Why govt’s economic targets fail, by Ibru




The  pressure on money market following the implementation of the Central Bank of Nigeria’s (CBN) reforms in 2009 pushed up lending rates in the country so much that the Federal Government could not realise its economic targets, former President of Nigeria Stock Exchange (NSE), Mr. Goodie Ibru, said yesterday. 



The targets include the Gross Domestic Product (GDP) growth rate of 8.9 per cent (6.6 per cent in 2008), official headline inflation rate of 8.2 per cent, crude oil production of 2.29 million barrels per day as well as the benchmark price for crude oil at $45 per barrel.Making the disclosure yesterday during the annual reports and financial statement (AGM) of Capital Hotels Plc, owners of Sheraton Hotels, Ibru, who is the company’s chairman, however stated that the management of the hotels has built its business on “very strong foundations” against many odds. 



He told the shareholders: “Notwithstanding the unprecedented turbulent conditions created by the global economic meltdown during the review period, we achieved revenue growth of 18.7 per cent, profit before tax improved by 114.4 per cent; profit after tax increased by 219.6 per cent while total net asset as well as shareholders’ fund grew by 31.1 per cent.” Meanwhile, the company declared a turnover of N4.7 billion (4,703,677,0000 for the last financial year as against N3.9 billion in 2008. Profit on ordinary activities before taxation stood at 1.2 billion, while profit on ordinary activities after taxation is 668.4 million. There were no paid dividend. 



Also declared yesterday were the retained profit of the year, which stood at N668.4 million, up from 209.1 million of the previous year. The issued and fully paid up capital was put at 774.3 million while general reserves was quoted to be N1.7 billion just as shareholders’ funds have now been declared to be 2.4 billion.Ibru said he was pleased to announce the recommendation of the directors for the payment of a dividend of 7.50 kobo per ordinary share while the dividend will be subject to withholding tax at the appropriate rate. What this implies is that N116,159, 500.00 be paid to shareholders.





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