THE Transnational Corporation of Nigeria Plc, a publicly traded company under the name Transcorp, reported a 63.08 per cent decline in profit after tax (PAT) to N1.86 billion in the first quarter (Q1) of the year, from the N5.04 billion the company posted in the same period of 2022.

Many businesses had been adversely affected by the naira redesign policy of the Central Bank of Nigeria (CBN) in the first quarter.

The apex bank had in October 2022 announced its plan to phase out designs of the N200, N500 and N1,000 notes, and introduced new designs into circulation, arguing it would help check counterfeiting, strengthen the economy, fight banditry, curb vote-buying in the general elections, and reduce the expenditure on cash management.

However, the redesign policy, experts said, had done more damage to the economy, paralysing business activities.

“The entire exercise was a needless disruption of economic growth activities, especially among the most vulnerable segments of the economy,” the Chief Executive Officer of the Centre for the Promotion of Private Enterprises (CPPE), Muda Yusuf, told The ICIR.

A look at Transcorp’s unaudited financial statements for the period ended 31 March 2023 showed that the company reported losses across all its main profit indicators.

A diversified conglomerate with investments in the hospitality, power, and oil and gas sectors, Transcorp’s profit before tax (PBT) also fell sharply by 50.18 per cent to N2.85 billion in the first quarter this year, from N5.73 billion in the first quarter of 2022.

READ MORE HERE: https://www.icirnigeria.org/transcorps-net-profit-drops-63-08-amid-strained-naira-redesign-policy/

Buhari and Emefiele needs to be sued for the losses suffered during the cash crunch. They ought not to just get away with their acts