Recap Of Company And Business News Roundup For Week Ended (May 13, 2017): Faro Water rakes in N4 billion in revenue for 2016

This is a recap of some of the top company/industry stories that were in the news for the week ended May 13, 2017.

1. Adama Beverages Limited, producers of Faro Water, ‎reported last week that it recorded N4.6 billion turnover in 2016. The chairman of the company’s board of directors, Akin Kekere-Akun, ‎stated this at the Annual General Meeting held yesterday in Yola. It’s turnover in 2015 was N3.8 billion. The company still went ahead to report a loss. The CEO explained that the reason for the loss was because they were undergoing an expansion project that would see the installation of new plant with capacity to produce 40,000 bottles per hour.

2. Dangote Sugar refinery last week, revealed plans to establish a $450 million Sugar refinery plant in Niger State. The Managing Director of Dangote Sugar Refinery Company, Engineer Abdullahi Sule disclosed this in Minna, Niger State, after a brief meeting with the Governor, Alhaji Abubakar Sani Bello in his office.

3. Lafarge Africa revealed plans to raise 140 billion naira ($445.9 million) in fresh equity sometime this year. The company will be seeking a shareholder approval to consummate the deal next month. The deal is expected to include a debt equity swap, where Lafarge Africa will have to convert some or all of the debt owed to its parent company into equity. Lafarge owes its parent company over N140 billion as at December 2016.  

4. The Transmission Company of Nigeria (TCN) announced that it will be constructing a $200 million power transmission project in Ogun State. The Managing Dirctor of TCN, Mr. Usman Gur Mohammed, said the project, when completed, would also increase available power to industrial concerns and the populace. The TCN Boss also solicited the help of the State Governor, Amosun to help in the acquisition of land in places, such as, Lukosi, in Abeokuta; Redemption Camp and Mountain of Fire Ministries area, along the Lagos-Ibadan Expressway corridor as well as Ajegunle, very close to Agbara and Arigbajo axis. The land would be used for building sub stations. The TCN Boss also adds that the sum of $1.5 billion has already been secured from donor agencies to finance the project.  

5. The Minister for State for Petroleum, Dr Ibe Kachikwu revealed last week that Italian oil company Eni plans to build a crude refinery in Nigeria with capacity of 150,000 barrels a day through its Agip subsidiary.  

6. The meeting between Nigerian arm of Etisalat and its lenders to renegotiate the terms of a $1.2 billion loan reached deadlock last week after the telecoms firm missed a payment. The banks are still holding out for the Abu Dhabi based parent company of Etisalat to bail their Nigerian subsidiary out. The telecom firm signed the medium-term seven-year facility with 13 local banks in 2013 to refinance a $650 million loan and fund expansion of its network, but is now struggling to repay. 

7. General Electric, reported that it is set to deliver 20 free locomotive engines and 200 wagons worth over N30bn to the Nigerian Railway Corporation to boost rail services in the country. 

8. In another power sector news, The Transmission Company of Nigeria (TCN) has added 60 Mega Voltage Ampere (MVA) to the Ajah substation in Lagos State. The company, which stated this in a statement, added that the capacity of the sub-station had now been increased to 220MVA. It said the new 60MVA 132/33 kilovolt (kv) mobile transformer was installed due to the need to meet the increased bulk electricity demand by Eko Electricity Distribution Company (EEDC) as its customer number expands.  

9. The board of Directors of Nigerian Breweries Plc announces the appointment of Mr. Johan Antonie Doyer as the company’s Managing Director/ CEO. He was Managing Director of Heineken Ethiopia before assuming the same position in Nigeria.  

10. Uber drivers in Lagos, last week took to the street to protest against 40% fare reduction that the taxi service company introduced recently, a burden, which they claim is being passed on to the drivers. One driver lamented that he spent about N50,000 on fuel last week only to receive just N80,000 from Uber, when he was supposed to get double the amount. Uber takes about 25% commission from its drivers, even though the drivers/partners bear the cost of fuel, vehicle maintenance and purchase themselves.

11. Four months after an elaborate ceremony to commission The Palms Mall at Ota in Ogun State, over 75% of the stores are still vacant. A survey from the The New Telegraph reveals that except for some few brands such as Medplus Pharmacy, Inglot, Shoprite, Getalo, Mellaly, Max and Game Rendi, which have taken full position in the mall, many of the retail stores are still vacant.  

12. Nigeria’s e-commerce company, Yudala, has acquired Yes Mobile, a cosmopolitan high-value retail outfit with a multiplicity of stores in Lagos. A senior Management staff of Yes Mobile, Onoidem Idiong, described the take-over as detailed and strategic. 

13. Courier Plus Limited, a wholly owned Nigerian company has launched its operations in Nairobi Kenya.  

14. The Bank of Industry (BoI) has reduced its interest rates for NYSC members under its Graduate Entrepreneurship Fund (GEF) programme, to zero per cent interest charge from 9%, as part of measures to encourage entrepreneurship and aid business growth. The bank said the zero per cent interest charge took effect from May 1, 2017. 

15. Zenith Bank last week announced that it intends to raise $500 million via medium term notes. The $500m is the other half of its $1 billion global medium term note programme launched in 2014, where it raised the initial $500 million under the first tranche of notes issued. Zenith Bank is Nigeria’s largest bank by equity. 

16. Last week, we heard that the Federal Government entered into a Memorandum of Understanding (MoU) with Oando Plc to manage the Port Harcourt Refinery under a repair, operate and maintain (ROM) arrangement. Oando’s CEO, Wale Tinubu explained that they plan to increase the refinery capacity from 30 per cent to a 100 per cent, subsequently to 120 per cent. The company is also considering raising some N40 billion in new capital. 

17. MMA 2 celebrated its 10 years’ anniversary last week. The local wing of the airport is owned by Bi-Courtney under a BOT arrangement reached with the FG years ago. Bi-Courtney also used this opportunity to remind the government of a judgement debt of N132 billion it was said to have from the Federal High Court, against the FG. The company explains this was as a result of the failure of the government to handover old domestic terminal, otherwise known as General Aviation Terminal (GAT), Lagos. He said the amount increased to N200 billion, owing to the revenue the terminal operator would have collected as revenue for flights and other commercial activities at the old domestic terminal.

18. GBfoods, one of the leading multinational food company headquartered in Barcelona and Helios Investment Partners, have partnered to create one of Africa’s largest FMCG businesses. GBfoods Africa Holdco B. V., the joint venture owned by GBfoods and Helios, has acquired assets from different African companies including leading brands such as Jumbo (bouillon), Gino and Pomo (tomato paste), and Jago (milk powder and mayonnaise), as well as Bama (mayonnaise) distribution rights for Africa, in Ghana and Nigeria, and incorporates more than 600 workers from different nationalities. Consequently, this will result in a leading pan-African culinary products company with presence in over 30 African countries. With this transaction, GBfoods reinforces its leadership position as one of the most influential international groups in the food industry, consolidating its commitment to Africa. Africa currently contributes about 20% of the group’s turnover. 

19. The Managing Director of Toyota Nigeria Limited, Mr. Kunle Ade Ojo, lamented last week that the car maker recorded one of its lowest ever vehicle sales in Nigeria. He said the number of Toyota cars sold in Nigeria, dropped an all time low of 2,000 vehicles in the first quarter of 2017. He also disclosed that the total sales figure of vehicles across the country including all brands stood at 2,000 units when compared to 5,500 vehicles sold within the same period in 2016. He, therefore, forecast that given the way the industry was going, it would be difficult for all the car companies to sell 9,000 vehicles before the end of the year. 

20. The Executive Director, Fidson Health Care Plc, Bola Adebayo said last week that more than 70 per cent of drugs in circulation is fake. He blamed this on the absence of genuine drugs manufacturers in the hinterland, as many  are concentrated in big cities.