Business
Why LCCI Considers DIL A Pillar Of Strength For Nigeria’s Industrial Growth
The Lagos Chamber of Commerce and Industries (LCCI) is of the view that the Dangote Industries Limited (DIL) is the pillar and strength of the nation’s economy because of its many investments.
The President of Lagos Chamber of Commerce & Industry (LCCI), Gabriel Idahosa made the assertion at the ongoing 2024 Lagos International Trade Fair.
On its part, the DIL restated its commitment to driving the diversification of Nigeria’s economy for growth and job prospects through strategic investments.
In lending credence to the LCCI’s assertion, the DIL disclosed that while it produces critical household items, some of its other products serve as either feedstock or raw materials for other manufacturers as a sure way of galvanizing the nation’s economic independent through industrialization.
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A statement from the DIL, credited the explanations to the Group Executive Director, Commercial Operations, Dangote Industries Limited (DIL), Hajiya Fatima Aliko-Dangote.
The GED, represented by the Director, Depot and Logistics, Dangote Cement Plc, Dolapo Alli, said “as a strategic sponsor of the Lagos International Trade Fair, this year’s theme, “Connecting Businesses, Creating Value,” resonates deeply with business objectives of the Conglomerate.
She noted that “at Dangote Group, our focus is on manufacturing. As a manufacturer, we rely on a network of suppliers and service providers for inputs and materials that we cannot source on our own.
“This commitment informs our active membership in the LCCI and our consistent participation in its activities. Businesses need connections at various levels—business-to-business, distributorship, and ultimately with the final consumers.”
She pointed out that “our recent flagship project, the Dangote Refinery and Petrochemicals, has commenced operations with the rollout of Premium Motor Spirit (PMS), automotive gas oil, JET A1, and other products, including polypropylene.
“We are optimistic that many new manufacturing outfits will emerge relying on both the products and byproducts of the petroleum complex as feedstock in their production processes.”
According to Hajiya Aliko-Dangote, the evolution of these mutual interdependent industries is expected to revolutionize Nigeria’s economy by creating linkages between different industrial sectors. The linkages will provide cushions to the economy, preventing disruptions in production as raw materials are available.
“Linkages are vital in sustainable economic and industrial development. We are envisaging a connected and interlinked manufacturing sector that will produce goods that are usually imported, and in the process create more jobs for the growing youth population.”
She emphasized that “our participation in this Fair, apart from the exhibitions, is to seek connections with other businesses. We have dedicated staff on ground manning the offices at our stand who are to provide necessary information to all businesses and individuals who desire to do business with us.”
On the Group’s interventions, Aliko-Dangote added that “we have commenced export of products from our petroleum refinery to other parts of the world. We also export fertiliser.
“Dangote Group has actively participated in road construction and rehabilitation projects aimed at improving transport conditions. The Group also plays a critical role in export financing, particularly through its cement business.
“Our business units are at the forefront of creating values. It is on record that Dangote Cement enabled Nigeria to attain self-sufficiency in local production of cement. Nigeria is not only a leading producer of cement, but our export capacity has helped also reduced pressure on foreign exchange.”
She further said, “Dangote Fertiliser Limited is the largest Granulated Urea Fertiliser complex in Africa. Dangote Sugar is committed to ensure that Nigeria ends the importation of raw sugar into the country by actively intensifying its execution of the Sugar Backward Integration.”
On hi spart, Idahosa said that in a nation facing complex economic challenges, the Dangote Group has remained a pillar of industrial strength and resilience, embodying the values of innovation, diversification, and a steadfast commitment to Nigeria’s economic growth.
He added that the Dangote Group’s journey is a story of strategic diversification and visionary leadership, capitalizing on Nigeria’s rich natural resources and creating millions of jobs, opportunities for SMEs, and an environment for foreign investments.
He further said that the Group’s commitment to backward integration, where inputs are sourced locally whenever possible, has not only reduced its exposure to foreign exchange volatility but also spurred local industry development.
The National Pension Commission (PENCOM) has officially lifted its suspension on Pension Fund Administrators (PFAs) regarding investments in commercial papers, following the development of new regulatory guidelines by the Securities and Exchange Commission (SEC).
In a circular issued on Tuesday, PENCOM announced that the decision to lift the restriction was made after SEC introduced draft rules and amendments to Rule 8 (Exemptions), aimed at regulating the issuance of commercial papers by its regulated entities.
Abdulqadir Dahiru, the Head of PENCOM’s Investment Supervision Department, explained the rationale behind the move.
“The commission has noted that the Securities and Exchange Commission has developed draft rules and an amendment to Rule 8 (Exemptions) to regulate the issuance of Commercial Papers by its regulated entities,” Dahiru said in the circular.
He further highlighted that SEC’s new framework addresses PENCOM’s concerns about the involvement of non-bank Issuing and Paying Agents (IPAs) in commercial paper transactions, bringing them under appropriate regulatory oversight.
“Accordingly, the SEC is addressing the commission’s concern about the role of non-bank IPAs in commercial paper transactions by bringing them within regulatory boundaries,” Dahiru added.
With the lifting of the suspension, PENCOM seeks to encourage capital raising while maintaining market stability.
However, the commission has advised Licensed Pension Fund Administrators (LPFAs) to carry out thorough legal and financial due diligence on all commercial paper prospectuses and offer documents before making any investments.
This is in line with the guidelines set out in Section 2.9 of the Regulation on Investment of Pension Fund Assets.
The volume of dollars traded in Nigeria’s foreign exchange market surged by 61.9% in the first 11 months of 2024, reaching $43.09 billion compared to $26.6 billion during the same period in 2023.
Data from FMDQ revealed quarterly fluctuations in market activity.
Turnover in the first quarter of 2024 (Q1’24) stood at $12.64 billion but fell by 19% quarter-on-quarter (QoQ) to $10.24 billion in Q2’24. The decline persisted in the third quarter, slipping by 0.87% to $10.15 billion.
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However, the market rebounded in the final quarter of the year.
October recorded a dramatic 63% month-on-month (MoM) increase to $5.4 billion from $3.31 billion in September.
In November, turnover rose further by 13.5% to $6.13 billion.
The naira showed a mixed performance across forex market segments in November.
At the official Nigerian Foreign Exchange Market (NAFEM), the naira appreciated by N2.8 or 0.16%, closing at N1,672.69 per dollar compared to N1,675.49 in October.
In contrast, the parallel market saw the naira weaken, losing N10 or 0.5%, to trade at N1,745 per dollar in November, down from N1,730 in October.
This divergence widened the gap between the parallel market rate and the official rate to N72.31 per dollar, up from N54.61 in October.
The Central Bank of Nigeria (CBN) faces mounting pressure to address persistent volatility in the forex market.
In its Communique No. 155, the Monetary Policy Committee (MPC) expressed concerns over sustained exchange rate pressures driven by high demand.
“Members expressed concern over persisting exchange rate pressure, reflecting continued high demand in the market. Consequently, the Committee urged the Bank to explore measures to boost market liquidity,” the MPC stated.
The Central Bank of Nigeria (CBN) has warned financial institutions to address the ongoing cash scarcity at Automated Teller Machines (ATMs) or face penalties.
This warning comes as Nigerians continue to experience difficulties accessing cash both at ATMs and over-the-counter services at banks.
CBN Governor, Olayemi Cardoso, made the announcement during his address at the annual Bankers’ Dinner hosted by the Chartered Institute of Bankers of Nigeria on Friday.
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He acknowledged the widespread challenges with cash availability, particularly in the lead-up to the festive season, which has exacerbated frustrations among ordinary Nigerians.
Cardoso said, “We recognise the ongoing challenges with cash availability at ATMs, which disproportionately affect ordinary Nigerians. To address this, we are conducting spot checks across deposit money banks, and we will impose penalties on underperforming institutions.”
Cardoso also revealed that, starting December 1, 2024, customers will be encouraged to report any issues they face while withdrawing cash directly to the CBN through designated phone numbers and email addresses for their respective states.
The CBN will be distributing guidelines to ensure the public is aware of these reporting channels.
The Governor also emphasized the need for full regulatory compliance by all stakeholders in the financial sector, including mobile money operators and POS agents.
The CBN is urging the promotion of digital transactions as a means of improving overall service delivery, especially during high-demand periods like the festive season and year-end.
“Financial institutions found engaging in malpractices or sabotage will face severe penalties,” Cardoso warned, signaling the CBN’s commitment to ensuring a reliable cash flow system across the nation.
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