Dufil Nigeria Limited, the maker of Indomie Noodles and other packaged food products in Nigeria, has acquired May & Baker’s food line for ₦775m. The acquisition, which happened late last month, gives Dufil ownership right to the Mimee Noodles brand.
The acquisition process was finalised on April 26th, 2018 after all the necessary approvals were given by the companies’ Boards of Directors, their respective shareholders, and the Nigerian Stock Exchange.
Business Day reported that Dufil Nigeria Limited had undertaken the acquisition of Mimee Noodles, with hopes of meeting the growing food needs across the ECOWAS region, as well as contributing to Nigeria’s economic growth through the enhancement of the non-oil sector.
Meanwhile, May & Baker’s Head of Corporate Communications, Sandra Aduba gave more insight into the development, stating that it was a 100% acquisition of the company’s food line; representing about 10% of total balance sheet size.
The Noodles industry is a red ocean and a loss contributing unit for us, hence the decision to sell. The board and shareholders approved the sale at an Extraordinary General Meeting (EGM) held on 23rd November 2017. -Sandra Aduba
She further stated that the company has overtime ran at a loss due to the poor revenue realised from the recently divested food arm. May & Baker earned about ₦1.2 billion from the food line according to its financial report for the year ended December 31st, 2017. This is about ₦520 million more than the amount Dufil eventually offered to acquire it.
Would May & Baker plough back the money or pay a special dividend?
According to Aduba, the divestment would avail May & Baker the opportunity to access the much-needed capital towards the actualisation of its refocused business model. In other words, the money would be ploughed back into the business to enable them to deliver “excellent returns for our shareholders and good value for all stakeholders.” She further disclosed that the company has plans of raising more capital through the stock market later this year.
May & Baker was founded in 1944 and it is one of Nigeria’s foremost companies and the first in the pharmaceutical industry. In 2006, the company ventured into the fast moving consumer goods (FMCG) sector with the construction of a multi-billion naira food-processing plant. The company is listed on the Nigerian Stock Exchange, and its shares are currently trading at ₦2.65.
Dufil Nigeria Limited, on the other hand, was incorporated in 1993. It is vested in the manufacturing of food, including Indomie Noodles (which controls about 50% of the noodles market in Nigeria), as well as vegetable oil.
Covid-19: Nigeria committed to procuring 29 million J&J vaccines
The Nigerian Government is still committed to acquiring 29.59 million doses of Johnson & Johnson covid-19 vaccines through the Afrixem Bank AVAT initiative.
The Nigerian Government says it is still committed to acquiring 29.59 million doses of Johnson & Johnson covid-19 vaccines through the Afrixem Bank AVAT initiative.
This was disclosed Mrs Zainab Ahmed, Minister of Finance at the recent ‘Collaborative Africa Budget Reform Initiative (CABRI) General Assembly webinar.
What the Minister said
“Therefore, the supplementary budget for COVID-19 vaccines will cover the cost of additional vaccines over and above those provided by COVAX, as well as the full cost of operations and logistics for delivering the vaccines around the country.
Already, the sum of N29.1 billion has been released from the Routine Immunization budgetary provision (Service Wide Vote) to the National Primary Healthcare Development Agency (NPHCDA) as an advance for the operational cost of deployment of the COVID-19 vaccines. The N29.1 billion represents about 52 percent of the amount required over 2021-22,” she said.
She added that FG plans to vaccinate 70 percent of eligible (18 years and above) Nigerians over the 2021 and 2022 fiscal years, with the COVAX agreement willing to cover 43.1 million of the eligible population.
In case you missed it
The World Health Organization (WHO) announced the approval of China’s Sinopharm vaccine for Covid-19 vaccination. The vaccine is reported to have 79% efficacy against covid.
Top States in Nigeria with highest IGR per population in 2020
Nairametrics ranks the 36 states of the Federation, including the Federal Capital Territory, based on their IGR per population.
Nigeria’s states generated a sum of N1.31 trillion internally in 2020, representing a marginal decline compared to N1.33 trillion recorded in 2019, and an increase compared to N1.17 trillion in 2018.
The downturn is attributable to reduced state revenue as a result of disruptions caused by the covid-induced lockdown, while the crash in crude oil prices also hampered economic growth.
Internally generated revenue is regarded as income generated by various states in the country, independent of their share of revenue from the Federation account. However, apart from the clear exception of Lagos State, all others depend largely on statutory allocations to run their state affairs.
Nairametrics ranks the 36 states of the Federation, including the Federal Capital Territory, based on their IGR per population, taking into account the estimated population size of each state as at 2016 and 5% growth rate between 2016 and 2020.
In terms of IGR per population for the six geo-political zones in Nigeria, South West takes the lead with an average of N13,966, having generated a sum of N561.01 billion and an estimated population of 40.17 million people. The South-South region followed with an average of N8,694 and a total aggregate IGR of N263.17 billion.
On the flip side, the North-Eastern region, which houses states like Bauchi, Borno, Yobe, etc. recorded the lowest IGR per population of N2,061 closely followed by North West with an average of N2,855.
Here are the top 5 states with the highest IGR per population in 2020.
Lagos State – N31,794
Lagos State, regarded as the economic hub of the nation, with a total estimated population of 13.18 million people as of 2020, generated a sum of N418.99 billion as IGR in 2020. This represents an increase of 5.1% compared to N398.73 billion recorded in 2019.
- In terms of IGR per capita, Lagos State generated an average of N31,794 from each member of the population in 2020, as against N30,257 generated in the previous year.
- It is no surprise that Lagos State tops the rank, being a major epicentre for economic activities in the country. Lagos State is the largest city in Africa in terms of GDP, and the State is widely known for its large industries, with most corporations in the country headquartered within the state.
- It also houses major seaports in the country as well as the State Government’s aggressive taxation policies. These, amongst others, ensure the state makes more revenue internally compared to other states of the Federation.
- According to data obtained from the National Bureau of Statistics, Lagos State received a total of N115.93 billion as Federal allocation in the year 2020, representing 21.67% of the total revenue available to the state in the year.
- This shows the exceptional ability of the state to run its affairs, using its internally generated revenue with little or no support from the Federal purse.
Abuja – N24,600
The Federal Capital Territory generated a sum of N92.06 billion in 2020, the third-highest state IGR in the year. However, based on IGR per population Abuja seats in second position with an average of N24,600.
- This represents a 23.5% increase when compared to N19,925 recorded in 2019.
- Abuja is the capital territory of Nigeria, with a total estimated population of 3.74 million people across a 7,315km square area.
- The state houses a lot of Federal ministries, having been made the country’s capital in 1991. Abuja is also a major conference centre in the country, as it hosts various meetings and summits annually.
- A cursory look at the data showed that the state’s IGR only accounted for 57.85% of the total available revenue, indicating that 42.15% of its revenue was gotten from the Federation account.
Rivers State – N15,281
Rivers State, being a major oil-producing state in the country, generated a sum of N117.19 billion as internally generated revenue in 2020.
- However, with an estimated population of 7.7 million people, its IGR per population stood at N15,281 in 2020, representing a decline of 16.5% when compared to N18,307 recorded in 2019.
- Rivers State is in the Niger Delta region of the country with much of the businesses in the state being oil exploration companies.
- Evident from the data obtained from the NBS, Rivers State relies heavily on statutory allocations from the Federal Government as well as their share of the 13% oil derivatives as it received a total of N141.19 billion from FAAC, representing 54.64% of the total available revenue in the review period.
Delta State – N10,045
Delta state, another state in the Niger Delta region of the country, with an estimated population of 5.9 million, generated a sum of N59.73 billion as IGR, and an average of N10,045 as IGR per population.
- Delta State is a major oil-producing state and ranks second to Rivers State. The State supplies about 35% of Nigeria’s crude oil and some considerable amount of natural gas.
- Delta State in the period received a sum of N186.83 billion as statutory allocation in 2020, thereby taking a huge part (75.8%) of the total revenue available to the state.
- Its IGR only accounted for 24.2% of the available revenue in the period, while N46.11 billion was generated as PAYE.
Ogun State – N9,263
Ogun State, a neighbouring State of Lagos State, generated a sum of N50.75 billion. In terms of IGR per population, the State generated a sum of N9,263.
- The State’s average income per population decreased by 28.4% compared to N12,945 recorded in 2019.
- The State is strategically located, bordered to the East by Ondo State, to the North by Oyo and Osun States, to the South by Lagos State and the Atlantic Ocean, and to the West by the Republic of Benin.
- Ogun State also joins the list of states that are much dependent on FAAC allocations as statutory payments stood at N37.7 billion, representing 42.61% of the total revenue.
Katsina – N1,386
Jigawa – N1,416
Benue – N1,736
Niger – N1,804
Bauchi – N1,821
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