Business
Boosting Domestic Oil Refining
Tinubu’s Naira Crude Sale to Spur Domestic Refining and Strengthen Naira
President Bola Tinubu’s decision to sell crude oil to the Dangote Petroleum Refinery in naira is expected to lead to a significant reduction in the prices of domestically refined petroleum products. This move has been lauded by oil marketers, refiners, and experts, who believe it will enhance the output of domestic refineries, bolster the country’s foreign exchange reserves, and strengthen the naira.
The downstream oil sector has welcomed the initiative, highlighting its potential to stabilize pump prices and the dollar-naira exchange rate. This new directive, announced by the President’s Special Adviser on Information and Publicity, Bayo Onanuga, via his official X handle, mandates the Nigerian National Petroleum Company Limited to sell crude to the Dangote refinery and other upcoming refineries in naira.
This policy is seen as a game-changer that will eliminate the need for international letters of credit and save the country billions in import costs. By denominating crude oil transactions in naira, the government anticipates saving approximately $7.3 billion annually, significantly reducing monthly forex expenditure on petroleum products from $660 million to $50 million.
Special Adviser on Revenue Zacch Adedeji emphasized that this shift will mitigate Nigeria’s reliance on foreign exchange for crude oil imports, easing economic predictability and reducing forex fluctuations. The Federal Executive Council’s approval of this initiative is expected to bring a price advantage to local consumers and stabilize fuel prices.
Oil marketers and operators of modular refineries have praised the initiative, seeing it as a pivotal development that will lower the cost of petrol and boost the naira’s value. They believe this move will strengthen Nigeria’s oil sector, enhance local refineries’ operations, and support the country’s economic growth.
Business
Constellation Brands Sells Svedka Vodka to Sazerac Amid Strategic Portfolio Shift
Constellation Brands announced Tuesday that it will sell its Svedka vodka brand to New Orleans-based Sazerac, as part of a strategic move to optimize its wine and spirits portfolio amid declining performance in the segment.
- The deal is anticipated to close within the coming months, though the financial terms were not disclosed.
- Bill Newlands, Constellation’s CEO, described the transaction as aligning with efforts to reshape the portfolio for growth, adding, “This transaction is another step forward in seeking to ensure that our wine and spirits portfolio is optimized to succeed.”
- Constellation’s wine and spirits business has struggled compared to its thriving beer portfolio, which includes bestsellers Modelo and Corona.
- Shipments for the segment fell by 9.8% year-over-year in Q2.
- Net sales and operating income dropped 12% and 13%, respectively.
- CEO Newlands cited headwinds in the lower-priced wine and spirits category as a persistent challenge during the company’s October earnings call.
- Despite accounting for only 5% of Constellation’s total volumes in 2023, wine and spirits contributed 17% of net sales, with wine taking the lion’s share at 86% compared to 14% from spirits.
- Sazerac will integrate Svedka into its diverse portfolio, which already includes global brands such as:
- Buffalo Trace bourbon
- Fireball Cinnamon Whisky
- Southern Comfort
- Constellation will retain key spirits labels, including:
- High West Whiskey
- Mi Campo Tequila
- Casa Noble Tequila
Business
CDC Declares McDonald’s E. coli Outbreak Over
The Centers for Disease Control and Prevention (CDC) announced on Tuesday that the E. coli outbreak linked to slivered onions served at McDonald’s has officially ended, concluding an investigation that began over a month ago.
- The outbreak affected 104 people across 14 states, leading to 27 hospitalizations and one death—a Colorado resident.
- Fresh slivered onions, used in Quarter Pounders and other menu items, were identified as the likely culprit.
During the outbreak, McDonald’s temporarily removed Quarter Pounders from select locations to mitigate risks. The burgers have since returned to the menu, but the incident has left its mark on the company’s reputation and operations.
- McDonald’s U.S. restaurant visits dropped 6.6% year-over-year on November 18, recovering slightly from an earlier peak decline of 11% in late October.
- States initially linked to the outbreak saw sharper declines, with traffic falling by 9.5% collectively on November 18.
- McDonald’s is investing over $100 million in marketing efforts and targeted financial assistance for impacted franchisees.
- Despite a “farewell tour” last year, the McRib has returned as a limited-time offering. A new value menu will debut in January to attract cost-conscious diners.
In an internal memo, Michael Gonda, North American Chief Impact Officer, and Cesar Pina, Chief Supply Chain Officer, emphasized the company’s commitment to regaining consumer trust and rebuilding brand loyalty.
“Looking ahead, we must remain laser-focused on regaining our customers’ hard-earned trust and reigniting their brand affinity,” the executives stated.
Business
SEC Chairman Gary Gensler to Step Down Ahead of Trump Inauguration
Gary Gensler, the chairman of the U.S. Securities and Exchange Commission (SEC), has announced his resignation effective January 20, 2025, coinciding with the inauguration of President-elect Donald Trump.
The SEC confirmed the news on Wednesday, and Gensler later addressed his departure on X, formerly Twitter. “I thank President Biden for entrusting me with this incredible responsibility,” Gensler wrote. “The SEC has met its mission and enforced the law without fear or favor.”
Gensler, who has served as SEC chairman since 2021, was appointed by President Joe Biden to oversee the regulatory agency during a period of intense scrutiny of financial markets and the cryptocurrency sector. His term was initially set to run until 2026, but it is customary for leaders of federal agencies to step down when a new administration takes office.
President-elect Trump had previously announced plans to replace Gensler “on day one” of his administration. This decision follows contentious legal actions taken by Gensler’s SEC against several cryptocurrency firms, which Trump and others have criticized as overly aggressive.
Gensler’s tenure has been marked by a crackdown on crypto markets and efforts to strengthen oversight of digital assets, moves that sparked both praise and criticism. Trump, a known skeptic of cryptocurrency regulations, has expressed starkly contrasting views on the industry, leading to tension between the incoming administration and the outgoing chairman.
During his tenure, Gensler focused on enhancing transparency and protecting investors across traditional and emerging financial markets. However, his approach, particularly toward the cryptocurrency sector, has drawn mixed reactions. Proponents argue that his actions brought much-needed regulation to the volatile digital asset space, while critics claim they stifled innovation.
The SEC has not yet announced an interim chair or a successor.
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