On behalf of the Management and Staff of The Nigerian Stock Exchange and the wider capital market stakeholders, I welcome the Board and Management of Presco Plc to this Facts Behind The Figures (FBTF) presentation.

We congratulate you for coming forward to provide the market with information about your organisation through the medium of Facts behind the Figures -a rather important activity as the capital market is information driven.

Presco Plc has an outstanding history.

• It came into being in the seventies, through the efforts of Government of the former Bendel State of Nigeria (now Edo State and Delta State)
  

• The company was listed on The Nigerian Stock Exchange on October 10, 2002 in Agriculture Sector and Crop Production Sub-sector.

According to accounts, Presco is one of the largest employers of labour in Edo and Delta states, with a total of about 2,200 employees. I believe Presco Plc deserves a commendation for this.

Going by the records, agriculture in Nigeria accounted for 65-70 per cent of total exports in the 1960s; it fell to about 40 per cent in the 1970s and crashed to less than 2 per cent in the late 1990s.

Ladies and Gentlemen, the poor performance of the Nigerian agricultural sector, in terms of its contribution to country’s total revenue has led successive Government to embark on and implement several agricultural policies and initiatives aimed at reviving the sector.

A report by the Alliance for Green Revolution in Africa (AGRA), (founded by a former Secretary General of the United Nations, Mr. Kofi Annan) 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.The report asserted that agriculture harbours the key growth reserves to drive Nigeria’s economic greatness.

One of the reasons the sector has remained subsistent is because the financing needsfor agriculture is quite substantial and it cannot be met through the money market.Taking into consideration the long-term nature of the sector as well as capital intensive disposition of the industry, the agriculture sector cannot rely predominantly on short-term borrowing.

It is a known fact that the capital market has a comparative advantage over other sources of finance in the provision of long-term funds compared to the generally higher cost of bank financing for long-term capital infrastructural projects.

Despite the importance of Capital Market to the growth and development of the sector, promoters of Nigerian agricultural ventures are yet to takeadvantage of the opportunities the stock market provides. Currently, there are five companies listed in the Agriculture Sector of this Exchange and this sector accounts for N34.62 billion (0.4%) out of the total Market Capitalization of N8.59 trillion as at October 29, 2012. We believe this situation can be better.

For the Agric Sector to take its prime place in the Nigerian economy, the capital market clearly holds the ace. The Nigerian Stock Exchange is the right platform to raise capital towards the growth and expansion of this sector.

We are capable, concerned andwilling to work with the private sector in repositioning the Nigerian Agricultural industry.  

Notwithstanding the not too impressive performance of the agric. sector in the nation’s economy, Presco Plc has continued to thrive and has remained the toast of discerning investors in our market since it was listed on the Nigerian Stock Exchange ten years ago.

• It has consistently rewarded investors’ loyalty.

• Its dividend payout of 100 kobo in 2011 represented an increase of 100% compared with the 50 kobo it paid in 2010.

• From the year opening value of N8.67, the stock of the company traded yesterday, Monday, October 29, 2012 at N14.90.

• This represents a capital appreciation of 42%.
  

I would like to implore Presco Plc to continue to keep up the good work.

We once again commend the management of Presco Plcfor coming to present the Facts behind the Figures and urge their board and management to endeavor to continue to positively engage shareholders and customers.

 Thank you.

Oscar Onyema

Chief Executive Officer

October 30, 2012