16/12/2016 NNDC's CHAIRMAN 2016 AGM SPEECH
CHAIRMAN’s STATEMENT DELIVERED BY ALH. BASHIR MOHAMMED DALHATU (WALIN DUTSE) - THE CHAIRMAN BOARD OF DIRECTORS OF NEW NIGERIA DEVELOPMENT COMPANY LIMITED AT THE 21ST ANNUAL GENERAL MEETING OF THE COMPANY HELD ON FRIDAY, DECEMBER 16TH 2016 AT NNDC BOARD ROOM 6TH FLOOR AHMED TALIB HOUSE, KADUNA
Distinguished shareholders, my colleagues on the Board, invited guests, ladies and gentlemen, gentlemen of the press. It gives me great pleasure to welcome you all on behalf of the Board of Directors to the 21st Annual General Meeting (AGM) of our esteemed Company. I am honored to present to you, our Annual Report for the financial year ended 31st March, 2016 as highlighted hereunder.
Economic and Business Environment
The economic and business environment in which the company operated during the period could be described as severe. This is evidenced by the continuous decline in the international price of crude oil which led to a sharp decline in government revenue resulting in a significant reduction in foreign earnings and unabated devaluation of the Naira against other major foreign currencies. This was further worsened by the activities of the Niger Delta militants which continued to impact negatively on the level of oil production for export. There was also a sharp decline in foreign direct investment (FDI). Furthermore, the full implementation of Treasury Single Account (TSA) aimed at blocking leakages of government revenue, fight against corruption, and removal of oil subsidy as well as efforts made in stabilizing the exchange rate resulted in liquidity squeeze in the economy. The overall impact of the foregoing on businesses was decline in earnings as well as increase in cost of doing business. Despite the above challenges, the company strived to attain a modest performance during the period and has remained resolute and focused in achieving the set targets as articulated in its 5 year strategic plan.
Operating results and performance
The volatile business environment under which the company operated during the period impacted on the performance. The company recorded a decline of 3% in operating income from N923.9m in the previous year to N898.6m which was attributed to lower dividend income. Also, a 29% decrease in operating profit before tax from N237.2m to N167.9m was recorded. The company was able to improve its net assets per share by 1.7% from N18.5 to N18.8 when compared with results of the year ended 31st March, 2015 respectively.
Corporate Social Responsibility
The harsh economic condition of the country did not deter the company from its determination to the development of quality manpower for the North and the country in general. The Company in the period under review, earmarked reasonable resources towards promoting the NNDC Young Professionals Development Trust (NNDC/YPDT), the NNDC/ICAN Students Special Project and the Musa Bello Learning and Resource Centre (MBLRC). The various programmes have continued to produce professionals in the fields of Accounting, Stock Broking, Insurance and Information Technology. The company also contributed to a fund raising to support the internally displaced persons (IDP) due to the insurgency in the North East.
We are cautiously optimistic about the next financial year as it is anticipated that the various policies of the government would start having positive impact on the business environment. Furthermore, we shall continue to pursue vigorously the goals and objectives as enshrined in the Company’s five year strategic plan by taking advantage of the opportunities abound in government efforts at diversifying the national economy.
In concluding this address, I would like to congratulate my colleagues on the Board, the Management and Staff of our Company for their unflinching support despite the economic challenges. Please allow me to convey our most sincere gratitude to the Northern States Governors’ Forum (NSGF) for its continued support to the company. As we look forward to a more fruitful year ahead, I enjoin you to remain steadfast in our quest to move the company to greater heights.
Alh. Bashir Mohammed Dalhatu (Walin Dutse)