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Economy

Lafarge Africa Offers N1 Dividend as Net Sales Drop 2.2%

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By Dipo Olowookere

The board of Lafarge Africa Plc said the cement firm reported net sales of N213.0 billion in the 2019 financial year compared with the N217.8 billion made in the prior year, indicating about 2.2 percent decline.

Also, in the year under review, the cost of sales increased to N157.1 billion from N150.7 billion, while selling and marketing expenses gulped N5.1 billion in contrast to N3.9 billion a year earlier.

In the financial statements of the company for the year ended December 31, 2019 released on Monday, it was stated that the management trimmed the administrative costs to N17.6 billion in FY19 from N25.0 billion just as the other operating expenses were cut to N764.3 million from N1.1 billion.

In the year under review, the company’s gross profit reduced to N56.0 billion from N67.1 billion, while other income increased to N2.4 billion from N1.4 billion, with operating profit going down to N34.9 billion from N38.5 billion.

According to Lafarge Africa, there was a rise in the finance income to N3.2 billion from N1.5 billion, while the finance costs reduced to N20.2 billion from N41.6 billion.

It was disclosed in the financial status of the organisation that in FY 2019, there was a profit before tax of N17.9 billion compared with the loss before tax of N1.6 billion in FY 2018, and a profit after tax of N115.1 billion in contrast to the loss after tax of N8.8 billion reported in FY 2018.

On the balance sheet, there was a decline in the total assets to N497.2 billion in the period under consideration from N540.7 billion achieved in the prior year, while the total liabilities dropped to N152.2 billion from N406.2 billion.

The major reason for the decline in the company’s total liabilities was the huge cut in the borrowings, which stood at N11.5 billion as against N93.8 billion in the 2018 financial year.

It was also revealed in the results that the retained earnings increased to N155.8 billion from N138.3 billion.

Meanwhile, the board has proposed the payment of N1 dividend to shareholders of the company. In the previous financial year, no cash reward was made to investors.

If approved by shareholders at the company’s forthcoming Annual General Meeting (AGM), the total amount of the dividend to be paid would be N16.1 billion.

The AGM has been fixed for Tuesday, May 26, 2020, which is also the dividend payment date, while the qualification date is Thursday, April 30, 2020, with the closure of the register of shareholders set for Monday, May 4, 2020 to Friday, May 8, 2020 (both dates inclusive.

Shareholders who are yet to complete the e-dividend registration have been advised to download the registrar’s E-dividend Mandate Activation Form available on www.cardinalstoneregistrars.com, complete and submit to the registrar or their respective banks.

Also, shareholders with dividend warrants and share certificates that have remained unclaimed or are yet to be presented for payment or returned for validation have been advised to complete the e-dividend registration or contact the registrar.

Dipo Olowookere is a journalist based in Nigeria that has passion for reporting business news stories. At his leisure time, he watches football and supports 3SC of Ibadan. Mr Olowookere can be reached via [email protected]

Economy

Dangote Empowers Farmers With Tools to Improve Productivity, Livelihoods

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By Modupe Gbadeyanka

To boost food security in Nigeria, Dangote Fertiliser Limited, a subsidiary of the Dangote Industries Limited, has empowered farmers in the country with the basic knowledge and tools needed to have bountiful harvests.

The company made this possible through a comprehensive training programme targeted at more than one million farmers across the country.

This is part of the organisation’s commitment to supporting small businesses, agriculture, and job creation in Nigeria.

“This programme, integral to our agricultural extension services, encompasses spot demonstrations, result demonstrations, field demonstrations, and soil sample collections.

“The training is designed to educate farmers on best practices in fertiliser application, aiming to enhance crop yields and promote sustainable farming techniques.

“By providing hands-on demonstrations and soil analysis, we strive to empower farmers with the knowledge and tools necessary to improve their productivity and livelihoods.

“This programme shows our dedication to fostering agricultural development and economic growth in Nigeria,” Ms Fatima Wali-Abdurrahman, the Senior Adviser to the president of Dangote Group, Mr Aliko Dangote, said at the 2025 Nasarawa Trade Fair Exhibition in Lafia recently.

Ms Wali-Abdurrahman, represented by the company’s National Assembly Liaison Lead, Mr Shuaibu Abdullahi, noted that partnership with the Nasarawa state chapter of the Nigeria Association of Small-Scale Industrialists (NASSI) will help create awareness and scale up small businesses.

“I am pleased to inform you that in alignment with theme of this year’s Trade Fair, the Aliko Dangote Foundation and the Bank of Industry (BoI) had entered a Memorandum of Understanding (MoU) and established a N5 billion fund dedicated to supporting micro, small, and medium enterprises (MSMEs) across Nigeria.

“This initiative aimed to create at least one million direct jobs by providing financial support to entrepreneurs engaged in manufacturing, agro-processing, and the merchandising of goods made wholly in Nigeria,” she disclosed.

According to her, the deal has benefitted cassava processors, aluminium artisans, poultry farmers, calabash carving groups, small traders, cattle rearing groups, vegetable sellers, market women and artisan groups, among others.

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Economy

China Plans Duty-Free Access to Nigeria, Others

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By Adedapo Adesanya

The Chinese government has announced plans to grant Nigeria and 52 other African nations full duty-free access to its vast consumer market, as part of its policy shift set to reshape Africa-China trade relations.

The new trade initiative, disclosed by President Xi Jinping in a letter to African foreign ministers, will extend zero-tariff treatment to 100 per cent of tariff lines for all African countries maintaining diplomatic ties with the Asian giant.

The move builds on a previous policy that benefited only 33 least-developed African nations and is part of China’s broader strategy to deepen economic cooperation with the continent amid intensifying trade tensions with the United States.

The results are already being felt as Chinese exports to Africa surged 12.4 per cent in the first five months of the year, reaching a record 963 billion Yuan ($134 billion), according to China’s Foreign Ministry.

The implementation of this policy could allow all Nigerian goods, from agricultural produce and manufactured items to solid minerals, enter the Chinese market without the burden of import duties. It could also help drive Nigeria’s exports higher and drive revenue for the country.

The announcement comes at a critical time, as over 30 African countries, including Nigeria, face the risk of being excluded from the United States’ African Growth and Opportunity Act, a preferential trade agreement that once allowed eligible nations to export goods to the US duty-free.

For Nigeria, the proposed duty-free access could significantly boost non-oil exports, especially in sectors like agriculture, textiles, solid minerals, and manufactured goods, areas where the country has long sought to diversify.

China is also trying to boost its partnership with other regions as it faces increased scrutiny and a tariff war with President Donald Trump of the United States, who has alleged unfair trade practices. This led to hikes in tariffs between both countries until they were paused recently to allow for more negotiations.

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Economy

Sterling Bank Launches N2bn Scholarship for Private University Students

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By Aduragbemi Omiyale

An initiative to provide funding support to young Nigerians studying at private universities in Nigeria has been introduced by Sterling Bank.

The financial institution is offering N2 billion under a scheme known as Beyond Education.

Sterling Bank explained that it came up with this programme to build the country’s future leaders by dismantling the barriers that keep millions of Nigerians from accessing quality, future-focused learning.

It reflects the lender’s advocacy for organisations to shift from short-term philanthropy to long-term ecosystem development.

The Sterling Beyond Education programme will fully sponsor 600 students to study high-impact fields such as Technology, Finance, Sales, and Public Health.

It is open to young Nigerians from all 36 states and the FCT, with a merit-based and inclusive admissions process.

Candidates can nominate themselves or be nominated by others, and final selection will be determined through a public voting process open exclusively to Sterling account holders.

The pilot scheme is in partnership with Miva University, founded by renowned tech entrepreneur, Mr Sim Shagaya.

Fully accredited by the National Universities Commission, Miva is redefining higher education in Africa with scalable, affordable, and flexible programs tailored to the demands of the digital economy.

The chief executive of Sterling Bank, Mr Abubakar Suleiman, said, “Progress is not a spectator sport. While others talk about Nigeria’s potential, we are actively investing in it.

“These scholarships are direct investments in the architects of our future. We are funding the education of future leaders who will build the companies, systems, institutions and solutions Nigeria needs to thrive.”

“We’re moving beyond charity. This is about building systems that last and it is much bigger than hundreds of scholarships. It’s about the future those brilliant young minds will build for our country,” he added.

Also commenting, the Growth Executive for Retail and Consumer Banking Directorate at Sterling Bank, Obinna Ukachukwu, said, “This is what inclusive investment looks like.

“This initiative goes beyond access to education, it’s access to a future. Education remains the most valuable asset anyone can have, and we’re proud to stand behind young Nigerians as they claim it.”

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