The Nation Newspaper

Category: Industry

  • African Standards bodies’ forum for June 22

    African Standards bodies’ forum for June 22

    Ahead of the President’s forum of the African Organisation for Standardisation (ARSO), leaders of African Standards bodies have concluded plans to explore issues and frameworks to drive economic integration in the continent.

    Billed for June 22 in Abuja, the forum is expected to address issues bordering Africa’s standards development, especially in terms of harmonisation of standards, building of vital institutions and facilities needed to fast-track regional and continental trade.

    The forum which features the largest turn out of African standards managers will also serve as occasion for the induction of African states that currently have yet to join the global quality movement.

    Of the 54-member countries of the African Union (AU), 35 belong to ARSO while the AU Council of Ministers of Trade has expressed commitments to work towards ensuring that all African countries get on board by 2017.

    The AUC had set a target of an African Free Trade zone by 2017 and also declared the date as the African Year of Standards to jumpstart intra-Africa trade that is currently around five per cent and symbol of the heavy dependence of Africa on the rest of the world.

    According to ARSO President, Dr. Joseph Odumodu, the prime objective of the forum is to remove the restrictions to trade between African countries placed by the differences in the standards governing trade in the different countries.

    He said: “Every organism prospers by utilising the material which every part supplies. But hardly does Africa draw strength from the trade the different countries in the continent engage in because, separated by standards, the countries hardly trade among themselves.

    “Now, ARSO President’s Forum Abuja 2015 is bringing 55 heads of national standards bodies (NSB) in Africa together to open the gates of harmonisation of standards and let goods and services flow smoothly across the continent.

    “Sitting at a roundtable with 55 NSB CEOs is a rare opportunity for entrepreneurs to expand their business to other African countries. By participating in the ARSO president’s forum, companies are automatically at the gates of 55 African countries and are a step to the 1.1 billion consumers in the continent. Imagine when they now establish relationships with the NSB CEOs,” he said.

    Odumodu explained that what ARSO is doing now is to create a forum for everybody to be part of the association in preparation and for realisation of the 2017 CFTA agreement.  “One of the things I must say or two things we must take out of what we will be doing by June 22-25 in Abuja is to aid membership growth of ARSO. If you look at Africa, Africa remains the major dumping ground for sub-standard products and the reason is obvious.

    “Technology is not advanced and the people are fairly ignorant, there is a high level of poverty and of course, we have a very fairly weak regulatory framework and we make products to enter and leave even when we know they do not meet the criteria,” he stated.

    According to him, “there is need to under the auspices of ARSO support other countries to build capacity to be able to understand and appreciate what sub-standard products do and how they harm us but even more importantly, to ensure that under the African forum and using ourselves as a pressure group to AU, begin to challenge dumping on African soil”

  • BoI unveils loan application tracking system

    BoI unveils loan application tracking system

    Bank of Industry (BoI) has introduced an online real time request platform to assist Small and Medium Enterprises (SMEs) to grow their businesses.

    The bank took this path to stem the failure rate of applications and the inconveniences encountered by business owners to come to their office to make requests.

    BoI Managing Director, Mr. Rasheed Olaoluwa, said: “We have come up with a loan tracking system in such a way that when you apply for loan we give you a code. We have also appointed 122 Business Development Service Providers (BDSPs) to help the businesses write good proposal that will attract loans from banks.

    “Our newly introduced SME Customer portal, where we have value proposals and contact details of all our customers. Currently we have data base for over 400 SMEs. This also makes for easier interaction amongst our customers where they can be encouraged to do businesses together.”

    He further revealed that BoI also has an online loan application portal and encouraged deserving businesses to take advantage of it as the bank in partnership with one of their consultants has modeled an SME mobile application demo to ensure business template models to assists prospective clients.

    Another BoI executive, Mr. Philip Ikhile said the dearth of SMEs has reached an alarming rate mainly due to poor accounting skills and IT illiteracy. To check the trend, he said a package that works for both accounting and non accounting business people that allows up to 20 sub titles, profit and loss account and indeed to keep track of income and expenditure of every business is up to their customers.

    He said for now it sells as a flash drive for N20, 000 but to encourage a lot of businesses to buy into it the bank, he said, is giving it out for N10, 000 for the first 100 businesses that will show interest. He said it is accounting made easy for small businesses to run efficiently to meet not only daily modern business demands but in compliance to international accounting profession ethics and demands.

    Executive Secretary, Nigerian Association of Small & Medium Enterprises (NASME), Mr. Eke Ubiji, commended the bank for the innovation and said it would help his members to stay in business.

    He also reiterated that many businesses have not grown because of the lack of requisite skill in financial literacy, information technology and funding.

    Ubiji said with his position in NASME he would spread the message to his members and encourage them to key into new technological models that would grow their businesses.

  • How industries can boost agric value chain

    How industries can boost agric value chain

    Nigeria spends about N1.3 trillion yearly on food import. But a rethink in favour of using the industrial sector to enhance the agricultural value chain through private sector-led strategy holds promises of reversing the trend. Asst. Editor, OKWY IROEGBU-CHIKEZIE writes that the strategy, which encourages the involement of industries in storage, processing and export of agricultural raw materials to create jobs, enjoys the support of experts as well as the new administration of Muhammadu Buhari.

    Efforts at making agriculture more productive, efficient and competitive are on course. This time, the strategy is to find a way of riding on the back of the industrial sector to further enhacethe agricultural value chain. Essentially, the new rethink is in favour of encouraging  industries to be involved in areas such as storage, processing, and export of finished agric produce to create more jobs for Nigerians.

    To this end, experts and stakeholders in the agric and industrial sector are canvassing private sector-led strategy to boost the agric sector and make it a cash-cow for Nigeria. In doing so, they noted, for instance, that Nigeria has huge agricultural potential with over 84 million hectares of arable land, of which only 40 per cent is cultivated. Also, Nigeria’s estimated population of 170 million makes her Africa’s largest market. Besides, the country has some of the richest natural resources. Regrettably, the country has so far failed to properly harness these opportunities and derive benefits there from.

    However, a new dawn may be in the offing for the sector following renewed emphasis on private sector-led involvement in the agricultural value chain. The strategy is intended   to make  agriculture more productive, efficient and competitive through  improved food production for domestic food supply. It is also hoped that the strategy, which already enjoys the support of President Muhammadu Buhari, would help create more jobs along the agricultural value chain.

    At the 55th Annual Conference of the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), in Calabar, Cross River State, recently, Buhari said agriculture must cease from being treated as a development programme but as a business.

    The President said the urgency of unlocking Africa’s agricultural potential is pertinent because Africa spends $35 billion yearly on food import, with Nigeria taking the lion share. The development, he said, boosts the economies of countries and continents where such food items are imported from, leaving African economies depleted. “Africa has no business being a food importing region. With over 65 per cent of the arable land left to feed the expected nine billion people in the world by 2050, Africa should become a net exporter of food,” he said, adding that the size of the agriculture and agri-business sector in Africa is expected to grow to $1trillion by 2030.

    He projected that Foreign Direct Investment (FDI) in agriculture in Africa will increase from $10billion in 2015 to $45billion in 2020.

    “To unlock this potential, we need to direct resources, both public and private, to agriculture, the sector which employs close to 80 per cent of Africans and accounts for about 40 per cent of the continent’s Gross Domestic Product (GDP),” he said.

    The president, who was represented by the Permanent Secretary, Federal Ministry of Mines and Steel Development, Alhaji Baba Umar Farouk, noted that a nation that does not feed itself becomes a threat to its sovereign existence.

    “Growing our own food, processing what we produce, becoming competitive in export markets, and creating jobs all across economy, are crucial for our national security,” he stated.

    The President added that as the nation drives a private sector-led agricultural transformation, government is also paying close attention to potential challenges, such as inequality and impact on small holders.

    According to him, there is need to embrace growth and make it work for farmers and rural communities.

    Hear him: “Agri-business, with their huge market pool and demand for raw materials for their factories can unlock the much needed market opportunities that have eluded farmers and expand jobs so crucial for the rising youth population in the rural areas as we have a policy that allows agri-businesses to have secure access to land, working closely with states, local government and communities. Such arrangements allow for transfer of technology, development of infrastructure, creation of market facilities, while unlocking shared prosperity between small holders and large commercial farmers.”

    Buhari regretted the ugly turn of events where Nigeria grew from being a major player in the global agricultural market in the past as the world’s largest producer of groundnuts and palm oil in the 1960’s, and the second largest producer of cocoa before the emergence of oil in the 1960’s to the current level she cannot boast of anything. “Today, seven of the 10 fastest growing economies of the world are in Africa.

    But there exists a paradox. The growth is not inclusive, as hundreds of millions only hear about the growth numbers, but feel alienated from the growth process. Africa’s rural economies habour the greatest share of those being left behind or excluded,” he said.

    He, therefore, said there is need for a new growth model in Africa, one that will stimulate shared prosperity, create jobs for millions of rural youth and unlock the huge sleeping potentials of Africa’s vast agricultural lands. He urged experts in the field to come up with recommendations for the government.

    Acting National President, NACCIMA, Chief Bassey Edem, called for enhanced productive economic activities that would bring about growth and development, improved GDP and by implication, enhance the nation’s domestic and foreign exchange earnings as well as more clout for the country in the comity of nations.

    He also called for a sustained growth and development in all areas of the economy where everyone would have equal opportunity to contribute his quota, and where justice and equity will reign.

    Edem assured of NACCIMA’s support, encouraging his members to ensure that they continued to partner the government and other private sector stakeholders with genuine intention to move the economy forward to build a virile nation on the part of sustainable growth and development.

    He said the theme of this year’s conference, ‘Policy consistency in agricultural value chain: A key to social economic development’ came at the right time considering the state of the  economy in particular and the global economy in general. He was referring to dwindling crude oil prices in the international market.

    He harped on the need to look inwards and go back to the basics to appreciate the importance of agriculture in the socio-economic development of the nation.

    “The business community is facing serious challenges. In order to ease these problems and to chart a course for the nation’s sustainable growth and development, we make a clarion call on the various tiers of governments especially now that we have a new democratic regime in place to create conducive environment that will make the economy a private sector driven one.  This is a sure way of making our country a prosperous nation that we all will be proud of,” he noted.

    Executive Director Forum for Agricultural Research in Africa (FARA), Dr Yemi Akinbamijo, who was guest speaker at the event, said Nigeria spends much of its foreign exchange to import food items.

    He called for Public-Private Participation (PPP) to leverage on economic transformation of the agricultural sector. He also made a case for innovations in small scale holders regarding harvesting, processing and access to markets.

    “It will take three things to move the agricultural sector forward. We need to enhance science, research technologies that improve production of the small holder. There is a need to leverage ICT to improve risk management through effective and efficient market linkages, enhance preservation of nutrient quality,” he said, adding that there was also the need to expand entrepreneurship of groups of women and youth, improve productivity via access to improved seeds, fertiliser, water management techniques and equipment financing.

  • How standardisation ’ll boost Africa’s competitiveness

    How standardisation ’ll boost Africa’s competitiveness

    The campaign to strengthen the competitiveness of ‘Made-in-Africa’ products through harmonisation of standards has moved a notch higher. Heads of standards authorities from 54 African countries will converge on Abuja, between 22 and 24, this month, to brainstorm on how to rally the continent to a uniform regime of standardisation, which is believed to hold the key to reducing the preponderance of sub-standard products in Africa and paving the way for industrialisation. Assistant Editor CHIKODI OKEREOCHA reports.

    The resolve to rid Nigeria of  substandard products has never been in doubt. Even before his appointment as Director-General of Standards Organisation of  Nigeria (SON), Dr Joseph Odumodu, had, in his capacity as first indigenous Managing Director of May & Baker Nigeria Plc, demonstrated his quality consciousness when he completed the May & Baker Pharma Centre to the standards of the World Health Organisation (WHO).

    The N4 billion pharmaceutical facility was constructed with the aim of getting the company’s products certified for sale in the international market. It also earned the pharmaceutical giant the WHO Good Manufacturing Practice certification.

    It was the same culture of quality and standards Odumodu brought to bear on his job at May & Baker that he sought to replicate at SON when he was appointed the DG in 2011. As part of efforts to enthrone the culture of quality and standards, he moved to refocus SON through the launch of a six-point agenda, comprising consumer engagement, media engagement, compliance monitoring, capacity building, global relevance and competitiveness of made in Nigeria products.

    The icing on the cake of his interventions was perhaps, the launch of ‘Zero Tolerance Campaign’ to rid Nigeria of fake and substandard products. The initiative has since paid off, reducing the preponderance of substandard products from about 85 per cent to about 40 per cent.

    Having curtailed the activities of importers and manufacturers of fake and substandard products in Nigeria and imbuing the culture of quality and standards, Odumodu now has a new responsibility placed on his shoulders: extending the campaign to the continental level where, according to him, over 80 per cent of substandard products in Africa come from outside the continent. His new charge was sequel to his election as President of African Organisation for Standardisation (ARSO), in Yaoundé, Cameroun, two years ago. As ARSO President, he is now is seeking synergy among National Standards Bodies (NSBs) in Africa to curtail the evils of sub-standard products through the harmonisation of standards for ‘Made in Africa’ products and services.

    ARSO is an inter-governmental body established in 1977 by the Organisation for African Unity (OAU), now African Union (AU) with support from the United Nations Economic Commission for Africa (UNECA). With its secretariat in Nairobi, the Kenyan capital, the organisation is saddled with the primary responsibility of co-ordinating issues of standardisation amongst all NSBs in Africa. The purpose is to promote the harmonisation of African standards and conformity assessment systems, promote competitiveness of African goods and services by removing all  technical barriers to trade, and provide a basis for value addition on African oriented raw materials to promote industrialisation.

    ARSO also promotes self-sustainability for the continent through intra-African trade, as well as represent the continent in global issues of standardization, among others. Accordingly, ARSO is mandated to harmonise national and sub-regional African standards.

    It is also mandated to promote and facilitate exchange of experts, information and cooperation in training of personnel in standardisation activities, aside coordinating the views of its members at the ISO, International Electro-technical Commission (IEC), International Organisation of Legal Metrology (OIML), Codex and other organisations that engage in standardisation activities.

    Aware that without the culture of quality and standards, ‘made-in-Africa’ products would remain uncompetitive and frustrate efforts at industrialisation, ARSO, to fulfil its mandate, has moved to break new frontiers through standardisation.

    Consequently, 54 heads of  NSBs in Africa would converge on Abuja, between 22 and 24 this month, to seek ways of strengthening the continent’s competitiveness through the harmonisation of standards for goods and services.

    At a media launch of the convention logo and information manual, and partnership drive for the conference tagged: ‘ARSO President’s Forum’ in Lagos, penultimate week, Odumodu explained that the mobilisation of all NSBs into the membership of ARSO would drive the standardisation programmes to strengthen the competitiveness of made-in-Africa products and engender regional and, or continental fusion into an economic bloc. To achieve this, he said there is need to increase ARSO’s membership from 34 to 55.

    Odumodu noted that African economies can gather their momentum to become more robust and competitive if countries in the continent constitute a powerful and vital force to fight economic saboteurs. He expressed optimism that a synergy amongst the various African countries could frustrate the activities of dealers of fake and substandard products. He reiterated the fact that over 80 per cent of sub-standard products circulating in Africa come from outside the continent, a situation which he described as quite worrisome.

    “The global activities in trade indicate that no country or continent can advance industrially, economically and socially, without the culture of quality and standards,” Odumodu pointed out, calling on stakeholders to partner and support SON and ARSO in showing the strength of Nigeria as a people  to break new frontiers through standardisation. He said on its part, SON had carried out a number of re-engineering activities, which involved organisational certification, accredited laboratories, and secretarial coordination of the Nigerian National Quality Policy (NNQP), among others.

    Odumodu said as part of effort to assist other African countries enthrone the culture of standards, SON has given a total of 800 standards valued at $9 million to African countries, which do not have the technical and financial capacity to do so. He noted that the gesture also makes harmonisation of standards easy, adding that  SON has trained standards authorities in other African countries, such as Gambia, Sierra Leone, and Liberia, on standardisation. “These countries now have their own standards bodies courtesy of Nigeria,” he said.

    The three-day ARSO President’s Forum, which is an opportunity for NSBs in Africa to synergise on how  to engineer free flow of goods, services and technology across the continent, has three sub-events, namely: the ARSO CEOs Roundtable, the ARSO Made in Africa Expo, and the African Day of Standardisation. The CEOs Roundtable is an exclusive conference for 54 heads of standards authorities in Africa since they have to iron out their differences and move the continent forward in standardisation and internal trade.

    Odumodu explained further:: “The CEOs will provide opportunity to chart a course for the standardisation of African products and the integration of a common market. Though the harmonisation of standards at both the regional and continental levels is an ongoing effort, the actual implementation of all the activities achieved so far lies on the shoulders of the CEOs to implement.”

    The Made-in-Africa Expo is a trade fair where exhibitors from  all over Africa and seekers of  standard products will meet, learn, make enquiries or transact business as they wish. A wide range of products will be on the stands and they will be good products befitting of a gathering of Africa’s standardisation experts, industrialists, marketers and seekers of high quality products.

    It also seeks to provide Micro, Small, and Medium Enterprises (MSMEs) opportunity to showcase products that have continued to remain shielded from markets because of fear of regulatory bureaucracies.

    On the other hand, the African Standardisation Day would celebrate the modest achievements and sensitise the continent on the essence of standardisation and inform the people on their various roles and responsibilities. This has become necessary in view of the technical nature of the issues involved in standardisation.

    Themed: ‘The role of standards in promoting sustainable agriculture and food security in Africa’,  the day is marked by seminars and workshop to share ideas on issues that are at the front burner and require intervention by all stakeholders.

    The forum, according to Odumodu, is structured in such a way as to achieve ARSO’s four  strategic plans 2012- 2017. They  include establishing standards harmonisation systems that supports a sound regulatory framework,  strengthening of ARSO work management capabilities for the sustenance of the organisation,  promotion of maximum and effective participation of members and other stakeholders, and disseminate harmonised standards and guidelines to support intra, inter-African and international trade and industrialisation.

  • ‘How our profit margin improved’

    The Finance Director, Nigeria Breweries Plc (NBL) Mr. Mark Rutten has said most of the revenue gained by the brewer came as a result of low foreign exchange (forex) exposure based on the   local raw material content of their products.

    “Combined portfolio makes it possible to have a stable price as we have products at  every segment of the beer, stout and  malt market. Interestingly some people are moving from high priced brand to low priced ones and the variety of our products as a result of the combined portfolio gives all segment accommodation,” he said.

    Rutten said though competition is stiff, the consolidation undertaken by NBL with a brewer and preference for local raw materials, strategic support for research and development gave the firm an edge in the face of turbulent operating environment and occasioned by lack of parity in the forex market.

    NBL Managing Director, Mr. Nicolaas Vervelde, said the company increased its portfolio of brands last year with the addition of Ace Passion in addition to two-line extension of the Star brand that comprise  Star Lite and Star Radler.

    “Also in 2014 as a result of merger with Consolidated Breweries, 33 Export lager beer, William Dark Ale, Turbo King Dark Ale, more larger beer and two malt drinks, Maltex and Hi Malt together with Breezer, a blend of rum and fruits became part of the company’s products,” he said.

    Though the company recorded low growth in the 2014 financial year, it gained overall market share in Extra Larger Stout and Malt.

    He said: “We were successful in the year due to our large portfolio of  stout and malt. We removed unnecessary costs, reduced logistics cost and achieved cost leadership.”

    Vervelde, who attributed the marginal decline in profit to the socio economic impacts, explained that for decades, the company has been sourcing its raw materials locally.

    He said there are over 250,000 Nigerian farmers that are developing sorghum varieties, which indirectly and directly generates employments with local purchase supporting 85,000 jobs.

    According to him, the company, in conjunction with Heineken supply chain B.V. of Netherlands and other Heineken companies, is involved in activities aimed at development of new hybrid sorghum varieties with the potential of increasing the yield/output for sorghum farmers and improving the quality of sorghum malt, which is a major raw material input.

    He noted that two yielding hybrid sorghum varieties have been developed and registered by the company and the process of commercialising their production is on-going.

    He also added that the company has a subsisting consultancy agreement with a Nigerian professor on the development of sorghum seeds.

    “The company has entered into supply agreements with local cassava starch processors whose activities have impacted positively in the communities where they operate.

    “We have off-take arrangements with a  multinational company that has huge investment in sugarcane value chain. This is aimed at replacing imported sugar in our recipe with a local substitute,” he said.

    For the year under review, the company declared a profit after tax of N42.5 billion, a drop of 1.3 per  cent when compared to N43.08 billion recorded in the same period of 2013.

  • Govt can borrow, says ex-NACCIMA chair

    • New president to emerge at AGM

    Opponents of  borrowing by the government may have lost a supporter as a former Chairman, Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), Chief John Odeyemi,  said the government could borrow for development.

    He said the United States (US), which is the highest debtor-nation in the world, is also the most developed, adding that owing is not illegal.

    He spoke at the Building construction and mining mart in Lagos organised by NILE in Lagos,

    Citing the Lagos State Government that was  accused of owing so much, Odeyemi defended the state as having competitive infrastructure and improving the lives of the citizens compared to other states.

    He said as long as what one is doing is viable, acceptable and beneficial to the people, debts accumulation was not  a problem.

    Odeyemi urged the incoming government to focus on the non-oil sector, such as mining and construction.

    The former NACCIMA chair warned of the imminent collapse of the economy with the lingering fuel and electricity crisis that has brought manufacturers to their feet.

    ”We need to take hard and realistic decisions today and next week, the out-going administration should pay the fuel marketers while the incoming government should work on deregulating the petroleum sector and let those who can import do so without government having anything to do with it,” he said.

    Odeyemi said two of the companies he is involved in had a down time of between two and three weeks where staff were asked to stay at home. He advised that if it is left to linger thousands of jobs would be lost.

    On high interest rate, he said it frustrates people from setting up businesses. “Small and Medium Enterprises (SMEs) can’t cope with high interest rates because they contend with a lot of other factors. Security is also an issue when the economy is down, you can’t manage security when there is no electricity, and things go wrong in dark places,” he lamented.

    According to him, people who otherwise would have been engaged are left unattended to and they will have no choice but to engage in crimes. “If people cultivate their crops and can’t store them because of poor storage and electricity they will be discouraged. Steady electricity supply and good storage facility are ways to check security and poverty,” he added.

    He called for greater private sector participation in all sectors, insisting that the government has no business in business.

    His words: “Until Dangote Cement came into the sector, the cement sub-sector was distraught with government’s cement companies in comatose and moribund. Dangote came, bought over the moribund companies, and turned them around. Now, the company is producing over 30 million metric tonnes, as he brought in technology and expertise into the business against his major competitors that has been here over 50 years and refused to make impact in the sector.”

    Meanwhile, NACCIMA will on next Wednesday hold its Annual General Meeting (AGM) to elect a new president and national officers who will run the affairs of the association in the next two years.

    The 55th AGM has as its theme: Policy consistency in the agricultural value chain: A key to socio-economic development.”It is billed to hold at the Transcorp Hotel, Calabar, Cross River State.

    Highlights of the ceremony would be the investiture of Chief Bassey Edem as the 18th National President. He takes over from Alhaji Abubakar Badaru Mohammed, the new governor of Jigawa State.

  • LCCI: ICT has revolutionalised business

    LCCI: ICT has revolutionalised business

    The growth in the Information Communication Technology (ICT) industry in the last 15 years has revolutionalised businesses, President, Lagos Chamber of Commerce and Industry (LCCI), Alhaji Remi Bello, has said.

    He spoke at the ICT Expo (ICTEL EXPO) by the Trade Promotion Board of LCCI in Lagos, which  had its theme as ‘Connecting businesses and creating opportunities’.

    Bello said all sectors of the economy rely on ICT for their operations.

    “From the financial sector, where e-banking is now the vogue, the agricultural sector, where the government now sells fertiliser through mobile phones to the consumer goods sector where online stores are now all over, ICT and telecommunications have become the backbone of businesses,” he said.

    Bello explained that the expo was aimed at providing a credible platform to advance the opportunities and linkages in ICT.

    He reiterated the chamber’s optimism towards a great investment opportunity that would come from closer interactions and business integration among ICT players and their customers at the expo, pledging his support towards it.

    LCCI Vice President and Chairman, Trade Promotion Board, Dr. Michael Olawale-Cole, said the chamber chose the ICT sector because of its potential to revolutionalise business transformation, growth and improving the standard of living of people and communities through innovations.

    He added: “The expo gives a 360 degree view of the ICT industry and provides visibility to sweeping trends and innovations as well as providing an excellent networking opportunity for business decision makers, innovation managers, enterprise solution providers and start-ups.’’

    Others are ICT academics, original equipment manufacturers (OEMs), investors, venture capitalists and other players in the ICT and telecom sectors,” he explained.

    Olawale-Cole said LCCI was aware of the revolutionary roles ICT and telecoms play in business relationship and development.

    He said with the incursion of ICT and telecoms, it would no longer be business as usual. “It has dawned on business people that you either embrace this technological evolution or ignore it at your own peril,” he said.

    Earlier, Executive Chairman, Nigeria Communications Commission (NCC), Dr. Eugune Juwah, said ICT  has grown such that it has moved into data and broadband.

    He said though there were challenges, the advantages of ICT in modern business could not be over emphasised.

    Juwah, who was represented by the Director, Special Duties of NCC, Ms Akiode Funlola, said with appropriate infrastructure the sector would grow the industrial sector.

  • Nigeria’s thorny road to cocoa revival

    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 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 annually.

    The minister, who spoke at the Nigerian Cocoa Value Addition Summit, held in Abuja, recently, said the renewed emphasis on cocoa will create thousands of jobs. According to him, 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 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 N43.191b exportation of the products in the first quarter of the year, while more than N18. 558b 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. At present, 90 per cent of chocolate products in the Nigerian 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 annually 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 ‘N100b 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 7th edition of the annual Academy of Chocolate Award, held 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 State 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.

  • ‘Why infrastructural projects are delayed in Nigeria’

    Nigeria recorded over $93 billion in infrastructure deficit over the years, and for government to attract additional infrastructure financing for increased delivery of projects, it needs to renew its focus on delivering financial instruments, Managing Director of Hortigraph Nigeria Limited, Murtala Abubakar, has said.

    Speaking at the unveiling of the Standards Organisation of Nigeria (SON) Metrology Institute in Enugu, Abubakar said infrastructural projects in the country are often not delivered within the agreed timeline due to financing gap that often keeps contractors at sites beyond agreed period, while widening the budget of the project.

    Indeed, a recent report by PricewaterhouseCoopers Limited showed that Nigeria’s infrastructure projects are most times behind the scheduled date of delivery by at least two years, while budget estimates are double the original estimates.

    Abubakar noted that in addressing this key challenge of financing, cost of funds should be addressed, adding that financial instruments required to attract additional infrastructure financing to the country like, bridge equity, secured loans, refinancing/secondary transactions, as well as credit enhancement and other risk mitigation measures geared at attracting non-traditional funders such as institutional investors and international investment banks should be created.

    He explained that his company, with many years of experience in key mass housing and infrastructural projects, hopes to complete the metrology institute within the timeline of three years considering other major variables.  “As a civil engineering firm with at least 15 years experience in housing and government projects, the Nigerian Metrology Institute (NMI) is the first project that the firm would be executing for SON and we have commenced work to ensure that the timeline of three years is met while ensuring that the quality and standards of the project are not undermined.

    ”We are also working to ensure the sustainability and environmental friendliness of the project by ensuring that it complies with the Environmental Impact Assessment (EIA) requirements,” he added.

    Already, PwC in its report had stated that, “infrastructure plays a key role in economic growth and reducing poverty having a 5-25 per cent yearly return on investment as an economic multiplier.

    “Those countries that have been most successful in developing and maintaining infrastructure have established programmes of prioritised investment opportunities with a number of features, including clear political support, proper legal and regulatory structure, a procurement framework that can be understood by both procurers and bidders, and credible project timetables,” he said.

  • African Banker Magazine profiles Adesina, others for AfDB presidency

    African Banker Magazine profiles Adesina, others for AfDB presidency

    The second quarter issue of African Banker Magazine has profiled Nigeria’s Minister of Agriculture and Rural Development, Akinwumi Adesina and seven other candidates vying for the African Development Bank (AFDB) Presidency.

    In the magazine’s one-to-one sessions, Adesina and other candidates, for the continent’s premier multilateral financial institution, shared their strategic visions, priorities and agendas for the bank.

    In the extensive dossier, the eight candidates indicated their suitability for this momentous job and the credentials required to lead Africa’s most prominent development institution.

    The eight candidates spoke candidly and openly about their ambitions for the bank. Among the eight contenders vying for the Presidency, five currently serve as ministers, one former minister and a Development Banking specialist.

    Adesina feels that his experience in transforming the agricultural sector in Nigeria, and his first experience working and operating in various African countries will keep him in good stead. “My vision is based on continuing decentralisation and increasing support for private initiatives,” he said.

    Having overseen Ethiopia’s strong growth into one of Africa’s leading economies, the country’s Finance Minister, Sufian Ahmed, believes the AfDB will be safe in his experienced hands.

    The former Minister Finance of Tunisia, Jaloul Ayed, asserts that his banking experience has allowed him to gain a clear understanding of Africa’s full potential. He calls for an AfDB that is closer to its markets.

    Chad’s Minister of Finance and Budget, Kordjé Bedoumra, states that following his previous tenure at the AfDB, he has the experience and expertise to improve operational efficiency of the bank as well as shape its short and long term policies.

    The only female candidate in the race is Cape Verde Minister of Finance and Planning, Cristina Duarte,  who says whatever improvements need to be made, the AfDB can never forget its mission, which is to serve Africa and its people.