The Nation Newspaper

Category: Industry

Nigeria’s thorny road to cocoa revival

Nigeria plans to reclaim her position as a global powerhouse in cocoa production and export. But, experts say without evolving a vibrant local chocolate industry to benefit from the entire cocoa value chain, and addressing some fundamental issues agitating the minds of cocoa farmers and stakeholders, the road to achieving the feat remains rough. Assistant Editor CHIKODI OKEREOCHA reports.

Some people may not have noticed, but a revolution, somewhat silent, is sweeping through the cocoa segment of the agric sector. The revolution, when completed, would hopefully, return Nigeria to the height of its glory in the global cocoa industry.

Apparently prompted by the economic crisis caused by the crashing oil price in the international market, which has forced the Federal Government to look towards the non-oil sector, the revolution, according to the former Minister of Industry, Trade and Investment, Dr Olusegun Aganga, would help Nigeria claim a greater share of the global market for finished goods made from cocoa estimated at $200 billion yearly.

The ex-minister, who spoke at the Nigerian Cocoa Value Addition Summit, in Abuja, said the renewed emphasis on cocoa would create thousands of jobs. According to him, the government was repositioning to extract immense value from the cocoa industry where the global value of exporting raw cocoa is approximately $10 billion a year, while the total value from chocolates is over $100 billion a year. He said government was working on deriving benefits from cocoa for farmers and Nigerians through the implementation of initiatives and expansion projects in cocoa processing and manufacturing.

Part of the initiative that has earned the government the buy-in and support of farmers and key stakeholders in the cocoa sub-sector, was the distribution of hybrid cocoa pods to farmers across the country to boost production and exports. At the last count, over 1.4 million hybrid cocoa pods, according to the former Minister of Agriculture and Rural Development, Dr. Akinwumi Adesina, have been distributed to farmers across the country.

Adesina, who spoke at the same event, said this translates to about 50 million seedlings, which are enough for farmers to plant 46,000 hectares of new cocoa plantation. This is based on the yield capacity of the distributed hybrids to produce five times the yield of what farmers get today, which is 2.5 tonnes as against 0.5 tonnes. He promised that with the introduction of the Cocoa Corporation of Nigeria (CCON), the government would be able to co-ordinate the sector and facilitate access to finance.

That is not all. Cocoa farmers are also being provided with critical inputs, such as agro-chemicals, to guard against black pod and insects, and fertiliser to enhance yield per hectare. “We have also succeeded, for the first time, to introduce a specifically formulated fertiliser for cocoa. Cocoa farmers are also given agro-chemicals, insecticides, fungicides, in addition to fertiliser and hybrid pods,’’ Team Leader, Cocoa Value Chain Development at the Federal Ministry of Agriculture, Dr. Peter Aikpokpodion, said.

The Cocoa Research Institute of Nigeria (CRIN), Ibadan, Oyo State, The Nation learnt, is also carrying out lots of researches on cocoa bread, liquor and cocoa detergent. According to its Director, Mr. Malachi Akoroda, a few projects were being executed in collaboration with foreign partners to research more into cocoa and see how it can be improved upon by way of partnerships, collaborations and linkages.

Interestingly, some of these efforts appear to be yielding fruit. For instance, in 2014 alone, Nigeria recorded the highest export of cocoa and its products valued at N131b, according to the Nigeria Export Promotion Council (NEPC). “Cocoa and cocoa preparations were the highest exported products in 2014 with the trade volume on cocoa amounting to N131.2 billion,’’ NEPC noted.

Statistics from NEPC show that Nigeria recorded N43.191billion exportation of the products in the first quarter of the year, while more than N18. 558billion was recorded in the second quarter. Over N24. 845 billion was recorded in the third quarter, while N44. 695b was recorded in the fourth quarter. NEPC said the exportation of the products was part of the Federal Government’s plan to develop and enhance market opportunities for non-oil export sector through the National Strategy Export Products (NSEP).

The Federal Government in January marked out 13 NSEP to replace the nation’s over dependence on petroleum products. According to Aganga, tumbling prices of petroleum products at the international markets was threatening the stability of the Nigerian economy hence, this was part of Federal Government’s moves to revive the dwindling national economy with emphasis on rapid growth of the non-oil sector for exports.

Although, 12 products were originally identified under the NSEP, the number increased because the Executive Director of NEPC, Mr. Segun Awolowo, made a case for the inclusion of Cashew on the list. Aganga listed the 13 NSEP in three categories, including agro-industrial-palm oil, cocoa, cashew, sugar and rice. Others are mining-related such as cement, iron ore/metals, auto parts/cars, aluminium, oil and gas industrial products, petroleum products, fertiliser/urea, petrochemical and methanol.

However, while these efforts may have put Nigeria on the threshold of regaining her lost glory as a leading cocoa producer, there is a snag: lack of a vibrant chocolate industry to process cocoa into chocolate and other finished products. Ninety per cent of chocolate products in the market are imported from Europe and other African countries such as Ghana, Cote d’Ivoire and South Africa.

The Nation learnt that there are few processing companies with the capacity to process cocoa into chocolate in Africa’s largest economy; a situation that has denied Nigeria the opportunity of enjoying the full benefit of the ongoing revolution in the sub-sector. Issues such as regular supply of cocoa, capital to establish local processing plants, and the challenge of marketability viz-a-viz imported chocolate, among others, have been identified as serious obstacles to the emergence of a vibrant local chocolate industry.

This was why Adesina, for instance, has been advocating that Nigeria produce chocolates instead of exporting raw beans. He said cocoa processing factories generate between $90 million and $400 million yearly even at their low capacity rates, urging Nigerians to give more priority to processing instead of exportation of cocoa beans. Adesina, who spoke at the recent 50th anniversary of CRIN, added that a special intervention fund will also be established to support cocoa processors for asset acquisition and working capital.

The Founder, Centre for Cocoa Development Initiative, a Non-governmental Organisation (NGO), Mr. Robo Adhuze, told The Nation that at the moment the ‘N100billion Cocoa Intervention Fund’ announced by the Federal Government to support cocoa processors remains at the level of a proposal. He, however, said the recent feat achieved by the Ondo State Government’s ‘Cocoa Revolution Project’, particularly in the area of cocoa processing, is an indication that government’s ongoing efforts at revamping cocoa is yielding positive result.

Adhuze, whose NGO focuses on promoting the development of cocoa in Nigeria and fostering awareness on the usefulness of cocoa products, said Ondo State won the Chocolate Silver Awards at the recently concluded seventh edition of the yearly Academy of Chocolate Award, at the Fortnum & Mason Piccadilly, London.

At the event, which attracted major cocoa/chocolate and confectionery industry stakeholders across the globe, cocoa produced in the state, for chocolate production, received world certification and recognition. The state was mentioned at the ceremony as the only chocolate award winner from West Africa that produces 75 per cent of global cocoa bean output.

Chairman of the state Cocoa Revolution Implantation Committee, Jibayo Oyebade, said the product had already been presented to the partnering firm overseas, Cargill Cocoa and Chocolate firm in Netherland. “We taught our cocoa farmers on how to improve the quality of their cocoa through proper fermentation. Our partners have taken our sample, and are satisfied with it.

“I am proud that our effort has yielded good results. We want to reproduce chocolate from our own cocoa,” Oyebade said, adding that only 300 kilogrammes of the product was sent as sample. He also said the state would increase production and establish a chocolate academy and factory.

The Ondo feat has been a wake-up call of sorts for other cocoa producing states. According to Adhuze, several states are eager to replicate Ondo’s success by riding on the crest of the cocoa transformation programme midwifed by the Federal Ministry of Agriculture and Rural Development (FMARD).

The Nation learnt that apart from Ondo, a number of state governments have already indicated interest to be listed on the cocoa value chain intervention programme of the FMARD. For instance, only six states were involved in the programme’s implementation in 2012, but that doubled the following year 2013.

Adhuze said what gave Ondo State an edge in exploiting the entire cocoa value chain in terms of marketing, processing and adding value was that out of about 10 cocoa processing factories in the country five are located in the state. He, however, noted that although about 24 states fall under what is described as ‘Nigeria’s Cocoa Belt’ only eight are commercially viable, and they form the hub for the current economic regeneration anchored on cocoa production and export.

“We have enough cocoa processing factories; the only thing is that they are not performing optimally because of high cost of fund and energy,” Adhuze told The Nation, adding that in the next five or seven years, Nigeria would meet its target in cocoa production and export.

July 17, 2015
Luminous inverter gets award

AN inverter brand, Luminous Inverter, has received the “Best Quality Inverter in Africa for 2015” award.

Organised by the African Quality Achievement Awards (AQAA) in Lagos, the brand was said to have met the standards and criteria rolled out by the organisers.

Presenting the award, Managing Director, Nigeria Army Small Scale Industrial Unit on manufacturing drugs and other materials, Lt.-Col. Azce Awazie, said the brand earned the award for its high quality compliance, quality awareness drive, quality assurance policies, and innovation.

Others include customer satisfaction, market focus, operational excellence and high level of consumer loyalty.

Marketing Manager, Wandel International Limited, marketers of luminous inverters, Mr. Rajneesh K. Gupta said: “Our desire is to remain the best, to continue to provide high level of satisfaction to our teeming customers.”

Simba Group, a conglomerate operating in Nigeria for over two decades, also represents TVS Motors and Tata Motors for vehicles and Avaya for business communication solutions.

Wandel International Limited is a member of the Simba Group Company, distributors of luminous inverters and power backup solutions.

Simba Group, a conglomerate operating in Nigeria for over two decades, also represents TVS Motors and Tata Motors for vehicles and Avaya for business communication solutions.

July 17, 2015
CBN naive about real sector, says LCCI

The last may not have been heard about the exclusion of 41 items from the foreign exchange (forex) markket by the Central Bank of Nigeria (CBN). The Lagos Chamber of Commerce and Industry (LCCI) has slammed CBN for what it called the bank‘s “limited understanding of the manufacturing process of many of the sectors affected by the policy”.

While introducing the list, the CBN declared the items invalid for forex from the interbank market and Bureaux de Change (BDC). But the policy did not go down well with members of the Organised Private Sector (OPS).

LCCI consequently organised a dialogue between CBN officials, business leaders and members of the Chamber to discuss the policy, its rationale and consequences, and to advise on the way forward.

In a communiqué after the meeting signed by its Director-General, Mr. Muda Yusuf, LCCI said it understood CBN’s constraints in fashioning the policy.

“Many of the restricted items are irreplaceable raw materials in the manufacturing process of many industries and this policy will cause significant damage to the Nigerian manufacturing sector and economy.

‘’We affirm that while there are several items on the list which any patriotic Nigerian will not object to, there are many others that will harm the manufacturing sector,” Yusuf said.

He said given CBN’s dominant role in forex supplies and the fact that all three ‘official’ markets are excluded, the policy means that manufacturers who require any of the restricted items as input and raw materials for their production may have to shut their operations once their stock is exhausted.

He said the items include those which are critical to manufacturing. He advised CBN to simulate the impact of the policy on employment, inflation and output in the year and review it. He insisted that the impact of the three areas would be negative.

Yusuf argued that the new CBN policy was ambiguous, to both manufacturers and banks.

“We urge CBN to immediately amend the policy with full product definition and specification of all restricted items, including HS Codes and excluding any items which are non-substitutable industrial raw materials from the list. The CBN policy should also allow appropriate time frames for items, which require some time interval before local substitutes can be created for imported raw materials,” he said.

The LCCI chief reminded the CBN and the Federal Government that manufacturers had suffered from the recent currency devaluation. Compounding recent devaluation losses with higher cost and inability to source critical raw materials, he argued, might push many firms over the precipice, resulting in business closures, loss of jobs, declined manufacturing sector production and greater social tension.

Continuing, he said: “We call CBN’s attention to the fact that the fundamental forces the CBN is struggling against are economic and fiscal policy dependent while the bank continues to exert monetary policy tools almost to a point in which economic harm may result. The fundamental factors are diversification of the Nigerian economy in terms of exports and government revenue, issues around downstream oil sector deregulation and upstream oil sector fiscal regimes.

“Others are power sector efficiency and creating alternative economies in solid minerals, agriculture, manufacturing and other sectors towards building a productive, export-led local economy. These matters cannot be resolved through exclusive deployment of monetary policy tools.”

Yusuf suggested a conversation between the CBN and Federal Government so that a more appropriate regime of economic and fiscal polic initiatives could be designed to address these issues.

He called on the CBN to harmonise its policies with other agencies of government, including Customs, Federal Inland Revenue Service (FIRS), Standards Organisation of Nigeria (SON), and Immigration.

“Moreover we urge CBN to be mindful of the economic role and importance of Small and Medium Enterprises (SMEs) and moderate-sized manufacturers as it develops policies. The CBN should avoid policies that may produce oligopolistic and even monopolistic outcomes at variance with its mandate of building a sound economy,” he advised.

LCCI also urged increased engagement and consultation between the CBN and manufacturers and other stakeholders so that policies would be based on proper understanding of the real impact on stakeholder groups and the economy.

July 17, 2015
Manufacturers urged to improve on products

The Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA) has urged manufacturers to improve on their products.

In a statement in Lagos, NACCIMA Director-General (DG) Mr. Emmanuel Cobham, said improved products would help the sector.

Cobham said good products would guarantee efficiency of their operations, societal benefit and development of the economy.

“If products can be made to standout, the customers will appreciate it because the customers like good quality products, he said, adding that most customers are willing to pay the difference to get value for their money in the goods they purchase.

According to him, if Nigeria prides herself as being a big economy and a key player in the world, it is expected that products from the country should meet international standards.’

He said almost two million new cars were sold every month in China, despite its economic slowdown and the demand for China cars was also strong in Europe.

“There was a time when the world depended on German and Japanese products, but from this figure, it shows that China has been able to perfect its act. They did it to show others that it is feasible and this is good for their economy.

“What is Dubai trading in? Honesty, top standard production and they make sure that only the best comes in. Things like religion and sentiment do not interfere in their product quality specifications,” Cobham said.

The DG urged manufacturers to establish necessary mechanisms that would facilitate growth in the manufacturing sector, as well as the national economy.

He reminded manufacturers that attention had shifted to the patronage of locally-produced goods, as an alternative to imported goods, for job creation, economic development and sectoral? growth.

Cobham argued that if locally produced goods are of good quality, buyers would willingly change their taste preferences for imported goods and embrace made-in-Nigeria products.

The DG alleged that corruption was the bane of the fight against substandard goods, as most producers had shunned standards for quick riches, at the expense of buyers.

He urged the relevant government agencies to ensure substandard goods were removed from circulation.

Issues on global tax system dominate devlt partners’ discussion The United Nations (UN) and other development partners, during the week, took practical steps to discuss “unresolved issue” of a global tax aimed at combating international tax dodging and illicit financial flows.

The discussion was one of the side-line events at the third “Financing for Development Conference (FfD)”, which opened in Addis Ababa, the Ethiopian capital.

Many of the discussants were representatives of non-governmental organisations and advocacy groups.

One of them, Pooja Rangaprasad of the Financial Transparent Coalition, urged governments to take advantage of the conference to create “an equitable tax body to tackle the problem of tax dodging and corporate opacity”.

“But if the status quo remains, and standards continue to be set by the Organisation for Economic Cooperation and Development (OECD), we will be stuck with an unjust system. The unjust system cannot solve the problem of illicit financial flows. The rest of the world will remain on the outside looking in’’ Rangaprasad said.

The OECD, which is made up of 34 rich countries, said that it was currently setting new standards in multinational profit shifting and cross-border tax dodging.

July 17, 2015
Nigeria’s thorny road to cocoa revival

Nigeria plans to reclaim her position as a global powerhouse in cocoa production and export. But, experts say without evolving a vibrant local chocolate industry to benefit from the entire cocoa value chain, and addressing some fundamental issues agitating the minds of cocoa farmers and stakeholders, the road to achieving the feat remains rough. Assistant Editor CHIKODI OKEREOCHA reports.

Some people may not have noticed, but a revolution, somewhat silent, is sweeping through the cocoa segment of the agric sector. The revolution, when completed, would hopefully, return Nigeria to the height of its glory in the global cocoa industry.

Apparently prompted by the economic crisis caused by the crashing oil price in the international market, which has forced the Federal Government to look towards the non-oil sector, the revolution, according to the former Minister ofIndustry, Trade and Investment, Dr Olusegun Aganga, would help Nigeria claim a greater share of the global market for finished goods made from cocoa estimated at $200 billion yearly.

The ex-minister, who spoke at the Nigerian Cocoa Value Addition Summit, in Abuja, said the renewed emphasis on cocoa would create thousands of jobs. According to him, the government was repositioning to extract immense value from the cocoa industry where the global value of exporting raw cocoa is approximately $10 billion a year, while the total value from chocolates is over $100 billion a year. He said government was working on deriving benefits from cocoa for farmers and Nigerians through the implementation of initiatives and expansion projects in cocoa processing and manufacturing.

Part of the initiative that has earned the government the buy-in and support of farmers and key stakeholders in the cocoa sub-sector, was the distribution of hybrid cocoa pods to farmers across the country to boost production and exports. At the last count, over 1.4 million hybrid cocoa pods, according to the former Minister of Agriculture and Rural Development, Dr. Akinwumi Adesina, have been distributed to farmers across the country.

Adesina, who spoke at the same event, said this translates to about 50 million seedlings, which are enough for farmers to plant 46,000 hectares of new cocoa plantation. This is based on the yield capacity of the distributed hybrids to produce five times the yield of what farmers get today, which is 2.5 tonnes as against 0.5 tonnes. He promised that with the introduction of the Cocoa Corporation of Nigeria (CCON), the government would be able to co-ordinate the sector and facilitate access to finance.

That is not all. Cocoa farmers are also being provided with critical inputs, such as agro-chemicals, to guard against black pod and insects, and fertiliser to enhance yield per hectare. “We have also succeeded, for the first time, to introduce a specifically formulated fertiliser for cocoa. Cocoa farmers are also given agro-chemicals, insecticides, fungicides, in addition to fertiliser and hybrid pods,’’ Team Leader, Cocoa Value Chain Development at the Federal Ministry of Agriculture, Dr. Peter Aikpokpodion,said.

The Cocoa Research Institute of Nigeria (CRIN), Ibadan, Oyo State, The Nation learnt, is also carrying out lots of researches on cocoa bread, liquor and cocoa detergent. According to its Director, Mr. Malachi Akoroda, a few projects were being executed in collaboration with foreign partners to research more into cocoa and see how it can be improved upon by way of partnerships, collaborations and linkages.

Interestingly, some of these efforts appear to be yielding fruit. For instance, in 2014 alone,Nigeria recorded the highest export of cocoa and its products valued at N131b, according to the Nigeria Export Promotion Council (NEPC). “Cocoa and cocoa preparations were the highest exported products in 2014 with the trade volume on cocoa amounting to N131.2 billion,’’ NEPC noted.

Statistics from NEPC show that Nigeria recorded N43.191billion exportation of the products in the first quarter of the year, while more than N18. 558billion was recorded in the second quarter. Over N24. 845 billion was recorded in the third quarter, while N44. 695b was recorded in the fourth quarter. NEPC said the exportation of the products was part of the Federal Government’s plan to develop and enhance market opportunities for non-oil export sector through the National Strategy Export Products (NSEP).

The Federal Government in January marked out 13 NSEP to replace the nation’s over dependence on petroleum products. According to Aganga, tumbling prices of petroleum products at the international markets was threatening the stability of the Nigerian economy hence, this was part of Federal Government’s moves to revive the dwindling national economy with emphasis on rapid growth of the non-oil sector for exports.

Although, 12 products were originally identified under the NSEP, the number increased because the Executive Director of NEPC, Mr. Segun Awolowo, made a case for the inclusion of Cashew on the list. Aganga listed the 13 NSEP in three categories, including agro-industrial-palm oil, cocoa, cashew, sugar and rice. Others are mining-related such as cement, iron ore/metals, auto parts/cars, aluminium, oil and gas industrial products, petroleum products, fertiliser/urea, petrochemical and methanol.

However, while these efforts may have put Nigeria on the threshold of regaining her lost glory as a leading cocoa producer, there is a snag: lack of a vibrant chocolate industry to process cocoa into chocolate and other finished products. Ninety per cent of chocolate products in the market are imported from Europe and other African countries such as Ghana, Cote d’Ivoire and South Africa.

The Nation learnt that there are few processing companies with the capacity to process cocoa into chocolate in Africa’s largest economy; a situation that has denied Nigeria the opportunity of enjoying the full benefit of the ongoing revolution in the sub-sector. Issues such as regular supply of cocoa, capital to establish local processing plants, and the challenge of marketability viz-a-viz imported chocolate, among others, have been identified as serious obstacles to the emergence of a vibrant local chocolate industry.

This was why Adesina, for instance, has been advocating that Nigeria produce chocolates instead of exporting raw beans. He said cocoa processing factories generate between $90 million and $400 million yearly even at their low capacity rates, urging Nigerians to give more priority to processing instead of exportation of cocoa beans. Adesina, who spoke at the recent 50th anniversary of CRIN, added that a special intervention fund will also be established to support cocoa processors for asset acquisition and working capital.

The Founder, Centre for Cocoa Development Initiative, a Non-governmental Organisation (NGO), Mr. Robo Adhuze, told The Nation that at the moment the ‘N100billion Cocoa Intervention Fund’ announced by the Federal Government to support cocoa processors remains at the level of a proposal. He, however, said the recent feat achieved by the Ondo State Government’s ‘Cocoa Revolution Project’, particularly in the area of cocoa processing, is an indication that government’s ongoing efforts at revamping cocoa is yielding positive result.

Adhuze, whose NGO focuses on promoting the development of cocoa in Nigeria and fostering awareness on the usefulness of cocoa products, said Ondo State won the Chocolate Silver Awards at the recently concluded seventh edition of the yearly Academy of Chocolate Award, at the Fortnum & Mason Piccadilly, London.

At the event, which attracted major cocoa/chocolate and confectionery industry stakeholders across the globe, cocoa produced in the state, for chocolate production, received world certification and recognition. The state was mentioned at the ceremony as the only chocolate award winner from West Africa that produces 75 per cent of global cocoa bean output.

Chairman of the state Cocoa Revolution Implantation Committee, Jibayo Oyebade, said the product had already been presented to the partnering firm overseas, Cargill Cocoa and Chocolate firm in Netherland. “We taught our cocoa farmers on how to improve the quality of their cocoa through proper fermentation. Our partners have taken our sample, and are satisfied with it.

“I am proud that our effort has yielded good results. We want to reproduce chocolate from our own cocoa,” Oyebade said, adding that only 300 kilogrammes of the product was sent as sample. He also said the state would increase production and establish a chocolate academy and factory.

The Ondo feat has been a wake-up call of sorts for other cocoa producing states. According to Adhuze, several states are eager to replicate Ondo’s success by riding on the crest of the cocoa transformation programme midwifed by the Federal Ministry of Agriculture and Rural Development (FMARD).

The Nation learnt that apart from Ondo, a number of state governments have already indicated interest to be listed on the cocoa value chain intervention programme of the FMARD. For instance, only six states were involved in the programme’s implementation in 2012, but that doubled the following year 2013.

Adhuze said what gave Ondo State an edge in exploiting the entire cocoa value chain in terms of marketing, processing and adding value was that out of about 10 cocoa processing factories in the country five are located in the state. He, however, noted that although about 24 states fall under what is described as ‘Nigeria’s Cocoa Belt’ only eight are commercially viable, and they form the hub for the current economic regeneration anchored on cocoa production and export.

“We have enough cocoa processing factories; the only thing is that they are not performing optimally because of high cost of fund and energy,” Adhuze told The Nation, adding that in the next five or seven years, Nigeria would meet its target in cocoa production and export.

July 10, 2015
LCCI flays CBN forex policy

THE Lagos Chamber of Commerce and Industry (LCCI) has kicked against the Central Bank of Nigeria’s (CBN’s) recent policy on foreign exchange (forex), which listed 41 items not valid for foreign exchange, arguing that it has dire consequences for the economy if not reviewed and possibly reversed.

Its President, Mr. Remi Bello, at a forum with the CBN in Lagos, frowned at the inclusion of what he called ‘intermediate products’ on the list of the 41 items excluded from the forex market.

While flaying CBN for not engaging the private sector before introducing the policy, Bello noted that as key stakeholders, the opinion of private sector operators should have been sought.

An economist, Mr. Opeyemi Agbeje, said there had been anxiety in the business community over the exclusion of the items from the market, adding that it is a de-facto ban. “Many businesses are affected. The policy process should have involved consultation and engagement of the organised private sector,” he said.

Managing Director Coleman Industries, makers of Coleman cables and wires, Mr. George Onafowokan, said he lost over N800 million due to the policy and the technical devaluation of the naira by the CBN. “I lost N800 million as a result of the policy,” he lamented, noting that his company has a two-year expansion plan of N11 billion.

He asked: “If we cannot buy our raw materials that we believe have been wrongly tagged in the CBN list, the question is, how will CBN cushion the effect of this devastating policy?”

He insisted that the policy was not in the best interest of the manufacturing sector. He said it would be impossible for his company to keep over 400 workers if the policy was sustained.

But, CBN Director, Monetary Policy, Mr. Moses Tule, explained that the two key micro agencies of the government in charge of fiscal policies must come together, noting that no economy is run on foreign exchange.

He said CBN was not bound to disclose the reason behind its policy before unveiling them, insisting that the apex bank forex policy is in the best interest of the private sector and the nation in general.

“No Central Bank brings its micro economic policy for debate before implementation. We acted in the best interest of the nation with no vested interest anywhere as being alleged in some quarters,” he said.

Tule wondered why people do not question unpatriotic traders who import unwanted things, thereby depleting the nation’s foreign exchange reserves.

He said: “From January to May, we spent $575 million importing wheat. We have land and farmers in abundance. We should not forget that agriculture contributes about 85 per cent of our GDP. In the same period, we imported fish worth $374million. Are we saying we cannot produce fish locally? What are we doing with all the fish farms in the country?

“In addition, the nation spent $349 million in the same period importing electrical and electronics; this can only happen here. In other countries they will insist that you set up manufacturing plants in their country, but here we are quick to import. Must we continue to grow other nation’s economies, keeping their factories running to the detriment of ours?”

He insisted that CBN does not have enough foreign exchange to encourage people to spend on frivolities, such as tooth picks or even private jets, adding that those who insist on doing things the old way should at least source their foreign exchange themselves.

Tule insisted that CBN had not banned the import of any of the items on the lists, saying it does not have the power to do so. He stressed that CBN does not have the cash to allocate for the importation of tooth picks and items that will not boost the economy.

He revealed how the government policy, shortly before the elections, impaired the growth of local rice, as the government issued licences to some people to import rice, adding that this crippled its huge benefits the country has made in the local production of rice in Kebbi and other states.

Tule regretted that some farmers were in a fix and remain impoverished as they could not sell what they produced with the challenges of insurgence in the northeast.

The CBN boss insisted that the policies were as a result of the prevailing economic situation in the country.

“CBN has at various times toyed with several policies such as wholesale, retail, interbank, Dutch auction system etc. Now we are restricting certain products from accessing foreign exchange.

“We are committed to the growth of our economy, job creation and the overall well being of our nation. We have put intervention funds at a point in time, tried to domesticate what we need here and in that light have supported the manufacturing sector to grow,” he said.

July 10, 2015
LCCI flays CBN forex policy

THE Lagos Chamber of Commerce and Industry (LCCI) has kicked against the Central Bank of Nigeria’s (CBN’s) recent policy on foreign exchange (forex), which listed 41 items not valid for foreign exchange, arguing that it has dire consequences for the economy if not reviewed and possibly reversed.

Its President, Mr. Remi Bello, at a forum with the CBN in Lagos, frowned at the inclusion of what he called ‘intermediate products’ on the list of the 41 items excluded from the forex market.

While flaying CBN for not engaging the private sector before introducing the policy, Bello noted that as key stakeholders, the opinion of private sector operators should have been sought.

An economist, Mr. Opeyemi Agbeje, said there had been anxiety in the business community over the exclusion of the items from the market, adding that it is a de-facto ban. “Many businesses are affected. The policy process should have involved consultation and engagement of the organised private sector,” he said.

Managing Director Coleman Industries, makers of Coleman cables and wires, Mr. George Onafowokan, said he lost over N800 million due to the policy and the technical devaluation of the naira by the CBN. “I lost N800 million as a result of the policy,” he lamented, noting that his company has a two-year expansion plan of N11 billion.

He asked: “If we cannot buy our raw materials that we believe have been wrongly tagged in the CBN list, the question is, how will CBN cushion the effect of this devastating policy?”

He insisted that the policy was not in the best interest of the manufacturing sector. He said it would be impossible for his company to keep over 400 workers if the policy was sustained.

But, CBN Director, Monetary Policy, Mr. Moses Tule, explained that the two key micro agencies of the government in charge of fiscal policies must come together, noting that no economy is run on foreign exchange.

He said CBN was not bound to disclose the reason behind its policy before unveiling them, insisting that the apex bank forex policy is in the best interest of the private sector and the nation in general.

“No Central Bank brings its micro economic policy for debate before implementation. We acted in the best interest of the nation with no vested interest anywhere as being alleged in some quarters,” he said.

Tule wondered why people do not question unpatriotic traders who import unwanted things, thereby depleting the nation’s foreign exchange reserves.

He said: “From January to May, we spent $575 million importing wheat. We have land and farmers in abundance. We should not forget that agriculture contributes about 85 per cent of our GDP. In the same period, we imported fish worth $374million. Are we saying we cannot produce fish locally? What are we doing with all the fish farms in the country?

“In addition, the nation spent $349 million in the same period importing electrical and electronics; this can only happen here. In other countries they will insist that you set up manufacturing plants in their country, but here we are quick to import. Must we continue to grow other nation’s economies, keeping their factories running to the detriment of ours?”

He insisted that CBN does not have enough foreign exchange to encourage people to spend on frivolities, such as tooth picks or even private jets, adding that those who insist on doing things the old way should at least source their foreign exchange themselves.

Tule insisted that CBN had not banned the import of any of the items on the lists, saying it does not have the power to do so. He stressed that CBN does not have the cash to allocate for the importation of tooth picks and items that will not boost the economy.

He revealed how the government policy, shortly before the elections, impaired the growth of local rice, as the government issued licences to some people to import rice, adding that this crippled its huge benefits the country has made in the local production of rice in Kebbi and other states.

Tule regretted that some farmers were in a fix and remain impoverished as they could not sell what they produced with the challenges of insurgence in the northeast.

The CBN boss insisted that the policies were as a result of the prevailing economic situation in the country.

“CBN has at various times toyed with several policies such as wholesale, retail, interbank, Dutch auction system etc. Now we are restricting certain products from accessing foreign exchange.

“We are committed to the growth of our economy, job creation and the overall well being of our nation. We have put intervention funds at a point in time, tried to domesticate what we need here and in that light have supported the manufacturing sector to grow,” he said.

July 10, 2015
Insecurity: TUC withdraws ultimatum to Rivers police chief

The Trade Union Congress of Nigeria (TUC), River State chapter, has withdrawn its 14-day ultimatum to the new Commissioner of Police, Rivers State Command, Mr. Chris O. Ezike, to improve the security of lives and property in the state or have its members withdrawn from work in protest.

TUC state Chairman, Comrade Hyginus Chika Onuegbu, said the decision to withdraw the ultimatum taken at a meeting with the Commissioner of Police (CP) on Wednesday, July 8, this year, where the Congress pledged to collaborate with the CP and state Police Command to improve the security in the state.

“The meeting was very fruitful as CP Ezike assured the Union that the Rivers State Police Command was working assiduously to improve security of lives and property in Rivers State and also solicited the support of organised labour in Rivers State. The CP also informed the Union of some of the successes recorded by the State Police Command since his assumption of duty,” Onuegbu said, in a statement made available to The Nation.

He also said TUC Rivers listed some security challenges facing its members and affiliates in the state, especially increased cases of kidnapping, armed robbery, destruction and killings.

TUC had in a letter to the CP last Friday, gave the CP a 14-day ultimatum to improve the security or face its members’ wrath. The union noted the spate of criminality, adding that it has reached an unprecedented level in the state.

TUC said: “The situation is so bad that many of our members now live in fear and are actively seeking for transfers out of Rivers State. Also, worrisome is the unwarranted attacks on the secretariat and leadership of labour unions in Rivers state.”

At the meeting were the executives and officers of key TUC’s affiliates in the state. They include the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), Association of Senior Civil Servants of Nigeria (ASCSN), Association of Senior Staff of Banks, Insurance and Financial Institutions (ASSBIFI) and Nigeria Union of Allied Health Professionals (NUAHP).

Others were Senior Staff Association of Communications, Transport and Corporations (SSACTAC), Senior Staff Association of Universities, Teaching Hospitals, Research Institute and Associated Institutions (SSAUTHRIA), Senior Staff Association of Electricity and Allied Companies (SSAEAC), and Air Transport Services Senior Staff Association of Nigeria (ATSSSAN).

July 10, 2015
Insecurity: TUC withdraws ultimatum to Rivers police chief

The Trade Union Congress of Nigeria (TUC), River State chapter, has withdrawn its 14-day ultimatum to the new Commissioner of Police, Rivers State Command, Mr. Chris O. Ezike, to improve the security of lives and property in the state or have its members withdrawn from work in protest.

TUC state Chairman, Comrade Hyginus Chika Onuegbu, said the decision to withdraw the ultimatum taken at a meeting with the Commissioner of Police (CP) on Wednesday, July 8, this year, where the Congress pledged to collaborate with the CP and state Police Command to improve the security in the state.

“The meeting was very fruitful as CP Ezike assured the Union that the Rivers State Police Command was working assiduously to improve security of lives and property in Rivers State and also solicited the support of organised labour in Rivers State. The CP also informed the Union of some of the successes recorded by the State Police Command since his assumption of duty,” Onuegbu said, in a statement made available to The Nation.

He also said TUC Rivers listed some security challenges facing its members and affiliates in the state, especially increased cases of kidnapping, armed robbery, destruction and killings.

TUC had in a letter to the CP last Friday, gave the CP a 14-day ultimatum to improve the security or face its members’ wrath. The union noted the spate of criminality, adding that it has reached an unprecedented level in the state.

TUC said: “The situation is so bad that many of our members now live in fear and are actively seeking for transfers out of Rivers State. Also, worrisome is the unwarranted attacks on the secretariat and leadership of labour unions in Rivers state.”

At the meeting were the executives and officers of key TUC’s affiliates in the state. They include the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), Association of Senior Civil Servants of Nigeria (ASCSN), Association of Senior Staff of Banks, Insurance and Financial Institutions (ASSBIFI) and Nigeria Union of Allied Health Professionals (NUAHP).

Others were Senior Staff Association of Communications, Transport and Corporations (SSACTAC), Senior Staff Association of Universities, Teaching Hospitals, Research Institute and Associated Institutions (SSAUTHRIA), Senior Staff Association of Electricity and Allied Companies (SSAEAC), and Air Transport Services Senior Staff Association of Nigeria (ATSSSAN).

July 10, 2015
‘NASENI programme’ll wealth creation’

ThE Advanced Manufacturing Technology (AMT) Programme of the National Agency for Science and Engineering Infrastructure (NASENI) will create more wealth, its Chief Information Officer (Media and Protocol), Mr. Segun Ayeoyenikan, has said.

Speaking in Abuja, he said the AMT programme for wealth generation could deliver increased industrial productivity to reduce importation of goods, equipment, raw materials and services that translate to increase in Gross Domestic Product (GDP).

Ayeoyenikan added that AMT could help reduce capital flight by generating value added employment, boosting performance of entrepreneurs and members of Manufactures Association of Nigeria (MAN).

He affirmed NASENI’s readiness to provide facilities at its headquarters and its institutes for training in the various aspects of AMT.

“The main objective of AMT programmes is to provide local training for the development of skills to address the shortage of qualified and competent technologists, technicians and engineers. We will focus, especially on design and manufacture of process equipment,” he explained.

Ayeoyenikan said NASENI would provide high quality post-graduate training that would contribute to the Front End Engineering Design (FEED) in the manufacturing sector.

“For Nigeria to be ranked among the 20 richest countries by 2020, there is no alternative to the adoption and application of AMT for economic growth,’’ he said.

Customs turns the heat on smugglers of poultry products. Smugglers of poultry products into the country are in for tougher time following the launch a special anti-smuggling operation against illegal importation of the products by the Nigeria Customs Service (NCS). The operation code-named ‘Hawk Descend’ was part of NCS efforts to salvage the poultry sector.

Launching the operation at Seme border, Comptroller-General of Customs, Dikko Abdulahi said the objective of the operation is to achieve national food security and protection of the economy against smuggling of frozen poultry products.

According to him, Nigeria can no longer be a dumping ground for smuggled products, most of which are preserved with chemicals dangerous for human consumption.

He said: “During this period, our operatives will intercept smuggled products, seize and destroy them in line with the provisions of extant laws and regulations.

“There will be no hiding place for smuggled chicken in our land. Our hawks will descend and mop them out of circulation. As we roll out our guns smoking, we are strengthened by the outcome of recent medical research, which reconfirmed our fears about the health hazards of consuming smuggled products.’’

Dikko, who was represented by Deputy Comptroller-General (DCG), Investigation, Inspection and Enforcement, Tahir Musa, said NCS needed to send a message to the exporter-countries that Nigeria would no longer be a dumping site for useless products.

July 10, 2015