• Wednesday, February 28, 2024
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BusinessDay

Five things to know to start your Wednesday

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FG auctions five power plants for $1bn

The Nigerian government, through the Bureau of Public Enterprises (BPE), is currently in the process of selling five power plants under the National Integrated Power Projects at a cost of approximately $1.15 billion.

Although sources suggest the plants should be valued at over $5 billion based on international benchmarks, the BPE plans to sell them for slightly above $1.1 billion.

The plants include Geregu II, Omotosho II, Olorunshogo II, Odukpami, and Benin-Ihovbor, with varying capacities and expected sale prices ranging from $85 million to $420 million.

The transaction is still ongoing, according to BPE’s acting Director-General, Ignatius Ayewoh. The sale is part of the government’s efforts to fund the 2023 budget.

Naira depreciation pushes drug imports to N900bn

Drug prices in Nigeria are poised to soar in 2024, surpassing N900 billion due to the naira’s depreciation.

This comes as the International Trade Center predicts that pharmaceutical imports may cost N950.81 billion at the current exchange rate, causing further strain on Nigerians who battled high drug prices in 2023.

The data relies on 2022 figures since Q4 2023 records are pending. With major drug companies like GlaxoSmithKline and Sanofi shifting to third-party distribution, the cost of drugs has surged over 100%, exacerbating Nigeria’s inflation and foreign exchange challenges.

Dangote registers three oil marketers

The Dangote Petroleum Refinery has registered three major oil marketers as its pioneer distributors following the commencement of production.

The registered marketers include members of key industry associations, constituting 75 percent of Nigeria’s total market.

The Depot and Petroleum Products Marketers Association of Nigeria, the Independent Petroleum Marketers Association of Nigeria, and the Major Oil Marketers Association of Nigeria are among the registered distributors.

However, the timing of when the refinery’s products will be available in the market remains uncertain. The company is still considering other interested marketers for potential partnerships.

US military strikes two Houthi anti-ship missiles in Yemen

In the latest move against Houthi activities in Yemen, the U.S. military conducted strikes, destroying two Houthi anti-ship missiles aimed at the Red Sea.

The strikes occurred at 2:30 a.m. and targeted missiles, posing an imminent threat to merchant vessels and U.S. Navy ships.

The ongoing actions aim to counter Houthi attacks disrupting Red Sea shipping. Since January 11, the U.S. has destroyed or degraded over 25 missile facilities and more than 20 missiles, along with drones, radar, air surveillance, and weapon storage areas.

World Bank approves $300m in funding for Ghana

The World Bank has granted Ghana $300 million in funding to support its economic recovery. This approval follows Ghana’s successful negotiation to restructure $5.4 billion of loans with official creditors, marking a significant step in the country’s pursuit of debt relief amid its severe economic crisis.

The funding, the initial installment of three operations of $300 million each, reflects the World Bank’s commitment to crisis response and building resilience in Ghana, as stated in the World Bank’s announcement.