… Creates 300,000 employment for Nigerians
By Steve Agbota and Chinwendu Obienyi
Nigerian Breweries (NB) Plc. has empowered about 250,5000 farmers and created 300,000 jobs for Nigerians through its value chain mostly in the area of agriculture in the country.
The company was able to empower more Nigerians with many jobs through innovative products and improved local raw materials’ sourcing, which is currently close to 50 per cent, as the company targeted 60 per cent of its local raw materials sourcing by 2020.
To this end, NB, in conjunction with Heineken Supply Chain BV of the Netherlands and other Heineken companies, is involved in activities aimed at development of new hybrid sorghum varieties with the potential of increasing the yield/output for sorghum farmers as well as improving the quality of sorghum malt, which is a major raw material input in the company’s operations.
According to the statement, excerpts from 2016 Annual Reports said two high-yielding sorghum varieties have been developed and registered by the company, even as the process of commercialising their production is ongoing. It also said the company has a subsisting consultancy agreement with a Nigerian professor on the development of sorghum seeds.
The company’s Managing Director, Mr. Nicolaas Vervelde, who addressed newsmen at the pre-Annual General Meeting (AGM) media briefing in Lagos, said that it is also making progress in the deployment of new hybrid sorghum varieties, adding that yields had increased over time in line with the firm’s growth projections.
He said the company had been in the sorghum value chain since 1998, noting that it was also investing in research and development with regard to sorghum seeds, adding that the company had embarked on various sorghum value chains to increase its source locally.
The NB Plc boss said the company is making progress with its partners – International Fertiliser Development Centre (IFDC) and Psaltry International, a local processing company – on value extraction from cassava, stating that the company at the moment has two sorghum plants in Kaduna and Aba to improve local production of the product.
On the company’s performance during the period under review, he said that 2016 was challenging due to the impact of high inflation, scarcity of foreign exchange and drop in oil price at the international market.
Vervelde said that government revenue in 2016 was under pressure due to crude oil price crash, which led to low purchasing power. He, however, expressed optimism in the company adapting to policies in the operating environment in order to deliver good return on investment to stakeholders.
He added: “It is anticipated that economic activities will improve in 2017, considering the far reaching fiscal and monetary measures being planned and implemented by the Federal Government. It is therefore hoped that with the gradual rise in the price of oil and a steady increase in the volume of oil output, the naira will be strengthened and forex will be more available for businesses. The brewed product market would remain competitive and consumers are expected to continue the down-trading as they seek for more affordable brands.”
