Quick updates on Nigeria’s Sugar Master Plan
Nairametrics| The federal government is very keen on pursuing the National Sugar Master Plan and encouraging investors to key into the agricultural sector Minister of State for Industry, Trade and Investment Mrs Aisha Abubakar stated this recently. The master plan forms part of the National Industrial Revolution Plan. (NIRP). The NIRP itself is a major component of this administrations Economic Recovery and Growth Plan (ERGP).
Background to the plan
The master plan was launched in 2013 by the Goodluck Jonathan administration and has a lifespan of 10 years. The objectives of the plan are to obtain self-sufficiency in sugar production, reduce the high level of importation, create huge number of job opportunities and increase the level of ethanol production and power generation. A fund to support industries in the sector was also launched. Tariffs on imported refined sugar were also increased.
Investors are keying into the plan
- Dangote Sugar Plc plans to invest N106 billion over the next 6 years in its various backward integration projects. The company also intends raising N20 billion of this sum from the stock market in the nearest future.
- Flourmills is also concluding arrangements to start operations of its sugar plantation in Suntil, Niger state. BUA sugar is also working on its sugar refinery in Lafiagi, Kwara State.
A 2016 report by the Global Agriculture Information Network (GAIN) states that Nigeria’s per capita sugar consumption is 9.7kg three times lower than the global average of 30kg. 2016/2017 consumption levels are expected to drop slightly due to lower consumer purchasing power and difficulties in accessing foreign exchange.
The Nigerian economy last year slipped into recession, the first in over 30 years, due to a crash in oil prices. The ensuing foreign exchange crisis lead to a reduction in the amount of fx available for manufacturers, who were forced to patronize a more expensive parallel market. Brazil supplies over 70% of the nation’s raw sugar requirements making it the largest supplier.
In a series of tweets by Whale Alert, an advanced crypto tracker showed how crypto robbers transferred over a million XRP stolen from Kucoin to crypto exchanges like BYEX, Binance, in more than eight transactions at the time this report was written.
Here are some of the ones captured by Nairametrics:
⚠ 66,882 #XRP (16,152 USD) of stolen funds transferred from Kucoin Hack 2020 to #BYEX
— Whale Alert (@whale_alert) September 29, 2020
⚠ 119,271 #XRP (28,932 USD) of stolen funds transferred from Kucoin Hack 2020 to #BYEX
— Whale Alert (@whale_alert) September 29, 2020
⚠ 119,271 #XRP (28,932 USD) of stolen funds transferred from Kucoin Hack 2020 to #BYEX
— Whale Alert (@whale_alert) September 29, 2020
Recall Nairametrics about two days ago broke the news when KuCoin Global CEO, Johnny Lyu in a statement disclosed yesterday about a reported hack lately in detail after private keys linked to crypto wallets got exposed and might have affected $150 million in user funds.
He added by saying the findings of the internal security audit report, revealed part of Bitcoin, ERC-20, and other tokens in KuCoin’s hot wallets were transferred out of the crypto exchange, which contained few parts of the total assets holdings.
More details will be released as the story is developing …
Business
HealthPlus crisis: Alta Semper directors reported to Police for trespassing
HealthPlus has made a formal complaint to the Police following its ensuing battle with Alta Semper.
Nigerian Pharmacy Chain, HealthPlus Ltd which is in a battle for control with private equity firm Alta Semper Capital took a new twist as Health plus reported Alta Semper directors to the police last week, as observed in a document seen by Nairametrics.
In a letter sent to the Assistant Inspector General of Police on the 25th of September, HealthPlus stated, “We had the presence of unknown persons around our head office locations.”
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The locations stated were 4 HealthPlus branches in Lekki, Lagos.
HealthPlus stated further, “We are aware that there are unauthorized and illegal plans by certain persons to take over our company premises to steal sensitive company property and assets, and ultimately take over operations of the company”
The 4 persons mentioned by HealthPlus are; Zachary Fond and Ivan Genadiev (both Alta Semper Directors), Ernest Eguasa, CFO of company and an unidentified middle-aged white man.
Explore the Nairametrics Research Website for Economic and Financial Data
Niarametrics reported last week that HealthPlus Limited appointed Chidi Okoro as Chief Transformation Officer.
However, the announcement set off a chain of allegations and counter-accusations, including online media mudslinging with both sides trying to court public sympathy for who is in control of the company.
Economy & Politics
P&ID dispute: UK Court orders $200 million guarantee to FG
Nigeria’s Foreign Exchange Reserves was boosted after a London Court ordered the release of $200Million placed as security in the case against P&ID.
A London Commercial Court has ordered the release of a $200 million guarantee as security to be paid to the Nigerian government in the P&ID $10 billion Arbitral Claim.
This was disclosed in a social media statement by the Central Bank of Nigeria on Tuesday.
Nigeria's Foreign Exchange Reserves was this morning boosted by over $200Million when the London Commercial Court ordered the release of the $200Million guarantee put in place as security in respect of the execution of the much discredited P&ID $10 Billion Arbitral Claim.
— Central Bank of Nigeria (@cenbank) September 29, 2020
Nairametrics reported earlier this month that The Federal Government secured a landmark victory in its bid to overturn a $10 billion arbitration judgment award against it in a case against Process and Industrial Developments (P&ID).
READ: Nigeria seeks bank documents of former President, others over $9.6 billion P&ID case
The Court said that Nigeria has established a strong prima case that the contract was procured by bribes paid to insiders as part of a larger scheme to defraud Nigeria. He said that there is also a strong prima face case that the P&ID’s main witness in the arbitration, Mr Quinn, gave perjured evidence to the tribunal, and that contrary to that evidence, P&ID was not in the position to perform the contract.
In today’s statement, the CBN said, “Nigeria’s Foreign Exchange Reserves was this morning boosted by over $200Million when the London Commercial Court ordered the release of the $200Million guarantee put in place as security in respect of the execution of the much discredited P&ID $10 Billion Arbitral Claim.”
READ; Why the NNPC is being dragged to US courts by Exxon Mobil, Shell
“The court also awarded a £70,000 cost in favour of Nigeria in addition to an earlier award of £1.5m.”
On January 31, 2017, an arbitration tribunal had ruled that Nigeria should pay P&ID, the sum of $6.6 billion as damages and breach of contract after a 2010 deal for a gas project in the Niger Delta part of Nigeria collapsed. The pre and post judgement accrued interest of 7% has seen the amount standing against Nigeria, rise to almost $10 billion, an amount that will be a serious dent on the country’s external reserve.
BREAKING: Over 1,00,000 stolen XRP transferred from Kucoin to major crypto exchanges
HealthPlus crisis: Alta Semper directors reported to Police for trespassing
P&ID dispute: UK Court orders $200 million guarantee to FG
FG to revitalize rice farms in rice producing regions
Daily Parallel Market Exchange Rate – ₦465/$1
COVID-19 Update in Nigeria
Daily Parallel Market Exchange Rate – ₦465/$1
Board room squabble tears HealthPlus apart
Pension Fund Administrators in Nigeria and their scorecard
Sterling Bank gets CBN approval for restructuring
