Pernod Ricard Nigeria has appointed Ehianeta Ojie Arthur as the new head of Portfolio for its Impress and Night Out brands.
Arthur, a seasoned marketing strategist with over a decade of experience, brings a wealth of expertise in performance marketing, brand management, and strategic planning to his new role.
Arthur’s distinguished career has seen him contribute to the growth of numerous high-profile brands across West Africa, including Coca-Cola, Samsung, Unilever, and LG. His strategic prowess has been recognised industry-wide, earning him a spot in BrandCom’s top 35 under 35 marketing professionals.
In his new role at Pernod Ricard, Arthur will be responsible for driving the profitability and equity growth of the Impress and Night Out portfolio, which features renowned brands such as Martell Cognac, Chivas Whiskey, and GH Mumm.
He will lead a team of brand managers in designing and executing consumer marketing strategies aimed at achieving sustainable topline growth and increasing market share.
Arthur’s impressive academic background includes a degree from the University of Benin, an MBA in Marketing from the University of Lagos, and certifications from the Chartered Institute of Marketing UK and Harvard Business School.
The Organisation of Petroleum Exporting Countries (OPEC), has said supplies from Nigeria-based world’s largest single-train Dangote Refinery and Petrochemicals will put pressure on the performance of Europe’s oil industry, especially the Northwest Europe (NWE) Gasoil.
OPEC in its newly released monthly Oil Market Report for June 2024 listed Dangote Refinery among the top Diesel and jet Fuel suppliers that will disrupt Europe’s oil & gas Industry, a development expert forecasted will positively impact the Nigerian economy.
Recall that Standard & Poor Global quoting trading and the ship tracking sources had earlier predicted that Nigeria’s $20 billion Dangote refinery would shake up international crude flows when it reaches full capacity, having already made an impact since coming online in January, trading sources and ship tracking data show.
The report revealed that “upside potential for higher production levels from Nigeria’s Dangote refinery, coupled with strong flows from the Middle East and new supplies from the Mexican Olmeca refinery, will likely exert pressure on NWE gasoil performance in the mid-term.”
It stated further “Europe is one of the world’s largest purchasers of refined petroleum products and relied on imports from Asia and the US after the European Union banned the use of Russian diesel in the bloc.
However, the 650,000bpd capacity refinery is eyeing the wider European market after International Oil Companies stopped supplying its crude oil.
Vice president of Oil and Gas at Dangote Industries Limited, Devakumar Edwin announced the company had earlier exported its first jet fuel cargo to Europe as it rapidly scales production.
The refinery is said to have exported 90 percent of its 3.5 billion litres of jet fuel and diesel to Europe over alleged lack of support from the Nigerian government.
“It is good to note that from the start of production, more than 3.5 billion litres, which represents 90 percent of our production, have been exported,” Edwin said
BP is currently transporting its first jet fuel cargo to Rotterdam from Dangote, after being awarded part of a 120,000 metric tonnes tender offered for the end of May, according to S&P Global.
OPEC stated that, “in June, the jet/kerosene crack spread in Rotterdam against Brent showed a slight decline, influenced by supply-side dynamics. Despite signs of improving air travel activities, subdued jet fuel demand from the aviation sector weighed on the product market
“Going forward, European jet/kerosene demand is expected to see upward pressure as consumption levels from the aviation sector continue to pick up in the coming months.”
President of Dangote Group, Aliko Dangote said the facility would broaden its feedstock sources with Libyan, Angolan, and Brazilian crude.
Nigeria is sub-Saharan Africa’s largest oil producer, pumping 1.5 million b/d in June, according to the Platts OPEC Survey from S&P Global Commodity Insights. Until this year, all of its oil was exported due to the lack of refining capacity, with gasoline, diesel, and jet fuel imported for domestic use.
Nigeria’s total import from Malta rose from zero to about N1.03 trillion in 2023, according to an analysis of the foreign trade statistics reports released by the National Bureau of Statistics (NBS).
This is as controversy continues to trail the sudden increase in Nigeria’s import from the small Southern European country, following recent accusation by Aliko Dangote, chairman of Dangote Industries Limited, against Nigerian National Petroleum Company (NNPC) Limited.
A cursory review of the NBS reports show that Nigeria’s total import for 2023 was N35.92 trillion, which indicates that about 2.87% of Nigeria’s total imports were from Malta, despite no record of any international trade between the two countries in 2022.
Also, the import from Malta was 8.41% of the total import from Europe, which was about N12.25 trillion in 2023.
The comptroller general of Nigeria Customs Service, Bashir Adeniyi, has said the service will commence implementation of the tax waiver on imported foods in one week.
Adeniyi spoke at a meeting of service chiefs and heads of security agencies convened by the chief of defence staff, General Christopher Musa, yesterday in Abuja.
He appealed to #EndBadGovernance protesters that efforts are ongoing to address their demands, especially concerning the cost of living standards. President Bola Ahmed Tinubu directed the suspension of import duties and taxes on essential food items to reduce inflation.
The Customs boss said the service was waiting for guidelines to be developed by the Ministry of Finance on the implementation of the suspension. He disclosed that the guideline will be ready in one week, adding that the implementation will commence.
He acknowledged that the protest aimed to end hunger occasioned by the rising food inflation.
“I would like to let Nigerians know that there has been a lot that is going on to address these issues related to ameliorating this situation through a mixture of fiscal policies of the government and many strategic interventions from ministries, departments and agencies of government,” he said.
As part of the intervention, he recalled that the federal government directed the distribution of strategic food items released from the national grain reserves about a month ago.
“This was released to all states of the federation. We also recall that a number of the food items that are consumed in Nigeria are imported. Better components are imported, and importations are not done off the shelf. It takes some time before they are done,” he added.
He continued, “So one of the things that the president has done is to reduce the cost and push on the effects of cost inflation by suspending customs duties and taxes on imported food items for some time. We believe that when this is implemented, it will help to bring down the price of food items in the market.
“Nigeria Customs is committed to implementing this fiscal policy as enunciated by the government. But I also like to remind Nigerians that we need to be very, very careful in implementing this, which is why the implementation guidelines are being meticulously worked out at the Ministry of Finance. What kind of intervention is it? What does it imply for the local markets? Because we’re trying to address the interests of all the stakeholders. Most of these food items, which are items that will enjoy these duty waivers and concessions, are also being cultivated by Nigerian farmers. And so there is the interest to strike.”
The Central Bank of Nigeria (CBN) has successfully auctioned $876.26 million to 26 deposit money banks (DMBs) in the latest Retail Dutch Auction System (RDAS) held on Tuesday, August 6, 2024.
The auction was part of the apex bank’s efforts to enhance foreign exchange liquidity in the market, alleviate demand pressure, and support price discovery, in line with its objectives.
The CBN disclosed this development in a statement released on its website on Wednesday, signed by its Director of the Financial Markets Department, Omolara Omofunde Duke.
According to the statement, the auction attracted total bids worth $1.18 billion from 32 authorised dealer banks. However, bids amounting to $313.69 million from six banks were disqualified. The disqualifications were due to four banks submitting their bids after the 3:00pm cut-off time, while two banks failed to provide bids in the required template.
The statement read, “A total bid valued at US$1.18bn was received from 32 Authorized Dealers Banks, of which, bids valued at US$876.26m from 26 banks qualified, while bids valued at US$313.69m from six banks were disqualified.”
LEADERSHIP recalls that last week, the CBN announced plans to implement the RDAS to address the increasing unmet foreign exchange demand from end users. The aim is to ease the growing pressure in the FX market and stabilize the naira’s exchange rate, which has fluctuated between N1,450 and N1,600 in recent months.
In the latest auction, the CBN approved a cut-off rate of N1495/$ for the RDAS.
Fitch Ratings, a credit rating agency, has revealed that the Dangote Group intends to sell off a 12.75 percent stake in Dangote Petroleum Refinery due to liquidity concerns.
Fitch in a statement on Monday, said Dangote Group plans to use the proceeds from the stake sold to service a sizable syndicated loan that matures on August 31, 2024.
NNPC acquired a 20 percent interest in Dangote refinery for $2.76 billion in September 2021.
However, Aliko Dangote, Africa’s richest person, on July 14, said the national oil company now owns a 7.2 percent stake in the refinery.
Speaking on the deal, Fitch said the 2021 transaction entailed that the NNPC acquired a “7.25% stake in DORC’s project entity for USD1.0 billion, with an option to purchase the remaining 12.75% stake by June 2024”.
Since the option has not been exercised, the rating company said the Dangote Group plans to sell a 12.75 percent stake in the Dangote refinery this year.
“The group intends to service its significant syndicated loan maturing in August 2024 from the equity divestment. However, timely divestment and meeting the imminent maturity is highly uncertain in our view,” Fitch said.
Fitch said as of 2023, Dangote Industry Limited’s (DIL) consolidated liquidity profile comprised N1.4 trillion of readily available cash (unaudited) and N400 billion as of “1Q24, with no headroom under the revolver facility”.
“Additionally, we expect further deterioration in FCF due to FX swings and capital requirements in 2024 and 2025. Liquidity is insufficient to address upcoming debt maturities,” the company said.
“The group plans to finance the substantial syndicated loan maturing in August 2024 through the divestment proceeds of 12.75% stake in DORC.”
On July 14, NNPC said the Dangote refinery was informed several months’ prior of its decision to limit the national oil company’s equity participation at the paid-up amount.
Fitch also downgraded DIL’s long-term credit rating to ‘B+(nga)’ from ‘AA(nga)’ and lowered the senior unsecured debt rating issued by Dangote Industries Funding Plc to ‘B+(nga)’ from ‘AA(nga)’- thereby placing the ratings on negative.
“The downgrade reflects significant deterioration in the group’s liquidity position following lower than expected disposal proceeds, operational and financial underperformance compared to our prior expectations, also affected by local currency devaluation and lack of contracted backup funding to repay its significant debt facilities maturing on 31 August 2024,” Fitch said.
However, DIL received national-scale long-term and short-term issuer ratings of AA+ (NG) and A1+(NG) from GCR Ratings (GCR), which is an affiliate of Moody’s.
The Central Bank of Nigeria (CBN) has granted approval for a pivotal financial accommodation to support the proposed merger between Unity Bank Plc and Providus Bank Limited.
Inna statement signed by the acting Director, Corporate Communications of the apex bank, the approval of the financial accommodation for the merger is a strategic move designed to bolster the stability of Nigeria’s financial system and avert potential systemic risks. The merger is contingent upon the financial support from the CBN.
According to the apex bank, the fund will be instrumental in addressing Unity Bank’s total obligations to the Central Bank and other stakeholders. It is unequivocal to state that the CBN’s action is in accordance with the provisions of Section 42 (2) of the CBN Act, 2007.
“This arrangement is crucial for the financial health and operational stability of the post-merger organisation. Furthermore, it is important to emphasise that no Nigerian bank currently faces a precarious situation comparable to that of Heritage Bank, which was recently liquidated. The CBN remains committed to safeguarding depositors’ interests and ensuring the smooth functioning of the banking sector through proactive measures and strategic interventions.
“The CBN’s decision underscores its dedication to maintaining financial stability and promoting confidence in the banking system during this transformative period,” she said in the statement on Tuesday.
Stakeholders blame harsh operating environment, policies | FG disburses single-digit interest loans to prevent industry collapse
Over the past 24 years, a stark decline in the manufacturing sector has been observed across Nigeria, leading to the unfortunate closure of 102 companies in 16 states.
LEADERSHIP reports that the trend highlights manufacturers’ myriad challenges, including inconsistent government policies, inadequate infrastructure, and security concerns.
Experts say the closure of these 102 companies across Nigeria’s 16 states represents a significant loss for the nation’s economy, contributing to unemployment and social unrest.
The challenges faced by these industries are multifaceted, requiring urgent government intervention and strategic planning to foster a more conducive business environment and restore the manufacturing sector. Nigeria has spent billions on intervention to save the industries through the National Industrial Revolution Plan.
(NIRP) launched in 2014, the Economic Recovery and Growth Plan (ERGP) introduced in 2017 and the Industrial Development Fund, a programme set up to provide financing for industrial projects.
The states affected by the closure of companies are: Abia – 7, Bauchi – 2, Bayelsa – 1, Borno – 5, Gombe – 4, Kaduna – 5, Kano – 22, Katsina – 2, Kebbi – 5, Kwara – 13, Nasarawa – 6, Niger – 4, Plateau – 3, Rivers – 1, Sokoto – 2 and Zamfara – 20.
Findings on companies that employed over 50 persons before the year 2000 but have now closed shop indicated that in Kaduna State, major closures include Kaduna Textile Limited, Arewa Textile and United Nigeria Textile, all situated in the Kakuri area.
Between 2000 and 2024, Zamfara State witnessed the closure of 20 companies, each employing over 50 workers. Notable casualties include Zamfara Textile Industries Limited, Gusau Oil Mills, and other enterprises concentrated in the Gusau industrial area. The economic landscape has been adversely affected, resulting in significant job losses and community distress. The state has been beset by banditry in the last few years. Kwara State has also suffered, with 13 companies shutting down, including reputable names like Global Soap and Detergent Industry and Nigeria Paper Mills in Jebba. The closures reflect a broader trend of economic hardship and inadequate support for local industries.
Borno State has been particularly hard-hit, losing five companies largely due to the ongoing Boko Haram insurgency. This insurgency has stifled investment and led to the collapse of firms like Deribe Oil Company. The lack of security has rendered the resuscitation of these businesses nearly impossible. Kebbi State has seen five significant companies go out of business since 2010, primarily due to economic challenges. Gombe State has lost four companies, including the once-thriving British Cotton Ginnery. Similarly,
Niger State has reported the closure of four companies, emphasising the pervasive nature of the crisis across the region.
Kano State stands out with a staggering 22 companies having shut down operations, particularly in the textile, food, and beverage sectors.
Other states have not been spared either. For instance, Bayelsa State lost one plastic company, while Bauchi, Katsina, Sokoto, Abia, Nasarawa, Plateau, and others have experienced varying degrees of industrial decline. Significant companies like Jos Steel Rolling Mill and Jos International Breweries have become shadows of their former selves, with little government intervention to revive them.
Experts and workers who spoke to LEADERSHIP attributed the current hardship and lack of jobs to the inability of the companies to survive in Nigeria. Local textile worker Joseph Kwagh said, “Unless the government wakes up from its slumber, moribund textile industries and other companies will not be revived.”
Vice Chairman of the Kano State Organised Private Sector Union, Hamza Adamu, highlighted the confluence of low business activity, multiple taxation and poor electricity supply as critical factors leading to the closure of industries in Nigeria.
FG Disburses Single-digit Loans To Prevent Industry Collapse
However, in a strategic move to prevent the collapse of industries in Nigeria, the federal government has disbursed loans at single-digit interest rates to the manufacturing sector of the economy and small businesses. The Bank of Industry (BoI), under the Ministry of Industry, Trade, and Investment, in 2023, disbursed N496.72 billion in loans to 75,809 beneficiaries, marking a 41.5 percent increase in total loans and advances.
These efforts align with President Bola Tinubu’s economic recovery goals, emphasizing the government’s dedication to empowering Nigerian enterprises and promoting sustainable operations. Also just recently, the government, through the newly-launched N200 billion Presidential Intervention Fund (PIF), designed to provide crucial financial support to micro, small, and medium enterprises (MSMEs), as well as manufacturers nationwide, announced that the fund will allocate N75 billion each to MSMEs and the manufacturing sector.
The loans, repayable in equal monthly instalments over three years with no moratorium, are intended to stimulate economic growth and foster industrial development. Minister of Industry, Trade, and Investment,
Dr Doris Uzoka-Anite, highlighted that this new phase follows a successful initial rollout, which saw significant support provided to nano businesses. The continuation of this initiative is expected to further strengthen the country’s business environment.
For MSMEs, eligible applicants can secure loans of up to N1 million if they have been operational for at least one year or are registered start-ups. Requirements include business registration documents, bank statements, and personal guarantees. Manufacturers can access loans up to N1 billion, choosing between working capital or asset financing, with specific documentation and repayment terms.
Analysts in the oil and gas sector have commended Oando’s acquisition of a 100 per cent stake in Nigerian Agip Oil Company Limited (NAOC Ltd), predicting it will significantly reshape Nigeria’s oil and gas industry.
The deal, in development since September last year, has finally come to fruition. According to oil and gas analyst Johnson Okoh, this landmark acquisition will double Oando’s oil equivalent output from 25,000 barrels per day to 50,000 barrels per day.
Okoh commended the leadership of Adewale Tinubu, Group Chief Executive of Oando Group, highlighting his ability to identify new business opportunities and create successful partnerships. “His visionary mindset and astute business acumen have allowed him to navigate the complexities of the Nigerian market and foster collaborations with leading international companies. This not only speaks to his own success but also showcases the immense potential within Nigeria’s business landscape,” Okoh said.
Another analyst, Femi Ojo, emphasised Tinubu’s status as a world-class businessman, lauding his visionary leadership and strategic acquisitions.
The final acquisition was announced on Wednesday by the Italian oil and gas giant Eni, which confirmed receiving regulatory approval from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC). The Italian company also stated that it had obtained all other relevant local and regulatory authorizations.
“Having secured all necessary local and regulatory approvals, this achievement will allow Eni to complete the transaction for the sale of Nigerian Agip Oil Company Ltd (NAOC), its wholly-owned subsidiary focused on onshore oil and gas exploration and production, as well as power generation in Nigeria, to Oando PLC, Nigeria’s leading national energy solutions provider, listed on both the Nigerian and Johannesburg Stock Exchanges.
“NAOC Ltd’s participating interest in the SPDC JV (Shell Production Development Company Joint Venture – operator Shell 30 per cent, TotalEnergies 10 per cent, NAOC five per cent, NNPC 55 per cent) is not included in the transaction and will remain in Eni’s portfolio.
Eni remains committed to the country through investments in deepwater projects and Nigeria LNG,” the company stated.
Eni also announced plans for economic diversification in Nigeria, including assessing the potential for producing agri-feedstock for Enilive bio-refineries and various nature- and technology-based projects, such as clean cooking initiatives to offset emissions. Eni has been operating in Nigeria since 1962, actively engaging in hydrocarbon exploration and production, as well as power generation.
Currently, Eni has a substantial portfolio of exploration and production assets, with an equity production of approximately 40,000 barrels of oil equivalent per day, excluding the NAOC contribution. Eni also holds a 10.4 percent interest in Nigeria LNG.
NAOC focuses on onshore oil and gas exploration and production, as well as power generation, Eni added in the statement.
