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Business

Hope rises for employment in December 2020 and January 2021 – CBN survey Report 

The November 2020 edition of the CBN survey report reveals there is hope that businesses would employ in December and January 2021. 

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Banks' stakeholders express 4 main concerns bothering the sector right now, CBN, MARKET UPDATE: CBN’s historic agriculture lending; Is it yielding the desired results? 

The hope of businesses in Nigeria to employ in December 2020 and January 2021 has risen, after several months of layoffs and restructuring of businesses as a result of the harsh realities of the Coronavirus pandemic.

This was disclosed by the CBN Business Expectation Survey report for November 2020.  

  • Findings from the survey indicate a favourable business outlook for December 2020 and January 2021, with indices of 56.0 and 61.4 respectively.
  • Businesses are also hopeful of employing in December 2020 and January 2021 as reflected in the positive outlook at 19.1 and 22.3 index points respectively. 
  • The wholesale/retail trade sector with (22.4 points) has the highest prospect for employment in December, followed by agric/services sector with an index of 21.7 points, construction (16.2 points), and manufacturing sector (14.3 points). 
  • The analysis of businesses with expansion plans in December also shows that the Wholesale and Retail sector has the highest disposition to expand with 50.0 index points, followed by the Manufacturing sector with 43.7 index points, Agric/services sector 39.5 points, Construction sector 34.5 index points. 

Other key highlights 

  • The major factors inhibiting businesses identified by the respondent firms include an insufficient power supply (69.3 points), competition (67.3 points), unfavourable economic climate (64.3 points), high-interest rate (62.3 points), unclear economic laws (61.3 points), financial problems (59.5 points), unfavourable political climate (59.3 points), access to credit (52.0 points), insufficient demand (51.7 points), lack of equipment (39.8 points), lack of materials input (39.1 points), and labour problems(28.9 points). 
  • The respondent firms are expecting the borrowing rates to rise in December 2020, January 2021, next 2 months, and the next 6 months with indices of 16.2, 15.5, 17.0 and 18.6 points respectively. 
  • Businesses are hopeful that the average inflation rate in the next six months and the next twelve months will stand at 15.62% and 14.03 % respectively.
  • Respondents anticipate an increase in economic conditions as the index on economic growth rate in the short run stood at 17.0 and 27.7, 35.2 and 46.8 points, respectively for the current month and next month next 2 months and next 6 months.
  • Respondent firms are quite dissatisfied with the management of inflation by the Government, reflected with a negative net satisfaction index of -25.1points.
  • Respondent firms expect the naira to depreciate in the November 2020 but appreciate in the next month, next 2 months and next 6 months, as their confidence indices stood at -3.4, 12.3, 21.8 and 35.2 index points respectively.

What you should know 

  • The survey is a monthly activity conducted by the Statistics department of the Central Bank of Nigeria (CBN). 
  • The November 2020 Business Expectations Survey was conducted from November 9-13, 2020 with a sample size of 1050 businesses nationwide with a response rate of 89.5%.
  • The sectors covered include agric/services, manufacturing, wholesale/retail trade and construction sectors, made up of small, medium and large corporations covering both import-oriented and export-oriented businesses.

Johnson is a risk management professional and banker with unbridled passion for research and writing. He graduated top of the class with B.sc Statistics from the University of Nigeria and an MBA degree with specialization in Finance from Ambrose Alli University Ekpoma, with fellowships from the Association of Enterprise Risk management Professionals(FERP) and Institute of Credit and Collections management of Nigeria (FICCM). He is currently pursuing his PhD in Risk management in one of the top-rated universities in the UK.

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Business

FRSC to continue enforcement of speed limits devices by motorists

The FRSC has insisted on the enforcement of the installation and usage of speed limit devices in vehicles by drivers.

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The Federal Road Safety Corps (FRSC) has insisted on the enforcement of the installation and usage of speed limit devices in vehicles by drivers to reduce speed on the highway.

This follows the non-adherence to this directive by most motorists who had stopped installing the devices in their vehicles.

According to a report from the News Agency of Nigeria (NAN), this disclosure was made by the Unit Commander of FRSC in Ore, Mr Olusegun Aladenika, in Ore, Ondo State, on Wednesday.

Aladenika said that most motorists on the Ore-Benin Expressway had stopped installing the devices in their vehicles.

While reminding motorists that the FRSC is still enforcing the installation of speed limits on vehicles and usage by drivers, the FRSC top official said that the devices were to reduce speed on the highway in order to check road crashes that often resulted to loss of lives and property.

What the FRSC top official is saying

Aladenika said, “Installing the speed limit devices by motorists in their vehicles to reduce speed on the highway is still very much in force. Motorists must not jettison the installation of the devices in their vehicles because they are good for both drivers and their passengers.

“It will reduce the speed of the vehicle in transit on the highway thereby reducing road crashes and loss of lives and properties,” he said.

Aladenika warned that any defaulting motorists caught driving above the speed limit would be arrested and punished accordingly.

He also urged them to patronise the appropriately registered organisations saddled with the responsibilities of issuing the devices to motorists adding that FRSC was neither a registered body nor given the approval to install the devices but only enforces its default.

What you should know

  • It can be recalled that the FRSC, in 2016, announced the introduction of the use of speed limit devices in vehicles to reduce the incidents of accidents and loss of lives.
  • However, the enforcement and compliance with the installation began on February 1, 2017, with articulated trucks.
  • Following an appreciable level of compliance by commercial vehicles, the FRSC in 2019, said that it would soon begin the enforcement of speed limit devices installation on private vehicles.

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Business

Lagos to enforce law against illegal conversion of properties in Lekki, Magodo schemes

The Lagos State Government has commenced the restoring of Government Residential Schemes to their original plans.

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Lagos issues ultimatum to Tank Farm Operators over planning permit, Lagos seals 27 residential and commercial buildings in Lekki, LASG Seals 19 more Buildings in Banana Island over planning permit

The Lagos State Government has moved against individuals and groups that indiscriminately convert their buildings from residential to commercial as they commence the restoring of Government Residential Schemes to their original plans.

The week-long monitoring and enforcement exercise is to be carried out in the Lekki Peninsula Scheme I and Magodo Residential Schemes I and II.

This disclosure was made by the Lagos State Commissioner for Physical Planning and Urban Development, Dr Idris Salako, on Tuesday, March 2, 2021, in Alausa.

Salako stated that Government Schemes ought to remain residential with provision for services as planned but the schemes had been bastardised by indiscriminate conversion of buildings from residential to commercial by some of the residents.

He added that if the pervasive lawlessness in these Estates were allowed to go on, the future would spell doom for the carefully designed upper-income residential schemes, noting that well-meaning residents had inundated the State Government with complaints and sought redress of the untoward situation.

Salako recalled that the Ministry of Physical Planning and Urban Development had extensively engaged and dialogued with residents of the Estates with a view to righting the wrongs.

He said, “It is noteworthy that engagements with Magodo Phases I and II Residents Association produced the Revised Magodo Scheme I and II, which has since become effective.”

The Commissioner warned that indiscriminate conversion of Government Schemes from Residential to Commercial would not be tolerated in Lagos State and urged those liable for any unlawful conversion to brace up for the Ministry’s enforcement activities.

He said, “Our Monitoring and Enforcement team will be visiting all other Government Schemes for similar action in due course. I, hereby, urge that every part of the State should take a cue from the planned enforcement by desisting from the undue conversion of property without the approval of the appropriate authorities.

What you should know

  • The Lagos State Government had in the past clamped down on property owners who illegally convert their residential buildings to commercial purposes especially in locations like Ikeja, Victoria Island and so on.
  • While warning building owners against the unauthorized conversion of properties for commercial purposes, the state government pointed out that under the state’s physical planning law, a residential property owner must obtain a due permit before it can convert such building for commercial purposes.
  • This practice has seen hitherto purely residential areas turn into commercial with the presence of businesses.

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