NNDC To Float New Telecom Firm

The New Nigeria Development Company (NNDC) said it had concluded arrangement to float a new telecommunications company even as it posted a pre-tax profit of 609 per cent.

Chairman of the company, Prof. Halidu Abubakar gave the indication shortly after the company’s 44th Annual General Meeting (AGM) in Kaduna. “Arrangements have gone far in the merger between our Gamji Telelecommunications Company with our affiliate company, Backbone Connectivity Network (BCN) Nigeria,“Abubakar said.

He said the merger would produce “a bigger and more vibrant telecommunication company which will enable us to get better value as a result of synergy.“

The NNDC chairman said discussion was going on with the NNPC on the oil and gas exploration in the Northern region.

“We are making plans to collaborate with the NNPC in our continuous search for hydrocarbon potentials in the Northern Sedimentary basins.

“ The objective is to be part of all the activities of NNPC in the basins and this will reduce financial commitments of our company.“

He said that the company was also collaborating with states to acquire more mining sites to boost solid mineral development, in addition to exploring new areas including property development.

“ The company has identified new areas of strategic focus including boosting agricultural production, development of solid minerals, massive investment in property development, resuscitation of promising ailing industries and consultant services.“

Abubakar said that the company was scouting for more investable funds through collaboration with other development finance institutions, so as to play a greater role in the nation’s economic development.

The 23-member NNDC board had earlier approved the appropriation of N20 million to finance the Young professional Development Trust and the Learning Resources Centre Funds. The Chairman said that the company’s performance had improved in spite of the challenges posed by the deterioration in the Nigerian economy.

“Particularly the insecurity in the country in general and the 2011 post election crisis that occurred in some part of the country, which adversely affected business activities and international investment.“

Abubakar said the company had recorded a pre-tax profit of N69.25 million as against the preceding year’s profit of N9.76 million.

He said the figure represented an increase of N59.49 million or 609 per cent for the year ended March 31, 2012.

“The gross earnings of the company stood at N414.24 million during the year under review, representing an increase of N34.82 million or 9.18 per cent over the previous years’s figure of N379.42 million. “ Operating expenses for the period under review stood at N318.81 million against the preceding year’s figure of N348.26 million, indicating a decrease of N29.44 million or 8.45 per cent,“ the chairman added.

He said the nominal value of the company’s quoted investments stood at N239.26 million, while the market value stood at N6.801 billion.

The chairman commended the NNDC associate companies for recording encouraging result in spite of the difficult operating environment.

Abubakar commended shareholders for sustaining their trust and confidence in the company and pledged to do better in the years ahead.

Secretaries to Governments of the 19 Northern States participated in the NNDC’s 44th AGM.