Connect with us

Business

Manufacturers Fault Exclusion of Motorcycles from Automotive Policy

Published

on

  • Manufacturers Fault Exclusion of Motorcycles from Automotive Policy

Motorcycle manufacturers under the aegis of Motorcycle Manufacturers Association of Nigeria have faulted the exclusion of motorcycles and tricycles from the National Automotive Industry Development Plan of 2013

MOMAN, a subsectoral group under the Motor Vehicle and Miscellaneous Assembly sectoral group of the Manufacturers Association of Nigeria made its position known during its Annual General Meeting held in Lagos recently.

While presenting a paper titled ‘Motorcycle Manufacturing: the Missing Link in the National Automotive Industry Development Plan, the Chairman, Boulos Enterprises Limited, Mr Robert Ugbaja, who was the guest speaker at the event, recalled that the automotive industry witnessed real growth in the 1970s and the 1980s and 150,000 cars were assembled locally every year until the collapse of the crude oil prices of the 1980s and the subsequent devaluation of the naira.

He said the NAIDP was one of the attempts made to revive the industry which collapsed following the naira depreciation and Structural Adjustment Programme of former President Ibrahim Babangida’s administration.

He pointed out that one of the major flaws contained in the 2013 NAIDP, introduced by former president Goodluck Jonathan was the omission of motorcycle manufacturing.

Ugbaja maintained that most economies with thriving automotive industries also had strong and deep-rooted motorcycle manufacturing subsector.

He said, “They built their automotive industries on solid motorcycle manufacturing foundation, which enabled them to start from basics in developing assembling and manufacturing skills while taking into account local developmental conditions.

“This approach also enabled the creation of local components manufacturing capacities and necessary supply chains which were later upgraded to meet the needs of evolving automotive industry. It became possible for such economies to migrate seamlessly from motorcycle to automobile manufacturing in a sustainable manner.”

He gave a few examples of companies that started with motorcycles to as Honda, Yamaha, Suzuki, Kawasaki in Japan; BMW in Germany, Harlwey Davidson in the United States of America, among others.

“In recent times, Asian countries such as Thailand, Indonesia and Vitenam are developing their domestic automotive industries by using the same strategy,” Ugbaja said, adding that it was doubtful if Nigeria’s automotive manufacturing efforts would succeed if this basic principle was ignored.

While speaking during the AGM, the Chairman of the association, Dr Hezekiah Adediji, said that the automotive policy should have been delayed for practitioners to start building capacity locally first.

He called on members to embark on backward integration and set up auxiliary industries manufacturing what members would need while supporting and patronising one another.

Also speaking, the Director General, MAN, Mr Segun Ajayi-Kadiri, said, “The advancement of this sector is very important to MAN as the industry is part of the growth strategy we envisage for the manufacturing sector.

“The advent of motorcycle assemblers has contributed significantly to the rise in the use of this mode of transportation in Nigeria with its attendant positive impact on the socio-economic life of the people.

“Motorcycles and tricycles have come with a host of value addition to the economy by creating business space for mechanics, spare parts dealers and local revenue generation sources through taxes, levies and licences.”

However, with the advantages also come risks, Ajayi-Kadiri said, adding that crimes, accidents, environmental pollution, flouting of traffic regulations and other societal ills had been associated with the increase of this means of mobility in the country.

“It therefore behoves your subsector to fashion out a communication strategy and line up activities to support the mitigation of these societal ills.

“This is a strategic move to redeem the good image of your sector and guarantee the continued survival of your businesses,” he said.

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

Continue Reading
Comments

Company News

Guinness Nigeria Postpones Spirits Importation Exit, Extends Deal with Diageo

Published

on

Guinness - Investors King

Guinness Nigeria Plc has announced a delay in its plan to halt the importation of spirits as it extended its agreement with multinational alcoholic beverage company Diageo until 2025.

The decision, communicated through a corporate notice filed with the Nigerian Exchange Limited on Tuesday, cited a longer-than-expected transition period for separating its business from Diageo’s.

Initially slated for discontinuation in April 2024, the importation of premium spirits like Johnnie Walker, Singleton, Baileys, and others under the 2016 sale and distribution agreement with Diageo will now continue for an additional year.

The extension comes as the process of business separation between Guinness Nigeria, a subsidiary of Diageo, and Diageo itself faces unexpected delays.

In October, Guinness Nigeria had announced plans to cease importing spirits from Diageo, a move aimed at reducing its foreign exchange requirements.

However, the separation process has encountered unforeseen hurdles, necessitating the extension of the importation agreement.

The notice, signed by the company’s Legal Director/Company Secretary, Abidemi Ademola, highlighted the ongoing efforts by Guinness Nigeria and Diageo to implement the separation, originally scheduled for completion by April 2024.

The extension underscores the complexity of disentangling the businesses and ensuring a smooth transition.

Guinness Nigeria reaffirmed its commitment to the long-term growth strategy, aligning with Diageo’s decision to establish a new, wholly-owned spirits-focused business.

Despite the delay, both companies remain dedicated to managing the importation and distribution of international premium spirits in West and Central Africa, with Nigeria as a key hub.

The postponement comes amid challenges faced by Guinness Nigeria, including significant exchange rate losses, which amounted to N49 billion in the 2023 half-year operations.

Despite these setbacks, the company remains optimistic about its future prospects in the Nigerian market.

Continue Reading

Business

Private Sector Warns: Interest Rate Hike to Trigger Job Cuts and Inflation Surge

Published

on

Private employers

As the Central Bank of Nigeria (CBN) announced a hike in the Monetary Policy Rate (MPR) from 22.75% to 24.75%, concerns have been raised by the private sector regarding the potential ramifications on job stability and inflationary pressures.

The move, aimed at curbing inflation and stabilizing the exchange rate, has prompted apprehension among business operators who fear adverse effects on the economy.

Representatives from the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA) and the Nigerian Association of Small Scale Industrialists have voiced their worries over the increased difficulty in accessing affordable credit.

They argue that the higher interest rates will impede the private sector’s ability to borrow funds for expansion and operational activities.

This, they fear, could lead to a reduction in business investments and subsequently result in widespread job cuts across various sectors.

The Lagos Chamber of Commerce and Industry (LCCI) acknowledged the necessity of the interest rate hike but emphasized the potential negative consequences it may bring.

While describing it as a “price businesses would have to pay,” the LCCI highlighted the current fragility of the economy, exacerbated by various policy missteps.

They cautioned that the increased cost of borrowing could stifle entrepreneurial activities and discourage expansion plans critical for economic growth and job creation.

Experts have echoed these concerns, warning that the tightening monetary conditions could exacerbate inflationary pressures and hinder economic recovery efforts.

With inflation already soaring at 31.70%, the rate hike could further fuel price hikes, especially in essential goods and services, thus eroding the purchasing power of consumers.

However, CBN Governor Yemi Cardoso defended the decision, citing the imperative to address current inflationary pressures and ensure sustained exchange rate stability.

He emphasized the need to restore the purchasing power of ordinary Nigerians and expressed confidence that the economy would stabilize by the end of the year.

Despite assurances from the CBN, stakeholders remain cautious, calling for a more nuanced approach that balances the need for price stability with the imperative of fostering economic growth and job creation.

As businesses brace for the impact of the interest rate hike, all eyes are on the evolving economic landscape and the measures taken to mitigate its effects on livelihoods and inflation.

Continue Reading

Business

Breaking Barriers: Transcorp Hotels CEO Shares Journey from Crisis to Success

Published

on

Dupe Olusola

Dupe Olusola, the Managing Director/CEO of Transcorp Hotels Plc, reflects on her remarkable journey from navigating the depths of a global pandemic to achieving unprecedented success in the hospitality industry.

Appointed in March 2020, amidst the onset of the COVID-19 pandemic, Olusola found herself at the helm of a company grappling with the severe economic fallout and operational challenges inflicted by the crisis.

Faced with a drop in occupancy rates from 70% to a mere 5%, Olusola and her team were confronted with the daunting task of steering Transcorp Hotels through uncharted waters.

Undeterred by the adversity, they embarked on a journey of transformation, leveraging creativity and resilience to navigate the turbulent landscape.

Implementing innovative strategies such as introducing drive-through cinemas, setting up on-site COVID-19 testing facilities, and enhancing take-away services, Transcorp Hotels adapted to meet the evolving needs of its guests and ensure continuity amidst the crisis.

Embracing disruption as a catalyst for growth, Olusola fostered a culture of collaboration and teamwork, rallying her colleagues to overcome obstacles and embrace change.

Through unwavering determination and a commitment to excellence, Transcorp Hotels emerged from the pandemic stronger than ever, breaking profit and revenue records year after year.

“It’s indeed been a great opportunity to learn and relearn, to lead and to grow. When you see success stories, remember it’s a journey with twists, turns, ups and downs but in the end, it will all be okay”, she said.

Olusola’s leadership exemplifies the power of adaptability and perseverance, inspiring her team to transcend limitations and chart a course towards unprecedented success.

As Transcorp Hotels continues to flourish under her stewardship, Olusola remains steadfast in her dedication to driving innovation, fostering growth, and breaking barriers in the hospitality industry.

Continue Reading
Advertisement




Advertisement
Advertisement
Advertisement

Trending