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MIRA INFORM REPORT
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Report No. : |
516071 |
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Report Date : |
27.06.2018 |
IDENTIFICATION DETAILS
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Name : |
DANGOTE FERTILIZERS LIMTED |
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Registered Office : |
Union Marble House, 1, Alfred Rewane Road,
Falomo, Ikoyi, Lagos State |
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Country : |
Nigeria |
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Date of Incorporation : |
03.08.2007 |
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Com. Reg. No.: |
RC: 702207 |
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Legal Form : |
Private Limited Liability Company |
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Line of Business : |
Subject carry on business as proprietors of fertilizer plants and works |
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No. of Employees : |
50 |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
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MIRA’s Rating : |
B |
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Credit Rating |
Explanation |
Rating Comments |
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B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
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Status : |
Yet to commence operations |
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Payment Behaviour : |
Unknown |
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Litigation : |
Clear |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List
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Country Name |
Previous Rating (31.12.2017) |
Current Rating (01.04.2018) |
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Nigeria |
B2 |
B2 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low Risk |
A2 |
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Moderately Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderately High Risk |
C1 |
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High Risk |
C2 |
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Very High Risk |
D |
NIGERIA - ECONOMIC OVERVIEW
Nigeria is one of Sub Saharan Africa’s largest economies and relies heavily on oil as its main source of foreign exchange earnings and government revenues. Following the 2008-09 global financial crises, the banking sector was effectively recapitalized and regulation enhanced. Since then, Nigeria’s economic growth has been driven by growth in agriculture, telecommunications, and services. Economic diversification and strong growth have not translated into a significant decline in poverty levels; however, over 62% of Nigeria's 170 million people still live in extreme poverty.
Despite its strong fundamentals, oil-rich Nigeria has been hobbled by inadequate power supply, lack of infrastructure, delays in the passage of legislative reforms, an inefficient property registration system, restrictive trade policies, an inconsistent regulatory environment, a slow and ineffective judicial system, unreliable dispute resolution mechanisms, insecurity, and pervasive corruption. Regulatory constraints and security risks have limited new investment in oil and natural gas, and Nigeria's oil production had been contracting every year since 2012 until a slight rebound in 2017.
President BUHARI, elected in March 2015, has established a cabinet of economic ministers that includes several technocrats, and he has announced plans to increase transparency, diversify the economy away from oil, and improve fiscal management, but his reliance on the Central Bank governor has led to overwhelmingly protectionist policies aimed at defending the naira from further devaluation. President BUHARI ran on an anti-corruption platform, and has made some headway in alleviating corruption, such as an implementation of a Treasury Single Account that allows the government to better manage its resources. The government also is working to develop stronger public-private partnerships for roads, agriculture, and power.
Partly because of lower oil prices, Nigeria entered a recession in 2016. However, GDP growth turned positive, with oil prices recovering and output stabilizing in 2017.
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Source : CIA |
Company
name
DANGOTE
FERTILIZERS LIMTED
OPERATIONS
The Company is working towards commencing
operations.
COMPANY
LOCATION
Subject is located at Lekki Free Trade Zone, Lekki Coastal Road, Ibeju-Lekki,
Lagos State, Nigeria
IDENTIFICATION
COMPANY
NAME:
DANGOTE FERTILIZER LIMITED
REGISTERED
NAME: DANGOTE FERTILIZER
LIMITED
REGISTERED ADDRESS: Union Marble House, 1, Alfred Rewane
Road, Falomo, Ikoyi, Lagos State, Nigeria
FACTORY
ADDRESS: Lekki
Free Trade Zone, Lekki Coastal Road, Ibeju-Lekki, Lagos State, Nigeria
GROUP
HEAD OFFICE: Union
Marble House, 1, Alfred Rewane Road, Ikoyi, Lagos
TELEPHONE: +234 (1) 448-0815,
448-0816, +91-9967737197
FAX: +234
(1) 463-0316, 271-2231
WEBSITE: www.dangote.com (group)
SUMMARY
NATURE
OF PREMISES: Occupies
space approximately 2000 square meters
DATE
INCORPORATED: 3rd August, 2007
LEGAL
FORM: Private Limited Liability Company
REGISTRATION
NO: RC:
702207
SHARE
CAPITAL: 1, 000,000,000.00
ISSUED
CAPITAL: 1, 000,000,000.00
PAID-UP
CAPITAL: 1, 000,000,000.00
STAFF STRENGHT: About Fifty, though not certain as they are working towards commencing operation
SECRETARY: MADUBUKO CHIOMA (MRS.)
Union
Marble House, 1, Alfred Rewane Road, Falomo. Ikoyi, Lagos State, Nigeria
Date Appointed: 24th July, 2013
OWNERSHIP/SHAREHOLDING
STRUCTURE
(11TH
OCTOBER, 2013)
Names %Held
Alhaji Aliko Dangote (GCON) 0.2%
4 Karimu Kotun Street, Victoria Island, Lagos
State, Nigeria.
Dangote Industries Ltd (Rep By Alhaji Sani
Dangote) 9.8%
245, Muri Okunola Street, Victoria Island,
Lagos State, Nigeria
Greenview International Corp 90%
3rd Floor, Salduba Building, East 53rd
Street, Urbanizacion Obamo Panama, Rep of Panama
DIRECTORS
(3RD
SEPTEMBER, 2013)
Alhaji Aliko Dangote (GCON)
4 Karimu Kotun Street, Victoria Island, Lagos
State, Nigeria
Dangote Industries Ltd (Rep By Alhaji Sani
Dangote)
245, Muri Okunola Street, Victoria Island,
Lagos State, Nigeria
Mr. Olakunle Alake
8, Theophilus Oji Street, Lekki Phase 1,
Lagos State, Nigeria
Mr. Devakumar Victor G. Edwin
1 Wura Street, Ikeja, Lagos State, Nigeria
SECONDARY
SOURCE INFORMATION
MANAGEMENT
TEAM
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S/N |
Names |
Position |
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1. |
Aliko Dangote,
GCON |
President & Chief Executive |
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2. |
Sani Dangote |
Vice President |
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3. |
Halima Aliko
Dangote |
Group Executive Director |
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4. |
Abdu Dantata |
Group Executive Director |
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5. |
Olakunle Alake |
Group Chief Operating Officer |
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6. |
Devakumar V. G.
Edwin |
Group Executive Director |
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7. |
Ahmed Mansur |
Group Executive Director |
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8. |
Sada Ladan Baki |
Group Executive Director |
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9. |
Joseph Makoju,
MNI, OON, OFR |
Honorary Adviser to the President |
BACKGROUND
Dangote
Fertilizers Limited
is located at Lekki Free Trade Zone, Lekki Coastal Road,
Ibeju-Lekki, Lagos State, Nigeria. The company is yet to commence operations as
construction works in preparation for commencement of operations were ongoing
as at the time of our visit.
Based on Secondary Source Information, Dangote Group is one
of Nigeria’s most diversified business conglomerates with a hard – earned
reputation for excellent business practices and products’ quality with its
operational headquarters in the bustling metropolis of Lagos, Nigeria in West
Africa.
The Group’s activities encompass:
·
Cement – Manufacturing &
Distribution
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Sugar – Manufacturing /
Refining & Distribution
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Flour & Semolina – Milling &
Distribution
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Pasta – Manufacturing &
Distribution
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Salt – Refining &
Distribution
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Food Seasoning – Production &
Distribution of stock seasoning cubes
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Vegetable Oil – Refining &
Distribution
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Tomato Paste – Manufacturing
& Distribution
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Crude Oil Refinery – Refining &
Distribution
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Petrochemicals – Refining &
Distribution
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Fertilizer – Manufacturing &
Distribution
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Packaging Materials – Manufacturing
& Distribution
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Logistics – Port Management
& Haulage
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Real Estate
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Food & Beverages
·
Aliko Dangote Foundation
Since inception, the Group has experienced
phenomenal growth on account of quality of its goods and services, its focus on
cost leadership and efficiency of its human capital. Today, Dangote Group is a
multi-billion Naira company poised to reach new heights in every endeavor.
According to This Day Newspaper of August 8, 2017 the
Minister of State for Petroleum Resources, Dr. Ibe Kachikwu visited the
refinery complex in Lagos, recently, Dangote stated that the first train of the
fertilizer plant will commence operations in January next year, while the
second line will be completed in March next year.
Dangote said his company was committed to
playing its part in the efforts of the minister and the federal government to
comprehensively address the energy crisis in the country. As you are aware, we
are currently building the world’s largest single line Refinery, Petrochemical
Complex and the world’s second largest urea fertilizer plant.
The Refinery will have the capacity to refine
650,000 barrels of crude oil per day. The petrochemical plant will produce
780,000 metric tonnes of polypropylene yearly, 500,000 metric tonnes of polyethylene
while the fertiliser project will produce 3.0 million metric tonnes per annum
(mmtpa) of urea,” Dangote said.
Dangote added that his company is also
building the largest sub-sea pipeline infrastructure in any country in the
world, with a length of 1,100 kilometres, to handle three billion standard
cubic feet of gas per day.
According to him, the company also plans to
construct a 570 megawatt-capacity power plant in this complex.
“As a matter of fact, gas from our gas pipeline will augment the natural
domestic gas supply and we estimate an additional 12,000MW of power generation
can be added to the grid with the additional gas from our system,” he said.
“We will be adding value to our economy as
all these projects will be creating about 4,000 direct and 145,000 indirect
jobs. We will also save over $7.5billion for Nigeria annually, through import
substitution and generate an additional $5.5billion per annum through exports
of the refined petroleum products, fertilizer and petro chemicals. We envisage
that these projects, which would cost over $18billion, would be completed in
2019,” he explained.
Dangote solicited the support of the federal government to enable his company
to achieve these targets.
Dangote commended the minister for the effort
he has put into ensuring availability of petroleum products in the country, as
well as his present ongoing efforts at revamping our ailing refineries. “In
addition, the minister has been championing a comprehensive overhaul of the
energy sector in Nigeria, with a view to making us a self-reliant nation. I
have no doubt that he will succeed in this quest, given his enviable profile,”
Dangote added.
Dangote Group is striving for self-reliance
in Nigeria in all the sectors where it operates and has drawn up ambitious plans
to set up world-class projects in new realms such as Agriculture, Petroleum
Refinery & Petrochemicals, fertilizer, and Telecom. The Group has almost
single-handedly taken Nigeria to self sufficiency in cement and is expanding
rapidly across Africa, helping other countries achieve the same.
During our visit to Lekki
Free Trade Zone (LFTZ), Lekki Coastal Road, Ibeju-Lekki, Lagos State, Nigeria
on 21st June, 2018 for business verification on Dangote Fertilizers Limited, we
met a security personnel, Mr. Hafeez at the main gate who led us to the Head of
Administrative Department (name undisclosed) who in turn referred us the
Director’s office where we met Mr. Philip who after explaining the reason for
our visit referred us back to the Admin Department stressing that they are
responsible for such issue. At the Admin Department, the Head of Department
requested that the verification should be streamlined to a particular
department/sector of the company i.e. for the Mechanical or Technical
Department as it is not possible to generalize the enquiry (verification) and
asked we contact our client for further clarification and revisit.
Furthermore, the Head
of Administration department revealed that the Managing Director’s office is at
the company’s group head office located at Union Marble House, Ikoyi, Lagos
State, Nigeria and that the company is yet to commence operations as
construction of production plants were still at various stages of completion.
Meanwhile, we sighted
multiple bungalow buildings painted cream identified by block numbers which are
used as the administrative blocks while the factory itself is still under
construction as work was ongoing at various stages such as construction of
access roads to and within the company, construction of warehouses and other
technical units of the company. Also, we sighted about fifty (50) of the
company’s staffs with coaster buses parked along the premises. Notable
construction companies such as Dantata & Sawoe is handling some of the
construction projects of the company.
NOTE: The Company was registered to
establish, run and carry on business as proprietors of fertilizer plants and
works etc. Also increased share capital from 100,000,000.00 to 1,000,000,000.00
on 22nd August, 2013 and paid its annual returns till 2016.
Charges: (1) Securing Deed dated 9th January,
2014 securing the sum of USD$162,500,000 in favour of Zenith Trustees Limited,
Plot 232A Muri Okunola Street, Victoria Island, Lagos State, Nigeria
(2) A First Supplemental Security Deed dated
20th December, 2017 supplementing a Security Deed dated 9th January, 2014 which
secured the sum of USD$162,500,000 now securing additional sum of N2,5000,000 (USD$22,500,000) in favour of
Zenith Trustees Limited, Plot 232A Muri Okunola Street, Victoria Island, Lagos
State, Nigeria
Conclusion: Based on our visit
discussion held with Mr. Philip in the Director’s Office and the Head of
Administration Department, number staffs sighted, level of contraction ongoing,
we are of the opinion that work is in progress for Dangote Fertilizers Limited
for commencement of full operations at the site. As such, any business relationship with the company may likely be
mutually beneficial as we are yet to receive its registration details.
TYPES
OF CUSTOMERS
General Public
PERFORMANCE
RANKING
* Quality of Management: GOOD
* Ethics & Integrity: GOOD
* Ownership Structure: GOOD
PHYSICAL
VISIT
Company Premises
Corporate Affairs Commission
FINANCES
Subject’s
Audited Accounts was not available as at the time of compiling this report. As
they yet to commence operations
INDUSTRIAL
OVERVIEW/ OPERATING ENVIRONMENT
Subject is operating in an industry with very
great potentials. This sector in Nigeria has a lot to explore when it comes to
the need for expansion, improvement of product quality, work force development
and general technical expertise. Mainly, private individuals dominate this
sector. Despite the huge capital required for setting up this investment, it
has grown in its leaps and bounds over the decades in the nation, although, the
efforts of the Federal Government cannot be ruled out. The government has put
in place different policies that support private individuals to secure loans/
mortgages from banks and other financial institutions. However, to record a
groundbreaking in this sector, foreign investors are inevitable.
This sector of the economy has great
potentials for intending investors.
CMT REPORT (Corruption, Money Laundering &
Terrorism)
Public Notice from various sources including
but not limited to: The Courts, Nigerian Prison Service, Economic &
Financial Crimes Commission (EFCC), National Drug Law Enforcement Agency
(NDLEA), National Agency for Food & Drugs administration and Control (NAFDAC),
Independent Corrupt Practices and Other Related Offences Commission (ICPC) Etc.
No
negative information on subject from the above agencies as at the time of
compiling this report.
REMARKS
Having carried out all necessary
verifications on the company, our investigations revealed that
Dangote
Fertilizers Limited is
duly registered in Nigeria, with a Registered Address located at Union Marble House, 1, Alfred Rewane Road, Falomo, Ikoyi,
Lagos State, Nigeria while the Group Head Office is located at the same address
and the factory is located at Lekki Free Trade Zone, Lekki Coastal Road,
Ibeju-Lekki, Lagos State, Nigeria.
Subject is into genuine business
transactions. Subject is an on-going
concern.
All information contained in the report is
from secondary sources only.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
INR 68.17 |
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1 |
INR 90.47 |
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Euro |
1 |
INR 79.74 |
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NGN |
1 |
INR 0.19 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
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Analysis Done by
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VAR |
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Report Prepared
by : |
SYL |
RATING EXPLANATIONS
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Credit Rating |
Explanation |
Rating Comments |
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A++ |
Minimum Risk |
Business dealings permissible with minimum
risk of default |
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A+ |
Low Risk |
Business dealings permissible with low
risk of default |
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A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
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B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
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C |
Medium High Risk |
Business dealings permissible preferably
on secured basis |
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D |
High Risk |
Business dealing not recommended or on
secured terms only |
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NB |
New Business |
No recommendation can be done due to
business in infancy stage |
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NT |
No Trace |
No recommendation can be done as the
business is not traceable |
NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.
This score serves as a reference to assess
SC’s credit risk and to set the amount of credit to be extended. It is
calculated from a composite of weighted scores obtained from each of the major
sections of this report. The assessed factors are as follows:
·
Financial
condition covering various ratios
·
Company
background and operations size
·
Promoters
/ Management background
·
Payment
record
·
Litigation
against the subject
·
Industry
scenario / competitor analysis
·
Supplier
/ Customer / Banker review (wherever available)
This report is issued at
your request without any risk and responsibility on the part of MIRA INFORM
PRIVATE LIMITED (MIPL) or its officials.