Cement Company of Northern Nigeria Gears Up to Shop for N2 Billion From the Capital Market

Cement manufacturer, Cement Company of Northern Nigeria Plc, is working to raise money from the capital market to boost its operation. It however targets to access the funds from its existing shareholders who are expected to inject additional N2 billion into the company. The necessary corporate resolutions have been passed to that effect, setting the stage for an offer that is expected in the market any moment from now.

The Sokoto-based company is hoping to raise its operational performance and earnings capacity by investing in new power-generation infrastructure. It's targeting building power-generating capacity for 12 megawatts of electricity. Currently groaning under the weight of a huge outlay on power generation which accounted for 40% of overhead in 2006, the company has chosen to swallow the bitter pill and tackle the problem head-on. This, it hopes, will assure its competitiveness and secure future earnings growth.