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Manufacturing Contribute N6.16bn to GDP

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SABMiller Nigeria

The contribution of the manufacturing sector to the nation’s Gross Domestic Product rose to N6.616bn in the third quarter of last year, statistics from the National Bureau of Statistics indicated.

An analysis of the nine month revenue showed that the sector added N2.141bn to the economy in the first quarter; N2.125bn in the second quarter; and N2.35bn in the third quarter.

The figures also showed that the manufacturing sector surpassed the oil and gas industry by N1.93bn during the nine month period.

For instance, while the report, which was obtained on Friday, indicated that the manufacturing sector contributed N6.616bn in the months under review, the oil and gas added N4.677bn to the economy.

However, this is in contrast with the output of the oil and gas industry in 2014, which added N7.574bn, an amount that was N1.093bn higher than the contribution of the manufacturing sector for that year.

The manufacturing activities captured in the data are the oil refinery, cement, food, beverage and tobacco; textile, apparel and footwear; wood and wood products; pulp, paper and paper products; as well as chemical and pharmaceutical products.

Others are the non-metallic products; plastic and rubber products; electrical and electronics; basic metal, iron and steel; motor vehicles and assembly among others.

But the major revenue earners for the sector were given as food, beverage and tobacco, which contributed N3.15bn during the first three quarters of 2015.

It was reported that the exploration of petroleum and natural gas was becoming unprofitable due by the declining price of crude oil in the international market, which was almost equal to the cost of production.

Since the gradual fall in the price of crude oil in the international market from $114 in June 2014 to around $29 per barrel currently, the revenue generation ability of the industry has been in jeopardy.

Despite this gap between the two sectors, the organised private sector lamented that the 2015 financial year was one of the most challenging as difficulties in the business environment. Experts listed some of the problems as insecurity in parts of the country, weak infrastructure, foreign exchange restrictions, funding constraints, policy inconsistency and the quality of regulatory institutions.

The Lagos Chamber of Commerce and Industry said that the sector lost about N1.46tn in stalled business activities in the fast moving consumer goods, steel, furniture, pharmaceuticals and manufacturing sectors due to forex shortages.

The Manufacturers Association of Nigeria also identified the high cost of credit, poor power supply, high cost of alternative energy and non-availability of local input material as major challenges to the growth of the sector.

It stated, “The average cost of borrowing charged to manufacturers during the period was high and at double digit, which is discouraging to further investment or re-tooling in the manufacturing activities.”

The Director-General, Nigeria Employers’ Consultative Association, Mr. Olusegun Oshinowo, urged the government to give more attention to refining the petroleum products to improve the performance of the manufacturing sector.

In spite of the poor state of the economy, he said that government should not abandon any of its business-enhancing policies.

“For example, we used to have backward integration programme in Nigeria. The purpose of which is to encourage industries to source raw material from the economy, but the government has abandoned that policy and everyone is importing. Irrespective of the state of the economy, you must be clear about the quality of your policy, the outcome of your policy and stay consistent to your policy.

“The local content law in the oil and gas has positive impact. If in the same vein the government had come up with a policy that will promote forward integration in the oil and gas, the output from that sector and its contribution to the GDP would have been significant. Years back, if we had embraced a policy of refining our crude oil, it would have expanded and created more employment than what we have now. It would have saved foreign exchange and earned more for us.”

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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Toyota Marks 25th Anniversary of Sienna, Lauches Limited Edition

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Toyota

Toyota launches Sienna 2023 to celebrate the model’s first quarter-century of popularity with a limited edition to mark its 25th Anniversary.

The ultra-sporty XSE model, on which the Toyota 25th Anniversary Edition is based, features dark 20-inch split-5-spoke wheels, bolder front and rear bumpers, black-painted caps, and a sport-tuned suspension that is exclusive to the XSE. The XSE Plus Package adds roof rails, Premium Audio with JBL speakers and GPS, wireless charging, and a 1500-watt converter to the Sienna 25th Anniversary Edition, which is available in front-wheel drive or all-wheel drive.

The Sienna 25th Anniversary Edition is available in Celestial Silver and Wind Chill Pearl, both of which are appropriate for the occasion. The two exterior colors are accented by special black badging and exterior trim, including mirror caps and shark fin antenna.

The external mirrors with memory, auto-dimming, puddle lights, power-fold, and reverse-tilt down function are among the amenities added to this celebratory model from the Limited grade.

The Limited additionally includes heated and ventilated front seats with memory, as well as black leather-trimmed seating with silver-colored stitching.

Onboard comfort is enhanced by the Limited’s memory steering column and second-row seats with ottomans, while lighted door sills greet front passengers.

A customized black key fob cover with silver-colored stitching bears a “25th Anniversary” logo, and special “25th Anniversary” floormats pamper the feet.

Also, the Toyota Audio systems in the 2023 Sienna provide a plethora of connectivity and entertainment options, with something for everyone. The LE grade’s base Toyota Audio system comes with a 9-inch touchscreen, six speakers, Android AutoTM, Apple CarPlay, and Amazon Alexa compatibility, seven USB media ports, hands-free phone capability, and music streaming via Bluetooth wireless technology, SiriusXM with a 3-month Platinum Plan trial subscription, Safety Connect with a 1-year trial, and Wi-Fi Connect with up to 3 GB within a one-month trial.

When minivans initially became popular in the 1980s and 1990s, Toyota first imported its rear-drive Van and then the more market-friendly Previa. Meanwhile, Toyota was working on a far more focused entry, the Sienna, which debuted in 1998.

The Sienna has shown to be right on target for the market, evolving to a degree of family car perfection with each design iteration.

Toyota as a brand has retained a great lead in car sales globally despite chip shortages. Investors King explained that in 2021 Toyota surged by 10.1 percent, beating its German counterpart, Volkswagen, and Electric Vehicle, Tesla to having the highest sales record in the world.

Investors King gathered that maintaining the top sales record for two years in a row, Toyota Motor Co. stated that it sold 10.5 million vehicles in 2021, including those by affiliates Daihatsu Motors and Hino Motors. That is 5 percent fewer than the number sold in 2020, its lowest sales figures in 10 years, and more than 8.88 million vehicles delivered by Volkswagen AG within the same year.

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Fidelity Bank Partners Edo State and GIZ to Host CBN RT200 FX Exports Roundtable and Sensitisation Workshop 

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Leading financial institution, Fidelity Bank Plc, has announced plans to host an exports roundtable and policy sensitisation workshop for businesses in Benin-City, Edo State capital in partnership with the Edo State Investment Promotion Office (ESIPO) and GIZ on Tuesday, 24 May 2022.  

The event, which would be the fourth edition of the bank’s CBN RT200 FX Sensitization seminars following successful outings in Kano, Ondo and Plateau States in February, March and April 2022 respectively, is part of the bank’s initiatives to help importers pivot to exports.

According to the Divisional Head, Export and Agriculture, Fidelity Bank Plc, Isaiah Ndukwe, Fidelity Bank’s decision to partner ESIPO and GIZ is borne out of the need to help exporters to build their business management capacity and is further proof of the value the bank provides to export-oriented businesses in Nigeria.

“At Fidelity Bank we are known for empowering our customers with the necessary financial and non-financial services to upscale their businesses. We consider the CBN RT200 FX scheme an amazing opportunity for businesses to bolster their FX earning capacity and we are delighted to collaborate with ESIPO and GIZ to host businesses in and around Benin City to a workshop to help them take advantage of the scheme”, explained Ndukwe.

Launched on February 10, 2022, by the Central Bank of Nigeria (CBN) as part of measures to reduce the increasing demand for foreign currency by importers, the RT200 FX scheme is designed to help Nigeria achieve $200 billion in FX repatriation from non-oil exports over the next five years. The policy has been hailed by stakeholders in the export sector as an initiative capable of stimulating the growth of non-oil exports in Nigeria.

“The goal of the roundtable is to identify and promote viable non-oil export opportunities, provide financing options, and proffer steps to removing the identified bottlenecks in the export process for non-oil products from Edo State to the global market. It will provide a platform for the exporters to meet with the export regulatory bodies and express their challenges which hinder exports. The event will also serve as an opportunity for the regulatory agencies to address the challenges on the spot and provide solutions to them with a view of enhancing Nigeria’s capacity in the African Continental Free Trade Area deal”, commented Marcus Unuebho of the Business Development Support and Export Unit, ESIPO.

On his part, the Technical Advisor for Edo State, Local Economic and Value Chain Development, GIZ SEDIN, Nosakhare Omon Aigiomawu stated that, “Micro, Small and Medium Enterprises are the drivers of local economic development. Collaborating to provide market linkages and access to finance would address major constraints to these groups and ensure more employment creation as well as higher income”.

Fidelity Bank is a full-fledged commercial bank operating in Nigeria with over 6.5 million customers serviced across its 250 business offices and digital banking channels. The bank was recently recognized as the Best SME Bank Nigeria 2022 by the Global Banking & Finance Awards. The bank has also won awards for the “Fastest Growing Bank” and “MSME & Entrepreneurship Financing Bank of the Year” at the 2021 BusinessDay Banks and Other Financial Institutions (BAFI) Awards.

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SMEs

Bank of Industry Disburses N213.63bn to Over 30,000 Businesses in 2021

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small-business

The Bank of Industry (BOI) has revealed that it disbursed a total of N213.63 billion to 30,406 businesses in Nigeria in the 2021 financial year.

The Managing  Director of BOI, Olukayode Pitan disclosed this at the 62nd Annual General Meeting (AGM) of the bank on Thursday in Abuja. He said that the bank was able to successfully scale up its developmental impacts in 2021 despite the challenges and limitations caused by COVID-19.

Pitan said “at the peak of COVID-19 in 2020, the bank took steps to support customers with a two per cent reduction in interest rates for a year alongside an extension of loan tenors and moratoriums. He said that the operating environment improved in 2021 and that is the reason they have decided to extend the incentives until March 31, 2022.”

He added that all ongoing projects were reviewed to assess emerging risks and opportunities and also additional support was provided.

“In the year under review, the bank disbursed a total of N213.63 billion to 30,406 Nigerian enterprises through both direct and indirect methods. This represents a 47.3 per cent increase over disbursements in 2020.

“The 2021 disbursements include N2.99billion to 22,120 farmers through our smallholder  farmers on  lending product and one billion Naira to 4,000 micro-retailers through our MSMEs distributor finance programme.

“At BoI, we have since taken measures to ensure that our systems, processes and people are continuously equipped to meet the evolving business environment.

“Today, we are a more agile and adaptive institution,  able to provide the necessary developmental support for Nigeria’s real sector in an ever-changing economy.

“Our commitment to building a resilient organisation that can respond to the needs of our customers and operating challenges is unwavering.

“We strongly believe that we can achieve this with the continuous support of the stakeholders.” he further said. 

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