By Cliford Ndujihe

There is an urgent need for the Federal Government to address the challenging economic environment which currently impedes capacity utilisation by manufacturing concerns across the country, the Managing Director of Master Chemicals & Fertiliser Limited, Mr. Lucky Chukudi Onyesom, has said.

Onyesom, who made the call at the company’s first Annual General Meeting, AGM, held in Asaba, weekend, said that providing urgent solutions would enhance industrial growth and bolster the gross domestic product of the country.

Citing the collapse in oil prices and the global economic meltdown due to COVID-19 as the major cause of foreign exchange shortage in Nigeria since 2020, he averred that the naira’s depreciation also arose from the shortfall in revenue and resultant pressure on the foreign reserves.

“The currency depreciation led to increased costs of materials in the year under review. Forecasted high inflation remained high in 2022 and this impeded improvements in business sentiment and dampen real purchasing power”, he added.

According to Onyesom, “a major raw material in our product chain, MOP Pellet, was a major issue that negatively affected the company’s performance during the year under review”.

He, however, described the company’s performance in the difficult macroeconomic environment as a testament of commitment, diligence and resilience of the management and personnel to create long-term value for stakeholders based on the vision and mission of the company

He announced a proposal to increase the authorized share capital from 1,000,000 of N1.00 each to 100,000,000 shares of N1.00 each in 2023, adding that while shareholders will be allotted 60,000,000, the remaining 40,000,000 will go to the directors.

He also spoke on the company’s vision to invest in urea plant with 300 metric tons per day capacity and disclosed that the company had hired a consulting firm, 5Score Global Consulting Limited, to work out the feasibility study with a Chinese company in order to actualise the plan.

Apart from adoption of motions and ratification of decisions earlier taken by management in the intervening period, a Lagos-based audit firm, Ogagavworia & Co., presented a report on the financial statement which the directors adopted as well.

The company is the producer of  Masterchem fertiliser and it commenced production on January 1, 2022 in Asaba after its production facility was commissioned in December 2021.