Lagos, 25 September 2020
As a result of the long and intensive rainfalls recorded recently at the northern and central parts of the Niger basin, coupled with massive floods triggered by severe downpours at the Sokoto Rima basin, the Kainji and Jeba dams witnessed an upsurge and rather dramatic increase in the lateral flow of water.
As expected, Mainstream Energy Solutions (MESL) operators of the Kainji and Jebba reservoirs, with whom we have a longstanding relationship immediately initiated a strategic spillway operation to control the enormous volume of floods and to weaken the flood peaks. Their inspired and prompt response averted what could have otherwise been a devastating incidence.
Nonetheless, the resulting high inflows in the downstream Niger River have caused a breach to the extensive and properly designed dyke systems at Sunti Golden Sugar Estates (SGSE). As a precaution, immediate safety protocols have been instituted to safeguard employees, property and equipment.
The management of SGSE is also in constant communication with the National Control Center (NCC), and MESL who have been releasing daily updates on inflows, outflows and reservoir levels at Jebba and Kainji.
While SGSE has suffered some disruptions to operations and delays to our expansion project to increase the area under cultivation to 4,000 hectares by mid-2021, the actual state of damage to the current sugarcane crop at Sunti, can only truly be assessed once the floodwater subsides. Overall, based on currently available information, the breach is not foreseen to impact the overall performance of the Group.
The management will release further details in due course as the need arises. However, we assure our investors and other key stakeholders, that there is no immediate threat to the earlier indicated earnings projections of Flour Mills of Nigeria Plc.
About Flour Mills of Nigeria Plc
Incorporated in September 1960 and quoted on the Nigerian Stock Exchange since 1978, Flour Mills of Nigeria (FMN) Plc. is one of Nigeria’s leading food and agro-allied companies. With a broad basket of food products, an iconic brand “Golden Penny” and robust pan-Nigerian production, distribution, and supply chain network, FMN is a fully integrated and diversified food and agro-allied group.
The FMN group strives in its mission to “Feed the Nation, Everyday” through its five core food value chains: Grains, Sweeteners, Oils and Fats, Proteins, and Starches. FMN creates value along the entire food chain with its “farm-to-table” model by providing inputs and know-how to farmers, aggregating and sourcing crops and raw materials to supply its world-class processing facilities across Nigeria, and distributing its innovative food brands to its customers.
Lagos, 25 September 2020