Flour Mills is set to merge five of its subsidiaries after an approval from its shareholders. In a resolution reached during a court-ordered meeting, the merger will be carried out under a Scheme of External Restructuring. All the assets previously belonging to the fertiliser arm of the group will now be transferred to Golden Fertiliser. In the same vein, Golden Fertiliser will take up all the pending court cases pertaining to the fertiliser arm of Flour Mills. National coordinator of the Independent Shareholders Association of Nigeria, Adebisi Adeniyi, commended the move and hoped it would result in more profitability. Chairman of Golden Fertiliser Company, Paul Miyonmide Gbededo, who said the merger was needed to streamline operations and reduce administrative costs, assured that the shareholders’ approval to will guarantee maximum returns on their investments. He also added that. Flour Mills is a Nigerian company with diversified business operations cutting across such areas as food, fertiliser, and agricultural produce. It was listed on the Nigerian Stock Exchange in 1979 and its stock is currently trading at ₦19.
Operations have resumed at Dangote Tomato Factory, two years after the factory, which is based in Kadawa in Kano state, was shut down due to declining market demand resulting mainly from dealers’ dependence on foreign imports and smuggling activities. According to the MD of Dangote Tomato Farms, Sani Kaita, the factory resumed operation to meet local demand after reaching an agreement with farmers on pricing, which was another factor threatening Dangote’s production. Back in 2016, the farm had been infested by Tutsa absoluta, which cost tomato farmers ₦2 billion. This also contributed to the shut down of Dangote Tomato Factory in 2017, as many farmers were disinterested in continuing farming the crop after the pest infestation.
A Polyethylene terephthalate plastic bottle recycling firm, Lexsz Plastics, has invested $8 million in a factory in Nigeria after China banned import of trash into its country. The factory situated along the Lagos/Ibadan expressway has 400 direct staff members and about 10,000 indirect staff. According to the Executive Director of the firm, Oba Olufemi Akowe, the investment in Nigeria is coming after the government of China, the world’s biggest scrap importer, announced on 1 January, 2018, that the country will stop accepting virtually any recycled plastic and unsorted scrap paper from abroad. Lexsz, which has been in business since 2003, currently has four production lines, refining and processing for the entire West African region. It has been into the collection of various beverage bottles and classifications of waste plastics recycling screening, washing and crushing in Xiamen, a port city in China.
A report from the Electricity Generation Companies shows that inaccurate data, government interference, and inefficiency are major factors, currently affecting power supply in Nigeria. According to the GenCos, the power sector is in dire need of total overhaul as investments for the growth of the generation sub-sector do not depend on the returns from the distribution sub-sector. It further said that investments to improve data quality and adequacy in all sub-sectors of the industry, with the priority being the distribution sub-sector for obvious reasons will solve a number of issues inhibiting the growth of the sector, especially the inability of the DISCOs to make capital investments. It was also stated that government intervention through the CBN to continue market interventions will be an effort in futility without a better understanding of the market through bankable data. Statistics from the Nigerian system operator on load demand over the last three months average over 22,000MW, indicating a suppressed demand of over 17,000MW compared the present generation, the report shows in attempt to explain the sectors’ development tied to demand chain and facilitated through a pool where the output from all generators are aggregated and scheduled to meet demand. Explaining the appalling power situation, the report stated: “Currently Nigeria has installed capacity that is over 13,000MW, available generation that is over 7,500MW and average generation that is about 4,000MW. On October 22nd 2018, average energy output was 3,854MWh/hour peak Generation attained on October 22nd, 2018 – 4,729MW, showing low/minimal optimization of generation capacity due to constraints on the transmission and distribution networks.