BY BAMIDELE FAMOOFO
The Central Bank of Nigeria and the Ministry of Finance have been called upon as a matter of urgency to execute a comprehensive review of the economy with the view of upping the purchasing power parity of Nigerians.
The Independent Shareholders Association of Nigeria which made the call in a statement said there is an obvious need for the two bodies to use the instrumentality of the monetary and fiscal rates to stem the ravaging hunger and deprivation in the land.
ISAN declared this via its National Coordinator, Anthony Omojola, maintaining that the advice is that the monetary and fiscal authorities should emulate other nation’s across the world by introducing palliatives such as un-banning of certain vital food imports temporarily, grant tariff reliefs to certain industries and reducing taxes for some sectors.
According to him the Federal Government would be deceiving itself if it fails to acknowledge the economic poverty ravaging Nigeria across the board; arising from the war in Europe, devastating insurgency and insecurity in Nigeria.
He said the situation was worsened by food crisis, education crisis, the fuel crisis, debt crisis and the massive on-going theft in the oil and gas sector that have ensured that the country missed the global windfall for oil and gas producers.
As he said, OPEC has improved its quota thrice since the Russia-Ukraine war but we are unable to benefit, yet we have debts to pay.
ISAN maintains that the “Federal Government should reduce corruption in the system. There are duplications of charges and taxes. Certain sectors of the economy are being over taxed. Those sectors should be helped.
“The Federal Government has to un-ban those food products like wheat, corn that are essential so that there may be food adequacy. Bread for instance is going out of reach of the masses of Nigerians as a result of wheat shortages. But the fear by the government is obviously that imports may negatively affect our exchange rate and further devalue the Naira.
“That is why we are saying there should be a comprehensive review of the economy so that we can ably weigh the needed changes and their impacts on the overall economy. CBN should reflate the economy,” he said.
Meanwhile, the shareholders of Flour Mills of Nigeria have approved the management’s N2.15 dividend payout for 2022 financial, among other resolutions, calling on the management to declare a bonus payout amid improved performance over the years.
“The Federal Government would be deceiving itself if it fails to acknowledge the economic poverty ravaging Nigeria across the board; arising from the war in Europe, devastating insurgency and insecurity in Nigeria”
Part of the resolutions approved by the shareholders at the 62nd Annual General Meeting in Lagos was to authorize the directors to raise additional capital for the company to the tune of N200 billion.
The national leader emeritus of ISAN, Sunny Nwosu, who joined other shareholders at the company’s AGM, commended the company’s 2022 performance as turnover crossed the N1trillion mark, maintaining that 2015 was the last time the management of FMN awarded investors with bonus payout.
According to him, “the 2022 financial performance of FMN was impressive and we hope it is maintained in coming years. A bonus was paid last 2015 and it does not cost the management anything to give shareholders a bonus.”
The chairman, Progressive Shareholders Association of Nigeria, Boniface Okezie commended FMN’s 2022 performance despite challenges, urging the management to maximize the opportunity provided by the war between Russia/Ukraine to extend food production in Africa.
Speaking to shareholders at the AGM, the Chairman of FMN, John Coumantaros, who was represented by Vice- Chairman, Paul Gbededo, said despite the prevailing challenges around the world especially as global economies struggled to recover amidst supply chain disruptions caused by the prolonged effect of the COVID-19 pandemic and worsened by the ongoing conflict between Ukraine and Russia, the Group has delivered another impressive performance.
He noted that businesses and consumers in Africa are facing significant peculiar and aggregate economic challenges over the increasing volatility of the global economy.
“Our group aims to counteract some of these headwinds by remaining committed to increasing the local content of its inputs and outputs. Undoubtedly, the need to add value further upstream on the supply chain and lessen dependency on imported raw materials has become more crucial.
“Similarly, following best practices, we are developing a flexible and agile route to market strategy by investing in expanding and improving our group-wide sales. Marketing, and distribution capabilities,” he stated looking ahead.
Speaking also, the Group Managing Director/Chief Executive Officer, FMN, Omoboyede Olusanya on the 71.69 per cent acquisition of Honeywell Flour Mills noted that the company group has become a more resilient national champion with an ambition of becoming a market leader in Africa.
“Given the size of the acquisition, it is fair to say that we have created even more opportunities for our stakeholders.”
Looking to the future, he said, “Without giving too much away just yet, I can assure shareholders that our consumers are up for an exciting time as we gradually introduce the numerous innovative ideas we have in the pipeline.
“Over time, we will invest heavily in expanding our route to market strategy to encompass other segments, which we will accomplish by focusing on an even deeper understanding of our consumer needs by innovating.”
