Prime Business Africa
After failing to generate revenue from its core business of salt refinement and distribution for over four years, Union Dicon reported that it earned N13.63 million in turnover in 2025.
While the resumption of revenue should elicit applause, the company incurred N23.09 million as cost of production to earn N13.63 million, indicating that cost gulped 169.41 percent of Union Dicon’s revenue, according to Prime Business Africa’s analysis.
Join our WhatsApp ChannelWith the company spending more than it earned, Union Dicon’s revenue reserves have depleted to N1.85 million in 2025, compared to the N1.94 million held between January and December 2024.
The 4.43 percent decline in Union Dicon’s revenue reserves leaves the company with less cash to fund expansion, cover unexpected losses, or stabilise dividend payments.
Union Dicon has been struggling with revenue generation from its core business, and is depending on other operating income (like rentals), which, by the way, declined to N292.36 million in 2025, from the N456.79 million earned the year before.
Fortunately for the company, as other operating income decreased, its administrative expenses also nosedived by 51.42 percent, according to Prime Business Africa’s analysis of Union Dicon’s unaudited financial statements for 2024.
For a company with low revenue generation and that depends largely on rentals for turnover, Union Dicon incurred N238.55 million as administrative expenses last year, against the N491.05 million expended in 2024.
However, the decline was not enough to save Union Dicon from a N17.10 million post-tax loss last year.
The company’s woes continued with its current liabilities exceeding its current assets, as the former closed 2025 at N14 billion and the latter at N12.27 billion.
In comparison, Union Dicon’s market rival, NASCON Allied Industries, closed the third quarter (Q3) of last year with N96.98 billion current assets and N41.42 billion current liabilities.
With Union Dicon’s current liabilities overshadowing its current assets, the company is on the path of negative working capital, which signals potential short-term liquidity problems.
In addition, while the company has cash and cash equivalents of N12.18 million, Union Dicon also recorded trade and other payables of N13.91 billion in 2025.
If the company continues to lose its income to expenses and does not improve its current asset value above its liabilities, they pose a higher risk of insolvency.
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Prime Business Africa is a business, economy and policy news platform founded in 2021 by veteran journalist and media scholar, Dr Marcel Mbamalu, after he left The Guardian as Editor.
Dr Mbamalu, who serves as Founder and Publisher, set up Prime Business Africa to deliver sharp, data-driven reporting on Nigeria’s markets, trade, investment, and governance trends for decision-makers, entrepreneurs, and policy leaders.
He also writes The Bottom Line, a backpage column for Punch Newspaper every Thursday.
Under his leadership, Prime Business Africa combines deep newsroom experience with a focus on accountability journalism, aiming to bridge information gaps between Africa’s private sector and the global economy.
