…Posts 9.69% hike in subscription income, targets N86m in 2019
Association of Food, Beverage and Tobacco Employers (AFBTE), reported a total income of N102, 033, 930 for the year ended December 31st 2018, which represented an increase of 22.32 per cent, as against N83, 416,058 realised in the corresponding period of 2017.
The association, who recently organised its Annual General Meeting (AGM) in Lagos, disclosed that the association the subscription was increased from N75, 405,000 in 2017 to N83, 500,000 in 2018.
However, targeting to increase its subscription income to N86 million, out of which a total sum of N69.5 million has been realised as at the 30th of April, 2019.
The association audited financial statement for the year under review, showed that investment income improved to N2, 468, 859 in 2018, compared to N470, 128 reported in the previous year.
Further analysis of the Association financial statement indicated that there was an increase of 29.78 per cent in its expenditure for the year 2018, spending the total sum of N67, 613, 439 compared to N52, 100, 654 spent in 2017.
Although, the associated explained that the main reasons for the increase in its expenditure was because of the provision for depreciation in the year under the review went up by slightly above 100 per cent to N2, 676, 53, due to the full year’s provision made for the official vehicle acquired in December 2017.
Commenting on these developments during the year under review, President of the Association, Chief Patrick Anegbe, said that the business operating environment in the year under review experienced the usual challenges which took its toll on companies
According to him, in 2018, the industry was highly troubled due to the influx of imported the finished product, which negatively affected the patronage of locally manufactured product, which negatively affected the patronage of locally manufacture the product and eroded the profit margins of the organisation” he said.
Anegbe further attributed the slow pace of the income realization in 2018 to the rehabilitating state of country’s economy and the delay in several actions of the Federal Government
“Despite coming out of recession as announced by the Federal Government in Q3 of 2017, in Nigeria, the business environment still remains fragile and weak in the course of 2018.
As a result, the sector suffered a 7.0 per cent decline in pre-tax profit because of the slow pace of recovery in the economy.”
He explained that delay in the passage of 2018 budget and insecurity in some part of the slow part of the country, constrained business operations in those areas, adding that there was also the issue of contraction in yield from federal government debt instruments, which affected accessibility to funds from the bank.
Quoting the Nation Bureau of Statistics (NBS) report on the country’s annual Gross Domestic Product (GDP) the growth rate in 2018, he said, “ There was a slight improvement. It stood at 1.92 per cent, compared to 0.82 per cent recorded in 2017.”
“With respect to manufacturing, Q1of 2018 recorded a 3.39 per cent growth compared with 1.36 per cent for the same period year.
In Q2, it was 0.68 per cent compared with 0.64 per cent for the same period in 2017, In Q3 of 2018; the sector recorded a 1.95 per cent growth compared with a paltry 0.14 per cent of 2017.
The implication of this data is that the manufacturing sector is usual did not significant do better in 2018.
“The Nigerian manufacturing sector is dominated by our industry and as such its products could generate a major value of output.
There is a need, therefore, for the federal government to walk the talk by collaborating with our association in ensuring that the environment is conducive for business to thrive.
“One of the steps that should be taken is a continuous dialogue with our association and its members. The government should also make strenuous effort to enforce its policy on ease of doing business”, he charged.