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

Published

7 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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IMF mission concludes 4th loan program assessment in Egypt

Published

10 hours ago

November 22, 2024

Ifeoluwa Dada

Following the completion of a recent visit to Egypt, the International Monetary Fund (IMF) has announced that its mission had achieved significant strides in policy talks aimed at concluding the fourth review of the IMF loan program.

The review is the fourth in Egypt’s most recent 46-month IMF loan program, which was authorised in 2022 and increased to $8 billion this year following an economic crisis characterised by high inflation and chronic foreign exchange shortages. It may unleash more than $1.2 billion in financing.

Along with reaffirming its commitment to maintain a flexible exchange rate system, the IMF stated that Egypt “has implemented key reforms to preserve macroeconomic stability,” including the unification of the currency rate that facilitated imports.

Earlier on Wednesday, Egypt’s Prime Minister Mostafa Madbouly said Cairo has asked the IMF to modify the targets for the programme not only for this year, but for its full duration, he added without giving more details.

“Discussions will continue over the coming days to finalize agreement on the remaining policies and reforms that could support the completion of the fourth review,” the IMF added in its statement.

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Kenya seeks $750m from World Bank, obtains $200m from AfDB— Official

Published

2 days ago

November 20, 2024

Ifeoluwa Dada

The head of debt management for the finance ministry told Reuters that Kenya had obtained a $200 million loan from the African Development Bank (AfDB) and was negotiating a fresh $750 million loan with the World Bank.

After being forced to abandon proposed tax rises costing more than 346 billion shillings ($2.68 billion) in June due to fatal demonstrations, the East African nation’s administration, which has been grappling with significant debt, has been frantically seeking fresh funding.

The Finance Ministry’s public debt management office director general, Raphael Owino, told Reuters that the IMF’s October clearance of the seventh and eighth reviews, which opened the door for a $606 million loan tranche, had aided the ministry’s talks for more loans.

“The World Bank is coming on board, riding on the back of IMF receipts,” Owino said. “The AfDB is already on board.”

The discussions for more assistance, which came under the World Bank’s “Development Policy Operations” (DPO) with the government, were confirmed by a representative at the organization’s Kenya office.

“The amount of the current (loan) is yet to be determined. The amount will also depend on the implementation of the policy reforms agreed upon,” the spokesperson told Reuters, adding that past DPO loans averaged about $750 million.

In May, the World Bank approved the latest round of DPO loans, totalling $1.2 billion.

According to a statement made last month by Finance Minister John Mbadi, Kenya has set a foreign borrowing goal of 168 billion shillings for the fiscal year ending in June 2025.