Category: Industry

Nigerian cables are said to be among the best in the world. But some unscrupulous manufacturers, in an attempt to make fast bucks, are cloning known brands and faking others. The  Cable Manufacturers Association of Nigeria (CAMAN) and the Standards Organisation of Nigeria (SON) are ` battling to arrest the situation. OKWY IROEGBU-CHIKEZIE reports.

Cables are vital to our existence as they ferry electricity to our homes and offices. They may be visible or buried in conduit pipes.

Often, many Nigerians make the mistake of paying little attention to the cables used in wiring their homes. To them, a cable is just a cable. But there have been fires, blackouts, short circuits and electrocution caused by unsafe cables.

Recently, a discovery and seizure of substandard electric cables by the Standards Organisation of Nigeria (SON) was shocking: two houses in Lagos filled with substandard electric cables with semblance of known wire brands to deceive unsuspecting consumers were sealed.

It was for this that the SON Director-General, Osita Aboloma, vowed not to give up in the agency’s fight against fakery.

He lamented the damage importers of substandard products was causing consumers and manufacturers, who had invested billions of naira in their businesses.

The SON chief made the promise when members of the Cable Manufacturers Association of Nigeria (CAMAN) visited two residential buildings in Ajangbadi area of Lagos where it uncovered over N8 billion worth of Nigerian cloned cables. He said the importer sited the warehouses in a residential area to evade the agency.

Aboloma showed the visitors the over 21 cable brands. They included  those of Nexams Nigerian wire, Kable mek, Pure Chem, Coleman cables, Nocan, Kb Cables, Niger Chem, MicCom cables and other unbranded ones, among others.

He noted that the agency would not rest until it prosecuted Nigerians who are determined to flood the market with substandard products.

“We have held them down for the past six months. We are processing them for ratification and when necessary, it would be destroyed subject to the final order from the court that is coming out any moment from now. We want to assure Nigerians that the battle to rid Nigeria off substandard cables is an ongoing battle which we are fighting with the cable manufacturers of Nigeria,” he said.

He explained that the unscrupulous importer targeted cloned Nigerian cables already certified by SON, in deceptive packages to deceive the unsuspecting Nigerians, adding that more of such firms would be uncovered courtesy of its proactive surveillance.

Commending the cable and wire manufacturers, he said: “They saw their brands are being threatened and they came to us and we have been able to arrest the situation. We will keep on doing that to discourage anybody that wants to take advantage of our attempt to create an enabling business environment for local production. Our cables are the best in Africa. They are safe to use and any cable that does not conform to our MANCAP is therefore not certified by us. We will keep on going to the markets to conduct surveillance exercise and inspecting factories of these cable manufacturers to make sure they all conform to the Nigerian Industrial Standards (NIS) and whenever they fall short of standards, we will clamp down on them.’’

According to him, the eventual destruction of these substandard cables would send a strong signal to unscrupulous importers that intends to fake or clone any successful brand in Nigeria.

He, however, called on the public to join hands in the battle against substandard products, saying that to win the war against this nefarious trade by purveyors required a collective effort.

“We are calling on the public to work with us and if you see something unwholesome, say something. The cable manufacturers, our formidable partners in quality assurance and in collaboration with the Nigeria police and sister agencies were able to intercept these cables before entering our markets. We have been processing them and on the verge of corrective or destructive measures. This is why we invited them to see what are doing and what we intend to do,” he added

Responding, a member of CAMAN and Managing Director and Chief Executive Officer (CEO), Coleman Wires and Cables, George Onofowokan, commended SON for its tireless effort in safeguarding lives and property of Nigerians, maintaining that SON and CAMAN have been partners in progress over the years to combat the challenges hindering the cable production in Nigeria.

“We have had good partnership with SON and we have been stated as one of the main industry in promoting made-in-Nigeria products. It has become a scenario where people are trying to adulterate or clone our cables in order to take advantage and thereby putting people’s life in danger. This has made us strengthen our partnership with SON to make people actually see that this made-in-Nigeria is not only a fight by us that we should be proud of locally made cables, but also fight against what people do wrong,” he said.

He, therefore, called on Nigerians to support SON in its quest to reduce the preponderance of substandard goods into the country, saying that this is the surest way to address the illicit trade.

“We are not helping anybody by keeping quiet because anybody’s family here can be a victim of the houses burnt by these substandard cables. We have to report to SON whenever we see any unwholesome practices by these purveyors and that is the signal that SON is sending and we as cable manufacturers are sending the signals that we make good cables. The information is available, SON has them and it is free information and any cable manufacturer that is part of CAMAN is endorsed by SON and the director-general has said, cable manufacturers go through MANCAP and individual factory visits by SON four times a year and this has set the standards very high and we want to make it remain so,” he added.

He said as part of the association’s mandate to support SON in this fight against substandard goods, it would  donate an enforcement vehicle to SON. It called on other stakeholders in various sectors to follow suit.

 

Implication of sub-standard cables and wires

 

He said the implication of this is that they are destroying the market for genuine local manufacturers who may have accessed loans from banks to do businesses. These unscrupulous elements are responsible for the many fires .

Aboloma lamented the damage  substandard products importers was causing not only consumers.

The SON chief said the cables were brought in from China but they were being repackaged in Ajangbadi as ‘made-in-Nigeria’ products and this  was because Nigerian wires were reputed as one of the best in the world.

His words: “All these cloned cables were made in China, but packaged as made-in-Nigeria products. You know we are proud of made-in-Nigeria cables, because they are about the best cables in the world. This illegal act will not be accepted; we are going to go after the importer and prosecute him. Our enforcement team would continue to burst dubious importers who resort to bringing in substandard products,”

Aboloma continued: “Nobody can imagine someone coming down here to fully stock two buildings with substandard cables. These are purported to be Nigerian brands but made in China.’’

He said the implication of this is that they are destroying the market for genuine local manufacturers who may have accessed loans from banks to do businesses.’’These unscrupulous elements are indirectly responsible for the many fire outbreaks all over the country due to substandard cables,’’ he said.

For Onofowokan, all efforts should be geared towards keeping the substandard cables out of the market.  He explained that when these unscrupulous importers engage in the trade, because of large profits.

He said: “Anybody importing or making substandard cables is not making the types of margins or small profits that our distributors or businesses are making, they are doing it for big profits and when a criminal is making so much money he also has money to fight you as well as the government agencies. We cannot do it alone, even the agencies cannot do it alone. We need everyone to support in every way be it financially, individually or group, we must all support SON in this fight.’’

 

Way forward

 

Aboloma said the agency had made some progress in the area of sanitising the nation’s cable market, but regretted that dubious importers were trying to cash in on that achievement by going overseas to clone cables adjudged to be best in the world.

He added that the SON enforcement team would continue deal with dubious importers.

He regretted that as a result of the government’s focus on promoting quality products made in Nigeria, these people go abroad to fake certified products.  He pledged that those behind it would be sanctioned.

Onofowokan stressed that the real sector could develop the economy, if the government decide to focus on those companies that can create employment and generate more jobs. According to him for the real sector to expand and create more jobs, government needs to reduce cost of borrowing as commercial borrowing cannot sustain manufacturing companies as it is very expensive.

Managing Director Kabelmetal Plc, Mr. Robert Kretschmer, asked for more stringent regulatory framework. He argued that from an ideal standpoint, there should be no faked or substandard cables on the market. He argued on the need for clear collaboration from authorities and also from the customers.  He insisted that only buyers who are ready to buy genuine products help to dry out the illegal business.

Asked if the government was doing enough for manufacturers, Kretschmer said sometimes good intentions of government may backfire. He cited an instance: “If you want to establish a poultry farm, you can import the equipment with a duty waiver. An industrial poultry farm needs maybe 15 kilometre of cables. We could supply these cables but they come from abroad with the farm equipment for zero duty in this scenario the Nigerian manufacturer has little chance to compete.”

In 2012, WinterGreen Research, an independent research organisation, announced a new study on Ceramics Market Shares, Strategy and Forecasts Worldwide–2012 to 2018. According to the study, global markets are poised to grow steadily as developing countries’ population creates middle class, encouraging the demand for ceramic products. The lead author of the study, Susan Eustis, says the forecast indicates that the $279 billion ceramics trade will reach $408 billion this year. However, the Ceramics Researchers Association of Nigeria (CeRAN ) says Nigeria needs to do more to meet its market share of the target. OKWY IROEGBU-CHIKEZIE reports

Experts have argued that the quest for diversification and capital inflow from non-oil sector can be realised if the nation taps into the huge potential in ceramics manufacturing.

Ceramic products, such as crockery (plates, dishes and other items) and sanitary wares, apart from their decorative look, are primarily hygienic. This is also one of the main reasons for their wide usage in bathrooms and kitchens in households, medical centres, laboratories, milk booths, schools and public conveniences, among others.

All these make it attractive as a huge foreign exchange earner for the country. But, in all these, Nigerian ceramics manufacturers seem not ready to meet their share of the global market projection of $408 billion by the end of the year.

Ceramic Researchers Association of Nigeria (CeRAN) President and Chief Executive Officer (CEO) Epina Technologies Limited, Prof. Patrick Oaikhinan, told The Nation that ceramics manufacturers have unfortunately focused mainly on narrow area of the sector, adding that it will not give them the needed edge to meet the projected increased demand that would yield the projected amount by the end of the year.

To a former Deputy Director in charge of solid minerals, ceramics and electroplating technologies at the Federal Institute of Industrial Research Oshodi (FIIRO), Mr. Patrick Sonny Irabor,  there is a huge opportunity in ceramics business awaiting the nation and  that 85 per cent of the raw materials that would be needed could be obtained locally.

 

Prospects of the sector

 

For Oaikhinan, the emergence of West Africa as a manufacturing hub for the ceramic industry as a result of the growing construction sector, is expected to have a positive impact on the market.  According to him, low manufacturing cost, compared to countries in North America and Europe, have forced numerous ceramic manufacturers to commence production in West Africa, adding that in December 2013, West African Ceramics Limited made an investment of over $50 million to begin production of ceramic tiles in Nigeria.

His words: “Construction industry growth in bricks, with rising demand for new residential structures in the emerging markets of China and India due to urbanisation, are expected to drive market demand for ceramic tiles over the forecast period. Asia-Pacific was the largest ceramic tile market, exceeding 60 per cent of global volume in 2013.

“The governments of India and China have increased spending on infrastructure improvement, which is expected to promote the demand for residential and commercial structures and boost the ceramic tiles market over the forecast period.”

The global construction industry is growing rapidly with a major contribution from emerging countries. In 2016, the revenue generated by the global construction industry reached approximately $8.82 trillion from $7.91trillion in 2012. The revenue is expected to reach approximately $14.98 trillion by 2025. The emerging countries accounted for 51.9 per cent of the total construction industry in 2016 and estimated to contribute approximately 62.5 per cent by 2025. The governments of these regions are investing significantly in residential homes, owing to the rapid urbanisation in lieu of jobs, better lifestyle and other amenities.

Underscoring the huge revenue sources of ceramics, Prof Oaikhinan gave figures to buttress the fact that ceramics is a huge foreign exchange earner.

He pointed out that for decades economists have created models to determine what best drives economic growth in an attempt to help policy makers know where best to focus their efforts. Creative thinkers have reasoned that computer training, foreign languages, sports schools and provisional work agencies could help to reduce unemployment and generate wealth in Nigerian economy while Ceramics manufacturing business is conspicuously absent.

Emphasising the importance of ceramics, Irabor stressed that without ceramics, there would not be the convenient employment of electricity, the production of the highest grade of steel and that most other products of the furnace would be impossible. According to him, there will be no bricks or tiles, the production of corrosive chemicals, the use of crucibles for refining purposes would remain unknown. In short, a modern industry state without the many diverse forms of pottery is almost inconceivable.

He said the manufacture of ceramics will encourage reactivation of dead factories, establishment of new industries, improve the exploration and appropriate utilisation of the nation’s abundant natural solid mineral resources.

He also stressed that it would create industrial activities, employment generation and economic empowerment of the citizenry, while the huge import dependence of ceramic products would be reduced. “The development and investment in this non-metallic solid mineral-based sector would go towards the much talked-about diversification of the mono-oil economy,” he added.

“The prospects for ceramics and glazes in Nigeria are phenomenal as they stand to accelerate development. In today’s world, pottery has grown through development in science, technology and engineering to assume a formidable role in the modern and space age of man,” he stated.

 

Challenges

 

Concerning the challenges in the sector, Oaikhinan said prior to 1980s several ceramic industries such as   Richware Ceramics (Lagos); Modern Ceramics (Umuahia); Nigergrob Ceramics (Abeokuta); Ceramic Manufacturer (Kano) and Quality Ceramics (Shagamu), among others, were enjoying booming businesses.

He, however, lamented that they are all moribund, noting that  only four local ceramic manufacturing industries that are still producing  and their products are mainly tiles and sanitary wares.

He said: “These industries are producing below installed capacity because of shortages of professionals with generic and technical skills in ceramics manufacturing business. There is also the absence of avenues for people that are interested in ceramic manufacturing business to pursue their ambitions, just as there is the absence of training programmes in ceramic science, engineering and technology in our universities or polytechnics. There are equally lack of knowledge of the chemical and mineralogical compositions, and non-existence of raw material processing plants to feed the local ceramic industries.”

He canvassed the strengthening of ceramic entrepreneurship in Nigeria, arguing that it is the golden highway to economic democracy.

For Irabor, the challenges facing ceramics and its glaze component manufacturing in Nigeria are enormous. There are a number of critical factors necessary for the development and growth of ceramic and glaze technology and their manufacture in Nigeria. “Such factors are many and they varied from the government policy framework, financial structures, politics, expertise, manpower, technology, to availability of appropriate raw materials,” Irabor said.

According to him, available skilled manpower in this sector is either being frustrated into changing into other profession or is redundant, leaving the stage for pseudo-experts in ceramics.

In the area of equipment, he observed that the nation’s machinery and system building capabilities are very low and the sad situation has reflected in the level of production, huge import bill, poor maintenance culture and high failure rate of industrial projects. With particular reference to ceramic manufacturing in Nigeria, the dependence on imported machinery, remains high as the most vital systems must be imported, maintained and operated efficiently for a sustainable production process.

 

The way forward

 

The way forward lies in charting a positive course to revert the current situation to reduce import dependence, create employment opportunities, improve living standard and reduce poverty just by exploiting and utilising our natural solid mineral resources, Oaikhinan said.

More appropriately, through adequate funding of Research & Development (R&D), manpower development and general capability building in the non-metallic mineral and ceramic sectors, the situation would substantially improve, he added.

For decades, economists have created models to determine what best drives economic growth, in an effort to help policy makers know where best to focus their efforts. “Creative thinkers have reasoned that computer training, foreign languages, sports schools and provisional work agencies could help to reduce unemployment and generate wealth in Nigerian economy,” Oaikhinan said.