Business
Experts Sound Alarm As Company Failures Surge In Nigeria
The recent news of GlaxoSmithKline (GSK) pulling out of Nigeria sent shockwaves throughout the nation not long ago.
With a presence spanning 51 years, GSK has stood as a prominent pharmaceutical company, manufacturing renowned prescription medications, vaccines, and consumer healthcare products such as Panadol, Macleans, Andrew Liver Salt, and Amoxil.
This development has raised concerns among Nigerians for an evident reason.
Over the past decade, Nigeria has witnessed a gradual departure of multinational enterprises, paralleled by the unfortunate decline of a growing number of local businesses.
In the last five years alone, companies like ShopRite, Procter & Gamble, Surest Foam Limited, Mufex, Framan Industries, MZM Continental, Nipol Industries, Moak Industries, Deli Foods, and Stone Industries, among others, have either ceased operations entirely or partially.
Hence, the news of GSK’s imminent departure, seen by numerous Nigerians as an additional blow, has intensified concerns about the sustainability of the nation’s manufacturing industry.
These concerns are amplified by the alarming statements emerging from key figures within Nigeria’s manufacturing sector.
As previously reported the Poultry Association of Nigeria (PAN) issued a joint statement signed by its National President, Sunday Ezeobiora, and the Director-General, Onallo Akpa.
The statement expressed alarm about the surging price of maize, which is leading to the closure of poultry farms.
Likewise, Senator Walid Jibrin, a former chairman of the Textile Manufacturers Association of Nigeria, expressed his distress over the demise of 155 Nigerian textile companies within a short span of time.
Additionally, Francis Meshioye, the President of the Manufacturers Association of Nigeria (MAN), warned that the implementation of an electricity price increase could lead to more multinational companies departing from Nigeria.
In the past week, during a meeting with Ajay Banga, the President of the World Bank, President Bola Tinubu conveyed his commitment to addressing Nigeria’s challenges through his recent policy initiatives.
The nation’s economic challenges have generated deep concern among Nigerians from various sectors, prompting many to wonder why the government has struggled to control the situation.
Speaking with DAILY POST on Monday, Prof. Godwin Oyedokun, an accounting and financial development expert from Lead City University, Ibadan, placed responsibility on the government for the increasing count of business closures in Nigeria.
He asserted that if President Bola Ahmed Tinubu had established essential frameworks, including appointing ministers, within the initial 30 days of his tenure, the present economic unease might have been mitigated.
He said: “It is not only international companies exiting Nigeria, local firms, too, have collapsed. The truth is that times are hard for everyone. It isn’t easy to live and breathe in Nigeria today. I don’t want to be part of those criticising the current regime, but the blame is on them because they knew the problems of this country from day one.
“I expected Tinubu’s administration to stabilise governance, but that is not the case. Assuming the political offices have been filled, the anxiety in the economy will have been reduced. People do business to expect profit in returns, but collapse is imminent if that is not the case.”
Prof Oyedokun recommended that a general palliative by way of reduced tax should be given to the working population and firms.
He said “I would love a situation where the government reduces personal income tax. The government cannot guarantee the salaries of private companies, but it can lower personal and company income taxes. So that companies and individuals can breathe, that would have a general palliative that would cut across the working populace,”
The Director of the Centre for the Promotion of Private Enterprise (CPPE), Dr Muda Yusuf, who also spoke on the tough situation in which manufacturing companies found themselves, pointed an accusing finger at the Central Bank of Nigeria (CBN).
He said: “The revaluation of foreign exchange liabilities amid the reforms in the forex market would predictably result in the current outcomes for companies with significant foreign exchange obligations.
“It is a question of the crystallisation of exchange rate risk. It is quite predictable. Using an exchange rate of N460 to the dollar to value these forex exposures over the past few years was purely academic. The reality is what is unfolding now.” It added
Nigerian comedian and popular skit maker, Chibuike Josh Alfred, known by his stage name Josh2Funny, has shed light on the profitability of the content-creating industry.
In a recent interview with Echo Room, Josh2Funny highlighted the impressive financial potential that content creators can achieve, noting that it is possible for them to comfortably afford multiple luxury cars, including up to four Lamborghini vehicles.
Speaking candidly, Josh2Funny emphasised that content creation has become an extremely lucrative field due to the constant demand for fresh and engaging material. “If you want to buy four Lamborghini from content creation, you can buy it,” he said.
His remarks underscore the significant revenue opportunities available in the digital content landscape.
Josh2Funny explained that the continuous consumption of online content is what drives its profitability. “What do you think we are doing in the content-creating industry? Are we joking? You all are with your phones, when you’re in the bathroom, when you’re [using the restroom], you’re consuming our stuff. It’s like pure water,” he stated.
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The comedian further elaborated that businesses or industries that deliver products consumed on a daily basis often see the most substantial financial returns. Content creation, with its high rate of daily consumption by audiences worldwide, aligns perfectly with this model.
“People are out there, consuming our content every time,” he said, reinforcing the idea that the reach and influence of content creators have never been more extensive.
Josh2Funny’s insights reveal why the content-creating industry has become a lucrative career path for many in Nigeria and around the world. With the continuous growth of social media platforms and the public’s insatiable appetite for entertainment and relatable content, creators are finding new and innovative ways to monetize their craft.
This shift not only highlights the potential for significant financial gain but also showcases the evolving landscape of digital media, where influencers, comedians, and skit makers can turn creativity into a sustainable and highly rewarding business.
A safety alert notification by the National Agency for Food and Drug Administration and Control (NAFDAC) in Nigeria issued on October 31, 2024, regarding NIVEA BLACK & WHITE Invisible Roll-on deodorant (50 ml) batch number 93529610, in relation to the general European Union (EU) Rapid Alert System for Dangerous Non-Food Products (RAPEX), has come to our attention.
The batch is said to contain 2-(4-tert-Butylbenzyl propionaldehyde (BMHCA).
In a statement on Saturday, in Lagos, Beiersdorf, the owner of NIVEA brand, assured that the “the Batch No. 93529610 in question has not been marketed in Nigeria and thus never recalled”.
According to the statement, Beiersdorf was well informed that “Based on current European legislation, the use of ingredient 2-(4-tert-Butylbenzyl propionaldehyde (LilialTM) in cosmetic products has been banned from the European markets as of March 1, 2022.”
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It acknowledged that “The batch in question, in fact, expired in January 2022 and was hence at the time fully compliant with the then valid European cosmetic regulation.
“As a responsible corporate citizen, Beiersdorf is working collaboratively with NAFDAC to safeguard the interest of the Nigerian consumers by ensuring that our locally manufactured product meets the global quality standards.”
It maintained that “The safety of our consumers remains our highest priority, consistent with our ethical philosophy as a business.”
In pursuit of this commitment, Beiersdorf’s entire NIVEA product portfolio formulations have been reformulated to be Lilial-free formulas in full compliance with the EU Regulation on cosmetic products well ahead of its Lilial ban coming into effect as far back as March 1, 2022. For instance, the formulation of NIVEA BLACK & WHITE Invisible Roll-on deodorant has been Lilial-free since at least 2020 across the globe, including Nigeria.
“Our trade partners were informed ahead of time and reminded of their responsibility to remove the outdated Lilial-containing products within the legal timeframe to fulfill their obligations with the European Cosmetic Product Regulation,” it added.
The Shell companies in Nigeria teamed up with the Nigerian National Petroleum Company Limited (NNPC Ltd) and other stakeholders to build Information Communication Technology (ICT) centres and a digital library in Nigerian universities in 2024.
Biztellers reports that it initiative is part of their continuing support for education.
Some of the corporate bodies that executed the projects include the Shell Nigeria Exploration Production Company Limited (SNEPCo) and NNPC Ltd, and the Nigerian Content Monitoring and Development Board (NCDMB).
The benefiting institutions were, the Niger Delta University, Amassoma, Bayelsa State, which got a digital library in April, the Sa’adu Zungur University (formerly Bauchi State University), Gadau in Bauchi State, where an ICT Centre was commissioned in July, by The Shell Petroleum Development Company of Nigeria Ltd (SPDC) as part of the Joint Venture with NNPC, TotalEnergies and NAOC.
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In what would sound like singing-off on the educational intervention initiative for 2024, the Federal University of Technology, Owerri (FUTO), overflew with joy at the unveil of a world-class engineering design studios and ICT hub, courtesy of the SPDC, NNPC Ltd and other Joint Venture partners collaborated with NCDMB.
Reflecting on the three facilities, Country Chair, Shell Companies in Nigeria, and Managing Director, SPDC, Osagie Okunbor, said, “This is Shell working to power lives in Nigeria. The projects have changed the academic and physical landscapes in the three universities and linked the students and lecturers to the global learning arena.”
The facilities at FUTO include two state-of-the-art engineering design studios and a fully furnished 100-seater ICT lecture hall, equipped with computers and smartboards with dedicated power and water supplies. FUTO was selected for the project as part of the “institutional strengthening” in the catchment area of SPDC’s Assa North Ohaji South Gas Development Project. They were launched at a colourful ceremony attended by representatives of the Imo State Government and principal officers of the university.
Imo State Governor, Hope Uzodinma, represented by the Commissioner for Digital Economy and E-Government, Dr. Chimezie Amadi, said, “We deeply appreciate the efforts of our partners in NNPC, SPDC, Total Energies, and NAOC JV, who have invested in the future of Imo State by supporting this critical project. Your commitment to human capacity building aligns perfectly with our goals, and together, we will continue to drive innovation, skills development, and sustainable economic growth for our people.”
Okunbor’s address at the commissioning was read by General Manager, External Relations, Igo Weli, in which he expressed happiness “that the collaboration of SPDC, Joint venture partners, NCDMB, and FUTO has resulted in this successful social investment project that demonstrates our commitment to improving access to quality education for every Nigerian.”
On his part, the Executive Secretary NCDMB, Engr. Felix Omatsola Ogbe, called on Nigerian institutions to domesticate the advancements in AI and other technologies.
“Our AI must understand Igbo, Hausa, Efik, Yoruba, and other local languages,” he said, speaking through Dr. Ama Ikuru, the Director in charge of Capacity Building.
“We must leapfrog the innovations of other nations and become a net exporter of advanced technology to achieve the lofty ideals of Nigerian content development,” he added.
The Chief Upstream Investment Officer, NNPC Upstream Investment Management Services, Bala Wunti, said in his address which was read by the Senior Advisor Stakeholders Relations, Halimat Wilson, “Innovation thrives in an environment where ideas can be freely exchanged and developed. The Engineering Studio and ICT Hub is designed to be such a place where students, researchers, and faculty can collaborate on projects, share knowledge, and push the boundaries of what is possible.
Welcoming guests earlier, FUTO Vice Chancellor, Prof Nnenna Oti, thanked the sponsors of the project “for a landmark donation” to the university.
The Shell Companies in Nigeria have been education since the 1950s through scholarships and other initiatives. These efforts have resulted in the award of thousands of secondary, undergraduate and postgraduate scholarship awards, provision of educational infrastructure and establishment of sabbatical and internship programmes as well as centres of excellence in several universities.
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