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MAN seeks reversal of CBN policy on Form M

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images 2020 08 28T135931.487 MAN seeks reversal of CBN policy on Form M

The Manufacturers Association of Nigeria (MAN) has advised the Central Bank of Nigeria (CBN) to reverse its recent policy directing authorised dealers to desist from opening Forms ‘M’ whose payments are routed through a buying company/agent or any other third parties, in the overall interest of the manufacturing sector and the economy in general.

MAN President, Mansur Ahmed, gave the advice following the circular released by the apex bank in its resolve to ensure the prudent use of foreign exchange resources, eliminate incidences of over invoicing, transfer pricing, double handling charges and avoidable costs that are ultimately passed to the average Nigerian consumer.

By the policy, authorized dealers should only open Form M for Letters of Credit, Bills for collection, and other forms of payment in favour of the ultimate supplier of the product or service involved.

Form M is a mandatory document, meant to be completed by all importers of goods into Nigeria.

Ahmed, who applauded the good intention of the apex bank, explained that the impact of such decision was inimical to the survival of many manufacturing concerns that are not involved in any unethical practices especially at a time when the nation is implementing gradual ease of the lockdown due to COVID -19 pandemic.

“This additional hamstring on the economy is likely to erode the recent improved performance on the ease of doing business ranking.”

Noting that many companies have gone into contractual agreements via the procurement agencies for the 2020 financial year and, in some cases, beyond , he said any default on these contractual obligations may result in expensive lawsuits across jurisdictions, bring disruptions to the production process and further undermine the resilience of the manufacturing sector.

Consequently, the multiplier effect on the economy will be reduction in productivity, loss in business revenues, supply chain disruption and ultimately loss of employment.

The association explained that if the CBN is of the view that the audit of the activities of a central procurement agency, in terms of price verification, was impossible, a phased approach should be adopted to eliminate their use in Nigeria.

“This will enable companies have sufficient time to re-organise and build the required relationships with original suppliers which they do not currently have.”

To checkmate abuse, Ahmed advised the apex bank to put in place a monitoring mechanism framework to ensure that unverifiable claims by some manufacturers are identified and dealt with accordingly, rather than stifle the business of genuine manufacturers whose interest and commitment is to grow the economy.

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Fuel Scarcity Looms As Depots Stop Loading

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images 2020 10 22T134311.286 Fuel Scarcity Looms As Depots Stop Loading

The scarcity of petroleum products is imminent in Nigeria as some depots have stopped loading-trucks, The Nation learnt on Wednesday.
The Independent Petroleum Marketers Association of Nigeria (IPMAN ) National Vice President, Alhaji Abubakar Maigandi, disclosed this to our Abuja correspondent on phone.
He added that the #EndSARS protests and the resultant crises have stopped the marketers from transiting their loaded trucks.
According to him, since petroleum products are highly inflammable, the drivers decided to park their trucks in safe places nationwide.
He explained that since consumers buy fuel on daily basis and there is no replacement, there is bound to be a scarcity of petroleum products.
Maigandi further said the marketers do not hoard products so there will be no reservoirs to turn to upon the exhaustion of available stock.
Asked whether there is any fear of scarcity, he said “definitely, because some of the depots are not loading due of insecurity.
“The ones that have already loaded parked their trucks in the yards so that protesters will not set them on fire. There is no way you can have sufficient fuels in the filling stations because we don’t do hoarding.”
The IPMAN National Vice President urged the protesters to dialogue with the Federal Government for the amicable resolution of the crises.
He asked them to embrace the olive branch because of the economic losses that emanate from the crisis.
His words: “The EndSARS issue is a Nigerian issue so the protesters and government should dialogue over it for a lasting solution. Nigerians (both government and the governed need to have attitudinal change. So, it is better to dialogue. “

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Ease of doing business: FG to use legislation to attain top 100 countries’ status

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images 100 1 Ease of doing business: FG  to use legislation to attain top 100 countries’ status

The Federal Government has said that it was working on the legislative interventions to enable the country move to the top 100 countries on ease of doing business ranking.

Speaking to newsmen on the 26th Nigerian Economic Summit (NES-26), in Abuja, Minister of Finance, Mrs Zainab Ahmed, noted that Nigeria would continue to initiate business-oriented policies and ensure adequate commitment to their implementation.

“As the nation awaits the passage of the Petroleum Industry Bill, the Finance Act and the Companies and Allied Matters Act (Repeal and Re-enaactment) recently signed by Mr President will transform the business environment and re-energises the private sector as the engine of growth of the economy” she said.

The Minister said that the greatest challenge facing the government is inadequate revenue to execute its numerous projects and other initiatives, adding that co-ordination and cohesion among revenue generating agencies is being improved.

The Minister further said that government was currently developing a Medium Term National Development Plan (MTNDP), 2021-2025 and the Nigeria Agenda 2050. The plans, she said, are to address developmental challenges in all aspects of the country’s national life and will be driven by the Organised Private Sector while government creates the enabling environment to facilitate growth and development and aligned to the continental agenda (AU Agenda 2063) and Global Agenda (Sustainable Development Goals (SDGs), 2030.

“The MTNDP 2021-2025 is expected to be formally launched in December, 2020 while the Nigeria Agenda 2050 will be finalised in July 2021” she noted.

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LUPAN rejects arbitrary increase in base oil import

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images 3 LUPAN rejects arbitrary increase in base oil import

The Lubricant Producers Association of Nigeria (LUPAN) has rejected arbitrary increase of base oil import from N0.10Kobo to N1.23Kobo per litre by Petroleum Product Pricing Agency (PPPRA).

According to the Executive Secretary of the Association, Mr. Emeka Obidike, over time the Association has been besieged by complaints from operators of being tasked with the payment of dues, charges, levies and/or compelled to register with Agencies irrelevant to their operations or the sector as a whole.

He said operators on the verge of having their  consignments confiscated,  often find themselves acceding to their demands and further being inundated by  a deluge of paperwork,  draconian directives, bureaucratic protocols, all culminating in the delayed release of consignments, accrual of unwarranted demurrage, other ancillary expenses and the eventual hike in price of blended lubricants.

In statement made available to Daily Sun, Obidike said the Association has written to the PPPRA protesting this state of affairs and categorically stating that the Petroleum Act, the Department of Petroleum Resources is the primary regulator of the petroleum sector, overseeing activities that relate to production, importation and exportation of petroleum products and indeed all affairs relating to the oil and gas industry (upstream, midstream and downstream) and that the PPPRA’s continued refusal to acknowledge this fact could be construed as a blatant disregard, duplications and encroachment on the authority and jurisdiction of the Department of Petroleum Resources (DPR), adding that the association has written similarly to the Vice President, Yemi Osibanjo to call PPPRA to order.

He explained that base oil is a raw material that undergoes further value addition, unlike other white products; 100 per cent import-dependent, likewise the additives applied, which risk is solely borne by the importer; attracts duty of 5 per cent, and is not subject to regulation as its pricing is subject to market forces. “There is also a patent lack of government intervention (Subsidy) and unaccommodating policies.”

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