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Okomu Oil Palm is a SELL

Okomu Oil Palm is a SELL in Nairametrics opinion for the trading week ending August 2, 2019 on the @nsecontact

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Buy/Sell/Hold, Guaranty Trust Bank, Nigeria Stock Excahnge

Stocks to Buy/Sell/Hold are drawn from the top gainers and losers of the previous week, as well as various analysts’ reports. 

 Dangote Sugar: HOLD  

Recent ResultsResults for the first quarter ended March 2019, show that revenue fell from N41.1 billion in 2018 to N38.1 billion in 2019. Profit before tax however rose from N8.3 billion in 2018 to N10.7 billion in 2019. Profit after tax also increased from N5.2 billion in 2018 to N7 billion in 2019. 

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Price Information  

Current Share Price: N10.6  

Price to Earnings Ratio5.32X 

Price to Book Ratio: 1.19  

Year to Date: -30.49%  

One Year Return: -25.34% 

External View  

Analysts at United Capital have a Hold’ recommendation. They have a 12 month target price of N16.80. This represents a potential upside of 49.3% from the stock’s price of N11.3 as at when the report was prepared.  

Analysts at FBNQuest have a Neutral rating on the stock. They have a one year target price of N14.90. This represents a potential upside of 33.1% from the stock’s price of N11.20, as at when the report was prepared.  

Our View  

Dangote Sugar Refinery is a HOLD in Nairametrics’ opinion. Though the stock is trading quite cheaply, the year to date decline is not sufficient to warrant entry.  

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 Nestle Nigeria: HOLD  

Recent ResultsResults for the first quarter ended March 2019, show that revenue increased from N67.4 billion in 2018 to N70 billion in 2019. Profit before tax jumped from N13.6 billion in 2018 to N19.1 billion in 2019. Profit after tax also increased from N8.6 billion in 2018 to N12.8 billion in 2019.  

Price Information  

Current Share Price: N1300  

Price to Earnings Ratio: 21.81X 

Price to Book Ratio: 16.3  

Year to Date: -12.46%  

One Year Return: -6.77%  

External View 

Analysts at FBNQuest have a neutral recommendation on Nestle. They have a target price of N1431. This represents a potential upside of 14.5% from the stock’s price of N1250, as at when the report was prepared.

Analysts at United Capital have a Buy recommendation on the stock. They have a 12month target price of N1636.10. This represents a potential upside of 30.9% from the stock’s price of N1250, when the report was prepared.  

Our View 

Nestle Nigeria is a HOLD in Nairametrics opinion. While the stock is trading at a PE ratio nearly 4 times the average PE ratio on the exchange, such premiums are not uncommon with blue chip stocks. The thin liquidity also means that a significant price decline may take a while.  

 FCMB Group: HOLD  

Recent ResultsResults for the first quarter ended March 2019, show that revenue increased from N42.1 billion in 2018 to N43.9 billion in 2019. Profit before tax increased from N3.2 billion in 2018 to N4.2 billion in 2019. Profit after tax also increased from N2.5 billion in 2018 to N3.6 billion in 2019.  

Price information  

Current Share Price: N1.73  

Price to Earnings Ratio2.16X

Price to Book Ratio: 0.18 

Year to Date: -8.47%  

One Year Return: 3.59%  

External View 

Analysts at FBNQuest have a Neutral recommendation on the stock. They have a target price of N2.80, which represents a potential upside of 72.8% from the stock’s price of N1.6 as at when the report was prepared.  

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Analysts at United Capital have a Buy recommendation on the stock. They have a target price of N2.50, which represents a potential upside of 56.3% from the stock’s price of N1.6 as at when the report was prepared.  

Our View  

FCMB is a HOLD in Nairametrics’ opinion, even though the stock is trading at a price earnings ratio lower than its peersSterling Bank which is trading at 6.9 times earnings and Fidelity Bank which is trading at 1.9 times earnings.  

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The stock has not declined sufficiently year to date, to an attractive entry point.  

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 Okomu Oil Palm: SELL 

Recent ResultsResults for the first quarter ended March 2019, show that turnover fell sharply from N7.3 billion in 2018 to N4.2 billion in 2019. Profit before tax fell from N3.9 billion in 2018 to N1.2 billion in 2019. Profit after tax also declined from N3.4 billion in 2018 to N1 billion in 2019.  

Price Information 

Current Share Price: N55.80 

Price to Earnings Ratio: 8.82X 

Price to Book Ratio: 1.8  

Year to Date: -26.77%  

One Year Return: -30.05%  

External View 

Analysts at FBNQuest have a Neutral recommendation on the stock. They have a target price of N64.7, which represents a potential upside of 16.1% from the stock’s price of N55.8, as at when the report was prepared.  

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Analysts at United Capital have a Buy recommendation on the stock. They have a 12 month target price of N92.1, which represents a potential upside of 65.1% from the stock’s price of N55.8 as at when the report was prepared.  

Our View  

Okomu is a SELL in Nairametrics’ opinion. While the decline in performance is also present in Presco Plc its peer, Okomu’s numbers may come in significantly lower. Investors with a long term view, may decide to HOLD, or renter after its H1 2019 results are released. 

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Onome Ohwovoriole has a degree in Economics and Statistics from the University of Benin and prior to joining Nairametrics in December 2016 as Lead Analyst had stints in Publishing, Automobile Services, Entertainment and Leadership Training. He covers companies in the Nigerian corporate space, especially those listed on the Nigerian Stock Exchange (NSE). He also has a keen interest in new frontiers like Cryptocurrencies and Fintech. In his spare time, he loves to read books on finance, fiction as well as keep up with happenings in the world of international diplomacy. You can contact him via [email protected]

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Innocent Chukwuma: From selling spare parts to manufacturing an indigenous automobile brand

Already dominating the spare parts and automobile space, Innocent could have rested on his oars but not so.

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At the height of the “backward integration” campaign and calls for manufacturers to source their materials locally, Innocent Chukwuma of Innoson Vehicles stands out as the only manufacturer in the automobile space who has localised the production of vehicles.

From a small start of assembling the automobiles in Nigeria, Innocent Chukwuma has expanded to start producing and sourcing over 80% of his production materials locally, thereby creating employment at the local level.

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This week on founders profile, we will be looking at the zero to hero story of this dauntless entrepreneur, the man behind Africa’s first indigenous motor brand, Innocent Chukwuma.

READ MORE: Innoson partners Nigeria Army on military hardware.

A rough start

A year after independence, Innocent Chukwuma was born on 1st October, 1961 in Uru-Umdim, Nnewi (now in Anambra State). As you may well know, Nnewi is also known as the Japan of Africa, for being a hub for automobile spare part dealers.

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His was a very humble family, with Chukwuma Mojekwu (Innocent’s father) working as a junior civil servant and the mother/wife, Martina Chukwuma being a stay-at-home mum. Innocent was the last of six children, comprised of four boys and two girls.

As a child, Innocent lost his dad and was left to be raised by his mum. Though this was a traumatising and shocking experience for him at the time, he would later remark that the love from his elder brothers filled the gap, helping him to pull through the tough time.

He had his education in his hometown, up till the secondary level. All the while, he nursed dreams of becoming an Engineer. However, by the time he completed his secondary school education in 1978, he applied to the university, but failed to attain the cutoff mark and so was denied entry.

READ MORE: Innoson boss reacts to arrest warrant, says order is an abuse of process taken so far

Making the most of fate

While awaiting another chance to apply, he started assisting one of his elder brothers who had a medicine store. This brief stint as a teenage sales boy showed Innocent that he had a natural talent for trading.

Combining his interest in engineering with his love for trading, Innocent moved on to commence a one-year apprenticeship with Chief Romanus Eze Onwuka who was the biggest motorcycle spare parts dealer at the time. Onwuka later founded the first private stadium in Nigeria, Rojenny Stadium in Oba near Onitsha.

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Within the year, Innocent mastered the act of buying and selling of motorcycle parts, a trade which many others take as much as five years to master. He later returned to his brother, Gabriel to put his knowledge into use.

Gabriel had already registered a business name – Gabros International – to trade in motorcycle parts. So, when Innocent returned, he gave him N3,000 to get the new venture off the ground. With this sum, Innocent purchased the first goods and rented a shop and within another year, proved to his family that he was worth his salt.

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When they took stock of the business after 12 months, the brothers found out that the motorcycle part business under Innocent, was generating about 10 times more income than the medicine store. This realization formed the basis for closing the medicine store to concentrate on the spare-parts business.

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Gabriel Chukwuma later invested in sports, real estate and hospitality, becoming chairman of Gabros International Football Club, a club which he later sold to Ifeanyi Ubah.

The birth of Innoson

In 1981, Gabriel gave Innocent some money to start up his own business. Adding this to his savings, Innocent started trading in Honda motorcycle spare parts under the name Innoson Nigeria Limited. This was not to last very long because Innocent’s dexterity soon provided him with sufficient capital to start importing motorcycles, not just the spare parts.

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The birth or expansion of any business is tied to identifying a problem and proffering a solution. Innocent observed that the costs of motorcycles were a bit outrageous because they were imported in their already assembled form. Importing motorcycles like this made it impossible for a container to carry more than 40 units. As a result, the retail price was relatively higher.

Innocent then reasoned that if he could import the parts and assemble them in Nigeria, he could sell at a lesser price.

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At this rate, the same 40ft container that could only take about 36 units of whole motorcycles, could take enough parts to assemble 200 units. After getting them assembled, Innocent had an advantage – he could sell his for N60,000, while competitors who were importing it whole could not afford to sell it less than N150,000 without running at a loss.

He was also able to vary his brands to get the best products at better prices, and very soon his competitors started buying from him. With this, purchase of second-hand motorcycles dropped because people were now able to get new motorcycles at very cheap prices.

With time, competitors like Leventis and Yamako figured out the strategy and also started importing parts to assemble locally.

READ ALSO: Government of Sierra Leone purchases Innoson Vehicles for military use

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Innoson takes to sail

Already dominating the spare parts and automobile space, Innocent could have rested on his oars but not so. He later says in an interview that it was always his concern to beat cost and be ahead of the game.

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“…I looked at a motorcycle and realised that there is a lot of plastic on the body. So I set up a plastic factory. I decided to produce all the plastic components in my factories so that more units of the spare parts can go into a container.”

The plastic manufacturing firm is now one of the largest manufacturers of plastic products in Nigeria, and also one of the largest manufacturers of crash helmets in West Africa, with his erstwhile competitors now buying plastics from him.

With this done, it was only a matter of time before he dared to produce the first fully Nigerian vehicle under the aegis of the Innoson Vehicle Manufacturing Company. According to Innocent, he decided to go into vehicle manufacturing when he saw that the motorcycle business was becoming crowded out with Nigerians and Indians.

The Innoson Group has several subsidiaries now. Innoson Nigeria Limited (located in Nnewi) was incorporated in July 1987 and is now specialised in the manufacturing of motorcycles, tricycles, spare parts and accessories. It is Anambra State.

Innoson Technical & Industrial Co. Ltd is located in Emene, Enugu state and started operations in 2002, producing household and industrial plastics, storage container, fixture & fittings, health and safety accessories, electrical components and accessories.

Innoson Vehicle Manufacturing (IVM)  is located in Nnewi and was commissioned in October 2010, and focuses on producing city bused, safe and cost-effective mini & midi buses, pick-up trucks and garbage collecting vehicles. The company also provides good services for repairs and parts supply.

The locally-made vehicles such as IVM Umu, IVM Umu and IVM Uzo now attract patronage from the political elites, government agencies and parastatals like the Armed forces as well as other paramilitary bodies.

Innoson General Tyres and Tubes Co. Ltd is located in Enugu state and simply produces motorcycles tyres and tubes, currently averaging about 8,000 pieces of motorcycle tyres and 13,000 tubes daily.

READ ALSO: Why Anambra, Kogi, and Enugu are yet to be recognised as oil-producing states

Innoson Kiara Academy

Technical expertise needed for the operation of a vehicle manufacturing company is not readily available. For the first few years of operation, IVM had to import a lot of foreigners to get the job done. However, Innocent soon came up with a technical expertise transfer strategy where the foreigners would return to their countries after teaching the indigenous staff.

“There are lot of unemployed graduates in Nigeria and we cannot continue to bring foreigners” he explained.

To further arrest the challenge of manpower, he established the Innoson Kiara Academy, a Technical and Vocational institution established in partnership with an international consulting firm.

The academy (branches in Enugu and Nnewi) runs a 9-months Education for Employment (E4E) programme providing courses that are tailored around the production processes and procedures of various factories within the Innoson Group. The students are taught in a kind of modern apprenticeship delivery format, and are expected to either become self-employed at the end of the training, or get absorbed into the public or private sector.

Innocent recalled that prior to this time, the Innoson groups had challenges of recruiting graduates who did not have any training on the practical production processes, but not the subsidiaries in the group simply recruit staffs from the academy who blend in easily once they resume.

Suits and legal tussles

Innocent Chukwuma and Innoson Group have been involved in several suits over the decades of its operations but most notable are its several legal tussles with Guaranty Trust Bank Plc. In one such suit, the Federal High Court, Ibadan Division, On 29 July 2011, through a garnishee order absolute ordered the Defendants (GTBank) to pay the sum of N2,048,737,443.6k to Innoson Nigeria Ltd.

GT Bank appealed the verdict twice claiming that the judgment was obtained by fraud, but the appeal was dismissed affirming the judgment of the trial Court. In a final note on 12 May 2017, the Supreme Court dismissed the GTBank’s motion stating, inter alia, that GT Bank engaged in double speaking and in a frivolous frolic in bringing the application.

In the fresh suit, Innoson Nigeria Ltd and Chief Innocent Chukwuma maintained that the words published by GTBank – that it obtained the Court of Appeal Judgment by fraud and fraudulent suppression of the fact that Innoson Nig. Ltd. was paid the sum N1,406,515,845.98 in final liquidation of the judgment debt – implied that Innocent Chukwuma and Innoson Nigeria Ltd are dubious, dishonest, dishonorable, and untrustworthy, of questionable character, fraudster, criminally deceptive, cheats and obtaining money through false pretenses.

The co-claimants insisted that GT Bank has injured their reputation, moral character, credibility, office, vocation and trade and demanded N400billion in damages; N100billion exemplary damages; N100billion for injury to feelings – mental pains and anxiety; N150billion for injury to reputation and N50billion general damages.

Acclaims

Innocent was made honorary Life Vice president of the Nigeria Association of Chambers of Commerce, Industry, Mines and Agriculture on 23rd of November, 2013, and is also a grand fellow of the Nigerian Institute of Strategic Management.

He sits on the board of IVM Innoson Group of Companies and is a member of the Manufacturer Association of Nigeria.

He also has on his shelf the Meritorious Awards by Nigerian Society of Engineers (NSE) 2008, Award of Excellence, Manufacturers Association of Nigerian (MAN) 2008 and also serves as a Chancellor at Imo State University, Owerri.

He received Honorary Doctorate Degree in Business Administration by the University of Nigeria in 2014, another from the Enugu state university of science and technology, and also a Doctor of Management from the Nigerian Defence Academy Kaduna.

He also received the Auto Personality of the Year by Guild Motoring Correspondence in 2013, Professor Barth Nnaji Prize for Technology at Igbo Awards in 2017, Best Customer by Bank of Industry, 2011, Officer of the Order of the Niger (OON) 2008 and Officer of the Federal Republic (OFR) 2011, among others.

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Coronavirus

COVID-19 Update in Nigeria

On the 7th of August 2020, 443 new confirmed cases and 6 deaths were recorded in Nigeria.

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The spread of novel Corona Virus Disease (COVID-19) in Nigeria continues to record significant increase as the latest statistics provided by the Nigeria Centre for Disease Control reveal Nigeria now has 45,687 confirmed cases.

On the 7th of August 2020, 443 new confirmed cases and 6 deaths were recorded in Nigeria, having carried out a total daily test of 3,835 samples across the country.

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To date, 45,687 cases have been confirmed, 32,637 cases have been discharged and 936 deaths have been recorded in 36 states and the Federal Capital Territory. A total of 310,729 tests have been carried out as of August 7th, 2020 compared to 306,894 tests a day earlier.

COVID-19 Case Updates- 7th August 2020,

  • Total Number of Cases – 45,687
  • Total Number Discharged – 32,637
  • Total Deaths – 936
  • Total Tests Carried out – 310,729

According to the NCDC, the 443 new cases were reported from 19 states- Plateau (103), Lagos (70), FCT (60), Ondo (35), Edo (27), Rivers (27), Kaduna (20), Osun (19), Borno (18), Oyo (18), Kwara (11), Adamawa (9), Nasarawa (7), Gombe (6), Bayelsa (4), Imo (4), Bauchi (2), Ogun (2) and Kano (1).

Meanwhile, the latest numbers bring Lagos state total confirmed cases to 15,697, followed by Abuja (4,301), Oyo (2,843), Edo (2,367), Rivers (1,938), Kano (1,609), Delta (1,557), Kaduna (1,550), Ogun (1,430), Plateau (1,397), Ondo (1,278), Enugu (880), Ebonyi (838), Kwara (826), Katsina (746), Borno (652), Gombe (626), Abia (625), Osun (605), and Bauchi (576).

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Imo State has recorded 476 cases, Nasarawa (367), Benue (356), Bayelsa (346),  Jigawa (322), Akwa Ibom (234), Niger (226), Adamawa (185), Ekiti (159), Sokoto (154), Anambra (142),  Kebbi (90), Zamfara (77), Taraba (72), Cross River (68), Yobe (67), while Kogi state has recorded 5 cases only.

READ ALSO: COVID-19: Western diplomats warn of disease explosion, poor handling by government

Lock Down and Curfew

In a move to combat the spread of the pandemic disease, President Muhammadu Buhari directed the cessation of all movements in Lagos and the FCT for an initial period of 14 days, which took effect from 11 pm on Monday, 30th March 2020.

The movement restriction, which was extended by another two-weeks period, has been partially put on hold with some businesses commencing operations from May 4. On April 27th, 2020, Nigeria’s President, Muhammadu Buhari declared an overnight curfew from 8 pm to 6 am across the country, as part of new measures to contain the spread of the COVID-19. This comes along with the phased and gradual easing of lockdown measures in FCT, Lagos, and Ogun States, which took effect from Saturday, 2nd May 2020, at 9 am.

On Monday, 29th June 2020 the federal government extended the second phase of the eased lockdown by 4 weeks and approved interstate movement outside curfew hours with effect from July 1, 2020. Also, on Monday 27th July 2020, the federal government extended the second phase of eased lockdown by an additional one week.

On Thursday, 6th August 2020 the federal government through the secretary to the Government of the Federation (SGF) and Chairman of the Presidential Task Force (PTF) on COVID-19 announced the extension of the second phase of eased lockdown by another four (4) weeks.

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READ ALSO: Bill Gates says Trump’s WHO funding suspension is dangerous

DateConfirmed caseNew casesTotal deathsNew deathsTotal recoveryActive casesCritical cases
August 7, 202045687443936632637121147
August 6, 202045244354930332430118847
August 5, 2020448904579271732165117987
August 4, 2020444333049101431851116727
August 3, 202044129288896820663225707
August 2, 202043841304888520308226457
August 1, 202043537386883420287225677
July 31, 202043151462879119565227077
July 30, 202042689481878519270225417
July 29, 202042208404873519004223317
July 28, 202041804624868818764221727
July 27, 202041180648860218203221177
July 26, 202040532555858217374223007
July 25, 2020399774388561116948221737
July 24, 2020395395918451216559221357
July 23, 2020389486048332016061220547
July 22, 202038344543813815815217167
July 21, 202037801576805415677213197
July 20, 2020372255628011215333210917
July 19, 2020366635567891115105207697
July 18, 202036107653778614938203917
July 17, 202035454600772314633200497
July 16, 202034854595769914292197937
July 15, 202034259643760613999195007
July 14, 2020336164637541013792190707
July 13, 202033153595744413671187387
July 12, 2020325585717401613447183717
July 11, 2020319876647241513103181607
July 10, 2020313235757092012795178197
July 9, 202030748499689512546175137
July 8, 2020302494606841512373171927
July 7, 2020297895036691512108170127
July 6, 202029286575654911828168047
July 5, 2020287115446451111665164017
July 4, 202028167603634611462160717
July 3, 2020275644546281211069158677
July 2, 2020271106266161310801156937
July 1, 2020264847906031310152157297
June 30, 202025694561590179746153587
June 29, 20202513356657389402151587
June 28, 20202486749056579007149957
June 27, 20202407777955848625148947
June 26, 20202329868455458253144917
June 25, 20202261459454977822142437
June 24, 20202202064954297613138657
June 23, 20202137145253387338135007
June 22, 20202091967552577109132857
June 21, 202020242436518126879128477
June 20, 202019808661506196718125847
June 19, 202019147667487126581120797
June 18, 20201848074547566307116987
June 17, 202017735587469145967112997
June 16, 202017148490455315623110707
June 15, 20201665857342445349108857
June 14, 202016085403420135220104457
June 13, 20201568250140785101101747
June 12, 20201518162739912489198917
June 11, 2020145546813875449496737
June 10, 20201387340938217435191407
June 9, 2020134646633654420688937
June 8, 2020128013153617404084007
June 7, 20201248626035412395981737
June 6, 2020122333893429382680657
June 5, 20201184432833310369678157
June 4, 2020115163503238353576467
June 3, 2020111663483151332975227
June 2, 20201081924131415323972667
June 1, 20201057841629912312271579
May 31, 20201016230728714300768687
May 30, 2020985555327312285667267
May 29, 202093023872612269763447
May 28, 202089151822595259260647
May 27, 202087333892545250159787
May 26, 2020834427624916238557107
May 25, 202080682292337231155247
May 24, 202078393132265226353607
May 23, 202075262652210217451317
May 22, 2020726124522110200750337
May 21, 2020701633921111190748987
May 20, 202066772842008184046377
May 19, 202064012261921173444757
May 18, 202061752161919164443407
May 17, 202059593881826159441837
May 16, 202056211761765147239737
May 15, 202054452881713132039544
May 14, 202051621931683118038154
May 13, 202049711841646107037374
May 12, 20204787146158695936704
May 11, 202046412421521090235894
May 10, 202043992481421777834794
May 9, 202041512391271174532784
May 8, 202039123861181067931154
May 7, 20203526381108460128184
May 6, 20203145195104553425071
May 5, 2020295014899548123704
May 4, 2020280224594641722912
May 3, 2020255817088240020702
May 2, 20202388220861735119522
May 1, 20202170238691035117512
April 30, 2020193220459731715562
April 29, 2020172819652730713692
April 28, 2020153219545425512322
April 27, 20201337644102559942
April 26, 20201273914152399942
April 25, 20201182873632229252
April 24, 202010951143312088552
April 23, 20209811083231977532
April 22, 2020873912931976482
April 21, 20207821172631975602
April 20, 2020665382311884662
April 19, 2020627862221704362
April 18, 2020541482021663562
April 17, 2020493511841593172
April 16, 2020442351311522772
April 15, 2020407341211282672
April 14, 202037330111992632
April 13, 202034320100912422
April 12, 20203235100852282
April 11, 202031813103702382
April 10, 20203051770582402
April 9, 20202881471512302
April 8, 20202742260442262
April 7, 20202541661442042
April 6, 2020238650351982
April 5, 20202321851331942
April 4, 2020214540251850
April 3, 20202092542251800
April 2, 20201841020201620
April 1, 2020174352091630
March 31, 202013982091280
March 30, 2020131202181210
March 29, 2020111221031070
March 28, 20208919103850
March 27, 2020705103660
March 26, 20206514102620
March 25, 2020517102480
March 24, 2020444102410
March 23, 20204010112370
March 22, 2020308002280
March 21, 20202210001210
March 20, 2020124001110
March 19, 20208000170
March 18, 20208500170
March 17, 20203100030
March 16, 20202000020
March 15, 20202000020
March 14, 20202000020
March 13, 20202000020
March 12, 20202000020
March 11, 20202000020
March 10, 20202000020
March 9, 20202100020
March 8, 20201000010
March 7, 20201000010
March 6, 20201000010
March 5, 20201000010
March 4, 20201000010
March 3, 20201000010
March 2, 20201000010
March 1, 20201000010
February 29, 20201000010
February 28, 20201100010

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Business

Update: Fuel scarcity looms as NUPENG directs Tanker drivers to withdraw services in Lagos

This was disclosed in a press statement by NUPENG on Friday, August 7, 2020.

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The scarcity of petroleum products appears to be looming in Lagos as the leadership of Nigerian Union of Petroleum and Natural Gas Workers (NUPENG) has directed its members to withdraw its services in Lagos with effect from Monday, August 10, 2020.

This is due to the failure of government authorities to address the various issues that have been causing serious pains and harrowing experience on the petroleum tanker drivers in the state for several months now.

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This was disclosed in a press statement by NUPENG on Friday, August 7, 2020.

READ MORE: Why NUPENG threatened to ground Chevron’s operations

NUPENG in its statement revealed that the entire rank and file members of the Union are deeply pained and frustrated by the so many challenges being consistently faced by Petroleum Tanker Drivers in Lagos State.

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They said that they are left with no other option but to direct its members to withdraw their services in Lagos State until the State Government and other relevant Stakeholders address these critical. challenges.

The statement from NUPENG reads, ‘’The National Leadership of Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) has directed the withdrawal of services of Petroleum Tanker Drivers from Lagos State with effect from Monday, 10th August 2020 following the failure of various authorities in the State to address three major issues that have severely caused pains and harrowing experiences on the hapless Petroleum Tanker Drivers in the State for several months now.’’

‘’The entire rank and file members of the Union are deeply pained, frustrated and agonized by the barrage of these challenges being consistently faced by Petroleum Tanker Drivers in Lagos State and are left with no other option but to direct the withdrawal of their services in Lagos State until Lagos State Government and other relevant Stakeholders address these critical challenges.’

READ MORE: NUPENG, PENGASSAN support FG’s ban on fuel supply to border petrol stations

The Union reiterated that It is sad and disheartening to note that they had made several appeals and reports to Lagos State Government and the Presidential Task Force for the decongestion of Apapa on these challenges but all to no avail.

They said that they cannot afford to fold their arms while their members are being consistently and continually extorted, intimidated, harassed and victimized by different groups and segments in Lagos.

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