DAILY TRUST
122
Monday, April 4, 2011
Business/SMES
Investors' confidence swells Dangote stocks to N2.16 trillion From Chris Agabi, lagos AS the confidence level of investors in the Nigerian Stock Exchange . continues to improve, investors swoop on Dangote Groups' stocks listed on the floor of the Nigerian~ Stock Exchange (NSE), making Dangote close the first quarter with N2.16 trillion. The group's stocks listed on the NSE are that of Dangote Cement Pic, Dangote Sugar Refmery Pic, Dangote Flour Mills Pic and National Salt Company of Nigeria Pic (NASCON). The shares of Dangote Cement Pic, Dangote Sugar Refmery Pic, Oangote Flour Mills Pic and National Salt Company of Nigeria Pic (NASCON) lifted their value to N2.163 trillion, up from N2.1 trillion at end of201O. The NSE All-Share Index, which is ti,e benclunark to measure tile performance of ti,e market, recorded a negative growth of 0.6 per cent in QI of 2011 following tile bearish run that enveloped the market due to elections fever among
DANGOTE other factors. In performance, the Dangote Group accounted for 27.4 per cent of the total value of the equities listed on tl,e NSE as at the end ofQ!. The value of the shares of the four companies recently jumped by N91 billion as investors reacted pOSitively to the news that Aliko Dangote, who is tl,e preSident of Dangote Group, is now tl,e richest man in Africa. A brealedown of the market capitalisation ·of the companies showed that Dangote Cement accounted for N!.921 trillion.
Dangote Sugar followed with NI50 billion, while Dangote Flour Mills Pic and NASCON ended the quarter at N78 billion and NI4 billion respectively. . Forbes magazine in its annual world's billionaires ranking said Dangote has a net worth of $13.8 _~mion to emerge the richest man in AfriCa for the_first time. In an apparenfmove-to.hen_eflt from the fortunes of the business '. mogul, investors swooped on· the shares of the four companies. Market watchets· say that as the neW quarter beginS, shares of the companies would attract more patronage follOWing ·expectation of dividends from the companies. The companies are known for their robust dividend policy, paying a total of N60 billion for the year ended December 31, 2009: Going by the recent words of Dangote, shareholders in the companies have a very bright future. The President of the Dangote Group, Aliko Dangote recently said· that the companies in the Group will be worth $60 billion by 2015.
.He said: "We are working towards. making Dangote the biggest conglomerate in Africa. Now that we are training youths in the Dangote Academy, we are targeting that by 2015, Dangote will have $60 billion market capitalisation. When you look at the equivalent, ti,e total reserve of Nigeria is about $35 By Nasir Imam billion, by the next four years. Our own market capitalisation should be IN order to ensure increased somewheI:e around twice the reserve sustainable agricu ltural produc~ of Nigeria; arid that meanS in the cement side, by this time 2014,we-· -tiona!ld productivity, the Federal should be producing more than 50 Capital Territory~Admi.!listration (FCTA) has subsidized ferfilizer million metric tonnes in more than and other farm inputs by 50 per~ 14 countries excluding Nigeria. cent for 20ll farming season. And in sugar, we are trying to do the Subsequently, the FCT same thing. The same thing we did Administ ratio n has commenced in cement, we are going to replicate the implementation of the Com~ in sugar~ mercial Agriculture Credit DangoteGroup, in 2010 enrimed Scheme, CACS, of the Federal shareholders with N60.2Ibn as dividends in fOur of her company Government where the total sum ofN200 billion was made avail listed on the floor of the Nigerian able for FCT and other states to Stock Exmange (NSE). The investors draw NI billion each to lend to received a total of N60.21 billion farmers' cooperatives and other as dividend even as many quoted areas of agricultural interests. companies could not paydividend due The minister of state for FCT, to the harsh ope rating environment. Navy Capt. Omoniyi Olubolade announced this yesterday during the official flag off of sales of fer~ tilizers and other farm inputs in Abaji Area Council. The minister who was repre~ re~opened in 2010 and it is expected sen ted by the Special Assistant to to continue to benefit from the con~ the minister on Environment and tinue upsurge in the world crude oil Water, Engr. Ayo Adeyemi also demand whim has kept prices athigh revealed that the FCT Adminis~ levels coupled with the.relative stabil~ !ration has received 9000 metric ity of exchange rate of naira against tons of assorted feterlizers at subdollar whim is expected to continue sidized rate of 25 percent from in201!. the Federal Ministry of AgriThe.non~oil sector is not left out, culture and Rural Development, as it is expected to be a major driver of adding that the FCT Administra~ theeconomyin2011 when compared tion has further subsidized this with the level attain in 2010. commodity by 50 percent. The impressive growili expected In view of this development, in this sector 2011 would be largely according to the minister, NPK driven by improved activities in the and UREA will now cost N2,100 wholesale and retail trade, finance each while SSP goes for N 1,650, and insurance, telecommunications. stressing that a com m ittee to building and construction. ensure proper implementation In the NBS economy outiook, the of the scheme has been inaugu~ manufacturing sector is expected to rated and over 433 loan applica~ benefit from .increased credit deliv~ tions have been received. ery by banks in 20 II arising from In his remarks, the Secretary the activities of AMCON. Further inlprovement iiI infrastructure espe~ in charge of. Agriculture and Rural Development Secretar~ cially power supply is expected to iat in the FCT Administration, . boost manufacturing activities. Mallam Hamza Buwai observed that 80 percent of the food pro~ duced in ~ the count ry comes from rural farmers who are fac~ ing many challenges, ranging from lack of credit facilities to including soil degradation, desert that of inadequate quantities of encroachment as well as other numerous .problems, saying also · necessary agricultural inputs as even with these problems popula- · well as adverse weather condi~ tion in the country is growing, as tions. However, in recognition of such the university perceived dry land agriculture as a challenge to ·the numero.us challenges faced . by rural farmers, the Secretary scholars. said that the FCT Administra~ . He said the livelmood of tion has continued to ensure majority ill the country especially the rural dwellers depend largely . timely provision of critical farm on farmmg and breeding of live-- inputs to farmers at subsidized prices to enable them increase stock, saying Bayero Uriiversity their productive capacity and by will embarkon building capacity implication availability of more of farmers groups and other stalee~ food to feed the teeming popula/:Iolders to be able to face mallenges in <!ry lanil.agrkulture. . tion of the· territory.
GDP to grow by 7.98% in 2011 -NBS By OIayemi R. lbrahim THE economy when measured by the Real Gross Domestic Product (GOP) is expected to grow by 7.98% in 20ll as against 7.85% recorded in year 20 I 0, the National BureauofSta ~ tistics (NBS) has said The 0.13 percent increase in real GDP growth observed in projected figure for 20 II would be accounted for by the increase in the activities of the wholesale and Retail Trade, building and construction, finance and insurance, o il and gas and tel~
ecommunication sector of the economy. _ The menial GDP for year 20ll was projected at N33,994, 612.83 million as against the N29, 108,024.45 million recorded in 2010 thus indicating increase. The two major out~ put groups of the economy, thatis oil and non~oil sector are. expected to witness an increase in output in 20 11. The non oil sector would be
driven by growili in the activities of by banks. NBS said if all these areas the wholesale and retail trade, tele~ delivered as expected there will be communication, finance and insur ~ increase in tl,e growili of the econance and building and construction omy. sector. The oil sector is expected to NBS expects the Agricultural remain stable as a result ofthe contin- Sector to grow at 5.68 percent whim uos peace in the Niger Delta region is lower than 5.74 percent in the The year 201O·recorded increase preceding year, the reason for the in the economy growili from the first expected decline was given as a slow~ to the last quarter according to NBS down in the growili resulting from in its economy outlook for 2010. effect of flooding whim occurred in In the first quarter the growth was 201 Oon the availability oHarms seed7.36percent and it rose t07.69 per~ lings and area to be cultivated and cent in the second quarter. The third also expected harsh climatic condiquarter 7.86 percent while the last tions in 20 II arising from the global warming most countries are already quarter was 8.29 percent In the outlook for 20ll, vari ~ experiencing. ous sectors are expected to ,vitness The oil sector is projected to great increase and be stable. Some of result in a growili rate, in real term of the activities projected fOr increase 3.40 percent for the year 2011 cominclud~ crude oil prodUction, stability pared with the 4.56 percent recorded of the naira exmange rate, adequate in 2010. The sector whim recover rainfall across the states, increased from the unprecedented levels of Wholesale and retail trade activities disruptions due to niilitancy, vandalacross the country, improved power isailion, and facility shutdown due to supply and increased credit delivery insecurity oflives and properties was
BUKto establish Centre for Dry Land Agriculture Foundation was drawing proposal with scholars from sub Sal,aran Africa to malee it a reality. BAYERO University, K3.no is set Professor Rasheed represented to establish a Center for Dry Land by the Vice Chancellor Administra~ Agricultural Production for the tion, Bayero University, Kana, Pro~ growth of farming and aninlal rear~ fessor Abdurrasheed Garba said ing in the country. This would be Nigeria needs Dry Land agriculture done with the assistance of one mil~ ·to be able to maximize agricultural lion dollars from McArthur Foun~ productivity, saying even without dation the grant the university has resolved This was disclosed by the Vice to established sum a center. chancellor of the university, Profes~ Speaking, Dean of the universor Abubalcar Rasheed, at an inter~ sity's faculty of agriCulture, Dr B. M national workshop held at Marn- Auwalu said scholars from universi ~ bayya House. He said the univer ~ ties across the world are in attendsity in collaboration with McAthur ance at the workshop, ·a nd they
From Halima Musa, Kana
have vast experiences in Dry Land agriculture, saying with inputs from them and what was on ground in the university would established a reputable center to ass ist farrning and rearing oflivestock. Dr Auwalu said there were many experts in the world, especially from Arab countries, where hot weather is tense, as such the university would establish the center and run first degree and Msc to facilitate development ofagntlll~ ture as rainfall is no longer reliable in Nigeria. He said Nigeria is faCing so many enviii:irl!TIental h azards,
FCTA subsidizes fertilizer, farm inputs by
50%