DANGOTE SAVES MORE THAN 3,000 NIGERIANS FROM JOB LOSS

Dangote Industries Limited (DIL)’s decision to buy back its former subsidiary, Tiger Branded Consumer Goods (TBCG) was informed by the need to prevent the company from going under and save over 3,000 jobs of Nigerians.

DIL was approached by Tiger Brands to acquire its 65.7 per cent shares of TBCG Limited. While some stakeholders have questioned the rationale behind the investment decision by DIL, sources close to the Dangote Group said the company had to consider the repurchase of TBCG so as to keep the company as a going concern, which preserves value for the minority retail shareholders. The move also secured direct employment for over 3,000 employees.

“Going by every indication, the future of the company was very doubtful and that was risky for the employees which are over 3,000 Nigerians apart from others who benefit from the company’s services through other ancillary services. The return of DIL is therefore a big relief and good decision to save the jobs of the staff of TBCG,” a market operator said.

According to the repurchase agreement, subject to regulatory approvals, DIL will provide TBCG with an immediate cash injection of N10 billion. In return, Tiger Brands will divest its 65.7 per cent shareholding in TBCG to DIL for a nominal consideration and write off its shareholder loans to TBCG.

In addition, Tiger Brands will assume and settle outstanding debt guaranteed on behalf of TBCG.

Already, the former directors of TBCG, Alake, Ekpe and Ighodalo have agreed to re-join the board of TBCG and have consequently been reappointed with effect from 10th December 2015.

The companies have explained that the transaction will ensure that TBCG is maintained as a viable going concern, able to retain its employees and meet its obligations to its stakeholders.

“The Transaction envisages that sufficient capital will be injected into TBCG in order to stabilize the business and place it on a sustainable path aimed at creating value for its stakeholders,” they said.

Credit:  vanguardngr.com

NIGERIA EARNS N413BN FROM GAS EXPORT IN THREE MONTHS

Nigeria earned N412.983 billion from the export of Liquefied Natural Gas, LNG, Liquefied Petroleum Gas, LPG, also known as cooking gas and other gaseous materials in three months, between July and September 2015, according to data obtained from the National Bureau of Statistics, NBS.

Foreign Trade Statistics Report for the Third Quarter of 2015, revealed that this represented an increase of 9.5 per cent or N35.813 billion when compared to N377.17 billion earned by the country from the export of those commodities in the second quarter of 2015.

Giving a breakdown of the third quarter figures, the NBS stated that the country’s LNG export stood at N262.202 billion; liquefied propane export was valued at N106.803 billion, while the export of other petroleum gases, among others, in gaseous state was valued at N22.762 billion.

In addition, the country earned N10.101 billion from the export of LPG and other gaseous hydrocarbons, while it also earned N8.115 billion from the export of liquefied butanes.

Furthermore, the report identified India as Nigeria highest export destination in the third quarter with an export value of N408.24 billion, comprising N382.884 billion and N25.356 billion crude oil and non-crude oil export respectively.

Netherlands followed with total export value of N245.066 billion comprising crude oil and non-crude oil export of N228.2 billion and 16.86 billion respectively, while Spain’s export from Nigeria stood at N211.357 billion, with N159.5 billion been value for crude oil and N51.853 billion from non-crude oil items.

Other export destinations in the quarter under review are: United Kingdom — N192.231 billion total exports, with N85.07 billion crude oil export and N107.17 billion non-crude oil export; Brazil — N169.44 billion, with N140.84 billion and N28.6 billion crude oil and non-oil export.

In addition, France received N106.billion of Nigeria’s total export; South Africa — N105.05 billion; United States — N85.51 billion; Japan — N80.44 billion and Indonesia — N71.37 billion among others.

On the other hand, China emerged the destination with the highest value of Nigeria’s import in the period under review, accounting for N459.4 billion of Nigeria’s total imports. The United States followed with Nigeria imports from the country valued at N160.6 billion, while the country imports from Belgium stood at N128.32 billion.

Continuing, the report stated that, “Further analysis of Nigeria’s imports by Continent, revealed that the country consumed goods largely from Asia with imports valued at N 764.5 billion or 45.3 per cent of total imports.

“The Country also imported goods valued at  N596.4 billion or 35.3 per cent from Europe and N241.3 billion or 14.3 per cent from The Americas. Import trade from Africa stood at  N65.4 billion or 3.9 per cent while imports from the region of ECOWAS amounted to  N16.3 billion.”

Credit:  vanguardngr.com