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Nigerian automaker raises $9 million despite protest against electric car in Nigeria

JET Motor Company has raised $9 million from foreign investors as it intensifies the creation of electric vehicles in Nigeria. 

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Nigerian electric car manufacturer raises $9 million despite protest against electric car in Nigeria

As popular brands shy away from the production of electric vehicles in Nigeria, JET Motor Company, a Nigerian-based automobile manufacturer, has raised $9 million from foreign investors as it intensifies the creation of electric vehicles in Nigeria.

The investors that took part in the JET Motor Company fundraising were Canadian-based Africa Development Capital, which is known to provide access to liquidity for various ventures taking shape in Africa, including logistic firms, farmers and small and medium enterprises.

Nigerian electric car manufacturer raises $9 million despite protest against electric car in Nigeria

Other investors that participated in the funding round included Greatman Legend and a number of Asian investors. The $9 million fund is expected to support research and development (A&R) for electric vehicles which Jet Motor is developing.

The electric vehicle called Jet EV already has a prototype, which has been put to use for a 300km journey of 300km (distance from Lagos to Benin), and the trip was achieved with a single charge. It was learnt that Jet Motor would engage GIG Logistics pickup centres for charging points. This is part of an agreement which includes Jet Motor providing GIG Logistics with 50 JET EV vehicles over the next 2 years.

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[READ MORE: Field Intelligence raises $3.6 million to take advantage of pharmacy cravings in Nigeria)

It is, however, unsure when the vehicle assembly and distribution company will break even as the Nigerian market is very much dominated by fuel-driven vehicles which have a grip over motorists in Nigeria. Also, unlike other countries, the Nigerian government has not decided when it intends to switch to electric vehicles, further affecting the penetration of EVs within the country.

The last time the subject was raised at the Senate by the former lawmaker, Ben Bruce, the National Assembly kicked against it. Bruce had introduced the Electric Car bill in April last year which was basically seeking that the National Assembly approves the use of electric cars in Nigeria.

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The bill aimed to phase out the use of petroleum/diesel vehicles by 2035, to be replaced by electric cars. The reason for the bill was to encourage the use of modern technology, de-emphasise on oil consumption and also reduce air pollution.

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Nigerian electric car manufacturer raises $9 million despite protest against electric car in Nigeria

READ ALSO: How Tech is Disrupting Nigeria’s Transport Ecosystem – Part 4 (Season Finale)

Nigeria is not ready for such? Nigerians on Twitter “dragged” Bruce because they felt that his proposed bill was a misplaced priority. Some people specifically questioned the need for electric cars in a country that cannot boast of 24 hours electricity supply, while some said the Senator’s proposed Electric Car bill showed how disconnected he was to the people he was representing.

Despite Bruce argument ng that maintaining electric cars is cheaper than maintaining petrol-powered cars, the Senate rejected the Electric Car bill days after, during a plenary session, describing it as ‘irrelevant’.

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Olalekan is a certified media practitioner from the Nigerian Institute of Journalism (NIJ). In the era of media convergence, Olalekan is a valuable asset, with ability to curate and broadcast news. His zeal to write was developed out of passion to shape people’s thought and opinion; serving as a guideline for their daily lives. Contact for tips: [email protected]

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Financial Services

CBN to bar exporters with unrepatriated export proceeds from banking services

The CBN will from January 31, 2021 bar all exporters with unrepatriated export proceeds from accessing banking services.

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CBN to restrict foreign exchange on more food imports

The Central Bank of Nigeria (CBN) has announced the prohibition of all Nigerian exporters who are yet to repatriate their export proceeds, from banking services effective from January 31, 2021.

The apex bank had in an earlier circular warned that failure to repatriate exports within 90 days for oil and gas and 180 days for non-oil exports constitute a breach of the extant regulation.

Analysts believe that the directive is part of a monetary control mechanism by policymaker to maintain relative stability in the exchange rate, especially after the pandemic created a wide disparity between the official exchange and the parallel market rates, eliminating incidences of over-invoicing, transfer pricing, double handling charges, etc.

In lieu of this, all concerned exporters are urged to comply with the directive before the specified date.

What you should know

  • According to Bloomberg sources, the new directive applies to exports up until June last year.
  • In a bid to ensure prudent use of foreign exchange resources, the Central Bank of Nigeria had earlier instructed authorised dealers and exporters to only open forms M for letters of credit, bills for collection and other forms of payment

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Financial Services

Niger Insurance Plc gets shareholders nod to restructure business

Niger Insurance Plc has announced plans to restructure its insurance business into distinct but mutually dependent business entities.

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Edwin Igbiti

Niger Insurance Plc has obtained shareholders’ approval to restructure its insurance business into general, life and business insurance, with each segment to be structured as a separate legal entity.

This is part of the resolutions passed at the 50th Annual General Meeting of Niger Insurance Plc., held on 20th of January, 2021 at Peninsula Hotel in Lekki, Lagos.

The decision to restructure the company is in a bid to make it more efficient and profitable to stakeholders, especially as efforts are geared towards overturning a loss of about 1,1723.2% Year-on-Year, earlier made by the company in its last reported financial statement, Q2, 2020, as reported by Nairametrics.

Other key decisions reached at the 50th AGM include;

  • The re-appointment of Mr Ebi Enaholo and Mrs. Olufemi Owopetu as Directors of the company.
  • Acceptance of the presented financial statement for the year ended December 31, 2019 and the report of the audit committee, directors and auditors.
  • Directors were authorized to fix the remuneration of the auditors.
  • Directors were authorized to appoint external auditors to replace retiring auditors of the company.
  • The appointment of four individuals as members of the audit committee.
  • A decision to restructure the company’s business capital was also reached.

In case you missed it: The shareholders of Niger Insurance Plc in the 49th Annual General Meeting approved the decision by the company’s board to raise additional capital to the tune of N15 billion, in a bid to meet the revised recapitalization targets for general and life insurance companies.

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What you should know: The House of Representatives had in December 2020 directed NAICOM to suspend the mandatory deadline for the first phase of 50%-60% of the minimum paid-up share capital for insurance and reinsurance firms.

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Energy

Nigeria’s Qua Iboe crude exports resume as ExxonMobil lifts force majeure

ExxonMobil has lifted a force majeure on Nigeria’s Qua Iboe crude oil exports as production resumes.

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ExxonMobil has lifted a force majeure on Nigeria’s Qua Iboe crude oil export terminal, as crude exports resume for the first time in almost six weeks after a fire at the terminal halted operations.

This is according to a company spokesman yesterday, who confirmed the company had lifted force majeure on Qua Iboe crude loadings.

Qua Iboe production started to ramp up to normal levels of 200,000 b/d in the past week, according to sources, with the release of both the February and March loading programs.

The VLCC Dalia was also in the process of loading a 1-million-barrel stem at the Qua terminal since January 21, 2021, according to data intelligence firm Kpler. This will be the first export of Qua Iboe since December 15, 2020, after a fire hit the facility and injured two workers.

The company has been under pressure since the closure and prices have taken a hit as a result of the disruption. S&P Global Platts last assessed the grade at a discount to Dated Brent of 50 cents/b, down from a premium against the benchmark in December.

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Bonny Light, a mainstay Nigerian crude which typically trades at roughly the same level as Qua Iboe, was last assessed 30 cents/b higher.

What they are saying

One trader said: “If you get a cargo of Qua now it could be 50 cents to a dollar below Bonny even – a January cargo is completely out of cycle and the reliability issues mean people won’t touch it.”

Another trader stated that: “[The return of Qua Iboe] is not what West African crude assessments (WAF) differentials needed.”

What you should know

  • Qua Iboe is one of Nigeria’s largest export grades, and is very popular among global refiners, with India, the US, Canada, Italy, Spain, Indonesia, and the Netherlands being key buyers.
  • Qua Iboe is light sweet crude, which has a gravity of 36 API and sulfur content of 0.13%. The crude, produced from fields 20-40 miles off the coast of southeast Nigeria, is brought to shore at the Qua Iboe terminal via a seabed pipeline system.
  • Indian demand has steadied following a buying spree late last year, and European demand has been hit by renewed coronavirus lockdowns in the region.
  • Prices for Nigerian crude have suffered in recent weeks, even with lower supply due to the outage.
  • February and March loading programs have been issued for Qua Iboe averaging 169,643 b/d and 153,226 b/d respectively.
  • Production of this key grade ranged between 180,000-220,000 b/d in 2020, according to S&P Global Platts estimates.

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