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Nigeria’s Manufacturing Index Sustains Decline



  • Nigeria’s Manufacturing Index Sustains Decline

The Manufacturing Purchasing Managers’ Index (PMI) stood at 47.7 index points in March 2017, indicating decline in the manufacturing sector for the third consecutive month, but at a slower rate.

The PMI reflects the economic health of the manufacturing sector. The PMI is based on five major indicators: new orders, inventory levels, production, supplier deliveries and the employment environment.

According to the latest PMI report for March, posted on the Central Bank of Nigeria’s (CBN) website, 13 of the 16 sub-sectors reported declines in the review month in the following order: primary metal; transportation equipment; plastics and rubber products; electrical equipment; paper products; printing and related support activities; petroleum and coal products; non-metallic mineral products; furniture and related products; cement; fabricated metal products; computer and electronic products; and chemical and pharmaceutical products.

However, the appliances and components; food, beverage and tobacco products; and textile, apparel, leather as well as footwear sub sectors reported expansion in the review period.

But the production level index for manufacturing sector expanded in March 2017.

The index at 50.8 points indicated an expansion in production level as compared to contraction in the previous month. Seven manufacturing sub-sectors recorded increase in production level during the review month in the following order: appliances & components; petroleum & coal products; textile, apparel, leather & footwear; food, beverage & tobacco products; cement; computer & electronic products; and furniture & related products.
The non-metallic mineral products sub-sector remained unchanged, while the primary metal; transportation equipment; electrical equipment; plastics & rubber products; paper products; chemical & pharmaceutical products; printing & related support activities; and fabricated metal products recorded declines in production in March 2017.

At 45.6 points, the index declined for the third consecutive month but at a slower rate when compared to the level achieved in February 2017. Twelve sub-sectors recorded declines in the following order: primary metal; plastics & rubber products; petroleum & coal products; printing & related support activities; electrical equipment; transportation equipment; computer & electronic products; paper products; fabricated metal products; furniture & related products; cement; and non-metallic mineral products. The remaining four sub-sectors grew in the following order: appliances & components; food, beverage & tobacco products; textile, apparel, leather & footwear; and chemical & pharmaceutical products.

Similarly, at 51.3 index points, the supplier delivery time index for the manufacturing sub-sectors improved in March 2017. Nine sub-sectors recorded improved suppliers’ delivery time in the following order: computer & electronic products; electrical equipment; paper products; plastics & rubber products; chemical & pharmaceutical products; primary metal; printing & related support activities; food, beverage & tobacco products; and fabricated metal products.

The appliances & components; petroleum & coal products; and transportation equipment sub-sector remained unchanged, while the cement; textile, apparel, leather & footwear; furniture & related products; and nonmetallic mineral products sub-sectors recorded declines in delivery time in March 2017.

Employment level index in March 2017 stood at 43.6 points, indicating a decline in employment level for 25 consecutive months.

However, the index declined at a slower rate when compared with the level in the preceding month. Of the 16 sub-sectors, 15 recorded declines in the following order: electrical equipment; primary metal; petroleum & coal products; transportation equipment; non-metallic mineral products; cement; chemical & pharmaceutical products; paper products; furniture & related products; plastics & rubber products; computer & electronic products; fabricated metal products; textile, apparel, leather & footwear; printing & related support activities; and food, beverage & tobacco products. The appliances & components sub-sector recorded growth during the review period.

In the same vein, at 49.1 points, the raw materials inventory index declined for the third consecutive months. Of the 16 sub-sectors, nine recorded declines in raw materials inventories in the order: paper products; plastics & rubber products; non-metallic mineral products; computer & electronic products; printing & related support activities; petroleum & coal products; electrical equipment; furniture & related products; and chemical & pharmaceutical products. The cement and primary metal sub-sectors remained unchanged, while the remaining five sub-sectors recorded increase in inventories in the order: transportation equipment; appliances & components; textile, apparel, leather & footwear; food, beverage & tobacco products; and fabricated metal products.

The composite PMI for the non-manufacturing sector declined for the 16 consecutive months. The index stood at 47.1 points, indicating a slower decline when compared to the 44.5 points in February 2017. Of the 18 non-manufacturing sub-sectors, 11 recorded declines in the following order: construction; professional, scientific, & technical services; real estate, rental & leasing; management of companies; repair, maintenance/washing of motor vehicles; accommodation & food services; wholesale/retail trade; arts, entertainment & recreation; information & communication; utilities; and health care & social assistance. The remaining seven sub-sectors: public administration; educational services; agriculture; water supply, sewage & waste management; electricity, gas, steam & air conditioning supply; transportation & warehousing; and finance & insurance reported growth in the review month.

The business activity index stood at 49.8 points in March 2017, from its level of 45.4 points in February 2017.

At 46.4 points, the new orders index declined for the 15 consecutive months in March 2017, but at a slower rate. Of the 18 sub-sectors, 10 declined in the following order: construction; management of companies; professional, scientific, & technical services; information & communication; wholesale/retail trade; utilities; real estate, rental & leasing; repair, maintenance/washing of motor vehicles; accommodation & food services; and arts, entertainment & recreation.

The water supply, sewage & waste management sub-sector remained unchanged, while the remaining seven sub-sectors recorded growth in the order: public administration; electricity, gas, steam & air conditioning supply; finance & insurance; agriculture; educational services; health care & social assistance; and transportation & warehousing.

Money Market Weekly Review

Money market rates last week traded within a band of 12.2 per cent and 13 per cent. The week opened with system liquidity of N13.9 billion as money market rates –open buy back (OBB) and overnight rates settled at 12.7 per cent apiece owing to CBN’s open market operations (OMO) mop ups and special market interventions.

The central bank in a bid to squeeze excess liquidity from the system conducted OMO auctions on all trading days of the week save for Wednesday. An OMO maturity worth N51.5 billion hit the system on Thursday; however, the impact was offset by the OMO sales conducted that same day bringing system liquidity to N92.1 billion.

Also, this week, there will be maturing treasury bills of N35 billion, N33.5 billion and N166.4 billion for the 91-day, 182-day and 364-day tenors respectively as well as rollovers of the same amounts.

Forex Market Review

After sustaining intervention in the currency market to achieve a convergence between official and unofficial rates, the CBN issued a directive to banks last week to sell forex for BTA, PTA, School and medical fees to retail users at N360/$1, from the N375/$1 it sold in the preceding week.

The central bank sold to banks at N357/$1 while Bureaux de Change (BDCs) who are to sell to end-users at N362/$1 were sold to at N360/$1.

A sum of $100 million wholesale forward intervention was offered and fully allotted to banks last Monday while another $100 million was offered to wholesale dealers last Thursday.

But the exchange rate on the parallel market which had appreciated earlier in the week to N375/$1 on Tuesday, weakened to N390/$1 last Friday.

In furtherance of its determination to sustain liquidity in the FX market, the CBN last Thursday announced its decision to commence bi-weekly FX sales to licenced BDCs operators from today. Sales amount to BDCs will also be increased to $10,000 (US$5,000/bid) at a new rate that will be announced today. Licenced BDCs are to fund their accounts on Mondays and Wednesdays while they receive their purchases on Tuesdays and Thursdays respectively.
“In line with the above, we expect market rates to continue to appreciate until the CBN attains a market reopening rate,” analysts at Afrinvest stated.

Nevertheless, the CBN at the weekend disclosed that it had received reports that some customers seeking to buy forex for BTA, PTA, medical and school fees were being frustrated by some banks with the false claim that the CBN is not allocating enough forex for such invisible items.

The central bank, which made the accusation in a statement by its acting Director, Corporate Communications, Mr. Isaac Okorafor, titled: “There is Adequate Forex for PTA, BTA, Tuition & Medical Fees,” said such claim by the banks was totally untrue.

According to the CBN, all banks have more than enough stock of forex in their possession for the purpose of meeting genuine customers’ demand for BTA, PTA, tuition and medical fees.

“Indeed, on a weekly basis, the CBN has been selling at least $80 million to banks for onward sale to their customers for these invisible items.

“Members of the public seeking to buy forex for the above-mentioned purposes are, therefore, advised to go to their banks and obtain their forex,” it added.

It urged any customer that is not attended to within 24 hours for BTA/PTA or 48 hours for tuition and medical fees should call a dedicated number or send an email to the Consumer Protection Department of the CBN, with the name and branch of the non-cooperating bank.

“Furthermore, no customer should accept to buy forex from any bank at more than the currently prescribed rate of N360/$1,” it added

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and, with over a decade experience in the global financial markets.


Heirs Oil & Gas Announces CEO and Board Appointments



Tony Elumelu

Heirs Oil & Gas (HHOG), the leading African integrated energy company, has announced the appointment of Osayande Igiehon as Chief Executive Officer, effective May 4, 2021, together with a distinguished non-executive board, bringing together leading industry figures, with considerable global and regional experience.

Heirs Holdings Limited’s (HH) portfolio company, HHOG, completed the acquisition of OML17 in January 2021, in one of the largest oil and gas financings in Africa in more than a decade, with a financing component of US$1.1 billion. The transaction represents a further implementation of the HH Group strategy of creating the leading integrated energy business in Africa. Through a series of strategic portfolio holdings, HH is executing this strategy. Most recently, affiliate company, Transcorp made a US$300 million acquisition of Afam Power, increasing the Group’s installed electricity generating capacity to 2,000MW.

Mr. Igiehon, who joins from the Royal Dutch Shell (Shell), where he was previously a Vice-President with the Group in the Hague, Netherlands. He brings over twenty-seven years of experience and expertise in the oil and gas sector with Shell, where he held a series of senior management positions. Mr. Igiehon previously served as Chairman and Chief Executive Officer of Shell Gabon, where he led the successful turnaround of the operational, safety and financial performance.

HHOG is also pleased to announce the appointment of the following distinguished private sector and senior industry leaders to the Board:

  • Tony O. Elumelu, CON is the Chairman of Heirs Holdings, the United Bank for Africa (UBA), Transnational Corporation of Nigeria (Transcorp), and Founder of the Tony Elumelu Foundation.
  • Sally Udoma who previously served as general counsel for Chevron Europe, Eurasia, and the Middle East Exploration and Production. Previously, she was general counsel for Sasol Chevron Consulting Limited and managing counsel at the London Legal Service Centre for Chevron Global Upstream and Gas. She has also served as general counsel and general manager for Chevron Nigeria Limited.
  • Anil Dua is a founding partner at Gateway Partners Limited, a private equity fund specialising in dynamic growth markets including Africa, the Middle East and Asia. Prior to this, Mr. Dua worked for over thirty-five years with Standard Chartered Bank in Asia, Africa, Europe and the US, where he held various roles including Regional CEO West Africa and Regional Head of Origination and Client Coverage, Africa.
  • Ahmadu Kida Musa who previously served as Deputy Managing Director of Total Exploration and Production Nigeria Limited, has over thirty-two years of experience in the Oil and Gas industry and brings considerable expertise in Nigerian oil and gas.
  • Stanley Lawson currently serves on the board of Transnational Corporation of Nigeria Plc. He is Managing Partner at Financial Advisory & Investment Consultants Ltd. Dr Lawson previously occupied the position of Group Executive Director-Finance & Accounts at Nigerian National Petroleum Corp.
  • Samuel Nwanze is the Chief Finance Officer at Heirs Oil and Gas. Prior to this he was the Chief Investment Officer at Heirs Holdings responsible for investment and capital management.

Commenting, Mr. Igiehon stated: “HHOG represents an extraordinary opportunity, to create Africa’s first true integrated energy company, with a mission to ensure that Africa’s natural resources are directed toward value creation in Africa, powered by sustainable, robust and abundant African energy. I am excited to join the Heirs Oil and Gas leadership team and look forward to the opportunity to transform the energy sector, purposefully address Africa’s energy needs and improve the lives of people across Africa.”

The Chairman of the Board, Tony O. Elumelu, CON, stated: “I am delighted to welcome our new board members. We are building a role model institution for African businesses and our investment in human capital is a further strong demonstration of our intent. The regional and global expertise of our board members will serve to further drive value creation to our continent, as we execute our goal of becoming Africa’s largest, indigenous, integrated, energy company.”

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CHI Limited Celebrates Its Maiden Hollandia Dairy Day



Nigeria’s leading dairy brand, Hollandia, is set to hold the maiden edition of its Hollandia Dairy Day. The event which will be celebrated on the 18th of May 2021 will provide a veritable platform to drive the national discourse on the unrivaled health and nutrition benefits of dairy consumption to people of all ages.

Set to be hosted as a conference, the theme of this year’s event is “Dairy Nourishment to Support Healthy Living”, and it focuses on the vital role dairy consumption plays in our everyday nourishment, its benefit to our overall health, and why dairy products should be included in our diets every day.

This conference, which is designed as a hybrid of the physical and virtual events, will feature presentations, interviews and panel discussions from health experts and nutritionists as they provide insights and share perspectives to guide informed decisions about dairy consumption as part of a daily balanced diet. The event is opened to the public through the brand’s multiple social media platforms.

According to a report by the Food and Agriculture Organisation of the United Nations, 2019, Nigeria has low dairy consumption levels per head – 15 to 20 liters per capita consumption. This is partly attributable to the low purchasing power of the average Nigerian household, who rank milk and dairy products as non-essential luxuries and prioritize other staple foods such as rice, beans, and yam.

By provoking the conversations and stimulating public action/intervention, Hollandia aims to drive consciousness for dairy consumption and its importance to achieving optimum health, and to get many more Nigerians drinking, using, and consuming dairy products.

The past year has presented unprecedented shocks and disruptions, including a global COVID-19 pandemic. As communities throughout the world look for ways to minimize the risk of COVID-19, maintaining and boosting good health is top of mind for many. Dairy foods such as milk and yogurt contain essential nutrients, including Vitamins A and D, Zinc and Protein, which support immune function.

The Hollandia Dairy Day Conference is a public interest initiative created to highlight the importance of dairy in everyday nutrition and healthy living in Nigeria.

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Nokia Launches Blockchain-Powered Data Marketplace For Secure Data Trading and AI Models




Nokia today announced the launch of the Nokia Data Marketplace as-a-service to facilitate secure sharing of data and AI models, enabling digital transformation and data monetization for enterprises.

As data volumes continue to surge, AI and machine learning are increasingly crucial in business decision making. Nokia Data Marketplace is designed to help enterprises and communications service providers (CSPs) use data in strategic decision making, by providing real-time access to massive trusted datasets.

The new service also enables enterprises and CSPs to become data marketplace providers themselves, by monetizing data exchanges between customers or business ecosystem participants.

Nokia Data Marketplace ensures trusted data exchange and authorization mechanisms. This enables a wide range of vertical use cases, including electric vehicle charging, environmental data monetization, supply-chain automation and preventative maintenance powering numerous vertical segments, including transportation, ports, energy, smart cities and healthcare.

Friedrich Trawoeger, Vice President, Cloud and Cognitive Services at Nokia, said: “Our customers need secure and trusted access to data for effective business decision making. With Nokia Data Marketplace, enterprises and CSPs can now benefit from richer insights and predictive models to drive digital ways of working and tap into new revenue streams.”

Nokia Data Marketplace accelerates AI initiatives through federated learning. This approach, combined with orchestration capabilities, facilitates the collaborative development of highly accurate machine learning models for analytics use cases. It also meets the growing demand for a platform that can efficiently apply AI and machine learning algorithms to in situ data.

Nokia Data Marketplace complements Nokia Worldwide IoT Network Grid (WING), which offers global IoT connectivity and vertical applications. For example, Nokia WING’s asset tracking solution is enriched by Nokia Data Marketplace’s blockchain to provide secure and automated data exchange and transactions between logistics’ ecosystem partners for faster turnaround.*

Kaladhar Voruganti, Senior Fellow, Office of the CTO at Equinix, said: “Nokia Data Marketplace combined with Equinix data centers allows organizations to share data and algorithms globally at more than 240 metro edge locations. Our Metal platform augments this to provide secure, proximate, on-demand infrastructure to enterprises and government agencies. Sharing and processing of data close to its point of creation mitigate issues related to latency, compliance, and network backhaul cost. These neutral and secure edge locations are connected via high-speed and secure networks to data sources spanning across public clouds, private enterprise data centers and data brokers.”

Wouter van Neerbos, Chief Executive Officer at Marlin, said: “Through automated data exchange among shipping participants, Nokia brings us the transparency and operational efficiency required in our global marine supply chain. This reduces waiting time for shipping participants in the marine ecosystem, enables faster turnaround for ships, and reduces our costs.”

Justin van der Lande, the Principal Analyst at Analysys Mason, said: “Data is the energy needed to run all future business; critical to their success in creating the best AI-based insights and needs access to the largest data sets. Data sharing between enterprise partners is vital in building complete data sets. Facilitating data sharing using a secure platform, such as Nokia’s blockchain-based Data Marketplace, accelerates enterprises’ building of new data sets and creates richer business partnerships for them.”

Nokia is leading the development of security, privacy, and trust mechanisms as part of a consortium that was recently awarded the DEDICAT 6G project by the European Union. Nokia Data Marketplace inclusion in this project focuses on creating an AI and blockchain-enabled security framework and trust management platform for IoT applications running on B5G (Beyond 5G) networks.

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