The Nigerian-British Chamber of Commerce (NBCC) reduced its total liabilities by 24 percent to N123 million in 2023 to reduce its financial risk.
David Brown, treasurer of NBCC, disclosed this at the chamber’s 45th Annual General Meeting last Thursday in Lagos.
“Total liabilities decreased to N123 million from N162 million in the previous year reflecting our drive to reduce finance risk by repaying borrowings and reducing obligations to suppliers,” he said while adding that the prudent application of funds led to more than 50 percent reduction in the firm’s gearing ratio.
The firm’s gearing ratio, which is a measure of financial leverage that indicates the degree to which its operations are funded by equity versus creditor financing, reduced to 11 percent in 2023 from 26 percent in 2022.
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Ray Atelly, president and chairman of the council of NBCC said, “When I assumed office in July 2023, we had N85.5 million plaza liabilities and N29 million other liabilities. This means we inherited N105 million in liabilities in total.
“My administration however decided that these liabilities have to be cleared as soon as possible. Today, only a total of N43.6 million is left to be paid. Some of our contractors are completely paid.
“My administration remains focused on paying off all outstanding debts arising from the construction or financing of the NBCC Plaza,” Atelly said.
NBCC generated a total income of N272 million, indicating a 16 percent increase from N234 million in 2023.
The president said “This growth was primarily driven by higher revenues from our program and events which now make up 75 percent of total revenue in 2023 compared to 68 percent in 2022.
“We also experienced an 84 percent growth in rental and other income as we continue to leverage our new headquarters facilities in Lagos,” he stated.
