Dangote Sugar’s $700M BIP investments will promote infrastructure development

Esan Bolaji
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Dangote Sugar’s $700M BIP investments will promote infrastructure development

With a national annual import of over $337million, the management of Dangote Sugar Refinery Plc has declared its irrevocable commitment to the Backward Integration Policy (BIP) of the Federal Government to reverse the trend and make Nigeria self-sufficient in sugar production.

The company which is committing over $700million to its sugar projects told visiting members of the Nasarawa House of Assembly at the weekend that the company’s investments in sugar will revolutionalize the economy of the state and lift its people as other people-oriented infrastructures would come with the sugar projects.

Dangote Sugar

The state lawmakers who were obviously excited at the sugar projects commended the Dangote Group for choice of the state for the project and the accelerated pace with which the project was being executed despite occasional delays arising from communal disagreements.

Nigeria is one of sub-Saharan Africa’s largest importers of sugar second only to South Africa, but the Dangote Sugar management assured the lawmakers that by the time the company fully completes its sugar projects in Nasarawa and Adamawa under the BIP, the nation would be saved of more than half of the forex expended on sugar imports annually.

General Manager for the Backward Integration Project, Dangote Sugar, Mr John Beverley said when the factory is fully operational, it would have the capacity to crush 12,000 tons cane per day (tcd), while 90MW power will be generated for both the company’s use and host communities.

He disclosed also that some 500km roads in all will be constructed to ease transportation within the vicinity, even as he solicited the support of the lawmakers in controlling the menace of land encroachment by settlers and itinerant farmers.

Mr Beverley said the company has been carrying out Corporate Social Responsibility (CSR) projects in the communities pointing out that so far the company has constructed boreholes, schools, Clinic and awarded scholarship among other CSR services.

In his response, the Speaker of the Nasarawa State House of Assembly Hon. Ibrahim Balarabe Abdullah, who led the team said that the $500 million so far expended on the investments by Dangote Sugar Refinery Plc in Nasarawa State is not only a blessing to Nigeria but the pride of Africa.

The Speaker and his team members, who were conducted round the company’s 78,000 hectares Backward Integration Project in Tunga Awe Local Government Area of the stated commended the Chairman of the Company. Alhaji Aliko Dangote for the gigantic project saying “seeing is believing”.

The Speaker said he was taken aback by the huge nature of the investment, noting that it would not only open up opportunities in the state but in Africa as a whole.

Aside the Speaker, other Principal Officers in his entourage are House Majority Leader Hon Umar Tanko Tunga(Awe North), Deputy Majority Leader Daniel Ogah Ogazi, the Chief Whip Hon Muhammad Muluku(Nasarawa Eggon East), Hon. Suleiman Yakubu Azara(Awe South) and Hon Muhammad Alkali(Lafiya North).

The Speaker said the lawmakers were ready to partner and support the company towards the realization of the sugar project through relevant legislation.

According to him, the news that the project would create about 150,000 jobs is a welcome one, more so when it is no secret that the project site was once a forest harbouring criminals before its acquisition by the Dangote Sugar Refinery.

Also shedding light on the project, the General Manager, Government and Stakeholders Relations, Mr Bello Dan Musa said the President of Dangote Group is passionate about lifting Nigeria’s economy through strategic investment and job creation.

He added that the huge project does not only fit into the Backward Integration Policy and National Sugar Master Plan(NSMP) but the diversification agenda of the government.

The Dangote Group is the biggest private sector investor in the Backward Integration Policy of the Federal Government. The policy seeks to gradually halt the importation of sugar into the country.

It would be recalled that in 2017 the Dangote Industries Limited signed a landmark $700million Memorandum of Understanding with the Nasarawa State Government.

The integrated sugar complex to be located in Tunga, Awe Local Government Area of Nasarawa state, comprises an initial 60,000ha sugar plantation and two sugar factories with the capacity to produce 430,000tpa of refined white sugar representing about 30% of the country’s consumption and would be the largest plant in Nigeria.

When Phase II of the project is completed, according to the company, it would make it the largest sugar refining plant in Africa.

World No Tobacco Day 2021: ‘Commit To Quit’, A Goal For All

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World No Tobacco Day 2021: ‘Commit To Quit’, A Goal For All

WHO has recently launched a year-long global campaign for World No Tobacco Day 2021 – “Commit to Quit”. This campaign aims to support people worldwide in their attempt to give up tobacco through various initiatives and digital solutions.

Quitters, they say never win, but in the case of tobacco, quitters are the real winners.

When the news came out that smokers were more likely to develop severe disease with COVID-19 compared to non-smokers, it triggered millions of smokers to want to quit tobacco. But without adequate support, quitting can be incredibly challenging.

The nicotine found in tobacco is highly addictive and creates dependence. The behavioural and emotional ties to tobacco use – like having a cigarette with your coffee, craving tobacco, feelings of sadness or stress – make it hard to kick the habit.

With professional support and cessation services, tobacco users double their chances of quitting successfully.

Currently, over 70% of the 1.3 billion tobacco users worldwide lack access to the tools they need to quit successfully. This gap in access to cessation services is only further exacerbated in the last year as the health workforce has been mobilized to handle the pandemic.

That’s why WHO launched a year-long campaign for World No Tobacco Day’s – “Commit to Quit” theme. The campaign aims to empower 100 million tobacco users to make a quit attempt by creating networks of support and increasing access to services proven to help tobacco users quit successfully.

This will be achieved by scaling up existing services such as brief advice from health professionals and national toll free quit lines, as well as launching innovative services like Florence, WHO’s first digital health worker, and chatbot support programmes on WhatsApp and Viber.

To truly help tobacco users quit, they need to be supported with tried and tested policies and interventions to drive down the demand for tobacco.

The WHO Framework Convention on Tobacco Control (WHO FCTC) provides a strong, concerted response to the global tobacco epidemic and its enormous health, social, environmental and economic costs. To help countries implement the WHO FCTC, WHO introduced the MPOWER technical package to support implementation of key strategies, such as raising tobacco taxes, creating smoke-free environments and offering help to quit.

E-Cigarettes Are Not Proven Cessation Aids
The tobacco industry has continuously attempted to subvert these life-saving public health measures. Over the last decade, the tobacco industry has promoted e-cigarettes as cessation aids under the guises of contributing to global tobacco control. Meanwhile, they have employed strategic marketing tactics to hook children on this same portfolio of products, making them available in over 15,000 attractive flavours.

The scientific evidence on e-cigarettes as cessation aids is inconclusive and there is a lack of clarity as to whether these products have any role to play in smoking cessation. Switching from conventional tobacco products to e-cigarettes is not quitting.

“We must be guided by science and evidence, not the marketing campaigns of the tobacco industry – the same industry that has engaged in decades of lies and deceit to sell products that have killed hundreds of millions of people”, said WHO Director-General Dr Tedros Adhanom Ghebreyesus. “E-cigarettes generate toxic chemicals, which have been linked to harmful health effects such as cardiovascular disease & lung disorders.”

Why Does The UN Prohibit Partnerships With The Tobacco Industry And Their Front Groups?
The tobacco industry is the single greatest barrier to reducing deaths caused by tobacco use. Their interests are irreconcilably opposed to promoting public health, and point to a critical need to keep them out of global tobacco control efforts.

WHO FCTC Article 5.3 aims to do just that. WHO established a firewall in 2007 to protect policies from commercial and other vested interests of the tobacco industry. The United Nations Global Compact followed suit, banning the tobacco industry from participation in 2017, flagging the problematic and irreconcilable conflicts between the goals of the UN and an industry that is responsible for more than 8 million deaths per year. In line with Article 5.3, industry has been entirely excluded from the UN system and its agencies have been urged to devise strategies to prevent industry interference.

The United Nations Inter-Agency Task Force on the Prevention and Control of NCDs , which has both the WHO and the Secretariat of the WHO FCTC as leading participants, has crafted a Model policy for agencies of the United Nations system on preventing tobacco industry interference, a strong policy to prevent industry tactics operating in the UN and then ensured its implementation at the intergovernmental level.

In 2008, the United Nations General Assembly adopted a Resolution for Smoke-free United Nations Premises, and in 2012, the United Nations Economic and Social Council called for “system-wide coherence on tobacco control”. The creation of smoke-free campuses puts into practice the United Nations smoke-free workplace policy, which aims to protect approximately 100,000 UN staff members from second-hand tobacco smoke.

WHO and the Secretariat of the WHO FCTC have stated that no partnerships should be forged with tobacco industry front groups such as the Foundation for a Smoke Free World. PMI has committed to spending one billion USD over 12 years funding a new captive organization, the Foundation for a Smoke Free World (FSFW) – Philip Morris International (PMI) is its sole funder – to reproduce and launder its harm-reduction messages.

The Importance Of Tobacco Duties And Taxes And Smoke-Free Workplaces
Despite these challenges brought on by the tobacco industry, the world has seen significant progress in tobacco control.

Since the MPOWER technical package was introduced more than a decade ago, 5 billion people have now been covered by at least one of these best-practice tobacco control measures, which has more than quadrupled since 2007.

Over the last two decades, global tobacco use has fallen by 60 million people. But the decrease varies by region and we are now seeing the tobacco industry vigorously target low-and middle-income countries with traditional cigarettes while pushing its new and emerging products in higher-income countries.

WHO urges governments to help tobacco users quit by providing the support, services, policies and tobacco taxes that enable people to quit.

Smoke-free policies have the potential to protect non-smokers, including over 65,000 children and adolescents who die every year from exposure to second-hand smoke.

Tobacco costs economies over US$ 1.4 trillion in health expenditures and lost productivity, which is equivalent to 1.8% of annual global GDP. Increasing tobacco taxes helps make these lethal products less affordable and helps cover health-care costs for the diseases they create.

There has never been a better time to quit tobacco, and commitment to helping tobacco users quit is critical to improving health and saving lives.

BAT Recognised As A Climate Leader By The Financial Times

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BAT Recognised As A Climate Leader By The Financial Times

BAT has been named as a 2021 Climate Leader by the Financial Times in an inaugural European ranking.

FT Europe Climate Leaders 2021 recognizes the top 300 of more than 4,000 companies across Europe that achieved the highest reduction in core greenhouse gas emissions in relation to revenues for the period between 2014 and 2019.

BAT has set ambitious climate targets including being carbon neutral in its own operations by 2030. In 2020 alone, BAT achieved a 30.9% reduction in emissions from its operations, contributing to a 37.4% reduction against a 2017 baseline. In March this year, BAT announced a further ambition to be carbon neutral across its value chain by 2050, representing around 90% of its total carbon footprint.

Minimizing impacts on the environment, increasing climate change resilience, and protecting the natural resources on which society depends are key parts of BAT’s ESG strategy. Some examples include:

  •  Improving the energy efficiency of factories, such as by upgrading to more efficient and lower-impact equipment.
  •  Increasing the use of renewable energy through renewable energy purchases and on-site energy generation projects.
  •  Optimizing logistics and fleet, such as through improving vehicle performance and fuel efficiency.

Kingsley Wheaton, Chief Marketing Officer at BAT, said: “We are very pleased to be named by the Financial Times as one of the companies leading the charge against climate impact. BAT is deeply committed to being a responsible business and reducing our impact on the environment.

“Last year, we said we’d achieve carbon neutrality for our own emissions by 2030 and we’re making good progress towards this target. In addition, considering the urgent global challenge of climate change, earlier this year we committed to carbon neutrality across our value chain by 2050. This recognition by the Financial Times is a positive signal that we’re heading in the right direction.”

BAT is committed to its purpose of building A Better Tomorrow™ by reducing the health impact of its business through providing a range of enjoyable and less risky products. BAT’s sustainability efforts and commitment to high standards have received notable independent recognition.

These include our inclusion in the Dow Jones Sustainability Indices for 19 consecutive years (the only tobacco company to be listed in the prestigious World Index in 2020), an MSCI rating of BBB and CDP A-Lis status.

ACAEDF Years Of Proactive Child Rights Protection Across Africa

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ACAEDF Years Of Proactive Child Rights Protection Across Africa

Africa’s leading child rights protection organisation, African Children’s Aid Education and Development Foundation (ACAEDF), a not-for-profit and non-governmental organisation commemorates its seven years of impactful existence in Nigeria and across Africa.

The celebratory event which will take place on the 25th of May 2021 at ACAEDF Crescent, Ikot Afaha, Eket, Akwa Ibom State will have top dignitaries, industry captains and notable child right promoters across the continent in attendance.

ACAEDF over the years have rescued and transformed over 234 children across the country through its well-orchestrated intervention process with the help of its committed team of experts and care givers. The event which is theme: Children for Change Celebration (CHICC) is designed to also raise funds for the establishment of schools and ICT learning centres in Riverine communities.

The anniversary will commence and would be unveiled on the 21st of May 2021 marking the onset of the celebration of ACAEDF’S 7th Anniversary. The fashion show slated for 25th May and will be livestreamed across all social media handles (@Acaedf) is geared towards raising awareness and drawing donations to support education and potable water for children in riverine communities.

Since its inception in 2014, ACAEDF have been mobilizing people and resources to advocate, protect, and proactively provide interventions especially against child witch branding and other forms of abuses. The foundation’s provable track records especially within its community of practice include; rescue and sheltering homeless children accused of witchcraft, provision of quality education both to sheltered children and those on the Home Support Programme, and reunification and reintegration of the rescued children into the society.

The foundation’s multi-purpose childcare center called ‘Land of Hope’ is equipped with the in-house hospital, skills/vocational training Centre, library, children’s parliament, sporting/recreational facilities, residential areas amongst others.

Speaking on the invaluable impacts made by the foundation since its inception, the founder and Executive Director of ACAEDF Mr. David Umem stated “Our vision is to provide every child with the audacity to hope for a better life and an envisaged future. The foundation came into existence in the first place because we saw the ever-widening gap between child abuse and timely interventions by the authorities.

The situations of child witch branding which is championed by adults and parents whose duty is to protect these children ignited in us the need to intervene and provide direct and immediate aid to these children whose rights have been greatly abused. Also, beyond our intervention programs, we have in place, an established structure used to propagate the message of hope and build top of mind awareness on child right acts through community intervention programs.  We enjoin every Nigerian to make an effort to help at least one child every day, that way, the message of hope would be extended to everyone across the continent.

It is vital to also state that in the actual sense, what we are celebrating are the people, our team of dedicated experts and over 1,000 children, young adults, parents and communities who have been impacted by our campaigns and interventions. In the coming future, we hope to create a sustainable and a thriving environment free from all form of child abuse. My utmost gratitude also goes to my dedicated team who works tirelessly to ensure that the purpose of this organization is actualized”. Mr. David Umem added.

Also, the Director for Child Development, ACAEDF, Mr. Nsidibe Orok reiterates the organization’s commitment towards child-right protection in the continent “As a not-for-profit and non-governmental organization, we aspire for a society free of child witch branding and all forms of child abuse. This aspiration has informed our commitment in the cause of our seven years of existence. The team have shown their commitment through active and impactful contributions in putting an end to all forms of child abuse and witch-hunting.

Currently, we are proactively collaborating with the Riverine communities across the Niger Delta on methods to improve access to qualitative education. These communities have been completely forgotten in terms of provision of basic amenities like clean water, schools, healthcare facilities, good roads, electricity amongst others and thus makes children from these areas vulnerable to adoption of criminal behaviors and other social anomalies. We seek partners particularly in using ICT for qualitative and sustainable education to improve the lives of a vast population of people especially children in Riverine communities”.

Amongst all the lined up of activities in commemoration of the foundation’s seven years anniversary are press briefing, raffle tickets for community development fashion show, Music performance and poetry, cocktail events, and a novelty football match. The event is geared towards raising funds for education development in selected Riverine communities, fashion parade by children and beneficiaries from the foundation and other celebratory activities.

To support the ACAEDF in its commitment to ending all forms of child abuse and incapacitation, participants are advised to follow the foundation across all their social platforms @acaedfng or visit acaedf.org for updates and feedbacks regarding the upcoming anniversary and to make donations in furtherance of its purpose of child-right protection across the continent.

NASCON’s Branding Expenses dipped by 6% to ₦527.9 million in 2020

Esan Bolaji
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NASCON’s Branding Expenses dipped by 6% to ₦527.9 million in 2020

NASCON Allied Industries Plc, a subsidiary of Dangote Industries Limited, recorded a drop in its branding expenses decreased by 6% to ₦527.9 million from ₦562.9 million in 2019, according to the financial statement ended December 2020.

This is largely due to a significant reduction in in-market consumer engagements largely driven by the restrictions on large gatherings in the markets across the country.

However, NASCON’s Market Activation expenses increased by 39% to ₦0.37bn {2019: ₦0.27bn} as a result of targeted market activations and penetration to mitigate the market disruptions caused by the COVID-19 pandemic.

NASCON

According to the report, delivery expenses for the year increased by 2% to ₦4.90bn {2019: ₦4.79bn in COGS} mainly driven by additional hiring of third party transporters to mitigate the effect of non-operational trucks and infrastructure challenges in Nigeria while ensuring timely delivery of all our products.

Administrative expenses increased by 17% to ₦2.39bn {2019: ₦2.04bn} mainly driven by increased employee costs and additional staff bus rentals. The Staff bus rentals were essential in ensuring the safety of our staff during this COVID-19 pandemic.

NASCON

Other Key financial highlights

  • Profit After Tax increased by 46% to ₦2.69bn for the year, compared to ₦1.85bn in 2019.
  • Further analysis by Brand Spur revealed that the NASCON’s salt revenue increased by 35% to ₦25.34bn {2019: ₦18.84bn} and contributed 90% of total revenue while Seasoning contributed 10%.
  • Seasoning revenue decreased by 7% to ₦2.67bn {2019: ₦2.86bn} mainly driven by trade disruptions in the market due to the COVID-19 pandemic.
  • Operating profit for the year increased by 39% to ₦4.03bn {2019: ₦2.90bn} and operating margin for the year was 14% {2019: 11%}. The main driver for the increase in 2020 was the Vegetable Oil profitability loss of ₦1.53bn in 2019 which did not reoccur in 2020.
  • Earnings per share also increased to ₦1.02 in 2020 compared to ₦0.70 in 2019.
  • Combined production efficiency for the year was 79% {2019: 80%}. Salt efficiency in all 3 plants (Oregun, Apapa and Port-Harcourt) reduced slightly to 80% {2019: 84%}. Seasoning efficiency decreased to 42% {2019: 66%} due to increased cubing capacity in the year. There was no production of Vegetable Oil and Tomato Paste in the year.
  • Cost of Sales for the year decreased by 24% to ₦16.45bn {2019: ₦21.65bn} driven by an increase in Salt ₦2.12bn and decreases in Vegetable Oil ₦2.60bn and Freight (delivery) ₦3.52bn. Vegetable Oil decrease was as a result of nonproduction of products in the year while Freight (delivery) expenses are reflected in Distribution expenses.
  • Direct material costs decreased by 3% compared to 2019 jointly due to increased global freight costs for Salt and decreased raw material purchases of Vegetable Oil. Depreciation decreased by 63% while Direct Labour decreased by 12% both due to reclassification of Freight (delivery) expenses.
  • Investment income decreased by 44% to ₦0.05bn {2019: ₦0.09bn} as we focused our resources on investing in the new Salt refinery plant to optimize the refined salt capacity. Finance costs for the year was ₦0.17bn {2019: ₦0.22bn} driven mainly by ₦0.11bn interest on borrowings related to specific borrowings for capital projects. The average effective interest rate during the year was 9%.
  • Tax expense for the year increased by 32% to ₦1.22bn {2019: ₦0.92bn}, including a deferred tax expense of ₦0.36bn {2019: ₦0.03bn}. The effective tax rate was 31% {2019: 33%}.
  • Total assets increased by 15% to ₦44.31bn {2019: ₦38.67bn}. This increase was driven predominantly by an increase in trade and other receivables, inventories and other assets. Cash and bank for the year decreased by 29% compared to the prior year to ₦2.60bn {2019: ₦3.66bn}.
  • Total liabilities increased by 15% to ₦31.59bn {2019: ₦27.58bn} primarily driven by an increase in trade and other payables and a decrease in borrowings.
  • Borrowings for the year decreased by ₦3.30bn relating to the repayment of specific borrowings for capital projects in 2019. Total equity increased year on year by 15% to ₦12.72bn {2019: ₦11.09bn}.

Proposed dividend

On Thursday 25th of February, 2021, the Directors proposed to maintain the dividend of ₦0.40 per share {2019: ₦0.40} to be paid to shareholders on Monday 31st of May, 2021.

The dividend represents a payout ratio of 39.2% {2019: 57.1%} reduced due to capital expenditure requirements in 2021. If approved, the total amount payable will be ₦1.06bn {2019: ₦1.06bn}.

U.S, Kebbi State Forge Co-Investment Partnership For WACOT Rice (Photos)

Esan Bolaji
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U.S, Kebbi State Forge Co-Investment Partnership For WACOT Rice (Photos)

The U.S. Ambassador to Nigeria, Mary Beth Leonard joined Kebbi State Executive Governor H.E. Sen. Abubakar Bagudu and private and public-sector stakeholders committed to ensuring food security in the country to launch a co-investment partnership between the USAID-funded West Africa Trade & Investment Hub (Trade Hub) and WACOT Rice.

The partnership promises to improve the livelihoods of smallholder rice farmers in the country, whose success is crucial to feeding a burgeoning population. Rice is a major staple in Nigeria, but production and supply in Kebbi State, a major producer of rice, has suffered a setback because of the COVID-19 pandemic.

WACOT Rice WACOT Rice

In response, the Trade Hub awarded a $1.48 million co-investment grant to WACOT Rice. The company operates a state-of-the-art rice mill in Argungu and sources unprocessed rice from across the country.

WACOT also engages farmers who produce and supply rice to boost their yields and guarantees off-take of unprocessed rice from farmers through buyback arrangements.

WACOT Rice WACOT Rice

The Trade Hub grant will allow the company to add 5,000 additional smallholder rice farmers into its Argungu Rice Outgrower Expansion Project launched to increase local production. The co-investment will create thousands of new jobs, increase yields by more than 50 percent, and help farmers earn more.

In her remarks, Ambassador Leonard highlighted the importance of partnering with the private sector to develop sustainable solutions to improve food security, reduce poverty, and create jobs, particularly for women.

WACOT Rice WACOT Rice

“We know the challenges faced by women farmers in owning lands and accessing finances and inputs despite women being key to making a significant impact for future generations,” the Ambassador said. “We hope this activity will improve the livelihoods of women farmers and their families in Kebbi State.”

Joining Ambassador Leonard and the Governor at the event were Rahul Savara, Group Managing Director for Tropical General Investments, the parent company of WACOT Rice, and other notable stakeholders.

The Trade Hub grant to WACOT Rice was made possible through Feed the Future, the U.S. government’s global hunger and food security initiative that works with partner countries to develop their agriculture sectors.

In Nigeria, Feed the Future focuses on modernizing practices and improving the livelihoods of smallholder farmers in five value chains: maize, rice, soy, cowpea, and aquaculture.

Global Cotton Consumption Is Expected To Grow 3.5% To 122 million Bales

Esan Bolaji
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Global Cotton Consumption Is Expected To Grow 3.5% To 122 million Bales

USDA’s first forecast for 2021/22 shows record global supply driving use higher as recovery from the COVID-19 pandemic continues. Global cotton consumption is expected to grow 3.5 percent to almost 122 million bales, higher than the pre-pandemic 2018/19 level.

However, lingering pandemic related disruptions (i.e. reduced consumer demand and logistical issues) are expected to keep global use below the 2017/18 record level.

All top ten consuming countries are expected to witness growth. India is up 2.0 million bales, accounting for nearly one-half of the growth in global use. Cotton Consumption growth in Pakistan, Turkey, and Bangladesh is expected at or above the long-term world growth rate of around 2 percent.

Cotton consumption in Vietnam is also forecast to increase.

Global Cotton Consumption

Global ending stocks are forecast lower on smaller beginning stocks and consumption exceeding production for the second consecutive year. Stocks in China and India are both expected to decline by more than 1.5 million bales.

China’s share of global stocks will decline to the second-lowest level in 11 years. India’s consumption growth will exceed the expected increase in production and lower stocks to their lowest level in 3 years. Stocks in the United States are also expected to decline.

Brazil stocks are expected to increase due to the arrival of the second-largest projected crop at the end of the marketing year.

Global Cotton Consumption

World trade is expected to contract slightly in 2021/22 from 2020/21, the highest in 8 years. Shipments from the United States and Brazil are projected down on lower exportable supplies due to significantly lower carryin.

Australia’s exports are forecast to more than double on dramatically higher production, with improved prospects relative to the extreme drought in 2020/21. India’s exports are up as higher world prices allow for the reduction of government-controlled stocks.

The second-highest projected global imports in 9 years will be driven by higher global consumption relative to the previous year. China is projected to be the world’s largest importer for the second consecutive year, although imports are forecast lower than the previous year’s 8-year high. This follows the State Reserve’s expected to return to replenishing stocks with foreign and domestic supplies.

Global Cotton Consumption

Pakistan imports are down slightly from the previous year’s record but significant due to the highest expected consumption level in 3 years and lower carryin.

The U.S. season-average farm price for 2021/22 is forecast at 75 cents per pound, 7 cents above the previous year.

2020/21 Outlook

For 2020/21, the May forecast shows lower global beginning and ending stocks. Cotton’s production and consumption are changed marginally from last month. Higher U.S. and Brazil export more than offset lower India shipments; Vietnam, China, and Bangladesh imports are projected up and more than offset slower demand from Malaysia and Taiwan.

Global ending stocks are projected down as larger exports in the United States and Brazil lower their stocks and more than offset higher levels in China.

The U.S. forecast has higher exports and the lowest projected ending stocks in 4 years. The U.S. season-average farm price is unchanged at 68 cents per pound.

NASCON Reports Profit of ₦2.69Bn in 2020, Up 46% On Revenue Of ₦28.01Bn

Esan Bolaji
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NASCON Reports Profit of ₦2.69Bn in 2020, Up 46% On Revenue Of ₦28.01Bn

NASCON Allied Industries Plc, a subsidiary of Dangote Industries Limited, has reported a turnover of ₦28.01bn representing a 2% increase from the previous year (2019: ₦27.49bn).

Profit After Tax increased by 46% to ₦2.69bn for the year, compared to ₦1.85bn in 2019.

Further analysis by Brand Spur revealed that the NASCON’s salt revenue increased by 35% to ₦25.34bn {2019: ₦18.84bn} and contributed 90% of total revenue while Seasoning contributed 10%. Seasoning revenue decreased by 7% to ₦2.67bn {2019: ₦2.86bn} mainly driven by trade disruptions in the market due to the COVID-19 pandemic.

NASCON

The Managing Director, NASCON, Mr. Paul Farrer, said, “We are adapting our channels to new business trends, to ensure adaptability in the market place”

Unfortunately, the 2015 CBN Foreign Exchange policy continued to stall the importation of the necessary raw materials for both Tomato Paste and Vegetable Oil. Due to lack of raw materials, we had no production or sales of either Vegetable Oil {2019: ₦1.58bn} or Tomato Paste {2019: Nil} in the year.

Operating profit for the year increased by 39% to ₦4.03bn {2019: ₦2.90bn} and operating margin for the year was 14% {2019: 11%}. The main driver for the increase in 2020 was the Vegetable Oil profitability loss of ₦1.53bn in 2019 which did not reoccur in 2020.

Earnings per share also increased to ₦1.02 in 2020 compared to ₦0.70 in 2019.

 

NASCON

Combined production efficiency for the year was 79% {2019: 80%}. Salt efficiency in all 3 plants (Oregun, Apapa and Port-Harcourt) reduced slightly to 80% {2019: 84%}. Seasoning efficiency decreased to 42% {2019: 66%} due to increased cubing capacity in the year. There was no production of Vegetable Oil and Tomato Paste in the year.

Cost of Sales for the year decreased by 24% to ₦16.45bn {2019: ₦21.65bn} driven by an increase in Salt ₦2.12bn and decreases in Vegetable Oil ₦2.60bn and Freight (delivery) ₦3.52bn. Vegetable Oil decrease was as a result of nonproduction of products in the year while Freight (delivery) expenses are reflected in Distribution expenses.

Direct material costs decreased by 3% compared to 2019 jointly due to increased global freight costs for Salt and decreased raw material purchases of Vegetable Oil. Depreciation decreased by 63% while Direct Labour decreased by 12% both due to reclassification of Freight (delivery) expenses.

Administrative expenses increased by 17% to ₦2.39bn {2019: ₦2.04bn} mainly driven by increased employee costs and additional staff bus rentals. The Staff bus rentals were essential in ensuring the safety of our staff during this COVID-19 pandemic.

NASCON

Market Activation expenses increased by 39% to ₦0.37bn {2019: ₦0.27bn} as a result of targeted market activations and penetration to mitigate the market disruptions caused by the COVID-19 pandemic. Branding expenses decreased by 6% to ₦0.53bn {2019: ₦0.56bn} due to a significant reduction in in-market consumer engagements largely driven by the restrictions on large gatherings in the markets across the country.

The Delivery expenses for the year increased by 2% to ₦4.90bn {2019: ₦4.79bn in COGS} mainly driven by additional hiring of third party transporters to mitigate the effect of non-operational trucks and infrastructure challenges in Nigeria while ensuring timely delivery of all our products.

Investment income decreased by 44% to ₦0.05bn {2019: ₦0.09bn} as we focused our resources on investing in the new Salt refinery plant to optimize the refined salt capacity. Finance costs for the year was ₦0.17bn {2019: ₦0.22bn} driven mainly by ₦0.11bn interest on borrowings related to specific borrowings for capital projects. The average effective interest rate during the year was 9%.

Tax expense for the year increased by 32% to ₦1.22bn {2019: ₦0.92bn}, including a deferred tax expense of ₦0.36bn {2019: ₦0.03bn}. The effective tax rate was 31% {2019: 33%}.

Total assets increased by 15% to ₦44.31bn {2019: ₦38.67bn}. This increase was driven predominantly by an increase in trade and other receivables, inventories and other assets. Cash and bank for the year decreased by 29% compared to the prior year to ₦2.60bn {2019: ₦3.66bn}.

Total liabilities increased by 15% to ₦31.59bn {2019: ₦27.58bn} primarily driven by an increase in trade and other payables and a decrease in borrowings.

Borrowings for the year decreased by ₦3.30bn relating to the repayment of specific borrowings for capital projects in 2019. Total equity increased year on year by 15% to ₦12.72bn {2019: ₦11.09bn}.

Proposed dividend

On Thursday 25th of February, 2021, the Directors proposed to maintain the dividend of ₦0.40 per share {2019: ₦0.40} to be paid to shareholders on Monday 31st of May, 2021.

The dividend represents a payout ratio of 39.2% {2019: 57.1%} reduced due to capital expenditure requirements in 2021. If approved, the total amount payable will be ₦1.06bn {2019: ₦1.06bn}.

Facebook Launches Made By Africa, Loved By The World Campaign

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Facebook Launches Made By Africa, Loved By The World Campaign

As part of its celebration around ‘Africa Day’ on 25th May, Facebook today announced the launch of its global campaign titled: ‘Made by Africa, Loved by the World’.

A series of short films unveiling the stories of eight phenomenal creatives and small business owners from across the continent who are breaking ground across the world.

Available to view on a dedicated ‘Made by Africa, Loved by the World’ microsite and the official Facebook Africa page from 21st May 2021, the films provide a glimpse into the global successes of African creatives and businesses hailing from Kenya, South Africa, Nigeria, Côte d’Ivoire and Gabon.

This includes fashion designer Laduma Ngxokolo from South Africa, whose clothing brand ‘Maxhosa’ has been worn by global names such as Beyonce and Alicia Keys, and most recently had his designs featured in the film ‘Coming to America 2’.

Also featured are Sauti Sol, a collective Afro-pop music group hailing from Kenya who have gained international recognition with nominations and shows in Europe and the US and Mark Angel, a Nigerian comedian who has amassed over 15 million global followers on Facebook. The series is aimed at showcasing, hero’ing and honouring the people that are impacting Africa, as well as the world, through their music, arts and crafts. 

Included in the ‘Made by Africa, Loved by the World’ campaign are:

●        Mai Atafo (Nigeria) – Fashion designer and bespoke tailor

●        Lafalaise Dion (Côte d’Ivoire) – Fashion designer and visual artist

●        Jessica Allogo (Gabon) – Founder of Les Petits Pots de l’Ogooué Garmout Food brand

●        Blinky Bill (Kenya) – Musician, DJ, Rapper and Producer

●        Sauti Sol (Kenya) – International award-winning Afro-pop group

●        Lola Pedro (Nigeria) – Founder of Pedro’s Premium Ogogoro drinks brand

●        Mark Angel (Nigeria) – Digital comedian, script writer and video producer

●        Laduma Ngxokolo (South Africa) – Founder of fashion brand Maxhosa and creative artist

Nunu Ntshingila, Regional Director, Facebook Africa, said “At Facebook, we’re deeply invested in the creative industry in Africa, and nowhere is it more exciting to witness this vibrant creative scene than here on the continent. These people and businesses are changing the way Africa is seen, not just in Africa, but around the world, and are cementing our position as leaders in innovation and the creative industries.

“We know that Africa is the future, and in honour of ‘Africa Day’ and the Africa Union’s 2021 celebration of African ‘Arts Culture And Heritage’, ‘Made by Africa, Loved by the World’ is our way of recognising just some of these remarkable individuals who continue to inspire the world.”

As part of the ‘Made by Africa, Loved by the World’ campaign, Facebook will be creating dedicated ‘Africa Day’ Facebook profile frames available to Facebook users, and holding free virtual trainings for SMBs and Creators across Africa through its local training partners.

Focused on providing other upcoming creatives and entrepreneurs with the digital know-how to take their ideas global, these will focus on creativity and Instagram including: how to creatively engage with your audience through Instagram; Reels school, Interactivity in stories and how to get creative with ads.

Weststar Associates Delivers 4 units of Mercedes-Benz Marcopolo Paradiso 1350 to Bonny Way Motors

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Weststar Associates Delivers 4 units of Mercedes-Benz Marcopolo Paradiso 1350 to Bonny Way Motors

Weststar Associates Limited, Authorised General Distributor of Mercedes-Benz in Nigeria have completed the delivery of an additional 4 units of the Mercedes-Benz Marcopolo Paradiso 1350 bus to Bonny Way Motors Nigeria Limited, its key clients for Mercedes-Benz Luxury Coaches in this market.

Bonny Way Motors Nigeria Limited, which have amassed over 20 years of operation in the transport industry, continue to put their trust in the Mercedes-Benz & Marcopolo Coach combination for their transport operations which runs on a nationwide scale.

Weststar Associates

Weststar Associates Limited congratulates Bonny Way Motors Nigeria Limited on their new acquisitions and wishes them all the best in their business endeavours.

The new generation Marcopolo Paradiso 1350 built on the Mercedes-Benz O500 chassis has been designed to provide the best passenger experience, greater comfort and safety to the driver – making it even better than its predecessors.

The new generation Paradiso 1350 has been designed to provide the best passenger experience and greater comfort and safety to the driver making it even better than its predecessors. The Paradiso 1350 bus is built with the ever-reliable Mercedes-Benz 0 500 RSD bus chassis developed for middle and long-distance travel, it is a robust and highly durable vehicle that is built to carry 24 tonnes and a body length of up to 14 meters long.

The new Marcopolo Paradiso 1350 brings external and internal changes that raise the level of sophistication, comfort, safety and efficiency in comparison to its predecessors.

A renewed exterior sees the Paradiso 1350 appear with newly designed mirrors that offer better driver visibility, newly designed bumpers and side windows and a new visual identity in the front; while the rear comes with a larger back cover that improves access to mechanical components and rear windows with a new design.

Another major feature of the exterior is the headlights with a new internal design and integrated DRL (Daytime Running Lights), also included in the headlights are LED fog lights and an elongated sidewall design giving a modern feel and flow to the light assembly.

Mr Mirko Plath, Managing Director, Weststar Associates Limited, commented that the introduction of the Marcopolo Paradiso 1350 bus model marks a move in the right direction for bus operators in Nigeria, as he believes that the bus operators are ready to take their businesses to the next level, he also stated that he appreciates the fact that they continue to put their trust in the Mercedes-Benz brand and that the collaboration with Marcopolo in Nigeria has certainly borne fruit over the year.

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