PZ Records N7.24bn Loss, Risks Losing N4.1bn Lagos Property

PZ Cussons Nigeria PLC has been faced with huge business loss amounting to N7.24bn due to Covid- 19 pandemic.

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The company is also at risk of losing its Lagos property worth N4.1bn to the Nigerian government.

PZ in its financial statement seen by THE WHISTLER said it witnessed a 511 per cent increase in its loss after tax. This  is against its 2019 loss amounting to N1.55bn.

The company stated that foreign exchange adjustment by the Central Bank of Nigeria resulted into weak revenue inflows from N74.34bn in 2019 to N66.99bn.

In a bid to meet up reform requirements from multilateral lenders, the Central Bank of Nigeria increased the exchange rate to N380 per dollar.

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But the company said the move significantly increased the uncertainties surrounding its operations.

“Due to the uncertainties of the outcome of current events, the company cannot reasonably estimate the impact these events will have on the company’s financial position, result of operations and cash flow in the future,”  the statement said.

PZ also recorded loss of N212.4m in its first quarter operations for 2020/2021, a period between June to August this year.

The loss in the new period was 80.6 per cent lower than the N1.09bn recorded as loss in the Q1 of the 2019/2020 financial year.

Coupled with the huge losses, the company said it also risks losing its property valued at approximately N4.1bn to the Nigerian government.

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The affected land was under the control and ownership of the Federal Government prior to 1991 when the country’s capital was moved to Abuja.

PZ said, ” When the country’s capital was moved to Abuja, the lands in question reverted ostensibly to the control of Lagos State in line with the Land Use Act of 1987.

“The State authority then transferred the land to various private landowners. Three properties in Ikoyi belonging to PZ Cussons Nigeria Plc falls within the portion of land.

“In July 2020 subsequent to the year end, the Federal Government asserted that they never transferred ownership of the land to the state authority at the time when the capital moved to Abuja and accordingly laid claim to continued ownership. 

“Occupiers of the properties are alleged to be squatters in the originating summons filed at the High Court by Nuruden & Co Nigeria Limited (who by by an affidavit annexed the summons claims that they were appointed as Agents of the Federal Government of Nigeria by a letter of instruction from the office of the Attorney General of the Federation dated 24 August 2017 filed in action). “

PZ however said it has the title/certificates of occupancy to the disputed land, “which provides prima facie evidence of ownership.”

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PZ added, “There is no precedence to estimate the outcome of the matter.”

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