The Nation Newspaper

Category: Industry

  • FIIRO unveils solar boiler, mobile garri processor

    The Federal Institute of Industrial Research, Oshodi (FIIRO), Lagos has unveiled its newly fabricated solar boiler and garri processor to enhance food and agro-allied processing activities in the country.

    FIIRO, in a statement by its Director-General, Prof. Gloria Elemo, in Lagos, said the solar powered boiler was fabricated to solve the issue of irregular power supply, which hindered production in the industry.

    She said the steam boiler could be used in major industrial sectors such as food and beverages, pulp and paper products, textile and chemical industries.

    Elemo added that more than 90 per cent of materials used in fabricating the boiler were sourced locally, and this means a lot of savings for the country in terms of foreign exchange.

    “The garri processor is equipped with modern technology and an in-built computer, which can be programmed in any Nigerian language so that the illiterate farmer in any part of the country can operate it,” she said

    The FIIRO boss, who emphasised the need for steam and heat in manufacturing processes, listed some FIIRO-developed equipment that use steam to include drum dryer, pasteuriser, parboiler, palm oil refining plant and the ginger oleo-resin.

    Others are essential oil distillation plant, fruit juice/paste concentrate ethanol processing plant, pulp and paper digester, blanching and sterilisation.

    She stated that the mobile garri processing unit was to solve the problem of small-scale processors, as it helps to ease their work and save man hour.

    She noted that the processor would also enhance efficiency, as well as reduce the cost of processing garri, while its mobile nature would make it possible to service

    more people at their convenience.

    Elemo said the institute would continue to develop more technologies that would impact on the activities of major stakeholders to spur economic growth.

  • Export Prohibition Act hurting yam export, says expert 

    The 1986 Export Prohibition Act is hindering Nigeria’s yam export bid, the Head of the Technical Committee on Yam Export, Prof. Simon Irtwange, has said.

    He said the existence of the 1986 Export Prohibition Act and logistics issues were hindering successful operations of yam exporters in the country.

    Irtwange said: “We are still targeting 5,760 tonnes of yam for exportation this year, which is the same target last year.

    “We were unable to do up to 50 per cent of last year’s target because of some difficulties and logistics problem. We are trying to attack those issues very vigorously.”

    He said the committee has written to the Ministers of Agriculture and Trade about the Export Prohibition Act to put pressure on the National Assembly to do Nigerian farmers this favour.

    He said although, some efforts have been made at the National Assembly, the committee does not know where the Act is currently hanging at the National Assembly.

    Irtwange, however, stated that there were no cases of yam rejection at the international market last year, stressing that the challenge the country was experiencing especially in the United Kingdom, was the presence of the Export Prohibition Act.

    He regretted that once the UK sees Nigeria’s yams there, they will say it is contraband because they are aware of the ban on export of yam out of Nigeria because our country prohibits it.

    Irtwange noted that it is even better to label Nigeria’s yam as Ghana yam for it to be accepted in the UK markets.

    Irtwange, who is also the President of Yam Farmers, Processors and Marketers Association of Nigeria, appealed to the government to provide incentive for farmers to produce sufficient yams across the country this year.

    According to him, once there is an incentive for farmers, they will go into large scale farming and a lot of farmers are doing that now.

    The Technical Committee on Yam Export confirmed that it achieved 50 per cent of its yam export target in 2018.

    But Nigeria targets more than 5, 760 tonnes of yam export to different countries this year.

  • Nigerian Breweries: no fake Amstel Malta, but new packaging

    Nigerian Breweries Plc (NB) on Tuesday, assured all its consumers and lovers of Amstel Malta that there is no fake Amstel Malta in the market.

    The brewery giant said the clarification became necessary after its attention was drawn to a video circulating on some social media platforms alleging the existence of a ‘fake’ Amstel Malta in the market.

    The company said the claim was based on the fact that there are differences in the Nigeria Industrial Standard (NIS) Logo on the Amstel Malta packaging.

    “We wish to clarify and assure all our valued consumers and lovers of Amstel Malta that there is no fake Amstel Malta in the market, the company said, in a statement made available to The Nation.

    NB said it recently revised the packaging of Amstel Malta and incorporated the new NIS Quality logo from the Standards Organisation of Nigeria (SON).

    It added that this change was approved by the relevant regulatory agencies, including the National Agency for Food, Drug Administration and Control (NAFDAC).

     

     

  • Automate your business processes, expert urges SMEs

    Small and Medium Enterprises (SMEs) should automate their organisational processes in order to increase their productivity and effectiveness.

    Giving this advice in Lagos, during the week, a Software Developer, Mr. Austin Agbakor, said many SMEs are not embracing digitalisation due to challenges ranging from lack of skilled manpower to increased cyber security threat, difficulty in training staff, among others.

    “Automating our business process is a step to digital transformation, which is critical in business development. The challenges should be used to one’s advantage, instead of looking for skilled manpower to automate processes; workers who are tech-savvy should be trained,” Agbakor said.

    While noting that ironically, Intelligent Automation (IA) will provide the solutions to most of these challenges, he said by augmenting the human work force with IA, smaller teams can do more with less, eliminating the need for additional IA-skilled staff.

    The software developer added that incorporating IA into the cyber-security process enables security teams to fight the attackers using the same technology used in attacking them or getting a more advanced technology.

    He said rather than workers being laid off jobs due to digital transformation, the work would be made easier for them.

    Agbakor said organisations worked on a range of activities on a daily basis, which allowed different teams to operate effectively and contribute to the overall growth.

    He said the time when people relied on papers and manually forwarding files to different teams was gone, saying that automation was the new ideal.

    Agbakor said be it a service provider, product supplier, or SME offering products solutions, every company went through some basic everyday processes, and as such needed digital transformation.

  • ‘We’re committed to advancing Nigeria, US economic ties’

    The Nigerian-American Chamber of Commerce (NACC) has said it remained committed to advancing economic cooperation between Nigeria and the United State (US) to increased investment and exports between both countries.

    Making this known in Lagos, during the week, NACC President, Chief Oluwatoyin Akomolafe, said the Chamber would continue to develop opportunities for Nigerian businesses to gain exposure, funding and investment partnerships with the U. S.

    He said last year, NACC through its various trade missions and interactions with investors, discussed how the U.S could create better opportunities for trade with the Nigerian companies.

    “We discussed the opportunities for partnerships in renewable energy, waste management, healthcare, information technology, communications and development deals. The idea was to introduce, foster and deepen bilateral trading relationships to increase exports,’’ Akomolafe said.

     

     

  • CBN to support 120,000 rice farmers in Kano

    No fewer than 120, 000 rice farmers in Kano State will benefit from the Federal Government’s Anchor Borrower Programme (ABP) for this year’s dry season farming, the state Chairman of the Rice Farmers Association of Nigeria (RIFAN), Alhaji Abubakar Aliyu, has said.

    He stated this in an interview in Kano, during the week.

    He said already the list of the registered farmers had been forwarded to the Central Bank of Nigeria (CBN) for verification and processing of the loan facility.

    He said each farmer would receive a loan package of not less than N220, 000 comprising input and certain amount of money for paying labour.

    He said: “About 150, 000 rice farmers registered for the programme, but the number had to be reduced to 120,000 due to issue relating to Bank Verification Number (BVN).

    “The list of the successful farmers have been forwarded to the CBN for immediate processing as the dry season farming activities for the commodity will soon commence,”

    Aliyu advised farmers who were not able to scale through due to the issue of the BVN to exercise patience, assuring that they would be given priority during the wet season programme.

    He also advised those selected to make best use of the loan facility to boost rice production in the state and the country at large.

    “This is an opportunity for our members to improve their socio-economic status since the Federal Government was committed to supporting the sector for massive food production in the country,” Aliyu said.

    He urged farmers across the country to embrace rice production so as to end importation of the commodity.

     

  • Prioritise entrepreneurship, govt, Nigerians urged

    Nigerians and the three tiers of government have been urged to pay more attention to creation of innovative skills through encouragement of entrepreneurship.

    A former Secretary-General of Nigerian Institute of Architects (NIA), Mr. Samson Akinyosoye, gave this advice in Lagos.

    He said entrepreneurship was borne out of passion, stressing that both the government and citizens have no passion for entrepreneurship.

    According to him, more than 70 per cent of business ventures in the country collapsed within five years of inception.

    Akinyosoye noted that manufacturers only needed support and encouragement from the governments, individuals and organisations to bring their creative minds to the fore.

    He added that some establishments do not value innovation and as such were not thinking in the direction of advancing the production scope and technological know-how of the citizenry.

    “In situations where there are no financial support, encouragement, initiatives and mentoring or credit facilities as it is in Nigeria, it will be difficult for entrepreneurship to thrive.

    “Our country must be productive. China is what it is today because of their commitment to entrepreneurship,” Akinyosoye said.

    He noted, for instance, that 50 years ago, China was like Nigeria, but due to dedication and encouragement to entrepreneurship, it has grown to become one of the leading producing countries in Africa.

    “Nigeria can do better, if the government can prioritise entrepreneurship and encourage activities of the manufacturers,” he stated

    The expert called for encouragement and mentoring of the young ones to go into science innovation and production that would develop and enhance manufacturing base.

    Akinyosoye noted that if the  economy must grow to become one of the leading countries, the issue of entrepreneurship development must be given serious concern.

    “All the government needs do is to make the country business conducive for manufacturers and investors to operate,” he said.

    The economist urged the Federal Government not to relent in its fight against corruption, and ensure stable electricity, transportation network and relax visa regime, among others.

     

  • US-China rivalry in Africa to sharpen in 2019

    There are signs that the United States-China rivalry will find its way to  Africa this year.

    While the US is warning about the perils of Chinese debt-fuelled spending for economic stability, China will continue to broaden its engagement across the continent, with particular focus on East Africa.

    This is one of the key findings of “RiskMap 2019”, a publication forecasting political and security risk for business leaders and policy makers across the world, by specialist global risk consultancy Control Risks.

    Senior Partner for East Africa based in Nairobi, Daniel Heal, explains: “So far, the US-China rivalry that dominated global headlines in 2018 has played out less visibly in Africa than on other continents.

    “Support for China or the US has not emerged as a defining issue in African politics, with most countries keen to pursue closer ties and seek financing from both sides rather than falling neatly on one camp. In 2019 we might see this changing.

    ”He said while still the largest investor on the continent, the US has seen its engagement on the continent become more narrowly focused on security matters under the current administration – in contrast to China, which has made formidable inroads in sub-Saharan Africa over the last decade.

    ”2019 will show revived US interest in development finance and lending for infrastructure projects on the continent and a more concerted US commercial strategy towards Africa is likely to take shape.

    “The increased rivalry will therefore, open up additional investment opportunities, but will also present African countries with increasingly starker foreign policy and commercial choices,” Heal said.

    Control Risks, which helps to create secure, compliant and resilient organisations in an age of ever-changing risk, identified the top-five global risks for 2019.

    It said, for instance, that the trade rift foretells a new global order. According to the consultancy, friction between these two nations will complicate business not only for those European businesses operating in both countries, but also for those with connections several times removed. Control Risks said the second global risk will be global data rollercoaster, noting thatthe stand-off between the three major data regulation ideologies will present a new level of risk for international business in 2019.

    “For China, data is something to be controlled; for the EU, it is something to be protected; for the US, it is something to be commercialised. “Businesses must be prepared for the challenge of collecting, storing and transferring data within and between these three domains against a backdrop of inconsistent enforcement and escalating cyber security threats,” it said.

    The third risk, according to Control Risks, is US political gridlock, with the consultancy predicting that the vice of legislative gridlock will close on policy making in Washington and throw the US into a period of political uncertainty. Resurgent Democrats in the House of Representatives will seek to scrutinise the president under an investigative lens. “Pushback from a Republican Senate and White House will erase any hopes of consistency for business operations. Trade policy will remain unpredictable; the pace of deregulation will slow,” it said.

    It identified other global risks to include added that extreme weather disruption and multinationals becoming nationless.

    According to it,some of worst business disruption in 2019 will stem from extreme weather and its consequences.

     

     

     

  • Ease of doing business: More hurdles to cross

    Nigeria moved from 169 to 145 in the World Bank’s 2018 Ease of Doing Business ranking. This is a shot in the arm for the Federal Government’s reform of the business environment to attract investments and diversify the economy. But, the country’s drop from third to 14 the in Forbes 2019 Ease of Doing Business ranking is seen by real sector operators as a setback. They, however, argue that this could be mitigated by sound, result-oriented business regulations, innovative implementation of reforms and supportive infrastructure in 2019. Assistant Editor CHIKODI OKEREOCHA reports.

    The report was unsettling, both for the Federal Government and private sector operators. The 2019 Forbes Ease of Doing Business (EoDB) ranking, which graded 161 countries, dropped Nigeria from third to 14th position, was seen by analysts as a major setback for Nigeria’s push to create and sustain an enabling business environment for private sector operators.

    Nigeria, had on the strength of the reforms by the Presidential Enabling Business Environment Council (PEBEC) and the various Executive Orders, made some gains, rising by 24 places from 169 to 145 in the World Bank’s 2018 Ease of Doing Business Index. It was Nigeria’s highest leap in the history of the rankings, which provide a global snapshot of a country’s business environment in comparison to its peers.

    The PEBEC, the administration’s flagship initiative to reform the business environment, attract investment and diversify the economy, was inaugurated in July 2016 and chaired by Vice President Yomi Osibanjo. The Council’s reforms as well as the signing of the Executive Order on ease of doing business in 2017 are believed to have earned Nigeria the rise by 24 places on the ease of doing business ladder.

    Expectedly, the feat gladdened the hearts of private sector operators. Many of them believe that Nigeria’s lack of an investment-friendly business environment is largely responsible for the failure to leverage her enormous human and natural resources to boost productivity and global competitiveness. This was why they supported the Federal Government’s ambitious target of moving 45 steps upwards in the next two years.

    In fact, Nigeria’s ultimate goal was to hit the top 100 by next year. However, while the government and the private sector were still savouring the gains of the ease of doing business reforms and strategising on how to make them sustainable, the country’s drop in the 2019 Forbes ease of doing business ranking was a major setback.

    The report was an indication that government still has more hurdles to cross in improving the business environment and enhancing the productivity of businesses in 2019. Forbes previous ranking listed Nigeria as the 115th best country to do business in the world and third in Africa out of 153 countries that were surveyed globally in September 2018.

    But the business magazine’s latest 2019 listing, which was released on December 19, 2018, revealed that while Nigeria’s ranking improved on the global space, it dropped 11 spots in Africa on “hospitable to capital investment.”

    Sadly, South Africa claimed the number one spot in the listing, while Nigeria was rated 14th in Africa. This is despite Nigeria’s 203 million population, 0.8 per cent Gross Domestic Product (GDP) growth and GDP per capital of $2,000.

    Botswana came 83rd on the list globally; Rwanda, 90th; Kenya, 93rd; Ghana, 94th; Egypt, 95th; Namibia, 96th. While Senegal was rated 100th, Zambia was 103rd and Cape Verde, 104th before Nigeria was rated 110th globally.

    Outside the continent, United Kingdom was rated first; Swede, second; Hong Kong, third, and The Netherlands was rated fourth. While New Zealand took the fifth position, Canada was 6th. The United States was rated 17th on the Forbes list.

    Explaining how it arrived at the rating, Forbes said: “We gauged the best countries for business by rating nations on 15 factors, including property rights, innovation, taxes, technology, corruption, freedom (personal, trade and monetary), red tape and investor protection.

    “Other matrixes included were workforce, infrastructure, market size, quality of life and risk. Each category was weighted. The data is based on published reports from Freedom House, Heritage Foundation, Property Rights Alliance, United Nations, Transparency International, World Bank Group, Marsh and McLennan and World Economic Forum.”

    Incidentally, most of the criteria Forbes used in its latest assessment, particularly as the relate to Nigeria, such as infrastructure, taxes, corruption, red tape and investor protection were the same issues that form the basis of the private sector’s consistent agitation for an improved business environment.

    For instance, the Lagos Chamber of Commerce and Industry (LCCI) re-echoed this sentiment when it said in its review of the economy in 2018 that business environment issues are as critical to the progress of the economy as the macro-economic conditions. It listed the issues as infrastructure, tax, regulatory environment, institutional issues, security situation, policy consistency etc.

    LCCI Director-General, Mr. Muda Yusuf, said some of the  major business environment issues that impacted on businesses in 2018 included but not limited to  the 2018 World Bank Ease of Doing Business report that ranked Nigeria 146 out of 190 countries.  He said this showed that the country took a step backwards from the 145th position it ranked in 2017.

    Yusuf, who noted that the ranking took into account trading regulations, property rights, contract enforcement, investment laws and availability of credit, said the government still has the enormous task of ensuring much better performance to enhance the productivity of businesses in the year.

    While acknowledging the present administration’s efforts through the PEBEC and series of Presidential Executive Orders targeted at improving the business environment, the LCCI chief said: “The setback calls for sound and result-oriented business regulations and innovative implementation in 2019.”

     

    Power supply is pain in the neck

    While noting the government’s efforts in addressing the perennial power supply shortage and the deeper commitment to alternative sources of power, including off-grid initiatives, Yusuf was emphatic that the provision of power remained at the heart of the ease of doing business in Nigeria.

    Hear him: The power situation continues to pose severe challenges to private sector operators, impacting adversely on productivity. Throughout the outgoing year, we received complaints across sectors about high energy costs, especially high expenditure on diesel, higher cost of and scarcity of gas, and payment demand by electricity distribution companies (Discos) for power not supplied.”

    Yusuf further stated that these continued to take their toll on the bottom line of investors and Small and Medium Enterprises (SMEs). He said some real sector companies reported that they spend as much as 20-25 per cent of their total operating cost on provision of alternative power supply and payment to Discos.

    Nigeria’s installed power generation capacity is put at 12,000Megawatts (MW). But as at December 26, 2018, the actual output stood at over 5,207.57MW, according to the Executive Secretary, Association of Power Generation Companies (APGC), Dr. Joy Ogaji. This means that the power supply still falls short of the megawatts required to power the economy.

    This, according to the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), is worrisome. Its National President, IyalodeAlaba Lawson, therefore, said the Federal Government must redouble its efforts in improving infrastructure, such as power, roads and rails, as well as its efforts at improving the ease of doing business.

    Lawson, who spoke at NACCIMA’s end of year briefing, in Lagos, said these are necessary to bring about the much-needed positive change in the manufacturing sector, as Nigeria was still a net importer in manufactured goods. She insisted that power supply was crucial to the sustained growth of the manufacturing sector.

    The NACCIMA chief, who noted that a lot of work was required to improve infrastructure, particularly power supply, however, commended government’s efforts to improve power supply by expanding the energy mix in Nigeria beyond hydro and thermal sources and the expansion of renewable energy including solar and off-grid sources.

    Lawson also commended the activities of the PEBEC and initiatives such as the Economic Recovery and Growth Plan (ERGP) Focus Labs, SME Clinics and the various Executive Orders. She pledged NACCIMA’s continued support of the government and all stakeholders working to create and sustain an enabling business environment for the real sector against the background of the ERGP.

    The ERGP (2017-2020) is a medium-term structural reform to diversify the economy, including expanding power sector infrastructure. It was drawn based on the assumption that electricity supply would continue to grow, hitting 10,000MW by 2020.

    However, barely a year to the set target, the power output still stands at about 5,207.57MW. This means that the realisation of the Federal Government’s plans hangs in the balance. It also authenticates Forbes unflattering ranking of Nigeria in its latest ease of doing business.

    More importantly, the situation, by extension, means that hopes of a bigger and more productive private sector powered by an improved business environment may take longer time to realise, unless government and all stakeholders put their hands in the plough particularly in the area of implementation of policies on ease of doing business.

    The fact that lack of steady and reliable electricity is not the only factor responsible for Nigeria’s drop on the ease of doing business ladder makes the need for effective policy implementation and collaboration more compelling.

    For instance, the unpredictability or lack of continuity of government policies, freeze in the lending activities of banks, lack of maintenance culture and macro-economic instability, among others, are said to be making the business environment unfriendly for local and foreign businesses.

    Many private sector operators have been agonizing over the high inflation, interest and exchange rates. Many of them are unable to sustain or expand production at the prevailing interest rate of between 20 -27 per cent, depending on the borrower’s perceived risk level.

    According to experts, the major source of capital for businesses in Nigeria still remains bank loans, which come at high interest rates. Inflation and exchange rate have also been trending upwards to the chagrin of real sector operators, especially the Medium, Small and Micro Enterprises (MSMEs).

     

    Multiple taxation also

    To usher in a business-friendly tax regime, MAN has called for the commencement of the implementation of the harmonised taxes and levies and to allow the Joint Tax Board (JTB) monitor and enforce compliance by states and local governments.

    The association also counselled the government to be more interested in result-oriented spending with frugality, be more transparent and accountable to assuage the psychology of taxpayers for improved tax compliance.

    MAN urged the government to expand the tax net to capture the non-tax-paying firms, particularly those operating in the informal sector and not increase the tax burden on the already tax compliant businesses.

    It also urged the government to re-classify the manufacturing sector into strategic gas users from the current commercial gas user’s classification.

    The association urged the Federal Government to continue to entrench better foreign exchange rate management while allocation should tilt more to the industrial sector, including the Small and Medium Enterprises (SMEs).

    It also urged the government to fast-track the development of key selected mineral resources through backward integration, especially those with high inter-industry linkages.

    “The government should continue to support the resource-based industrialisation and backward integration in the country through appropriate incentives and funding support to investors,” it said.

  • World manufacturing growth declining, says UNIDO

    World manufacturing output, which rose by 3.2 percent in the third quarter of last year, was lower than the 3.4 percent recorded in the second quarter, the World Manufacturing Production: Statistics for Quarter III, 2018, has said.

    The report published by the United Nations Industrial Development Organisation (UNIDO), said global manufacturing growth has been declining for three consecutive quarters, amid rising tension over trade and tariffs among the leading manufacturing nations, especially the United States, members of the European Union (EU) and China.

    The UNIDO report, which was accessed by The Nation, during the week, however, said among African countries, manufacturing output rose in Cote d’Ivoire by 4.2 per cent in the third quarter of last year.

    Positive growth was observed also in Egypt, Morocco and Senegal. However, growth remained low in two large economies of Africa, namely Nigeria and the Republic of South Africa.

    The report said major setback was observed in the industrialised economies, which account for more than half of global industrial output.

    Disaggregated figures by region indicate much lower growth in Europe and East Asia compared to North America, where the manufacturing output rose by 3.4 percent.

    Manufacturing output rose by 3.4 percent in the United States. However, growth was   less than 1.0 percent in Germany and France, while Italy faced negative growth.

    Among non-EU economies, manufacturing output rose by 3.6 percent in Belarus, 2.7 percent in Norway, 2.4 percent in the Russian Federation and 1.7 percent in Switzerland.

    Among East Asian industrialised economies, manufacturing output dropped in Japan. Relatively higher growth at 4.8 percent was observed in Malaysia and 3.6 percent in Singapore.

    The growth performance was much higher in developing and emerging industrial economies in the third quarter, although the overall impact of declining global growth was evident.

    China’s manufacturing output rose by 6.1 percent in the third quarter of 2018, which was lower than 6.4 percent in the second quarter. Slowdown was visible in a number of manufacturing sectors, including electrical equipment, motor vehicles and other transport equipment.

    The manufacturing output growth of emerging and developing economies, excluding China, dropped to 3.0 percent in the third quarter compared to 3.6 percent in the second quarter. Regionally disaggregated figures suggested much lower growth in Latin American countries compared to that of Asia Pacific region.

    The manufacturing output of Argentina, one of the largest manufacturers in Latin America, fell sharply by 7.2 percent in the third quarter. Manufacturing output rose by 1.6 percent in Brazil and 1.5 percent in Chile.

    Manufacturing in Mexico, which heavily depends on exports to the United States, rose to 2.7 percent growth in expectation of the North American trade agreement.

    Asian countries maintained relatively higher growth in the third quarter. Manufacturing output rose by six percent in India with significant contributions from high-tech sectors such as pharmaceuticals and motor vehicles. Manufacturing output rose by 5.1 percent in Indonesia and 7.3 percent in Philippines.

    The UNIDO report also presents growth figures by manufacturing industry. Production of computer electronics and pharmaceutical products were listed among high-growth industries.