Despite a challenging operating environment characterised by inflation, foreign-exchange volatility, rising energy costs, and intensifying competition, Industrial & Chemical Gases (IMG) Nigeria Plc remains focused on growth and long-term value creation.
In this interview, the Chairman of IMG Nigeria Plc, Mr. Aminu Ado, discusses the company’s 2025 performance, the factors behind the significant growth in shareholders’ equity, the strategic importance of the Sagamu expansion project, and the outlook for Nigeria’s industrial and medical gases sector.
He also shares his views on economic reforms, industry challenges, sustainability initiatives, and the role of industrial gases in supporting Nigeria’s industrialisation agenda.
Ques: 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.
Ques: 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.
Ques: How has foreign exchange volatility affected the industrial gases industry, and what measures can help address this challenge?
Foreign exchange volatility has had 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.
Ques: Revenue grew only marginally from ₦8.38 billion to ₦8.45 billion in 2025, and Profit After Tax declined from ₦1.62 billion to ₦990 million. Should shareholders be concerned?
While revenue increased modestly from ₦8.38 billion to ₦8.45 billion in 2025 and Profit After Tax declined from ₦1.62 billion to ₦990 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.
Ques: 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.
Ques: 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.
Ques: 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.
Ques: 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.
Ques: Safety remains a major focus for industrial gas companies. What were IMG’s achievements in this area during 2025?
Safety is non-negotiable at IMG. We are pleased to report zero fatalities during the year. We strengthened our SHEQ systems through regular audits, employee training, process improvements, and strict compliance with international standards, including FSSC 22000 and ISO frameworks. We also advanced the implementation of the ISO 22301 Business Continuity Management System, further enhancing operational resilience.
Ques: What progress has IMG made regarding Environmental, Social, and Governance (ESG) initiatives?
During 2025, we developed a structured ESG framework aligned with our corporate values and strategic objectives. We are integrating ESG considerations into our operations, strengthening governance processes, and preparing for enhanced ESG disclosures. Our goal is to ensure that sustainability remains an integral part of how we create value for stakeholders.
Ques: What impact do recent economic reforms and Nigeria’s removal from the FATF Grey List have on IMG?
These developments are positive for the broader economy and business environment. Improved investor confidence, enhanced financial system credibility, and greater access to capital can support industrial growth and economic activity. While challenges remain, we believe these reforms create a stronger foundation for long-term economic expansion, which should benefit companies like IMG.
Ques: 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.
Ques: What are the biggest challenges currently facing operators in Nigeria’s industrial and medical gases sector?
The sector continues to face several structural challenges, including high energy costs, foreign exchange constraints, inflationary pressures, logistics bottlenecks, and infrastructure deficiencies. Industrial gas production is energy-intensive, and fluctuations in power availability and energy prices significantly affect operating costs. In addition, the cost of importing specialised equipment and spare parts remains elevated due to exchange rate pressures. Despite these challenges, operators continue to invest in capacity and technology to support Nigeria’s industrial growth.
Ques: What role can the industrial and medical gases industry play in Nigeria’s industrialisation agenda, and how can the government unlock that potential?
Industrial and medical gases are essential inputs for manufacturing, healthcare, oil and gas, steel, food processing, construction, and technology sectors. As Nigeria pursues industrialisation and economic diversification, demand for gases such as oxygen, nitrogen, argon, carbon dioxide, and specialty gases will continue to grow. Government can unlock the sector’s full potential by prioritising industrial infrastructure, supporting domestic production, encouraging investment in manufacturing clusters, and promoting policies that attract both local and foreign investment. A thriving industrial gases sector is a key enabler of broader industrial growth and national economic competitiveness.
