The Manufacturers Association of Nigeria (MAN) has said Nigeria’s wide foreign exchange when compared to global counterparts, unstable power sector, high borrowing cost, taxes and levies are some of the challenges impacting the productivity of the manufacturing sector.
Okwara Udensi, the Chairman of MAN, Edo/Delta branch stated this on Thursday during the 36th annual general meeting of the association, themed, ‘Nigeria’s struggling economy/unstable macroeconomic policies: Lessons and challenges for the manufacturing sector,’ in Benin City.
Udensi also identified weak demand for made-in-Nigeria products and traffic challenges at the Lagos ports as factors hurting the growth of the sector.
He, therefore, urged the federal government to decentralise power generation, adopt and implement Executive Order 003 so that Ministries, Departments and Agencies could give preference to local manufacturers in their procurement of goods and services.
“The major problems facing our members are shortage of foreign exchange, poor electricity supply, high lending interest rates, multiple taxes and levies.
“The manufacturing sector is facing a lot of challenges and the Federal Government of Nigeria has not given the sector the needed support to provide economic growth and development. The government urgently needs to provide adequate bailout for the manufacturing sector to avoid a total collapse of the sector.
“It is our expectation that these identified challenges be addressed by government to move the country from an import dependent to a self-sufficient and export-based one. This can only be made possible with consistency in government policies that will guarantee the required enabling environment so that manufacturing companies are able to operate at minimum capacity.”
Manufacturers Cut Spending on Alternative Energy Sources as Electricity Supply Improves
Nigerian manufacturers reduced their spending on alternative energy sources by 21.25% to N60.4 billion in the first half of 2023, according to the Manufacturers Association of Nigeria (MAN).
This decline is attributed to the increased availability of electricity from the national grid, which improved to 11.3 hours per day, up from 10.2 hours in the same period of 2022.
The report also indicated a slight increase in daily power outages to 4.7 times from 4.4 times in H1 2022.
These improvements in grid electricity availability have positively impacted the manufacturing sector’s energy expenditure, leading to a significant drop from N76.7 billion spent in the second half of 2022.
However, the initial high expenditure on alternative energy sources was driven by skyrocketing diesel prices.
The cost of diesel had surged due to foreign exchange challenges and the implementation of a 7.5% Value Added Tax on Automotive Gas Oil (diesel).
Diesel prices in many states had risen to between N900 and N950 per liter, which threatened the production capacity of numerous manufacturing entities.
The Nigerian Textile Manufacturers Association expressed concerns about the potential closure of textile factories and job losses due to rising energy costs. Textile manufacturers, in particular, found it challenging to afford diesel at such prices.
The Chief Executive Officer of Coleman Technical Industries Limited also highlighted the increased production costs associated with higher diesel prices.
While the improvement in electricity supply is a positive development for manufacturers, the industry remains vigilant about energy costs and their impact on production.
Dangote Group Subsidiaries Contribute N474 Billion in Taxes to Federal Government Over Three Years
In a significant testament to its commitment to corporate citizenship and financial responsibility, three subsidiaries of the Dangote Group have revealed that they paid a substantial total of N474 billion in taxes to the Federal Government over the past three years.
The disclosure was made by Hashem Ahmed, an official representing the multibillion-dollar conglomerate, during the opening ceremony of the 18th Abuja International Trade Fair, which focused on the theme ‘Sustainable financing and taxation as drivers of the new economy.’
The Dangote Group, led by its President Aliko Dangote, stands as not only the largest private-sector employer but also the country’s leading taxpayer. The remarkable N474 billion contribution was primarily made by Dangote Sugar, Dangote Cement, and Dangote Salt.
Also, the group has a longstanding history of extensive financial support, empowerment initiatives, corporate social responsibility programs, sponsorships, and philanthropic endeavors, amounting to several billions of naira.
Hashem Ahmed also expressed the group’s satisfaction with the Federal Government’s commitment to tax reform policies aimed at broadening the tax base and providing essential funding for infrastructure development in the country.
The Minister of Industry, Trade, and Investment, Doris Uzoka-Anite, who spoke at the event, announced the government’s comprehensive plan to support small businesses and startups amid Nigeria’s economic challenges.
The plan includes a N75 billion investment by March 2024 to bolster the manufacturing sector, grants for microbusinesses in every local government, and a N75 billion fund to support up to 100,000 startups and MSMEs at favorable interest rates repayable over 36 months.
The government has also initiated partnerships with tech giants like Microsoft and the African Development Bank, signaling a bright future for Nigeria’s economic growth and innovation.
The Royal Finance Empire: Liechtenstein’s LGT Group Thrives in the World of Wealth Management
In a world dominated by multinational corporations and global conglomerates, the tiny Alpine nation of Liechtenstein has been making waves with its royal finance empire, LGT Group.
This dynasty, led by Prince Hans-Adam II, boasts a legacy dating back nearly a thousand years, surviving wars, floods, and scandals.
LGT Group, the royal family’s private banking and asset management firm, recently reported record-breaking assets under management (AUM) of almost 306 billion Swiss francs ($334 billion) as of June 30, marking a remarkable 6% increase since the end of the previous year.
The Vaduz-based firm’s success is not limited to its home nation; it has been expanding its footprint globally. This month, LGT Group acquired Abrdn Plc’s discretionary fund-management business in the UK and Jersey, adding to its list of external investments since 2021.
Olivier de Perregaux, the CEO of LGT Private Banking, revealed, “We continue to look for opportunities, but we are primarily focusing on organic growth.”
LGT’s impressive growth mirrors the resurgence of Liechtenstein, which has shifted from being notorious as a tax haven to a thriving financial hub. The firm more than doubled its AUM and operating income over the past decade, bouncing back from challenges following the 2008 financial crisis.
The acquisition of talent has also played a crucial role in LGT’s ascent. The firm has been actively recruiting former Credit Suisse staff, especially after the collapse and acquisition of Credit Suisse by UBS Group AG.
This has contributed to a significant increase in LGT’s headcount, which now stands at approximately 5,000 employees.
Prince Hans-Adam’s wealth has also been on the rise, propelling him to the position of Europe’s richest royal. As the sole beneficiary of LGT, he is now ranked as the 215th richest person globally, with a fortune estimated at around $9.2 billion, a remarkable 71-spot jump since the beginning of the year.
Unlike other European monarchs, Prince Hans-Adam personally owns the family’s most valuable assets, making it the oldest fortune on Bloomberg’s wealth ranking.
The origins of this wealth date back to the 12th century when the family acquired land across what is now Germany, Austria, Hungary, and the Czech Republic.
LGT itself was established in 1921 and acquired by the royal family during the Great Depression.
Under Prince Hans-Adam’s leadership, LGT expanded internationally, opening its first international branch in Hong Kong in 1986. Besides LGT, the royal dynasty also owns land, real estate, and an extensive art collection, with the finance empire serving as the driving force behind their fortune.
Liechtenstein’s transformation from a secretive tax haven to a transparent financial center has further bolstered LGT’s success. While the bank faced challenges during the 2008 tax evasion scandal, it rebounded in 2010 and has been on a steady growth trajectory since.
With Prince Hans-Adam’s son, Max, now serving as the chairman of LGT Group, and the family actively involved in major financial decisions, the future appears promising for this enduring royal finance empire.
LGT’s commitment to growth, both organically and through strategic acquisitions, suggests that Liechtenstein’s royal legacy in the world of finance is far from fading.
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