TheNewsGuru

Tag: Manufacturing Sector

  • KADCCIMA president urges FG to revamp manufacturing sector

    KADCCIMA president urges FG to revamp manufacturing sector

    The President, Kaduna Chamber of Commerce, Industry, Mines and Agriculture (KADCCIMA), Mr Ishaya Idi, has called on the Federal Government to urgently address the problems bedevilling the country’s manufacturing sector.

    Idi’s call is contained in a statement he issued in Kaduna on Monday.

    He was reacting to the plan to relocate some departments of the Central Bank of Nigeria (CBN) and the Federal Airports Authority of Nigeria from Abuja to Lagos.

    He stated: ”Priority should be given to revamping the manufacturing sector, such as automobiles, automotive, agro-allied industries, cotton and textile value chain and other areas in which we have competitive advantage to produce for both local consumption and export.

    ”We noticed with great concern the recent development in the country in respect of the directives by the Federal Government to relocate some departments of the CBN and some parastatals in the Ministry of Aviation from the FCT to Lagos.

    ”We see no tangible reasons to support this development as it  does not provide any immediate economic advantage to the country.

    ”We are of the view that Abuja, being the capital of Nigeria, should be made to remain so with all the necessary institutions that will make it function as such.

    ”The reason(s) advanced for the relocation would rather undermine the status of Abuja as the nation’s Federal Capital Territory.”

    Idi advised that rather than relocate the institutions and departments, the government should concentrate on the provision of more infrastructure in the FCT, considering the phenomenal rate of growth of the city as one of the fastest in the world.

    ”Apart from the huge expenditures to be incurred for the exercise, there is a lot of emotional distress and dislocation on the part of the civil servants that would be affected.

    ”In addition, the envisaged humongous amount of money the relocation will gulp could be used to fund impactful projects.

    ”What we need now are clear policies and steps to revisit  areas that gulp the nation’s dwindling foreign exchange.

    ”Furthermore, the present administration should concern itself with addressing  current economic problems as they continue to bedevil our nation in various areas.

    “In addition, high cost of living, widespread poverty, pervasive insecurity, unemployment and continuous fall of the naira against major currencies should be government’s priority,” the KADCCIMA boss added.

    He also advised the Federal Government to always promote and roll out policies that would unite  Nigerians rather than polarise them.

    CBN has announced plans to relocate some of its critical line departments, such as Banking and Supervision, Other Financial Institutions Supervision, Consumer Protection, Payment System Management and Financial Policy Regulations to Lagos.

    The Minister of Aviation, Festus Keyamo, has directed that the agency’s headquarters be relocated from Abuja to Lagos.

  • PMI: Nigeria’s manufacturing sector records first growth since May

    PMI: Nigeria’s manufacturing sector records first growth since May

    The October Purchasing Managers’ Index for the manufacturing sector stood at 49.4 index points, indicating a reversal of five consecutive months of contraction which started in May.

    This is according to the result of PMI survey released by the Statistics Department of Central Bank of Nigeria (CBN) on Tuesday.

    The manufacturing PMI for the month of September was 46.9 index points.

    The survey revealed that of the 14 subsectors surveyed, six recorded expansion above 50 per cent threshold.

    Subsectors that reported expansion were electrical equipment, transportation, equipment, printing and related support activities, chemical and pharmaceutical products, textile, apparel and footwear, as well as cement.

    The remaining eight subsectors reported contraction.

    They are primary metal, petroleum and coal product, paper products, fabricate metal products, furniture and related products, nonmetallic mineral products, plastic and rubber products and food, beverage and tobacco products.

    The survey indicated that in employment level in the review month two subsectors recorded stationary level of employment while the remaining nine subsectors recorded lower employment levels.

    PMI for the non-manufacturing sector, however, stood at 46.8 points in October 2020, indicating contraction in nonmanufacturing PMI for the seventh consecutive month.

    The survey stated, “of the 17 sub-sectors surveyed, three subsectors reported growth in the following order: electricity, gas, steam and air conditioning supply, art, entertainment and recreation and Health care and social assistance.

    “ Eleven subsectors reported declines in the following order: management of companies; utilities; Information and communication; construction; professional, scientific, and technical services; repair, maintenance/washing of Motor Vehicles.’’

    Other declining subsectors are wholesale/retail trade; educational services; transportation and warehousing; accommodation and food services and real estate rental and leasing.

  • CBN rallies manufacturing, agric sectors to jump-start economy

    The Central Bank of Nigeria (CBN) has appealed to industrial conglomerates operating in the country to support efforts aimed at growing the Nigerian economy and returning it to its glory days.

    At a meeting with the Chief Executive Officers (CEOs) of conglomerates in Nigeria, Governor of the CBN, Mr Godwin Emefiele, said he would be happy to return the Nigerian economy to the period when the manufacturing and agricultural sectors formed the base of the economy.

    He, therefore, enjoined the conglomerates to key into the current administration’s drive of diversifying the base of the Nigerian economy by taking advantage of its large population to market their products, which he insisted could be produced in Nigeria and exported to the rest of the world.

    He also pledged the bank’s willingness to provide foreign exchange (forex) to companies that required such for raw materials and machinery that could not be obtained in Nigeria.

    However, he emphasised that the apex bank will not support the importation of items that can be produced in Nigeria because the nation’s chief lender would not spend its foreign exchange reserves on what would not boost the economy and generate jobs for Nigerians.

    Mr Emefiele, while acknowledging the challenge of low crude oil prices to major economies of the world, expressed confidence that the price of crude will not remain at low levels for a long period, declaring that Nigeria’s foreign reserves of about $37 billion was sufficient and robust to support the economy at the moment.

    He assured the CEOs of the bank’s willingness to collaborate with other fiscal authorities to improve on their ease of doing business in Nigeria, with a view to simplifying their import and export processes.

    At the virtual meeting, Mr Emefiele said the administration of President Muhammadu Buhari was making efforts ensure that the process of full reopening of the country’s economy goes smoothly.

    President Buhari had shut down the nation’s commercial capital, Lagos, alongside Abuja and Ogun State for five weeks due to the Coronavirus (COVID-19) pandemic.

    He only eased the lockdown in a phase one from May 4, 2020 and will remain that way till June 1, 2020, when it would be reviewed again. Businesses have been allowed to operate in Lagos between 9am and 3pm because of the national curfew from 8pm to 6am.

  • Manufacturing sector generates N864b in VAT – NBS

    Manufacturing sector generates N864b in VAT – NBS

    The manufacturing sector contributed about N864 billion of the N3.63 trillion generated as Value Added Tax (VAT) from 2013 to 2018, National Bureau of Statistics (NBS) reported has indicated.

    The agency, which stated this in its latest report titled: Sectoral Distribution of VAT in Q4, 2018 reported that the sector’s contribution represented 24 per cent of the total VAT generated within the six-year period.

    An analysis of the VAT accruals on yearly collection basis showed that N481.5 billion was collected by the Federal Inland Revenue Service (FIRS) in 2013 compared to the N493.9 billion generated in 2014.

    In 2015, the report indicated that N759.4 billion was raked in by the Service from the revenue source while N777.51 billion was collected as VAT by it in 2016. The NBS reported N972.35 billion VAT accrual in 2017 and N1.10 trillion in 2018.

    According to the official statistics producing and reporting agency, the manufacturing sector has eight sectoral activities among the 28 sectoral categories from which the N864 billion VAT derived.

    The report listed the manufacturing sector’s sectoral activities as automobiles and assemblies, breweries, bottling and beverages; as well as chemicals, paints and allied industries. Others are, other manufacturing, petrochemical and petroleum refineries; pharmaceutical, soaps and toiletries; publishing, printing and paper packaging; and textile and garment industries.

    A further breakdown of the real sector’s VAT in the six-year period on sector by sector basis showed that the automobiles and assemblies contributed N8,691,597,713.42; breweries, bottling and beverages generated N192,028,180,262; and chemicals, paints and allied industries raked in N6,989,648,842.73.

    Other manufacturing contributed N597,005,133,563, while petrochemical and petroleum refineries raked in N37,013,858,414.6, and pharmaceutical, soaps and toiletries provided N7,131,243,714.78 to the VAT collections.

    In addition, publishing, printing, paper packaging contributed N9,685,665,303.04, while textile and garment industry generated N5,501,007,456.24 to the VAT in the six-year period.

  • Manufacturing sector tops contribution to N273bn VAT generated in Q3 – NBS

    Manufacturing sector tops contribution to N273bn VAT generated in Q3 – NBS

    The manufacturing sector had the highest contribution to the Value Added Tax generated in the third quarter of 2018, the latest data obtained from the National Bureau of Statistics (NBS) on Tuesday revealed.

    The figures, showed that the VAT generated in Q3 rose to N273.5bn.

    The NBS said, “Sectoral distribution of Value Added Tax data for Q2 and Q3 2018 reflected that the sum of N273.5bn was generated as VAT in Q3 2018 as against N266.73bn generated in Q2 2018 and N269.79bn in Q1 2018 representing 2.54 per cent increase Quarter-on-Quarter and 9.16 per cent increase Year-on-Year.”

    It added that, “Other manufacturing generated the highest amount of VAT totalling N31.48bn and closely followed by professional services and commercial and trading both generating N25.57bn and N15.99bn respectively; while mining generated the least and closely followed by pharmaceutical, soaps & toiletries and textile and automobiles & assemblies with N52.70m, N177.34m and N265.35m generated respectively.”

    Out of the total amount generated in Q3 2018, N128.62bn was generated as non-import VAT locally while N58.84bn was generated as non-import VAT for foreign.

    The balance of N86.04bn was generated as NCS-Import VAT in Q3 2018, according to the NBS.

    VAT from automobiles and assemblies fell to N265.35m in Q3 2018, from N488.76m in Q2 and N441.66m in Q1.

    The data, further revealed that breweries, bottling and beverages generated N7.82bn VAT in Q3, from a figure of N9.43bn in Q2 and N8.88bn in Q1.

    The building and construction sector generated N2.37bn VAT in Q3 2018, from N2.67bn in Q2 and N2.38bn in Q1 respectively.

    Chemicals, paints and allied industries generated N393.03m VAT in Q3 2018, from N317.15m in Q2 and N420.85m in Q1 respectively.

     

  • Nigeria’s manufacturing sector expands for 3rd consecutive month – CBN

    Nigeria’s manufacturing sector expands for 3rd consecutive month – CBN

    Nigeria’s manufacturing sector has witnessed expansion for the third consecutive month, according to data released by the Central Bank of Nigeria (CBN).

    TheNewsGuru.com reports that the Purchasing Manager’s Index (PMI) which measures the size of the nation’s manufacturing sector rose to 52.9 index points at the end of June.


    This figure showed a 0.4 per cent increase from 52.5 per cent of its value in May, 2017.


    According to the CBN data, 12 of the 16 sub sectors reported growth in the review month in the following order: computer & electronic products; paper products; plastics & rubber products.

    Others included primary metal, transportation equipment, petroleum & coal products, appliances & components, textile, apparel, leather & footwear, furniture & related products.


    Electrical equipment, food, beverage & tobacco products and fabricated metal products also made the list.


    The remaining four sub-sectors which declined in the order included nonmetallic mineral products, cement, chemical & pharmaceutical products and printing & related support activities


    “Composite PMI above 50 points indicates that the manufacturing/non-manufacturing economy is generally expanding.


    “50 points indicates no change and below 50 points indicates that it is generally declining,’’ the data showed.

     

     

    NAN