GRBusiness
High cost of fund, harsh operating environment too much for us- MAN
In spite of the claims by the federal government that the ongoing economic diversification effort was yielding positive results, high cost of funds, week infrastructure and harsh socio-economic and political environment have continued to hobble the manufacturing businesses in Nigeria, culminating in the lack-lustre performance of the sector.
It was gathered that the Nigeria’s manufacturing industry sub-sector has continued to record increases in unsold inventory, low capacity utilisation, and declining investment, with adverse consequence on the sector, according to ThisDay report.
The implication, it was learnt, was that instead of making meaningful contribution to growth and development, like in other parts of the world, it was at the brink of recession.
The latest annual report of the Manufacturers Association of Nigeria (MAN), which was released at the just-concluded 46th Annual General Meeting (AGM) of the association in Lagos, at the weekend, showed that the sector did not record any growth in the 2017 business year, despite the current efforts to position the sector for Africa and global competitiveness.
According to the report, “high lending rate remained a major challenge to the manufacturing sector in the period under review.”
A survey by MAN showed that the cost of lending to the manufacturing sector stood at 23.05 per cent in the second half of 2017, which was almost the same figure with 23.3 percent recorded in 2016.
This however, showed a 0.37 per cent improvement when compared with 22.65 per cent in the preceding half of the year.
Overall, the report showed that the cost of fund to the manufacturing sector, averaged 24.1 per cent in 2017, showing 1.4 per cent point increase over 22.7 per cent recorded in 2016.
MAN also noted that unsold inventory of finished goods produced members rose to N161.53 billion in the second half of 2017 from N35.42 billion recorded in the corresponding period of 2017 , indicating N126.11 billion increase over the period.
It also showed an increase of N1.94 billion or 1.2 per cent when compared with N159.59 billion recorded in the preceding half.
According to the report, over all, unsold inventory of manufactured goods in Nigeria totalled N321.12 billion in 2017 when compared with N90.43 billion in 2016, representing an increase of N230.77 billion or 255.19 percentage point.
The report also recorded a decline in manufacturing investment at the end of 2017 with estimated cumulative manufacturing investments from 2013-2017 at N4.63 trillion based on data generated from a survey conducted by the association.
In the second half of the year, investment declined to N176.69 billion from N448 billion recorded in the corresponding period in 2016, showing a decline of N272.25 billion or 60.6 per cent over the period. According to MAN, it also declined further by N152.59 billion or 46.3 per cent when compared to N329.28 billion achieved in the preceding half of the year.
Overall, manufacturing investment recorded during the year under review totalled N508.98 billion compared with N614.55 billion achieved in 2016; an indication of N105.57 billion or 17.2 per cent decrease over the period.
On the manufacturing production value, MAN’s report said that in the second half of 2017, it was estimated at N4.81 trillion as against N5.02 trillion recorded in the corresponding half of 2016, “thereby indicating N0.21 trillion or 4.2 per cent decline over the period.”
The report stated that it increased by N0.5 or 1.1 per cent when compared with N4.76 trillion recorded in the preceding half of the year .
However, production in the manufacturing sector totalled N9.48 trillion in 2017 as against N8.78 trillion total of 2016, thereby indicating N0.7 trillion or 8 per cent increase over the period.
MAN also decried the continued existence of multiple taxation, saying that it is one of the factors against the industrialisation of the country.
It called for the commencement of the implementation of the harmonised taxes and levies, which should be monitored strictly by the Joint Tax Board (JTB) with a view to enforcing compliance by states and local governments.
The report argued that the government should expand the tax net to capture non-tax paying firms, “particularly those operating in the informal sector and not top increase the tax burden on the already tax compliant businesses.”
On power, MAN said that electricity supply to the manufacturing sector averaged nine hours per day in the second half of 2017 against eight hours and five averages of the corresponding half of 2016 and the preceding half respectively.
It however, noted that power outage in the sector has remained consistently at four times since the second half of 2016, adding that the manufacturing sector alternative energy utilisation in the second half of 2017 declined to N51.35 billion from N66.96 billion expended in the corresponding period in 2016, representing N15 61 billion decline over the period.
MAN added that there was also decline of N14.17 billion, when compared with the N66.03 billion recorded in the preceding half.
Also, expenditure on alternative energy utilisation in the sector totalled N117.38 billion in 2017 as against N129.95 billion recorded in the previous year-2016, indicating a decline over the period.
According to MAN, the decline in the expenditure of alternative was a result of the slight improvement
MAN had early last week raised the alarm that Nigeria’s manufacturing was on the verge of recession, expressing the dismay that despite the government’s position that the country’s economy had exited recession , the manufacturing sector has been recording zero growth.
Improved efforts at collaboration among financial service providers, telecommunication operators, and tech Startups, with conscious effort geared at consumer awareness, have been proffered as key remedies to the challenge of financial inclusion in the country.
This is the viewpoint of stakeholders that gathered for the second edition of Payment Forum Nigeria (PAFON 2.0) held recently in Lagos.
Delivering a keynote address on the theme, “Bridging the Customer Experience Gap for Financial Inclusion Using AI”, Ebehijie Momoh (Mrs.), the managing director and chief executive officer of AfriGoPay Financial Services Limited, said that with 64% of Nigerian adults being financial included the country has made immense progress in that regards.
She said that between 2012 till date, the country has recorded robust regulatory reforms, especially the launch of the Bank Verification Number (BVN) in 2014 making it easier to identify and track customers across different banks.
“This initiative enhanced the credibility of the financial sector and increased confidence in formal banking systems.
The growth in adoption of smartphones has also helped the financial sector to leapfrog financial inclusion. Nigeria has 142.16 mobile internet subscriptions with an average consumption of ~7.04GB / month as of January 2025. If you juxtapose it to the 15.9% decline in shipments of feature phones to 18.8 million units in Africa as at Q1 2024, you will understand that the uptake in smartphones has helped us a great deal.
Mrs. Momoh who spoke through Mr. Munachi Duru, the head of Innovation and Strategic Partnership at AfriGoPay, said the adoption of artificial intelligence banking gave birth to solutions like smile identity, a leading KYC verification provider launches facial recognition capabilities in Nigeria as neobanks and commercial banks are deploying AI-based KYC verification tools, enabling cheaper and efficient customer acquisition and servicing.
In her goodwill message, Mrs. Uche Uzoebo, MD/CEO, Shared Agent Network Expansion Facilities Limited (SANEF) Limited said that with progress made in accelerating financial inclusion to unbanked and underbanked communities in Nigeria, SANEF has leveraged Artificial Intelligence (AI) as the next step to advancement in financial services in the country.
She noted that as technology evolves rapidly within the financial ecosystem, Financial Inclusion must continue to be at the center of the nation’s progress.
According to her, agent banking has been a game-changer in expanding financial inclusion across Nigeria. “By deploying agents in underserved areas, we have brought financial services and banking products such as account opening, cash in, cash out, bill payment, transfers and other services closer to the unbanked and underserved.”
Speaking during a panel session, Mr. Ibirogba Oluwagunwa, chairman, Lagos State Chapter of the Association of Mobile Money & Bank Agents in Nigeria (AMMBAN), spoke of lack of collaboration and slow institutional drive towards AI as key barriers hindering digital inclusion.
He harped on the need for information sharing among fintech operators, and improved free flow of information to consumers. “The human barrier angle needs to be addressed. Fintechs need to be pushed to move forward, AI cannot operate itself.”
In his contribution, Mr. Chika Nwosu, managing director of PalmPay, reiterated the need to reach the consumers with simple format communication and education style.
He said operators should create awareness and design consumer-centric approach in developing any products. This will not only draw the consumers towards the product, but also generate trust and ease the use of such products.
Focusing on the use of AI to ensure reach, inclusion and security, Azure Application and AI Specialist at Microsoft UK, Olusoji Solomon Adeyemo, spoke on the need for AI and Blockchain in the bid to extend services to rural communities and the unbanked.
According to him, “AI, Blockchain and CBDs are shaping the future of payment, and there is a serious need for education. We need to align with global trends in new tech adoption.”
While noting that AI can ensure reach, Adeyomo said blockchain will also create digital identity that is exclusive and will promote digital financial inclusion.
In her position, Oluwabunmi Ogunyemi, the customer support lead at Moniepoint MFB, proffered physical and digital meet with customers, even in rural areas, as a viable means of inclusivity.
Also speaking, Olusegun Afolabi, the co-founder of Face Technologies UK Ltd., called for improved collaborations among stakeholders in the financial sector.
According to him, the fintech companies must also embrace effective identification solutions, focusing on biometrics and card technologies to ensure topnotch security for users.
Earlier in his opening remarks, Mr. Peter Oluka, co-Convener of the Forum, noted that the financial inclusion journey in the country has come to a crucial juncture where over 30 million adults are still financially excluded, many of whom reside in rural areas or belong to vulnerable demographics.
He noted that despite 12% growth in access to formal financial services between 2020 and 2023, as recorded by the EFInA Access to Financial Services Survey 2023, challenges still exist that hinders the unlocking of the potentials of digital payments to drive inclusive growth in Nigeria.
He further posited: “As digital infrastructure grows and fintech innovation accelerates, we must channel these advancements toward building a more inclusive, secure, and trusted financial ecosystem. This is not just about transactions — it’s about empowerment, opportunity, and economic participation for all.
Nodding in agreement, Mr. Chike Onwuegbuchi, co-Convener, PAFON, reiterated the need for all stakeholders in the financial payment industry, including regulators, to participate in forums as PAFON, to map out, growth strategies with consumers and other strata of the ecosystem.
He promised to invite security stakeholders, such as the EFCC and others in subsequent editions of the event. This will help give insight into security concerns in deployment of products and services in rural and unbanked communities.
Payments Forum Nigeria (PAFON) is a platform dedicated to shaping the future of digital payments and financial services in our country.
Energy
AVEVA is providing data management support for renewable natural gas projects
Reporter: Godwin Ezeh
Key Highlights
● AVEVA’s industrial information infrastructure has been selected by Archaea Energy to provide key data management support
● AVEVA’s industrial software to optimize performance across Archaea’s RNG plants
AVEVA, a global leader in industrial software driving digital transformation and sustainability, has been selected by Archaea Energy, the largest renewable natural gas (RNG) producer in the US, to build a comprehensive operations data management infrastructure.
Using AVEVA’s software, Archaea Energy can collect, enrich and visualize its real-time operations data, enabling performance analysis across its growing network of plants.
Using AVEVA PI Data Infrastructure, a hybrid solution with cloud data services, the plants will be able to share data to highlight operational opportunities and optimize efficiency.
Caspar Herzberg, CEO, AVEVA, stated,
“Through this collaboration and the use of AVEVA PI Data Infrastructure, Archaea’s growing network of plants will have streamlined operations with accurate performance analysis throughout the expansion. AVEVA’s CONNECT software platform leverages industrial intelligence from a central location, making it easier to deploy additional digital solutions in the future.”
“As the largest RNG producer in the United States, we are dedicated to delivering reliable, clean energy,” said Starlee Sykes, chief executive officer of Archaea Energy. “This relationship will allow us to optimize operations and offer detailed performance analysis as we continue to expand across the country.”
Micro, Small and Medium-sized Enterprises(SMBs) are the backbone of most economies accounting for 90% of businesses, over 70% of employment, and 50% of global GDP, according to the United Nations. They drive growth, innovation, and job creation worldwide.
In Nigeria, they play a crucial role in stimulating local economies and contributing to the country’s GDP.
Recognising their impact, WhatsApp is committed to empowering SMBs with the tools to succeed through the WhatsApp Business App, by reaching their customers where they already are.
WhatsApp continues to be the best way for people and businesses to get business done in Nigeria. With its efficient features, the WhatsApp Business App has become an indispensable tool for small businesses, helping them streamline communication, enhance customer engagement and drive sales. And we know customers love communicating with businesses over WhatsApp too, as nearly 80% of people globally message with a business at least once a week.
Whether you’re just starting out or looking to optimise your business operations, here are five essential WhatsApp Business features that can elevate your efficiency and customer interactions.
1. Catalog – Showcase Your Products and Services
Gone are the days of sending multiple images and descriptions individually to customers. With the Catalog feature, you can create a digital storefront where customers can browse your offerings within WhatsApp. This is just like a mini-website which makes it easier to showcase your products, prices and descriptions in an organised way.
How to Use It: Go to Business Tools > Catalog. Add product images, videos, names, descriptions and pricing.
2. Quick Replies – Save Time on Repetitive Questions
Answering the same customer questions repeatedly? Quick Replies let you create preset responses for frequently asked questions, saving you time and ensuring fast customer service.
How to Use It:Go to Settings > Business Tools > Quick Replies. Create and save responses such as a greeting message or order confirmation. Use the shortcut “/” to insert a quick reply in any chat
3. Labels – Stay Organised and Track Conversations
Managing multiple customer interactions can be overwhelming, but the Labels feature helps by categorising chats in different ways, such as order status or customer type. You can create labels with different colors or names and add the conversations to an entire chat. This keeps your inbox organised and ensures no customer is left waiting.
How to Use It: Open a chat, tap on the three-dot menu > Label Chat. Assign relevant labels like New Customer, Order Placed, Pending Payment.
4. Away Messages – Engage Customers Even When You’re Away
Never miss a customer inquiry again. Away Messages allow you to set up a greeting or away message, ensuring customers receive timely responses even outside business hours.
How to Use It: Go to Business Tools > Away Message / Greeting Message. Set up a custom message and schedule when it should be sent.
5. Meta Verified – For Enhanced Protection and Account Support
A paid subscription that helps your business build credibility with new audiences, Meta Verified can help drive more engagement and grow your brand. With Meta Verified, you’ll receive enhanced account support, can use WhatsApp across multiple devices and easily create a professional WhatsApp web page that’s tailored to you.
How to Use It: Go to Settings or Business Tools > tap Meta Verified.
WhatsApp Business is packed with features designed to help small businesses grow, stay organised, and engage with customers effortlessly. By leveraging these features, you can enhance your customer experience, increase efficiency and ultimately drive more sales. Start your own journey with the WhatsApp Business app here.
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