The Nation Newspaper

Category: Industry

  • Kaduna partners SMEDAN to create 5,000 jobs

    Kaduna partners SMEDAN to create 5,000 jobs

    Kaduna State Government has entered into a partnership with the Small and Medium Enterprise Agency of Nigeria (SMEDAN) for the establishment of business support centres to provide support services and capacity building to MSMEs.

    It has, also, consummated an agreement to conduct Graduate Vocational and Entrepreneurship Skills Training (GVEST) to build capacity of 1,000 graduates expected to create 5,000 jobs in the state.

    Governor Mukhtar Ramalan Yero disclosed this yesterday while declaring open a three-day opportunity exhibition and trade fair for Small and Medium Enterprises (SMEs) in the North West region organised by SMEDAN in Kaduna.

    Yero said, as a deliberate policy, the government has established the Kaduna State industrialisation and micro-credit management board as a special purpose vehicle for micro delivery to support the growth of SMEs.

    Represented by the Director in the Ministry of Commerce and Industries, Mr. Mamman E. Danka, Yero urged the participating entrepreneurs to take advantage of the fair and exhibition to ensure the sustained development of the SMEs sub-sector in their states.

    “Just recently, the government entered into a matching fund partnership with two major development banks, the BoI and BoA and created a pool of funds to the tune of N2 billion to be disbursed to MSMEs as micro loans as well as for the development of agriculture in the state,” Yero stated.

    The representative of SMEDAN Director-General, a Deputy Director in the agency, Alhaji Shehu Sada, urged the participants to take advantage of the exhibition/trade fair to showcase their skills, and interact with one another to build capacities through idea sharing among other opportunities.

    He assured that the agency is doing all it can to encourage entrepreneurs in all ways, and further urged entrepreneurs to tap into government policies aimed at bettering their lives and businesses.

    Speaking earlier, SMEDAN Consultant Hajia Safiya Adamu of Messrs Leadership Paradigm Consultants Limited welcomed the participants, stressing that the exhibition and trade fair was for entrepreneurs to showcase their talents and skills, and also create an enabling market environment for them.

    She said the fair would also introduce them to financial opportunities that could be assessed from relevant agencies, such that they would help strengthen their businesses and make them employers of labours, and reduce the rate of unemployment.

    The participants commended the opportunity availed them by SMEDAN to showcase their businesses and talents.

  • Experts praise reduction of cement price by Dangote

    Experts praise reduction of cement price by Dangote

    Experts have hailed the reduction of cement price by Dangote Cement Plc to N1,000 from N,800. They said it is a good omen which  would encourage more developments and, by extension, more jobs not only for professionals but artisans who have been out of jobs because of stalled projects.

    National President, Nigerian Institution of Structural Engineers (NIStructE), Dr. Samuel Ilugbekhai,said the price reduction is an achievement which would benefit many, directly  and  indirectly.

    He said: “By this singular act of patriotism, cement is being made more available and more affordable for developmental purposes. Coming barely a week after the conference of the Nigerian Institution of Structural Engineers (NIStructE) on “The Effect of Cement Strength  on Concrete Performance” where we called on the regulating authorities to lay more emphasis on the manufacturing of cement to ensure that they meet national and international standards,  I am particularly gladdened by this development and I humbly encourage all other cement manufacturers to reduce their prices so that cement will be more affordable to  more Nigerians across the country.“

    President, Building Collapse Prevention Guild, Mr. Kunle Awobodu, hailed the price reduction, noting that it was part of their advocacy campaign which they recently took to the National Assembly when they presented a position paper to the Upper Legislative Assembly adhoc committee on cement.

    He said part of their argument was that cement is capable of causing building collapse due to its exorbitant price as builders may be tempted to cut corners.

    Awobodu, who is the third vice president of the Nigerian Institute of Building, canvassed a situation where a bag of cement will not cost more than N800 so that many can afford it.

    He regretted that the product was more expensive in Nigeria  of all cement producing countries, and hailed the reduction. He encouraged other companies to follow the example of Dangote Cement Plc.

    A town planner and immediate past Secretary General, Association of Town Planning Consultants of Nigeria (ATOPCON), Mr. Ayo Adejumo said the reduction in the price of cement will increase activities in the construction sector. He noted the high number of abandoned projects in the country which is tied to high construction cost. He predicted a situation where their will increased activities for the professionals and artisans in the sector in the next two or three months.

    He said the overall effect of the price reduction will boost the over all economy and also lift the manufacturing sector.

  • Ebola: AU seeks fund from African billionaires

    Ebola: AU seeks fund from African billionaires

    The African Union (AU) has said it is seeking funding from some of the continent’s richest people, including Nigeria’s Aliko Dangote, to pay volunteer doctors and nurses fighting the Ebola Virus Disease (EVD) in West Africa.

    The continental bloc is seeking to raise $35 million in the first round and, eventually, as much as $100 million for the Business-to-Rescue Fund, said George Sibotshiwe, Executive Director, African Democratic Institution, which is coordinating a November 8 meeting in the Ethiopian capital, Addis Ababa, to encourage business people to donate.

    “A campaign to ask for contributions from “citizens” will follow,” he said.

    Dangote, the chairman of Dangote Group in Nigeria, and Patrice Motsepe, chairman of Johannesburg-based African Rainbow Minerals Ltd. (ARI) are expected to attend the meeting, the  AU said in an e-mail statement.

    According to AU, Strive  Masiyiwa, chairman of Econet Wireless International, Safaricom Ltd. of Kenya Chief Executive Officer (CEO) Bob Collymore, South Africa’s MTN Group CEO Sifiso Dabengwa and CEO of Standard Bank Group Ltd. Sim Tshabalala also plan to join.

    Among wealthy businessmen already committing money to curb Ebola are Microsoft co-founders Paul Allen and Bill Gates and Facebook Inc. CEO Mark Zuckerberg.

    The world’s largest Ebola outbreak has killed almost 5,000 people in Liberia, Guinea and Sierra Leone since December. AU member states have pledged to send at least 2,000 health workers to the three West African nations.

    The World Bank estimated that about 5,000 international medical, training and support personnel are needed in the coming months to respond to the outbreak, including as many as 1,000 foreign-health workers to treat patients. More than 200 local doctors and nurses have died since December from the virus, leaving the already-crippled health systems even weaker.

  • Firm misses estimates as European woes hurt profit

    Firm misses estimates as European woes hurt profit

    Holcim Ltd. (HOLN), which is merging with Lafarge SA (LG) to form the world’s largest cement maker, missed analysts’ estimates for profit and revenue as sluggish European demand and currencies effects in Latin America hurt business.

    Net income declined by 4.7 per cent to 447 million Swiss francs ($463 million) in the third quarter, missing the 452.5 million-franc analysts’ estimate. Sales of 5.2 billion francs also lagged behind analysts’ predictions.

    The profit decline highlights the need for the two cement makers to cut costs and reduce their exposure to the troubled European economy. Their $40 billion merger will couple Lafarge’s African cement plants with Holcim’s Asian assets, two regions where building is expected to boom over the next decades.

    “Europe’s economic recovery slowed down in the course of the first nine months of this year, with lower than expected growth in major economies such as Germany and France and the Ukraine crisis contributed to challenging conditions,” the company said. Its Chief Executive Officer, Bernard Fontana said the company also felt the impact of “weak emerging market currencies,” especially in Asia Pacific and Latin America.

    Holcim shares fell as much as 2.8 per cent and were down by 2.6 per cent in Zurich, valuing the company at 21.7 billion Swiss francs.

    Meanwhile,cement volumes won’t increase in Europe this year, the Jona, Switzerland-based company said. Holcim had earlier expected an increase and reiterated targets of organic growth in operating profit and a further expansion in margins in 2014. A cost-cutting plan begun by Fontana in 2012 had contributed about 200 million francs more to operating profit than originally planned by the end of the third quarter.

    Holcim and Lafarge will sell units to make sure regulators approve the planned merger. In Europe, where the largest part of cement and crushed rock divestments will take place, regulators have set a Dec. 15 deadline to either approve the deal or open a deeper investigation.

  • ‘Lack of business development plan bane of SME growth’

    The Small and Medium Enterprise (SME) sector has the capacity to transform Nigeria into a globally competitive economy in the mould of China and other Asian Tigers if operators could come up with viable and robust business development plans, Registrar/Chief Executive Officer (CEO), Institute of Business Development (IBD), Mr. Paul Ikele has said.

    According to him, most SME operators in Nigeria have no direction because of lack of business development plan.

    In an exclusive interview with The Nation, Ikele said: “SMEs need to come up with business development plans. Before a company is incorporated, that company should come out with a business development plan. Before you open an account for a limited liability company you should submit a business development plan so that government will key into it and follow it up. If at any point that business does not achieve its objective, it is quietly withdrawn. By so doing government will be able to identify those people that are performing and those that are not performing.”

    Ikele, a former MD/CEO of Noble Path Finance and Securities Limited and General Manager, Business Development Olympia Insurance Limited,expressed regrets that most people move into the SME sector because they don’t have any other alternative whereas SMEs can assist in turning around the economy.

    “I can assure you that if you are in SME and you know exactly what you are producing, you already have grown a market share in that particular business, you will be able to identify your key customers and focus on servicing them,” he said.

    The Registrar noted that this has not been the case with SME operators in Nigeria where “most SME operators are incompetent personalities, who just want to use it and do other things and because they know how to get to the sources of that fund they get the money and before you know it they channel it to other areas.”

    He pointed out that most people, who are interested in SMEs, are either incompetent or don’t have real intentions in that business. Rather, their intention, he said, is to use that money for other objectives.“This is why the Institute is insisting that every organisation should come out with a business development plan so that it will encourage them to submit at the end of the year the result of the evaluation of their operations,” he said.

    He said before setting up an SME, there is need to engage professionals to draw up the business plan. Also, there is need for an environmental scanning to determine whether that business would survive in that particular area.

  • LCCI inaugurates power sector group

    LCCI inaugurates power sector group

    As a demonstration of its support for the ongoing re-forms in the power sector, the Lagos Chamber of Commerce and Industry (LCCI) has set up a Power Sector Group to further its advocacy role.

    At the inauguration of the group in Lagos, President of the Chamber, Alhaji Remi Bello identified it as one that would provide useful inputs for the Chamber’s advocacy activities “for the protection of stakeholders’ interests and improvement of the power sector as a whole”.

    He disclosed that the LCCI’s objective was to obtain optimal results on the current reforms of the sector by seeking maximum value for electricity consumers. It is also to assist private sector investors, especially the indigenous ones, and seek proper identification of strategic areas in which government intervention is necessary along the power delivery chain. “The Chamber is desirous of making the reform work for the economy, private sector and Nigerian citizens,” Bello submitted.

    Participants at the inauguration, who were mainly stakeholders in the power sector of the economy, lauded the Chamber’s initiative and assured that the contributions of diverse stakeholders at the event towards the promotion of the sector would ensure ultimate realisation of the Chamber’s goal.

    The power sector group is a fall out of the existing science, energy and technology group which has Vice President,  Mrs. Joana Maduka as chairperson. A renowned engineer, Mr. Effiom Edet, was appointed as interim chairman of the power sector group.

  • ‘Technology indispensable catalyst for the non-oil sector’

    The Minister of Science and Technology, Dr. Abdu Bulama, on Tuesday in Lagos, said, technology has become an indispensable catalyst in promoting innovation, competitiveness and export in the non-oil sector of the economy. Speaking at the opening ceremony of the Nigerian Raw Materials Exposition, 2nd NIRAMExpo 2014, tagged ‘Achieving Nigerian Industrial Revolution Plan Through Raw Materials Sourcing,’ the Minister noted that technology has been identified as an important factor in driving non-oil sector growth, both for enhancing increased production and value addition to natural resources, as well as in facilitating productivity in the service sector.

    According to him, the aim is to enhance the growth of Micro, Small and Medium Enterprises (MSMEs) which are considered the major engine of growth of any country and the pillar of the non-oil sector of the economy. “The success story of the Otigba cluster; Ikeja Computer Village; Nnewi Automotive SME cluster, Kano Leather Cluster; Aba Fashion and Garments cluster; Kano Leather Cluster, Aba Abeokuta and Osogbo tie and dye industry have proved beyond doubt that the cluster concept is one of the potent strategies required for enhancing speedy development of the non-oil sector,” he said.

    Dr. Bulama disclosed that the philosophy behind the establishment of these projects is to promote raw materials processing clusters, an initiative of the Raw Materials Research and Development Council (RMRDC). He said the concept has received the approval of the Federal Government of Nigeria for the implementation of the programme in all the political wards of the country. He said it was for this reason, it was named the Ward-Based Cluster Project  (WBCP). Consequently, the project, he disclosed, would be replicated in all the 9,555 political wards in the country based on each ward’s comparative advantage in terms of natural resources endowment.

    “It is our sincere belief and hope that through the NIRAM Expo, we can redirect the focus of the manufacturing sector towards increasing patronage of high quality secondary raw materials or intermediate inputs produced locally in preference to continued importation, and thereby conserve our foreign exchange and free such funds for other development purpose,” he stated.

    The Chairman, Governing Board, RMRDC, Senator Walid Jibrin, said RMRDC has the mandate to promote the development of the raw materials resources for optimal utilization for industrial growth. He said the Council overtime, and with current changes and direction of government, has reviewed and refocused its programmes and projects in line with prevailing situations leading to the production of the strategic plan (2014-2017) in line with the aspiration of Nigeria’s Vision 20:2020  and the transformation agenda of government.

    Senator Jibrin stated that in view of the dynamic and global competitiveness, it has become more imperative for council’s programmes and projects to be reviewed and re-positioned in a manner that will make them relevant and continue to positively impact on the overall economic development of Nigeria. He noted that NIRAM Expo is one of such strategic programmes designed to assist SMEs to produce more, to grow and to market their products in a sustainable manner.

  • CIPM urges on modern, quality skills’ set

    There is need for Human Resource (HR) professionals and business leaders to demonstrate contemporary, modern quality in their skills’ set, in their places of work, President, Chartered Institute of Personnel Management (CIPM), Victor Famuyibo, has said.

    The President, who spoke at the 46th Annual National Conference of the Institute in Abuja, said the sessions were specially put together to navigate, explore and exploit specific  industry issues and developments with the overall objective of creating a  paradigm shift in the way practitioners think and act.

    He said the conference created another platform for members of the Institute to up-scale their knowledge on contemporary issues of importance to the profession and to their jobs as managers of the people, adding that the conference provided a veritable platform for social and professional networking among the participants.

    He said the interaction at the conference enabled participants to meet, review progress, analyse new challenges, current trends, and benchmark existing approaches and work practices in their respective organisations, stating that it helped them to deepen their network and competencies.

    “In today’s knowledge economy, the depth of a professional’s network and competencies are determined by how far he/she goes in achieving excellence at his/her job functions,” he said.

  • Financial institutions, OPS members to hold raw materials expo

    To actualise its mandate of promoting resource-based manufacturing, the Raw Materials Research and Development Council (RMRDC), in collaboration with some financial institutions and the Organised Private Sector (OPS), are to hold a Raw Materials Exposition, tagged: “2nd NIRAM Expo 2014.”

    Some of the institutions are: Bank of Industry (BOI), Nigerian Export Import Bank (NEXIM), Bank of Agriculture and National Economic Reconstruction Fund (NERFUND). Members of the OPS are Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA); Manufacturers Association of Nigeria (MAN); Nigerian Association of Small and Medium Enterprises (NASME) and National Association of Small Scale Industrialists (NASSI).

    The NIRAM Expo 2014 is designed to direct national attention to critical challenges of manufacturing industries, which border on securing a standard framework for achieving improvement in sourcing of raw materials on sustainable basis by Small and Medium Enterprise (SME) manufacturers and other potential users in the country. The expo will also create efficient linkages and synergies among the real sector of the economy.

    The event themed: “Achieving Nigerian Industrial Revolution Plan Through Raw Materials Sourcing” promises to be the largest assembly of producers and users of raw materials in Nigeria, and is scheduledto hold at De Blue Roof, LTV Event Centre from October 28 to 30.

    The set objectives of NIRAM Expo, according to its organisers, areto provide conducive platform for exhibiting industrial raw materials and create enabling environment for effective synergy among stakeholders in raw materials value chain on sustainable sourcing of raw materials.

  • SME’s laud capacity, funding support by BoI

    Small and Medium Enterprises (SMEs) have attributed their growth to the assistance of  the Bank of Industry (BOI) through capacity building and long-term  loan.

    Speaking while receiving an award  of integrity, Executive Chairman, Innoson Group, Chief lnnocent Chukwuma, recalled how the bank gave him a boost, which grew his tottering business from employing 25 workers to 7,200 employees.

    He confirmed enjoying the bank’s facilities for three different times for the production of household plastics ranging from plates, chairs, tables and tanks to pipes and plumbing parts. The facilities, he said, have placed the company as the biggest manufacturer of plastics in the country.

    He said: “In 2010, the company accessed a fourth facility for its diversification into automobile assembling plant with the plastic arm producing almost all plastic components of vehicles. To date, the company has enjoyed four facilities from BOI, and has been able to maintain good debt service record on all the facilities, making us to employ over 700 direct staff  and 2,000 indirect workers.”

    The lnnoson boss said though he initially asked for a facility of N100 million and was denied, he was, however, given N80 million in machinery and equipment.

    The assistance, he said, has given his business the boost needed to grow  to  being a leader in the local manufacturing of vehicles.

    To the Managing Director of Nigeria Aluminium Limited, Mr. Iyiola Ishola, the long standing relationship his firm has with BOI since 2005, paid off with the growth in earnings per share of the company ‘s customers.

    Chairman, Rumbu Sacks Nigeria Limited, Mr. Ibrahim Salisu Buhari commended the single digit interest rate given to manufacturers, noting that it is not only convenient, but easy to repay. He said the company grew from the scratch 15 years ago to become the biggest producer of woven sacks and mats.

    Salisu Buhari said: “BOI improved our operations to the extent that we have been able to achieve an evolution of our production process from manual to advanced automation. Similarly, our company has been able to increase its workers from 231 in 2001 to 1,163 to date in direct and indirect employees.”

    Earlier, BOI Managing Director and Chief Executive Officer, Mr. Rasheed Olaoluwa, said the bank has established a hall of fame for 10  companies, who repaid their loans on schedule. The 10 companies, he said, demonstrated a high level of integrity in their dealings with the bank and fully repaid loans granted them by the bank as and when due.

    “These companies obtained long-term credit facilities from BOI at least twice and they fully repaid the loans as and when due. They have proven that integrity is not a function of size or of the business environment. They have shown considerable honour and character that we commend and applaud,” Olaoluwa said.

    The BOI boss added that the bank is poised to support genuine businesses to succeed through business support, capacity building and funding.

    On bad loans, he said the bank usually adopts prudent steps as soon as loans show signs of non performance.