‘We remain committed to delivering sustainable growth, creating long-term shareholder value’
AMINU ADO, chairman, IMG Nigeria Plc, speaks on the company’s performance in 2025, factors behind significant growth in shareholders’ equity, strategic importance of the Sagamu expansion project, and outlook for Nigeria’s industrial and medical gases sector, writes IHEANYI NWACHUKWU.
AMINU ADO, chairman, IMG Nigeria Plc, speaks on the company’s performance in 2025, factors behind significant growth in shareholders’ equity, strategic importance of the Sagamu expansion project, and outlook for Nigeria’s industrial and medical gases sector, writes IHEANYI NWACHUKWU. Excerpts
IMG doubled shareholders’ equity in 2025. What drove this remarkable achievement?
The growth in equity reflects disciplined financial management, prudent capital allocation, retained earnings, and the strengthening of our asset base. It demonstrates our commitment to building long-term shareholder value and ensuring the company has the financial capacity to pursue expansion opportunities, including strategic investments in infrastructure and production capacity.
How has foreign exchange volatility affected the industrial gases industry, and what measures can help address this challenge?
Foreign exchange (FX) volatility has a significant impact on the industry because many critical production assets, spare parts, cylinders, and engineering components are sourced internationally. Sharp currency movements increase replacement costs, affect capital expenditure plans, and create uncertainty in long-term business planning. Continued efforts to stabilise the foreign exchange market, improve foreign currency liquidity, and support local manufacturing of industrial inputs would greatly enhance industry competitiveness and investment confidence.
Your company’s revenue grew only marginally from N8.38 billion to N8.45 billion in 2025, while Profit After Tax declined from N1.62 billion to N990 million. Should shareholders be concerned?
While revenue increased modestly from N8.38 billion to N8.45 billion in 2025 and Profit After Tax declined from N1.62 billion to N990 million, these results should be viewed within the context of a challenging operating environment.
The year was marked by persistent inflationary pressures, foreign exchange adjustments, rising energy costs, and heightened competition in the industrial and medical gases market. In addition, industry capacity expansions by competitors and some customers pursuing backward integration created further market pressures.
Despite these challenges, IMG successfully maintained growth, protected its market share, and demonstrated the strength of its customer relationships, product quality, and operational resilience. Shareholders can take confidence in the fact that the Company remained profitable, generated strong cash flows, strengthened its balance sheet, and continued to enhance shareholder value.
Management has already implemented targeted cost-efficiency initiatives and strategic pricing measures aimed at improving margins and profitability. While the short-term environment impacted earnings performance, the Company remains focused on sustainable long-term growth rather than pursuing volume growth at any cost. We are confident that these actions, combined with our strong market position, will support improved financial performance and create lasting value for shareholders in the years ahead.
What message would you like to give shareholders regarding the outlook for 2026?
We enter 2026 with cautious optimism. While inflationary and exchange-rate pressures may persist, IMG is financially stronger, operationally resilient, and strategically positioned for growth. Our priorities include completing key capital projects such as the Sagamu expansion, improving efficiency, expanding markets, and deepening customer relationships. We remain committed to delivering sustainable growth, creating long-term shareholder value, and maintaining our leadership position in the industrial and medical gases sector.
What specific actions should the government take to support the growth of the industrial and medical gases sector?
Government can play a critical role by improving power infrastructure, expanding access to affordable energy, strengthening transportation networks, and creating a more predictable regulatory environment. Policies that encourage local manufacturing, support industrialisation, and provide incentives for capital investment would also help accelerate sector growth. In addition, easier access to long-term financing for industrial projects would encourage operators to invest in new plants, technology upgrades, and capacity expansion, ultimately supporting job creation and economic development.
The industrial gases market is becoming more competitive. How does IMG intend to maintain its leadership position?
Our leadership is built on decades of industry expertise, a strong safety culture, superior product quality, and long-standing customer relationships. Going forward, we will continue investing in production capacity, innovation, customer service, and operational excellence. We believe these strengths, combined with our reputation for reliability, will enable us to maintain and strengthen our market leadership.
Can you provide an update on the Sagamu factory project and its strategic importance?
The Sagamu facility represents one of the most significant growth investments in IMG’s recent history. Once completed, it will expand our production capacity, improve supply efficiency, enhance service delivery to customers across key industrial corridors, and support future market expansion. The project aligns directly with our long-term growth strategy and demonstrates our confidence in the future potential of the Nigerian market.
How will the Sagamu expansion impact revenue and profitability in the coming years?
The expansion is expected to increase production capacity, improve economies of scale, reduce logistics costs, and enable us to serve a broader customer base. While major capital projects require upfront investment, we expect the facility to contribute meaningfully to revenue growth, operational efficiency, and profitability over the medium to long term.
How is IMG managing risks associated with exchange rate volatility and inflation?
Risk management remains a key Board priority. We continue to focus on operational efficiency, prudent procurement practices, strategic pricing, local sourcing where possible, and disciplined financial management. We have also strengthened our business continuity framework and regularly review our risk mitigation strategies to ensure resilience in a dynamic economic environment.
Safety remains a major focus for industrial gas companies. What were IMG’s achievements in this area during 2025?
