Business News
Shares of Flour millers gain a total N11.6 billion on NSE this week
The joint market capitalization of the three flour millers on NSE gained a total N11.6 billion value this week.
The Flour milling companies on NSE had a relatively bullish run this week, with the shares of two of these millers closing in green, despite the prevailing negative sentiment in the market which saw the NSE All-Share-Index depreciate by -1.74% W-o-W. (-4.03% ytd).
The joint market capitalization of the three flour millers –FlourMills, Honeywell and Northern Nig. Flour Mills – on NSE increased by a total N11.6 billion value this week.
The rise in the shares of Flour Mills of Nigeria Plc (:Flourmill) and Honeywell Flour Mills Plc (:Honyflour) saw the total market value of the millers’ gain an impressive N11.71 billion at the close of trade this week.
READ: Flour Mills and its diverse challenges
Despite the 10% gains in the shares of Flourmills and 6.96% increase in the share price of Honyflour, the gains of the millers this week was pressured down to the tune of N11.6 billion, as a result of the 10.6% dip in the shares of Northern Nigerian Flour Mills (:NNFM).
Data tracked on the NSE website revealed that the market capitalization of Flourmills and Honyflour increased by N11.1 billion and N634 million respectively. While NNFM lost a total N119 million to close the week 10.6% lower, relative to its market value last week.
READ: Nigeria’s border reopening will not impact profitability in 2021 – Flour Mills GMD
What you should know
- The NSE All-Share Index and Market Capitalization depreciated by 1.74% to close the week at 38,648.48 and N20.221 trillion respectively.
- While, the NSE Consumer Goods Index (CGI), an index that tracks the performance of key consumer goods companies as well as the performance of the flour millers, rose by 2.18% W-o-W, to close at 539.85 index points. (-5.84 ytd).
- Flour Mills made it to the list of best-performing stocks on NSE for the week, with a 10% price increase. While shares of Champion Breweries, Regency Assurance and Smart Products closed the week as the best-performing stocks on NSE.
- On the flip side, NNFM made the list of the top losers, on the stance of the 10.6% loss its shares printed this week.
Business
Lagos agricultural sector to generate $10 billion in the next 5 years
The agricultural sector in Lagos state is projected to generate as much as $10 billion within the next 5 years.
The Lagos State Governor, Mr Babajide Sanwo-Olu, has projected that the agricultural sector in the state could generate as much as $10 billion within the next 5 years.
This is as the governor noted that Lagos could no longer afford to rely exclusively on other states for its food, adding that it was time to unlock its immeasurable agricultural potential through the implementation of the 5-year roadmap.
This disclosure was made by the Governor at the formal launch of the state’s 5-year Agricultural and Food Systems Roadmap, on Thursday, adding that most of the investments would be private sector-driven while the government acts as the catalyst and enabler.
Governor Sanwo-Olu opined that the Roadmap would also lead to wealth generation, value creation, food security, the industrialisation of the agricultural sector and the entrenchment of inclusive socio-economic development of the state.
He said that the roadmap essentially focuses on 3 pillars, which are: growth of the upstream sector, growth of the midstream and downstream sectors as well as improvement of private sector participation.
What the Lagos State Governor is saying
Sanwo-Olu, in his words, said, “Our strategies for sustainable Agricultural Development shall focus on three pillars. First, we will grow the upstream sector through interventions by leveraging technologies that are capable of lowering the cost of production of value chains; Focus on growing the midstream and downstream sectors that are of value and lastly, we will improve on private sector participation by developing and initiating policies that will encourage more private investments in agriculture.”
The projection is that the total investment in the Agricultural Sector from the government, private sector, donor agencies and development partners will run into over $10 billion in the next five years. While we expect most of the investment to be private sector-driven, the government will continue to provide the needed infrastructure while the private sector will be encouraged to lead the key projects.’’
The governor pointed out that the state had already started the revamping of its Agricultural Land Holding Authority (ALHA) to support investment in agriculture, giving assurance that the coconut belt would also be strengthened with increased private sector involvement.
Sanwo-Olu listed some State’s landmark investments that will aid smooth delivery of the Roadmap to include the Lagos State Aquatic Centre of Excellence (LACE) that would boost fish production from 20% to 80%, the Imota Rice Mill, the Lagos Food Production Centre Avia, Igborosu-Badagry as well as other statewide agriculture-focused initiatives.
He said, “I am greatly encouraged by the interest already generated in the Five-Year Agricultural Roadmap and I hope it will be sustained and backed with concrete action on the part of our development partners and the international community. I assure you that the Lagos State Government is putting in place deliberate incentives to make your investment safe, secure and profitable.’’
Sanwo-Olu, therefore, urged potential and established stakeholders in the agricultural sector to partner with the state in order to transform the agricultural sector for food security, wealth generation, poverty eradication, economic diversification, rapid industrialisation and accelerated socio-economic growth.
Bottom line
This is a very laudable initiative from the Lagos State Government especially at a time the country is looking at diversifying its economy. The successful implementation of this programme with the expected benefits from the value chain will contribute significantly to the economic development of the state and the country in general.
The investment in the transformation of agriculture to agribusiness is one way of achieving the dream of attaining self-sufficiency in food production and creating more wealth.
Business News
NNPC, SEEPCO sign gas development agreement for domestic market
The execution of the deal is to help reduce gas flaring in the country and a show of NNPC’s commitment to facilitating the country’s transformation into a gas-powered economy.
