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Business News

Peugeot confirms Dangote’s plans to build new assembly plant.

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The representative of Peugeot Automobile France in Nigeria, Eric Maydiey, has given reasons why the automobile company granted Dangote Group the franchise to construct and operate a new assembly plant in the country.

According to him, the new Dangote-Peugeot Automobile Nigeria (DPAN) was conceived after Asset Management of Nigeria, AMCON’s failure to declare the winner for the bidding process of the Kaduna assembly plant over a year after bidding for the company with 52m Euros.

Maydiey also noted that Dangote Group has decided to build another Complete Knock-Down (CKD) auto assembly line in another location in Kaduna, which will be more modern and cheaper to achieve. He further added that the new plant will be ready by 2019.

In his words:

“We plan to do CKD in the new plant because CKD has a lot of advantages, but with SKD (Semi-Knock Down), there is no advantage to the country”.

AMCON’s Response

But in a swift reaction, Jude Nwauzo, Head, Corporate Communications, AMCON, said it has not announced a winner in the bidding process noting that its divestment plan in PAN Limited is still on track.

In his words:

“We have not finalized who we are going to sell to. So many interests are there. We have financial advisers, we allow them to do their job”, he said.

PAN Limited, assemblers of Peugeot brand of automobiles in Nigeria, was incorporated on December 15, 1972, after about two decades of smooth operations, the company ran into stormy waters after series of policy somersaults by the government and inadequate tariff protection for local assembly plants.

With a huge debt of ₦30 billion by 2011 and no prospect of a private investor willing to risk his money in turning it around, in 2012, the Asset Management Company of Nigeria (AMCON), acquired a controlling 80% shareholding and assumed board and management control.

In 2016, AMCON invited prospective investors to bid for its 80% percent stake in Peugeot Automobile Nigeria.

The new assembly plant by Dangote-Peugeot Automobile Nigeria Limited DPAN is a joint venture between Dangote Industries Limited, the Kaduna State Government, and Peugeot of France PSA Groupe.

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Fikayo has a degree in computer science with economics from Obafemi Awolowo University. ITIL v3 in IT service management. An alumnus of Daystar Leadership Academy. Prior to joining Nairametrics had stinct in Project management, Telecommunications among others. Also training in Consulting and Investment banking from Edubridge Academy. He has very keen interest in Politics, Agri-business, private equity and global economics. He loves travelling and watching football. You can contact him via [email protected]

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    Business News

    Senate calls for the liberalization of cement policy to crash the price of the commodity

    The Senate also tasked the FG on providing more industrial incentives to bring new players into the cement industry.

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    BUA Cement

    The Nigerian Senate has called for the liberalization of Nigeria’s cement policy to boost production and subsequently crash the price of the commodity in the country.

    This motion was raised by Senator Lola Ashiru at today’s senate plenary, the senator also tasked the Federal Government on providing more industrial incentives to bring new players into the cement industry, in addition to the liberalization of the cement policy in Nigeria.

    Ashiru explained that to reduce the price of cement and in extension, other building materials in the country, the Federal Government needs to provide an enabling operating environment that will encourage new entrants in the country.

    The Senate in conclusion called on the FG to provide more industrial incentives and protections such as concessionary loans and larger tax incentives to encourage new entrants and expand the national cement production infrastructure, as this boost in production will lead to a downward review of cement price in Nigeria.

    What industry leaders are saying

    Earlier this year the founder of BUA Group, Abdulsamad Rabiu, called for the liberalization of Nigeria’s cement policy to boost production and reduce the price of the commodity.

    The billionaire philanthropist faulted the belief that Nigeria is self-sufficient in terms of cement production, noting that recent statistics and figures on Nigeria’s population and cement production do not support this status of sufficiency in cement production as stated by some individuals.

    He attributed the high price of cement products in the country to the supply gap which exists in the country, as the few producers who currently operate in the country are unable able to meet the country’s huge and growing demand.

    The Group Executive Director, Strategy, Portfolio Development and Capital Projects, Devakumar Edwin, explained that the demand and consumption of cement in the nation currently outstrips supply, and this can be pegged on the growth in the country’s population, and the strong appetite for real estate investment and construction in the country.

    He revealed that a supply gap of about 40% exists in the country’s cement market and that all players in the industry are working hard to level production with the rising demand in the country.

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    Business News

    Paypal’s Venmo now permits cryptocurrency trading

    Venmo will support four different cryptocurrencies: Bitcoin, Ethereum, Bitcoin Cash, and Litecoin.

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    Venmo, a mobile payment service owned by PayPal has announced that it has started allowing users to buy, hold and sell cryptocurrencies on its app. Just like PayPal, Venmo will support four different cryptocurrencies: Bitcoin, Ethereum, Bitcoin Cash, and Litecoin, and users can carry out transactions with as little as $1 on the app

    Founded in 2009, Venmo has over 70 million users and it is one of the most popular payment channels in the US. The payment platform processed around $159 billion in payments last year.

    Since the app functions like a social network, adding cryptocurrency will offer a more user-friendly feel for people who love buying and selling crypto.

    READ: 28 million merchants to be granted crypto usage on PayPal

    As bigger companies show more interest in cryptocurrency, there will be wider adoption of virtual currencies in future. Venmo is the latest payment app that is offering support for cryptocurrency on its platform.

    Paypal, the parent company of Venmo is one of the most active companies in the crypto space as it allows users to buy, sell and hold cryptocurrencies in their digital wallets. Paypal users can also spend their coins at millions of merchants globally.

    Crypto on Venmo is enabled through PayPal’s partnership with Paxos Trust Company, a regulated provider of cryptocurrency products and services.

    What they are saying

    Darrell Esch, Venmo’s Senior Vice President and general manager said “Our goal is to provide our customers with an easy-to-use platform that simplifies the process of buying and selling cryptocurrencies and demystifies some of the common questions and misconceptions that consumers may have.”

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