Category: Industry

  • LCCI raises concern over multiple exchange rates

    The Lagos Chambers of Commerce and Industry (LCCI) has raised concern over the multiplicity of exchange rates in the country, saying the situation creates undue arbitrage opportunities and transparency issues in the market.

    Speaking with The Nation in Lagos, its President, Mr. Babatunde Ruwase, therefore, urged the Federal Government to address the issue, noting the wide gap between the Central Bank of Nigeria (CBN’s) N305 rate and other rates at N360 and above.

    The LCCI chief, who lauded the Federal Government’s efforts in making the forex market relatively calm with stable rates and liquidity ease across the market, however, said a market driven approach to exchange rate offers a more sustainable option of managing the forex market.

    “This is because the Nigerian foreign exchange earnings are largely dependent on oil, and if there is a crash in the oil receipt, the CBN may not be able to sustain the intervention.

    “We, therefore, need to diversify the economy so there would be more flow of forex from other sectors of the economy than just crude oil whose price remains volatile” Ruwase said.

    He also noted with grave concern the increasing wave of insecurity in the country especially as it concerns kidnapping, herdsmen attacks on communities, ethnic and religious clashes and many more.

    While acknowledging that the Federal Government through its security agencies are making concerted efforts to stem the cycle of criminalities across the country, Ruwase urged the government to be more strategic in its approach so that its efforts will yield the desired results.

    “It is important to stress that this wave of insecurity is doing a lot of damage to the image of the country and the economy, as prospective investors may become discouraged to invest in the economy while local businesses continue to groan under the uncertainty created by continued insecurity in the land,” he said.

  • Buhari’s move to revive textile industry raises hope

    Stakeholders in the textile industry have praised the President Muhammadu Buhari-led administration for prioritising job creation in his second term in office, using the textile sector as launch pad.

    Describing the administration’s policy direction in favour of reviving the comatose textile industry as a welcome development, the stakeholders said the move has raised hope of bringing back the sector’s lost glory as the second highest employer of labour after the government.

    President Buhari had, during a visit by representatives of the National Union of Textile, Garment and Tailoring Workers (NUTGTW), led by its President, John Adaji, at the Presidential Villa in Abuja, recently, said his priority in his second term in office is to create jobs for the teeming population of unemployed Nigerians.

    Stakeholders in the textile industry, including youths, who warmly received the cheery news, expressed hopes that a rebound of the textile industry would not only create millions of jobs, but also earn the nation huge foreign exchange, while also creating a multiplier effect on other sectors of the economy.

    Read Also: Neglects in education, healthcare fueled security challenges – Buhari

    Some of them, who spoke with The Nation, recalled that the closure of textile factories across the country opened up the evil doors of crimes among which are robberies, cattle rustling, kidnappings and drug abuse, among others, adding that worst hit is the North, largely due to its large population.

    They also recalled that in the early 1990s, the textile industry was the largest employer of labour after agriculture and oil & gas sectors. This fact, according to them, was reaffirmed by the NUTGTW delegation, which is a critical stakeholder in the industry.

    One of the stakeholders, who pleaded anonymity, said Buhari’s decision to ride on the crest of a revived textile industry to create jobs was an addition to previous job creation policies put in place by his administration.

    He listed some of them to include import restrictions that offer affordable and accessible capital incentives to both small, medium and large cottage industries dotting the country, the Presidential Executive order that seeks to encourage the procurement of made in Nigeria goods.

    He also said the President had directed that all security agencies- Police, para-military, National Youth Service Corps (NYSC) and other uniformed agencies that import textiles materials for their uniforms should henceforth source their materials from within the shores of Nigeria.

    While noting that such strategic policy directions set the stage for massive employment of Nigerians especially in the textile sector, he said there should be a sustainable industrial policy emphasising the need to add value to cotton rather than importing finished goods or textiles from abroad.

    The stakeholder added that government should grant tax holidays to manufacturers operating in the textile sector to reduce their tax burden. “This will likely empower them to have access to funds to improve their production capacity.

    “Secondly, government can also make foreign exchange available to enable operators import the necessary machinery and equipment for the comatose industries and set up new textile plants, while also ensuring uninterrupted power supply to existing and new plants,” he stated.

    Encouraged by the president’s pledge to bring back the good old days of massive employment by the textile sector, the Union, which was full of commendation for Buhari, decorated him as its Life Patron.

  • Roadblocks to sugar self-sufficiency

    The National Sugar Master Plan (NSMP) targets domestic production of 1.7 million metric tonnes by 2020. This will cut down sugar importation, which gulps N350 billion yearly, and also create jobs. But, few months to the deadline, Nigeria is not likely to meet the targets. She continues to consume between 1.5 million and 1.7 million tonnes of sugar yearly, making her Africa’s largest sugar importer. Operators blame this on conflicts with landowners/communities, insecurity and lack of infrastructure. They recommend, among others, closing the infrastructure gap and creating sugar hubs and intervention fund to stimulate the industry, Assistant Editor CHIKODI OKEREOCHA reports.

    As a committed investor in the sugar industry, the Group Executive Director, BUA Group, Alhaji Kabiru Rabiu, is in a vantage position to know what ails the industry. And, by extension, he also knows what is required to turn it around in order to achieve Nigeria’s target to become self-sufficient in sugar production and consumption and also guarantee a bountiful Return on Investment (RoI) for investors.

    To make these happen, Rabiu said, for instance, that the Federal Government should double its efforts in addressing some of the observed deficiencies holding the sugar industry down. He listed some of the issues to include huge capital cost for investors,unending conflicts with landowners/communities over land acquisition, insecurity, infrastructure deficit, water and environmental issues, as well as lack of synergy among regulatory agencies.

    The BUA Group executive director spoke penultimate week on the “Challenges of emerging sugar companies in meeting the sugar demand of Nigeria” at the maiden conference of the Sugarcane Technologies Society of Nigeria (STSN) in Abuja.

    He said other factors contributing to the slow implementation of the Federal Government’s Backward Integration Programme (BIP) for sugar include skill deficit and lack of synergy among various stakeholders.

    The BIP for sugar was aimed at boosting the implementation of the National Sugar Master Plan (NSMP), which began in January 2013. The NSMP was aimed at encouraging local production of sugar and halting the importation of the product, which was costing the nation a whopping N350 billion annually. Specifically, Nigeria, under the plan, targeted domestic production of 1.7 million metric tonnes of sugar by 2020.

    The plan also sought to create jobs, contribute to the production of ethanol and generate electricity. While 37,378 and 79,803 direct and indirect/seasonal jobs were expected to be churned out from the sector, respectively, the plan targeted the production of 161.2 million litres of ethanol annually. It was also envisaged that Nigeria will ride on the back of the sugar master plan to generate 411.7 megawatts (mw) of electricity yearly.

    To meet these ambitious targets, the NSMP said there was the need to establish about 28 sugar factories of varying capacities, and bring about 250,000 hectares of land into sugarcane cultivation. The National Sugar Development Council (NSDC), a parastatal of the Federal Ministry of Industry, Trade and Investment, which developed the sugar master plan, made it clear that the bulk of the investment capital required to meet the targets would come from private investors.

    This was why the Federal Government entered into a tripartite arrangement with the three major investors in the sugar value chain namely, Dangote Sugar Refinery Plc, BUA Sugar Refinery Limited and Golden Sugar Company to drive the implementation of the roadmap. But six years down the line, and with only few months to the 2020 target, there are no visible signs on the horizon that Nigeria will be self-sufficiency in sugar.

     

    Unending conflicts with landowners 

    For BUA Group and indeed, other investors in the BIP for the sugar industry, reining in host communities whose disposition to investors has been everything but friendly has become imperative. The Nation learnt, for instance, that many of the projects in some communities, which would have raised the NSMP’s implementation profile, have been stalled by government and host community’s unwillingness to give out land.

    For instance, BUA Group’s investment of $300 million in its integrated LASUCO Sugar Company in Lafiagi, Kwara State, is expected to produce 35 megawatts (MW) of electricity to be used for the factory, while the excess supply will be added to the national grid. Also, the plant, when completed in 2020, will produce 20 million litres of ethanol per annum and 200,000 metric tonnes of refined sugar annually.

    Despite these mouth-watering deliverables, BUA Group was said to have reported community hostilities against operations at its project site in Lafiagi Sugar Estate. It also recorded incidents of physical attacks against contractors working on estate roads and irrigation canals. Flood protection dykes constructed at very huge costs were breached and cane fields washed away. Farm infrastructures – irrigation systems were damaged.

    The Nation learnt that the story is the same for Dangote Sugar Refinery, which acquired 6,500 hectares of land in Guyuk for the expansion of its Savannah Sugar Company Limited, Numan, in Adamawa State. The project was reportedly stalled at some point by unrealistic demands by local community leaders.

    The company’s project site in Lau/Tau in Taraba State, also suffered the same fate. After the company was said to have gotten a Certificate of Occupancy (CoO), and had paid compensation following which 20 hectares of nursery was established for further development, the Taraba State administration allegedly frustrated the projects with its “untenable demands.”

    Golden Sugar Company Limited, another investor, also suffered similar fate when its Golden Sugar Estate in Sunti witnessed many disruptions during its development, requiring, at some point, interventions by police and local chiefs. The company’s intention to expand its cane fields was also stalled due to hostile and anti­-investment sentiments.

     

    Reeling under high production cost

    Although Rabiu praised the NSDC for stimulating investment in local sugar production for self-sufficiency, he lamented the high cost of sugar production and heavy capital investment. He noted that Nigeria is Africa’s largest sugar importer, with consumption ranging from 1.5 million to 1.7 million tonnes per annum.

    This, according to him, translates to about 8kg per head, which is low compared to the Africa average of 17kg. He said Nigeria’s low consumption capacity was due to lack of infrastructure, which drives up project cost, as well as heavy capital investment in plantation development, irrigation facilities, mills construction, and direct land acquisition by investors etc.

    Synergy among stakeholders, regulators imperative

    Although Rabiu said his company has made significant progress and that BUA’s LASUCO Company will be the biggest integrated sugar plantation in Nigeria upon completion in 2020, the need for synergy among various stakeholders and building capacity among the industry regulators is not lost on him.

    For one, such synergy will ensure optimal and sustainable development of the value chain for sugar as a commodity right from production to the market. And the value chain, according to experts, begins with farmers, who must be provided with all the necessary inputs including the variety of sugarcane to plant to be able to deliver the quality of sugar required, and the right quantity per hectare.

    It will also encourage not just large scale sugar cane plantation, but also Small and Medium Enterprises (SME’s) to provide their own support to the sugar master plan. There will also be full involvement of members of host communities as farmers who will be involved in the sugar value chain instead of allowing them become a spanner in the works for investors.

    Synergy and collaboration will also ensure that sugarcane out grower farmers are encouraged and supported through the provision of credit facilities, procurement of necessary inputs and development of basic infrastructure.

    On the other hand, building the capacity of industry regulators will ensure that NSDC, working with relevant government agencies, walk the talk on halting the smuggling of sugar into the country. NSDC Executive Secretary Dr. Latif Busari stated earlier that smuggling was threatening the businesses of local cubing and packaging companies.

    Although Busari said then that the Council had evolved new strategies for effective implementation of the NSMP going forward, including increased inter-agency cooperation and sanctions for defaulters, such inter-agency cooperation has yet to halt the smuggling of sugar through the nation’s numerous porous borders.

    Sadly, the Federal Government has also not been able to enforce the ban on the importation of sugar to encourage operators in the sugar value chain.

    Push for sugar hubs, intervention fund

    At the STSN conference in Abuja, Busari told participants that the Council was committed to achieving self-reliance in sugar development as contained in the NSMP. However, Rabiu said the Federal Government, through the Council, can help by creating sugar hubs and sugar sector intervention fund to stimulate the sector.

  • Development of Audacity Skyline to begin October

    LandWey Group has concluded arrangements to begin the development of “The Audacity Skyline”, a 28-floor, coastal shoreline, mixed-use high rise, proposed to sit on 3,500 square metres inside Eko Atlantic City.

    Making this known in Lagos, during the week, CEO/Founder of LandWey Group, Olawale Ayilara, said the ground-breaking ceremony of The Audacity Skyline is scheduled to hold on  October 1, 2019.

    He said: “The Audacity Skyline is an architectural masterpiece that will feature tastefully finished beachfront residences and penthouses.

    Ayilara added that the monumental project will also feature commercial spaces, multi-level parking, designated elevators, personalised concierge services-all executed with best-in-class construction procedures and standards.

    “As a brand, we are ready and equipped to take on the project armed with our robust experience in construction, as well as our strong partnerships with world class architects, engineers and designers,” Ayilara said.

    Read Also: LandWey to bring high-rise mixed property to Eko Atlantic City

    He stated that LandWey has continued to break barriers and set the pace in the real estate sector within the past half a decade. “We’re excited to witness the greatest feat yet in this massive project. The ground-breaking ceremony of The Audacity Skyline is scheduled to hold on October 1, 2019,” he added.

    The CEO noted that the real estate sector in Lagos has witnessed a lot of growth and innovation within the past three to five years, with an abundance of investment options as well as creative marketing ideas.

    He, however, said one brand that actively contributes immensely to that growth is the LandWey Group, which boasts a growing asset base of real estate products that are tailored to the middle market, a niche that it has performed comfortably well in.

    Having conquered that range, the company is now poised to venture into high-end real estate investment products in the most befitting location – the prestigious Eko Atlantic.

  • Tolaram group launches fruit drink

    Tolaram Group has made its entry into the fruit drink market with the launch of “GoodLife Magik” fruit drink.

    Tolaram Group is one of the largest conglomerates in West Africa, which has over the years laid an indelible footprint especially in the Nigerian landscape with the introduction of numerous successful brands.

    The company’s latest brand, GoodLife Magik, is a healthy fruit drink that rides on three unique selling propositions of “Healthy, Nutritious and Great Taste”.

    The fruit drink is targeted at children who require all the beneficial nutrients they can get, to grow and function optimally.

    The brand comes in three variants: Orange, Watermelon & Mango and is fortified with key nutrients such as Vitamin-C and Glucose that improve immunity and give energy.

    The new product offers a great natural taste and comes in unique and attractive packaging.

    Read Also: Lush Hair partners NASHCO

    Tolaram Group Managing Director Chief Harkishin Aswani assured Nigerians that the company will continue to maintain the reputation of unwavering quality which the group has established over the years.

    “Tolaram Group is one of the largest manufacturers in Nigeria and the group has consistently produced strong household brands keeping in mind the consumers’ needs. Keeping the same philosophy of being consumer-centric, we hope that this new addition to the group will create another success story,” he said.

    Aswani, however, appealed to Nigerians to continue supporting the group as it grows, while assuring them of its commitment towards creating another Nigerian success story with the GoodLife Magik fruit drink brand.

    Wife of Ogun State Governor, Mrs. Bamidele Abiodun, who was special guest, praised the group for its efforts in putting smiles on the faces of Nigerians through the introduction of numerous brands which have over the years expanded so large and are actively topping the charts in their respective categories.

    “There is hardly anyone in this hall who has never consumed the Indomie brand,” she said, describing it as an evidence of a brand’s success.

    “It must also be mentioned that the Tolaram Group’s marketing doggedness and product innovation culture is quite admirable and strong, hence, I am confident that this latest addition; GoodLife Magik fruit drink will also grow big and perform well in the Nigerian market just like the rest of the brands from the group “ Bamidele said.

    Also speaking at the launch in Lagos, during the week, President, Nutrition Society of Nigeria, Dr. Bartholomew Brai, said: “We are excited to be a part of the launch of the GoodLife Magik, which has come with the proposition of healthy nutrition for Nigerians.

    “Nutrition Society of Nigeria has always been in support of the Tolaram group brands not because of their market dominance, but because they have consistently demonstrated interest towards the promotion of health.

    “We are always happy and open to support any brand that promises to promote healthy nutrition which is what the society largely stands for.”

    GoodLife Magik is being manufactured by Tolaram Nutri Beverages Ltd under the Tolaram Group. It is a healthy fruit drink which has just been launched into the Nigerian beverage segment.

  • Lori hires Nigerians to lead strategic expansion

    Nairobi-based Lori Systems, a Pan-African logistics coor-dination platform that seamlessly connects cargo owners to transportation, has appointed Uche Ogboi as the company’s Chief Operating Officer and Efayomi Carr as Head of Strategic Finance effective from July 29, 2019.

    Ogboi served as Principal, Investments, at EchoVC Partners, a Pan-Africa and tech-enabled venture capital firm, where she helped to grow the firm’s portfolio both across the region and globally.

    She has invested in companies across various sectors, including logistics, healthcare, fintech, telecoms and agriculture.

    She also worked at Citi for eight years as an Investment Banker, where she managed the bank’s Small and Medium Enterprise (SME) fund and was involved in structuring the bank’s agriculture lending initiative.

    “Lori embodies the spirit of opportunity on the continent for high-growth startups, and I am so impressed by the strong team and what the company has achieved in a short time,” Uche said.

    She added: “I am delighted to see where this challenge takes me and how we will grow this company together to drive value for customers and help Lori achieve its mission of lowering the cost of goods in Africa.”

    Carr joins Lori from Quona Capital, where he served as Senior Associate supporting investments across Africa. Before Quona, Efayomi worked with 8 Miles LLP, a London-based private equity firm that invests in Africa.

    He has also worked with the Boston Consulting Group in New York and Nigeria covering financial services, and at Jumia as the Head of Marketplace for Nigeria in Lagos.

     

     

  • Western Lotto diversifies, births lotto9ja

    In line with its determination to revolutionise the gaming industry in Nigeria and Africa, gaming services provider Western Lotto Nigeria Limited has expanded its brand portfolio with the launch of Lotto9ja Limited.

    Unveiling the new online gaming platform, www.lotto9ja.com.ng, in Lagos, last weekend, the General Manager, Western Lotto/lotto9ja, Mr. Tajudeen Usman, said Lotto9ja was the future of online gaming in Nigeria.

    “After a two-year bullish run along the mandatory brand growth curve, full of challenges, leanings and acquired assets, we are once again proud to announce that one more star has been added to our crown, www.lotto9ja.com.ng – the spirit of 9ja!,” he said.

    Usman said www.lotto9ja.com.ng was created and positioned to offer premium gaming services to Nigeria’s growing online gaming population.

    “Lotto9ja will leverage lessons learnt and consolidate on gains made. We now know that online gamers are loyal to the spirit of 9ja; they want rapid exciting games that deliver instant results and many winners. They want games they can call their own and bond with as their own,” he said.

    According to Usman, Lotto9ja took the best the world has to offer, infused them with all that is positive and great about 9ja. “Lotto9ja offers games that are proudly Nigerian in their appeal. So, every Nigerian, across cultures and demographics is factored in the new lotto9ja,” he added.

    He also said there is something for those who want rapid gratification, instant gratification, as well as something for the big-time Very Important Personalities (VIPs) who play big ball. “Whatever the inclination, Lotto9ja caters for it. Above all, the prize is guaranteed; winnings will be the hallmark of experiences at www.lotto9ja.com.ng,” Usman assured.

    Launched in 2017, Western Lotto Nigeria Limited was set out to revolutionise the gaming industry in Nigeria and Africa as a whole. Its mission was to change the gaming landscape in Nigeria through dedicated and proprietary technology.

    The platform rapidly became a phenomenon that inspired the establishment of several other competitive brands hence, Western Lotto expanded to create Western Bet, a sister company, which evolved into what is now known as Western Lotto and Bet.

    Usman said Western Lotto and Bet have become formidable house of two extraordinary brands that have defied their start-up status to effectively compete with others that have been in the market for decades before they were established.

    According to him, both brands are high-end technology-driven platforms with regional offices across Nigeria, with aspirations to expand to the West Coast of Africa, providing undiluted entertainment through lotteries and sports betting.

    Apart from operating the largest lottery and sports bet network in the country, both brands also embark on good causes as a responsible corporate citizen, maintain fair and transparent business transactions, and build trust.

    This they do by delivering on their brands’ promises and reward to winners. They also provide other sources of income for the entrepreneurs, middle and low income masses.

    The general manager, however, raised the alarm that while both brands worked assiduously on their games, their brand essence was being cloned by unscrupulous elements. “While we worked, we determined not to be distracted by such and remained focused on the finish line.

    “However, we demand that our rights and sovereignty as a brand must be respected across board. It is our expectation that the clones will vanish because the real deal is now available.

    We have every proprietary right to Lotto9ja. Lotto9ja Limited is registered with the Corporate Affairs Commission (CAC) and we have the Trade Mark to the name, design and logo as approved by the Federal Ministry of Trade and Investment,” he said.

    The Western lotto/lotto9ja boss stated that the company was at a loss as to why anyone would want to muzzle it and deprive it of the fruit of its labour and sweat, just because they have the wherewithal.

    “We believe that Nigeria is a society that is governed by law and all responsible citizens and corporate organisations are expected to be corporately governed. We rest on this as we work to provide an unparalleled gaming experience for our highly esteemed patrons,” he said.

  • UAC honours CFO

    United Africa Company of Nigeria (UACN) has honoured its immediate past Acting Chief Financial Officer (CFO) Mrs. Muhibat Abbas.

    At the event, which held in Lagos,  members of the company’s management, family members, friends and well-wishers poured encomiums on Abbas for her unrivalled service to the company and humanity.

    Abbas, who joined the firm in 1984 as a management trainee, worked across different units of the company, amassing wealth of experience as she held strategic positions to her credit.

    She served as Company Secretary, Group Treasurer and Chief Financial Officer, the last position she occupied before her retirement last April 30.

    Chairman of UACN Group, Mr. Dan Agbor, praised the virtues of Abbas. According to him, apart from the fact that she worked only in UAC for 35 years, she, however, stood tall among others in the company with her exceptional qualities.

    “Muhibat personifies integrity, hard work and humility,” Agbor said, as he wished her the best in her future endeavours.

    According to testimonies received across board, the retiree was an epitome of discipline, hard work, honesty, transparency and accountability, among other virtues.

    To many, she was a role model and a mentor, an unassuming fellow, humane, compassionate and caring to a fault.

    Abbas said: “I feel elated to leave with good health and wealth of experience. I have navigated across different positions in UAC including its Pension Fund for 12 years and they are happy with my performance.

    “What you see today is a reward of jobs well done. I remember being posted to some delicate areas because UAC needed someone who is not economical with the truth. I had no godfather when I joined UAC till date. It’s all about upholding your virtues,” she said.

     

     

     

     

     

  • NGO decries illegal migration

    A Non-Governmental Organisation (NGO), RARDUJA International, has organised a one-day workshop for nurses in Imo State, on the dangers of illegal migration.
    Speaking at the workshop, which held in Owerri, the state capital, RARDUJA founder Dr. Endy Duru said it was part of the organisation’s efforts to drive home the message against unplanned journey abroad to all.
    He said nurses were among those who hold the strong belief that life is rosy abroad and “have travelled without having the necessary information about the reality on ground”.
    Duru maintained that most of the nurses, who travelled out, ended up roaming the streets of Europe frustrated or engaging in social vices including prostitution.
    He stated that the workshop was to expose nurses and other medical practitioners, who intend travelling and working abroad, to the inherent dangers and risks of illegal migration, as well as equip them with the right information on how to secure legal jobs and have meaningful life over there.
    The NGO said it was committed to partnering the government and other stakeholders to end the suffering and risks most Nigerians go through in Europe as a result of unplanned journey abroad.
    Founder/Director, Students’ World Afrik (SWA), Olanike Adebayo, bemoaned the high number of frustrated and stranded Nigerians in Europe and called for caution against unplanned travels among Nigerians especially the nurses. .
    Adebayo, who runs a nursing recruitment agency, maintained that part of the mission of the agency was to partner other bodies to provide nurses who intend to migrate abroad the opportunity to do so legally.

    She guided the over 200 participants on the legal ways to travel to United Kingdom and the United States for jobs and permanent residency, pointing out that over 1,000 nurse across Africa have benefited through SWA in the past six months.

  • In the throes of tank farms

    Residents of Ijegun-Egba, which includes Satellite Town, in Amuwo Odofin area of Lagos State, are worried over the location of about 50 tank farms and container terminals in their community. These tank farms, operated by 13 marketing firms, they claimed, put their economic and social lives in danger. They are demanding that the tank farms be relocated and no licences issued for new ones. Assistant Editor CHIKODI OKEREOCHA reports.

    KUDAISI Ismaila Toyin, a resident of 12, Asaka Street, Otubu Estate, Satellite Town, Lagos, hardly sleeps with his eyes closed these days. To him, and other residents of the community, the fear of the  fleet of tankers and trailers laden with petroleum products, daily moving in and out of the tank farms in the area is, perhaps, the beginning of wisdom.

    The Nation learnt that about 400 petrol tankers laden with products are trapped daily on a single narrow road that leads to the petroleum product facility, where about 50 tank farms, operated by 13 marketing companies, are said to have pushed members of the communities into the panic mode. Toyin, lawyer, said residents of the densely-populated area now live in constant fear.

    Toyin told The Nation that the fear of a possible fire forced him to relocate his family from the community. He said although his law firm is still on Marwa Road, Ijegun-Egba, Satellite Town, he is still in jitters because most times petrol tankers plying the bumpy road leak fuel throwing the neighbourhood into panic. To him, conventional wisdom dictated that he should relocate his family to avoid the unthinkable or at least, minimise his losses in the event of fire.

    Olayinka Adeniyi, who resides in Nigerian General Insurance Housing Estate, also in Satellite Town, said the community which stretches from Alakija to Abule-Ado on Badagry Expressway to the waterside and beyond, has been like an area under siege because of the movement of the petrol tankers and trailers.

    According to him, the traffic of trailers often cause gridlock right from the expressway to Old Ojo Road from both Abule-Ado and Alakija through Finiger. Also, the dilapidated and narrow Marwa Road, down to waterside and the depots has added to the residents’ misery. “Some of us sleep on the road because we are usually trapped in the traffic when coming back from work,” Adeniyi lamented.

    He warned that “with a fleet of tankers moving bumper to bumper on a road originally not built to accommodate such heavy duty trucks, we’re courting disaster.” He, therefore, called on the state and Federal Government to quickly move in and sanitise the area, first by constructing speed breakers to stop aggressive and reckless drivers from hitting innocent school children and other road users.

    Secondly, Adeniyi said the trucks should either be stopped or regulated to discourage them from moving in the morning hours when children are going to school and in the evening when people are returning from work. He also said the government should convert the Mumuni Adio Badmus Road (Marwa Road) to a dual carriage and speed up the construction of alternative roads on either side of Marwa Road.

    Satellite Town Forum Chairman, Mr. Governor Imitini, said persistent outcry by residents that the activities of the tank farms and the bonded terminals in the area posed serious dangers has failed to hit the right chord in the ears of relevant authorities. He said the forum had written several letters to draw the state’s and Federal Government’s attention  to the residents’ plights, yet succor had yet to come their way.

    Copies of the letters, which he made available to The Nation, indicated that the Zonal Operations Controller, Department of Petroleum Resources (DPR); Permanent Secretary, Federal Ministry of Environment and Managing Director, Nigerian Ports Authority (NPA) are aware that Ijegun-Egba/Satellite Town residents are sitting on a keg of gun powder because of the deplorable state of infrastructure in the area.

    Imitini also showed two separate letters by the Forum to President Muhammadu Buhari and the former Lagos State governor, Akinwunmi Ambode. The letters, which bore the same title: “Relocation of Tank Farms and Container Terminals/Bonded Warehouses From Satellite Town, Lagos, A High Density Residential Area: An SOS”, also drew the attention of the two chief executives to the numerous dangers the activities of  the petroleum products firms posed to residents.

    The Forum’s chairman told The nation, for instance, that the tank farms were built on flood/drainage channels, adding that by blocking the natural flood channels, the flood water is forced back into the several estates, streets and houses in the community, causing several residential buildings in the area to be submerged by flood, especially when it rains. According to him, not a few landlords and tenants have been forced to abandon their homes.

    For those who abandoned their homes, including Mr. Toyin, the threat of an impending outbreak of an epidemic caused by environmental pollution is real. The alleged waste dumps by the tank farms, oil spills on stagnant polluted water, open defecation by truck drivers, and dampness caused by perennial flooding, among others, have exacerbated fears of outbreak of an epidemic.

    Several businesses are also said to have closed shop because of the lull in social and economic activities caused by flooding. Also hit are those who manage schools for children, women engaged in market-related activities, as well as religious centres. At the last count, there are about 300 worship centres in Ijegun/Satellite Town. And each time it rains, worshipers are forced to wade through murky, flooded streets.

    Imitini lamented that all entreaties to get the owners of the tank farms to open up the blocked channels have fallen on deaf ears. A resident of Devine Estate, Satellite Town, Mr. Ndubuisi Okafor, aligned with him, pointing out that the concern and frustration of the community over the deplorable infrastructure in the area stemmed from the fact that both the operators and the government are not addressing the issues raised, despite several letters written to them.

    “Government’s constitutional duty is to protect the people, but the reverse is the case here; government is aligning with the private sector to undermine the people. It’s sad and unfortunate,” Ndubuisi said, calling on DPR and Ministry of Environment to immediately re-assess the Environmental Impact Assessment (EIA) of the area before the tank farms start operations.

    Mr. Toyin specifically accused the tank farms owners of fraudulently procuring approvals from DPR, without proper EIA. He said the community suspects that the DPR never visited the site before issuing licenses to the tank farms. This, he alleged, explains why the 13 firms operating the over 50 tank farms in the area had no functional fire station and recovery towing equipment, for instance.

    While also alleging that the operators are building new terminals and expanding existing ones, despite repeated outcries by residents, the aggrieved residents called on DPR to immediately halt the issuance of licenses for new tank farms in Ijegun-Egba/Satellite Town. They also want the government through DPR to reduce the number of tank farms in the area, while efforts should be made to ultimately relocate them.

    Other demands of the community include the relocation of the Bonded Terminal at the ever busy Alakija Bus Stop, which is the busiest bus stop in Satellite Town; cancellation of container terminal project at Zone 2 Liverpool Estate, and construction of temporary tanker and trailer park.

    They are also demanding the provision of safety facilities such as well-equipped fire service and provision of towing equipment that can easily remove broken down tankers from the roads. They also want Old Ojo Road, which has been dilapidated, to be reconstructed and large underground culverts constructed across the depot road for onward routing to the sea.

     

    DPR’s position

    DPR has, however, faulted some of the community’s claims. The petroleum industry regulator said, for instance, that contrary to the claim that licenses are being issued for new tank farms, the last time it issued such approval for a tank farm in Satellite Town area was in 2016.

    The Media Manager for the Department, Mr. Paul Osu, also clarified that before any depot approval is given by DPR, the application by the prospective depot owner must be supported by approvals from other government agencies such as the Nigeria Police, Fire Service, the NPA or Nigeria Inland Waterways Authority (NIWA), for coastal depots; Federal Ministry of Works and Housing, for federal lands; state government planning authorities.

    His words: “We regulate the oil and gas industry across all the streams: downstream, mid-stream and upstream. But for you to set up a petroleum product outlet like the one we are talking about, the parties involved in the approval process include Fire Service Department, that this will not constitute fire hazard; Police, that it will not constitute traffic nuisance; state Ministry of Physical Planning, that the place is suitable to site that facility, be it depot, or petrol station.

    “It is when you have all these approvals that you now come to DPR for it to now do the technical audit of your facility and now issue license if you are technically compliant. These approvals by other agencies are in addition to independent third party studies and investigations on environmental viability and safety of operations of the deport to be so established.”

    While clarifying that locating any petroleum product facility in any area in Nigeria is not the sole responsibility of DPR, but a combination of agencies, Mr. Osu also said the community’s claim of lack of a fire station in the area is not true. His words: “Any depot or facility of that nature must have a fire fighting mechanism. And the operators all pooled resources together to build one.

    “I think it was last year or so when there was a fire incident in one of the depots. It was their fire-fighting equipment that was used to arrest that issue. There is no facility of that magnitude without a fire station. The companies have robust fire-fighting equipment.”

    Mr. Osu also clarified that DPR has representatives in every deport. “If you go to any deport, you must see a DPR representative there and our job is to provide the regulatory oversight there to make sure that things are done accordingly. And we do routine inspection. Almost on weekly basis, our staff visits all the petroleum facilities; sometimes we go with the media,” he said.

    Although, he admitted that the state of infrastructure in the area is deplorable, the DPR spokesman, however, said it is not the responsibility of DPR, but that of the state and Federal Governments. Even at that, he said both levels of government are doing something about the provision of infrastructure in order to give the residents succour.

    While reiterating that no new facility has been licensed in Satellite Town since 2016, Mr. Osu said the DPR visited the site before approvals were issued, as part of its regulatory oversight. “You must technically audit their facilities before you give your nod or approval,” he told The Nation.