Mohammed Shosanya

The Manufacturers Association of Nigeria, MAN, has expressed disgust over the continuous increase in the country’s Monetary Policy Rate, saying the development will collapse manufacturing sector.

Segun Ajayi-Kadir,Director General of MAN,in a statement on Wednesday,said the development will escalate production costs and consequently the prices of finished goods, with consequential effect on unemployment and social instability. It will further compound the prevailing low consumer demand, capacity utilization and profitability.

According to him,it will stifle capacity to make new and further investments, innovation and curtail opportunities for the growth.

He said,the development will constrained the capacity of the sector to compete effectively in regional and global markets, and if unchecked, may trigger critical distress of more manufacturing concerns.

He also said the hike in interest rate,will constrain reinvestment for expansion and introduction of new brands, as significant portion of revenue of manufacturing concerns is directed towards interest payments.

It will further restrain access to capital, judging from the fact that only 16% of total commercial bank credit was disbursed to the manufacturing sector in the first quarter of the year.

He said,it will reduce the flow of investments into the sector and funds required for retooling, upgrading facilities and procurement of new technologies.

“It is noteworthy to state that the worrisome trend occasioned by increase in cost of borrowing is corroborated by the report of NBS, to the effect that manufacturing investment declined significantly in the second quarter of the year.

“This drop underscores the critical link between domestic investment confidence and foreign investor sentiment. In addition, the share of manufactured exports in non-oil exports also declined from 21.4% in Q4 2023 to 15.1% in Q1 2024”

Mohammed Shosanya

The Manufacturers Association of Nigeria,MAN,has emphasized the need for the Federal Government to protect and support Dangote Refinery to enable it thrive.

Its Director-General, Segun Ajayi-Kadir, expressed this in a statement on Tuesday, wherein he faulted the recent controversial remarks of the Nigerian Midstream and Downstream Petroleum Authority,on the diesel of Dangote Refinery.

The Dangote Refinery,he said, will play a significant role in reducing Nigeria’s dependence on imported petroleum products, reduce cost and energy poverty and significantly boost our energy sufficiency.

He said:”This is also a company in which Nigeria and Nigerians are shareholders. We should never encourage or promote a preference for imported products over local alternatives. This amounts to importing poverty and exporting prosperity.

“As you are aware, the manufacturing sector is beset with multifaceted challenges. They include: high cost of electricity, high cost of compliance with regulatory requirements, lack of access to financing, unfavorable foreign exchange and unfair competition from imported and smuggled products.

“It is therefore imperative that the Nigerian government takes proactive steps to address these binding constraints in order to improve the competitiveness of local industries and enhance their contribution to the Gross Domestic Product”.

He added that local investors are not only drivers of economic growth but also champions of national development.

The investors,he said,are the mirrors of the country’s national industrial aspirations and their wellbeing is the attraction for both local and foreign would-be investors.

According to him,there is hardly any major foreign investor that would be encouraged to invest in Nigeria by the recent unwarranted castigation of Dangote Refinery.

He maintained thatsupporting and protecting local investors like the Dangote Refinery, would be sending a clear signal to foreign investors to take advantage of the conducive environment and invest, thereby creating jobs and building a more prosperous future for Nigerians.

He called for caution from major actors, government agencies and regulators in the oil and gas sector of the economy over the recent debunked allegations of poor quality of diesel leveled against Dangote Refinery.

He said,it is expected that agencies of government, that provide regulatory oversight functions should promote an enabling business environment for local investments to thrive.

He added:”No regulatory agency should be seen to be casting a shadow over a home grown investment like the Dangote Refinery. The allegations of poor quality, monopolistic tendencies and non issuance of license have since been roundly debunked.

“There may then be the need to issue a clarification that absolves the Dangote Refinery of the negative perception generated by the news report”

He said that,local investors in Nigeria, particularly the Dangote Industries Limited (DIL) play a vital role in driving economic growth, they pay taxes, they create jobs and foster development within the country.

Mohammed Shosanya

The Manufacturers Association of Nigeria,MAN,is seeking reversal of increase in electricity tariffs or only 100% increase in electricity tariff for minimum of 20 hours of supply.

This,it said,will go a long way in onboarding the private sector in the new agreement on the minimum wage announced by the Federal Government recently.

Its Director -General,Segun Ajayi-Kadir,who said this in a statement,also emphasized the need for SMEs and MSMEs to be exempted from compliance due to their incapacity and prevailing operational challenges.

According to him,there should be Central Bank of Nigeria’s redemptions of all validly transacted outstanding forex forwards for companies in the productive sector.

He said there should be duty exemption on imported conversion kits and government subsidy on procurement of same,and a freeze on introduction of new taxes on businesses for the next five years

He reasoned that there should be fixed rate of N800 for the assessment of import duty on all production inputs,and a revisit of the recent Financial Reporting Council regulation to curtail its application to private businesses.

He also advocated discontinuation of the price verification portal as it is inimical to the smooth operation of businesses and the basis for setting it up no longer exist.

Mohammed Shosanya

Chairman of the Dangote Group, Aliko Dangote, has faulted the hike of interest rate to almost 30 per cent by the Central Bank of Nigeria (CBN).

He spoke at the Banquet Hall of the State House, Abuja, during the opening session of a three-day summit organised by the Manufacturers Association of Nigeria (MAN), on Tuesday.

He said with the present interest rate regime, it will be difficult to create jobs,adding that it would also be tough for the manufacturing industry to grow and compete favorably.

“Nobody can create jobs with an interest rate of 30%. No growth will happen”,he said.

Dangote,who advocated the need for new policies that will protect domestic industries,also called on the government to protect existing businesses in the country, especially manufacturers, by providing an enabling environment for them to thrive.

He said:“We must look to leading countries in the West and the East who are actively protecting their domestic industries.”

He further likened an import-dependence to poverty importation.

He added:“Import dependence is equivalent to importing poverty and exporting jobs. No power, no growth, no prosperity. Similarly, no affordable financing, no growth, no prosperity. There is no industrialization without protection Ignoring these facts, is what gives rise to insecurity, banditry, kidnapping and abject poverty”.

Mohammed Shosanya

The Standards Organisation of Nigeria (SON), has released 80 approved standards for Compressed Natural Gas (CNG) for road vehicles and related appliances to the Presidential Compressed Natural Gas Initiative(PCNGI).

This was conveyed in a statement on Monday issued by Mrs. Foluso Bolaji, Director, Public Relations in SON.

The statement explained that the development marked the beginning of the journey towards safer, more reliable, cheaper, environmentally sustainable, and most importantly alternative fuel utilisation across Nigeria for road vehicles and other CNG-related appliances.

Bolaji said that SON’s commitment to excellence and innovation in line with international best practices has culminated in developing and approving these standards, representing a significant milestone in the efforts to promote safety and quality in the energy sector.

According to her, “Compressed Natural Gas (CNG) is a clean and efficient alternative to traditional fuels, with applications ranging from transportation to industrial processes.

“However, its safe and effective utilisation requires adherence to rigorous standards that address production, storage, transportation and utilisation.

She further noted that the Presidential CNG Initiative (PCNGI) is a component of the palliative intervention of President Bola Ahmed Tinubu’s administration and one of the many steps the president has taken to ensure every Nigerian enjoys his Renewed Hope Agenda.

She said: “PCNGI was inaugurated and quickly set up a committee comprising relevant regulatory agencies such as, the National Mid-Stream Down-stream Petroleum Regulatory Authority (NMDPRA), Standards Organisation of Nigeria (SON), Nigerian Institute of Transport Technology (NITT), National Automotive Design and Development Council (NADDC), Ministry of Finance Incorporation (MOFI) and other key stakeholders.

“Every regulatory agency was given responsibility within its framework and tasked to quickly deliver hope to Nigerians by ensuring that Nigeria is ready to include CNG as an alternative fuel for vehicle propulsion.

“In furtherance to the above, the Standards Organisation of Nigeria developed Eighty (80) Standards and Guidelines for CNG road vehicles and related appliances that the Honourable Minister of Industry, Trade and Investment, Dr. Doris Nkiruka Uzoka-Anite approved.

“The Eighty (80) standards encompass a wide range of technical specifications and requirements, including:CNG Conversion kit, Standards for electrical connections and vehicle Diagnostics, Standards for Road-worthiness and Vehicle safety,
Standards for CNG storage Vessels, Standards for CNG refueling Stations, and Guideline for installation of specific components to support the use of compressed natural gas (CNG) for Vehicle propulsion.

“The development of these standards was a collaborative effort, bringing together industry experts, regulators, and stakeholders from across the country.”

Bolaji explained that adhering to these standards offers numerous benefits, such as enhanced safety for consumers, workers, and the environment; improved reliability and efficiency in CNG operations;
facilitated interoperability and compatibility within the CNG ecosystem;increased confidence among consumers, investors, and policymakers.

She implored all stakeholders to embrace them wholeheartedly and to prioritise their effective implementation, adding that “By doing so, we can assure that the utilisation of CNG meets the highest standards of safety, quality and environmental sustainability and will provide the best alternative for fuel utilisation.”

Mohammed Shosanya

The Centre For The Promotion of Private Enterprise,has advocated the need for the Federal Government to review to review of Expatriate Employment Level it introduced to promote the localization of skills and economic growth in the country.

The Centre also advised the government to review the policy and undertake broader consultation to fine tune the policy to ensure that the country does not hurt genuine investors in the country.

Dr.Muda Yussuf,the Chief Executive Officer,said in a statement that it was it also important for the country to worry about the implications of possible diplomatic reciprocity, especially for our diaspora community.

Lamenting the the time line for compliance of the policy is too short,Yussuf maintained that for such a major policy shift, companies needed to be given minimum of six months.

He added:”This would be very disruptive for their businesses, plans and projections. Some of the companies affected are major investors that have investment billions of dollars and have been in Nigeria for decades. This administration, being an investment friendly regime, should give companies more time.

“The country needs more direct investors than portfolio investors at this time. But ironically, both foreign direct investors and domestic direct investors would be more negatively impacted than portfolio investors. The economy needs more investors in the real economy – oil and gas, manufacturing, infrastructure, mining, ICT, Healthcare – all of which require varying skills and competencies.

“The truth is that major Foreign Direct Investments will typically come some critical staff to oversee their investments. It is imperative to give some consideration to this class of investors, given the scale of their investments which could be in billions of dollars.

“The challenge of influx of foreigners, especially the unskilled ones are more pronounced in some sectors than others. Vulnerable sectors include construction, distributive trade, hospitality and logistics. The policy should be targeted at these more vulnerable sectors”.

He said,the policy may trigger reciprocal actions from other countries and this may affect Nigerians in diaspora.

He also said,there are currently over 17 million Nigerians in various countries around the world doing well in various fields,adding that the country has the highest diaspora remittances on the continent, generally in excess of $20 billion.

Nigeria has the largest diaspora population in Africa,he said,stressing that all of these could be at risk as a result of this policy

He added:”If the reciprocity policy is activated in any of their host countries, the effect on our diaspora citizens will be very devastating. Nigeria occupies a leadership position in Africa and very well respected.

“Our president is the current chairman of ECOWAS. This policy does not make an exception for our African brothers and neighbours. This is coming at a time when the African Continental Free Trade Area [AfCFTA] is gaining traction.

“This policy could be a major setback for the continental economic integration vision. Besides many of our citizens are in many African countries. They may be victims of a reciprocal actions by other African countries”.

The Head of Media and Marketing, NB, Wasiu Abiola,who disclosed this in Lagos at a media parley,said the company is taking a bet on the Nigerian Market.

“We have been here for over 77 years, we have no plans to exit Nigeria,” he said.

He said the company is a part of the economy and faces the same challenges others are facing, thus the price review is necessitated to sustain the company.

The company had recently issued a new price review notification to all its customers in the West Zone.

According to a letter dated February 12, 2024, the price review, effective February 19, 2024, is deemed necessary to offset the impact of increased production expenses.

“This is to inform you that we are constrained to review the prices of some of our SKUs with effect from Monday, February 19, 2024.

“This review has become necessary because of continued rising input costs and the need to mitigate the impact,” the statement said.

Abiola added that despite the economic challenges, the company is still having innovation at the core of its being, stressing that new products and campaigns to keep their customers satisfied will be launched.

Speaking,Obinna Aneke, Innovation Manager, NB, said the company is poised to redefine the beverage space by continuously evolving with the taste of the consumers.

“Beverages have not evolved in terms of taste, so what we have done is to bring some excitement so that people will find them more exciting,” he said.

Responding to the question of reduction in the quality of their product due to the economic challenges, Aneke assured that the company will retain its standard quality irrespective as the consumers’ satisfaction is their utmost priority.

The five major portfolio managers who gave a detailed explanation of their brand and how each of these portfolios have been working on innovations to ensure that the consumers’ satisfaction is achieved.

According to Laolu Babalola, Portfolio Manager for Mainstream Beer, the history of Alcoholic beverages in Nigeria is synonymous to the history of the company.

The mainstream portfolios have been able to produce beers that suit the taste of the different regions of the country.

Also, Babalola disclosed that the company through the portfolio has initiated schemes to support entrepreneurs due to the current state of the economy.

He said: “We empower people who are working by supporting their businesses.”

Babalola further disclosed that the company is looking into producing wine, spirit and other flavored drinks as part of its sustainability plans.

“We are getting into production of wines, spirits and other flavored drinks. we believe this is the way to protect the future,” he hinted.

On his part, Eloho Olumide, said the company is dedicated to giving back to the society through various initiatives such as the Maltina Teacher of the year Award which according to him would be a decade long this year.

Mohammed Shosanya

Major sugar refineries across the country have pledged not to increase sugar prices during the Ramadan.

The pledge aligns with the Federal Government’s agenda for food security and economic stability,

The major sugar refineries made the pledge during the recent tour by Dr. Doris Uzoka-Anite, Minister of the Federal Ministry of Industry, Trade, and Investment.

During her visits to leading sugar producers such as Dangote Sugar Refinery Plc, BUA Sugar Refinery Ltd, Flour Mills Limited, Bestaf Ltd, Golden Sugar Company, and the Coca Cola Hellenic Bottling Company (CHBN), Dr. Uzoka-Anite observed a steadfast commitment to maintaining price stability.

A statement on Wednesday from the Federal Ministry of Industry, Trade and Investment, quoted the Minister as saying that “rest assured, there will be no increase in sugar prices, especially during Ramadan.”

The statement noted that the sugar refineries’ pledge was a clear demonstration of their alignment with the government’s efforts to bolster the agricultural sector and food security, key components of President Tinubu’s transformative agenda.

“I have witnessed their dedication to high-quality sugar production. While commendable, our collective goal demands a higher standard,” stated Dr. Uzoka-Anite, acknowledging the industry’s efforts while emphasising the need for continued excellence and efficiency in production.

Addressing performance concerns during her visit to Golden Sugar Company, the Minister stressed that sub-performance in the sugar master plan would not be acceptable.

The statement underscores the refineries’ commitment to not only maintaining prices during Ramadan but also to enhancing overall productivity and efficiency in line with the government’s vision.

“The sugar industry’s commitment to price stability during Ramadan exemplifies a synergistic relationship between the government and the private sector, working hand in hand to achieve common goals.

“This pledge by the sugar refineries, supported by the Federal Government’s resolve, is a reassuring step towards national development.

“The visit served as a strategic platform for the Minister to communicate the government’s unwavering stance on elevating performance standards within the sugar industry, harmonising with the strategic goals embedded in President Tinubu’s 8-Point Agenda,” the statement explained.

Mohammed Shosanya

The Oyo State Government on Monday presented N500m cheques to participating micro finance banks across the seven geopolitical zones in the state, as loan support to small and micro enterprises under the Sustainable Action for Economic Recovery (SAfER).

Presenting the dummy cheques to the representatives of the micro finance banks, the Chief of Staff to the Governor, Hon Segun Ogunwuyi,noted that the funds will cushion the hardship induced by the removal of the fuel subsidy.

Ogunwuyi, who is also the Chairman, SAfER committee, added that the Oyo state government is ready to support small and micro enterprises, maintaining that the beneficiaries were selected based on their business capacities.

He said micro businesses can access between N50,000 to N250,000, while small businesses also have the opportunity of accessing N250,000 to N1million loans under the scheme.

Ogunwuyi emphasized that the participating microfinance banks selected beneficiaries without any political influence.

Earlier in his remarks, the Chairman, SAfER Small and Medium Enterprises (SME) sub-committee, Professor Musibau Babatunde, explained that the loan support will not only boost SME, which is the baseline of the state economy activities, but would also help in achieving sustainable development goals which is to cushion the effects of hardship on people.

He admonished the beneficiaries to fulfill the obligation of repayment in shortest time so as to allow others to benefit from the laudable scheme.

He added that the loan is of no collateral and the beneficiaries have three months moratorium period before the commencement of repayment.

In his welcome address, the Director-General, Oyo State Investment of Public Private Partnership Agency, (OYSIPA), Barrister Olatilewa Folami, enjoined the beneficiaries to deploy the loan into profitable business and give opportunities for others to benefit.

Speaking on behalf of the beneficiaries, Mr. Sunday Fadipe pledged to use the loan judiciously, for the purpose it is meant for, as well as contribute to the development of the state.

Mohammed Shosanya

The Manufacturers Association of Nigeria,MAN,has implored the federal government to stop putting undue pressure on its member through multiplicity of taxes.

The group said,the government should consider expanding tax net to bring in new tax payers which invariably will generate more revenue for the government.

MAN’s President, Otunba Francis Meshioye,disclosed these at the 40th Annual General Meeting (AGM) of Oyo, Osun, Ondo, and Ekiti state branch of MAN with was themed: “Tax Regime and Effects on Manufacturing: A Strategic Approach for Manufacturers.”

He said:”On daily basis, vehicles of members transporting raw materials and manufactured goods are harassed by different consultants who use tout tactics to demand for diverse taxes and levies, many times, these entities behave unprofessional to company personnel.”

He noted that government reform measures and policies had such as removal of fuel subsidy, floating of Naira exchange rate and increase in monetary policy rate had a lot of effect on manufacturers in the country.

He added that the poor performance of economy in the past few years made it imperative for state governments to appreciate the contribution of the manufacturing sector in job and wealth creation.

He,however,commended the Oyo, Osun, Ekiti, Ondo states government support to the manufacturing sector,saying discounts and concessions should also be giving to manufacturing outfits especially members of the association, to reduce imposed financial burden.

He stated that despite challenges facing his members, they has shown remarkable resilience and
determination and would continued to produce high-quality goods, create jobs, and contribute to the growth of the nations economy.

Speaking at the meeting, the chairman of Oyo, Ondo, Osun, and Ekiti branch, Mr Lanre Popoola, call for immediate rehabilitation of roads at the industrial estates.

Lanre Popoola also said its members are inundated with diverse taxes by agencies of the Federal, State and Local authorities. He listed the taxes such as Capital Income Tax (CIT), Value Added Tax (VAT), Stamp Duties, Personal Income Tax, Withholding Tax, and Industrial Training Fund Tax, among others.

He urged regulatory agencies within the branch comprising of Oyo, Osun, Ondo and Ekiti States to harmonize their taxes and levies, saying discounts and concessions should also be giving to manufacturing outfits especially members of the association, to reduce imposed financial burden.

Speaking on the level of roads at the industrial estates, Lanre Popoola said, “In Oyo State, Oluyole Estate and its Extension along the Lagos/lbadan expressway, the Egbeda Industrial
Estates and several road networks are in deplorable state.”

“We call on government to prioritize rehabilitation of these affected roads considering the high revenue generated and we are willing to partner with government in exchange for tax holidays.”

“The situation is similar in Osun, Ondo and Ekiti States and using the same template we can achieve more together sufficient and economically stable future.” Popoola said.