Business
Survey Predicts Firms’ Exit Due To Production Difficulties
Some foreign firms operating in Nigeria, particularly those in the Fast Moving Consumer Goods (FMCG) subsector may exit the country this year if the operating environment does not improve.
This is according to a new report by a financial solutions firm; Cardinal Stone, with the titled ‘Strategic Resilience: Sailing Through Business Disruptions.
The survey report stated that high operating costs would persist for firms operating in the Fast Moving Consumer Goods sector.
According to the report, the FMCG sector remains heavily exposed to changes in commodity prices, exchange rates, import and clearing duties, and freight costs.
It noted that FMCGs might not benefit from the moderation in global commodity prices because of the significant depreciation of naira, which weakened from N422.00/$ in June 2023 to N951.94/$ in December 2023, after the Central Bank of Nigeria floated the country’s exchange rate.
The CBN floated the exchange rate in June 2023 to bridge the gap between the official rate and the alternative market and address the challenge of forex scarcity that the country has been grappling with.
“In 2024, we expect companies to continue to re-imagine their operational strategies to achieve cost efficiency.
“We also see legroom for more collaboration between FMCGs to boost economies of scale, product portfolio diversification, revenue and cost synergies, technological innovations, and financial power of the resultant entity.
“The alternative path may eventually degenerate to exit from the operating environment or high-cost segments, similar to the cases with Procter and Gamble, GSK, Pernord Ricord, and Unilever”, it noted.
By: Corlins Walter
Business
FEC Approves Concession Of Port Harcourt lnt’l Airport
Business
Senate Orders NAFDAC To Ban Sachet Alcohol Production by December 2025 ………Lawmakers Warn of Health Crisis, Youth Addiction And Social Disorder From Cheap Liquor
The upper chamber’s resolution followed an exhaustive debate on a motion sponsored by Senator Asuquo Ekpenyong (Cross River South), during its sitting, last Thursday.
He warned that another extension would amount to a betrayal of public trust and a violation of Nigeria’s commitment to global health standards.
Ekpenyong said, “The harmful practice of putting alcohol in sachets makes it as easy to consume as sweets, even for children.
“It promotes addiction, impairs cognitive and psychomotor development and contributes to domestic violence, road accidents and other social vices.”
Senator Anthony Ani (Ebonyi South) said sachet-packaged alcohol had become a menace in communities and schools.
“These drinks are cheap, potent and easily accessible to minors. Every day we delay this ban, we endanger our children and destroy more futures,” he said.
Senate President, Godswill Akpabio, who presided over the session, ruled in favour of the motion after what he described as a “sober and urgent debate”.
Akpabio said “Any motion that concerns saving lives is urgent. If we don’t stop this extension, more Nigerians, especially the youth, will continue to be harmed. The Senate of the Federal Republic of Nigeria has spoken: by December 2025, sachet alcohol must become history.”
According to him, “This is not just about alcohol regulation. It is about safeguarding the mental and physical health of our people, protecting our children, and preserving the future of this nation.
“We cannot allow sachet alcohol to keep destroying lives under the guise of business.”
According to him, “This is not just about alcohol regulation. It is about safeguarding the mental and physical health of our people, protecting our children, and preserving the future of this nation.
“We cannot allow sachet alcohol to keep destroying lives under the guise of business.”
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