Economy

NNDC records 17% income decline in 2017, says Board chairman

Written by Maritime First

…As NSE trades 501.96m shares worth N5.85bn***

The New Nigeria Development Company (NNDC) on Friday said it recorded a 17 per cent decline in income in the 2017 financial year which ended March 31, 2018.

The Chairman of NNDC, Alhaji Bashir Dalhatu , stated this while addressing directors and Secretaries to the Governments of the 19 Northern states at the company’s Annual General Meeting (AGM) on Friday in Kaduna.

Dalhatu, a former Minister of Power and Steel, said the NNDC recorded N747.11 million in 2017 as against the N898.56 million in the previous year representing, 17 per cent decline in income.

“The challenging business environment under which the company operated during the period impacted on the performance.

“The company recorded an operating income of 747.11 million against 898.56 million in the previous year representing 17 per cent decrease.

“The decrease was attributed to lower dividend income on investments. Also, operating profit before tax of 138.25 million was achieved against 167.79 million in the previous year representing 18 per cent decrease.

“Similarly, the company’s net asset for the year was 9.19 billion against 9.41 billion in the corresponding year representing 2.2 per cent decrease,“ the chairman said.

He said the decrease was due to lower dividend income on investments, “as the economy faced challenges ranging from acute scarcity of foreign exchange, high inflation, dwindling revenues to government and decline in Gross Domestic Product (GDP) among others”.

The NNDC chairman said this occurred due to the economic recession, the country experienced in 2016, that led to rise in general cost of goods and services impacted on purchasing power across all the sectors.

“Thus, the overall impact on operations was a drop in revenue and increase in expenses.

“Despite the above challenges, the company strives to attain a modest performance during the period and has remained resolute and focused in achieving its set targets,“ he said.

He said NNDC had continued to support the development of quality manpower for the North and the country in general.

“This, it is doing through earmarking resources towards promoting the NNDC Young Professional Development Trust (NNDC/YPDT), the NNDC/ICAN Students Special Project (SSP) and the Musa Bello Learning Resource Centre (MBLRC) in the fields of accounting, Stock Banking, Insurance and Information Technology.

“Since the inception of the schemes, some 10 years ago, a total of 820 professionals had been produced,“ he noted.

According to him, the development of a medium density housing estate, which the company started in the second half of 2015, is almost completed.

Dalhatu said that the company had so far constructed 78 units of houses in different parts of Kaduna city for  sale  or rent by the public.

“The economy has now moved out of recession, we are optimistic about the next financial year as it is anticipated that the various policies of the government would start having positive impact on the business environment.

“ Furthermore, we shall continue to pursue vigorously the various initiatives that the company has put in motion, while taking advantage of new business opportunities with a view to improving the company’s earnings.”

The Chairman commended the board members, the management and staff of the company for their unflinching support in spite of the economic challenges.

Meanwhile, the Nigerian Stock Exchange (NSE) on Friday transacted 501.96 million shares valued at N5.85 billion in 6,108 deals.

The News Agency of Nigeria (NAN) reports that the performance was against the 495.64 million shares worth N7.68 billion traded in 4,614 deals on Thursday.

Africa Insurance emerged the most active in volume terms, accounting for 120 million shares valued at N27.80 million.

It was followed by Access Bank which traded 103.69 million shares worth N1.26 billion, while UBA with 49.32 million shares worth N586.98 million was next in line.

Guaranty Trust Bank traded 35.59 million shares valued at N1.57 billion, while investors bought and sold 31.45 million shares of Zenith International Bank worth N855.25 million.

Mobil Oil topped the losers’ table with a loss of N13 to close at N170 per share.

Total was second with a loss of N12.40 to close at N236.60, while International Breweries was down by N2.55 to close at N49.15 per share.

GlaxosmithKline also depreciated by N2.55 to close at N29 per share, while Forte Oil shed N1.90 to close at N40 per share.

Consequently, the All-Share Index lost 34.55 points or 0.08 per cent to close at 40,841.14 points compared with 40,875.69 points achieved on Thursday.

Similarly, market capitalisation which opened at N14.77 trillion dipped N12 billion or 0.08 per cent to close at N14.75 trillion.

Conversely, Nestle recorded the highest gain to lead the gainers’ chart, appreciating by N5 to close at N1, 385 per share.

Unilever followed with a gain of N4.80 to close at N59.80, while Dangote Sugar added 70k to close at N21.45 per share.

Nigerian Breweries improved by 70k to close at N129, while May &Baker grew by 28k to close at N3.20 per share.

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Maritime First