The Nation Newspaper

Category: Industry

  • Ban finished goods import, eliminate fake products, says industrialist

    AN industrialist, Chief Erick  Umeofia, has called on the Federal Government to ban importation of finished goods and ensure the elimination of substandard products.

    Speaking in an interview in his office in Lagos, Umeofia, the Chief Executive Officer (CEO), Erisco Bonpet Group, manufacturers of consumer goods, said massive importation  kills local manufacturing, and creates jobs for those economies where  cheap and sub standard goods are imported from.

    He said: “Importation is doing a lot of damage to us, so, we are appealing to the relevant agencies like National Agency for Food, Drug Administration and Control (NAFDAC), Standards Organisation of Nigeria (SON), and the Nigerian Customs to stop paying lip services but to control and monitor effectively the influx of these substandard products that litter our markets.”

    Umeofia pointed out that influx of foreign goods is one of the dangers local manufacturers and producers are facing, because the cost of production here is quite high. “The power situation, the  high production cost  compared  to the low  production cost in Asia make imported goods from those Asian countries cheaper and at times making our local substitutes uncompetitive,” he said.

    The industrialist argued that if the trend is not checked, many manufacturers in no distant time will go under. He, therefore, asked that fiscal policy be put in place to discourage the importation of goods and services.

    To achieve this, Umeofia canvassed high tariffs on imported goods with local alternatives.

    He said: “It is not too difficult to take a census or to sample goods that are being produced here and such goods; government should have a deliberate policy from ministry of finance hiking the tariff of the imported ones.”

    He said though the world is a global village, it has become imperative on government and policy makers to have the political and patriotic will to disallow the importation of fake and substandard goods into the country.

  • ‘Improve electricity supply to SMEs’

    THE government has been urged to intensify efforts at improving electricity supply, especially to Small and Medium Enterprises (SMEs), to boost their performance.

    Eleganza  Industrial City Limited Deputy Managing Director Mrs Folashade Okoya gave the advice at a briefing by EOM Communication Limited in Lagos.

    She, however, praised the government for its support for SMEs.

    She advised the government to create moretechnical and train-ing schools  for youths. “The schools will provide the needed manpower. Instead of establishing more universities, it is better to have training schools that will provide the needed technical skills that will lift the economy,” she advised.

    Mrs Okoya said her company takes the issue of youth empowerment seriously. According to her, over 2000 workers are in its employ, with plans to engage and empower more youths.

    are now available in homes in Nigeria, other African countries and Europe, attesting to their high quality and acceptability, s

    She said the company has in 40 years of operation produced durable, high quality household items, such as chairs, pampers for babies, pads, cooling boxes, cooling warmers and boxes of various designs.

    She said the unique thing about Eleganza products is  they are  locally produced but internationally accepted. “This is the reason the products are now enjoyed in every home in Africa, even in Europe. We are a family company operating for over 40 years and growing stronger,” she said.

    The Eleganza boss added that the company’s household items that serve diverse purposes come at competitive prices. “Our chairs are designed with 68 different colours, durable and affordable. We are here to make good products for Nigerians, other African countries and even Europe,” she said.

    Mrs Okoya said the ultimate goal of the company, with Nigerians and expatriates in its employ, is to ensure that Eleganza products get to every household, noting that its locally-made chairs are utilised in homes, schools, meetings, hotels, churches and other gatherings.

    She said the company has aquired a 35-acre piece of land for its expansion programme.

     

  • ‘Forex restriction catalyst for local manufacturing’

    The Central Bank of Nigeria (CBN) Foreign Exchange (forex) policy barring importers of certain items from accessing forex is a blessing in disguise, the Chief Executive Officer (CEO), Spectra Foods Ltd., Mr. Duro Kuteyi, has said.

    To him, it will serve as a catalyst to local manufacturers, especially Small and Medium Enterprises (SMEs),

    Kuteyi, who spoke with The Nation, described the policy as a right step in addressing unbridled importation, which is one of the major challenges facing local manufacturing. He said the policy was an affirmation of the Federal Government’s readiness to promote the backward integration policy of encouraging local sourcing of raw materials hitherto imported into the country.

    “It is good for manufacturers. In the past, Nigeria was a dumping ground for imports. The dumping will definitely reduce. Like someone importing apple using scarce foreign exchange to import apple when we have fruits wasting away,” Kuteyi said, pointing out that the policy was a major stimulant for local productivity.

    According to him, the policy is a shot in the arm of local manufacturers, especially SMEs. “The policy is good for manufacturers, particularly SMEs, because it is directed at reducing imported finished goods. “It’s an opportunity for SMEs’ capacity expansion, as they have the chance of enjoying higher patronage with less competition from finished imported goods,” he said.

    The industrialist said prior to the introduction of the policy, imported commodities dominated the manufacturing and industrial landscape, posing a serious threat to locally- manufactured products. He said local products suffered lack of patronage, and could not stand competition with foreign products, considering consumers’ penchant for foreign goods.

    Kuteyi lamented:“We SMEs in Nigeria produce and find it difficult to sell in the market. Some supermarkets don’t take our goods because they have the belief that they make more profit bringing imported materials to sell on their shelves. If they take products from SMEs, it is as if they are rendering a favour.

    “But when they import, they pay in advance and display on their shelves. They don’t encourage SMEs to thrive in Nigeria. And this has affected SMEs in Nigeria to the point that they cannot even expand.These are the things that the new policy will solve.”

    Kuteyi, however, said the policy will not affect those who are genuinely importing raw materials for their factories. “When you look at the genuine manufacturers, who depend on imported raw materials, these are the ones that should enjoy forex allocation. Like those who are into the making of laminated bags, rolls for manufacturers. These are packaging materials for manufacturers,” he said.

    While reiterating that the forex policy would encourage SMEs, he said there is need to address other challenges militating against SMEs’ productivity, particularly inadequate funding. According to him, many SME owners find it extremely difficult to raise capital for purchasing requisite machineries.

    The industrialist, who insisted that under-funding remained the bane of SMEs, said there is need to ensure that SMEs, who engage in manufacturing, get approval to import their machineries. According to him, about 60 per cent of SMEs depend solely on local raw materials that need not be imported and as such, should be supported to finance their businesses.

    “If you look at the SMEs, a lot of them cannot raise money to import raw materials, they buy the raw materials from importers. This is a special case that Federal Government should look at,” he said, adding that Bank of Industry (BoI) can make recommendation for those SMEs they have given money to or have bought machineries for that depend on raw materials so that their banks can assist them in getting forex for their raw materials.

    Kuteyi, however, said the forex restriction has resulted in increase in prices. “It is either it reduces our profit or we also increase our prices to meet up with what the difficulty in getting forex has caused. For example, there is a company making carton for us but because they could not get access to forex, they reduced their production meaning that they reduced their staff. So, this is also affecting an average manufacturer,” he added.

  • Making non-oil export economy’s heartbeat

    Making non-oil export economy’s heartbeat

    Can the Export Rediscounting and Refinancing Facility (ERRF) and the Non-Export Stimulation Facility (NESF) achieve their aims? Yes, they can, argue  experts, who note that the programmes can boost non-oil export and facilitate diversification of the economy, if properly driven by the government. Assistant Editor CHIKODI OKEREOCHA reports.

    They are coming at an auspicious time. The  Export Rediscounting and Refinancing Facility (RRF) and Non-oil Export Stimulation Facility (ESF) designed to stimulate non-oil export are coming when the economy is, perhaps, at its most vulnerable ever. They are coming in the heat of the crisis in the international oil market where the price of crude has been crashing, requiring urgent rejuvenation of the non-oil export sector as a wedge.

    Nigeria depends on oil for 70 per  cent and 95 per cent of her revenue and foreign exchange earnings. But global oil prices have been tumbling since June 2014, putting the finances of Africa’s largest economy/oil producer under severe pressure. From over $120 per barrel in December 2013, oil price nose-dived to around $60 per barrel in December 2014. By December 2015 and January 2016, oil price crashed to as low as $32 per barrel and $27 per barrel, respectively.

    Although, oil price went up slightly above  $30 per barrel, Tuesday this week, the unprecedented fall in oil prices necessitated strident calls on the Federal Government to speed up the development of the non-oil sector and the diversification of the economy to mitigate the impacts made worse by over-dependence on proceeds from crude oil. The new export financing programmes are therefore, seen as indication that the Federal Government may have finally seen the wisdom in reducing the country’s over reliance on export of crude oil as a major source of revenue, which price is prone to volatility.

    The Federal Government through the Central Bank of Nigeria (CBN) said last week that it has designed two export financing programmes known as RRF and ESF to improve non-oil export in the country and achieve total diversification of the economy. The move is seen by not a few experts and stakeholders as a short in the arm of real sector operators especially those in the non-oil export business,

    CBN Governor Godwin Emefiele, who made the initiative known in Abuja at the non-oil exports stimulation conference organised by the apex bank and the Nigerian Export-Import Bank (NEXIM), said the CBN and NEXIM came up with the initiative to encourage exporters expand their businesses as well as provide a pool of funds for commercial banks to enable them support exporters.

    According to Emefiele, credit to the non-oil export sector is currently in the decline, constituting a paltry 0.6 per cent of total domestic credit to the private sector in the past five years, while domestic credit to the economy has been on the rise. He blamed low level of export loans for being largely responsible for the decline in non-oil export revenue receipts from $10.53 billion in 2014 to $4.39 dollars in 2015.

    “The impact of these developments on the country’s export growth potentials is quite significant and has become instructive for stakeholders to dialogue on strategies to expand resources for export,” the CBN boss said, adding that the decline also limited the sector’s contribution to foreign reserve accretion.

    Emefiele said volatility in the international oil market s necessitated the renewed focus on non-oil exports as panacea to the nation’s dwindling foreign reserves. He noted that a rejuvenated non-oil export would stimulate economic growth and development, address the challenges of unemployment and target economic rebirth through the diversification of the Nigerian economy.

    At the conference themed ‘Strategies for Growing Nigeria’s Non-Oil Exports,’ Emefiele pledged that CBN will continue to play a catalyst role in improving export and encouraging local production through collaboration with the Ministry of Agriculture.

    Throwing  more light on the new facilities’ NEXIM Managing Director, Mr. Robert Orya, said the funds would be provided to all banks that lend to the export sector and that the banks would be mandated to give loans to exporters at nine per cent maximum. “If a commercial bank gives you a loan to say that you will return it in a year, the bank will not have money to loan out until you return that money.

    “But this window is such that as soon as this money is given to you, they will bring the credit papers and we refinance and give them the same money that they have given you, so they can give to another person. As soon as they finish disbursing to that person, they will bring the credit papers to us again and we will be able to refinance,” he explained.

    Orya emphasised that the facility is to encourage banks to lend by providing liquidity for them and to also enable them give the non oil facility at a moderated rate. He also said CBN and NEXIM would soon meet to finalise on the quantum of funds to be provided for the facilities and also the modalities for the disbursement.

    At the conference, which attracted about 400 participants across all stakeholders in the non-oil sector, the NEXIM MD said the funding would also aid exporters to improve on quality standards, packaging issues, export productions and operational challenges.

    Indeed, lack of quality control measures has been one of the greatest pains in the neck of exporters, which was why CBN’s latest intervention is music in their ears. “Quality is number one. It is the first thing that ought to be considered as the nation focuses on building a robust export-based economy,” the National President, Association of Systems Management Consultants, Mazi Coleman Obasi, said.

    While describing the initiative as a welcome development, the certified Quality Management Practitioner told The Nation that there is need for the authorities to speed up the adoption of the draft document for the proposed National Quality Policy (NQP) for Nigeria. He wondered why the formulation and subsequent adoption of the document is being delayed despite the fact that the European Union (EU) made available 12 million Euros about two years for the establishment of a National Accreditation System in Nigeria.

    He said the fund was supposed to support the enhancement of the national quality infrastructure, with a view to improving the quality, safety, integrity, and marketability of made in Nigeria goods and services. According to him, the intervention by the EU and other international technical partners was to increase the competitiveness of locally made products at the international market place.

    Under the EU-funded National Quality Infrastructure (NQI) project, implemented by the United Nations Industrial Development (UNIDO), with the support of the Federal Ministry of Industry, Trade and Investment, the objective was to improve the quality of products made in Nigeria so that they can be sold internally and in the international market. It was supposed to help develop a National Metrology Institute (NMI) to ensure that instruments are of international standards, improve the capacity of members of the Organised Private Sector (OPS) to conform to standards.

    The initiative, which was expected to produce a legislation that will contain a NQP and establish an internationally recognized National Accreditation Body (NAB) that will vet the activities of regulatory agencies such as the Standards Organisation of Nigeria (SON) and the National Agency for Foods, Drugs Administration and Control (NAFDAC).

    It will also establish conformity assessment bodies as well as enhance the powers of the Consumer Protection Council (CPC) and other consumer organisations to sensitize consumers on quality standards, and ensure improved consumer protection. But these have so far not happened. Yet, experts say that the creation of these key systems and institutions are supposed to boost the competitiveness of locally made products at the international market place and ensure the global acceptance of products and services from Nigeria.

    Failure by exporters to comply with specified standards is said to be responsible for mass rejection of non-oil exports from Nigeria at entry points in many countries in Europe. The Nation learnt that the rejected exports are mostly in the food and beverage segment where items such as beans, sesame seeds, melon seeds, fried fish, meat, peanut chips and palm oil are said to have been banned from entering Europe till June 2016.

    Non-oil products such as cocoa and cashew nuts were also rejected in many other countries, not only in Europe, with the importing countries citing  exporters’ inability to adhere to global standards, poor packaging, and high level of chemicals, poor labeling, insufficient information on nutritional content, and presence of high level of pesticide residue and presence of Mycotoxins.

    While admitting that lack of quality control measures remains a major hurdle on Nigeria’s quest to ride on the back of a robust non-oil export sector to grow and diversify the economy, the Chairman, Export Group, Lagos Chamber of Commerce and Industry (LCCI), Mr. Obiora Madu, identified other challenges facing non-oil exporters to include lack of incentives, logistics/infrastructure deficiency, and high cost of doing business.

    The Director General, Nigerian Economic Summit Group (NESG), Mr. Laoye Jaiyeola, said although policies to address the constraints of the non-oil sector abound, there is need to harmonise and properly implement them to ensure that they work. “People want to invest in the non-oil export sector, but our institutions and infrastructure must be right, our monetary policies must be consistent and macro economy level stable. But we scare them when we say one thing today and another tomorrow,” he said.

    Jaiyeola said the non-oil sector was fundamental to economic diversification, rapid revenue base expansion, sustainable growth and employment generation. He therefore, advised government to harmonise its non-oil export stimulation policies and ensure consistency in the administration of intervention funds to non-oil exporters.

    The Federal Government’s RRF and ESF are additions to previous policy interventions aimed at giving impetus to the emphasis on the non-oil sector in the face of the economic downturn caused by plunging oil prices. Recall that last year, the Federal Government gave vent to its push for economic diversification when it listing 13 National Strategic Export Products (NSEP) to replace oil. The 13 NSEP were listed in three categories including; agro-industrial- palm oil, cocoa, cashew, sugar and rice); mining related- cement, iron ore/metals, auto parts/cars, aluminium and oil and gas industrial products- petroleum products, fertilizer/urea, petrochemical and methanol.

    The former Minister of Industry, Trade and Investment, Dr. Olusegun Aganga, said then that Nigeria could no longer continue to be an import-dependent country. According to him, the nation was wasting its foreign reserves on imported products most of which can be produced locally.

    The Executive Director of Nigerian Exports Promotion Council (NEPC), Mr. Olusegun Awolowo, also said NEPC under his leadership had long recognised the need to develop the non-oil export sub-sector and had in the process held series of strategic meetings with stakeholders for the development of ideas aimed at improving the foreign exchange earnings by Nigeria through different avenues.

    These, he said, include the development of a 4-year Strategic Plan, One State One Product (OSOP), Nigerian Diaspora Export Programme (NDEX) and the development of new markets for new products. But as highly commendable as govern-ment’s moves to diversify the economy by riding on the back of non-oil export are, the political will to carry such policies to their logical conclusion remains the challenge.

    While real sector operators have thrown their weight behind the emphasis on non-oil economy, insisting that it is more inclusive, growth-oriented and characterized by high economic linkages and more sustainable, the consensus is that the success of the latest initiative, like previous ones, depends on the extent government demonstrates political will to carry them through.

  • Ooni partners Techo-Quip to industrialise Ife

    The Ooni of Ife, Oba Enitan Adeyeye Ogunwusi, Ojaja II, is partnering Techo-Quip Ltd on the creation of an industrial pack in Ile-Ife in Osun State.

    When completed, the pack is expected to house various equipment to process raw materials, such as cassava, palm kernel, rice, yam and plantain.

    Others include fruits juice, paints production, soap and other detergents.

    The monarch has met with the officials of the firm and signed a contract for the supply of the equipment.

    In a statement made available to The Nation, the firm’s Chief Executive Officer, Dr Samson Makinwa, quoted the monarch as saying that the company’s products would assist in the quick industrialisation of the ancient town, adding that there would be regular power, water supplies and access roads to the industrial pack.

    Makinwa said: “The purpose is to help people in the processing and preservation of different agricultural products and other raw materials into finished and semi-finished products in the centre. This will create employment, empowerment and development.’’

    He added that Techo-Quip will supply the equipment and train participants on vocations while the Ife Business School will train them on entrepreneurships.

    Noting that Oba Ogunwusi is a monarch with a difference, Makinwa described him as “transformational, modest and philanthropist’ whom God installed to help his people out of poverty and unemployment.”

  • 70% of electricity consumers not metered, says Amadi

    • As MAN, SERAP kick against 45% tariff increase

    About 70 per cent of electricity consumers are not metered. This has hampered accurate billing by Electricity Distribution Companies (DISCOs), the immediate past chairman Nigerian Electricity Regulatory Commission (NERC), Dr. Sam Amadi, has said.

    He said the DISCOs were given 18 months ultimatum to meter all consumers, but only achieved 10 per cent  at the end of the period. He, however, said NERCdeveloped another framework to ensure that electricity consumers are metered at the end of the period tagged: ‘Credited Advance Payment Metering Implementation (CAPMI).’

    Amadi, who spoke in Lagos during the week, while reacting to the recent tariff increase, said the idea was to allow willing customers advance a particular company with funds for the purchase and installation of meters for their premises. This means that a customer pays for the cost of the meter up front, while the cost of the meter shall subsequently be refunded through a rebate on the fixed charge element of their electricity bills.

    Amadi, however, said in the mean time, estimated bills are still being used to ensure that between 50 and 70 per cent of electricity consumers are not disconnected before the metering processes are completed. He, however, explained the implication of the new tariff regime, noting that tariff allows for more investments in the industry.

    Explaining the parameters used in arriving at the tariff, he noted that the cost of generation and transmission are principally considered with the effect of inflation and exchange rate variations all of which are factored in.

    Amadi gave three reasons for poor supply of electricity as supply, metering and tariff problems, noting that electricity in the country has been hovering around 4000-MW per day, which is meagre compared to the huge population and industrial concentration in the country.

    Factors responsible for the poor electricity supply, he said, include but not limited to the shortage of gas, which is as a result of poor planning, lack of funds for DISCOs to pay for gas, poor prices of gas that does not add incentive to electricity generation and the location of generating plants far away from the gas bearing regions due to poor planning.

    Others are non-readiness of some generating plants, pipeline vandalism, legacy of debt before privatisation and project management, contracting and execution challenges.

    But the Manufacturing Association of Nigeria (MAN) is not impressed with all the reasons given for the tariff increase. MAN President, Dr. Frank Udemba Jacobs, said the tariff hike came despite investigation carried out by the association on their electricity consumption, which showed manufacturers on the average expend N73.12 million on alternative sources of energy monthly.

    “The share of energy cost to total cost of production in the sector is about 40 per cent,” Jacobs lamented, saying that the association is against all manners of tariff increase until their suit in court against NERC is settled. He said anything done in the contrary is prejudicial to the subsisting case.

    Also, the Socio-Economic Rights and Accountability Project (SERAP) has advised the Minister of Power, Works and Housing, Mr. Babatunde Fashola, to “ensure that regulatory authorities are not allowed to get away with the 45 per cent increase in electricity tariff by promoting compliance with the November 2013 ruling on the matter by two United Nations (UN) special rapporteurs.

    SERAP’s advice followed a nationwide protest by the Nigeria Labour Congress (NLC) and Trade Union Congress (TUC) against the increase in electricity tariffs, demanding an immediate reversal of the hike.

    A statement by SERAP Executive Director, Adetokunbo Mumuni, said Nigeria is an important member of the UN and has voluntarily accepted its Charter and treaties, adding that any effort to increase electricity tariffs should be guided by recommendations and dialogue with organised labour and other stakeholders.

    The organisation noted that the UN published the Joint Letter of Concern sent to the administration of former President Goodluck Jonathan where it expressed concerns that access to electricity and regular supply is a significant problem in Nigeria and that it raised eight questions for the government to answer within 60 days.

    The letter, dated November 26, 2013 and signed by two special rapporteurs, expressed concerns that at the end of 2012, Nigeria with a population of about 160 million people only generated about 4,000 megawatts of electricity, which is 10 times less than some other countries in the region with less population.

    The UN special rapporteurs argued that the beneficiaries of the right to adequate housing should have sustainable access to energy for cooking, heating and lighting, adding that the failure of states to provide basic services such as electricity is a violation of the right to health.

    The rapporteurs, Ms. Magdalena Sepúlveda Carmona, Special Rapporteur on extreme poverty and human rights, and Ms. Raquel Rolnik, Special Rapporteur on adequate housing, sent the letter following a petition by a coalition of human rights activists, labour, journalists and lawyers led by SERAP.

    The petition alleged that increase in electricity tariff would have detrimental impact on the human rights of those living in poverty in the country.

    The special rapporteurs wanted answers to the following questions: “Are the facts alleged by SERAP and others accurate? What kind of impact assessments were conducted to gauge the potential impact of the electricity tariff increases on the human rights of people living in extreme poverty in Nigeria?

    The special rapporteurs further said: “If so, provide details, did public consultations take place, including with potentially affected persons and, especially people living in extreme poverty? If yes, please give details of the dates, participants and outcomes of the consultations.”

    Other questions raised are: “Was accessible and culturally adequate information about the measure actively disseminated through all available channels prior to consultation? What measures have been put in place to ensure that the human rights of people living in extreme poverty in Nigeria will not be undermined by the increase in electricity tariff?”

  • FirstBank promotes trade financing

    FirstBank promotes trade financing

    FirstBank of Nigeria Limited, a subsidiary of FBN Holdings Plc, has thrown its weight behind the development of trade financing in Nigeria and beyond.

    This, according to the bank, informed the collaborative effort with FBN Bank (UK) Limited, a subsidiary of FirstBank to sponsor the seventh Annual West Africa Trade & Export Finance, a two-day conference which commenced in Lagos on Wednesday.

    In a statement by the Group Executive, Treasury and Financial Institutions, FirstBank, Ini Ebong, the bank would continue to create and support initiatives that will create business opportunities and investments in Nigeria and the continent.

    FirstBank’s Head, Structured Trade & Commodity Finance, Mr. Ikenna Egbukole will be a panel discussant on the topic: “Tracking trends within West African Banking Sector,” at the event.

    “The progress FirstBank had made in trade finance is further buttressed by its consistent win of the ‘Best Trade Finance Bank in Nigeria’ by Global Finance Awards for seven years including 2015.

    “FBN Bank (UK) Limited has also been named Best Trade Finance Bank in West Africa for five consecutive years by Global Trade Review Awards,” the statement added.

  • FIIRO urges participants on skill acquisition

    FIIRO urges participants on skill acquisition

    The Federal Institute of Industrial Research, Oshodi (FIIRO), Lagos  has urged training participants to use their acquired skills and competencies immediately.

    Its Director-General Dr Gloria Elemo made the appeal during the closing ceremony of the Techno-Entrepreneurship Development Training for Ubulu-Uku Youths, Delta State.

    The three-day training was centred on five technologies, including: smoked fish, fruit juice and high quality cassava flour, instant pounded yam flour, bread and confectioneries baking.

    She also urged them not to be deterred by any challenge or barrier they would face while becoming business owners and employers of labour.

    According to her, acquiring a skill is just one of many steps to becoming the entrepreneur of one’s dream; taking a step further to starting the business is another big step. “I can assure you that you will find several reasons why you cannot start now, though some of these reasons cannot be ignored totally, especially start off fund. I want you to know that once there is a will, there will always be a way,” she said.

    She also told them of  a collaboration between the Institute and the Bank of Industry (BoI), a Federal Government-owned development bank charged with funding projects.

    Dr. Elemo told the participants that by taking part in the training, their names have been registered on the institute’s database to be forwarded to the BoI. She added that BoI would aid them in funding their projects, be it small, medium or large scale.

    She also called on the elders of Ubulu-Uku to set up a fund to assist younger generation especially those that are willing to be self reliant and create employment for further generations. She said through such funds, cluster processing centres would be established in collaboration with local and state government to fast track enterprise take off with equipment and machines.

    The FIIRO DG said they could take their raw materials to these centres, process them for a token and market their products until they generate funds for their own equipment.

    She urged some of them that are desirous of starting immediately to take advantage of the contract production scheme of the Institute to enable them forge ahead.

    The DG while congratulating the participants, told them that she was looking forward to reading their stories in the nearest future, in the Institute’s future edition of “250 Successful FIIRO Entrepreneurs: How we made it”.

    A participant, Mr. Mathew Abioye, who showed a lot enthusiasm for the knowledge he acquired in the training, said if local entrepreneurs are encouraged with funding and the necessary infrastructure they have the capacity to reduce the high unemployment rate of youths.

    He encouraged other participants not to lose faith in the country but rather put in their best to make the training worth it.

  • Chamber reveals award winners

    The Abuja Chamber of Commerce and Industry (ACCI) has announced winners of the 2016 Excellence Awards.

    Its President, Mr. Tony Ejinkeonye, said the chamber represents the interests of the Organised Private Sector (OPS).

    He said the award was born out of the need to institute a sustainable and enduring award process with established and clearly defined criteria and metrics which shall equitably apply to all organisations in any category under consideration at any point in time.

    Ejinkeonye added that the award, which was designed to recognise the achievements of winners, was also meant to promote and encourage other organisations to emulate their resilience and ability to succeed.

    He said the choice of winners and the metrics used in their selection were not determined by the Chamber, but by a team of professional business intelligence report experts and consultants.

    The ACCI president further stated that the award was an avenue to express the support of ACCI to the Federal Government’s efforts in diversifying Nigeria’s economic base and shift attention away from crude oil.

    The awards were in the following categories: Investor of the Year, Corporate Social Responsibility (CSR) Company of the Year, Most Innovative Business Idea, Outstanding Company (Commerce) and Outstanding Company (Industry).

  • MAN advises Fed Govt against EPA

     •Berates NSC’s introduction of ICTN levy 

    The Manufacturers Association of Nigeria (MAN) has advised the Federal Government against signing the European Union (EU) Economic Partnership Agreement (EPA), saying it runs against  the nation’s industrialisation objectives.

    Giving the advice, MAN President Dr. Frank Udemba Jacobs said  signing the agreement would heavily disadvantage local manufacturers and harm the economy.

    He said this was because the nation’s infrastructure is not developed and cannot compete with the developed economies’, or with their products because of differences in the operating environment and cost of funds.

    Jacobs, who spoke with The Nation in his Lagos office, gave instances of countries which closed their borders to imported items until they became self-sufficient in certain products. He listed the countries to include India, China, Britain and Malaysia. He, therefore, urged the  government to borrow a leaf from these countries.

    He also said the International Cargo Tracking Note (ICTN) levy reintroduced by the Nigerian Shippers’ Council (NSC) should be scrapped.

    Cargo tracking is a global initiative put in place to monitor and verify cargoes on transit. It is mandatory for all International Maritime Organisation (IMO) member-countries. In US, it is called 24-hour rule; in Europe it is known as EU Advanced Cargo Declaration; China, 24-hour Advanced Manifest Regulation, etc.

    The policy was first introduced in Nigeria in 2010 and implemented through the Nigeria Ports Authority (NPA). However, it was discarded by the Federal Government in 2013 on the request of the operators in the manufacturing sector due to additional cost to cargo clearances at the ports. However, attempts to re-introduce it has not gone down well with MAN

    In a related development, the MAN boss disclosed that the Standards Organisation of Nigeria (SON) has granted manufacturers a 25 per cent reduction on all administrative charges. He said the association recorded remarkable success in its collaboration with SON, the Nigeria Customs Service and the Federal Government.

    He added that SON had eased importation by issuing annual import permits to manufacturers while also exempting them from the mandatory SON Conformity Assessment Programme in respect of importation of spare parts, machinery, raw materials as well as packaging materials.

    Dr  Jacobs also said there had been improvement in the implementation processes of the Pre-Arrival Assessment Report (PAAR) in conjunction with the Nigeria Customs Service, as MAN members have been profiled for special clearance and admission to the Fast-Track system.

    He added: “A Conflict Resolution Committee has also been set up, made up of the Nigeria Customs and MAN officials to sort out and resolve any issue arising from PAAR  for those that had queries or were not satisfied with the valuation of their imports.

    “The NCS is also addressing the issue of high charges arising from arbitrary upliftment of the values of members’ imports. In fact, the Comptroller General of Customs ordered immediate release of members’ cargoes that were hitherto detained following our interventions.”

    He listed other achievements of the association as securing government’s position on a home-grown policy that promotes import substitution and patronage of made-in-Nigeria products; the partnership the association formed with strategic stakeholders on the maritime value chain to oppose the implementation of ICTN that would have further added to the cost profile of manufacturers.

    He added that the association also partnered relevant agencies to establish the MAN Centre for Entrepreneurial Development, an entrepreneurial academy for aspiring manufacturers.