Business News
2019 Q1: CCNN reports revenue growth of 213% after merger
Cement Company of Northern Nigeria Plc (CCNN), has recorded a laudable financial result in the first quarter period ended March 31, 2019.
Following its merger with Kalambaina Cement Company Limited, the Cement Company of Northern Nigeria Plc (CCNN), has recorded a laudable financial result in the first quarter period ended March 31, 2019.
Revenue for the period: CCNN‘s revenue jumped by 213 percent to N16.886 billion in Q1 2019, up from N5.394 billion in the corresponding period last year.
Gross Profit: The cement company’s gross profit increased by 239 percent to N7.689 billion in Q1 2019, up from N2.263 billion in Q1 2018
Profit before and after tax: More so, CCNN recorded a surge of 255 percent in profit before tax (PBT) to N5.348 billion in 2019, compared with N1.504 billion in 2018, while profit after tax followed same growth trajectory, rising by 235 per cent to N3.636 billion, from N1.083 billion in 2018.
Nairametrics had reported that CCNN received formal approval of the Securities and Exchange Commission (SEC) to merge with Kalambaina Cement Company Limited.
The development follows CCNN’s announcement regarding the merger. Accordingly, the Scheme of merger, the merger took effect from Monday, December 24, 2018.
The merger is expected to see the company’s cement production enlarged at a capacity of 2 million metric tonnes per annum.
About CCNN: The company manufactures and sells cement in Nigeria. Cement manufactured by CCNN are sold with the Sokoto Cement brand name. It primarily markets in Sokoto, Kebbi, Zamfara, Katsina, Kano, and Kaduna states. The company was incorporated in 1962 and is headquartered in Sokoto State, Nigeria.
CCNN was established with an initial installed capacity of 100,000 metric tonnes per annum at the Kalambaina plant. The need to meet the increasing demand for cement necessitated an expansion of the plant with the commissioning of the second line with an installed capacity of 500,000 tons per annum in 1985. Thereafter, in 1986, the first line was shut down in 1986, leaving the plant with a rated output of 500,000 metric tonnes per annum.
CCNN is a subsidiary of BUA International Limited. The company is currently trading N15.30 on the floor of the Nigerian Stock Exchange (NSE).
Business News
FG to support MSME contribution to economy to boost development – Minister
The Minister said that the FG has schemes aimed at improving the post-pandemic climate for SMEs in Nigeria.
The Federal Government declared that it is working with stakeholders to improve MSME participation in the economy through improving the business climate which will create jobs.
This was disclosed by Amb. Mariam Katagum, Minister of State for Industry, Trade and Investment, at the 7th EMPRETEC Global Summit, on Tuesday, themed “The Role of Entrepreneurship, MSME and EMPRETEC in post-COVID-19 Resurgence.”
The Minister stated that the MSME sector of the economy is the growth engine of any economy which contributes to its development, job creation and export, amongst others.
“An MSMEs survey indicates that Nigeria’s SMEs contribute nearly 50 percent of the country’s GDP and account for over 80 percent of employment. No doubt, the sector is pivotal to Nigeria’s growth, including reducing poverty and unemployment levels.
It has, therefore, become more apparent that supporting entrepreneurs and small businesses by creating opportunities for MSMEs to thrive is essential for increasing productivity, creating jobs, and boosting our economy.
This is why the Government is working with stakeholders across all sectors, to create the enabling environment for entrepreneurs and MSMEs to ensure that they grow now and into the future,” she stated.
On economic sustainability
The Minister said that the FG has schemes aimed at improving the post-pandemic climate for SMEs in Nigeria. She also disclosed that the FG launched the National Policy on Micro, Small and Medium Enterprises (MSMEs), a framework for the resolution of the challenges faced by the sector.
The programmes launched by the FG includes the Survival Fund and Guaranteed Off-take Schemes, operated by a Steering Committee in the Ministry of Industry, Trade and Investment.
“The Government of Nigeria had, prior to the outbreak of COVID-19, initiated the MSMEs Clinics scheme as a strategy, aimed at providing support for the MSMEs in the country.
At the clinics, operators in the MSMEs space are engaged by regulators and business advisory experts, on issues ranging from entrepreneurship, skill development, finance, quality & standards, and on how to facilitate and grow their businesses and enterprises,” she added.
What you should know
Nigeria’s unemployment rate as of the end of 2020 rose to 33.3% from 27.1% recorded as of Q2 2020, indicating that about 23,187,389 (23.2 million) Nigerians remain unemployed.
A combination of both the unemployment and underemployment rate for the reference period gave a figure of 56.1%. This means that 33.3% of the labour force in Nigeria or 23,187,389 persons either did nothing or worked for less than 20 hours a week, making them unemployed by our definition in Nigeria.
Business News
Amazon to open its first African office in South Africa
Amazon already launched its data centres for AWS in Cape Town but its eCommerce services had until now, not been available in Africa,
