The Nation Newspaper

Category: Industry

  • Ambode to support manufacturers

    Ambode to support manufacturers

    Lagos State Governor Akinwunmi Ambode has pledged his administration’s support to the manufacturing sector, saying that manufacturers hold the key to the sustainable economic growth and development of the state.

    He spoke at the opening of the Third Quarterly Council Meeting of the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA) in Lagos.

    He said the support to the manufacturing sector and investment s would drive self-sufficiency and sustain the status of the state as the economic hub of the country.

    “We are aware of the challenges of the business community in terms of poor power supply, inadequate infrastructure, and high interest and foreign exchange rates among others.

    “The resultant effects of these problems are manifesting in high operation cost, high rate of unemployment and poverty. But I am positive that these challenges are surmountable. We, therefore, need to be proactive and look towards becoming self sufficient by collaborating with the manufacturing sector, which obviously holds the key to sustainable economic growth and development,” he said.

    The Governor said this was why Lagos State has established the Office of Overseas Affairs and Investment to make the state a first choice destination for both local and foreign investors. He assured that his administration would continue to provide the enabling environment for the business community to thrive to create employment and grow the Gross Domestic Product (GDP)

    Ambode urged NACCIMA to collaborate with the state in its efforts to make Lagos the number one business friendly state.

    Also, the National President of Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), Mr. Bassey Edem, urged the Federal Government to hasten its roadmap for the diversification of the economy to tackle the dwindling income from crude oil.

    He urged the government to tackle corruption as it would translate into economic advancement, good governance and good living standard for Nigerians.

    He decried the poor utilisation and management of the Lagos International Trade Fair Complex and urged Ambode to call for a review of the concession of the complex. “The complex is primarily designed for trade promotion in Nigeria, but it has become a shadow of itself. We therefore, request that the management of the complex be transferred back to the Lagos Chamber of Commerce and Industry as was done for Kaduna International Trade Fair Complex. As an umbrella body of all chambers of commerce and industry, we will continue to lend our voice and support government at all levels to fulfill their roles,’’ he said.

    President, Lagos Chamber of Commerce and Industry, Alhaji Remi Bello, cited poor power supply, unstable policies, multiple taxation, poor access to credit and deficient infrastructure as problems affecting the business community.

    He said the meeting was aimed at reviewing those challenges for a better business environment and make impact on the new administration. He urged the government to continue to provide the enabling environment for businesses to thrive in order to boost the economy.

  • Boosting global competitiveness through service delivery culture

    Boosting global competitiveness through service delivery culture

    Despite Nigeria’s huge customer base, leveraging on quality service delivery culture to build brand equity remains a herculean task for most businesses. But The Workplace Centre Limited (TWPC), a human resource and information technology consultancy firm, is set to reverse the trend. TWPC is  to host business managers, chief executives and social entrepreneurs to its customer service training. The aim is to provide insights into consistent service delivery strategies that will revolutionise customer service culture. Assistant Editor OKWY IROEGBU-CHIKEZIE reports.

    Most successful global brands are built on a track record of excellent service delivery culture. But this is not the case in Nigeria where, despite an intimidating customer base of about 170 million, most companies and businesses have not been able to make their products and services irresistible.

    The verdict by brand analysts and managers is that Nigerian entrepreneurs, despite being acknowledged globally for their tenacity and ‘can do spirit,’ have not been able to ride on the platform of a robust service delivery culture to build brand equity.

    This much was confirmed by a recent ‘Africa’s Top 50 Companies’ published by African Business Report, in which only seven Nigerian companies made the list. The survey, which jolted not a few business owners, brand experts and stakeholders, added that many local brands failed in according their customers the required excellent service delivery. The belief is that when compared to some businesses that invest immensely in excellent customer service strategies, Nigerian businesses still have a long way to go. The ‘care-free’ attitude of most brand managers and chief executives is said to be largely responsible for the poor level of patronage of local brands.

    But the situation appears set for a reversal. The Workplace Centre Limited (TWPC), a human resource and information technology consultancy firm, has concluded arrangements to engage managers, supervisors and client interfacing executives on how to make strategic decisions to transform their organisations’ customer relationship management and to emotionally connect and add value to every interaction. Specifically, the firm is set to host business managers, chief executives and social entrepreneurs to its customer service training scheduled for the 24th of this month, in Lagos.

    The training is aimed at providing insights into consistent service delivery strategies that will revolutionise customer service culture in Nigeria.

    The forum, tagged: “The Customer Amazement Revolution Master Class” will, according to its organisers, expose participants to current trends in customer service relations, drawing from the wealth of experience of speakers, including Shep Hyken, a customer service expert and the award winning author of books, such as The Amazement Revolution; Benjamin  Ola Akande, the 21st president of Westminster College, Missouri, United States; and the immediate past Dean, George Herbert Walker School of Business and Technology, Webster University, among others.

    To meet the increasing demand for quality customer service, co-founder and Managing Partner, TWPC, Mrs. Bola Adeniyi-Taiwo, urged business owners, managers and social entrepreneurs to join hands with her company, which offers unparalleled quality services in its areas of expertise, to promote the much-needed amazement revolution in customer service delivery.

    She expressed optimism that if stakeholders in Nigeria heed the call for a consistent amazing customer service, more consumers of goods and services within and outside the country would increase their demand for products, which would in turn reduce  unemploymen in the country. This, she noted, will help the nation gain global competitive advantage.

    Adeniyi-Taiwo, who emphasised that TWPC is guided by strong values and high ethical standards, said the company’s mission is to provide innovative solutions and excellent services that maximise client’s return on investment. According to her, the best way to do that is not to view customer service as a cost, but as an investment in building future and long lasting relationships that would create customer evangelists.

    Quoting Shep Hyken, she said: ‘Hitherto, one unhappy customer would tell 12 people about his experience. Now, one customer may have 500 Twitter followers to spread the message to.”

    For Tobi Oni, a stakeholder, the theme of the forum is “apt and timely.” According to him, there is no better time for such a thought-provoking event that is designed to change the face of service delivery in Nigeria and Africa at large. He noted that apart from several economic challenges, thousands of Nigerian businesses have collapsed due to the inability of their owners to manage stardom by adopting amazing customer service culture that can give their customers reasons to come back. “I expect owners of dead and living companies to attend the TWPC training and specifically learn from the masters (Hyken and Akande among others). We should start looking forward to practicing the much needed consistent service delivery system,” he told The Nation.

    Mr. Oni is right. Not a few industry experts and stakeholders agree that the importance of quality customer service training cannot be overemphasized for businesses regardless of their sizes, services or market focus. As Adeniyi-Taiwo pointed out, for instance, “The most successful companies take customer-service farther by applying it directly to their employees. When a service or sales team regards and treats one another with the same consideration and respect that they would offer the customer, amazing team spirit is created and the overall work dynamic of the establishment is improved.”

    She, however, added that there are certain skills, tools and priorities that are essential to the growth and development of amazing customer service. “We must have the technical knowledge, financial and material resources as well as the required infrastructure and up to date technology to attend proactively to our customer’s needs. The benefits that excellent customer care skills provide to every business are endless,” she noted, adding that not only can it make the difference between an immediate sale or lack, thereof, it can also make or break a potential long term client relationship.

    The TWPC Managing Partner further stated that all things being equal, almost everyone will choose the company that recognises and meets their needs consistently over the one that does not. She said when dealing with quality customer service, the most immediate and important factor is establishing an orientation of respect, which is one element that is immediately felt by the consumer. “This alone can lead a hesitant customer to make an instant purchase or cause them to walk right out of the door. After the respectful attitude is established, then it is vital to anticipate and very importantly focus on the customers’ needs. This is when active listening skills are essential,” she admonished.

    Indeed, such admonishment could not be timelier. At the moment, Nigeria is largely perceived as a nation where businesses/factories are commissioned daily, without adequate plans to relate the sustainability of the business to customer relationship management. Nigeria and Africa consume mostly imported products and always rate their service delivery higher. This, according to customer service experts, hinders Africa’s quest for cultivating unparalleled quality of its service delivery.

    “We are basically a consuming nation; we applaud service delivery of foreign brands and multinationals because we have failed in ours. We praise others for doing what we can do to protect and secure the future of our brands. I believe several local brands can compete internationally if only the correct measures are put in place,” Gbenga Osho, a former manager with one of the defunct local fast food outfit, said.

    Interestingly, these are issues that will engage the minds of participants and resource persons at the training.  Already, world’s number one customer service guru, Shep Hyken, has given his words that ‘The Customer Amazement Revolution Masterclass’ would engender more competition among businesses within the same segment leading to positive change in the perception of service delivery in Nigeria.

    Founded in February 2013, TWPC is a state-of-the-art skills development centre that provides employability and entrepreneurial skills develop-ment as well as human resources and ICT services to its clients.

  • Diversification: Experts canvass appropriate taxation

    Diversification: Experts canvass appropriate taxation

    How should Nigeria diversify its economy to save it from the effects of falling oil prices?

    Appropriate taxation is the answer – if the economy must be diversified. This is the view of experts and operators in real sector.

    In separate interviews, some of them noted that states that find it difficult to pay salaries are those with poor Internally-Generated Revenue (IGR), in addition to the non-remittance of their monthly allocation from the Federation Account due to the fall in global oil prices. They argued that appropriate taxation is a viable way of diversifying the economy.

    For instance, the former Minister of Industry and Deputy President, Lagos Chamber of Commerce and Industry (LCCI), Mrs Nike Akande, canvassed the need for appropriate taxation, noting that in the face of dwindling revenue from the Federation Account and the failure of state governments to meet their obligations, there is the need to encourage individuals and corporate bodies to pay taxes.

    “Without adequate taxation the government would not be able to provide key infrastructure. Everybody that is in a position to pay tax should do so without prompting, that is the only way government can work. The challenging economic environment provides opportunity for innovative policies that should encourage people to pay their taxes and for government to reward those who are faithful to their civic responsibility,” Chief Akande said.

    Akande, who is also a tax ambassador for Lagos State, an award she got for her diligence in income tax payment, praised the state government for its innovative tax policies which resulted in exemplary governance and competitive infrastructure.

    She, however, cautioned that multiple taxations is unhealthy for the manufacturing sector, calling for the harmonisation of taxes among the various levels of government to create an enabling environment for businesses to thrive.

    She advised the government to support the ‘Buy Nigeria’ campaign, noting that it is the only way products can be more competitive and the local industries stimulated.

    Her words: “A lot of people are buying locally-made and designed fabrics now. If our local designers become more creative, more people will patronise them. When l was minister, l made sure that l wore locally-made fabrics in all my official engagements. l would wish that the government continues to promote the use of local fabrics. If you tax manufacturers without encouraging them to grow with innovative policies and supportive infrastructure, you will kill the local industries.”

    President, Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), Mr Bassey Edem, also harped on the need to harmonise state and local government tax agencies that introduce spurious taxes inimical to the growth of businesses.  He said though he supports taxation, multiple and spurious taxation are injurious to business.

    He called for a stop to the exportation of raw materials. Rather, he said local industries should be encouraged use available local materials, add value to them and provide finished products that can earn foreign exchange.

    Edem further urged the government to invest in the energy sector by harnessing alternative sources of energy, such as wind, coal and solar, to improve electricity supply to support the manufacturing sector.

    President, Nigeria Association of Technology Incubation Entrepreneurs (NATIE), Mr. Duro Kuteyi, said manufacturers were not unwilling to pay taxes, but would want to be taxed fairly.

    Lauding the appointments at the Federal Inland Revenue Services (FIRS), he urged the government to look into the challenges facing Small and Medium Enterprises (SMEs) in terms of cost of infrastructure, multiple taxation and cost of funds.

    “Manufacturers are expecting a reduction in tax rates. We are also looking at the FIRS to have a window for us to discuss and for them to understand how the economy has dealt with the SMEs before now. Smuggling is killing the efforts of SMEs, big multinationals producing raw materials are also killing the SMEs by taking up their product and producing them en-mass. They should not also compete with SMEs in producing the same products because we cannot compete with them on spread, distribution network and financing,” he said.

    Kuteyi appealed to the government to address the challenge of power supply. According to him, fixed electricity charges on all sizes of SMEs is affecting operators severely. “They don’t want to listen. The government should really look at more protection for SMEs to thrive,” he added.

  • Stakeholders urge Fed Govt to review FADAMA 111

    Agro-allied investors, agricul-turists, and farmers have urged the Federal Government to review the Third National Fadama Development Project for better impact on the agriculture sector.

    A cross section of stakeholders made the call in Abuja.

    They said the project could be managed properly to spur widespread interests in farming and associated agro-allied businesses.

    According to them, the present project is not having expected impact as farmers and agriculture stakeholders are no longer the central focus.

    The development objective of the ‘Third National Fadama Development’ (Fadama III) Project for Nigeria is to increase the incomes of Fadama users.

    Chief Executive of Tamole Farms Nig. Ltd, Mr Bolanle Akogun, said the entire policy framework of the project need to be reviewed to capture more clusters.

    Akogun said the project should be used to boost mechanised farming instead of the present heavy concentration on “negligible grants’’ to rural farmers.

    “The World Bank assisted project is elitist on paper and pedestrian in practice thereby leaving room for misappropriation of funds.

    “President Muhammadu Buhari would be doing the agricultural sector the needed service if the project is further reviewed to reposition it well enough to drive the non-oil sector,’’ he said.

    Mallam Musa Keffi, an agriculturist, said the project, no doubt, had the basic impact in rural farming, adding that it could be made to achieve food security for the country.

    “We are very good in developing policies, but I think we should show more seriousness in the implantation of the ideals of the project.

    “We have many people in my locality that are captured and had benefited from the project in one way or the other but there is not feasible large scale impact,’’ he said.

    On his part, a food exporter, Chief Anabi Oko , said “the fundamentals of the project appears to be fading away as the handlers across the country have developed ways for funds leakages.’’

    The National Coordinator of the Fadama III project, Tayo Akinwunmi, expressed delight on the implementation of all identified elements of the project.

    Akinwunmi expressed satisfaction at the approval of the project’s work and procurement plans by both the World Bank and Ministry of Agriculture and Rural Development.

    The Federal Government in 2013 approved $200 million (N39 billion) loan for the additional financing of the ongoing Fadama III project.

    According to him, the World Bank supports project stands to increase income for users of rural lands and water resources within the Fadama areas.

    He said it would also improve the value chain of agricultural commodities in line with the need to boost the non-oil sector.

  • ‘Invest more in sciences’

    The Federal Ministry of Education has called for an increased investment in the study and practice of sciences across all African countries.

    Acting Permanent Secretary of the ministry, Hajia Hindatu Abdullahi, made the call at the opening of the Pan-African Science Olympiad in Abuja.

    Abdullahi, represented by Dr Rosetta Isiavwe, the Director, Technology and Science Education in the ministry, said investment in sciences would encourage the services of indigent scientists to remain and develop Africa.

    “For Africa to keep abreast with global trends of technology advancement, and perhaps in solving its multifarious problems, efforts must be geared towards science education research and development.

    “This, I believe is the bedrock for national development; the very existence of any area of human endeavour is based on Mathematics and Mathematical Sciences. It is an established fact that sustained public investments in science in the developed nations do generate impressive returns,” Abdullahi said.

    She, therefore, said it is the lack of investments that rob Africa of her scientists, who feel alienated from their societies and that’s why they are trade elsewhere; hence people erroneously view science as the product of the industrialised world.

    Earlier, the Director/Chief Executive Officer, National Mathematical Centre, Prof. Adewale Solarin, organisers of the event, said other competitions were incorporated into the programme.

    These, he said, were the maiden edition of the Pan-African Mathematics Olympiad for Girls (PAMO-G) and the Pan-African Mathematics Olympiad (PAMO).

    “Pan-African Mathematics Olympiad, this is the 23rd Edition. We needed to do something with the girl child and we put a proposal to start the Pan-African Mathematics Olympiad for Girls. And I am happy that today, we are witnessing the maiden edition of this wonderful move to follow the trend in other parts of the world,” he said.

    “Some three or four years ago, the European Communities started the European Girls Mathematical Competition and so we are here to back the Pan-African Olympiad for Girls. So, we have three in one—Pan African Science Olympiad, Pan-African Mathematics Olympiad and Pan African Mathematics Olympiad for Girls,” he explained.

    Out of the 17 African countries, which indicated interest in this year’s edition of the competition, only 10 countries were at the opening. They are; Benin, Burkina Faso, Cameroon, Ghana, Mali, Niger, Nigeria, South Africa, Tanzania and Tunisia.

    Participants are to compete in different science examinations all week to determine winners for the three competitions at the end of the week.

  • ‘Textile industries ‘ll be resuscitated’

    The Kaduna State Governor, Nasiru el-Rufai, has  said that his administration’s resolve to revive the ailing textile industries was irrevocable.

    He said this at the opening of the 27th Annual National Education Conference of National Union of Textile, Garment and Tailoring Workers of Nigeria (NUTGTWN) in Kaduna.

    The three-day conference had as its theme: “Buhari’s Administration: Revival of Textile Industry and Creation of Mass Decent Jobs.” The governor said it was regrettable that the textile industries which used to employ tens of thousands in the state could now only employ about 1,500 employees. ‘’This is unfortunate and must be addressed’’, he said.

    Commending the Federal Government’s commitment to revive the textile industries in the country, he assured the textile workers that his government would ensure that the textile industries were fully resuscitated to their former status.

    Meanwhile, Governor Adams Oshiomhole of Edo, noted that the commitment displayed by President Muhammadu Buhari to revive the industries is commendable. According to him, the move would create thousands of jobs for the youth. “We are hopeful on President Buhari because of his shown committment to the revival of the textile industries,’’ he said.

    The governor called on the textile workers to give President Buhari full support in the effort to revive the textile industry.

    The NUTGTWN Secretary General, Issa Aremu, disclosed that a total of 101,700 of textile industries factories had closed shops in the country, noting that past governments did nothing to revive the industry.”It is commendable that Buhari’s administration named textile revival explicitly in his campaign promise.

  • Life Beer gives N3 million to 12 entrepreneurs

    Life Continental Lager Beer, a brand of beverage from the stables of Nigerian Breweries PLC, has increased the number of promoters of small and medium-scale enterprises (SMEs) in the Southeast, who benefited from the “Life Continental Beer Progress Booster Radio Project” to 36.

    The brand offered N3 million to the third set of 12 winners whose proposals were outstanding.

    Addressing the budding entrepreneurs at the Cheque presentation at Ama Brewery of NB Plc, Enugu, Mr. Olalekan Okubanjo, the Packaging Manager, urged the winners to stay focused and to invest wisely in their ventures.

    He assured them that the brand will not abandon them in their endeavour to move their enterprises to the next level. His words: “The panel of experts that assessed and judged your business proposals will monitor your progress. They will be there to mentor and provide valuable advice, when necessary.”

    Okubanjo said there was still an opportunity for the winners to get  additional N250,000 if their business could progress.

    The winners include Joy Ogbanigo (Healthy Vegetable Drink Production; Innocent Onyeukwu (Opening of a Butcher’s Shop); Felicia Emeh (Food Canteen Expansion); Augustine Okoli (Household & Furniture Welding); Tuvia Kings Enterprises (Creative Fashion Designing and Prints) and Chijindu James (Automatic Wireless Change Over).

    Others are: Eusebius Owusi (Cold Room Business Expansion); Nwaenyi White Nelson (Computer Training Centre Establishment); Stella Okechukwu (Hair Dressing Salon Establishment); Ebube Jediho (Cassava Planting and Production); Ezo Ukwuora Benjamin (Transparent Bar Soap Production); and Anyachukwu Donatus (Food Condiments Processing).

  • ECOWAS CET: Why manufacturers are kicking

    ECOWAS CET: Why manufacturers are kicking

    Few months after the take-off of the Economic Community of West African States’ (ECOWAS’) Common External Tariff (CET), some aspects of the common regional tax regime, which seek to tackle the challenges of cross-border smuggling, have been criticised by manufacturers. They say the new policy, which took effect on April 11, should be fine-tuned, writes Assistant Editor OKWY IROEGBU-CHIKEZIE. 

    Before the commencement of the operational phase of the Economic Community of West African States (ECOWAS) Common External Tariff (CET) on April 11, this year, the policy had enjoyed the overwhelming support of the real sector operators, especially manufacturers. Most of them saw the policy, which ushered in a common regional tax regime, as the wedge for cross-border smuggling, which has almost crippled the domestic economy.

    Aside the hope that it would ensure significant improvement in the implementation of the ECOWAS Trade Liberation Scheme (ETLS), which will give rise to the concept of a regional Customs union, the scheme was seen as an effective instrument for harmonising the import policies of member-states to strengthen the framework for the realisation of a common market.

    ECOWAS CET allows goods from any other part of West Africa into Nigeria without the imposition of any tax, import duty or levy. It means that goods imported into a Francophone country will not necessarily be cheaper or more expensive than those entering another Anglophone country, such as Nigeria or Ghana.

    CET, according to experts, is a mild form of economic union, but may lead to further types of economic integration.

    In addition to having the same customs duties, the countries may have other common trade policies such as having the same quotas, preferences or other non-tariff trade regulations apply to all goods entering the area, regardless of which country within the area they are entering.

    The approval for the implementation of the new tariff was conveyed in a statement signed by former Finance minister Mrs Ngozi Okonjo-Iweala. The NCS said all imports arriving in the country beginning from April 11, shall be subjected to the rates contained in the CET 2015- 2019 and 2015 Fiscal Measures without recourse to the rates applicable before the coming into effect of the ECOWAS CET 2015 – 2019.

    In a statement, NCS spokesman, Deputy Controller of Customs, Mr. Wale Adeniyi, said the approved Supplementary Protection Measures/Fiscal Policy Measures comprised an Import Adjustment Tax list, which involves additional taxes on 177 tariff lines of the ECOWAS CET.

    The ECOWAS CET also covers a list of goods whose import duty rates have been reviewed to encourage more development in strategic sectors of the economy and an Import Prohibition List (Trade), applicable only to certain goods originating from non-ECOWAS countries. However, few months into its implementation, certain aspects of the policy appear to have got under the skin of manufacturers.

    For instance, at a briefing on the state of the economy, which held in Lagos last week, President, Manufacturers Association of Nigeria (MAN), Dr. Frank Jacobs, said though manufacturers welcomed the introduction and commencement of the operational phase of the ECOWAS CET by the Federal Government, the policy appears to be the bane of industrial development in the country because of the difficulty in the consignment clearing process involved in its implementation.

    He said though the CET implementation started with the hope that it would eliminate smuggling, which has almost crippled the economy, the initial stage of its implementation was almost marred with difficulty in clearing processes and unnecessary delay of goods at the ports. This, he said, resulted in high demurrage. He, however, expressed hope that as the Nigerian Customs Service (NCS) gets accustomed to the proficient of the CET procedures, the delay in clearing will be greatly reduce.

    But the delay in clearing goods at the ports is not the only grouse of manufacturers.

    The MAN chief pointed out that another off-shoot of the implementation of the ECOWAS CET is its implication on pharmaceutical companies in Nigeria. While identifying what he called ‘oversight of the CET’ with regards to the pharmaceutical sector, he said: “It was observed that within the CET framework, imported finished pharmaceutical products attract zero per cent duty, while imported pharmaceutical input materials attract between five per cent and 20 per cent duty.”

    The implication of this tariff arrangement, Dr. Jacobs pointed out, is that locally produced medicines will be more expensive than imported ones. “If this is not addressed, it could lead to the closure of pharmaceutical industries and retrenchment of workers. This, by extension, will lead to an upsurge in poverty and crime levels in the country,” he stressed.

    Some of the issues raised by MAN are not  new. Before the take off of the policy, some experts had argued that there was the need to make smooth the grey areas in its implementation if Nigeria must benefit from CET. For instance, former director-general of Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), Dr John Isemede, identified the need for harmonisation of the various tariffs.

    For instance, while countries, such as Nigeria, Ghana, and Gambia are Anglophone nations, Togo, Benin, Burkina Faso, are Francophone. Similarly, while Value Added Tax (VAT) is five per cent in Nigeria, 20 per cent in the francophone countries and 15 per cent in Ghana, he noted that only when these VAT are harmonised can there be sub-region talk about one external tariff.

    Noting that Nigeria may not get to the Promised Land on the platform of CET unless VATs are harmonised, he called on ECOWAS to harmonise the various VATs in the countries for the smooth implementation of the policy. He also said cost of doing business in Nigeria was high compared to other countries, which is why goods shipped into the country are cheaper than the ones made in the country. He added that there was need to address issues responsible for the high cost of doing business in Nigeria.

    Also, Director-General, Lagos Chamber of Commerce and Industry (LCCI), Mr. Muda Yusuf, said CET would have serious implications for the economy, particularly the manufacturing sector, unless issues of high energy cost, high costs of funds, high regulatory charges, and high ports charges, among others, are not addressed. He said the manufacturing sector is suffering significant competitiveness issues hence the need for immediate policy responses to avoid the collapse of what is left of the sector.

    Director-General, NACCIMA, Mr. Emmanuel Cobham, said local industries need protection against the influx of foreign products in the wake of the implementation of the ECOWAS CET.

    NACCIMA’s position on the policy is that manufacturing companies need some level of protection against the influx of foreign products that the tariff favours. Cobham said since the CET regime had commenced, the government might need to consider ways of alleviating the hardship on importers and manufacturers alike.

    Under the new policy, goods are grouped into five categories of tariff rates: zero, five, 10, 20 and 50 per cent. Goods dutiable under the zero per cent category are special drugs as well as industrial machinery and equipment.

    Under the five per cent category, goods dutiable include raw materials and other capital goods. Those dutiable under the 10 per cent category are intermediate goods while finished goods attract 20 per cent import tariff. Finished goods that can be manufactured locally, however, attract 35 per cent import tariff.

    For MAN, the import adjustment tax of 20 per cent should be introduced for imported finished pharmaceutical products with HS Code 3003 and 3004 because Nigerian manufacturers have the capacity to produce these medicines. Besides, the import prohibition list prescribed in the CET, MAN, insisted, should be retained because there is available local capacity in Nigeria.

    “The tariff issues of pharmaceutical products import in respect of the CET tariff arrangement is a crucial matter that must be addressed so as to continue to maintain the employment position in the sector,’’ MAN stressed.

  • Give us Cashew Board, farmers plead

    Stakeholders in the Cashew industry have called for the es-tablishment of a Cashew Board to boost foreign exchange earnings and generate jobs.

    They spoke at the end of a two-day workshop in Ilorin, the Kwara State capital.

    The theme of the workshop was: “Cashew business competitiveness and sustainability”.

    They urged the Federal Government to assist cashew farmers and processors through the provision of a special fund to boost production.

    Deputy Director, Product Development, Nigerian Export Promotion Council (NEPC), Chief Emmanuel Ezeagu, said the board would protect the interests of cashew farmers.

    He added that the board would ensure that cashew species are of high quality, and also source markets for them.

    Ezeagu, who described cashew as a money spinner because of the high demand for the nuts, added that the government should assist farmers to improve and increase production.

    “Cashew is a money spinner; there are lots of Indians and Vietnamese coming to Nigeria to buy the raw cashew nuts. The market for cashew nuts is so huge that Nigerian cashew farmers should take advantage of it,” Nzeagu said.

    He also called on both the states and local governments to encourage farmers to venture into the cashew plantation business. He said state governments can assist cashew farmers with improved seedlings, fertiliser and micro-credit loan facilities.

    President, National Cashew Association of Nigeria (NCAN), Mr. Tola Fasheru, decried the high cost of processing a ton of cashew.

    He said it costs $500 to process one ton of cashew, whereas it costs about $250 in India and $217 in Vietnam to process the same quantity of cashew.

    Fasheru said for the cashew industry to compete favourably with other countries, the government should set up a special fund for the industry.

    According to him, the sustainability and competitiveness of the sector may be a mirage if the government did not assist cashew farmers and processors.

    Business Advisory Manager (BAM) of the African Cashew Alliance (ACA), Mr. Sunil Dahiya, said the cashew industry had a great potential as a foreign exchange earner for the country.

    To realise this potential, Duhiya said the sector must be properly harnessed and incentives provided by government. He said the governments of India, Vietnam and Mozambique subsidised the cost of processing cashew nuts.

    According to him, the Indian government pays cashew processors $80 as subsidy per metric ton, while Vietnam pays about $70 to its cashew processors.

    The BAM said ACA, since its inception, was committed to improving the competitiveness and sustain-ability of the African cashew industry. He said the alliance had also made efforts to increase the processing of cashew in the continent.

    “Our objective is to facilitate the development of an industry that benefits the entire value chain, from farmer to consumer by sharing information and best practices among stakeholders,” he added.

    A cashew farmer, Alhaji Akeem Anifowose, appealed to the Raw Material Research and Development Council (RMRDC) and investors to come up with the appropriate technology to process cashew apple and shell.

    He also made a case for the NEPC to find market for cashew shells, as many of the by-products waste away on their farms

  • Sorghum production gets boost

    A major boost may have come the way of the agricultural sector.

    Last week, the Federal Govern-ment signed a Memorandum of Understanding (MoU) with a Chinese firm, Sang-Liang Technology Development Centre (STDC), to grow sweet sorghum in the country.

    The MoU, signed by the Raw Materials Research and Development Council (RMRDC) on behalf of the Federal Government, The Nation learnt,  is part of the Council’s efforts to add value to local raw materials to stimulate employment and create wealth.

    According to the Deputy Director of Public Affairs Unit of RMRDC, Mr. Chuks Ngaha, the develop-ment is in line with the Council’s mandate of developing raw materials and facilitating the adoption of machinery and processes for raw materials utilisation.

    “The agreement with STDC is for the processing and development of sweet sorghum into food and industrial and energy products to add value to local raw materials and create wealth,’’ he explained

    He said the Council would receive the sole franchise for the distribution of the improved sweet sorghum seedlings, planting materials and its technology in West Africa.

    “The Council seeks to domesticate the technology for sweet sorghum production and processing in Nigeria. Consequently, the agreement includes joint establishment of a comprehensive industrial model project on the development of sweet sorghum,’’ Ngaha said.

    According to him, STDC will provide technical support and expertise, including conducting the initial soil testing and other related activities. The council said it would also partner Niger State Government for land provision for the pilot project of cultivating improved sweet sorghum seeds.

    He added that the state government provided some hectares of land for the project. “This collaboration shall also see STDC facilitating the replication of the sweet sorghum village industry in other states of the federation.

    “The Council is already engaged in discussions with various stakeholders in Taraba, Adamawa, Kebbi, Bauchi and Gombe states to fashion out areas of collaboration on the project,’’ the statement added.

    The Director-General, RMRDC, Dr Hussaini Doko, represented the Federal Government while Mr. Lyu Wei represented STDC in the signing of the MOU.