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Rating: GCR affirms Dangote Industries Limited AA+(NG)/ A1+(NG)

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Nasiru Yusuf Ibrahim

 

The rating indicates strong earnings prospects from the new refinery

GCR Ratings (GCR) has affirmed the national scale long-term and short-term issuer ratings of AA+(NG) and A1+(NG) respectively accorded to Dangote Industries Limited (DIL). GCR in its recent report also affirmed the national scale long-term issue rating of AA+(NG) accorded to each of Dangote Industries Funding Plc’s Series 1 NGN10.5Bn Tranche A and NGN177.1Bn Tranche B Bonds and Series 2 NGN112.4Bn Senior Unsecured Bond. The outlook on the ratings has been revised to Evolving from Stable previously.

According to GCR, “the ratings were affirmed on the prospects of significant growth in earnings following the commencement of operations at the new petrochemical refinery and robust earnings expectation from the other businesses.”

In the report, the rating agency decried the impact of naira devaluation on DIL performance stating that, “the ratings are constrained by the adverse impact of the currency devaluation on the profitability and financial position of the group, given its significant foreign debt exposure.”

GCR in recognition of the potential of the Dangote Group added, “the group’s business profile is bolstered by the commencement of refining operations in February 2024 (with the production of diesel, Naphtha, heavy fuel oil, and aviation fuel), which now complements the already well-diversified group businesses.

Accordingly, we expect the group’s business fundamentals to become increasingly tilted towards oil refining, given its size as the largest refinery in Africa and Europe. We also expect strong export sales potential given the recent debut exports of refined oil to Europe. The non-oil businesses continue to demonstrate strong earnings generating capacity and market leaderships in their respective sectors, underpinned by the above-peer production capacities and favourable demographics.”

“We have maintained a positive peer comparison consideration for DIL underpinned by the importance of the refinery to the Nigerian economy. However, we have lowered the extent of support applicable under this rating component because we expect the support factors to translate to substantive enhancements to the group’s business and financial profiles over the outlook period. In 2022, DIL raised a cumulative NGN300Bn in Series 1 (Tranches A and B) and Series 2 Senior Unsecured Bonds issued by its sponsored special purpose vehicle, Dangote Industries Funding Plc. Being senior unsecured debt sponsored by DIL, the Series 1 Tranches A and B Bonds and the Series 2 Bond rank pari passu with all other senior unsecured creditors of the group.

Therefore, the Bonds bear the same national scale long-term rating as that accorded to DIL and any change in DIL’s long-term corporate rating would impact the Bonds ratings. We have reviewed the draft trustees’ bond performance report dated 24 May 2024 and note that the coupons have been paid as and when due and there were no breaches to any covenants and pledges in the trust deeds.

However, the group remains highly exposed to volatile energy cost dynamics and is reliant on importation of gypsum for cement, raw sugar input, and crude oil for the refinery” GCR stated.

 

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AGILE partners ICEADA in promoting girls education in 6 Kano LGAs

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Aminu Abdullahi

 

The ICEADA AGILE partnership, aimed at promoting girls’ education at the grassroots level, has organized an Activity Feedback Workshop and Quarterly Meeting to assess the successes and challenges of the project across six local government areas in Kano State.

 

KANO FOCUS reports that the local governments areas include: Bebeji, Kiru, Karaye, Madobi, Rogo, and Warawa.

Prof M. B Shittu presenting IEC materials to Nasiru Yusuf Ibrahim

Speaking at the event, Prof. M.B. Shitu, Team Leader and Project Manager, explained that the project was designed to engage key stakeholders in the selected local government areas to sensitize communities on the importance of enrolling girls in school.

Cross section of ICEADA/AGILE mentors

He noted that participants of the workshop are Community Engagement Mentors selected from the six local governments.

 

“Their role is to engage directly with community members to promote girls’ enrollment in schools,” he said.

 

“Part of their responsibility is to carry out sensitization and mobilization campaigns within their communities. Our main concern is increasing the enrollment and retention of girls in secondary education. That’s why we introduced the Community Engagement Mentors—to collaborate with parents and local organizations in support of girls’ education,” Prof. Shitu added.

Cross section of ICEADA/AGILE mentors

He also revealed that the project has recorded significant progress across the six LGAs, although a few challenges still persist and are currently being addressed.

 

“One of the aims of this workshop is to review the activities carried out in the last quarter and set new community goals to strengthen our campaign. We’ve also launched house-to-house awareness campaigns to tackle the issues affecting girls’ education in these communities,” he stated.

 

Participants expressed satisfaction with the project’s progress. Lami Idris, a Community Mentor from Karaye LGA, shared her experience.

 

“We are going from house to house to educate people on the benefits of girls’ education. One of the major challenges we face is the lack of schools in some villages. Some girls have to walk long distances to reach school,” she said.

Review meeting in session

Abdullahi Balarabe Kiru, Secretary of the Nigeria Union of Teachers (NUT) in Kiru LGA, reported that data collected from the area showed over 40 girls are currently out of school. He affirmed that efforts are ongoing to address the issue.

Nasiru Yusuf Ibrahim presenting IEC materials to community mentors

In his remarks, Malam Nasiru Yusuf Ibrahim, Communication Officer of the AGILE Project, disclosed that 130 new schools will be constructed in Kano State to tackle the problem of out-of-school children.

 

He also highlighted insecurity and the destruction of school infrastructure as major challenges facing the education sector.

 

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Governor Yusuf Distributes 10,000 Free JAMB Forms to Secondary Students

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The Governor of Kano State, Alhaji Abba Kabir Yusuf, has inaugurated the distribution of 10,000 free JAMB forms to Kano secondary school students.

During the flag-off of the distribution, the Governor, who was represented by the state’s Commissioner of Education, Ali Haruna Makoda, also used the opportunity to inaugurate the training of the 10,000 beneficiaries on the use of computer-based tests at various designated centers across Kano State.

On his part, the Governor’s Special Adviser on Education, Alhaji Tajuddin Gambo, said the Governor has promised to provide transport for the beneficiaries throughout the training session and urged them to ensure they pass the examination.

He said the government is willing to select the best schools for the beneficiaries if they pass the examinations.

One of the beneficiaries of the 10,000 free JAMB forms, Fatima Mukhtar Umar, expressed gratitude to Governor Abba Kabir Yusuf for issuing the free JAMB forms and promised not to disappoint.

In a statement by Governor Abba Kabir Yusuf’s Special Adviser on Information, Ibrahim Adam, it was noted that the Governor used the opportunity to elaborate on the feats achieved by his government in developing the education sector in the last 22 months. These include the re-introduction of foreign and domestic scholarships, re-opening of 21 skills acquisition institutes, general renovation of primary and secondary schools, construction of new classrooms, provision of classroom furniture and writing materials, and the distribution of free uniforms to primary school pupils.

Other achievements, according to the Governor’s Special Adviser on Information, Ibrahim Adam, include the reduction of 50% of registration fees in state-owned tertiary institutions, cash conditional transfers to support girl-child education, and the settlement of registration fees for NECO, NABTEB, and NBAIS, to mention but a few.

Ibrahim Adam said Governor Abba Kabir Yusuf urged all the beneficiary students to make the best use of the opportunity and strive for excellence in their academic pursuits, saying that the future belongs to those who work tirelessly to turn dreams into realities.

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Exposed: Coercion Over Coalition?: Youth Forum Reveals Presidency’s Desperate Moves on Kwankwaso

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A political storm is brewing as the Coalition of Northern Youth Forum (CNYF), under the leadership of Alhasan Barau Gausu, has raised alarm over what it describes as desperate and undemocratic moves by the Presidency to force Dr. Rabiu Musa Kwankwaso, the national leader of the New Nigeria Peoples Party (NNPP), into joining the ruling All Progressives Congress (APC).

According to the group, the Tinubu-led administration is leveraging state institutions, particularly the Economic and Financial Crimes Commission (EFCC), to intimidate and coerce Kwankwaso into defecting to the ruling APC.

Central to the allegations is a revived petition detailing a 2016 contract worth N15.5 billion, awarded through the Federal Ministry of Water Resources to a company reportedly linked to one of Kwankwaso’s closest allies—a known financier of the Kwankwasiyya Movement.

The EFCC reportedly invited the contractor for interrogation last week Tuesday.

The CNYF claims that the contractor is being pressured to implicate Kwankwaso in the alleged financial misconduct, suggesting the anti-graft agency is being used as a political weapon to break the opposition.

“This is nothing short of blackmail,” said Gausu. “They want to silence Kwankwaso’s rising political influence and force him into a weak alliance with the ruling party, using fear and intimidation.”

The group further disclosed that a high-powered delegation from the Presidency, led by a former Katsina State governor—now serving as TETFUND board chairman—recently visited Kwankwaso at his Abuja residence, appealing to him to join the APC.

However, sources say Kwankwaso responded with firm conditions for any possible defection.

These include:

• A reduction in the price of Premium Motor Spirit (PMS)

• Massive reinvestment in Nigeria’s education sector

• Reintroduction of the Almajiri Model Education System (originally implemented during President Jonathan’s administration)

• His appointment as Secretary to the Government of the Federation (SGF)

Allocation of three ministerial slots to his political associates from northwest, northeast and south-south.

Without these demands being met, Kwankwaso reportedly stated he would remain with the NNPP—or align with the emerging SDP coalition, being championed by Atiku Abubakar and Nasir El-Rufai.

The fallout from this meeting, according to the CNYF, may have prompted APC National Chairman Abdullahi Ganduje’s recent public declaration that Kwankwaso would soon rejoin the APC.

Speaking during a visit by the Tinubu Support Group (TSG) to the APC national secretariat, Ganduje boldly claimed, “NNPP is dead,” insinuating that its leader was on the verge of returning to the ruling party.

Analysts believe the APC’s desperation stems from Kwankwaso’s undeniable grassroots influence in the Northwest—especially Kano State, which boasts over two million registered voters.

With growing public discontent over the removal of fuel subsidy and other economic policies, the Tinubu administration appears to be seeking strong political alliances ahead of 2027.

But for now, Kwankwaso remains unbowed, standing firm on his conditions and signaling that the NNPP—and its ideals—are not for sale.

Recently, the national and Kano state chapter of the APC were directed by the powrful forces from the villa to galvanize support and provide receptive atmosphere to recieve Kwankwaso and his teaming supporters back to APC.

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