Ikeja Hotel Plc – owners of Sheraton Hotel, has disclosed that the purported revocation of the company’s right of occupancy on its landed property situated at Opebi Gorge, Ikeja, Lagos, has the potential to impair the assets of the Group to the tune of N4.63 billion if the government succeeds.
This was disclosed by the Management of Ikeja Hotel Plc in a press release sent to the floor of the Nigerian Stock Exchange.
The press release partly reads,
“The Company received a letter dated October 15, 2020, from the Lagos State Government, purportedly revoking its right of occupancy on its land situated at Opebi Gorge, Ikeja, Lagos. The Company has taken legal action to contest this revocation. However, the revocation has the potential to impair the assets of the Group to the tune of N4. 63 Billion if the government succeeds.”
What this means
If the Lagos State Government succeeds in revoking the company’s right of occupancy on the land, it poses a potential of affecting their assets as they expect an impairment of N4.63 Billion.
In the same vein, the profitability of the company is expected to suffer and wreak economic havoc on its core business segment. Hence, the revenue-generating capacity of the company would be constrained, as it recovers from the effects of the COVID-19 pandemic.
Due to the continued effects of the COVID-19 pandemic, the company recorded a loss after tax of N1.4 billion in the third quarter of 2020.
Why this matters
The current reality is likely to affect the dividends accruable to the shareholders of Ikeja Hotel Plc, as the company may not declare dividends for the year ended December 31, 2020.
ASUU says union has not yet agreed to call off strike
ASUU has denied media reports that the union agreed to call off its 8-month old strike action.
The Academic Staff Union of Universities (ASUU) has denied media reports that the union agreed to call off its 8-month old strike action.
There was a bit of relief when news emerged that the strike action has been called off, after the latest meeting between ASUU top echelons and the Federal Government negotiation team, led by the Minister of Labour and Employment, Senator Chris Ngige, on Friday.
According to a report from Vanguard, the ASUU President, Prof. Biodun Ogunyemi, said he is not aware of any agreement to call off the strike. However, he noted that it was agreed at the meeting that the union would convey government’s message to their various organs and then report back to the government.
Ogunyemi said, “I am not aware of that. All I know is that we had a meeting and we are going to report to our members. But, I don’t know about suspension of the strike.”
It was also reported that ASUU reached an agreement with the Federal Government after the latter increased its offer for Earned Allowances and funding for the revitalization of public universities from N65 billion to N70 billion.
However, ASUU in a tweet insisted that the funding should be implemented before the union suspends its strike action.
#GoodNews The Academic Staff Union Of Universities ASUU, has accepted a newly pledged amount N70 billion to be released by the FG.
The union however insisted that the funding should be implemented before the strike would be suspended.
— Official_ASUU (@ASUUNGR) November 28, 2020
What you should know
Nairametrics earlier reported that ASUU had called off its 8-month-long strike. It said that the union took the decision after it agreed to accept government’s total payment of N70 billion and that the payment of their outstanding salaries must not be done through the Integrated Personnel Payroll and Information System (IPPIS).
ASUU embarked on strike in March 2020, following its disagreement with the Federal Government over the funding of the universities and implementation of the IPPIS, which according to the union, negates the autonomy policy for the universities.
ASUU, however, has its own developed and preferred payment platform, University Transparency and Accountability Solution (UTAS), which the government said it is looking into.
Export of our products in West African sub-region now less competitive – MAN
President of the Manufacturers Association of Nigeria has lamented the less competitive nature of made-in-Nigeria products.
The export of made-in-Nigeria products in the West African sub-region has become less competitive according to the President, Manufacturers Association of Nigeria (MAN), Mansur Ahmed. He made this remark in a statement seen by Nairametrics.
According to Ahmed, MAN members are losing market share daily to other African countries due to the closure of the border, as the sub-region has now become less competitive.
“Major manufacturers of beverages, polypropylene bags, tobacco, cement, toiletries, and cosmetics industries were losing markets they had worked very hard to secure in the West and Central African region.
“These manufacturers were hoping to leverage their market share to secure a strong position in the African Continental Free Trade Area, which kicks off in January 2021.
“Since the closure, the association has conducted a research with its members, the outcome is that some sectors had considerable increase in their productivity, while some sectors recorded sharp decline.”
He emphasized that the export group of the association clearly suffered huge losses due to logistics issues occasioned by the closure, as it takes an average of 8 weeks for the carriers to ship and truck goods within countries in the same region vis-à-vis trucking through the land border, which takes an average of 7 to 10 days.
“The increased traffic through our seaport as a result of the closure has increased the perennial congestion at the Apapa and Tin Can Island Ports, leading to greater challenges for exporters and increased demurrage cost, as well as other port levies,” he added.
What it means
Nigeria’s President Buhari recently signed the Africa Continental Free Trade Agreement exposing local Nigerian manufacturers to the regional competition.
- Whilst border closures impact positively on local markets due to restrictions on imports, it is unhealthy for local businesses looking to export across borders to regional African countries.
Explore Data on the Nairametrics Research Website
AfCFTA: African Customs Officials to draft free trade continental guidelines
Customs officials from around Africa gave a nod to the adoption of continental guidelines to facilitate the free flow of cross-border trade.
The African Continental Free Trade Area (AfCFTA) got closer to actualization on Saturday as Customs officials in the continent agreed to draft continental guidelines to enable the movement of goods, services and people for the agreement.
This was disclosed by the UN Economic Commission for Africa on Saturday evening.
“Liberalization of 90% of tariff lines will affect customs revenues. About 85% of import come from outside Africa, leaving about 15% from the continent, but the agreement is an opportunity for Nigeria to boost exports and production,” the Customs Service disclosed at the AfCFTA Sensitization Seminar.
The joint adoption of a continental customs guidelines comes a few weeks before the AfCFTA kicks off in January 2021.
The meeting organized by the African Union Commission (AUC) virtually was attended by Customs Chiefs in Africa, who agreed to implement measures to facilitate cross-border trading challenges heightened by the covid-19 pandemic.
The Director of Regional Integration and Trade, UN Economic Commission for Africa, Stephen Karingi, disclosed that the guidelines were drafted to boost coordination and implementations of a common customs guideline covering areas including transport and infrastructure and others.
“The aim is to have the continental guidelines in place early next year to reinforce start of trading under the AfCFTA,” he said.
The guidelines cover a number of new sub-sections to respond to specific gaps in existing rules, including the regulation of small-scale cross-border trade and cross-border trade by fishermen, gender considerations, and treatment of essential workers, including transport and humanitarian workers.
“Once in force, the continental guidelines are expected to ensure a harmonized approach to support smooth and safe trade amid the pandemic, including transit trade between RECs,” said Hussein Hassan, AUC’s Acting Director for Trade and Industry.
What you should know
The African Continental Free Trade Area (AfCFTA) is one of the biggest free-trade agreements in the world right now with a potential market of 1.2 billion people and a combined gross domestic product of $2.5 trillion
The Federal Government announced that it has ratified Nigeria’s membership to the African Continental Free Trade Area (AfCFTA), ahead of the December 5, 2020 deadline. The agreement goes into effect from the 1st of January 2021.
Nairametrics reported in September that the Nigerian Customs said the facilitation of trade requirements ranging from Pre-Arrival processes to Electronic Payments of duties would be important for the AfCFTA implementation for Nigeria.