The Nation Newspaper

Category: Industry

  • Textile makers to MDAs: implement buy made-in-Nigeria order

    The Nigerian Textile Manufacturers Association (NTMA), has faulted the non-implementation of the Federal Government’s Executive Order on patronage of Made-in-Nigeria goods.

    NTMA Director-General, Mr Hamma Kwajaffa, said in Lagos, that in spite of government’s intention to revive the textile sector, the reality on ground remains worrisome. He revealed that the nation spends over $4 billion annually importing textiles and readymade clothing.

    He reiterated that wholesome patronage of local goods would reduce the import bill of the nation besides creating jobs and boosting the economy.

    He regretted that Ministries, Departments and Agencies (MDAs), are yet to heed government order to patronise locally made products, towards enhancing the growth of the manufacturing sector and the nation’s economy.

    It will be recalled that the Federal Government on May 25, 2017, signed the Executive Order on support for local content in public procurement by the government.

    It said the Order would boost local production, improve business environment, promote entrepreneurship and give the country a positive trade balance.

    Kwajaffa said based on the Order, many textile manufacturers stocked up their inventory in expectation of a sales boom, but are yet to get patronage from the various ministries.

    “We expected purchase from the Ministry of Defense, the Police, Immigration, Prisons and others, but they have not contacted us. Our people geared up for mass production, our stores are filled, we expected a boom, but nobody is buying the fabrics and other requirements,” he added.

    He urged the government to expedite the passage of 2018 Budget, adding that officials from some of the ministries attributed lack of patronage of textiles to paucity of fund. Kwajaffa noted that the 2017 Budget had to be shored up through borrowing.

  • ‘PZ Cussons committed to Nigeria’

    ‘PZ Cussons committed to Nigeria’

  • Push to cut N19.5tr raw materials import bill

    About N19.5 trillion has been spent by manufacturers to import input in 16 years,  says the  Raw Material Research and Development Council. This huge capital flight may have prompted manufacturers and the government to look inwards for alternatives, reports Assistant Editor OKWY IROEGBU-CHIKEZIE.

    For long, manufacturers have relied heavily on raw materials importation for production.  Local raw materials, they argue, are not readily available. This has forced them to turn to importation at huge cost, which, of course, affects their profit and competitiveness.

    For instance, between 2000 and 2016, raw materials importation, according to the Raw Material Research & Development Council (RMRDC), gulped a staggering N19.5 trillion.  Experts and real sector operators have adduced several reasons for the heavy financial burden foisted on manufacturers by this huge capital flight, one of which was the paucity of infrastructure, particularly electricity supply and efficient road and rail network, among others. Others are lack of incentives for research institutions in the country to build their capacity; the Central Bank of Nigeria’s (CBN’s) policy that excluded importers of 41 items from access to its official foreign exchange (forex) market.

    The CBN argued that the 41 items were finished products and were not qualify for forex. But manufacturers, who were affected by the policy had consistently kicked, insisting that what was banned were finished products for their sector. They lamented that the policy, which made it extremely difficult for them to access certain raw materials led to factory closures and loss of jobs.

    But a new strategic approach aimed at halting more factory closures and the attendant loss of jobs by significantly cutting the huge money spent on raw materials import is underway. Essentially, the strategy, The Nation learnt, involves a renewed collaboration between the government and the real sector operators, especially manufacturers looking inwards to harness local raw materials and save the economy from the burden of continuous importation.

    RMRDC Director-General, Dr. Hussaini Dikko Ibrahim, articulated the new approach when he said the government was developing a new national strategy on raw materials development and competitiveness in research and development institutions. He said this was to enable the country attain sustainable socio-economic growth and development.

    “Today, particularly with the recession, Nigeria is confronted with the challenges of business failures, factory closures and high unemployment and inflationary pressures. Also, we are plagued by depleted foreign exchange earnings and reserve, drastic devaluation of the national currency, huge arrears of workers’ salaries and pension, among others,”he said.

    Ibrahim said the strategy, which would be in partnership with industries and businesses, would accelerate and re-direct the pathways to recovery and growth of the economy. He said the initiative was aimed at attaining global competitiveness in raw materials and products development with the attendant boosts in  local and international confidence in Made-in-Nigeria products and services.

    He added that the unique features of the strategy include forging partnerships among Research and Development (R&D) institutions with industries, businesses and entrepreneurs towards providing solid and quality national infrastructure.

    It also aims at ensuring co-ordinated mapping of some 100 Nigerian raw materials and products on the United Nations (UN) harmonised classification scheme map.

    The RMRDC boss said this was in addition to the alignment of the nation’s R&D institutions with the Manufactures’ Association of Nigeria (MAN), National Association of Small  Scale Industrialists (NASSI) and Nigerian Association of Small & Medium Enterprises (NASME).

    The collaboration, he said, was geared towards promoting local utilisation of raw materials, R&D efforts to increase industrial capacity utilisation and contribution of manufacturing to the nation’s Gross Domestic Product (GDP).

    Ibrahim expressed optimism that the successful implementation of the strategy will be far-reaching and beneficial to Nigeria. According to him, it would enhance alliance among Nigerian scientists and entrepreneurs, industries and businesses.

    He regretted that the manufacturing sector has been facing stiff competition due to bilateral and multilateral trade agreements such as Economic Community of West African States (ECOWAS) Trade Liberalisation scheme (ETLS), Common External Tariff (CET) and the impending Economic Partnership Agreements (EPA), adding that other World Trade Organisation (WTO) trade policies are transforming the world economy into a vast free-trading zone.

    The RMRDC Chief, however, observed that as a way of addressing the raw materials question, there was the need for research and development to identify local substitutes or alternative raw materials in local manufacturing.

    He said: “As we all know, R& D in Nigeria both in the tertiary educational institutions and government-owned research institutes is not up to the level required. This could be attributed to a number of factors, including inadequate research infrastructure. Often times research results are left on the shelves of the laboratories where they are conducted.

    “There is poor linkage between the researches and prospective investors and entrepreneurs to commercialise these innovations. One way to address this is for manufacturers to get involved in R&D for the development of local raw material substitutes to imported ones, new technologies in raw materials processing or new products development for the local market.”

    Ibrahim revealed that government tax laws have provided a number of incentives to encourage manufacturers to venture into R&D for the development of local raw material substitutes to imported ones.

    The RMRDC Chief noted that over 10 billion raw materials are available in the country, with every square metre having over 10,000 square metric tones of solid materials. He argued that indigenous manufacturers have no reason to import raw materials or machinery as almost all they need for their processes are in the country.

    According to him, RMRDC’s studies and researches have made the nation a net exporter of cement, with over 25 million metric tonnes unlike what it was in 2002 when Nigeria was importing the product with the scarce foreign exchange, which was draining the economy.

    Real sector operators’ position

    MAN President, Dr. Frank Udemba Jacobs, stressed the strategic place of manufacturing in driving growth and economic development in a country. He observed that the major challenge of the sector was obsolete machinery and equipment, which impeded the efficiency of manufacturers, especially small and medium-scale ones.

    According to him, it has slowed down production, inhibited efficiency and economy of scale. He, therefore, pledged MAN ‘s preparedness poised towards leading the sector to play its key role in the new vision of the nation with the belief that Nigeria has the potential to become one of the leading industrialised economies of the world.

    Jacobs called on SMEs to learn new processes on how to boost their production output, reduce cost, improve product quality and manufacture for new markets. He canvassed a structural shift towards higher growth in more value-addition and higher labour-absorbing manufacturing that will drive a shift to a developmental path with capacity to generate more growth and higher levels of employment.

    He also noted that appropriate policy choices in the productive sector can engender economy-wide employment.

    The National Office for Technology Acquisition and Promotion (NOTAP) Director-General, Dr. Ibrahim Dan Azumi, frowned at the level of raw material importation and asked that it should be reduced to encourage local content.

    He said: “Let’s build a linkage between manufacturing and the academia and join forces to make things better for the socio-economic development of the country. There is the need to commercialise the credible researches that have been done in our universities. Besides, the government needs to develop infrastructure to encourage local manufacturing.”

    On his part, Director of Government Relations and Public Policy, Sub-Saharan Africa Operations, Procter and Gamble (P&G), Temitope Illuyemi, lamented the N19.5 trillion spent on the importation of raw materials between 2000 and 2016.

    Speaking at a forum for suppliers in the manufacturing sector, organised by her company in partnership with the Ministry of Industry, Trade and Investment and MAN, she said: “A huge percentage of industrial raw materials for manufacturing of products are still being imported into the country.”

    Speaking on the objectives of the forum, Illuyemi said: “Backward integration is essential to the growth of the Nigerian economy and P&G’s aim was to encourage our global partners do the same and thereby promote technology transfer. We will work to pre-qualify local suppliers for materials used in the production of consumer packaged products and by extension, build capability of local manufacturers to compete effectively in regional value chains and further strengthen the diversification efforts of the Nigerian government.”

    She noted that for the manufacturing sector to experience potential growth going forward, it needs to focus on local production and companies like Procter & Gamble are taking deliberate steps to support the Federal Government’s economic development agenda.

    According to her, P&G currently manufactures its products close to consumers and this has aided technology transfer. Also, the company’s continuous local investment is a testament to its commitment to support the Federal Government’s diversification efforts.

    Illuyemi maintained that it was imperative for all sectors to intensify efforts towards enabling local entrepreneurship development and helping with the capabilities required to produce raw materials locally. According to her, this will go a long way in actualising the country’s economic development agenda.

    She further stated that the company remained committed to the Nigerian economy and has invested over $500 million in the country till date.

    Earlier, Minister of Science & Technology, Dr. Ogbonnaya Onu, had encouraged Nigerian manufacturers to patronise locally made raw materials for their production. He said it was the only way the economy can grow as it has a multiplier effect.

    The Federal Government, he said, is in support of the growth of the private sector and an economy driven by the sector. He encouraged them to use RMRDC raw materials technology data.

    He further asked investors to show interest in sponsoring alternative raw material investigation and subsequent usage in the manufacturing sector.

  • Turkish association moves to increase electrical products in Nigeria

    Members of the Turkish Electro-Technology Exporters’ Association (TET)), a professional body representing over 7,500 companies, have expressed readiness to increase their electrical products in the market.

    TET Vice Chairman, Mr Mehmet Kavaklioglu, said Nigeria is an expanding business destination.

    Kavaklioglu, who led a trade mission of 23 Turkish electrical manufacturing companies to Nigeria, said the companies were prepared to take advantage of Nigeria’s increasing population for Turkish electrical products.

    “We are really targeting some world markets for our electrical products and Nigeria is one of our target markets. We really see new business opportunities in Nigeria, as a country with big population and a large market for our products.

    “We do know that there are already some of our Turkish electrical manufacturing companies doing businesses in Nigeria. But this is not enough. We are set to increase our business potential and opportunities that currently exist in the Nigerian electrical industry,’’ he said.

    Kavaklioglu said companies on the trade mission represented Turkish companies drawn from consumer electronics and appliances, lighting, cables, electrical transmission and distribution equipment, industrial automation products and specialised cables.

    The vice chairman said the trade mission, which had visited Nigeria in 2011, came again to meet with Nigerians through Business-to- Business interactions.

    He added that the trade mission had also interacted with different Nigerian Chamber of Commerce and Industries, as well as stakeholders in Nigeria’s electrical distribution companies.

    According to him, Turkey’s fast-growing electronics, white goods and electrical components sector annually exports over $10billion in goods to the global market.

  • Reps score SON 95% on laboratory center

    The House of Representative Committee on Industry has scored the Standards Organisation of Nigeria (SON) high on effective implementation of budgetary provisions for its laboratory complex at Ogba, Ikeja.

    The Committee Chairman, Abubakar Moriki, who led an eight-man delegate of Patrick Aisowieren; Micky Kazzim; Sam Onuigbo; Ahmad Kalambaina; Mohammed Ibrahim; Baderinwa Bamidele and Yusuf Buba praised the Director-General (DG), Osita Aboloma, for attaining 95 per cent completion of the project.

    He said the inspection was necessary to ascertain the depth of implementation of 2017 budget in preparation for the passing of the 2018 appropriation bill.

    The Chairman, who commended the spate of construction and equipping, said the observation of the laboratory complex will forge the basis for the provision of facilities to  jump start operations.

    Touring the four-storey complex, which include refrigerator testing chamber, food microbiology, food data processing unit, among others, Moriki said full operation should begin by March.

    He said: “Towards the tail end of 2016, we were here and the project was at an appreciable level of completion though the equipments were not installed and positioned in their respective offices. Now in 2018 and in the process of considering the appropriation for the Standards Organisation of Nigeria (SON), it is necessary to come and visit the facility and see other places where they are conducting  their operations.”

    He further urged the DG to ensure strategic distribution of the testing equipment across regional laboratories to avoid concentration in a locale.

    “We should be looking forward to seeing many of these testing equipment separated all over, not necessarily concentrated in one location. It is a service you provide to many of the cement companies,” he said.

    Welcoming the delegates, Aboloma said the organisation was deeply committed to realising the country’s goal of standardisation both locally and internationally.

    He said the laboratory has also been designed to accommodate standardi-sation needs of the West African sub-region.

    Aboloma said analysis of locally made cement components, for instance,  will no longer be a challenge as a laboratory for chemical test analysis would be operational to certify strength of compression, thereby limiting the risks of building collapses.

    The noted that new departments  would be spread among the new phases of regional laboratories coming up  in the Northeast, Southeast, and Southwest.

    He said: “We have been looking forward to this visit because you are our major advisers. We are open minded and open for change. We are open to anything that would add value to the work we do. This laboratory has been accredited to ensure that anything certified in Nigeria will be acceptable all over the world.”

  • Electricity: Manufacturers adopt survival means

    Manufacturers under the auspices of the Manufacturers Association of Nigeria (MAN) have taken their destinies in their hands by providing electricity for their operations. Electricity supply dearth is a common knowledge as the national supply has being adjudged the second poorest in the world second only to Yemen, a war torn country, by Spectatorindex twitter handle.

    In an interview with The Nation, MAN President, Dr Frank Udemba Jacobs,  lamented that for over three decades manufacturers have consistently argued on the need to give the sector special consideration in energy supply without commensurate response from the government.

    He regretted that after advocating improvement in electricity supply to industries for over three decades without respite, his association had no choice but take their destinies in their hands.

    He reiterated MAN’s effort at complementing the government attempt at resolving the huge challenge. He said: “Nigeria has a huge population of over 180 million people based on World Bank figure; huge and thriving manufacturing and other businesses, but delivers about 4000 megawatts (MW) of electricity per day.

    “By the rule of thumb, the quantum of electricity generated in the economy should be at least, 180,000MW per day; that is an average of one megawatt per 1000 persons. Moreover, the World Bank report also indicates that Nigeria’s electricity per capita was 142 kilowatts as at 2013, which is well below the world per capita energy of 3,104.382 kilowatts in the same year. Apart from the dearth of electricity supply to the industries, the quality and constant arbitrary increase in the tariff are also major challenges.”

    Jacobs lamented that electricity supply challenges have become hydra-headed to his association and operations.

    On the way forward, he said his association has resorted to self-generated energy, notwithstanding the huge cost associated with such endeavour. He revealed that in 2016 alone, manufacturers expended over N129.0 billion on alternative energy source, noting that the electricity challenge has been one of the major factors responsible for the poor competitiveness of Nigerian manufactured products as it accounts for over 36 per cent of total cost of production in the sector.

    He, however, commended the Federal Government’s progressive effort at improving electricity supply in the country beginning with the privatisation of the power sector. The government, he said, has also shown commitment to helping the companies in the electricity production chain and solve their huge challenges.

    He lauded the Central Bank of Nigeria’s (CBN) N213 billion Nigerian Electricity Market Stabilisation Facility (NEMSF)  support for electricity companies in addressing their challenges. He, however, regretted that despite the support from the government, power supply remains inadequate for domestic and industrial needs.

    According to him, in the light of the various challenges in the electricity sector, MAN he said, is also making significant efforts at addressing the energy challenges of its members.

    On how far the association has gone in achieving sufficiency in electricity. He said: “ The Manufacturers Power Development Company Limited (MPDCL) was incorporated by MAN to drive improvement of electricity supply to members of the association, especially within the industrial clusters.

    “The MPDCL within the last quarter of 2017, has signed Memoranda of Understanding (MoU) with some Independent Power Producers (IPP) and the projects are already at different implementation stages. The Association is also encouraging its members to key into energy efficiency production system.”

    Spectra Industries Limited Chief Executive Officer (CEO), Mr. Duro Kuteyi, also urged the Federal Government on the need to have special electricity rate for manufacturers. He criticised a situation where manufacturers are charged high electricity rates, which he said have the capacity to erode their profits and affect their bottom line.

    Responding to the invitation of the Minister of Power, Works and Housing, Mr. Babatunde Fashola’s invitation to manufacturers to take -up the available 2,000 mega watts excess electricity, he questioned the minister on the modalities and how manufacturers can access it, noting that it can only work where there are manufacturing clusters. He argued that the plan begs the question and will not address it.

    He asked the minister to evolve a novel method of distributing electricity to where needed most so that manufacturers can spend less on electricity supply in their productions.

     

  • Tunisia plans to sell over 50% stake in cement firm

    Tunisia plans to sell over 50% stake in cement firm

    Tunisia has called for Expression of Interest for the acquisition of majority stake of 50.52 per cent in Carthage Cement S.A. Carthage Cement is a public company which is specialised in the production of cement, aggregates and concrete.

    The 2.2 million ton capacity plant, which was equipped by a market-leading supplier of cement industry equipment, is located in the southeast of Tunis. The company operates two side-by-side quarries, the first has an area of 218 hectares and is on the property, unlike the second that measures 140 hectares.

    In a statement the Tunisian government   and  Bina Corp,  who are the controlling shareholders of the cement company,  said they have decided  through a tender to proceed through a public tender to sell the company to a strategic and/or a financial investor, who is capable of insuring its management and development.

    Tunisian government said the call for Expression of Interest is to guide interested investors on the pre-qualification document’s withdrawal.

    The pre-qualified candidates will be informed of their qualification next month and will be invited to withdraw the tender documents including the tender terms and conditions, information memorandum and the drafts of the share purchase agreements (SPA).

    This is besides having the opportunity to conduct due diligence, visit the plant, meet the management and propose amendments to the SPA.

  • Expert makes case for palm oil production

    The Managing Director of JEKON Integrated Farms Nigeria Ltd Mr Godswealth Henry has urged the Federal Government to include palm oil on its lists of agricultural produce for development.

    Henry gave this advice in an interview in Lagos. He said considering the many uses of palm oil and its by-products, it was necessary for governments to support palm oil farmers.

    According to him, the palm oil farming is championed by individuals and private sector’s initiatives.

    He said: “The palm oil farmers are still struggling to meet the nation’s demand, especially during the flat seasons. It is a well-known fact that the  various applications to the Ministry of Agriculture and Rural Development to help the farmers to realise the increasing rate of demand for palm oil have not been successful. Palm oil, in addition to cooking, is also in high demand in households and cosmetics industries.”

    Henry said though his company has two palm oil estates in Cross River and Akwa Ibom states, the output are not enough to meet demands of the produce.

    He said between January and May, which were palm oil pick season, the company’s milling factory produced 50 tonnes of palm oil weekly.

    He said during the flat season, which was between June and December, the milling plant hardly produced five tonnes per weekly.

  • Job losses force focus on entrepreneurship, industrialisation

    Job losses force focus on entrepreneurship, industrialisation

    Over four million Nigerians lost their jobs last year, according to the National Bureau of Statistics (NBS). Unemployment rate rose at an all-time high of 18.8 per cent in the third quarter of 2017, with NBS projecting that the figure might get worse. The grim statistics, which underscored the economy’s vulnerability despite exiting the recession, may have prompted renewed focus on entrepreneurship, industrialisation and stronger public-private sector collaboration this year. Assistant Editor CHIKODI OKEREOCHA reports.

    Grim statistics abound to challenge economic managers working with the private sector to halt the unemployment rate in the country.

    The National Bureau of Statistics (NBS) brought the reality of the crisis in the labour market nearer home when it said that in nine months, last January to September, 4.07 million Nigerians lost their jobs.

    The Bureau, in its unemployment report for third quarter of last year, said the number of Nigerians that became unemployed rose from 11.92 million in the first quarter of last year to 13.58 million and 15.99 million in the second and third quarters.

    It said between the second and the third quarters, the number of economically active or working age population (15-64) increased from 110.3 million to 111.1 million.

    It said the population of Nigeria’s labour force increased from 83.9 million in second quarter 2017 to 85.1 million in third quarter, while the total number of people in full-time employment (at least 40 hours weekly) declined from 52.7 million in second quarter to 51.1 million in third quarter.

    The Bureau added that unemployment rate increased from 14.2 per cent in fourth quarter 2016 to 16.2 per cent in the second quarter and 18.8 per cent in third quarter.

    The NBS report further said the number of people within the labour force who are unemployed or underemployed increased from 13.6 million and 17.7 million in the second quarter, to 15.9 million and 18 million in third quarter.

    According to it, the total unemployment and underemployment combined increased from 37.2 per cent in the previous quarter to 40 per cent in third quarter.

    The Bureau, among other disturbing revelations, emphasised that the increasing unemployment and underemployment rates implied that though the economy was out of recession, the domestic labour market was still fragile.

    NBS added that growths in the past two quarters of last year had also not been strong enough to provide employment in Nigeria’s domestic labour market.

    Though disconcerting, the unemployment figures churned out by the NBS only confirmed what not a few Nigerians and operators in various sectors already knew: Nigeria’s unemployment crisis has reached frightening dimension.

    The situation, they noted, requires more efforts by various tiers of the government, private sector operators, development partners, unemployed Nigerians and other critical stakeholders to stem the tide this New Year.

    Even before the NBS report, which jolted Nigerians and also put the administration on the spot with regards to promise in job creation, experts in the employment space had consistently canvassed increased support for entrepreneurship, particularly for Small and Medium Enterprises (SMEs).

    They also argue that there is no better time than now to put more steam into the drive for industrialisation.

    The United Nations Industrial Development Organisation (UNIDO) Regional Office, Nigeria, is one of those that has long pushed this position by calling on both the Federal and State Governments to increase their support for entrepreneurship and industrial development, noting that this could be done by putting in place more business –friendly policies and incentives.

    The Officer in Charge, UNIDO Regional Office, Nigeria, Dr. Chuma Ezedinma, did not mince words when he noted: “Entrepreneurship and industrialisation are two important ingredients for stimulating economic growth, job creation and poverty reduction in both developed economies and economies in transition including Nigeria.”

    Ezedinma, who spoke at a UNIDO Stakeholders’ Workshop in Abuja, also said increased support for SMEs could help tame the unemployment monster.

    “Successful SMEs are the primary engines for job creation, income growth, and poverty reduction. Small businesses broaden the base of participation in society, create jobs, decentralise economic power, and give people a stake in the future.”

    He said the government could encourage entrepreneurship and small businesses through its tax policy (corporate tax rate reductions, tax credits for investment and tax holidays).

    Others are regulatory policy (simpler regulatory processes and reducing the cost of compliance with government regulations), access to capital (here the proposed development commercial banks can be of assistance), and the legal protection of property rights.

    UNIDO has been at the forefront of promoting Inclusive and Sustainable Industrial Development (ISID) in Nigeria and globally. It has never hidden its intention to support and partner the government and private sector in order to achieve this.

    But, going by the NBS latest unemployment statistics, the government and private sector appear to have failed to work with the Organisation to enable Nigerians benefit maximally from UNIDO’s global expertise in the area of entrepreneurship and industrial development.

    However, a new dawn may be in the offing for unemployed Nigerians this year as job creation appears to engage the attention of government and the private sector.

    Worried by the fragility of the domestic labour market, despite the economy’s exit from recession, members of the Organised Private Sector (OPS) have urged the Federal Government to adopt measures to create jobs this year.

    The OPS in its reaction to the 18.8 per cent unemployment rate, noted that many employers, including the public sector, found it difficult to pay workers as and when due.

    The OPS said this had necessitated the need for measures that would impact on citizens’ welfare, especially lower food prices, reduced cost of healthcare, improved transportation system, constant power supply and security of lives and property.

    Noting that Nigeria’s unemployment rate was one of the highest in the world, Lagos Chamber of Commerce and Industry (LCCI) Director-General, Mr. Muda Yusuf, said increased support for SMEs and business start-ups through capacity building and funding would help.

    He identified lack of finance, inadequate infrastructural facilities, shortage of skilled manpower, poor entrepreneurial skills and lack of enabling operating environment, among others, as some of the challenges holding SMEs down. He, therefore, said there was the need to address these challenges to unleash SMEs’ potential.

    According to Yusuf, SMEs boast huge potential for employment generation and wealth creation, if adequately encouraged. He said by helping to create more jobs, SMEs reduce unemployment and its associated high crime rate.

    Indeed, the rising spate of unemployment, particularly among the youths, according to the experts, was responsible for the various vices plaguing the country. They include political instability, civil unrest, rising crime wave (kidnapping, robbery, cultism, prostitution, advanced fee fraud, otherwise called ‘419’) and reduced wages, among others.

    To curtail the rising crime wave across the country, experts have called on the government to fast-track its diversification strategy as encapsulated in the Economic Recovery and Growth Plan (ERGP) by supporting growth in income enhancing and job creating sectors, such as SMEs, mining and agriculture.

     

    Govt: More jobs coming this year

     

    But the President Muhammadu Buhari administration has said the government was slowly stabilising the economy through sustainable policies and programmes captured in the economic recovery plan, as part of efforts to create millions of jobs this year.

    Buhari in his New Year speech said the massive public works being spearheaded by his government would lead to the nation’s recovery and simultaneously create millions of jobs.

    According to him, the diversification efforts have resulted in improved output, particularly in the agriculture and solid minerals sectors, while the relative exchange rate stability has improved the manufacturing sector’s performance.

    “Two years ago, I appealed to people to go back to the land. I am highly gratified that agriculture has picked up, contributing to the government’s effort to restructure the economy.

    “Rice imports will stop this year. Local rice, fresher and more nutritious will be on our dishes from now on,” the president added.

    Apparently aligning with the call for public-private sector collaboration in job creation, Buhari appealed to “enterprising Nigerians” with useful ideas to get involved in job creation, noting that advanced countries were built through the involvement of enterprising persons.

    Minister of Labour and Employment, Dr Chris Ngige, also assured Nigerians of a brighter 2018. According to him, efforts were in top gear by the Federal Government to stem job losses and create new ones.

    The minister in a New Year message urged Nigerians not to tremble over the statistics on job losses. According to him, a similar release by the Central Bank of Nigeria (CBN) indicated more than seven million job growth in the agricultural sector.

    Ngige said: “I wish to assure Nigerians that 2018 will not be as bleak as 2017 in terms of job losses as the Federal Government has put enough checks to forestall a repeat of what was encountered in 2017.

    “The figure released by the NBS must be placed alongside statistics by the CBN, which showed that over seven million jobs have been created in the agricultural sector. This is the only way to arrive at a balanced job situation in the country.”

    The Minister reiterated that the Federal Government will work harder in the New Year to create more jobs and sustain the efforts at protecting the existing ones. “We shall continue to maintain our principled stand against retrenchment and encourage the state governments to do same,” he added.

    However, beyond getting state governments’ buy-in to rein in the unemployment monster that is believed to be responsible for the various vices currently plaguing the country, experts in diverse sectors argue that there is the need to overhaul the programmes and courses being run by universities and also change the current paradigm from emphasis on credentials and certificates to competence, among other solutions .

     

  • ICRC: Port concession has been successful

    ICRC: Port concession has been successful

    Nigeria’s port concession exercise has been successful and it is “doing very well,” the Acting Director-General, Infrastructure Concession Regulatory Commission (ICRC), Mr. Chidi Izuwah, has said.

    He, however, said the Commission was working with the Nigerian Ports Authority (NPA) to carry out an in-depth study on the best mechanism for the review of the 11-year old port concession.

    “We are doing everything so that Nigerians can be aware and informed that things are being done in a transparent manner. The port concession is doing very well. We might complain about the inadequacies, but let us look at what the ports were about 20 years ago in terms of demurrage.

    “Let us keep telling people that nobody hears about wharf rats any more. Wharf rats have been eliminated completely because of port concession,’’ Izuwah said, in Lagos, during the week.

    He, however, said there could be cases where some concessionaires might not have fully recouped their investments, pointing out that the concession review will not be based on “emotions or man-know-man.”

    According to Izuwah, “it will be based on pure data because anything that needs to be done under the ICRC will be approved by the Federal Executive Council. “So, whatever the outcome of the review process, every Nigerian will know,”he said.

    On the Nigerian Shippers’ Council (NSC’s) proposed truck transit parks, Izuwah said there would be a bankable study to be carried out to establish the optimal location to position the parks, adding that the Federal Government was also aware that port connectivity with the rail was very key.

    “Look at what the Federal Government is doing about the Wharf–Apapa road, the implementation may not be going as fast as it can because of funding. That is why we are working on the side to bring the private sector to help us. So, government is working day and night to create a better Nigeria for everybody,” Izuwah added.