Economy
Arla Foods Targets Sustainable Milk Production in Nigeria
By Adedapo Adesanya
Arla Foods, the makers of Dano Milk, says it is targeting 4 million kilogrammes annual milk production from its recently inaugurated dairy farm in Kaduna as part of the company’s efforts to ensure sustainable milk production in Nigeria.
The farm located in Damau village, Kubau Local Government Area, Kaduna State, was inaugurated on Thursday, May 25, 2023, by the Governor of Kaduna State, Mr Nasir El-Rufai.
The Arla Farm, a state-of-the-art Danish-designed dairy farm, is the first of its kind in Nigeria, and with it, Arla says it is creating the future of dairy in Nigeria.
“Designed to ensure optimum animal welfare and productivity, the farm will be a showcase for sustainable milk production in Nigeria.
“The farm covers 400 hectares of land, with the capacity to house 400 milking cows and 1000 animals in total. Currently, the farm is home to 216 Danish Holstein cows, which arrived in May 2023 and are settling well into their new environment,” the company said in a statement.
According to the Executive Vice President of Arla Foods International, Mr Simon Stevens, the completion of the farm was a massive achievement for Arla Foods in its journey in Nigeria and globally, noting that this success exemplifies the significance of solid partnership and the vast potential available in Nigeria.
He disclosed that the project was conceived in line with the quest to achieve a number of United Nations’ Sustainable Development Goals (SDGs), including 2, 8, 12 and 17 — zero hunger, decent work and economic growth, responsible consumption and production, and partnerships.
“This milestone symbolises what can be achieved with strong partnerships. We can see how the contribution of the Kaduna State Government, the Federal Ministry of Agriculture and Rural Development, NGOs, the farming community, and many more have helped to deliver a big project. I’m happy that many of my colleagues are celebrating this joyous occasion in Lagos and at the global headquarters in Denmark.”
“This achievement symbolises the massive potential we see in Nigeria and the exciting journey this country is on. We have been part of this journey for quite some time, and we are extremely committed to continuing to play a part and contribute to the development of the dairy industry,” Mr Stevens added.
He further noted that the farm, delivered at an investment cost of over €10 million, would serve as a place of milk production and an epicentre of dairy farming knowledge.
Also speaking, the Head of Arla Foods West Africa, Mrs Anna Månsson, noted that the commissioning of the project is a culmination of a series of events that began with the signing of a lease agreement with the Kaduna State government in 2021, resulting in the securing of farmland and followed by construction work.
She also noted that the state-of-the-art dairy farm is the first of its kind in Nigeria, poised to define the future of dairy in Nigeria.
She further noted that over 40 people would be directly employed at the farm, as this would serve as a means of livelihood to Nigerians, especially those within the Damau community of Kaduna state.
She explained that the farm is expected to produce 1.6 million kg of milk in 2024, with a target of 4 million kg of milk annual production.
Speaking at the inauguration ceremony, Governor El-Rufai described the newly commissioned dairy farm as a significant milestone and game-changer for the dairy sector in Nigeria.
He commended the management of Arla Foods and explained that the Arla Dairy Farm is another testament to the commitment of the Kaduna State government to collaborating with private organisations and providing the enabling environment for businesses to set up and thrive in the state.
He urged the incoming Governor of the State, Mr Sani Uba, to continue to support Arla and other companies with investments in the state for economic prosperity.
In his remarks, Danish Ambassador to Nigeria, Mr Sune Krogstrup, noted that the project demonstrates Arla Foods’ commitment to boosting the local dairy segment of the agricultural value chain that would positively impact the economy of Kaduna State and contribute significantly to Nigeria’s GDP.
By Adedapo Adesanya
The Central Securities Clearing System (CSCS) Plc has declared the first interim dividend in its history after posting its financial results for the first half of 2026, reflecting robust earnings growth, improved operating efficiency and stronger capital market activity.
The board approved an interim dividend of N1.00 per ordinary share for the six months ended June 30, 2026, citing the company’s strong cash generation, resilient balance sheet and confidence in the sustainability of its earnings.
The interim payout represents about 56 per cent of the total dividend of N1.78 per share paid for the 2025 financial year, underscoring its strong earnings momentum while preserving financial flexibility to invest in technology, innovation and future growth.
CSCS recorded one of the strongest financial performances in its history during the review period, with total operating income rising by 92 per cent to N18.51 billion from the corresponding period of 2025.
The growth was driven by higher transaction fee income as capital market activity strengthened, continued expansion in depository services, increased collateral management revenues and stronger contributions from data and technology-enabled services. Investment income also improved as the company optimised its investment portfolio.
Despite the sharp rise in revenue, operating expenses increased by only 38 per cent, reflecting disciplined cost management and the scalability of the company’s business model.
As a result, operating profit surged by 186 per cent to N10.11 billion, while profit before tax climbed by 115 per cent to N13.21 billion. Earnings per share also rose significantly to 190.1 kobo from 109.1 kobo in the corresponding period of 2025.
The organisation also recorded improvements in operating efficiency. Its cost-to-income ratio declined to 45.4 per cent from 63.2 per cent a year earlier, while operating profit margin improved to 54.6 per cent from 36.8 per cent.
According to the company, the results demonstrate not only the benefits of stronger market activity but also the resilience of its operating model and its ability to convert revenue growth into higher profitability, improved shareholder returns and sustainable long-term value creation.
Commenting on the interim dividend, the Chairman of CSCS Plc, Mr Temi Popoola, said the board’s decision reflected confidence in the firm’s financial strength, earnings quality and long-term strategic direction.
He said the strong performance was driven not only by increased market activity but also by sustained improvements in operational efficiency, disciplined cost management and the continued diversification of revenue streams.
Mr Popoola noted that the Board remained committed to balancing shareholder returns with investments in technology, innovation, resilience and new growth opportunities that would strengthen CSCS’ position as Nigeria’s leading financial market infrastructure and one of Africa’s foremost post-trade institutions.
The chief executive of CSCS Plc, Mr Shehu Yahaya Shantali, attributed the strong performance to the resilience of the entity’s business model, the dedication of its workforce and the confidence of market participants.
He said the first-ever interim dividend demonstrated the company’s ability to translate strong earnings growth and improved operating efficiency into enhanced shareholder value.
Mr Shantali added that CSCS would continue to strengthen its core market infrastructure, invest in technology and innovation, diversify its revenue base and enhance value creation for stakeholders while supporting the development of Nigeria’s capital market.
By Aduragbemi Omiyale
The national scale long-term issuer rating of Axxela Limited has been upgraded by GCR Rating to A+(NG), just as its short-term issuer rating was affirmed with a stable outlook.
The rating firm upgraded the long-term issue rating for Axxela Funding 1 Plc’s N16.4 billion series 1 senior unsecured bond to A+(NG), while the N11.5 billion series 1 senior secured bond was lifted to A+(NG)(EL).
GCR noted in a note that the actions reflect the leading gas and power portfolio company’s robust business model, strong earnings performance, and sustained financial profile, reinforcing its ability to deliver long-term value while maintaining financial discipline.
Axxela’s recent achievements have been driven by its continued focus on responsible growth, customer satisfaction, and creating lasting value for national development.
“The ratings upgrade by GCR is a strong endorsement of Axxela’s disciplined approach to business. Beyond recognising our financial strength, it reflects the resilience of our business model and the confidence in our strategic direction.
“Over the past few years, we have continued to make significant strides across the business by expanding our natural gas infrastructure, strengthening our operational footprint, advancing our sustainability agenda, and maintaining an unwavering commitment to operational excellence and safety,” the chief executive of Axxela, Mr Moshood Olajide, commented on the development.
As the company continues to advance its long-term growth strategy, the upgraded ratings reinforce confidence in Axxela’s credit profile, financial resilience, and ability to create enduring value for investors, customers and other stakeholders.
By Adedapo Adesanya
The Ministry of Solid Minerals Development and the National Identity Management Commission (NIMC) have strengthened their partnership to deploy digital identity technology, aiming to combat illegal mining and enhance security in Nigeria’s mining sector.
Speaking while receiving the Director-General and management of NIMC on a courtesy visit to his office in Abuja, the Minister of Solid Minerals Development, Mr Dele Alake, described the commission as a critical institution in Nigeria’s development architecture, stressing that effective governance could not be achieved without a credible identity management system.
“NIMC occupies a critical position in translating policy into reality. It is pivotal to the development of any nation because governance today is driven by data, technology and credible identity systems,” he added.
He noted that inadequate identification systems had weakened enforcement efforts over the years, allowing illegal mining activities to flourish in mineral-rich communities.
“Without identification, we cannot trace or track, and insecurity will flourish. In the solid minerals sector, we need effective monitoring of both legal and illegal operations.
“A credible identity ecosystem will strengthen regulation, improve enforcement and support our efforts to sanitise the sector,” Mr Alake said.
The minister identified technology, statistics, data gathering and digital identity as critical enablers for evidence-based policymaking, improved regulatory oversight, efficient licensing, investment promotion and national development.
On her part, the DG of NIMC, Mrs Abisoye Coker-Odusote, highlighted several opportunities for collaboration between both institutions, noting that the newly enacted NIMC Act has positioned Nigeria to fully embrace a digital governance ecosystem.
She explained that deeper integration of identity management into the solid minerals sector would facilitate database integration across government institutions, enhance regulatory compliance, strengthen security and law enforcement, improve monitoring of operators, and provide stronger support for the implementation of Community Development Agreements (CDAs) in mining host communities.
Mrs Coker-Odusote added that NIMC’s upgraded digital infrastructure is capable of supporting government institutions in building reliable databases, improving transparency and delivering more efficient public services.
Both institutions said they would immediately begin implementing technology-driven initiatives under the partnership, expressing confidence that expanding access to trusted digital identities for miners and other eligible residents would enhance accountability and strengthen governance in the solid minerals sector.
