The Nation Newspaper

Category: Industry

  • Catching them young

    Catching them young

    Nigeria has failed to harness the productivity of youths for national development, despite her robust youth population estimated at 70 million. But the Nigerian Youth Chamber of Commerce (NYCC) is poised to reverse the trend. It has outlined some strategies to facilitate investments in youth-focused start-ups and micro-enterprises. Assistant Editor CHIKODI OKEREOCHA reports.

    A fresh vista of opportunity may have been opened for youth entrepreneurs.
    The Nigerian Youth Chamber of Commerce (NYCC), the umbrella body of youth entrepreneurs,  has unveiled some strategies to boost innovative and industrious energies of youths in production.

    Part of the initiative tagged: “Decade of Campaign on Youth Entrepreneurship in Nigeria 2015–2025’ is aimed at youth entrepreneurship promotion and development to inspire and deepen entrepreneurship among youths.

    The campaign is also aimed at stimulating and sustaining relevant stakeholders’ engagement and conversation on the imperativeness of entrepreneurship as well as mobilise support for sustainable promotion and development of functional youth entrepreneurship. Under the campaign to be formally launched in Abuja in July, no fewer than three million functional youth-led start-ups/micro-enterprises would be created every three years in the next 10 years under the Vision 2015-2025  document.

    An average of five people is expected to be employed by each of the one million enterprises to be created. In all, 15 million jobs  would be created.

    Its Director General/Chief Executive Officer (CEO), Comrade Peter Ayim, said other highpoints of the launch, which would engage the attention of the in-coming administration shortly after inauguration on May 29, will be the launch of  N100billion Nigerian Youth Entrepreneurship Development Fund (NYEDF) and inauguration of National Council of Youth Entrepreneurs (NCYE).

    He said the N100billion NYEDF would be a ‘donor basket fund’ to be domiciled in Bank of Industry (BoI), adding that it will be a corporate guarantee to serve as collateral for functional youth-led enterprises.

    He said NYCC’s strategic objective is to mainstream youth in the Micro, Small and Medium Enterprise (MSME) sector through robust policy advocacy and constructive engagement with government and development partners.

    The campaign, he said, is also designed to form the superstructure for constructive stakeholders’ engagement on some areas and policy advocacy, suggest innovative solutions and promote global best practices in youth entrepreneurship promotion and development.

    Ayim noted that beyond theinauguration of the NCYE and the launch of the NYEDF, the decade campaign has the objective to reduce unemployment in the country to zero per cent through functional entrepreneurship.

    It will also create a data base for youth entrepreneurs to access enterprise growth tips and create a comprehensive business directory for youth entrepreneurs.

    The programme, he added, would also establish NYCC Academy for start-ups and micro-enterprise development.

    Other objectives of the campaign, Ayim said, include creating a link with training service providers (TSP) to train and certify entrepreneurship, creating enterprise policing system (EPS) to monitor and guide NYCC certified entrepreneurs from going into liquidation. It will also conduct research on the non-oil sector for entrepreneurs to know how to apply their strengths and help to conduct feasibility report for members to be properly guided.

    The NYCC chief noted that entrepreneurship, though an emerging phenomenon, is fast gaining momentum and being acknowledged as the critical pathway to growing the economy, generating jobs and creating wealth, thereby combating and reducing unemployment, hunger and poverty.

    He, however, regretted that although policy makers seem to appreciate the prospects, potentials and positive impact of entrepreneurship, it is evident that they have not been able to develop a result-oriented and sustainable policy framework and intervention mechanism targeted at supporting the accelerated promotion and development of functional youth entrepreneurship in the country.

    Ayim said though the government has demonstrated commitment to promoting youth entrepreneurship through short-term intervention programmes, most of the intervention programmes are either limited in scope and do not benefit a broad spectrum of aspiring youth entrepreneurs to facilitate start-ups or assist youth entrepreneurs in expanding their businesses.

    He cited the YouWIN programme of the Federal Government, pointing out  that “such short-term measures are usually handouts and tokenism that cannot in any sense facilitate and grow a functional start-up or micro-enterprise”.

    ‘YouWiN’, an acronym for Youth Enterprise with Innovation in Nigeria, is a competition launched by the Federal Government  to create jobs by encouraging and supporting aspiring entrepreneurial youths to develop and execute business ideas. The initiative hopes to trigger a ripple effect that would inspire the creative and entrepreneurial spirit of millions of youths across the country.

    The scheme is also expected to help identify and empower young entrepreneurs with the technical skills and capital needed to start or grow a business such that they could create employment for themselves and others in different areas. But Ayim said the scheme is limited in scope.

    He decried the orientation of state and non-state actors, adding that they are in a hurry to jumpstart employment policies that are only targeted  at  giving  grants and  soft  loans  to  youths  to  keep  them  off  the  street  and  engage  them  with  an  activity  they don’t understand its guiding philosophy and modus  operandi. He insisted that such attitude should be discouraged.

    He said: “Entrepreneurship as it is being practised should not become government’s bait to lure the youth only to maintain law and order. For them, the higher the number, the higher the score card. “Entrepreneurship policies are not intended to build wealth in Nigeria, but used as a criterion to boost government’s performance evaluation. This could be seen in the number of failed schemes in Nigeria youth empowerment drive.”

    Ayim identifiedthe lack of synergy between the public and the private sectors.

    Said he: “The only seeming existing synergy recently fostered is the public/public synergy between the Industrial Training Fund (ITF), Small and Medium Enterprise Development Agency of Nigeria (SMEDAN) and the BoI.

    “There is the urgent imperative for a functional public/private partnership that will facilitate a robust, dynamic and sustainable enterprise development ecosystem in line with contemporary trend and global best practices in the promotion and development of youth entrepreneurship.”

  • ‘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) would enhance the economic development.

    He said Buhari’s experience in governance was an added advantage 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.”

    While 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.

  • Dangote: Upping the ante in Africa’s cement market

    Dangote: Upping the ante in Africa’s cement market

    Dangote has opened its $300 million (about N60 billion) cement plant in Dakar, Senegal. The plant, which runs on cutting-edge technology and innovation, produces the high varity 42.5 cement brand, reports Assistant Editor Okwy Iroegbu-Chikezie.

    With the opening of Dangote cement plant in Dakar, Senegal, competition in the market in Africa has become keen. The $300 million (about N60 billion) plant is backed by superior technology and innovation to deliver quality cement.

    “Our edge is the technology we have brought to bear on cement production and the wealth we are creating across the board for the people and government of Senegal,” the Country Head of Dangote Cement, Senegal, Mr. Luk Haelterman, said, at the inauguration, last week, of the 4, 000 Metric Tons (MT) per day plant in Pout District of Senegal, about 75 kilometres East of Dakar, the country’s capital.

    In his welcome address Haelterman said Dangote Cement offered the best choice for consumers, as it is the only 42.5 grade high quality cement available in the country’s  market.

    He said the firm’s coming would boost the housing sub sector, noting that the plant with a production capacity of 1.5 million tons yearly would create more than 5, 000 jobs. Firm’s emergence, he added, has altered the equation in  cement market. Haelterman was right. Until Dangote  hit the market with its superior 42.5 grade cement, the market in Senegal was dominated by Sococim, a French cement company founded in 1948, and CDS. However, while the two firms are producing the 32.5 grade cement,  Dangote introduced the higher quality 42.5 cement grade that allows for quicker drying for construction professionals. “Today, Dangote has become the biggest and best because we remain the only company producing the 42.5R, which is better than what we met on ground, which is the 32.5R”, Haelterman said.

    The quality of cement introduced into the market by Dangote is not the only game changer. Despite coming into an already saturated market, the company also came in with the lowest price in the continent, approximately $5 a bag. With a combination of Damgote’s marketing edge in superior quality and pricing, experts say that the continent’s cement landscape is poised for a major positive change-one that would bring immense benefits to all stakeholders.

    Already, Dangote Cement, The Nation learnt, is targeting the exportation of the product to Mali to the tune of two million tonne, while sales of the product in other neighbouring countries are currently being worked out.

    An exporter,  Mr. Serigne Aramine Mbacke, confirmed this much when he disclosed that he distributes about 40 per cent of Dangote Cement to Mali, Gambia, Code de Voire, Cape Verde and Guinea Bissau. He said he was motivated to distribute the company’s product because of its quality and profit margin. He also said that with the massive investment, which is the single largest in the Franco-phone country by an African, Dangote has made inroads into several African countries, bringing cohesion in the process. While noting that the state-of-the-art cement plant offers huge employment opportunities for Senegal’s estimated 14 million population, he commended the Senegalese Government for being open to investment that is mutually beneficial.

    A Dangote Cement distributor, Mr. Momodu Ndioye could not hide his excitement over the prospects of high profit margin. He told The Nation in Dakar that the quality of Dangote cement is better than others. Hear him: “My customers have confirmed that the quality of the new entrant into the cement market is better than others. They can mould more blocks with Dangote cement and also make more money because it dries faster. This translates to more profit for us distributors.” Another distributor, Mr. Ibrahim Dirkhabi also confirmed this, noting that because of its quality, the Dangote cement dries faster and makes

    stronger blocks. “It is the toast of builders and others in the construction industry,” he said.

    Apart from superior technology, innovation, and pricing, there are other factors that position Dangote Cement to play a leading role in the continent’s competitive cement sector. For instance, as Chief Operating Officer of the company, Mr. Athanasios Bampos disclosed, Dangote Cement boasts a limestone deposit that can last for 150 years.

    The location of the factory is not only rich in limestone, but also in clay and laterite, which are the major components needed in cement manufacturing. ‘’The only component that we import as a company is gypsum, sold by ICS Chemical Company, a local firm, which is about 45 kilometres from the factory,’’ he added.

    That is not all. The company, according to Bampos, also has captive electricity that produces 30 Megawatts of electricity through the exploitation of coal, the first in the country. He explained that the factory has two production lines though they are using one line for now. “We have 3.6 kilometre conveyor belt, three parking bay and a railway about 1.5 kilometres from the factory. We will not have to contend with the problem of transportation and other logistic problems that have to do with transporting our products to destinations where our customers are located, he added.

    In his presentation, the Company’s Director of Sales and Marketing, Mr. Serigne M. Dieng said that Senegal, with 14 million people and a growing Gross Domestic Product (GDP) of +4 per cent as at 2013 hasm cement market of three MT pa and consumption rate of 230kg. He expressed satisfaction that Dangote Cement has been accepted immediately it got to the market because of the aggressive awareness strategy embarked upon by the company to introduce the 42.5 grade, which was not known to the majority of customers except a few corporate customers.

    An obviously elated Director of Mines and Geology for Senegal, Mr. Ousmane Cisse, said the $300million factory remains the biggest investment in his country in the last 15 years. He said the massive investment has changed the economy of his country for good. He noted that the company had met all the requirements on key issues of environmental sustainability, good business practice and compliance with regulations, adding that the Senegalese Government, on its part, had responded by offering tax holiday and other incentives to the company. He also promised that the Senegalese Government would protect the company to achieve its optimal production capacity.

    While stating that the Government of the Republic of Senegal was happy with Dangote as the single largest investor in the country, Mr. Cisse urged other African entrepreneurs to emulate the business acumen of

    Dangote. Nigerian Ambassador to Senegal, Mrs Katyen Jackden also commended the management of Dangote Cement for its pan-African posture in investment and the host government for its support to the firm. She explained that Dangote has through his investments in African countries built bridges of friendship across nations, fostering unity and integration among African countries.

    She said Dangote Cement has done Nigeria proud with the commencement of production and that she was happy that the cement giant was instantly accepted in the market based on its high quality product and competitive pricing.

    Mrs Jackden said: “Dangote Cement needs all encouragement needed to flourish and my office would be willing to help in that regard because Dangote has proven a worthy Nigerian ambassador in business.” She also thanked the people and government of the French-speaking West African country for the support and opportunity given to a foreign investor like Dangote, stressing that ‘’Dangote has been able to bring cohesion among African nations with his investments.’’

  • Dangote ups the ante in cement market

    Dangote ups the ante in cement market

    The $300 million (about N60 billion) Dangote Cement plant in Dakar,Senegal has roared into life, churning out high variety 42.5 cement brand to the delight of consumers. The plant, which runs on cutting-edge technology and innovation, may have spurred a fresh wave of competition in the continent’s cement market. Assistant Editor Okwy Iroegbu-Chikezie reports.

    A new wave of competition may have started sweeping through Africa’s cement market. At the heart of the fresh wave of competition ignited by the inauguration of the $300 million (about N60 billion) Dangote Cement plant in Dakar, Senegal, last week, is the deployment of superior technology and innovation to deliver quality cement to consumers.

    “Our edge is the technology we have brought to bear in cement production and the wealth we are creating across the board for the people and government of Senegal,” Country Head of Dangote Cement, Senegal, Mr. Luk Haelterman, said, at the inauguration of the 4, 000 Metric Tons (MT) per day plant located in Pout District of Senegal, about 75 kilometres East of Dakar, the country’s capital.

    Haelterman told a gathering of excited cement consumers, distributors and Senegalese government officials in his welcome address that Dangote Cement offered the best choice for consumers, as it is the only 42.5 grade high quality cement available in the country’s cement market.

    He added that the commencement of production would boost the housing sub sector of the Senegalese building industry. Besides, the plant with a total production capacity of 1.5 million tons annually, would create more than 5, 000 jobs for the locals. He was also quick to note that the entrance of Dangote cement into the Senegal market has altered the equation in the cement market. Haelterman was right. Until Dangote cement hit the market with its superior 42.5 grade cement, the cement market in Senegal was dominated by two existing cement firms, namely Sococim, a French cement company founded in 1948, and CDS. However, while the two initial manufacturers are producing the 32.5 grade cement, which is of a lower quality, Dangote cement came on board with a master stroke, introducing the higher quality 42.5 cement grade that allows for quicker drying for construction professionals. “Today, Dangote has become the biggest and best because we remain the only company producing the 42.5R, which is better than what we met on ground, which is the 32.5R”, Haelterman said.

    The quality of cement introduced into the market by Dangote is not the only game changer. Despite coming into an already saturated market, the company also came in with the lowest price in the continent, approximately $5 a bag. With a combination of Damgote’s marketing edge in superior quality and pricing, experts say that the continent’s cement landscape is poised for a major positive change-one that would bring immense benefits to all stakeholders.

    Already, Dangote Cement, The Nation learnt, is targeting the exportation of the product to Mali to the tune of two million tonne, while sales of the product in other neighbouring countries are currently being worked out.

    An exporter,  Mr. Serigne Aramine Mbacke, confirmed this much when he disclosed that he distributes about 40 per cent of Dangote Cement to Mali, Gambia, Code de Voire, Cape Verde and Guinea Bissau. He said he was motivated to distribute the company’s product because of its quality and profit margin. He also said that with the massive investment, which is the single largest in the Franco-phone country by an African, Dangote has made inroads into several African countries, bringing cohesion in the process. While noting that the state-of-the-art cement plant offers huge employment opportunities for Senegal’s estimated 14 million population, he commended the Senegalese Government for being open to investment that is mutually beneficial.

    A Dangote Cement distributor, Mr. Momodu Ndioye could not hide his excitement over the prospects of high profit margin. He told The Nation in Dakar that the quality of Dangote cement is better than others. Hear him: “My customers have confirmed that the quality of the new entrant into the cement market is better than others. They can mould more blocks with Dangote cement and also make more money because it dries faster. This translates to more profit for us distributors.” Another distributor, Mr. Ibrahim Dirkhabi also confirmed this, noting that because of its quality, the Dangote cement dries faster and makes

    stronger blocks. “It is the toast of builders and others in the construction industry,” he said.

    Apart from superior technology, innovation, and pricing, there are other factors that position Dangote Cement to play a leading role in the continent’s competitive cement sector. For instance, as Chief Operating Officer of the company, Mr. Athanasios Bampos disclosed, Dangote Cement boasts a limestone deposit that can last for 150 years.

    The location of the factory is not only rich in limestone, but also in clay and laterite, which are the major components needed in cement manufacturing. ‘’The only component that we import as a company is gypsum, sold by ICS Chemical Company, a local firm, which is about 45 kilometres from the factory,’’ he added.

    That is not all. The company, according to Bampos, also has captive electricity that produces 30 Megawatts of electricity through the exploitation of coal, the first in the country. He explained that the factory has two production lines though they are using one line for now. “We have 3.6 kilometre conveyor belt, three parking bay and a railway about 1.5 kilometres from the factory. We will not have to contend with the problem of transportation and other logistic problems that have to do with transporting our products to destinations where our customers are located, he added.

    In his presentation, the Company’s Director of Sales and Marketing, Mr. Serigne M. Dieng said that Senegal, with 14 million people and a growing Gross Domestic Product (GDP) of +4 per cent as at 2013 hasm cement market of three MT pa and consumption rate of 230kg. He expressed satisfaction that Dangote Cement has been accepted immediately it got to the market because of the aggressive awareness strategy embarked upon by the company to introduce the 42.5 grade, which was not known to the majority of customers except a few corporate customers.

    An obviously elated Director of Mines and Geology for Senegal, Mr. Ousmane Cisse, said the $300million factory remains the biggest investment in his country in the last 15 years. He said the massive investment has changed the economy of his country for good. He noted that the company had met all the requirements on key issues of environmental sustainability, good business practice and compliance with regulations, adding that the Senegalese Government, on its part, had responded by offering tax holiday and other incentives to the company. He also promised that the Senegalese Government would protect the company to achieve its optimal production capacity.

    While stating that the Government of the Republic of Senegal was happy with Dangote as the single largest investor in the country, Mr. Cisse urged other African entrepreneurs to emulate the business acumen of

    Dangote. Nigerian Ambassador to Senegal, Mrs Katyen Jackden also commended the management of Dangote Cement for its pan-African posture in investment and the host government for its support to the firm. She explained that Dangote has through his investments in African countries built bridges of friendship across nations, fostering unity and integration among African countries.

    She said Dangote Cement has done Nigeria proud with the commencement of production and that she was happy that the cement giant was instantly accepted in the market based on its high quality product and competitive pricing.

    Mrs Jackden said: “Dangote Cement needs all encouragement needed to flourish and my office would be willing to help in that regard because Dangote has proven a worthy Nigerian ambassador in business.” She also thanked the people and government of the French-speaking West African country for the support and opportunity given to a foreign investor like Dangote, stressing that ‘’Dangote has been able to bring cohesion among African nations with his investments.’’

  • ‘ECOWAS sea link project ‘ll ease transportation challenges’

    ‘ECOWAS sea link project ‘ll ease transportation challenges’

    The Economic Community of West African States (ECOWAS) sea link project, when operational, would minimise the challenges of movement of goods and services in the region, Federation of West African Chamber of Commerce and Industry has said.

    Chief Executive Officer of the Chamber, Mr. Cherno Jallow, who disclosed this on Tuesday in Abuja, said the operation of the maritime shipping project, which was an initiative of the Chamber, was aimed at linking the ECOWAS states and Central Africa countries.

    He said the project was in line with the priority given to free movement of people and goods by the leadership of ECOWAS. According to him, the project would also contribute immensely in ECOWAS dream of enhancing economic growth through the strong participation of the private sector.

    Jallow said when fully operational, the project would ensure that vessels, agricultural produce, manufactured goods and passengers could be transported from one country to another within the sub-region and beyond.

    “It will boost trade within the sub-region as well as help erase the difficulties faced by traders when crossing land borders of the ECOWAS countries. This would enable us grow economically and become competitive globally,’’ he said.

    The sea link project is a major step in deepening trade within ECOWAS sub-region and a significant step in enhancing the current trade flow among ECOWAS member states.

    The institutions promoting the project are the Federation of West African Chambers of Commerce and Industry (FEWACCI), NEXIM Bank of Nigeria, and Transimex of Cameroun with support from ECOWAS Commission.

  • Omo ‘ultimate showdown challenge’ berths

    Omo ‘ultimate showdown challenge’ berths

    Unilever Nigeria, maker of Omo detergent, has embarked on the ultimate showdown challenge across the country. The programme buttresses the fact that Omo, Nigeria’s top detergent brand for over fifty years, removes toughest stains in just a one wash.

    At the ‘Wash Demos’, members of the public will be invited to participate in the challenge and also express their observations as ‘Omo Fast Action’ detergent goes head to head with competition to settle once and for all which brand is the fastest tough stain remover.

  • Ajaokuta: How govt put industrialisation in reverse gear

    Ajaokuta: How govt put industrialisation in reverse gear

    About $3.3 billion is spent on steel importation annually. This is projected to rise to $15 billion. But, despite parading the record of having the second largest iron ore deposit in Africa, Nigeria has, curiously, failed to breathe life into the moribund Ajaokuta Steel Company in Kogi State. The project has become a huge drain pipe and a campaign tool for successive administrations. Assistant Editor CHIKODI OKEREOCHA writes that unless the facility is resuscitated, Nigerian industrialisation drive will remain a mirage.

    President Goodluck Jonathan, at a  campaign rally by the Peoples Democratic Party (PDP) in Kogi State, dangled the proverbial carrot before the electorate. He promised  the completion of the moribund Ajaokuta Steel Company (ASCL), Nigeria’s largest integrated steel plant tagged: “bedrock of Nigeria’s industrialisation.”

    At the rally, which was held at the Lokoja Confluence Stadium, President Jonathan told a crowd of party supporters that all the legal issues that slowed down the multi-billion dollar project expected to produce 1.3 million metric tons (MT) of liquid steel per annum,have been resolved to pave the way for its completion.

    Jonathan’s words: “The Ajaokuta Iron and Steel Complex is dear to us. This is a government that promises and fulfills its promises. During my inaugural speech in 2011, we made promises in that speech and we have addressed all. We are addressing the issue of the Iron and Steel Company. We are not playing politics with it. The Attorney-General has been handling the legal issues. We have been slowed down because of legal issues. The Attorney-General has travelled to London more than 20 times and now we have got to the end, we will move ahead.”

    However, the President’s hope of riding on the promise of completing the project to curry votes at last weekend’s presidential election was dashed  Although, ASCL holds the collective aspiration and desire of Nigerians for self-sufficiency in steel and halts the unbridled importation of steel products that costs the nation an estimated $3.3 billion annually, The Nation learnt that a few indigenes of the state, who were at the rally, refused to be swayed by what they considered an empty promise.

    Their skepticisms are justified. Since September 1979, when the project was conceived with the vision of generating important upstream and downstream industrial and economic activities critical to the diversification of the economy into an industrial one, it has been a tool for campaign promises by successive administrations, which never came to pass. The project suffered the same fate in 2011 when Jonathan campaigned for his first term in office. To most indigenes of the state and indeed, Nigerians, the President was merely playing to the gallery as the fortune of the steel plant has never improved since his administration mounted the saddle.

    Located on 24,000 hectares of sprawling green-field land-mass, the Steel Plant, built on 800-hectares of land, was embarked upon as a strategic industry, a job creator and a foreign exchange earner. It was envisaged that it would generate a myriad of socio-economic benefits and increase the productive capacity of the nation through its linkages to other industrial sectors.

    Using thetime tested Blast-Furnace – Basic Oxygen Furnace route for steel production, the project would also provide materials for infrastructural development, technology acquisition, human capacity building, income distribution, regional development and employment generation. While the project would directly employ about 10,000 staff at the first phase of commissioning, the upstream and downstream industries are expected to engage over 500, 000 employees, among other benefits.

    Unfortunately, none of the benefits has come the way of Nigerians 36 years down the line. If anything, it has become a0huge drain pipe on the nation’s resources, as Nigeria, according to Minister of Trade and Investment, Dr. Olusegun Aganga, continues to spend about $3.3 billion annually on steel importation. The Minster, who spoke at the commissioning of the Cld Roll Mill Project of Kamwire Industries Limited in Ilorin, the Kwara State capital recently, projected that the import bill may rise to $15 billion in the next 10 years.

    “We spend $3.3 billion every year importing steel. In the next decade because of the way we are growing that $3.3 billion will become $15 billion,” Aganga said, warning that: “We will not be able to afford it as a nation and it will become a balance of payment deficit. That is why we came up with the industrial revolution plan.” While pointing out that the sector is the backbone of any economic or industrial development in any nation, the Minister said the current administration was “determined to take the risks and forcefully revolutionise industrialisation in Nigeria.”

    Experts have, however, called to question the current administration’s commitment to its industrialisation mantra, insisting that it failed in the last six years to match words with action by mustering the political will to complete the ASCL. This is despite the fact that a developed and virile steel industry would not only save the nation scarce foreign exchange, but create opportunities for varied capacity building. Besides, the project, according to experts, holds the key to the attainment of vision 20-2020 and the Federal Government Transformation Agenda.

    Rather than help the country achieve these objectives, ASCL has become a subject of intense controversy and politicking by various interests. It was the clash of interests that culminated in the termination of the concession agreement between the Federal Government and Global Infra­structure Nigeria Ltd (GNIL), an Indian firm, in 2008. Although, the Federal Government had accused the Indian firm of breaching the provisions of the concession agreement and asset stripping, the company had gone to the International Court of Arbitration in London, challenging the revocation of the agreement.

    Although, Jonathan said all the legal hurdles slowing down the project have been removed, the project has been a subject of legislative scrutiny following revelations that the country was paying huge sums of money to the company’s idle staff. This has pitched members of the House of Representatives against the management of the facility, which insisted that certain forces are bent on frustrating efforts at getting the project back on track.

    According to the company’s Sole Administrator, Mr. Joseph Onobere Isah, an Engineer, “There are certain agents in our midst that have not been comfortable with the modest achievements we have recorded in Ajaokuta so far and the course of action we are charting towards making liquid steel production a reality in our country. Isah, who spoke while presenting the achievements and challenges of the steel plant before members of the House of Representatives Committee on Steel Development in Abuja, said such forces might have been responsible for the allegation of staff idleness levelled against the company.

    He said contrary to the allegation, the company’s staff work tirelessly daily to ensure that the plant was well-maintained and running. The staff, according to him, were not being paid N3.4 billion monthly as the Chairman of Assets Management Company of Nigeria (AMCON) Alhaji Aliyu Kola Belgore,  reportedly said last year at an event in Ilorin. Isah, who said Belgore wrote to explain that he was misquoted, reminded the House Committee members that it was because of Belgore’s statement that he was summoned, following a motion by a  member of the House of Representatives, Hon. Abbas Tajudeen, that the claim be investigated.

    He explained that Belgore, in a letter to the management dated September 8, last year, denied the newspaper stories, stating in part: “I did not and will never disparage the company as I do not work there. It is out of place for me to know and mention anything about the total monthly wage bill, the number of machines installed and the number of staff of the company.” However, he said: “The recent motion by Hon. Abbas Tajudeen, coming after over four months of the publication and echoing the AMCON Chairman’s statement and newspaper publications, deserves to be investigated to stop the vicious circle of misinformation.”

    The ASCL Sole Administrator urged the Committee to authenticate Hon. Tajudeen’s allegations.  He recalled that the House of Representatives Committee on Steel recommended N3, 821,718,510 to the Appropriation Committee as the 2014 Personnel Cost for ASCL. The Appropriation Committee of the National Assembly, he said, approved the same amount as the 2014 Personnel Cost for ASCL and that it was the same amount that was in the 2014 Appropriation Bill for the 2014 Personnel Cost (salaries) of the company.

    Isah said: “From the foregoing, the onus of providing evidence to back the AMCON chairman’s figure of N3.4 billion as ASCL monthly wage bill, which has been severally quoted, naturally falls on Alhaji Belgore. The House of Representatives Committee on Steel would do well to demand such evidence from Alhaji Belgore. Should there be any proof of a hike in the figure known to Alhaji Belgore, then he could avail the Committee of it.”

    The Accountant-General of the Federation and the Director-General (Budget), he said, could be asked to tender the releases made through IPP1S (Integrated Payroll and Personnel Information System) in respect of Ajaokuta Steel Company’s Personnel Costs last year. “To the best of our knowledge, it is what was appropriated that was paid to staff by the Accountant-General of the Federation via 1PPIS,” he said, adding that since July 2012, preceded by a diligent and thorough data capturing exercise, the salaries of ASCL workers are paid directly to respective staff members from the Office of the Accountant-General of the Federation via the IPPIS.

    Isah said these facts were known to all, adding that after the takeover of the company from the Indians (GHIL/GINL concessionaires) in 2008, ASCL has been on zero capital allocation and an overhead of less than N45million. “All such information is in the public domain and on the website of respective ministries,” he said, adding: “It is common knowledge that any piece of commissioned equipment left idle will sooner than later be lost to rot due to corrosion.”

  • Vitafoam eyes auto industry

    Vitafoam eyes auto industry

    Mattresses and pillows, maker Vitafoam is gearing up to become a key player in the auto industry by tapping into the newly- introduced auto policy, its Group Managing Director (GMD), Mr. Joel Ajiga, has said.

    Ajiga, an engineer, told The Nation that the company plans to play in the low injection part of the auto industry through its subsidiary, Vita Visco, to manufacture vehicle parts, such seats, dash boards and others.

    The GMD, who spoke in his office in Lagos, however, said his company was faced with myriad of challenges, such as infrastructural deficit, especially epileptic electricity supply and bad roads, which affect the company’s manufacturing and supply chain and eats into its bottom line.

    He said bad condition of the roads means bad business for the company as goods are transported across the country by road. He therefore, called on government to work on the road infrastructure to reduce the cost of transportation of finished products and repairs of damaged vehicles.

    Ajiga also said over 60 per cent of the energy utilisation in the company’s factory is self-sourced at huge cost, urging the Federal Government to ensure that Nigerians and the industrial sector get the full benefits of the unbundling of the power sector.

    According to him, manufacturers can only key into the government’s Transformation Agenda if the policies are beneficial to their operations.

    He further stated that because of the dwindling disposable income of most Nigerians, there is a limit to how much cost manufacturers can transfer to consumers as part of inward-looking, cost-cutting strategy to stay afloat.

    The company’s Finance Director, Mr. Bras Ogun, said that for the company to play effectively in the auto sector there was need to revive the nation’s petrochemical industry. He regretted that the devaluation of the local currency increased the price of base materials from the petrochemical industry, which are unfortunately imported into the country despite the fact that Nigeria is an oil exporting country.

    “The devaluation has caused a price differential of about N35 in our base material. It will affect the bottom line for this year. Our plan is to start producing some of the chemicals locally and also look at other cost cutting measures. This singular policy has made negative impact, but we are trying to keep the cost of operation as low as possible.

    “We want to cushion our pricing model through our reserves, which acts as shock absolvers. In that scenario, we will not need to pass the cost to our consumers because our creativity and innovativeness will always put us on the leading edge of the nation’s economic growth and development,” Ogun added.

    Corporate Service Director, Vono Products Plc, one of the company’s subsidiaries, Mr. Tunde Anjorin, said the firm has since transformed into a vibrant company manufacturing hard furnishing, conventional and security doors for schools, hotels for basic and luxurious comfort, satisfying all segments of the society.

    The company’s Head of Sales, Shola Owoade, said the firm is exploiting polymer to produce most of its products such as prefabricated buildings and insulated structures, which conserves energy and reduces cost.

    He said the company is also building pre-fabricated structures for mass housing already in use in Osun State to build classrooms using polymer as base material.

    On the export arm of the business, the Vitafoam boss said that the company has built a-state-of–the-art production complex in Sierra Leone, which will soon start operation. The company also has a trading outfit in Ghana.

  • Business confidence index dips

    Business confidence index dips

    The first quarter of the year aggregate Business Confidence Index (BCI) dropped from the 30 per cent it posted in fourth quarter of last year to 22.3 per cent.

    This represents a 7.7 per cent slack of the confidence level among business operators over the last three months, says Lagos Chamber of Commerce and Industry (LCCI) latest report.

    The report said it represents the largest quarter on quarter point drop of the BCI score over the last three years. The report signed by LCCI Director- General, Mr. Muda Yusuf, said conventionally, movement of the BCI score by up to five points indicates the presence of significant positive or adverse development in the country’s economic and business environment.

    He, however, regretted that the drop of the BCI scores at this time suggests that business leaders are largely pessimistic about expanding their business and investment spending over the next few months.

    It is worse with indigenous manufacturers as growth in the sector shrank by 19.2 per cent in the fourth quarter of last year, according to data by the Manufacturers Association of Nigeria (MAN).

  • BoI disburses N780 billion as loans, intervention funds

    BoI disburses N780 billion as loans, intervention funds

    The Bank of Industry (BoI) yesterday said it disbursed a total of N780 billion last year as loans and intervention funds to the nation’s real sector and other key sectors of the economy.

    Its Managing Director, Rashid Olaoluwa, who spoke at the yearly conference of the Nigerian Institution of Estate Surveyors and Valuers in Osogbo, Osun State, said the bank has also increased its intervention to critical sectors of the economy within the last five years, specifically between 2010 to 2014.

    He said: “BoI has become impactful within the last five years and at least 1.8million jobs have been created through such efforts.  Before 2009, the level of intervention was below N30 billion but we have been able to improve access of customers to the funds as well as increase their capacity in the utilisation of such facilities.

    “We are doing a lot of things to ensure that we can provide that comprehensive support to our small and medium enterprises. We are reviewing our regional status to state offices in order to be able to serve our customers better.”

    He also tasked members of the institution on the need to adhere to strict professional ethics adding that valuation of assets remained a critical aspect of financial intermediation that is often fraught with malpractices.

    According to him, it is often discovered that false values are placed on assets, adding that this practice is prevalent in an industry where professionals have decided not to adhere to ethical guidelines.

    He said:  “Development and financial institutions most times discover that the value placed on some assets does not represent the reality and this is affecting financial intermediation by development finance institutions. Estate valuers play a critical role in the society as they are at the centre in placing value on assets. As a bank, we depend on their judgment.  The institute needs to task its members on the need to embrace fair and ethical practice while performing their duties.

    “Similarly, professionals in the estate valuation industry cannot afford to ignore the place of technology in the discharge of their duties in other to be globally recognised and competitive.”