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Nigeria Stands To Earn $700million Annually From Sugar Backward Integration —– Dangote

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Dangote Sugar Refinery Plc has urged the government to faithfully follow through with the Backward Integration Policy in the sugar industry as the nation stands to rake in foreign exchange up to $700millon yearly from Sugar production self-sufficiency.

Chairman of Dangote Sugar Refinery Aliko Dangote, yesterday, at its 15th Annual General Meeting (AGM), held in Lagos said that allowing for distortions in the sugar masterplan framework will adversely affect the target of the nation attaining self-sufficiency as projected.

He described the backward integration policy as commendable which will not only reduce imports of raw sugar but save the nation’s enormous foreign exchange used for importation.

Dangote expressed delight that the BIP in the Sugar industry is going on well and added “if the National Sugar Master Plan is followed strictly and the players all follow the rules, the country will be better for it as Nigeria will save between $600million and $700 million annually as forex”

He stated that the backward integration policy of Dangote Sugar Refinery is recording appreciable progress even as he declared the company’s irrevocable commitment to the policy.

Addressing the shareholders, Dangote opined that despite the disruptions in the economy occasioned by the Covid-19 pandemic, Dangote Sugar Refinery has announced an increase in production volume which rose by 13.7 percent to 743,858 tonnes in the financial year ended December 31, 2020, compared to 654,071 tonnes in 2019.

He stated that the Company posted a Group turnover of N214.3 billion a 33percent increase over the N161.1 billion in 2019, while in the same period the Sugar Group also posted a 6.9 percent increase in sales volume from 684,487 tonnes in 2019 to 731,701 tonnes in 2020.

Therefore, the Board of the company declared a dividend payment of N18.22billion to the shareholders, amounting to N1.50kobo per ordinary share of 50k each.

According to Dangote, the improvements were attributable to operations optimization strategy despite the disruption caused by civil unrest in the last quarter of the year. “Our growth continued to benefit from the sustained efforts to drive customer base expansion and several trade initiatives and investments.”

Gross profit increased by 40.4 percent to N53.75 billion, compared to N38.29 billion in 2019 while Group profit after taxation for the year increased by 33.2 percent to N26.70 billion as against N22.36 billion in 2019, reflecting management’s unrelenting goal to deliver consistent shareholder value.

Dangote said the Company has revised its sugar production target to 550,000 metric tonnes achievable by 2024 in line with the revised plan on the BIP by the federal government.

In his remarks, the Group Managing Director/Chief Executive Officer, Mr. Ravindra Singhvi, speaking on the results said the sugar group continued the growth path with commitments to improve performance and generate value for all stakeholders.

He explained that this was reflected in the sales volume delivery of 731,701 tonnes, and production of 743,858 tonnes being a 6.9% and 13.7% increase in volumes over the comparative year 2019.

He said the Company would ensure all hands are on deck to meet the targeted 550,000tonnes projected to be achieved by 2024. “Our Backward Integration goal is to become a global force in sugar production, by producing 1.5M MT/PA of refined sugar from locally grown sugar cane for the domestic and export markets.”

According to him, “our focus on the implementation of our key strategies in the face of the several challenges posed by the COVID Pandemic, the peculiarities of the Apapa traffic situation amongst others we achieved a topline growth in revenue of N214.30 billion, a 33.0% increase over 2019; a 53% YOY increase in PBT, and 33.2% increase in PAT.

“2020 was indeed very eventful for our company ranging from the weak macroeconomic fundamentals caused by the underlying impact of COVID-19 pandemic which saw to the steady rise in forex rate, high inflation and the significant rise in our cost of production, to the worsening traffic gridlock on the Apapa Wharf Road which led to delays and at times disruption of the distribution and deliveries to customers.”

He noted that one of the key highlights during the year was the successful completion of the Scheme of Arrangement – a merger of Dangote Sugar Refinery Plc (DSR) and Savannah Sugar Company Limited (SSCL) with effect from September 1, 2020, to operate under one unified entity.

He added, “We are confident the merger will enable us to achieve operational, administrative, and governance efficiencies resulting in increased shareholder value. We will continue to pursue our Backward Integration Projects, and other key initiatives to grow our sales volumes, market share, optimize cost and operational efficiencies.

Also speaking, Dr. Farouk Umar, President, Association for the Advancement of the Rights of Nigerian Shareholders commended the management of Dangote Sugar for the impressive performance of the company despite the hiccups in the year 2020.

He said the shareholders expect more robust results next year since the economy is already picking up and for them to have performed excellently under pandemic, then next year will be greater for us all. The leadership of the company has been very wonderful.”

Commenting in the same vein, Coordinator, Independent Shareholders Association, Sir Sunny Nwosu said the management of Dangote Sugar led by Dangote has never let the shareholders down for once “their management style is second to none and that is why the company has been growing steadily.

He said the way and manner the Company has been executing its BIP projects was also commendable as this will afford the Company opportunity to meet the target within it projected timelines.

Dangote Sugar Refinery is Nigeria’s largest producer of household and commercial sugar with a 1.44M MT refining capacity at the same location. Our refinery located at Apapa Wharf Ports Complex, refines raw sugar imported from Brazil to white, Vitamin A fortified refined granulated white sugar suitable for household and industrial uses.

To achieve this, Dangote Sugar Refinery Plc acquired Savannah Sugar Company Limited, located in Numan, Adamawa State in December 2012, and embarked on the ongoing rehabilitation of its facilities and expansion of its 32,000 hectares’ sugarcane estate. In September 2020, the scheme of merger between DSR and Savannah Sugar estate was completed which gave birth to a bigger and stronger business with considerable opportunity for growth and delivery of superior benefits to all stakeholders. The expansion and rehabilitation of the sugar estate is still ongoing as well as the development of the greenfield site acquired at Tunga, Nasarawa State for the achievement of DSR’s sugar for Nigeria development master plan.

The Nasarawa Sugar Company Limited is the registered subsidiary of Dangote Sugar Refinery Plc. The 78,136 hectares Sugar Project Site is located at Tunga, Awe Local Government Area, of Nasarawa State. Massive developments in agriculture, irrigation infrastructure amongst others is ongoing at the site. Unfortunately, Lau/Tau project is still on hold following the lingering compensation issue between the communities and the Taraba state government.

NEWS

PSL Capital Limited Announces Rebranding, Changes Name To Parthian Securities Limited

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PSL Capital Limited, a leading indigenous broker/dealer firm, has completed a strategic rebranding effort as part of its accelerated company growth and renewal of its corporate vision. At the core of the rebrand is a change of the company name to Parthian Securities Limited and an update to the corporate logo and domain name (parthiansecuritiesng.com)

Over the past 5 years, Parthian Securities Limited has cemented its status as a market leader for securities trading in Nigeria and across Africa. It has experienced 30%+ YTD growth in client acquisition, tallying 1,100 customers across the country. This growth reflects the increasing recognition of individuals and companies that Parthian Securities Limited offers an easy and convenient platform for real-time trading of securities.

The rebranding is part of the organization’s strategy to evolve its business and create a platform for new opportunities. Despite the name change, the corporate philosophy remains the same as the company looks to invest in new and innovative ways to bring the financial markets closer to participants in the Nigerian Capital Market.

“Over the past nine years, we’ve built a strong reputation for innovation and excellence,” said Oluseye Olusoga, Group Managing Director, Parthian Partners Limited. “We want to leverage on the strong brand name that is Parthian and ensure that all subsidiaries under the group identify under a uniform brand name. While we wanted to reflect our work in the new naming accurately, we also wanted to properly market the organization in pursuit of new opportunities for future growth and expansion.”

In all, the renaming embodies an organization reinventing itself but is still very committed to its roots. The new identity builds upon its history of innovation and excellent service delivery and opens doors to the future.

Commenting, the Acting Managing Director, Parthian Securities Limited, Mr Ogunwale Kehinde, said: “We are excited about this change, and it marks a strategic pivot in our future direction as a business. While we remain committed to offering outstanding services to our amazing clientele, there is tremendous potential to grow, and this our new branding positions us to take full advantage of those opportunities.”

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NEWS

TheFLEA Conference & Awards set to spotlight sustainable development in Nigeria

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Freelanews has announced the maiden edition of her leadership and entrepreneurship awards, tagged TheFLEA Awards.

The publisher of Freelanews and founder of the award, Victor Ojelabi, while briefing the press in Lagos, hinged the motive behind the establishment of the award on the exigent need for national resurgence.

According to him, “Nigeria cannot properly develop if we continue to build on sociopolitical expediencies – run reactional government and businesses, pilot the affairs of our nation on the impulse of solving the most popular social or economic problem with short-term agendas and immediate gain motivation.”

He further explained that there is a need to be deliberate, holistic, and strategic in our planning as a nation; set a long-term focus on sustainable development, mirror how every element of our nationhood can interact efficiently in our policymaking.

“Leaders across the board must adopt a paradigm that focuses on the big picture such that our immense human and material resources can be maximized,” Ojelabi explained.

He summed that Freelanews will be using all its platforms and network of top media platforms in the country to enlist, review and honour individuals, groups, brands, and organizations with the prestigious TheFLEA Awards, to encourage the courage and dedication in the practice of future-oriented lifestyles or operations.

Uniquely, TheFLEA Awards are given to those leaders championing thoughts, causes, and operations that will have an evidential impact on the nation in the future.

The maiden edition of the TheFLEA Conference and Awards is planned to be an exclusive gathering of Nigeria’s top political and business leaders spanning key economic sectors and is scheduled to hold at the Radisson Blu Hotel, Ikeja, Lagos on the 30th of November, 2021.

“Every awardee’s activity is projected for the next ten years and expected impacts are extrapolated through our robust modeling algorithm. The pluralist model was adopted instead of the usual nomination-election model to identify the most appropriate winner in each of the twenty (20) carefully crafted categories,” he concluded.

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BIG STORY

FG Makes COVID-19 Vaccination Compulsory For Civil Servants

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The federal government has mandated civil servants to get vaccinated against COVID-19.

Boss Mustapha, secretary to the government of the federation (SGF), said workers who fail to get vaccinated will be barred from entering their places of work.

Mustapha, who is also the chairman of the presidential steering committee (PSC) on COVID-19, announced this at a briefing on Wednesday.

He said starting from December 1, workers who do not show proof of vaccination and or a negative COVID-19 result will be barred from government offices.

“With effect from 1st December 2021, federal government employees shall be required to show proof of COVID-19 vaccination or present a negative COVID-19 PCR test result done within 72 hours, to gain access to their offices, in all locations within Nigeria and our Missions. An appropriate service-wide advisory/circular will be issued to guide the process,” he said.

According to the SGF, testing statistics generated over the last four weeks have shown that the infection rate is going down in some states, while in others, the trajectory is upward.

He said the restrictions placed on travellers coming into Nigeria from South Africa, Turkey, and Brazil have been eased.

“The honorable minister of aviation today presented the position of African countries on vaccine passport which some economic blocks and countries wish to impose, for travel purposes,” he said.

“This is because African countries have found it difficult to access the vaccines for their citizens in sufficient number.

“Over several months, four countries were placed on high-level restriction for travelers from such countries. The PSC has after a review of the developments in these countries, decided to remove South Africa, Turkey, and Brazil from the restricted list.

“As you are aware, the UK has eased restrictions on fully vaccinated travelers from Nigeria to the UK with effect from 11th October.”

He said the PSC will continue to review Nigeria’s protocols based on global developments, science, and national experience.

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