Business

High Rates Hike Weakening domestic production- MAN

Published

2 years ago

September 26, 2024

OCHEFA

516 Views

The Manufacturers Association of Nigeria (MAN) , said on Thursday that the continuous rise in interest rates by the Central Bank of Nigeria is weakening domestic production of finished goods.
MAN, therefore, called on the CBN to stop the rate hike and explore more of the monetary-fiscal policy handshake options to curb inflation.

This was the MAN reaction to the September increase in the Monetary Policy Rate (MPR) by 50 basis points, from 26.75% to 27.25% by the apex bank.

Segun Ajayi-Kadir, the MAN Director-General, said that despite the manufacturers expectation for a rate hold or reduction, given that price increases had slowed for the second consecutive month in August to an annual rate of 32.2%, the MPC opted for a tightening of monetary policy.

“The decision to raise the MPR to 27.25% has far-reaching implications for the manufacturing sector in Nigeria,” said Ajayi-Kadir.

Over the first six months of the year, manufacturers incurred more than ₦730 billion in capital expenses due to the continuous rise in interest rates imposed by commercial banks

He said: ” The continued increase in interest rates, which now totals 15.75 percentage points since May 2022, would compound the challenges faced by the sector, including rising production costs in the face of declining consumer purchasing power.

With the increase in borrowing costs, manufacturers will now pay over 35% on their credit facilities.

Clearly, this will lead to increase in production costs, higher prices of finished goods, lower competitiveness and production capacity expansion.

The impact of higher interest rates goes beyond compounding the challenges of manufacturers, it stifles opportunities for investment in crucial areas such as technology, retooling, and expansion within the manufacturing sector.
Manufacturers will, all the more, be compelled to choose servicing existing credit facilities over expansion and investment in new product lines.

For instance, over the first six months of the year, manufacturers incurred more than ₦730 billion in capital expenses due to the continuous rise in interest rates imposed by commercial banks.

This dilemma hampers innovation, productivity and growth.”

Business

Meta set to charge WhatsApp Business messages from October 1

For example, a Nigerian fintech company sending 500,000 chargeable utility messages could incur about $5,050 in fees from Meta alone, excluding charges that may come from third-party providers or software platforms used to manage the messaging service.

Published

2 days ago

August 28, 2026

OCHEFA

20 Views

Businesses using Meta’s WhatsApp Business Platform will begin paying for certain messages sent to customers from October 1, 2026, under a new pricing structure announced by the company.

The change applies to organisations that use the WhatsApp Business Platform, formerly known as the WhatsApp Business API, to manage customer communication on a large scale.

Regular WhatsApp users and small businesses using the standard WhatsApp Business app are not the main targets of the new charges.

Under the revised system, the amount businesses pay will depend on the type of message being sent.

Utility messages, including payment alerts, order confirmations and other service-related updates, will cost about $0.0101 per message, while marketing messages will attract a higher fee of approximately $0.062 each.

Although the individual charges appear relatively small, companies that send large volumes of messages could see their communication expenses rise significantly.

Business

Dangote Refinery Suspends Petrol Sales To Lagos Depots

Dangote Refinery is prioritising markets where imported products are either unavailable or less dominant, rather than adding more supply to Lagos, which receives substantial volumes of imported petrol.

Published

2 days ago

August 28, 2026

OCHEFA

24 Views

Dangote Petroleum Refinery has suspended coastal sales of Premium Motor Spirit (PMS) to depot owners and importers in Lagos.

People familiar with the refinery’s operations said that the move is deliberate, aimed at redirecting locally refined petrol to areas where imported supply is scarce.

The suspension is ongoing. A source said: “The suspension of coastal sales to Lagos is still ongoing. It is aimed at redirecting products to locations where imported products are unavailable. Lagos has quite some imported petrol.”

The strategy is intended to ensure locally refined petrol reaches areas where it is most needed.

The decision comes amid concerns at the refinery over the volume of imported petrol entering Nigeria.

According to data available to the refinery, imported PMS accounted for about 43 per cent of total petrol supplied into Nigeria in July

Business

Naira Exchange Rates Friday, August 28

Today, the Naira Black Market exchange rate for 1 Great British Pound (GBP) is 1900 Naira. This means that you can get 1900 Naira for every 1 Pound that you exchange.

How much is 100 pounds in naira today?
At the current black market rate of 1900 per pound, 100 British Pounds = 190,000 Naira.