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Naira Slump: Manufacturers’ Raw Material Imports Hit N8 Trillion

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Naira Slump: Manufacturers’ Raw Material Imports Hit N8 Trillion

Naira Slump: Manufacturers’ Raw Material Imports Hit N8 Trillion

 

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According to manufacturers, the high raw materials imports bill is due to operators’ decision to source foreign exchange from the parallel market at high rates following the shortage of FX at the official market.

 

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An analysis of the foreign trade reports of the National Bureau of Statistics also showed Nigeria was only able to export raw materials worth N1.77tn during the period, leaving a balance of trade deficit of 6.1tn.

 

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A breakdown of the data showed that in the second quarter of 2020, manufacturers imported raw materials worth N570.6bn. The figure increased to N710.2bn in the third quarter of the same year before increasing further to N715.7bn in Q4.

Naira Slump: Manufacturers’ Raw Material Imports Hit N8 Trillion

 

Further breakdown of the data showed that in 2021, raw materials imports by manufacturers were N2.9tn. It slowed to N2.4tn in 2022, while N555.4bn worth of raw materials were imported in the first quarter of 2023.

 

The major raw materials imported during this time included cane sugar from Brazil, milk preparations from Ireland, mixtures of odiferous substances from Ireland and Swaziland, and lubricating oils from The Netherlands.

 

According to the Manufacturers Association of Nigeria’s Bi-Annual economic report, the manufacturing sector’s local raw materials sourcing averaged 52.8 percent as against 51.5 percent recorded in 2021.

 

 

 

MAN said the increase in local raw materials utilization was due to increased difficulty in sourcing forex, which compelled manufacturers to look more inward for raw materials notwithstanding the associated huge cost.

 

 

 

The report partly read, “It is therefore important for the government to re-evaluate its role in local development and production of raw materials in terms of funding.

 

 

“For instance, the development and production of Active Pharmaceutical Ingredients has continuously eluded due to limited funding of the Raw Materials Research and Development Council by the Government.

 

 

“The absence of local production of APIs has been having dire consequences on pharmaceutical production, particularly in the current situation of acute shortage of forex.”

Motorcycle ban hits traders, imports crash by 36%
Speaking exclusively with The PUNCH, The Director-General of MAN, Segun Ajayi-Kadir, said addressing the forex volatility was vital to manufacturing production.

 

 

 

According to him, the forex shortage being faced by manufacturers translates to high cost of imported inputs and by extension high cost of production.

This, he said, would result in higher prices of goods.

 

 

He said, “But the reality is that the government lacks the needed forex to cover the demand in the economy, including that of the sector. Crude oil proceeds are the major source of forex inflow into the country, and Nigeria has not even been able to meet the OPEC export quota for the country.

“The situation is that the government has limited forex available for the economy and the recent floating of the rate of exchange has complicated the supply side constraints.

In his recommendation, Ajayi-Kadir urged the government to prescribe a definite rate for calculating the import duty for production inputs, such as raw materials, machines and spares that are not available locally.

A former president of MAN, Mansur Ahmed, while speaking at the Annual General Meeting of the Cross River/Akwa Ibom State branch of the association, had said that manufacturers could only source 5 per cent of their forex needs from the banks.

On his part, the Deputy President of the Lagos Chamber of Commerce and Industry, Gabriel Idahosa, cited the failure of Nigeria’s import substitution strategy as the reason for the country’s over-reliant on imported raw materials.

 

 

He added that the importation of raw materials for production purposes would not be particularly injurious to the local economy if Nigeria was able to equally export raw materials to other countries to make up for the forex spent on imports.

 

He said, “A lot of the companies are just involved in importing their raw materials. In some areas, we cannot do backward integration because we do not have the raw materials or the technology to do it.

 

 

“If you are manufacturing a car in Nigeria, you cannot backward integrate to start building engines or even producing tires. You more or less still import most of the components and just put them together.”

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TY BURATAI HUMANITY CARE FOUNDATION CALLS FOR EXPULSION OF A CHINESE FAMILY OWNERS OF A SUPERMARKET THAT SEGREGATES NIGERIANS

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TY BURATAI HUMANITY CARE FOUNDATION CALLS FOR EXPULSION OF A CHINESE FAMILY OWNERS OF A SUPERMARKET THAT SEGREGATES NIGERIANS

 

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In a bold statement released by the TY Buratai Humanity Care Foundation, a call has been made for the expulsion of the Chinese family owners of a supermarket in Abuja, Nigeria, who deny Nigerians access to shop. The foundation, led by it’s Chairman Amb Ibrahim Dahiru Danfulani Sadaukin Garkuwan Keffi and Betara of Biu, expressed deep concern over the discriminatory practices of the supermarket, which only allows Chinese citizens to enter and purchase goods while barring Nigerians from doing the same.

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The Grand Patron of the Foundation, His Excellency Ambassador Lt Gen Tukur Yusufu Buratai (Rtd) CFR, former Chief of Army Staff, condemned the discriminatory actions of the supermarket owners, likening it to racism. He emphasized that no foreign citizen should be denied his rights in Nigeria as long as he or she abides by the country’s laws. Gen Buratai questioned the audacity of foreigners dictating terms to bona-fide citizens on how to live or stay in their own country.

Gen Buratai further criticized the discriminatory policies of the supermarket owners, stating that there is no valid reason for a company in Nigeria to refuse to sell to Nigerians. He labeled the actions of the Chinese family-owned establishment as a clear case of racism and called for decisive action by the federal government against any individuals, foreign or Nigerian, who flout the rules and regulations of the nation.

The TY Buratai Humanity Care Foundation’s stance on the issue serves as a strong message against segregation and open hatred towards Nigerians. The foundation urges the government to address such discriminatory practices swiftly and firmly to uphold the rights and dignity of all citizens in Nigeria and even abroad.

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$87m Theft: Abayomi Remanded in Suleja Until Bail Perfection As Court Adjourns Till 14th (Video)

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$87m Theft: Investors of Afriq Arbitrage System Boos,Jeer At Abayomi, Remanded in Suleja Until Bail Perfection As Court Adjourns Till 14th

$87m Theft: Investors of Afriq Arbitrage System Boos,Jeer At Abayomi, Remanded in Suleja Until Bail Perfection As Court Adjourns Till 14th ( Video)

 

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The arraignment of Abayomi Oluwasesan over the lingering theft saga to the tune of $87m commenced today with the review of his bail conditions.

Abayomi Segun Oluwasesan who allegedly committed the heinous crime of defrauding the leading global crypto space known as Afriq Arbitrage System was arraigned alongside his wife at the FCT High court, Jabi in Abuja.

Earlier, the defendants’ lawyer appealed for leniency on the stringent bail condition on behalf of Abayomi OluwaSesan citing their prolonged detention and promising their availability for trial if granted bail. However, the complainant lawyer, Sidi Abdulrasheed, opposed the bail request, highlighting previous instances where the defendants had allegedly fled after being granted bail.

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Responding to the bail review, the presiding judge, Ms. Idris insisted the earlier bail conditions remain valid with little modification. It would be recalled that the conditions initially given included provision of two sureties each with 500 million Naira, owning property in Maitama, and also two directors in the federal civil service. Additionally, the sureties must deposit the title documents of their properties in court. However, in his ruling today, he said the sureties should be owners of properties anywhere within the FCT and worth 400 million naira and above. He also reiterated that the two directors should be serving directors and the properties be valued by a licensed estate valuer registered with the federal government.

Thereafter, he adjourned the proceedings till 14th ,15th and 16th of May 2024 for speedy trials.

 

Speaking to Jesam Micheal, the CEO of Afriq Arbitrage System (AAS) after the court proceedings, he clarified the wrong narratives about the case. He said the appearance of Abayomi in court has justified the truth that he defrauded the company to the tune of $87m and that he has confessed to his crime. He narrated how Abayomi who was entrusted with the platform while he went for liver transplant tempered with the systems and defrauded the community of the staggering sum of $87m. He stated that all he is after is for him to refund the stolen funds.

Also, the complainant’s counsel, Barrister Obeten revealed that justice will be served at the court as the suspect has allegedly admitted to committing the crime.

 

Meanwhile, there was mild drama in court as thousands of investors stormed the court today, booed and jeered at Abayomi and his wife. Their anger was not unconnected to the fact that his actions gravely affected them and their means of livelihood.

 

 

It would be recalled that Abayomi and his wife were tracked to an estate in Lagos and brought back to Abuja on Sunday, March 24th, 2024 over the lingering financial scam to the tune of 87 million dollar and criminal activities he perpetrated against AAS and the CEO, Jesam Micheal.

 

 

The arraignment of Abayomi by the IG of police at the Federal High Court in Abuja witnessed a significant development on Thursday, March 28th, 2024, as the case involving the alleged theft of 87 million dollar by Abayomi OluwaSesan charged by the Inspector General of Police, Kayode Egbetokun, proceeded with significant deliberations.

 

 

The accused individuals were charged for purportedly accessing millions of subscribers’ investments at the Afriq Arbitrage Company’s online trading platform until October 9th, 2023.

 

$87m Theft: Investors of Afriq Arbitrage System Boos,Jeer At Abayomi, Remanded in Suleja Until Bail Perfection As Court Adjourns Till 14th

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Wema Bank Celebrates Remarkable Journey of 79 years

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Wema Bank Celebrates Remarkable Journey of 79 years

 

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In a remarkable celebration of heritage and innov ation, Wema Bank, Nigeria’s most innovative bank and pioneer of Africa’s first fully digital bank, ALAT today announced a joint celebration marking Wema Bank’s 79th years and ALAT’s 7 years anniversaries. This significant celebration not only commemorates nearly eight decades of exceptional service and innovation in the Nigerian banking sector but also celebrates the bank’s seven years of digital excellence with ALAT.

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Wema Bank Celebrates Remarkable Journey of 79 years

 

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Since its inception in 1945, Wema Bank has been at the forefront of financial innovation, constantly adapting to meet the evolving needs of its customers. Over the decades, the bank has evolved from a regional bank to a national bank, adapting continuously to meet the dynamic needs of its customers and establishing itself as a pillar of trust and reliability for millions of individuals and businesses across Nigeria.

According to the MD/CEO Wema Bank, Mr. Moruf Oseni, the bank’s evolution from being Nigeria’s oldest indigenous bank to being at the forefront of innovation, pioneering Africa’s first fully digital bank, ALAT, has been a true story of resilience and transformation.

“At 79, Wema Bank stand stronger than ever, and this achievement would not have been possible without the support of our customers and employees. We thank them for believing in the Wema vision, for entrusting their financial security to us, and for allowing us to contribute to their personal and professional aspirations. Their faith in us is deeply cherished, and we are honored to serve them.”

“As we mark our 79th year today, we reaffirm our commitment to empowering lives through innovation, and exceeding our customers expectations with unparalleled banking experiences tailored to their needs. Our pledge is to stand by our customers through every stage of life, offering enabling platforms to accelerate their growth and propel them to extraordinary heights.”

“While the past 79 years have been remarkable, we anticipate that the coming decades will be even more inspiring. With the partnership of our customers and employees, Wema Bank is poised to set new standards in financial services and redefine the future.” He concluded.

As part of the anniversary celebrations, Wema Bank and ALAT are rolling out a series of customer-focused activities designed to reward loyalty and enhance the customer experience. Throughout the anniversary month, customers will enjoy various promotions, including discounts on transactions, cash prizes, special loan offers and much more.

This anniversary is more than a celebration; it’s a reaffirmation of Wema Bank’s resilience and ongoing commitment to innovation and customer satisfaction in a competitive industry. Both Wema Bank and ALAT are poised for further growth, with strategic initiatives designed to enhance customer-centric services and expand the reach yearsw capability of digital banking solutions.

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