The Nation Newspaper

Category: Industry

  • Intervention funds have failed, says LCCI chief

    HAS the Federal Government intervention funds made any impact on the economy? No, says Lagos Chamber of Commerce and Industry (LCCI) president Alhaji Remi Bello.

    At a seminar organised by the financial services Group of the chamber themed: “Intervention Funds: the journey so far”, Bello said the “economy is awash with unsuccessful intervention funds”.

    He said the seminar was a platform for the Bank of Industry (BOI) and other stakeholders to meet with the business community to rub minds on the intervention funds.

    The “major concern of stakeholders”, he said, was how to improve access to there bailout funds to cater for some businesses.

    Bello said the funds had become necessary because of the poor access to finance and high cost of credit from the convetional lending houses.

    The onus, he said, was on the disbursing agencies to enlighten operators on the condition for accessing the funds.

    Some of such funds include the N234billion Central Bank of Nigeria (CBN) bailout for refinancing and restructuring sector; N300 billion CBN Power and Airline fund; N100 billion Cotton, Textile and Garment Fund, N18billion National Automotive Council (NAC) fund and N10billion Rice fund.

    Acting Managing Director/Chief Executive Officer (CEO), Mr. Waheed Olagunju,  said the funds had grown the industrial sector.

    Olagunju said the sector is face with some challenges, which prompted the intervention with the hope of accelerating the pace of industrialisation.

    On the features of the facilities, he said they included refinancing of existing loans, leases and resuscitation of ailing industries, long- term loan for acquisition of plant and machinery, working capital at  an all -inclusive interest rate of  seven per cent  per annum as against 15 per cent or more charged by the commercial banks.

    Olagunju said  the tenor of the loan is up to 15 years as against 1- 3 years by commercial banks, stressing that commercial banks’ loans are short termed and not suitable for financing long-term  assets.

    He said the bailout funds were necessitated by the challenges faced by small and medium enterprises (SMEs). He listed these problems as heavy debt to commercial banks due to high cost of fund in the acquisition of operating assets, fund mismatch – using short term loan to  finance long term assets; less than 30 per cent industrial capacity utilisation resulting from lack of power supply, dependence on high import with the associated foreign exchange risk and the inability to compete in the global market place due to high cost of production.

    Olagunju, represented by an Assistant General Manager, Mr. Joseph Okechukwu said more than 500 projects benefited from the funds. Projects, he said, improved on their capacity utilisation by about 20 per cent and continued to sustain their operation after the intervention, while 10 projects were completed. Five stalled projects under implementation were completed and now operational with turnover increasing from N605.7 billion to N760.7 billion after the intervention.

    Olagunju noted that the agro-economic transformation requires a shift from primary to manufactured products, traditional to modern technologies and innovation, comparative advantage to competitiveness and production to market orientation. On sustainability of the intervention programs delivered through BoI, Olagunju called for an enabling business  environment, provision of infrastructure, energy, finance, services, technical assistance, and promotion of public private partnership (PPP) while strengthening innovation systems and  commercialising research findings. Others are the acquisition and adaptation to new technologies.

    Earlier in her welcome address, the Chairperson of LCCI Financial Service Group, Mrs. Olajumoke Fashanu, said the seminar was part of the group’s contribution to the development of the financial sector, which will enable them proffer solutions to challenges that may confront them in their operations. She said: “In a developing economy such as ours, the financial services sector is confronted with various challenges. We appreciate the fact that just as the nation is maturing politically, the financial services and other sectors are also maturing with the passage of time.”

  • Group makes case for sustainable GDP

    AfriHeritage, a research institute, has called on the government to formulate policies that will help sustain the rebased Gross Domestic Product (GDP) to meet Nigerians’ aspirations.

    Its Executive Director, Dr. Ifediora Amobi, described the rebasing as a welcome development, saying it is step towards realising the Vision 20:2020.

    The size of the economy was reportedly said to have expanded by more than three-quarters to an estimated N80 trillion ($488 billion) in 2013 compared with the World Bank’s 2012 GDP figures of $262.6 billion for Nigeria and $384.3 billion for South Africa.

    The National Bureau of Statistics (NBS) recalculated the value of the GDP based on production patterns in 2010, increasing the number of industries it measures to 46 from 33 and giving greater weighting to sectors such as telecommunications and financial services.

    While the revised figure makes Nigeria the 26th biggest economy, the country lags behind in per capita income, ranking 121 with $2,688 for each citizen. Amobi noted that the incorporation of sectors such as entertainment, music, telecoms and information technology into the GDP was a step in the right direction and in conformity with global practice, noting that the rating shows that the service sector and industrial sector, which were not part of the calculation 14 years ago, are part of the economic growth.

    The AfriHeritage boss said with the rebasing, Nigeria has become a safer haven for investment with a strong base just as the country went through bank reconsolidation a few years ago. He allayed the fears of those who have cited insecurity as a threat to foreign direct investment (FDI), saying that in economics high risks culminate in high returns. He advised investors to take advantage of the consumption gap being created by the insecurity and respond to consumer demand.

    Associate Fellow of AfriHeritage, Onyukwu Onyukwu, said Nigeria is not poor but the wealth in the country has not been optimally redistributed. According to him, a country with large population would definitely have high number of poor people, noting that the size of the economy as released creates a pool of foreign investment, which economic agents have responded to and which does not have any political undertone.

  • ‘Why we need World Economic Forum’

    An industrialist and Managing Director, Coleman technical Industries, Mr. George Onafowokan, is drumming support for the World Economic Forum billed to hold in Abuja next month. He said the forum is targeted at the youths and job creation.

    According to him, the forum will allow policy makers and the nation to look inwards as they listen to speakers from across the world talk on economies, prospects and challenges.

    “It is good for the nation as a whole to correct the wrong impression held by outsiders about us because of few bad elements among us. We need to be ‘proudly green’ and advertise our potential to the world,” he said.

    Onafowokan advised the government to select critical sectors of the economy and intervene, noting that it is the only sure way for the economy to grow. He said the last CBN intervention where industrialists borrowed fund at single digit of 7 per cent with 15 years gestation period lifted the manufacturing sector to the extent that capacities were built and job opportunities created. He stressed that a country such as the United States continuously supports various sectors of its economy especially the banking sector which it gives as much as $87 billion monthly to keep them afloat.

    On the rebasing of the gross domestic product (GDP), he said it was long overdue and should be applauded by all. The Coleman boss said rebasing is not about physical cash rather, it allows other economies to understand the worth of the Nigerian economy. He explained that the size and strength of the Nigerian econmy has the capacity to give foreign investors confidence to invest knowing that the economy is large enough to accommodate their investment. He said: “Rebasing allows other economies to understand our worth, it will attract foreign direct investment, earnings and expand our horizon. The higher the base the more likelihood that an investor will have the confidence that he will survive. It is indeed, a feel good factor. It brought out figures from telecommunications, agriculture and others that most people didn’t know existed. These have the capacity to attract more people into our country to invest.”

    He also challenged government to do more in power generation, distribution and transmission. He said the average industrialist spend between 10 to 15 per cent on energy generation. His company, according to him, initially invested N150 million in energy generation where they produced three mega watts and currently have invested N250 million where they will generate five mega watts. He said if government can do more in electricity generation companies will do better and support government employment generation efforts.

  • Dangote Cement partners bricklayers

    Dangote Cement Plc, last week, expressed its willingness to partner members of the Lagos State Bricklayers Association (LSBA) towards curbing collapse building in Lagos.

    The company has collaborated with Standards Organisation of Nigeria (SON) to train building materials dealers in Benin, the Edo  State capital.

    At the inauguration of the new executives of LSBA in Lagos State, Regional Manager, Marketing Services of Dangote Cement Plc,  Johnson Olaniyi, said the company’s new product, Dangote 3X Cement was developed to enable builders build with peace of mind.

    According to him, the new 42.5 3X cement is quick setting and has better strength than other brands in the market.

    Highlighting the advantages of the new Dangote 3X Cement and other brands in the market, he said “The 3x is an acronym for more profit to all users of cement while allowing the builders to build with peace of mind. The product comes with more yield, more strength and more life.”

    He pledged Dangote Cement’s willingness to partner with the new executive led by Abel Kayode in training new bricklayers and retraining old hands in the sector to adapt to modern standards in bricklaying. The training, he said, will help greatly in reducing the spate of collapsed building in Lagos State.

    Mr. Olaniyi added that Dangote Cement will be providing the bricklayers with basic tools that will help them do their jobs more efficiently and called on interested members to come and become distributors of Dangote Cement.

    Responding, the new President, LSBA, Abel Kayode commended Dangote Cement for sponsoring the inauguration of his executive and pledged to work hand in hand with the cement company towards eliminating the menace of collapsed building.

    In a related development, the Edo/Delta Zonal office of  SON has commended Dangote Cement for partnering the agency in training members of Cement, Iron, and Asbestos Free Products Dealers Association (CRADA) in Benin City.

    State Head, SON, Edo/Delta, Mr. O.I Akogun who gave the commendation at a one-day seminar for CRADA members said that though a lot of  organisations were approached for sponsorship of the training, only Dangote Cement responded. He commended the company for the introduction of the new 3X cement and called on participants to buy the products as it has been approved by SON.

    Responding, representative of Dangote Cement, Mr. Johnson Olaniyi said that the company’s sponsorship of the seminar is a deliberate strategy of collaborating with stakeholders to promote standardization in the building and construction industry.

    He informed CRADA members that they form a vital link in the distribution network of Dangote Cement and pledged that all their demands will be met. About 300 dealers attended the training.

  • Will rebased GDP aid real sector?

    Will rebased GDP aid real sector?

    Since it was done, the rebasing of Nigeria’s gross domestic product (GDP) has been dominating discussions. What does it mean for the industrial sector? Will it bring back to life dead industries? Will it lead to the return of companies that left the country? Experts call for caution in celebrating the rebased GDP, which makes Nigeria’s economy the first in Africa and the 26th in the world. OKWY IROEGBU-CHIKEZIE reports.

    WITH its rebased gross domestic product (GDP), Nigeria’s economy has been ranked high. It is now the first in Africa and the 26th in the world. But what does this translate to for the economic indicators such as the industry? Will it result in the resuscitation of Mori-bund industries? Will it lead to the return of those who left the country because of the harsh operating evironment? These questions were not answered by the Minister of Finance and Coordinating Minister of the Economy, Dr. Ngozi Okonjo-Iweala, while unveiling details of the rebased GDP in Abuja about two weeks ago.

    But the World Bank Chief Economist for African Region, Mr. Francisco Ferreira, is canvassing for caution on celebrating Nigeria’s new economic position. According to him, the emergence of Nigeria as the largest economy in Africa may not necessarily trigger financial inflows unless there are good policies and prospects to woo foreign investors.

    To a member of the African Roundtable, Prof. Ben Ike, Nigeria can only boast about growth if the infrastructure needed by the various sectors to grow and create employed are there. He challenged the government to work hard to resuscitate the textile and agricultural sectors, which are huge employment windows with the capacity to grow wealth.

    He called for policies that will stimulate the sectors in terms of financial engineering and credit facilities, particularly, for the Small and Medium Scale Enterprises (SMEs). He criticised the importation of artisans from abroad to the detriment of millions of their indigenous counterpart without jobs. He urged the government to build an infrastructure base that will target the growth of the film industry popularly known as Nollywood.

    Ike said if the film and entertainment industry could grow from zero to 1.4 per cent without government intervention, a little intervention would take the industry higher. He listed some of the infrastructure needed to boost the industry to include a film village, electricity, big screens, human capital and institutional development.

    A legislator from Degama Federal Constituency, Dr. Sopento Davis, asked for a policy that will encourage wealth distribution. Citing India, he said the government took advantage of the country’s huge population and economy to develop its human capital in the Information and Communications Technology (ICT) sector to employ a lot of people.

    He also sought a law to establish leasing companies that will lease to operators in the agricultural sector. He decried the declining fortunes of those engaged in the sector, noting that the nation  spends $1 billion yearly on fish importation, consumes 2.7 million metric tonnes of fish but produces 700,000 metric tonnes, leaving a gap of two million tonnes. He urged the government to build capacity in high sea fishing and provide trawlers.

    President of the Institute of Chartered Accountants of Nigeria (ICAN), Kabir Mohammed, said the rebasing would boost foreign direct investment (FDI).

    An industrialist and Managing Director, Koinic Industries Limited, mr Kachukwu Duru, said the size of the economy would give investors confidence and also attract  FDI.

    Duru’s position alligns with that of Dr. Okonjo-Iweala:, who said rebased GDP is boosting interest in the economy. The Minister, who spoke at the just-concluded Spring Meeting of the World Bank and International Monetary Fund (IMF) in Washington, said Nigeria came into the meeting with the rebasing that was favourably welcome by many delegates and participants.

    According to her, the fact that Nigeria has a better measurement of its GDP and base, bring about a lot of interest among participants.

    “Even some private sector players have come to show more interest in investing in the Nigerian economy. For instance, Blumberg grain has already sent a team to Nigeria working with the Minister of Agriculture.

    “They want to make Nigeria the hub for grain storage, cold storage and agriculture logistics in Africa; they want to invest $250 million.

    “So, they have a team, the fact that we have the largest economy in Africa is making them feel that this may be the hub,’’ she said.

    Okonjo-Iweala said that if Nigeria handled it right and the decision made, Nigeria would have a lot to benefit from it.

    But the Nigeria Labour Congress (NLC) is praying the government to translate the figures into improved living conditions for Nigerians. In a statement titled: “Good GDP without sustainable and viable Jobs: A time bomb,” its acting President, Mr. Pomise Adewusi, said economic growth without jobs and food on the table meant nothing.

    The statement reads: “As cheering as this news may be, we at NLC are not completely swayed by the latest GDP figure, nationalist as it seems. Nigeria being the biggest economy in Africa ought to make no news if vital national statistics, such as population, natural resources, among others, were to form the requisite assumptions for assessment. More importantly, an improved GDP will only make meaning to us in labour if it translates into improved living conditions for the ordinary Nigerian, which is not the case at the moment.

    “Living conditions in the past couple of years have been progressively nose-diving and pathetic. Similarly, economic growth without jobs and food on the table, means nothing in realty. The unemployment figures are frightening. We have found it necessary to warn, times without number, that the army of unemployed youths constitutes a veritable army of the disparate, the desperate and the angry, and that government should urgently address the problem.”

    Nothing, NLC said, illustrated this fear better than the recent Nigeria immigration Service recruitment tragedy.

    “We, therefore, do not need any economist or diviner to tell us that life has improved, because it has not,” NLC said, adding: “A GDP could not be said to have significantly improved if our industries are virtually shut and operating environment increasingly hostile. Government should worry that the performance index of industries dropped from 46.08 per cent to 25.81per cent, while service industry more than doubled to 50 per cent from 23.03per cent.”

    An economist, Mr. Henry Boyo, described the GDP rebasing as a development that is “good for the ego”, insisting that the standard of living of an average Nigerian is lower than a South African.

    The Portfolio Manager at Investec Asset Management, South Africa, Mr. Roelof Horne, said the rebasing would probably not mean a significant change, but it will improve Nigeria’s balance sheet. He argued that it can only lead to lower borrowing costs for the government, which may  ultimately be beneficial to the citizenry.

    Horne said: “The country still faces an immense challenge in terms of infrastructure deficits – slow ports, bad roads and a lack of electricity are some of the major factors hampering business activities. However, it is commendable that they have shown commitment to addressing these backlogs, but it will likely take some years before these can be resolved.”

    He said given its relatively more developed state of infrastructure and financial systems, South Africa will remain one of the important economies of the continent, but the rebasing of Nigeria’s GDP will be a significant step in establishing Nigeria as a true African powerhouse.

  • French investors eye Lagos

    French investors eye Lagos

    The conducive investment climate in Lagos State, South-west Nigeria, has drawn the attention of investors from France who are eager to invest in the state. Apparently encouraged by the relative peace and security in Lagos, the commercial nerve center of Nigeria, a high powered French business delegation has met with the Lagos State Governor Babatunde Fashola (SAN) during which the French investors made useful enquiries on the prospects of investing in water and other critical sectors of the Lagos economy.

    The French delegation met with the Governor on the sidelines of the just concluded Lagos Economic Summit, (EHINGBETI 2014) held at Eko Hotels and Suites, Victoria Island, Lagos, where the Governor assured the delegation that the state was open to prospective and genuine investors ready to invest in various sectors of the state’s economy. While noting that the visit of the investors represents one of the gains of his administration’s international economic diplomacy, which saw officials of Lagos State visiting France in 2009. This, he said, was why some French companies are now signifying interest to invest in the state.

    The Governor pointed out, for instance, that the Lagos Mile 12- Ikorodu Road expansion project is being funded by a French concern. The project is due for completion by end of 2014. Governor Fashola who fielded questions from the French investors said state government’s waste to wealth project, which seeks to convert waste to energy and money, in addition to the possibility of generating up to 40 megawatts of electricity through waste conversion process, is still on-going, and that the state is ready to partner with private investors in that area.

    The Governor also listed the transport sector as another area where there are investment opportunities. He said he would like to see the possibility of local bus assembly plants being powered by private investors. The State Government, Fashola disclosed, is still considering a revisit of the Lagos Metroline project. He reiterated that the objective of the government is about getting efficient and safe transportation for the people by ensuring that it is entrusted in the hands of those who make a living from transportation.

    Fashola said the state government is also thinking of contracting all waterworks in the state to private sector operators. He said the state has built 15 mini water works with each having a capacity of two million gallons daily, which still fell short of the requirement of the people. According to him, this informed the construction of the Adiyan Phase Two water project with a capacity for 70million gallons of water daily.

    In the area of sanitation, the Governor said the challenges facing the state are in three broad areas namely, solid waste, liquid waste, waste water and air pollution, adding that the model developed by Lagos has moved it from the old system of how to move the solid waste to the position of what to do with the solid waste that is being moved.

    “I think the problem is our waste water management capacity. The existing capacity is under 10 per cent. We have developed a 10 year plan to close that gap. We have met the unregulated operators who have agreed to bring solid waste from the water septic tanks to our treatment plants where we treat and discharge into the open water bodies,” Fashola said.

  • Group hails quality policy steering committee

    The Champions of Development Nigeria (CDN) has expressed delight with the inauguration of the National Quality Policy (NQP) Steering Committee by the Federal Government. In a statement signed by its president, Mr. Jonas Yomi, the group described the committee’s inauguration as a timely step towards enthroning the quality culture in Nigeria.

    CDN decried the lack of an integrated approach to quality management in Nigeria, saying that the harmonization of regulatory agencies and existing quality policies was overdue if Nigeria was determined to establish national quality infrastructure, which is an important tool for implementing NQP.

    The group also lamented the non-existence or insignificant number of accredited laboratories in Nigeria, noting that accredited laboratories are the backbone of consistently valid testing results without which products or services cannot be said to be certified or conforming to requirements.

    “These unacceptable deficiencies of the present approach to standardisation highly recommend 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; minimize conflict between them; enhance cooperation between them; and identify existing as well as needed infrastructure, and chart its own implementation,” the statement said.

    The group urged the Steering Committee to ensure that all stakeholders are carried along in the process of the policy drafting and evaluation since only an all-inclusive policy will gain the needed broad-based support. “There is need to reach out across the whole spectrum of stakeholders. This can be done through road shows as well as sustained mass media campaign. Within the framework of national interest, the diversity of views should be considered,” the group stated.

    CDN also urged the Committee to see ahead and make only recommendations that will stand the test of time. “Imagine how it will be if the nation has to start drafting a new NQP in the next couple of years due to some unforeseen factor,” Mr. Yomi noted.

    With the Minister of Trade & Investment, Dr Olusegun Aganga as chairman and the Director General of the Standards Organisation of Nigeria (SON), Dr Joseph Odumodu as secretary, the NQP steering committee is mandated to review and harmonize existing quality policies in Nigeria, identify Nigeria’s national quality infrastructure needs, identify the best model for national economic growth and develop the roadmap for National Quality Policy implementation.

     

  • Fed Govt to foster stronger economic ties with China

    Vice President Namadi Sambo has said the Nigeria-China Joint Commission is to be upgraded to enhance greater economic ties with China.

    Sambo stated this when a Chinese delegation led by the Vice Minister of Foreign Affairs of the Republic of China, Zhang Ming, visited him at the State House, Abuja.

    The delegation is in Nigeria to lay the groundwork for the forthcoming visit of the Chinese Premier, Li Keqiang, to Nigeria and to consolidate the ties between the two countries.

    Welcoming the delegation, Sambo noted that Nigeria and the Republic of China established a relationship as far back as 1971.

    “Nigeria stands as the third place trading partner with China in Africa and is aspiring to be the number one trading partner,’’ he said.

    He appreciated ongoing relationship with the Chinese firm partnering with the Defence Industry Corporation of Nigeria (DICON) in the installation of new ammunition protection lines, mass production of military hardware and other armored personnel carriers and clothing.

    He said government is in support of the reforms of the Chinese Prime Minister.

    “Nigeria fully associates itself with the attainment of the goal of the Beijing Declaration, an action plan for the 2013-2015 programme as it solicits for more intervention of the Chinese Government through focus on Africa’s development in the interests of both countries and humanity in general,’’ he added.

    Sambo called for further support and cooperation of the Chinese authority, and urged Nigeria’s Minister of Foreign Affairs and China’s Ambassador to Nigeria to meet and seek ways to improve on visa relationship between both countries.

  • ‘LASRRA data bank vital to industrialists’

    The Lagos State Government has said that the recently established Lagos State Residents Registration Agency (LASRRA), is positioned to be a tool for planning and development of the megacity.

    General Manager, LASRRA, Ms. Yinka Fashola, said the days were gone when manufacturers site industries in localities or produce products that are not targeted at a particular audience or age group because of insufficient data on demography of the state.

    She said with the coming on stream of LASRRA to document the data of Lagos residents , it would be easier for manufacturers to ascertain the age brackets of those their products are made for. She said the full implementation of the aims of LASRRA would not only aid manufacturers in the choice of products, but also the population segment they are catering for.

    She said the demographic capture of relevant data would enhance development in all areas of the state, as government would now be guided by data resources that are realistic and verifiable and can be deployed in the best interest of the public. She pledged that the agency would continuously update its data in conjuction with not only the National Population Commission (NPC), but with other relevant agencies to remain up to date in data storage.

    On the challenges of the exercise, Ms Fashola said the agency has observed apathy in certain quarters, especially among the elite who treat the exercise with levity. Furthermore, she regretted that the exercise has exposed the fact that a larger share of documents carried around by people are fake. According to her, the predominance of fake documents in the guise of national identity card, voters card and utility bills is alarming. She urged the government and other relevant agencies to do something urgently to curb the menace.

    On the benefits of the registration, the LASRRA boss said the excercise would ensure efficiency in the allocation of resources by government to meet the needs of the people. Members of the private sector would also take advantage of the credible data capture to ascertain the viability of any business before embarking on such, especially in manufacturing of products.

  • ‘Why economy is not growing’

    Underdevelopment and poor energy supply are some of the problems threatening the economy, the Director-General, Nigeria Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), Dr John Isemede, has said.

    He told The Nation in an interview that inadequate electricity supply has left many industries dead while others moved to neighbouring African countries.

    He cited Michelin and Dunlop Tyres that relocated to neighbouring countries, saying they left because of the non-availability of infrastructure, including electricity.

    He stressed the need for collaboration among government, organised private sector, research centres and universities to fashion out appropriate policy to grow the economy.

    He said inappropriate policies had deprived the nation the needed income from raw materials export while also encouraging importation of finished goods, adding that “we lack the political will and expertise to develop the economy”.

    Calling for strong infrastructure development to grow the agricultural sector, he recounted how cocoa seedlings, which came into the country 104 years ago, built the infrastructure in the Southwest, including the Cocoa House and Odua Investments Limited, but declined as an income earner because value was not added to it.

    He regretted that it was also the case with palm produce that was introduced to the Malaysian government in the 1960s, noting that while the country earned over $21 billion last year from palm produce, Nigeria is the highest importer of oil.

    Isemede questioned the increasing number of universities and research institutes that have refused to add value to the country’s raw materials, which gave rise to the current position where Nigeria export raw materials and import finished goods.

    The NACCIMA director- general argued that there is need to tap alternative sources of energy if Nigeria must be competitive as a nation and urged government to exploit atomic energy and other green energy to run the economy. He decried the touted 4,000 mega watts electricity supply in the country and said that if the nation is actually serious about industrial revolution the current electricity supply, which is barely enough enough to serve Lagos Island alone must be improved upon. He further said that no nation is known to have developed without adequate energy supply. According to him, South Africa with a population of 45 million people generate over 50 mega watts, while Belgium with population of about half of Lagos is generating 60,000 mega watts.

    On why the nation is import driven, he responded that the paucity of infrastructure especially electricity has made manufacturing unattractive as importation is more profitable for businessmen. He said: “ In international business, energy plays a major role, there is no home advantage for any business, its only the unit cost of the products that determine advantage. The nation should therefore, encourage clean and other alternative sources of energy. It is only by doing so that the cost of production will come down and locally manufactured goods become competitive. Energy accounts for 40 per cent of production cost.”

    Managing Director/Chief Executive Officer(CEO) Tricontinental Oil Services Limited, Prof. Toyin Ashiru, also urged entrepreneurs to key into renewable energy. He said it remained the only way for businesses to remain competitive. He canvassed greater private sector participation as the government cannot do it alone.