MAN lists high energy costs as major challenge

The Manufacturers Association of Nigeria (MAN) CEOs Confidence Index (MCI) for the second quarter of 2023 has revealed that rising energy costs remain a major challenge facing manufacturers in the country. Challenges facing manufacturers according to the survey includes, energy costs; high cost of credit/inadequacy of loanable funds; multiple taxes/charges/levies/same tax policy for local producers and importers; unavailability of raw materials/delay in receiving imported raw materials; high cost of raw materials and scarcity of forex/high exchange rate/poor allocation of forex. According to the survey, about 63.1 per cent of manufacturers enumerated disagreed that government capital expenditure encourages productivity in the manufacturing sector; 23.9 per cent of those enumerated agreed, while about 13.1 per cent were unsure. MAN said the aggregate index score of MCCI in the second quarter of 2023 declined by 1.4 points to 52.7 points from 54.1 points obtained in the first quarter of 2023, which is also 2.3 points less than 55.0 points recorded in the fourth quarter of 2022. According to the survey findings, manufacturers within the country continue to grapple with the reverberations of the Naira Redesign policy, which was implemented during the tenure of Godwin Emefiele, the former Governor of the Central Bank of Nigeria (CBN).  Furthermore, manufacturers lament the hindrance caused by two concurrent factors, among which is the upswing in motor vehicle insurance expenses, which continues to add to the operational burden of manufacturers. Additionally, the escalation in logistics costs is a concern that stems from the heightened pricing of premium motor spirit (PMS), commonly referred to as petrol. This is of particular significance as manufacturers need to distribute their goods extensively across the various states of the country, entailing substantial transportation expenses. The survey’s observations underscore that the second quarter of 2023 witnessed a substantial uptick of 17.3 per cent in both production and distribution costs for manufacturers. This surge in costs further accentuates the challenges faced by the manufacturing sector and calls for a comprehensive examination of strategies to mitigate these adverse effects. Director General of MAN, Segun Ajayi-Kadir, in the report said government’s capital expenditure should address the issues of economic infrastructure such as roads, electricity, water, etc. that support industrial sector businesses. “The absence of economic infrastructure contributes significantly to the high cost of operating environment which obstructs the development of manufacturing in Nigeria. “It is highly expedient that the government strives to ensure the harmonisation of fiscal and monetary policies that will pave the way for a stable macroeconomic environment needed to promote productivity in the manufacturing sector and improve the ease of doing business,” he said.

EPL: ‘Early’ Haaland kicks off golden boot race in City’s 3-0 win against Burnley

2022/23 Premier League Golden Boot winner, Erling Haaland wasted no time in resuming his goal-scoring spree, propelling Manchester City to a comfortable 3-0 triumph against top flight returnees Burnley as they began their Premier League title defense on Friday night. The prodigious striker, who netted an impressive 52 goals in City’s triumphant Treble-winning season last year, rekindled his form by striking within just 185 seconds of kickoff. Haaland’s swift impact left Burnley struggling to recover, and his two first-half goals ensured City’s dominance. His first goal came courtesy of a swift reaction in the box, capitalizing on a header from Rodri off Kevin de Bruyne’s cross. His second goal showcased his finesse, curling a brilliant left-footed shot into the top corner, leaving Burnley’s keeper James Trafford helpless. The contest effectively ended with this stunning goal at the 36-minute mark. Despite Burnley’s spirited efforts, they were unable to overturn City’s control. Rodri sealed City’s victory with a third goal, capitalizing on a defensive lapse from Burnley’s side, burying a free-kick with 15 minutes remaining. City’s victory, though routine, was marred by yet another injury for De Bruyne, who was replaced by Mateo Kovacic after just 23 minutes. Burnley’s Anass Zaroury received a red card in injury time, following a VAR review for a reckless tackle on Kyle Walker. Pep Guardiola’s animated demeanor on the sidelines illustrated Man City’s occasional rustiness, despite their winning start. Haaland, despite his impressive goals, received a stern talking-to from Guardiola during halftime, emphasizing the manager’s pursuit of perfection. While Haaland’s involvement might have seemed limited, his goal-scoring prowess remained undeniable. His impact, as showcased by his two goals from just six touches, underlined his contribution as City’s linchpin. Kovacic’s smooth entry as De Bruyne’s substitute provided a silver lining, but the Belgian’s recurring injury concerns are a worry for Guardiola. De Bruyne’s ability to create opportunities was evident as he set up Haaland’s opening goal, but his exit from the field was visibly disappointing. City remains hopeful that De Bruyne’s injury is not severe, as they navigate the opening stages of the Premier League campaign with overall satisfaction.

7 years after, CBN publishes consolidated financial statements

The financial statement comes two weeks after ex-CEO of Financial Reporting Council of Nigeria’s Jim Obazee was appointed by President Bola Tinubu as special investigator to look into the books of the Apex Bank.Godwin Emefiele was suspended by President Tinubu with Folashodun Shonubi appointed as acting Governor.  After a seven-year hiatus, the Central Bank of Nigeria (CBN) has published its financial report for the year ended December 31, 2022. After a seven-year hiatus, the Central Bank of Nigeria (CBN) has broken its silence, revealing consolidated financial statements for the fiscal year ending on December 31, 2022. This marks the first financial report published by the CBN since 2015. The long-awaited financial statement emerges in the wake of recent developments, which is notably as former CEO of the Financial Reporting Council of Nigeria, Jim Obazee’s assumption of the role of special investigator, appointed by President Bola Tinubu. Obazee’s task is to meticulously examine the financial records of the CBN. This move follows the suspension of Godwin Emefiele, with Folashodun Shonubi stepping in as the acting Governor. Spanning the years 2016 to 2022, the Consolidated Financial Statements have finally seen the light of day. These statements disclose a net profit of N65.63 billion for this period. Furthermore, the CBN extended a substantial N23.18 trillion loan to the Federal Government through the Ways and Means mechanism. Within the same timeframe, the bank’s group performance has been impressive, showcasing a commendable profit of N103.85 billion during the identical period. “The financial results for the year demonstrate a substantial achievement. Both the group and the bank independently reported profits of N103,854 million and N65,626 million, respectively. (Comparatively, the figures for 2021 were N75,125 million and N31,044 million),” the official report articulates. The stipulations of the Fiscal Responsibility Act 2011 dictate that 20 percent of the bank’s net income will be allocated to retained earnings. The remaining balance will be disbursed to the federal government of Nigeria. In compliance with the CBN Act 2007, the bank’s annual report should be released within a span of two months following the closure of each fiscal year. “The mandate states that the Bank shall provide a certified copy of its annual accounts, audited by a qualified Auditor, to both the National Assembly and the President within this stipulated time frame,” the report highlights. Delving into the expenses, the CBN incurred a total of N888.3 billion in operating costs. A meticulous breakdown discloses that N346.2 billion resulted from foreign exchange revaluation losses. Additionally, N155.5 billion was expended on rebate allowances from the RT 200 and Naira4Dollar initiatives. These policies were strategically crafted to attract foreign exchange inflows. “Rebate expenses encompass the financial outlay associated with the RT200 and Naira 4 Dollar schemes. These initiatives were introduced by the Bank to amplify foreign currency inflow, diversify the channels of FX inflow, elevate non-oil exports, ensure the stability and longevity of FX inflows, and provide support for companies oriented towards exports, facilitating their expansion of export activities and capabilities,” elucidates the comprehensive report.

Consumer shopping, hospitality, boost UK economy

The UK economy bounced back in April after it was boosted by stronger consumer spending in shopping and hospitality. UK gross domestic product (GDP) increased by 0.2 percent for the month after a 0.3 percent fall in March, the Office for National Statistics (ONS) revealed. The latest figure was in line with forecasts for the month from economists. ONS director of economic statistics Darren Morgan said: “GDP bounced back after a weak March. “Bars and pubs had a comparatively strong April, while car sales rebounded and education partially recovered from the effect of the previous month’s strikes. “These were partially offset by falls in health, which was affected by the junior doctors’ strikes, along with falls in computer manufacturing and the often-erratic pharmaceuticals industry. “House-builders and estate agents also had a poor month.”