The Central Bank of Nigeria (CBN) Business Expectation Survey (BES) Report for the month of March 2019 reveals that insufficient power supply has remained the leading factor hindering businesses in Nigeria.
According to the CBN report, insufficient power supply recorded the highest points of 63.9 for the period under review. Despite this, the report shows that Nigeria’s industrial sector witnessed the highest prospects for job creation.
The CBN survey was conducted with a sample size of 1050 businesses nationwide, including small, medium, and large corporations covering both import- and export-oriented businesses.
- Businesses’ outlook showed greater confidence on the macroeconomy
- Operators in industrial and service sectors expressed the greatest optimism for growth
- Business activity and financial condition outlook remain positive
- The industrial sector recorded the highest employment outlook
- Insufficient power supply remains a major constraint to business activity in Nigeria
- Expectations on the growth of the economy rose steadily in the short run
Industrial and service sectors driving Business Outlook
Recall that despite the consecutive drop in the industrial sector gross domestic product (GDP) in Q2 and Q3 of 2018, the sector showed a sign of recovery and recorded growth in Q4. Overall, Nigeria’s industrial sector grew at 1.94% in 2018.
The optimism on the macroeconomy in the current month was driven by the
operators in the service sector (16.8 points), industrial (8.6 points),
wholesale/retail trade (2.3 points), and construction sectors (0.5 points).
Similarly, the major drivers of business optimism were service sector (37.0 points), industrial (19.4 points), wholesale/retail trade (6.2 points), and construction sectors (2.2 points).
Also, service sector recorded greatest optimism on own operation with an index of 7.1 points, followed by the industrial sector with 3.3 points. Also, the wholesale and retail trade recorded 2.0 points and the construction sector with 0.5 points respectively
Businesses continue to witness power supply glitch
Low capacity utilisation, insufficient power supply, and huge importation have remained recurring decimal and bane causing a downward trend in Nigeria’s manufacturing sector.
To substantiate this, the CBN business survey report identified insufficiently
power supply (63.9 points) as the leading factor constraining businesses in the country.
According to the report, other factors include high interest rate (55.3 points), unfavourable economic climate (54.6 points), financial problems (51.8 points), unfavourable political climate (50.0 points), unclear economic laws (49.4 points), insufficient demand (42.8 points), and access to credit (41.8 points)
Poor power supply has tendencies to slow Country’s growth
Poor electricity supply, for instance, has diminished most economic activities. It has also forced companies to generate their own alternatives to power sources, which adds to the overhead cost.
In a recent power sector’s stakeholders, the Manufacturers Association of Nigeria’s (MAN’s) and Association of Nigerian Electricity Distributors (ANED) in Lagos reportedly stated that Nigeria needs 180,000 megawatts (Mw) of electricity over the next 10 years to drive real and sustainable economic growth.
‘”South Africa with 67 million people generates 48,000Mw and they are now working to increase the generation to 79,000 Mw. In Nigeria, 5,150 Mw was the peak we generated since 1980. Let us be sincere with ourselves, to generate power is expensive. To do 1,000Mw, you will need about $1.2billion”
In a separate report from the Rural Electricity Agency, it was revealed that businesses spend almost $14bn (N5tn) annually on an inefficient power generation (N140/kWh or more). As this continues to linger, tendencies to slow the country’s growth is inherent.
Despite this, the Industrial Sector still shows the highest prospect for job creation
Despite the power supply glitch, the CBN report employment outlook index by sector showed that the industrial sector (31.5 points), indicates the highest prospects for creating jobs. Followed by services (23.8 points), wholesale/retail trade sector (23.6 points) and construction sector (16.7 points).
Why it matters?
Nairametrics had earlier reported that the latest manufacturing Purchasing Managers’ Index (PMI) covering the month of March 2019, indicates that Nigeria’s manufacturing sector expanded for the 24th consecutive month.
The outcome of the survey underscores the fact that sufficient power supply is a very important component required for businesses to function properly and to expand. Higher electricity costs drive business costs higher and reduce business competitiveness.
Boosting the manufacturing sector could contribute to jobs creation and reduce unemployment which is currently high at around 23 per cent. Growth in the industry is the future, and Nigeria must fix the perennial problem of insufficient power supply to adequately provide power for the sector to achieve its full potential for growth and development.
Netflix competes with TikTok, launches rival product
Netflix has launched a new feature that will allow users to watch, react,r share short clips and more.
Netflix, the world’s leading video streaming platform has launched a new feature called “Fast Laughs” that will allow users to watch, react or share short clips as well as add the show or movie to a Netflix watchlist or you can simply tap the “Play” button to start watching the show immediately.
Similar to Tiktok or Instagram’s Reel, Fast Laughs features full-screen videos that you can swipe through vertically, and places the engagement buttons on the right side of the screen. These buttons let you react to the clip with a “LOL” (crying/laughing) emoji or share it via iMessage or other social media apps, like WhatsApp, Instagram, Snapchat, or Twitter. The only difference is that there is no comment button yet.
Users can access the feed through the bottom navigation menu by clicking on the Fast Laughs tab. The clips will start playing automatically when one ends another begins.
The feature will include a full-screen feed of funny clips from Netflix’s big comedy catalog including films like “Murder Mystery”, series like “Big Mouth’’, sitcoms like the ‘Crew’’ and stand-up from comedians like Kevin Hart and Ali Wong.
Fast laugh is currently available for iPhone users in select countries, and Netflix will be testing on Android soon.
Apapa gridlock: Sanwo-Olu explains how his administration solved the problem
The Governor said the electronic Call-Up was designed to permanently address the movement of trailers in and out of the ports.
The Lagos State Governor, Babajide Sanwo-Olu, has explained how his administration in partnership with the Nigerian Ports Authority (NPA) and other stakeholders in the maritime sector was able to get the heavy articulated vehicles off the road around the Apapa axis and improve traffic along that corridor.
This is as the governor has warned that the state government would resist any attempt by individuals and maritime operators that may want to reverse the progress being recorded along the Apapa corridor.
This disclosure was made by Sanwo-Olu on Wednesday while speaking at the formal hand over of newly improved 3 traffic-prone junctions along the Lekk-Epe expressway.
The Governor said the electronic Call-Up System launched, last Saturday, in the Apapa seaports was designed to permanently address the movement of trailers in and out of the ports, and bring about traffic improvement along the corridor.
What Governor Babajide Sanwo-Olu is saying
While sharing the details, the Governor described the progress recorded in Apapa as a hard-won, disclosing that it took the State Government over a year to bring together all stakeholders on the discussion table to agree on a far-reaching approach to permanently address the problem.
Sanwo-Olu said, “What we are seeing is the beginning of the lasting solution we have brought to Apapa. Our appeal is that we are not out of the problem completely yet. Our citizens can now see that a journey that took them three hours can, indeed, take between 15 and 20 minutes to commute. Everyone can now see that when we work together, indeed we can solve our problems internally.
“We have taken some troublesome people that are benefiting from the gridlock out of the way. Whatever they were earning illegally has been taken away from them. We know they will want to make an attempt to fight back. We will not stop at anything to ensure that anybody that tries to retract the progress or wants to take us back to gridlock in Apapa will be fought against. We will bring out their names and shame them.”
The Governor vowed that any corporate organisation, security operative, NPA or State Government official who attempts to circumvent the newly instituted traffic procedures around the Apapa seaports would be named and shamed publicly.
The Governor said the State was serious about bringing a lasting solution to the Apapa congestion, stressing that the Government could no longer condone the careless attitude of truckers clogging the highways with heavy-duty vehicles.
He said part of the State’s efforts was to approach the Federal Government for the unbundling of the inefficient Presidential Taskforce on Apapa gridlock and took over the traffic management in the area.
Sanwo-Olu added that State Government also met with stakeholders, including the Federal Ministry of Transportation, Maritime operators and seaports unions.
He said: “I commend NPA’s Managing Director and management for working with us on this agenda. My appeal is to other stakeholders in the maritime sector who have not signed up on the electronic Call-Up System we have embarked on. I call the big logistics companies, including Sifax, Dangote, Flour Mills, Tunde Folawiyo and others, to come and collaborate with us on this progress.
“Let us have a system that our citizens will be proud of. We will stop at nothing to sustain the progress achieved. Our team will be working round the clock to keep the system working. This is one of our modest efforts to deliver what we promised in solving traffic and transportation challenges. We will not relent in doing anything required to ensure traffic improvement in Apapa.”
What you should know
- Following the withdrawal of the Presidential Task Force on port congestion, the Lagos State Governor, Babajide Sanwo-Olu, set up a Special Traffic Management Team to resolve the traffic gridlock in and around the Apapa corridor.
- The Electronic Truck call-up system, Eto, which was designed and launched by NPA for the management of truck movement and access to and from the Lagos ports and to end the gridlock in and around the ports, formally took off last weekend.
- During the implementation of the new system, all trucks doing business at the ports will be required to park at the approved truck parks until they are called up into the port through the Eto app.
ATTEMPTS TO BRING BACK GRIDLOCKS ON APAPA CORRIDOR WILL BE RESISTED, SANWO-OLU VOWS
•Threatens To Publish Names of Uncooperative Stakeholders
•Governor Hands Over Three Improved Junctions, Ogombo Drainage In Eti Osa@jidesanwoolu#LASG
More.. https://t.co/3ymNJHJFDz pic.twitter.com/luC8xgDoRj
— The Lagos State Govt (@followlasg) March 3, 2021
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