FG bans importation of raw sugar from January 1

Olusegun Aganga

MINISTER of Trade and Investments, Dr. Olusegun Aganga, Monday, said the Federal Government has concluded plans to ban the importation of raw sugar with effect from January 1, 2013.

He also disclosed the government expects to generate $17.4 billion in 2013 from planned introduction of weight measuring in some sectors of economy, in 2013, while also saving the nation $3 billion within the same period.

Aganga who spoke at the Ministry of Trade & Investments’ second annual seminar for Industry Correspondents and Group Business Editors in Abuja said the proposed ban on all sugar in retail packages was part of the federal government’s National Sugar Master Plan. Currently, there are two major investors in sugar industry which are Dangote Sugar Refinery and Bua Sugar Refinery.

The minister noted that objectives of the National Sugar Master Plan include raising local sugar production to attain self sufficiency, stemming the tide of high level importation, creating of huge number of job opportunities, as well as contributing to the production of ethanol and generation of electricity.

He explained that currently 98 percent of brown sugar which are refined into white sugar is imported into the country from Brazil, adding: “All these are going to change next year as only investors who are committed to backward integration in the sugar sector will be given licence to import certain quotas into the country in order to augment local production.

“We want to replicate the success story of backward integration policy in the cement industry in the sugar industry. We won’t allow the importation of brown sugar again from 2013.”

Elaborating on the National Sugar Master Plan (NSMP), the Executive Secretary, National Sugar Development Council, Abuja, Dr. Latif Busari, emphasised that the council would adopt high graduated tariff structure on sugar importation, mandatory backward integration programme for refineries, provision of investors-specific incentives to discourage importation of raw brown sugar and attract investors into the sector.

He listed other strategies to include regulation of the entire regime of sugar importation through quota allocation benchmark on local; production, robust monitoring and evaluation framework to ensure compliance with milestones and time-lines and enlargement of the sugarcane value chain players.

Foreign direct investment
Busari said the ban was expected to attract an estimated $3.1 billion foreign direct investment into the country, deepen banking sector via increased loan syndication, savings of foreign exchange on sugar imports and earnings on sugar exports to be deployed to other critical sector.

He said that with backward integration in sugar, 1.8 million tonnes of sugar and 161.2 million litres of ethanol annually would be locally produced per annum. It is also expected to create 37,378 permanent jobs and 79,803 seasonal jobs, save $65.8 million in foreign exchange on fuel imports annually, and $350 to $500 million in foreign exchange on sugar imports annually.

On metering through weights and measures, Aganga said that the regulation was introduced to checkmate cheating of Nigerians both in public and private sectors, stressing that it would first be implemented in the oil and gas and will extended to  other sectors later.

He said: “The regulation if well implemented will save the economy more than $3 billion and $17 billion in revenue by 2013. Before now, we have been relying on UNCTAD data for information on new investments that come into the country, but from January 2013, we will no longer rely on UNCTAD data.”



source:vanguardngr

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Anti-Corruption Network Protests N2.1 Billion Mint Scandal

A group, the Anti-Corruption Network, on Monday staged a protest at the Victoria Island, Lagos offices of the Nigerian Security Printing and Minting Company, NSPMC, over the missing N2.1bn. it called on the Federal Government to sack and prosecute the entire management and board of the minting company.
The money, newly-printed N1000 notes, allegedly disappeared from the vaults of NSPMC last week.

The group also said that any attempt to sweep the case under the carpet would be severely resisted, noting that considering the fact that it will require at least, one 30-tonne truck or three bullion vans to move such a huge volume of physical cash, it is ridiculous to say that such money disappeared without a trace. Lagos State Coordinator of the group, Mr. Ayo Oyalowo, said, “We are gathered here today as law-abiding and concerned citizens of Nigeria to show our displeasure towards the shameless and barefooted looting that has characterised the present government in Nigeria.

“How do you explain the disappearance of a whopping N2.1bn from the vaults of the NSPMC? And as we speak, all that have been done or we have heard from the officials are some half-hearted and unconvincing speeches.

“Let the Federal Government of Nigeria immediately fire the entire management and board of NSPMC. We also ask that the Economic and Financial Crimes Commission diligently prosecute anyone found culpable in this shameful act.”

He added that a society where criminals continued to get away with huge crimes is an open invitation to anarchy as such development will eventually force people to take the law into their own hands.

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AMCON Takes Over Aero, Appoints Ibru CEO

Following a restructuring by the Asset Management Company of Nigeria on Aero Contractors Airlines, the Managing Director, Captain Akin George has resigned, said a statement by the company.
For some months now, AMCON has been involved in the running of Aero after it took over some of its debts running into billions of naira from banks.

The statement read, “Following the commencement of a restructuring exercise initiated by the AMCON with the support of the board of Aero, the Managing Director of Aero, Capt. Akin George, has resigned. This is the beginning of a restructuring exercise that will make the airline slimmer and stronger, with the aim of making it more competitive. George has served Aero for 24 years in various capacities.”

The Chairman of the board, Mr Funso Kupolokun, was quoted as saying, “The board accepts the resignation of Capt George and appreciates the services he rendered to the airline over the past two decades. We wish him success in his future endeavours.”

The statement also said that the Deputy Managing Director, Mr Obaro Ibru, has now been appointed as the acting Managing Director. He has a vast experience in aviation and banking, ranging from Aviation Project Development, Consumer Banking, Product Development, Strategy, Internal Control and Compliance and Business Process Engineering among others.

The resignation of the CEO confirms the rumours that had been going around throughout last week. This is after the Managing Director of AMCON, Mustapha Chike-Obi had a few months ago said AMCON was planning on restructuring the company.

Chike-Obi told the National Assembly at a recent public hearing that airlines owed AMCON N135bn. It has also been learnt that the government agency might force partnerships between local and foreign airlines for better management, as Nigerian airlines are generally facing financial distress.

However, the Federal Government is mooting the idea of setting up an aircraft leasing firm to assist domestic airlines acquire airlines.

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Beyoncé And Pepsi Strike Mega-Deal

Late Sunday Dec. 9, Pepsi hit the newswires with word of an ultra-mega deal with Beyoncé, taking the 10-year-old partnership to a new global scale.

The New York Times describes it as a “hybrid project with Beyoncé that will include standard advertising like commercials as well as a multimillion-dollar fund to support the singer’s chosen creative projects.”

“Pepsi embraces creativity and understands that artists evolve,” Beyonce said in a statement. “As a businesswoman, this allows me to work with a lifestyle brand with no compromise and without sacrificing my creativity.”

For now, the brand has simply said that “Beyond the partnership with Beyoncé, we are using our global scale and scope to create a platform to support multiple country-specific Pepsi musical artists.” The most likely interpretation is that they don’t want to be thought of as a company that is paying hired guns to promote the brand, but are moving more toward a social interaction with artists.

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Africa’s 10 Biggest Companies

There is no shortage of big businesses that call Africa home. The Africa Report website maintains a list of the top companies on the continent - let’s take a look at the 15 biggest, based on earnings during 2011..

1. Sonatrach
   
   $58.7 billion
   
   Winning the biggest business race by a wide margin is this Algerian oil & gas giant. Sonatrach keeps most of its focus on the country’s rich oil and gas fields, but has expanded to operations in other places. It also does work in other industries, such as the desalination of seawater and power generation. Sonatrach invests in or owns 18 major companies, including an airline.
   
   
   
   2. Sonangol
   
   $22.2 billion
   
   Though this list is dominated by South African companies, the top spots go elsewhere. Sliding in at number two is the Angolan oil giant Sonangol. It is practically a monopoly in the country, which is Africa’s third-biggest oil producer. Under its umbrella sits over 30 subsidiaries - most of which do business with Sonangol to help it reach its needs. These include railways, transport systems, telecommunications companies and refinery facilities located across the globe.
   
   
   
   3. Sasol
   
   $18.3 billion
   
   Energy is the name of the game for SASOL, which has interests in coal, oil, gas and more. It recently made a massive investment in a gas-to-fuel plant in the U.S. - to the tune of $21 billion - and has a presence in 38 countries. It can be found on every continent and is very active in the African energy market. SASOL is said to contribute 4 percent of South Africa’s GDP.
   
   
   
   4. MTN Group
   
   $17.2 billion
   
   Though it is the smaller of South Africa’s two mobile giants, MTN has a much larger global reach than its competitors. It is present in sixteen African countries and several in the Middle East. Established in 1994, by mid-2011 the group boasted having over 147 million subscribers. In recent years it has made good on expanding in West Africa and the Middle East, helping it collect some nice returns.
   
   
   
    
   
   5. The Bidvest Group
   
   $16.5 billion
   
   Large corporate groups often have their fingers in many pies. Still, Bidvest takes this to a whole different level. Though securely a South African company, it has operations across the planet, dealing in anything from travel to transportation to food services - of which Bidvest is one of the largest in the world. Said to employ over 100,000 people, Bidvest also has businesses in the fields of stationary, medical waste management and industrial lighting. Recently it has made an offer to buy Amalgamated Appliance Holdings, of which it already owns a share and which handles brands such as Russell Hobbs and Salton.
   
   
   
   6. Eskom
   
   $13.7 billion
   
   Though it is plagued with aging infrastructure, Eskom still remains the biggest generator of power in Africa and one of the biggest in the world. It generates 95 percent of power used in South Africa and also meets 45 percent of the rest of Africa’s power needs. There isn’t any company in Southern Africa that plays remotely the same role as Eskom, placing it in a good position to take in a lot of money - aided by its lucrative protection as an asset controlled by the South African government.
   
   
   
   7. Shoprite Holdings
   
   $10.14 billion
   
   
   One of Africa’s richest men sit at the head of this table: a retail giant found across the continent. Its stable is full of pedigree brands: Shoprite, Checkers, OK, House & Home, Medirite Pharmacies and a multitude of shops based in all forms of retail. In total the group has control over or input in more than 1,700 shops - located in countries that include South Africa, Namibia, Zambia, Tanzania and Mauritius. There are Shoprite stores in 17 African countries. It is listed on the South African, Zambian and Namibian stock exchanges.
   
   
   
   
   
   
   8. Sanlam
   
   $10.12 billion
   
   Founded nearly a century ago, Sanlam has evolved from its beginnings as a mere insurer to a large financial services group. It has a presence on both the Namibian and South African stock exchanges. Physically it operates in numerous countries on the continent and across the globe, including Tanzania, Nigeria, Ghana, and Malawi - as well as the U.K., India and Australia. It very recently made moves to enter the South-East Asian market, by buying a large share of a Malaysian insurance company.
   
   
   
   
   
   9. Vodacom Group
   
   $9.2 billion
   
   This telecommunications giant has done well, reaching far beyond the borders of its home base in South Africa. Today the Vodacom Group provides access to mobile communications in five African countries, totalling over 30 million customers. Its South African operation holds more than 50 percent market share in that country.
   
   
   
   
   
   10. Imperial Holdings
   
   $8 billion
   
   Measured by turnover, the Imperial Group is the 12th-largest company in South Africa. It owns the largest number of car dealerships in the country, which cover just about every major brand available. Beyond that it has a large rental division - including Eurocar and Tempest Car Hire - and is also the largest privately-held logistics company in the country. The group recently expanded into delivering pharmaceuticals. It has a large footprint across Africa and parts of Europe.
   
   
   
   
   
   

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