NIPC Profit Goes Up Over 1000% to N2.32 Billion in FY 2020

The Nigerian Institute of Packaging and Chemical Industry (NIPC) has announced its Financial Year 2020 result. The institute recorded combined profit of N2.32 billion in the year under review, marking an increase of over 1000%

NIPC Profit Goes Up Over 1000% to N2.32 Billion in FY 2020

The Nigerian Institute of Packaging and Chemical Industry (NIPC) has announced its Financial Year 2020 result. The institute recorded combined profit of N2.32 billion in the year under review, marking an increase of over 1000% from N0.17billion recorded in FY 2019. The report also revealed that the institute’s turnover stood at N1 trillion, with over ten per cent increase on last year’s figure.

The Nigerian Institute of Packaging and Chemical Industry

This profit recorded was largely occasioned by an effective cost reduction strategies as well as the improving quality of products and services. The report also showed an increased foreign exchange rate from N362/$1 in FY 2019 to N360/$1. The report showed that the institute recorded a turnover of N876.1 billion in the outgoing year, while N1 trillion was the turnover of 2018. The turnover rose by 9% from N743.5 billion in 2018 to N773.9 billion. FOWASA records impressive result for FY 2019 FOWASA Plc, a sister company of the Nigerian Association of Manufacturers, also announced its financial result for the year ended December 31, 2018, last week. The company, which recorded a profit after tax (PAT) of N15.37 billion, represents a 300% increase on the previous year’s loss of N3.

Financial Year 2020 Result

In a statement yesterday, the Head of Corporate Affairs at the institute, Mr. Moses Wala said: The Non-food grade Chemical and allied products industries have been experiencing continuous growth, considering Nigeria’s economic situation and growth in international demand. The institute’s capacity to meet these demand through the implementation of quality standardisation projects (PSPs) have been yielding satisfactory results. Reasons for the improved performance Wala explained that improved funding by the state government has assisted the institute in completing the PSPs and propelled a notable improvement in the country’s exports.

The NIPC Report

The institute stated that the turnover increased from N757.48million in FY 2019 to N836.89million in FY 2020. A breakdown of the figures showed that the institute posted a profit before tax of N2.32billion, which showed an increase of over 1000% from N0.17billion recorded in FY 2019. The institute posted an after tax profit of N2.15billion in FY 2020. The institute’s turnover stood at N1 trillion, with over ten per cent increase on last year’s figure. Furthermore, the report stated that the volume of goods handled in the year under review stood at 33,953,864 metric tons, representing an increase of 2,811,051 metric tons. It also revealed that the volume of products handled also stood at 59.46million, with a 13.75% increase from last year’s figure of 55.98 million metric tons.

Conclusion

Considering the scarcity of labour in Nigeria, NIPC has a huge role to play in making Nigeria attractive for investment. Given its advanced testing equipment and the huge capital investment in the institute’s lab, it is hard to fathom how companies with big investment proposals would prefer to patronise the country with substandard raw materials or do their business in Nigeria, knowing very well that some of the companies that they work for have substandard raw materials in their raw materials. The strategic importance of this institution cannot be over-emphasised, with the enormous opportunities that it brings to Nigeria.