By Providence Obuh

Dangote Group Staff Muti-Purpose Co-operative Society Limited (Dancoops) has expressed confidence of a rebound in the Nigerian capital market in the near future.

This was disclosed during the fifth Annual General Meeting (AGM) for its financial year end December 31st 2009, held recently in Lagos.

Financial Secretary, Olufemi Ojoboorun said that despite the revaluation net loss of N6.98 million which was due to the downturn in the capital market a surplus of N11.71 million was recorded, however he stressed that with the establishment of Asset Management Company (AMCOM) by the Central Bank of Nigeria (CBN) to absorb the trouble assets of the banks, it is expected that the market value of most of the stocks will appreciate.

According to Ojoboorun “the Management Committee is monitoring developments in the capital market and has in the meantime halted further investment in this direction while hoping that in due course we will recover the loss incurred so far”

President, Mr. Ben-Oscar  Nwachukwu  said based on the advice of the Co-operative Directorate of Lagos State who are the Statutory auditors, a dividend payout of three kobo per naira of members has been proposed to be approved by members.

Nwachukwu noted that a significant growth has taken place for the past five years of the society, as its dividend has grown from N2.17 million in 2005 to N11.45 million in 2009, Savings growth of 47.4 in 2005 to 377.4 in 2009 and its membership strength which was 400 in 2005 has increased by 3019 in 2009.

“In the period under review, our society achieved gross earnings of N25.05 million in 2009 which is a modest increase from N21.6 million in 2008 while our operating expenses dropped  from N3.4 million to N3.3 million, in order words, we have managed to maintain a relative decreasing figure of operating expenses while growing income”

He disclosed that the following will be considered for future investment plan; Extension of the home ownership scheme to Obajana and Ibeshe by the acquisition of land in those locations as a first step, operation of Dancoops shop in strategic locations to serve members and the public and operation of car acquisition scheme.

“Our primary objective remains the pooling of funds through monthly savings by members to encourage savings culture among our members, with a view to building funds by individuals for short term and future use” he said.