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Dangote Cooperative Records N134.95m Gross Earnings

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Economic Diversification
  • Dangote Cooperative Records N134.95m Gross Earnings

The Staff Cooperative Multi-purpose Society Limited of the Dangote Group has reported N134.95m gross earnings for the 2015 financial year. The body recorded N188.82m gross earnings for 2014.

It, thus, declared a total dividend of N41.8m to its shareholders for the financial year ended, December 31, 2015.

The President of the co-operative, Mr. Afolabi Kamoru, declared this to shareholders during the cooperative’s Annual General Meeting held in Lagos, saying that operating expenses, increased by 107.24 per cent to N50.4m from N24.32m.

The cooperative recorded a 22 per cent increase in its total savings, rising from N1.85m to N2.25m in 2015. Also, it gave out loans of N1.87m in the period.

Kamoru explained that despite the macroeconomic challenges during the period under review, Dangote Cooperative made significant progress in all its key performance indicators.

With the growth recorded, he said the group’s objective remained the pooling of funds through monthly savings by members to encourage savings culture among staff members of Dangote.

According to him, on yearly basis, the society has never ceased to record incremental growth in its balance sheet, adding that, “In December, 2014, the member strength stood at 6,583. As of the end of 2015, more members had come on board.”

He said the funds being contributed at regular intervals by the members of the group were well managed, explaining that apart from the loans that were being made available when requested for, the funds are being used to maintain and develop existing assets.

He listed the major achievements by the society in 2015 to include: reclaiming of 3.5 acres of land at Mowe Housing scheme; reduction in the interest rates to cushion the effect of the economic hardship in the country; centralisation of secretariat activities; allocation of provisional letters and physical lands to potential beneficiaries at Obajana; and payment and processing for Makurdi lands Certificate of Ownership, among others.

Dangote Group Staff Multi-Purpose Co-operative Society is a multi-purpose cooperative society established to better the lives of its members by promoting a culture of accelerated monthly savings from which loans are disbursed for provident and productive purposes.

The federating units of the co-operation are Dangote Industries, Dangote Sugar, Dangote Flour, Dangote Oil Refinery, Dangote Fertiliser, Dangote Transport, NASCON, Dangote Cement, Dangote Agro Sacks, Dansa Foods, Savanah Sugar, Greenview Development, Osogbo Steel, Dancom Technologies and Bluestar/Ports Operations.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

Crude Oil

COVID-19 Plunges Nigeria’s Oil Revenue by 41% in the First Nine Months of 2020

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COVID-19 Plunges Nigeria’s Oil Revenue by 41% in the First Nine Months of 2020

Nigeria’s oil revenue declined by 41.44 percent in the first nine months of 2020 to $2.033 billion, according to the latest data from the Nigerian National Petroleum Corporation, NNPC.

This represents a decline of 41.44 percent from $3.47 billion filed in the same period of 2019 when there was no COVID-19.

In the September 2020 edition of NNPC’s Monthly Financial and Operations Report (MFOR), revenue from oil and gas rose by 16 percent to $120.49 million in the month of September, a 66 percent or $234.81 million drop from $355.3 million posted in the same month of 2019.

The global lockdowns caused by the COVID-19 pandemic plunged Nigeria’s crude oil sales and global demand for the commodity. This was further compounded by Nigeria’s high cost of production compared to Saudi Arabia, Russia and others that were offering discounts to boost sales during one of the most challenging periods in human history.

Experts like Prof. Yinka Omorogbe, President of Nigeria Association of Energy Economics, NAEE, were not surprised with the drop in earnings given the effect of COVID-19 on the world’s economy.

She, however, called for the revamp of the nation’s petroleum sector laws and diversification of the economy away from oil revenue dependence. She said “Covid-19 made 2020 a very hot year and it battered the oil industry internationally and we are not an exception; so we could not have been unaffected”.

She also said the effect of the fall “is definitely a wake-up call; we have to diversify, strengthen our other resources and capabilities”.

Omorogbe, a former NNPC Board Secretary, urged the government and the operators in the sector to look inward and think strategically, stating: “think medium term, think of where they want to be and the government, above all, must think of how best we can utilize our resources, so that we can achieve our objectives once we know and define them.

“It is a clear wake-up call, if not we will just sit here and find that we have become one of the poorest nations in the world”, she noted.

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Commodities

Crude Oil, Other Commodities Closing Price for Monday

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Crude oil

Crude Oil, Other Commodities Closing Price for Monday

Brent crude oil, Nigeria’s crude oil benchmark, gained 47 cents to $55.88 per barrel on Monday, while the US crude oil expanded by 50 cents to $52.77 per barrel.

Gold for February delivery fell $1 to $1,855.20 an ounce. Silver for March delivery fell 7 cents to $25.48 an ounce and March copper was little changed at $3.63 a pound.

The dollar fell to 103.80 Japanese yen from 103.83 yen. The euro fell to $1.2139 from $1.2167.

Wholesale gasoline for February delivery rose 1 cent to $1.56 a gallon. February heating oil rose 2 cents to $1.59 a gallon. February natural gas rose 16 cents to $2.60 per 1,000 cubic feet.

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Gold

Gold Gained Ahead of Joe Biden Inauguration 2021

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Gold

Gold Gained Ahead of Joe Biden Inauguration 2021

Gold price rose from one and a half month low on Tuesday ahead of President-elect Joe Biden’s inauguration on Wednesday.

The precious metal, largely regarded as a haven asset by investors, edged up by 0.2 percent to $1,844.52 per ounce on Tuesday, up from $1,802.61 on Monday.

According to Michael McCarthy, the Chief Market Strategies, CMC Markets, the surged in gold price is a result of the projected drop in dollar value or uncertainty.

He said, “The key factor appears to be the (U.S.) currency.”

As expected, a change in administration comes with the change in economic policies, especially taking into consideration the peculiarities of the present situation. In fact, even though Biden, Janet Yellen and the rest of the new cabinet are expected to go all out on additional stimulus with the support of Democrats controlled Houses, economic uncertainties with rising COVID-19 cases and slow vaccine distribution remained a huge concern.

Also, the effectiveness of the vaccines can not be ascertained until wider rollout.

Still, which policy would be halted or sustained by the incoming administration remained a concern that has forced many investors to once again flee other assets for Gold ahead of tomorrow’s inauguration.

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