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| Nigerian Stock Exchange |
Reports have indicated that the capital market shows
that the agriculture sector is hardly profitable for now and without any
form of dividend.
According to Leadership Newspapers, quoted companies like Livestock Feeds Plc, profit dwindled in 2015 from N402.15 billion in 2014 to N300.115 billion in 2015, of course no dividend was paid. For Okomu Oil Plc, although profits rose from N1.90 billion in 2014 to N2.9 billion in 2015, the shareholders of the company went home downcast.
The situation has not been too different for the agriculture sector of the country. The sector used to pay dividend to Nigerians in the 1970s. It’s earning subdued the dollar to a lesser position, the pounds sterling was almost at par with the naira, farmers were king, but the advent of crude oil stole the show and Nigeria has not been better for it.
But Audu Ogbe, Agriculture Minister said he is taking the sector to its past glory where it will pay dividend to investors and Nigerians generally.
With the waning price of oil, pressure to find other sources of revenue for government spending as well as stabilizing the economy from future external shocks has led to diversifying the economy from oil to agriculture.
The sector on the Nigerian Stock Exchange is not well presented considering that the NSE is the barometer of the economy.
A report by the Alliance for Green Revolution in Africa (AGRA), shows that Agriculture accounts for roughly 41 per cent of Gross Domestic Product, GDP, in Nigeria and 50 per cent of the economically active population in the country.
There are currently five companies listed in the Agriculture Sector of the NSE and this sector accounts for N69.9 billion out of the total Market Capitalization of N8.475 trillion as at April 11, 2016, representing 0.43 per cent of the total market capitalization. The companies are FTN Cocoa, Okomu Oil, Presco, Ellah Lake and Livestock Feed. Okomu Oil and Presco are the most performing stock trading at N31.25, N34.60 with year to date growth of 3.14 per cent and 4.85 per cent, respectively. FTN Cocoa trading at its nominal value of 50 kobo, Ellah Lake is selling at N4.26 and Livestock at 94 kobo per share as at April 11, 2016.
Agriculture has remained subsistence because financing needs for agriculture is quite substantial and it cannot be met through the money market, but this can be met with long capital sourced from the stock exchange, either through equity or bond market.
Recently the CEO of NSE, Mr. Oscar Onyema at the Presco Fact Behind the Figure, said, the capital market holds the ace for the Agricultural Sector to take its prime place in the Nigerian economy, saying, “The Nigerian Stock Exchange is the right platform to raise capital towards the growth and expansion of this sector”.
According to Leadership Newspapers, quoted companies like Livestock Feeds Plc, profit dwindled in 2015 from N402.15 billion in 2014 to N300.115 billion in 2015, of course no dividend was paid. For Okomu Oil Plc, although profits rose from N1.90 billion in 2014 to N2.9 billion in 2015, the shareholders of the company went home downcast.
The situation has not been too different for the agriculture sector of the country. The sector used to pay dividend to Nigerians in the 1970s. It’s earning subdued the dollar to a lesser position, the pounds sterling was almost at par with the naira, farmers were king, but the advent of crude oil stole the show and Nigeria has not been better for it.
But Audu Ogbe, Agriculture Minister said he is taking the sector to its past glory where it will pay dividend to investors and Nigerians generally.
With the waning price of oil, pressure to find other sources of revenue for government spending as well as stabilizing the economy from future external shocks has led to diversifying the economy from oil to agriculture.
The sector on the Nigerian Stock Exchange is not well presented considering that the NSE is the barometer of the economy.
A report by the Alliance for Green Revolution in Africa (AGRA), shows that Agriculture accounts for roughly 41 per cent of Gross Domestic Product, GDP, in Nigeria and 50 per cent of the economically active population in the country.
There are currently five companies listed in the Agriculture Sector of the NSE and this sector accounts for N69.9 billion out of the total Market Capitalization of N8.475 trillion as at April 11, 2016, representing 0.43 per cent of the total market capitalization. The companies are FTN Cocoa, Okomu Oil, Presco, Ellah Lake and Livestock Feed. Okomu Oil and Presco are the most performing stock trading at N31.25, N34.60 with year to date growth of 3.14 per cent and 4.85 per cent, respectively. FTN Cocoa trading at its nominal value of 50 kobo, Ellah Lake is selling at N4.26 and Livestock at 94 kobo per share as at April 11, 2016.
Agriculture has remained subsistence because financing needs for agriculture is quite substantial and it cannot be met through the money market, but this can be met with long capital sourced from the stock exchange, either through equity or bond market.
Recently the CEO of NSE, Mr. Oscar Onyema at the Presco Fact Behind the Figure, said, the capital market holds the ace for the Agricultural Sector to take its prime place in the Nigerian economy, saying, “The Nigerian Stock Exchange is the right platform to raise capital towards the growth and expansion of this sector”.
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