The Debt Management Office has announced the allotment of ₦116.98 billion to successful bidders during the FG’s January 2019 bonds auction. In a statement published on the agency’s website, although the initial value of the bonds was ₦150 billion, over ₦197 billion worth of subscriptions were received from investors; indicating 131% over-subscription rate. The agency said it acted in accordance with its policy of keeping the FG’s borrowing costs at prudent levels” by choosing to allot a total of ₦116.98 billion, despite the over-subscription.
Flour Mills of Nigeria suffered a 40.40 percent decline in its profit for the nine months ended December 31, 2018. In its financial statement, the firm posted group operating profit of ₦27.3 billion in the nine months, down 38% from ₦44.2 billion in the same period the previous year. Group revenue fell to ₦400.6 billion, down 6% from ₦427.5 billion a year ago. In the third quarter ended Dec. 31, group operating profit fell 45% to N8.1 billion from ₦14.7 billion, but revenues increased to N130.9 billion from naira 129.1 billion. The flour miller declared a post-tax profit of ₦7.7 billion compared with the ₦12 billion achieved in the first nine months of 2017. This was as the pre-tax profit depreciated by 42.17 percent to ₦11.3 billion from ₦19.5 billion. The cost of sales, according to the company, was managed this time around, closing at ₦354.1 billion in contrast to ₦371.5 billion a year earlier, while the finance costs reduced to ₦6.6 billion from N25.2 billion as a result of the settlement of overdraft facilities and replacement of high interest yielding loans with favourable ones.
Coca Cola has fully acquired a consumer goods firm in Nigeria, Chi Limited, three years after the soft drink manufacturing company first announced a minority investment in Chi. In 2016, Coca Cola Company and Tropical General Investments Group, the holding company of Chi Limited, had announced a binding agreement which saw Coca-Cola Company acquire an initial minority equity shareholding in Chi Limited with plans to increase ownership to 100 percent within three years, subject to regulatory approvals. President of its West African unit Peter Njojo had in September last year, stated that the acquisition would be completed in the first quarter of 2019. Following the acquisition, Coca Cola may be considering plans to expand sales of the Chi brand, across Africa.
The FG has initiated a 10-year National Livestock Transformation Plan as part of its effort to address clashes between herdsmen and farmers. The plan is expected to cost about ₦91 billion, while a profit of ₦2 trillion is expected over the 10-year period. The first phase of the plan will take care of grazing reserves in seven pilot states: Adamawa, Benue, Kaduna, Nasarawa, Plateau, Taraba, and Zamfara, with four ranches (small, intermediate, medium and large) in each grazing reserve. Ranchers and rearers will be encouraged to bring their cattle to a fattening site wherein the cattle will be fed so as to boost average weight from 200-250 kg to 450-500 kg. If done, livestock farmers are expected to recoup ₦350,000 per cow at the selling rate of ₦900 per kg.