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Manufactured Goods Imports into Nigeria Drop 5.1%

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Manufactured Goods Imports

By Sodeinde Temidayo David

The value of manufactured goods imports into Nigeria in the second quarter of 2021 depreciated by 5.1 per cent to N4.3 trillion, though it accounted for 61.86 per cent of the total imports of N7.0 trillion in the period under review.

Data analysed by Business Post from the figures released by the National Bureau of Statistics (NBS) last week showed that used vehicles were mainly imported from the United States and Italy worth N33.8 billion and N5.7 billion respectively.

Also, during the quarter, machines for reception, conversion and transmission were imported from China, Sweden and Hong Kong in values worth N118.7 billion, N9.0 billion and 5.2 billion, while motorcycles worth N32.7 billion and N61.8 billion were imported from China and India.

It was further discovered that Herbicides worth N81.2 billion were imported from China, while polypropylene worth N35.8 billion, N15.5 billion and N9.5 billion came into the country from South Africa, Saudi Arabia and South Korea.

Between April and June 2021, the stats office said the value of raw material imported into the country increased by 25.6 per cent compared to Q1 2021 and 47.3 per cent compared to Q2 2020, while imported agricultural products increased by 3.5 per cent on a quarter-on-quarter basis and rose by 56.9 per cent on a year-on-year basis.

In a similar trend, there was a 21.4 per cent increase in the value of solid minerals imports compared to Q1 2021 and 68.3 per cent year-on-year, while other oil products imports rose by 13.3 per cent quarter-on-quarter and year-on-year by 218.5 per cent, with the value of energy goods imports decreasing by 94.6 per cent in Q2, 2021 against the worth recorded in Q1,2021 and 88.7 per cent compared to the corresponding quarter of 2020.

The NBS said the total value of imports in the period under consideration rose year-on-year by 67.5 per cent as the chunk of the country’s trade came from imports, accounting for 57.8 per cent.

On a quarter-on-quarter basis, trade grew by 1.5 per cent, driven further by the opening of the Nigerian borders after the pandemic and as foreign relationships continued to stabilize.

Breaking down the value of imports by the Standard International Trade Classification (SITC), it was revealed that machinery and transport equipment was responsible for the major increase in import value as it accounted for N2.5 trillion or 35.9 per cent of total import trade.

This was followed by chemicals and related products at N1.3 trillion or 18.3 per cent, as well as mineral fuel at N1.1 trillion or 15.98 per cent.

Also, imported food and live animals recorded N951.28 billion or 13.7 per cent, while manufactured goods accounted for N640.5 billion or 9.2 per cent.

In terms of the imports trading partners, the majority of the goods imported during the quarter was from China with a value of N2.1 trillion or 29.9 per cent, followed by India at N570.01 billion or 8.20 per cent, the Netherlands at N557.2billion or 8.02 per cent, and the United States at N526.92 billion or 7.58 per cent.

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Economy

CitiTrust Holdings Sells Commercial Paper for 22%

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Cititrust Financial Services Ikechukwu Peter

By Aduragbemi Omiyale

An opportunity has opened for commercial paper investors as CitiTrust Holdings Plc is offering the asset class at a coupon of 22.0 per cent per annum under its N50 billion commercial paper issuance programme.

According to details of the exercise obtained by Business Post, the company, in the financial services sector, is selling the debt instrument in four tenors of 90 days, 120 days, 180 days and 270 days.

The minimum subscription for prospective and potential investors is N5 million and can be purchased through any of the registered stockbrokers.

The 90-day instrument is going for 16.1 per cent, the 120-day paper is being sold for 17.5 per cent, the 180-day note is 19.1 per cent, and the 270-day instrument is going for 22.0 per cent.

The offer commenced on November 23, 2022, and is expected to close on Wednesday, December 7, 2022, with the net proceeds to be used for the company’s general corporate purposes and working capital.

CitiTrust said investors would be paid their interests from the operating cash flows of the organisation, with purchases to be settled via direct debit, electronic funds transfers, NIBBS Instant Payment (NIP), NIBBS Electronic Funds Transfer (NEFT) or Real-Time Gross Settlement (RTGS).

CitiTrust is a leading pan-African financial and investment conglomerate owned by reputable institutional and private investors. The company has a focus on high-end financial products and services for its targeted sectors of the economy, with operations in commercial banking, investment banking, wealth management, pension management, insurance and alternative investment.

The firm is a foremost financial solutions provider and has been an intricate part of the Nigerian economy since 2007. It has grown and evolved over the years into an award-winning market leader in the financial sub-sector of the Nigerian economy, establishing its footprints in 12 African countries: Nigeria, Ghana, Rwanda, Botswana, Liberia, Benin Republic, Malawi, Kenya, Tanzania, Uganda, Cote d’Ivoire, South Africa and the UK.

In 2019, the organisation upgraded its operations into a reputable financial services provider to align with the strategic vision of its shareholders to build an enduring institution that delivers cross-functional services to its clientele.

The company’s deep knowledge of the market, dexterity, smooth and reliable processes driven largely by technology and the high quality of its personnel puts it on the cutting edge of strategic Importance with its clientele.

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Economy

No Individual Should Operate Domiciliary Account in Nigeria—Tope Fasua

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domiciliary account in Nigeria

By Modupe Gbadeyanka

An economist and former presidential candidate of the Abundant Nigeria Renewal Party (ANRP) in the 2019 general elections, Mr Tope Fasua, has kicked against the opening of a domiciliary account in Nigeria for an individual, calling it an abnormality.

Speaking on a Channels Television’s Saturday breakfast show, he said only corporate organisations involved in international trades should be allowed to operate a dorm account.

As individuals who need foreign exchange to transact any business transaction, they should be given a credit card or prepaid card, which would be loaded with the value of Dollars they require instead of giving them cash.

According to him, this would limit the demand for FX and strengthen the Naira in the forex market segments.

Mr Fasua made these submissions while reacting to the decision of the Central Bank of Nigeria (CBN) to redesign the N200, N500, and N1,000 notes.

“Personal dorm accounts are mostly unnecessary; only companies that are doing international trade transactions or financial market companies should be able to hold dorm accounts because they have a reason to,” the renowned analyst said on the programme monitored by Business Post.

“When I travelled abroad recently, GTBank loaded by card with Dollars, and when I need to spend where I am going, I just use my card,” he added, stressing that, “If you are an exporter, you have export proceeds coming in, you can have a dorm account.

“If you are an importer and you need to pay your customer once in a while, you can have a dorm account as a company, but if every Tom, Dick and Harry can speculate against their own currency, you will never get it out of crises.”

According to him, “The ease at which people move against their currency in this country is too much; it should not be that easy.”

Tope Fasua

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Economy

LIBIZFAIR Will Boost Business Opportunities in Lagos

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business opportunities

By Modupe Gbadeyanka

The Chairman of Nigeria in Diaspora Commission (NiDCOM), Mrs Abike Dabiri-Erewa, has disclosed that the Lagos Island Business Fair (LIBIZFAIR) will improve business opportunities in the state and also attract more investments.

The former federal lawmaker said this at the opening ceremony of the fair organised by the Lagos Island Connect, in conjunction with the Lagos State Ministry of Commerce, Industry and Cooperatives.

At the programme held at the Tafawa Balewa Square (TBS), Onikan, Lagos, Mrs Dabiri-Erewa, represented by the Head of the Lagos Annex of the agency, Mr Oladipo Odebowale, commended the state government for the initiative.

She noted that the platform provides a unique opportunity for entrepreneurs to showcase their businesses, saying, “This will boost investment and business opportunities in the state.”

The Commissioner for Commerce, Industry and Cooperatives, Mrs Lola Akande, in her remarks, described the empowerment of Micro, Small and Medium Enterprises (MSMEs) as critical to the empowerment of youths.

Represented by the Permanent Secretary in the minister, Mrs Adetutu Ososanya, she noted that building the capacity of youth-oriented enterprises, with the goal of providing opportunities for growth, will lead to an increase in prosperity among Lagos Island youths.

“I believe this platform can leverage socio-economic networking and Information Communication & Technology to provide more interactive opportunities for the teeming youth of Lagos Island and its environs from diverse cultural, religious, social and educational backgrounds to grow their businesses and services, as well as the State’s economy,” she said.

The Commissioner explained that the fair aligns with the policy of Governor Babajide Sanwo-Olu of creating a conducive environment for businesses to thrive, widening access to the market and encouraging networking and collaboration among entrepreneurs.

Also speaking at the event, the Special Adviser to the governor on Sustainable Development Goals & Investment (SDG&I), Mrs Solape Hammond, stressed that the programme was geared towards supporting businesses to thrive at the local government level.

“The study discovered that the youths of Lagos Island are versatile, technologically enabled, driven and willing to be positively engaged, particularly in personal and communal development.

“Though most of them are faced with different challenges yet, there is an enormous zeal to be gainfully engaged rather than being idle, which could contribute to community nuisance.

“Young people in Lagos Island have a brighter vision for the future, and all stakeholders must join together to support them to deliver it,” the governor’s aide said in her presentation on the Lagos Island Youth Needs Assessment Survey.

The co-founder of the Lagos Island Connect, Mrs Yemisi Ransome-Kuti, while addressing participants, noted that the LIBIZFAIR 2022 was geared towards taking businesses in Lagos Island from a local to a global level by investing in the youths and preventing their massive migration to foreign lands.

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