Category: Industry

  • ‘Why govt should plan commercial areas’

    Industrial establishments that generate liquid and effluents are supposed to integrate into their system, a sewage plant management plan before the government can issue them approvals, the President, Nigeria Institute of Town Planners (NITP), Mr Steve Onu, has said.

    Onu, who spoke to The Nation in Lagos, decried the reckless discharge of waste water and effluents into the environment, saying that it throws up health issues in the environment.

    He argued that commercial and industrial development  is not different from residential development, insisting  that in each case, there should be  adequate physical planning measure where  an industrial layout is looked at in totality  and  essential services  adequately  provided to take care of the stress  of providing  them from the industry operators.

    He encouraged the government to ensure that solid and liquid wastes from companies are treated adequately before being allowed into the municipal sewage system. The NITP president asked for adequate mapping and zoning of industrial areas because, according to him, all human activities revolve around the use of land.

    Consequently, he called for equitable use of land, adding that the  first thing to do is digital mapping of zones to know what kind of industries that can be cited  to ensure  that there is safety of lives and property.

    According to him, unplanned development is expensive in the long run because people will locate industries or housing estates without sufficient plan for quality roads, electricity, water and sewage management. He said when the government realises the mistake, it will come back to demolish the buildings, creating losses for businesses.

    The NITP president said in the United States of America (USA), before anybody applies to build a house, such a person will seek permission and before it is approved, the responsible government agency will confirm if the sewage, electricity and water board can accommodate the housing or industrial facility.

  • Expert seeks tax rebates for local entrepreneurs

    A TAX expert, Mr Kareem Tajudeen, has called on the Federal Government to improve on its tax exemption or rebate policy to assist indigenous entrepreneurs boost their income.

    Tajudeen, a partner in T.A & Co., a tax consultancy firm, in Lagos stressed the need for more tax holidays for indigenous businessmen.

    “The Federal Government should extend its tax exemption programmes to many other sectors besides agro-allied businesses and importation of mining equipment.

    “The government must aim to encourage more investments in other industries and by implication, boost our economy, he added.“

    Tajudeen said it was akin to boosting foreign direct investment in the country by extending tax rebates to foreign investors as incentive to diversify the economy.

    He said: “Tax exemptions are a good source of motivation: it has a way of accelerating national development.

    “Unfortunately, most businessmen do not make use of tax professionals to explore business avenues where such exemptions can be optimised to tripple their net earnings.

    “Only a foolish businessman will not see value in engaging the services of tax professionals to advise them.

    “It may add to overall running cost, but it is better than taking a decision that will be detrimental to the business profitability in the end.“

    Tajudeen advised indigenous entrepreneurs to get more education and awareness about tax laws being implemented in the country, saying that such education serves a utilitarian value to them.

  • Firm launches product

    Grand Oak Limited, the largest and oldest spirit and distilling company in the country, has launched into the market the Cool Twista range.

    Its Managing Director, Mr. Akshay Kumar said the new product will enable the innermost desire of the upwardly mobile customers to stand out and be different by adding a positive twist to their day.

    He said the company has invested in one of the world’s latest technology based on their unflinching belief in the consumer and partners.

    Kumar said their drinks now come in trendy, portable, easy to dispose, tamper proof with body and bounce to add a twist to the day of the consumer. He said the superior packaging and technology employed make it impossible for the products to be faked.

    On some of the innovations on the products, he said they have introduced pet bottles which make it cheaper and easier for the target audience to afford it, though the company preaches responsible drinking among the youth.

    The Category Manager, Mr. Charles Nnochiri said the innovations are to suit lifestyles and the changing times in product innovation. He said consumers will, henceforth, enjoy a new drinking experience in sachets and pet bottles that complement their style and pockets.

    The night was filled with fun. Those who otherwise would not taste liquor, had some.

  • LCCI advises govt on budget conception, implementation

    Director-General, Lagos Chamber of Commerce and Industry (LCCI), Mr Muda Yusuf, has advised the Federal Government to take budget conception, preparation and implementation more seriously.

    He said conception, preparation and implementation of a budget were three major determinants of its success.

    Yusuf, who said these in Lagos, noted that the Federal Government should be more critical at these three major stages in budget preparation.

    He said shortcomings in budget implementation in Nigeria could be attributed to the level of seriousness of planners at the three stages.

    Yusuf said the three critical areas of conception, preparation and implementation of any budget determined its value delivery to Nigerians.

    “We need to be critical at those three critical budget making stages,“ he said.

    Yusuf advised that there should be capacity building in the public sector for budget planners to improve on budget planning and implementation.

    “Our public servants can be better at implementing budgets through training and learning more about private sector strategies.

    “The public-private partnership initiative can come handy here,“ Yusuf said.

    The LCCI boss also said corruption was also affecting successful implementation of public sector budgets.

    “Even where projects have been well articulated and approved, corruption often frustrates the delivery of value to Nigerians.

    “There is so much talk about fighting corruption, yet there is little action and unless we address this malaise, there will be no concrete outcome from our annual budgets.

    “The issue of value-for- money needs to be tackled more seriously.

    “The crusade against corruption should go beyond the level of rhetoric,” he said.

  • ‘75 % of industries affected by SAP yet to be revived’

    More than 75 per cent of industries that closed shop during the Structural Adjustment Programme (SAP) are yet to be revived 26 years after the programme.

    The Managing Director, Alind Nigeria Ltd, Bauchi, Dr Ahmad Mai-Abba, made the observation in Bauchi in an interview with the News Agency of Nigeria (NAN).

    Mai-Abba, who talked about the prevailing economic challenges and survival of industries in Nigeria, expressed concern with the effect of SAP on the bulk of the industries across the country.

    “Over 75 per cent of these industries are still dead; a visit to the industrial estates in various industrial cities in the country will throw more light on this point.

    “To what extent the programme transformed the economy from mono-culture to a diversified status, as far as I am concerned, my answer is negative.

    “We all have seen the speed at which the programme killed the bulk of the industries and over 75 per cent of these industries went under.

    Mai-Abba said SAP, which was meant to strengthen the naira against other currencies, ironically made the naira to depreciate to the low ebb.

    He said: “In 1986, the value of the U.S. dollar to naira was 97 kobo, while the 97 kobo worth of our crude oil was equivalent of one dollar.’’

  • ‘Unemployment cause of industrial crisis’

    The Chairman, FBN Capital, an investment firm, Mrs IbukunAwosika, has attributed the high unemployment rate in the country to challenges in the manufacturing sector.

    She said in Lagos that the manufacturing sector has always provided high numbers of employment in any economy.

    She said the crisis in the manufacturing sector has also impacted negatively on the insurance industry.

    According to her, the country has not given adequate support to the manufacturing sector.

    “Many factors are destroying the manufacturing sector in Nigeria and this has affected the insurance industry.

    “This is the time to create a sinking fund to enable the sector apply resources to compete with the Chinese.

    “Even in the agricultural sector, the agro-allied industry has a value chain,” she said.

    She said attention should be focused on the development of the Small and Medium Enterprises (SMEs), especially where the nation has comparative advantage.

    Awosika said Nigeria must invest in the training and tools in the sector to develop its manpower.

    According to her, there cannot be industrialisation without skills acquisition.

    The FBN capital chief said there is the need to create industrial clusters and communities such as fashion village, farmers market and furniture village, among others.

    She said with the creation of clusters with common facilities like electricity, water and heavy equipment, the cost of industrial production would be lower.

    Awosika, who is the promoter of After School Graduate Development Centre, said it is only after skills were acquired that they could be exported.

    She said insurance industry, on its part, had to think of new policies and products that would support it.

  • ‘Multiple taxes crippling hospitality business’

    Multiple taxes on hotel proprietors by the government agencies could cripple thge hospitality industry, the President of Hotel Owners Forum Association (HOFA), Mr Onofiok Ekong, has said.

    He disclosed this to The Nation in Lagos.

    He said multiple taxes could force hotel proprietors out of business in the country, if immediate solution was not provided.

    He said: “Hotel operators are faced with daunting challenges; apart from losing members of the association through closure and change of purpose.

    “The lamentations of the existing ones over multiplicity of taxes can only be ignored to the detriment of the economy.

    “The government needs to engage stakeholders in a holistic discourse to enable it to understand the magnitude and dimensions of the challenges facing the industry.

    “This will help to bring out recommendations that will help Nigeria have a more investment-friendly tax regime.”

    Ekong, however, called on the Federal Government to take necessary steps to reverse the trend.

    The HOFA chief said hoteliers pay various taxes, which had made it so difficult for them to stay afloat.

    The taxes include the consumption tax, value added tax, company income tax, withholding tax, health certificate, and waste operation permit.

    Others are vehicle emission fee, contravention charges, business premises and administrative charges for environmental audit.

    Ekong said the multiple taxes had contributed to the increased charges by hotels operators, saying that the numerous taxes were affecting the growth of the industry.

    He said the hospitality industry contributes to the economy through payment of such taxes.

    He called for urgent intervention and incentives to operators to enable the industry stay afloat.

  • West African govts earn $187m from tobacco

    The tobacco industry has generated more than $187million for governments in West Africa, Group Head of Corporate and Regulatory Affairs, British American Tobacco (BAT), Mr Kingsley Wheaton has said.

    The revenue, he said, was from income tax, excise and Value Added Tax (VAT) on tobacco products sales last year.

    In a statement, Wheaton said globally, the industry generates about $200 billion through tax.

    He said the global black market for tobacco accounted for 660 billion cigarette sales in 2012, equivalent in volume to the world’s third largest multinational tobacco company.

    “The reality is that people will continue to smoke. But instead of buying legal taxed cigarettes, made by legitimate tobacco companies and sold by reputable retailers, they’ll turn to black market sources to get what they want.

    “The tobacco industry is highly regulated, sells a legal product and we have a legitimate business. We conduct our business in a professional and responsible way, abiding by the laws in all the countries we operate in, often going above and beyond our legal obligations.

    “Unfortunately, the same can’t be said for the sophisticated network of criminals ready and waiting to step-in and take over if the legitimate tobacco industry didn’t exist.”

    “It is not a victimless crime. Illegal tobacco is sold by well-organised criminal gangs, some of whom have recognised links to terrorism,” he said.

    He said in 2012, BAT alone invested £171million in research and development activities, adding that the company has offers contracts and benefits to 140,000 farmers they have direct relationships with.

    According to him, BAT makes a long term commitment to sustainability; strives to bring reduced harm products to market; continues to fight the illegal tobacco trade; generates excise revenue; and provides employment and enhanced livelihoods to hundreds of thousands of employees and suppliers.

    “We create jobs and support business in West Africa through our own workforce and through entrepreneurs and employees involved in our supply chain. Our development of the industry has led to economic opportunities for hundreds of thousands of West Africans; from the workforce of our distributors, wholesalers and retailers, to suppliers of materials such as tobacco leaf farmers, and providers of services such as haulage,” he said.

  • Real sector is still crawling

    Real sector is still crawling

    Nigeria is celebrating 14 years of democracy, but there is nothing to cheer about its manufacturing sector, despite various economic policies. TOBA AGBOOLA writes 

    In the past 14 years of democratic rule, efforts to boost the manufacturing sector seem not to have yielded results. A look at the country’s development plans between 1999 and now, reveals that the same issues have been haunting the sector for decades.

    The issues are inadequate infrastructure, shortage of skilled manpower; over-dependence on the external sector for raw materials and capital goods and the shallow manufacturing activities as exemplified by lack of basic industries.

    For most part of the period under review, there has been near collapse of infrastructure. The development is so bad that most businesses are almost down because of the overhead cost incurred in providing alternative infrastructure such as power.

    According to the President, Lagos Chamber of Commerce and Industry LCCI, Mr Goddie Ibru, investment in the manufacturing sector has been low. He said many indigenous manufacturing firms, multinationals and investors have either shut down or relocated outside the country because of the infrastructural challenge.

    “In addition, the reduction in global consumer spending and demand has compounded the problems of the sector by hastening the fall in trade and export of manufactured goods.

    “The Nigerian manufacturing sector has failed to undergo the critical structural transformation necessary for it to play a leading role in economic growth and development. The sector is structurally weak and basic industries such as iron, steel and petrochemicals are not fully in place,” Ibru said.

    The National President, Nigerian Association of Small Scale Industrialists (NASSI), Mr Chuku Wachuku said since the advent of democracy, many companies have been operating below capacity because of unstable power supply, inadequate funds and high labour costs.

    This, he said, has increased businesses’ expenses, reduced productivity and hampered economic growth making many firms to shut down or relocate to neighbouring countries.

    He said the manufacturing sector was facing challenges in the face of the economic crisis that has accentuated the loss of competitiveness against manufactured products from China.

    “The blackouts are negatively impacting the economy, which is grappling with a combination of slow growth, a weak currency, high inflation and the effect of flooding that is expected to drive up food prices,” he said.

    However, President, Manufacturers Association of Nigeria (MAN), Kola Jamodu, noted that there has been increased investment and improved turnover for the industrial sector of the economy within the last one year.

    To achieve the desired goals in the manufacturing sector, Jamodu urged the government to address the acute infrastructural deficiency in the country and nip insecurity in the bud.

    He said smuggling, unbridled importation and dumping of cheap and substandard goods, which usually suffocate local manufactured products, should be brought to an end.

    He listed other challenges to include: high cost of funds and inadequacy of long-term loan windows to support long-gestation investments; multiple taxation, which is threatening the survival and growth of businesses in the country; non completion of the development of core industries particularly the petro-chemical, as well as, iron and steel industries; irregular supply of industrial fuel arising from the epileptic operation of local refineries; high energy cost, resulting in uncompetitive pricing of locally produced goods and dearth of qualified skilled middle level manpower worsened by the decaying educational system and policy inconsistency.

  • Obasanjo, Fashola for cassava seminar

    Obasanjo, Fashola for cassava seminar

    The Lagos Chamber of Commerce and Industry (LCCI), in partnership with stakeholders, is set to renew campaign for inclusion of cassava flour in baking bread and confectioneries.

    In a statement, the Public Relations Manager, LCCI, Mr Tope Oluwaleye, said the seminar scheduled for June 13, at the LCCI Conference and Exhibition Centre in Alausa, Ikeja, will be attended by former President Olusegun Obasanjo, as guest of honour. Lagos State Governor, Babatunde Fashola, is the Special Guest of Honour.

    Keynote address will be delivered by the Chairperson, Science and Technology Committee of the Chamber, Mrs. Josephine Maduka.

    The theme of the seminar is, ‘High Quality Cassava Production & Utilisation in Baking and Allied Industries: Status, Trend and Opportunities.’