During the 45th Annual General Meeting (AGM) of 11 Plc, held in Abuja, the Managing Director and CEO, Adetunji Oyebanji, addressed the attendees and shed light on the significant Impact of the Russia-Ukraine War on the Nigerian Economy.
Oyebanji emphasized that the War, which had been ongoing for over a year, had adversely affected Nigeria in various ways.
He highlighted how the Conflict had disrupted Global Supply Chains, leading to a surge in Prices for several Commodities such as Crude Oil, Natural Gas, aluminum, nickel, wheat, and other Essential Goods.
These Price escalations created a State of disarray in the Markets.
Specifically, the cost of a liter of Diesel skyrocketed from approximately N420-N450 to N600 within two weeks of the War’s commencement.
Furthermore, Petrol prices rose above $120 per barrel, exacerbating the Inflation outlook for Africa’s largest Economy.
As a consequence, the Price of Diesel continued to rise and surpassed N800 per liter.
To maintain subsidies on Petrol, Nigeria had to strain its Financial Resources significantly.
This necessitated diverting substantial funds to Support the Petroleum Sector.
The repercussions of these developments extended beyond the Energy Sector.
Manufacturers, retail outlets, and small Businesses relying on Diesel to Power their Machinery were compelled to Increase the prices of their Goods and Services. Consequently, Consumers faced the dual challenges of reduced purchasing Power and higher costs of essential Products.
Oyebanji also highlighted the War’s effects on Global Trade, specifically in terms of key Energy and grain Exports from Russia and Ukraine.
The disruption of these crucial Exports put additional strain on Supply Chains Worldwide, Intensifying pricing pressures and fostering protectionist measures across the Globe.
Consequently, severe Inflationary pressures were experienced in various Economies.
In a separate announcement, during the AGM, it was revealed that 11 Plc recommended a Dividend payout of N3.07 billion.
This Dividend translates to N8.50 per ordinary Share, with each share having a nominal Value of 50 Kobo.
The proposed dividend payout showcased the Company’s commitment to providing returns to its Shareholders.
