NAN cooperative records N10.3m profit

In spite of the COVID-19 pandemic, the Staff Multipurpose Cooperative Society Ltd. of the News Agency of Nigeria (NAN) recorded N10.305 million as profit after expenses in 2020.

Mr Moses Uzoagba, the president of the Society, said this at its 10th Annual General Meeting (AGM) on Tuesday in Abuja.

Uzoagba said the profit declared was made possible because of the wise investments made, support of members and the commitment of the executive.

Of the said profit, he proposed that 69 per cent be declared as dividend and interest to be shared among members, while the remaining 31 per cent be set aside for other purposes as agreed to by members.

He said as at Dec. 31, 2020, the share capital of the cooperative stood at N18.62 million, while members’ savings stood at N184.53 million.

According to him, in spite of the COVID-19 lockdown, the executive committee embarked on vigorous trading during the period under review, which contributed to the profit.

“The executive committee continued to invest in money markets such as Federal Government Treasury Bills and Fixed Deposits instead of keeping excess cash idle in the current account, even though their interest rates were low.

“The cooperative shop is also waxing stronger through your patronage and it is our desire that it will break even in no distant time as provision shops’ progressions are slow but steady.

“The executive committee in a bid not to keep idle funds as highlighted above invested in the purchase of two vehicles under the Brekete Family Taxi Hire Purchase Scheme,” said Uzoagba.

He added that the remittances from the scheme were consistent.

He, however, said inconsistent and fluctuating bank rates affected the cooperative’s businesses.

He said other challenges faced were the encroachments on plots of land owned by the cooperative in Nasarawa State, which it was working to salvage.

On future plans, he said the cooperative had gone into other businesses to increase profit for the benefit of members.

“We are consolidating, there are other ventures that people would bring up.

“So far we have bought a container for storage, during harvest we buy and store up and when the prices go up we sell.

“Aside that there are other businesses we will go into, as they come we go into them but we calculate before we go into them so we do not run into a loss.

“We want to make profit but not to the detriment of the members,” he added.

The General Secretary, Mr Dele Joseph, earlier said the cooperative recorded a profit of N11.49 million in 2019.

At the end of the meeting, the executive committee members were returned unopposed to carry on with the activities of the cooperative for another tenure of two years.

Miss Halimat Sani, a member of the cooperative, said though the profit declared was lower than what was declared in 2019, it was a good feat considering limitations due to the pandemic.

She also said the new sharing formula for dividends that was declared as 60 per cent in favour of savings contributors and 40 per cent for  shareholders was commendable.

Mr Adewumi Agboola, also a member, said he was impressed with the profit declared and dividend shared.

He said it showed that cooperative could still thrive in spite of the lockdown.

“It is a pointer to the fact that Nigeria as a country can still do well in spite of the challenges we face as a nation,” said Agboola.