The Manufacturers Association of Nigeria (MAN) has described the proposed 40 percent hike in electricity tariff scheduled to take effect from July 1, 2023, as “simply outrageous.”

The MAN also highlighted that the federal government had increased electricity tariff by 186 percent in the past eight years, adding that the “expectation of the manufacturers is that government and the Nigerian Electricity Regulatory Commission (NERC) will ensure improvement in electricity generation, transmission and distribution that will lead to adequate and reliable electricity supply in the country, rather than increasing the tariff on the mere 4000MW, to meet all revenue needs of stakeholders in the electricity supply industry.”

The manufacturers expressed these views yesterday in a press statement titled, “Possible Impact of Impending Electricity Tariff Hike on Manufacturers.”
The manufacturers stated that the proposed increase in tariff would lead to rise in cost of production, reduction in manufacturers’ profit margin, high probability of activities paralysis and potential reduction in government’s collectible revenue.

The association further noted that implementation of the proposed tariff would complicate the inflationary pressure on the economy, accelerate the recession in the manufacturing sector, hurt the competitiveness of Nigerian manufacturers and heighten the probability of manufacturing firms relocating their plants from Nigeria to other countries.

According to the Director General of MAN, Mr. Segun Ajayi-Kadir, who signed the press statement, “it is highly concerning for manufacturers to witness the electricity tariff skyrocketing beyond the present embattling high prices, starting July 1st. A 40 percent hike at this time is simply outrageous.”
Ajayi-Kadir further noted that the absence of stable, effective and fairly priced electricity supply in Nigeria has been a long-standing challenge for manufacturers.
He said: “The worrisome development has compelled many manufacturing industries to supplement the unreliable electricity supply with alternative energy sources. Regrettably, the available alternative energy sources such as diesel have become exorbitantly expensive.
“On average, surveyed data by MAN suggested that manufacturers spent at least N144.5 billion on sourcing alternative energy in 2022, up from N77.22 billion in 2021.

“This translates to about 87 percent increase in the cost of access to alternative energy sources by manufacturers within a year.
“In the past eight years, electricity tariff has been increased by 186 percent. The fact that the government itself owes N75 billion in unpaid electricity bills is indicative of how burdensome the cost of electricity has become.”

The MAN argued strongly that as a matter of fact, any further rise in electricity tariff will directly increase the cost of production for manufacturers.
“Already, we have energy constituting between 28 and 40 percent in the cost structure of manufacturing industries. You can imagine the impact on manufacturing industries that are energy-intensive such as metal processing, heavy machinery, and chemicals manufacturing.”
The Association added that “a spike in the electricity tariff will erode the profit margin of the manufacturers and reduce their ability to expand operations and create new jobs.”

It also feared that reduction in profit margins would be “a definite possibility among small and medium-sized enterprises (SMEs) who are unable to accommodate the higher price.”
MAN states further: “The hike in electricity tariff will reduce the manufacturers’ profitability and by extension the quantum of taxes and fees payable to the three tiers of government.
“Manufacturers remain the largest income taxpayers in the country. Therefore, in the event of poor income generation due to high costs of production, the government purse will suffer.

“In addition, the manufacturers would ultimately pass on the additional cost to the consumers of their products, which will increase the cost of locally made products in the market and complicate the rising inflation rate in the country.
“An increase in electricity tariff will reduce the purchasing capability. One of the resulting effects is the fall in demand and recession of manufacturing activities over time.”

The association also envisaged a high probability of outward investment as “some manufacturing industries may consider shifting production to other economies with lower electricity tariffs and guaranteed availability.”
Ajayi-Kadir adds: “As it is today, the manufacturing sector, which is the engine of growth, is still struggling as a result of the inclement production environment in Nigeria.

“The expectation is that the government will engage in extensive and intensive consultations with the manufacturers; focus on measures that will salvage the sector and halt the trend of shutdown of factories, knowing the implications and the multiplier effects on employment and the economy.
“Care should be taken to avoid introducing burdensome measures that will further strangulate the manufacturing sector and the whole economy.”

The director general of MAN stated further that the government should ensure that at least 90 percent of electricity consumers are metered to ensure consumption reflective electricity bill payment.
He also advised the government to formulate electricity policies that will aid investment in the energy industry to increase generation capacities and ensure effective implementation of the Electricity Act 2023 aimed at increasing electricity supply in the country.

[ThisDay]

The Society for Pharmaceutical Sales and Marketing of Nigeria says ensuring standards and professionalism in sales and marketing in the pharmaceutical sector will contribute to the advancement of the sector and promote the ethical use of drugs by patients.

Speaking at the induction and investiture of fellows of the society in Lagos recently, the president of the society, Tunde Oyeniran, a pharmacist, said recognising the importance of training, ethics and integrity in the sales and marketing of drugs would make a significant impact on the health and well-being of the nation.

He stated, “We are a professional association and that predisposes that there is a minimum level of behaviour, a minimum body of knowledge and a minimum way of doing things, and that is what we are trying to do.

“Before now, that didn’t exist in the pharmaceutical industry. What happens in pharmaceutical sales and marketing is that it is an all-comers affair without any form of standardisation of behaviour, ethics and the way they do things.

“So, what we are trying to do is to bring together everybody involved in sales and marketing whether you are a pharmacist or not. Through this platform, we aim to address common challenges, explore opportunities and promote the highest standards of professionalism and practice in pharmaceutical sales and marketing.”

He said the society recognised the contributions of sales and marketing professionals in driving the success of the pharmaceutical industry, adding that unethical practices would not be tolerated.

[Punch]

  • SEC says it is a law-abiding agency that has duly audited its financial accounts year after year before and onward from 2014
  • Statements submitted to Federal Ministry of Finance, Budget and National Planning; Office of the Auditor General of the Federation; Fiscal Responsibility Commission
  • They add proper dissemination of factual information is critical to the growth and development of the capital market

Nigeria’s Securities and Exchange Commission (the Commission), denied media reports claiming it has not audited its financial statements since 2014.

In a statement released on Friday signed by its management, the SEC revealed it is a strong promoter of world-class corporate governance standards, and hereby restates its commitment to upholding such ideals.

False Claims

SEC stated that its attention had been drawn to some reports in the electronic and print media, insinuating that the Commission had not audited its financial statements since 2014, adding:

  • “ Contrary to these false claims, the Commission as a law-abiding agency has duly audited its financial accounts year after year before and onward from 2014 and has submitted these to the relevant agencies statutorily empowered by the Federal Government to receive same.

The said agencies they have submitted statements to are the Federal Ministry of Finance, Budget and National Planning; Office of the Auditor General of the Federation; Fiscal Responsibility Commission; Office of the Accountant General of the Federation, as well as the appropriate committees of the National Assembly.

SEC also noted that it is a strong promoter of world-class corporate governance standards, hereby restates its commitment to upholding such ideals and strongly advises persons with requests for information to channel such to the Commission via email to This email address is being protected from spambots. You need JavaScript enabled to view it., to which the Commission would respond accordingly.

  • “The dissemination of factual information is critical to complement the efforts of the Federal Government for the growth and development of the capital market and Nigeria’s economy.

SEC in the news

Nairametrics reported recently that the Securities and Exchange Commission (SEC) said that it is collaborating with the Standards Organization of Nigeria (SON) to develop standards for commodities.

Director General of the SEC, Mr. Lamido Yuguda added that Nigeria has various commodities that could be exported in a bid to grow the economy, provide jobs for Nigerians as well as provide the nation with forex.

Yuguda said that the agricultural sector in the country is expected to grow significantly soon.

  • ‘’In its desire to ensure that agricultural produce is of exportable standards and quality, the Commission is collaborating with the Standards Organization of Nigeria to develop standards for commodities”, he said.

Developed standards being exposed to different markets

He also disclosed that because of the collaboration with SON, some of the standards have been developed and exposed to different markets close by and they have been received very well.

The DG said that the development of these standards will pave the way for the export of these products to the international market and in turn, boost the Nigerian economy.

He said that the Commission is pleased about the new government’s mention of supporting the commodities sector as it will further boost the SEC’s efforts at developing the Commodities sector.

[Nairametrics]

To satisfy politicians, as well as use experts to drive development

 

President Bola Tinubu has plotted a strategy of managing the political interest groups that helped him achieve his life ambition of becoming president but not without compromising his aspiration of ushering Nigeria into a new era of development.

Tinubu who is widely hailed rightly or wrongly as the founder of the modern Lagos according to sources is determined to etch his name in history by leading Nigeria towards a new era of development using some of the best brains in the country.

Tinubu who also has a reputation as one of the country’s most accomplished political godfathers has plotted a twin strategy of “giving to politicians what belongs to them and giving to develop what is required” a highly placed presidency source revealed.

In that direction, it was gathered that Tinubu hopes to build on his well-known knack for tapping brains to fetch Nigerians within and outside the country to help drive his aspiration. While doing that the president would not disappoint his political base by giving them jobs that would not ordinarily distract from the core objectives of governance.

“The president will satisfy the political base and I can assure you they will be happy, but the key facilitators of governance and development will be some key advisers who the president will keep close to him to drive his key developmental goals.

“It is a twin strategy that will leave everyone happy,” the source revealed.

It was gathered that it was part of that reason for satisfying the political base that the president dissolved the boards of government parastatals and agencies just before he travelled to Paris, France.

Saturday Vanguard reports that the dissolution is expected to open up at least 2,000 job openings that will immediately satisfy the needs of the political base although there are indications that he may collapse some agencies. Besides, there are pressures on the president to also recall ambassadors appointed by the immediate past Muhammadu Buhari administration.


Saturday Vanguard reports that a desperate scheme by some of the diplomats to sustain themselves until next year when most of them are due has already commenced.

However, the pressure on the new administration to appoint trusted allies for such strategic diplomatic posts in Paris, London and Washington D.C. is being considered especially given the importance of those posts.

Meanwhile, serious lobbying for boards and ministerial positions is ongoing in several states with loyalty to Tinubu or otherwise being canvassed by several interest groups.

The best-graduating student for the 2021/2022 set in Lagos State University (LASU), Aminat Yusuf, says she settled for garri and groundnuts for a larger part of her undergraduate days.

Yusuf said the right mentoring by lecturers, hard work, and God’s guidance were major factors for her success.

Yusuf, an Edo indigene, finished with a Cumulative Grade Point Average (CGPA) of 5.00 (First Class Honours).

She said the factors helped her to be the best-graduating student of her set and in LASU’s 40 years of existence.

Yusuf said the financial situation of her parents, coupled with the fact that she is the first child put a lot of burden on her. “I called for financial support only under compelling circumstances, after I have exhausted all options.

“As a result, I experienced some serious financial constraints during my two plus four years stay at LASU.

“In 200 Level, second semester, just because I needed to get a browsing phone and get trained in computer skills, I saved up about 90 per cent of my feeding allowance.

“For the most part of my days as an undergraduate, I lived in the university premises, because I had no hostel, and going home every day would have been absolutely inconvenient

“The school had a stand-by security and standard lighting system, so, it was safe for me; my major challenge was having to attend lectures every day in a neatly ironed white and black dress, acting like everything was perfect,” Yusuf told NAN on Wednesday.

Speaking on her first day in LASU for the physical screening, towards admission into a diploma in law programme, the best-graduating student said: “I remember fantasising about achieving a remarkable feat in this prestigious university.


“I first did Diploma in Law programme, which runs for two years, in which students are taught compulsory law courses, with a view to offering direct entry admission to top class students.

“I studied really hard and prayed so fervently towards achieving excellence; I graduated from the programme with a CGPA of 4.98 and this was the best in my set.

“The possibility of graduating with such a grade motivated the yearning to graduate with a perfect CGPA at the undergraduate level.”

She called on well-meaning Nigerians to invest in the education sector and lauded the passing into law of the Student Loan Act in the country.

She added: “I believe this will no doubt be of immeasurable value to our education system.

“While I struggled financially through my education, I don’t desire such hardship for students coming behind us, especially the female students.”

Yusuf, however, appreciated the LASU management for sustaining the congenial and conducive environment that contributed to her excellent performance.

She said: “I am deeply grateful to my parents for their sacrifice, unwavering support towards my education.

“My parents really motivated me from their different careers; my father is a journalist while my mother is a businesswoman.

“Thanks to my faculty lecturers for their reflex of excellence, commitment and dedication in teaching us to be the best.

“I will like to use this opportunity to launch a YouTube channel tagged, ‘Learning Law with Aminat’, with a goal of giving back to society through my immediate community.”

Former militant leader and a chieftain of the All Progressives Congress (APC), Ebikabowei Victor-Ben popularly known as Boyloaf, has promised to support Mallam Nuhu Ribadu as the National Security Adviser (NSA) to end oil theft in the Niger Delta region.


He said Ribadu’s appointment will help the federal government in addressing the security challenges in Nigeria.


The ex-militants’ leader, who commended President Bola Tinubu over the appointment of Ribadu, said the new NSA will help revamp the security architecture of the nation.


Victor-Ben, who was the Secretary of the Special Duties Committee, South-South for the Tinubu – Shettima Presidential Campaign Council, described Tinubu as a visionary leader for choosing Ribadu as NSA, having witnessed his capacity during his days as the chairman of the Economic and Financial Crimes Commission (EFCC).

President Bola Ahmed Tinubu has assured that palliatives to cushion the effect of fuel subsidy removal were being worked out.

He spoke during an interactive session with Nigerians resident in France and neighbouring European countries on the sidelines of the New Global Financing Pact Summit in the French capital, Paris.


The President in his inaugural speech said the subsidy era was gone because there was no budgetary allocation for it.

On how he convinced Organised Labour to shelve the planned protest over removal of subsidy, he said: “You want money increase in palliative, transportation what are you protesting about? Are you sharing part of the subsidy? if you protest, I will join you and protest and they stopped. No protest.

“Palliative we will get but we have to save the money in order to embark on palliatives,” he said.

Following a downpour in the Federal Capital Territory on Friday, no fewer than 116 buildings have been submerged by flood in the affected areas.

Residents of Trademore Estate along the Lugbe-Airport axis lamented their losses as the floods left a trail of destruction in its wake.

What began as light showers around 8am turned into a relentless downpour, catching residents off guard.

The sudden deluge of water overwhelmed the drainage systems, which were ill-equipped to handle such a volume of water, leading to a rapid rise in floodwaters that engulfed the entrance of the estate.

One of the victims, who spoke to our correspondent on condition of anonymity, said he narrowly escaped being carried away by the waves, adding that his car and a batch of bread meant for delivery that morning, could not be salvaged.

“Thank God I can swim. I nearly drowned. There was also someone in front of me who was struggling but I do not know what happened to him. It was after I got to that point that people were able to help me,” he added.

Some residents, however, blamed the government for the perennial flooding in the area.


A resident, Segun Akin, said, “I am a major stakeholder here. I have been here for 10 to 11 years. The volume of water that came into Trademore five years ago is not the same volume that is coming into Trademore this year. We tried to talk to the government about looking at the volume of water that comes into Trademore from the Galadimawa axis. My house is just at the back of the canal. I have never seen such a volume of water before coming into Trademore. As long as that water from the Galadimawa axis is not controlled, there is no way it can be contained here.’’

Responding to the allegation, the Director General of the Federal Emergency Management Agency, Dr Abass Idriss, said the government should instead be blamed for not clearing and demolishing the estate earlier, adding that the entire estate sat on a waterway.

Meanwhile, FEMA, in a statement signed by its Head of Public Affairs, Nkechi Isa, said no life was lost to the flood.

Isa, however, said a total of 116 houses were submerged.

The statement also dismissed reports on social media that a resident on the estate went missing in the floods.

Barely one week to Sallah, ram sellers at the Kara end of the Lagos-Ibadan Expressway on Friday lamented low sales, blaming the low patronage on the prevailing economic situation and the sudden increase in the cost of transporting the animals from the northern part of the country.

Similarly, some buyers told our correspondents that ram prices had gone up, lamenting that it might deny them the privilege of killing rams for the celebration.

Our correspondents spoke with some of them at the popular Kara market along the Lagos-Ibadan Expressway in the Obafemi-Owode Local Government Area of Ogun State, where many Muslim faithful lamented that as the festive day drew near, the possibility of them getting rams to kill was becoming slimmer.

A seller, Abdulrazaq Ibrahim said, “I get my rams from Adamawa State. Last year, I transported them with N600,000 but this year it is N1.6m. That is why the one of N90,000 last year has increased to N170,000 this year. The amount we spend bringing these rams here from the North is the reason they are so expensive this year and not many people can afford them.”

Another seller, Awwal Abdullahi, said, “I do not believe the removal of subsidy led to this increment. I sold over 1,500 rams to top government officials last year, but this year I have been selling two or three per day which I’m not happy with.

“I get my ram from Yobe State and I pay N500 on each ram for carrying them but it has increased to N950 this year. The size of the rams also is a factor. Last year, I carried them for N1m but this year it has increased to N1.8m. The least of my ram is N300,000.”

For Kunle Moshood, he said the high cost of fuel affected the business as transporters demanded more per ram.


He added, “Payment for transportation per ram last year was cheaper but this year is higher. The increment amounted to pay N1.5m compared to the N800, 000 we paid last year. I have not calculated the increase in price tags of their feeds such as: Soya beans, Kowa and Jusa which are exorbitant.”

The sellers said the increase in the price was responsible for the low sales.

Meanwhile, buyers lamented the increase cost of the rams.

One of the buyers, who preferred to be called Oluwagbenga for personal reasons, stated that the prices of rams were currently twice the amount they were sold last year.

He said, “It’s surprising that last year I bought two rams and each cost N80,000. Today, I came to the market to buy just one as I have heard the outrageous prices of ram. On getting to Kara, it has really increased as the seller told me he could only sell what I bought for N80,000 last year for N300,000 after haggling from N350,000.”

He added that the spike in the prices was as a result of the removal of fuel subsidy by the President Bola Tinubu which had also worsened inflation.

“I don’t believe the subsidy has affected the prices, is it a ram subsidy? Even if it’s getting high it shouldn’t be more than N100,000,” he added.


Another buyer, Sade Adelowo, corroborated Oluwagbenga’s position, saying, “I came from Ikotun and I encountered gridlocks. On getting here, I was shocked to hear the prices of rams. Surprisingly, the size of ram I bought for N60,000 last year, I begged to get it for N100,000 this year.”

Many of the buyers and sellers called on the Federal Government to quickly look into the hardship caused by the fuel subsidy removal.

Last modified on Saturday, 24 June 2023 04:02

President Bola Ahmed Tinubu has assured that palliatives to cushion the effect of fuel subsidy removal were being worked out.

He spoke during an interactive session with Nigerians resident in France and neighbouring European countries on the sidelines of the New Global Financing Pact Summit in the French capital, Paris.


The President in his inaugural speech said the subsidy era was gone because there was no budgetary allocation for it.


On how he convinced Organised Labour to shelve the planned protest over removal of subsidy, he said: “You want money increase in palliative, transportation what are you protesting about? Are you sharing part of the subsidy? if you protest, I will join you and protest and they stopped. No protest.


“Palliative we will get but we have to save the money in order to embark on palliatives,” he said.

Details Shortly…