31 Aug

Daily Watch – Manufacturers abandon Nigerian raw materials, Kaduna port gets upgrade

  • Recently released data is showing that manufacturers are choosing to source more of their raw materials needs from foreign markets rather than from local sources. Some analysts are seeing this as clear evidence that the country‚Äôs raw materials are either of poor quality or in short supply. Others are attributing this problem to a lack of value addition, and the absence of processing industries such as petrochemical plants or steel complexes.
  • The federal government is upgrading the Inland Container Nigeria Limited (ICNL) to a dry-port status, giving the container depot the right to become the port of origin and destination. The dry-port, which is currently known as Kaduna Inland Dry Port, will be able to receive and export consignments directly from and to any seaport in the world. Northern-based businesspeople face huge challenges, following the distance from, and the congestion in Lagos seaports, which add to the cost of doing business. On arrival of any container destined for the Kaduna Inland Dry-Port in any seaport in Lagos, the operator of the dry-port would lift the cargo using rail wagons and other haulage companies to the dry-port, where the importer is expected to clear and take delivery of the consignment.
  • The Nigerian Stock Exchange is still playing a catch-up role in its efforts at reducing dealing members infractions, following an upsurge in the number of sanctioned operators. Between January 2013 and April 2015, the NSE has sanctioned 7 dealing member firms and 3 individuals. Some dealing member firms of the NSE have been referred to the Economic and Financial Crimes Commission (EFCC) for unauthorized sales of their clients shares. Some of them are under investigation, while others are in court.