BUSINESS PLAN FOR ESTABLISHMENT OF A COCOA AND CASHEW NUT

SALES VENTURE

PREPARED FOR

GOLDEN HOPE SHIPPING AND LOGISTICS LIMITED

JANUARY 2019
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Table of Contents

1. Executive Summary 2

2. Company Summary 4

3. Product Description 6

4. Market Analysis Summary 7

5. Strategy and Implementation Summary 12

6. Organizational Structure 15

7. Financial Plan 19

8. Economic Analysis 23

1
1.0 Executive Summary

Golden Hope Shipping and Logistics is an indigenous business concern that

wishes to engage in the sale of cocoa beans and cashew nuts to exporting
companies in Nigeria. The Company wishes to expand its operations and
become a direct exporter of cocoa grown in Nigeria for exportation to
wholesalers on the international market. We intend to have a stock capacity of
300 metric tons per annum of cocoa beans and 240 tons per Annum of cashew
nuts and expand our capacity by 20% per year.

To actualize this vision The Company requires a loan of Nine million, Eight
Hundred and Fifty Thousand naira (N9, 850,000). The total funding required for
the project is approximately Ten million Four Hundred Thousand naira broken
down as follows:

ITEMS AMOUNT
Pre-operating Expenses 450,000.00
Opening Stock - Cocoa (1 month) 3,208,000
Opening Stock – Cashew Nuts (1 month) 5,000,000
Initial Operating Expenses -1 month 1,742,000
Total Startup Capital Estimated 10,400,000

We intend to provide twenty percent of the total funding needs amounting to

approximately Four Million naira and intend to repay the total loan sum
amounting to Twenty Three million naira in thirty six months exclusive of a
moratorium period of six months. Our funding plan is presented below.

FUNDING PLAN
SOURCES OF FUNDS AMOUNT %
Personal Fund /Equity 550,000 5%
Bank Loan 9,850,000 95%
Total Funds Sourced 10,400,000 100%

PROJECT PROMOTERS
The promoter of the project is Golden Hope Shipping and Logistics as represented
by Mr. Adesope Oluwabenga

2
NET PROFIT (PROFIT AFTER TAX)
The projected net profit for the first seven years of operation is as shown below:
(N’000)
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7
15,988, 16,886, 18,753,6 21,682,246 24,516,266 27,101,54 29,063,85
968.65 060.59 92.37 .23 .88 7.83 6.73

CASH FLOW
The cumulative cash balance for the first seven years of sale is as shown below:
(N’000)
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7
15,360,7 31,407,222 49,331,826.8 70,142,280.1 93,690,664. 118,178,782. 98,613,2
70.47 .96 3 3 44 54 54.30

CONCLUSION AND RECOMMENDATION

The project is ascertained to be both economically and socially desirable,
technically feasible, and financially viable. It is therefore recommended for
immediate implementation.

3
2.0 Company Summary

The Company is a Limited Liability Company registered in 2010 with

registration number RC 897681. Its corporate office is located at Okebode
street, Okeigbo, Ondo State.

Golden Hope Logistics plans to buy raw cocoa beans and cashew nuts in their
post-harvest stage from a network of farmers in our location (Ondo State,
Nigeria) and sell the product to wholesalers for onward export. The Company
also has its own 45 acres farm which is fully grown with cocoa with a harvested
capacity 9 tons per annum. We will therefore supplement this with purchases
from the open market to meet our target export capacity.

2.1 Company Ownership

The Company is a LLC with a shareholding structure as follows:

Ownership Structure

ShareCapital%NameContributionShareholding
1)AdesopeOluwagbenga 500000
2)AdesopeOlubukola 200000
3)AdesopeAkorede 100000
4)AdesopeOore-ofeoluwa 100000
5)Adesope Daniel 100000

Our keys to success are:

1. Establishing and maintaining working relationships and contractual

agreements with local cocoa farmers, brokers and wholesalers.
2. Ensuring prompt delivery and proper packaging to our customers
3. Increasing our profit margin through expanding our network of farmers,
brokers and wholesalers.
4. Effectively communicating to current and potential customers, through
targeted efforts, our position as a differentiated provider of the high quality
cocoa.

2.1 Objectives

The objectives of Golden Hope Shipping and Logistics are:

 Increase production and sale by 20% yearly the first year.

 Increase sales substantially in the first full year of operation.
 Establish strategic relationships with 10-15 importers in our first 6 months of
operations.
4
  Increase gross margins in the next three years.

2.2 Our Business Mandate

Vision Statement: To help Nigeria achieve its goals of being Africa’s top cocoa
producing and exporting nation.

Mission Statement: Establishing presence in all cocoa producing areas and

encouraging more cocoa production.

2.3 Company Locations and Facilities

Our corporate office and warehouse is located at Okebode street,

Okeigbo, Ondo State. It is well situated in the commercial hub of town with
excellent access to the highway leading out of town which will facilitate delivery
of our product to customers.

5
3.0 Product Description

Golden Hope Shipping and Logistics will deal exclusively in Cocoa beans and
cashew nuts. The cocoa bean, also called cacao bean, is the dried and
fully fermented seed of Theobroma cacao, from which cocoa solids and, because of
the seed's fat, cocoa butter can be extracted. The beans are the basis of chocolate
and related products. Beans in parchment are purchased directly from growers
and are de-husked and packaged into 60kg sacks in our warehouse. The final
product is suitable for sale and exportation.

Cashew in its natural form is a soft, white, meaty kernel contained within the hard
shells of kidney shaped, raw cashew nuts. Cashew nut is consumed all over the
world as a snack or included in confectionery or used as a food ingredient. Cashew
is a unique combination of fat, proteins, carbohydrates, minerals and vitamins.
Cashew contains 47% of fat, but 82% of this fat is unsaturated fatty acids. The
unsaturated fat content of cashew not only eliminates the possibility of the
increase of cholesterol in the blood, but also balances or reduces the cholesterol
level. Cashew also contains 21% proteins and 22% carbohydrates, and a right
combination of amino acids, minerals and vitamins. As such, nutritionally it stands
at par with milk, eggs and meat. As Cashew has a very low soluble sugar content
of 1%, the consumer of cashew is privileged to get a sweet taste without having to
worry about excess calories. Cashew nuts do not lead to obesity and can even help
to control diabetes.

3.2 Sourcing

Both our existing and future facilities are ideally located in Okeobo, in the state
of Ondo, Nigeria. Ondo State is the largest cocoa producing state in Nigerialand
beans produced in the region are of the highest quality. With additional
financing, we would be able to buy larger volumes at lower prices. We now buy
from one or more of six private growers or grower cooperatives. Contracts are
secured six months in advance of harvest. For cashew nuts we are in the
process of concluding on purchase agreements with a number of farms to
ensure ready supply of cashew nuts.

3.3 Technology

Improvements in technology will include the use of partially automated

selecting machines which will allow for increased production capacity with a
lower machine-to-operator ratio than we currently employ. Additional storage
capabilities will decrease shipping charges and will reduce the need for
permanent shipping employees by thirty-five percent. High-technology
information system upgrades will improve all aspects of business, especially
inventory control, tracking of shipments, and communication with clients in
import countries.
6
4.0 Market Analysis Summary

Cocoa

Cocoa is a fast selling agricultural commodity in the local and international

markets, reasons are obviously because of its major use in the food processing
industry.

Africa is the largest producer and supplier of cocoa to the international export
market, with countries like Ghana, Nigeria, Ivory Coast, playing a major role. The
top 10 countries producing cocoa in the world are:
1. Ivory coast ($3.75B)
2. Indonesia-
3. Ghana – $1.98B
4. Nigeria – $504M
5. Cameroon – $578M
6. Brazil
7. Ecuador – $742M
8. Mexico
9. Dominicis Republic
10. Peru

The worlds largest importers of cocoa are; The United states of America, Brazil,
Germany, Holland and the United Kingdom. These countries account for more than
2million tons per annum in demand broken down by purchase volume as follows:

1. USA- $1.38B
2. Netherland – $2.2B
3. France
4. United Kingdom
5. Belgium
6. Canada
7. Czech Republic
8. Italy
9. Malaysia – $728M
10. Germany – $886M

Here in Nigeria, the major states that produces cocoa are; Ondo,AkwaIbom, Abia,
Cross River, Delta, Ekiti, Edo, Oyo, Osun, Kogi, Kwara and Ebonyi State.

7
There has been an increase in the demand for cocoa in the international market
making the price of the commodity to increase here in Nigeria, nonetheless cocoa
still remains highly profitable in the export zones going for approximately $2000
per ton.

4.1 Market Analysis Summary – Cashew Nuts

The nuts market globally is expected to grow from the periods of 2015 to 2021 at
1.7% . As at 2014, the global nuts market was valued at $1,137.06 billion and it is
expected to reach $1,279.4 billion by 2021.
Volume wise, nuts and seeds in tons totaled 37.38 million as at 2014 and is
expected to reach 41.34 million tons as at 2021 at 1.40% CAGR during the stated
periods between 2015 and 2021. The value in kilograms was 4.41 billion as at
2014 but it is expected to reach 7.86 billion by 2021 at 7.70% Compound Annual
Growth Rate (CAGR) during the stated periods.
Product wise, the global nuts market according to its leading position is divided
into cashew nuts, peanuts, walnuts, almonds and macadamia nuts. Cashew nut for
instance has been leading other nuts globally from 2014 and is expected by 2021
to continue maintaining its leading position.
The past years have seen changes in the consumption patterns of nuts all over the
world as it has been found that nuts have a positive effect on the human body by
reducing heart disease, preventing diabetes and also reducing blood cholesterol.
This has led to a growing demand for genetically modified crops that will help meet
up with the global demand for these nuts.

4.1 Market Segmentation - Cocoa

The potential customer groups for Golden Hope Shipping and Logistics are local
wholesalers and manufacturers.

Chart: Market Analysis (Pie)

Sales
Local Wholesalers
Local Manufacturers

8
 4.2 Industry Analysis

Cocoa sales have been a growing industry in Nigeria for the past five years. The
most notable growth has been in the manufacturing sector where usage has
increased almost one-hundred percent and the market price has nearly
doubled. The number of bulk buyers has increased from a handful of well-
known companies to thousands of independent entities. There is a constant
struggle within this market to procure the best cocoa beans and serve one or
more niches within the larger market.

4.2.1 Competition and Buying Patterns

The purchase decision for our customer will be based on trust in our process
and bean selection. We will establish relationships with our customers which
extend beyond that of the buyer/seller. The Golden Hope label means that the
product has been chosen and packaged with the highest quality standards in
mind. This will ensure a steady order stream since our brand will be known for
high quality standards.

4.2.2 Main Competitors

There are over 400 registered dealers of cocoa beans as obtained from
tradekey.com website. Most of these concerns do not deal in cocoa alone but a
combination of agro products a model Golden Hope Logistics will also emulate
and will commence with our addition of cashew nuts to our product line. Some
of the most visible ones include:

 FTN Cocoa processors

 Saro Agro-Allied
 Tosmega Cocoa Nigeria Ltd.
 Akeem and Kamoru Nigeria Ltd
 Berveek Limited. ...
 Cocoa Products (Ile Oluji) Ltd.
 Remedy Crown Investment
 Shinwillcrown Cocoa Producing Company.

4.2.4 Distribution Patterns

All of the cocoa packaged for sale by Golden Hope Logistics will be sold at our
warehouse facility by off takers to desired locations. Transportation charges are
assumed by the buyers. Golden Hope Logistics will however provide logistics
support to buyers at extra cost.

9
 4.3 Demand Analysis – Cashew Nuts

Cashew nut is a commodity used locally as well as an export commodity and

highly demanded for in the USA, Japan, Australia, Canada and some European and
Middle East countries.

The cashew nut kernel is constituted of three different portions namely the shell,
the kernel and the adheringtesta. The primary product of cashew nuts is the
kernel, which is the edible portion of the nut and is consumed in three ways:

 Used directly by the consumer.

 Used as roasted and salted nuts.
 Used in confectionery and bakery products, for example, finely chopped kernels
are used in the production of sweets, ice creams, cakes and chocolates, both at
home and industrially and as paste to spread on bread.
The estimated relative importance of these uses varies from year to year and
country to country, but it is that at least 60 percent of cashew kernels are
consumed as salted nuts. Separately packed cashew nuts are a good selling line,
mainly as an appetizer to cocktail drinks. Salted cashews are part of the snack
food market. They compete mainly with other nuts, although chips, salted popcorn
and other savoury snacks can impinge on the nut market. The price of cashew
nuts is much higher than the price of peanuts or other snacks so those sales must
be based on a strong taste preference by the consumer. Cashew nuts are
generally considered a luxury product and an element of their appeal may lie in
this status.

Cashew is widely consumed across the world. This means there is market
everywhere. However the domestic market is important to our growth. Before we
can go global, the domestic market needs to be conquered. Hence our targets are
the domestic and the international market. The domestic market will provide the
launching pad. In the Nigerian market, we will target the general population.

10
5.0 Strategy and Implementation Summary

Our strategy is to ensure purchase and stocking capabilities in order to fulfill the
requests of buyers. In addition we will establish contracts with importers in target
markets and establish additional accounts through targeted marketing efforts.

5.1 Competitive Edge

Our competitive edge comes from the advantage of having established

relationships with local dealers and local cocoa and cashew growers, brokers and
wholesalers. We have received affirmation of the demand for our product in the
form of requests from dealers for larger product shipments. Ours is a superior
product offering because of the larger average size of the bean and because we
purchase from growers who rely on the use of chemicals and pesticides less than
two percent of the time. In addition, prompt preparation and shipment provides
importers with a product that is up to one month fresher than beans sold by many
exporters.

5.2 Strategy Pyramid

Our main strategy is to communicate the unique and desired attributes of our
cocoa and cashew nuts to larger segments of our target market. We sell a superior
product, yet one that can be considered a commodity. It is therefore important
that we effectively communicate the unique aspects which make it ideally suited
for a niche market.

The unique aspects of our products include superior product selection and
preparation, quality assurance, and efficient distribution. These are things we have
done since we started doing business. The tactics we will use to communicate
these strengths include, personal selling, targeted print advertising, and improved
communication capabilities via information system improvements and a
sophisticated website.

As tactics below the pyramid, we have identified three specialty publication in the
Nigeria dealing with agro products sales in which we will run print ads. We also
plan to carry out personal selling efforts to target local manufacturers. Part of the
personal selling will include invitations to manufacturers to visit our facilities, at
our expense.

5.3 Marketing Strategy

Our marketing strategy will include the use of targeted print media advertising and
direct selling to buyers in Nigeria as well as manufacturing concerns. We will
position ourselves as a differentiated provider of the highest quality cocoa beans

11
and cashew nuts. The primary goal of all marketing efforts will be to communicate
this to existing and potential customers.

5.3.1 Promotion Strategy

Relationships are key to success in the business. In addition to personal selling we

have identified several specialty publications within which print advertisements will
run. Direct mail, in the form of personal letters will also be used to communicate
with existing and potential clients.

5.3.2 Distribution Strategy

Distribution costs for internal sales are absorbed by the customer but distribution
costs for exports which is our long term goal are absorbed by us. Increasing the
volume of our stock makes us eligible to receive reduced fees and helps ensure
that trucks and are running at maximum capacity.

5.3.3 Marketing Programs

Our most important marketing program is in personal selling combined with

targeted direct mail and print advertising. The program is intended to establish
contractual agreements with at least 10 major dealers at inception, increase brand
awareness of our product in the target markets, and communicate our position as
a provider of the highest quality cocoa beans on the market.

Another key marketing program is the development of a sophisticated Website.

The goal of this program is to increase our presence on the World Wide Web and
provide additional means of communication and customer data collection.

5.3.4 Positioning Statement

For buyers of cocoa and cashew nuts Golden Hope Logistics will ensure its coffee
beans and cashew nuts are the highest quality and largest beans available. Unlike
many sellers, our beans and nuts will always meet acceptable quality standards
and will be shipped within one week of preparation to ensure the largest and
freshest beans and cashew nuts on the market.

5.3.5 Pricing Strategy

Because we will adhere to higher quality standards, the price of our cocoa and
cashew nuts will be equitable to standard rates on the world market.

12
5.4 Sales Strategy

Our strategy focuses first on meeting the demand from major dealers and end
users with whom we have established relationships for larger orders. These
dealers are critical to our ability to acquire additional accounts on without having
to spend a great deal on sales efforts. Secondly we will focus on increasing the
volume, while maintaining the percentage of sales, of beans and cashew nuts sold
to the market. When we have reached maximum sales to existing channels we can
then shift the majority of our focus to securing additional import accounts.

5.4.2 Sales Programs

Personal selling: Through personal contact we need to confirm in writing orders for
large quantities of our product from major dealers and end users. In addition we
need to establish sales agreements with at least six, possibly ten, importers at
commencement. The MD/CEOMr. Adesope Oluwabenga will be responsible for this
initial drive.

5.5 Strategic Alliances

Our most valued alliances are those we will develop with Nigerian manufacturers
(end users). They have the ability and willingness to purchase larger quantities of
our products and recommend us to other customers. Additional alliances with
trucking contractors are currently being established.

5.6 Milestones

The accompanying table shows specific milestones, with responsibilities

assigned, dates, and budgets. The milestones represented in this plan are those
which we have determined to be the most important.

Table: Milestones

Milestones

Milestone Start Date End Date

Secure Financing 1/1/2019 1/2/2019
Establish supply
1/6/2019 5/2/2019
chain

Totals

13
6.0 Organizational Structure

Golden Hope Logistics personnel consist of 11 full-time employees. Additional

assistance is acquired on a part-time basis and/or through the use of consultants,
specifically in legal matters. The Company will operate a simple hierarchical
structure as outlined in our organogram below:

Organization Structure
Managing Director

Marketing Account/Admin Quality Manager

Officer officer

Field officer Warehouse Head of Labour

Supervisor
Labour (unskilled)

6.1 Management Team

The Managing Director: who will oversee the entire business operation and daily
activities of The Company. The Managing Director (MrAdesopeOluwagbenga) was
the procurement and logistics manager of one of major exporters (Agro traders
Ltd) with headquarters in Alagbaka, AkureOndo State and the sister company
(Export Logistics Ltd) in Burma Road, Apapa, Lagos for many years. He is a
shipping expert and a chartered member of the Chartered Institute of Logistics
and Transport United Kingdom (MCILT).

Quality Manager: The quality manager is responsible for the entire warehousing
operations and the quality of the cocoa products. She also maintains the inventory
record of the product (cocoa) both inward and outward inventory she will also
supervise the activities of the field officer, and warehouse supervisor and head of

14
labour. She is graduate with more; than 10 years’ experience with
Agrotraders/Export logistics Ltd where she was trained as quality officer, while she
was there, she attended trainings and workshops organized by both Federal
Produce Inspection Service and State Produce Service.

Marketing/Purchasing Officer: Will work closely with the Managing Director in

actualizing our business targets by by researching and developing marketing
opportunities and plans; implementing sales plans; managing staff.

Account/Administrative Officer: He is to work directly with the Managing

Director, He is to prepare payment of the suppliers he prepares daily payment of
the laborers, He also keeps staff record and goes to bank for cash collection and
reconciliation of the company account. He will also keep the record of the
company’s assets. He is OND holder in Business Administration.

Support Staff
Warehouse Supervisor: The Warehouse Supervisor works indirectly with quality
manager but directly with warehouse Coordinator he takes instruct from the
warehouse supervisor while he passes this same to laborers. He is in-charge
loading and off-loading, weighing and bagging of the product and sundrying
processes. He also co-ordinates the laborers.

Labor (Unskilled Workers)

These personnel are responsible for sorting and loading the cocoa beans as
required. We will maintain a maximum of 4 permanent labor hands and engage
ad-hoc numbers as needed.
Security Officers (2): The officers work directly with Managing Director, they are
to work both days and nights, they are to secure the warehouse and its
environment. They receive and keep copy of way bill of product in and out of
warehouse.
15
The Company is therefore organized into three functional areas: product sourcing,
sales, and marketing; packaging and shipping; and finance and administration.

6.2 Personnel Plan

The personnel plan requires employees from 9 to 17-20 within the next three
years. Additional employees will also be added to increase administrative and
accounting support. One additional employee will be added to the sales and
marketing division. We will retain all current employees as they will not have to
relocate.

Table: Personnel Remuneration

Personnel Structure and Remuneration

SAL. /MONTH No. SAL./ ANNUM
CATEGORY
(₦) REQD. (₦'000)
Chief Executive Office 200,000 1 2,400,000
A: SALES      
Purchasing Officer 40,000 1 480000
B: MARKETING      
Sales Supervisor 80,000 1 960,000
C: ADMIN/ACCOUNTS      
Accounts/Admin Officer 50,000 1 600,000
Store Officer 30,000 2 360,000
Secretary/Receptionist 25,000 2 300,000
Driver 30,000 6 360,000
Loaders 18,500 1 222,000
Total (A+B+C)   131 5,682,000.00

16
7.0 Financial Model

7.1 Financial assumptions

 Assumption for Inflation: is assumed at 5% annually
 Assumption on Interest rate: is assumed at 5%
 Purchase cost for Cashew is N350,000 per ton
 Purchase cost for Cocoa is 600,000 per ton
 Sale price for cashew is N400,000 per ton
 Sale price for Cocoa is N700,000 per ton
 Target annual sales for Cashew is 250 tons
 Target annual sales for cocoa is 250 tons
 Assumption on Tax: is assumed at 30% of gross profit before tax
 Assumption on depreciation: Straight line depreciation method is adopted
because the value is divided by lifespan
 Assumption on Salary increment: it is assumed that workers salary will
increase by 5% at the end of the 1st year in business.
 Assumption on Insurance: insurance is assumed by 5% of equipment.

7.2 Capital Utilization Breakdown

Table 7.1:
Approximately Ten million Four Hundred Thousand naira broken down as
follows:

ITEMS AMOUNT
Pre-operating Expenses 450,000.00
Opening Stock - Cocoa (1 month) 3,208,000
Opening Stock – Cashew Nuts 5,000,000
Initial Operating Expenses -3 months 1,742,000
Total Startup Capital Estimated 10,400,000

7.3 Source of Funds

Table 7.2: Source of Funds

17
 SOURCES OF FUNDS AMOUNT %

Personal Fund /Equity 550,000 5%

Bank Loan 9,850,000 95%
Total Funds Sourced 10,450,000 100%

7.4 Security for loan

While we understand that our loan request category does not require a collateral
we are however willing to provide our farmland as well as other acceptable
security as collateral for the loan.

18
19
\
20
21
LOAN AMORTIZATION SCHEDULE  
MONT
BALANCE SCHEDULED PAYMENT PRINCIPAL INTEREST
H
10,000,000.00
40,741.2
1 10,000,000.00 140,817.87 100,076.63
4
40,333.5
2 9,899,923.37 140,817.87 100,484.35
1
39,924.1
3 9,799,439.02 140,817.87 100,893.74
3
39,513.0
4 9,698,545.28 140,817.87 101,304.79
7
39,100.3
5 9,597,240.49 140,817.87 101,717.52
5
38,685.9
6 9,495,522.97 140,817.87 102,131.93
4
38,269.8
7 9,393,391.04 140,817.87 102,548.03
4
37,852.0
8 9,290,843.01 140,817.87 102,965.82
4
37,432.5
9 9,187,877.18 140,817.87 103,385.32
5
37,011.3
10 9,084,491.87 140,817.87 103,806.52
4
36,588.4
11 8,980,685.34 140,817.87 104,229.44
2
36,163.7
12 8,876,455.90 140,817.87 104,654.09
8
35,737.4
13 8,771,801.82 140,817.87 105,080.46
1
35,309.3
14 8,666,721.36 140,817.87 105,508.57
0
34,879.4
15 8,561,212.78 140,817.87 105,938.43
4
34,447.8
16 8,455,274.36 140,817.87 106,370.03
3
34,014.4
17 8,348,904.33 140,817.87 106,803.40
7
33,579.3
18 8,242,100.93 140,817.87 107,238.53
4
33,142.4
19 8,134,862.40 140,817.87 107,675.43
4
32,703.7
20 8,027,186.97 140,817.87 108,114.11
5
32,263.2
21 7,919,072.86 140,817.87 108,554.58
8
31,821.0
22 7,810,518.28 140,817.87 108,996.85
2
31,376.9
23 7,701,521.43 140,817.87 109,440.91
5
30,931.0
24 7,592,080.51 140,817.87 109,886.79
8
30,483.3
25 7,482,193.72 140,817.87 110,334.48
8

22
 30,033.8
26 7,371,859.24 140,817.87 110,784.00
7
29,582.5
27 7,261,075.24 140,817.87 111,235.35
2
29,129.3
28 7,149,839.89 140,817.87 111,688.53
3
28,674.3
29 7,038,151.36 140,817.87 112,143.57
0
28,217.4
30 6,926,007.79 140,817.87 112,600.45
1
27,758.6
31 6,813,407.34 140,817.87 113,059.20
6
27,298.0
32 6,700,348.14 140,817.87 113,519.82
5
26,835.5
33 6,586,828.32 140,817.87 113,982.31
5
26,371.1
34 6,472,846.01 140,817.87 114,446.69
8
25,904.9
35 6,358,399.31 140,817.87 114,912.96
1
25,436.7
36 6,243,486.35 140,817.87 115,381.13
4
24,966.6
37 6,128,105.22 140,817.87 115,851.21
6
24,494.6
38 6,012,254.02 140,817.87 116,323.20
7
24,020.7
39 5,895,930.82 140,817.87 116,797.11
5
23,544.9
40 5,779,133.70 140,817.87 117,272.96
1
23,067.1
41 5,661,860.74 140,817.87 117,750.75
2
22,587.3
42 5,544,110.00 140,817.87 118,230.48
9
22,105.7
43 5,425,879.52 140,817.87 118,712.16
0
21,622.0
44 5,307,167.36 140,817.87 119,195.81
6
21,136.4
45 5,187,971.55 140,817.87 119,681.43
4
20,648.8
46 5,068,290.12 140,817.87 120,169.03
4
20,159.2
47 4,948,121.10 140,817.87 120,658.61
6
19,667.6
48 4,827,462.49 140,817.87 121,150.19
8
19,174.1
49 4,706,312.30 140,817.87 121,643.77
0
18,678.5
50 4,584,668.53 140,817.87 122,139.36
1
18,180.9
51 4,462,529.17 140,817.87 122,636.97
0
17,681.2
52 4,339,892.20 140,817.87 123,136.61
6
17,179.5
53 4,216,755.59 140,817.87 123,638.28
8
54 4,093,117.31 140,817.87 124,142.00 16,675.8
23
 7
16,170.1
55 3,968,975.31 140,817.87 124,647.77
0
15,662.2
56 3,844,327.54 140,817.87 125,155.60
7
15,152.3
57 3,719,171.94 140,817.87 125,665.50
7
14,640.3
58 3,593,506.44 140,817.87 126,177.48
9
14,126.3
59 3,467,328.97 140,817.87 126,691.54
3
13,610.1
60 3,340,637.43 140,817.87 127,207.70
7
13,091.9
61 3,213,429.73 140,817.87 127,725.96
1
12,571.5
62 3,085,703.77 140,817.87 128,246.33
4
12,049.0
63 2,957,457.45 140,817.87 128,768.82
5
11,524.4
64 2,828,688.63 140,817.87 129,293.44
3
10,997.6
65 2,699,395.19 140,817.87 129,820.20
7
10,468.7
66 2,569,574.99 140,817.87 130,349.10
7
9,937.7
67 2,439,225.89 140,817.87 130,880.16
1
9,404.4
68 2,308,345.74 140,817.87 131,413.38
9
8,869.0
69 2,176,932.35 140,817.87 131,948.77
9
8,331.5
70 2,044,983.58 140,817.87 132,486.35
2
7,791.7
71 1,912,497.23 140,817.87 133,026.12
5
7,249.7
72 1,779,471.11 140,817.87 133,568.08
9
6,705.6
73 1,645,903.03 140,817.87 134,112.25
1
6,159.2
74 1,511,790.78 140,817.87 134,658.64
2
5,610.6
75 1,377,132.14 140,817.87 135,207.26
1
5,059.7
76 1,241,924.88 140,817.87 135,758.11
6
4,506.6
77 1,106,166.76 140,817.87 136,311.21
6
3,951.3
78 969,855.56 140,817.87 136,866.55
1
3,393.7
79 832,989.00 140,817.87 137,424.17
0
2,833.8
80 695,564.84 140,817.87 137,984.05
2
2,271.6
81 557,580.79 140,817.87 138,546.21
5
1,707.2
82 419,034.57 140,817.87 139,110.67
0
24
 1,140.4
83 279,923.91 140,817.87 139,677.42
4
571.3
84 140,246.48 140,817.87 140,246.48
8

ECONOMIC ANALYSIS
The project has indicated positive economic contribution to the overall
development of the national economy. In terms of employment, about 9 additional
persons will be gainfully engaged by the project. The employees are expected to
earn about N5.6 million in year 1, rising to N6.9 million in year 5. This will boost
national income and the multiplier effect on the economy is significant. In terms of
tax revenue to the government, the project promises to return a tax of about N5.2
million to government coffers in the first year of its operation. By the 5 th year, tax
return will rise to over N6.6 million. This is, no doubt, a positive contribution to
government revenue and its impact on national development cannot be assumed
away.
CONCLUSION/RECOMMENDATION

25
From the foregoing, therefore, there is no doubt that the project is commercially
profitable and its execution will be highly financially rewarding. We therefore
strongly recommend that the project be implemented without further delay. We
envisage no obstacle in attracting necessary funding in view of its apparent
attractiveness.

26