08 Dec

Daily Watch – 61 percent of flights delayed in Q3, Kellogg makes ₦6bn bet on Nigeria

  • PENGASSAN has threatened to stage a countrywide strike from 18 December over a “mass sacking of workers”. The union said that it disputed the treatment of its workers by domestic oil and gas companies and marginal field operators. There had been “an apparent failure of relevant authorities of government to call to order these recalcitrant organisations,” it said. “I have directed that they should be engaged quickly to resolve what the issues are as soon as possible,” junior oil minister, Emmanuel Kachikwu, told reporters in Abuja.
  • Nigeria’s January oil exports are expected to slip back from a 21-month high hit in December, according to a Reuters compilation of loading plans on Thursday. Crude oil exports of 1.76 million barrels per day are scheduled for January on 62 cargoes. The total compared with exports set at 1.94 million bpd in December, the highest scheduled since March 2016. Traders said some of the December cargoes could slip into January, but that the exports are likely to be slightly lower on the whole. The programme also included three cargoes of Akpo condensate for a total of 97,000 bpd, the same level as December.
  • Petrolex Oil & Gas says it plans to build a 250,000 barrel-a-day capacity refinery in Ogun state. In a Bloomberg interview, CEO Segun Adebutu said the refinery will be completed in 2021. The company, which plans to spend $3.6 billion on the construction, is already working on the front-end engineering design. Adebutu said the company plans to inaugurate a storage-tank farm, other mid-stream infrastructure and refinery construction, which will commence in December. The tanks will be connected to a pipeline in Mosimi which will distribute products across the country. The refinery project will be funded with loans from banks, international lenders and revenue from Petrolex and the company also plan to build a fertilizer plant, lubricants facility and a liquefied petroleum gas plant. Other ventures on the horizon include an NSE listing in the next 10 years and direct employment for 10,000 people by 2021 when the projects will be up and running.
  • Domestic airlines in Nigeria delayed 61 percent of their flights between July and September, a report released by the Consumer Protection Unit of the NCAA has shown. NAN reports that domestic airlines in Nigeria delayed 8,173 flights and cancelled 96 flights out of a total of 13,255 flights. Air Peace took the lead with 2,166 delayed flights and five cancelled flights out of 3,811 flights. Arik Air was next with 2,057 delayed flights and 32 cancellations out of the 3,285 flights it operated during the review period. The report said Dana Air operated 1,762 flights with 1,079 cases of delayed flights and five cancellations. Med-View Airline recorded 986 delayed and seven cancelled flights out of the 1,394 flights operated by the airline during the period. The airlines blamed the delays and cancellations on operational reasons, the continued high cost of aviation fuel and inadequate navigational aids at many airports in the country.
  • The Lagos State Internal Revenue Service on Thursday shut 11 hotels, restaurants and event centres over their alleged failure to remit their taxes under a 2009 law. Seyi Alade, director, legal services of the LIRS, said this after a state-wide tax law enforcement exercise in Lagos, adding that the firms owed the state government ₦354.75 million in unpaid taxes. Alade said that the government had started full enforcement of all aspects of tax laws on defaulting taxpayers, adding that 52 high net-worth personalities, 20 entertainment celebrities and over 200 corporate bodies were currently being prosecuted at the State High Court for a range of tax offences.
  • Stanbic IBTC Bank and Stanbic IBTC Capital have facilitated a ₦6 billion medium-term facility to Kellogg Tolaram Nigeria to finance the construction of a new cereal manufacturing plant in the Lekki Free Trade Zone in Lagos. The institutions acted as the sole arranger and lender of the facility respectively. The factory, with a capacity to produce 10,000 metric tonnes of cereals annually, is a joint venture between US food giant the Kellogg Company and the Tolaram Group, set up to manufacture snacks and breakfast foods for the West African market. This comes as Stanbic IBTC Bank PLC and its holding company, Stanbic IBTC Holdings PLC retained their AAA national ratings by Fitch Ratings, reaffirming their strong fundamentals and ability to meet their financial commitments as they fall due.