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Companies

WACOT Limited opens N10 billion rice mill in Kebbi

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Governnment’s policies to encourage investments in the agricultural sector seem to be working as WACOT limited has opened a N10 billion rice mill in Agungi, Kebbi state.

The rice mill which has a processing capacity of 120,000 tonnes per annum was commissioned yesterday by Acting President Yemi Osinbanjo.

GMD of WACOT rice mill has also stated the company intends to make further investments in various agriculture value chains.

Why companies are investing heavily in the rice agriculture value chain

The present administration’s Economic Recovery and Growth Plan (ERGP) has agricultural self-sufficiency as a key agenda. The government through the Central Bank of Nigeria (CBN) Anchor Borrower Scheme has lent billions of Naira to rice farmers.

Under the scheme, farmers are grouped into cooperatives and given loans through commercial banks. The CBN provides the funds at an interest rate of 2% and put a cap on the interest rate banks can charge at 9%. This has encouraged many farmers to go into cultivation of rice and other crops covered by the scheme. Processors have also signed agreement to purchase the rice cultivated.

The scheme is thus a win for both farmers and processors. Farmers get paid, and processors get guaranteed supply. A break in supply has led to the Dangote Tomato paste factory to shut down several times.

How the country benefits

The higher the quantity of food produced in the country, the lower the amount of foreign exchange that has to be spent importing food items.

Developing the agriculture value chain also leads to creation of more jobs for both farmers and processors. Jobs mean income for people who were before now unemployed, and that improves purchasing power in the economy and increases economic growth.

Deal book 300 x 250

WACOT rice mill is a subsidiary of West African Cotton (WACOT) limited. WACOT is owned by Tropical General Investments Limited. The company has operations in the agro allied, manufacturing and trading operations in Ghana, Nigeria and Benin Republic.

Onome Ohwovoriole has a degree in Economics and Statistics from the University of Benin and prior to joining Nairametrics in December 2016 as Lead Analyst had stints in Publishing, Automobile Services, Entertainment and Leadership Training.He covers companies in the Nigerian corporate space, especially those listed on the Nigerian Stock Exchange (NSE).He also has a keen interest in new frontiers like Cryptocurrencies and Fintech. In his spare time, he loves to read books on finance, fiction as well as keep up with happenings in the world of international diplomacy.You can contact him via [email protected]

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Companies

Africa Prudential proposes dividend of N1 billion for shareholders

Africa Prudential Plc has proposed a sum of N1 billion as dividend for shareholders.

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African Prudential could be worth more than N4.55

The Board of Directors of Africa Prudential Plc has proposed a sum of N1 billion as dividend to shareholders for the period ended 31st of December 2020.

This is according to a disclosure signed by the firm’s secretary, Joseph Jibunoh and sent to the Nigerian Stock Exchange, as seen by Nairametrics.

According to the notification, the proposed dividend will be paid electronically to qualified shareholders on the 26th of March, 2021, subject to appropriate withholding tax and approval from the company’s Annual General Meeting (AGM) scheduled a day earlier.

The breakdown of the proposed dividend shows that a sum of 50 kobo will be paid for each outstanding 2,000,000,000 ordinary shares of the company, held by its shareholders, totalling N1 billion. The proposed dividend is 28.6% lower than the 2019 figures of N1.4 billion.

The comparative decline in the company’s proposed dividend for the year might be attributed to a recent dip in profit and other key metrics recorded by the firm in its latest audited financial statement for 2020. For example, the firm posted a profit of N1.45 billion for the year, indicating a decline of 13.98% YoY. In addition, its earnings per share declined by 14.29% to print at 72 kobo.

What you should know

  • Africa Prudential had recently announced the appointment of Mrs Zubaida Rasheed as Director.
  • Africa Prudential Plc, formerly known as UBA Registrars Ltd, was incorporated as a private limited liability company on 23rd March 2006. It was listed in the NSE on 17th of January, 2013.

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Companies

Dangote Sugar proposes N18.2 billion as final dividend for 2020

Dangote Sugar Refinery Plc has proposed a sum of N18.2 billion as the final dividend for shareholders.

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Dangote Sugar proposes N18.2 billion as final dividend for 2020

The Board of Directors of Nigeria, Dangote Sugar Refinery Plc has proposed a sum of N18.2 billion as the final dividend for shareholders for the period ended 31st December 2020.

This announcement was contained in the audited financial statement of the leading integrated sugar company.

In line with the statement of the Board of DSR, the approval of this proposed dividend at the forthcoming Annual General Meeting will see Dangote Sugar pay out a final dividend of N1.50 for each of the outstanding 12,146,878,241 ordinary shares of the company, held by its shareholders.

The proposed dividend is 36.36% higher than the final dividend of N1.1 per share (N13.36 billion) the sugar company paid its shareholders in 2019.

What you should know

  • Dangote Sugar Refinery declared in its audited statement for the period ended 31st December 2020 that its profit for the year climbed to N29.8 billion, from N22.4 billion in 2019.
  • According to these figures, DSR’s earnings per share for 2020 are pegged at N2.45. Hence, with a dividend of N1.50 per share, Dangote Sugar is set to payout 61.2% of its profits for 2020.
  • At the close of trading activities on the floor of the Nigerian Stock Exchange today, shares in Dangote Sugar Refinery declined by 0.83% to close lower at N17.85.
  • At this price, the dividend yield of Dangote Sugar shares is 8.40%.

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