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BUA Cement, Others Boost Nigeria’s Manufacturing Production Value to N3.73trn

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Manufacturers Association of Nigeria

By Adedapo Adesanya

Nigeria’s manufacturing sector recorded N3.73 trillion in production in the second half of 2021, 58.1 per cent higher than the N2.36 trillion reported in the corresponding half of 2020.

The president of the Manufacturers Association of Nigeria (MAN), Mr Mansur Ahmed, disclosed at a presentation on Thursday that this growth is indicative of the development in the industry.

He noted that the manufacturing production value increased by N0.07 trillion or 1.9 per cent when compared with the N3.66 trillion achieved in the first half of last year, while the total value of production for the year stood at N7.03 trillion as against the N4.42 trillion posted in 2020, which was ravaged by COVID-19, which prompted lockdown in most part of the year.

Mr Ahmed said the increase in the manufacturing production value in the second half of 2021 was associated with increased cement production due to the new BUA cement factory in Sokoto; the African Glass new factory and activities of the five new papermills.

“This is also highlighted by the increased production value in the non-metallic mineral products sector to N374.41 billion in the second half of 2021 from N74.18 billion and N249.79 billion recorded in the corresponding half in 2020 and the preceding half respectively,” he said.

Also, capacity utilisation in the manufacturing sector increased to 59 per cent in the second half of 2021 from 53.7 per cent recorded in the corresponding half of 2020; indicating a 5.3 per cent increase over the period.

It increased by 6.6 per cent when compared with 52.4 per cent recorded in the preceding half and averaged 58.9 per cent in 2021 from the 49.5 per cent average in 2020.

He said Mr Ahmed attributed the increase in manufacturing capacity utilisation to the phasing of economic and social restrictions meant to contain the COVID-19 pandemic and the full rebounding of economic activities globally within the period.

“In addition, there are increased capacities in the paper subsector brought in by five new paper mills that are into recycling of waste papers to produce cartons.

“Also, the additional capacities as BUA Group introduced a cement factory in Sokoto and the new African Glass Ltd. factory that produced glass products influenced the development.

“The performance shows that manufacturing is fast returning to the 2019 pre-COVID-19 level of activities in the country,” he said.

The MAN President revealed that investments in the manufacturing sector increased to N73.18 billion from N56.44 billion recorded in the corresponding half of 2020; indicating N16.74 billion or 29.7 per cent increase over the period.

Ahmed said it increased by N70.96 billion or 49.3 per cent when compared with N144.14 billion recorded in the preceding half with manufacturing investment totalling N217.22 billion in 2021 as against N118.52 billion in 2020.

Manufacturing investment has been gradually recovering following the return of economic activities as the issues of the COVID-19 pandemic are continuously resolved.

“In the last year, significant investment has been recorded in the Pulp, Paper, Printing & Publishing (6Ps) sector with the establishment of five new paper mills that are into recycling of waste papers to produce cartons.

“There is also the new BUA Group cement factory in Sokoko; and the new African Glass Limited factory that produced glass products,” he said.

Also, the total historical cumulative jobs in the manufacturing sector were estimated at 1,671,441 by the end of 2021, based on surveys conducted since 2013.

According to the report, a total of 8,508 jobs were created in the sector in the second half of 2021 as against 3,451 jobs recorded in the corresponding half of 2020 and 7,602 jobs created in the preceding half.

“The total net employment in the sector in 2021, after adjusting for job losses was 11,659 while net job losses in 2020 were 3,257.

“The trend indicates that manufacturing job is also rebounding following the gradual return of economic activities in the sector after a year onslaught brought by COVID-19 pandemic,” it read.

Mr Ahmed said Foreign Direct Investment (FDI) recorded $107.81 million in the third quarter of 2021; translating to a pick up from the downward trend of FDI in the country since the fourth quarter of 2020.

He said the association’s data also revealed an increase from $77.97 million recorded in the second quarter of 2021, which was the lowest level recorded for the past 11 years.

He noted that the report of the manufacturing sector’s FDI revealed an uptick in the third quarter of 2021 when compared with the data recorded in the last three quarters.

“Therefore, the third quarter figure of $107.81 million indicates 29.84 million dollars or 38.27 per cent increase when compared with $77.97 million recorded in the second quarter.

“The figure indicates a drop of $306.98 million or 74.01 per cent when compared with $414.79 million recorded in the corresponding quarter of 2020.

“The third quarter report of NBS revealed that the foreign Portfolio Investment increased to 1217.21 million dollars from $551.37 million dollars indicating, $665.84 million or 120.76 per cent increase over the period,” he said.

Similarly, the figure revealed an increase of $809.96 million or 198.89 per cent when compared with $407.25 million recorded in the corresponding quarter of 2020.

“The FDI increased to $323.83 million in the third quarter of 2021 from 68.03 million dollars recorded in the second quarter of 2021, thus indicating $255.80 million or 376.01 per cent increase over the period.

“However, the report indicated $76.26 million or 19.06 reduction when compared to $400.09 million recorded in the third quarter of 2020,” Mr Ahmed added.

He, however, said local raw materials utilisation in the manufacturing sector dipped to 51.7 per cent in the review period from 56.5 per cent in the corresponding period of 2020; indicating a 4.8 per cent decline over the period.

He noted that since the full opening of the economy from the COVID-19 pandemic, local raw materials and other manufacturing inputs had been relatively scarce and costly.

The MAN boss also said the inventory of unsold finished products dipped to N224.63 billion in the second half of 2021 from N303.22 billion recorded in the corresponding half of 2020.

This, he said, indicated a N78.59 billion or 25.9 per cent decline over the period.

“However, it increased by N9.8 billion or 4.6 per cent when compared with N214.83 billion recorded in the preceding half.

“Inventory in the sector totalled N439.46 billion in 2021 as against N577.61 billion recorded in 2020. “The decline in inventory in the period under review was attributed to the recovering aggregate consumption following the gradual rebounding of economic activities as COVID-19 pandemic receded,” he said.

Adedapo Adesanya is a journalist, polymath, and connoisseur of everything art. When he is not writing, he has his nose buried in one of the many books or articles he has bookmarked or simply listening to good music with a bottle of beer or wine. He supports the greatest club in the world, Manchester United F.C.

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Economy

NGX Index Advances by 0.50% as Ecobank, MTN, Others Gain

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NGX Index

By Dipo Olowookere

Buying interests in Ecobank, MTN Nigeria and others lifted the stock market by 0.50 per cent on Monday as investors are having confidence again in the Nigerian Exchange (NGX) Limited after a wave of selling pressure caused by global uncertainties.

At the market yesterday, the All-Share Index (ASI) nudged closer to the 52,000 psychological points as it gained 344.12 points to settle at 51,962.85 points compared with the preceding session’s 51,618.73 points.

But the market capitalisation moved to the next level as it appreciated by N186 billion to close the first trading session of the week at N28.014 trillion versus last Friday’s N27.875 trillion.

Data from the exchange showed that the insurance space grew by 1.50 per cent, the banking index gained 0.51 per cent, the energy counter rose by 0.12 per cent, while the consumer goods sector lost 0.56 per cent, with the industrial goods space flat at the close of business.

The activity chart was in the green on Monday as the trading volume expanded by 70.75 per cent to 266.5 million shares from 223.3 million shares, the trading value increased by 41.82 per cent to N2.6 billion to N1.8 billion, while the number of trades improved by 17.12 per cent to 5,050 deals from 4,312 deals.

It was observed that Livingtrust Mortgage Bank emerged as the most traded stock with a turnover of 64.7 million units valued at N77.6 million, trailed by Transcorp with a turnover of 31.8 million units worth N39.7 million. Access Holdings exchanged 29.3 million shares for N275.2 million, Oando sold 27.7 million stocks worth N162.4 million, while UBA transacted 20.6 million equities valued at N152.8 million.

Business Post reports that the market breadth closed positive yesterday with 18 price gainers and 16 price losers, indicating a strong investor sentiment.

Ecobank chalked up 9.79 per cent as the highest price gainer to settle at N10.65, John Holt appreciated by 9.52 per cent to 69 kobo, Linkage Assurance improved by 9.43 per cent to 58 kobo, Okomu Oil jumped by 8.53 per cent to N210.00, while Cornerstone Insurance rose by 6.45 per cent to 66 kobo.

PZ Cussons closed the day as the biggest price decliner after it dropped 10.00 per cent to sell at N11.25, Eterna lost 9.33 per cent to finish at N6.80, RT Briscoe depreciated by 6.25 per cent to 45 kobo, Ardova fell by 5.09 per cent to N13.05, while Nigerian Breweries declined by 3.42 per cent to N57.95.

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Economy

Unlisted Securities Investors Gain N10bn in One Week 

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NASD Unlisted Securities Index

By Adedapo Adesanya

The 25th week of trading at the National Association of Securities Dealers (NASD) Over-the-Counter (OTC) Securities Exchange ended on a positive note last Friday.

In the five-day trading week, investors saw an expansion in their investment portfolios by 0.5 per cent or N10 billion as the market capitalisation closed at N1.011 trillion compared with the preceding week’s N1.010 trillion as the NASD Unlisted Securities Index (NSI) increased by 3.86 points to 768.27 points from 764.41 points.

Business Post reports that three stocks on the bourse contributed to the gains reported by unlisted securities investors last week as they overpowered the losses printed by two equities.

Niger Delta Exploration and Production Plc appreciated in the week by 10 per cent to close at N198.00 per share in contrast to the preceding week’s N180 per share, Citi Trust Plc grew by 9.6 per cent to N6.85 per unit from N6.25 per unit, while Central Securities Clearing System (CSCS) Plc appreciated by 2.5 per cent to N14.80 per share from N14.44 per share.

Conversely, NASD Plc lost 8.7 per cent to settle at N13.68 per unit compared with the previous N15.00 per unit, while Nipco Plc depreciated by 5.2 per cent to N58.85 per share from N62.10 per share.

There was a 352.8 per cent increase in the total value of transactions in the week to N324.4 million from N69.9 million, while the volume of trades went down by 57.0 per cent to 6.0 million units from 2.6 million units just as the number of deals decreased by 8.1 per cent to 57 trades from 62 trades of the previous week.

At the close of the week, VFD Group Plc was the most traded security by volume with 1.2 million units, CSCS Plc traded 703,377 units, NASD Plc exchanged 350,935 units, CitiTrust Holdings Plc traded 214,800 units, while NDEP Plc sold 65,300 units.

In terms of the value of trades in the week, VFD Group Plc also topped with N293.5 million, NDEP Plc recorded N12.5 million, CSCS Plc traded N10.4 million, NASD Plc posted N5.3 million, while CSCS Plc had N1.5 million.

On a year-to-date basis, investors have transacted 3.2 billion units worth N21.3 billion in 1,428 deals, with the year-to-date gain at 3.4 per cent.

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Economy

Trading in Greif Nigeria Shares Halted for Smooth Winding up Process

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Greif Nigeria

By Dipo Olowookere

Holders of Greif Nigeria Plc shares have been prevented from trading the security on the floor of the Nigerian Exchange (NGX) Limited for now.

The embargo on the trading of the company’s stocks was placed on Monday, June 20, 2022, to ensure the process of winding up the organisation goes seamlessly.

Greif Nigeria, formerly known as Van Leer Containers Nigeria Plc, is in the business of making steel drums in the country. It also manufactures plastic containers and sheet metal products.

The company, which is a subsidiary of Greif International Holding BV, also offers services for steel punching and aluminium welding.

But lately, things have not been going on smoothly and it is in the process of winding up.

At its Annual General Meeting (AGM) held on January 31, 2022, the shareholders of the firm authorised the board to begin the voluntary winding up of the company.

In accordance with Section 622 of the Companies and Allied Matters Act (CAMA) 2020 which states that a voluntary winding-up shall be deemed to commence at the time of the passing of the resolution for voluntary winding-up, the NGX Regulation (NGX RegCo) Limited, has notified “all trading license holders and the investing public that it has suspended trading in the shares of Greif Nigeria Plc effective on Monday, June 20, 2022, to ensure a smooth winding-up process.”

In a notice filed last week, the agency explained that this action was also in line with Section 624 of CAMA 2020 which provides that a transfer of shares, not being a transfer made to or with the sanction of the liquidator, and any alteration in the status of the members of the company, made after the commencement of a voluntary winding-up, shall be void.

Business Post reports that Greif Nigeria, which uses the ticker Vanleer on the NGX trading platform, has shares outstanding of 42.640 million units and a market capitalisation of N232.4 million as it last traded at N5.45 per unit.

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