Skip to main content

‘How border closure aided local raw materials utilisation’

‘How border closure aided local raw materials utilisation’

Utilization of Local Raw-materials in the manufacturing sector increased marginally in the second half (H2) of 2019, attributable to the closure of the country’s land borders by the Federal Government during the period, the Manufacturers Association of Nigeria (MAN), has said.

According to MAN in its data for the second half of 2019, local sourcing of raw-materials in the manufacturing sector increased to 64.0 percent from 63.7 percent recorded in the corresponding half of 2018; thus representing 0.3 percentage point increase over the period.
Latest raw materials utilisation figure also indicates an increase of 7.0 percentage point when compared with 57.0 percent recorded in H1 2019.

To the operators, the rise in local sourcing is impressive, particularly coming on the back of a fall in local sourcing of raw materials in the sector.

MAN had in its half year report for 2019, made available to The Guardian, indicated that local raw-materials utilization in the manufacturing sector maintained downward trends since the first half of 2017 when the Central Bank of Nigeria (CBN) commenced policy intervention in the official foreign exchange (forex) market.

The operators stated that the relatively more available forex resulting from the intervention may have been rubbing off negatively on backward integration agenda as firms prefer to import raw-materials as against inward-looking.

Also, latest data from the National Bureau of Statistics (NBS), equally confirmed the fall in the importation of raw materials between Q4 2019 and Q1 2020.

In Q1 2020, the value of total trade in raw material stood at N341.1billion. The import component was valued at N307.3billion while the export component stood at N33.8billion, lower than the value recorded in Q4 2019. In the preceding quarter, total trade in raw material stood at N356.9billion. The import component was valued at N335.8billion while the export component stood at N21.1 billion.

During the Q1 2020, Urea worth N10.5billion and N5.4 billion were exported to Brazil and Uruguay, respectively. Technically specified natural rubber worth N1.0 billion was exported to Spain. Leather further prepared after tanning valued at N2.2billion was also exported to Spain.

In terms of imports, Cane sugar meant for sugar refinery worth N44.3 billion was imported from Brazil, Milk preparation worth N7.4 billion were imported from Ireland, N3.8 billion from Malaysia, and N2.2billion from Australia.
Other products were mixtures of Odoriferous substances worth N9.5billion from Ireland and N2.0billion from Swaziland. Mixed alkylbenzenes worth N11.4 billion was imported from Spain, and other Glutamic acid worth N3.3billion were imported from China.

Comments

Post a Comment

Popular posts from this blog

NSE vows to enhance retail investment opportunities

NSE vows to enhance retail investment opportunities   The Nigerian Stock Exchange has expressed its commitment to redefining and improving investors’ overall experience in the Nigerian capital market, and ensuring that it remains modern, convenient and secure. This was highlighted at the inaugural edition of the Retail Investors’ Webinar hosted by the Exchange in collaboration with the Nigerian International Securities Limited on Monday. The event, with the theme ‘Capital market investing in a digital age’, was supported by the Chartered Institute of Stockbrokers and the Association of Securities Dealing Houses of Nigeria. Speaking during the webinar, the Chief Executive Officer, NSE, Mr Oscar Onyema, said, “Investor participation is central to the growth and sustainable development of any economy. “The Exchange is, therefore, committed to facilitating conversations that will expound on the retail investment opportunities available in the capital market and the chann...
Post a Comment
Read more

NAIRA WEAKENS TO LOWEST IN THREE YEARS

NAIRA WEAKENS TO LOWEST IN THREE YEARS The Naira yesterday weakened to the lowest in over three years in the parallel market due to increased demand for dollars amid foreign-currency shortages. The local currency depreciated to N495 to a dollar yesterday, lowest since February 23, 2017, widening the gap with the official rate of N379.5 to over 30 per cent. The currency traded in the interbank market at 389.74 as of 4:54p.m. in Lagos. Agency reports quoted traders as alleging a groundswell of diversion of dollars, a development which heightened scarcity of the green back in the parallel market this week. There is a diversion of inflows away from official channels to the parallel market due to the gap in rates, Murega Mungai, trading desk manager for Aza Finance said in a note Thursday. The market spread has created arbitrage opportunities for recipients of remittances such as exporters and private individuals. Pent up demand in the foreign exchange market is not unprecedente...
Post a Comment
Read more

ACCESS BANK TO HOLD FOURTH EDITION OF BUSINESS CLINIC.

ACCESS BANK TO HOLD FOURTH EDITION OF BUSINESS CLINIC. The MSME arm of one of the leading New Generation Banks in Nigeria, Access Bank Plc will hold its fourth edition of its specialized virtual business training session on Thursday 24 th September 2020. The Sessions which is tagged Access Digital Business Clinic is open for Macro, Small and Medium Entrepreneurs from across Nigeria According to the facilitators of the training, the clinic is a one-on-one business consulting and advisory sessions with experts, who will diagnose and proffer practical and tailor-made solutions to the challenges that MSME owners might be experiencing in the course of running your business.  However to gain access into the Business Clinic and to have a better understanding of what to expect at the Business clinic, the bank will be holding a virtual technical test session on Tuesday, 22 nd September, 2020, time: 2:00PM - 2:30PM. To register or join the Live Test Session visit: https://te...
Post a Comment
Read more