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Weekly News Roundup (May 13, 2017): Faro Water rakes in N4 billion in revenue for 2016



This is Nairametrics recap of some of the top company/industry stories that were in the news for the week ended May 13, 2017.

  1. MMA 2 celebrated its 10 years’ anniversary last week. The local wing of the airport is owned by Bi-Courtney under a BOT arrangement reached with the FG years ago. Bi-Courtney also used this opportunity to remind the government of a judgement debt of N132 billion it was said to have from the Federal High Court, against the FG. The company explains this was as a result of the failure of the government to handover old domestic terminal, otherwise known as General Aviation Terminal (GAT), Lagos. He said the amount increased to N200 billion, owing to the revenue the terminal operator would have collected as revenue for flights and other commercial activities at the old domestic terminal. Link
  1. Dangote Sugar refinery last week, revealed plans to establish a $450 million Sugar refinery plant in Niger State. The Managing Director of Dangote Sugar Refinery Company, Engineer Abdullahi Sule disclosed this in Minna, Niger State, after a brief meeting with the Governor, Alhaji Abubakar Sani Bello in his office. Link.


  1. Lafarge Africa revealed plans to raise 140 billion naira ($445.9 million) in fresh equity sometime this year. The company will be seeking a shareholder approval to consummate the deal next month. The deal is expected to include a debt equity swap, where Lafarge Africa will have to convert some or all of the debt owed to its parent company into equity. Lafarge owes its parent company over N140 billion as at December 2016. Link


  1. The Transmission Company of Nigeria (TCN) announced that it will be constructing a $200 million power transmission project in Ogun State. The Managing Dirctor of TCN, Mr. Usman Gur Mohammed, said the project, when completed, would also increase available power to industrial concerns and the populace. The TCN Boss also solicited the help of the State Governor, Amosun to help in the acquisition of land in places, such as, Lukosi, in Abeokuta; Redemption Camp and Mountain of Fire Ministries area, along the Lagos-Ibadan Expressway corridor as well as Ajegunle, very close to Agbara and Arigbajo axis. The land would be used for building sub stations. The TCN Boss also adds that the sum of $1.5 billion has already been secured from donor agencies to finance the project. Link


  1. The Minister for State for Petroleum, Dr Ibe Kachikwu revealed last week that Italian oil company Eni plans to build a crude refinery in Nigeria with capacity of 150,000 barrels a day through its Agip subsidiary. Link


  1. The meeting between Nigerian arm of Etisalat and its lenders to renegotiate the terms of a $1.2 billion loan reached deadlock last week after the telecoms firm missed a payment. The banks are still holding out for the Abu Dhabi based parent company of Etisalat to bail their Nigerian subsidiary out. The telecom firm signed the medium-term seven-year facility with 13 local banks in 2013 to refinance a $650 million loan and fund expansion of its network, but is now struggling to repay. Link
  1. General Electric, reported that it is set to deliver 20 free locomotive engines and 200 wagons worth over N30bn to the Nigerian Railway Corporation to boost rail services in the country. Link
  1. In another power sector news, The Transmission Company of Nigeria (TCN) has added 60 Mega Voltage Ampere (MVA) to the Ajah substation in Lagos State. The company, which stated this in a statement, added that the capacity of the sub-station had now been increased to 220MVA. It said the new 60MVA 132/33 kilovolt (kv) mobile transformer was installed due to the need to meet the increased bulk electricity demand by Eko Electricity Distribution Company (EEDC) as its customer number expands. Link


  1. The board of Directors of Nigerian Breweries Plc announces the appointment of Mr. Johan Antonie Doyer as the company’s Managing Director/ CEO. He was Managing Director of Heineken Ethiopia before assuming the same position in Nigeria. Link


  1. Uber drivers in Lagos, last week took to the street to protest against 40% fare reduction that the taxi service company introduced recently, a burden, which they claim is being passed on to the drivers. One driver lamented that he spent about N50,000 on fuel last week only to receive just N80,000 from Uber, when he was supposed to get double the amount. Uber takes about 25% commission from its drivers, even though the drivers/partners bear the cost of fuel, vehicle maintenance and purchase themselves. Link
  1. Four months after an elaborate ceremony to commission The Palms Mall at Ota in Ogun State, over 75% of the stores are still vacant. A survey from the The New Telegraph reveals that except for some few brands such as Medplus Pharmacy, Inglot, Shoprite, Getalo, Mellaly, Max and Game Rendi, which have taken full position in the mall, many of the retail stores are still vacant. Link


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  1. Nigeria’s e-commerce company, Yudala, has acquired Yes Mobile, a cosmopolitan high-value retail outfit with a multiplicity of stores in Lagos. A senior Management staff of Yes Mobile, Onoidem Idiong, described the take-over as detailed and strategic. Link


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  1. Courier Plus Limited, a wholly owned Nigerian company has launched its operations in Nairobi Kenya. Link


  1. The Bank of Industry (BoI) has reduced its interest rates for NYSC members under its Graduate Entrepreneurship Fund (GEF) programme, to zero per cent interest charge from 9%, as part of measures to encourage entrepreneurship and aid business growth. The bank said the zero per cent interest charge took effect from May 1, 2017. Link
  1. Zenith Bank last week announced that it intends to raise $500 million via medium term notes. The $500m is the other half of its $1 billion global medium term note programme launched in 2014, where it raised the initial $500 million under the first tranche of notes issued. Zenith Bank is Nigeria’s largest bank by equity. Link


  1. Last week, we heard that the Federal Government entered into a Memorandum of Understanding (MoU) with Oando Plc to manage the Port Harcourt Refinery under a repair, operate and maintain (ROM) arrangement. Oando’s CEO, Wale Tinubu explained that they plan to increase the refinery capacity from 30 per cent to a 100 per cent, subsequently to 120 per cent. The company is also considering raising some N40 billion in new capital. Link
  1. Adama Beverages Limited, producers of Faro Water, ‎reported last week that it recorded N4.6 billion turnover in 2016. The chairman of the company’s board of directors, Akin Kekere-Akun, ‎stated this at the Annual General Meeting held yesterday in Yola. It’s turnover in 2015 was N3.8 billion. The company still went ahead to report a loss. The CEO explained that the reason for the loss was because they were undergoing an expansion project that would see the installation of new plant with capacity to produce 40,000 bottles per hour. Link
  1. GBfoods, one of the leading multinational food company headquartered in Barcelona and Helios Investment Partners, have partnered to create one of Africa’s largest FMCG businesses. GBfoods Africa Holdco B. V., the joint venture owned by GBfoods and Helios, has acquired assets from different African companies including leading brands such as Jumbo (bouillon), Gino and Pomo (tomato paste), and Jago (milk powder and mayonnaise), as well as Bama (mayonnaise) distribution rights for Africa, in Ghana and Nigeria, and incorporates more than 600 workers from different nationalities. Consequently, this will result in a leading pan-African culinary products company with presence in over 30 African countries. With this transaction, GBfoods reinforces its leadership position as one of the most influential international groups in the food industry, consolidating its commitment to Africa. Africa currently contributes about 20% of the group’s turnover. Link
  1. The Managing Director of Toyota Nigeria Limited, Mr. Kunle Ade Ojo, lamented last week that the car maker recorded one of its lowest ever vehicle sales in Nigeria. He said the number of Toyota cars sold in Nigeria, dropped an all time low of 2,000 vehicles in the first quarter of 2017. He also disclosed that the total sales figure of vehicles across the country including all brands stood at 2,000 units when compared to 5,500 vehicles sold within the same period in 2016. He, therefore, forecast that given the way the industry was going, it would be difficult for all the car companies to sell 9,000 vehicles before the end of the year. Link
  1. The Executive Director, Fidson Health Care Plc, Bola Adebayo said last week that more than 70 per cent of drugs in circulation is fake. He blamed this on the absence of genuine drugs manufacturers in the hinterland, as many  are concentrated in big cities. Link



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Around the World

US Capitol complex temporarily shut down

The US Capitol complex was shut down temporarily on Monday as a precautionary measure after a small fire broke out nearby.



The US Capitol complex was shut down temporarily for about an hour on Monday as a precautionary measure after a small fire broke out nearby, highlighting the security concerns that are being raised days before the inauguration of President-elect Joe Biden.

The security concerns and the lockdown follows the January 6 attack on the US Capital by supporters of the outgoing US President, Donald Trump, after his encouragement and inciting comments, calling the Presidential election a fraud without any proof of evidence.

READ: President Trump says he won’t attend Joe Biden’s inauguration

Some of them even called for the death of the US Vice President, Mike Pence for presiding over the certification of Joe Biden’s November election victory.

While making the disclosure in a statement, the Capitol Police said that the lockdown has been lifted and the nearby fire contained.


The Acting Chief of the Capitol Police had said that the complex which comprises of the Capitol, its grounds and several buildings were shut down as a precautionary measure.

READ: US Supreme court dismisses Texas bid to overturn presidential election results

The US Secret Service in a tweet post on its official Twitter handle said, “Out of an abundance of caution the U.S. Capitol complex was temporarily shutdown. There is no threat to the public.’’

The city’s fire department in its tweet post said that firefighters put out a fire outside near the Capitol complex.

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The fire department said, “There were no injuries. This accounts for smoke that many have seen.”

READ: Huawei accuses the United States of hacking

What you should know

  • President-elect, Joe Biden is expected to be sworn in at the US Capitol on Wednesday amid an unprecedented cordon of security, with strict physical distancing measures in place due to threats of violent attacks in Washington and the rising cases of coronavirus infections.
  • Donald Trump, who is just fresh from a historic second impeachment from the congress had said he would not attend, although his deputy, Vice President Mike Pence, had given an indication that he would attend.

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Corporate Press Releases

Kinyungu Ventures Research calls for changes to cut-and-paste VC strategy in Africa

The Paper recommends investment structures and approaches tailored to African operating conditions.



East African venture advisory firm, Kinyungu Ventures has published a white paper Chasing Outliers: Why Context Matters for Early Stage Investing in Africa that has found that there continues to be a wide misalignment between traditional venture capital models and the African market. The team behind the report is now calling for a broadening of approaches to institutional investment on the continent. Speaking with 100 Pan-African founders, investors, and LPs across 15 African countries, the research suggests investors should prioritize investing structures and practices that reflect the realities of operating in Africa. This includes adopting more flexible investing structures with longer time horizons.

According to the paper, there are multiple mismatches between key characteristics of Silicon Valley VC and African markets, which influence how startups and funds maneuver as well as what results they expect and produce. Findings show that African markets are large, but also fragmented, and its consumers have limited purchasing power. Furthermore, consumers on the continent are difficult to acquire and retain, yet the sheer size of the African market also presents a real opportunity for profit once the environment is clearly understood. The paper’s key recommendations for funds include:

  • Adopting more focused investment strategies, such as investing in b2b companies or cross-subsidizing a portfolio with less risky, steady return assets.
  • Considering non-unicorn investing models geared at more resilient companies, with returns distributed more widely across the portfolio
  • Using flexible structures such as debt or PCVs to accommodate market-level changes, where feasible
  • Allowing a longer time horizon for returns, understanding that growth could be slow and difficult to achieve for many companies

Kinyungu Ventures catalyzes resilient businesses for local intergenerational prosperity. The East African-centric investor focuses on entrepreneurship in East Africa, startups, seed funding, debt financing, impact investing and angel investing.

Speaking on the launch of the white paper, Tony Chen, Managing Director of Kinyungu Ventures and co-publisher of the report says, “Capital in Africa is scarce and pursuing a “growth at all costs” strategy where capital pools are shallow presents huge risks for companies. We’ve also found that many great businesses don’t fit the typical VC profile, but have tremendous unfulfilled potential”.

Tayo Akinyemi, lead researcher and writer of the report added: “In our conversations with numerous investors and founders, it is clear that nuances in variables such as consumer behavior, cultural norms, and business practices impact startups significantly and being on the ground is crucial for success. While African markets aren’t always able to provide the outsized returns that Silicon Valley typically looks for in high-growth companies, a more focused strategy here could unlock real gems, as has been proven by some of the startup successes the continent has seen over the years.”


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Neimeth Pharmaceuticals to raise N5 billion in additional equity

The Board of Neimeth is set to raise N5 billion additional equity upon the approval by shareholders of the company at the AGM.



Neimeth Pharmaceuticals
The Board of Directors of Neimeth Pharmaceuticals has revealed plans to raise N5 billion in additional equity upon approval by shareholders of the company.
The information was contained in a press release published on the NSE and signed by the Company Secretary, Mrs. Florence Onhenekwe.

The disclosure is part of the resolutions reached at the Board of Directors meeting of 15th January 2021. At the end of the meeting, it was resolved that the company would raise additional equity to the tune of N5 billion.

In line with this development, a board resolution proposing to raise equity will be presented at the Annual General Meeting of the Company scheduled to hold on 9th March 2021.

What you should know

  • The Board of the Company is yet to disclose if the additional equity would be a rights issue or a private placement, as the details of the additional N5 billion equity set to be raised are yet to be finalized.
  • The fund will help the company’s management to execute key strategies that will reposition the company as a leader in the healthcare industry, with the hope to deliver better returns on investment to shareholders.
  • The additional equity financing will also increase Neimeth’s outstanding shares, which will dilute earnings and impact the Company’s stock value for existing shareholders.
  • The move has the potential to trigger a sell-off of the company shares on the Nigerian Stock Exchange.

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