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You Can’t Stop Us, Dangote Sugar Tells COVID-19 as Profit Grows by Over 300 Percent



Dangote Sugar Refinery Plc

Dangote Sugar Grows Profit by Over 300 Percent Despite COVID-19

Dangote Sugar Refinery Plc has once again proved it can make money in all conditions, including during the unusual COVID-19 pandemic.

The sugar manufacturing company grew revenue from N37.061 billion posted in the third quarter (Q3) of 2019 to N57.280 billion in Q3 2020 despite the COVID-19 pandemic and challenging business environment that grounded many businesses and forced corporations to shut down operations.

In the financial statements released on the Nigerian Stock Exchange’s website on Monday, the group cost of sales rose to a shocking N43.958 billion, up from N29.157 billion achieved in the corresponding period of 2019. Largely due to the surged in cost of production, especially with the local currency devalued twice in 2020 alone.

Still, gross profit expanded from N7.904 billion filed in Q3 2019 to N13.322 billion in Q3 2020 while operating profit almost doubled the N5.623 billion posted in the same period of 2019 to N10.480 billion in Q3 2020.

The company’s profit before tax expanded rose more than 100 percent to N12.033 billion, up from N5.936 billion recorded in Q3 2019.

In the same vein, profit after tax rose more than 300 percent from N3.726 billion posted in the third quarter of 2019 to N15.049 billion in the third quarter of 2020.

Dangote Sugar grew total assets from N93.627 billion achieved in the nine months ended September 30, 2019 to N166.016 billion in the same period of 2020. Again, the company’s equity expanded to N121.566 billion, up from N100.478 billion in the corresponding period of 2019.

The sugar manufacturer’s total liabilities more than double to N148.844 billion from N69.180 billion in the nine-month ended September 30, 2019.

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


CBN Maintains 11.5 Percent Monetary Policy Rate, Leaves Other Ratios Unchanged



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The Central Bank of Nigeria led Monetary Policy Committee (MPC) has left the interest rate unchanged at 11.5 percent to further stimulate activities in the real sector of the economy.

Godwin Emefiele, the Governor of Central Bank of Nigeria disclosed this at the end of the MPC meeting on Tuesday in Abuja.

He said other parameters, the Cash Reserve Ratio (CRR), Liquidity ratio, and asymmetric corridor, were left unchanged.

According to the Governor, the committee voted unanimously to maintain the current monetary policy and attributed the surge in inflation to structural policies, the increase in pump price and the recent #EndSARS protest.

Highlights of CBN-MPC’s  Decision

  • MPR was kept at 11.50%
  • The asymmetric corridor of +100/-700 basis points around the MPR
  • CRR was retained at 27.5%
  • Liquid Ratio was also kept at 30%

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Unity Bank Grew Gross Earnings by 8 Percent to N34 Billion in Nine Months



Unity bank

Unity Bank Plc grew gross earnings by 8 percent despite COVID-19 and other headwinds that hurt the profitability of most businesses in the first nine months of the year.

A break down of the bank’s unaudited financial results for the period showed gross earnings rose by 8 percent to N33.91 billion for the nine months ended September 30, 2020, up from N31.26 billion posted in the same period of last year.

The lender’s total assets rose by 44 percent from N293.05 billion in the corresponding period of 2019 to N420.87 billion in the period under review.

Unity Bank grew profit before tax from N1.61 billion in 2019 to N1.71 billion in the period under review, while profit after tax expanded from N1.48 billion in the corresponding period to N1.57 billion in 2020.

Customers’ deposits stood at N332.36 billion during the period under review, up from N257.69 billion posted in 2019.

Commenting on the performance, Mrs. Tomi Somefun, the Managing Director/Chief Executive Officer, Unity Bank Plc, expressed delight at the strong growth recorded across the bank’s balance sheet, especially from both the liability and assets side of the business and across key indices.

She said, “even as the bank continues to innovate in its e-business product bouquet to target and support value chain business with robust technology and thus diversify its earnings base.”

Somefun said, “One of the areas that will define our strategic direction going forward is investment in alternative channels, leveraging further deployment of resources in technology.

“COVID-19 gave us a chance to test the integrity and scalability of our technology, the IT infrastructure, and the electronic banking channels, and provided us an opportunity to see where we needed to improve and strengthen, knowing that the future of sustainable banking business is in alternative channels.”

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Financial Sector Grew by 6.8 Percent in the Third Quarter



Central Bank

The finance and insurance sector that comprises of both the financial institutions and insurance subsectors grew by 5.91 percent year-on-year in nominal terms in the third quarter (Q3).

According to the National Bureau of Statistics (NBS) latest report, the financial institutions’ subsector accounted for 88.89 percent of the sector in real terms in the quarter under review while the insurance subsector contributed the remaining 11.11 percent.

During the third quarter of 2020, the financial institutions’ subsector grew by 6.8 percent in Q3 2020 from 28.41 percent in Q2 2020 and 0.61 percent in Q3 2019 despite COVID-19 and a tough operating environment. The insurance subsector, however, contracted by -18.67 percent in Q3 2020 from -29.53 percent in Q2 2020 and 3.96 percent in Q3 2019.

On a quarterly basis, the sector declined by 24.76 percent.

In terms of contribution to GDP, the finance and insurance sector contributed 2.46 percent in Q3 2020, higher than the 2.40 percent it represented a year ago and lower than the contribution of 3.76 percent achieved in the previous quarter.

The economy contracted by 3.62 percent in the third quarter following a 6.10 percent decline posted in the second quarter. Nigeria is officially in the second economic recession in four years.

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