The Nation Newspaper

Category: Industry

  • ‘Mining sector must leverage technology for growth’

    ‘Mining sector must leverage technology for growth’

    By Ambrose Nnaji

    The Nigeria Extractive Industries Transparency Initiative (NEITI) has said leveraging technology and innovation will turn some of the challenges imposed by the COVID-19 global pandemic into opportunities.

    It has recommended that all mining and extractive companies embraced the global Extractive Industries Transparent Initiative (EITI) in their countries especially at this time of pandemic.

    Its Executive Secretary Dr. Orji Ogbonnaya Orji said in NEITI like many other Federal Government  agencies, ICT has become an indispensable tool in arranging meetings, stakeholders’ engagements, revenues reconciliation and validation, information and data generation as well as in overall organisational management.

    Orji noted that NEITI is now a digital agency more than ever before. According to him, series of meetings are now held virtually with the extractive industries transparent initiative member countries around the world and with the agency’s national partners, adding that for instance, with technology, the NEITI–Nigeria National Petroleum Corporation (NNPC) joint committee on remediation concluded its assignment and the report released online.

    He said the agency’s independent industry reports are ongoing and on time. It has also reached appreciable stages in beneficial ownership, contract transparency, commodity trading, open data and other emerging issues in EITI.

    NEITI has equally carried out and launched quite a number of research publications during this pandemic, adding for the agency, no obstacle is a barrier and in every challenge, there is an opportunity.

    He stressed the need for big companies and multi-nationals in the mining industry to support the on-going national and global efforts to combat the pandemic. This, he said, could be through donations and grants to support production, distribution and acquisition of vaccines, medical equipment other forms of resource mobilisation towards cure, management and treatment of victims.

    “NEITI is aware that some companies are already supporting but more efforts are required at national, regional and global levels until COVID-19 is defeated,” he said.

    Orji agreed that the COVID-19 pandemic is a global public health crisis that has created devastating social, economic and political dislocations. According to him, the mining sector like other sectors is affected in several areas. While for some minerals it was a sweet tale, for others it was a nightmare. For example, the prices and demand for gold during this period soared, hitting about 28per cent increases in 2020.

    He observed that in contrast to gold, majority of other minerals like crude, coal and others, suffered sharp decline in demand due to the lockdown across the world which  slowed down economic activities resulting in crash in prices.

  • Fears, expectations of real sector operators

    Fears, expectations of real sector operators

    Already buffeted by myriad challenges caused by the prevailing harsh operating environment, there are fears that the resurgence of the COVID-19 pandemic and the economic recession may have set the stage for more turbulence in the real sector of the economy this year. Operators and experts, however, say that putting in place robust policies and comprehensive support systems to encourage scale and lower cost of production could wade off the impending turmoil. Assistant Editor CHIKODI OKEREOCHA looks at some of the issues that will shape the real sector, performance in 2021.

     

     

    IT took outcry by members of the Organised Private Sector (OPS), including Manufacturers Association of Nigeria (MAN), Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA), Lagos Chamber of Commerce and Industry (LCCI), and Nigerians generally, to force the hand of the Federal Government to put the implementation of last week’s upward adjustment of electricity tariff on hold.

    This followed Power Minister Mamman Saleh’s Thursday directive to the National Electricity Regulatory Commission (NERC) to inform the Electricity Distribution Companies (DisCos) to suspend the implementation of the tariff review pending the conclusion of the Joint Ad-Hoc Committee’s work at the end of January 2021.

    However, while the Federal Government may have bowed to pressure and pulled the breaks on the implementation of the vexatious and widely condemned upward adjustment of electricity tariff, the tariff hike was seen as foretaste of the challenging times that lie ahead for real sector operators in 2021.

    For one, the upward review of tariff between N2 per kilowatt and N4 per kilowatt was to have taken effect from January 1, 2021, barely three months after the NERC increased tariffs on September 1, 2020. Also, the reversal did not foreclose another tariff hike. In fact, Saleh said the new electricity tariff would take effect at the end of this month after the end of talks between the Federal Government and Labour.

    What this means is that members of the OPS must prepare for an increase in electricity tariff and its resultant increase in cost of production. This reality was not lost on them. This was why they were quite vociferous in condemning the tariff hike, describing it as “outrageous,”  “ill-timed,” “not manufacturing friendly,” and calling for its suspension.

    The Director-General of MAN, Mr. Segun Ajayi-Kadir, put the grouse of manufacturers over the tariff increase in perspective. He said, for instance, that inadequate electricity supply topped the list of challenges confronting the manufacturing sector and has been largely responsible for its lackluster performance for some decades now.

    According to him, electricity-related expenses of a manufacturing concern constitute about 40 per cent of the production overhead in some sub- sectors. He said with the sector employing over five million workers, directly and indirectly, and contributing 8.93 per cent to the Gross Domestic Product (GDP), the electricity tariff increase was not growth friendly and was antithetical to competitiveness.

    The MAN DG added that the suspended tariff increase came at the commencement of the African Continental Free Trade Agreement (AfCFTA) and barely three months after a huge increment was imposed on electricity consumers on September 1, 2020. “It (tariff hike) appears to be insensitive to the prevailing precarious situation of the sector. The increase is coming at a wrong time and would clearly reverse the little gains in the recent past.

    “This is against the background of prevailing harsh operating environment, the increasing burden of taxes, the enormous spending on self-generated electricity up to the tune of N70 billion (excluding hundreds of billions of naira spent on settling monthly electricity bills) and the ailing state of a sector that is just recovering from a lockdown occasioned by the ravaging COVID-19 pandemic,” he lamented.

    Ajayi-Kadir expressed worries that the recent increase in price of electricity will have overwhelming negative impact on the economy, especially the manufacturing sector. The trickle-down effects, he said, include decrease in foreign exchange earnings from the sector, as high cost of production feeds into export commodity prices.

    He listed other effects to include reduction in government tax revenue occasioned by drop in sales, as a lesser quantum of disposable income will be available to purchase manufactured goods; reduction in capacity utilisation; further decline in GDP, large scale unemployment across the 76 manufacturing sub-sectors and possible increase in crime rate.

    The MAN boss also expressed fears that the tariff increase will trigger reverse-multiplier effect as cost of production escalates and the headways already made in the sector is eroded.

    “This is because most of MAN-member companies are classified in the ‘D’ categorisation (D1, D2 and D3) where tariff is the highest.

    “Manufacturing sub-sectoral groups with higher energy consumption which include Basic Metal, Iron and Steel and Fabricated Metal Products; Domestic & Industrial, Rubber and Foam; Non-Metallic Mineral Product; and Chemical & Pharmaceuticals sectoral groups would be worse-off,” he explained.

    Ajayi-Kadir pointed out that the manufacturing sector, as the engine of sustainable growth, was still struggling with the debilitating impact of the COVID-19 pandemic and was yet to recuperate.

    He, therefore, said operators expect that government will continue to provide stimulus packages that will aid the sector’s recovery and avert the shutdown of factories nationwide.

    “We expect that NERC, as the regulator, will ensure improved electricity generation, transmission and distribution that will lead to adequate and reliable electricity supply in the country rather than squeezing the mere 4000MW to meet all revenue needs of key sharing stakeholders.

    “We equally expect NERC to make regulations that will ensure that 80 per cent of consumers are metered to ensure consumption reflective payment; aid inflow of investment in the energy industry in order to increase generation capacities and usher in large scale production of electricity,” he said, insisting: “The recent absurd tariff increase does not support these desirable propositions.”

     

    Heartache over COVID-19, economic recession

    However, inadequate electricity supply and incessant increases in tariff without a commensurate improvement in generation, transmission and distribution is not the only problem that will confront real sector operators this year. This is so considering the fragile nature of the economy, which slid into a recession in 2020.

    Nigeria slid into its worst economic recession in over three decades, recording a GDP contraction of 3.62 per cent in the third quarter of 2020, according to the National Bureau of Statistics (NBS). It was the second consecutive quarterly GDP decline since the recession of 2016.The cumulative GDP for the first nine months of 2020 stood at -2.48 per cent.

    The collapse in oil prices coupled with the COVID-19 pandemic plunged the Nigerian economy into a severe economic recession, the worst since the 1980s. Now, there has been a resurgence of the deadly virus across the globe.

    Although the authorities have ruled out the possibility of another lockdown to contain the second wave of the virus, there are fears that its rapid spread may force a rethink in favour of a lockdown. This could spell trouble for real sector operators if, and when it happens.

    Given the challenging economic conditions, operators and experts say that key policy reforms are imperative to support and sustain macroeconomic stability.These include a foreign exchange management framework that reflects the market fundamentals and the acceleration of the economic diversification agenda.

    Others are the normalisation of Lagos ports environment, the oil and gas sector reform, especially the petroleum industry bill; reduction in the cost of governance at all levels; improvements in the domestic revenue (particularly independent revenue) to reduce volatilities of government revenue, among others.

    The Director-General, Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA), Ambassador Ayo Olukanni, said, for instance, that in the  reality of COVID-19 and its impact on the  economy, manifesting as economic recession, a continuous increase in the cost of production (which would be the result of the periodical electricity tariff increases) will impede the growth of the real sector.

    “Business concerns will attempt to pass-on some of these costs to consumers by increasing their prices, demand would drop, and the vicious-cycle will continue,” he said.

    The NACCIMA DG, therefore, said: “Our counsel to the government remains the implementation of policies (even if it is in the short term) that increase the productive capacity of the real sector, as well as the disposable income of the general populace, as this is the time-tested approach to exiting a recession.”

    Ajayi-Kadir also said it is imperative that the performance of the manufacturing sector is enhanced through a pro-manufacturing policy that will encourage scale and lower unit cost of production rather that throwing fiery darts that will worsen its performance this year.

     

    AfCFTA opens window of opportunity for operators

    However, as dicey as the situation appears to be for the real sector, the commencement of the implementation of the African Continental Free Trade Area (AfCFTA) on January 1, 2021, promises to be a game-changer. With Nigeria’s ratification of the trade liberalisation deal last November, the belief is that the stage is set for the economy’s enhanced competitiveness.

    The implementation of the AfCFTA Agreement will form a $3.4 trillion economic bloc with 1.3 billion people across the continent and is expected to probably double intra-Africa trade through better harmonisation and coordination of trade liberalisation.

    According to the African Union (AU), the AfCFTA will offer the continent an opportunity to reconfigure its supply chains, reduce reliance on others and speed up the establishment of regional value chains which will boost intra-Africa trade.

    However, Nigeria, Africa’s largest and most populous economy is tipped to benefit more from the free trade deal given its large market and population.

     

     

  • Woes, hopes of real sector operators

    Woes, hopes of real sector operators

    Operators  in the real sector struggled, albeit unsuccessfully, to yank off the toga of “economy’s weeping sector”. Rather than breathe any sigh of relief, all the challenges that have been hurting operators’competitiveness and profitability exacerbated in 2020, adding to their woes. But there are signs of a possible rebound on the horizon. Assistant Editor CHIKODI OKEREOCHA looks at  highlights that shaped economy’s growth engine in the year.

    From their age-long outcry over dearth of infrastructure, particularly the lack of access to uninterrupted electricity supply to a harsh business environment, the double shock of the COVID-19 pandemic and the crash in oil prices at the international market beginning from early 2020 literally put the manufacturing sector on life support, requiring urgent policy ventilator to keep the sector alive.

    Indeed, lack of access to uninterrupted electricity supply, despite the privatisation of the power sector in 2013 to guarantee improved electricity supply, remained a bone in the neck of real sector operators in the year under review. This was because the use of alternative power supply via diesel generators significantly added to operators’ already high cost of production, which invariably, was passed on to consumers. Operators who could not bear the high production cost were forced to either scale down operation or close shop.

    Cost burden

    As if to add to their woes, the Federal Government increased electricity tariffon September 1, 2020 thereby doing away with payment of subsidy, which, according to the Federal Government, had become unsustainable and should be removed.

    The leadership of the Organised Private Sector of Nigeria (OPSN), however, agreed with the Federal Government. The OPSN admitted that if subsidy was allowed to continue, “The electricity industry will collapse, as the government no longer has the fiscal capacity to sustain the increasing subsidy level and at the same time finance the capital investment necessary to extend electricity supply to the over 90 million Nigerians who lack access to electricity.”

    The OPSN also said it was, therefore, necessary to create conditions that will attract private investment in the Nigerian Electricity Supply Industry (NESI) for which cost reflective tariff was inevitable.”It is, however, imperative that the confidence of electricity consumers must be inspired and they must be assured that the new tariff regime will lead to significant and sustained improvement in the quantity and quality of electricity supply,” the OPSN said

    The group also insisted: “The new tariff structure must be transparent, charges must be fair and consumers must be able to verify that they are paying only for what they consume.”

    However, the crisis in the electricity supply industry was just one out of other infrastructural issues real sector operators had to contend with in 2020. Bad road and rail network, particularly in and around the nation’s sea ports; poor storage facilities, among others were also pain the neck of operators particularly manufacturers. Many of them had to content with delay in the movement of cargo to and fro the sea ports; others bore the burden of huge demurrage caused by bottlenecks around clearance of cargo at the ports.

    However, while operators were still struggling to get round these issues, the outbreak of the COVID-19 pandemic and the collapse in oil prices were no doubt, bitter pills to swallow. For instance, the global scale and ferociousness of the COVID-19 outbreak, which started in December 2019, in Wuhan, Central China, before it eventually found its way into Nigeria on February 27, 2020, left manufacturers dazed and battered. This was because of the disruptions in the global supply chain.

    It was easy to see why this was so. China, which was the epicenter of the deadly virus, at least, on the onset, is the second largest economy in the world and a major supplier of inputs for manufacturing companies around the world, including Nigeria. The Director General of Lagos Chamber of Commerce and Industry (LCCI), Mr. Muda Yusuf, put the impact of the disruption in the global supply chain as it affects Nigeria in perspective.

    “Many manufacturers and service providers in Nigeria are already experiencing acute shortage of raw materials and intermediate inputs. This has implications for capacity utilisation, employment generation [and retention] and adequacy of products’ supply to the domestic market. There is also an implication for inflation and the pressures are already mounting,” Yusuf said. It could not have been otherwise as China represents Nigeria’s biggest trading partner, with about 19 per cent of its imports sourced from the Asian giant.

    Following Nigeria’s first confirmed COVID-19 case in late February, lockdowns were imposed from late March until early May in the main cities – economic hub Lagos and the capital, Abuja-to contain the spread of the virus. Lockdowns were also imposed in some of the states and a ban was placed on interstate travel.

    As if the prolonged disruption in economic activities caused by the pandemic was not enough heartache for real sector operators, the collapse of oil prices and the reduction in demand for Nigeria’s oil aggravated the fiscal woes of Africa’s top oil producer and exporter, forcing its economic managers to review the 2020 budget downward, for instance.

    New recession

    Amid the crisis in the oil sector, the economy also slipped into a recession after its Gross Domestic Product (GDP) contracted for the second consecutive quarter, according to the National Bureau of Statistics (NBS). “Q3 2020 real GDP contracted for second consecutive quarter by -3.62 per cent,” Statistician-General Yemi Kale  said, adding: “Cumulative GDP for the first nine months of 2020, therefore, stood at -2.48 percent.”

    In the year under review, the Federal Government also increased the Value Added Tax (VAT) from five per cent to 7.2 per cent, a move which did not go down well with manufacturers. The argued, for instance, that the VAT increase will spur spontaneous increase in inflation rate occasioned by increased prices of goods and services.

    Manufacturers argued that although, it appreciates the need for the government to generate more revenue to fund its developmental initiatives amidst declining revenue from oil, increasing the VAT was inappropriate, as the increase could send a wrong signal that the government was insensitive to the plight of the low- and middle-income earners, who are clearly in the majority.

    Some light at the end the tunnel

    But it was not entirely a tale of woes for real sector operators. There were a number of signals that the sector could bounce back in the coming year. For instance, the Federal Government announced the reopening of four of the nation’s land borders after closing them for more than a year,

    Recall that the Federal Government had in October, last year, ordered the closure of the Nigerian borders, banning legitimate and illegitimate movement of goods in and out of the country, ostensibly to curb smuggling.

    But, real sector operators especially manufacturers, have been clamouring for the reopening of the borders, with Manufacturers Association of Nigeria (MAN) Acting Director-General Mr. Ambrose Oruche arguing that the closure of the borders had become unsustainable.

    However, following persistent calls for a review of the policy on border closure, President Muhammadu Buhari approved the immediate reopening of four land borders.

    Another development that gladdened the hearts of real sector operators and perhaps, also set the stage for the economy’s enhanced competitiveness was the Wednesday, Nov.11, 2020 ratification of the African Continental Free Trade Area (AfCFTA) less than a month before the December 5, 2020 deadline to do so.

    The implementation of the AfCFTA Agreement begins on January 1, 2021. Its implementation will form a $3.4 trillion economic bloc with 1.3 billion people across the continent and is expected to probably double intra-Africa trade through better harmonisation and coordination of trade liberalisation.

    According to the African Union (AU), the AfCFTA will offer the continent an opportunity to reconfigure its supply chains, reduce reliance on others and speed up the establishment of regional value chains which will boost intra-Africa trade.

    However, Nigeria, Africa’s largest and most populous economy is tipped to benefit more from the free trade deal.

  • ODUACCIMA elects new leaders, state vision            

    ODUACCIMA elects new leaders, state vision            

    By Charles Okonji

    The Odua’s Chambers of Commerce, Industry, Mines and Agriculture (ODUACCIMA) recently elected a new set of leaders to pilot the affairs of the chamber for the next two years.

    At the end of the exercise, Prince Kayode Adeyëmi of Osun Chamber of Commerce and Industry emerged as the body’s new President.

    The position of the chamber’s 1st Deputy is President is Dr. Oluwatoyin Ojelabi, while the 2nd Deputy President went to Alhaji Wasiu Olaleye of Ogun Chamber of Commerce and Industry.

    Mrs. Dupe Olakunle of Ondo Chamber of Commerce and Industry emerged as the body’s Treasurer.

    The position of Deputy Treasurer went to Alhaji Olufemi Hassan of Ekiti Chamber of Commerce and Industry.

    The Lagos Chamber of Commerce and Industry would fill the position of the body’s Auditor.

    While the chamber’s immediate past President Chief Kola Akosile would serve as the body’s ex-offico.

    In his acceptance speech, the new President Prince Kayode Adeyëmi promised to build on the good legacies of the former leaders, thanking members for working tirelessly to keep the South West Organised Private Sector very strong.

    The ODUACCIMA boss promised to work with other leaders in the region to help revive the moribund industries in the region, adding that he will bring new innovation to the region business community.

    Adeyëmi said his administration will do all within their powers to take the business sector to the next level, promising to announce the date for the investiture of the new executive by early January of 2021.

    In his remarks , the former President Chief Kola Akosile thanked all the past leaders and his executive for their support in helping him to lay a sound foundation for the chamber.

    Akosile pledged to support the new administration to enable them achieve their vision for the business community in the South West region.

    The Director General Mr David Awotipe, noted that the fisire of the Secretariat is to assist the new executive deliver on their mandate to the business community of the region .

    Present at the occasion were the were Otunba Dele Oye, the 2nd Deputy President of the National Association of Chambers of Commerce, Industry, Mines and Agriculture ( NACCIMA) and a host of other Captains of Industry of the Organised Private Sector ( OPS) from the south West Region and a host of other dignitaries.

  • 2023: Youth group declare support for Yahaya Bello

    2023: Youth group declare support for Yahaya Bello

    Our Reporter

    A group of young Nigerians under the auspices of GYB2PYB Youth Support has declared support for the presidential ambition of Kogi State Governor, Yahaya Bello.

    Bello recently indicated his intention to join politicians seeking to succeed President Muhammadu Buhari in 2023.

    The group held its first virtual meeting on Saturday, December 19, 2020, where its Director-General, Amb Nihi Oladele, briefed the members GYB2PYB’s campaign progress.

    Oladele said: “Youths and women constitute over 75 per cent of a total population of over 200 million Nigerians but, unfortunately, less than 1 per cent of Nigerian youths are currently included, appointed or elected into leadership positions in the country.

    “A young person who is already in the political system/power block with track records of youth engagement, inclusion in governance and appointment is needed, come 2023, as Nigerian President.”

    “A youthful, highly inclined, and passion-driven Politician like Governor Yahaya Bello (GYB) is all Nigeria needs for a true transformation of our dear country because a focused and energetic product such as GYB will make good impacts, especially in youths and women inclusion in governance.”

    He also informed the group of a newly acquired six bedroom flat headquarters in Abuja and a convenient date for commissioning the office and inauguration of National Team/Zonal Coordinators, and 36 State Coordinators is to be communicated to the house as soon as possible.

    He compiled and presented the list of the 31 State Coordinators which was adopted by the members present while stepping down the list of National Team/Zonal Coordinators for more consultation.

    Suggestions raised at the meeting include: getting a suitable slogan to match the campaign, networking through established Control Rooms (Secretariat) across the 774 LG Areas, constant communication between top hierarchy and downs, effective monitoring of activities at all levels, giving priority to both awareness through media and practical field work by penetrating the grassroots, opening a website and strategic plan for social media engagement, participation in registering new members and revalidation of members of APC starting January 2021 (only issues related to the advancement of this great project be posted here).

    In conclusion, the group commended Bello for not just appointing youths and surpassing the 35 per cent affirmative action for women in government in the state but dedicating his government to them (the youths) in Kogi State in particular and Nigeria in general.

  • HCPAN honors PharmAccess Nigeria with Corporate Partnership Award

    HCPAN honors PharmAccess Nigeria with Corporate Partnership Award

    Our Reporter

    Healthcare Provider Association Nigeria (HCPAN) organized her 16th Scientific Conference and Annual General Meeting which hosted the Hon Minister of State for Health, Dr Olorunimbe Mamora and several healthcare organizations across the country.

    The event which was themed “Emerging Post-Covid Economic Challenge in the Health Sector & Management Strategies,” saw PharmAccess Foundation honored with the Corporate Partnership Award for her contributions towards building the healthcare sector of the country.

    The conference was declared opened by the Minister, Dr Olorunimbe Mamora, and saw several presentations from several healthcare organizations and NGOs. Whilst speaking, the Minister commended the leadership of the association and further stressed the importance of investment in the healthcare sector and the government’s commitment to it.

    He said: “The recent COVID-19 experience brought to the fore the fact that it is more than necessary for quality healthcare to be invested in. Investing in Healthcare shouldn’t be a flash in the pan, but it should be something that is consistent. That is why the Federal, state and local government is prioritising healthcare investments.”

    He went on to say that the business of improving the healthcare system cannot be done by government alone, thereby commending HCPAN leadership for their efforts in providing healthcare. He mentioned that his ministry will be sure to implement whatever positive deliberations and solutions that the conference comes up with.

    Also speaking, the President of HCPAN, Dr Adeyeye Arigbabuwo, thanked the minister for gracing the event and for reassuring of the government’s support for the healthcare sector. He said the occasion was organized to honour leading health care providers across the country who have contributed immensely to the stability and growth of the Nigeria Health Insurance industry.

    The President went on to commend PharmAccess Foundation while presenting its leadership the award for excellent corporate partnership. He said the NGO stands as an example in their passion, commitment, professionalism as well as their expertise in the healthcare sector.

    Receiving the award on behalf of the Country Director, Ms. Njide Ndili, PharmAccess’ Director, Advocacy and Program Development, Dr Olamide Okulaja thanked HCPAN and pledged the organization’s continued support for improving the healthcare system in the country.

    He said: “For us, our commitment to quality healthcare is steadfast because of the lives and people we are privileged to touch. This is the sole motivation with which we give our all and drives us to do more. We appreciate this recognition very much and it will only serve as more motivation for us to do our part to the best of our abilities, in creating a better healthcare sector.”

    READ ALSO: PSI calls for improved access to quality public healthcare for IDPs

    Speaking about some of the peculiar changes caused by the pandemic during his presentation, The Post COVID Economy and Delivery of Healthcare to all Nigerians, he said: “The overtone window has greatly expanded and innovations such as Telemedicine which was now previously accepted has now witnessed great adoption as an acceptable way of delivering healthcare in Nigeria because of the pandemic.

    Therefore, in order to build a resilient health system that is ready for any future outbreaks, all stakeholders most especially the government, must prioritize the adoption of innovations in healthcare and engage the private sector in the definition of strategies in implementing healthcare solutions especially in areas where gaps exist.

     

  • Exchange rates pushed inflation to double digits – MAN

    Exchange rates pushed inflation to double digits – MAN

    By Charles Okonji

    The Manufacturers Association of Nigeria (MAN) has raised an alarm that the double inflation digits was occasioned by the upsurge of the exchange rates.

    Engr. Frank IKE Onyebu, Chairman, MAN, Apapa Branch who stated this during the association’s Annual General Meeting, (AGM) recently in Lagos noted that foreign exchange suddenly became very scarce with most manufacturers unable to procure vital raw materials.

    Onyebu said “Exchange rate shot up, driving inflation to double digits. At the same time consumer demands plummeted. To make matters worse, the government, following similar reactions from governments around the world, imposed a lock-down that affected most of the industrial regions of the country.”

    He pointed out that companies, which had been struggling pre-pandemic, had to face the fight for survival, stressing that many companies were forced to lay off staff in order to remain afloat, which compounded the already precarious unemployment situation.

    The Chairman said, “The economic environment of the nation became hostile to business even before the coronavirus pandemic. The manufacturing sector was particularly badly hit because of the familiar, oft-repeated challenges of infrastructural deficiency and other structural problems.

    “These challenges became more acute with the onset of the coronavirus pandemic. Oil price volatility, occasioned by the sharp decline in demand following a global lock-down that resulted from the pandemic, only compounded the situation. Nigeria, being a mono-product economy with almost complete dependency on crude oil for its foreign exchange earnings, was clearly in trouble.”

    He stressed that economic activities within Apapa and Amuwo-Odofin industrial area were hampered by decaying, or in some cases complete absence of infrastructure: epileptic power supply, deteriorating roads, inefficient port operations, amongst others.

    He said, “The Zone has advocated and achieved the following with water regulatory commission: The year 2018-2019 Bills are hereby waived, the concession of 79 percent on N0.1324 per cubic meters rate for 2020 Water Abstraction charges and beyond is accepted, metering of Consumer facilities to determine actual abstraction is on-going as to who is to provide the meter. All consumers extracting for non-commercial purposes and those extracting less than 10,000 cubic litres per day are excluded.

    “The branch advocated against the resurgence of multiple taxations payable to the State and Local Governments, re-construction and maintenance of roads within the Mile 2, Coconut roads, the Tin-can Island Ports and Apapa Ports, the re-construction of Point Roads to Apapa Wharf, the Liver Pool to Tin-Can Island roads amongst others. The branch advocated for the construction of call up parks for truckers and tankers, the installation of functional scanners at the ports, the strengthening of relationships with relevant multilateral agencies to attract support and linkages, and for the reversal of the Land Use Charge to Pre-2018 and government yielded to considering the reform of the Land Use Charge in 2020.”

    READ ALSO: Manufacturers donate N8b cash, N300m palliatives

    In his presentation, Mazi Sam Ohuabunwa, past Chairman, MAN, Ikeja, who is also past Chairman, NESG, urged the Federal Government to formulate policies that is capable of promoting manufacturing, advising MAN members to be export-focused for the country to be able to recover quickly from the prevailing recession and to record economic growth.

    He said, “Many companies have shut their doors and many others are gasping for breath! Many people have lost their jobs, and many have been pushed into poverty. The Nigerian manufacturing sector has long been in dire straits even before the advent of COVID-19 and naturally became a major victim because of previous “co-morbidities”. I do not need to rehearse the many woes that the Nigerian real sector has faced over the years because that would be boring to this audience.

    “Inflation has climbed to 14.23 per cent at end of October, unemployment at 27.1 per cent as at 2020 Q2 and misery index at 39.66 per cent. Youth unemployment is frightening at 34.9 per cent and poverty has shot up to 40.1 per cent, thus, drastically eroding consumer purchasing power. The rapid depreciation of the Naira against the dollar and other international currencies is helping to fuel inflation. Nigeria is actually facing a revenue and productivity crisis. Revenue is running far short of expense forcing the government to resort to what many call excessive borrowing.”

  • FG set to harmonise functions of professional bodies in Nigeria

    FG set to harmonise functions of professional bodies in Nigeria

    By Charles Okonji

    Federal Government has set processes in motion that are targeted at streamlining functions of professional bodies in the country, especially in those groups where there are similar or overlapping roles.

    Charles Obaseki, Chairman, Governing Council of The Nigerian Institute of Science Laboratory Technology (NISLT) who disclosed this at a two-day A 2-day stakeholders and Extraordinary Annual General Meeting of the institute Tuesday in Ede, Osun State, says the National Council of Establishments (NCE) is already in dialogue with concerned professional bodies to effect harmony in their professional duties.

    “Federal Government is looking at all professional bodies in the country with a view to fish out areas where they have overlapping functions, make them more effective, and advance the welfare for members of those professional bodies”, Obaseki stated.

    According to him, part of the objectives of the stakeholders meeting is for them to address areas of functional overlap, look at where the institutes is presently, and devise more ways of contributing more effectively to the nation’s economy.

    “We want to contribute more to the society and the growth of the economy, address quackery by effectively monitoring and regulation of those operating relevant laboratories and the professionals in the country”, Obaseki further disclosed.

    Obaseki advocates for more funding of the institute, saying that this will enable it to offer more regulatory functions which will, in turn, enhance more economic growth and quality of service delivery in the country.

    In his welcome address at the occasion, Gbndegesin Yemi Hezekiah, the Director-General/CEO of NISLT says the institute is now more determined to implement its mandate to a logical conclusion and also strengthen the existing laboratories in the system in terms of quality of equipment and professional upgrade.

    READ ALSO: Professional bodies congratulate Nigeria, proffer solutions to challenges

    In her goodwill message at the occasion, Morounfola AWONUGA Vice-Chairman Osun State Chapter of ASLTON, says she is delighted to be at NISLT stakeholders meeting to deliberate on the way forward for the sector.

    Awonuga who represented the Osun State Chairman of ASLTON, Comrade Adeyosoye, acknowledged the decision of NISLT to chose the state to host the meeting, saying that “It is not a mistake picking Osun State as the venue of this very important stakeholders meeting because Osun State is the State of the virtues.

    She urged the discussant to ensure that teething problems bedeviling the Science Laboratory Technology profession will be comprehensively looked into and solutions proffered.

    “We at Osun State will expect this gathering to urgently look at solving the following under listed challenges: Advancement of Science Laboratory Technology Professionals beyond CONTISS 13 that is Chief Technologist (CONTISS 13 up to CONTISS 15, Directorate Carder.

    “Dropping the nomenclature Technologist for Scientist for all registered and licensed professional members for the carder of a scientist (reference to MLS), an inspection of schools, post-secondary schools, research institutes, and industries; flushing out of quarks in our laboratories all over the country, and finally, the introduction of master’s degree and Ph.D. in SLT,” She stressed.

  • Build strong institutions, SON committee urges Govt. agencies

    Build strong institutions, SON committee urges Govt. agencies

    By Charles Okonji

    The Standards Organisation of Nigeria (SON) Committee on Management Practices, has stated that building strong institutions will guarantee ease of doing business, rapid and sustainable economic growth in Nigeria.

    The Committee Chairman, Bar. Sunny Uwanuakwa, the Chairman, who stated this the inauguration of a five-man Independent Committee of distinguished Nigerians by SON in Abuja over the weekend, tasked Chief Executive Officers of Federal Government Agencies in the country to build strong institutions.

    According to him, the committee was set up by the SON to review its management practices with a view to strengthening the organisation for improved service delivery.

    Uwanuakwa, a retired Permanent Secretary in the Office of Head of Service commended the Director-General of SON, Mallam Farouk Salim on setting up the committee.

    He said, “This is a novel approach by Mallam Farouk, toward realising his vision for SON. We will hit the ground running and members of this committee will devote their time and passion to the assignment with a view to delivering on the terms of reference within the time frame given.”

    A member of the committee, Mr. Kabir Wudil, a retired Director and former Special Assistant to the Chief of Staff to the President, described the setting up of the committee as an introspection capable of transforming SON toward greater contributions to nation-building.

    Another member, Dr. Rukayyatu Abdulkareem Gurin pledged the committee’s commitment to adding value for the benefit of SON, its stakeholders, and the Nigerian economy.

    SON director general Salim described the occasion as historic and going against the norms in an attempt to build strong processes for the organisation that would outlive its Chief Executives’ tenures.

    He mandated the committee to help examine the structure of SON, its processes and practices with a view to providing a template to address operational, service delivery, and staff welfare challenges to entrench equity and fairness as well as provide greater opportunities for staff to better contribute to the attainment of organisational goals.

    Salim enumerated the committee’s terms of reference to include, control and coordination, communication and effectiveness, manpower dispositions and manning levels, recruitment, postings, and transfers as well as public perception of the organisation and its services among others.

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    The director-general stated that the committee members were carefully selected given their rich pedigrees and experiences in the public sector and the management’s belief in their competence and ability to contribute to the growth of SON.

    According to him, copies of departmental presentations containing activities, achievements, challenges, and meaningful suggestions already obtained from interactions with Directors, Heads of Departments and Units as well as relevant portions of the handover notes provided by the last management would be made available to the committee.

    He enjoined the committee to invite additional inputs, presentations, clarifications or opinions from members of the SON Management and the Staff Unions as it might deem necessary.

    The DG stated that arrangements had been made for the committee to visit the organisation’s major operational offices in Lagos, Enugu, Port Harcourt, and Kano to feel the pulse of the staff and have a broad view of the organisation.

    The director-general stated that the committee had four weeks from the date of the inauguration to submit its interim report and would be expected to submit its final report before the end of the year.

    Other members of the Committee were, Pharmacist Mashood Oluku Lawal, retired Director, Federal Ministry of Health, and a former member of the SON Governing Council and the SON Director, Human Resources Management, Mr. Abdulkadir Usman, who is to serve as facilitator.

  • SON DG, five others bag PSN award

    SON DG, five others bag PSN award

    By Charles Okonji

    The Pharmaceutical Society of Nigeria (PSN) has honoured the Director General, Standards Organisation of Nigeria (SON), Mallam Farouk Salim and five other Pharmacists for attaining great heights in the public service.

    The awards were conferred on the recipients at a Presidential Reception and Thanksgiving Dinner by the PSN in Abuja recently.

    The Chairman of the occasion, who is also the Publisher of Leadership Newspapers, Pharmacist Sam Nda-Isaiah congratulated all the awardees on attaining key positions in the public sector, describing them as a source of great pride to the pharmacy profession.

    Nda-Isaiah enjoined the award recipients to strive to make meaningful impact in their various positions, adding that it will challenge more Pharmacists to aspire to key positions of responsibilities in the public and private sectors in the country.

    In his remarks, President of PSN, Mazi Sam Ohuabunwa commended the SON Director General on his appointment, expressing confidence that the Organisation is set for positive changes to improve on its achievements in years past.

    “It is a thing of pride having Pharmacists occupy key public service positions such as Permanent Secretary in the Federal Ministry of Budget and Planning by Mrs. Olusola Idowu, Mallam Farouk Salim, Director General, SON, Dr. Kelly Nwagha as Acting Director General, National Social Insurance Trust Fund (NSITF), Dr. Zango Mohammed as Managing Director, NNPC Medical Services, Mrs. Christiana Akpa, General Manager, Medical Services, Nigerian Ports Authority and Professor Isa Hussani Marte, Chief of Staff to the Governor of Borno State,” the PSN President expressed.

    Ohuabunwa noted the efforts of all the appointees in expanding their knowledge base as well as building their capacities beyond pharmacy as a profession to include competitiveness as effective managers of men and resources.

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    He commended the various organisations in the health care sector in particular for opening the turf for leadership to all professionals in the sector and challenged practicing Pharmacists to provide avenues for the professional development of those upcoming.

    The PSN President challenged the awardees and all members of the Society to join hands towards the speedy completion of the Secretariat building project in Abuja and invest in a similar project in Lagos for good returns.

    In his response, Mallam Farouk Salim thanked the PSN for the honour, noting that it was a call to duty and a challenge to him to take SON to greater heights.

    He promised not to disappoint members of the PSN as well as his family members, friends and President Muhammadu Buhari.

    The Special Guest of honour at the occasion was Pharmacist (Dr.) Dere Awosika, retired Permanent Secretary and Chairman, Board of Directors of Access Bank Plc.