The Nation Newspaper

Category: Industry

  • Nigeria Machine Tools excites at exhibition

    Nigeria Machine Tools (NMT), the first producer of oil industry branded stud bolts and nuts in West Africa, generated excitement among stakeholders in the oil and gas industry when it participated at the yearly Nigeria Oil and Gas Conference tagged ‘NOG 2014’.

    The event, which held at the International Conference Centre, Abuja, attracted stakeholders in the oil and gas industry as well as service providers from across the world who came to showcase their products and services at the four-day event.

    Visitors to NMT’s stand were pleased to know that the highly sought after Flanges, stud bolts and nuts are produced locally.

    According to one of the visitors who is also a registered vendor with the international oil companies (IOCs), “we, the suppliers to the IOCs, are always on the look sout for better channels to source products for our clients and quality comes first before cost in this industry. One thing I can tell you is that if what I see here is what is obtainable from these people (NMT), then why will I have to go all the way to Asia or America to purchase the same products that I can easily get in Osogbo at the same spec and standard with what the foreign companies sell to us? I am happy Nigeria is gradually getting there.”

    Other visitors to NMT’s exhibition stand included top officials of the IOCs, original equipment manufacturers (OEMs), oil servicing companies (OSCs), Nigeria National Petroleum Corporation (NNPC), Ministry of Power, and PTDF, who came back to either inspect the products on display or to discuss with the company’s representatives.

    NMT’s Business Development Manager, Mr. Ikemefula Chikwendu, said: “The outing was good for us. We came to gain visibility and I believe we achieved that. The NOG happens to be the premier oil and gas annual gathering in sub-Saharan Africa and we have every reason to be here as we stand to benefit from the participation.”

    He added that “we had several visits from the IOC’s, OEMs, OSCs as well as the contractors who have been asking technical and commercial questions in relation to our products.  The interest is very visible, this is a wonderful exposure for us and we shall be here next year.”

  • Odu’a unveils industrial plan for Southwest

    The Odu’a Chamber of Commerce, Industry, Mines and Agriculture (ODUA’ ACCIMA) is to push the industrialisation of the Southwest by replicating in other states in the geopolitical zone the same friendly business climate in Lagos.

    One of the drive planks of the industrialisation is power supply. It is exploring other sources of energy for production processes, as it is done under the administration of Lagos State Governor Babatunde Fashola and other states in the region.

    President, ODU’A ACCIMA, Iyalode Alaba Lawson, told The Nation that it was high time lovers of the region who desire to see it take its place among those making global economic impact, rose to the occasion.

    She said: “Energy, which is one of the critical factors in global economic advancement has become a national challenge, and the government cannot do it alone; neither can members of the organised private sector (OPS) or the chambers of commerce. Until we all come together to proffer and agree on solutions to this malignant national challenge, the end in sight is economic doom and dependency of our region on grants from donors.”

    While insisting that the national challenge of availability of energy for economic production processes is grave and seem to have defiled effort by all governments to overcome, Lawson however, disclosed that ODU’ACCIMA is set to explore the prospects of using solar, biomass, biodiesel and ethanol, which are alternative sources of energy in the economic production process with south west as the focus.

    She expressed optimism that the region is capable of growing steadily to become the global economic giant of repute, having been adjudged as the fastest growing economic hub in the country.

    The ODU’ACCIMA boss said the perennial power challenge has grounded the economic production process of the country at large and the regions in particular, including the Southwest hence, the chamber is determined to turn things around. She said, for instance, that the poor power supply situation made it impossible for the cottage and small scale industries to survive.

    The blue chip firms are not spared of the effects of poor power supply either, as most of them have had to grapple with rising operational cost due to the use of alternative power supply.

    She regreted that industries experience epileptic performance occasioned by the high cost of production, while consumers bear the burden of high cost of goods and services.

    Mrs Lawson argued that it is impossible for any country powered by fossil fuel to experience the desired economic growth and development because of its high cost.

    “Fossil fuels, such as petrol and diesel, apart from their exorbitant cost, are globally becoming unpopular and their use is discouraged because of their destructive effects on the environment. The use of fossil fuels is hazardous to human lives and agriculture, which is the bedrock and main stay of any true economy,” she said, adding that this was why the chamber is driving the use of alternative sources of energy by partnering a number of banks such as Diamond Bank, Sterling bank, Ecobank, and Bank of Industry (Bol), among others.

    Indeed, experts say that there is a direct correlation between energy consumption and GDP generation, which perhaps, explains why the current trend globally is for nations to inject a significant percentage of renewable energy into their energy mix rather than totally depending on fossil fuels as energy sources. This realisation must have hit business operators in the Southwest region, who, riding on the back of ODU’ACCIMA, are making frantic efforts to explore alternative energy sources.

    The other plank is the small and medium scale enterprises (SMEs) sector, which the chamber is riding on to further give the region an edge. Governor Kayode Fayemi of Ekiti State perhaps, articulated the region’s efforts in this direction when, at the Third southwest regional integration forum with the theme: “MicroSMEs as Solution to unemployment and economic development” held at the Fountain Hotel, Ado-Ekiti, Ekiti State, he said strong and vibrant SMEs are at the core of economic development and prosperity of any nation.

    “This programme is a step in the right direction in setting our region back on the path to economic development. If we don’t tackle the scourge of unemployment by growing the SMEs, we will all be consumed by it even in our air-conditioned offices. We must therefore, look for creative and innovative ways to tackle this problem, which is what this forum is aimed at achieving,” he added.

    Fayemi said the idea of regional integration of Western Nigeria was initiated in 2012 by the governors of Ogun, Oyo, Osun, Ondo, Lagos and Ekiti states and the vision is to aggressively work together to “rebuild Western Nigeria into a first world status in terms of its economy, infrastructure and standard of living of our people.”

    Besides, the Southwest regional integration programme, he said, strives to put in place institutions charged with formulating policies and implementating development policies that would prepare the region for global competition through the establishment of the developmental agenda for Western Nigeria (DAWN).

    The Chairman at the forum, Aare Afe Babalola, Chancellor of Afe Babalola University Ado Ekiti (ABUA), lauded the initiative saying: “It is clear that the governors, who have put this together are good visionaries. I believe they have what it takes to diffuse unemployment and provide a bedrock for economic development.”

  • Lifeline for lubricants

    With the signing of a Memorandum of Understanding (MoU) between Ammasco International Limited and Nigerian Automobile Technicians Association (NATA),which gives Ammasco the right to produce customised oil lubricants, Asst. Editor Chikodi Okereocha reports that the deal is not only a shot in the arm of indigenous producers, who have been losing sleep over the deluge of cheap and sub-standard lubricants in the market, but also a boost  for the backward integration policy of the Federal Government.

    Lubricants Producers Association of Nigeria (LUPAN), an association with over 32 member- companies, has petitioned Dr. Olusegun Aganga, Minister of Industry, Trade and Investment, for what it perceived as the impending collapse of the lubricants sub-sector.

    In the petition, the body raised the alarm that investment estimated at over N680 billion may soon go down the drain because of the upsurge in the importation of sub-standard lubricants into the country. LUPAN said over 300,000 jobs were at risk unless the Federal Government curbs the menace. In the petition signed by its Chairman, Mr. Anthony Enukeme, and Executive Secretary, Mr. Obidike Emeka, LUPAN lamented the high tariff on base oil, which it puts at 10 per cent.

    The association said: “At present, imported lubricants and base oil, the chief raw materials in the production of lubricants, are housed under the same H.S CODE ‘2710.1939’ and accordingly, both attract the same tariff of 10 per cent. This situation sets the lubricant manufacturers at a disadvantage in the sense that after the payment of the 10 per cent tariff, importers of finished lubricants sell their products directly to the consumers without extra costs. The licensed blenders through the process of blending incur further expenses adding value to the base oil by introduction of additives and the employment of labour, high cost of energy consumed while running their respective blending plants and the high rate of interest accruing from loans from local financial institutions. This in turn raises the cost of the locally blended lubricants thereby making same unattractive to end-users.”

    The association noted that Nigeria remained a large importer of lubricants since the fire incident of 1995 at the Kaduna refinery’s base oil plant. The country, it noted, has since been 100 per cent dependent on the import of base oil, which constitutes about 90 per cent of finished lubricants.

    LUPAN, however, explained that sub-standard and adulterated finished lubricants from Dubai, Turkey and other countries have been on the rise, stressing that laboratory analysis report of most of such imported lubes revealed non-compliance to specifications and standards, both local and international. It described the lubricants as outright recycled oil with little or no additives in them.

    It further alleged that the lubricants imported with undervalued invoicing, deluge the markets and are sold at a cheaper rate than genuine locally produced ones thereby creating unfavourable conditions for the locally produced lubricants. This is despite the fact that the locally produced genuine lubricants go through further process of manufacture; consequently, selling at a higher cost than their foreign counterparts.

    “At present, the total demand for lubricants in the market stands at 582, 000 metric tons, MT per annum. However, the total installed capacity of the indigenous plants if fully utilised stands at over 965, 000 MT per annum,” LUPAN lamented.

    However, while the local producers await the minister’s intervention, they are not leaving anything to chance in their quest to reverse the trend. Consequently, AMMASCO International Limited, one of West Africa’s leading oil lubricant companies, has signed a Memorandum of Understanding (MoU) with the Nigerian Automobile Technicians Association (NATA) to produce local and customised oil lubricants. The deal, which has raised hopes of recovery of the already troubled lubricant sub-sector, would boost  the local production of the products, thereby promoting the backward integration policy of the Federal Government. This, in turn, would drive the country’s industrial revolution.

    Such hopes and expectations are not without some basis. Experts said the introduction of the backward integration policy in other critical sectors of the economy where the nation depends on heavy importation to boost local production and create more jobs, is that the success of the policy that worked magic in the cement industry, for instance, would be replicated in the lubricant sub-sector. “There are opportunities if we can push through the backward integration policy in other sectors. It opens up the space for local investors to come in,” President, Dangote Group, Alhaji Aliko Dangote, said, in reference to moves by the Group to key into the backward integration policy in the sugar sector.

    The policy, which sits well with the country’s dream of industrial revolution, has since helped it to produce cement to meet domestic consumption and also export. The hope is that this would be replicated in the lubricant sub-sector. As the Chairman of Ammasco International Limited, Alhaji Mustapha Muhammad, pointed out, “We are endowed with highly motivated and enthusiastic professionals driven by vision to excel in the production of quality products and services. We also aspire to achieve the position of a leading major oil company in West Africa, manufacturing high quality lubricants and allied products; servicing automotive lubricants, industrial lubricants, marine lubricants, as well as grease and specialties,” he said, assuring that the firm would do everything possible to ensure that NATA and the consumers derive adequate satisfaction from the customised products.

    Continuing, Muhammad said: “Our business is to do for NATA what we know how to do best. In Ammasco, we always aspire to get it right and we always work to churn out the best from our stable. I want to say that the signing of this MoU is a step in the right direction. We will not renege on our part as we are ready to make the best out of this deal. We appreciate the leadership of NATA for believing in us and in return, we will not fail on our own part.”

    President, NATA, Michael Omonayin, explained that the choice of Ammasco for the deal was born out of its track record in the production of quality lubricants that have continued to dominate the market. According to him, a critical market survey also put Ammasco on the leading position, adding that responses from various customers, many of who are members of the association, attested that Ammasco products remain the best in the market.

    Omonayin also described the deal as ‘a win-win for Ammasco and NATA.’ He said: “What has happened today is a step forward for both organisations. The benefits are mutual and I believe that this is just a start to the many projects we can carry out together. Ammasco was not chosen by accident, but after a painstaking survey and considerations, we came to the conclusion that Ammasco has all it takes to give us what we need. We pray and hope that this MoU will bear more fruits than expected.”

    NATA is a national professional body of micro, small and medium scale auto-repairers in the informal economy numbering over 2, 000, 000 members from all over the federation. Members include artisans without formal schooling and technicians with average formal education and belong to such sub-trade groups like vulcanising, auto-electrical repairing, panel fixing, auto-body building, motor engine repairing and servicing, welding and iron bending, auto-spraying and other auto related works. Members constitute over 75 per cent of all automobile technicians in Nigeria.

    Already, NATA’s deal with AMMASCO has received the nod of the  Standards Organisation of Nigeria (SON), which issued an International Standards Organisation (ISO) Certificate to Ammasco, recognising it as one of the leading oil lubricant firms in West Africa. The ISO’s endorsement is seen as a shot in the arm of Ammasco, providing it with a strategic tool to ensure increased, quality productivity in its stable. It also positioned the firm to access new markets, with greater opportunities to penetrate other African countries as it aspires to compete in free and fair global trade.

    SON’s Director-General, Dr. Joseph Odumodu said: “We are, indeed, impressed with the facilities we have seen on ground today. This attests to the fact that Ammasco has got ISO certificate basically on merit. The company has proven its worth in terms of upholding standards and professionalism and we expect other indigenous companies to learn from what Ammasco is doing. We are really impressed and we urge Ammasco to keep it up.”

  • Odu’a unveils industrial plan for Southwest

    The Odu’a Chamber of Commerce, Industry, Mines and Agriculture (ODUA’ ACCIMA) is set to push the industrialisation of the Southwest by replicating in other states in the geopolitical zone the same friendly business climate in Lagos.

    One of the planks of the industrialisation is power supply. It is exploring other sources of alternative energy needed for production processes, as it done under the administration of Lagos State Governor Babatunde Fashola and other neighbouring states in the region.

    President, ODU’A ACCIMA, Iyalode Alaba Lawson, told The Nation that it was high time lovers of the region, who desire to see it take its place among those making global economic impact, rose to the occasion.

    She said: “Energy, which is one of the critical factors in global economic advancement has become a national challenge, and the government cannot do it alone; neither can members of the organised private sector (OPS) or the chambers of commerce. Until we all come together to proffer and agree on solutions to this malignant national challenge, the end in sight is economic doom and dependency of our region on grants from donors.”

    While insisting that the national challenge of availability of energy for economic production processes in the country is grave and seem to have defiled every effort by all governments to overcome, Lawson however, disclosed that ODU’ACCIMA is set to explore the prospects of using solar, biomass, biodiesel and ethanol, which are alternative sources of energy in the economic production process with south west as the focus.

    She expressed optimism that the region is capable of growing steadily to become the global economic giant of repute, having been adjudged as the fastest growing economic hub in the country.

    The ODU’ACCIMA boss said the perennial power challenge has grounded the economic production process of the country at large and the regions in particular, including the Southwest hence, the chamber is determined to turn things around. She said, for instance, that the poor power supply situation made it impossible for the cottage and small scale industries to survive.

    The blue chip firms are not spared of the effects of poor power supply either, as most of them have had to grapple with rising operational cost due to the use of alternative power supply.

    She regreted that industries experience epileptic performance occasioned by the high cost of production, while consumers bear the burden of high cost of goods and services.

    Mrs Lawson argued that it is impossible for any country powered by fossil fuel to experience the desired economic growth and development because of its high cost.

    “Fossil fuels, such as petrol and diesel, apart from their exorbitant cost, are globally becoming unpopular and their use is discouraged because of their destructive effects on the environment. The use of fossil fuels is hazardous to human lives and agriculture, which is the bedrock and main stay of any true economy,” she said, adding that this was why the chamber is driving the use of alternative sources of energy by partnering a number of banks such as Diamond Bank, Sterling bank, Ecobank, and Bank of Industry (Bol), among others.

    Indeed, experts say that there is a direct correlation between energy consumption and GDP generation, which perhaps, explains why the current trend globally is for nations to inject a significant percentage of renewable energy into their energy mix rather than totally depending on fossil fuels as energy sources. This realisation must have hit business operators in the Southwest region, who, riding on the back of ODU’ACCIMA, are making frantic efforts to explore alternative energy sources.

    The other plank is the small and medium scale enterprises (SMEs) sector, which the chamber is riding on to further give the region an edge. Governor Kayode Fayemi of Ekiti State perhaps, articulated the region’s efforts in this direction when, at the Third southwest regional integration forum with the theme: “MicroSMEs as Solution to unemployment and economic development” held at the Fountain Hotel, Ado-Ekiti, Ekiti State, he said strong and vibrant SMEs are at the core of economic development and prosperity of any nation.

    “This programme is a step in the right direction in setting our region back on the path to economic development. If we don’t tackle the scourge of unemployment by growing the SMEs, we will all be consumed by it even in our air-conditioned offices. We must therefore, look for creative and innovative ways to tackle this problem, which is what this forum is aimed at achieving,” he added.

    Fayemi said the idea of regional integration of Western Nigeria was initiated in 2012 by the governors of Ogun, Oyo, Osun, Ondo, Lagos and Ekiti states and the vision is to aggressively work together to “rebuild Western Nigeria into a first world status in terms of its economy, infrastructure and standard of living of our people.”

    Besides, the Southwest regional integration programme, he said, strives to put in place institutions charged with formulating policies and implementating development policies that would prepare the region for global competition through the establishment of the developmental agenda for Western Nigeria (DAWN).

    The Chairman at the forum, Aare Afe Babalola, Chancellor of Afe Babalola University Ado Ekiti (ABUA), lauded the initiative saying: “It is clear that the governors, who have put this together are good visionaries. I believe they have what it takes to diffuse unemployment and provide a bedrock for economic development.”

  • Agency warns business operators

    Hard times await operators and service providers who rip off their customers by collecting money for undelivered or unsatisfactory services, the Director- General, Consumer Protection Council (CPC), Mrs. Dupe Atoki, has warned.

    She spoke in Lagos while responding to questions on the activities of the agency and the need for consumers to seek redress for poor services charged for and sub-standard product bought.

    She accused manufacturers and service providers of taking consumers for granted in excuse for poor infrastructure provision in the country, adding that CPC’s mandate is to seek redress for consumers for products and services purchased in bad condition or products that perform below specification.

    Atoki said the agency is intervening in the food and beverage sector where its hammer fell on a major beverage manufacturer for breach of food safety and standards. She insisted that NAFDAC has no business probing consumer complaints as that function falls under CPC. She, therefore, said NAFDAC should focus on its mandate.

    The CPC, according to Mrs Atoki, also intervened in the telecoms sector. Recently, she called a meeting with all chief executives of the telecoms firms, which was repudiate as they resorted to sending managers that cannot make policy decisions. She warned that the chief executives risk five years’ jail term if they fail to honour the invitation the third time.

    The CPC boss blamed the telecoms firms for poor quality services, such as drop calls, slow Internet speed, unsolicited text messages, irregular billing, and bogus sales promotions.

    She insisted that it was wrong for operators to take consumers for granted by refusing to offer them services advertised or charging for packages or services not rendered.

    The CPC chief also made known that the agency was working on letting airline passengers to get redress for flight delays and cancellations.

    According to her, flight delays for between two and four hours entitles the passenger to lunch and more while cancellations entitles the passenger to a refund in addition to 25 per cent surcharge.

    She regretted that many airlines have got away with such breaches without fines, warning that it would no longer be business as usual.

  • Why Dangote introduced 52.5 grade of cement, by GMD

    Dangote Cement Plc, West Africa’s largest cement manufacturer, has hit the market with a much higher grade of cement, 52.5N, its Group Managing Director (GMD), Devakumar Edwin, has said.

    He made known at the launch of the new cement grade in Lagos that this higher grade, the first of its kind in Africa, has been certified by the Standards Organisation of Nigeria (SON) as conforming to the requirements of NIS 444-2003 and other relevant standards.

    Edwin shown reporters the SON certificate. It reads in part: “Considering the inspection carried out at your factory by a team of SON officers and the outcome of the laboratory samples of the product of your company, I have the pleasure to inform you that the underlisted product of your company is hereby adjudged by the SON to conform to the requirements of NIS 444-1:2003 and other relevant standards.”

    The GMD said the new grade would sell for the same amount as the 42.5N grade. He, however, said that it costs more to produce the 52.5 grade, but that Dangote Cement decided to sell at the same price in the interest of its customers and also to make it affordable to all.

    He explained that the new cement could be used for all construction, but that it is the best for any civil construction having bearing colum.

    The firm, according to Edwin, has started the production of the new 52.5 grade of cement from all its three plants in Ibese, Ogun State; Gboko, Benue State and Obajana in Kogi State. He, however, added that Dangote Cement was also the first to produce the 42.5N grade while other manufacturers were churning out 32.5 grade.

    The fact that the 52.5 grade of cement is being produced in the Africa for the first time clearly attests to the resolve of Dangote Cement to be a leading international producer of cement. The feat is seen by stakeholders as a realisation of the the firm’s goal of becoming a truly pan-African champion in the cement sub-sector capable of competing globally with the largest cement firms in the world

    The Honorary Adviser to President of Dangote Group, Joe Makoju, described the introduction of the new cement as “ground breaking,” saying that Nigeria is one of the best quality producers of cement in the world.

    His words: “No matter the sophistication of the structure, this is the best grade for any civil construction. Dangote did not create the standard. The standard has been there; we have only blazed the trail by starting its production. Its’ good for lead bearing colums.”

    The Vice President, Nigeria Institute of Builders, Mr. Kunle Awobodu, said the introduction of the new grade of cement into the market offered more choices to consumers.

    “It has provided variety into the market. Consumers have the opportunity to choose from different cement grades,” he said.

    Awobodu, however, noted that it had not been established that rising cases of building collapse in the country is as a result of the use of one grade of cement or the other. According to him, different grades of cement are used for different structures.

  • Lagos power market beckons investors

    Local and foreign investors and financiers may look no farther than the Lagos power market, where a huge electricity demand gap has created opportunities for investments in areas, such as expansion and upgrade of distribution network and equipment sale/vendor financing. Other areas yearning for investments are grid technology, gas supply and production of meters. Chikodi Okereocha and Toba Agboola report.

    Lagos State remains the hub of Nigeria’s commercial, financial and industrial activities. This is because much of the nation’s wealth and economic activities are concentrated in the state; which is why the city generates about a quarter of Nigeria’s total gross domestic product (GDP). The standard of living in the city is higher than in the rest of the country.

    The New York Times estimates the population of Lagos at 21 million, surpassing Cairo, Egypt as Africa’s largest city. The United Nations (UN) even went a notch higher, estimating that at its growth rate of 3.2 per cent, Lagos looks good to emerge the third largest mega city in the world by next year after Tokyo in Japan and Bombay in India.

    However, despite its intimidating credentials, there is a snag: inadequate power supply. This problem, which is not peculiar to Lagos, is a pain in the neck for Nigeria. It is the biggest constraint to economic growth.

    However, Lagos appears to have made the power challenge more pronounced than elsewhere. Lagos is the hub of Nigeria’s aviation, accounting for the largest share of air traffic in Nigeria (85 per cent of international and 47 per cent of domestic air traffic take place at the Murtala Mohammed Airport (MMA) Ikeja.

    Also, more than half of Nigeria’s industrial capacity is located in the city centre, particularly in the Ikeja industrial estate. Besides, the nation’s two busiest seaports are located in Apapa. The seaports account for over 70 per cent of sea trade in the country. Added to these are thousands of small business owners, artisans, industrialists, corporate organisations, the government, and residents who combine to make a 24-hour power supply imperative.

    To understand the power need of the state, the state government has conducted a power audit, involving over 13, 000 residential, commercial and industrial locations. It revealed that only one-10th of the power need of the state is being met, leaving a huge supply gap of about 9,000 Megawatts (MW) of electricity.

    Governor Babatunde Fashola brought the reality of the poor electricity supply nearer home, when at the inauguration of the second phase of expansion of the Island Power Plant, he said: “A snap shot of the state wide energy audit reveals that only a little above 1, 000MW of electricity demand by residents of Lagos is being met by the national grid, resulting in every location audited having at least one generator issue.’’

    The result of the audit means that a lot more is required to bridge the gap between power demand and supply. It also means that a huge investment opportunity has been opened to discerning investors and financiers. For instance, available statistics show that 850 MW or 25 per cent of power generated in the country is allocated to the state, translating to about 10 per cent of the state’s energy demand. Figures also show that homes in the state alone require 7, 241 MW while another 2, 350 MW is required to power commercial activities in the state. Besides, 660 MW is needed to power industries.

    While the power supply gap has effect on most residents, the state government may have decided to turn the challenges to opportunities, hence it is dangling the proverbial carrot to would-be investors in diverse areas in the state’s power market, such as expansion and upgrade of distribution network, equipment sale/vendor financing, smart grid technology, and gas supply.

    Investors can also avail themselves of the opportunities thrown up in the production of meters. There are also opportunities in oil and gas exploration, following the discovery of oil in the state.

    However, the state government is one of the frontline advocates of renewable energy and clean environment canvassing the phasing out of generating sets, which was why it built and inaugurated three gas-powered Independent Power Plants (IPPs) with some private operators. The combined capacity of the three plants is 32.55 MW, this will make it possible for several government facilities and institutions to enjoy uninterrupted power supply.

    The electricity hitherto being consumed by those institutions is available to residents. Various streets are illuminated at night from the power plants, thus enhancing security and night life.

    But, the state is hoping to ride on the back of the forthcoming Seventh Lagos Economic Summit tagged ‘Ehingbeti 2014’ to showcase the opportunities in its power market to prospective investors. Already, the Lagos Economic Summit Group (LESG), the public-private agency responsible for the summit, which holds from April 8-10, this year, has confirmed that an array of high profile international and local experts and policy makers will speak and formulate strategies on how to bridge the gap in the power sector . The summit with the theme ‘Powering the Lagos economy: Real opportunities, endless possibilities’ would highlight the investment opportunities that the sector offers.

    According to the Lagos State Commissioner for Economic Planning and Budget, Mr. Ben Akabueze, the theme of the summit was chosen in line with the vision of the administration of Governor Fashola to provide a solution that is more holistic to power infrastructure problem in the state.

    “The inadequacy of electricity has been the biggest constraint to the growth of not only Lagos economy, but the Nigerian economy as a whole. This is why power is the focal point for the economic summit being the driver of other sectors of the economy, especially agriculture, transportation and housing sectors of the Lagos economy,” he said.

    But would the event not go the way of previous ones, which some people have described as mere talk-shops without proper implementation? “No,” said Akabueze.

    He said the launch of the IPPs was one of the gains of the previous Lagos economic summits, and demonstrates the commitment of the government to the implementation of resolutions taken at Ehingbeti.

    He emphasised that the power supply in the state is still a far cry from what it requires to power some its infrastructure development across several critical areas, such as e-Ticketing for inter-modal transport system, such as Bus Rapid Transport (BRT), Light Rail and ferries, traffic lights at critical inter-sections, and train and bus terminals for night operations.

    Akabueze pointed out that for agriculture, the state requires power for its mechanised slaughter lines, conditioning system to preserve meat and vegetables, Lagos Wholesale Fish Market, poultry and fish estates and the rice mills.

    Other areas include housing projects, hospitals, schools, central business districts, industrial estates, courts, markets and lighting of highways and streets.

    “These are limitless opportunities being offered to perceptive investors and financiers at the Seventh Lagos Economic Summit,” he explained, adding: “Lagos renowned for its huge population also offers immense investment opportunities for manufacturers of consumer goods, food processing companies, commercial and transport activities, small and medium enterprises as well as artisans most of who depend on uninterrupted and stable power supply to function optimally.”

    Indeed, the high level of commercial and business opportunities in the state is unprecedented. According to the commissioner, “48 per cent of petroleum products consumption in Nigeria is in Lagos as a result of high vehicular density; about 40 per cent of bank branches are in Lagos; while over 40 per cent of telecoms subscribers are based in Lagos. Ditto for the two newly established private sector-led Electricity Distribution Companies – Eko Disco and Ikeja Disco, which account for 50 per cent of the defunct Power Holding Company of Nigeria (PHCN) business in Nigeria.”

    He expressed the optimism that the platform would attract significant venture capital and new businesses into the state. Participants and resource persons, would, for three days, be focusing on power issues aimed at attracting more investors into the state by raising awareness of the huge investment opportunities through the power sector and its ripple effects on other sectors, including agriculture, transportation and housing.

    Interestingly, the summit aligns with the Transformation Agenda of the Federal Government anchored on the power sector reforms. Already, the Federal Government, which is attracting private investors, has since handed over units of the unbundled power generating and distribution firms of the defunct Power Holding Company of Nigeria (PHCN) to private investors, thereby raising the hopes of not a few Nigerians that the power jinx may soon be broken.

    For instance, Managing Director of Nigeria Machine Tools Limited (NMT),Norbert Chukwumah, is optimistic that going by the privatisation of the power generating and distribution firms, a new dawn is in the offing.

    “I am a strong optimist in the recent privatisation of the power generating and distribution companies. I do believe very strongly that it is a laudable objective on the part of government. I am also firmly of the believe that within the next 24 months we will all see a drastic improvement in the power situation of this country,” he said.

    Chukwumah said his optimism is fuelled by the fact that “because the power companies have been handed over to people in the private sector who are going to manage it and who realises that the only those facilities would be beneficial to the new owners to drive profit is by making sure that the customer has the power (electricity). So, their first and foremost objective would be the provision of the service to the customer so that in return they generate the necessary income”.

    The scenario is expected to play out in the state and, indeed, others that have initiated moves to open up the sector to investors.

  • Entrepreneur calls for co-operation among stakeholders

    The Chief Executive Officer (CEO) of Netherlands Business School Nigeria (NBSN), Mr Lere Baale, has  called for co-operation  among  the government, private sector and individuals to develop entrepreneurship in Nigeria.

    Baale made the call in an interview with the News Agency of Nigeria (NAN) in Lagos on the sideline of a roundtable on “Job creation: Pathway to sustainable economic growth”.

    He said unemployment had become a global concern and should be tackled together by making people to be entrepreneurs rather than depending on the government for jobs.

    Baale also said one of the factors hindering the growth of entrepreneurs was the attitude of people to jobs.

    He listed this to include abuse of companies’ resources, lateness to work and lack of foresight in helping their organisations.

    Baale said another hindrance was government’s policy that forbids professionals in government from getting involved in business.

    He said there was need to re-orientate young Nigerians and change their perception of entrepreneurs, adding that there was a need to have broader perception of entrepreneurship.

    The NBSN boss said there was also the need to introduce entrepreneurial subjects in schools’ curriculum, rather than waiting until retirement age before engaging in entrepreneurship.

    He also said that experience had shown that most Nigerians had entrepreneurial skills, but lacked how to develop them.

    “Our educational system should be structured in such a way that every profession should be taught entrepreneurial skills.

    “Entrepreneurship pays better than the professional career.

    “The challenge the nation has is to constructively engage the government on what the people need as well as making government to be accountable,’’ Baale said.

    He said that the misconception that entrepreneurial skills were for the unemployed should be discouraged, saying that employees should also be involved.

  • Industrialists: traffic logjam at ports killing businesses

    The traffic gridlock at the Lagos ports has remained a source of headache for the Organised Private Sector (OPS). They are calling for urgent action to address it in the interest of businesses. Asst Editor OKWY IROEGBU-CHIKEZIE reports.

    The Federal Government has never hidden its intention to fashion out policies to stimulate the real sector of the economy. From the maritime to the industrial sector, power, oil and gas, among others, the administration has continued to churn out policies, which it believes, would provide the much-needed tonic to stimulate the real sector.

    However, the port reforms and the Export Expansion Grant (EEG), a post-shipment export incentive scheme designed to induce non-oil exports, have come under intense criticisms by members of the organised private sector (OPS) and stakeholders in various sectors. They argue that EEG has failed to deliver as promised.

    For instance, the EEG scheme, targeted at exporters, whose minimum annual export turnover is N5 million, is expected to assist exporters expand their volume and value of non-oil exports, diversify export markets and make them more competitive in international markets. But the grouse of operators is that the way the ports are structured under the reforms does not give much hope, if any, for the success of the EEG. The verdict of members of the OPS is that though the EEG is a welcome policy intervention, the scheme has failed to yield the desired result.

    The Managing Director, Ocean link Nigeria Limited, Uche Ibechi, captured the frustrations of operators over the state of affairs at the ports in a telephone interview with The Nation. He said although operators welcomed the ports concession, which handed the seaports to private investors, the concession has not worked out well. He regretted that “our ports today are characterised by poor services, poor cargo handling and poor documentation procedures”.

    Chairman, Export Group of Nigerian Association of Chambers of Commerce, Industry, Mines & Agriculture (NACCIMA), Mr. Oluyenuwo Olabisi, agreed with him, noting that the concessionaires at the ports do not have enough capacity for containers entering the ports, adding that the gridlock experienced by port users in the transportation of their containers has remained a source of concern. He said most of the concessionaires do not have bays for empty trucks.

    To him, the port reforms seem not to have made any appreciable impact, as congestion and long queues of vehicles are still creating a lot of problems for members of the export group. According to him, containers are sometimes turned back due to long queues, leading to huge losses as  products loose their freshness  and cannot meet internationally-accepted standards for export.

    Chief Executive of Harlink Investment Limited Alhaji Inaolaji Liadi Nofiu, is also not finding things easy because of the situation at the ports.

    ”In the last two weeks, we have not had access to the ports. The traffic congestion in Apapa Port stretched from the port to Alaka. It has caused untold losses for exporters. One wonders what the much-trumpeted reforms are all about.

    “The truth is that the Nigerian Ports Authority (NPA) is not in charge of the ports and for us as exporters we have no confidence in the so- called reforms, as it has not done us any good  but untold losses,” he lamented.

    Nofiu decried the corruption at the ports, noting that exporters can only get their containers into the ports for export after one form of extortion or the other. He said the EEG would make no impact on members of the OPS, for as long as they (operators) do not have access to the ports, or are forced to struggle to get their loaded containers into the port. He complained that most of the concessionaires do not have enough cargo capacity for export. He called on NPA to also check corruption at the ports, which he said is affecting the export business.

    Criticising the NPA for not being able to act as watchdog for the concessionaires, a situation which he said is against the objectives of the reforms initiated by government,  Nofiu called for a thorough investigation of the terminal operators who do not have the required infrastructure to turn things around at the ports. He drew the attention of government to the fact that most of their members have closed shop due to the poor implementation of the port reforms.

    However, the NPA said it has taken some steps to address the concerns of NACCIMA members. For instance, the Apapa Ports Manager, Mr. Nasir Mohammed, told The Nation that NPA has engaged an effective task force to decongest the access road so that NACCIMA members who have had to close shops in Apapa due to the congestion and lack of access to their offices, could return to business. He said henceforth, export and empty containers would maintain different lanes to the ports to ameliorate the sufferings of member of the export group.

    He also promised to establish an effective technical committee, comprising NACCIMA and other stakeholders to discuss the way forward, stressing the need  for  the ports to operate smoothly.

    Calling for collaboration among stakeholders at the ports, Mohammed, however, noted that from NPA’s investigations, it was discovered that the congestion was caused by the failure of shipping companies and terminal operators to provide holding bays for ships. He also decried the disorganisation of truckers that bring in containers even when they are not scheduled to enter the ports.

    President, Manufacturers Association of Nigeria (MAN), Kola Jimodu, at a session  with the Coordinating Minister of the Economy, Dr. Ngozi Okonjo-Iweala and the OPS in Lagos, called for the sustainable implementation of the  EEG for export trade, the  upgrading of Bank of Industry (BOI) to make it more relevant in the sector, especially with the Small and Medium  Scale Enterprises (SMEs), which have the capacity to grow the economy.

    His words: “The BOI is working below capacity; it has not been able to live up to its bidding by granting long-term finance to the manufacturing sector. It has not delivered on its mandate.”

    The MAN chief also canvassed the need for government to put its acts together and do its best to lift the manufacturing sector as part of the reforms targeted at the OPS. Specifically, he asked government to reduce interest rate as no business can run profitably on 32 per cent interest rate as obtainable now. He noted that no manufacturer can survive on a loan of between one to three years repayment period. He also made a case for adequate funding of BoI, which, according to him, would fast-track the nation’s industrialisation.

    Jamodu also called on the government to carry the members of the OPS along  when coming out with policies that affect them, as their inputs are necessary for the growth of the economy.

    He stressed the need for the government to consult  OPS in decision making, saying that MAN has 10 sectors and 76 sub-sectors with differing needs that must be taken into account by government in policy formulation.

     

  • Honeywell empowers women

    Honeywell Flour Mills Plc, makers of Honeywell Noodles, has said its support for entrepreneurship remains unwavering. It has empowered about 40 indigent women with products and equipment as start-up capital.

    Donating the products to the beneficiaries in Abeokuta, Ogun State, at the weekend, at the just-concluded International Women’s Day celebration, Executive Director, Marketing, Honeywell Flour Mills Plc, Mr. Benson Evbuomwan, said women are very key in the family, hence, empowering them meant empowering the whole family.

    Describing women as good managers, he said they would make good use of the opportunity provided them.

    Items given to them included sewing machines, generating sets, deep freezers, plastic chairs and tables, jumbo umbrellas and Honeywell products.

    One of the beneficiaries, a widow, Mrs. Olufunmilayo Adesegun, thanked Honeywell for the gesture, promising to be very prudent in managing the resources.