Business
Caribbean Countries To Partner With Dangote On Cement, Fertiliser Manufacturing
. . . Dangote Refinery will save Africa from being a dumping ground – Grenada PM
The Prime Minister of Grenada, Dickon Mitchell, has described the Dangote Petroleum Refinery and Petrochemicals as a significant investment in industrialisation and manufacturing needed by developing countries for their industrial growth.
He maintained that through this type of investment Africa and indeed the developing countries can reverse the cycle of exporting raw materials while importing finished products from developed countries.
This is as Dangote hinted at potential partnerships with the Caribbean community in the production of cement and fertilisers as well as petroleum products.
ALSO READ: How Nigeria Can Become A Net Exporter Of Petroleum Products – Dangote
Mitchell, who is the chairman of the Caribbean Community (CARICOM or CC) – a political and economic union of 15 member states and five associated members throughout the Americas, The Caribbean and Atlantic Ocean, disclosed this on Thursday during his tour of the Dangote Petroleum refinery and Petrochemicals complex in Ibeju Lekki, Lagos.
Mitchell said the investment is a tribute to the President of Dangote Group, Aliko Dangote and his vision not just for Nigeria but Africa as a whole.
“This investment is a tribute to Dangote and his remarkable vision. It is the first of its kind in Nigeria and Africa, symbolising what the developing world needs: significant investment in industrialisation and manufacturing. This is an incredible achievement and a testament to Mr. Dangote’s vision, not just for his company, but for Nigeria and Africa as a whole.
“Dangote exemplifies what an African leader should be. We need not just political leaders, but business leaders who are willing to invest in Africa, particularly in manufacturing and industrialisation. We must ensure that we don’t continue to export our raw materials to the developed world, where they can be turned into sophisticated products and sent back to us. We need to reverse that cycle; it is the only way to grow the wealth of Africa and the developing world. Additionally, we need to support this with training and invest in job opportunities,” he said.
Applauding the sophistication and automation at the refinery, the Prime Minister expressed optimism for Nigeria’s future, especially given the number of young Nigerians trained and working at both the refinery and fertiliser plants. The $20 billion refinery, the largest private investment in Africa, stands out for its team of young professionals, predominantly aged between 26 and 28, most of whom hold advanced degrees and were educated in Nigeria.
“It has been a wonderful experience to witness the shared skills, depth of sophistication, and automation here. Seeing so many bright young Nigerians, particularly in the laboratories, is truly inspiring. I believe this bodes well for the future development of Nigeria,” he added.
Mitchell stated that the Caribbean Community would be exploring partnership opportunities with the Dangote Group to enhance its economy.
“One of the reasons I am here is to pursue synergies and partnerships between the diaspora and Africa, particularly in areas such as the refinery, cement, and fertiliser. We believe there are fantastic opportunities to develop partnerships between the Caribbean and Africa,” he added.
On his part, Dangote described the visit as symbolic, noting that many Caribbean countries are beginning to discover crude oil and are exploring opportunities to build their own refineries. This would help them address the challenge of exporting crude while importing refined petroleum products at high costs.
“The visit shows that many countries are proud of what we have been able to achieve because a lot of countries have been unable to deliver their refineries. It shows their pride in seeing a Black person like them at the Caribbean, although I am from Nigeria, succeed. For them, this is a dream, especially as many Caribbean countries are beginning to discover oil but still depend largely on exporting crude while importing petroleum products, which is costlier than in America. Their dream is to set up a refinery — perhaps not of this size — but one that would cater to their people,” he said.
Africa’s wealthiest man emphasized that the company is looking for partnerships in the Caribbean not only in petroleum products but also in cement and fertilizer production. He mentioned ongoing discussions about importing crude from these countries while supplying them with refined products.
“There are numerous partnerships in place. He is not only the Prime Minister of Grenada but also the Chairman of the Caribbean Community (CARICOM). We are exploring collaboration in areas such as cement and petroleum, including the possibility of buying crude from them while selling some of our petroleum products to them. We already export to the U.S., Mexico, and other regions, so there is significant collaboration we are looking to develop between us and them,” he added.
The 650,000 barrels per day (bpd) Dangote Oil Refinery — the largest single-train refinery in the world — is designed to process a wide variety of crude oils, including those from Africa, the Middle East, and US Light Tight Oil. It conforms to Euro V specifications and is built to meet stringent standards set by the US Environmental Protection Agency (EPA), European emission norms, the Department of Petroleum Resources (DPR), and the African Refiners and Distributors Association (ARDA). The refinery has the capacity to satisfy 100% of Nigeria’s demand for petrol, diesel, kerosene, and aviation jet fuel, with additional surplus available for export.
The National Bureau of Statistics (NBS) has reported that Nigeria’s headline inflation rate reached 32.70% in September, marking a slight increase from the 32.15% recorded in August.
This uptick follows a brief decline in August after a sustained 19-month rise in inflation.
The latest figures show that the year-on-year inflation rate in September 2024 was 5.98 percentage points higher than the 26.72% recorded in the same month of the previous year.
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On a month-to-month basis, inflation increased by 0.30%, reaching 2.52% in September compared to 2.22% in August, indicating a sharper rise in the overall price level.
Food inflation continues to be a significant factor, climbing to 37.77% year-on-year, which is 7.13 percentage points higher than the 30.64% reported in September 2023.
The NBS attributed the increase in food prices to rising costs of essential items such as guinea corn, rice, maize, beans, yams, cassava, and various vegetable oils. Additionally, prices of beer, cocoa products, and dairy also saw notable hikes.
Month-on-month food inflation rose to 2.64% in September, up from 2.37% in August, driven by price increases in categories such as oils and fats, meat, beverages, and dairy.
The average annual food inflation rate for the 12 months ending in September 2024 surged to 37.53%, up by 11.88 percentage points from the 25.65% recorded in the corresponding period last year.
Business
Aradel Holdings Admitted To NGX’s Main Board, Boosts Market Capitalization By N3.05 Trillion
Aradel Holdings Plc, an integrated energy company has listed 4.34 billion shares on Nigerian Exchange Limited (NGX) Main Board.
Biztellers reports that the NGX admitted the shares on Monday, 14 October 2024.
It was gathered that the shares, listed at N702.69 per share through a ‘Listing by Introduction,’ boosted the market capitalization of NGX by N3.05 trillion, marking a significant milestone in the oil and gas sector’s participation in the stock market.
Aradel Holdings Plc, a major player in Nigeria’s oil and gas industry, operates across the entire oil and gas value chain, with business interests in the exploration, production, and refining of petroleum products.
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The listing offers investors the opportunity to engage with one of Nigeria’s most diversified energy companies, positioning it as a key entity on the Exchange.
In conjunction with the listing, was a ‘Facts Behind the Listing’ event, during which senior executives presented the company’s growth strategy and financial performance to investors and stakeholders.
Chairman of Nigerian Exchange Group, Alh Umaru Kwairanga, highlighted the importance of the listing, thus, “This achievement is not just a win for Aradel, but also a clear indication to both local and global investors that Nigeria’s capital market remains vibrant, resilient, and full of opportunities. We are honored to facilitate capital raising for companies like Aradel that play a critical role in Nigeria’s economic progress.”
On his part, Group Managing Director and CEO of NGX Group, Temi Popoola, emphasized the broader significance of the listing.
“The benefits of an equity market listing for the upstream sub-sector of the oil and gas industry is especially crucial in light of its dire capital requirements and chronic underinvestment. Aradel has come to the market at a critical time as this and we are confident that our infrastructure here at NGX, both market and technology, can unlock the capital flows needed to ensure the sector thrives,” said Popoola.
Similarly, CEO of NGX, Jude Chiemeka, echoed Popoola’s sentiments, stressing the role of NGX in supporting corporate growth and innovation.
Chiemeka noted, “Aradel’s listing highlights NGX’s ability to support leading companies in their growth journey. This is not just a milestone for Aradel, but a key moment for the energy sector, demonstrating how the capital market can fuel efficiency and development in critical industries.”
At the event, Chairman of Aradel Holdings Plc, Ladi Jadesimi, highlighted the company’s focus on innovation and sustainability, noting that Aradel is poised to expand its footprint in the renewables space while maintaining its leadership in the oil and gas sector.
“The listing of Aradel Holdings on NGX represents a pivotal moment for us,” Jadesimi started.
He added, “We are committed to driving sustainable growth in Nigeria’s energy industry, particularly in the renewables space, while continuing to excel in petroleum product exploration and refining. This listing provides us with the platform to unlock further value for our shareholders.”
On the listing, the Managing Director/Chief Executive Officer of Aradel, Adegbite Falade, said, “this will mark a historic milestone for Aradel as we list on the NGX, underscoring our commitment to creating long-term value for our shareholders and deepening our contributions to Nigeria’s economic landscape. This listing is a testament to our resilience, adaptability, and our unwavering dedication to providing sustainable energy solutions that drive growth across our communities and industries. As we embark on this new chapter in Aradel’s transformation journey, we remain focused on operational excellence, strategic expansion, and delivering returns that reflect our track record and vision for an energized future.”
Aradel Holdings Plc’s successful listing on NGX positions it to leverage the capital market for future growth, allowing the company to expand its operations and cement its role as a dominant player in both traditional and renewable energy sectors.
The World Bank has advised Nigeria to maintain its current economic reform trajectory for at least the next 10 to 15 years to establish itself as a major economic power, both in sub-Saharan Africa and globally.
The call for sustained reforms was made during the ongoing 30th Nigerian Economic Summit in Abuja.
Read Also: World Bank Pledges Fresh $1.57bn Aid For Nigeria’s Healthcare, Others
Indermit Gill, Senior Vice President of the World Bank Group, emphasized the importance of the reforms for sustainable growth and development.
“Nigeria will need to stay the course of current economic reforms for at least the next 10 to 15 years to transform its economy,” said Gill, adding that if these reforms are maintained, Nigeria could become a key growth engine in the region.
The three-day summit, themed “Working Together for Growth, Competitiveness, and Stability,” is organized by the Nigerian Economic Summit Group in collaboration with the Ministry of Budget and National Planning.
It aims to bring together stakeholders to discuss strategies for economic development amid global economic uncertainties.
Gill acknowledged the challenges of implementing economic reforms but highlighted the potential rewards.
“It is very difficult to implement such reforms, but the rewards will be massive if they are maintained,” he said.
The World Bank’s call underscores the critical role of long-term policy consistency in enabling Nigeria to compete effectively with other emerging economies worldwide.
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