Nigeria’s leading chemical and agro-allied company, Notore Chemical Industries Plc, has recorded group revenue of N4.1 billion for the First Quarter ended 30th April 2023.
In a statement, the company’s Group Managing Director (GMD)/ Chief Executive Officer (CEO), Mr. Ohis Ohiwerei, said its production was impacted by gas-supply limitations while finance cost affected by an increase in the exchange rate and the increasing cost of funds (driven by Monetary Policy Committee (MPC) rate changes).
He said the company is confident of growth in the fertilizer market with Mordor Intelligence predicting a 4.4% growth between 2021 to 2026.
According to him, “The company’s financial performance was impacted by the shortage of natural gas, a feedstock to produce Urea fertilizer, during the period under review resulting in a decrease in production volumes.”
“The shortage of natural gas significantly impacted our production capacity, thereby limiting our production output. We are working closely with our suppliers to find a solution to the gas shortage and are exploring alternative sources to ensure improved production output.”
Noting the challenging but promising operational environment, he said Notore is committed to providing premium agricultural inputs to its customers.
He added: “Though the limited gas supply impacted its first-quarter earnings, the Company is addressing the issue to ensure a steady natural gas supply. As a result, it is confident that it will return to profitability in the coming quarters.
On the outlook for the industry, he said the agricultural sector accounts for approximately 24% of Nigeria’s GDP, and one of the most crucial components of the sector is fertilizer, which is required to boost food production and growth.
“The fertilizer market in Nigeria is expected to continue growing in the coming years due to the increasing demand for food and the Federal Government’s efforts to promote agriculture. According to a report by Mordor Intelligence, Nigeria’s fertilizer market is projected to grow at a CAGR of 4.4% between 2021-2026,” he added.
Ohiwerei stated that the Federal Government continues to drive several initiatives to boost the agriculture sector, such as the Presidential Fertilizer Initiative (PFI) and the Anchor Borrowers Program (ABP), noting that “these initiatives aim to increase the production and use of fertilizers to improve crop yields and food security in the country. Notore remains well-positioned to leverage opportunities to meet domestic and West African market demand.”