• Business - Companies
  • Updated: February 18, 2022

Julius Berger Ventures Into Cashew Nut Processing

Julius Berger Nigeria Plc has announced that it will be venturing into the agro-processing sector of the Nigerian economy.

This announcement is in furtherance of its diversification position agreed upon by the board of directors and stated clearly in its 2020 Annual Reports and Consolidated Financial Statements.

The company had already advised its shareholders about this strategic move and believed that it was in the best interest of the organization and its shareholders that this time period of the nation’s political and economic life was the best time.

The company had carried out extensive research on the impact of the various intervention policies of the CBN through the Anchor Borrowers Programme (ABP) and other sub-intervention policies to advance the growth of the agriculture industry.

Cashew processing will form the cornerstone of the company’s activities in the agro-allied sector.

The cashew processing plant will be located in Epe, Lagos State, and is to be commissioned in the second quarter of the financial year, which is between April and June 2022.

"Julius Berger is pleased with and indeed excited about the progress made with this initiative. Julius Berger reiterates that our diversification direction would support the continued success of the Julius Berger Group in the future and align with the strategic objectives of the government to stimulate value creation in Nigeria", the company secretary, C.E. Madueke, said

Benefits to Investors:

Investors would expect the price value of the company's shares to rise as a result of this strategic move.

Capital appreciation of the company’s shares will enable secondary market traders to make a good and quick profit.

As a result, institutional shareholders of the company can increase their financial revenue whenever the price goes up in the best possible way.

Being a leader in the construction business for over 50 years, shareholders expect the company to make an effort to dominate this sector by not only helping the government's agro-processing agenda but also helping drive domestic production in the sector.

Benefits to the community

With the processing plant located in the Epe region of Lagos state, a place where you have the Dangote Refinery, Power oil vegetable plant, Kellogg's factory, the proposed seaport of the federal government, and the second international airport, the locals at Epe should expect more job opportunities and more small scale opportunities in trade and commerce which will, in turn, improve their living standards.

Better houses, schools, infrastructure, recreational centers, and other things that will reflect the presence of a company of such magnitude.

Benefits to the government

With the company venturing into this area, the government can expect better opportunities to increase its revenue through tax payments.

The government can also expect the company to contribute to its quota in its drive to increase domestic production and reduce dependence on imported cashew nut products.

The government can expect the company to help achieve its agenda of unemployment reduction by engaging more youths in gainful employment.

Benefits to the company

With this strategic move, the company's revenue and capital base are expected to triple once it hits full production.

The company can enjoy a positive economy of scale in the Epe region, as its geographical closeness to other companies situated in that region could rub off positively.

The company will engage the services of research professionals and other professionals in that field to help broaden not only its knowledge base but also its bottom line at the end of every financial year.

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Okojie Kelvin Echiejile
Okojie Kelvin Echiejile

I am an astute, dedicated, devoted, and intelligent investigator of economic, and financial news and...

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