The Nation Newspaper

Category: Industry

  • BOI pledges support to Nigerians in Diaspora

    The Bank of Industry (BoI) will support Nigerians in the Diaspora to invest in the manufacturing sector.

    Its Principal Manager, Strategic Planning, Mrs Betty Obaseki, has said. Speaking at a capacity building workshop for Micro, Small and Medium Enterprises (MSMEs) in Abuja, she said the bank was considering setting up a special desk in Lagos and Abuja to attend to the needs of such Nigerians.

    The workshop was organised by the Ministry of Industry, Trade and Investment as part of activities to mark the 2013 Diaspora week.

    “We are considering setting up a special desk in collaboration with the ministry to attend to the needs of Nigerians in the Diaspora,’’ Obaseki said.

    She, however, said that “the same products would be made available to Nigerians in the Diaspora and those at home.

    “There will be no special consideration because we have a dedicated desk to meet their needs.’’

    The manager said banks had shifted focus from funding large entrepreneurs to small and medium entrepreneurs to enhance the growth and development of the economy

    Mrs Obaseki said the bank was mostly interested in funding equipment and machinery for production and not trading, noting that “trading does not add significant value to the economy’’.

    According to her, the bank encourages initiatives that transform raw materials to finished products.

    She said the best way to grow and develop African and Nigerian economy was to add value to their natural resources rather than export them as raw materials.

    “So, to ensure growth in the African and Nigerian economies, we have to strengthen our entrepreneurs to enable them to transform our natural resources to the finished products.

    “We need to know the area where we have comparative advantage; this is what we try to encourage in the BOI.

    “We are looking to fund Nigerian entrepreneurs; we don’t want to fund foreigners, though this does not rule out the funding of foreign companies,’’ he added.

    However, such foreign companies must have a minimum of 30 per cent Nigerian ownership before it could qualify to access the fund.’’

    She assured the participants that they need not know anyone to access the bank’s loan: “we are happy to be here to partner with you and you don’t need to know anybody before getting the loan,’’ she said.

    Director of Operation, Standards Organisation of Nigeria (SON) Mr John Achukwu, urged Nigerians in the Diaspora to ensure that they bring in quality machines that were of international standard to avoid being frustrated.

  • Manufacturers condemn planned increase in electricity tariff

    Manufacturers condemn planned increase in electricity tariff

    Manufacturers have condemned the planned increase in electricity tariff, saying there is no justification for the hike when power is unstable.

    Lagos Chamber of Commerce and Industry (LCCI) President Goodie Ibru said it was curious government is contemplating such an increase despite the shortcomings of the power sector.

    He said : “It is curious that in the midst of all these shortcomings, electricity tariff is being reviewed upwards, in good conscience government cannot justify increased tariff to epileptic supply. The programmed periodic increase in fixed charge is unfair to electricity consumers and should be reversed. There should be a good balance between the protection of the interest of investors and that of the consumers.”

    The tight credit situation, LCCI said, was inhibiting domestic enterprises from taking advantage of the nation’s robust market. He urged fiscal and monetary authorities to work together to ease the credit conditions for small and medium scale enterprises and more importantly, domestic businesses.

    Ibru reiterated the need to unlock the Nigerian credit market at this critical time, saying it is critical to stem the gradual crowding out of domestic entrepreneurs by foreign investors.

    He said: “The current tightening of monetary policy is inhibiting domestic production and encouraging imports. The outcome of the last Monetary Policy Committee (MPC) meeting of the Central Bank of Nigeria (CBN) portends even more difficult times for investors in the economy as far as cost of funds is concerned.”

    Ibru deplored the unsatisfactory power situation in the first half of the year, saying manufacturer’s expenditure on diesel and petrol was unbearable because it impacted negatively on investment over the last six months. This, he said, led to declining productivity and competiveness.

    LCCI Director-General Muda Yusuf frowned at what he called government’s concentration on micro economic issues such as the touted Gross Domestic Product (GDP) growth in the economy.

    He argued that real economic growth should be measured by the operating environment made possible by the ease of doing business and the needed infrastructure by manufacturers.

    Quoting from World Bank sources, he stated that the nation still remains a difficult terrain for businesses in terms of operating modalities obtainable by developed economies, job creation and employment generation.

    He insisted that the domestic and international issues facing the oil and gas sector pose both risks and opportunities for the economy. According to him, the greatest risk is the potential shock to fiscal sustainability if the global oil price slumps under the current challenges confronting the ability of the nation to expand oil output.

    On the imperative of economic diversification, Yusuf said realities in the economy underscores the urgent need to diversify the economy especially power, the railways, and the road network. He said all these are critical to enhancing manufacturing, agriculture, ICT, services and downstream oil and gas. He called for the improvement of institutions and the policy environment in order to attract more private capital both from within and outside country.

    Besides, he stressed the need for he called on the government to raise standards of business ethics in the country to contain some negative behaviours by certain class of businessmen. He listed some of the concerns of manufacturers to include smuggling, product faking and counterfeiting, under invoicing to evade duty payment, tax invasion, and concealment of items in containers by importers, piracy of creative works and wanton violation of intellectual property rights.

  • Investors prefer Southwest, says LCCI

    Which part of the country is most suitable for doing business? It is the Southwest, says the Lagos Chamber of Commerce and Industry (LCCI), quoting investors’ and entrepreneurs’ preference.

    In a statement, tagged: ‘The Nigerian Business Confidence Index (BCI),” LCCI said: “The confidence level of businesses located in the Southwest inched to a new high of 44 per cent from 38per cent and 30 per cent in Q2 and Q1.

    “This is followed by companies operating in the Southeast and Southsouth, with BCI score of 31 per cent and 21 per cent respectively.”

    The report said the confidence level of businesses in the Northcentral, which dropped to zero in Q2 improved dramatically with BCI score of 11 per cent. “Northeast and Northwest continue to trail between the negative and neutral confidence trajectories. We look to see how far the on-going security operation in some Northern states will impact business confidence in our Q4-2013 BCI survey,” it stated.

    LCCI said the third quarter 2013 aggregate BCI sustained a positive improvement of 24 per cent from the 16.5 per cent and 10.5per cent it achieved in Q2 and Q1. This represents 13.5 per cent point movement of the index along a positive trajectory since the beginning of this year.

    The steady and significant improvement of the BCI, according to the repor, suggests that business leaders are gearing towards expanding their investments and plant size in the months to come.

    He said apart from the recurrent factors such as poor access to credit, security situation and the dwindling public power supply, the index posted impressive confidence across most business and economic indicators.

    He also said that budget implementation and Federal Government’s security intervention in some parts of the North, impressive corporate results and the modest trends of exchange and inflation rate tend to have supported the record rise of business confidence in that section of country. The Director General of Lagos Chamber of Commerce, Muda Yusuf said for the first time, the financial sector recorded the highest confidence of 35 per cent closely followed by Hotel & Restaurant and Telecoms & Postal sectors 29per cent and 27 per cent confidence levels respectively.

    He also said for the first time the agricultural sector was impressive at 18 per cent but the manufacturing sector remains disappointing at 5 per cent business confidence level. According to him, this implies that expansion and new investment in the Nigerian manufacturing sector remains largely held down by the lingering challenges confronting business environment in the country.

    In their conclusion they said the 3rd quarter 2013 aggregate Business Confidence Index (BCI) sustained a significant positive improvement supported by the take-off of budget implementation across the country. He listed other positive improvements to include on-going security intervention in some parts of the North, impressive corporate results in most sectors and stable macroeconomic prices – exchange and inflation rate.

    He said the improvement suggests that business leaders are likely going to expand their investments in the months. He however, noted that some investors are still wary about the state of the economy in the medium term because the lingering limiting factors are yet to be addressed.

    BCI is a leading economic indicator designed to measure the degree of optimism on the state of the economy that business leaders are expressing through their activities of investing and spending. Decreasing business confidence is often a pointer to slowing economic activities because business owners are likely to decrease their investment. The more confident entrepreneurs and managers feel about the business environment, the more likely they are to make new investments, create job and impact the economy.

    The 3rd quarter 2013 BCI survey covered 15 sectors and 582 (top business executives) respondents over the period, 15th May to June 18th 2013.

  • Govt urged to focus on power, roads

    The Association of Small Business Owners (ASBON) has advised the Federal Government to reduce its seven-point agenda to two. it implored the government to focus on power generation and road construction to grow the economy.

    Its President, Mr Femi Egbesola who, made this call during an official visit to the corporate office of Vintage Press Limited, publishers of The Nation in Lagos, said ASBON members were worried over epileptic power supply and the poor state of most roads. He urged the three tiers of the goverment to pay attention to these problems because they affect business’ operations.

    ASBON members in the hinterland, which included farmers and other artisans, he said, were finding it difficult to bring their products to the cities because of bad roads.

    He urged the Bank of Industry and other financial institutions to give ASBON members with soft loan to boost their businesses

    The ASBON chief decried a situation where his members were finding it difficult to register their products with the National Agency Food Drug and Administration Control (NAFDAC) because of certain problems.

    Although the official amount they have to pay before obtaining their certificate from NAFDAC is less than N60,000, the group alleged that they end up paying over N250,000 because of verification and bureaucracy.

    The association also urged the three tiers of government to address the problem of multiple taxation, saying it affects their businesses.

    The General Manager, Manpower Training and Development, Mr Soji Omotunde spoke of The Nation’s readiness to assist the group to survive.

    In Egbesola’s entourage were the Vice President, Mr George Okoroafor, Ogun State Coordinator Mr Tunji Egberongbe, Vice President Commerce Mr OnumaUfezee, Vice President Import and Export Mr LanreOgunseye, Vice President Services Mr John Nwoko, Vice President Agriculture Mr Stephen Oladipupo, Vice President Industries, Mr KayodeOkanrende, Mrs Eniola Adigun, Chairman, Osun State Chapter Mr SojiAyangbola, AkinyemiModupe is member while AdeyemiAdewale is their manager.

  • ‘Don’t sell Ajaokuta at scrap value’

    The Ajaokuta Steel Company Ltd., in Kogi State, has entered into partnership with a consortium of investors to reactivate and operate completed units of the steel plant.

    Its Sole Administrator, Mr Joseph Isah, told the visiting executive members of the Kogi State Council of the Nigeria Union of Journalists (NUJ) that the project was 98 per cent completed, advising Nigerians not to canvass for its sale “at scrap value”.

    He said some of the completed units of the steel plant could be reactivated and operated commercially.

    “As an integrated steel plant with series of completed units, some of which can be operated commercially, we are currently going into partnerships with a number of investors to reactivate them.

    “Such completed units include the engineering works, light section mill, wire rod mill, thermal power plant and the Metallurgical Training Centre (MTC) among others.’’

    He said that the company had signed a Memorandum of Understanding (MoU) with MessrsReprome Nigeria Ltd. for sourcing of spares and technical assistance.

    The administrator said that the company had also signed another MOU with the Industrial Training Fund for training and manpower development.

    According to him, this is in line with the National Industrial Skill Development Programme of the Federal Government to train 1000 trainees in each state.

    Isah, who described company as the “bedrock of Nigeria’s industrialisation,” attributed its woes to Western conspiracy and indigenous collusion.

    He said some leaders in government were ignorant of the potential of the company, urging journalists to give the steel company the needed publicity.

    Earlier, the NUJ Chairman, Malam Ali Atabor, said that people generally believed that the company had failed, adding that the visit of the NUJ members had proved the contrary.

    The chairman urged Nigerian leaders not to succumb to western propaganda to stifle the country’s industrialisation, advising the leaders to take the completion of the steel project seriously.

    Atabor urged the management to revive the MTC for the training of manpower.

    He hailed the vision and focus of the company’s leadership to turn it around.

  • Seaman’s Schnapps unveils new look

    Seaman’s Schnapps, one of the leading schnapps’ brands from the stable of Grand Oak Limited now has its Premium 75CL in a bright new purple look creating more excitement and appeal to its teeming consumers.

    The new look, which aligns with the lead pack of Seaman’s Royale 100CL is intended to create a unique brand identity for the product as well as guarantee customers’ satisfaction.

    Dropping the hint through a statement in Lagos, Category Manager Mr. Ayodeji Abiodun, stated that the new look of the popular Schnapps’ brand was informed by the need to constantly create requisite appeal and excitement around the brand.

    Furthermore, he disclosed that dazzling look Seaman’s Premium 75 CL comes with a customized tot glass, an appealing design and a firmer gift box which is parallel to 100 CL pack size.

    Commenting on the new look Seaman’s Premium, Grand Oak Limited’s General Manager, Marketing Mr. Brajesh Kumar, said with this new initiative, the brand now wears an attractive colour which readily distinguishes it.

    He stated that the company will aggressively push the brand in the market, ensuring that the target audience is aware of its new offerings.

    In his own words on the new look Seaman’s Premium 75CL, the company’s Commercial Director Aare Fatai Odesile, stated that the re-launch was in consonance with Grand Oak’s corporate policy to be constantly innovative and ahead of competitors.

  • Adopt Delta Beyond Oil Vision, Fed Govt advised

    The Lagos Chamber of Commerce and Industry (LCCI) has suggested that Delta State’s Beyond Oil Vision policy be adopted as a national scheme.

    Its Director-General, Muda Yusuf, said the adoption of the initiative would ensure that the country no longer solely relied on oil for its revenue.

    By the policy, Yusuf said Delta State Governor Emmanuel Uduaghan was already looking at the future when oil would have been exhausted.

    “It should be a national policy because we are in a very vulnerable state,” Yusuf said, adding that a situation whereby “we depend on oil for 80 percent of our revenue and 90 per cent of our foreign exchange is very dicey.”

    On what the Federal government should be doing to realise the goal, Yusuf said: “It should declare a state of emergency, by pegging the price of oil at $60 per barrel. The Federal government should also provide the enabling environment for the private sector to thrive. Once the environment is right, people will become very creative and many jobs will be created in areas that you least expect,” he said.

    Emphasising the importance of a conducive business environment, Yusuf referred to the tremendous progress that has been made in the movie/entertainment industry where many young people who were hitherto unemployed are now gainfully employed, and contributing to the Gross Domestic Product. He said more Small and Medium Scale Enterprises (SMEs) would spring up and thrive if government invests in the appropriate infrastructure.

    Agreeing that Nigeria ought to be planning for a future when oil will no longer be there, the Delta State Commissioner for Information, Chike Ogeah, said: “Delta Beyond Oil,’ is an initiative to effect a paradigm shift from the nearly 100 per cent reliance on revenue from crude oil in driving the state’s economy. Its aim is to harness other resources in the state to create a vibrant economy away from oil which is a finite resource.”

    He listed agriculture, ICT, developing other natural resources, including solid minerals, developing the huge manpower base, and creating a suitable environment for investment as some of the areas the state would for on to drive the inititive, adding that the vision also entails the development of a strong infrastructural base, such as modern roads, efficient water transportation, healthcare system and a world class educational system, amongst others.

    Ogeah explained that Delta Beyond Oil is not a physical structure in terms of a building, but an enduring vision to prepare the state for the inevitable drying up of hydro-carbon deposits, saying the vision does not come with any cost.

    The vision recognises the fact that despite the relative significant revenue from oil, Delta is faced with huge challenges, especially in the cost of developing critical infrastructure due to its tough terrain.

    Also commenting on the ‘Delta Beyond Oil’ initiative, Mr. Olufemi Awoyemi, Founder/CEO, Proshare Limited said, “The initiative from Delta is laudable even if it is all hype. It helps provide a contextual framework for the much needed discussion not just as a resource limitation problem, an alternative seeking imperative or a diversification choice”

    Continuing, he said, “It goes to the heart of our federalism to encourage all states to identify their core competence or revenue stream – a key fundamental to states creation we failed to tick off on”.

  • Govt praises Dangote

    The Federal Government has commended the Chairman of Dangote Cement Plc, Aliko Dangote, for reviving privatised companies, despite huge challenges in the business environment.

    Minister of National Planning Shamsudeen Usman gave the commendation during his visit to the Dangote Cement Plant in Gboko, Benue State. He expressed delight that the Dangote Group has not let the country down in its acquisition of some of the privatised companies.

    He said: “I know that many privatised companies are doing well. Dangote Cement is one of them. The whole essence of privatisation is to improve efficiency and promote investments and employment generation.”

    Shamsuddeen advised the host communities of privatised firms to cooperate with the new owners to enhance optimum capacity utilisation and industrialisation in the country, adding that they stand a chance of benefiting more if the company receives their support.

    “Such host communities would gain more employment opportunities and other social activities implemented by the companies,” he said, explaining that the visit was a fact-finding one aimed at ascertaining the true state of already privatised public enterprises, in view of the feeling in many quarters that many of them are not performing well.

    Dangote Cement has upgraded the former Benue Cement Company’s (BCC) capacity to 3.0 million metric tonnes per annum (MMTPA) from the initial installed operating capacity of 0.9 MTPA, the Plant Director, Prakash Sharma, said .

    Sharma said the new owners have already invested $500million in plant rehabilitation and technological convergence, while an additional $50million is being invested in the on-going expansion project to raise capacity to 4.0 MMTPA.

    With its Obajana and Ibese plants, the Dangote Cement currently produces about 20MTPA, surpassing Nigeria’s national average demand.

  • Why Nigerians abroad must return home, by Akpabio

    Governor Godswill Akpa- bio has urged indigenes of Akwa Ibom State in the United Kingdom (UK) to return home to manage some of the projects being packaged by his administration.

    He implored them to set up a consortium to bid for the running of the projects.

    Speaking at a town hall meeting organised by Mboho Akwa Ibom State Association (MAISA), UK and Ireland in London, Akpabio called on the indigenes to be part of the changing story of the state by bringing their professional skills to bear on development.

    He said he saw the diaspora community as a vital part of the state’s development.

    Akpabio said healthcare was an area where he needed the expertise of the Akwa Ibom diaspora.

    He said: “One area I want the diaspora to come home and participate in is the healthcare delivery system as post-surgery care in particular is very bad in Nigeria. For instance, some people are already prepared to put together a consortium to run the new ultra-modern hospital we are building and we need you to come up with projects like this.

    “We are prepared to take equity in your companies and we are also prepared to guarantee loans for bankable projects, so we want to see you participate in such projects. We also want you in the diaspora to put companies together and get people to come and run other facilities we are building as for instance, Hilton has just agreed to run our new hotel.”

    The governor said Akwa Ibom was developing fast noting that his administration’s plan is to embrace industrialisation in a holistic manner.

    On the strides of his administration in the power sector, he said: “ we should become the first state in Nigeria to achieve 100% connectivity to the national grid, which we hope to achieve by 2015 as we currently have 87% connectivity up from a paltry 36% in 2007. In the area of drainage too, last year, when we had flooding in Nigeria, Uyo was the only state capital that was not affected, thanks to our pipe jacking drainage system.”

    Akpabio asked the diasporans to join hands with his administration to develop the state, saying: “You are the ones with the skills and expertise and we are just holding the home front for you, however, you must be bold enough to change your world. It takes one person to change a generation.”

    Akpabio said his administration was training 150 young people in India in information communication technology and healthcare as part of its manpower development programme.

  • Fed Govt, SON, others raise bar on business sustainability

    The Federal Government, Standards Organisation of Nigeria (SON) and other stakeholders in Lagos inaugurated ISO 26000 Guidance Standard on Social Responsibility, Nigeria Adoption Process.

    The ISO 26000 is an international standard that gives guidance on social responsibility. It is intended to be used by organisations in public and private sectors, in developed and developing countries as well as in economies in transition.

    At its unveiling, the Director-General of SON, Dr. Joseph Odumodu, said the event was historic as it marked the hallmark of advocating the benchmark of organisational behaviour against a set of internationally-negotiated and agreed criteria for social responsibility.

    He observed that the active participation of the country, through the process, led to the final elaboration of the standard as the business operating environment was considered alongside other developed and developing economies. Odumodu added that the strict implementation of the standards by the various stakeholders would grow the economy.

    He said: “Being a guidance standard on social responsibility, the application and implementation of the requirements of ISO 26000 standard requires deep commitment of the top management of any organisation or institution, if the benefits of the standard are to be fully derived. It is therefore imperative to call on all organisations and institutions including governments at the various levels interested in responsible social behavior, to endeavour to internalise the requirements of this standard as a benchmark for measurement.”

    He urged various organisations involved in the measurement of social responsibility behaviours of organisations, either for research or consideration for awards, to make the requirements of the ISO 26000 Guidance Standard on Social Responsibility a major criterion in their evaluation and judgment.

    He said the diligent application of the standard, across the strata of the organisational sectors, would promote responsible social behavior that will positively affect the entire society and further underscore the goal of the SON to improve the manufacturing sector and by extension, lives through standards.

    Earlier, the Minister of Industry, Trade & Investment, Mr. Olusegun Aganga, in his address, said the ISO 26000 standards provide solutions for almost all sectors as it was globally developed and accepted, with the active involvement and participation of relevant stakeholders and interested parties.

    He revealed that the Standard took five years of negotiation among different stakeholder groups, including governments, NGOs, Industry, Consumer Groups and Labour organisations from around the world before it was formally launched in 2010.

    He commended the active participation of Nigeria in all the activities leading to the elaboration of this unique international standard through the National Mirror Committee on Social Responsibility, which membership cut across all stakeholder groups.

    Aganga who was represented by the Director-General, Financial Reporting Council of Nigeria, Jim Osayende Obazee, said the fact that the standard has been formally adopted as Nigeria’s Industrial Standards with the active involvement of stakeholders and interested parties and approved by the Nigerian Standard Council, suggests that Nigeria is prepared to apply the ISO 26000 Guidance Standard on Social Responsibility.

    Director, PMO & Operational Strategy, Etisalat Nigeria, Lead sponsors of the event, Ms Ndidi Opaluba, said the firm has already implemented the standards even before it was launched in the country, stressing the necessity for companies to be responsive to the needs of their environment in order to operate successfully without hic cups.