Nollywood makes nice movies but they have not been making ones which go to the heart. Why? Corporate Nigeria makes better movies. The latest episode is that Dangote Sugar and Flour Mills are suing BUA Sugar to get out of the business of running a sugar refinery in Nigeria: “Backed by the Chairman of Flour Mills of Nigeria Plc, Mr. John Coumantaros, Dangote said in a letter sent to the Trade Ministry that the 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.” You read it well – more supply of sugar will destroy Nigeria!

The BUA Group said the Dangote Group and Flour Mill have not been involved in any backward integration project, rather, they depend on 80% raw sugar allocation which is detrimental to the Nigerian economy in long term. The company said unlike the petitioners, it has been working on backward integration project with BUA’s Lafiagi Sugar BIP, a $250 million sugar refinery set to be completed in 2022.

This Day reported Rabiu, specifically assuring that its sugar export focused project in Port Harcourt, will not affect in any way, the backward integration programme adding that “the only way it will affect Nigerians is that Nigerians will pay lower prices for sugar”.

As a village boy, it was always a happy moment when you put your St. Louis sugar inside your Lipton tea with Ezioma bread ready by the side. It was not luxury because everyone had his or her own big loaf. Ezioma bread was made in Ovim as our industrialists always find a way to take care of home. Then on the big Oriendu Market (every 8 days), Our Society Bread would come from Enugu. That one was always softer – and made by Chief FOC Umunna, the Udo I of Ovum, and one of the men who built Enugu industries. Life was great – yafuyafu even for village kids.

But today, from sugar to bread, everything is a luxury. And yet people are filing court cases to keep it that way.  I don’t care whatever any Nigerian government had offered Dangote Sugar and Flour Mills. The deal today is this: we need affordable sugar, and if BUA can bring that, let it be. 

My principle remains thus: allow everyone to compete on the same terms. Give BUA the same rights given to Dangote and Flour Mills. There is no need for  exemptions. 

Finally, Dangote Refinery had made a claim that only those with refinery license should be allowed to import petrol into Nigeria. If the government buys into that, over time, the refinery can even stop production, and focus on imports. That is why exemptions are bad: everyone needs to have the same rules. 

Punch had reported that Dangote Group has desired  for inclusion in the Petroleum Industry Bill a requirement that the license to import petroleum products should be given only to companies with active refining licenses. The company does think that by having that requirement, companies will invest in local refining business.

So, on this sugar, Nigerian government should allow BUA Sugar to run its show. Possibly, kids in Ovim can enjoy nice tea again.

Yes, they import and it is the same playbook Dangote Refinery is pushing in the PIB bill to make importation of petrol to be exclusive to others running refineries. They always have this: license to refine, and that gives you rights to import, exclusively!

Dangote Group, Flour Mills, File A Petition to Stop BUA from Running A Sugar Refinery

The Chairman of Dangote Group, Aliko Dangote, has moved to stop the BUA Group from running a sugar refinery in Nigeria.

Backed by the Chairman of Flour Mills of Nigeria Plc, Mr. John Coumantaros, Dangote said in a letter sent to the Trade Ministry that the 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.

The letter dated 28 January argued that the country currently had enough refining capacity to meet national demand, demanding that BUA Group’s Sugar Refinery be shut down.

“The mid-term review conducted by the NSDC (National Sugar Development Council) was clear in its conclusions – BUA has failed to invest substantively in local production or comply with its undertakings under its BIP,” Mr Dangote said in a petition jointly signed with John Coumantaros.

“BUA intend only on importing and refining raw sugar whilst claiming to be investing in developing sugar plantations in order to qualify for quotas to import raw sugar,” the petition added.

Dangote said that when the BUA Sugar refinery was opened, he warned the government about the company contravening the rules of the National Sugar Policy, which forbids BUA from selling locally, giving it right to produce for export only.

In reaction, BUA said in a rejoinder to the sugar policy contravention indictment: “BUA takes serious exception to the ludicrous claims by its two major competitors that it aims to circumvent the BIP of the sugar industry – an initiative in which it has invested billions of Naira and is almost nearing completion.

“To thus claim that the BUA PH export focused refinery in an Export Zone will amount to an undermining of the NSMP (National Sugar Master Plan) is false,” it said.

The squabble is more like a continuation of what started in their cement division back in June 2020, over ownership of cement site, when BUA Cement got a restraining order against Dangote Cement, after the police invaded its three sites in Obu Okpella, Edo State.

While it appears to be about infringement on NSMP, BUA said it’s actually more about who controls the Nigerian sugar market.

Chairman, BUA Group, Alhaji Abdulsamad Rabiu, said his investment in Port Harcourt did not in any way pose a threat to the country’s sugar policy, adding that it will rather checkmate arbitrary price increase by the major players among other benefits to the country.

A typical example of arbitrary price increase cited by BUA happened last year, during Ramadan, when the price for a bag of sugar shot up to N30,000 from N18,000 before Ramadan. All due to monopoly, even though Dangote Group and Flour Mill claim that Nigeria’s refining capacity, due to NSMP, had increased to 3.4 million metric tons per annum from 2.75 million metric tons per annum, enough to serve the country.

In their petition, the duo are demanding that BUA Port Harcourt sugar plant be shut down in order for the country to realize the sugar master plan.

“We are particularly surprised by the brazenness as we believe that the choice of location and the publicity campaign behind the investment has been deliberately engineered to provoke public sentiment and pit the federal government against its people,” the petition said.

It said unless the ministry of industry, trade and investment plays an effective policing role of the NSMP, the country’s dream of becoming self-sufficient and indeed a net exporter of sugar would be defeated.

“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,” it added.

They specifically urged the Minister of Industry, Trade and Investment, Mr. Niyi Adebayo, to prevail on the Nigeria Customs Service (NCS) and the Central Bank of Nigeria (CBN) to ensure that the provisions of the NSMP were enforced and that no additional allocation of quota should be given for raw, VHP, or refined sugar for the sugar refinery in Port Harcourt for local market production.

Among other recommendations, they said no allocations should be issued or applications considered for quota intended for re-export of sugar as this would be difficult to monitor and may be open to abuse.

The BUA Group said the Dangote Group and Flour Mill have not been involved in any backward integration project, rather, they depend on 80% raw sugar allocation which is detrimental to the Nigerian economy in long term. The company said unlike the petitioners, it has been working on backward integration project with BUA’s Lafiagi Sugar BIP, a $250 million sugar refinery set to be completed in 2022.

This Day reported Rabiu, specifically assuring that its sugar export focused project in Port Harcourt, will not affect in any way, the backward integration programme adding that “the only way it will affect Nigerians is that Nigerians will pay lower prices for sugar”.

He explained 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 stabilize 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.”

Nigerians are buying BUA’s side of the story. They said the whole plan by the Dangote Group is to implement in the sugar industry, its “price maker monopoly” that has pushed the price of cement high in Nigeria.

Dangote cement reportedly sells for 55 Kwatcha (N1150) in Zambia, but in Nigeria, the same bag of cement sells for N3,000 to N5,000.

Compared to other countries where governments take serious actions against monopolistic practices, Nigerian government has been accused of enabling monopoly and anticompetition by giving preferential treatment to the Dangote Group.

It could be recalled that during the period that Nigeria closed its borders, only Dangote Cement was given the license to export cement. All eyes are on the federal government this time to change the status quo, as the high cost of goods produced by the Dangote Group has riled the people against further government’s attempt to put the company first.

If you have paid for Tekedia Mini-MBA, ask Admin to give you access to a Certificate module at First Atlantic Cybersecurity Institute. You can start taking that course while we wait for the Tekedia Mini-MBA program.

There are four tracks in Facyber  for you to select, and each module takes 12 weeks. All programs are self-paced with a brilliant portal designed for geeks.  The course syllabus and Table of Contents are provided in Facyber.com. Here are the tracks:

• Certificate in Cybersecurity Policy (CCYP)
• Certificate in Cybersecurity Technology (CCYT)
• Certificate in Cybersecurity Management (CCYM)
• Certificate in Cybersecurity Intelligence & Digital Forensics (CCDF)

To register for Tekedia Mini-MBA, go here. Once done, Admin will register you for Tekedia Mini-MBA. Then follow the instruction below with the exact email you used to register at Mini-MBA.

What To Do (after Mini-MBA Registration):

1. Visit Facyber and create your account (use the same email used for Tekedia Mini-MBA).
2. Activate the account in your email
3. Email team with the certificate course of interest, and confirm that you have done #1 and #2 steps by writing “I have done steps #1 and #2”.
4. Admin will respond after setup & activation
5. Login back to Facyber, you will see the course

It is launched – visit this page for Tekedia Capital

On January 1, 2021, I wrote thus: “Happy New Year again. In 2021, I want to set up Tekedia Capital – a very early stage venture ecosystem. I have seen a trajectory and the validation is there: the new species of companies called startups are bringing an economic-Cambrian moment like never before, in Africa’s markets. Our goal is to become a feeder, and a pipeline, for the world of investing and venture business. We have done well, and I hope to institutionalize what we have learnt so far, at the next level.”

Today, I am happy to share that we have just done that. By next week, Tekedia Capital will invest in 3 startups – all are Africa-facing though one operates from the United States. It is a fund for all citizens, as with a min of $10k, you can join to be part of the future, and take stakes in the empires of the future. We will be hiring some team members to work on this mission also. For your questions or interests, click here 

That reminds me – do you struggle to get things done? You want to master how to launch a new product, new unit, new subsidiary, new company, new Vision? At Tekedia Live tomorrow, I will lead a session on HOW TO LAUNCH.

Saturday at 7pm WAT; Zoom link in the Board

Good People, we have deployed the automatic verification of certificates issued by Tekedia Institute. When we started this mission, we did not expect this level of support. We truly thank the community for responding positively. Thank you. So, for your support and kindness, we also want to reciprocate by fixing this verification friction.

With this automatic verification, writing to the Institute is no longer necessary for certificate verification; we were getting many of those letters. Any employer, institution or stakeholder can use the code and verify at tekedia.com/verify.

We issued a batch to a South African company last week. If you finished from our Institute and want the upgraded version, email Admin and you will get the coded one which can be digitally verified. Use the email you were admitted with.

Meanwhile, early bird ends soon for the next edition of Tekedia Mini-MBA which begins June 7: 12 weeks, thrice weekly live sessions, 100% online, self-paced and costs $140 or N50k.

Tekedia Advanced Diploma programs are on-demand; it is on a rolling basis – get access immediately you pay.

Click and register, and join our school