Firm Establishes N121bn Fertilizer, Power Plant in Edo State
depreciation in interbank FX rates since early 2014. The single-digit consumer price inflation recorded in the past year may be about to change. As we move further away from Nigeria’s harvest season, food-price trends are likely to be less benign. The transmission of NGN weakness to Nigerian prices – which has been slow to date – should also pressure prices higher.”
The bank added that the cancellation of Nigeria’s official Retail Dutch Auction System (RDAS) auctions in February was a necessary response to pressure on FX reserves.
“However, the move to a single interbank market initially triggered localised shortages of fuel products. These were resolved only after the authorities provided a support package for the oil-marketing sector, partially compensating oil marketers for FX volatility and directing banks to make letters of credit available to the sector so that fuel-product imports could resume. being made by Chellarams to comply,” a source said.
While Chellarams got extension, the fate of Aluminium Extrusion Industries Plc could not be ascertained as at time of going to press. Aluminium Extrusion, which has a deficiency of 17.55 per cent, had March 4, 2015 deadline to comply.
There are other companies with free float deficiencies but have received permission from the NSE to comply at later dates. For instance, Dangote Cement Plc has 9.07 per cent free float as against 20 per cent stipulated by the NSE requirements. However, Dangote Cement has up till October 26, 2016 to comply. Union Bank of Nigeria Plc, which has a free float of 13.98 per cent has been given June 30, 2017 compliance date.
Adibe Emenyonu
In its bid to actualise the Nigeria local content policy, a N121 billion fertiliser plant and 350 megawatts power generating plant have been established in Ologbo, in Ikpobha Okha Local Government of Edo State.
The two plants, when completed are expected to create more than 2,000 jobs.
Chairman and Chief Executive Officer ( CEO) of OBAX World Limited, the company handling the constructions, Patrick Obasuyi, disclosed this when he hosted the people of the community in appreciation of their cordial relationship with his firm.
Obasuyi, who commended President Goodluck Jonathan for creating the opportunity for OBAX to excel through the local content policy, said: “We have been able to build many plants in the past seven years in Nigeria but now we are building our first fertiliser plant in Nigeria and the second time we building a power generation plant.”
According to him, “The plant that we are trying to build is going to cost us $250 million while the power plant will cost about $300 million. It is a new day in Ologbo, where we are going to build these new plants. We are not looking for any money because we have the money to build the plants. The only thing that we are asking from the community is to cooperate with us, work with us so we can employ over 600 people in this community. The first time I came to Edo, I came to Ologbo and I have never had any problem with this community so I am very grateful to you for that.”
The OBAX CEO, who further stated that he had to convert a timber company to oil and gas to check deforestation in the country declared: “We have to take over a company that was taking our timbers and selling them all over the world thereby causing deforestation, I bought the company because I did not want more deforestation in Nigeria. So I have converted the factory into oil and gas company. We went to school in America, but we did not forget our home, and we want to bring American technology and genius of the African people to develop our community”.
Also speaking at the event, one of the major partners, Feng Rui said the reason he decided to partner Obasuyi was because he is a reliable businessman who has done several businesses in America.