- MAN Hails Growth in Food & Beverage Sector
The Manufacturer’s Association of Nigeria (MAN) said capacity utilisation in the Food, Beverage and Tobacco group increased to 60.3 per cent in the second half 2016, from 53.7 per cent recorded in the corresponding half of 2015, indicating a 6.6 percentage points increase in the period.
It further explained that it increased by 10.5 percentage points when compared with 49.8 per cent recorded in the preceding half.
MAN president Dr. Frank Udemba Jacobs, in an analysis of the period, said Textile Apparel & Footwear increased to 56.9 per cent in the period under review from 52.7 percent recorded in the corresponding half of 2015, indicating 4.2 percentage points increase over the period.
On industrial zones, he explained that MAN industrial zones shows that capacity utilisation increased in Rivers, Ikeja, Apapa, Kano Bompai, Ogun and Kaduna states but lamented that it fell in Bauchi,Benue,Plateau, Anambra,Enugu, Kano Sharada,Challawa, Oyo states. Others are Ondo, Osun, Ekiti, Imo, Abia, Edo and Delta zones in the period under review.
He specifically stated that in Imo and Abia states, capacity utilisation declined by 51.7 per cent in the period under review, indicating 19.2 percentage point decline over the period.
It was however, a different story in Ogun State where capacity utilisation increased to 68.0 per cent, from 59.5 per cent recorded in the corresponding half of 2015, indicating 8.5 percentage point increase over the period.
On manufacturing production value, the MAN boss said it was estimated at N5.02 trillion as against N4.08 trillion of the corresponding half of 2015, indicating N0.94 trillion or 23.0 per cent increase over the period.
It further increased by N1.66 trillion or 49.4 per cent when compared with N3.36 trillion of the preceding half.
He noted that the manufacturing sector totaled N8.38 trillion as against N7.71 trillion of 2015, indicating N0.67 trillion or 8.7 per cent increase over the period.
Udemba revealed that production value in Motor Vehicle & Miscellaneous Assemble group stood at N2.45 trillion in the period, as against N1.79 trillion of the corresponding half of 2015. This indicated N0.66 trillion or 36.9 per cent increase over the period, increasing by N1.31 trillion or 83.4 percent when compared with N1.57 trillion of the preceding half.
According to him, in the period under review, production in Foods, Beverage and tobacco group increased N1.59 trillion as against N1.41 trillion of the corresponding periods of 2015, indicating N0.18 trillion or 12.8 percent increase over the period.
Others are Chemical and Pharmaceutical group that grew to N362.6 billion, Basic Metal, Iron & Steel and Fabricated Metal N202.97 billion, Domestic and Industrial Plastic, Rubber and Foam stood at N183.73 billion, Non-Metallic Mineral products stood at N82.44 billion while Textile Apparel, Carpet, Leather & Leather Wear was N24.90 billion in the period.
Analysis across industrial zones showed that production value in Ikeja stood at N2.87 trillion in the period under review.
Jacobs further stated that on annual basis, production value stood at N4.65 trillion in Ikeja in 2016 as against N4.02 trillion of 2015, indicating N0.63 trillion or 15.6 per cent over the period.
Apapa production totaled N449.0 billion in 2016 as against N273.15 billion recorded in 2015 indicating N175.85 billion.
Finally, production in Ogun zone increased to N1.79 trillion in the period under review, indicating N0.23 trillion or 14.7 per cent increase over the period.
The MAN boss, however, asked that government implement robust policies to grow the sector by special intervention programmes in funding and infrastructure provision.
NCDMB and NEXIM Sign $30 Million Agreement to Support Oil and Gas Services Firms
The Nigerian Content Development Monitoring Board (NCDMB) and the Nigerian Export-Import Bank (NEXIM) yesterday signed a $30 million agreement on working capital and capacity building fund to support oil and gas services firms.
Simbi Wabote, Executive Secretary, NCDMB and Managing Director, NEXIM Bank, Abba Bello, signed the funding agreement at the Abuja office of the Nigerian content monitoring agency.
Wabote said the Oil Producers Trade Section, Independent Petroleum Producers Group and Petroleum Technology Association of Nigeria had raised concerns over funding challenges confronting oil services firms, as this had made most of the companies to consider downsizing their staff.
He said, “The OPTS and IPPG had at some point raised before the NCDMB the inability of most indigenous contractors to provide services to them due to challenges of funding.
“This was especially when we got struck by the COVID-19 pandemic. I recall receiving several letters particularly from IPPG trying to see how we can support this.”
He added, “I also recall receiving similar letters from PETAN when the COVID-19 struck and most of their members had nothing to do anymore.
“This is because companies were shut down and their members were threatening on how to downsize and take Nigerians off their payrolls.
“Based on this, we then set up a committee to say how do we support these firms with the provision of working capital.”
Wabote noted the roll-out date for the fund would be July 1, 2021 and that the fund size of $30m would be boosted by matching funds of the same amount to be provided by NEXIM in naira (to be converted at prevailing official exchange rate).
“The scheme shall cover loans for working capital support and capacity building, oil service contracts, invoice discounting including acquisition of low-end equipment to service short-term contracts/service obligations,” he stated.
He said the target market comprised Nigerian oil service providers which belonged to a professional association in the Nigerian oil and gas industry and commercially viable with a business relationship with either an international oil company or a major Nigerian oil firm.
“Maximum amount that can be borrowed by a single obligor is $1m or its naira equivalent at the official exchange rate prevailing at the time of borrowing,” Wabote said.
He added, “Tenor shall be up to 12 months for working capital loans and up to three years for capacity building loans with moratorium of up to 12 months.
“The applicable interest rate shall be five per cent per annum all-in for dollar-denominated loans and eight per cent all-in per annum for naira-denominated loans and the rate shall be fixed throughout the tenor of the loan.”
LivingTrust Mortgage Bank Appoints Mr. Timothy Olorunsogo Gbadeyan as Company’s Secretary
LivingTrust Mortgage bank has appointed Mr. Timothy Olorunsogo Gbadeyan as company secretary/head of legal services.
The bank disclosed in a statement signed by Ikechukwu Omuku, the Finance Officer/Head, Investor Relations, LivingTrust Mortgage Bank Plc.
The statement reads “We wish to notify The Nigerian Stock Exchange and the investing public of the appointment Mr. Timothy Olorunsogo Gbadeyan as Company Secretary/Head, Legal Services of LivingTrust Mortgage Bank Plc.
“Mr. Gbadeyan is a consummate corporate attorney with experiential background in deals advisory, real estate finance, facioring, general commercial transactions, corporate governance, company secretarial services and regulatory compliance. Until his appointment, he was the Head of Legal Services of Infinity Trust Mortgage Bank Plc.”
Farmforte, Others Signs MoU To Strengthen and Sustain Growth in Agricultural Sector
Farmforte Limited has signed a strategic Memorandum of Understanding with the Agricultural Fresh Produce Growers and Exporters Association of Nigeria; HYBR, a pan-African innovation firm; and ALTS, a consulting and strategy development firm.
The firm said in a statement on Sunday that the partnership would strengthen common interest cooperation and stimulate inclusive and sustainable growth within the agricultural sector, by capitalising on the synergy and comparative advantage offered by each organisation.
Speaking during the signing ceremony, Farmforte Co-Chief Executive Officer, Osazuwa Osayi, said, “Our mid to long-term strategic goals are further reaffirmed, as this partnership will facilitate the sharing of knowledge, ideas, and expertise across the agricultural sector.
“We will collectively address initiatives and approaches concerning agricultural investments, food security, and the overall robustness of the value chain.”
He said the collaboration would also unlock the full potential of the sector and place it on a renewed path for success, especially within a post-pandemic economy.
The President of AFGEAN, Tajuddeen Dantata, said, “By creating dialogue and fostering investment in the horticulture sector, this partnership will endeavor to support Farmforte in its exporting efforts by improving operational efficacy and cost-savings, while ultimately driving socio-economic growth in the country.”
The Chief Executive Officer, HYBR, Charles Ojei, said to drive inclusion, sustainability, job creation, and Nigeria’s overall economic growth, the optimisation of the agriculture value chain was critical.
“This collaboration is a fusion of the complementary capabilities of all partners to move a bigger agenda forward.”
The Managing Partner, ALTS, Akintunde Sawyerr, said, “The goal of this partnership is to support Farmforte’s vision of becoming the largest agribusiness by 2035 via scalable and world-class innovation across its enterprise.”
Top Five Tech Growth Sectors Forecast to Quadruple Over Next Few Years
Nokia Launches Next-generation AirScale 5G Portfolio Powered by ReefShark Technology
African Private Equity, Venture Capital Association (AVCA) and APO Group to Drive Trade and Investments Across Africa
Cryptocurrency4 weeks ago
Can cryptocurrency survive regulators? Here’s what Ripple CEO says about XRP’s future
Sport Business1 week ago
Cristiano Ronaldo Snubs Coca-Cola Drink in Euro 2020 Press Conference, Wipes $4B Off Market Value
Government3 weeks ago
Buhari Talks Tough; Threatens IPOB, Others
Cryptocurrency4 weeks ago
BankDhofar Launches Mobile Banking Payments from Oman to India with RippleNet
Cryptocurrency2 weeks ago
Wei Zhou, Binance’s Chief Financial Officer Resigns
Cryptocurrency4 weeks ago
US SEC To Work With Congress To Regulate Crypto Exchanges
Education3 weeks ago
Senate Passes Bill To End HND/BSc Discrimination
Fintech4 weeks ago
kuda Bank USSD Code for Money Transfer, Bill Payment, Deposit