Business
Justifying N500bn Manufacturers’ Lifeline
The way he came to power was everything but smooth and so he is trying his best to impress on the people that he is equal to the task which the leadership of a complex country like Nigeria has placed on his shoulders. Hence, the changing of the old order seems to be the major challenge of the Jonathan administration which has so far not spared any stone in its attempt to turn around the fortunes of the common man in Nigeria for good.
It is in pursuit of this challenge that the administration moved to make petroleum products available to ease transportation problems facing the people, a development which has drastically reduced the expletives the common man throws on governments before this administration. Thus, towards reducing the tedium of doing business in Nigeria the federal government recently released the whopping sum of N500 billion to the manufacturing sector to enable major players reactivate moribund and ailing industries to boost the economy. Unveilling the package recently, the Vice President, Arc. Namadi Sambo noted that of the amount, N100 billion is allocated to the textile industry in response to the demands of investors in the sector for financial aid. Already, he said, N40 billion out of the allocation to the textile industry had been disbursed to some investors in the sub-sector.
Mindful of the potentials which the manufacturing sector has in boosting the nations Gross Domestic Product (GDP) and accelerate the diversification of the economy grossly dependent on crude oil export, this plan to revive the manufacturing sector by injecting much needed funds is highly commendable.
However, in view of the high rate of youth unemployment which a robust manufacturing sector could help in redressing, it is hoped that the disbursement of the N500 billion bail-out fund would not be politicised if it must achieve the objective it is set to meet.
This fear was expressed at the 49th annual general meeting of the Nigeria Association of Chambers of Commerce, Industry, Mines and Agriculture, NACCIMA held in Abuja, not too long ago. At that forum, NACCIMA lamented the dwinding fortunes of the nation’s industrial sector. Reviewing the economy, stakeholders decried the drop in industrial capacity to an average of 36 per cent in May 2009. In his articulation of NACCIMA view, its president, Dr Simon Chukwuemeka Okolo blamed the decline in industrial capacity utilisation to the poor operating environment especially very low credit access by operators and infrastructural decay. Okolo observed the initial N70 billion Textile Fund and the N200 billion Special Agric Fund which were aimed at developing the real sector were yet to show desired positive impact on the economy.
“Therefore, government should as a matter of urgency address the current character of credit allocation which shows high degree of disconnection of the financial system from the real sector of the economy,” Okolo observed.
In fact, Okolo advocated the setting up of sector specific development banks like in other countries to restore the real sector as the driving force of the economy and the need to engage the private sector through the Public Private Partnership (PPP) approach by putting in place the appropriate machinery and strategic framework to develop the real sector to enable it drive the economy cannot be over-emphasised.
All said, government’s gesture towards the manufacturing sector and the textile industry in particular is aimed at employment generation for Nigerians. For instance, the textile industry in its hey days in the 1980’s had over 70 firms which together employed over 500,000 workers. Today, the industry, a mere shadow of its original self has no more than 20 firms still in operation with just over 20,000 employees, hence the interest of government in revamping the textile industry which is a major employer of labour.
Besides, Okolo who is also a member of the Presidential Advisory Council (PAC) urged the Federal Government to endeavour to diversify the revenue base of the country through serious encouragement of non-oil exports in the country, stressing that unemployment has continued to soar in the country with dwindling revenue inducing budgetary constraints for the federal government. He then urged the federal government to improve the country’s investment climate to encourage development of industries that will boost production of goods for local consumption and ease the unemployment situation in the country. It follows that the totality of federal government policies must be aimed at boosting local industries which in turn would address the unemployment problem in the country.
Clearly, the glut in the labour market has rubbed off negatively on even the few that are employed. This is why in its ranking of living condition around the world, the United States based Newsweek Magazine judged Nigeria to be second to the worst. The analysis examined factors such as education, healthcare, quality of life, economic dynamism, political environment, the proportion of employed people in the population and industrial output. That government is sensitive to these issues could be gleamed from the ongoing revolution in the manufacturing and power sectors. The solution to the inadequacy of power and energy is considered extremely necessary as the epileptic power outage in most parts of the country has not only created untold hardship for the citizenry but has led to low capacity utilisation of manufacturers as well as reduced productivity of the real sector operators who depend on private provision of alternative sources of electricity through power generators, thereby making the cost of doing business in the country very high. The task to release the country from the vice grip of retrogressive elements has come and the Jonathan/Sambo government needs all the support it could muster to drive the economy. With a buoyant ceremony and near full employment for youths the scourge of militancy in the Niger Delta region and the uprising by youths in the Boko Haram sect would be a thing of the past.
The Nigerian Shippers Council (NSC) says it has registered 160 Port stakeholders into its Regulated Port Service Provider and Users platform since the initiative began in 2023.
Executive Secretary, NSC, Mr Pius Akutah, made the disclosure on the sideline of a sensitisation programme by the commission for port operators in Lagos, with the theme, “Regulated Port Service Provider and Users”.
Represented by the Director, Consumer Affairs, Chief Cajetan Agu, Akutah emphasised the significance of the programme for stakeholders.
He said the sensitisation programme was the second edition after its commencement during the last quarter of 2023.
The Secretary said the 160 registered port operators consist of agencies, terminal operators, shipping companies, individual port users as well as service providers.
“We invited the ports stakeholders for enlightening them on the processes for online registration of Regulated Port Service Provider and Users.
“We have demonstrated to them how to register and how to make payment and we were able to present before them the various categories of the registration.
“The rate of payment is also in the registration. The payment of each group depends on the operation. A shipper pays N30,000, terminal operators and shipping companies pay N300,000, truckers also pay N30,000, while some pay N50,000 and N100,000.
“The Council was able to intimate them on the benefits, because port users benefit more as we help to interface on reducing port charges from time to time”, Akutah said.
He said that there was a need to continue to work with port operators to stop delays and eliminate high costs to make the port efficient.
Also speaking, the Deputy Director, Stakeholders, Service, NSC, Mr Celestine Akujobi, said “the sensitisation exercise was important for the council to enable us bring all the port stakeholders together”.
According to him, this is to avoid challenges during the implementation of the council’s responsibilities.
“By the time we introduce sanctions on defaulters, no operators will complain that he or she is not aware of the registration.
“I’m happy with the turnout of this sensitisation. This shows that the operators are well informed of the statutory friction of the council as the port regulator.
“The final implementation will commence as soon as we discover that all the operators have keyed into the portal.
“We are engaging other ports across the country and we’re hopeful that before the last quater of 2024, the council will implement sanctions on defaulting operators”, Akujobi said.
Earlier, Vice Chairman, National Association of Government Approved Freight Forwards (NAGAFF), Dr Ifeanyi Emoh, said port challenges were enormous, adding that they originated from some of the government agencies.
Emoh urged the council to look into regulating other government agencies, so that there could be a window through which they can collect port charges collectively instead of indiscriminately.
By: Chinedu Wosu
Chivita| Hollandia (CHI Limited) leading fruit juice and value-added dairy manufacturer in Nigeria has rewarded its long standing distributors at the recently held 2024 Distributor Conference. The event with the theme, “Break Boundaries Exceed Expectations” served as a platform to recognise and reward the exceptional contribution of the distributors and wholesalers who play a critical role in Chivita|Hollandia (CHI Limited) success and business goals for the year.
The Distributor Conference was held in two sessions. While the morning session featured keynote addresses, industry insights and brand immersion experience, the evening session was a cultural display of elegance and funfair that culminated in the award presentation and recognition of the contribution the trade partners made to the company in the 2023 year under review.
A key highlight of the event was the award ceremony which acknowledged outstanding trade partners in various regions across the country. The awards recognized commitment, dedication, and outstanding performance in areas of sales growth, brand promotion, and market expansion.
Eelco Weber, Managing Director, Chivita|Hollandia (CHI Limited), stated that the company’s success story is incomplete without the strong partnerships it has built with trade partners. “Today, we celebrate not only the achievements, but the collaborative spirit that has made our growth possible” he said.
Bola Arotiowa, Chief Commercial Officer, Chivita|Hollandia (CHI Limited), in his statement revealed that, the event which was first of its kind will continue to be an annual meeting to enable the company work more closely with its distributors, share insights and action points, help the trade partners familiarize themselves with the company’s goals and objectives for each year, and serve as a driver for mutual success.
“Our distributors are the backbone of Chivita|Hollandia (CHI Limited). Their relentless efforts in distributing our products, promoting our brands, and expanding our reach across the nation is truly commendable. As the bridge between us and our valued consumers, it is very important to reward their hard work and dedication for being an essential part of the Chivita|Hollandia (CHI Limited) family. Together, we will continue to deliver great products to our conusmers which in turn will deliver value to them”, Mr. Arotiowa added.
Speaking at the conference, HajiyaBilikisuSaida, Chief Executive Officer of Smabirm Nigeria Limited, who won the Outstanding Distributor of the Year in North 1 region, and got a reward of two million Naira worth of Chivita|Hollandia (CHI Limited) products expressed delight at the company’s recognition, and stated that the awards served as a way to inspire distributors to do more and put in more effort, which in turn would help both the distributors and the company to grow.
Other outstanding performance distributors of the year rewarded with a two million Naira worth of Chivita|Hollandia (CHI Limited) stock include, Sunny Chuks Limited for East 1 region, MRS FA & Sons Limited for East 2 region, Hussakas Ventures for North 2 region, Rookee 1388 Ventures for Lagos 1 region, Pik N Pil Ventures for Lagos 2 region, FaithJoe Event Management Limited for West 1 region, and Progress Family Nigeria Enterprise for West 2 region.
The annual Distributors Conference aims to strengthen the bond between Chivita|Hollandia (CHI Limited) and its trade partners. This collaborative approach fosters mutual growth and ensures the continued success of the brands in the Nigerian market.
A global leader in insurance and asset management, AXA Mansard, has supported three female-owned MSMEs with business grants totaling 1.4 million to boost their operations.
This, the company said, is part of its commitment to women and the Medium, Small, and Medium-scale Enterprise (MSME) sector in the country.
The three businesses were successful at the International Women’s Day Pitch Competition, organised in partnership with SME 100 Africa in Lagos.
According to the Head of Marketing, AXA Mansard, Olusesan Ogunyooye, the competition, which is aimed at supporting female entrepreneurs in Nigeria, “is another way AXA is demonstrating its commitment to the causes of women and stimulating the MSME sector in Nigeria”.
The business pitch competition received numerous entries from women across different sectors, but after a rigorous selection process, shortlisted participants were selected to participate in the competition.
Ogunyooye said “the programme provided a unique opportunity for women from various works and socio-economic classes to showcase their innovative ideas and solutions in sectors such as food, tech, fashion, and fragrance, creating an atmosphere filled with excitement, enthusiasm, and a strong sense of community”.
He stressed the importance of investing in women, saying it is not just the right thing to do, but also aligns with AXA’s purpose of acting for human progress.
He explained that AXA believes the future of women should not be at risk, hence investing in their economic empowerment is a crucial part
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