Category: Industry

  • Quality cement: no option than compliance

    The Standards Organisation of Nigeria (SON), cement producers and block moulders are battling to exonerate themselves from alleged complicity in the production and importation of low quality cement, which a group claims is the cause of incessant collapse of buildings. Asst. Editor Chikodi Okereocha examines the implication for the economy.

    Many reasons have been proferred for the recurring collapse of buildings. The most biting appears to be the claim by a coalition of civil society groups and professional associations in the construction industry that it is caused by low cement quality. The allegation is an indictment of cement producers and importers who have been denying the claim to protect their business

    Block moulders and the Standards Organisation of Nigeria (SON) have also defended themselves against the claim. SON is perceived to be weak production and importion low quality cement.

    The coalition is insisting that the government should make 42.5 grade of cement the standard product in Nigeria instead of the lower 32.5 grade mostly patronised by builders. The coalition, in a working document titled: “Cement: Standardisation, Safety Versus Affordability and Poor Quality,” raised a critical question over the quality of cement in the market, viz, “how do you identify good quality cement? is it by the manufacturer’s name or by its composition or pigmentation?”

    The coalition argued that nearly all cement manufacturers and importers take advantage of the lax regulation and lack of enforcement to vary their pigmentation in favour of the lower grade cement (32.5), which in most cases is used in building and seen to be partly responsible for the collapse of buildings. They believe that the practice is overlooked by SON. The coalition said it is warming up for a major campaign for the standardisation of the manufacturing and importation of cement.

    The coalition’s claims did not go down well with cement manufacturers, SON and block moulders, who have been debunking the allegations. Dangote Cement Plc, West Africa’s largest cement manufacturer and importer, was the first to react. The cement giant said it took exceptions to what it saw as an attempt by the coalition to lump it with other cement manufacturers who the group accused of producing low quality cement. The company insisted that it does not produce 32.5 grade cement. Rather, it produces only 42.5 grade cement in all its three plants in Obajana, Kogi State; Ibese, Ogun State; and Gboko, Benue State.

    According to its Chief Executive Officer D.V.G. Edwin, this is in line with the company’s adherence to global best practices of cement production of a minimum of 42.5 grade in all its factories nationwide. He explained that Dangote Cement chose to produce 42.5 cement grade because it is stronger and has better qualities, such as higher strength capability and rapid setting, which makes it the preferred grade among block makers, builders and construction workers. With quick setting, blocks come out stronger and reduces the number of breakages.

    As part of efforts to drive quality, Edwin said Dangote Cement has, in the past two years, embarked on training programmes aimed at educating those in the construction industry on how to achieve premium results through implementation of the 42.5 cement grade as opposed to 32.5 grade.

    He said the seminars and demonstrations with block makers is a permanent and continuous exercise, which forms a vital part of the company’s corporate social responsibility (CSR) initiative aimed at preventing building collapse.

    He also gave a breakdown of the different grades of cement available in the market. According to him, 92 per cent of Portland cement produced in the United States (US), are in 52.5 and 42.5 grades, while other imported cement from China, Japan, Denmark and Paris are all 42.5 Grade.

    “Over 90 per cent of consumers are not aware of the different types of cement available in Nigeria. Their expectations in respect to the performance of cement are the same regardless of the type. The grade (quality) of concrete to be used may allow 32.5 grade cement for certain construction work such as pavements, rendering (plastering) and culverts but would demand 42.5 grade cement for structures, columns, bridges and multi-storey buildings,” he said.

    Edwin maintained that Nigerians deserve the best, and that the company remains steadfast in meeting the needs of Nigerians for quality, cost effective cement.

    “We want to align with the civil society group that there is need for standards in cement manufacturing; we need to comply to set standard so that Nigerians can get the best,” he said, adding that those arguing that migrating from 32.5 to 42.5 would erode their profit margins are insincere and selfish as human lives are more important than profits. He said producing 42.5 grade though would lead to a marginal cost increase, it should be seen as a patriotic gesture to stem the tide of building collapse.

    “We place a high premium on human lives and not cost. Nothing on earth can be substituted for human lives,” he said, advocating that the best way to ensure safety in the construction industry is to insist on 42.5 as the grade to be produced and used in Nigeria.”

    Lafarge WAPCO Plc also rejected the claim that poor cement quality is responsible for the increasing menace of building collapse in the country. The company instead, argued that one of the ways to stem the tide of collapse building is by improving construction practices. Lafarge alongside other cement manufacturers in its faction such as Ashaka Cement Plc, Northern Cement Company of Nigeria, Sokoto and United Cement Company Plc, Calabar, canvassed the position that, “the Nigerian cement industry is one of the most modern in Africa, with significant new technology and capacity recently installed. Cement quality conforms to the highest international standards and the industry is constantly working with the regulatory authorities (SON) to ensure up to date testing, certification of products and quality norms.”

    The group said though they remain “committed to the sustainability of construction and share public concern regarding the menace of building collapse,” experience throughout the world shows clearly that cement quality is not the source of building collapse rather, the root cause is most frequently related to poor construction practices. The group said that the level of skill, education and awareness in the construction sector must be improved.

    “There have been several programmes in conjunction with SON to educate and certify block makers and masons. We are committed to organising even more education and awareness in this area and have recently participated with the Ministry of Works to pursue this initiative,” the group explained

    The cement manufacturers, however, did not see any wisdom in the suggestions that cement products should be limited and some removed from the market.

    “Products such as 32.5 have actually been part of building in Nigeria for the last 54 years and are used widely throughout the world. Limiting product choices will not be good for the consumer and will send the industry backwards and away from current international trend,” the manufacturers pointed out, assuring that the cement manufacturing community would continue to support all initiatives in conjunction with other stakeholders to eradicate building collapse.

    As Moses Ogunleye, President, Association of Town Planning Consultants of Nigeria, argue, there is no reason anything sub-standard should be in the market in the first instance, much less cement. He told The Nation that the raging controversy over poor quality of cement is a confirmation that SON is overwhelmed.

    “SON seems to be overwhelmed; they are monitoring standard in several sectors and so, they may not be aware of the existence of poor quality cement in the market,” he said, adding: “let us ask questions from SON.”

    He also said the Lagos State Material Testing Laboratory set up to register and accredit block moulders has not yet registered anybody. He, therefore, called on block moulders to embark on self-monitoring.

    Indeed, SON has come under severe criticisms in recent times over alleged weakness in the regulation of the cement industry. For instance, in what is seen by many people as a veiled indictment of the regulatory role of SON, Dangote Cement said prior to Nigeria’s attainment of self-sufficiency in cement production, SON stipulated the 42.5 grade as the acceptable grade for importers of cement into the country.

    The firm said as a responsible market leader, it has continued to produce 42.5 grade in its three plants in strict adherence to the stipulations of SON, wondering why SON should insist on 42.5 grade as the standard for import and allow a lower grade for local production.

    “How come that during the import era, we were all compelled by the regulatory authorities to bring in 42.5 grades and now, since 2012 when import was banned, the same regulatory authorities condoned the production of 32.5 grades?,” Edwin asked.

    However, SON has resisted attempts to put the blame on its doorstep. On the controversial grades of cement, SON noted that there are two grades comprising the 32.5 and 42.5, which also have various degrees of strength, but regretted that most members of the public are not even aware of the variety in grades, standards and specific applications of cement. The organisation added that what most people are aware of are the brand names, whereas the grades standards are equally important.

    “This ignorance has led to the misapplication of cement by many users and for reasons of personal gain, some people may just utilise one bag when more bags are actually required,” SON’ Director-General, Dr. Joseph Odumodu, said

    He insisted that as a responsible organisation, SON is committed to ensuring that the consumers get the best of quality whether in the construction industry or elsewhere. To this effect, he said the organisation has constituted a technical committee of experts to generally review the problems faced by stakeholders in the construction industry especially in terms of quality of building materials, including cement.

    “The committee, which is made up of well-informed individuals would take a holistic look on the quality of building materials in the country inclusive of cement, as a responsible standards bureau, SON has never and will never leave the quality of any product to the whims and caprices of any individual or group of operators,” the DG insisted.

    According to him, the issue of standardisation of products should not be left to the agency alone hence, it is necessary that stakeholders and other regulatory bodies, civil society groups, manufacturers, the academia and consumers make their input, which partly informed the putting in place of the technical committee.

    “This technical committee is not chaired by SON, we just provide a secretariat and it is what the committee arrives at that would be taken to the council of SON and once it is approved, it becomes a standard. Let me also state that a standard is not enforceable except the Minister of Industry, Trade and Investment designates it as a mandatory standard,” he explained.

    SON seems to have an ally in the Block Moulders Association of Nigeria, which insisted that SON is not a weak regulator.

    National Chairman, Block Moulders Association of Nigeria, Rasheed Adebowale, said the association is so much concerned about the attempts to portray SON as weak in the regulation of the cement sector “because we are part and parcel of the construction sector and major end users of the product.” He said that the association is not comfortable with what he described as the ‘faceless Civil Liberties Organisation’s claims. “We want to put it on record that we have never had it so good until the emergence of Odumodu at SON. The current leadership of SON is working closely and collaboratively with us to ensure quality and standard of products,” he added.

  • NNPC saves $565m through swap regime

    NNPC saves $565m through swap regime

    • Why kerosene subsidy persists

    The Nigerian National Petroleum Corporation (NNPC) has saved the country over $565 million through the crude swap and offshore processing arrangement since the business model commenced in 2010.

    A document obtained by The Nation from a top official of NNPC, showed that the average premium paid per metric tonne (MT) on premium motor spirit (PMS) under the swap/crude exchange arrangement has remained stable at $81.28 through 2010 to 2013 while under the open account regime; PMS average premium paid per metric tonne has continued to increase. Under the open account regime, PMS average premium paid per metric tonne in 2007 was $70.02, which rose to $85.14 in 2008 and in 2009 to $87.50 and further to $116.50 in 2010.

    The data showed that in 2010, $141,266,580.77 was saved from products import through swap/crude exchange arrangement. Under the open account regime, the premium was systematically growing every year due mainly to the variable market conditions that NNPC was exposed to. As a result of the development, the corporation has saved over $565,066,320 since the inception of the swap arrangement four years ago.

    The document reads: “Under SWAP/Crude Exchange arrangement, NNPC allocates crude oil to reputable oil trading companies in exchange for the delivery of PMS, dual purpose kerosene (DPK) or any other petroleum product as may be required by Products and Pipeline Marketing Company (PPMC).

    “The contract is based on the international market value of the petroleum products against the prevailing International market value of the Crude Oil. This is value for value arrangement; crude oil lifted versus products supplied. The value for value philosophy enshrined in the SWAP contracts is validated and tested on a regular basis, when reconciliation meetings are held between NNPC and the trading companies.

    “Offshore Processing Arrangement (OPA/SWAP) arrangements enjoy presidential approval and their operations are governed by contractual agreement. Furthermore, the entire activities under OPA/SWAP were recently subjected to scrutiny by the House of Representatives Committee on Downstream with a verdict of clean bill of health returned.”

    The most common means of pricing petroleum products internationally is by Platts European Marketscan Oil Publication. NNPC procures petroleum products cargoes mainly on free on board (FOB) basis; as a result, the supplier provides all necessary logistics for loading and delivery of the product on behalf of NNPC. Therefore, the basic components that are taken into consideration in deciding the premium are as follows: freight, insurance, financing (letter of credit L/C administration charges), port dues, interest, demurrage, trader’s margin.

    The document also explained why the NNPC is continuing with kerosene subsidy despite claims by the Governor of Central Bank of Nigeria (CBN), Mallam Sanusi Lamido Sanusi of having evidence of presidential directive to its stoppage. The directive Sanusi refers to, according to the document, was not gazetted.

    It said: “Household kerosene (HHK) inclusive and the statutory provision remains un-amended. Such approval must be through the means of a Gazette, the Honourable Minister of Petroleum Resources cannot change prices of petroleum products without a Gazette. Meanwhile, the directive was that “public announcement of this measure should be avoided” in direct contravention of the provision of Section 6 of the Petroleum Act.

    “The directive on kerosene subsidy was never received in NNPC as posited by Mr. Sanusi. Rather the directive was communicated to the former Honourable Minister of Petroleum Resources – Dr Rilwan Lukman who could not communicate the directive to NNPC.

     

    “There was also an intervening factor, the House of Representative Resolution in July 2011 barred the Honourable Minister of Petroleum Resources from deregulating the price of HHK even with the best of intentions and directed an increase in volume of HHK for the market and the sale of HHK at N50 per litre.”

     

     

  • NIRP, NEDEP’ll unite public sector capacity, private sector expertise

    NIRP, NEDEP’ll unite public sector capacity, private sector expertise

    President Goodluck Jonathan’s unveiling of the nation’s industrial revolution plan and the National Enterprise Development Programme, are seen as the elixir needed to launch Nigeria on the path of sustainable development, reports, SIMEON EBULU,  

    Last week’s launch of Nigeria’s Industrial Revolution Plan (NIRP) and the National Enterprise Development Programme (NEDEP), underscored the Federal Government’s determination to actualise and expand, not only the nation’s industrial base, but also to provide employment for the citizenry and increase the consumptive capacity of Nigerians, especially of made-in-Nigeria products.

    The event which took place at the Banquet Hall, State House Abuja, was not just a launch, it was also meant to showcase the success story of the collaborative effort between the Bank of Industry (BoI) and the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) . It was the unveiling of a marriage sort-of, designed to match enterprise with funding and to churn-out visible products and services that can drive the economy and put the ordinary Nigerian back to work.

    NIRP and NEDEP, the Minister of Industry, Trade and Investment, Olusegun Aganga, said, is the door for the Small and Medium Enterprises sector, which he admitted is credited for providing about 75 per cent of the nation’s workforce.

    He said the average Nigerian is creative, intelligent, business savvy and most of all, enterprising, “that is why it is not surprising that the SME has about 17million companies, employing 32million people in this country which represents about 75 per cent of our workforce and contributes about 47 per cent of our Gross Domestic Product (GDP),” stressing that is the reason this sector cannot be ignored.”

    He said the SME sector, as important as it is, still faces challenges from a number of factors.

    He said NEDEP has been strategically designed to address the observed challenges in the SMEs’ segment by bringing together public sector capacity and private sector expertise to deliver the needed enterprise data bank.

    Jonathan who arrived the venue at about 9.45am to flag-off the event, took about 40minutes to move round the mini-fair arena to see first-hand, feel and touch the various products that were on display. They range from fabrics to plastic products, leather materials, machinery, cosmetics, arts and crafts and a wide-range of other items, including vehicles, produced by Innoson Motors, Nnewi in Anambra State.

    As the President, accompanied by the Vice President, Namadi Sambo, the Minister of Industry, Trade and Investment, Aganga, the Managing Director of the Bank of Industry, Ms. Evelyn Oputu, Ondo State Governor, Dr. Olusegun Mimiko, Minister of Finance and Coordinating of the Economy, Dr. Ngozi Okonjo-Iweala and Executive Director, BoI, Waheed Olagunju, was conducted from one stand to the other, he engaged the attendants and the manufacturers, touching and admiring the products and asking questions.

    His mien, beamed-live to the waiting audience in the banquet hall, showed that he was satisfied with what he saw, as he relished on entry into the banquet hall to the waiting arms of several dignitaries and senior government officials, amongst whom were the Secretary to the Government of the Federation, Chief Anyim Pius Anyim, President of the Manufacturers Association of Nigeria (MAN), Chief Kola Jamodu, President of Dangote Group, Alhaji Aliko Dangote, Chairman of Forte Oil, Femi Otedola, Founder and former Chief Executive Officer of Zenith Bank Plc, Jim Oviah, Chairman, Peoples Democratic Party, Adamu Mua’zu, the Governor of Anambra State, Peter Obi, his counterpart from Gombe State, Ibrahim Hassan Dankwambo and the Deputy Governor of Ogun State, Prince Segun Adesegun, who represented his Governor, Senator Ibikunle Amosun, amongst several others.

    Aganga, who took the first shot at the day’s event, left no one in doubt as to the necessity, as well as the urgency for Nigeria to industrialise. He said for years, the nation has frittered away many opportunities aimed at industrialisation, by merely focusing on export of raw materials. A continuation along that path, he warned, will lead to more poverty. He said Nigeria must diversify its economy, produce what it consumes, stressing that no nation survives on the basis of exporting its raw materials.

    “History shows that no country has ever become rich by exporting raw materials without also having an industrial sector, and in modern terms an advanced service sector. The more a country specialises in the production of raw materials only, the poorer it becomes,” he said, adding that industry implies National wealth. Aganga explained that the NIRP and NEDEP are both holistic and integrated, meaning that they are joined at the waist with other Ministries, Departments and Agencies (MDAs), adding that the NIRP and NEDEP adopt inclusive structures which bring in other government agencies and the private sector to ensure adequate policy synergy, urging operators of the Micro, Small and Medium Enterprises to form cooperatives for easy access to funding from BoI.

    Several messages of solidarity came in support of the initiative. Nigeria’s acknowledged biggest industrialist, Dangote, assured that the private sector will play its part in support of the government’s initiative. Obi, Mimiko, Dankwambo, Jamodu and Prince Adesegun, aligned with the federal government, saying that the NIRP and NEDEP are programmes in the right direction.

    A caste of three students from Jikwuoi International school, Abuja and a presentation by Nigeria’s Nollywood best added colour to the event. The youngsters urged people to save, so they could invest. In their words: “In the old days, the man who saves was a miser, but now, he is a wonder.”

    Done with the solidarity messages, Jonathan, walked up the podium to formally inaugurate the NIRP and NEDEP, saying the NIRP is the most ambitious and comprehensive road map that would transform the nation’s industrial landscape, boost skills development, enhance job creation and conserve foreign exchange.

    His words: “The NIRP is the flagship industrialisation programme ever embarked upon by this country. It will fast-track industrialisation, accelerate inclusive economic growth, job creation, transform Nigeria’s business environment and stop the drain on our foreign reserves caused by importing what we can produce in locally.

    “The Nigeria Industrial Revolution Plan is the most ambitious and comprehensive industrialisation programme because it is based on the areas where Nigeria has competitive and comparative advantage such as agriculture and agro-products, metals and solid minerals, oil and gas, construction and light manufacturing services. It has identified those sectors where Nigeria can be number one in Africa and top 10 globally.”

    He said NEDEP, would help reposition the MSME sector as the major driver of job creation and inclusive economic growth, adding that the Federal Government would continue to promote the patronage of made-in-Nigeria products through the implementation of its local patronage policies and programmes, adding that NEDEP is designed to develop and grow the Micro, Small and Medium Enterprises because all over the world, the MSMEs are primary drivers of employment. With the successful implementation of the National Enterprise Development Programme, Nigeria will attain her dream of inclusive economic growth.

     

  • UK firm, LAWMA collaborate on institutional capacity, recycling

    Lagos Waste Management Authority (LAWMA) and Knowledge Factory International United Kingdom (KFI) have signed a Memorandum of Understanding (MoU) to collaborate for purposes of knowledge transfer and wealth creation.

    The cooperation between the duo will aid capacity and technology deployment within the public and private sectors to establish an Africa centre of excellence on waste management, says LAWMA Managing Director, Mr. Ola Oresanya.

    He said the objective of the MoU is to establish the basis for the development of a collaborative- based knowledge transfer programme between both parties to bridge technology gaps and correct policy deficiencies in the waste management sector.

    He said the synergy will promote accelerated growth and sustainable development, promote long term trajectory of waste due to growth in population and industrialisation.

    In addition, the agreement will also facilitate international knowledge transfer and best practices through exchange visits and partnership between Nigeria’s waste management and professionals from Europe, America, Asia and other parts of Africa, he added.

    Chairman, KFI, Prof Chris Nwagboso said his organisation will act as host for capacity development programme in the country and Africa and will identify support programmes that will enhance the growth of the partnership besides organising workshops, seminars, conferences and performance improvement through knowledge transfer.

    Nwagboso also said his firm will assist LAWMA to access international funding to encourage recycling of materials, such tyres, pet bottles and bottles which are high foreign exchange earners.

    The KFI chairman said the country has been missing out in overseas grant on green technology and said with this strategic technology the country would be better for it.

    Funds, he said, would also be drawn from European Project Funding and Management Academy, United Kingdom to build capacity for LAWMA to benchmark with cities such as San Francisco, which has the best recycling facility globally and Mexico with a large population like Lagos.

    Oresanya added that these initiatives would serve as prelude to the planned Material Recovery Facility at Igando in Lagos, which will serve some West African cities such as Accra, Libreville, Freetown and parts of the country to not only create wealth but multiple opportunities for the medium and small scale enterprises (SMEs).

  • Why buildings collapse, by SON DG

    Director-General of the Standards Organisation of Nigeria (SON), Dr. Joseph Odumodu has attributed the incessant buildings collapse to the use of sub-standard products by builders. At an interactive session with reporters in Lagos, Odumodu said the agency’s field checks showed that many block moulders have no idea of the standards guiding their business, adding that the rate of buildings collapse in Nigeria in the last five years is more than the one recorded in the last 15 years.

    Odumodu said the agency’s business was the protection of lives and property, adding that SON is playing its role. “SON is fully playing its role in the country. Our business is to protect and safeguard the lives and property of Nigerians,” he said. He frowned at a situation where moulders literally mould sand with tint of cement and pass such as cement blocks and sell at low rates to make money. According to him, any block that is less than N200 is sub-standard.

    The DG of SON pointed out that some moulders use one bag of cement to make about 80 blocks, whereas a bag of cement should make between 25 and 30 blocks. “I have met with block moulders association and some of them confessed to me that they make substandard blocks. This is not acceptable. Some block moulders produce 80 blocks with a bag of cement. Some get up to 60. No building can stand with that kind of mixture. A bag of cement should produce between 25 and 30 blocks. Any block that is sold for less than N200 is a substandard block. But we discovered that some of the blocks are sold for N160,” he said.

    Explaining further, Odumodu said a cement of 32.5 grade is meant for plastering and block moulding, while that of 42.5 grade is for heavy concrete and building bridges. He said all cement manufacturers in Nigeria have met with the quality standard. On the possible discontinuation of the 32.5 grade, he said the issue will be left for the technical committee to look into, adding that a committee, which will not be chaired by SON, will soon be set up to look into it. He said the committee is made up of cement manufacturers, block moulders, consumers, civil society groups, and even the press.

    He pointed out that all the cement manufacturers in Nigeria are producing 32.5 grade, even when the Federal Government specified 42.5 for the importers.” All the cement companies in Nigeria are making use of the 32.5. At the time the Federal Government specified 42.5 for the importers, the Nigerian manufacturing companies are producing 32.5. Even companies that have been producing since independence are making 32.5,” he clarified.

    Odumodu however, pointed out that any company that wants to move from 32.5 to 42.5 is free to do so, provided there won’t be increase in the price of cement. “Of course there may be a change in the cost of production, but whether you are doing 32.5 or 42.5, you must maintain the same price. And the manufacturers have the responsibility to let the consumers know what they are buying. This is very important, “Odumodu said, adding that part of the measures to bring sanity in the industry is for block moulder to register with local associations.

    “Every block moulder must register with and belong to a local association. We want to hold people responsible. Every block moulder must have a registration number that his product must carry so that when a building collapses and we look at the blocks, we can invite the maker to give us some explanations.

    It is not just because SON wants it, but because it will serve the interest of everybody, “ he said.

    Recently, cement manufacturers in Nigeria had distanced themselves from claims that poor cement quality is responsible for the growing cases of building collapse in the country.

  • Chamber seeks more incentives for SMEs

    The Abuja Chamber of Commerce, Industry, Mines and Agriculture (ABUCCIMA) has called for “appropriate incentives’’ to encourage the development of small and medium enterprises (SMEs) in the country.

    ABUCCIMA President, Mr Solomon Nyagba, who made the call in Abuja at a news conference ahead of Nigeria’s Centenary Trade Fair, said the call became necessary in view of the critical role played by SMEs in the sustainable growth and development of the economy.

    “We commended the efforts of the present administration in transforming the economy. We still appeal that appropriate incentives should be put in place to further encourage the development of small and medium enterprise, adding that the request became imperative as SMEs are veritable tools that can be used to boost and improve the country’s economy.

    He urged the government at all levels to give priority to the development of the country’s infrastructure, especially in the road and power sectors to give businesses the needed leverage.

    SMEs contributed 46.54 per cent to the country’s Gross Domestic Product (GDP), according to a 2012 enterprise baseline survey.

    The survey was conducted by the Pro-poor Growth and Promotion Programme in collaboration with the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN).

    According to the survey, there are over 17million SMEs in the country as at the end of 2012, employing 32, 414, 884 persons.

    Nyagba said the Nigeria’s Centenary Trade Fair tagged, ‘Celebrating Creative Industrial Excellence in Production and Innovation through Unity in Diversity,’ is targeted mainly at made-in-Nigeria goods and services.

    “The fair is aimed at showcasing the huge strides Nigeria has made in the scientific, technological, industrial, manufacturing and innovation activities.

    He said it’s an avenue to showcase the vast and varied agricultural, mineral and other natural resources available in the country. It will equally provide a forum for business interactions, networking and match-making in order to consolidate on the tremendous achievements already recorded in the various sectors of the economy since Nigeria came into being, he stated.

    Nyagba said participation in the fair is expected from over 1,000 local and foreign exhibitors, including research institutes, government agencies, higher institutions and players in the manufacturing and other sectors of the economy.

     

  • Nigeria eyes N250b from cassava production

    The Federal Government’s efforts at cassava production appears to be on course.

    Apparently drawing from the success of the reforms in the cement and sugar sectors, cassava production has taken centre stage, with the Federal Government targeting an estimated N250 billion from cassava production yearly following the inauguration of the multi-million dollar Ethanol Plant in Igbesa, Ogun State, by Allied Atlantic Distillers Limited.

    It is believed to be the first cassava-based plant for the production of Extra Neutral Alcohol (ENA), otherwise known as ethanol, in Africa.

    The plant, a product of the backward integration policy of the government on cassava, is expected to supply raw materials not only to distillers, but also pharmaceutical companies and other related industries.

    Minister of Agriculture Dr. Adewunmi Adesina, hailed the initiative, describing it as “a record breaking event for the world’s largest producer of cassava and a testimony of the success of the Federal Government’s policy on cassava and sugar,”Adesina.

    He added: “Cassava is a commodity in focus with value addition in five points, including the confectionery and pharmaceutical sectors and a massive job creator.”

    On the government’s ultimate goal, he said: “Our goal is to add an additional 17 million metric tonnes (MT) of cassava to our domestic food supply. The Agricultural Transformation Action Plan hopes to create 1.3 million jobs across the cassava value chain. But producing more food is not enough, we must also ensure that there is enhanced food nutrition and health.”

    He lamented that despite being the largest producer of cassava globally, Nigeria has no place in the international market unlike Thailand, which controls 84 per cent of the global cassava market, even as the third largest producer.

    The result, he said, was the rapid growth of the economy of Thailand which unemployment rate is 0.4 per cent compared to Nigeria’s 24 per cent. Cassava exploitation expected to correct the inbalance in the Nigerian child’s nutrition.

    The United Nations Children’s Fund (UNICEF) reports that 43 per cent of children under five in Nigeria are stunted, a figure considered too high when compared to the 39 per cent for other developing countries; 26 per cent in Ghana; Benin, 25 per cent; 29 per cent in Botswana; Burkina Faso and Cameroon, 29 per cent each and  Kenya, 33 per cent.

    Nigeria will save the much needed foreign exchange from cassava exploitation since manufacturers can get ethanol locally.

    Adesina said Nigeria must accelerates policy measures to improve health and nutrition of vulnerable groups, especially women, infants and children. He emphasised the need to promote its use for assorted products, improve dietary diversity through home production of a diversity of foods.

    Adesina said: “The President has set a clear direction: we must eat what we produce, and produce what we eat. Mr. President eats cassava bread.

    “Our cassava flour policy is directed at replacing some of the wheat flour in bread, to save over N250 billion annually in wheat imports.

    “Our research institutes, International Institute of Tropical Agriculture (IITA), Federal Institute for Industrial Research(FIIRO), have produced cassava bread and we are proud of the achievement”.

    Minister of Commerce, Trade and Investment Dr. Olusegun Aganga, he said the inroad into the development of cassava would reduce the government’s importation of wheat, which costs about N635 billion yearly through a proportionate addition of cassava flour.

    About 40 per cent of well-processed High Quality Cassava Flour (HQCF), he said, would be added to wheat flour to achieve the Nigerian cassava bread initiative. This would reduce the importation of wheat by 40 per cent and save the country a lot deal in foreign exchange, he added.

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

  • Workers, residents raise the alarm over toxic waste dumping

    Workers, residents raise the alarm over toxic waste dumping

    Workers and residents of OPIC Estate in Agbara Industrial Complex of Ogun State have raised the alarm over the indiscriminate dumping of  industrial toxic waste and refuse in the area. They are calling on the government to come to their rescue.

    When The Nation visited the place, it was full of stench.

    The waste burning is worrisome because of the closeness to a gas pipeline.

    The site is just three or four metres away from the gas pipeline, raising fear about its danger to lives and properties.

    The Nation observed that from Igbesa to Badagry Expressway, there are several makeshift toxic waste dump sites for factories around the area.

    The dump sites have also become a den for social miscreants, who attack passersby and residents at night.

    Investigation by The Nation revealed that there is no fire fighting station in Agbara and environ.

    Although some  factories and wealthy individual have rudimentary fire-fighting equipment, the residents believe they may not be adequate if there is fire outbreak.

    Industry sources said investments in the area should be secured because they run into billions of naira.

    Some experts told The Nation that given the right incentives the complex may become one of the biggest industrial hubs in West Africa.

    One of the senior managers of a company in the area said there were some issues  that Governor Ibikunle Amosun should attend to so as to avert industrial waste hazard.

    The governor, the manager said, must tackle the  hardships faced by those who live and work in the area to facilitate trade and make the complex more attractive for business.

    “Residents and workers are slowly and quietly being exposed to danger because of the indiscriminate dumping and burning of industrial waste. Most of our workers have been treated for heart, lung  and skin diseases because of the indiscriminatelyburning of the dumps, which they inhale,” he said.

    The community near the Agbara sewage treatment plant also complained about “unhealthy odour” from the plant.

    The odour, the spokes man of the community, Mr Gabriel Ayoola, said is dangerous to them.

    The governor, Ayoola said, needs to direct the Ministry of Environment to liaise with the estate management to ensure compliance with rules and regulations to ensure the villagers’ safety.

  • Govt seeks partnership to revitalise Ajaokuta

    Govt seeks partnership to revitalise Ajaokuta

    The Minister of Mines and Steel Development, Mr Musa Sada, as called for collaboration between investors and the Federal Government to develop the Ajaokuta Steel Mill.

    A statement from the ministry in Abuja  said the collaboration would boost the country’s economic development.The minister, who was represented by the Permanent Secretary in the ministry, Mr John Jegede, made the appeal when he visited the company.It said the government planned alternative ways to fund the completion of the company so that it could begin operation.

    It said the plant was crucial to the realisation of the transformation agenda of the government as it would contribute to industrial growth and job creation.

    “The Federal Government and the ministry are looking for alternative ways of funding the completion of the steel plant as it is the bedrock of the nation’s industrialisation.“We have signed a memorandum of understanding to complete some segments of the project and those that were not working before are now functioning,’’ the statement quoted the minister as saying.

    It said he commended the company’s workers for their efforts in making the plant viable in spite of its long abandonment.It said the minister also urged the management of the company to come up with concepts that could encourage the signing of more memoranda to revitalise the plant.The statement said Sada also visited the National Iron Ore Mining Company, Itakpe, one of the corporations under the ministry where he said the government was determined to utilise the company to its full capacity.

    It quoted the Sole Administrator of the Ajaokuta Steel Mill, Mr Joseph Onobere, as saying that the plant would put the country on the path of industrialisation if completed.

  • Our fears for real sector, by LCCI, MAN chiefs

    Our fears for real sector, by LCCI, MAN chiefs

    WHAT will the real sector look like in 2014? This puzzle appears a hard nut to crack, even among members of the organised private sector (OPS)

    Some believe that despite the challenges, the sector is high this year, others insist that the challenges facing the sector are multiple and would be difficult to overcome.

    The optimists are encouraged by the forecast of the International Monetary Fund (IMF) that the Gross Domestic Product growth will experience a 7.4 per cent growth this year up from the 6.2 per cent recorded last year because of increased domestic consumption.

    The Director-General, Lagos Chamber of Commerce and Industry (LCCI), Mr. Muda Yusuf, said the cost of doing business may not be lower this year as there are no indicators to that effect. He said at 30 per cent interest rate, companies cannot be expected to make good profit, especially with the influx of fake and sub standard goods into the country from the Asian countries.

    Yusuf said: “Public sector-related transaction is high risk in a political year because it is contract driven. It is not easy to get redress in our courts so the advice to investors this year is to determine the risk of every business by going to great length to know its impacts and probability.”

    He called on the government to encourage local entrepreneurs by fixing the power sector and roads and make funds accessible to Small and Medium Scale Enterprises (SMEs).

    LCCI President, Alhaji Remi Bello, said if the government continues with its reforms and initiative in cassava, sugar and rice sub-sectors, the economy will do better than last year.

    He said:“The fundamental challenges of weak competitiveness and low productivity would likely persist, especially with a federal budget structure that is heavily tilted towards recurrent spending.

    “From our studies and analysis as an advocacy group, we discovered that manufacturers will probably have the challenge of high energy cost, high interest rates, which is about 20 per cent and above in addition to the myriad of regulatory agencies that make different demands on them.

    “Smuggling and under-invoicing of imports and many more are daily challenges to manufacturers, nationals and other conglomerates in the sector may have the resilience to cope, but for most manufacturing SMEs, it is a nightmare.

    “The business environment is generally not conducive for manufacturing enterprise, which is why the risk of industrial investment is high and continues to get higher. The various policy interventions have not had the desired impact on the sector. Unless there is an effective and sustained protection and support for the sector, it is difficult for any significant progress to be achieved in this regard.”

    The National Vice-President of the Nigerian Association of Small Scale Industrialists, Chief Duro Kuteyi, said the sector can only grow if the practice of charging fixed electricity charges to small scale industrialist is discontinued. He decried the impact of the high electricity charge of N186,000 compared to actual usage of about N50,000 and called for a proper billing system where industrialists are made to pay for what they use.

    He asked the government to do more for the agricultural sector by injecting the process of preservation of crops and adding quality value to agricultural produce to assist farmers to meet the international quality needed to encourage export.

    Acting Director-General, Manufacturers Association of Nigeria Mr. Rasheed Adegbenro said the fact that 2013 was ending on a positive note for manufacturers and other stakeholders in the real sector was a pointer to an upward growth in the coming year.

    According to him, those in the sector are not expecting too many challenges, especially with the reduction in the figure of unplanned inventory, which he said was a major problem to manufacturers.

    “In the first half of 2013, unplanned inventory was N21.75billion, while the figure we had in the same period in 2012 was N32.83billion; so, you could see an improvement,” he said. He stressed the fact that manufacturers were optimistic about the sector in the current year due to noticeable improvements in specific areas.

    A chartered tax practitioner Mr. Chukwuemeka Eze said from the previous outlook in 2013 where doing business was tough due to infrastructure deficit, epileptic energy sector and high interest rate, there is no indication that these elements have changed and if that be the case the position may not be too different from last years.

    The manufacturing sub-sector currently contributes less than five per cent to the GDP, a situation which has remained consistent in the last 10 years and is reflected in the inability of the sector to create adequate jobs.