THESHIELD Garkuwa
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CHAIRMAN’S STATEMENT
Delivered at the 56th Annual General Meeting of the New Nigeria
Development Company Limited
Wednesday, April 23, 2025 | The Raffle Suites, Kaduna
Distinguished Shareholders,
Esteemed Members of the Board,
Ladies and Gentlemen,
It is my honour and privilege, on behalf of the Board of Directors, to warmly
welcome you all to the 56th Annual General Meeting of the New Nigeria
Development Company Limited (NNDC). I am pleased to present the Annual Report
for the financial year ended March 31, 2024, highlighting the key developments,
performance, and prospects of your Company.
Let me begin by appreciating the Northern Sates Governors Forum (NSGF) for
providing the general direction and for the confidence reposed in us through our
recent appointment to the Board.
Our sincere appreciation also goes to the Chairman of the Northern States
Governors’ Forum, His Excellency Alhaji Muhammadu Inuwa Yahaya, the Dan Maje of Gombe, for the strategic leadership he has provided and the restructuring of the
Board as part of broader reforms aimed at reinvigorating the Company for optimal
performance.
We will strive to justify the confidence reposed in the Board by the
NSGF.
I would also like to acknowledge the immediate past Chairman of the Board, Alhaji Tanimu Yakubu whose experience and expertise was put to bear whilst he steered the affairs of the Company. This is evident in the reorganization of the investment activities of the Company for greater returns particularly from the Capital Market.
We will consolidate on the solid foundation laid and the achievements recorded by the past Board.
We acknowledge the commendable service of the immediate past Board, composed of the Secretaries to the Governments of the 19 Northern States, who despite their busy schedule, served diligently for over a decade and for holding the Company together. Thank you.
THE ECONOMIC AND BUSINESS LANDSCAPE IN 2024.
• Economic Growth: The country sustained modest growth, with GDP expanding by 2.98% in Q1, 3.19% in Q2, and 3.46% in Q3—culminating in an estimated annual growth of 3.6%.
• Inflationary Pressures: Inflation peaked at 34.6% in November; food inflation
reached 39.93%.
• Balance of Payments: Surplus of $6.83 billion, aided by trade and remittance
inflows.
• Reforms: Continued fuel and electricity subsidy removal and naira
devaluation.
• Pension Reforms: PenCom announced diversification of Nigeria’s ₦14.58
trillion pension fund.
• Capital Markets: Growth slowed due to regulatory and macroeconomic
constraints.
• Infrastructure Milestones: Lekki Deep Sea Port operational, boosting job
creation.
• Housing Crisis: Rents exceeding incomes created affordability challenges for
youth.
• Digital Taxation and Legal Reform: Binance case spotlighted taxation of global digital platforms.
• Creative Economy: ₦58 billion in Spotify royalties to Nigerian artists reflected
rising global demand.
In summary, while Nigeria’s economy exhibited encouraging momentum in some areas, persistent structural and regulatory challenges underline the urgency of
sustained reforms, strategic investments, and inclusive growth.
FINANCIAL PERFORMANCE
• For the financial year ended March 31, 2024, the Company recorded:
Revenue: ₦794.64 million, a 33% increase from ₦532.53 million.
• Operating Expenses: ₦974.14 million, down 9% from ₦1.07 billion.
• Profit Before Tax: ₦3.24 billion, up from ₦2.51 billion.
• Shareholders’ F u n d : ₦26.77 billion as of March 31, 2024. This
improved performance reflects the Company’s continued operational
efficiency and prudent management of resources.
APPROPRIATIONS
In line with our commitment to corporate philanthropy and professional capacity
development, the Board is proposing the authorization to fix the annual contributions tothe Young Professional Development Trust (YPDT) and the Musa Bello Learning Resource Centre Fund.
CORPORATE SOCIAL RESPONSIBILITY
NNDC continues to invest in human capital through strategic partnerships. Under the
Young Professionals Development Scheme and the Student Special Projects, we
support Northern graduates to become Chartered Accountants, Insurers,
Stockbrokers, and IT specialists. As of November 2024, the Company has produced 1,718 professionals across training centres in Kaduna, Kano, Ilorin, and Gombe, in collaboration with the Institute of Chartered Accountants of Nigeria (ICAN
FUTURE OUTLOOK
As the current administration approaches its second year, we remain cautiously
optimistic that the macroeconomic reforms will begin to yield tangible improvements in the business environment.
We also take this moment to commend the bold and visionary reform agenda of the
Northern States Governors’ Forum, which seeks to reposition NNDC in line with the
legacy and foresight of our founding fathers – led by the late Premier, Sir Ahmadu Bello, the Sardauna of Sokoto. This vision remains deeply relevant to our
developmental aspirations.
The new NNDC Board and Management are resolutely committed to this renewed
vision. We will pursue our mandate with vigour and integrity, set clear performance
indicators, uphold strong corporate governance, and foster a results-driven
environment across the organisation.
Accordingly, we shall continue to advance the strategic initiatives already underway
while remaining open to emerging opportunities that enhance value creation and sustainable growth.
The Company will continue to pursue its strategic initiatives with vigour, while also
exploring emerging opportunities to enhance earnings, expand our investment
portfolio, and generate long-term value for our shareholders.
CONCLUSION
I wish to commend my colleagues on the Board, the Management, and the entire
Staff of NNDC for their steadfast dedication and resilience in the face of economic headwinds.
I also extend our deepest appreciation to the Northern States Governors’
Forum for its enduring support.
As we look forward to the future with renewed determination, let us remain united in our commitment to building a stronger and more prosperous NNDC for the benefit of our shareholders and the entire Northern region.
Thank you.
Alh. Lamis Shehu Dikko
(Ajiyan Katsina)
Chairman
