Category: Industry

  • ‘Why CPC cannot register products’

    The plan by the Consumer Protection Council (CPC) to register manufactured products in the country has been condemned by the Lagos Chamber of Commerce & Industry (LCCI).

    Condemning the move, the chamber said the law did not support  CPC and that the exercise smacked of usurping and duplicating the roles of the Standards Organisation of Nigeria (SON) and the National Agency for Food Drugs and Control (NAFDAC).

    “Compelling businesses to register with the CPC is, therefore, most unnecessary and an additional regulatory burden on the private sector.

    “We call on the relevant authorities to prevail on the CPC to discontinue this course of action. It is, in fact, imperative for the incoming administration to undertake a comprehensive audit of the regulatory environment to identify and eliminate all areas of overlapping functions of regulatory agencies,” LCCI President, Alhaji Remi Bello, said.

    Briefing reporters in LCCI Lagos office, Bello took a swipe at the power sector reforms, insisting that the burden of high cost of energy for investors have persisted and remained one of the biggest issues in the investment environment.

    “The power sector reform and the privatisation that followed have not achieved the desired result. It has, therefore, become necessary for the incoming administration to undertake a holistic view of the power sector reform. This should cover the processes of the reform and the capacity of the major institutions in the power delivery chain,” he said.

    He, however, acknowledged the profound financing gap in the economy, noting that the gap exists for investment in both the private and public sector. He said: “The emphasis on the drive for foreign investment should be on Foreign Direct Investment (FDI) and investment in infrastructure. In recent years, the economy has witnessed a disproportionate inflow of portfolio investments, which turned out to be a major source of volatility in the economy, leading to significant shocks.”

  • How standardisation can boost Nigeria’s trade power

    How standardisation can boost Nigeria’s trade power

    The African Organisation for Standardisation (ARSO) forum will hold in Nigeria from June 22 to 24. It is expected to bring together standards authorities from 54 African countries to brainstorm on how to harmonise standards for goods and services. The forum is an opportunity to rally the continent to one regime of standardisation to boost trade, Assistant Editor CHIKODI OKEREOCHA writes.

    At present, Nigeria and, indeed, the continent has no clear and coordinated approach to standardisation of goods and services. The lack of a uniform regime of standardisation is believed to be responsible for Africa’s meagre share of global trade put at three per cent.

    For a country such as Nigeria that is seeking to diversify her economy, following the sharp drop in revenue caused by the fall in oil prices, there is an urgent need to standardise her goods and services to make them competitive in the global market place.

    According to experts, this means that Nigeria potentially stands as the biggest beneficiary of any arrangement that would usher in a regime of standardisation to ease the movement of goods and services within and outside the continent.

    It is against this backdrop that the election of the Director-General,  Standards Organisation of Nigeria (SON), Dr Joseph Odumodu, as president, African Organisation for Standardisation (ARSO), in Yaoundé, Cameroun, two years ago, raised the hopes of not a few industry operators and stakeholders. The expectation was that Nigeria would ride on the platform of the continent-wide campaign to harmonise national and sub-regional standards to boost trade and perhaps, increase her share of the global trade.

    Incidentally, Odumodu was aware of such expectation while the importance of standardisation to the country’s economic fortunes was not lost on him. This was why on assumption of office, he urged a stronger ARSO and massive investment  in quality infrastructure at national and continental levels. He also expressed optimism that if all heads of government and heads of standards authorities in Africa heeded the call for a uniform standardisation, the quality of goods and services from the continent would improve and attract more buyers (more income for investors and workers) and more employment for youths. This, he noted, would help the continent transit to an industrialised economy which products would be globally acceptable.

    Now, an ample opportunity for Odumodu to further push the standardisation agenda and position the country to benefit from the initiative is here. As ARSO president, Nigeria will host heads of standards authorities from 54 African countries in Abuja, the Federal Capital Territory (FCT) between June 22 and 24. The three-day conference tagged: ‘ARSO Presidents’ Forum’ is an opportunity for the standards regulators to brainstorm on how to engineer free flow of goods, services and technology across the continent. The forum aims at activating the collective efforts in standardisation that will break the barriers to trade for the continent to prosper.

    ARSO, an inter-governmental body, was founded in 1977 by the Organisation for African Unity (OAU), now African Union (AU) and the United Nations Economic Commission for Africa (UNECA). With its secretariat in Nairobi, the Kenyan capital, the organisation has its roots in the African independence heroes’ desire for inter-African trade as key to the continent’s prosperity and their understanding that standardisation is the strategy for achieving it.

    Accordingly, ARSO is mandated to harmonise national and sub-regional standards as African standards. It is also mandated to promote and facilitate exchange of experts, information and cooperation in training of personnel in standardisation activities. The association also has the objective to coordinate the views of its members at the International Standardisation Organissation (ISO), IEC, OIML, Codex and other organisations that engage in standardisation activities.

    However, despite this inspiring mandate, the association has not succeeded in rallying the whole of the continent to one regime of standardisation. This, according to experts, is not unconnected with the fact that many African countries (including those that have ratified the ARSO constitution) are not committed to the success of the body. Many of them are also not paying their dues and are not participating in ARSO activities. Worse still, many of them don’t even have a national standards body; their standardisation activities are said to be carried out by an ordinary directorate within a ministry.

    The task before Odumodu is therefore, enormous. However, going by the activities lined up for the forum, observers say the SON DG appears to have a hang on how to turn things around. For instance, the ARSO President’s Forum has three sub-events, namely the ARSO CEOs Roundtable, the ARSO Made in Africa Expo and the African Standards Day Seminar. The CEOs Roundtable is an exclusive conference for only the 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.

    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. The only companies, which can display their products in this fair are the ones that present evidence of current approval from their country’s national standards body.

    On the other hand, the African Standards Day Seminar will have Nigeria’s Minister of Agriculture and Rural Development as resource person. He will speak on ‘The Role of Standards in Promoting Sustainable Agriculture and Food Security in Africa.’ Discussants will be selected from among the heads of standards authorities to provide additional country perspectives.

    A Director at SON and Chairman of the Local Organising Committee,  Dr. Paul Angya, said invitations to the forum have already gone to the standards authority in each African country as well as to key industrialists and business people. He said Africa’s trade situation will never be the same again after the forum, adding that it promises to be a turning point in the continent’s joint effort to make progress.

    Some quality management practitioners who spoke with The Nation say once all the heads of standards meet and subscribe to  standardisation as a proven strategy for the individual countries and the continent, their interest in and commitment to ARSO will increase and that will make the body stronger. Also, those of them that have no national standards body will, under the influence of those that already have, will begin to strive to have theirs.

    Also, those who are not building up their national quality infrastructure will also learn from those who are. As the quality infrastructure improves across the continent, better African products will emerge, winning more buyers from within Africa and beyond, and making increased inter-African trade and increased African share of world trade a big reality.

    When this happens, Nigeria would certainly benefit. A Quality Management Practitioner and National President, Association of Systems Management Consultants, Mazi Colman Obasi, said for instance, Nigeria’s lack of a national quality infrastructure is responsible for its damaging economy and brand reputation.

    A national quality infrastructure is a system of institutions, which jointly ensure that products and services produced in the country meet predefined specifications. It also provides technical support to companies so they can improve their production processes and ensure compliance with regulations or international requirements.

    Obasi lamentedthat lack of quality infrastructure is not only partly responsible for Nigeria’s rising unemployment, but its remaining globally competitive. “Until we have many companies that are accredited with ISO 9000 management systems certification, we are not going anywhere; we cannot export anything,” he said, insisting that the country should work towards having a quality management plan.

    Obasi called on the authorities to fast-track the establishment of a National Quality Policy (NQP). Without NQP, Nigeria’s standardisation efforts will continue to look uncoordinated and unclear. NQP’s objective is to make quality the way of life in Nigeria. It will define the apex standardisation institution in the country; clarify the boundaries for each of the regulatory agencies; minimise conflict between them; enhance cooperation between them; and identify existing as well as needed infrastructure as well as chart its own implementation.

    Obasi said: ”Quality is number one. It is the first thing that ought to be considered as the nation focuses on building a robust export-based economy.” He regretted that despite being acknowledged globally as one of the largest consumer markets, Nigeria is yet to be accredited by the International Accreditation Forum (IAF), the regulatory arm of the ISO.

    The expert said countries such as South Africa, Egypt, Tunisia, Kenya and Mauritius have since been accredited by the IAF, in line with global emphasis on quality. According to him, for Nigeria to be accredited by IAF, it must have in place an NQI which refers to all aspects of metrology, standardisation, testing, quality management, certification and accreditation that have a bearing on conformity assessment.

    Estimates by the Organisation for Economic Cooperation and Development (OECD) and the United States (U.S.) Department of Commerce show that standards and related conformity assessment (checking that products and services measure up to standards) have an impact on 80 per cent of global trade in commodities. The World Trade Organisation (WTO) requires its members to use international standards of the type developed by ISO to avoid the technical barriers to trade owing to differing national or regional standards.

    At present, products and services manufactured in the country lack global quality certification. They are denied access to markets in developed economies, a situation that has been a pain in the neck of manufacturers, as their productivity and competitiveness continue to suffer. According to experts, standardisation will boost the competitiveness of locally made products at the international market and ensure the global acceptance of products and services from Nigeria.

    This is true for Nigeria considering the fact that her manufacturing sector is still emerging, depending almost totally on other countries for her supplies of manufactured products. The nation does not have much to offer other than raw materials and that makes the people the poorest in the world. Cocoa, rubber, shear butter, petroleum, iron ore and other commodities go cheap from Africa and once the other continent has processed them into secondary or tertiary products such as beverages, pharmaceuticals, shoes and machines, Nigerians buy them at a huge cost.

  • ‘Revive MSMEs, address unemployment, others’

    The National Association of Small and Medium Enterprises (NASME) has urged the President-elect, Gen Muhammadu Buhari (rtd), to revive small-scale businesses.

    Its Executive Secretary, Mr Eke Ubiji said in Lagos, that sustained  policies on Micro, Small, and Medium Enterprises (MSME) will enhance economic development.

    He said Buhari’s experience in governance has positioned him to have a better understanding of the needs of the real sector and its strategic place in sustaining national development.

    According to him, for Nigeria to attain its goal of becoming one of the top economies, special attention should be given to MSMEs, a critical sector that would drive the economy effectively.

    He said:“The president-elect should give cognisance to MSMEs by addressing the various challenges facing it because that sector will help generate employment for its teeming unemployed youths.

    “The challenges of infrastructure, transportation and power are critical to the survival and growth of viable MSMEs. The issue of multiple taxes should also be addressed. If you listen to entrepreneurs in different parts of the country, they are saying the same thing. Federal Government is charging tax, states and local governments are also charging, all on a sector that is not moving forward.”

    Ubiji also urged Buhari to improve on President Goodluck Jonathan’s efforts in rail transportation and access to finance for MSMEs in the country.

    He said: “Most critically, the issue of access to finance is grinding MSMEs to a halt. President Goodluck Jonathan did something very spectacular on March 23, this year. He launched a new development finance institution for the country, called Development Bank of Nigeria.

    “It is a good initiative and I expect the president-elect to pay attention to it because it is a bank that is set up to address the issue of access to finance as it affects MSMEs in the country.”

    “You don’t throw away the baby with the bath water.”

    Pointing out that although Jonathan may have tried and failed in some areas and that there were some things he did that were good and commendable. He advised Buhari to constitute a strong and knowledgeable economic management team that would steer the economic affairs of the country to the desired change.

    He urged Buhari to appoint people who know their onions with regard to economic issues to advise him properly so that they would be able to come up with good economic blue print for the next four years.

    “Economically, Nigeria is not in good shape now. If the challenges facing the economy are not addressed then we are still where we are,” he said.

    The National Bureau of Statistics (NBS) recently put the number of MSMEs in Nigeria at more than 17 million.

  • ECN, NBTI to partner on commercialisation

    The Energy Commission of Nigeria (ECN) will collaborate with the National Board for Technology Incubation (NBTI) to commercialise its research and development products.

    Its Director-General, Prof. Jere Bala, who spoke in Abuja, said the commission’s collaboration would explore the avenues for commercialising some of its research and development output, adding that the processes had been ongoing.

    He said there were various research and development programmes at six of its Energy Research Centres in the universities of Sokoto, Nsukka, Lagos, Ilorin, Bauchi and Benin.

    Bala said the University of Lagos (UNILAG) had been carrying out research and development on energy efficiency and conservation; Benin on energy and environment; Ilorin on hydro-power plant and Bauchi on hydrocarbon.

    He said the basic research products of the commission included solar water heater, solar crop dryers, pilot wind electricity machines and bio-gas digesters from its research centres for commercialisation.

    “We utilise the biomass or sun to produce direct process heat through conversion of sun to heat, using solar water heater or solar crop dryer to convert the sun into electricity-using solar panels.

    “We produce prototype solar water heater in our research centres. Some have been installed, particularly in Usman Danfodio Teaching Hospital, Sokoto, and they are now helping in the production of warn water for use in the hospital,” he added.

    Bala said the Federal Ministry of Science and Technology had established NBTI, to harness all the research and development products for commercialisation.

    He said: “Now, this board provides an avenue where research and development outputs from these research centres are incubated. NBTI brings in private sector to see the products during the incubation.”

  • PZ Wilmar gets ISO certification

    PZ Wilmar Nigeria Ltd, a palm oil processing, packaging and distribution company, has been awarded the International Standard Organisation (ISO) 22000:2005 Certification for food safety.

    At the presentation in Lagos, the Managing Director, West Africa, PZ Wilmar Nigeria Ltd, Mr. Santosh Pillai, said the certification is an affirmation of the firm’s commitment to delivering safe products.

    He said the certification makes the company the first palm oil processing, packaging and distribution company to achieve the feat without extension from any parent company or parent site.

    He said: “ISO 22000:2005 is an international standard on food safety that confirms that a company’s supply chain process is well under control, and safety and quality of all products from its factory down the value chain to the end consumer is guaranteed.

    “To provide a demonstrable food safety management system, PZ Wilmar Limited was subjected to rigorous stages one and two Certification Audit by Bureau Veritas, following documentation and implementation according to ISO 22000: 2005 standard.”

    Its Deputy Manager, Technical, Mr. Nana Damoah, said the company sought the ISO certification to ensure that its products are manufactured in line with international standards and are safe.

    Systems Certification Manager, Bureau Veritas, a global leader in testing, inspection and certification, Mrs. Adenike Akinbote, said the process for ISO certification was not easy and that PZ Wilmar made it after fulfilling all its criteria.

    She, however, said the certification could be withdrawn or suspended if the company’s food safety and quality standard fails in future.

    The feat, which is a demonstration of the company’s commitment to its organisation, food safety and quality policy, came on the heels of an investment of about $80 million in crude palm oil refinery.

    The investment, according to Pillai, was in line with the company’s backward integration aimed at developing local capacity of palm oil production and restoring Nigeria’s position and visibility as a global player in palm oil.

  • Trade key to Africa’s industrialisation, says ECA

    To fast-track its industrialisation, there is the need for Africa to focus on cross-border trade,  the Economic Report on Africa (ERA) has said.

    According to the report, “Africa needs to focus on cross-border trade and it must rise up the value chain”.

    The report was launched by Minister of Trade and Industry, Ghana, Dr. Ekow Spio-Garbrah  and Advisor to the Prime Minister of Ethiopia Dr. Arkebe Oqubay during the Conference of African Ministers of Finance and Economic Development in Addis Ababa, the Ethiopian capital.

    According to Spio-Garbrah, this year’s report built on the key messages of the previous editions of ERA and focuses on industrialisation and structural transformation. He called on policy makers in the continent to translate the ERA recommendations into actions.

    Oqubay said: “We need to focus on three issues to engage in the global market. One, improve and deepen exports. Two, ensure the domestic market is integrated. Three, be cautious on the overshooting of the service sector while manufacturing is yet low.”

    Deputy Executive Secretary, ECA, Mr. Abdalla Hamdok, highlighted the importance of addressing the challenge of being stuck in the bottom of the global value chain.

    He said: “There is empirical evidence of bi-directional relationship between industrialisation and trade. It is important to gear trade policies towards national development objectives and be selective in specific sectors as the endeavour is costly.”

    He indicated that trade could reverse the course of industrialisation, unless carefully designed.

    While discussing the growth in Africa, its prospects and challenges, Director, Macroeconomic Policy Division, ECA, Mr. Adam Elhiraika, said: “Africa’s growth prospects remain positive despite strong headwinds, with increased private consumption and investment being the key drivers of growth in the year.

    “The account deficit is expected to remain high owing to trade deficits and increased demand for capital goods. Stable inflation underpins Africa’s economic performance may decline from 6.9 per cent in 2015 to 6.7 per cent in 2016. Private capital inflows are expected to remain strong in 2015, thanks to improved business climate and profit prospects.”

  • PZ Wilmar gets ISO certification

    PZ Wilmar Nigeria Ltd, a palm oil processing, packaging and distribution company, has been awarded the International Standard Organisation (ISO) 22000:2005 Certification for food safety.

    At the presentation in Lagos, the Managing Director, West Africa, PZ Wilmar Nigeria Ltd, Mr. Santosh Pillai, said the certification is an affirmation of the firm’s commitment to delivering safe products.

    He said the certification makes the company the first palm oil processing, packaging and distribution company to achieve the feat without extension from any parent company or parent site.

    He said: “ISO 22000:2005 is an international standard on food safety that confirms that a company’s supply chain process is well under control, and safety and quality of all products from its factory down the value chain to the end consumer is guaranteed.

    “To provide a demonstrable food safety management system, PZ Wilmar Limited was subjected to rigorous stages one and two Certification Audit by Bureau Veritas, following documentation and implementation according to ISO 22000: 2005 standard.”

    Its Deputy Manager, Technical, Mr. Nana Damoah, said the company sought the ISO certification to ensure that its products are manufactured in line with international standards and are safe.

    Systems Certification Manager, Bureau Veritas, a global leader in testing, inspection and certification, Mrs. Adenike Akinbote, said the process for ISO certification was not easy and that PZ Wilmar made it after fulfilling all its criteria.

    She, however, said the certification could be withdrawn or suspended if the company’s food safety and quality standard fails in future.

    The feat, which is a demonstration of the company’s commitment to its organisation, food safety and quality policy, came on the heels of an investment of about $80 million in crude palm oil refinery.

    The investment, according to Pillai, was in line with the company’s backward integration aimed at developing local capacity of palm oil production and restoring Nigeria’s position and visibility as a global player in palm oil.

    He added that the company’s investment offers an integrated process of growing and milling crude palm oil with an expansion programme that sees PZ Wilmar harnessing Nigeria’s competitive and comparative advantage in the sector.

    According to him, the company has  acquired 26, 500 hectares of land in Cross River State for oil palm plantation, hoping to increase it to 50, 000 hectares.

  • ECN, NBTI to partner on commercialisation

    The Energy Commission of Nigeria (ECN) will collaborate with the National Board for Technology Incubation (NBTI) to commercialise its research and development products.

    Its Director-General, Prof. Jere Bala, who spoke in Abuja, said the commission’s collaboration would exploit the avenues for commercialising some of its research and development output, adding that the processes had been ongoing.

    The DG said there were various research and development programmes at six of its Energy Research Centres in the universities of Sokoto, Nsukka, Lagos, Ilorin, Bauchi and Benin.

    Bala said the University of Lagos (UNILAG) had been carrying out research and development on energy efficiency and conservation; Benin on energy and environment; Ilorin on hydro-power plant and Bauchi on hydrocarbon.

    He said the basic research products of the commission included solar water heater, solar crop dryers, pilot wind electricity machines and bio-gas digesters from its research centres for commercialisation.

    “We utilise the biomass or sun to produce direct process heat through conversion of sun to heat, using solar water heater or solar crop dryer to convert the sun into electricity-using solar panels.

    “We produce prototype solar water heater in our research centres. Some have been installed, particularly in Usman Danfodio Teaching Hospital, Sokoto, and they are now helping in the production of warn water for use in the hospital,” he added.

    Bala said the Federal Ministry of Science and Technology had established NBTI, to harness all the research and development products for commercialisation.

    He said: “Now, this board provides an avenue where research and development outputs from these research centres are incubated. NBTI brings in private sector to see the products during the incubation.”

  • Trade key to Africa’s industrialisation, says ECA

    To fast-track its industrialisation, there is need for Africa to focus on cross border trade,  the Economic Report on Africa (ERA), has said.

    According to the report, “Africa needs to focus on cross-border trade and it must rise up the value chain”.

    The report was launched by Minister of Trade and Industry, Ghana, Dr. Ekow Spio-Garbrah  and Advisor to the Prime Minister of Ethiopia, Dr. Arkebe Oqubay, during the Conference of African Ministers of Finance and Economic Development in Addis Ababa, the Ethiopian capital.

    According to Spio-Garbrah, this year’s report builds on the key messages of the previous editions of ERA and focuses on industrialisation and structural transformation. He called on policy makers in the continent to translate the ERA recommendations into actions.

    Oqubay said: “We need to focus on three issues to engage in the global market. One, improve and deepen exports. Two, ensure the domestic market is integrated. Three, be cautious on the overshooting of the service sector while manufacturing is yet low.”

    Deputy Executive Secretary, ECA, Mr. Abdalla Hamdok, highlighted the importance of addressing the challenge of being stuck in the bottom of the global value chain. He said: “There is empirical evidence of bi-directional relationship between industrialisation and trade. It is important to gear trade policies towards national development objectives and be selective in specific sectors as the endeavour is costly.”

    He indicated that trade could reverse the course of industrialisation, unless carefully designed.

    While discussing the growth in Africa, its prospects and challenges, Director, Macroeconomic Policy Division, ECA, Mr. Adam Elhiraika, said: “Africa’s growth prospects remain positive despite strong headwinds, with increased private consumption and investment being the key drivers of growth in the year.

    “The account deficit is expected to remain high owing to trade deficits and increased demand for capital goods. Stable inflation underpins Africa’s economic performance may decline from 6.9 per cent in 2015 to 6.7 per cent in 2016. Private capital inflows are expected to remain strong in 2015, thanks to improved business climate and profit prospects.”

  • Don seeks economic diversification

    A DON has advised Gen. Muhammadu Buhari to diversify the economy.

    The Dean, Faculty of Social and Management Sciences, Kaduna State University, Dr. Ahmad Abdul-Qadir, Abdul-Qadir, who spoke  with the News Agency of Nigeria (NAN), in Kaduna, said it was imperative to develop a long-term policy to regenerate the economy and it on the path of growth.

    “When the new administration takes over, it should have a good long-term policy that even after 20 years, successive administrations would be able to follow up the legacy,’’ he said.

    He said priority should be given to agriculture sector, including crop production, livestock, fisheries and forestry.

    According to him, some of the policies in the sector have become archaic and should be reviewed in line with modern practice.

    “The government should try to bring agriculture experts, especially soil scientists and work with them, so as to improve the sector,’’ he added.

    The university teacher also said that the incoming administration should review some laws to strengthen the fight against corruption.

    “The system breeds corruption. For example, if a public servant commits an offence, he or she is suspended, but if a lawmaker has a case, he or she is allowed to be part of the assembly until the determination of the case.

    “If they can also be suspended or their seats declared vacant for committing an offence, then corruption will reduce,” he argued.

    Abdul-Qadir also urged the incoming administration to address the problems in the energy sector to ensure steady power supply, so as to enhance the economy.

    “Every year, the government puts millions of naira into the refineries, yet the country cannot refine crude oil. We need electricity, so that the small and medium enterprises will pick up and the cost of production will go down.

    “By so doing, the economy will improve greatly and the importation of goods will reduce. With electricity, we will use less fire wood, which is having negative effects on our forests,’’ he said.

    The don also urged the President-elect to address insecurity, especially insurgency in the northeast and other crimes, such as kidnapping in some parts of the country.

    “I believe we can overcome insurgency since within a few weeks before the election, the government did something commendable and the efforts still continue,’’ he added.

    Abdul-Qadir urged Nigerians to be patient with the incoming government, as it needed to plan well in order to meet the high expectation of the citizenry.