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Sugar War: Dangote Wants To Monopolize Market, Exploit Nigerians In Price Increase – BUA

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Sugar War: Dangote Wants To Monopolize Market, Exploit Nigerians In Price Increase - BUA

The management of BUA group in a five pages response to allegation by the Chairman, Dangote Industries Limited, Alhaji Aliko Dangote, alongside Chairman, Flour Mills of Nigeria Plc, Mr. John Coumantaros, that establishment of a new sugar refinery plant in the country poses a threat to the attainment of the National Sugar Master Plan (NSMP) as well as sustainability of the country’s local sugar industry, said, Dangote’s petition came after it had refused to succumb to their pressure to increase its price.

 

In a joint petition to the Minister of Industry, Trade and Investment, Niyi Adebayo, dated January 28, 2021, Chairman, Dangote Industries Limited, Alhaji Aliko Dangote, alongside Chairman, Flour Mills of Nigeria Plc, Mr. John Coumantaros, argued that they had in 2019, warned about the risk of establishing a new refinery, adding that they got assurances that in line with the federal government’s policy on Backward Integration Programme (BIP), “no new refinery will be allowed to operate in Nigeria”.

 

They argued that “Even before its surreptitious investment in additional refining capacity, Nigeria already has enough refining capacity to satisfy demand today well into the future.

 

“The impunity with which BUA has contravened the provisions of the NSMP has placed the other players who are abiding by the regulations, not only at a significant disadvantage but has discouraged them from undertaking the huge investments that would deliver the desired objective of 100 per cent local production of sugar, unless, of course, the ministry wades in and addresses the situation, they added.

 

Daily Post reported that in its reaction, BUA, in a letter dated February 11, 2021, addressed to the Minister, took “serious exception to the ludicrous claims by its two major competitors that it aims to circumvent the BIP of the sugar industry.”

 

BUA disclosed that in 2020, before Ramadan, sugar was sold for around 18,000 Naira per bag, but as the Ramadan fasting began, the price skyrocketed to 30,000 per bag, the increase in sugar price during the Ramadan and other festive periods by the Dangote company was needless.

 

READ ALSO: Dangote, Tinubu, N90 Million In Aisha Buhari Book Launch, Full List

 

BUA accused Dangote of exploiting Nigerians by increasing the price of his products particularly when its been needed and people have no choice than to patronise.

 

BUA vowing  to frustrate the alleged decision by the Dangote group to monopolize Sugar trade in the country, stated that though the Port Harcourt refinery is mainly for exports, BUA is allowed under the Nigeria Export Processing Zones Authority (NEPZA), Act and current approvals/rules to intervene locally in order to stabilise sugar price, “where it is absolutely necessary- in the face of arbitrary price increases and collusion to force scarcity of the product locally”.

 

He said:”The same NEPZA Act upon which this project is based, gives the permission to process, add value, and export at the same time. Companies under this act are allowed to process and if they so wish, sell 100 per cent of their production in Nigeria with payment of duties based on the current raw materials tariff.

 

“As a matter of fact, Aliko Dangote of Dangote Industries, who is one of the complainants alleging and attacking to this approval has also applied and obtained the same approval for his refinery project in Lekki, Lagos State where he is currently enjoying the same benefits of being in an Export Processing Zone (EPZ).”

 

He added:”What BUA sugar is doing is legal and within the confines of the law. We have not done nor are we doing anything wrong.”

 

Nationalwatchng, recalls that Nigerians took to social media earlier in the week to criticise, the price variety in cement price, in Nigeria and Zambia.

 

Nigerians complained that while a bag of Dangote 3x cement produced in Nigeria sales at, 55 Kwasha, (N1,500), in Zambia, the same cement produced in the country sales higher at N3000.

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$1 Billion Operational Costs Push Private Jet Owners into Bankruptcy

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$1 Billion Operational Costs Push Private Jet Owners into Bankruptcy

Economic dire strait in which average Nigerians find themselves may have caught up with the wealthiest and nouveau riche, pushing many into bankruptcy.

Private jet services, a pre-pandemic plaything of very rich and classy Nigerians, have dipped severely. Most of the expensive ‘celebrity birds’, The Guardian learnt, are now an albatross on the wallet of their owners.

With lockdowns and inability to use the aircraft since the onset of the COVID-19 pandemic, leading to rising maintenance costs of about $4 million depending on the nature of the exercise and size of the aircraft, private jet owners are groaning under the burden of such costs.

Indeed, the present challenge has led to a drastic reduction in the number of private jets in the country, declining from over 200 in 2015 to about 95 today, out of which only 46 are active.

Operators too are deploying creative measures to cope with the trying times and drawn-out debt crises, though in a flagrant violation of civil aviation rules.

Besides evading duties due to the Federal Government, more owners are boycotting local rules to retain foreign registration numbers.

Most disturbing for the sector is the illegal use of private jets for commercial and chartered operations – an encroachment into the turf of licensed air transport operators.

The apex regulator, Nigerian Civil Aviation Authority (NCAA), acknowledged some of the gaps that are consistently explored by some operators, though it assured that regulatory efforts were on to block loopholes and check illegalities.

Losses accrued to scheduled commercial aviation in Nigeria, due to the COVID-19 pandemic were put at $994 million in 2020. The International Air Transport Association (IATA) that measured the impact added that no fewer than 125,370 jobs were affected, with loss of contribution to the Gross Domestic Product (GDP) in excess of $885 million.

More expensive General Aviation segment, which shelters private jet operators, appears to feel the pinch the most. Chief Operating Officer of the Private Jet Nigeria, Omotade Lepe, said the sub-sector has lost between $1 billion to $5 billion to the pandemic, which silenced the erstwhile luxury market.

Lepe said the pandemic period has been the most challenging for operators as the sector suffered revenue loss, decline in flight requests and fixed overhead running.

His estimate may not be out of place. The Nigerian airspace used to be a ready market for some of the most expensive jets emerging from manufacturers like Bombardier and Hawker Beechcraft Corporation.

On parade for about six years were Gulfstream jets that range between $15 million to $80 million, Hawker series of between $15.3 million and $34 million, Challenger Global 5000 offered for $50 million to $59 million each and Falcon 7x that sold for $49 million, among others.

Those are new planes. Second-hand jets were also on offer, ranging between $1 million and $15 million – for the most affordable. Their maintenance cost a year goes for between $500,000 and $4 million – whether flown or not!

Today, not many of those luxury jets have taken to the sky in the last one year, yet racking up heavy billings daily. For instance, two popular politicians that have a fleet of about eight exotic jets between them have grounded seven lately.

 

Among them are two Gulfstream G650s that each sold for $73 million. That is a heavy loss of revenue for the operator, crew and ancillary service providers.

 

An Air Operating Certificate (AOC) holder stated that except for the very top politicians, business moguls and few mega pastors, the private jet business is almost dead in the country.

“I don’t think it is all about the dip in fortunes. That may be true for first-time owners that just realised how extremely expensive it is to operate one. For others, it is more about the downtime in global businesses, risk of exposure to COVID-19 and the hurdles of scaling travel restrictions overseas.

“So, if it is not an emergency, like medical, business-related and meetings of the very big boys in Johannesburg, Dubai or London, our rich now rarely jump on the jet for the fun of it like we saw in the past.”

NCAA records also affirmed the slump in general aviation, indicating about 95 aircraft in the country, out of which 46 are active as at June. However, of the 95, a total of 72 are still registered abroad, in violation of the extant rules.

The Nigerian Civil Aviation Regulation (NCARs) 2015, Part 8.2.1.9 allows foreign aircraft to operate locally for two to 12 months and an initial renewal of another six months to complete local registration.

Operators have, however, found a way around that requirement, going in and out of the country to evade local registry.

 

An operator told The Guardian that most private jet owners would continue to domicile registry abroad due to the economic benefits accruable.

“Most of our aircraft that we operate on behalf of clients are registered in South Africa or Europe. That is where the real business is, if you ask me. First, aircraft that are registered there have good second-hand value. As an owner, you can easily trade it for another and at a fairly good price.

 

“Second, the amount we pay on insurance premiums is cheaper in those places. These two advantages are not possible in Nigeria. To be registered in Nigeria is already a minus, and you will pay almost times-five on insurance because we (Nigeria) are seen as a high risk region,” he said.
SIMILARLY, the Nigeria Customs Service (NCS) has found at least 30 out of 65 private airplanes, so far verified, to be in default of duty payment to the Federal Government.

They are planes that came into the country by Temporary Importation agreement, which allowed operators to bring jets without payment “because it was secured by a bond.”

Customs Public Relations Officer, Joseph Attah, said: “Thereafter, many of them failed to turn up to pay on the expiration of the agreement, which necessitated the verification.”

Another illegality charged against some of the private jet owners is the alleged incursion of business jets into charter operations and airlift of passengers for reward services.

The Nigerian Civil Aviation Regulations 2015, Part 18.2.3.1 stated that Air Transport Licence (ATL) holders and Airline Operating Permit (AOP) holders with valid Air Operators Certificate (AOC) are the only ones authorized to carry out charter operations in the country as no person shall use aircraft in Nigeria for hire and reward without the above requirements.

Charter airline operator, Captain Ibrahim Mshelia, described operations of private jets in commercial services as economic sabotage.

Mshelia, who is also the Chairman of West Link airline, said the NCAA and the Directorate of State Security, DSS, should go after such people for both security and economic infractions that deprive the sector of a mandatory five per cent Ticket Sales Charge (TSC), among others.

Mshelia said even passengers of those illegal operators were endangering themselves, saying if anything happened to them, “the owners of aircraft would leave as the aircraft was not certified for hire and reward and so would not even compensate them or their families.

“The fact is that the government should be more worried because it is losing a lot of revenues. I pay the five per cent Ticket Sales Charge (TSC), even if I don’t have the cash with me. I owe it and I must pay it. I can’t jump it. But those that are doing these sharp practices are not captured in the NCAA data. So, the NCAA cannot go after them.

“I think the Department of State Security should have intervened because this is purely economic sabotage for them to remain in this business for this long. I felt that if the Director-General of NCAA has full autonomy, then he would do his job without looking at the body language of the minister.”

Director-General of the NCAA, Capt. Musa Nuhu, said they were aware of irregularities and complaints about the general aviation, and were making moves to check all excesses through new regulations that are awaiting passage at the Senate.

Nuhu confirmed the gross violation of aviation rules with some private jet owners exploiting gaps in the civil aviation Act. He observed that though regulating “the black market” was tough, the NCAA has not relented in carrying out due investigations and issuing sanctions to violators.

“I must say a lot of operators have found a way to go around that requirement by going in and out, and cycling through the process continuously. Yes, it is a bit unusual where you have foreign-registered aircraft more than the Nigerian registered in the country, and we try to encourage the foreign-registered to de-register and register here in Nigeria.

 

“We are getting there but at a very slow pace and maybe they need to see a more stable macroeconomic environment so they can de-register and put in a Nigerian registration. A bit more confidence in the regulatory function will help do that. We try to work with them to see how they can de-register. I have seen a couple of requests for that and we are making progress,” Nuhu said.

Former Commandants of the Lagos Airport, in the 90s, Group Capt. John Ojikutu (rtd) said brazen excesses of private jet operators were alarming, though not new.

Ojikutu blamed both the NCAA and Customs for the abuses. “The Customs is culpable for waiting too long to call foul the acts of the aircraft owners and the NCAA. The NCAA should account for those that are operating commercial services with foreign registration numbers.

“In the days when I was the military airport commandant at Murtala Muhammed Airport (MMA), foreign registered aircraft must get security clearance, a limited number of periods to stay and must not operate beyond one local or domestic airport outside its international port of entry. The NCAA is in charge and they should take the blame for violations,” Ojikutu said.

 

The Guardian.

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DMO Lists N150b FG Bonds For Auction

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DMO lists N150b FG bonds for auction

The Debt Management Office (DMO), on Wednesday, announced the auctioning of three Federal Government bonds of N150billion at N1,000 per unit.

 

Details obtained from DMO’s website said that the three bonds were valued at N50 billion each, with interest rates of 16.29 per cent; 12.50 per cent and 9.80 per cent, respectively.

 

It listed the auction date as April 21, while settlement date is April 23.

 

“Minimum units for sale are N50,001 thousand and in multiples of N1,000 thereafter.

 

“For re-openings of previously issued bonds, successful bidders will pay a price corresponding to the yield-to-maturity bid that clears the volume being auctioned plus any accrued interest rate on the instrument,” the DMO said.

 

READ ALSO: The Books Of Numbers, Job, Gave Women Right To Inheritance – Justice Rhodes-Vivour

 

It explained that interest rates would be paid “semi-annually,” with bullet repayment on the maturity date.

 

The office said that the bonds qualify as securities in which trustees can invest under the Trustee Investment Act.

 

“It also qualifies as government securities within the meaning of Company Income Tax Act and Personal Income Tax Act for tax exemption for pension funds and other investors.

 

“It is listed on the Nigerian Stock Exchange and FMDQ OTC Securities Exchange,” DMO explained.

 

The DMO added that all federal government bonds qualified as liquid assets for the calculation of liquidity ratio for banks.

 

It also assured that the bonds were backed by the full faith and credit of the federal government and charged upon the general assets of Nigeria.

 

NAN

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What You Should Know About Data When Browsing With MTN

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What You Should Know About Data When Browsing With MTN

With increase in online presence,all smart phone users, especially in Nigeria complain of high burn rate. 

 

While many complain that the cost of data is too expensive, all complain that the burn rate is annoying.

 

In a conversation with a customer care agent working for MTN, a leading mobile network provider in Nigeria, the agent told Nationalwatchng, that 8 in 10 calls in to the call center, he picks, is complain from customers on data burn rate.

 

However, to assist customers determine and calculate their data usage, MTN, has invented a “Data calculator”, to help customers, calculate their data usage. The data calculator is also to help internet subscribers be conscious of their online activities.

 

Below is the burn rate of data in when browsing with MTN line, with this you can then calculate, why your data is burning down.

 

Surf the web –                    1 minute browsing online = 1 MB

 

Use social media  –             1 minute of browsing and posting to social media = 4 MB

 

Send & receive emails  –    1 email (with no attachments) = 20 KB

 

Send & receive emails  –    1 email (with standard attachments) = 300 KB

 

Game online  –                   1 minute of playing online games = 3 MB

 

Stream music  –                  1 minute of streaming music = 2 MB

 

Stream non-HD video  –     1 minute of streaming non-HD video content = 4 MB

 

Stream HD video   –            1 minute of streaming HD video content = 15 MB

Note: This data usage estimate is only a guide. Your usage may vary during actual circumstances.

 

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