The New Nigeria Development Company (NNDC) on Friday said it recorded a 17 per cent decline in income in the 2017 financial year which ended March 31, 2018.
The Chairman of NNDC, Bashir Dalhatu, stated this while addressing directors and Secretaries to the Governments of the 19 Northern states at the company’s Annual General Meeting (AGM) on Friday in Kaduna.
Mr Dalhatu, a former Minister of Power and Steel, said the NNDC recorded N747.11 million in 2017 as against the N898.56 million in the previous year representing, 17 per cent decline in income.
“The challenging business environment under which the company operated during the period impacted on the performance.
“The company recorded an operating income of 747.11 million against 898.56 million in the previous year representing 17 per cent decrease.
“The decrease was attributed to lower dividend income on investments. Also, operating profit before tax of 138.25 million was achieved against 167.79 million in the previous year representing 18 per cent decrease.
“Similarly, the company’s net asset for the year was 9.19 billion against 9.41 billion in the corresponding year representing 2.2 per cent decrease,” the chairman said.
He said the decrease was due to lower dividend income on investments, “as the economy faced challenges ranging from acute scarcity of foreign exchange, high inflation, dwindling revenues to government and decline in Gross Domestic Product (GDP) among others”.
The NNDC chairman said this occurred due to the economic recession, the country experienced in 2016 that led to rise in general cost of goods and services impacted on purchasing power across all the sectors.
“Thus, the overall impact on operations was a drop in revenue and increase in expenses.
“Despite the above challenges, the company strives to attain a modest performance during the period and has remained resolute and focused in achieving its set targets,” he said.
He said NNDC had continued to support the development of quality manpower for the North and the country in general.
“This, it is doing through earmarking resources towards promoting the NNDC Young Professional Development Trust (NNDC/YPDT), the NNDC/ICAN Students Special Project (SSP) and the Musa Bello Learning Resource Centre (MBLRC) in the fields of accounting, Stock Banking, Insurance and Information Technology.
“Since the inception of the schemes, some 10 years ago, a total of 820 professionals had been produced,” he noted.
According to him, the development of a medium density housing estate, which the company started in the second half of 2015, is almost completed.
Mr Dalhatu said that the company had so far constructed 78 units of houses in different parts of Kaduna city for sale or rent by the public.
“The economy has now moved out of recession, we are optimistic about the next financial year as it is anticipated that the various policies of the government would start having positive impact on the business environment.
“Furthermore, we shall continue to pursue vigorously the various initiatives that the company has put in motion, while taking advantage of new business opportunities with a view to improving the company’s earnings.”
The Chairman commended the board members, the management and staff of the company for their unflinching support in spite of the economic challenges.
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