Growth in Nigeria’s Private Sector Activity Eases – Business Post Nigeria

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By Modupe Gbadeyanka
Growth eased in Nigeria’s private sector activity in August than what was recorded in the previous month, the Purchasing Managers’ Index (PMI) of Stanbic IBTC Bank has revealed.
In a statement issued by the lender, it was disclosed that the headline PMI for business conditions in the industry stood at 52.3 last month compared with 53.2 in July, signalling another improvement in business conditions.
It explained that softer upticks were recorded in output, new orders and purchasing activity while employment rose at a quicker pace.
At the same time, overall input price inflation rose at the second-fastest rate on record while sentiment moderated to the weakest since last November.
New orders rose for the 26th month running in August which panellists linked to general improvements in customer demand. The rate of growth did ease from July, however, amid elevated prices. Higher sales underpinned a second successive uptick in output in the Nigerian private sector.
The rate of growth was broadly in line with that seen in July but was softer than the long-run series average. Of the four monitored subsectors, three registered output growth. Agriculture topped the rankings, followed by wholesale & retail and services, respectively.
Manufacturers, meanwhile, recorded a fall in output levels during August. Despite slowdowns in output and new order growth, firms added to their headcounts at a quicker pace in August.
The overall rate of job creation was modest and the highest for three months. Subsequently, firms continued to reduce their backlogs, but the rate of decline was fractional amid difficulties sourcing some key inputs. Advance payments led to quicker supplier delivery times in August.
In fact, vendor performance improved to the greatest extent in three months. Quicker lead times allowed firms to add to their inventory holdings. Stocks of purchases rose at a slower pace to that seen in July, however. On the price front, higher commodity and transportation expenses exerted upward pressures on purchase costs.
At the same time, firms raised their staff wages to motivate their workforces and in light of higher living expenses. The overall rate of input price inflation was the second-fastest in the survey’s history, surpassed only by that seen in November 2021.
Looking ahead, firms remained optimistic of output growth in the year ahead, as has been the case since the survey began in January 2014, but the degree of positivity was the weakest for nine months.
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Modupe Gbadeyanka is a fast-rising journalist with Business Post Nigeria. Her passion for journalism is amazing. She is willing to learn more with a view to becoming one of the best pen-pushers in Nigeria. Her role models are the duo of CNN’s Richard Quest and Christiane Amanpour.
Nigeria’s Private Sector Activity Grew in February—Stanbic’s PMI
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By Aduragbemi Omiyale
FGN savings bonds worth N2.1 billion were allotted to retail investors in the Nigerian capital market by the Debt Management Office (DMO).
This information was disclosed by the debt office in a notice issued on Wednesday and seen by Business Post.
Last week, the agency opened subscriptions for the papers for low-income earners in the country. The exercise was on for one week.
Two tenors of two years and three years were offered for sale during the bond sale for this month and from the details of the exercise, investors showed a strong appetite for the longer maturity.
The DMO said it allotted N530.7 million to 484 successful subscribers of the two-year papers at 11.04 per cent and allotted N1.6 billion to 620 subscribers of the three-year notes at 12.04 per cent.
A few years ago, the debt office created the FGN savings bonds for low-income earners after the Central Bank of Nigeria (CBN) stopped the sale of treasury bills to the category of investors.
Before the action, investors were able to buy T-bills for as low as N10,000 but the apex bank raised the minimum subscription to N50 million, making it impossible for most low-income earners to invest in the asset class.
In order to fill this vacuum, the DMO came up with the savings bond and started selling in the first week of the new month. Prior to the advent of the retail bond, the debt office only sold sovereign bonds to investors with the minimum subscription at N50 million.
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By Aduragbemi Omiyale
Some companies operating in Nigeria paid the sum of N714.4 billion as income tax to the federal government in the second quarter of 2022.
Those in the manufacturing, information and communication as well as financial and insurance sectors were the major contributors to this source of revenue for the government.
According to the National Bureau of Statistics (NBS), the three industries accounted for 27.55 per cent, 24.56 per cent and 14.98 per cent respectively of the total collections in the period under consideration.
It was disclosed that the N714.4 billion collected as Company Income Tax (CIT) between April and June 2022 was 29.53 per cent higher than the N551.5 billion collected between January and March 2022.
A further breakdown showed that domestic organisations made the highest remittance to the government when compared with foreign firms. While the local payments received stood at N634.01 billion, offshore payments accounted for N80.39 billion.
On a quarter-on-quarter basis, the activities of accommodation/food services recorded the highest growth rate of 481.93 per cent, followed by information/communication with 430.67 per cent, and transportation/storage with 339.08 per cent.
On the other hand, activities of extraterritorial organizations/bodies had the lowest growth rate of 42.59 per cent, followed by activities of households as employers, undifferentiated goods and services-producing activities of households for own use with -31.80 per cent.
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By Dipo Olowookere

The Senate Committee on Finance has tasked the Securities and Exchange Commission (SEC) to design incentives that would attract local investors and young Nigerians to the capital market so as to make it very robust.
Chairman of the panel, Mr Solomon Olamilekan Adeola, while speaking at the 2023-2025 Medium Term Expenditure Framework/Fiscal Strategy Paper (MTEF/FSP) interactive session on Tuesday in Abuja, submitted that a robust capital market will improve the Nigerian economy.
“There is still a lot to be done at the SEC and I believe that you will try your best. So many people are not interested in the Nigerian capital market again, it is losing steam.
“Even though other world economies market no one is patronising them because it is not the best of times, but I want you to see ways by which you can encourage local investors to our capital market.
“That is one area you should explore, let the young people know that if they put money in the market in the shortest possible time they can access their profit,” the lawmaker said.
He, however, commended the agency on its efforts so far in returning it to profitability, saying “You have done well, I must commend you. I commend you for your efforts in repositioning that agency from a point of deficit after paying salaries to a point of profit now and to the extent of contributing to the coffers of government, I commend you.”
“You have done well, but there is always room for improvement. It is that improvement we are trying to emphasise now and we think you are getting it right now; we hope God will guide you in your quest to turn around the fortunes of the SEC,” he added.
Speaking earlier, the Director-General of SEC Mr Lamido Yuguda, told the senators that the commission is a 100 per cent self-funded agency of government and pays dues to the Consolidated Revenue Fund of the Federal government under the Finance Act 2020 that has amended the Fiscal Responsibility Act of 2007.
“Right now, we are contributing 25 per cent to the federal government which is deducted at source and we are also asked to pay another 15 per cent at the end of the financial year when we submit our annual accounts. That is making 40 per cent in total.
“I am saying that based on what we have done so far, that 40 per cent is a little too heavy for the commission and I would like this committee to look at this issue.
“We have abided by the provision of the Act as we have committed the sum of N1.588 billion for the 6 months ending June 2022. For the whole of 2021, we have done N1.367 billion and then for the 6 months in 2020. We have contributed a total of N3.705 billion from the time the deductions started,” the DG said.
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