Economy
BoI Reiterates Financial Support to Manufacturers Under AfCFtA
By Adedapo Adesanya
The Bank of Industry (BoI) has urged manufacturers to embrace the various available financing options aimed at driving the sector’s competitiveness under the African Continental Free Trade Area (AfCFTA).
This was the centre focus at the 52nd Annual General Meeting (AGM) of the Manufacturers Association of Nigeria (MAN) Apapa Branch, Lagos, on Tuesday, themed Financing Nigeria’s Manufacturing Sector for Economic Growth.
Mr Olukayode Pitan, the Managing Director of BoI, said that seamless access to finance was imperative to sustain the manufacturing sector, considering its contribution to the economic diversification drive of the nation.
Mr Pitan, represented by Mr Isa Omagu, General Manager for Large Enterprises at BoI, said the bank was poised to support manufacturers and committed to providing financing solutions to sustainable businesses.
He urged manufacturers to improve their ability to have access to finance for competitive advantage by keeping their businesses in order, adopting digital solutions to improve processes, and avoiding fraudulent business ideas.
He listed some of the lingering problems affecting productivity in the manufacturing sector, including the inability to access finance, infrastructural deficiencies, high energy costs, and high lending rates, among others.
Mr Pitan noted that accessing finance remained a major challenge facing manufacturers due to poor stock-keeping practices and lack of credit history, structure, and collateral.
He said the best financing options for Nigeria manufacturers to compete effectively under AfCFTA remained through Development Financial Institutions (DFIs) interventions such as BoI and African Export-Import Bank (Afreximbank).
He added that the bank had developed products to provide equipment financing and working capital for Micro, Small, and Medium Enterprises (MSME) in target sectors at less than 10 per cent interest rate per annum.
“Financing is a key consideration for Nigerian manufacturers to ensure business survival and profitability as the sector can play a key role in enabling the country’s industrialisation and economic development drive.
“Our business model reflects our goal to drive development through financial and advisory support to all customer levels with dedicated teams for micro, small, and medium enterprises, youth, and women-led businesses.
“Key issues considered are relatively low-interest rate, MSME focus, innovative financial solutions, job and value creation, sustainability and societal impact,” he said.
On the part of the Lagos State government, Mrs Ososanya, Permanent Secretary, Lagos State Ministry of Commerce, Industry and Cooperatives, who represented the Governor of Lagos, Mr Babajide Sanwo-Olu, said it was imperative for manufacturers to explore various avenues of financing to bolster competitiveness, sustainability and harness the full potentials of the AfCFTA.
She said that grants such as export programme grants, market exploitation grants, and business attraction grants among others were available for manufacturers to explore.
She said to attain and maintain competitiveness under AfCFTA, the state would continue to foster an environment that facilitates seamless access to financing options tailored to the unique needs of Nigerian manufacturers.
“Manufacturers can also take advantage of traditional sources such as venture capital, private equity, and export financing to support and facilitate international trade and exports.
“There is a need to collaborate with the finance sector, manufacturers, private sector, and government establishments,” she said.
On his part, Otunba Francis Meshioye, President, MAN, said the recent economic developments brought about government policies such as floating of the naira, removal of fuel subsidy, and increase in interest rate, made the theme of the meeting apt and timely.
He said the association would continue to give priority to issues affecting the sector while striving to ensure that government provides the needed environment for our investments to thrive.
By Modupe Gbadeyanka
The federal government has been asked by the Nigerian Bar Association (NBA) to suspend the implementation of the controversial tax laws.
In a reaction to the tax reform acts, the president of the group, Mr Afam Osigwe (SAN), the suspension of the laws would allow for a proper investigation into allegations of alterations in the gazetted and harmonised copies.
A member of the House of Representatives, Mr Abdussamad Dasuki, alleged that some parts of the laws passed by the parliament were different from the gazetted copy.
To address the issues raised, the NBA said it is “imperative that a comprehensive, open, and transparent investigation be conducted to clarify the circumstances surrounding the enactment of the laws and to restore public confidence in the legislative process.”
“Until these issues are fully examined and resolved, all plans for the implementation of the Tax Reform Acts should be immediately suspended,” the association declared.
It noted that the controversies “raise grave concerns about the integrity, transparency, and credibility of Nigeria’s legislative process.”
“These developments strike at the very heart of constitutional governance and call into question the procedural sanctity that must attend lawmaking in a democratic society,” it noted.
“Legal and policy uncertainty of this magnitude has far-reaching consequences. It unsettles the business environment, erodes investor confidence, and creates unpredictability for individuals, businesses, and institutions required to comply with the law. Such uncertainty is inimical to economic stability and should have no place in a system governed by the rule of law.
“Nigeria’s constitutional democracy demands that laws, especially those with profound economic and social implications, emerge from processes that are transparent, accountable, and beyond reproach. Anything short of this undermines public trust and weakens the foundation upon which lawful governance rests.
“We therefore call on all relevant authorities to act swiftly and responsibly in addressing this controversy, in the overriding interest of constitutional order, economic stability, and the preservation of the rule of law,” the organisation stated.
By Adedapo Adesanya
Demand for hot stocks, including MRS Oil Plc, buoyed the NASD Over-the-Counter (OTC) Securities Exchange by 0.52 per cent on Tuesday, December 23.
The energy company was one of the three price gainers for the session as it chalked up N19.69 to sell at N216.59 per share versus the previous day’s value of N196.90 per share.
Further, FrieslandCampina Wamco Nigeria Plc gained N2.95 to close at N56.75 per unit versus N53.80 per unit and Golden Capital Plc appreciated by 84 Kobo to N9.29 per share from Monday’s N8.45 per share.
Consequently, the market capitalisation went up by N10.95 billion to N2.125 trillion from N2.125 trillion and the NASD Unlisted Security Index (NSI) rose by 18.31 points to 3,570.37 points from 3,552.06 points.
Yesterday, the NASD bourse recorded a price loser, the Central Securities Clearing System Plc (CSCS), which gave up 17 Kobo to close at N33.70 per unit against the previous trading value of N33.87 per unit.
The volume of securities traded at the session went down by 97.6 per cent to 297,902 units from the previous day’s 12.6 million units, the value of securities decreased by 98.5 per cent to N10.5 million from N713.6 million, and the number of deals remained flat at 32 deals.
By value, Infrastructure Credit Guarantee Company (InfraCredit) Plc ended as the most actively traded stock on a year-to-date basis with 5.8 billion units exchanged for N16.4 billion. This was followed by Okitipupa Plc, which traded 178.9 million units valued at N9.5 billion, and MRS Oil Plc with 36.1 million units worth N4.9 billion.
In terms of volume, also on a year-to-date basis, InfraCredit Plc led the chart with a turnover of 5.8 billion units traded for N16.4 billion. Industrial and General Insurance (IGI) Plc ranked second with 1.2 billion units sold for N420.7 million, while Impresit Bakolori Plc followed with the sale of 536.9 million units valued at N524.9 million.
By Dipo Olowookere
It was another bullish trading session for the Nigerian Exchange (NGX) Limited as it closed higher by 0.59 per cent on Tuesday.
The market further rallied due to continued interest in large and mid-cap stocks on the exchange by investors rebalancing their portfolios for the year-end.
Yesterday, Aluminium Extrusion sustained its upward trajectory after it further appreciated by 9.96 per cent to N14.90, as Austin Laz gained 9.81 per cent to close at N2.91, Custodian Investment improved by 9.69 per cent to N38.50, and First Holdco soared by 9.35 per cent to N50.30.
Conversely, Royal Exchange declined by 7.22 per cent to N1.80, Champion Breweries shrank by 6.57 per cent to N15.65, NASCON lost 5.36 per cent to trade at N105.05, Sovereign Trust Insurance depreciated by 5.28 per cent to N3.77, and Japaul went down by 4.51 per cent to N2.33.
At the close of business, 29 shares ended on the gainers’ table and 27 shares finished on the losers’ log, representing a positive market breadth index and bullish investor sentiment.
This raised the All-Share Index (ASI) by 895.06 points to 153,354.13 points from 152,459.07 points and lifted the market capitalisation by N579 billion to N97.772 trillion from the previous day’s N97.193 trillion.
VFD Group finished the day as the busiest stock after it recorded a turnover of 192.0 million units worth N2.1 billion, GTCO exchanged 63.5 million units valued at N5.6 billion, Access Holdings traded 49.8 million units for N1.0 billion, First Holdco sold 45.8 million units valued at N2.3 billion, and Secure Electronic Technology transacted 38.3 million units worth N28.4 million.
In all, market participants bought and sold 677.4 million units valued at N20.8 billion in 27,589 deals compared with the 451.5 million units worth N13.0 billion traded in 33,327 deals on Monday, showing an improvement in the trading volume and value by 50.03 per cent and 60.00 per cent apiece, and a shortfall in the number of deals by 17.22 per cent.
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