By Dipo Olowookere

The gypsum plaster market in Nigeria will become more competitive with the introduction of products from BUA Gypsum Plaster Limited.

Gypsum plaster, also known as Plaster of Paris (POP) or POP cement, is an essential ingredient in the production of suspended ceilings and other structures in the construction industry.

At the moment, the local market is saturated with products from outside the country, particularly from Egypt. Because of the exchange rate crisis in Nigeria, the price of a 40kg bag averages between N10,500 and N11,000.

BUA Gypsum Plaster, a subsidiary of BUA Group, is flooding the market with its product from the newly completed state-of-the-art manufacturing plant in Port Harcourt, Rivers State.

The company has the capacity to produce about 2,400 tons of gypsum plaster per day to meet domestic demand and cut down reliance on imports into Nigeria.

Business Post learned that the company is offering the product to distributors at an ex-factory promo price of N8,000 per bag. This is for those who register with the company on or before December 31, 2024.

“The commencement of production at BUA Gypsum Plaster marks a significant milestone in our mission to support Nigeria and West Africa’s infrastructure development.

“With a production capacity of 2,400 tons per day, this facility is poised to serve the housing and construction sectors and go a long way in reducing the reliance on imported gypsum plaster products,” the Chairman of BUA Group, Mr AbdulSamad Rabiu, said.

He noted that the gypsum plaster plant aligns with the organisation’s vision to improve the value chain and enhance capacity in the various industries it operates.

By Dipo Olowookere

A 0.43 per cent growth recorded by the Nigerian Exchange (NGX) Limited on Wednesday has now moved the platform’s year-to-date (YtD) return to 34.38 per cent.

It has been a roller coaster for the local stock market in 2024, but it has remained strong amid the tough macroeconomic environment caused by inflation and the exchange rate crisis.

Yesterday, Customs Street performed well after almost all the key sectors experienced buying pressure, with only the industrial goods space closing flat.

Business Post reports that the insurance sector appreciated by 3.16 per cent, the banking index gained 0.68 per cent, the energy industry leapt by 0.33 per cent, and the consumer goods counter soared by 0.08 per cent.

At the close of business, the All-Share Index (ASI) was up by 426.52 points to 100,477.46 points from 100,050.94 points and the market capitalisation increased by N258 billion to N60.908 trillion from N60.650 trillion it ended a day earlier.

During the midweek session, a total of 42 equities ended on the gainers’ chart and 18 equities closed in red, representing a positive market breadth index and strong investor sentiment.

MRS Oil surged by 9.99 per cent to N159.70, Learn Africa chalked up 9.97 per cent to N3.53, International Energy Insurance rose by 9.77 per cent to N1.46, Coronation Insurance grew by 9.74 per cent to N1.69, and Livestock Feeds gained 9.73 per cent to sell for N3.72.

On the flip side, Africa Prudential lost 10.00 per cent to settle at N14.40, John Holt declined by 9.96 per cent to N6.51, Guinea Insurance slipped by 8.33 per cent to 66 Kobo, Deap Capital tumbled by 5.26 per cent to N1.08, and Consolidated Hallmark deflated by 4.17 per cent to N2.30.

Yesterday, the market participants traded 389.7 million shares worth N9.2 billion in 9,573 deals versus the 478.1 million shares valued at N22.5 billion transacted in 9,578 deals on Tuesday, implying a decline in the trading volume, value and number of deals by 18.49 per cent, 59.11 per cent and 0.05 per cent, respectively.

Sterling Holdings topped the activity log with 43.6 million stocks valued at N216.7 million, UBA traded 26.2 million equities worth N874.9 million, Fidelity Bank sold 25.7 million shares for N398.4 million, Universal Insurance exchanged 18.5 million stocks worth N6.8 million, and AIICO Insurance transacted 16.2 million equities valued at N21.6 million.

By Aduragbemi Omiyale

The management of Dangote Refinery has picked a hole in the claims by the Nigerian National Petroleum Company (NNPC) Limited that it supported the business with a $1 billion loan when it was undergoing a liquidity crisis.

In a statement on Wednesday night, the private oil refinery believed to be worth about $20 billion said the claims by the NNPC were not true.

In the disclosure made available to Business Post, the Group Chief Branding and Communications Officer of Dangote, Mr Anthony Chiejina, said, “We would like to clarify that this is a misrepresentation of the situation as $1bn is just about 5 per cent of the investment that went into building the Dangote Refinery.”

“Our decision to enter into a partnership with NNPCL was based on recognition of their strategic position in the industry as the largest off-taker of Nigerian crude and at the time, the sole supplier of gasoline into Nigeria.

“We agreed on the sale of a 20 per cent stake at a value of $2.76 billion. Of this, we agreed that they will only pay $1 billion while the balance will be recovered over a period of 5 years through deductions on crude oil that they supply to us and from dividends due to them. If we were struggling with liquidity challenges we wouldn’t have given them such generous payment terms.

“As of 2021 when the agreement was signed, the refinery was at the pre-commission stage. In addition, if we were struggling with liquidity issues, this agreement would have been cash-based rather than credit-driven.

“Unfortunately, NNPCL was later unable to supply the agreed 300 thousand barrels a day of crude given that they had committed a greater part of their crude cargoes to financiers with the expectation of higher production which they were unable to achieve.

“We subsequently gave them a 12-month period for them to pay cash for the balance of their equity given their inability to supply the agreed crude oil volume. NNPCL failed to meet this deadline which expired on June 30th 2024. As a result, their equity share was revised down to 7.24 per cent. These events have been widely reported by both parties.

“It is, therefore, inaccurate to claim that NNPCL facilitated a $1 billion investment amid liquidity challenges. Like all business partners, NNPCL invested, $1 billion in the Refinery to acquire an ownership stake of 7.24 per cent stake that is beneficial to its interests,” he explained.

Mr Chiejina noted that, “NNPCL remains our valued partner in progress, and it is imperative for all stakeholders to adhere to the facts and present the narrative in the correct context, to guide the media in reporting accurately for the benefit of our stakeholders and the public.”