Economy

My Target is to Feed 320m People in West Africa—Dangote

Published

7 years ago

10/10/2017

By Dipo Olowookere

Africa’s most successful business leader, Mr Aliko Dangote, has revealed that his target is to be able to provide food for the about 320 million people in West Africa.

The Nigerian business mogul made this known at the Financial Times’ 4th annual Africa Summit held at Claridges in London, when the editor in chief, Lionel Barber, conducted an extraordinarily candid public conversation with him in the presence of Nigerian Vice-President, Professor Yemi Osinbajo, Congolese presidential hopeful, Moise Katumbi, and about 300 business leaders.

Mastering detailed production statistics and highly-compelling demographics on promising sectors of the African economy, Mr Dangote outlined the key to his success: self-sufficiency and backward integration, a manufacturing strategy that extracts value from entire processes.

“We are not going to import anything any longer,” he said. “In Nigeria we are learning how to produce the entire value chain.” Once a heavy importer of fertilizer, Nigeria is now gearing up to produce 3M tonnes of locally manufactured fertilizer, transforming the nation into one of the largest fertilizer exporters in Africa.

In 2007 Nigeria was the second largest importer of cement after the US, Dangote reminded the audience of business elites. “Today, we have not only satisfied domestic needs; we have become a leading exporter of 6-7M tonnes of cement,” he added.

Diversifying into agriculture, Mr Dangote has eyes on the dairy industry motivated by the fact that “98% of all milk consumed in Nigeria is imported.”

Dangote Group has invested heavily in rice production by investing in local farmers and then offering to buy back the 1M tonnes at open market prices that they are growing.

“Soon, we will be able to feed not only Nigeria but the entire 320 million large West African market,” he added.

Mr Dangote’s business acumen was on rare exhibition as FT editor Lionel Barber himself seemed impressed with the business mogul’s quick familiarity with the nuts and bolts of his businesses.

“Are we going to continue to import everything?” Mr Dangote asked.

“Freight rates are now cheap but they will go up soon. A population of over 200 million cannot continue to import basic needs on a daily basis,” he answered himself.

By 2100, Mr Dangote stated Africa will represent 49 percent of the world’s population, up from 30 percent today. “If you don’t think big we won’t grow at all,” he said. “In Africa you have to play long-term.”

Aside from Nigeria, which African nations do you think are good growth opportunities? Barber asked Mr Dangote. “Aside from Nigeria?” the business leader repeated and smiled. “I’d have to pick Nigeria. I am a big fan of Nigeria. We are only using 8 percent of our land.”

Economy

Naira Trades N1,533/$1 at Official Market, N1,650/$1 at Parallel Market

Published

3 minutes ago

14/12/2024

Adedapo Adesanya

By Adedapo Adesanya

The Naira appreciated further against the United States Dollar at the Nigerian Autonomous Foreign Exchange Market (NAFEM) by N1.50 or 0.09 per cent to close at N1,533.00/$1 on Friday, December 13 versus the N1,534.50/$1 it was transacted on Thursday.

The local currency has continued to benefit from the Electronic Foreign Exchange Matching System (EFEMS) introduced by the Central Bank of Nigeria (CBN) this month.

The implementation of the forex system comes with diverse implications for all segments of the financial markets that deal with FX, including the rebound in the value of the Naira across markets.

The system instantly reflects data on all FX transactions conducted in the interbank market and approved by the CBN.

Market analysts say the publication of real-time prices and buy-sell orders data from this system has lent support to the Naira in the official market and tackled speculation.

In the official market yesterday, the domestic currency improved its value against the Pound Sterling by N12.58 to wrap the session at N1,942.19/£1 compared with the previous day’s N1,954.77/£1 and against the Euro, it gained N2.44 to close at N1,612.85/€1 versus Thursday’s closing price of N1,610.41/€1.

At the black market, the Nigerian Naira appreciated against the greenback on Friday by N30 to sell for N1,650/$1 compared with the preceding session’s value of N1,680/$1.

Meanwhile, the cryptocurrency market was largely positive as investors banked on recent signals, including fresh support from US President-elect, Mr Donald Trump, as well as interest rate cuts by the European Central Bank (ECB).

Ripple (XRP) added 7.3 per cent to sell at $2.49, Binance Coin (BNB) rose by 3.5 per cent to $728.28, Cardano (ADA) expanded by 2.4 per cent to trade at $1.11, Litecoin (LTC) increased by 2.3 per cent to $122.56, Bitcoin (BTC) gained 1.9 per cent to settle at $101,766.17, Dogecoin (DOGE) jumped by 1.2 per cent to $0.4064, Solana (SOL) soared by 0.7 per cent to $226.15 and Ethereum (ETH) advanced by 0.6 per cent to $3,925.35, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) remained unchanged at $1.00 each.

Economy

Index Gains 0.63% as Value of Nigerian Exchange Crosses N60trn

Published

17 minutes ago

14/12/2024

Dipo Olowookere

By Dipo Olowookere

For the fourth consecutive trading session, the Nigerian Exchange (NGX) Limited closed higher on Friday by 0.63 per cent on sustained renewed buying pressure.

Apart from the energy and industrial goods sectors which closed flat, every other sector ended in the green territory, according to data obtained from the bourse.

Business Post reports that the insurance index appreciated by 1.52 per cent, the banking space improved by 0.63 per cent, and the consumer goods counter expanded by 0.46 per cent.

As a result, the All-Share Index (ASI) gained 617.47 points to settle at 99,378.06 points compared with the preceding day’s 98,760.59 points and the market capitalisation went up by 375 billion to close at N60.242 trillion, in contrast to Thursday’s closing value of N59.867 trillion.

The volume of transactions on Customs Street yesterday grew by 11.13 per cent to 544.2 million shares from the 489.7 million shares transacted a day earlier.

The value of transactions increased during the session by 49.30 per cent to N10.6 billion from N7.1 billion and the number of deals went up by 1.93 per cent to 8,464 deals from the 8,304 deals posted in the previous trading session.

The busiest equity for the trading day was Japaul with the sale of 71.7 million units valued at N158.0 million, eTranzact exchanged 70.7 million units worth N477.5 million, Tantalizers sold 57.3 million units for N101.2 million, FCMB traded 33.0 million units worth N297.3 million, and Universal Insurance transacted 27.1 million units valued at N9.6 million.

A total of 36 stocks ended on the gainers’ chart, while 15 stocks finished on the losers’ table, indicating a positive market breadth index and strong investor sentiment.

The trio of Aradel Holdings, Ikeja Hotel and Caverton gained 10.00 per cent each to trade at N550.00, N8.80, and N1.98, respectively, as Africa Prudential rose by 9.87 per cent to N17.25 and Golden Guinea Breweries soared by 9.64 per cent to N8.64.

On the flip side, Austin Laz lost 10.00 per cent to close at N1.62, ABC Transport crashed by 8.00 per cent to N1.15, Royal Exchange slumped by 7.69 per cent to 60 Kobo, Secure Electronic Technology plunged by 5.26 per cent to 54 Kobo, and The Initiates crumbled by 4.26 per cent to N2.25.

Economy

Oil Jumps on Fresh Sanctions Amid Ease in Interest Rates, Demand Boost

Published

1 hour ago

14/12/2024

Adedapo Adesanya

By Adedapo Adesanya

Oil climbed by about 2 per cent on Friday on expectations that additional sanctions on Russia and Iran could tighten supplies and that lower interest rates in Europe and the US could boost fuel demand.

Brent futures went up by $1.08 or 1.5 per cent to settle at $74.49 a barrel and the US West Texas Intermediate (WTI) futures expanded by $1.27 or 1.8 per cent to close at $71.29 per barrel.

European Union ambassadors agreed to impose a 15th package of sanctions on Russia this week over its war against Ukraine, targeting its shadow tanker fleet.

The sanctions would target vessels from third countries supporting Russia’s war in Ukraine and add more individuals and entities to the sanctions list.

The sanctions package is likely to be formally adopted at a meeting of EU foreign ministers on Monday and will target close to 30 entities, over 50 individuals and 45 tankers.

Also, the US is considering similar moves that might target some Russian oil exports, before Donald Trump returns to the White House.

Britain, France and Germany told the United Nations Security Council they were ready if necessary to trigger a so-called “snap back” of all international sanctions on Iran to prevent the country from acquiring nuclear weapons.

The move comes as Iran has suffered a series of strategic setbacks, including Israel’s assault on Tehran’s proxy militias Hamas in Gaza and Hezbollah in Lebanon and the ouster of Iranian ally Bashar al-Assad in Syria.

Meanwhile, data from China this week showed that crude imports in the world’s top importer grew annually in November for the first time in seven months.

There are expectations that China’s crude imports will remain elevated into early 2025 as refiners opt to lift more supply from top exporter Saudi Arabia, drawn by lower prices, while independent refiners rush to use their quota.

The International Energy Agency (IEA) increased its forecast for 2025 global oil demand growth to 1.1 million barrels per day from 990,000 barrels per day last month, citing China’s stimulus measures.

The Paris-based energy watchdog forecast an oil surplus for next year, when nations not in the Organisation of the Petroleum Exporting Countries (OPEC) and allies, OPEC+ group, are set to boost supply by about 1.5 million barrels per day, driven by Argentina, Brazil, Canada, Guyana and the US.

The United Arab Emirates (UAE), an OPEC member, plans to reduce oil shipments early next year as OPEC+ seeks tighter discipline.