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Manufacturers See Poor Power Supply as Biggest Challenge

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  • Manufacturers See Poor Power Supply as Biggest Challenge

Manufacturers in Nigeria have expressed lack of confidence in the power sector.

This was revealed by the Manufacturers CEOs Confidence Index for the first quarter of 2019.

The Manufacturers CEOs Confidence Index is a quarterly survey conducted by the Manufacturers Association of Nigeria to measure the pulse of the manufacturing sector.

While presenting the report to journalists in Lagos recently, the President, MAN, Mansur Ahmed, who was represented by the Chairman of the MAN Economic Policy Committee, Mr Paul Gbededo, said, “During the fieldwork of the project, our respondents were requested to itemise a number of challenges confronting the sector in order of severity.

“The outcome shows that poor electricity supply was ranked first; multiple taxation and over-regulation were jointly ranked second; high interest rate was third; poor access to Nigerian ports and delay in clearance of containers/cargoes and the attendant demurrage were ranked fourth.”

The MCCI First Quarter 2019 was the maiden edition that took into account manufacturers’ perception on a set of diffusion factors, which include: current business condition, business condition for the next three months, current employment condition, rate of employment, employment condition for the next three months and production level for the next three months.

The analysis also took into consideration the general macro-economic condition (foreign exchange, lending rate, credit to the manufacturing sector and capital expenditure of the government) and the business operating environment (over-regulation, multiple taxes/levies, access to seaports, local raw-material sourcing and government patronage of made-in-Nigeria goods).

Ahmed noted that the result of the MCCI was critical to strengthening the advocacy mandate of the association.

Explaining why power generation received the lowest rating in the survey whose respondents were the Chief Executives Officers of MAN-member companies across the six geo-political zones of the country, Gbededo said despite the efforts put in by the government and other stakeholders, power had continued to constitute the greatest challenge for the manufacturing sector.

According to him, this is because power generation in the country is dependent on the supply of gas, which in itself is susceptible to fluctuations due to frequent attacks on gas pipelines.

He said, “Power is still the biggest challenge to manufacturers, especially the ones in the Small and Medium Enterprises sector, because they rely almost totally on public power supply.

“The big firms generate their own electricity most of the time and the cost of generating this power increases the cost of production and therefore the products may not be competitive even in Nigeria.

“That is why solving the issue of electricity will see us becoming more competitive and easing the pain of manufacturers. “

Overall, the aggregate MCCI for the first quarter of 2019 stood at 51.3 points, which is slightly above the 50 points benchmark of good performance.

According to the association, this performance substantiates the need to pay attention to myriad of operating challenges hindering the sustenance of growth in the sector, notwithstanding numerous policies designed to incentivise real sector of the economy.

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

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Siemens Energy Nigeria Appoints Seun Suleiman as Managing Director

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Seun Suleiman is the New Managing Director of Siemens Energy Nigeria

Mr. Seun Suleiman is the new managing director of Siemens Energy Nigeria, the company announced on Wednesday.

According to the statement released by the energy company, Suleiman will be responsible for the entire management of operations and decisions on business policies and corporate strategy.

Commenting on his appointment, Suleiman said, “It is an absolute honor to lead the business for Siemens Energy Nigeria and I look forward to delivering on the brand’s promise of excellence.

Suleiman joined Siemens Energy in 2014, bringing over 15 years’ experience and deep expertise in the private sector across Europe and West Africa.

The statement said, “He is an accomplished business strategist and success-driven leader with strong business acumen. Suleiman has also been a core member of the executive management team at Siemens Energy serving in roles as Sales Director West Africa – Service Distributed Generation Oil & Gas and Vice President Service & Digital.

“Prior to this, he also held various functional and managerial positions with ABB Ltd UK, ABBNG Nigeria, Schneider Electric Nigeria and Dresser-Rand Nigeria Ltd.

It added that Suleiman was experienced in establishing operational excellence with specific competence in the power, oil and gas sectors.

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FG Reopens Osubi Airport Warri for Daylight Operations

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FG Reopens Osubi Airport Warri for Daylight Operations

The Federal Government on Monday said the Osubi Airport in Warri has been reopened for daylight operations.

The Minister of Aviation, Hadi Siriki, disclosed this in a tweet.

The airport was closed in February 2020 over mismanagement and debt allegation involving aviation service providers and airport management.

However, Oberuakpefe Afe, a lawmaker representing Okpe/Sapeie/vaie federal constituency, recently moved a motion for the Federal Government through the ministry of aviation and relevant authorities to reopen the airport for flight operations.

On Monday, Hadi Siriki said “I have just approved the reopening of Osubi Airport Warri, for daylight operations in VFR conditions, subject to all procedures, practices and protocols, including COVID-19, strictly being observed. There will not be need for local approvals henceforth.

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Nigerian Brand, JR Farms Acquires 11% Stake in Rwandan Firm

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Nigerian Brand, JR Farms Acquires 11% Stake in Rwandan Firm

JR Firms, an agribusiness firm with headquarters in Nigeria, has announced partnership with Sanit Wing Rwanda through the acquisition of 11 per cent stake in the company.

The CEO of the company, Mr Rotimi Olawale, explained in a statement that the partnership was in furtherance of its goals to ensure food security, create decent jobs and raise the next generation of agrarian leaders in Africa.

The stake was acquired through Green Agribusiness Fund, an initiative of JR Farms designed to invest in youth-led agribusinesses across Africa.

Sanit Wing Rwanda is an agro-processing company that processes avocado oil and cosmetics that are natural, quality, affordable, reliable and viable.

The vision of the company is to become the leading producers of best quality avocado and avocado by-products in Africa by creating value across the avocado value chain.

With focus on bringing together over 20,000 professional Avocado farmers on board and planting of three million avocado trees by 2025 through contract farming, the company currently works with One Acre Fund in supply of avocado to its processing facility.

The products of the company which include avocado oil, skin care (SANTAVO), hair cream and soap are being sold locally and exported to regional market in Kenya.

With the new partnership with JR Farms- the products of the company will enjoy more access to markets focusing on Africa and the European Union by leveraging on partnerships and trade windows available.

Aside funding, the partnership comes with project support in areas of market exposure, capacity building, exposure and other thematic support to grow the business over the next four years.

JR Farms has agribusiness operations in Nigeria, Rwanda, United States and Zambia respectively.

In Nigeria, the company deals in cassava value chain processing cassava to national staple “garri” which is consumed by over 80 million Nigerians on daily basis, while in Rwanda, it works in the coffee value chain with over 4,000 coffee farmers spread across the East Central African country.

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