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Business News

PZ Cussons doubles down on palm oil

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Presco Plc Oil Production

Fast Moving Consumer Goods (FMCG) player, PZ Cussons, has unveiled plans to increase its investments in the agricultural sector, specifically oil palm. Chief Executive Officer (CEO) of the firm, Christos Giannopoulos, disclosed this at a parley in Lagos.

The company’s agricultural venture is in partnership with Malaysian oil giant, Wilmar International Limited.

Previous investments

The firm has spent over N65 billion across the country. A N20 billion Oil Palm refinery was built in Lagos State. In addition, it had acquired the Calaro oil palm plantation previously owned by the Cross River State government. Other investments in the state include plantations at Ibad and Akamkpa.

Going forward

About N45 billion will be spent on the next phase, mostly on oil palm plantations, the Nation reported.

Others in the race

PZ’s competitors in the space are also not resting on their oars. Okomu Oil, in its 2017 annual report, stated its intention to plant about 2000 hectares of palm in 2018. The company has also placed orders for two oil palm mills, with an expected delivery date of 2020.

Presco has set a target of planting 4000 hectares of palm oil at its Sakponba plantation yearly.

Why the move?

Demand for crude palm oil far outstrips supply despite the increased capacity. A ban by the Central Bank of Nigeria (CBN) on the importation of palm oil led to an increase in local demand. Aside from the demand for domestic use, refined palm oil is also used in the production of soap and margarine.

Significant demand also exists outside the country, providing foreign exchange revenue for these firms.

The President Muhammadu Buhari administration has also taken agricultural self-sufficiency as a key agenda.

For PZ, its investments in the agricultural sector are a form of backward integration for some of its products and a buffer as some of its other segments struggle.

While its full-year 2017 profits of N3.3 billion was a massive improvement from 2016, it is one of the lowest it has made in the last 5 years.

PZ’s UK parent, this week, issued a profit warning (the second this year) in respect of its forecast profit, according to Reuters. It stated that it was witnessing pressure in price, volume, and margins across most of its Nigerian portfolio, despite the country’s recovery from recession in 2017.

2015/2016 was marked by difficulties in accessing foreign exchange due to a crude oil price slump, which led to a devaluation of the Naira. Growth, however, remains weak.

Recent GDP figures released by the National Bureau of Statistics (NBS) shows growth slowed for the first time since the recovery from the recession, dropping from 2.11% in the fourth quarter of 2017 to 1.95% in the first quarter of 2018.

PZ Cussons closed at N20.75 on Thursday’s trading session on the floor of the NSE. Year-to-date, the stock is up 0.73%.

Jaiz bank

Results for the 9 months ended February 2018 show revenue increased from N57.1 billion in 2017 to N63.2 billion in 2018.

Profit before tax dropped from N2.3 billion in 2017 to N1.9 billion in 2018. Profit after tax also slipped from N1.6 billion in 2017 to N1.3 billion in 2018.

The company markets several products including popular brands, Premier Soap, Robb menthol, Nunu Milk. Others include Mamador cooking oil and the Haier Thermocool range of electronics.

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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Corporate Press Releases

Applications across Nigeria, South Africa and Kenya now open for the 2021 Facebook Community Accelerator Program

The selected leaders will spend five months learning from experts, coaches and a customised curriculum so they can strengthen their community.

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Facebook

Today, Facebook is inviting community leaders from Nigeria, South Africa and Kenya to apply for the 2021 Facebook Community Accelerator Program—a program that offers participants training, mentorship and up to $50,000 USD in funds to invest in an initiative that extends their community’s positive impact.

The aim of the Community Accelerator is to help leaders of Facebook communities to harness the power of their community to turn ideas into action. The selected leaders will spend five months learning from experts, coaches and a customised curriculum so they can strengthen their community.

Lessons include community identity foundations, leading action-oriented programmes and sustainability. Participants will also receive early access to new Facebook products aimed at helping communities better manage and activate their members.

Plan an initiative

Participants will identify an important initiative that will create a positive impact on the broader world and develop a plan to mobilise their community around their goal. Initiatives will be shared with potential partners, mentors and a panel of judges for the chance to be awarded funding and receive public recognition.

Participants will then spend three months executing their initiatives. They will collaborate with advocates and leaders in the community space and work with the Facebook team to bring their ideas to life.

Says Kiran Yoliswa, Partner Management Lead, Middle East and Africa Community Partnerships at Facebook: “Facebook communities and their leaders are helping to resolve social challenges, sharing knowledge and information, while connecting with others that share their interests or passion for a cause. We’ve seen so many incredible communities from across South Africa, Kenya and Nigeria using our platform to drive change and provide support and encouragement for thousands of people, we’re excited to offer their Facebook Community leaders this program to help amplify their impact even more.”

How to apply

Hotflex

This program is open to communities that have a presence in Facebook Groups with leaders who are 18 years or older. Communities must have existed for over one year and must have a minimum size of 1,000 members. Applications open today, May 4 – 31, 2021.

The Community Accelerator is part of our Facebook Community Leadership Program, a global initiative that invests in people building communities. Learn more and apply here.

You can find out more about the 2020 Community Accelerator cohort and those who received additional funding here.

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Business News

NIN registration: 54 million Nigerians have now enrolled – Buhari

12 million Nigerians were enrolled into the National Identity Database in the past 6 months.

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Buhari approves free business name registration for 250,000 SMEs, IMF, tax, rate, Buhari’s Budget of Sustaining Growth & Job Creation (Full text), Nigeria generates N1.36 trillion from corporate tax, others as oil revenue drops , Nigeria-Algeria highway gets Buhari's approval , Earnings from rich petroleum resources not enough to cater for Nigeria – Buhari , Tax: Buhari appoints Muhammad Nami as FIRS boss, Subsidy economics

President Muhammadu Buhari disclosed that the FG has enrolled 54 million Nigerians into the National Identity Database, citing that 12 million were enrolled in the past 6 months alone and that the final aim of the scheme is to secure Nigeria’s security infrastructure.

President Buhari disclosed this in a statement on Thursday evening.

What the President said about NIN enrollment

“I am pleased with the success we are recording in the enrollment of persons into the National Identification Number (NIN) database. 54 million Nigerians have now enrolled; I am told over 12 million of these within the last six months. Our goal is total coverage.

The National Identification Number (NIN) is the foundational digital ID for the country. It will cover one of the weaknesses in our security structure. We will be able to easily identify all Nigerians, including the crooks in our midst.”

The President added that both legal residents and Nigerians are expected to obtain the NIN as it would be beneficial to government agencies to utilise resources efficiently.

In case you missed it

The Federal Government announced a further extension of the ongoing National Identification Number (NIN) registration and linkage with Subscriber Identity Module (SIM) exercises to a new deadline of June 30, 2021.

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