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Dangote Sugar Bakes Over N14b Profit

Written by Maritime First
  • To Dole out 60k per Share
  • As Rep seeks 20-year jail term for financial crimes

The Dangote Sugar Plc has declared a profit after tax of N14.4 billion for the financial year ended Dec. 31, 2016.

This, according to audited result issued by the company on Sunday shows an increase of 29.26 per cent, when compared to an earlier year profit profile of the N11 .14 billion reported in the corresponding period of 2015.

“The profit before tax stood at N19.61 billion compared with N16.16 billion achieved in the previous year, an increase of 21 per cent.

“The company’s revenue appreciated to N167. 72 billion against the N101.06 billion recorded in 2015, representing a growth of 68 per cent.

“Seasonal sugar production at Savannah 17,122 tonnes (2015: 6,610 tonnes) Full year refinery production at Apapa 791,800 tonnes (2015: 740,350 tonnes) Group sugar sales volume 778,518 tonnes (2015: 782,000 tonnes.’’

The report, however, stated that the board of directors recommended a dividend of 60k per share to all its shareholders in contrast with 50k paid in 2015.

Commenting on the development, Mr Abdullahi Sule, the company’s acting Group Managing Director, attributed the performance to improved sales in spite of the current macro-economic challenges.

“We are very pleased with the results for the period under review, our revenue grew by 68 per cent and improve sales volume compared to 2015 despite the current macro-economic challenges,” Sule said.

He said that the company would leverage on its strengths to maximise every opportunity to generate sales, increase market shares and create sustainable value for its stakeholders.

Sule said that the company’s strategy was to become a global force in sugar production.

He said that company was working within Nigeria’s National Sugar Master Plan to end importation and sell more than 1.5 to 2.0 million metric tonnes of locally produced sugar in Nigeria and neighbouring countries.

“As part of this plan we acquired Savannah Sugar in December 2012 and are currently improving its farm acreage and upgrading its production facilities.

“We intend to augment Savannah’s 32,000 hectares in Adamawa State by acquiring and planting a further 150,000 hectares across Nigeria,” he said.

In the meantime, the House of Representatives wants persons convicted of economic and financial crimes to be jailed for 20 years.

This is part of the details of the new amendments to the Economic and Financial Crimes Commission Act, 2004, which The PUNCH obtained on Sunday.

The Act currently prescribes a penalty of “not less than two years” for economic and financial crimes.

Lawmakers consider this to be “lenient” for the serious crime of stealing public money or other forms of financial crimes.

Four consolidated bills before the House are seeking to further empower the EFCC to fight crime, insulate the anti-graft agency from interference by the Presidency and enhance its financial autonomy.

One of the bills, which was sponsored by a member from Cross River State, Mr. Bassey Ewa, proposes to raise the two-year term for economic and financial crimes offenders to 20 years.

In the new bill, Section 18 of the Principal Act is amended to prescribe tougher punishments for economic and financial crimes.

The new subsection (C) reads: “All convicted persons shall serve an imprisonment of a term not less than 20 years and have their ill-gotten property, accounts or investment confiscated by the government.”

The new proposal also states that plea bargaining or returning the full amount stolen does not exclude the convict from penalty.

Subsection (d) adds, “Where the accused person, upon investigation, accepts to refund the total amount standing in his/her name and willing to plea bargain, he or she shall be convicted for not less than two years.”

Similarly, a company found guilty of economic or financial crimes, will be barred from doing business in Nigeria for 50 years.

This is captured under subsection (e), which states that, “Any company found guilty of offences under this Act, both its assets and finances shall be frozen and the company blacklisted from doing business in Nigeria for 50 years.”

Additional report from Punch

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