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An indigenous soft furnishing company, Rosemary’s Showroom, has increased the amount of local content contained in its production of various products. The company made a U-turn from it’s hitherto production formula when over 65% of its raw materials were sourced from abroad.

Mrs. Ezinne Kufre-Ekanem, Chief Executive Officer, Rosemary’s Limited, owners of Rosemary’s Showroom, disclosed this during the opening of the company showroom in Abuja on Saturday.

According to her, Rosemary’s Limited had over the 13 years of its existence used majorly foreign content to produce many of its choice soft furnishing products.

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However, she disclosed that the prevailing economic recession has spurred her team to look backward in sourcing for equally quality raw materials that can deliver the kind of high standard that Rosemary’s Showroom is renowned for in Nigeria and beyond.

“Today, we now look inward. The current situation in the country has taught us to look inward and this has taught us a good lesson. It has taught us to come out with creativity that now stands us out. We now have Kente fashion, Adire Fashion and a host of other local content laced products we produce”, she stated.

On why the company chose Abuja as the next target after Lagos where the company started from, Mrs. Kufre-Ekanem explained that Rosemary’s only responded to the tips from the market. She disclosed that the volume of requests coming from the Federal Capital Territory is not comparable to what comes from other cities in the country.

According to her, the opening of the Abuja office will enable the company bring the world-class soft furnishing and creative approach to interior decorations to the capital city of Nigeria.

However, she said the next expansion would be to Port-Harcourt, Rivers State or Uyo, Akwa Ibom State in 2017. According to her, Rosemary’s statistics show that those two cities top the list of the company’s sales turnover.

However, Mrs. Kufre-Ekanem acknowledged that for any indigenous entrepreneur to survive in Nigeria, such needs commitment and perseverance to survive.

She recalled the challenges Rosemary’s faced at inception in Lagos when its landlord then served the company a quit notice, a development the management did not expect at that time. “That challenge, coupled with epileptic electricity supply and forex volatility is enough to force a small business out of existence”, she stated.

Mrs. Kufre-Ekanem therefore implored government to make the environment more conducive for entrepreneurs in order to boost gross domestic product in the country.

Established in 2003, Rosemary’s is a niche-focused, passion driven home comfort company that specializes in soft furnishing with a deep belief in personal service. The company boasts of a team that is affectionately involved in thinking, making and delivering world- standard furniture from an African perspective.

The company boasts of a range of products that cuts across beds, lounge chairs, settees, dining tables, coffee stools, among others. The CEO said: “We conceive, design and build quality furniture for your home. Each item is tastefully hand-finished to high standards whether it is made from metal, wood or glass.”

According to her, beds are an important piece of furniture in our homes, considering the amount of time people spend on them when sleeping. As a result of that, she said a bed should be fit for beauty sleep; strong & sturdy enough to carry body frames, big & wide enough to allow us stretch out our full lengths and at the same time cozy enough to allow one snuggle up too. “Our beds provide all these and much more. Built to last and last in styles that are timeless, our beds do the job that they have been built to do like providing you with a perfect sleep at any time of the day or night you desire it,” she stated.

Besides, Kufre-Ekanem noted that the perfect dinning set compliments and completes your living space; adding that your dinning set of choice should be the right height providing adequate seating comfort to enable the family (and friends) bond & enjoy a meal together again and again. “We offer a wide range of styles ranging from 4, 6 & 8 seater sets”, she disclosed.

Ekanem therefore assures prospective customers in Abuja and its environs that it can also package any of the products as gifts to loved ones and associates during and after festive seasons.

She said the company renders Décor Advisory Services (DAS) to discerning individuals and corporate bodies. “We unearth and proffer what is best for your space.

Then, we listen again….We call it Rosemary’s Décor Advisory Services (DAS), but many of our clients have warmer names for it. We never forget that it is your space and that you are a unique being,” Kufre-Ekanem concluded.

BIG STORY

BUSINESS: Marketers May Dump NNPCL As Price War With Dangote Rages

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Some oil marketers are beginning to change the logo of the Nigerian National Petroleum Company Limited on their filling stations, as the dealers dump the franchise deals with NNPCL due to the stiff competition in the prices of refined products in the downstream arm of the oil sector.

It was gathered that many others are considering the move, particularly those in Lagos, following the recent crash in the prices of refined products by the $20bn Lekki-based Dangote Petroleum Refinery.

Already some dealers that used to have the NNPCL logo on their filling stations located around Wawa on the Lagos-Ibadan expressway, as well as at Ibafo, still along the busy road, have dropped the name of the national oil firm.

Independent marketers are seeking to achieve adequate product off-take at a cheaper rate, as the deregulation of the downstream oil sector has led to intense competition.

Many filling stations formerly affiliated with the national oil company are now being renamed and rebranded under the ownership of private oil marketers, particularly in Lagos and surrounding states.

It was also learned that more marketers may relinquish their licences with NNPCL due to the reduced loading costs of Premium Motor Spirit (petrol) refined by the Dangote refinery, which is currently lower than the landing cost of imported petrol.

A petrol price war was reignited in the sector recently after the Dangote Petroleum Refinery slashed its loading costs to N890 from N950 per litre.

Dealers explained that the rebranding of filling stations is a tactic by the marketers to pick up cheaper products from the Dangote refinery, and other import sources at a cheaper rate.

This assertion was confirmed by the National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria, Chinedu Ukadike, during an exclusive interview on Tuesday.

A franchise licence in the oil sector refers to an official authorisation granted to an individual or company to operate a business or distribute products under an established brand or system within the oil industry.

This typically involves a contractual agreement that allows the franchisee to utilise the franchisor’s brand, resources, and operational model in exchange for fees or a percentage of revenue.

Ukadike explained that marketers have adopted this new approach because the NNPCL is no longer the exclusive importer and distributor of refined petroleum products.

He said, “Yes, that observation is correct. Some marketers are changing and rebranding. Remember that there was a time NNPCL was the sole distributor and importer of petrol. So, marketers then gave their filling stations as franchises so that they could get products.

“So marketers normally give their companies to NNPCL to be able to have petroleum products. But now that the game has changed, you can even see some marketers now changing to MRS filling stations. Because MRS is now selling cheaper than any other station.

“People want where they want to get turnover and return on investment. If you are carrying Total on as a brand name and Total is not giving you petrol products, what is the sense of carrying the name? You have to remove it and get a better alternative. Most of those filling stations (that are changing name), NNPC don’t own them. NNPC only collected them on the franchise.”

Attempts to contact the NNPCL spokesperson, Femi Soneye, for an explanation of why marketers are switching from the company’s brand, proved unsuccessful, as he did not reply to messages sent to his phone.

An oil and gas expert, Olatide Jeremiah, who confirmed the arrangement said marketers used the franchise licence as a method to secure cheaper products from NNPCL which was still importing at the time.

He confirmed that the avenue that provided more revenue was disrupted by the emergence of the Dangote refinery and the inability of the national oil firm to secure an agreement to fix petrol prices with the Lekki-based plant.

Jeremiah, who is the Chief Executive Officer of petroleumprice.ng noted, “Yes, it’s true. It all happened after the subsidy was removed but before the emergence of the Dangote refinery.”

He further narrated, “After the removal and petrol price went up, NNPCL was asked to manage the price and should not be allowed to keep skyrocketing. So NNPCL and the majors were pegging the price at N500 but the landing cost was above the amount. This affected importers and independent marketers who imported fuel. For instance, Petrocam imported and claimed that its landing cost was N700 but the majors and NNPCL were selling at N500 per litre. That is a difference of N200 and was a huge loss.

“So actually NNPCL was subsidising internally and when independent marketers noticed this and were losing sales, they began applying for NNPCL franchise lincence. The marketers paid millions to get the franchise licence because they were loading from NNPCL depot at a cheaper rate.

“NNPCL was the one dictating price for all the majors at that time because of public outcry and they used to buy, till Dangote came in. They also wanted to do the same thing with Dangote to fix the price but the arrangement didn’t work because Dangote wanted to sell to everyone. Its price was better and independent marketers could buy directly.

“The franchise licence was also an avenue to make more profit because some marketers got licence for one of their stations but would transport products to other stations and sell at a higher price to Nigerians. The slot of getting fuel tankers at that time was twice in a month.”

The Chairman of PETROAN in Lagos State, Akinola Ogunyolemi, said most of the outlets are not originally owned by the NNPC.

He said the removal of the NNPCL symbol might mean the end of an agreement or a breach of it by either party.

“These are individual outlets. What they do is that, if an NNPCL contract expires and they are not ready to move forward with them or if they get a juicy offer, they will remove the NNPCL logo. They will rebrand again and put other people’s names. That could be the reason.

“Most of the outlets are not NNPCL-owned. You can have your filling station built and put NNPCL there, with your contract to them. Maybe they could not meet up with your agreement with them, (because they too also have some breach of contract sometimes), you might decide to go and give the station to Mobil or Total. It is yours,” Ogunyolemi said.

Experts also noted that more licenses may still be revoked because the price of imported petrol now costs more than products obtained from the Dangote refinery.

According to the latest data released by the Major Energies Marketers Association, the on-spot cost of landing PMS has reached N910.14 per litre at the ASPM and N910.52 at the NPSC depot.

The document also stated the 30-day average cost of petrol surged to N939.03 per litre.M

Meanwhile, fresh details emerged regarding the behind-the-scenes developments that contributed to the reduction in the ex-gantry loading cost of Premium Motor Spirit, commonly known as petrol, sourced from the Dangote Petroleum Refinery and a possible reduced retail cost for Nigerians.

The refinery in a statement signed by Group Chief Branding and Communications Officer, Anthony Chiejina, said the strategic adjustment is a direct response to the positive outlook within the global energy and gas markets, as well as the recent reduction in international crude oil prices.

“Dangote Petroleum Refinery has reduced the ex-depot (gantry) price of Premium Motor Spirit, commonly known as petrol, from N950 to N890, effective from Saturday, 1st February 2025.

“This strategic adjustment is a direct response to the positive outlook within the global energy and gas markets, as well as the recent reduction in international crude oil prices,” the statement read.

It noted that the price revision reflects the ongoing fluctuations in global crude oil markets, as highlighted in the refinery’s statement on 19th January, when a modest increase was implemented due to the previously rising international crude oil prices.

Brent crude, the international benchmark, was traded at $76.76 per barrel on Tuesday, marking a reduction of $4 from $81 per barrel recorded in early January.

While this assertion is totally accurate, marketers in the downstream sector informed our correspondent that a pricing competition between Dangote, the NNPCL and some marketers contributed to the decision to reduce its petrol costs.

This fresh pricing war started about a week ago after the NNPCL and some major marketers secured an alternative source to import refined products at a cheaper landing cost compared to Dangote’s price.

Earlier report had it that the national oil firm and other marketers in the downstream oil sector imported more than 633 million litres of Premium Motor Spirit (petrol) and Automotive Gas Oil (diesel) in January 2025 despite the production of these commodities domestically.

A marketer said, “We had noticed for some weeks that Dangote and private depot prices were at the same level unlike before when there was a N20 difference. So we found out that some people are sourcing cheaper products outside the country and that’s why they are going head-on with Dangote. Those depots didn’t want to get out of business and that was why they had to do it to be more competitive.”

Another source who confirmed the development said the concerns expressed by bulk buyers operating at a loss of N31.02 per litre or a total loss of N310,159,109.59 made Dangote senior executives hold a meeting.

The source noted, however, that despite the reduction in output, the refinery continues to maintain a steady profit, demonstrating its ability to adapt and remain financially successful.

He said, “The price reduction from Dangote was somehow inevitable because there were serious complaints and concerns from their buyers. This made Dangote senior executives to meet on Friday between 4 and 5 pm to discuss. What has happened is basically the effect of deregulation in the downstream sector and Nigerians should expect more pricing war between competitors in the sector.”

 

Credit: The Punch

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BIG STORY

Guinness Nigeria Reports N20 Billion Profit, 6 Months After Tolaram Takeover

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Guinness Nigeria Plc released its second-quarter earnings, reporting a pre-tax profit of N20.1 billion for the period ending December 31, 2024. This marks a significant turnaround from the pre-tax loss of N8.2 billion recorded in the same quarter of the previous year. It is also the first quarterly profit posted by Guinness Nigeria Plc since September 2023, when it reported a profit of N3.8 billion in its first quarter.

The profit boost follows the Tolaram Group’s completion of its takeover of operations from Diageo, the former parent owner of the Guinness brand. Tolaram acquired the Guinness Nigeria franchise in June 2024, and within six months, the company achieved its first quarterly operating profit.

The second-quarter profit helped increase half-year pre-tax profits to approximately N4.1 billion, enabling the company to report its first half-year profit since December 2022. The pre-tax profit for FY 2024 stood at N4.1 billion, reflecting a significant recovery from the N4.4 billion loss recorded in the previous half-year.

For the quarter, Guinness Nigeria reported revenue of N133.7 billion, bringing the year-to-date figure to N259.6 billion, an 82.06% increase compared to the full year of 2023.

Key financial highlights for FY 2024 include:

Revenue: N259.6 billion, +82.06% YoY

Cost of sales: N200.5 billion, +107.54% YoY

Gross profit: N59 billion, +28.45% YoY

Other income: N159 million, -93.67% YoY

Marketing and distribution expenses: N31.6 billion, +33.00% YoY

Operating profit: N11.2 billion

Finance expenses: N71.1 billion, +197.75% YoY

Finance income: N63.9 billion, +1993.90% YoY

Pre-tax profit: N4.1 billion

Post-tax loss: N302.7 million

  • Surge in revenue boosts margins

Guinness Nigeria Plc reported revenue of N259.6 billion for FY 2024, reflecting an impressive increase of 82.06% compared to FY 2023. Domestic sales contributed 98.5% of the total revenue, while export sales made up the remaining 1.5%. Despite strong revenue growth, the cost of sales surged by 107.54% year-on-year, rising from N96.6 billion in the previous year to N200.5 billion in 2024. However, the company recorded a gross profit increase of 28.45% year-on-year, reaching N59 billion, compared to N45.9 billion in FY 2023.

Marketing and distribution expenses also rose significantly, climbing by 33.00% to N31.6 billion from N23.7 billion in the prior year. Despite rising operational expenses, operating profit declined to N11.2 billion, down from N16.3 billion reported in the previous year. Analysts at Nairametrics observed that the primary driver of Guinness Nigeria’s profitability was a surge in topline revenue, which hit a record N133.7 billion this quarter—the highest ever recorded by the company. The revenue increase helped offset cost pressures, resulting in an operating profit of N18.1 billion.

Guinness reported an operating loss of N6.8 billion at the end of September 2024, the first quarter of the current financial year. Operating profit margins rebounded to 13.2%, the highest since March 2022, when margins were around 18.5%.

Meanwhile, net finance charges, which had been a major contributor to losses in recent years, turned into a net gain this quarter. Although finance expenses more than doubled to N59.5 billion in the quarter under review, this was offset by a surge in finance income totaling N63.9 billion. This turnaround was primarily driven by gains from the remeasurement of foreign currency balances, which accounted for 99.51% of the finance income.

This improvement in profitability is seen as a significant boost for the new owners of Guinness Nigeria Plc as they work to revitalize one of Nigeria’s largest brewers. Tolaram Group, which acquired Guinness in June 2024, reported its first operating profit for the company in less than six months under its management. According to Nairametrics, Guinness Nigeria is likely to be delisted from the Nigerian Exchange as the new owners proceed with a mandatory takeover of the company’s shares from minority shareholders.

 

Credit: Nairametrics

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BIG STORY

‘N100k Daily, N500k Weekly’: Banks Begin Implementation Of PoS Withdrawal Limit

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Union Bank has started enforcing a daily withdrawal limit on point-of-sale (PoS) terminals.

This action follows a directive from the Central Bank of Nigeria (CBN) issued on December 17, 2024, which set a daily withdrawal cap of N100,000 per customer on PoS transactions.

The CBN stated that this intervention aims to tackle identified issues, reduce fraud, and standardize operational practices across the sector.

Six weeks after the directive, Union Bank, in an email to its customers seen by TheCable, confirmed that the daily withdrawal limit has been implemented, with customers now restricted to a weekly withdrawal limit of N500,000 on PoS.

“In line with CBN directives, please note that effective immediately, the daily withdrawal limit on POS is now N100,000, while the weekly limits are now fixed at N500,000,” the email reads.

“Our ATMs are also available for your cash withdrawals. We encourage you to use our alternative channels (UnionMobile, *826#, UnionOnline) for all your transactions.”

The bank’s announcement follows the CBN’s sanctioning of nine banks for failing to provide adequate cash availability at ATMs during the festive season.

Union Bank was one of the banks fined.

The nine banks were penalized with a N150 million fine after spot checks revealed noncompliance with the CBN’s cash distribution guidelines.

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