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MAN Exposes Survival Strategies Amid Covid-19 Setbacks

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As businesses in the country face various challenges caused by the Covid-19 pandemic, the Manufacturers Association of Nigeria (MAN), Rivers/Bayelsa branch, has exposed survival strategies for its members and associates. 
The National Deputy President of the Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA), Dr.Emi Membere-Otaji, who was the guest speaker at MAN’s 37th Annual General Meeting (AGM), reiterated that survival depends on the company’s ability to learn fast, adapt and respond to changes and uncertainties which add value no matter what comes along.
Dr. Membere-Otaji, who is also the Chairman/CEO of Elshcon Group of companies with interest in Oil and gas, shipping and healthcare, noted the need for companies to develop “Risk Management Plans, which first analyse the situation and its impacts and activate their business continuity plan for those that don’t have. 
“Activate a crisis management strategy. In all, taking far reaching decisions to stay afloat. “Execute well and make quality a key ingredient to the business growth. Exploit existing capabilities and explore new business opportunities and new markets”.
He also said business operators should make the Covid vaccine mandatory at the workplace, saying that Covid-19 is not yet history. 
In his address, MAN’s Chairman, Senator Adawari Michael Pepple noted that the theme of the 37th AGM, “Covid-19 pandemic and Survival Strategies in the Manufacturing Sector”, was necessitated by the recent Covid-19 disease pandemic which shook the world, recording the highest number of deaths by an infectious disease in recent times.
The pandemic, he said, also resulted in the shutdown of factories and businesses which took a heavy toll on the world economy.
MAN Chairman who outlined the various challenges facing manufacturers said, “although the challenges bedeviling the manufacturing sector are numerous, we are confident that with careful and concerted efforts and through effective public-private sector partnership, we would recreate a friendlier operating environment for the sector required for sustained economic growth of the country.
He reiterated the unfailing commitment of manufacturers to fulfil their mandate in benefiting the manufacturing community in particular and the overall wellbeing of our economy.
MAN Chairman commended the governors of the two states, “His Excellencies, Chief (Barr.) Ezenwo Nyesom Wike and Sen. Douye Diri, for steps taken to mitigate the effects of the Covid-19 pandemic, and humbly request that the association be consulted when policies affecting the manufacturing sector are being formulated.
In her contribution, the former Vice Chairman of the association, Mrs. Emilia Akpan said the present survival strategy is for leaders to teach by example .
Akpan stressed that “company owners need to go down to the factory and work with the employees to ensure that the right thing is being done to achieve survival”.

By: Lilian Peters

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Electricity: Bands BCDE Suffer No Power

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As DisCos struggle to meet the required 20 hours power supply to “Band A” customers following shortage of gas which has hindered power generation since January, customers on Bands B, C, D, and E are left with no light, according to The Tide’s source.
The source learnt that the distribution companies were concentrating more on the Band A customers to keep their Band A feeders from being downgraded.
Band A customers enjoy a minimum of 20 hours of electricity daily.
On April 3, the Nigerian Electricity Regulatory Commission announced that subsidies would no longer be paid for the electricity consumed by Band A customers.
The electricity tariff for Band A customers was revised upward from N68 per kilowatt-hour to N255/KWh.
1 kWh is the amount of energy that could be used if a 1,000-watt appliance is kept running for an hour. For example, a 100-watt light bulb operating for 10 hours would use 1 kWh.
After the power subsidy was removed, the NERC directed the 11 DisCos to release their lists of Band A customers, who must get at least a 20-hour supply daily.
The regulator and the Minister of Power, Adebayo Adelabu, emphasised that there would be sanctions should the distribution companies fail to supply Band A customers with 20 hours of electricity.
The DisCos were also mandated to inform customers whenever they failed to meet the required minimum service level.
NERC said where a DisCo failed to deliver on the committed level of service on a Band A feeder for two consecutive days, the DisCo should, by 10 am the next day, publish on its website an explanation of the reasons for the failure and update the affected customers on the timeline for restoration of service to the committed level.
It stated that if a customer’s service level improves to at least 20 hours, they should be upgraded from lower service bands to Band A, adding that if the DisCo fails to meet the committed service level to a Band A feeder for seven consecutive days, the feeder will be downgraded to the recorded level of supply by the applicable framework.
In their efforts to meet up with the service level, the source gathered that some of the DisCos were gradually resorting to diverting the little allocation they get to the Band A customers.
This is in spite of the fact that the gas constraints that have hindered power generation since the beginning of the year have yet to be addressed.
Many communities said they could not boast 30 hours of power supply since January, a development the government blamed on the refusal of gas companies to supply gas to power-generating companies due to heavy debt.
Recall that recently, the IBEDC spokesperson, Busolami Tunwase, explained that, “One of the primary factors is the low supply of gas to generating companies, which has led to a gradual decrease in available generation on the grid.

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‘Inappropriate Insider Dealing’ Earns Julius Berger NGX Sanction

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Authorities at the Nigerian Exchange (NGX) have sanctioned Julius Berger Nigeria (JBN) Plc for engaging in inappropriate insider dealing in shares.
According to a document obtained by The Tide’s source, JBN, Nigeria’s leading construction company, was sanctioned for “insider dealing during closed period”.
Incorporated in 1970, Julius Berger, Nigeria, which was incorporated in 1970, became a publicly quoted company in 1991 and has more than 10,000 shareholders.
NGX Regulatory Company (NGX RegCo), the self regulatory organisation (SRO) that regulates activities at the NGX, stated that JBN breached certain provisions of the listing rules and was thus sanctioned accordingly.
According to NGX RegCo, JBN violated provisions on “closed period”, in breach of the construction company’s commitment to adhere to listing rules and standards.
The NGX had tightened its rules and regulations to checkmate boardroom intrigues and block information arbitrage that tend to confer advantages on companies’ directors.
The amendments expanded the scope and authority of corporate financial reporting while eliminating gaps that allowed companies to sidetrack relevant rules in stage-managing corporate compliance.
The enhanced framework provided clarity and greater disclosures on directors’ trading in shares, corporate liability for accuracy and compliance of financial statement, dissuade bogus dividend payment and other sundry boardroom’s maneuverings that tend to favour insiders.
The amendments came on the heels of noticeable increase in violations of rules on ‘closed period’, a period when directors are banned from trading in the shares of their companies.
Rule 17.17 of the NGX disallows insiders and their connected persons from trading in the shares or bonds of their companies during the ‘closed period’ or any period during which trading is restricted.
This period is mostly at a period of sensitive material information, like prior knowledge of financials, dividends or major corporate changes, which places directors and other insiders at advantage above other general and retail investors.
A review of the disclosure violations at the stock market had shown that all violations in 2021 were related to violation of Rule 17.17 on ‘closed period’.
Under the amendments, in addition to the provisions of relevant accounting standards, laws, rules and requirements regarding preparation of financial statements, companies are now required to include several specific declarations on securities transactions by directors, changes in shareholding structure, self-assessment on compliance with corporate governance standards and internal code for directors on securities transactions among others.

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Nigerian Breweries To Suspend Operations In Two Plants

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Nigerian Breweries Plc says it is planning for a company-wide reorganisation which include the temporary suspension of operations in two of its nine breweries.
It said this is part of a company-wide reorganisation as part of a strategic recovery plan  aimed at securing a resilient and sustainable future for its stakeholders.
The Business Recovery Plan includes a rights issue and a company-wide reorganisation exercise which includes temporary suspension of two of its nine breweries and an optimisation of production capacity in the other seven breweries, some of which have received significant capital investment in recent years.
These measures include relocating and redistributing employees to the remaining seven breweries and offering support and severance packages to those that become unavoidably affected.
The company said this move is essential to improve its operational efficiency, financial stability and enhance a return of the business to profitability, in the face of the persistently challenging business environment.
In letters signed by the company’s Human Resource Director, Grace Omo-Lamai, and addressed to the leadership of the National Union of Food, Beverage & Tobacco Employees (NUFBTE) and the Food Beverage and Tobacco Senior Staff Association (FOBTOB), the company informed both unions that its proposed plan would include operational efficiency measures and a company-wide reorganisation that includes the temporary suspension of operations in two of its nine breweries.
As a result, and in accordance with labour requirements, the company invited the unions to discussions on the implications of the proposed measures.
Recall that the company recently notified the Nigerian Exchange Group (NGX) of its plan to raise capital of up to N600 billion by way of a rights issue, as a means of restoring the company’s balance sheet to a healthy position following the net finance expenses of N189 billion recorded in 2023 driven mainly by a foreign exchange loss of N153 billion resulting from the devaluation of the naira.
Speaking on these developments, the Managing Director/CEO, Nigerian Breweries, Hans Essaadi, described the business recovery plan as strategic and vital for business continuity.

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