CHAIRMAN’S STATEMENT AT THE OCCASION OF THE 49TH ANNUAL GENERAL MEETING OF NNDC LTD HELD ON FRIDAY, APRIL 6TH 2018 AT THE COMPANY’S BOARDROOM.
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 49th Annual General Meeting (AGM) of our esteemed company. I am honoured to present to you, our Annual Report for the financial year ended 31st March, 2017 as highlighted hereunder.
Economic and Business Environment
The economy faced challenges ranging from acute scarcity of foreign exchange, high inflation, dwindling revenues to government and decline in gross domestic product among others, as a result of the recession that reared its head in 2016. The rise in the general cost of goods and services impacted on purchasing power across all the sectors. Thus, the overall impact on operations was drop in revenue and increase in expenses.
Despite the above challenges, the company strived to attain a modest performance during the period and has remained resolute and focused in achieving its set targets.
Operating Results and Performance
The challenging business environment under which the company operated during the period impacted on the performance. The company recorded an operating income of N747.11 million against N898.56 million in the previous year representing 17% decrease. The decrease was attributed to lower dividend income on investments. Also, operating profit before tax of N138.25 million was achieved against N167.79 million in the previous year representing 18% decrease. Similarly, the company’s net asset for the year was N9.19 billion against N9.41 billion in the corresponding year representing 2.2% decrease.
Corporate Social Responsibility
The company in the year under review continued to support the development of quality manpower for the North and the country in general. This, it is doing through earmarking reasonable resources towards promoting the NNDC Young Professional Development Trust (NNDC/YPDT), the NNDC/ICAN Students Special Project (SSP) and the Musa Bello Learning Resource Centre (MBLRC). The various programmes have continued to produce professionals in the fields of Accounting, Stock Broking, Insurance and Information Technology. Since the inception of the schemes some ten (10) years ago, a total of Eight Hundred and Twenty (820) professionals has been produced.
Development of Housing Units
I am pleased to inform our distinguished shareholders that the development of a medium density housing estate which our company started in the second half of 2015 is almost completed. The housing estate, situated along Golf Course Road, Kaduna, consists of total number of sixty (60) houses made up of twelve (12) 3-bedroom detached duplexes, five (5) blocks of 2 x 3 – bedroom semi-detached duplexes, two (2) blocks of 4 x 3-bedroom terrace houses and five (5) blocks of 4 x 2-bedroom flats. In addition, there are common facilities such as shopping mall, power house and boreholes. It is expected that the estate will be handed over to NNDC by the contractor in May, 2018 when all the outstanding works of final surfacing of road networks, general water supplies, commissioning of transformers and connection to national grid will have been completed.
The company has earlier executed similar projects successfully. It constructed 10 Nos. duplex units of 3-bedroom semi-detached at Degel 2 Road and another 8 Nos. flats of 3-bedroom apartments each at No. 23/24 Sultan Bello Road, Kaduna, bringing the total number of houses constructed so far to 78 units.
Establishment of New Nigeria Commodity Marketing Company Limited
It is also pleasing to inform the shareholders that our company has established a commodity marketing company called New Nigeria Commodity Marketing Company Limited (NNCMC). The company commenced operations in November, 2017 at its Head office in Kano. The major objectives of the company include alleviating the challenges of marketing and storage of farm produce being experienced by farmers, serving as a catalyst to stimulate growth of agricultural and industrial sectors and aiding in the diversification of the economy through export of agricultural commodities.
Resuscitation of Kaduna Textiles Limited (KTL)
As part of the on-going efforts at the resuscitation of Kaduna Textiles Limited, our company during a visit to African Development Bank (AfDB) Headquarters solicited for support from the bank on behalf of KTL. The resuscitation of KTL will bring enormous value addition to the economy. When resuscitated, KTL would have garment manufacturing line for the production of military and paramilitary uniforms.
The recent Presidential order on Buy made in Nigeria goods has strengthened KTL’s prospects as there would be ready market for its products, especially military and paramilitary uniforms.
Repossessed NNDC Abuja Plot
Our company succeeded in repossessing its plot No. 767 at the Central Business District, Abuja after it was revoked and reallocated to someone else. Preparation has started for immediate development of the reinstated plot.
As the economy has now moved out of recession, we are 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 various initiatives that the company has put in motion, while taking advantage of new business opportunities with a view to improving the company’s earnings.
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