09:44
WILLIAMS and WINNIE MAKINDE
Thursday, 16 October 2014
Saturday, 4 October 2014
01:54
Unknown
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The federal government is in talks with some banks in South Africa to fund prospective buyers of vehicles assembled in Nigeria.
The Director General, National Automotive Council, Aminu Jalal, stated this as one of the several ways the government was using to develop the automotive market.
Jalal, who addressed the media in Lagos, recently, said these South Africa financial institutions specialise in funding of prospective buyers of vehicles, adding that this would stop the usual practise in Nigeria where people pay outright for the vehicles they want to purchase.
The Director General, National Automotive Council, Aminu Jalal, stated this as one of the several ways the government was using to develop the automotive market.
Jalal, who addressed the media in Lagos, recently, said these South Africa financial institutions specialise in funding of prospective buyers of vehicles, adding that this would stop the usual practise in Nigeria where people pay outright for the vehicles they want to purchase.
Also in the market’s development, he said were some tariff issues, explaining that vehicle manufacturing was long-term and very capital intensive. “A lot of the manufacturers actually make more money financing the research of the vehicles than they make in the assembly of these vehicles. There is also after-sales service and sales of spare parts, among others.”
He said to make profit, a manufacturer needed to produce 7,000 to 8,000 vehicles and that anything below would likely result to a loss.
According to him, the ratio of imported vehicles to those assembled in the country would be regulated until zero import was achieved.
Another method that would be used to develop the market was to discourage smuggling, he said and that the Nigeria Customs will check all registered vehicles to ensure they paid the correct duty.
According to him, the federal government, with intent to revive the activities of auto component manufactures, had given N11.5 billion loan to 32 companies to assist them in production.
He said to make profit, a manufacturer needed to produce 7,000 to 8,000 vehicles and that anything below would likely result to a loss.
According to him, the ratio of imported vehicles to those assembled in the country would be regulated until zero import was achieved.
Another method that would be used to develop the market was to discourage smuggling, he said and that the Nigeria Customs will check all registered vehicles to ensure they paid the correct duty.
According to him, the federal government, with intent to revive the activities of auto component manufactures, had given N11.5 billion loan to 32 companies to assist them in production.
He said the companies got the loan at an interest rate of 7.5 per cent, listing the companies as belonging to the filter, plastic, tyre, those that mould bumpers and dash board, among others.
He said a quarter of them had repaid the loan but that they had a challenge with competition from importers of similar product from China and India. These products come much cheaper, saying that those who survive were those who trade by the side, importing and producing.
On the resistance of some people to the auto policy, he wondered if Nigerians were comfortable with the importation of cars rather than have them manufactured in the country.
According to him, many countries, particularly in the last couple of months, that have a market, have said they must have an automotive policy, saying the industry was over a hundred years and that apart from the pioneers, Germany, France, Britain and USA, all others that followed have an automotive policy.
He said the reason for this was clear, explaining that it is because auto manufacturing is capital intensive, but that if the industry was developed, then other small materials sectors would be developed.
Jalal said even countries without a market still have a policy that guide the industry.
The Nigeria Auto Policy, he said was a 10-year programme, initially, that had many elements and can be reviewed, and that standards would be established in collaboration with the standards organisation of Nigeria (SON).
He said 10 centres would be established for the purpose, adding that over 170 standards had been adopted, in addition to 104 safety standards and will continue to do more.
He said a quarter of them had repaid the loan but that they had a challenge with competition from importers of similar product from China and India. These products come much cheaper, saying that those who survive were those who trade by the side, importing and producing.
On the resistance of some people to the auto policy, he wondered if Nigerians were comfortable with the importation of cars rather than have them manufactured in the country.
According to him, many countries, particularly in the last couple of months, that have a market, have said they must have an automotive policy, saying the industry was over a hundred years and that apart from the pioneers, Germany, France, Britain and USA, all others that followed have an automotive policy.
He said the reason for this was clear, explaining that it is because auto manufacturing is capital intensive, but that if the industry was developed, then other small materials sectors would be developed.
Jalal said even countries without a market still have a policy that guide the industry.
The Nigeria Auto Policy, he said was a 10-year programme, initially, that had many elements and can be reviewed, and that standards would be established in collaboration with the standards organisation of Nigeria (SON).
He said 10 centres would be established for the purpose, adding that over 170 standards had been adopted, in addition to 104 safety standards and will continue to do more.
But before they were ready, manufacturers would use the standards of the countries where the vehicles come from, because safety bodies have a way of recognising each other’s safety standards.
Manufacturing plants was also expected to acquire ISO-certification to ensure all their processes conform to international norms.
The manufacturers, he said were expected to have training facilities for capacity building, particularly on maintenance, adding that some universities and technical schools have automotive engineering and technician departments.
On infrastructure development, he said, “We are mindful that we have infrastructure deficiency but if we wait we may never start.”
He said the council was working with state governments to have land “where we can set up workshop for the manufacture of spare parts, particularly in industrial estates. We already have offer from Osun, Delta and we are working to get land in Kaduna, Lagos and Anambra were we already have automobile operations.
Manufacturing plants was also expected to acquire ISO-certification to ensure all their processes conform to international norms.
The manufacturers, he said were expected to have training facilities for capacity building, particularly on maintenance, adding that some universities and technical schools have automotive engineering and technician departments.
On infrastructure development, he said, “We are mindful that we have infrastructure deficiency but if we wait we may never start.”
He said the council was working with state governments to have land “where we can set up workshop for the manufacture of spare parts, particularly in industrial estates. We already have offer from Osun, Delta and we are working to get land in Kaduna, Lagos and Anambra were we already have automobile operations.
Thursday, 4 September 2014
- 10:56
- Unknown
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He also Inaugurated the National Council on Micro, Small and Medium Enterprises (MSME).
Jonathan spoke at the inauguration of MSME at the Presidential Villa.
He noted that inauguration marked a very important turning point in his administration's national economic development drive, with regards to its efforts to place micro, small and medium enterprises (MSMEs), as core and essential elements of economic transformation.
According to the president, the creation of this council was a testament to the commitment of his administration to all inclusive economic growth.
- 10:49
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Jonathan sated this in Abuja yesterday during the Federal Executive Council (FEC) meeting, adding that the plan would be implemented over a period of 30 years from 2014 to 2043.
He explained that the first five years phase between now and 2018 will require $166.1 billion for implementation.
The plan will, among other things, address the lack of linkages in the infrastructure sector. It focuses on core infrastructure, including energy (power and oil and gas), transport (roads, rail, ports and airports), housing, water and Information and Communication Technology. Briefing State House correspondents at the end of the meeting, the Minister of State for Power, Mohammed Wakil, alongside the Ministers of Health, Onyebuchi Chukwu, National Planning, Abubakar Sulaiman and Transport, Idris Umar, recalled that Jonathan had in July 2012, approved that the National Planning Commission (NPC) coordinate the preparation of NIIMP for the country.
Other infrastructure classes include agriculture, mining, social infrastructure, vital registration and security.
Meanwhile, the Federal Government has blacklisted a contractor who is alleged to have abandoned an electricity project in Ebonyi State. And to serve as deterrent to others, government has also concluded plans to retrieve the 15 per cent contract sum already paid, adding that it has also blacklisted the directors of the company and as such cannot start up any other company in the country.
The contracting firm, Messrs Techno Electric and Engineering Company, had on December 1, 2010 collected a 15 per cent mobilisation fee from the Federal Government and later abandoned the project.
He explained that the first five years phase between now and 2018 will require $166.1 billion for implementation.
The plan will, among other things, address the lack of linkages in the infrastructure sector. It focuses on core infrastructure, including energy (power and oil and gas), transport (roads, rail, ports and airports), housing, water and Information and Communication Technology. Briefing State House correspondents at the end of the meeting, the Minister of State for Power, Mohammed Wakil, alongside the Ministers of Health, Onyebuchi Chukwu, National Planning, Abubakar Sulaiman and Transport, Idris Umar, recalled that Jonathan had in July 2012, approved that the National Planning Commission (NPC) coordinate the preparation of NIIMP for the country.
Other infrastructure classes include agriculture, mining, social infrastructure, vital registration and security.
Meanwhile, the Federal Government has blacklisted a contractor who is alleged to have abandoned an electricity project in Ebonyi State. And to serve as deterrent to others, government has also concluded plans to retrieve the 15 per cent contract sum already paid, adding that it has also blacklisted the directors of the company and as such cannot start up any other company in the country.
The contracting firm, Messrs Techno Electric and Engineering Company, had on December 1, 2010 collected a 15 per cent mobilisation fee from the Federal Government and later abandoned the project.
Speaking further on the abandoned power project, Wakil said government has re-awarded the contract for the engineering design, manufacture, supply, installation, testing and commissioning of 2X60MVA, 132/33KV at Amasiri and 2X132KV Line Bays Extension at Abakaliki to the Transmission Company of Nigeria (TCN).
Council approved the re-award of the contract in favour of Messrs North China Power Engineering Limited and NCEP (Nig) Limited in the sum of $5,835,368.47 payable at the prevailing exchange rate at the time of payment plus N505,788,083.58 inclusive of N67,211,298.58 for 5 per cent contingency with a completion period of 24 months.
Council approved the re-award of the contract in favour of Messrs North China Power Engineering Limited and NCEP (Nig) Limited in the sum of $5,835,368.47 payable at the prevailing exchange rate at the time of payment plus N505,788,083.58 inclusive of N67,211,298.58 for 5 per cent contingency with a completion period of 24 months.
- 10:27
- Unknown
- No comments
The President/Chief Executive of the pan-African conglomerate, the Dangote Group, Aliko Dangote, has become the first African entrepreneur to lay claim to a $20bn fortune, thus becoming one of the 25 richest men in the world.
This is on account of the stock value of his largest holding, Dangote Cement, leaping about three-fourths since March when Forbesreleased its annual ranking of the world's richest people.
Dangote's 93 per cent stake in the cement company is now worth $19.5bn, according to the magazine.
Dangote Cement becomes the first Nigerian company to achieve a market capitalisation of over $20bn.
Added to this are his controlling stakes in other publicly-listed companies like Dangote Sugar and National Salt Company of Nigeria, and his significant shareholdings in other blue-chip companies like Zenith Bank Plc, UBA Group and Dangote Flour; his extensive real estate portfolio, jets, yachts and current cash position, which includes more than $300m in recently-awarded Dangote Cement.
Forbes reported that the Nigerian billionaire was now richer than Russia's richest man, Alisher Usmanov; India's Lakshmi Mittal; and running neck and neck with India's Mukesh Ambani.
According to the magazine, he is catching up to such Americans as Google's billionaire founders, Larry Page and Sergey Brin.
It will be recalled that Dangote Cement had recorded an unprecedented surge in its share price largely due to market response to the company's impressive results in the first quarter of this year.
The cement manufacturer's un-audited results for the three months ending March 31, 2013, had showed that the company's pre-tax profit rose to $339m, representing an 80.6 per cent increase from last year, and a strong indicator of the company's future earning potential.
The results also indicated a 79.5 per cent rise in its earnings per share over the corresponding period last year.
The Head of Investor Relations in the United Kingdom, Dangote Cement, Mr. Carl Franklin, explained in an email response to Forbes that the company's share boost in the first quarter of 2013 was because it had a huge increase in demand across Nigeria, considerable improved gas supply and ramped up capacity.
Franklin said, "So, Q1 was the first sign of just how profitable we can be in Nigeria. The amazing thing is that 66 per cent of our gas-fired production in Q1 was done at 84 per cent gas. Imagine what would happen to margins if we did the same amount at 95 per cent. This has given investors a good sense of what we can really do when everything goes in the right direction.
"It's certainly a landmark for a Nigerian company and we're proud to be the first to achieve it. Obviously, we are focusing on building long-term and sustainable value for shareholders through our investments in Nigeria and Africa. Nigeria is a very entrepreneurial country and I can assure you that other companies will follow us in achieving this."
Forbes in its report reasoned that other companies might eventually achieve this, but it was going to take a bit of time.
Dangote Cement currently accounts for more than a quarter of the total market capitalisation of the Nigerian Stock Exchange. The second largest company on the NSE is currently Nigerian Breweries Plc, West Africa's largest manufacturer of alcoholic and non-alcoholic beverages, which has a market capitalisation of $8.5bn.
Dangote Cement becomes the first Nigerian company to achieve a market capitalisation of over $20bn.
Added to this are his controlling stakes in other publicly-listed companies like Dangote Sugar and National Salt Company of Nigeria, and his significant shareholdings in other blue-chip companies like Zenith Bank Plc, UBA Group and Dangote Flour; his extensive real estate portfolio, jets, yachts and current cash position, which includes more than $300m in recently-awarded Dangote Cement.
Forbes reported that the Nigerian billionaire was now richer than Russia's richest man, Alisher Usmanov; India's Lakshmi Mittal; and running neck and neck with India's Mukesh Ambani.
According to the magazine, he is catching up to such Americans as Google's billionaire founders, Larry Page and Sergey Brin.
It will be recalled that Dangote Cement had recorded an unprecedented surge in its share price largely due to market response to the company's impressive results in the first quarter of this year.
The cement manufacturer's un-audited results for the three months ending March 31, 2013, had showed that the company's pre-tax profit rose to $339m, representing an 80.6 per cent increase from last year, and a strong indicator of the company's future earning potential.
The results also indicated a 79.5 per cent rise in its earnings per share over the corresponding period last year.
The Head of Investor Relations in the United Kingdom, Dangote Cement, Mr. Carl Franklin, explained in an email response to Forbes that the company's share boost in the first quarter of 2013 was because it had a huge increase in demand across Nigeria, considerable improved gas supply and ramped up capacity.
Franklin said, "So, Q1 was the first sign of just how profitable we can be in Nigeria. The amazing thing is that 66 per cent of our gas-fired production in Q1 was done at 84 per cent gas. Imagine what would happen to margins if we did the same amount at 95 per cent. This has given investors a good sense of what we can really do when everything goes in the right direction.
"It's certainly a landmark for a Nigerian company and we're proud to be the first to achieve it. Obviously, we are focusing on building long-term and sustainable value for shareholders through our investments in Nigeria and Africa. Nigeria is a very entrepreneurial country and I can assure you that other companies will follow us in achieving this."
Forbes in its report reasoned that other companies might eventually achieve this, but it was going to take a bit of time.
Dangote Cement currently accounts for more than a quarter of the total market capitalisation of the Nigerian Stock Exchange. The second largest company on the NSE is currently Nigerian Breweries Plc, West Africa's largest manufacturer of alcoholic and non-alcoholic beverages, which has a market capitalisation of $8.5bn.
Dangote made a debut on the Forbes billionaires list in 2008 with a fortune pegged at $3.3bn. His fortune dropped to $2.5bn in 2009 and plunged further to $2.1bn in 2010.
His fortune surged 557 per cent in 2011 to $13.8bn after he took Dangote Cement public.
Dangote dropped to $11.2bn in last year's rankings, but rebounded at $16.1bn this year. Since March, his fortune has jumped another 30 per cent.
Dangote started building his fortune over three decades ago after taking a loan from Sanusi Dantata and started trading in commodities like flour, sugar and cement.
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