The Nation Newspaper

Category: Industry

  • UNIDO predicts real sector’s growth

    United Nations Industrial Development Organisation (UNIDO) report has disclosed that Nigeria and other developing and emerging economies enjoyed significant growth in the manufacturing sector in 2012, with prospects for more growth in 2013.

    A release by UNIDO noted that developing and emerging industrial economies in general maintained a strong rate of Manufacturing Value Added (MVA) growth in 2012, despite some deceleration in industrial production due to a decrease in demand for exports.

    According to the report, the growth rate of world manufacturing output remained low in 2012 due to the prolonged recession in industrialised countries and its negative impact on developing and emerging industrial economies.

    “Developing and emerging industrial economies’ combined share of world MVA in 2012 stood at 35 per cent.

    “World manufacturing output grew by 2.2 per cent in 2012, significantly lower than the 3.1 per cent projected midway through last year.

    “The world’s industrialised countries experienced particularly low MVA growth, with some dynamism in North America and East Asia was largely negated by the sustained recession in Europe. MVA of industrialised countries grew at an average rate of just 0.3 per cent in 2012,” the report stated.

    According to UNIDO, the global economic crisis beginning in 2009 has not only forced huge job cuts in the manufacturing sector of industrialised countries but has also pulled labour productivity down.

    It says net manufacturing output in the world’s eight major industrialised economies (G-8) has fallen by a much higher rate than the number of employees, reflecting the fact that many businesses retain a skeleton workforce even during periods when there are no or few orders for their products.

    “In the longer run, the industrialised countries’ share of world MVA will remain high, as economic progress will mean that more countries will be elevated into the group of industrialised economies,” the report says.

     

     

     

  • Lagos hires foreign experts on real sector

    The Lagos State Government has hired Peruvian development research experts to address the challenges of the real sector.

    The Commissioner for Commerce and Industry, Mrs Sola Oworu, said the government’s action was informed by its determination to identify the people’s challenges and proffer solutions.

    She said: ”We all keep talking about the informal sector but we don’t know the size of the sector. So the idea is to find out how they operate and why these people have refused to move from the informal to the formal sector. Yes, they have problem of accessing funds.

    “Some of them may be sitting on several capitals (property) but that capital doesn’t have title and without the title, they cannot approach financial institutions in the formal sector for funds.

    “So, the thing we are trying to do in this programme is to find out the various constraints facing those in the informal sector. Why they cannot come into the formal sector. Whether it is paper work or the processes involved.”

    She said the experts would come up with a report that would proffer solutions to the problems.

    “If it means embarking on institutional reforms to remove the constraints, that will have to take place so that more people will move from the informal sector to the formal sector,” she said.

    The Project Manager from Peru, Enrique Diaz, said they have undertaken similar projects in some developing countries with positive results.

    He said in most of these countries, it was discovered that the challenges faced by informal sector players were similar, but solutions could vary depending on what obtains locally.

     

  • Akwa Ibom to partner Canada on power

    Akwa Ibom State has sought the partnership of Canadian companies in generating adequate electricity supply to boost its economy.

    Speaking when he received Canadian High Commissioner in Nigeria Chris Cooter in Uyo, the state capital, Governor Godswill Akpabio said the state’s Independent Power Plant is producing 191 megawatts of electricity, adding that it needs partnership to generate more for distribution to consumers.

    Akpabio said: “With the recent completion of our independent power plant (IPP), we would want to partner Canadian companies to improve on the power generation and expansion of the current power to many consumers’’.

    He also sought Canada’s assistance in the development of Ibaka Deep Seaport, saying: “We will be glad to see Canadian companies coming to develop Ibaka Seaport and to partner with us on the development of the aviation sector through Akwa Ibom International Airport. Already, we are constructing an international hangar, which would make us the first state to land a Boeing 380 aircraft in the country”.

    Akpabio added: “We want to co-operate with companies in Canada for investment by bringing in more companies for investment and the development of the state. Akwa Ibom State is an economic hub; so we are building the state for the future. That is why we’re building basic infrastructure to facilitate the economic boom of the nation”.

    Earlier, Cooter said Nigeria and Canada had moved fast in their partnership in the last six months, noting that in October, last year, both countries signed a trade agreement to cement their ties.

    Cooter said his country is partnering India on the construction of hospitals, adding that in May, the Canadian government would permit Nigeria to bring 200 persons on a trade mission to the country.

     

  • Investors fleeing North over insecurity, says Kaduna Chamber

    THE Kaduna Chamber of Commerce, Industry, Mines and Agriculture (KADCCIMA) has said insecurity in the North is taking its toll on many businesses.

    At a briefing on the forthcoming 34th Kaduna International Trade Fair scheduled to start tomorrow, the chamber’s First Deputy President, Alhaji Awwalu Makarfi, said investors were running away, from the region because of the problem.

    “As we are all aware, Nigeria has been facing serious security challenges, particularly within the last three years. These challenges have obviously impacted negatively in our socio-economic activities and political life in the northern part of the country.

    “Consequently, security has remained the priority issue of all our tiers of government at all levels. Effort of the government and its agencies, the contributions of religious and traditional institutions as well as those of numerous organisations toward restoring peace and developmental pace in the country are highly appreciated and commended,” Makarfi said.

    He said the cooperation and support received from security agencies and the government in recent time had imbued confidence in business operators, giving them hope that the situation was about to be a thing of the past.

    On the trade fair, he said about seven countries are expected at the fair.

    He said the chamber has contacts with industries, manufacturers, marketers and distributors in and outside the country.

    His words: “Already, positive responses to our invitations have started coming in. The chamber is in close contacts with relevant ministries, departments and agencies at both federal and states levels. Nigerian missions abroad as well as the foreign missions in Nigeria are also being contacted to ensure greater participation at the Fair.

    “So far, arrangements for participation of some companies from countries, such as Egypt, Iran, Niger Republic, India, Pakistan, Turkey and People’s Republic of China are at advanced stages.

    On the security put in place he said: “As you must have noticed from the proposed dates, the 34th edition of the KITF is being planned to hold at the usual February/March period. With the improved security situation our Chamber is determined to keep to the dates with the help and mercy of the Almighty God.

    “I am pleased to inform you that the preparations for the 34th edition of the KITF has commenced in earnest.

    “We have inaugurated the re-constituted KITF Main Organising Committee and nine other sub-committees. All the Council members of the Chamber are members of the Main Organising Committee. Other members are drawn from state government, security agencies and representations from essential services agencies,” Awwalu said.

     

  • Manufacturing will reduce poverty, says survey

    POVERTY can only be reduced if the manufacturing sector is rejuvenated, a survey has shown.

    According to the survey, a stable macro-economy cannot translate to poverty reduction, where there is lack of infrastructure, irregular power supply and an unsound industrial policy.

    The research was conducted by Dr. Chukwuma Agu, Dr. Hyacinth Ichoku and Dr. John Ataguba of the African Institute for Applied Economics (AIAE) . They investigated some households and their economic status.

    The researchers said as commendable as the government’s efforts to provide 3.5 million jobs in the agriculture, housing construction, solid minerals, aviation and the creative industries is, the inability of the government to grow the manufacturing sector would make the vision impossible.

    The research was commissioned by African Economic Research Consortium (AERC). It showed how the public sector has been crowding out the private sector, and how the much- talked about growth in the country is non-existent.

    The report listed factors that impact poverty to include household size, agricultural employment, geo-political cultural and religious peculiarities, deepening human capital. and corruption.

    The work also examines the impact of sector of employment and selected demographic indicators at the household level.

    Estimates, according to the report,were obtained for national level data and data from the six geopolitical zones. Determinants of poverty and inequality used in the study included both macro indicators and micro variables. And the findings are as interesting.

    “For example, the work found that household size, region of origin and sector of employment are some of the most important determinants of the probability of a household being poor in Nigeria,” Agu said.

    He added that many African countries that have posted high positive growth rates in the last decade have also seen significant rise in poverty.

    He said: “Between 2004 and 2010 (a period of less than seven years), the proportion of Nigerians living in absolute poverty jumped from 54 per cent to 70 per cent. This is despite the fact that the country has grown at about seven per cent consistently for nearly one decade and has also designed a plethora of poverty reduction strategies at all tiers of government. Though it has always been known that growth is not always a sufficient condition for poverty reduction and that tackling poverty regularly requires targeted programmes, Nigeria’s experience presents an absolute paradox. Both policymakers and private individuals are concerned about the drivers of growth and poverty. It is difficult to understand that an agriculture-driven growth in a country with nearly 60 percent of the labour force employed in the sector should produce such adverse growth and poverty dynamics”.

     

     

     

     

     

     

  • Traders hail planned dedication of future budgets to real sector

    Traders have hailed President Goodluck Jonathan’s decision to dedicate future budgets to the real sector.

    The National Association of Nigeria Traders (NANT) said the plan would boost employment, wealth and make the economy stronger.

    While inaugurating the National Competitive Council of Nigeria (NCCN) board at the Presidential Villa, Jonathan said from next year the budget would be dedicated to the manufacturing sector.

    In a statement, NANT’s President, Mr Ken Ukoha, said.

    “NANT believes that Nigeria has all it takes to become a world power and investors destination. We further believe that industrialisation is key and it does not require rocket science to turn Nigeria into the next industrial destination point in Africa.

    “For us, the success or failure of an economy starts from the fiscal framework and the 2014 budget and beyond can be used as that master key to unlock the nation’s fortunes; therefore, Mr President’s vision is in the right direction and must be supported.

    “It is on record that the world (including global bodies such as the World Bank, the IMF, and other respected organisations) is seeing Nigeria as an emerging and potentially strong economy,”he said.

    He said for emerging economies, the share of manufacturing in Gross Domestic Product (GDP) is between 20 and 40 per cent, adding that in Nigeria, the sector’s share is less than five per cent, indicating under-utilisation and under performance.

    “It is noteworthy that the manufacturing sector has over the years remained comatose and, therefore, lost its position in the overall economic status.

    “ In accurate terms, the contribution of the sector has been dwindling, and of late staggered with fluctuations between four and six per cent contribution to the nation’s GDP. The average manufacturing capacity utilisation decreased from 47 per cent in 2009 to 45 per cent in 2010 and it is still taking a downward trend.

    “In terms of employment generation, available information reveals that a total of over 800 manufacturing companies closed shop between 2009 and 2011 as a result of their inability to continue to cope with the challenges posed by the harsh operating environment in Nigeria; and what this means is that there is a significant decline in employment ratio as a percentage of the total labour force in the formal sector of the nation’s economy,” he said.

    Ukoha said agriculture and trade have been holding the economy at 41 per cent and 28 per cent contribution to the GDP, adding that such contribution is only an unfortunate economic indication of absolute lopsidedness and failure of industrial transformation of the primary commodities to finished products that would in turn reduce the huge volume of imports which has kept the country’s economy on its knees.

     

     

     

     

     

     

  • Us, Nigeria to hold bilateral trade forum

    MEMBERS of the Nigerian-American Chamber of Commerce (NACC) are set for talks on bilateral trade between their countries.

    At a briefing in Lagos, the chamber’s deputy president, Mr Binta Famutimi, said the event is expected to promote the development of trade, commerce, investment and industrial technologies between both countries public and private sectors.

    “It is a vital forum to address challenges of enhancing Nigerian and American relations. This year’s event promises a rich mix of cultures and contacts, with members of the chamber from its branches in Abuja, Abeokuta, Ibadan, Kaduna, Port Harcourt, Owerri and American corporate bodies set to make their presence count,“ he said

    The chamber denied that it is a Lagos affair, saying it plans to open branches in other states to strengthen its relationship with the private sector.

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

  • UNIDO’s shoe-making village for Delta

    THE United Nations Industrial Development Organisation (UNIDO) is partnering with the Delta State government to set up a shoe-manufacturing village where local shoemakers will be trained.

    Coming under the auspices of Delta Micro-Credit Programme, headed by Commissioner of Poverty Alleviation, Mrs Antonia Asheidu, the project is expected to absorb no fewer than 488 shoemakers and their products are expected to be a brand that would compete with ADIDAS and NIKE.

    Mrs Asheidu said given the track records of UNIDO in poverty reduction in developing countries, the project would be a huge success.

    “It’s a project we will be proud of in future.With UNIDO coming into it with their expertise, we believe that in a couple of months, jobs will be created and a huge market will emerge. Through it, we can buy into the markets,”Asheidu said.

    Speaking on the project in Asaba, Governor Emmanuel Uduaghan noted that the shoe-making village will be the biggest in Nigeria, adding that the Memorandum of Understanding (MoU) will be signed soon week.

    On whether Nigerians would embrace branded indigeneous products, the commissioner stated that products which will be branded “DMCP” or “FRN” to mean Delta Micro-Credit Programme or Federal Republic of Nigeria, would meet international standards with the help of UNIDO and some international shoemakers that would be involved in the programme.

    UNIDO is saddled with generating and disseminating industry-related knowledge as well as providing technical support and implementation of projects geared towards reducing poverty through production and integrating developing countries in global trade through capacity building.

  • Akpabio urges BRACED states to embrace manufacturing

    Governor Godswill  Akpabio has urged the Bayelsa, Rivers, Akwa Ibom, Cross River, Edo and Delta (BRACED) to focus more on the development of aquaculture in the South-south to create more employment opportunities.

    Akpabio, who spoke when BRACED Director-General, Ambassador Joe Keshi and commissioners of agriculture in the BRACED states visited him in Uyo, lamented that his state had not taken advantage for the development of aquatic lives.

    He said: “The South-south has some challenges such as poverty and insecurity. So, this is the time for us to take our destinies in our hands for peace and development in the region. So therefore, the BRACED Commission must focus and discuss more in their next summit meeting on the aquatic wealth of the nation for the employment of our people.

    ‘’Already, the South-South has a lot of shrimps which could be transported by boats for sale and for export. That could in turn generate revenue for the people. We must discuss how to provide the boats and finances for the processing of our marine wealth’’.

    According to him, Ghananians and other nationals have been engaging in fishing in the country’s territorial waters, urging BRACED to take advantage of the availability of aquatic lives in the region by exploiting such to create jobs for people.

    He said Akwa Ibom is committed to agriculture particularly rice production through Integrated Farmers Scheme, adding that the state has initiated Women in Agricultural Development Project (WAEDEP) giving N250,000 to each of the 4,500 women.

    He charged the commission in liaison with private investors to venture into the manufacturing with the tag of BRACED, saying “Also, we would want a manufacturing company from BRACED Commission where food products would be packaged and stamped and before you notice it, people would rush for it. So to this, let us have a technical committee to practicalise and ginger the manufacturing sector on what we would be discussing”.

    Earlier, Keshi said they were in the state to explore areas of mutual cooperation in agriculture. The cooperation, he said, commission members would focus  on cocoa, timber and rice, among others.

     

     

     

     

  • Industrialists condemn ports reforms

    The Manufacturers Association of Nigeria (MAN) has said some port reforms ports are affecting their operations.

    The Chairman of MAN for Kwara and Kogi states, Mrs Omolola Olabayo, said in Ilorin: “The reforms at the port are giving us problems. Our raw materials are not cleared on time and we pay more money on import duties,’’ Olabayo said.

    She said the reforms were being implemented unannounced, adding that the association had lodged its complaints about them.

    “I don’t think from the government policies that are being implemented, they really understand what manufacturing companies stand for,’’ she added.

    Mrs Olabayo urged Nigeria to borrow a leaf from China where manufacturers were granted tax waiver for five years.

    “We can’t remain giants as long as we depend on other countries for our needs, especially on manufactured goods.’’

    Meanwhile, the Standards Organisation of Nigeria (SON) has said only five per cent of locally manufactured goods do not meet the required standards and specifications.

    Its Director-General, Dr. Joseph Odumodu, said at a forum that the few instances of non-compliance were traced to mistakes and not necessarily deliberate attempts to shortchange consumers.

    He said: “When we did a survey on the quality of products in Nigeria, we found out that only five per cent of products made in Nigeria did not meet specifications.

    “Most of the statistics of sub-standard products were contributed by imported products. We discovered that the five per cent mark was not a result of deliberate adulteration. Some of them were as a result of mistakes in the manufacturing process, which you can control over time.”

    Explaining why despite the degree of compliance with standards, indigeneous goods do not command patronage abroad, the SON boss said made-in-Nigeria goods lack accreditation, which is a major requirement in many countries.

    “One, there is the issue of lack of accreditation in Nigeria, but, more importantly, also there is the issue of infrastructure in Nigeria. The issue of power, roads and others. Nigeria, at the last count is about 40 per cent at a disadvantage. I’m actually quoting the Manufacturers Association of Nigeria’s numbers, which says that if you want to manufacture a product in Nigeria and manufacture the same products in place, such as India, the cost in Nigeria will be about 50 per cent higher. So, how are you going to compete in international market when you have, one, a higher cost structure, and at the end of the day, those people also enjoy export incentives?

    “This is what gave rise to dumping and it is an issue from country to country and at the end of the day, how can a Nigerian manufacturer compete in international market? That’s where the dilemma is and that is why we are working hard to ensure things are done well. Even the president is focusing on power and by the end of this year, we are looking at 10,000 megawatts that clearly will ensure that industry develops,” he said.