₦airaland Forum

Just tell us you are looking for investors in your haulage business.

Inventories of finished goods in Nigeria’s manufacturing sector have been declining significantly in the last 12 months, showing that locally-made goods are doing better in local and international markets.

Inventories of finished goods refer to stocks of manufactured products that are ready for sale.

Manufacturers were able to lower inventories sharply due to significant and continued growth of the country’s middle class, as well as by aggressive local and international marketing and improved technologies that ultimately reflected positively on the shape and packaging of many products, according to Manufacturers Association of Nigeria (MAN).

In spite of the improvements in the sector, manufacturers say there should be easy access to finance, elimination of multiplicity of taxes and levies, development of local raw materials and improvement of the power sector by new electricity managers.

Inventories of finished goods fell from N33.17 billion in the second half of 2012 (H2 2012) to N21.8 billion in the first half of 2013 (H1 2013), declining further to N17.34 billion in the last half of 2013 (H2 2013). These figures represent a 47.7-percent fall between H2 2012 and H2 2013, and 20.27 percent fall between H1 2013 and H2 2013, data from MAN shows.

“In the last one year, manufacturers have been able to lower the quantum of unsold finished goods in their warehouses,” says MAN.

The technological innovations were possible due to massive investments in machines and technologies which stood at N1.434 billion by H2 2013.

The food, beverage and tobacco industry lowered inventory considerably from N10.11 billion in H2 2012 to N1.02 billion in H1 2013 and N389.5 million in H2 2013. Similarly, the textile, apparel and footwear sub-sector had its inventory decrease to N418 million in H1 2013, and further to N401.32 million in H2 2013, from N1.59 billion reported earlier in H2 2012, data from MAN shows.

Furthermore, the wood and wood products sub-sector saw its stock decline to N67.5 million in H1 2013 and N25 million in H2 2013, from N965 million posted in H2 2012. Similarly, pulp, paper and publishing players reduced inventory to N40 million by H2 2013 as against N1.54 billion posted in H1 2013. This, however, represents accumulation of inventory because stock of finished goods in H2 2012 was worth N1.13 billion.

The chemical and pharmaceutical industry reduced inventory to N195.75 million in H1 2013 as against N2.83 billion recorded in H2 2012. But this sector’s inventory accumulated significantly in H2 2013, reaching N1.16 billion.

Also, the non-metallic products sector’s inventory, which had risen from N801.76 million in H2 2012 to N9.48 billion in H1 2013, fell to N890.23 million in H2 2013.

The domestic/industrial plastic and rubber industry showed remarkable progress within the period, falling from N4.54 billion in H2 2012 to N1.12 billion in H1 2013, and then to N447.70 million in H2 2013.

BusinessDay findings show that another key reason why inventory fell within the period was that Nigerian manufacturers consistently looked outwards to markets across Africa, Europe and the Americas. Firms like PZ Cussons, Nestle, Unilever, Flour Mills of Nigeria, Everest Metal, Dangote Group, among others, were at the forefront of this adventure.

Deepak Singhal, CEO, Dufil Prima Foods, said the company’s exports to the West African, the Americas and other markets in 2013 were worth $50 million.

“We process crumb rubber and export nearly 100 percent of it to Bridgestone Tyre Company, one of the largest tyre companies in the world, with offices in Spain, Japan, Italy, Poland and a number of other countries,” said Ede Dafinone, CEO, Sapele Integrated Industries Limited, in an exclusive interview with BusinessDay.

But manufacturers say apart from poor access to finance resulting from high lending rates, inadequate infrastructure and multiplicity of taxes, the biggest challenge remains poor power supply to industrial areas within the period under review.

“We are an economy of traders, not manufacturers, a nation of importers of finished goods. When will the power sector come to our aid, the manufacturers?” queried Babatunde Odunayo, immediate past CEO, Honeywell Flour Mills plc, and currently chairman of MAN, Apapa branch, at a luncheon in Lagos last Thursday.

ODINAKA ANUDU

http://businessdayonline.com/2014/08/inventories-fall-48-as-made-in-nigeria-goods-gain-traction

OP, please give us the local debt breakdown too.

kingk: He want to know if this is true......and what's the situation over there.

I hope its true.

What's the OP's complain.

EasternLeopard: Ok

Now I understand

The military should mix it up with gas being flared in the creeks

shizzleStar: u dey mind them haters?

Just unbelievable, the level of hate, some have for this man.

See the man giving them high blood pressure. Na laugh him just laugh. GEJ till 2019. Oya, make una kill unaselves

THE greatest threat facing the nation’s war against the Boko Haram and other Islamist insurgents has to do with the unprecedented acts of sabotage that the national assignment is facing. Never at any other time in the history of Nigeria had the army been so bedeviled by internal and external undermining of efforts to rid the country of terrorists and other enemies of her unity and progress.
The sabotage comes in so many forms. s.It is both within and outside the confines of the armed forces. According to media reports, some military officers with sympathy for the cause of the insurgents sometimes reportedly divulge critical information about the plans of the military to undertake campaigns or even funnel military equipment to their partisans in the enemy camp. This, we learnt, has led to the unceremonious cancellation of such campaigns to avoid putting officers and men in danger of running into ambushe
One of the greatest forms of the sabotage is misinformation. Many sympathisers of Boko Haram are very eager to approach, mainly, the foreign media to say uncomplimentary things about our armed forces . They create an impression of Boko Haram as an invincible force and Sambisa, their chosen camp, as an impregnable fortress. It is this misinformation and the subsequent avoidable losses in men and military material that give rise to the tales of real or imagined “mutinies” and protests among our men under arms.
The military high command, as well as their supervisory political authorities, must take firm steps to discourage acts of sabotage against our men and women confronting the terrorists. We are fully in support of the assurance by the Chief of Army Staff, Lt General Kenneth Minimah, that the army will henceforth go tough on saboteurs and visit them with the strictest dictates of the law when nabbed and convicted of the crime.
We are also gratified to note that army is on the verge of taking delivery of sophisticated equipment. It will surely boost morale among the troops and spur them to greater effort to flush the terrorists out of Nigeria.
We call on the mass media to redouble their efforts and throw their full support for the armed forces. More efforts should be made to de-emphasise the dissemination of sensational and unsubstantiated information because we may be unwittingly playing into the hands of the terrorists. It is important for media houses to take a closer hold of their online editions and minimise their use by the terrorists and their supporters to achieve their evil purposes.
The war on terror is not for the army, security agencies or the federal government alone. It is a collective effort. We must report suspected saboteurs to the appropriate authorities and keep our communities safe.

- See more at: http://www.vanguardngr.com/2014/08/going-tough-saboteurs/#sthash.2n15VuzI.dpuf

noblezone: Its a "lie" o,

Nigeria soldiers are "defecting" to Cameroun!

Boko Haram and BBC and Al Jazera, and Press TV and CNN are the ones telling the "truth"!

Any Nigeria who dares to accept the version from the Nigeria army and government are "paid agents" of the government!

I hope the above has made me a "progressive"?

That's all she wrote God bless the Nigerian armed forces.

vicadex07: But it was then major source...just like oil is the major source presently

Capital No. Groundnut was the major source of income for Northerners, Cocoa, Rubber, Timber and Palm oil for the Western region and Palm oil, Rubber, also some cocoa for the Eastern region. The Nigeria of 1960-1966 was run on 50% derivation, there were no free loaders.

History of the Nigerian Petroleum Industry
Oil was discovered in Nigeria in 1956 at Oloibiri in the Niger Delta after half a century of exploration. The discovery was made by Shell-BP, at the time the sole concessionaire. Nigeria joined the ranks of oil producers in 1958 when its first oil field came on stream producing 5,100 bpd. After 1960, exploration rights in onshore and offshore areas adjoining the Niger Delta were extended to other foreign companies. In 1965 the EA field was discovered by Shell in shallow water southeast of Warri.

In 1970, the end of the Biafran war coincided with the rise in the world oil price, and Nigeria was able to reap instant riches from its oil production. Nigeria joined the Organisation of Petroleum Exporting Countries (OPEC) in 1971 and established the Nigerian National Petroleum Company (NNPC) in 1977, a state owned and controlled company which is a major player in both the upstream and downstream sectors.

Following the discovery of crude oil by Shell D’Arcy Petroleum, pioneer production began in 1958 from the company’s oil field in Oloibiri in the Eastern Niger Delta. By the late sixties and early seventies, Nigeria had attained a production level of over 2 million barrels of crude oil a day. Although production figures dropped in the eighties due to economic slump, 2004 saw a total rejuvenation of oil production to a record level of 2.5 million barrels per day. Current development strategies are aimed at increasing production to 4million barrels per day by the year 2010.

Petroleum production and export play a dominant role in Nigeria's economy and account for about 90% of her gross earnings. This dominant role has pushed agriculture, the traditional mainstay of the economy, from the early fifties and sixties, to the background.

http://www.nnpcgroup.com/NNPCBusiness/BusinessInformation/OilGasinNigeria/IndustryHistory.aspx

vicadex07: The causes of the Nigerian civil war could be
grouped into economic, political and social.

Economic:
Before the discovery of oil in the east, the nation' revenue had relied heavily on the groundnuts from the north. The then revenue was largely from the north, it was shared equally among all the regions. In addition, the north had political control.
However, oil discovery in the east changed things, due to economic focus shifted to the east. Due to this, the east also demanded for some political influence which the north was greatly against. This was definitely a recipe for war.

When will you people stop manufacturing this lie. At no time in the history of Nigeria, was groundnut from the north the main source of income. Also income, that was tax collected from the export of groundnut was share on 50/50 derivation formula. The same applied to cocoa, palm oil, rubber, hides and skin. The regions kept 50% of the taxes they generated and the center kept 50%.

hansad: Evidence that Nigerian troops are being continually sabotaged by insiders? All your lot want is collect Aso Rock to impose your Islamic Caliphate solution on Nigeria, if not, the records of evidences that Nigeria soldiers are being sabotaged and killed are there all over the media. Search for the records. Do not expect the shoeless Jonathan to do miracles. RELIGION IS OPIUM FOR THE MASSES. For nearly a decade, the US Army trained Iraqi Army and lefft. It took a few days of fighting by your Islamic fighter colleagues to scatter Iraqi Army, because of divided loyalty to religious belief. Instead of blaming the shoeless president over a war your colleagues started before the shoeless man became president, join your part of Nigeria to the impending new Sokoto Caliphate and let others refusing to be part of the caliphate out of Nigeria.

That's not important to them, Aso Rock is their problem/destination, unfortunately as close as Abuja might be, Aso Rock is millions of kilometers away from them.. No amounts of deaths will deter them. I just pity people living in NE Nigeria.

Change is here to stay, no amount of propaganda will the stop this moving train.

THE greatest threat facing the nation’s war against the Boko Haram and other Islamist insurgents has to do with the unprecedented acts of sabotage that the national assignment is facing. Never at any other time in the history of Nigeria had the army been so bedeviled by internal and external undermining of efforts to rid the country of terrorists and other enemies of her unity and progress.
The sabotage comes in so many forms. It is both within and outside the confines of the armed forces. According to media reports, some military officers with sympathy for the cause of the insurgents sometimes reportedly divulge critical information about the plans of the military to undertake campaigns or even funnel military equipment to their partisans in the enemy camp. This, we learnt, has led to the unceremonious cancellation of such campaigns to avoid putting officers and men in danger of running into ambushes.
One of the greatest forms of the sabotage is misinformation. Many sympathisers of Boko Haram are very eager to approach, mainly, the foreign media to say uncomplimentary things about our armed forces . They create an impression of Boko Haram as an invincible force and Sambisa, their chosen camp, as an impregnable fortress. It is this misinformation and the subsequent avoidable losses in men and military material that give rise to the tales of real or imagined “mutinies” and protests among our men under arms.
The military high command, as well as their supervisory political authorities, must take firm steps to discourage acts of sabotage against our men and women confronting the terrorists. We are fully in support of the assurance by the Chief of Army Staff, Lt General Kenneth Minimah, that the army will henceforth go tough on saboteurs and visit them with the strictest dictates of the law when nabbed and convicted of the crime.
We are also gratified to note that army is on the verge of taking delivery of sophisticated equipment. It will surely boost morale among the troops and spur them to greater effort to flush the terrorists out of Nigeria.
We call on the mass media to redouble their efforts and throw their full support for the armed forces. More efforts should be made to de-emphasise the dissemination of sensational and unsubstantiated information because we may be unwittingly playing into the hands of the terrorists. It is important for media houses to take a closer hold of their online editions and minimise their use by the terrorists and their supporters to achieve their evil purposes.
The war on terror is not for the army, security agencies or the federal government alone. It is a collective effort. We must report suspected saboteurs to the appropriate authorities and keep our communities safe.

- See more at: http://www.vanguardngr.com/2014/08/going-tough-saboteurs/#sthash.2n15VuzI.dpuf

THE greatest threat facing the nation’s war against the Boko Haram and other Islamist insurgents has to do with the unprecedented acts of sabotage that the national assignment is facing. Never at any other time in the history of Nigeria had the army been so bedeviled by internal and external undermining of efforts to rid the country of terrorists and other enemies of her unity and progress.
The sabotage comes in so many forms. It is both within and outside the confines of the armed forces. According to media reports, some military officers with sympathy for the cause of the insurgents sometimes reportedly divulge critical information about the plans of the military to undertake campaigns or even funnel military equipment to their partisans in the enemy camp. This, we learnt, has led to the unceremonious cancellation of such campaigns to avoid putting officers and men in danger of running into ambushes.
One of the greatest forms of the sabotage is misinformation. Many sympathisers of Boko Haram are very eager to approach, mainly, the foreign media to say uncomplimentary things about our armed forces . They create an impression of Boko Haram as an invincible force and Sambisa, their chosen camp, as an impregnable fortress. It is this misinformation and the subsequent avoidable losses in men and military material that give rise to the tales of real or imagined “mutinies” and protests among our men under arms.
The military high command, as well as their supervisory political authorities, must take firm steps to discourage acts of sabotage against our men and women confronting the terrorists. We are fully in support of the assurance by the Chief of Army Staff, Lt General Kenneth Minimah, that the army will henceforth go tough on saboteurs and visit them with the strictest dictates of the law when nabbed and convicted of the crime.
We are also gratified to note that army is on the verge of taking delivery of sophisticated equipment. It will surely boost morale among the troops and spur them to greater effort to flush the terrorists out of Nigeria.
We call on the mass media to redouble their efforts and throw their full support for the armed forces. More efforts should be made to de-emphasise the dissemination of sensational and unsubstantiated information because we may be unwittingly playing into the hands of the terrorists. It is important for media houses to take a closer hold of their online editions and minimise their use by the terrorists and their supporters to achieve their evil purposes.
The war on terror is not for the army, security agencies or the federal government alone. It is a collective effort. We must report suspected saboteurs to the appropriate authorities and keep our communities safe.

- See more at: http://www.vanguardngr.com/2014/08/going-tough-saboteurs/#sthash.2n15VuzI.dpuf

PapaBrowne: These figures are totally wrong and have zero basis. How did the author come up with these discombobulated stats?

From reliable agencies, Lagos state alone has an estimated GDP of $80 billion which equates to 13 Trillion. But this reports arrogates 8.2 trillion to the whole of the South West.

The assumed total GDP OF Nigeria from these fake stats is (15.65 + 8.4 + 8.2 + 5.7 + 1.4 +1.2)= Approximately 24 Trillion Naira. In Dollars, that is 130 Billion Dollars. The last time Nigeria's GDP measured 130 Billion Dollars was in the early 2000's when oil was still selling at $25 per barrel.

Nigeria's GDP stands around $510 BILLION which is equivalent to over 85 Trillion Naira. These figures are fake.

They are most likely presented for political purposes most likely sponsored by the north west ruling class to create an impression that they contribute immensely to the economy versus the South east.And that the only reason the South South has such figures is the oil it possesses. The North West consists of Kano, Kaduna, Katsina, Sokoto, Kebbi, Jigawa, Zamfara. Minus Kano and Kaduna, the rest are empty arid zones many of which dont have up to 10 banks serving the whole state. Banks follow GDP and that's why they have their highest concentration in Lagos, Abuja and PH. The last I checked, CBN released figures indicating that a majority of all cash transactions happen in Lagos, PH, Abuja, Aba and Onitsha.
The long and short of it all is that these are fake figures with political undertones. Its pathetic that people still resort to these kinds of misinformation to further their parochial interests.

You can always tell the real SS from the fake ones. Thanks Papa Brown.

Massive investments in rice production by large and medium-sized corporations in the country have shot up annual domestic processed rice production to over four million metric tonnes valued at N800 billion, from 2.9 million metric tonnes valued N580 billion in the last two years.

This represents 80 percent of the five million metric tonnes of processed rice consumed yearly in the country.

Large corporations that have made massive investments in local rice production in the last few years include Olam Nigeria Limited, Stallion Foods, Best Foods, among others. Investments by these firms and the corresponding high output have made the product more readily available.

“Nigerians eat our high quality local rice but do not know. We have totally changed the quality,” Akinwunmi Adesina, minister of agriculture and rural development, said recently in Kwara State.

“You may wish to know that Stallion ‘Shinkafa rice’ and ‘Stallion super’ are all locally-milled rice from Nigeria, not imported. Our expanded local rice production has added N750 billion to the economy, with over N407 billion as net incomes to farmers and rice processors, and boosted rural economy by 360,000 jobs,” he said.

Adesina said within three years, national paddy rice production rose by an extra 7 million metric tonnes, adding that the number of integrated modern rice mills in the country rose from just one in 2011 to 18 by 2014, all processing the local paddy into high quality finished rice.

Abdulghaniyy Alabi-Ojolowo, producer of Oryza rice, a leading rice value chain investor in Lagos, says the quantity of processed rice sold to consumers that can be obtained from paddy rice is about 50 percent to 70 percent.

So within the three-year period, the country added about 3.5 million metric tonnes of processed rice, which is about 1.16 million metric tonnes annually. This figure, added to the previous 2.9 million metric tonnes of rice produced annually in the country, shows that the country is now producing over 4 million metric tonnes of rice, which is about 80 million 50 kilogramme bags of rice valued at over N800 billion.

Apart from other factors, this increase in local rice production has been boosted mainly by health concerns of the populace, particularly middle class citizens who now usually shun imported rice.

Locally-produced and well-processed rice is generally adjudged to be healthier than imported rice, most of which have spent over 10 years in storage before being brought into the country.

High-quality and well-packaged Nigerian rice currently in the market include Quarra Rice, Umza Rice, Ebony Super Rice, Eko Rice, Mikap Rice, Ashi Rice, Queen of the Niger and Mama’s Pride from Olam.

Recently, a 210,000-metric-tonne capacity rice mill by Olam Nigeria Limited, the largest in Africa, was commissioned by President Goodluck Jonathan.

Ade Adefeko, head, corporate and government relations, Olam Nigeria Limited, says the firm is enhancing food security in Nigeria through the development of a 10,000-hectare rice farm in addition to its rice milling facility, adding that 3,000 hectares out of the firm’s 10,000 are already under cultivation.

Olam’s Integrated Mill in Nasarawa State is supported by an out-grower programme which it plans to scale up from 3,000 farmers to 20,000 farmers to supply rice for its processing mill. Up to 1,000 people are employed on the farm and over 950 are employed on the milling plant at peak season.

OLUYINKA ALAWODE

http://businessdayonline.com/2014/08/private-sector-investment-shoots-rice-production-to-4m-tons-annually