It takes consistent effort, focus and discipline to grow from just being an entrepreneur with interest in a particular business to becoming a respected and renowned empire builder. It is why many believe that the genius of Jite Okoloko, the head honcho of Notore Chemical Industries Plc, Nigeria’s leading fertilizer, agro-allied, power and infrastructure company, oils the wheels of industry. Okoloko is also widely perceived as the kind of man that would be sent to Mars and still treat it as a stepping stone to Saturn – the quality of constant invention and self-improvement that has earned him worldwide acclaim as a business leader.
Among his clan and contemporaries, the Delta State-born Economics graduate of the University of Benin is perpetually on song because he ornaments his exemplary existence with gestures and exploits that dazzle like an ethereal treasure. Over the years, the Harvard Business School alumnus has emerged as the perfect symbol of business excellence seen at home and abroad as a historical figure; the personification of a business calculus within Nigeria and the African continent.
At the moment, Okoloko has plenty of reasons to be euphoric and even break into a song and a dance. Don’t blame him if he did. Years ago, Notore posted an operating profit of N0.11 billion. For a company with its huge investment portfolio, that figure was considered an industry low but Okoloko did not sit and mope around, he harnessed his mojo and ingenuity and today, Notore is back on the profit trail. Recently, the company, has posted a six per cent revenue growth, showing gross revenue of N17.4 billion and operating income of N3.8 billion for the nine months ended June 30 this year, according to its unaudited Q3 2020 Financial Results.
The result noted that there has been good progress with on-going Turn Around Maintenance (TAM) programme on the existing plant, adding that significant increases in production outputs and revenues are projected after TAM is completed at the end of December this year as expected.
Giving further breakdown of its results, it said: “The gross revenue stands at N17.42 billion, compared to N16.49 billion in Q3 2019 (six per cent YoY growth), representing a modest increase in production output and sales, while operating income is N3.79 billion, compared to N3.34 billion in Q3 2019 (an increase by 13per cent YoY) driven largely by increases in other income.”
It noted that its debt service cost stood at N11.89 billion, compared to N10.45 billion in Q3 2019 (14per cent YoY growth), due to additional term borrowing to finance the TAM programme and the impact of Naira devaluation on foreign currency denominated loans.
It said: “Notore’s gradual revenue growth is attributable to some improvements in plant reliability derived from the on-going TAM programme, which has begun to impact positively on plant operations, resulting in some modest increases in production volumes and production on-stream days during the period.
“Operating expenses increased by 22per cent to N16.24 billion during the period from N13.23 billion for the corresponding period of Q3 2019 due mainly to a combination of increases in production activities, Plant repair and maintenance expenses exacerbated by Naira devaluation.”
On the impact of the coronavirus on its operations, it said it has continued to weather the storm during the period and recorded impressive sales during its 2020 financial year, saying: “For the period under review, Notore sold all the urea that it produced in both domestic and international fertiliser markets.”
And the company is hopeful that with Okoloko’s relentless drive, the demand for Nigerian fertilizer will continue to grow especially because of the federal government’s agenda to use agriculture as one of the keys to unlock the diversification of the Nigerian economy. “The domestic fertilizer market is yet to reach its full potential as the consumption of fertilizer per hectare of arable land in Nigeria is below 10kg compared to the 200kg recommended by the Food & Agriculture Organisation. Furthermore, the demand for urea and compound fertilizers, such as NPK – Nitrogen (N), Phosphorus (P) and Potassium (K) – from the West African markets and Sahel African states is also quite significant. Notore sold all the urea that it produced during the period under review,” the company said in a statement.
The growth story of Eroton Exploration and Production, an independent oil and gas producing company, and Midwestern Oil and Gas, which is also involved in exploration and production of oil and gas, is no less heart-warming under Okoloko’s leadership. While Eroton prides itself as having created local solutions by applying basic innovative technologies which have led to a six-fold increase in production since the company was acquired in 2015, Midwestern, co-owned by the Delta State Government, has achieved immense successes through its ability to peacefully coexist with its host communities.
In 2017, the company kicked off a medical outreach for residents of Kwale and environs in Delta State. It also instituted a scholarship scheme, a community healthcare scheme and sustainable water projects among others which the company stated are designed to contribute to the economic development of the host communities while improving the quality of life of the workforce and their families as well as that of the society at large.
Its Group Managing Director, Mr. Onajite P. Okoloko, said having installed and commissioned a brand new 2,000 metric tons per day NPK Blending Plant with capacity to produce various crop specialty blends of NPK fertiliser, the company is consolidating customer loyalty by expanding its product offerings.
“The NPK Plant has now commenced commercial production and sale of bulk dry blended NPK fertiliser varieties. Additionally, the company entered into partnership with the NAIC-NPK Limited during the period for the blending, packaging, sale and distribution of NPK fertiliser for the year 2020 farming season under the Presidential Fertiliser Initiative (PFI),” he said.
