by Hoodlums

Published

on

endSARS violence

Lagos State to Support Businesses Vandalised and Looted by Hoodlums

Lagos State has announced plans to support businesses looted and vandalised by hoodlums last week.

The Deputy Governor of the stated, Obafemi Hamzat, made this known in a series of tweets put out on Friday.

He directed businesses vandalised in the state to fill a form attached through the link below.

“If you are a Lagos based business and your store got looted/vandalized this week, please fill this form by @LSETF https://t.co/lwPiXvFzTp. Let’s do what we can to support you,” he tweeted.

This was after Governor Babajide Sanwo-Olu said the state had activated the process of healing the destruction and massacre that happened earlier in the week when security operatives in army uniforms opened fire on armless #EndSARS protesters.

Sanwo-Olu said, “My heart bled after I went out today for a first-hand assessment of the destruction of assets of the Government and private properties. The level of destruction observed indicated that the violence was more than just a peaceful protest and agitations for police reforms. The proportion of devastation is a lot. This is not the Lagos that was handed over to me on May 29, 2019.

“Moving forward from the destruction, we have to continue the process of healing ourselves. We need to stop some of our citizens still using social media to instigate or incite the people. It will not be under my watch that we will lose the city that has the largest economy in the entire black nation. Enough is enough. I have moved around and I saw that our people want peace. On this, we are committed to bringing lasting peace back to the State.

Continue Reading

Business

TVC Resumes Operations in Lagos Office Following Hoodlums Attack

Published

on

Telecommunications

TVC Commences Operations Less Than 72 Hours After Hoodlums Attacked and Destroyed the Company’s Lagos Office

Television Continental (TVC) station has resumed operations less than 72 hours after its Lagos office was attacked by hoodlums that hijacked the #EndSARS protest.

The television station was attacked on Wednesday by criminals would believe that the media platform was owned by one of the top Buhari supporters, Mr. Bola Ahmed Tinubu.

The attack followed the shooting of unarmed #EndSARS protesters, who had gathered to protest against the activities of the Special Anti-Robbery Squad (SARS) unit of the Nigerian Police Force (NPF) at the Lekki Toll Gate on Tuesday.

The peaceful protesters were shot by security operatives in Nigerian Army uniform before the commencement of curfew imposed by Governor Babajide Sanwo-Olu of Lagos State.

The killings now tagged Lekki Massacre attracted global attention as global leaders condemned the Federal Government or whoever ordered the shooting and called for an immediate investigation into the matter.

On Wednesday, criminals allegedly sponsored by interested parties to dislodge peaceful protesters took advantage of the situation to wreak havoc across Nigeria’s commercial hub, Lagos State, as several private establishments businesses were attacked and looted by these unscrupulous characters.

One of the establishments attacked was the National Newspaper also linked to Mr. Tinubu.

The hoodlums stormed TVC on Wednesday morning during a popular morning show, Your View, anchored by Mrs Morayo Afolabi-Brown, the programme did not end before the television station went off air as it was immediately set on fire.

However, Investors King gathered that TVC resumed operations on Saturday morning, although regular programs were yet to resume fully.

As at the time of writing, the station was airing promos of various programmes and from what we gathered, regular programming will return very soon especially from its Abuja office.

Continue Reading

Trending