Renowned business magnate, Femi Otedola, has said that his choice of investment in Dangote Cement is determined by long-term wealth preservation, export potential and shareholder…

Renowned business magnate, Femi Otedola, has said that his choice of investment in Dangote Cement is determined by long-term wealth preservation, export potential and shareholder value in Dangote Cement share acquisition.

Daily Trust reports that Otedola recently acquired shares worth N6 billion in Nigeria’s largest company by market capitalization, Dangote Cement Plc.

Dangote Cement is one of the Stocks Worth Over One Trillion (SWOOT) with a current market capitalization of above N9 trillion.

Otedola, a serial investor and chairman of Geregu Power Plc, is renowned for his stock-picking boldness and was one of the major drivers of the stock market’s bull run in 2023, after his interest in Transcorp.

Otedola in a statement said his investment in the cement company is a testament to his confidence in its potential to propel Nigeria’s and Africa’s industrial and economic development

“In my investment decisions, I focus on long-term wealth preservation and ensuring shareholders are the ultimate beneficiaries of a company’s success,” he stated.

Otedola said his investment aligned with his vision of long-term wealth preservation and the belief that shareholders should be the primary beneficiaries of a company’s success.

“Companies like Dangote Cement, which consistently deliver value to their shareholders, are fundamental for sustainable economic growth. My investment reflects my belief in its capacity to continue providing significant returns and my commitment to businesses that prioritize their shareholders,” he added.

Otedola, who argued that Dangote Cement’s unique position with two export terminals offers a substantial opportunity to earn foreign exchange, crucial for Nigeria’s economy, stressed that this along with the company’s pan-African presence, makes it an ideal investment choice

“Dangote Cement’s strong corporate governance and impressive ESG compliance track record make it an ideal investment choice. It represents the type of company that not only contributes to Nigeria’s industrial strength but also aligns with my vision for ethical and sustainable business practices,” added Otedola.

He opined that Dangote Cement’s export capabilities and extensive operations across Sub-Saharan Africa are essential for regional economic integration and growth.

Lekki Deep Seaport Berths Another Large Container Vessel
The Lekki Deep Seaport has berthed the largest container carrier to sail on Nigerian territorial waters on Sunday 21st January, 2024. The vessel measuring 367M…

The Lekki Deep Seaport has berthed the largest container carrier to sail on Nigerian territorial waters on Sunday 21st January, 2024.

The vessel measuring 367M in length and christened ‘Maersk Edirne’ has a Breadth of 48.2 and carried a Gross Registered Tonnage (GRT) of 142,131metric tonnes and a Deadweight Tonnage (DWT) of 147,340 metric tonnes, constituting 3,376 total cargo onboard.

Before this time, the largest commercial vessels to sail on Nigerian waters were “MV Stadelhorn” and “MSC Maureen” at Onne Port and TinCan Island Port Complexes respectively.

The Managing Director / CEO Nigerian Ports Authority, Mr. Mohammed Bello Koko has said the Lekki Deep Seaport has by this feat in addition to its pioneering of full automation and facilitation of transhipment proven its readiness to exceed stakeholders’ expectations.

The House of Representatives is moving to revive the Bilateral Currency Swap Agreement (BCSA) signed between Nigeria and China.

The lower chamber, on Wednesday, resolved to liaise with the Central Bank of Nigeria (CBN) to speed up the implementation of the currency swap deal.

This resolution followed a motion moved by Jafaru Leko (APC, Bauchi) during plenary.

Three months after the agreement, the CBN commenced the take-off of the scheme through the Special Secondary Market Intervention Sales (SMIS) retail dedicated to the payment of Renminbi denominated Letters of Credit (LCs) for raw materials and machinery and agriculture only.

However, not much has been heard on the financial instrument.

The motion
In his motion, Mr Leko called for the outright adoption of the Yuan as one of the major currencies for Nigeria’s foreign reserve.

He stated that monetary authorities must consider the Chinese Yuan as an alternative trading currency in the face of the decline of the Naira against the US dollar and major currencies.

Mr Leko called for the adoption of the Chinese Yuan (CNY) as an official foreign exchange reserve currency alongside others.

The legislator said the CBN must explore the appropriate mechanisms, policies, and partnerships required for the implementation of the shift to Yuan.

“Global economic landscape is evolving and international trade dynamics are shifting, with China assuming a leading role in global trade.

“People’s Republic of China has a stable and globally recognized currency, the Chinese Yuan (CNY), which is gaining recognition in international trade,” Mr Leko said.

To buttress his point, the lawmaker said “Adopting the Chinese Yuan as an additional foreign exchange reserve currency might mitigate the adverse effects of Naira depreciation.”

He added that “It would enhance Nigeria’s trade and economic ties with China, a crucial trading partner.”

But the Deputy Speaker, Ben Kalu, who presided over the session, said there was no need for the House to call for a new policy, instead, the government should revive the currency swap scheme.

Subsequently, Sada Soli (APC, Katsina) moved an amendment to urge the speeding up of the 2018 current swap agreement.

The motion was passed as amended when Mr Kalu put it to vote.

The Committees on Banking Regulations, Banking and Other Ancillary Institutions were mandated to interface with the CBN on the policy and report to the House within four weeks.

The police in Lagos, southwest Nigeria, have arrested two persons in possession of fake drinks.

Although the details of the arrest are still sketchy, the Command’s spokesperson SP Benjamin Hundeyin who disclosed the arrest in a post shared on his X (formerly Twitter) handle, gave the names of the suspects as Imo Lawrence ‘m’ aged 35 and Magnus Nwonka ‘m’ aged 42.

Hundeyin said that the suspects were arrested by officers of the Ojo Division of the command on Wednesday.

The police spokesperson said in the course of the investigation, the suspects led detectives to their “inconspicuous, multi-room ‘factory’, adding that “investigation is ongoing.”

SaharaReporters reported on Monday, December 18, that the National Agency for Food and Drug Administration and Control (NAFDAC) uncovered a large haul of fake wine and soft drinks in Abia State.

The agency which disclosed this in a statement said it discovered major brands cloned by the arrested syndicate in an operation that involved over 240 shops-turned-factories.

Some grassroots farmers and petty traders have expressed frustration over the lingering cash crunch in the country, saying the unfortunate incident has been taking a toll on their businesses.

Some farmers and traders who spoke to The PUNCH said they stopped keeping their cash in the banks to avoid the funds getting trapped.

Small and medium-scale enterprise associations who spoke to our correspondent said the cash crunch would further weaken the government’s efforts to drive financial inclusion, especially at the grassroots.

A farmer in Igboho area of Oyo State, Mr Dele Bamigboye, said, “Many of those who bought from my farm produce have not paid me. They said they could not get money from the banks. It is affecting my business. I sell my things in cash and I have someone who helps me to collect the monies and keep in her bank account when it is much. Now, I cannot get cash because my monies are trapped.”

Another trader in Ogidi area of Ilorin simply identified as Mama Kudi said, “I am selling to only those who have cash to pay. I maintain this position because if they send money to my account, I cannot access cash from the PoS, and banks are rationing their cash. I need cash to buy goods and do my transactions. I am not taking money to the bank.”

Despite assurances from the Central Bank of Nigeria that there is enough cash in the economy, Nigerians have continued to decry the cash scarcity, as many Automated Teller Machines lack funds while banks are rationing cash over-the-counter.

Re
Speaking on the impact of the cash crunch on financial inclusion drive, the President of the Association of Small Business Owners in Nigeria, Dr Femi Egbesola, said it would have a negative effect.

He said, “People are trying to get their businesses structured and take their monies to the bank. With what is happening now, the confidence is eroded, especially at this festive period. People, mostly in the micro sectors, need cash for their daily transactions.

“It is very unfortunate that some of them had to take their monies to the bank, not knowing that a thing like this would happen, and when they are expecting to get their monies from the banks, they are unable to withdraw it.

“A lot of transactions in the economy still go with cash. Grass root business is still cash dependent, and when there is no cash, there will be apathy in going to the bank to lodge their funds.”

The Vice President, Nigerian Association of Small and Medium Enterprises, South-West Region, Solomon Aderoju, said, the cash crunch would affect the confidence of those at the grassroots in the banking sector.

He said, “Financial inclusion is to engender opening of accounts to ensure that you don’t keep your money under your pillow. It is also to help the SMEs to have a structured business, and also to control money in circulation. But with what is happening now, the confidence is lost. People will not have the confidence to keep their monies in the banks.”