Dipo Olowookere
By Dipo Olowookere
A construction giant, Julius Berger Nigeria Plc, has announced its intention to divest into the agriculture sector of the economy.
It is no doubt that in the construction sector of the Nigerian economy, Julius Berger has taken control of it and its achievements over the years are there for many to see.
Not resting on its oars and in its determination to deliver more value to its shareholders, the board of the organisation said it is considering trying its luck in the agro-processing business.
Julius Berger trades its shares on the Nigerian Stock Exchange (NSE) and it is one company that has given value for investment in the company through payment of dividends.
The Nigerian government, which relies heavily on crude oil for revenue to provide basic infrastructure to citizens, is looking to diversify the economy and agriculture and solid minerals are the key areas it is looking into.
The government has encouraged the local production of food and product so as to cut down the huge forex spent yearly to import these items into the country.
The agriculture value chain is one that has not been explored and companies have been encouraged to see how to make Nigeria self-sufficient in food and then export to earn more forex for the nation.
It is because of this Julius Berger feels it has the ability to replicate the huge success it has recorded in the construction industry in the agriculture sector.
In a notice dated September 23, the construction firm informed its shareholders and the investing public that it is delving into the agro-processing business.
According to the disclosure, the decision to divert from its core business was taken at the board meeting of the organisation on Tuesday, September 22, 2020.
Julius Berger, in the notice, reminded the market that it has severally hinted before now of its intention to look “into diversification opportunities, based on the emerging developments, political, economical and structural in Nigeria and the resultant reforms by the governments.”
It said based on these developments, “We would advise the exchange and the capital market that the board of Julius Berger at its meeting held on September 22, 2020, approved a diversification opportunity for the company in agro-processing.”
“The board of directors and the executive management of Julius Berger strongly believe that this diversification direction would support the continued success of the group in the future and align with the strategic objective of the government to stimulate value creation in Nigeria,” it noted.
In the disclosure, Julius Berger stressed that it “has a proven record of reliably delivering construction solutions to the highest standards for 50 years.”
“Julius Berger’s success is founded on our leading technical expertise, innovation and partnership towards Nigeria’s development.
“Julius Berger’s business is centred around a long term strategy. The goal of the board of directors and the executive management of Julius Berger is to deliver on that strategy by maintaining and strengthening the company’s competitive advantages in the construction sector and capital market,” it said.
