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Business

FCCPC reaction puts Shoprite exit from Nigeria in doubt

The FCCPC has downplayed viral media reports of retail giant, Shoprite exiting Nigeria.

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Shoprite’s sales drop by 8.1% in Nigeria in H2 2019 over Xenophobic attacks

The Federal Competition and Consumer Protection Council (FCCPC) has said it is not aware that retail giant, Shoprite, is exiting Nigeria, but that there is a pending application for a merger/acquisition involving it.

This follows recent media reports that Shoprite Holdings Limited has announced that the sale of its Nigerian outlet to new investors has been concluded and is only awaiting the approval of FCCPC.

This disclosure was made by the Chief Executive Officer of FCCPC, Dr Babatunde Irukera, during a telephone conversation with Vanguard.

READ: Shoprite controls 22% of Nigeria’s formal retail, future to be driven by indigenous retailers

What the Chief Executive Officer of FCCPC is saying

Irukera said, “We do not know whether Shoprite is exiting Nigeria or not, but we have a pending application for a merger/acquisition by a buyer.

“The media can report anything, what I know is that there is a pending merger/acquisition application in my office. Merger/acquisition applications do not suggest whether a company is leaving or not. What I know is that we have an application for merger/acquisition here.”

In case you missed it

It can be recalled that some media reports a few days ago alleged that Shoprite has finally sold its 100% stake in its Nigeria subsidiary and is set to exit Nigeria by December 2021.

This was coming after an earlier report in August 2020 that Shoprite was exiting operations in Nigeria due to some harsh government policies and a re-evaluation of its operating model, although this was denied by Shoprite through its Public Relations agency in Nigeria, Chastex Consult.

Sigma Pensions

However, the name(s) of the buyer(s) have not been revealed and efforts made to speak with Shoprite PR agency failed as telephone calls did not go through.

While denying the rumoured exit, Shoprite said, “Shoprite is not leaving Nigeria. Who leaves a $30 billion investment and closes shop? We are only just opening to Nigerian investors who we have also been talking to just before now. We are not leaving, who leaves over a $30 billion investment and close shop. It doesn’t sound right. We only just gave this opportunity to Nigerian investors to come in and also help drive our expansion plan in Nigeria. So we are not leaving.”

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Chike Olisah is a graduate of accountancy with over 15 years working experience in the financial service sector. He has worked in research and marketing departments of three top commercial banks. Chike is a senior member of the Nairametrics Editorial Team. You may contact him via his email- [email protected]

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Business

CBN includes sugar, wheat on FX restriction list

The CBN is set to include sugar and wheat in the forex restriction list.

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CBN forex restrictions on food itemsCBN approves new cheque standard for banks

The Central Bank of Nigeria has announced plans to place sugar and wheat on its FX restriction list.

The plan was disclosed by the apex bank via its verified Twitter handle in a statement credited to the CBN governor, Godwin Emefiele.

The tweet stated: “Sugar and Wheat to go into our FX restriction list. We must work together to produce these items in Nigeria rather than import them. #Emefiele.”

It would be recalled that over the years, the CBN has been reviewing its list of restricted food items to include more items, with the most recent being the addition of maize, a widely-consumed staple food in the country.

What you should know

  • The CBN governor, Mr Godwin Emefiele, had earlier (on Thursday) given this hint while on an inspection visit to the proposed $500 million sugar processing facility in Nasarawa state, belonging to Dangote Sugar.
  • In 2015, the CBN listed 41 items that had been placed on its FX restriction list citing that the move was necessary to conserve the nation’s foreign reserve and boost local production of the items on the restriction list.
  • Some of the items which made the 2015 list are margarine, poultry and eggs, rice, and cement.
  • In 2020, the apex bank included maize in its FX restriction list as it directed all authorised dealers to immediately discontinue the processing of Forms M for maize/corn importation into the country.
  • Nairametrics had also earlier explained in its publication following the new policy shift, that the government’s premise for deciding to restrict FOREX on food is faulty, especially since Nigeria has not attained full food security and the agricultural sector is still struggling.

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Business

FG signs new Sustainable Development Goals agreement with UN

The Agreement is for new development cooperation with initiatives towards achieving Sustainable Development Goals set in the UN Agenda 2030.

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Xenophobia, FG reacts to inclusion of Nigeria on religious freedom blacklist by United States

The Nigerian Government has signed a deal with the United Nations to develop new cooperation towards achieving Sustainable Development Goals.

This was disclosed by the Minister of Foreign Affairs, Geoffrey Onyeama, in a statement on Thursday after the agreement was signed with the United Nations Office for Project Services, UNOPS, represented by Ifeoma Charles.

The Minister said, “On behalf of the Nigerian Government, I signed an agreement with the UNOPS represented by Ifeoma Charles Multi-Country Office Rep. The Agreement is for a new development cooperation with initiatives towards achieving Sustainable Development Goals set in the UN Agenda 2030.”

What you should know 

The 17 Sustainable Development Goals are:

No Poverty; Zero Hunger, Good Health, and Well-being; Quality Education; Gender Equality; Clean Water and Sanitation; Affordable and Clean Energy; Decent Work and Economic Growth; Industry, Innovation and Infrastructure; Reducing Inequality; Sustainable Cities and Communities; Responsible Consumption and Production; Climate Action; Life Below Water; Life on Land; Peace, Justice and Strong Institutions; and Partnership for the Goals.

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