OYEDEJI KAYODE
I just saw Nestle Plc Half Year Results. They follow the same pattern with other manufacturing Companies that have realesed interim results on the Exchange.
The significance is clear. One way to gauge the performance of the economy is to analyse trends of sales of manufacturers products. Virtually, all Multinationals are back to impressive profit-making.
Yes, the rise in revenue, taken alone, can be a bit ambiguous because revenue surge can also be as a result of inflation or rise in price of a particular item. But when competitive items sales or revenue rises more rapidly above or ahead of inflation, there is a clear possibility or indication that demand and sales have gone up.
The issue is demand for households and consumers items is on the rise in Nigeria as inflation moderates and price stability is gradually achieved.
The economy is on the rise. Income is rising as Inflation rates flatten out.
Those who buy basic household items are the middle class. A sharp rise in sales and revenue of household items by manufacturers is indicative of rise in income, improvement in purchasing power, gradual restoration of the middle, working class and general improvemt in the economy.
It is not a joke that the IMF reviewed growth estimate for Nigeria’s GDP from 3.0 to 3.4%. It is an endorsement of improvement in the management of the economy as well as the potential to achieve rapid economic turnaround.
Gradually, the effect of these improvements will trickle down, permeate round and through the different economic levels and give the ordinary man a respite. The bad days are over.