The chairman, Board of Directors of New Nigeria Development Company (NDDC) limited, Alhaji Bashir Mohammed Dalhatu yesterday said the full implementation of Treasury Single Account (TSA) aimed at blocking leakages of government revenue, fight against corruption, and removal of oil subsidy as well as efforts made in stabilising the exchange rate resulted in liquidity squeeze in the economy.
He stated this at the 21st Annual General Meeting (AGM) of the company’s BOD which held at the headquarters of the company in Kaduna.
According to Dalhatu; “ the economic and business environment in which the company operated during the period could be described as severe, which he said is evidence by the continuous decline in the
international price of crude oil which led to a sharp decline in government revenue resulting in a significant reduction in foreign earnings and unabated devaluation of the Naira against other major foreign currencies, adding that, “there was a sharp decline in Foreign Direct Investment (FDI).”
He further said that the volatile business environment under which the company operated during the period impacted on the performance, “the company recorded decline of 3% in operating income from N923.9m in the previous year to N898.6 which was attributed to lower dividend income.
“This was further worsened by the activities of the Niger Delta militants which has continued to impact negatively on the level of oil production for export.
“Also, a 29% decrease in operating profit before tax from N237.2m to N167.9m was recorded. The company was able to improve its net assets per share by 1.7% from N18.5 to N18.8 when compared with results of the year ended 31st March, 2015 respectively.”
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