- Nigeria’s Auto Industry to Import Less than 10,000 Vehicles in 2017
Nigeria’s Auto Industry is expected to import and sell between 8,000 and 10,000 new vehicles this year, which is lower than the 15,000 projected at the end of last year.
The Managing Director, Toyota Nigeria Limited, Mr. Kunle Ade-Ojo gave this figure as their forecast for the Nigerian automobile industry in 2017, at the company’s quarterly briefing in Lagos, yesterday.
The forecast, Ade-Ojo said was based on the industry’s performance in the first quarter of 2017, adding that at the end of the first quarter of 2017, total import figures in the nation’s automobile industry, from the nation’s ports, came to about 350 units compared to about 3,500 units that came in at the same time last year.
He said with this statistics, “imports dropped by about 90% between 2016 and 2017 Q1. In terms of retail sales we are estimating, based on the information we have, that the auto market did about 2000 vehicles compared to about 5000 vehicles that was done in Q1 of 2015, bringing a drop of over 50% when you look in terms of retail sales.”
Among the retail sales, he said “Toyota has a share of about 22-23% of Q1 sales, generally. Forex continues to be a major challenge, interest rates have gone up.”
He explained that as Dollar is scarce, so also Naira is pretty much scarce and that bank’s interest rates have gone up. “Even though the exchange rate has moderated from a high of about 520 to the Dollar and trading at about N400 to the Dollar, it is still not available.”
Giving the figures for 2016, Kunle said, “In terms of sales, retail sales went from about 32,000 in 2015 to about 18,000 last year. So, the market dropped about 42%.”
He said Toyota Nigeria Limited “went down from about 8,000 in 2015 to slightly over 4,000 in 2016. So, we had a drop of about 35%.”
Regardless of this, he said, “We grew our share from 24% in 2015 to about 26% in 2016.”
Reviewing imports in the same period, he said, “Imports dropped about 60% from about 18,000 in 2015 to just close to 7,000 in 2016. Of course, in terms of our share of the imports, we had about 43% in 2015 and that dropped to about 38% in 2016.”
He said this was basically as a result of different sub groupings, different manufacturers or auto distributors in the country and that “in addition to that, the scarcity of forex affected businesses last year and that cause a major reduction in importation.”
According to him, the devaluation of the Naira also affected sales last year, saying “whereas in the first half of the year the Naira was about 200 to the Dollar but that by the end of the year it had doubled. So, prices of vehicles also pretty much doubled and a lot of businesses could not afford to pay for the increase. We at TNL are struggling to survive. A lot of companies had to retrench their staff last year as a result of the tough economic situation.”
He said companies had to priortise on what they would spend their limited funds on. “Vehicles, you know are a luxury, except for the ones that are used for business, which are commercial vehicles and that is why commercial vehicles did way more last year, about 70% to 30% in terms of ratio (with passenger vehicles). Passenger cars reduced more than commercial cars and, of course, when you look at the duties on passenger cars also at 70% compared to 35% for commercial, the impact is more on passenger vehicles.”
Also, he said companies had increased the number of years that their staff used their vehicles. “Normally, it used to be four years, but now companies have taken it up to between five and six years before they will consider changing or replacing their staff vehicles.”
Federal Government Raises Price of Electric Meters
The Federal Government through the Nigerian Electricity Regulatory Commission has raised the price of both single-phase and three-phase electricity meters starting from November 15, 2021.
The regulator increased the price of a single-phased meter to N58.661.69, up from the present cost of N44,896.17. While the price of a three-phase meter was raised from the current cost of N82,855.19 to a revised rate of N109,684.36.
The commission announced this in a circular dated November 11, 2021 and addressed to managing directors of all electricity Distribution Companies and all meter asset providers.
The circular, with reference number NERC/REG/MAP/GEN/751/2, was entitled ‘Review of the unit price of end-use meters under the Meter Asset Provider and National Mass Metering Regulations’.
Complete Text of President Buhari’s Speech at the Furniture Investment Initiative Summit
President Muhammadu Buhari is one of the global leaders invited to speak at the ongoing 5th Future Investment Initiative Summit organised by Saudi Arabia.
As reported by Investors King, President Buhari arrived Riyadh, Saudi Arabia, on Monday at about 11.50 pm for the summit.
On Tuesday President Buhari delivered the speech below.
“Let me begin by conveying my heartfelt gratitude and appreciation to the Custodian of the Two Holy Mosques, King Salman Bin Abdulaziz Al-Saud for inviting me to the 5th edition of the Future Investment Initiative Summit in Riyadh.
In the short period of its existence, this summit has emerged as a credible forum for interaction between the public and private sectors, to explore ways of advancing economic growth, development and global prosperity.
I wish to commend the organizers of this year’s summit for the foresight to look at “investment”, not only from a profitability and wealth accumulation point of view, but also bringing prosperity to humanity in general. The humane approach to investment is the only way to address the global challenges we face, especially in the Covid-19 era.
We should continue to sustain our efforts to combat the COVID- 19 pandemic and mitigate its negative socio-economic impact on our societies, build resilience and achieve recovery. It is therefore my hope, that this session will leverage on the enormous economic opportunities that lie ahead in order to satisfy the prevailing needs of our people and planet.
Investing in humanity is investing in our collective survival. This is why we in Nigeria we believe that public and private partnership should focus on increasing investments in health, education, capacity building, youth empowerment, gender equality, poverty eradication, climate change and food security. By so doing, it will go a long way in re- energizing the global economy in a post COVID-19 era.
Nigeria’s population today exceeds 200 million people. Some 70 percent are under 35 years old. When we came into government in 2015, we were quick to realise that long-term peace and stability of our country is dependent on having inclusive and humane policies.
In the past six years, our government took very painful but necessary decisions to invest for a long-term prosperous future knowing very well that this will come with short term pains.
We focused on the following areas:
a. diversification from oil to more inclusive sectors such as agriculture, ICT and mining;
b. tackling corruption, insecurity and climate change; and c. introducing a Social Investment Program.
We introduced policies that supported investments in agriculture and food processing. We provided loans and technical support to small holder farmers, through the Anchor Borrowers Program. As a result, Nigeria today has over 40 rice mills from less than 10 in 2014. Nigeria also has over 46 active fertiliser blending plants from less than 5 in 2014.
Furthermore, in agriculture, we have reformed the process of obtaining inputs such as fertilizer and seeds. We have several million hectares of available arable land and have embarked on the creation of Special Agriculture Processing Zones across the country. These initiatives we believe will make it easier for investors in agriculture.
Two months ago, I signed the Petroleum Industry Act. The Act will serve as a catalyst to liberalize our petroleum sector. It has introduced a number of incentives such as tax holidays, 100 percent ownership, zero interest loans and easy transfer of funds. In addition, we have highly skilled in-country workforce and a large domestic market.
In mining, we have also made several opportunities available for investors. Nigeria is a country rich in minerals from gold, iron ore, tin, zinc, cobalt, lithium, limestone, phosphate, bitumen and many others. We have made the licensing process easier and also made extensive investments in rail and transportation.
Infrastructure investments represent significant potential for investors in Nigeria. We have opportunities in seaports, rail, toll roads, real estate, renewable energy and many others. We have created several institutions that are available to co-invest with you in Nigeria.
We have the Nigeria Sovereign Investment Authority and more recently, I approved the creation of Infrastructure Corporation of Nigeria. These institutions are run as independent world class institutions to make investments in the country and are available to co- invest with you.
In addition, the development of social infrastructure such as healthcare and education present enormous opportunities for investors in a country our size.
Digital Economy in Nigeria has many potentials for investment, as it has remained the fastest growing sector in both 2020 and 2021. Nigeria has many opportunities for investment in broadband, ICT hardware, emerging technology and software engineering.
We have recently approved the national policy on Fifth Generation (5G) network. Our aim is to attract investors in healthcare, smart cities, smart agriculture among others. The benefit of real time communication will support all other sectors of the economy.
Yesterday, I launched the E-Naira, the electronic version of our national currency, which puts us on track to become the first African country to introduce a Central Bank Digital Currency. We believe this and many other reforms, will help us increase the number of people participating in the banking sector, make for a more efficient financial sector and help us tackle illicit flow of funds.
To further strengthen our anti-corruption drive, increase accountability and transparency, we have centralized government funds through a Treasury Single Account, and ensuring that all Nigerians with a bank account use a unique Bank Verification Number (BVN). These initiatives, coupled with our nationwide National Identification Number (NIN) exercise, reinforce our efforts to tackle corruption and fraud. We believe that this should give investors a lot of comfort.
As we strive to build resilience towards a sustainable economy in our various countries, let us not forget the negative impact of climate change on our efforts to achieve this goal. Nigeria and many countries in Africa, are already facing the challenges posed by climate change. Climate change has triggered conflicts, food insecurity, irregular youth migration, rising level of sea waters, drought and desertification, as well as the drying-up of the Lake Chad.
In the Lake Chad Basin region, where Boko Haram insurgency continues to undermine the peace, security and development of the region, climate change is largely responsible for the drying up of the Lake Chad which has shrunk by more than 85% of its original size.
The diminishing size of the Lake is at the root of the loss of millions of livelihoods, displacement of inhabitants and radicalization of teeming youths in the region who are recruited to serve as foot soldiers in the insurgency.
In order to redress this situation and restore the lost fortunes of the Lake Chad Basin region, strong public-private partnership through massive investments will be needed to recharge the waters of Lake Chad. I am confident that this forum will rise to the challenge in the interest of durable peace and sustainable development of our region.
We cannot invest in humanity without relieving our countries from the crushing effects of the debt burden especially when the COVID-19 pandemic has increased the risk of deepening the debt portfolio of poor countries. These nations increasingly allocate more and more resources towards external debt servicing and repayment at the expense of the health, education and other services that contribute to the overall well- being of their population.
Nigeria is Africa’s largest economy and most populous nation. Our economic reforms which focus on “humane” investments are ideal for investors looking to have profitable returns while positively impacting the citizenry.
Your Excellencies, Distinguished ladies and gentlemen, Investing in Humanity is the right thing to do. I strongly believe the historical under- investments in “humane projects” is the genesis of most of the insecurity and socio-economic challenges the world is experiencing today.
I will conclude once again by thanking the Custodian of the Two Holy Mosques, King Salman Bin Abdulaziz Al-Saud, and also congratulate His Royal Highness, Crown Prince Mohammed Bin Salman for their leadership and their support through the Future Investment Initiative.
I remain confident that through such exchanges, the world indeed will be a better place. I hope and pray that this forum will rise to the challenge in the interest of durable peace and sustainable development.
I thank you.”
UN and Zimbabwe Sign New Cooperation Framework
The government of Zimbabwe and United Nations have signed the 2022-2026 Zimbabwe United Nations Sustainable Development Cooperation Framework that will support the country’s efforts to achieve Sustainable Development Goals (SDGs).
The official signing and launch of the Zimbabwe United Nations Sustainable Development Cooperation Framework 2022-2026 was presided over by the Chief Secretary to the President and Cabinet, Dr Misheck Sibanda and UN Resident Coordinator Maria Ribeiro. UNESCO Regional Director for Southern Africa, Prof. Hubert Gijzen witnessed the signing ceremony together with other UN Country Team members and Government officials.
Speaking at the signing ceremony, Dr Misheck Sibanda said Zimbabwe was grateful for the UN support towards the country’s development in the face of various challenges.
“I want to pay gratitude to Ms Maria Rebeiro for her commitment to uplift the livelihoods of the people of Zimbabwe in the face of natural disasters like the cyclone, droughts and the COVID-19 pandemic,” Dr. Misheck Sibanda.
He took the opportunity to bid farewell to Ms Rebeiro whose term of office ends this year and urged the UN team to continue with the legacy of her hard-work which saw the UN mobilise US$400 million towards promotion of agriculture, climate adaptation and health needs for Zimbabwe.
The UN Resident emphasised the importance of aligning the UN’s programmes with the country’s development strategies.
“In the same spirit of achieving SDGs, climate change, the COVID-19 pandemic are opportunities for us to do better by aligning the country programmed NDS1 with instruments of the UN in resource and financial mobilisation,” Ms. Maria Ribeiro.
The 2022-2026 Zimbabwe United Nations Sustainable Development Cooperation Framework (ZUNSDCF) articulates the strategic engagement of the United Nations Country Team (UNCT) in Zimbabwe to support the country to achieve the Sustainable Development Goals (SDGs).
Anchored on Zimbabwe’s National Development Strategy 1 (NDS1) 2021-2025, the ZUNSDCF encapsulates the shared commitment to leaving no one behind through delivering concrete results that ensure inclusive participation and reaching the people typically left the furthest behind.
The ZUNSDCF with full government ownership throughout the process, is a result of extensive consultations involving a wide range of key stakeholders whose inputs contributed to defining the strategic priorities and implementation modalities.
The ZUNSDCF lays out an ambitious programme to accelerate development progress during the Decade of Action as Zimbabwe strives to recover better and stronger from the impacts of the COVID-19 pandemic.
Fully cognizant of the urgency to act, the ZUNSDCF represents the vehicle through which the UNCT in partnership with the Government of Zimbabwe and other stakeholders, will deliver transformative support that drives inclusive and sustainable economic growth, gender equality, human rights and climate action.
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