The Insurance Industry has recorded N369.28 billion Gross Premium Income for life and non-life businesses in the second quarter, a bulletin of the Insurance Market Performance says.
The bulletin was released by Mr Rasaaq’ Salami, Head, Corporate Communications and Market Development, National Insurance Commission (NAICOM) on Friday in Lagos.
The report said the industry grew at the rate of 20.1 per cent compared to the same period of the previous year and 65.0 per cent quarter on quarter.
It said the figure was also higher than the national real Gross Domestic Product (GDP) of 3.5 per cent during the same period.
“This indicates the industry’s impressive performance given the recent trajectory.
“The proportional participation of each class of business suggests the continued improvement of life insurance business as driven by its component of the individual life.
“The non-life segment as revealed in the figures, maintained its primacy at 59.3 per cent of the total premium generated while life business on the other hand recorded 40.6 per cent of the insurance market production,” it said.
According to the bulletin, oil and gas was the leading driver of the premium at 32.5 per cent, with fire a distant second at 20.7 per cent.
It said motor insurance stood at 14.8 per cent while marine and aviation, general accident and miscellaneous reported a share of 12.3 per cent, 10.9 per cent and 8.9 per cent respectively.
The bulletin stated that the share contribution of life business gradually closed up, as the share of annuity in the life insurance business logged at 24.7 per cent.
The performance report indicated that individual life held a major driver position at 41.8 per cent of the premium generated during the period.
The bulletin noted that operational confidence remained high in spite of economic challenges, as life business retention for the period was 93 per cent, non-life recorded a ratio of 55 per cent, while the industry average stood at 70.5 per cent.
It stated that the retention in non-life business despite reporting an above average level, relative to its prior position of 59.4 per cent in the corresponding period of the preceding year, would require a focused attention for improvement.
“The performance by various classes in the non-life segment of the market revealed that all classes stood at an above average position except for the oil and gas business, which held a retention of 40.1 per cent.
“This shows a decline in the oil and gas retention capacity in the market compared to the same period in 2021 when it recorded 42.3 per cent in retention proportion,” it said.
According to the market report, the insurance market remained profitable during the period under review, recording an overall industry average of about 57 per cent and maintaining a relative position of 57.7 per cent recorded in the corresponding period of preceding year.
It stated that the non-life segment loss ratio stood at 43.6 per cent while the life business stood at 68.5 per cent, depicting a less profitable scenario, comparatively over the same period.
According to the bulletin, the net loss ratio for non-life, bears an improved market image in the current period as compared to the preceding period when it was 48.2 per cent.
The report noted that the drivers of the loss experience were made up of some 12 underwriters, which included six composite underwriting firms, one life underwriter and five non-life underwriters with a record of loss ratio above 100 per cent during the period.
“Indeed, the viability of the industry and, especially its outlook, remains good and suitable for gainful returns on investment.
“The COVID-19 crisis introduced opportunities for underwriters to refine their operations as there is still a lot of untapped potential for improvements.
“The continued steady growth from the first quarter of the year correlates with the current performance of the period under review,” it said.
According to the report, statistics of the insurance market’s performance for the second quarter revealed some quality improvements in the market indicators, including growth, claims settlement and profitability.
The bulletin said it was obvious that the market could be adjudged as sound and stable.
Energy Capital & Power (ECP) (https://EnergyCapitalPower.com) is proud to announce that Cabinda Shipping Services (CABSHIP) (https://CABSHIP.co.ao), a global logistics and supply chain management company supply based in Angola, will attend and participate as a bronze sponsor in this year's edition of the Angola Oil & Gas (AOG) conference and exhibition (https://bit.ly/3UyBCpP), which will take place from November 29 to December 1, 2022 in Luanda.
As a highly competitive company in oil and gas materials management solutions, CABSHIP's participation as a bronze sponsor at AOG 2022, Angola's premier gathering for energy policymakers, companies and investors, will be vital in shaping the dialogue about challenges and opportunities across the country.
midstream and downstream oil and gas sectors.
Since its creation in 2009, CABSHIP has not only expanded its presence in the Angolan market, but has also become one of the world's leading providers of customized logistics solutions for the oil, gas and energy industries, with 536 offices in 310 cities.
With Angola, Africa's largest oil producer (https://bit.ly/3y1Mseo) and the world's next gas hub, seeking to maximize exploration, production and infrastructure development both onshore and offshore, companies such as CABSHIP, which have partnered with major global companies such as bp and Chevron in the management of materials and warehouses, and their infrastructure and transportation installation services will be essential to accelerate the expansion of the hydrocarbon industry in the southern country from Africa.
Furthermore, with Angola maximizing the monetization of its vast energy resources to drive Gross Domestic Product (GDP) growth through better energy trade with regional and international markets, the cargo transportation, logistics and port operations solutions provided by CABSHIP will be crucial in allowing the hydrocarbons market to achieve its objectives.
As a Bronze Sponsor of AOG 2022, CABSHIP will have access to exclusive networking sessions where the company will promote its innovative, next-generation maritime and logistics services to local, regional and international energy companies.
As a 100% Angolan-owned service company, CABSHIP is well positioned to shape serious AOG 2022 discussions on local content development and the role that local businesses can play in driving the country's oil and gas industry and the broader economy through job creation, skills development, and GDP growth.
To learn more about how you can participate in AOG 2022, visit https://bit.ly/3UyBCpP
In keeping with the company's dedication to introducing innovative, technology-based imaging solutions to Africa, Canon (Canon-CNA.com) is bringing its long-awaited R Tour to Abidjan, Ivory Coast.
The tour sheds light on its upcoming products, approach to customer strategy, the rise of content creation as an industry in the country, and much more; Canon will present its revolutionary range of mirrorless products: EOS R3, EOS R5 C, EOS R7 and EOS R10 in an effort to introduce a much broader range of technology solutions in Africa.
Canon Central and North Africa embarked on the Canon R Tour in Abidjan, Côte d'Ivoire, which coincides with the company's vision of bringing together the latest imaging technology solutions on the African continent.
R-Tour attendees were introduced to the latest line-up of cutting-edge products from its renowned EOS R system, including the EOS R3, EOS R5 C, EOS R7 and EOS R10.
The EOS R3 offers all the familiarity and speed of Canon's celebrated EOS-1 series, with the innovation and versatility of the pioneering EOS R system, while the EOS R5 C is a powerful hybrid cinema camera that combines the features of professional Cinema EOS shooting.
range with the photographic capabilities of the EOS R system.
A high-resolution full-frame CMOS sensor, DIGIC X processor and RF mount are the three crucial elements that enable high-fidelity 8K capture and 45-megapixel still photography at burst speeds of up to 20 frames per second, all in one EOS R5 C body.
“Canon's robust new collection expands capabilities like never before.
It has made life simpler for creatives around the world at the touch of a button, and now creators in Côte d'Ivoire can get in on the action too.
These award-winning cameras and lenses add up to a better storytelling experience, and this is what Africa needs to compete on a global scale, in such a competitive content creation space,” said Amine Djouahra, Director of Sales and Marketing, Canon Africa Central and North.
Connect, Communicate and Co-Create At our consumer-focused event, the panel discussion focused on why mirrorless is taking over photography and how there is a growing need to switch from DSLRs to mirrorless.
Our experts also spoke about the growth of the content creation industry, both globally and in Africa.
This was followed by a greater understanding of the full capabilities of R System imaging at the different experiential booths, each with a specific purpose or need to serve a particular audience.
The booths offered an exciting experience for avid documentarians and cinematographers, simulating a food documentary experience, while action and sports photography enthusiasts were able to experience various techniques that showcased an adrenaline-fueled aerial performance.
In addition, they were able to obtain orientation at the Check-and-clean stand.
Following the success of our first Canon Creator Summit during the R Tour of Nigeria, Canon photographers took center stage as audience members learned useful tips and tricks for getting the most out of these cutting-edge cameras and lenses.
At this event, our panel discussion focused on the importance of quality content creation and how it can grow industries.
Attendees heard how to excel at creating fashion content from Ramez Aoude and were able to test his skills afterwards with the hands-on fashion workshop.
Later that day, Jean Goun shared his experiences as an event photographer and how to broaden his skill set in this field, which was also followed by a hands-on workshop.
Guests were also introduced to the new mirrorless range and were able to touch and try them for themselves.
In 2021, UNESCO published a report (https://bit.ly/3EiDBZJ) on the continent's film and audiovisual industries which revealed that this sector accounts for $5 billion in Gross Domestic Product (GDP), which is promising for local content creators.
to tap into this creative industry and with Canon R-tour we can show how the latest equipment and the right tools can help develop this sector and upskill young content creators.
Along with the photo and video imaging technology highlighted on the R-Tour, a variety of printing solutions were demonstrated to showcase print quality, highlighting the complete input-to-output solutions that Canon offers.
The event also focused on providing the required printing solutions to an important vertical market of copy centers that seek to add value to the work they do for universities, schools and SMEs in the country by detailing the printing landscape and helping them identify the The right printing solutions that are profitable for your business, that can handle everything from the smallest printing requirements to large format printing.
The spirit of storytelling The R-tour also organized the Canon Academy Workshops and Photo Walk in Grand-Bassam, which was specially awarded by the Ivory Coast government and this event was attended by 30 photographers, videographers and content creators who enjoyed the opportunity to get hands-on experience with our products.
The city is known for its busy palm-fringed beach that stretches along the Atlantic coast.
Professional photographer, former Chairman of Photography Officer and Canon Certified Trainer Seibou presented a hands-on workshop, where he took the audience through Canon's leading mirrorless cameras, the R3, R5C, R7, R10.
Overall, it was an extraordinary tour.
“We are very excited to see what kind of amazing content comes out of Côte d'Ivoire with this new range of mirrorless EOS-R system cameras.
We believe that now is the time for content creators in Côte d'Ivoire to seize this opportunity by adding even greater value to their products, creating more authentic channels and benefiting from mirrorless cameras that incorporate the latest technology,” said Amine Djouahra.
Commodities Brokers Association of Nigeria (CBAN), has urged the National Assembly to re-visit Charted Institute of Commodity Brokers of Nigeria (Est. etc) Bill, 2018.
Mr Ishaq Yahaya, North Central Zonal Chairman of the association said this in an interview with the News Agency of Nigeria on Tuesday in Abuja.
He said that the bill, which was passed by the Eighth Assembly, but was unfortunately not assented to, should be re-visited in view of its importance in ensuring food security among others.
According to him, if passed and assented to, the bill will largely contribute to economic growth.
He said some objectives of the bill include training and certifying professionals as commodity brokers for the agricultural, solid minerals and oil and gas sectors among others.
Yahaya said passing and assenting to the bill would go a long way in achieving the diversification effort of the present administration.
“This is an important bill that when passed and assented to, will help boost the non-oil sector, which will in turn contribute greatly to Nigeria’s Gross Domestic Product (GDP).
“So, we appeal to the National Assembly to kindly bring up this bill to enable it make the list of bills passed by this Assembly.
“We are hopeful that once the bill gets to the table of the President this time, he will consider it for assent because of the vital role it will play in boosting the economy,’’ he said.
NAN reports that commodity brokers are certified professionals authorised to deal in commodities on behalf of their clients.
NAN also reports that they are known years back for trading in livestock and grain.
However, today they have expanded to cover various range of financial derivatives based on bonds, energy, oil and gas, and stock among others.
President Muhammadu Buhari has reiterated the Federal Government’s commitment to drive industrilisation focusing on Small and Medium Enterprises (SMEs).
Buhari said this while declaring open the 17th Abuja International Trade Fair with the theme: “Creating an Export-Ready Market Through SMEs Digitisation”.
Represented by Otunba Adeniyi Adebayo, the Minister of Industry, Trade and Investment, Buhari recognised the importance of SMEs to the economy and said that developing the sector remained one of the priority areas of his administration.
According to him, the SMEs segment is critical to the stimulation of economic development as no economy can thrive without robust trade.
Identifying the significant role trade plays in the economic growth of a nation, Buhari said that it helps to build wealth and improve foreign reserves.
“Trade is key to ending poverty across countries, raising standards of living and improving productivity.
“Nigeria is estimated to be home to more than 40 million MSMEs which, together, contribute about 48 per cent to our Gross Domestic Product (GDP).
“Many of us just see SMEs as the Mama that fries akara or the friendly “malam” that owns the kiosk on our street.
That is not the case; some of the fastest growing Fintech start-ups in Africa are SMEs. “This trade fair provides an opportunity to change the narrative of what SMEs are and demonstrates how innovative they can be.
“Here present, I see enterprises with the capacity to produce in large quantities.
I see enterprises that employ large cross-sections of our youth population.
“I see enterprises with the capacity to export.
I do not see small businesses here; I see future mighty businesses,’’ the president said.
He expressed the Federal Government’s determination to help SMEs achieve their full potential.
According to him, the government has developed strategic policy interventions, enshrined laws and established institutions to create a supportive business environment for entrepreneurs and SMEs. “In line with this, the Ministry of Industry, Trade and Investment has developed a programme that will enhance access to credit for over 10 million SMEs at single digit rate.
“Aside from provision of finance, this project will address key ecosystem issues such as development of SMEs clusters to lower operating costs as well as capacity building initiatives.
“The ministry has also commenced the process of adopting a centralised automated platform for the registration of trademarks, patents and designs.
“The overall objective is to fully digitise existing records and automate the registration process to enable ownership and commercialisation of innovation,’’ he said.
Buhari said that the Federal Government also approved fiscal incentives for SMEs including exemption from Company Income Tax and Value Added Tax for enterprises with annual turnover of less than N25 million.
“The Pioneer Status Incentive also grants tax holidays for start-ups across multiple sectors.
“In 2016, the Federal Government approved establishment of the Presidential Enabling Business Environment Council (PEBEC) to eliminate bureaucratic constraints to doing business in Nigeria and make the country a progressively easier place to start and grow a business.
“The Nigerian Investment Promotion Commission (NIPC) also has One Stop Investment Centre which comprises 27 government agencies.
“The aim is to significantly reduce the time spent in processing regulatory approvals.
“While the Federal Government is doing its part, we need to rethink our impression that SMEs are small businesses and focus on how they can be energised as vehicles for economic growth.
“As always, the Federal Government remains committed to ensuring ease of doing business and creating an enabling environment for businesses to thrive,’’ Buhari said.
Earlier, the Minister of the Federal Capital Territory (FCT), Muhammad Bello, urged investors to leverage the opportunity provided by the trade fair to invest.
According to him, FCT is in constant need of investments in critical sectors such as agriculture and waste management.
“We will continue to strive to make the FCT a haven for investors,’’ Bello said.
On his part, Dr Al-Mujtaba Abubakar, the President of Abuja Chamber of Commerce and Industry (ACCI), said that the objective of the fair was to create an export ready market for SMEs. “Aside promoting businesses, the 17th AITF will also strengthen trade and investment opportunities in the country, thus, offering a neutral and open atmosphere for blue-chip companies, trade and government,’’ Abubakar said.
Dr Johnson Anene, the Chairman National Chamber of Commerce Trade Centre, said that the trade fair was focused on promoting local products.
He said it would provide a platform to educate SMEs operators to improve on the quality of the products to avoid rejection in foreign markets.
Anene urged FCT residents to patronise made-in Nigeria goods and also appealed to investors to explore new investment opportunities provided by the trade fair.
President Muhammadu Buhari will on Friday present the 2023 budget estimates to the joint session of the National Assembly by 10 am.
This is contained in a letter Buhari write to the President of Senate, Dr Ahmad Lawan and read at plenary on Tuesday.
Lawan said the venue for presentation of the 2023 budget estimates by Buhari would be at the temporary chamber of the House of Representatives.
According to him, arrangements would be made to accommodate all the senators, adding that senators would proceed to the venue in procession .
The News Agency of Nigeria reports that Minister of Finance, Budget and National Planning, Mrs. Zainab Ahmed said the federal government was proposing an aggregate expenditure of N19.76 trillion for the 2023 fiscal year.
The minister who made this known at the 2023-2025 Medium Term Expenditure Framework and Fiscal Strategy Paper interaction with the House of Representatives Committee on Finance, however said she may not be able to make provision for treasury funded capital projects in the 2023 fiscal year.
NAN reports that Ahmed also said the budget deficit for the 2023 fiscal year may be between N11.30 trillion and N12.41 trillion, depending on the choice that would be made by the federal government on the issue of fuel subsidy payment.
She stated that the federal government was projecting total revenue of N8.46 trillion, out of which N1.9 trillion was expected to come from oil-related sources while the balance would come from non-oil sources.
Ahmed explained that the benchmark crude oil price was pegged at 70 dollars per barrel and at an exchange rate of N435.57 to a dollar, oil production was put at 1.69 million barrel per day, real Gross Domestic Product (GDP) growth was projected at 3.7 per cent while inflation was put at 17.16 per cent in the MTEF.
She said petrol subsidy would remain up to mid-2023, based on the 18-month extension announced early 2021, in which case only N3.36 trillion would be provided for it in next financial year.
The minister also pointed out that Nigeria has been able to consistently without defaulting, service her debt, adding that the country does not have any projections even in the near future, to fail in its debt obligation.
Speaking further, Ahmed said although the amount currently used to service the country’s debt had overshot what was appropriated for in the budget, measures have been put in place to manage the situation.
As the country attains 62 years of Independence, economists have called on the Federal Government to seek more innovative policies that would further support its efforts on economic growth and development.
Former Executive Secretary, Chartered Institute of Bankers of Nigeria (CIBN), Dr Uju Ogubunka, made the call in an interview with the News Agency of Nigeria in Lagos on Saturday.
Ogubunka said the federal government could focus more on strengthening the nation’s productive capacity to expedite the desired economic development.
“It is not appropriate that after 62 years of independence, a large percentage of what our people consumed is still imported.
“No country will develop this way.
Our government needs to do more in harnessing the enormous prospects to facilitate our self-reliance,” Ogubunka said.
He noted that the government also needed to focus more on its human capital assets by expanding the knowledge and skills of its people, saying that it affects economic growth.
“We must insist on training our human capital because it is linked to the next phase of growth as a people.
“Giving so much emphasis on trainings is crucial in transforming our society and making it more relevant in our digital world,” Ogubunka said.
Also, the President, Standard Shareholders Association of Nigeria (SSAN), Mr Godwin Anono, said at this stage of the nation’s independence, more effort must be made in tackling challenges associated with critical sectors of the economy.
“Resolving the headwinds associated with production will accelerate our economic independence and enhance our domestic capacity.
“Then, the country can develop economically and be recon with globally,” Anono said.
He noted that the federal government must continue to enhance the business environment to attract more private capitals.
Also, the Chief Executive Officer, Centre for the Promotion of Private Enterprise, Dr Muda Yusuf, said the federal government could continue to modify the structural changes in the economy.
According to him, the service sectors alone contribute as much as 56 per cent to the Gross Domestic Product (GDP) of the economy.
“The sector’s contribution to employment opportunities and revenue generations to government has grown tremendously over time,” Yusuf said.
He noted that the federal government should execute a better macro-economic management framework to stabilise the exchange rate.
“This will eradicate the challenge of illiquidity in the foreign exchange market and stem the current depreciation of the nation’s currency.
“It is imperative to have urgent reforms in the foreign exchange market, with greater focus on supply side strategy.
“There is need to review the disproportionate emphasis on demand management of the foreign exchange market to attract private sector capital,” Yusuf added.
As Nigerians celebrate the country’s 62nd independence, stakeholders say the insurance industry has fared well, while suggesting measures to reposition it.
Mrs Adeola Adewunmi-Zer, Chief Executive Officer, Allianz Nigeria Insurance Ltd., said the insurance industry had a long history that spanned over 100 years and had contributed considerably to the growth of the economy.
However, Adewumi-Zer said insurers must not rest on their oars but do a lot more, especially in the area of insurance education for people to understand what insurance was all about and trust the underwriters.
According to her, insurers must improve financial literacy by creating awareness on insurance at a young age from basic schools to build the next generation of wealth for the country.
“There are so many educated people who are uneducated when it comes to insurance and managing their financial lives,” she said.
The Allianz CEO charged the National Insurance Commission (NAICOM) to encourage more foreign investors and partnership with local underwriting firms to enable the industry thrive better.
To Mr Sola Ajayi, Executive Head of Sales, Leadway Assurance, the insurance industry in Nigeria is a pre-independent industry whose operators have contributed immensely to the sector and the economy at large.
Ajayi stated that the expectations of insurers was for the economy to improve, so that citizens can afford more assets and insure them also.
He expressed optimism that the insurance industry would grow as the economy continued to grow.
The Leadway Assurance sales head lauded the current Commissioner For Insurance (CFI), Mr Sunday Thomas, for bridging the gap between the regulator and operators, adding that this had engendered growth within the industry.
Ajayi noted that the operators, however, expected deeper level of engagement and interaction between the regulator and stakeholders.
“The CFI has done a great job of bridging the gap between the operators and regulator through his support but there is still more ground to cover, ” he said.
According to him, operators must invest more in human capital, marketing, product innovation and experimentation, which will enable them to understand their current customers the more and how to serve them better.
Ajayi said: “We must collectively improve our service delivery, as a bad experience with one underwriter is a bad experience with all.
“Operators must understand this and carry the responsibility with a sense of collectivity.
” Mr Moses Igbrude, immediate past Publicity Secretary, Independent Shareholders Association of Nigeria, explained that the insurance industry had fared well, although it might be lagging behind compared to other sectors of the economy.
Igbrude said there was no doubt that the industry had improved over the years compared to when awareness was abysmally low.
“When you compare between independence in 1960 when the awareness was not even there at all and now, one would admit that there has been a lot of improvement, new products, new companies and consolidation,” he said.
According to him, insurers must do more in deepening micro insurance for financial inclusion, deeper penetration and sustaining the future of the industry.
On halting the recapitalisation of the industry, he noted that insurance like every other industry should be recapitalised, but the exercise must be driven by the stakeholders.
“There is need for the industry to expand through recapitalisation for more business transactions and risk taking, and no one is against this.
“Unfortunately, present circumstances in the business space after the COVID-19, which include inflation, low capital income pose a challenge to raise such funds,” he said.
Igbrude called for more insurance education to break cultural and religious barriers against insurance and adoption of advanced technology to enable the industry contribute significantly to the county’s Gross Domestic Product (GDP).
He also charged the government at all levels to provide a more suitable environment for insurance to thrive by enforcing compulsory insurance, especially on health, building, motor insurance, amongst others.
Nigeria@62: FG must sustain non-oil campaign, financing to boost manufacturing
An analysis by Rukayat Moisemhe, News Agency of Nigeria
As the Federal Government rolls out the drums to celebrate the country’s 62nd independence anniversary, stakeholders in the manufacturing industry insist targeted campaigns and financing must be sustained to boost non-oil exports in order to achieve economic growth.
The call is, indeed, imperative seeing that the country’s economy, 62 years post independence, is said to be a mixed bag of lows and highs.
At 62, Nigeria remains the biggest economy on the continent with a Gross Domestic Product (GDP) of over 510 billion dollars.
The country is also ranked sixth among the top ten manufacturing destinations on the continent.
Economic indicators reveal that the country’s GDP grew in the second quarter of 2022 by 3.54 per cent year-on-year in real terms, while its oil sector has consistently recorded negative growth for the ninth consecutive quarter, contracting by -11.8 per cent.
Combined, key drivers within the non-oil economy accounted for 78.3 per cent of total GDP in Q2. Compared to countries like Cameroon, Togo, Madagascar, Somalia, Gabon, Senegal, Mali, and Mauritania, and a host of others, that attained independence in 1960, experts believe that even though Nigeria is not doing badly, there is great room for improvement.
Dr Chinyere Almona, Director-General, Lagos Chamber of Commerce and Industry (LCCI), stated that the country’s economic growth trend, measured by the performance of GDP, had generally been positive over the last two decades.
She, however, noted that the growth of 1.2 per cent recorded for agriculture and the 3 per cent for manufacturing were comparatively low when compared with other sectors that grew at above 5 per cent.
She stated that the quality of the business environment remained a concern to investors, especially in the manufacturing sector.
According to her, weak infrastructure, uncertain policy environment, and institutions have continued to adversely affect the efficiency, productivity, and competitiveness of many enterprises in the economy posing a major risk to job creation and economic inclusion across sectors.
The LCCI DG noted the need to address the weak government revenue base caused by oil theft and pipeline vandalism, rising and unsustainable debt profile, over-dependence on oil revenue, exposure to foreign shocks through inadequate forex supply and double-digit inflation.
In view of this, Almona stated that the Federal Government must sustain its targeted interventions in selected critical sectors like agriculture, manufacturing, export infrastructure and tackling insecurity.
She added that if oil revenue made up more than 80 per cent of government revenue, government was expected to tackle the menace of oil theft and pipeline vandalism with sterner approach.
“It is impossible to have a vibrant manufacturing sector in the face of cheap imports into the country and high production and operating cost in the domestic economy.
“For most manufacturing businesses, it is a nightmare; yet, production is critical to enduring economic and social stability.
“The way forward is to address the fundamental constraints to manufacturing competitiveness in the Nigerian economy.
“Our nation is at a crossroads and in dire need of big decisions to drive the drastic transformation the economy requires to return to economic prosperity,” she said.
Looking back, Mr Segun Ajayi-Kadir, Director-General, Manufacturers Association of Nigeria (MAN), said the discovery of oil ushered in a period of prosperity in the form of huge oil revenue from export of crude oil and more domestic infrastructural development was embarked upon.
The MAN DG stated that the manufacturing sector had been largely unimpressive as the country remained largely import dependent.
He noted that the coronavirus pandemic and the ongoing Russian-Ukraine war had compounded the familiar challenges that had limited the growth and development of the manufacturing sector.
He added that inflation; which had risen to 20 per cent; interest rate at double digits, high rate of foreign exchange and the non prioritisation of allocation to the sector truncated its growth prospects, disrupted its operations and continued to limit the potential of the sector for expansion.
“There is, therefore, the need to address the binding constraints that have continued to militate against the performance of the manufacturing sector and limited its share of contribution to the GDP,” he said.
He recommended that investments in local raw materials through direct incentives must be encouraged and significant proportion of available foreign exchange must be allocated to the productive sector, particularly manufacturing.
Ajayi-Kadir stressed that export support policies, like the Export Expansion Grant (EEG), must operate as planned and other support policies must be allowed to gestate before they are changed.
“The country must improve power supply by removing the impediments to access of the eligible customers scheme by manufacturers.
“We must review the curricular of tertiary institutions to align with industry skill requirements and subject to update based on the direction of global changes.
“Existing major economic road corridors must be rehabilitated and new ones must be constructed for seamless movement of raw materials to factories and finished goods to the markets.
“Also, the capital base of the Bank of Industry (BOI) must be improved to allow for adequate lending to the productive sector by the bank,” he said.
Dr Muda Yusuf, Founder, Centre for the Promotion of Private Enterprises (CPPE), noted that the Information and Communication Technology (ICT) aviation, transportation, education sector, health sector, print and electronic media and many more had been significantly transformed over the past six decades.
Accordingly, Yusuf said the economy had witnessed impactful private sector footprints in many sectors, which had made the Nigerian economy to grow in leaps and bounds over the years.
He, however, stated that the country’s macroeconomic management framework continued to pose serious challenges to investors in the economy as the fragile macroeconomic conditions remained a major cause for concern.
The situation, he posited, had been compounded by the shocks and disruptions inflicted by the Russian invasion of Ukraine and the lingering effects of the coronavirus pandemic.
For the manufacturing sector, Yusuf said high infrastructure deficit, cargo clearing challenges worsening at the ports, weak productivity, regulatory challenges and policy inconsistency, among others, continued to beat down the sector’s potential.
As way forward, he stressed the need for urgent steps to be taken to ensure a better macroeconomic management framework to stabilise the exchange rate, eradicate the challenge of illiquidity in the foreign exchange market and stem the current depreciation of the naira.
“Institutional reforms are necessary to ensure that the regulatory institutions have better disposition to support the growth of investment and focus less on the generation of revenue.
“The international trade process needs to be reformed to prioritise trade facilitation.
“The current obsession for revenue generation is hurting the international trade processes and impacting adversely on domestic and foreign investment.
“Therefore, the orientation of the Nigeria Custom Service, Nigerian Ports Authority, the shipping companies and the terminal operators and the security agencies at the ports need to change in favour of an investment friendly international trade processes,” he said.
The journey thus far for the Nigerian economy, particularly manufacturing, has no doubt, been fraught with daunting challenges.
But experts believe that the country has the potential to attain economic growth and development.
Mr Ishaq Yahaya, Chairman, Commodity Brokers Association of Nigeria (CBAN), has expressed optimism that the agricultural sector will be repositioned by the Federal Government to take its pride of place.
Yahaya, who said this in an interview with the News Agency of Nigeria on Friday in Abuja, said agriculture was once Nigeria’s mainstay.
He said in spite that the sector failed to match its performance before the oil boom with implementable policies and strong drive, it would bounce back.
He also said Nigeria could take advantage of technology like drones and deployment of agro rangers to tackle the problem of insecurity so that farmers could go to the farm without the fear of attack.
Yahaya called for improvement in the irrigation system to mitigate the effect of flooding and other challenges.
He said “62 years down the line, one would have thought that the sector would continue to lead in its contribution to the country’s Gross Domestic Product (GDP).
“We know that the oil boom led to less attention on agriculture but with recent attention on the non oil sector, agriculture will take its pride of place in the near future.
“So, if we are able to deploy the right policy, appropriate technology.
tackle insecurity among other things, we will take the sector to another level.
” On commodity exchange, the chairman said proper attention should be given to the commodity exchange ecosystem like brokerage and warehousing to move the sector forward.
NAN reports that agriculture contributed 21.09 per cent to nominal GDP in the first quarter of 2022 according to the National Bureau of Statistics (NBS).
NBS further reports that the figure was lower than the rate recorded for the first quarter of 2021 and lower than the fourth quarter of 2021 which recorded 21.42 per cent and 24.17 per cent.