March 6, 2020 / 5:38 PM / a month ago

UPDATE 1-Nigerian fertiliser maker Notore eyes 40 bln naira capital increase

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By Chijioke Ohuocha

ABUJA, March 6 (Reuters) - Nigerian fertiliser maker Notore plans to seek shareholder approval this month for a 40 billion naira ($131 mln) capital increase, the company said on Friday.

The company, which has interests in power, food and seed production, said it plans to offer shares or bonds and that the shareholders vote will be on March 26.

Chief Executive Onajite Okoloko has said that Notore, which also develops and sells staple crops such as maize and rice, planned to boost access to capital to fund the company’s growth.

Agriculture accounts for 20% of Nigeria’s gross domestic product, with crop production the biggest contributor within the farming subsector.

However, low fertiliser production and the high cost of importing fertilisers has limited seed production. Fertiliser consumption in Nigeria ranks below its African peers at around 100 kg per hectare.

Notore has posted losses since listing on the Nigerian stock market two years ago. Its 2019 loss before tax widened to 10.25 billion naira from 3.52 billion naira the previous year. ($1 = 306.00 naira) (Reporting by Chijioke Ohuocha Editing by Barbara Lewis and David Goodman)

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