Nigeria’s Economic Outlook Bolstered by Expanding Output, Business – Friendlier Policies

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by Godwin Okafor

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In the just concluded week,  the Nigerian economic outlook was bolstered amid positive reports on results of the October PMI survey and the improvement on the country‟s Doing Business ranking among other things, Naija247news understands.

The October 2017 survey report on purchasing and supply executives from manufacturing and non-manufacturing businesses as released
by Central Bank of Nigeria showed sustained expansions in both the manufacturing and non-
manufacturing businesses.

The boost in real sector activity could be partly attributed to growing demand for goods and services on the back of improving purchasing power domestically. This, coupled with favourable ongoing economic reforms to improve the business environment, led to a strengthening of business sentiment. The reforms also include recent efforts by monetary authority at improving foreign exchange supply to end users.

According to the survey, the manufacturing composite PMI stood at 55.0 index points in October 2017 (albeit lower than 55.3 index points in September 2017). The slower
increase in manufacturing composite PMI was driven by slower expansion in production level, to 58.4 in October (58.8 in September); slower expansion in production level
to 58.4 (from 58.8); and slower increase in new orders to 52.8 (from 53.5).

However, there was slower contraction in exports at 35.5 (from 30.4); faster growth in employment to 53.1 (52.8); faster expansion in purchase of raw materials/inventories, to 56.5 (from 56.4);
while supplier delivery times shortened, to 55.5 (more than 55.4), possibly due to improved capacity at input suppliers‟. Expansion in input prices slowed to 62.7 (from 65.7) – indicative of slowing inflation – while output prices followed suit, expanded slower to 55.4
(from 58.2).

Of the sixteen manufacturing sub- sectors under survey, twelve sectors recorded expansions (less than fourteen in the preceding month) – manufacturers of „Textile, apparel, leather & footwear‟ and„ Paper products‟ recorded expansions: at 57.6 (from 51.4) and 59.8 (from 53.7) respectively; however, cement manufacturers recorded contraction, at 46.7 (from 54.1).
On the other hand, the non-manufacturing sector extended its advance as the non-manufacturing composite PMI increased to 55.3 in October 2017 (from 54.9 in September 2017). This was partly driven by expansion in business activity and incoming business to 57.5 in October (faster than 56.8 in September) and 55.7 (faster than 55.4) respectively; while work in progress expanded faster to 53.4 (from of 52.9).
In a related development, Nigeria improved on the Doing Business Ranking from169th
in 2017 to 145th in 2018.

The leap in Nigeria‟s progression in the ease of doing business was attributed to Nigeria‟s
improved efforts at facilitating the rate of starting a business by allowing electronic stamping of registration documents; increased transparency in the issuance of construction permits by publishing all relevant regulations, fee schedules and pre-application requirements on
line; and facilitation of property registration by publishing the list of documents, fee schedules,
service standards for property transactions, in troducing a specific and independent complaint mechanism, and by publishing statistics on land transfers.

Nigeria also strengthened access to credit by adopting a new law on secured transactions and establishing a modern collateral registry while also improving access to credit information by guaranteeing borrowers the legal right to inspect their credit data from the credit bureau
and providing credit scores to banks, financial institutions and borrowers.

On payment of taxes, Nigeria introduced new channels for payment of taxes and mandating taxpayers to file tax returns at the nearest Federal Inland Revenue Service (FIRS) office. Doing Business measures aspects of business regulation and their implications for firm establishment and operations
.

Godwin Okafor
Godwin Okaforhttps://naija247news.com
Godwin Okafor is a veteran Financial Journalist, Internet Social Entrepreneur, and the visionary Founder of Naija247news Media Limited. With an extensive career spanning over 16 years in financial journalism, Godwin possesses a wealth of experience that seamlessly bridges both traditional and digital media landscapes. His journey in journalism commenced at Business Day, Nigeria, where he laid the foundation for his prolific career. In 2010, Godwin took a bold step by founding Naija247news Media, a platform that has since become a prominent player in delivering timely and accurate news. Educationally, Godwin Okafor holds a Bachelor's degree in Industrial Relations and Personnel Management from the prestigious Lagos State University, Ojo, Lagos. His commitment to continuous learning led him to the Lagos Business School, where he further honed his skills. Additionally, he is recognized as a Fellow of the University of Pennsylvania, having successfully completed the Wharton Seminar for Business Journalists. Throughout his illustrious career, Godwin has earned acclaim by winning numerous journalism awards, a testament to his dedication to excellence in reporting. Beyond his role as a Financial Journalist, Godwin Okafor wears the hat of the Chairman at Emmerich Resources Limited, the publishing entity behind Naija247news. His visionary leadership has played a pivotal role in shaping the media landscape and establishing Naija247news as a trusted source of information. Godwin Okafor's multifaceted expertise, commitment to journalistic integrity, and leadership in the realm of business journalism underscore his influential presence in both the media and entrepreneurial spheres.

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