Economy
Food Beverage Makers Threaten to Relocate Factories from Nigeria
By Adedapo Adesanya
Employers of labour in the food and beverage sector under the aegis of the National Union of Food Beverage and Tobacco Employees (NUFBTE) say they are ready to leave Nigeria and relocate their factories to neighbouring West African countries over alleged outrageous excise duty on carbonated drinks and multiple taxation by the federal government.
The food beverage makers called on the federal government to take urgent action to save the business environment from collapsing.
They made their grievances known in separate letters titled Federal Government Save Our Soul, Food Sector is Dying because of Multiple Excise Duty/Taxation sent to the Speaker of the House of Representatives, Mr Femi Gbajabiamila; the Minister of Labour and Employment, Mr Chris Ngige; and the President of the Nigeria Labour Congress (NLC), Mr Ayuba Wabba.
The letters signed by the President of NUFBTE, Mr Lateef Oyelekan, called on the central government to save the sector from extinction as the 10 per cent excise duty placed on carbonated drinks and excess taxation has caused the sack of over 5,000 employees in the last eight months.
They threatened to relocate their factories to neighbouring countries as the next line of action, where production cost is lesser, and the finished products would be brought back to Nigeria to sell, putting Nigeria at the receiving end.
The group said the introduction of the excise duty had crippled the business since January this year till date, saying, “The life span of finished products (FCMG) is six months. Billions of products have expired and will be discarded because of the price increase of the finished products.
“Billions of naira in raw materials of the products will expire in December and January. The production of goods daily, which was formerly 12 hours per day, six days a week (Monday to Saturday), has now been reduced to eight hours per day and three times a week.
“Companies that have six production lines have shut three lines down, and most companies are now left with three lines to produce due to the excess percentage on excise duty and taxation. Companies are struggling to produce.”
The letter read further, “Having said that, in the past years, companies like Nigeria Bottling Company, Nigeria Breweries Limited, Nestle, Seven-Up Bottling Company, International Breweries, Nigeria Flour Mills, to mention a few engaged Technical school holders, GCE holders, OND holders, HND holders and train them in the company’s technical training college for a year, after which they were employed. This is not the case again in recent times.
“Furthermore, each of the aforementioned companies employed close to 1000 workers in the past years, but sadly this exercise has stopped in the past two years due to the outrageous excise duty and taxation affecting the sector.”
By Adedapo Adesanya
The Nigerian Electricity Regulatory Commission (NERC) has issued a directive to ensure transparency in reporting the Regional Electricity Transmission Loss Factor, as it remains above the 7 per cent threshold.
In a public notice posted on its official X (formerly Twitter) on Monday, the order, contained in No. NERC/2026/026 is aimed at improving transparency and efficiency in Nigeria’s power grid through enhanced reporting of Regional Transmission Loss Factors (TLF).
The regulator disclosed that the order is backed by the provisions of the Electricity Act 2023, which enables the commission to regulate, monitor, and ensure efficiency in the power sector.
According to the statement, the Data from the Nigerian Independent System Operator (NISO) indicate that the national average TLF was 8.71 per cent in 2024 but was reduced to 7.24 per cent in 2025.
The statement added that the report exceeds the 7 per cent benchmark approved by NERC in the Multi-Year Tariff Order (MYTO).
The statement reads, “The Order dated 8 April 2026 establishes a formal framework for reporting transmission losses across regions operated by the Transmission Company of Nigeria (TCN).
“Taking effect from 13 April 2026, the Order is backed by provisions of the Electricity Act 2023, which empower NERC to regulate, monitor, and ensure efficiency in the electricity market.”
The directive reads, “NISO to install smart meters at all boundary regional interconnection points by December 2026 to accurately measure energy flows for each region of the transmission network.
“NISO to measure and document all energy flow of power transformers at transmission substations.
“NISO to file quarterly reports on TLF to NERC on a regional basis.”
It added, “TCN to file an action plan by July 2026 on the reduction of TLF to a value within the 7 per cent approved benchmarks in the regions.
“TCN to ensure that TLF across transmission regions shall not exceed 6.5 per cent by December 2026.”
NERC concluded that the order is designed to strengthen accountability in transmission operations and support better grid performance through structured loss reporting.
By Adedapo Adesanya
Nigerian businessman, Mr Aliko Dangote, is planning to list shares of his $20 billion oil refinery on multiple African stock exchanges.
The landmark cross-border public offering on the continent was disclosed by the chief executive of the Nairobi Securities Exchange (NSE), Mr Frank Mwiti, following a meeting held last week in Lagos between Mr Dangote and several heads of African exchanges.
Last year, Mr Dangote unveiled plans to list a 10 per cent stake in his Lagos-based refinery on the Nigerian Exchange this year.
According to a Bloomberg report, citing an email from the chief executive of FirstCap, Mr Ukandu Ukandu, Stanbic IBTC Capital Limited, Vetiva Advisory Services Limited, and FirstCap Limited have been appointed as advisers for the initial public offering of Dangote Petroleum Refinery and Petrochemicals FZE.
Mr Mwiti said the proposed listing is designed to cut across multiple markets and deepen investor participation across the continent.
“The plan is to structure a pan-African IPO,” he said.
Bloomberg also reported that a spokesman for the Dangote Group confirmed that discussions had taken place between Mr Dangote and exchange officials but declined to provide further details.
In February 2026, Mr Dangote said that the IPO could be launched within the next five months.
“But individually Nigerians too will have an opportunity in the next maximum four or five months, they will actually be able to buy their shares,” he said at the time.
He added that investors would have flexibility in how they receive returns.
“People will have a choice either to get their dividends in naira or to get their dividends in dollars because we earn in Dollars.”
By Dipo Olowookere
Efforts are being made to ensure the throughput of Ellah Lakes Plc is increased to deliver long-term value for shareholders, the chief executive of the organisation, Mr Chuka Mordi, has said.
Mr Mordi was reacting to the audited 17-month financial statements of the firm ended December 31, 2025, as it transitions to a December financial year-end to enhance comparability with industry peers.
This action is also to strengthen reporting discipline and align financial reporting with the agricultural operating cycle, from planting through harvest and processing, providing a more accurate reflection of the company’s operational performance.
In the period under review, Ellah Lakes recorded N146.66 million in revenue, driven by initial harvests and sales of Fresh Fruit Bunches (FFBs), with the cash flows supporting operational stability as larger assets continue to mature.
However, the company suffered an operating loss of N3.84 billion, as the earnings per share (EPS) closed with a N1 loss.
Between July 2024 and December 2025, the organisation achieved a key operational milestone, with the commissioning of its upgraded 5-tonnes-per-hour crude palm oil mill in July 2025, strengthening its ability to process output internally and capture more value across its palm oil value chain as plantation maturity improves.
Also, it planted 17,000 seedlings and maintained 47,000 seedlings in the nursery, as part of a broader planting programme, supporting Ellah Lakes’ medium-term production pipeline and providing a stronger foundation for future output as more hectares move into productive phases.
“The 17-month period marks an important transition for Ellah Lakes as we progress from asset development into early-stage commercial operations.
“During the period, we commissioned our upgraded crude palm oil mill, advanced plantation development, and commenced pig farming activities, marking the beginning of revenue generation across our core value chains.
“While our reported results reflect the cost of expansion, start-up activities and non-recurring transaction-related expenses, they also establish the operational foundation required to scale the business.
“Our focus now is on improving yields from maturing plantations, increasing processing throughput, and driving greater efficiency across our operations. We remain committed to disciplined execution and capital stewardship as we work towards translating our asset base into stronger operating performance and long-term value for shareholders,” Mr Mordi stated.
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