The Central Bank of Nigeria has received the total sum of N19.48 billion as relief fund contributed to the account set up under the Private Sector Coalition Against COVID-19. This was disclosed in a statement issued by CBN’s Director, corporate communications, Isaac Okorafor, and seen by Nairametrics.
In the statement, Okorafor explained that 47 donors, which include individuals, banks and other corporates, have redeemed their pledges, while the apex Bank await an outstanding N3.4 billion from four others, as at April 3, 2020.
Some of the donors are CBN, which paid N2 billion; Aliko Dangote, President, Dangote Industries (N2 billion); Abdulsamad Rabiu, Chairman, BUA Sugar Refinery (N1 billion); Segun Agbaje, Group Managing Director, GTBank; Tony Elumelu, Chairman, United Bank of Africa, (N1 billion); Oba Otudeko, Chairman, First Bank of Nigeria, (N1 billion), and Jim Ovia, Chairman, Zenith Bank Plc, (N1 billion).
Others are Herbert Wigwe, Group Managing Director, Access Bank Plc; Femi Otedola, Chairman, Amperion Power Distribution Limited, (N1 billion); Raj Gupta, Chairman, African Steel Mills Nigeria Limited, (N1 billion); Modupe and Folorunsho Alakija of Famfa Oil Limited (N1 billion) and John Coumantatous of Flour Mills of Nigeria Plc (N600 million) among others.
Nairametrics had reported that the CBN plans to raise about N120bn to curb the coronavirus pandemic. CBN Governor, Godwin Emefiele, had said on behalf of the Bankers’ Committee and in partnership with the private sector led by Aliko Dangote Foundation and Access Bank, they had come together to form the Nigerian Private Sector Coalition Against COVID-19.
Okorafor explained that the development was the fulfilment of giving weekly update of the donations. He stated, “The coalition was full of appreciation to the individuals and corporate bodies for hearkening to the call championed by the CBN and the private sector.”
He tasked more Nigerians and corporate bodies to key into the coalition with a view to supporting the fight against the pandemic, stressing that Nigeria could overcome the scourge with all hands on deck.
Dangote Sugar lists additional ordinary shares on NSE
This arose from the Scheme of Merger between Dangote Sugar Refinery Plc and Savannah Sugar Company Limited (SSCL).
Dangote Sugar refinery Plc (DSR) a major subsidiary of the Dangote Group, has disclosed that it has listed 146,878,241 additional ordinary shares on the Nigerian Stock Exchange (NSE), as a result of the recent merger with Savannah Sugar Company Limited.
This disclosure signed by Head, Listings Regulation Department, Godstime Iwenekhai, was released during trading hours on Wednesday.
In line with the resolution passed at the Court-Ordered meeting of members of Dangote Sugar Refinery Plc on the 9th of July 2020, the additional shares listed on the Exchange arose from the Scheme of Merger between Dangote Sugar Refinery Plc and Savannah Sugar Company Limited (SSCL).
The additional 146,878,241 ordinary shares of 50 kobo listed are in consideration for the transfer by SSCL of all its assets, liabilities and business undertakings, including real property and intellectual property rights to DSR.
Hence, these shares shall be issued and allotted to the shareholders of SSCL (The Scheme Shareholders), in place of 162,756,968 ordinary shares held by the Scheme Shareholders in SSCL as at close of business on the terminal Date, when Dangote Sugar merged with Savannah Sugar Company Limited.
With the listing of the additional 146,878,241 ordinary shares, the total issued and fully paid-up shares of Dangote Sugar Refinery Plc has now increased from 12,000,000,000 to 12,146,878,241 ordinary shares of 50 kobo each.
Financial performance of Dangote Sugar Refinery Plc
Results for the first half of 2020 ended June 30, 2020, show revenue increased from N80.363 billion in the corresponding period of 2019 to N103 billion, as the company continue to benefit from border closure.
However, the profit of the company in H1 2020 was marginally higher than the profit in the corresponding period of 2019, as a result of higher raw material and consumables costs which rose faster than the increase in revenue.
Dangote Cement to extend clinker export to other African countries
Dangote is on course to sell more clinker across West Africa and commence shipment to Central Africa in H2 2020.
The Management of Africa’s largest cement producer, Dangote Cement Plc (DCP), disclosed during a virtual event yesterday, that the cement producer is set to commence clinker export to other African countries within the next few weeks.
The Acting Group CFO, Guillaume Moyen, made this known in his presentation at the joint virtual event with NSE, tagged “Facts Behind the Figures and Sustainability report’’ on Wednesday, 24th September, 2020.
Backstory: In its half-year report, the Management of Dangote disclosed that on 12 June 2020, the maiden shipment of 27.8Kt of clinker from Nigeria to Senegal left the Apapa Export Terminal.
The Management reiterated that the company is on course to sell more clinker across West Africa, and commence shipment to Central Africa in H2 2020. As it is in line with the Group’s vision of making West and Central Africa, cement and clinker independent, with Nigeria the main export hub.
The absence of limestone in much of West Africa, especially those in the coastal states, forces those countries to import bulk cement and clinker from Asia and Europe, and this is quite expensive.
However, Dangote Cement plans an ‘export–to–import’ strategy, positioning Nigeria as the main export hub of the continent, in a bid to serve West and Central Africa countries from Nigerian factories, making the region cement and clinker independent.
This is consistent with the Group’s vision of cementing Africa’s economic independence, as this would lead to lower clinker cost for pan-African operations, due to the proximity of Nigeria to these countries, as clinker landing cost will be cheaper.
The Management emphasized that this is possible, as Nigeria can serve a potential market of 15 countries, with over 350 million people, given the county’s relative abundance of quality limestone, especially in key Southern regions.
It is important to note that DCP’s clinker volume, according to figures contained in its H1 2020 results, has increased to 60Kt from 12kt in H1 2019, which translates to 400% increase.
The benefits of DCP’s export strategy
It is noteworthy that the innovative strategy of Dangote Cement Plc is expected to;
- Cement Africa’s economic independence, and contribute to the improvement of continental, regional, and intra-regional trade, as the company seeks to make regional and continental free trade agreement a reality.
- Ensure that the increase in production due to exports, leads to increase in capacity utilization in the Nigerian operation, and in turn, reduces fixed cost per tonnes.
- Increase foreign revenue exchange for the Nigerian operation, and offset foreign exchange risks.
- Reduce clinker landing cost, by leveraging on the proximity of Nigeria to other African countries.
Some of the benefits of our export strategy are Higher capacity utilization of our facilities; Ecowas benefits; Foreign exchange; and Lower clinker cost for Pan-Africa operations – @guillaumemoyen
#NSEhostsDangote https://t.co/TGd2N6JGZw pic.twitter.com/TvPGHunsb0
— The Nigerian Stock Exchange (@nsenigeria) September 23, 2020
Fidelity Bank to raise N50 billion in bonds in Q4 to refinance existing debts
The new issue will be made to redeem the existing N30 billion bond which was issued at 16.48%.
One of Nigeria’s second-tier commercial banks, Fidelity Bank Plc, has concluded plans to issue up to N50 billion ($131.3 million) in local bonds by the fourth quarter of 2020, in order to refinance existing debts as the yields drop.
The disclosure was made by the Chief Operations and Information Officer, Gbolahan Joshua, during an analyst call on Tuesday, September 8, 2020.
The crash of crude oil price globally, which was triggered by the novel coronavirus pandemic, has led to a decline in bond yields on the local debt market. This has made foreign investors to dump their local assets, leaving excess liquidity in the money market. This has also put a lot of pressure on the foreign exchange market as they look for dollars to repatriate their funds.
The Fidelity Bank top executive disclosed that the new issue will be made to redeem the existing N30 billion bond which was issued at 16.48%.
The global economic situation has seen yields in the debt market drop from as high as 18% about 3 years ago to less than 5% for the one-year treasury bill.
Fidelity Bank had revealed that it expected to see a 15% drop in profit this year when compared to 2019 result due to the coronavirus pandemic. Its profit after tax increased by 21.9% to N12 billion for the half-year 2020.
The second-tier bank also disclosed that its income declined in the second quarter due to a downward review of lending rates on loans as a result of the economic downturn.