Aliko Dangote, chairman of Dangote Industries Limited, says the devaluation of naira created the biggest mess for the company in 2023.
Dangote spoke on Tuesday during the annual general meeting
of Dangote Sugar Refinery Plc.
According to Dangote, the company is putting in efforts to
ensure it pays dividends this year.
He said a lot of companies, especially in food and beverages
businesses, were also affected and will be unable to pay dividends.
“We are doing
whatever it takes to make sure that at the end of the day, we will be paying
dividends because if you look at our dividends last year, it was almost 50
percent more so we will try and get out of the mess,” Dangote said.
“The biggest mess created was actually the devaluation of
the naira from N460 to N1,400.
“You can see almost 97 percent of the companies, especially
in food and beverages businesses, none of them will pay dividends this year for
sure but, we will try and get out of it as soon as possible.
“We want to see that
at the end of the day, no matter how small, we will be able to pay some
dividends, especially if there is a rebound of the naira.”
‘WE’LL REAPPLY FOR
MERGER OF DANGOTE SUGAR WITH NASCON’
Speaking on the suspension of the planned merger of Dangote
Sugar Refinery with Nascon Allied Industries Plc and Dangote Rice Limited, the
chairman said it was put on hold because the Securities and Exchange Commission
(SEC) wanted the rice factory to begin.
Dangote said the rice factory in Jigawa is expected to be
commissioned soon, adding that Dangote Sugar will reapply for the merger when
the time is right.
On April 19, Nascon announced the suspension of its proposed
merger with Dangote Sugar.
Nascon said the merger was not completed due to the current
non-operational status of Dangote Rice.
DANGOTE SUGAR TO END
SUGAR IMPORTATION IN 2028
Dangote said the company’s sugar master plan will enable the
producer to sell only locally produced sugar in the next four years.
According to the chairman, the implementation of the
backward integration policy will give the company the best future in terms of
stability and prevent issues relating to exchange rate losses.
“The sugar master plan we are now taking is very, very
serious,” he said.
“But to say the
least, the industry as a whole, did not really push as we are supposed to push
in terms of the backward integration.
“We have done a lot, but we also have our fears because if
there is no proper implementation, we do not want to go and sink a lot of your
money and we end up losing money because if government is not following or
making sure that everybody behaves, then we will not be able to make money. But
right now, I think they have called us.
“We have sat down and I can assure you on our own, we think
the best future of this company is through the backward integration.
“Because backward integration will actually give you much
more forfeit and stability and it will erase all these exchange rate losses.
“So, by the grace of
God, in the next four years maximum, our company should be producing what we
are selling currently, all domestic, 100 percent domestic.”
However, Dangote said if any sugar is imported by the
company, it will only be to complement what it is producing.
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Sorry sir… you are wrong… the biggest mess of 2023 was allowing a stolen mandate in the presidential election. Wrong or stolen mandate breeds wrong policies with dire consequences such as what we now face. Be guided, sir
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