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High Foreign Exchange Amid Other Challenges Hurting Manufacturing Sector – MAN

MAN has said Nigeria’s wide foreign exchange when compared to global counterparts, unstable power sector, high borrowing cost, and others are hurting the manufacturing sector.

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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.”

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

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Entrepreneurship And Industrialization Key to Unlock Nigeria’s Economic Potential – FIRS Boss

The executive chairman of the Federal Inland Revenue Service (FIRS) Muhammad Nami recently disclosed that the key to the economic growth of Nigeria lies in the establishment of Industrial hubs across the nation, as well as active involvement in entrepreneurship among the citizens.

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The executive chairman of the Federal Inland Revenue Service (FIRS) Muhammad Nami recently disclosed that the key to the economic growth of Nigeria lies in the establishment of Industrial hubs across the nation, as well as active involvement in entrepreneurship among the citizens.

While speaking in his Goodwill Message to Nigerians on the nation’s 62nd Independence Day anniversary, Mr. Nami admonished Nigerians to actively invest in the development of industrialization hubs and entrepreneurship, noting that they hold the “key to unlock the massive economic potentials of the country”.

He also called on state governments to take a cue from the Ondo State’s Entrepreneurship Village which was set up to groom and harvest talents for the industrialization of the state.

He proposed that it was ideal for state governments to set up similar hubs in their states as a way of channeling the energies of young Nigerians to productive uses.

In his words, “Nigeria is a country with limitless potential. We are resilient and talented people, and what these young Nigerians need is the enabling environment to thrive.

“A good place to start is the setting up of Entrepreneurship and Industrial Hubs across every State in the country. This would set off a chain reaction that would turn around the fortunes of the country, and tap into the potentials of our vast young and dexterous population.”

“You will be surprised by the number of jobs that would be created. Multitudes would have their lives changed, and an abundance of economic activities would be sparked across the nooks and crannies of our country in an unprecedented manner. Nigeria has what it takes to lead the world, and this is one way to go.”

Mr. Nami also tasked Nigerians to see themselves as the drivers of the country’s development through their patriotic conduct, such as paying taxes.

He said, “I am a firm believer that each of us has a role to play in building the Nigeria of our dreams.

“But we can only achieve this when we are patriotic and carry out civil obligations expected from us, such as respect for law and order, paying our taxes, and loyalty to our country.”

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Mobility Company Uber Increases Fares in Lagos Due to Unfriendly Economic Conditions

Mobility company Uber via an email recently disclosed to its drivers that it was increasing its fares in Lagos.

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Mobility company Uber via an email recently disclosed to its drivers that it was increasing its fares in Lagos.

The company disclosed that this increase in price was necessitated by unfriendly economic conditions, coupled with the increase in the price of fuel which will take effect on October 3, 2022.

According to the email sent, the base fare will increase from ₦340 ($0.78) to ₦450 ($1.04), while the minimum and per minute fare will go from ₦600 ($1.38) to ₦650 ($1.50) and ₦14 ($0.03) to ₦16 ($0.03), respectively.

This is not the first time the mobility company is increasing its fare, it should be recalled that on May 10, 2021 Investors King reported that Uber was increasing its fares by 13 percent in Lagos. According to the company, the increase was to ensure a reliable earning opportunity for driver-partners.

However, the company’s recent decision to once again increase its fares in Lagos may come as a surprise to users but it is in line with its activities in other countries where it has operations.

Lagos is not the only city that has witnessed an increase in fares. In August 2022, Bloomberg reported Uber was increasing its fares in London by 5%, with plans to do the same in other cities across the United Kingdom. 

Uber has not been the only ride-hailing player to increase its prices. A report by Rakuten Intelligence revealed that the cost of a ride on ride-hailing apps had increased 98% between 2018 and 2021, driven partly by a shortage of drivers.

But in recent times, the company has begun pushing for profitability. In an email to employees in May 2022, CEO Dara Khosrowshahi said, “we have to make sure our unit economics work before we go big.” The result of that has been an increase in fares.

However, in 2017 Uber reduced its fare shortly after Taxify, a growing competitor did the same. The company sent a message to its drivers via a mail which reads, “As of today, Uber has reduced fares by 40% in Lagos. This means you can travel for business or explore your city for less than ever before”.

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Tesla Records High Car Deliveries This Year But Failed to Meet Wallstreet Forecast

Tesla reportedly delivered 343,830 electric vehicles in the third quarter (Q3), a new record for the company this year

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Automotive company Tesla reportedly delivered 343,830 electric vehicles in the third quarter (Q3), a new record for the company this year. However, the company still underperformed as it failed to meet Wallstreet projections.

Following the shutdown of its company in China, due to the country’s extended COVID-19 lockdown and challenges around opening factories, Tesla’s delivery fell to nearly 18% in the Second (Q2) of 2022 which took a toll on the company.

Despite the rebound and record number in Q3, there was also a larger-than-usual gap between production and delivery numbers. The company produced 365,923 vehicles in the third quarter.

The company disclosed that part of why it failed to hit certain delivery figures was due to logistical challenges which overshadowed its record deliveries.

Tesla said “it is becoming increasingly challenging to secure vehicle transportation capacity and at a reasonable cost,” but some analysts were also concerned about demand for high-ticket items due to the weakening global economy.

In other words, the car manufacturing company is going to try and evolve beyond its legendary end-of-the-quarter pushes. CEO Elon Musk tweeted that it is trying for a steadier approach, “Customer experience suffers when there is an end-of-quarter rush. Steady as she goes is the right move,” he tweeted.

According to a statement from the company, it said “As our production volumes continue to grow, it is becoming increasingly challenging to secure vehicle transportation capacity and at a reasonable cost during these peak logistics weeks.

“In Q3, we began transitioning to a more even regional mix of vehicle builds each week, which led to an increase in cars in transit at the end of the quarter. These cars have been ordered and will be delivered to customers upon arrival at their destination.”

The economy around the edges is still having a negative impact on Tesla that’s mostly logistical. It should be recalled that on April 21, 2022,  Investors King reported that Tesla realised $18.7 billion in revenue in the first quarter (Q1) of 2022 despite supply disruptions and delays experienced due to Chinese Covid-19 lockdown.

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