Dangote receives N3,015 billion in one single quarter tax exemption.
According to the financial statements released on Monday, Dangote Sugar Refinery Plc obtained a total tax exemption of N3,015 billion from the Federal Government in the third quarter of the year.
The sugar manufacturer increased profit after tax by over N300 percent to N15,049 billion in the quarter in the unaudited financial statements released via the Nigerian Stock Exchange, partly due to the N3,015 billion exempted.
The company also recorded an astonishing N57.280 billion in sales in the quarter and posted an operating profit of N10.480 billion.
This represents an improvement of about 100 percent from the operating profit of N5.623 billion recorded in Q3 2020.
The tax exemption was in accordance to the Federal Government’s recent efforts to cushion the negative impact of COVID-19 on Nigerian businesses, protect jobs and speed up the economic recovery process.
However, as is evident in the recent looting of different palliative warehouses across the country, many Nigerians who are still grappling with the devastating impact of COVID-19 are yet to be reached.
In essence, the inability of these individuals to access grants or financial assistance will weigh on the consumer spending and retail sales of companies such as Dangote Sugar, Dangote Cement and other establishments benefiting from the federal government’s COVID-19 initiatives.
Some of the factors hurting household income in Nigeria are weak wage growth and low earnings, especially with companies now laying off large numbers of employees to curb losses and better manage the negative effect of COVID-19 on their earnings. Demand is expected to plunge further once the third quarter GDP report, a possible confirmation of the recession, is released.