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Manufacturers Groan Under Rate Disparity, Others, Says Report

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  • Manufacturers Groan Under Rate Disparity, Others, Says Report

The 2017 Manufacturing Sector Survey conducted by NOIPolls in collaboration with the Study of Economies of Africa (CSEA), has identified a number of unfavourable economic conditions the industrial sector contends with.

They include unfavourable foreign exchange rates (55 per cent), bad roads (55 per cent); unavailability of petrol and diesel (47 per cent); limited access to credit (45 per cent), and policy inconsistency (44 per cent).

Others are lack of Infrastructure (39 per cent), unstable power supply (31 per cent), and weak demand (29 per cent), as the top challenges facing the manufacturing sector in Nigeria.

The Report, which was presented in Abuja on Tuesday, came on the a heels of a report penultimate week by the Central Bank of Nigeria (CBN) that it had injected $9.964 billion into the interbank segment of the foreign exchange (forex) market since it commenced its aggressive interventions in February this year.

The report declared that the sustained intervention in the Forex market had helped to ease pressure on Nigeria’s forex market, which prior to the CBN’s action had been pummelled by speculators.

A breakdown of the dollar sales indicated that $680million was pumped into the market in February, $1.542billion was sold in March, $1.616billion in April, $2.102billion in May, and $1.631billion in June.

Also, while the Central Bank offered $1.639billion to banks to sell to their customers in July, as of August 21, it had sold a total of $754million.
The $2.102billion sold by the CBN in May remains the highest in the six months under review, during which it sold dollars in eight different sessions, in a bid to stabilise the market and discourage currency speculation.

However, much of the dollar sales had been targeted at retail invisibles for PTA, BTA, school fees, and medical bills, wholesale forwards, SMEs, and Secondary Market Intervention Sales (SMIS). Only a negligible portion went to the manufacturing and real sector of the economy, a fact which somewhat confirms the outcome of the new Report.

Presenting the Report yesterday, the NOI POLLS Chief Executive, Dr. Bell Ihua, explained that the 2017 Manufacturing Sector Survey represents a 14-point increase from the 2016 result (60 per cent), thus indicating a worsening of the business environment.

He said lack of infrastructure; red-tapism and corruption were identified as some of the structural bottlenecks stifling the business environment in the current review.

The report said “75 per cent of manufacturing companies say the disparity in foreign exchange rates has had negative impact on their operations. Similarly, 80 per cent of the companies affirmed that inflation has had a negative effect on their businesses.

“All the manufacturing companies interviewed affirmed that the recession had impacted their business operations and profitability; with 70 per cent stating that the recession had impacted their businesses negatively.”

On the issue of bad roads, manufacturers in particular lamented the poor state of some roads such as: Apapa-Tin Can Access road, Lagos-Ibadan Express road, Benin-Ore road, Oyo-Ogbomosho (in South West), East-West road, Benin-Agbor road, Aba-Port Harcourt road (South-South), Ajaokuta-Ayangba-Nsukka road, Lokoja-Ajaokuta road, Obajana-Okene road, Makurdi-Enugu road (North-Central and South-East) and many others.

Ihua said and a total of 496 companies across 12 states, which represent two per geo-political zone, were interviewed between the months of February and May 2017.

But the Manufacturers Association of Nigeria (MAN) was not represented at the presentation, which had representatives from CSEA, Dr Adedeji Adeniran, Eke Ubiji; the Executive Secretary/Chief Executive Officer NASME, Charles Dungor; and the Lagos Chambers of Commerce and Industry.

Ihua said 74 per cent of manufacturing companies found the business environment unsupportive in 2017, while half of the companies considered importation of raw materials critical to their production; particularly medium to large manufacturing companies, with up to 62 per cent of inputs imported.

In his remark, Ubiji urged the Federal, State and Local Government policymakers to have a critical view of the survey in the bid to aid manufacturing in Nigeria, noting that a huge fund is set aside for the companies, but accessibility has remained a big challenge.

Is the CEO and Founder of Investors King Limited. He is a seasoned foreign exchange research analyst and a published author on Yahoo Finance, Business Insider, Nasdaq, Entrepreneur.com, Investorplace, and other prominent platforms. With over two decades of experience in global financial markets, Olukoya is well-recognized in the industry.

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Energy

How Nigeria’s National Power Grid Collapsed Ten Times Within 9 Months 

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The national power grid has again collapsed, leaving many Nigerians in total darkness.

Investors King can authoritatively report that this is the tenth time the power grid will be disrupted this year alone.

For this recent collapse, the grid, reportedly lost power generation around 1:39 pm on Tuesday.

Information revealed that power generation was 2,711 megawatts as of 1:00 pm, having previously peaked at 3,631 MW.

Earlier, power generation peaked at 3,934.77 MW around six o’clock in the morning.

However, between 2 pm and 3 pm, hourly generation dropped to 0.00 MW.

The Transmission Company of Nigeria confirmed that the national grid experienced a partial disturbance at about 1:52 pm on Tuesday, 5th November 2024.

TCN spokesperson Ndidi Mbah mentioned that the recent collapse was due to a series of line and generator trippings that caused instability in the grid and, consequently, the partial disturbance of the system.

Mbah pointed out that data from the National Control Centre revealed that a part of the grid was not affected by the bulk power disruption.

TCN however indicated that work work is in progress to restore power.

She explained that engineers are already working to quickly restore bulk power supply to the states affected by the “partial disturbance.”

Mbah noted that presently, bulk power supply has been restored to Abuja at 2:49 pm, maintaining that “we are gradually restoring it to other parts of the country.”

She apologized to Nigerians for whatever inconvenience the collapse might have caused.

Findings by Investors King revealed that the grid had collapsed at ten different times between March and November, this year.

Times the grid collapsed included February 4, March 28, April 15, July 16, two times in August 5, October 14, October 15, twice in October 19 and now today, November 5.

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Darkness Falls Again: TCN Explains Latest National Grid Collapse

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The Transmission Company of Nigeria (TCN) has provided an explanation for the latest National Grid collapse, which occurred on Tuesday, November 5.

Tuesday’s collapse, marking the 10th in 2024 alone, left Nigerians in total darkness.

Recall that the National Grid collapsed twice in October, sparking concerns among Nigerians.

Reacting to the latest collapse via a statement on Tuesday, the General Manager of TCN Public Affairs, Ndidi Mbah, disclosed that the collapse happened at 1:52 pm.

The GM revealed that the grid collapse was caused by line and generator trippings.

Mrs. Mbah said, “TCN states that the national grid experienced a partial disturbance at about 1:52 pm today, 5th November 2024.

“This followed a series of line and generator trippings that caused instability in the grid and, consequently, the partial disturbance of the system.

Data from the National Control Centre (NCC) revealed that a part of the grid was not affected by the bulk power disruption.

Mbah disclosed that operators are working to restore power in affected states, adding that power was restored in Abuja.

She explained, “TCN engineers are already working to quickly restore bulk power supply to the states affected by the partial disturbance. Presently, bulk power supply has been restored to Abuja at 2:49 pm, and we are gradually restoring power to other parts of the country.”

Apologizing to Nigerians, TCN said, “We sincerely apologize for any inconvenience this may cause our electricity customers.”

Investors King, in an earlier report, revealed that in an attempt to address the persistent collapse of the national grid, the Nigerian Electricity Regulatory Commission (NERC) announced that discussions were underway with Independent Operators to take over the management of the grid.

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Energy

Nigeria Partners with ECOWAS and Morocco to Launch $26B African Gas Pipeline

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The Nigerian government, in partnership with the Economic Community of West African States (ECOWAS), Morocco, and Mauritania, has announced plans to advance the $26 billion African Atlantic Gas Pipeline project to drive economic growth across Africa.

This development was revealed on Monday, November 5, by Mele Kyari, Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPCL), at the ECOWAS Inter-Ministerial Meeting on the Nigeria-Morocco Gas Pipeline Project.

Speaking at the meeting, which was attended by ECOWAS Ministers of Hydrocarbons and Energy as well as representatives from Morocco and Mauritania, Kyari stated that, once completed, the project will connect 13 African countries.

Represented by Olalekan Ogunleye, NNPC’s Executive Vice President for Gas Power & New Energy, Kyari said this will be Africa’s largest pipeline project.

Ogunleye confirmed that progress has been made with the front-end engineering design completed, the phase two study finalized, and work ongoing for environmental and social impact assessments as well as land acquisition and resettlement.

He emphasized NNPC’s readiness to execute the project: “Today, we come together to make significant progress in the African Atlantic gas pipeline project, which is a transformative initiative connecting at least 13 African nations in shared prosperity and development. These achievements underscore our capability to deliver this landmark project, supported by strong regional collaboration.”

Ekperikpe Ekpo, Minister of State for Petroleum Resources (Gas), described the project as a game-changer for the regional economy, stating, “We stand at a critical juncture where these agreements can reshape our energy landscape, strengthen our economies, and uplift our people.”

He also highlighted that the project will increase Africa’s presence in the global gas market, noting that “the agreements demonstrate a strong commitment to advancing hydrocarbon and energy trade across ECOWAS, enhancing access to natural gas in West Africa, and expanding Africa’s global footprint in the gas market.”

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