Business
China, France drag on global manufacturing revival
LONDON/BEIJING – Manufacturers around the world enjoyed a solid start to the year as order books swelled, surveys showed on Monday, though a struggle for growth in China and a downturn in France took the shine off the overall picture.
Euro zone factories had their best month since mid-2011 and, with unemployment near record highs, increased headcount for the first time in two years. They were led by a sharp pick-up in Germany and a revival among the states on the region’s periphery.
But France, the bloc’s second biggest economy, remained a drag on the region.
“The major area of uncertainty over the last few years has been the euro area, but the latest PMI numbers tend to confirm (it)… is on a gentle recovery path with the periphery gaining encouraging momentum as well,” said Philip Shaw at Investec.
“The latest numbers on China, and the UK, are a little less positive but there is nothing that would signal any major concerns about those economies from today’s surveys.”
Growth in China’s service sector growth slowed to a five-year low, putting the focus on concerns of an slowdown in Asia’s economic powerhouse – a factor behind the selloff that has hit emerging markets in the past two weeks.
The rate of expansion in activity in U.S. factories probably also slowed last month, figures due later are expected to show, echoing earlier data from Britain that suggested a swift upturn in factory activity there eased slightly.
Markit’s final Eurozone Manufacturing Purchasing Managers’ Index (PMI) rose to 54.0 last month, pipping an earlier flash reading of 53.9 and comfortably ahead of December’s 52.7. The last time it was higher was in May 2011.
A reading above 50 indicates growth.
The sub-index measuring output, which feeds into a composite PMI due on Wednesday and seen as a good guide to broader economic growth, rose to 56.7 from December’s 54.9, in line with a flash estimate and its highest since April 2011.
Germany’s PMI jumped to a 32-month high but while France’s rose to a 23-month peak, it held firmly below the breakeven 50-mark.
Factories increased headcount to meet demand, providing some cheer to policymakers after data on Friday showed unemployment across the bloc held near a record high of 12 percent for the third month running in December.
However, manufacturers were unable to raise prices last month as fast as they did in December, possibly stoking fears of deflation in the region after consumer price inflation dropped unexpectedly in January.
BRAKING CHINA
Recent numbers from China have painted a subdued picture of developments there.
The Markit/HSBC manufacturing PMI fell to a six-month low of 49.5 in January, suggesting the overall factory sector contracted from December. A similar government measure also fell to a six-month low, although it indicated the sector was still expanding modestly.
A government PMI on the services sector fell to 53.4 in January, firmly in expansion territory but still the index’s lowest level since December 2008.
That run of data provided further reminders for markets of the pressures on the world’s top emerging market economy as Beijing tries to push major reforms without tamping down growth too much.
China’s government wants to reduce a heavy reliance on the investments and exports that have fuelled breakneck economic growth in the past three decades in favor of consumption and services, which it thinks will provide lower but more sustainable growth.
Barclays analysts, referring to manufacturing, said they estimated the seasonal impact of Lunar New Year holidays was minimal on China’s factory sector.
“In our view, much of the decline reflects (a) downbeat demand outlook and suggests continued softening in growth momentum,” Jian Chang and Jerry Peng said in a note.
Other PMIs on Monday showed Indian manufacturing running at its strongest pace since March 2013 and in South Korea the sector was expanding at its fastest in eight months. An Indonesian PMI showed a slight pick-up in factory activity
Last week, a Japanese PMI rose to its highest level in nearly eight years as new orders expanded at their fastest pace on record – a sign of strong domestic demand before prices rise with an increase in a domestic sales tax due in April.
– REUTERS
The Office of the Auditor-General of the Federation has uncovered financial irregularities amounting to ₦514 billion in the 2021 operations of the Nigerian National Petroleum Company Limited (NNPC Ltd).
The revelations were contained in a comprehensive audit report highlighting non-compliance and internal control weaknesses within Ministries, Departments, and Agencies (MDAs) during the 2021 financial year.
READ MORE: Powerful 6.8-Magnitude Earthquake Hits China, Dozens Killed
Breakdown of Infractions
The audit detailed four major financial discrepancies within NNPCL:
“Irregular Deductions: A total of ₦343.64 billion was deducted from domestic crude oil sales at source without proper documentation.
“Sinking Fund Deposits: ₦83.66 billion, categorized as miscellaneous income, was retained in a sinking fund account.
“Unauthorised Refinery Deductions: ₦82.95 billion was deducted from federation revenue purportedly for refinery rehabilitation.
“Unsubstantiated Payments: ₦3.75 billion was flagged for transactions related to petrol sales that lacked proper verification.
The Auditor-General’s report stated that these financial activities violated the 1999 Constitution and the Financial Regulations Act of 2009, underscoring significant lapses in compliance with statutory guidelines.
According to the report, NNPCL generated ₦484.73 billion from domestic crude oil sales in March and May 2021.
However, ₦343.64 billion was deducted for various purposes, including “Value Shortfall,” “Strategic Stock Holding Cost,” and “Pipeline Maintenance.”
The deductions were made unilaterally by NNPCL without adequate documentation or justification.
Additionally, the report flagged ₦50 billion of the net payable amount for May 2021 as unaccounted for, creating a significant gap in the federation’s revenue.
“Audit observed from the review of NNPC SAP payment record for March and May 2021 payments that the sum of ₦484.73bn was the gross amount generated for the sale of domestic crude for the months of March and May 2021.
“The sum of ₦343.64bn from the gross amount was unilaterally deducted from the gross domestic crude sales as NNPC Value shortfall, Strategic Stock Holding Cost, Crude Oil and Products Pipeline Losses, as well as the pipelines maintenance and management costs.
“The details of each of the cost components deducted were not provided for audit review. Hence, the reasons for the deductions could not be justified by the management.”
On the unremitted ₦50 billion from May 2021, the report noted: “In the month of May, the net payable that could have been remitted ought to have been ₦127.075bn, but only the sum of ₦77.075bn was remitted, leaving an unremitted balance of N50bn to the Federation Account, which has remained unaccounted for.”
The report attributed these anomalies to weaknesses in NNPCL’s internal control systems, warning of the risks they pose to public funds.
It read, “The above anomalies could be attributed to weaknesses in the internal control system at NNPC, now NNPC Ltd. This is a potential loss of Federation revenue, diversion of public funds, or misapplication or misappropriation of funds.”
The success of the maiden edition of the Lagos Shopping Festival (LSF), Africa’s first 72-hour non-stop commerce and entertainment event has been credited to the Governor of Lagos State, Babajide Sanwo-Olu.
This is the view of Managing Director/Chief Strategist of Chain Reactions Africa Ltd, Israel Jaiye Opayemi, one of the main organisers of the event.
According to Opayemi, though Chain Reactions Africa conceptualised the event, the festival could be rightly described as the Governor’s baby and owes its success to his leadership. “Firstly, the Lagos Shopping Festival could not have come to fruition if the Governor did not buy into our audacious plan when we first presented the idea to him during the Covid-19 pandemic in 2020. Secondly, it was the Governor’s exemplary leadership of the project as its Chief Marketing Officer which attracted the buy-in of key sponsors like Zenith Bank, Tolaram Group, First Bank Plc, and Guinness Nigeria Plc,” Opayemi revealed.
ALSO READ: Tinubu Okays Bulletproof SUVs, Medical Benefits, Others For Retired Army Generals
While the duo of Zenith Bank and First Bank provided their bank on wheel platforms for buyers at the Lagos Shopping Festival, they also supported the Vendors with special Point of Sale Machines with which to process payments from buyers. The banks were also seen marketing their diverse banking products to guests within the shopping arena.
For Tolaram, it was a time to support the citizens and give back to society. Guests at the Lagos Shopping Festival were freely given some of the products of the group such as PowerOil, Indomie and Kellogg’s packaged into goodie bags and given out to prospective buyers at the shopping arena. The Children’s Arena was however activated by Indomie with the children entertained by Santa Claus within a well-equipped arena manned by the Indomie Brands team and the Lagos State Safety Marshalls. The children were daily treated to free Indomie meals daily and given various gifts to go home with.
On its part, Guinness Nigeria came through as the real life of the Nigerian party by organizing product sampling activation for the teeming guests at the festival using brands such as Singleton, Johnnie Walker, Ciroc, Don Royale and Captain Morgan to deliver pleasant experiences to guests aside from Guinness and Malta Guinness.
While unveiling the identity of the festival last month, Governor Babajide Sanwo-Olu had thanked the management of Zenith Bank Plc, Tolaram Africa Group, Guinness Nigeria Plc and First Bank of Nigeria for supporting the idea of a Lagos Shopping Festival, describing it as a value addition on the state’s tourism calendar and the overall efforts to grow the State’s GDP. The Governor further said, “I must specially acknowledge your pioneering sponsorship role. It is easy for a corporate sponsor to jump on the sponsorship band wagon of an already established festival and fund it. But you are supporting the maiden edition of this Lagos Shopping Festival with us. The competition is watching you now. Do not build this brand with us and yield the space for the competition to take over. I do hope you would all commit long term to this brilliant initiative.”
On his part, Girish Sharma, CEO Guinness Nigeria Plc, expressed enthusiasm for the initiative. “Lagos is the commercial heartbeat of Nigeria and Africa’s entertainment capital, and the Lagos Shopping Festival captures its essence. We see opportunities in this initiative because it is a creative fusion of commerce and entertainment. This partnership reflects our dedication to fostering economic opportunities and support the nation’s vibrant entertainment industry.”
A first-of-its-kind, the festival was a convergence of commerce and entertainment, bringing together buyers and sellers in the MSME ecosystem, and hordes of fun-seekers who were entertained with thrilling performances by A-list entertainers, including Adekunle Gold, Wande Coal, Teni, Young Jonn, BNXN, Ayo Maff, SB Live and EmmaOMG. The list also included some of Nigeria’s most sought after DJs such as DJ Neptune, DJ YK Mule, DJ Baddo while Gbenga Adeyinka the 1st and Larry J dished out rib-cracking comedy performances.
Held from 23rd to 25th Day of December 2024, at the iconic Mobolaji Johnson Arena, Onikan Stadium, Lagos, the Lagos Shopping Festival saw thousands of fans throng the main venue and select Lagos malls during the three-day period to bag the latest bargains from local and top global brands.
The Nigerian Naira experienced mixed movements in the foreign exchange markets on Monday, as it depreciated to N1,665 per dollar in the parallel market, down from N1,660 per dollar recorded over the weekend.
In contrast, the official exchange rate saw the Naira appreciate to N1,534.56 per dollar, improving slightly from N1,535 per dollar last Friday, according to data released by the Central Bank of Nigeria (CBN).
RELATED NEWS: Naira Weakens Against Dollar Amid FX Shortages
This reflects a marginal gain of 44 kobo in the official Nigerian Foreign Exchange Market (NFEM).
As a result, the gap between the parallel market rate and the NFEM rate widened to N130.44 per dollar, compared to the N125 per dollar margin recorded over the weekend.
Joint Security Team Rescues Four Kidnapped Victims In Sokoto
EFCC Summons Okoya Brothers Over Viral Video Allegation
![Gospel Singer, Moses Bliss Announces Engagement [Photos]](https://biztellers.com.ng/wp-content/uploads/2024/01/IMG_20240119_143217_400_x_300_pixel-80x80.jpg){kind=tracking}
Moses Bliss, Wife Celebrate Arrival Of First Child
BREAKING: Ohanaeze Ndigbo Elects Former Senator, Mbata As New Leader
Presidency Fires Back At Gov Bala Mohammed Over Criticism Of Tinubu’s Leadership
FG Recovers $52.88m Of Diezani Alison-Madueke’s Loot From U.S
OSSG Raises Alarm Over Murder Plot By APC Chieftain
NCC, SMEDAN, NAICOM, SEC, Others Set for SUPERNEWS SMEs Conf June 13
Sahara’s Tonye Cole resigns from GPHCDA
Niger Delta Avengers: President Buhari Reads riot Act …considers the carrot and stick option
Oando opens ultra-modern petrol station in Lagos
