University Press Plc has expressed regret about the growing expense of conducting business in Nigeria, claiming that the difficulty has raised its operational costs.
The company stated that the difficulties facing the industry were largely created by factors such as excessive levels of fiscal debt, inadequate governance, and the nation’s reliance on oil as its primary source of foreign exchange earnings.
Obafunso Ogunkeye, the chairman of University Press, made this statement over the weekend in Ibadan, Oyo state, during the 45th annual general meeting.
In light of all that occurred in Nigeria and around the world, Ogunkeye said the company found the year under review to be extremely difficult.
He claimed that tensions between the United States of America and the People’s Republic of China, as well as the Russia/Ukraine war, had caused the nation to experience significant levels of inflation. Each of these elements played a part in upsetting international supply systems.
He claimed that the difficulties in obtaining foreign exchange had a significant impact on the company’s operations because they were unable to use their foreign printers to create the volumes they would have liked.
According to him, the company’s attempts to print locally were also hampered by the extremely high cost of paper, which accounts for a sizeable amount of production costs.
Furthermore, he claimed that although the company’s revenue began the year on a positive note, the aforementioned economic conditions hampered efforts to generate income later in the year.
He pointed out that the performance was greatly impacted by the Central Bank of Nigeria’s (CBN) Naira redesign/swap strategy and general election preparations.
According to him, all of these caused the company’s turnover to decrease by 6% in comparison to the fiscal year 2021–2022.
According to him, the company’s 2022–2023 revenue was N2.2 billion. Comparing the earnings after tax to the prior year, it was 31% lower at N142.3 million.
A dividend of 10 kobo per share, or N43 million, was suggested by the Board for the 2022–2023 financial year in light of the company’s performance, and the recommendation was approved by the shareholders.
Speaking as well, Samuel Kolawole, Managing Director/Chief Executive Officer of University Press Plc, stated that throughout the year, the Federal Government and the CBN took a number of decisions that had a detrimental effect on the business climate.
The CBN implemented a cashless policy and redesigned money, he noted, which were the two most significant events of the year. The elections’ aftermath, the naira’s unanticipated devaluation, and the CBN’s adoption of a cashless strategy presented more difficulties for the Nigerian economy than most had anticipated.
According to Kolawole, these measures severely hampered economic activity across the board in the majority of Nigeria’s key sectors. The industry in which the business operates, education, was no exception.
According to him, the business will keep addressing the issues raised and becoming ready for any unforeseen problems that might arise in the future.
Nonetheless, the company’s perseverance in overcoming the obstacles facing the nation has been applauded by shareholders.
The board received praise for paying the dividend, which will be distributed right away upon approval in light of the challenges the business has experienced.
Bisi Bakare, the chairman of the Pragmatic Shareholders Association, suggested that the business think about procuring resources locally rather than importing them for manufacturing.
She urged the board to investigate the matter, claiming that the corporation is not doing enough to provide worker emoluments.
According to Bakare, the business must use technology to increase sales. He suggested that the business establish an online portal where students can access and obtain information.
