Business
Cement prices, BUA Cement needs to apologize to Nigerians
Cement prices, BUA Cement needs to apologize to Nigerians
Global News Reports That a cross-section of Nigerians has expressed reservations about the inability of BUA Cement to keep to its promise of reducing the price of cement in the country. This is coming on the heels of the statement credited to the Chairman of BUA Cement, Abdul Samad Rabiu, where he stated that cement dealers frustrated his company’s plan to sell cement at N3,500 per bag to Nigerians.
Speaking at the 8th Annual General Meeting of the company in Abuja, Rabiu said that while his company sold over a million tons of cement to dealers at N3, 500, per bag, with the intention that they would pass the benefits to end-users, the dealers sold a bag of cement to consumers at between N7000 and N8,000. According to him, BUA Cement could not stop the dealers whom he said made huge profits from the high margin because the company had no control over prices in the open market. He added that the Naira devaluation and the fuel subsidy removal also played roles in making the policy unsustainable.
However, some stakeholders faulted the position of the chairman of BUA Cement stating that he played to the gallery when he made the statement that cement would be sold at 3,500 per bag.
According to Kayode Animashaun, a major player in the cement business, he stated that cement manufacturers in the country have deliberately refused to bring down the prices of cement and instead elected to play to the gallery.
“ The recent excuse advanced by the chairman of Bua Cement is unacceptable. There is no way dealers would buy at 3,500 and sell at 8,000. It is a feeble attempt at giving a dog a bad name to hang it. We understand that gimmick they play most time. It is indeed a regime for de-marketing among the major players in the industry. The big players want to outshine each other and one of the ways they do it is to make statements in the public that are not in tune with the reality on the ground.”
“ It is a fraudulent regime and one that is laced with deceit. I can bet that Bua Cement played to the gallery and possibly gained market share. They knew they were not going to implement the proposed price regime but they saturated the media space with the falsehood that cement was going to be sold at 3,500 per bag.
This was corroborated by Ahmed Magaji, a stakeholder in the cement distribution value chain across the country. According to him, what is happening is a price war between the major players in the sector.
“ There is no way dealers would get a bag of cement for 3,500 and sell for 8,000. It is absurd. don’t forget that most of us dealers buy on credit and remit monies when we come for a new stock. Now here is the trick, do you think the manufacturer would continue to sell to us when they know that we are selling at 8,000? The position of Bua cement does not add up. They are trying to shift blame, which is very common with these businessmen.”
According to a source who works for one of the major cement companies in Nigeria, he stated that there is an ongoing price war between the major players in the sector. He further added that these players are out to maximize profit and it is common for them to push certain narratives in the public space.
“The case of BUA cement is one. They played a fast one on unsuspecting members of the general public, and they succeeded. The preference for BUA cement rose astronomically. But now, people are beginning to ask questions and the chairman had to come up with a statement blaming the cement dealers. We know how it works in this industry. BUA Cement played a fast one. But let’s see how long they can sustain it.”
In a similar vein, a cross-section of dealers interviewed thought that BUA cement owes Nigerians apologies for their inability to keep to their words with regards to cement selling for 3,500 per bag. A source who pleaded anonymity stated the position of BUA cement smacks of a mockery of the present administration.
“I had expected the management of BUA Cement to come out clean instead of shifting blame. They knew they were playing games when they made the announcement that cement was going to be sold for the amount they quoted. Now that the chicken has come home to roost they are in a tight corner and the best they could do is to shift blame to cement dealers.”
“I think the management of BUA Cement owes Nigerians apologies if they can’t achieve the 3,500 price for a bag of cement. That is the rational thing to do in this circumstance.”
It would be recalled that BUA Chairman Abdul-Samad Rabiu in 2023 promised that his company would sell a bag of cement at 3500 in 2024 after meeting President Bola Ahmed Tinubu.
Dangote Refinery: Where National Interest Supercedes Personal Gain
By Best Agbese
Global News Reports That The Dangote Refinery and Petrochemical Company, located in Lekki, a suburb of Lagos, is seven times the size of Victoria Island, another high-end area in Lagos State. The refinery boasts of more than 350 concrete bridges, a port for oil vessels, and approximately 5,000 neatly built apartments for its staff. The refinery also incorporates the largest granulated urea fertilizer complex in Africa and sits on 500 hectares of land.
Considering the gigantic scale of the newest refinery in the world, it would be apt to submit that Alhaji Aliko Dangote, the founder and CEO of the Dangote Group, is the epitome of courage, resilience, and patriotism. His readiness to contribute to the overall development and growth of the nation’s economy is evident in his numerous impactful interventions at critical moments in our nationhood.
Sincerely speaking, it takes great courage for an individual to envision a world-class gigantic project like the Dangote Refinery. In his case, Aliko Dangote not only visualized the possibility of constructing one of the world’s largest refinery plants but also saw it through to realization. For a businessman and entrepreneur to venture into such a capital-intensive project in an unpredictable business environment marked by policy flip-flops and unhealthy politicization is quite remarkable.
Only a patriotic investor who is deeply committed to the unity and economic growth of his country can attempt such a bold step. With this historic move in the oil sector, Aliko Dangote stands alone in the pantheon of patriotic business leaders in Nigeria.
One very notable fact is that the rising price of petroleum products in Nigeria has resulted in significant hardship, particularly for the average Nigerian. While the current hardship caused by the fuel subsidy removal, intended to address long-term economic challenges, has had a detrimental impact on many, the immediate effect of the subsidy removal policy has further exacerbated the wealth gap between the rich and the poor.
In the context of this harsh reality, one can conclude that the Dangote Refinery and Petrochemical Company represents a glimmer of hope for Nigerians. As one of the largest refineries in the world, located in Nigeria, the refinery has the potential to refine petroleum products locally, eliminating the need for costly imports that have reduced Nigeria to a “beggar nation” over the past decades.
Local production of Premium Motor Spirit (PMS) could reduce pricing, as there would be no need to factor in high landing costs associated with fuel importation. The Dangote Refinery, at full capacity, will process 650,000 barrels of crude oil daily, making it competitive with the United States’ largest refinery and over 50% bigger than the largest refinery in Europe.
Although the refinery is intended to refine domestically produced crude to bolster the heavily oil-dependent local economy, which has been marked by crises in recent times, it also can refine foreign crude. While the exit of Shell Exploration Company and other major international oil companies from the domestic market may pose challenges for the Dangote Refinery in terms of crude oil supplies and achieving its goal of changing the narrative in the nation’s oil sector, it is also important to acknowledge that the sheer scale of the Dangote Refinery will nonetheless turn Nigeria into an “oil market juggernaut”.
According to a recent New York Times report, although the refinery has yet to debut in the domestic and international market space, the Dangote Refinery is already making waves in the global market and has affected major market indicators and determinants. Aliko Dangote, the billionaire Nigerian businessman who spearheaded the refinery’s construction and development, is well aware of the challenges facing the nation’s oil and gas sector.
He has repeatedly reiterated his commitment to driving the troubled sector towards efficiency and reliability. His mission is to make a positive impact on the capacity and fortunes of local refineries across the country. To many, including cynics who doubted that an individual could successfully build one of the world’s largest refineries, the knowledge of the refinery’s impact on the global energy index must have generated a highly positive response.
It is noteworthy that the Nigerian economy, which has experienced slow growth over the last 20 years, is set to witness a dramatic turnaround in the coming months. The positive impact of the Dangote Refinery on the nation’s economy will translate to a better standard of living for every Nigerian. It will reflect directly on Nigeria’s foreign reserve, reducing pressure on the Naira and stabilizing commodity and fuel prices.
Certainly, the Dangote Refinery and Petrochemical Company is a game-changer for Nigeria, meeting domestic needs and producing a surplus for export. Already, the refinery has resumed production of high-quality Premium Motor Spirit (PMS), which is set to enter the domestic market. Aviation fuel and other products are expected to be rolled out into both domestic and international markets within September.
Candidly, Aliko Dangote has put many naysayers to shame. They were wondering how possible it would be for an individual to accomplish what a country or a continent could not achieve. In a nutshell, the Dangote Refinery and Petrochemical Company symbolizes not only the strength and potential of Nigeria’s industry but also the dedication, patriotism, and vision of one of Nigeria’s most esteemed business leaders, Alhaji Dr. Aliko Dangote.
Therefore, it is succinctly true to admit with all sense of patriotism that although Aliko Dangote is not a saint, he has given Nigerians something to be proud of as a country. The Dangote Refinery and Petrochemical Company may become what Toyota is to Japan and what Citroen is to France – a brand and a source of pride.
Agbese is an oil and gas expert based in Dundee, United Kingdom.
BREAKING! Opay Begins Charging Of N50 Electronic Transaction Fee
Global News Reports That OPay is set to apply a transfer fee of N50 for transactions exceeding N10,000.
OPay has introduced a new fee for electronic transfers into both personal and business accounts, in accordance with the regulations set forth by the Federal Inland Revenue Service.
Beginning September 9, 2024, there will be a one-time charge of N50 for transfers of N10,000 or more.
On Saturday, OPay communicated to its valued customers:
“Dear valued customers, please be informed that starting September 9, 2024, a one-time fee of N50 will be applied for electronic transfer of N10,000 and above paid into your personal or business account in compliance with the Federal Inland Revenue Service regulations.”
Business
Concerned Citizens Write US Govt over NNPCL, Kyari’s Violation of Sanctions on Russia Crude-Oil
*Concerned Citizens Write US Govt over NNPCL, Kyari’s Violation of Sanctions on Russia Crude-Oil
A group of concerned Nigerian citizens has petitioned the US government to investigate and sanction the Nigerian National Petroleum Company Limited (NNPCL) and its CEO, Mele Kyari, for allegedly violating sanctions on Russian crude oil.
In a letter to the US Department of the Treasury’s Office of Foreign Assets Control (OFAC), the group claims that NNPCL, under Kyari’s leadership, has been importing Russian crude oil and petroleum products above the price cap set by the Price Cap Coalition, comprising the US, G7, EU, and Australia.
The Concerned Citizens on Economic Reform Nigeria (CCERN) alleges that NNPCL has been blending petroleum products in Malta with Russian crude oil sourced above the $60 per barrel threshold, resulting in a violation of the sanctions.
They further claim that the transactions involved amount to over $2.08 billion, enabling Russia to earn substantial revenue to fund its war efforts.
“The breach of the sanction is eing led by one Mr Meie Kolo Kyari in his capacity as the Group Chief Executive Officer of the NNPCL,” the letter co-signed by Comrade Tijani Ibrahim and Ambassador Fatima Abubakar said.
“Our group was flagged off to the breach in the course of a price tracking to confirm if Nigerians are aying more for petrol than the international benchmark prices since the country is now dependent 1 importation to meet domestic demands.
“We found that NNPLC, in connivance with Mr Kyari’s associates, has an arrangement for blending petroleum products in Malta before shipping them to Nigeria. The transaction involved in the span of the last year is quoted to be worth more than $2.08 billion, which effectively makes it possible for Russia to continue earning substantial revenue to oil its war machine”.
The group also names other individuals and entities allegedly involved in the violation, including Matrix Energy, Poly Pro Trading DMCC, and senior officials of NNPCL.
They claim that the proceeds from these illegal activities are being used to promote Russian influence in West Africa and finance anti-Western protests.
The Concerned Citizens on Economic Reforms, Nigeria, urges the US to investigate and sanction those involved, including Kyari, NNPCL staff, and other entities, to prevent further violations and protect global interests.
“The widespread protests during the first half of this month were in part financed with proceeds of Mr Kyari’s sidestepping of the Price Cap Coalition sanctions, “ the letter added.
“The funds were specifically paid to make Russian flags and mobilize persons displaying the flags while chanting pro-Russian and anti-West slogans.
“The violation of the sanctions by Mr Kyari and his associates, through the willful disregard for the Price Cap, therefore, has consequences that spill beyond the Russo-Ukrainian axis as it risks bolstering Russia’s influence in West Africa and spiralling the region into conflicts that would undermine the interests of Nigerians and those of the United States.
“The Concerned Citizens on Economic Reforms, Nigeria, being conscientious, is desirous of aligning with the United States’ thoughts of seeing the world advance in a positive direction with no room for dictatorships, which is attainable only when persons and entities comply with globally imposed sanctions.
“We, therefore, call on the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) to urgently investigate Mr Mele Kyari – CEO of NNPCL, other staff of NNPCL linked to the flagged transactions, Mr Abdulkabir Adisa Aliu, Matrix Energy and its vessels: Matrix Pride, Matrix Triumph, Matrix S.ILU, and ROMEO as well as Poly Pro Trading DMCC as persons and entities of interest in the violation of sanctions imposed on Russia by the Price Cap Coalition.“
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