Dangote

2022: year we recorded highest cement revenue in history — Dangote

by with No Comment Business News

Chairman of Dangote Cement Plc, Aliko Dangote has said that the company has highest revenue in its history in 2022.

The richest man in Africa stated this at the 14th Annual General Meeting, AGM, of the company in Lagos.

Analyzing the 2022 year-end result, Dangote explained that the company achieved its highest revenue and earnings before interest, taxes, depreciation, and amortization (EBITDA) in history at ₦1,618.3 billion and ₦708.2 billion, respectively.

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He added that the cement coy also recorded revenue and EBITDA growth of 17.0 per cent and 3.5 per cent from the prior year respectively, adding that the fest was achieved under unprecedented inflationary pressure, but it also achieved a profit after tax of ₦382.3 billion, up 4.9 per cent compared to 2021.”

The exceptional EBITDA, according to him, was supported by its numerous cost containment measures, substituting higher-cost fuel for cheaper alternative fuel products.

“These efforts have helped us reduce our cost base and enhanced our flexibility, enabling the Company to respond more effectively to changes in the market,” he said.

The Chairman also guaranteed shareholders and other stakeholders of the company’s management’s resolve to keep the company profitable by leveraging on strategic innovations for the continuous growth of their investments.

Dangote said the prospects for the cement company remain bright as the management will continue to innovate on quality products delivery to millions of its customers across Africa while touching the lives of its host communities.

He stated: “We will continue to make sure that we keep our shareholders happy, not only the shareholders but all our other stakeholders… Our strategy remains steadfast, focused on organic growth in Nigeria and Pan-Africa while ensuring that Africa’s regional integration becomes a reality. We will continue to contribute to improving regional trade within Africa by building plants across West and Central Africa, guided by our vision of making the region cement and clinker self-sufficient. In addition, we aim to deliver higher returns and value to our shareholders.”

The Chairman pointed out that despite the challenging macroeconomic environment in 2022, the company still made great strides, performed admirably, and remains Africa’s largest and leading cement producer.

Dangote explained that in the face of unexpected challenges in 2022, the company implemented robust cost reduction strategies to manage the inflationary environment, and thus enhanced its competitiveness while maintaining high levels of product quality and customer service delivery.

According to him: “In addition, we achieved giant strides in transitioning to cleaner energy, with our cost containment initiative propelling the use of Alternative Fuel (AF) to replace more expensive fossil fuels, such as coal and gas. We also increased the use of Compressed Natural Gas (CNG) for our trucks due to the rising diesel cost environment.

The Company Chairman explained that: “Over the last twelve years, volumes have grown by a double-digit compound annual growth rate of 11.2 per cent. Similarly, EBITDA has grown at a compound annual growth rate of 16.3 per cent, over the same period, implying a five-fold increase and revealing a true growth story.

“Accordingly, we closed the year with a profit after tax of ₦382.3 billion and an Earning per Share (EPS) of ₦22.27. Despite these accomplishments, we are not resting on our laurels. We recognise that the business environment remains volatile, so we will continue to evolve with the changing times while embracing technological advancement,” he added.

Speaking on the Company’s Annual Reports, Mrs. Bisi Bakare, Chairman of the Pragmatic Shareholders Association, commended the management of Dangote Cement for its doggedness during the year under review for still being able to exceed the shareholders’ expectation in view of the inclement economic weather under which companies operated in the country.

She explained that the shareholders were happy for the returns, pointing out that it only means that the company was living up to its billing as the largest in Sub-Saharan Africa, adding that if not for the resilience of the management, the company would not be able to post such an impressive performance in 2022.

Mrs. Bakare alluded to the successful listing of the N300 billion series bond by the Company, saying the company succeeded largely due to the confidence reposed in the company and its management by the investing public. “It is not all companies that could record such a feat given the huge amount involved and the biting economic situation”, she stated.

Godwin-Emefiele

CBN plans to convert Nigerians’ dormant accounts into Treasury Bills

by with No Comment Business News

The Central Bank of Nigeria (CBN) has released an exposure draft of guidelines for the management of dormant accounts, unclaimed balances, and other financial assets in banks and other financial institutions in Nigeria.

The draft guidelines are being issued in response to requests from banks and other stakeholders for further clarification on the procedures for managing dormant and inactive accounts.

The guidelines mandate that the CBN shall open and maintain an account called “Unclaimed Balances Trust Fund Pool Account” to warehouse unclaimed balances in eligible accounts.

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The funds in the account will be invested in Nigerian Treasury Bills (NTBs) and other securities as approved by the “Unclaimed Balances Management Committee.”

Accounts affected

The scope of the guidelines covers all financial institutions (FI) under the purview of the Central Bank of Nigeria (CBN) and applies to eligible accounts that have been dormant for a period of 10 years and beyond.

Eligible dormant accounts/unclaimed balances and other financial assets include various types of deposits, domiciliary accounts, prepaid card accounts, and wallets, proceeds of uncleared and unpresented financial instruments, unclaimed salaries and wages, and other similar assets.

However, the guidelines specify that certain classes of dormant accounts/financial assets are exempted, including government-owned accounts, accounts that are subject to litigation, accounts under investigation by a regulatory authority or law enforcement agency, and encumbered accounts.

Why is this necessary?

Before the release of the draft guidelines by the CBN, the treatment of dormant accounts varied across financial institutions in Nigeria.

However, in general, dormant accounts were typically left untouched and unmonitored by financial institutions.

This lack of monitoring of dormant accounts often resulted in unclaimed balances, which can create challenges for the stability of the financial system. Unclaimed balances can also cause financial losses for customers who may not be aware that they have balances in dormant accounts.

With the draft guidelines on the management of dormant accounts, unclaimed balances, and other financial assets in banks and other financial institutions in Nigeria, the CBN seeks to address the challenges associated with dormant accounts and unclaimed balances in the Nigerian financial system.

Backstory

Recall in 2021, the Finance Act 2020 signed into law by President Muhammadu Buhari provides that the federal government can borrow from the unclaimed dividends and dormant account balances under the Unclaimed Funds Trust Fund.

The funds are made available as a special debt owed by the federal government to the respective shareholders and the dormant bank account holders.

Recent data from NIBBS also indicates Nigeria has about 57.9 million inactive bank accounts while about 133.5 million were active.

Other details of the guideline

To ensure compliance with the guidelines, the CBN has also established a management committee to oversee the operation of the UBTF Pool Account, issue regulations, guidelines, and circulars on the administration of dormant/unclaimed balances and financial assets in FIs, and monitor compliance with the guidelines.

Financial institutions (FIs) are also required to take certain actions with respect to dormant and inactive accounts.

For instance, they shall monitor inactive accounts and notify the customers, as well as protect such accounts from unauthorized usage.

They are also expected to establish procedures that will ensure continuous contact with customers to reduce the incidence of inactive/dormant accounts.

The guidelines provide a procedure for the reclaim of unclaimed balances stating that beneficial owners can access the list of unclaimed balances transferred to CBN on the websites of FIs/CBN and/or newspaper publications.

The guidelines also require the CBN to publish annually on its website, the list of owners of unclaimed balances that have been transferred to the UBTF Pool Account. Additionally, the CBN shall publish on its website, the procedure for reclaim of warehoused funds and other financial assets.

The guideline is still a draft

It is important to note that the guidelines are still in the exposure draft stage and are subject to changes before the final version is released. The CBN has invited comments from stakeholders on the draft guidelines. The final guidelines will be issued by the CBN after considering the comments received.

“The guidelines are expected to provide a framework for the management of dormant and inactive accounts, reduce the incidence of unclaimed balances in the Nigerian financial system, and promote greater transparency and accountability,” the draft guidelines state.

Overall, the CBN opines the guidelines are expected to benefit both financial institutions and their customers while also contributing to the development of the Nigerian financial sector.

The CBN’s decision to invest the funds in Nigerian Treasury Bills is expected to provide an additional source of funds to the government. This is also a huge step in implementing the provisions of the finance act.

Nairametrics

9ja

Nigeria misses out in 2023 top 10 African countries with highest cost of living

by with No Comment Business News

Business Insider Africa presents the top 10 African countries with the highest cost of living.

This list is courtesy of Numbeo, one of the world’s most profound data and research platforms.

To collect data, Numbeo relies on user inputs and manually collected data from authoritative sources (websites of supermarkets, taxi company websites, governmental institutions, newspaper articles, and others.)

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The high cost of living is a major concern for many individuals and families around the world. It is an issue that affects people of all income levels and can significantly impact their quality of life. Several factors contribute to the high cost of living in a country, including economic policies, inflation, and the cost of essential goods and services.

Lifestyle Top 15 African business leaders in the Forbes Africa 30 under 30 classes of 2023

One of the primary reasons for the high cost of living in a country is the state of its economy. Countries with a strong economy tend to have a higher cost of living due to the high demand for goods and services. This is because when people have more money to spend, they are willing to pay more for the things they need and want.

Inflation is another factor that contributes to the high cost of living. Inflation occurs when the general price level of goods and services increases over time. This means that people have to spend more money to buy the same goods and services they could buy for less in the past. Inflation can be caused by various factors, such as increases in the money supply, changes in government policies, or external factors like global supply chain disruptions.

The high cost of living can have a significant impact on individuals and families, particularly those on a fixed income or low-income earners. It can lead to financial hardship, making it difficult to pay bills, save for the future, or even afford necessities. It can also limit education, healthcare, and other essential service opportunities.

When deciding on a resident country, it is important to know the cost of living within the said economy, as a result, Numbeo, one of the world’s most profound data and research platforms, has created a methodology to compute data that determines the countries with the highest cost of living.

This article includes the 10 African countries with the highest cost of living. The overall index Numbeo comes up with is determined by the following factors, Cost of Living Index (Excluding Rent) which is a relative indicator of consumer goods prices, including groceries, restaurants, transportation, and utilities, rent index, groceries index, restaurants index, Cost of Living Plus Rent Index which is an estimation of consumer goods prices including rent, and local purchasing power.

To collect data, Numbeo relies on user inputs and manually collected data from authoritative sources (websites of supermarkets, taxi company websites, governmental institutions, and newspaper articles, other surveys, etc.). Manually collected data from established sources are entered twice per year. A more comprehensive breakdown of the methodology is available on Numbeo’s website.

Below are the 10 African countries with the highest cost of living in 2023 according to Numbeo.