The Nation Newspaper

Category: Industry

  • LCCI: cut corporate taxes for firms

    How is the economy doing? It is faring well, says the Lagos Chamber of Commerce and Industry (LCCI).

    LCCI Chairman Goodie Ibru told The Nation that the macroeconomic fundamentals of the economy are promising.

    He said the second quarter Gross Domestic Product (GDP) dropped from 6.56 per cent in the first quarter to 6.18 per cent, like the Central Bank of Nigeria (CBN), noting that this is the fifth consecutive quarter of the GDP growth below seven per cent.

    The 6.18 per cent falls below the 6.55 per cent growth forecast by the National Bureau of Statistics (NBS) for the quarter.

    The decline, Ibru said, followed a decline in oil production to 1.88 million barrels daily (mbpd) below the budget benchmark of 2.54 mbpd. He hailed the agricultural sector for lifting 4.52 per cent growth mark, surpassing the 4.14 per cent of the first quarter.

    He said: “It was the highest growth performance of the sector in the last seven quarters suggesting a positive impact of the on-going agriculturaltransformation programme of the government.”

    To avoid the “total” collapse of the manufacturing sector, he said, some immediate policy responses were imperative. Ibru recommended that corporate taxes be reduced from the current 30 per cent to 15 per cent for manufacturers.

    He also demanded the scrapping of import duty on raw materials, machinery and other vital input for manufacturing; Value Added Tax on raw materials and machinery, generous tax allowances on infrastructure related expenditures and strong anti-dumping measures to protect local industry.

    These measures, he said, were essential for the manufacturers to remain in business under the proposed Common Economic Tariff (CET) regime.

    Ibru said LCCI was concerned about the dollarisation of the naira and the need to redress it.

    According to him, the naira suffered significant depreciation in the parallel market on the back of the new policy as the dollar sold for between N166 and N168. The parallel market premium also widened considerably. These conditions have potentially distortionary effects on the economy with consequences.

    He said the CET recently approved by the Economic Community of West African States (ECOWAS) Council of State would advance the economic integration of the West African sub-region.

    It is a move intended to improve the collective well-being of the citizens of the sub-region and promote the development of the various economies, he said, adding that the highlights of the policy regime include scrapping of import prohibition list, export prohibition list, abrogation of import duty waivers and the loss of sovereign authority on tariff policy.

    The downside of the policy, he said, was huge, noting that the implications for the economy, particularly the manufacturing sector will be profound.

  • Used cars not banned under auto policy, says govt

    The Federal Government is committed to the implementation of the new automotive policy, according to the National Automative Council (NAC).

    Speaking when he led members of the board on a tour of the National Trucks Manufacturers (NTM) Limited, in Kano, he said the administration was ready to revitalise the auto industry, adding: “That is why it put in place the policy.”

    Through the policy the government intends to reduce the high vehicle importation bill, which stood at $3.4 billion (N550 billion) in 2012, “a transformed automotive industry will realise its potential as a major driver of economic growth, job creation, local value addition and technology acquisition,” he said.

    Saleh said importation of used cars was not banned under the policy, explaining that the government only directed that all vehicles purchased by its agencies should be from the local assembly plants unless they are specialised in nature.

    In that case, Saleh said the NAC must certify that such vehicles were not produced in the country.

    He said under the policy three automotive clusters would be established in the country; the metal and steel sector is be revived and the tyre manufacturing industry would support it.

    NTM Managing Director, Mr Ibrahim Bayero, said the policy should be implemented for the sector growth.

    Bayero, represented by the Company Secretary, Dr Samuel Itabiyi, urged the government to mandate the government to patronise local assembly plants.

    He said the government should guide against policy failure, which is a major factor militating against the auto industry.

    Bayero appealed that loans would be given to manufacturers at single digit rates, adding that the age limit of imported second hand vehicles should be reviewed.

  • Osun, Ogun, Akwa Ibom, others drive SMEs to grow economy

    Many state governments have made appreciable strides in the development of Small and Medium Scale Enterprises (SMEs). They have not only engaged in capacity building, but also provided funds and an enabling environment for them to thrive. Some of the SMEs, which were at the just concluded Lagos International Fair, acknowledged the efforts of their state governments but asked for more, especially in capacity building and funding, reports OKWY IROEGBU-CHIKEZIE.

    Most state governments seem to have come to the conclusion that Small and Medium Scale Enterprises (SMEs) are key to the economic growth of their states.

    They came to the just-concluded Lagos International Trade Fair to showcase their SMEs activities.

    For instance, the Commissioner for Commerce, Industry, Cooperatives and Empowerment, Ismaila Adekunle Jayeoba-Alagbada, told The Nation at the Fair, that the government has established four departments in the state Micro-Credit Agency for traders, artisans, agriculture and administration.

    He said the government has also acquired 35 hectares of land to establish an academy for training unemployed youths.

    He said the importance the government puts on reliable data for economic planning made it to embark on biometric registration of artisans and tradesmen.

    To assist the SMEs to maintain standards and quality in manufactured products and to help buyers have value for their money, the government, he said, would soon launch standard weights and measures in all markets.

    Jayeoba-Alagbada said the industrial sector was receiving a boost as the state is promoting industrilisation which has attracted private industrial investment to the state with the establishment of the Omoluabi Garment Factory, which, he said, had started production.

    He said: “A Business Support Centre has been established in the state capital in collaboration with the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN). The core activities of the centre are the enhancement of the capacity of operators of Micro, Small and Medium Enterprises and entrepreneurial development of unemployed graduates and youths in general. This is sequel to the development of industrial estates across the state.”

    He revealed that the Osogbo Industrial Estate has been developed and allocated to entrepreneurs, saying the Ilesa Industrial Estate has adequate infrastructure. Plots in the estate are being allocated to industrialists while the development of industrial estates in seven other locations across the state is in the pipeline, he added.

    On the government’s assistance to the SMEs, the Commissioner said the state government, in collaboration with the Bank of Industry (BoI), under the OSSG-BoI (MSME) Fund, provides financial support to cooperatives, industrial investors and operators of MSMEs.

    He also said the industrialists have been supported with N445,878,000. Due to the importance the government places on SMEs’ clusters as a means of growth, he said the government has organised them into cooperatives.

    He said: “The people have keyed into this mode of support as 10,509 cooperative societies have registered so far.”

    Jayeoba-Alagbada, said the state government has adopted a holistic measure to ensure effective service delivery and partner private investors for power generation from waste. This is in addition to the on-going construction of an international cargo airport in Egbedore Local Government Area.

    In commerce, he said the state has embarked on massive market development; construction has reached an advanced stage on two international markets – the Ayegbaju and Aje markets in Osogbo, the state capital and Ido-osun in Egbdore Local Government Area.

    He said there were plans to establish an international market in Ikurin, the headquarters of Ifelodun Local Government Area.

    However, the Chairman, Nigeria Association of Small and Medium Enterprises (NASME), Mr Ali Alabi, said a lot still needed to be done, adding that most of his colleagues still have challenges in finance, power supply and succession.

    He urged the government to study the Chinese model of supporting SMEs which is based on the Hand Holding Concept.

    Alasbi said while in China the government makes provision for new businesses, it is not so either in Osun or the country. He called for a policy that would resustitate SMEs that have collapsed, noting that this was the only way the economy could grow. The Asian economy grew through the SMEs because of the government’s policy to support them, he added.

    Alabi maintained that the government could also learn from India where every big firm is made to nurture 10 SMEs in its catchment area until they mature.

    The NASME chief further revealed that the government policy’s in India also favours the patronage of small companies against conglomerates as they help sustain their growth by paying higher for their services and products.

    He argued that until government embarks on such deliberate policies the SMEs will continue to struggle for survival.

    Alabi canvassed capacity building for SMEs. This, he said includes learning new skills, marketing, book-keeping, management and also succession plan, noting that several small businesses have gone under because of the poor knowledge of management skills.

    Managing Director, Dusco-Designers International, Mrs Olufunmilayo Ige, a manufacturer of hand bags, shoes and jewelry from Aso-oke and Ankara fabrics, said the state government still had a lot to do in making affordable finance available for SMEs. She decried the problems she and her colleagues face to access fund.

    She said she was in need of finance to get industrial machines, but could not get it.

    Another entrepreneur and Curator of Genesis Arts Gallery, Mr Adeyinka Fabayo, also asked for financial assistance from the government to purchase some capital-intensive machines, urging the government not to leave them in limbo.

    Another entrepreneur, Mrs Iyabo Oyebamiji, who produces fabrics, also asked for funding to keep her business afloat. She said with enough capital, she and her colleagues could assist the government to create the much-needed employment for its teeming youths.

    Also, Ogun State Governor, Senator Ibukunle Amosun reiterated his commitment to create an enabling environment for trade and commerce to thrive in the state.

    Amosun, who was represented by the Deputy Governor, Prince Segun Adesegun, at the trade fair, said the administration would continue to act as a catalyst for economic activities for SMEs. He explained that the state government had put together an economic reform agenda aimed at correcting the structural weaknesses within the system and establishing an enduring framework for economic growth.

    He promised to lay a solid foundation for a vibrant, research- driven mechanised farming and technologically-induced agro-based industry goals.

    In his keynote address, the state Commissioner for Commerce and Industry, Otunba Abimbola Ashiru, said the state government had concluded plans to set up cluster farm settlements, where producers, processors and other stakeholders in the food chain would be localised in different regions of the state to ensure cost-effectiveness, accessibility, visibility and synergy.

    He said the administration was developing a relationship among ministries, departments and agencies of government towards evolving a holistic and integrated response that would guarantee sustainable progress and development.

    Akwa Ibom State Governor, Godswill Akpabio, said he has instituted sectorial linkages for the economic development of the state.

    He said at the Fair, “at present, modalities are being worked out to ensure that quality goods and services that meet International Standards Organisation (ISO) standards are produced in the state.

    “This is an assured way of making our economy vibrant and sustainable to help boost the state’s economy and also ensure favourably in the international market.”

    Akpabio, who was represented by the Commissioner for Commerce and Industry, Mr Ufot Tobby Nkangude, harped on the need to harness the economic potential of his state and the country for development.

    He said indigenous participation served as channels through which economic could be transformed to enhance the welfare of citizens.

    He encouraged the exhibitors to compare notes with others and to start doing something irrespective of the size of their businesses today noting that government is poised to support them in material ways necessary.

    The state stand had exhibitors who displayed cooking ingredients, such as ground crayfish, palm oil, groundnut oil, furniture and art works.

    Others were detergents, handmade bags with local fabrics and locally, made blending machines.

    One of the exhibitors at Akwa Ibom stand and Managing Director of Jekon Integrated Farms Nig. Ltd., Mr Godswealth Henry, producers of RIV Pam Red Palm Oil, said his outing was impressive.

    “I am happy to be at the Lagos Trade Fair. The idea of the Akwa Ibom Ministry of Commerce bringing us to participate is being achieved and we commend our state governemnt for their support to the SMEs.

    “We are into edibles, that is, adding value to farm products so that it meets international standards for export.

    “Our presence at the fair is to get investors in Lagos to be able to evaluate the acceptance of the product when we start exporting them,” he said.

  • Exhibitors hail Fed Govt

    Exhibitors hail Fed Govt

    Some foreign exhibitors at the ongoing Lagos International Trade fair have praise the Federal Government for its economic policies.The exhibitors, who spoke with The Nation, said the policies improved trade relations between Nigeria and foreign countries.

    International Sales Manager, Decrin Group, a Turkish company Mr Bahri Ekrem, said that taxes and duties on imported goods were pocket-friendly.“Some countries frustrate businessmen with high tariffs, making profit-making a difficult thing. I have been importing clothes into Nigeria for about four years. Nigeria is a business-friendly country where entrepreneurs can break-even within a short period,” he said.

    Trade Promotions Executive, Ferrox Limited, Ghana, Miss Paula Mensah, said that Small and Medium Enterprises (SMEs) in Nigeria had the capacity to grow into large industries.“There are so many SME operators at this fair and it suggests that they are enjoying government’s support that is making them to thrive,with that kind of support. They can transform the Nigerian economy in a few years time,” she said. Mr Ahmed Al-Majeed, an Egyptian dealer in interior decorations, expressed optimism that he could invest in Nigeria in future. He said that he was being encouraged by Nigerian businessmen at the ongoing trade fair.

  • How CBN’s policy is killing real sector

    How CBN’s policy is killing real sector

    •Sanusi: it’s not true

    The Central Bank of Nigeria (CBN) has drawn the flak for its monetary policy, which some say is stunting real sector’s growth.

    The policy, according to an industrialist, Henry Boyo, supports “relentless substitution of monthly naira allocations for dollar-derived revenue”.

    This , he said, created a “continuous supply of naira, which provides to banks excess cash that is also not loanable to manufacturers as banks find them unattractive.”

    Boyo spoke at a symposium organised by the Lagos Chamber of Commerce & Industry (LCCI) in Lagos, titled “Nigeria’s Monetary policy and its impact on industrial Growth.”

    The Managing Director of Abel Sell Limited criticised the CBN for creating what he called ”excess liquidity or surplus cash on one hand only to turn around to say there is no money to lend to the manufacturing sector in the much touted monetary policy”.

    Boyo said: “CBN is encouraging unemployment because of its contractual policy, which makes it to leave its money in the banks and go back to borrow from the same banks at very high rate which heighten the cost of fund for the manufacturing sector.”

    Boyo queried why government must borrow its money back especially when it is not putting it into the real sector that will grow the economy.

    He argued that the apex bank from several of her policies have shown that it is not positioned to help the manufacturing sector.

    According to him, one can safely say that the CBN is devaluing the Naira and in no way helping the manufacturing sector to grow as companies close shop preferring to import finished goods because they come cheaper.

    He also criticised the Asset Management Corporation of Nigeria (AMCON) which buys bad debt from banks but in no way to help the real sector.

    The excess liquidity indirectly created by CBN through the conversion of dollar to naira, he said, is creating bottlenecks in the growth of the economy and should be jettisioned as a bad policy.

    Excess liquidity, he said, had adverse effects including rising rate of inflation, reduced purchasing power of incomes, high interest rate, low capacity utilisation and high cost of funds.

    Others he listed are the collapsing industrial base, high level of unemployment, depreciating currency, capital flight, continuous horrendous supply of naira, which provides excess cash supply to banks and increasing national debt burden, he added.

    To deal with the excess liquidity challenge , he said, it requires innovative approaches, which include the creation of new money and boosting the naira value in the foreign exchange market.

    CBN Governor, Mallam Sanusi Lamido Sanusi who spoke on “Nigeria’s monetary policy and its impact on Industrialisation,” said the performance of the manufacturing sector has fallen below expectation.

    The abysmal performance of the sector, he said remained a source of worry for both the CBN and the Federal Government.

    The growth of any nation, he said, depended on its manufacturing sector, which creates jobs and wealth.

    He debunked Boyo’s claim that the sector was not growing because of lack of access to credit, noting that though some banks are wary of some manufacturing sub-sector firms, they lend to those that are low risk.

    Sanusi, who was represented by the CBN Director, Research Department, Mr. Charles Mordi said no apex bank could manage both the interest and exchange rate at the same time.

    At best, what the bank can do is to manage one and leave the other to the vagaries of the market to determine the parameters of the economic indices.

    History, he said, has shown that any country coming out of a financial crisis has to contend with the challenges of access to credit for its manufacturing sector as banks are wary to lend, citing United States of America and Europe. “Credit control is always tight for any country coming out from financial crises, Nigeria is not an exception. Our private sector is high risk, so banks shy away from lending to them though we do not support such ,” he said.

    He denied that the CBN policy was inimical to the growth of the manufacturing sector, saying the gain of the sector was eroded by the global financial crisis.

    Sanusi said the apex bank had given N200 billion to the Micro, Small and Medium Enterprises (MSMEs) to thrive. He canvassed the establishment of value chain in the manufacturing sector to discourage dependence on imports. He regretted that this is one country that produces cotton and tomatoes but imports textile and tomato puree from China.

  • Don canvasses establishment of rubber manufacturing industries

    A lecturer, Prof. Sunday Ogunniyi, has called on the  Federal Government to establish rubber manufacturing industries in areas with large quantity of natural rubber and carbon black in the country.

    Oguniyi, a lecturer in the Department of Chemical Engineering, University of Ilorin, made the call in Ilorin.

    He said that since Nigeria was a major producer of natural rubber and carbon black, the country ought to be a leading manufacturer of rubber in the world.

    He recalled that Dunlop and Michelin, two leading tyre manufacturing companies in the world, were formerly leading producers of rubber and tyre in Nigeria.

    The professor expressed regrets that the two companies had wound up their operations in Nigeria and relocated to neighbouring countries due to dearth of back-up infrastructure.

    “The government must help to redress the situation by improving the supply of electricity in the country.

    “The government should also do everything possible to bring back these companies and even encourage new ones to start operation in the country,” he said.

    Ogunniyi decried the importation of second-hand tyres into the country, saying, “they constitute environmental nuisance’’

  • ‘Women entrepreneurs can overcome business challenges’

    Gender issues and challenges facing businesses run by women were highlighted at a seminar in Lagos last Friday. Organised by the Lagos Chamber of Commerce and Industry (LCCI), the seminar centred on financial literacy and cash flow management for women entrepreneurs. OKWY IROEGBU-CHIKEZIE was there.

    Women are regarded as good financial managers but this quality has not convinced bank managers to offer them credit facilities to run their businesses. Statistics show that there are more women-operated businesses than those managed by their male counterparts. Besides, women entrepreneurs are believed to be more resourceful, despite the odds.

    Women are often known to have natural abilities that are useful in managing businesses. They tend to be great networkers, in addition to having inherent skills for negotiating, and multi-talented.

    These were the observations of the Executive Director, Rely Supply Limited, Mrs. Fayo Williams and the Project Manager, Credit Awareness, a financial services company, Ms Nneka Eneli. The duo were the facilitators at the seminar on capacity building/ financial literacy of the Committee of Women Leaders of the Lagos Chamber of Commerce and Industry (LCCI) last Friday.

    Venue was the Chamber House on Idowu Taylor, Victoria Island, Lagos.

    Speaking on “How to access Finance to Grow your Business,” Mrs. Williams said access to finance meant more than borrowing fund. She said access to affordable finance was a big challenge all over the world, singling out small businesses owned by women as having serious problems convincing bank managers to give them money without collaterals.

    Mrs. Williams urged women to look inward for the funding of their business, saying they should not always believe that what they entirely need to grow their business is external funding. She urged them to work on expanding their outlook and customer bases; diversify and block all avenues of leakages.

    She advised them to ensure that they establish internal controls, as well as leverage on technology, stating that due to the peculiar financing challenges faced by women entrepreneurs, they should leverage on opportunities that abound in leasing, friends, families and venture capital to raise funds. She added that they should ask their customers for advance payment. She said women should be realistic in their business concept and network, in addition to seeking professional advice. They should keep good records while making their businesses scalable, Mrs. Williams said.

    On ‘Cash-flow management for women entrepreneurs and common financial management issues, Ms Eneli said though women were intuitive cash managers, they are faced with several challenges. She said for women to be good entrepreneurs, there is a need for them to be cash-literate as ‘cash is king.’ She stressed that they should separate business receipts from personal cash.

    Her words: “Track your cash in-and-out, put yourself on a salary, plan extensively before getting involved in any transaction. Keep records, learn how to save and borrow responsively, communicate, mind your cash flow, delay your repayment as long as you can, and aggressively pursue your debtors.”

    Others are to manage your cost, be disciplined in buying unbudgeted things, such as clothes and accessories for parties. “Sell-off things about to expire in your shop, and convert them to cash and be careful not to divert your business fund into personal use, no matter the pressure.”

    She said if women entrepreneurs can do this business intelligence, they would not only save enough to invest in their business, but would be able to convince the banks to lend them money if their books are clean and transparent enough.

    Chairperson of the LCCI Committee of Women leaders Mrs. Agnes Shobajo said the chamber was poised to encourage more women entrepreneurs to do it right and access available finance from government and donor agencies for small scale entrepreneurs .

    She said the chamber runs various workshops to train women entrepreneurs to come up with effective business plans, have regulatory requirement for the choice of business and to always work within their budget.

    Earlier in his opening remarks, LCCI President Goodie Ibru said African women represent a crop of huge untapped potential as emerging business leaders, managers, corporate decision makers and excellent entrepreneurs. He said the role of women in any economy is very critical, which calls for a continuous building of their capacity in all spheres of life.

    He said:“The impact of such enhancements is naturally far reaching by virtue of the various interfaces of women within the household and the economy as a whole. As a country we have made impressive progress in affirmative action. Presently, the number of women appointees in the Nigerian cabinet is about 31 per cent of the 42 member-cabinet with several others holding influential positions in the present dispensation including the Chief Justice of the Federation, Mrs. Alaoma Mukhtar the Coordinating Minister of the economy, Dr. Ngozi Okonjo-Iweala with five Nigerian commercial banks having female CEO.”

    Ibru said areas that education would be made to assist women are in education, finance, health and trade. He underscored the importance of women in the development of the nation and their roles in corporate and household management as crucial to economic development. He stressed that if they are supported to run their businesses the nation would be better for it.

  • ‘Multinational firms cause loss of $1b weekly’

    Africa loses about $1 billion every week through illicit financial flows out of the continent, and chiefly through transactions by multinational companies, an African Union (AU) agency has said.

    The New Partnership for Africa’s Development (NEPAD), an AU policy wing, said in a statement that the world’s poorest region lost 900 billion dollars in the illegal financial flows between 1970 and 2008.

    Commercial transactions by multinationals accounted for 60 per cent of the unlawful flows, followed by criminal activities such as trade in drugs, weapons and people at 35 per cent while bribery and embezzlement made up five per cent.

    Channels for the illegal flows were trade mispricing, investment-related transactions and offshore tax havens, a report commissioned by NEPAD and the UN’s Economic Commission for Africa said.

    For example, a company or official could say a piece of imported equipment costs 100 million dollars when in fact it was exported with an $80 million price tag, NEPAD said in the statement.

    The difference can be discreetly deposited in an offshore bank account.

    “The development impact of these illicit flows has resulted in loss of tax revenues, damage to economic potential and weakening of governance,’’ it said.

    A report by the African Development Bank earlier this year also showed that Africa was a net creditor to the world through illegal outflows worth between $597 billion and $1.4 trillion in the three decades to 2009.

  • Cross River, group sign MoU on 10,000 jobs

    The Cross River Government has signed a Memorandum of understanding (MoU) with the Youth Empowerment and Social Support Organisation, to empower 10,000 youths in the state.

    The Head, Department of International Donor Support in the state, Mr Roy Ndoma-Egba, made this known in Calabar.

    Ndoma-Egba, who is also the Special Adviser to Governor Liyel Imoke on Foreign Aides, said the gesture would take the unemployed off the streets.

    He said the department was collaborating with relevant government agencies to have a single registration system to capture the data of potential job-seekers.

    “We will have a central data system where we can categorise each applicant on the basis of qualification, need and catchments.

    “Some will be placed under the Conditional Cash Transfer scheme of the State Government and others will be provided with paid employment.

    “We are trying to ensure that every unemployed Cross Riverian fits into the programme. We are targeting about 10,000 youths.’’

    The Special Adviser said the programme would involve unemployed youths in rural and urban areas.

    He assured that the selection process for the beneficiaries would be transparent and that the distribution would also be equitable.

    Ndoma-Egba said the state was working hard to achieve the Millennium Development Goals (MDGs) targets in 2015.

    He said 16 of the 18 Local Government Areas in the state had been provided with potable water through the Sector Wide Approach programme.

    “We can confidently say that before the end of this year all the 18 Local Government Councils will be linked with the portable water supply project.

    “This will reduce water borne diseases across the state to the barest minimum,” Ndoma-Egba added.

    According to him, some of the challenges facing the achievement of the MDGs in the state are a lack of prompt payment of counterpart funds as well as staff capacity and skills.

    He said, however, that the government had been trying to address the problems.

    “The truth of the matter is that Cross River will achieve some of the MDGs, if not all. We will achieve the targets in education, water, health and gender,” he said.

  • Alaba traders: SON can’t achieve goal without us

    The Director-General, Standards Organisation of Nigeria (SON), Mr Joseph Odumodu, was at the Alaba International Market, Ojo, Lagos, last week to access the agency’s efforts to rid the market of substandard goods, OKWY IROEGBU-CHIKEZIE reports

    In futherance of the fight against substandard goods, especially electrical materials at the Alaba International Market, the Standards Organisation of Nigeria (SON) Director-General, Mr Joseph Odumodu, visited the market last week.

    He reiterated that the agency was poised to rid it of substandard goods at all cost. Odumodu reminded the traders that the two years timeline to stop importation of fake and substandard goods would expire at the end of the month, after which the agency would move in and clean the market forcefully.

    Admitting the prevalence of substandard produts, especially electrical appliances such as bulbs in the market, importers and traders said efforts by the organisation to rid the market of the goods may not succeed without the dealers cooperation.

    They said it may not be easy to stop some of them from importing substandard products, especially cables and other materials, because many get away with importing cheap and substandard materials.

    They argued that those who abide by the rule are run out of business because of unhealthy competition from cheap products from some Asian countries. They also alleged that manufacturers deceive them by freighting different products from what they ordered, urging the government to help them recover their monies from such overseas manufacturers.

    A member of the Electrical Dealers Association of Nigeria (EDAN) in Alaba and Managing Director, Joason Nig Limited, Mr. Joseph Nnaukwu, said no importer can import original goods and make it because it will be difficult to sell due to unhealthy price competition from substandard goods in the market.

    Another importer, Mr. Kenneth Ezenwa, accused the Standards Organisation of Nigeria (SON) of not collaborating with other relevant agencies to curb the importation of substandard goods, thereby robbing genuine importers of their profit as they cannot compete with cheaper alternatives in the market.

    Mr. Matthew Echezonachukwu Izuorah, who is also an importer, said eradication of substandard goods can only be achieved through customer awareness.

    Mr. Okey Eze, an importer of bulbs and other materials, asked for time to enable them dispose some of the substandard products they have imported. He also frowned at what he called the high cost of registration of goods by SON which is a disincentive to genuine importers as it adds to the cost of doing business. He cautioned that the government cannot enforce it without the full cooperation of the traders who understand the terrain.

    Mr. Ikechukwu Idife said importers and traders need to make more money as they provide all the needed infrastructure themselves. He said: “Since government has failed us and our businesses in terms of soft loans and the needed infrastructure, we have no other choice than to help ourselves and our families. Government cannot stop us from importing substandard goods except they do what they are supposed to do. We are only doing a self-help project for ourselves.”

    Speaking further, Odumodu said there was no good reason to allow importers of life endangering products, such as cables and other electrical products, to continue to bring in items that are substandard, especially as they have been given a period of grace in the last two years to rid the market of such products.

    On recovering their monies from overseas partners who dupe them by exporting substandard goods to them, even when they have paid for genuine goods, he said government can only intervene if the business was transacted formally through a letter of credit which can be traced.

    On the high cost of product registration, he promised that the cost would be reduced to encourage more people to register their products to avoid adulteration, warning that all unregistered products would be taken out of the market by the end of the month.

    SON Head, Electrical/Electronics Laboratory Mr. Richards Adewunmi, an engineer, said the market was saturated with various grade of substandard electrical products and by extension endangers the lives of the people. He regretted that the copper standard for bulbs is supposed to be about 99.9 per cent but some importers import bulbs with less than 40 per cent.