Flour Mills of Nigeria Plc in a press statement signed by the Company Secretary/Director, Legal Services, Umolu Joseph A.O, informed investors and stakeholders that there was flooding at its subsidiary; Sunti Golden Sugar Estates Limited.
This was 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, causing Kainji and Jeba dams to witness an upsurge in the lateral flow of water.
The operators of the Kainji and Jebba reservoirs, Mainstream Energy Solutions (MESL), initiated a strategic spillway operation to control the volume of floods and to weaken the flood peaks.
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The resulting high inflows in the downstream Niger River have caused a breach to dyke systems at Sunti Golden Sugar Estates (SGSE).
According to FMN, the SGSE suffered some disruption to operations and delays in its 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, the company went further to say, “based on currently available information, the breach is not foreseen to impact the overall performance of the Group.”
FMN promised that management will release further details in due course as the need arises, and assured investors and other stakeholders, that there is no immediate threat to the earlier indicated earnings projections of Flour Mills of Nigeria Plc.
Sunti Golden Sugar Estates Limited is a Sub-subsidiary of Flour Mills of Nigeria Plc.
About the Company
Flour Mills of Nigeria Plc (The Company) was incorporated in Nigeria as a private limited liability Company on 29 September 1960 and was converted to a public liability company in November 1978. Its registered head office is located at 1 Golden Penny Place, Apapa, Lagos.
The Group is primarily engaged in flour milling, production of pasta, noodles, edible oil and refined sugar, production of livestock feeds, farming and other agro-allied activities, distribution and sales of fertilizer, manufacturing and marketing of laminated woven polypropylene sacks and flexible packaging materials, development of real estate properties for rental, operation of terminals A and B at the Apapa Port, customs clearing, forwarding agents, shipping agents and logistics.
Written by;
Nnamdi M.
