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In 30 years, half of Nigerian biscuit companies went out of business— Manufacturers

Published

6 months ago

May 1, 2024

The Manufacturers Association of Nigeria has claimed that in the last 30 years, half of the companies in the biscuit and bakery products business went out of business.

During the group’s recent annual general meeting in Lagos, Fola Osibo, head of the sub-sector, told everyone what was going on.

According to Osibo, Nigerian biscuit makers have had some tough times over the years, and some of these times have made it uncertain whether or not they would be able to stay in business.

He said that the problems included rules that made things hard to do, unpredictable prices and supplies of raw materials, and unfair competition from mostly cheap biscuits from other countries.

Osibo said, “Looking back about 30 to 40 years, biscuit manufacturing operations were thriving in this country, policies were supportive of local manufacturing, raw materials were readily available, and our association had up to 40 members scattered all over the country.

“Then suddenly, the economic situation started going southwards, and our sub-sector started facing economic disruptions, and unfavourable policies which impacted negatively on our operations. Most companies could not cope as margins were completely eroded caused by rising costs of operations, and they started closing shops.

“Unfortunately, our sector has been neglected over the years, and the various government policies have impacted negatively on our operations. Growth of local biscuit production has therefore been stunted and the number of those still in operation has shrunk to only about 15 to 20 companies.”

He asked the Federal Government to save the sector and keep it from falling apart totally by putting in place policies that are responsive and help local production.

The group asked the government to get rid of the Value Added Tax (like it was from 1999 to 2007), lower the net import duty on biscuit flour to 20%, and lower the import duty on some important raw materials like liquid glucose, hydrogenated fat, and flavourings.

Akinwande Owen, Plant Director of Cadbury Nigeria Plc, talked about the problems that the manufacturing industry faces in his presentation. He said that the main problems are changing foreign exchange rates, low consumer purchasing power, talent development and migration/relocation, multiple taxes, and government policies.

Related Topics:Biscuit Featured Manufacturer Nigeria Nigerian manufacturers

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Angola’s draft budget estimates 1.65%/GDP deficit in 2025

Published

2 hours ago

November 1, 2024

Ifeoluwa Dada

Draft budget documents show that Angola’s government expects a 1.65% GDP budget deficit in 2025, up from 1.46% this year.

According to finance ministry records on its website, Africa’s second-largest crude oil exporter’s 2025 budget is predicated on $70 per barrel of oil. Brent crude futures were around $74 per barrel on Friday.

In an interview with Reuters last week, Vera Daves de Sousa, the finance minister of Angola, stated that the southern African nation was under a lot of strain due to the possibility of declining oil prices.

Additionally, according to the draft budget, economic growth would pick up speed in the non-oil sectors, increasing from 3.3% this year to 4.1% next year.

According to the finance ministry, yearly inflation will drop from nearly 29% to 16.6% by the end of next year.

Last week, Daves de Sousa told Reuters that Angola was considering asking the International Monetary Fund for a funding program.

Its most current IMF program, worth $3.7 billion, was authorised in 2018 after the country’s earnings were severely damaged by the collapse of global petroleum prices.

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IMF predicts 4% Middle East, North Africa growth next year

Published

2 hours ago

November 1, 2024

Ifeoluwa Dada

The International Monetary Fund (IMF) has said that Middle East and North Africa growth would rebound to 4% next year if oil output curbs were phased out, and headwinds, including wars, subsided.

As geopolitical and macroeconomic concerns remain, the IMF’s latest Regional Economic Outlook, launched in Dubai, predicts “sluggish” growth of 2.1% in 2024.

The IMF noted that risks to the outlook for the overall area, including the Caucasus and Central Asia, “remain tilted to the downside,” and called for an acceleration of structural reforms, notably in governance and labour markets, to raise chances for medium-term growth.

Jihad Azour, the IMF’s director for the Middle East and Central Asia department, said in an interview that the MENA growth estimate for 2024 has been revised downwards by 0.6% from April’s report, mainly due to the extension of the Israel-Hamas conflict and further extensions of OPEC+ voluntary oil production cuts.

He said the “good news” was that inflation was gradually being brought under control across the region. He predicted that the region would average the 3% goal rate in 2024, except for Egypt, Iran, and Sudan.

The outlook, however, differs significantly throughout the region. According to Azour, oil-exporting nations should be better equipped to handle such threats thanks to “strong” growth in the non-oil sector.

Non-oil growth in the Gulf Cooperation Council (GCC) region has mostly outpaced overall growth despite lower oil prices and production this year, thanks to government-led investment programs that support domestic demand. The GCC includes Saudi Arabia, Kuwait, the United Arab Emirates, Qatar, Bahrain, and Oman.

Oil importers from the Middle East and North Africa are still more susceptible to protracted hostilities and significant funding requirements.

“Even as these issues gradually abate, uncertainty remains high and structural gaps will likely hold back productivity growth in many economies over the forecast horizon,” the IMF report said.

Since January 2024, the IMF has authorised $13.4 billion in fresh investment for Middle Eastern and Central Asian nations, including initiatives in Jordan, Pakistan, and Egypt.