Connect with us

Investment

Dangote Invests N121b on Domestic Sugar Production

Published

on

Sugar - Investors King
  • Dangote Invests N121b on Domestic Sugar Production

Dangote Sugar Refinery (DSR) Plc, a subsidiary of Dangote Industries Limited, has so far invested N121 billion on its ambitious Sugar for Nigeria Backward Integration Project Plan, which is aimed at developing domestic sugar production capacity through home-grown sugarcane.

Addressing shareholders yesterday at the annual general meeting in Lagos, Chairman, Dangote Sugar Refinery (DSR) Plc, Alhaji Aliko Dangote, said the company has spent N121 billion on equipment, land acquisition, compensation to land owners, consultancy and related services.

According to him, the company has continued to make commendable progress in the implementation of the backward integration project including the payment of N3.25 billion as full payment for land acquisition for the 60,000 hectares Tunga Sugar Project in Nasarawa State and mobilisation of necessary developmental work to site after signing of a Memorandum of Understanding (MoU) with the state government.

He pointed out that despite major setbacks like flood, community relations issues and most recently clashes between host community and Fulani herdsmen that hampered progress, the group’s Savannah Sugar Company remained the only company producing sugar from own-grown sugarcane in the country with more than N30 billion spent so far on purposeful investments in land rehabilitation, infrastructure, field expansion projects and equipment.

He said the company has made further commitment with substantial investments in replanting existing fields and increase factory capacity from its current 3,000tcd to 6,000tcd and addition of a new 12,000tcd factory to cater for expected improvement in cane output and production.

“Negotiations with the government and local communities in Kwara and Niger on land acquisition processes are ongoing, in line with the backward integration sites plan. Project activities will resume in Taraba State when the rain assuages-after issues with the Government and local communities over the Lau/Tau project which has recently been resolved,” Dangote said.

He noted that DSR has continued to outperform its records despite the uncertainties and various socio-economic challenges as it recorded strong growth in sales and profit in 2017.

Key extracts of the audited report and accounts of DSR for the year ended December 31, 2017 showed group turnover of N204.42 billion, 20.4 per cent increase on N169.72 billion recorded in 2016. Profit before tax rose by 173 per cent to N53.6 billion in 2017 as against N19.61 billion recorded in 2016. After taxes, net profit jumped from N14.4 billion in 2016 to N39.8 billion in 2017. Earnings per share leapt from N1.20 to N3.31.

Shareholders yesterday approved distribution of N15 billion as final cash dividend, in addition to an interim dividend of N6 billion earlier paid during the year, bringing the total dividend for the 2017 business year to N21 billion. Shareholders will receive final dividend per share of N1.25 in addition to an interim dividend per share of 50 kobo, representing a total dividend per share of N1.75.

“The board remains focused on engaging more strategies for optimum delivery to all stakeholders,” Dangote said.

In his remarks, Acting Managing Director, Dangote Sugar Refinery (DSR) Plc, Mr. Abdullahi Sule said the company would continue to pursue its target to achieve 1.08 metric tonnes of refined sugar annually in six years and eventually 1.5 million metric tonnes in 10 years.

According to him, the focus of the company remains leveraging on its strengths to maximise every opportunity to generate sales, increase its market share and create sustainable value for all stakeholders.

“Though the business terrain remains very challenging, we remain resilient in the face of the situation and are focused on increasing our market share and customer base as well as the creation of sustainable value for our stakeholders. Our priority in the current year is the achievement of our Sugar for Nigeria Project goals and sustenance of our leadership position by improving efficiency and growing our markets,” Sule said.

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Businessinsider, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

Continue Reading
Comments

Investment

China’s State-Owned Lenders Allocate $8 Billion to Revitalize Property Market

Published

on

General Images Of Residential Property

China’s state-owned lenders have committed a substantial $8 billion in loans to rejuvenate the country’s beleaguered property market, aligning with Beijing’s directives to bolster the sector.

Agricultural Bank of China Ltd. disclosed approving over 40 billion yuan of loans for real estate projects on predefined white lists, signaling a proactive approach towards supporting the housing market’s recovery.

China Construction Bank Corp. also joined the effort, extending 3 billion yuan to five property projects, with plans to greenlight over 20 billion yuan in loans soon.

Industrial & Commercial Bank of China Ltd. and Bank of China Ltd. are among the institutions offering financing assistance, although the exact loan amounts remain undisclosed.

This initiative follows Beijing’s recent call for local authorities to enhance financing support for developers and curate lists of eligible projects.

In response, the big four state lenders pledged to meet reasonable financing demands from developers and projects identified under the coordination mechanism.

However, China’s property market faces challenges despite these measures. New home sales plummeted 34.2% year-on-year, underscoring the ongoing slowdown.

While existing home transactions surged during the Spring Festival holiday, new home sales remained subdued, prompting a cautious outlook among buyers.

The infusion of $8 billion aims to instill confidence and stimulate activity in the property sector, potentially heralding a gradual recovery amid persisting market uncertainties.

Continue Reading

Investment

BUA Foods Invests $200m in Lafiagi Sugar Estate Expansion

Published

on

BUA Foods, a leading Nigerian food conglomerate, has announced an investment of $200 million in its Lafiagi Sugar Estate located in Kwara State.

The Managing Director of BUA Foods, Ayodele Abioye, revealed this during a press briefing held at the company’s headquarters in Lagos.

Abioye said the leading company plans to enhance its integrated sugar estate project to reduce reliance on foreign exchange for raw materials.

The project includes the construction of a sugar refinery, ethanol plant, and supporting infrastructure aimed at bolstering local production.

The Lafiagi Sugar Estate spans approximately 20,000 hectares and integrates various components such as a sugar refinery with a daily capacity of 20,000 metric tonnes, along with an industrial ethanol plant.

Abioye underscored the importance of reducing dependency on forex for sourcing raw materials, citing challenges faced due to Nigeria’s lack of industrial agricultural production of sugarcane.

BUA Foods aims to bolster its local supply chain by engaging with communities and establishing partnerships in agriculture.

Abioye emphasized the need for sustainable practices and community involvement in fostering self-sufficiency.

The company’s investment reflects its dedication to expanding domestic production capabilities and driving economic growth in Nigeria’s agricultural sector.

Continue Reading

Treasury Bills

Nigeria’s One-Year Treasury Bill Oversubscribed by 300%

Published

on

FG Borrows

Nigeria’s one-year treasury bill was oversubscribed by 300% during the recent Primary Market Auction conducted by the Central Bank of Nigeria (CBN) on Wednesday.

The auction, aimed at rolling over maturing Nigerian Treasury Bills worth N1 trillion, saw unprecedented demand for the one-year T-bill.

Investors offered a total of N1.87 trillion for the N600 billion on offer, indicating a significant appetite for government securities. Out of the total subscriptions, N908.75 billion was allotted, with stop rates set at 19%.

The auction covered maturities across three different tenors: 91-day, 182-day, and 364-day bills, with varying amounts on offer.

While the 91-day bill received N39.90 billion in offers, all were sold, and the 182-day bill garnered N76.83 billion subscriptions, out of which N51.35 billion was allotted.

Managing Director of Arthur Steven Asset Management, Tunde Amolegbe, attributed the remarkable performance of the one-year bills to investor confidence in the current government and its reform initiatives.

He highlighted investors’ preference for higher rates due to signals from the CBN indicating tightening monetary policies amid accelerating inflation.

Experts view the oversubscription as a testament to investors’ trust in the government’s reforms and management of the country’s debt obligations.

The auction reflects a move by the CBN to address liquidity in the financial system while managing Nigeria’s debt obligations effectively.

The significant oversubscription signals robust investor confidence and highlights the attractiveness of Nigerian government securities despite prevailing economic challenges.

Continue Reading
Advertisement




Advertisement
Advertisement
Advertisement

Trending