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Government Admits ‘We Made A Mistake’

Supportive policies are needed to curb this trend

Published

3 years ago

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Nairametrics| Over the weekend, the Minister of Industry, Trade and Investment, Dr. Okechukwu Enelamah, admitted that some of the policies implemented by the Federal Government affected manufacturers in the country negatively.

“Some policies we passed affected manufacturers in terms of their raw materials and we are correcting those now. We want to discourage dumping and bad practices that happened in the past. But we need to do it in a way that does not hurt local manufacturing.” Guardian quotes him as saying.

A prominent example of this was the devaluation of the Naira. Coupled with the forex scarcity, it made 2016 a year to forget for the real sector, while giving foreign investors access to cheaper funds.

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One result of this seems to be the gradual handing over of the sector into the hands of foreigners. With local producers claiming that over N50 billion was lost in profits last year, some firms were unable to sustain their operations and are now targets of takeover bids by foreign investors. This trend can inhibit the growth of local content.

For example, Swiss Pharmaceutical Company (Swipha), was practically sold over the weekend to French generic medicine manufacturer, Biogaran, who now controls over 95 per cent stake in the company. This acquisition may have been as a result of the inability of the Nigerian firm to sustain its operations due to the high cost of doing business and huge debt.

Similarly, Guardian reports that the parent company of Guinness Nigeria Plc, Diageo (a foreign company), is already planning to take up its rights by way of a debt/equity swap such that the outstanding foreign currency loan (N20.3 billion as at first half of 2017) from Diageo will be used as payment for its rights in Guinness.

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While the Central Bank of Nigeria’s (CBN) recent boost of forex liquidity with over a billion dollars is a wonderful place to start the recovery journey, these examples show that the ghosts of 2016 may still be haunting the real sector. To banish these ghosts, increase local content and ownership, candid and frank efforts must be put in place by the FG to make sure that it doesn’t repeat the kind of policies that were inimical to the real sector last year.

 

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Patricia
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Chacha Wabara-Ogbobine is a Legal practitioner with over 9years post call experience. A research Consultant, professional writer and a blogger at heart,owner of four thriving websites with well over 10years of experience. Totally in love with keeping fit and coaching weight loss enthusiasts. I love my quiet time, being with my kids, watching TV series for hours on end.

3 Comments

3 Comments

  1. Anonymous

    March 20, 2017 at 4:16 pm

    Nice write up. I however believe that the currency devaluation of June 2016 wasn’t a mistake and I certainly do not think that was what Dr. Okechukwu Enelamah was referring to. Yes, devaluation had immediate impacts on the manufacturers considering that many of these companies have a high percentage of imported materials in their input mix. But there isn’t an easier way out to solving our forex scarcity challenge, and the continuous drawn down of our FX reserves to consistently defend the Naira and meet manufacturers demand isn’t the solution. In fact, it would hurt us further in future. Remember, FX earnings is hinged on oil price and production, the former which is already declining and the latter which is unstable and could decline if the people in Niger Delta aren’t getting what was promised.

    I believe the wrong mistake made by the government or maybe the monetary side of the government was the failure to allow the currency float. If that had happened, yes things might have being hard for manufacturers and inflation might have been higher but our currency would have found its true value. With our currency being appropriately priced, FPI’s might have returned thereby increasing dollar supply. At the end of the day we are shying away from borrowing money from multilateral agencies because of the stringent conditions that come with it. If that’s the case, we must look to other means of obtaining dollars.

    Reply

  2. Anonymous

    March 20, 2017 at 4:29 pm

    Nice write up. I however believe that the currency devaluation wasn’t a mistake and I certainly believe that wasn’t what Dr. Okechukwu Enelamah was referring to. Yes, devaluation had immediate impacts on the manufacturers considering that many of these companies have a high percentage of imported materials in their input mix. But there isn’t an easier way out to solving our forex scarcity challenge and the continuous drawn down of our FX reserves to consistently defend the Naira and meet manufacturers demand isn’t the solution. In fact, it would hurt us further in future. Remember, FX earnings is hinged on oil price and production, the former which is already declining and the latter which is unstable and could decline if the people in Niger Delta aren’t getting what was promised.

    I believe the wrong mistake made by the government or maybe the monetary side of the government was the failure to allow the currency float. If that had happened, yes things might have being hard for manufacturers and inflation might have been higher but our currency would have found its true value. With our currency being appropriately priced, FPI’s might have returned thereby increasing dollar supply. At the end of the day we are shying away from borrowing money from multilateral agencies because of the stringent conditions that come with it. If that’s the case then we must look to other means of obtaining dollars.

    Reply

  3. Anodebenze

    March 21, 2017 at 1:57 pm

    let wait and see,for so long the govt have operated a hands-off in the economy,now it looks 2017 they have started to participate actively in the economy.everybody loves their country,they protect their country and their interest with their means.i think this analysis is rubbish in this reaction,I TELL YOU. ? IT’S SIDEWAY.the main issue you raised in this reaction is only about forex scarcity,which can be resolved if the govt (1) participate actively in a mixed or partnership venture with the private(2) allows the private sector generates their forexi.e bsnk,broker,bdc,(3) protectS strategic industry and business from foreign ownership,which is going to happen sooner or later.
    J.C Flowers a private American company bought a germans company,the gernans told j.c flower to sold up.now with the this british exit from Europe union,a merging of the London stock market and the german stock market fell apart due to uncertainity.the French uses various laws to block some americans company buying some French native owned companiesiN THE LATER 1967 TO EARLY 1970S.JAPAN PURSUED AN AGGRESSIVELY EXPORT STRATEGIC AIM GLOBALLY OF WHICH THE PRESIDENT OF FRANCE THEN CHARLES DE GULLES SAID JAPANESE EXECUTIVE TRAVELLING OVERSEAS ARE RADIO TRANSITORS SALESMEN

    Reply

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Coronavirus

COVID-19 Update in Nigeria

On the 5th of July 2020, 544 new confirmed cases and 11 deaths were recorded in Nigeria bringing the total confirmed cases recorded in the country to 28,711.

Published

1 hour ago

on

July 6, 2020

By

The spread of novel Corona Virus Disease (COVID-19) in Nigeria touched a new milestone as the latest statistics provided by the Nigeria Centre for Disease Control reveal Nigeria now has 28,711 confirmed cases.

On the 5th of July 2020, 544 new confirmed cases and 11 deaths were recorded in Nigeria, having carried out a total daily test of 2,933 samples across the country.

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To date, 28,711 cases have been confirmed, 11,665 cases have been discharged and 645 deaths have been recorded in 35 states and the Federal Capital Territory. A total of 151,121 tests have been carried out as of July 5th, 2020 compared to 148,188 tests a day earlier.

COVID-19 Case Updates- 5th July 2020

  • Total Number of Cases – 28,711
  • Total Number Discharged – 11,665
  • Total Deaths – 645
  • Total Tests Carried out – 151,121

According to the NCDC, the 544 new cases were reported from 19 states- Lagos (199), Ebonyi (65),Oyo (47), Ondo (46), Ogun (31), Edo (30), FCT (28), Katsina (25), Plateau (15), Bayelsa (11), Kaduna (10), Adamawa (10), Akwa Ibom (8), Gombe (7), Kano (4), Taraba (3), Rivers (2), Abia (2), Ekiti (1).

Meanwhile, the latest numbers bring Lagos state total confirmed cases to 11,244, followed by Abuja (2,181), Oyo (1,513), Edo (1,383), Kano (1,268), Delta (1,227) Rivers (1,183), Ogun (1,005),  Kaduna (865), Katsina (604), Borno (528), Gombe (520), Bauchi (516), Ebonyi (503), Ondo (456), Plateau (436), Abia (385), Enugu (372), Imo (352), Jigawa (318).

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Kwara state has recorded 269 cases, Bayelsa (245), Nasarawa (225), Osun (165), Sokoto (153),  Niger (122), Akwa Ibom (112), Adamawa (99), Benue (97), Kebbi (84), Zamfara (76), Anambra (73), Yobe (61), Ekiti (44), Taraba (22), while Kogi state has recorded 5 cases.

 

READ ALSO: COVID-19: Western diplomats warn of disease explosion, poor handling by government

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Lock Down and Curfew

In a move to combat the spread of the pandemic disease, President Muhammadu Buhari directed the cessation of all movements in Lagos and the FCT for an initial period of 14 days, which took effect from 11 pm on Monday, 30th March 2020.

The movement restriction, which was extended by another two-weeks period, has been partially put on hold with some businesses commencing operations from May 4. On April 27th, 2020, Nigeria’s President, Muhammadu Buhari declared an overnight curfew from 8 pm to 6 am across the country, as part of new measures to contain the spread of the COVID-19. This comes along with the phased and gradual easing of lockdown measures in FCT, Lagos, and Ogun States, which took effect from Saturday, 2nd May 2020, at 9 am.

On Monday, 29th June 2020 the federal government extended the second phase of the eased lockdown by 4 weeks and approved interstate movement outside curfew hours with effect from July 1, 2020.

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READ ALSO: Bill Gates says Trump’s WHO funding suspension is dangerous

DateConfirmed caseNew casesTotal deathsNew deathsTotal recoveryActive casesCritical cases
July 5, 2020287115446451111665164017
July 4, 202028167603634611462160717
July 3, 2020275644546281211069158677
July 2, 2020271106266161310801156937
July 1, 2020264847906031310152157297
June 30, 202025694561590179746153587
June 29, 20202513356657389402151587
June 28, 20202486749056579007149957
June 27, 20202407777955848625148947
June 26, 20202329868455458253144917
June 25, 20202261459454977822142437
June 24, 20202202064954297613138657
June 23, 20202137145253387338135007
June 22, 20202091967552577109132857
June 21, 202020242436518126879128477
June 20, 202019808661506196718125847
June 19, 202019147667487126581120797
June 18, 20201848074547566307116987
June 17, 202017735587469145967112997
June 16, 202017148490455315623110707
June 15, 20201665857342445349108857
June 14, 202016085403420135220104457
June 13, 20201568250140785101101747
June 12, 20201518162739912489198917
June 11, 2020145546813875449496737
June 10, 20201387340938217435191407
June 9, 2020134646633654420688937
June 8, 2020128013153617404084007
June 7, 20201248626035412395981737
June 6, 2020122333893429382680657
June 5, 20201184432833310369678157
June 4, 2020115163503238353576467
June 3, 2020111663483151332975227
June 2, 20201081924131415323972667
June 1, 20201057841629912312271579
May 31, 20201016230728714300768687
May 30, 2020985555327312285667267
May 29, 202093023872612269763447
May 28, 202089151822595259260647
May 27, 202087333892545250159787
May 26, 2020834427624916238557107
May 25, 202080682292337231155247
May 24, 202078393132265226353607
May 23, 202075262652210217451317
May 22, 2020726124522110200750337
May 21, 2020701633921111190748987
May 20, 202066772842008184046377
May 19, 202064012261921173444757
May 18, 202061752161919164443407
May 17, 202059593881826159441837
May 16, 202056211761765147239737
May 15, 202054452881713132039544
May 14, 202051621931683118038154
May 13, 202049711841646107037374
May 12, 20204787146158695936704
May 11, 202046412421521090235894
May 10, 202043992481421777834794
May 9, 202041512391271174532784
May 8, 202039123861181067931154
May 7, 20203526381108460128184
May 6, 20203145195104553425071
May 5, 2020295014899548123704
May 4, 2020280224594641722912
May 3, 2020255817088240020702
May 2, 20202388220861735119522
May 1, 20202170238691035117512
April 30, 2020193220459731715562
April 29, 2020172819652730713692
April 28, 2020153219545425512322
April 27, 20201337644102559942
April 26, 20201273914152399942
April 25, 20201182873632229252
April 24, 202010951143312088552
April 23, 20209811083231977532
April 22, 2020873912931976482
April 21, 20207821172631975602
April 20, 2020665382311884662
April 19, 2020627862221704362
April 18, 2020541482021663562
April 17, 2020493511841593172
April 16, 2020442351311522772
April 15, 2020407341211282672
April 14, 202037330111992632
April 13, 202034320100912422
April 12, 20203235100852282
April 11, 202031813103702382
April 10, 20203051770582402
April 9, 20202881471512302
April 8, 20202742260442262
April 7, 20202541661442042
April 6, 2020238650351982
April 5, 20202321851331942
April 4, 2020214540251850
April 3, 20202092542251800
April 2, 20201841020201620
April 1, 2020174352091630
March 31, 202013982091280
March 30, 2020131202181210
March 29, 2020111221031070
March 28, 20208919103850
March 27, 2020705103660
March 26, 20206514102620
March 25, 2020517102480
March 24, 2020444102410
March 23, 20204010112370
March 22, 2020308002280
March 21, 20202210001210
March 20, 2020124001110
March 19, 20208000170
March 18, 20208500170
March 17, 20203100030
March 16, 20202000020
March 15, 20202000020
March 14, 20202000020
March 13, 20202000020
March 12, 20202000020
March 11, 20202000020
March 10, 20202000020
March 9, 20202100020
March 8, 20201000010
March 7, 20201000010
March 6, 20201000010
March 5, 20201000010
March 4, 20201000010
March 3, 20201000010
March 2, 20201000010
March 1, 20201000010
February 29, 20201000010
February 28, 20201100010

Patricia
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Coronavirus

Nigerian Governors who have tested positive for Coronavirus 

Six Nigerian governors have contracted the novel coronavirus, but some have recovered.

Published

2 hours ago

on

July 5, 2020

By

On Saturday, July 4, Ebonyi State Governor, David Umahi announced that he had tested positive for COVID-19. This makes him the 6th Governor to have tested positive for the virus that has infected over 11 million and killed no less than 532,000 people globally. 

Governor David Umahi of Ebonyi State

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Kaduna State Governor, Nasir El- Rufai was the first governor confirmed to have been infected and recovered in April. 

READ ALSO: Oyo State Governor, Seyi Makinde is worth over N48bn

Governor Nasir el-Rufai of Kaduna State

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Bauchi State Governor, Bala Mohammed, was also infected in March and was reported to have recovered on the 9th of April. 

Governor Bala Mohammed of Bauchi State

Oyo State Governor, Seyi Makinde, announced that he tested positive on 30th, March, 2020 and his recovery was reported on the 5th of April. 

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Governor Seyi Makinde of Oyo State

Ondo State Governor, Rotimi Akeredolu, tested positive last week on June 30th and Delta’s Ifeanyi Okowa announced that he and his wife had tested positive on July 1. 

READ MORE: NNPC to recommence search for oil in the Lake Chad Basin

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Governor Rotimi Akeredolu of Ondo State

Governor Ifeanyi Okowa of Delta State

READ ALSO: Abba Kyari’s last letter to President Buhari

So far, the governors who have tested positive for COVID-19 are:    

1. Nasir el-Rufai

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2. Bala Mohammed

3. Seyi Makinde

4. Rotimi Akeredolu

5. Ifeanyi Okowa

6. David Umahi

 

Earlier this weekend, Benue State Governor, Samuel Ortom announced that his wife, Mrs. Eunice Ortom, their son, and some of the wife’s aides had tested positive for COVID-19.

With Nigeria and the rest of the world still battling to contain the dreaded virus, the total number of confirmed cases has risen to 28,167 from 148,188 tests carried out as at Saturday, July 4, 2020. In addition, while 11,462 have recovered, 634 persons have died.

 

Patricia
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Energy

BUA cement to build power and cement plants in Adamawa state

BUA Cement’s newest plant in Sokoto is expected to be operational in 2021.

Published

5 hours ago

on

July 5, 2020

By

NPA Decommissioning of Port Harcourt Terminal: We'll vigorously defend, protect our rights - BUA Group, NPA and BUA Group dispute to affect 1000 jobs, $500,000 monthly revenue, Terminal closure: BUA clears air on NPA’s claims , Forbes 2020 world’s richest rankings released: Only 4 Nigerians make exclusive billionaires list

BUA Cement has announced plans to build a 50 megawatts power plant and 3 million metric tonnes cement plant in Lamurde and Guyuk local governments in Adamawa States.

BUA Cement which is Nigeria’s second-largest cement producer by volume with plants in Sokoto and Edo States, with the projects wants the boost the country’s power supply and increase the local production capacity for cement.

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This was disclosed by the Chairman of BUA Cement, Abdul Samad Rabiu, in a press statement on Sunday, July 5, 2020, in Lagos.

The BUA Cement Chairman who led the company’s management team on a courtesy visit to the Adamawa State Governor, Ahmadu Umaru Fintiri, after preliminary findings showed that Guyuk and Lamurde areas had quality limestone.

According to Rabiu, “Preliminary findings show that the two local governments of Guyuk and Lamurde are reputed to have good quality limestone deposits and BUA Cement is ready to begin the investment in the state.

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“BUA will use new technologies to supply power to the proposed cement plant and communities of Guyuk and Lamurde in addition to providing three thousand direct and five thousand indirect jobs.

“Guyuk Cement Plant will be a major investment in the North-East by BUA, while we solicit the support of Gov. Umaru Fintiri to set up the factory in Guyuk.”

READ MORE: 10 fantastic things Aliko Dangote has done in the last 10 years

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He added that while the company has invested billions of dollars in various sectors across Nigeria, it has taken a decision to source its raw materials locally and therefore urged the Adamawa state government to support BUA to actualize the GUYUK Cement project.

The Adamawa State Governor, Ahmadu Fintiri, in his response assured the Chairman and management team of BUA, that the state government would provide all the necessary support and make available whatever was needed to make the projects a reality.

BUA Cement’s newest plant in Sokoto is expected to be operational in 2021 and expects that its total production capacity will get to 14 million metric tonnes of cement per annum upon the completion of Guyuk Cement Plant.

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BUA Cement has been having a running battle with Dangote Cement over the ownership of 3 mining sites in Obu and Okpella in Edo State. The mining sites have been subject of legal tussle between the 2 biggest cement companies in the country.

 

Patricia
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