The Chairman of the Northern Nigeria Flour Mills, Alhaji Aminu Alhassan Dantata, has expressed regret over the recession in the country, which led to a decline in external reserves.
Dantata, while addressing shareholders of the company at its 45th annual general meeting, which held at Bristol Guest Palace, Kano, on Thursday, noted that the company operated under severe dwindling revenue, high inflation and a decline in the nation’s gross domestic product.
This, according to him, resulted in the company’s failure to record profit before tax and the non-declaration of dividends for the third consecutive year.
The NNFM chairman said, “In view of the company’s performance, the board regrets to inform its valuable shareholders and stakeholders that the board will not recommend the declaration of any dividend for the year ended, which is under review.”
But the shareholders expressed disapproval, with some described the firm’s failure to embark on “aggressive marketing” as a strategy to remain afloat during the recession.
The chairman, however, promised shareholders that he would intensify efforts in addressing the unfavourable business environment, adding that in spite of the overwhelming business challenges, the company successfully commissioned its ultra-modern sorghum milling plant.
According to him, the newly commissioned mill will reposition NNFM as the hub for local content processing and local wheat collection, in the light of the company’s mid-term plan to build multi-grain blending facilities.