NEWS YOU CAN TRUST I **MONDAY 16 APRIL 2018 I VOL. 15, NO 33 I N300 @ g Cement makers’ profits drop to 5-year low as tax credits expire BALA AUGIE A curious thing is happening to Nigerian Cement makers. While revenues are surging, profits are dropping, signalling falling margins and higher tax expenses. The firms analysed by BusinessDay are Dangote Cement Plc, Cement Company of Northern Nigeria (CCNN) Plc and Lafarge Africa Plc, which control about 90 percent of the Nigerian cement market. Cement maker’s revenues surged to a five year high in 2017, however profits (net income) are down from the highs of 2013 largely as a result of a dominant player in the sector (Lafarge Africa) recording a loss, and expiration of pioneer tax credits. Lafarge Africa profits were juiced in 2016 by an income tax credit of N39.7 billion, while Dangote Cement received tax credits of N5.69 billion the same year (2016) and N10.43 billion in tax credits for 2013. The cumulative combined sales of the three largest producers of the building material hit N1.12 trillion in December 2017 as against N607.56 billion recorded in 2013 as they leveraged a hike in the price of products and Nigeria’s infrastructure deficit. However, combined profits for the firms fell to an all-time low of N172.87 billion as at December 2017 from a profit of N263.71 billion recorded in 2013. Combined profits for the 3 firms was N196.08 billion in 2014, N209.52 billion in 2015 and N204.77 billion in 2016. Investors and shareholders will be bemused at industry performance in spite of the fact that the market is largely an oligopoly. Dangote Cement with a mar- Continues on page 4 L-R Adaora Umeoji, deputy managing director; Peter Amangbo, GMD/CEO; Jim Ovia, chairman, and Ebenezer Onyeagwu, deputy managing director, all of Zenith Bank plc, at the 27th annual general meeting of the bank in Abuja, at the weekend. Adeosun reassigns portfolios in SEC, Mary Uduk takes over as acting DG ... demands explanation from SEC on communications with NSE on Oando ONYINYE NWACHUKWU, Abuja The Minister of Finance, Kemi Adeosun, on Friday approved the reassignment of portfolios in the Securities and Exchange Commission (SEC). Mary Uduk will assume the Continues on page 46 Lagos-Badagry 2019 rail completion doubtful as hoodlums take over tracks MIKE OCHONMA There are very strong indications that the 2019 delivery timeline for the on-going road expansion that provides for the rail mass transit Continues on page 46 Inside I&E window success snaps Nigeria’s dependence on CBN dollar supply P. A2
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