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Fitch Ratings Reduces Dangote’s Creditworthiness

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Fitch Ratings, a reputable international capital company, has reduced the rank of Dangote Industries Limited (DIL) from AA(nga) to B+(nga), citing concerns over the conglomerate’s creditworthiness compounded by Nigeria’s “corporate governance.”
 
Aliko Dangote is Africa’s richest man
Fitch Ratings downgrades Dangote’s creditworthiness
 
“The downgrade reflects significant deterioration in the group’s liquidity position following lower-than-expected disposal proceeds,” Fitch said in the report released on Monday, adding that Dangote Industries has been placed on Rating Watch Negative (RWN).
 
“The group has senior secured debt raised at subsidiary levels amounting to USD2.7 billion at end-2023 representing 49% of total group debt,” Fitch said in the report, which also highlighted the blow that naira devaluation dealt Dangote’s enormous dollar-denominated debt. “We do not expect a positive rating action until the company’s liquidity position improves substantially.”
 
The international rating agency said that Dangote Industries had “immediate debt servicing requirements related to the syndicated loan raised to finance the construction of Dangote Oil Refining Company (DORC)” in Lagos.
 
Fitch said any further delay in meeting funding requirements would increase Dangote’s chances of defaulting “and lead to further rating downgrade.”
 
The Fitch report indicated that Dangote Industries recorded a significant loss in the trillions following Nigeria’s naira devaluation, which caused a “mismatch between USD-denominated debt and domestic revenues.”
 
Specifically, the Nigerian conglomerate suffered a N2.7 trillion in 2023.
 
Fitch Ratings projected the naira devaluation to continue at a higher rate, which could further push Dangote Industries Ltd down the ranks.
 
The report said the Dangote refinery underperformed at 50 per cent capacity in the first half of 2024, churning out 325,000 bpd to 375,000 bpd instead of its 650,000 bpd target of refined crude products.
 
In recent weeks, Dangote Industries Ltd had had its share of run-ins with the Nigerian government over allegations of the attempted monopoly of the oil and gas sector made by oil regulator chief Farouk Ahmed of NMDPRA.
 
There were also claims that the sulphur content of the refined crude products from Dangote Refinery was inferior to that of its imported equivalents.
 
Aliko Dangote had refuted the claims vehemently.
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PHOTO: Courtesy visit to Priesthood Orphanage by Just Friends Club of Nigeria Founder

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Dr. (Mrs) Blessing Echenwo, left, founder of Priesthood Orphanage, Karamajiji, Abuja and Mrs. Maria Cardillo, a member of Just Friends Club of Nigeria, during the visit of the club to the orphanage in Abuja…recently

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Just in: NYSC Releases Batch ‘C’ Corps Members Call Up Letters

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The National Youth Service Corps has announced the release of the 2024 Batch ‘C’ Stream I call-up letters for prospective corps members.

The corps made the announcement in a series of post on its official X (former Twitter) handle on Monday.

It said orientation camp for the stream is expected to start on November 27, 2024 and closes on December 17, 2024.

According to the post, “some prospective corp members posted to Lagos will have orientation in Ogun and Osun.

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“While some of those posted to Zamfara will have in Kebbi and Sokoto etc”

The corps, however, advised prospective corps members to print and sign an addendum, which will be submitted during registration at the orientation camp.

Tips to guide Deployed Prospective Corps Members

Do not travel to the Orientation Camps at night. Break your journey when necessary.
Report on your scheduled reporting date.
Apply for spelling error and name rearrangement on your dashboard.
After documentation in the Camp, you cannot change your Date of Birth, Date of Graduation, Course of Study and Passport Photograph.
Do not report to the Camp if there is any discrepancies in your course of study or with the Date of Graduation on your Statement of Result and your Call-up Letter. Contact your Institution to sort it out.
ATTENTION TO ALL 2024 BATCH ”C” STREAM I MARRIED FEMALE PROSPECTIVE CORPS MEMBERS

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All married female Prospective Corps members (PCMs) who are deployed to States where their husbands are not domiciled should report to the nearest NYSC Orientation Camp for their State of Deployment to be changed.

They are to report during the period of Registration at the Orientation Camps with the copies of their marital and other relevant documents as evidence. Once the change is made it will reflect on theirM dashboard for reprinting.

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Oba of Benin to withdraw suit as Okpebholo restores rights

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The Oba of Benin, Oba Ewuare II, and the Benin Traditional Council may withdraw the suits they filed against the state government as Governor Monday Okpebholo, on Sunday, restored the full statutory rights of the Oba and reversed the policies of the previous administration that impacted the Benin Traditional Council.

A statement on Sunday by Okepebholo’s Chief Press Secretary, Fred Itua, said the governor abolished the new traditional councils in Edo South created by the immediate-past governor, Godwin Obaseki.

Okpebholo also backed the Federal Government’s recognition of the Oba’s palace as the custodian of repatriated Benin artefacts looted during the 1897 British colonial expedition.

Providing an insight into the governor’s gesture, the state Attorney General and Commissioner for Justice, Dr Samson Osagie, said it signaled the resolution of the crisis between the Oba of Benin and the Edo State government leading to lawsuits duringt the Obaseki’s administration.

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Osagies said, “The cases in court are cases which the Oba of Benin himself and the Benin Traditional Council instituted against the state government, and they are all civil matters. And you know that in civil suit or in any suit, parties are encouraged to settle amicably.

“So, if the parties are already settling and one side is already meeting the condition of settlement, the next step you are going to hear is that the party who went to court, which is the Oba of Benin, and the Benin Traditional Council, will instruct their counsel to withdraw the cases from court and that will be the end of the matter.

“The two parties are now settling for harmony and peace to reign, so the government is doing its own side of it.

“This statement is a prelude to discontinuing all legal proceedings with respect to the twin issues of the concession of the Oba Akenzua Cultural Centre by government to the Benin Traditional Council for 30 years and the creation of additional councils.”

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The statement by Okepebholo’s Chief Press Secretary outlined the administration’s commitment to restoring the dignity and authority of the Benin monarch.

“This administration also hereby abolishes the new traditional councils in Edo South, created by the last administration,” the statement noted.

Additionally, Governor Okpebhol revoked the decision of the Obaseki’s administration to convert the Oba Akenzua II Cultural Centre into a motor park.

The government announced plans to restore the cultural centre to its original purpose.

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“This administration is restoring the Oba Akenzua Centre to a suitable condition for its original purpose,” the statement added.

The governor also reinstated the financial entitlements of the Benin Traditional Council, ordering that the status quo before the creation of the abolished councils be maintained.

According to the statement, Okpebholo affirmed support for the Federal Government’s official gazette, which recognizes the Oba of Benin as the rightful owner and custodian of the repatriated Benin artefacts.

He also distanced his administration from the Museum of West Africa Art, instead backing the Benin Royal Museum project to house the artefacts.

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“The Federal Government has also issued a gazette for the recognition of ownership and custody of the repatriated Benin artefacts to the Oba of Benin, Oba Ewuare II,” the statement explained. “Governor Okpebholo respects the rights and privileges of the traditional ruler of Benin kingdom… and pledges the support of his administration to ensure the monarch plays his role as the custodian of the rich cultural heritage of the Benin people.”

Okpebholo reiterated his administration’s respect for traditional institutions and vowed to avoid interference in the internal affairs of the Benin Traditional Council. “The Oba of Benin, as the father of all Benin people, is the sole custodian of the customs and traditions of the Benin people, and my administration respects customs and traditions in the land,” he stated, emphasising the government’s efforts to uphold the cultural and historical integrity of the Benin Kingdom.

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