The Nation Newspaper

Category: Industry

  • Pharmaceuticals canvass policy coherence

    •Invest N20b in factory upgrades in five years

    Pharmaceutical companies in Nigeria have canvassed policy consistency and clarity as well as a new strategy for drug import to enable them remain in business.

    The pharmaceutical companies, who are members of the Pharmaceutical Manufacturers Group of the Manufacturers Association of Nigeria (PMG-MAN), lamented that over 120 of its members were being threatened by policy flip-flops.

    Making this known at the PMG-MAN/Private Sector Health Alliance of Nigeria (PHN) Forum held in Abuja, PMG-MAN Chairman Mr. Okey Akpa said drug makers were not carried along when major policies affecting them were made.

    He said, for instance, the Common External Tariff (CET) threatened to wipe out the industry between June 2015 and last November, until the Federal Government intervened.

    “The CET threatened to wipe us out until the last year’s fiscal policy changed the dynamics. The CET provides for five to 20 per cent tariff for importation of pharmaceutical raw materials, but allows finished medicines to enter into any country in the sub-region at no duty.

    “But we are grateful that the Federal Government intervened with the 2016 Fiscal Policy, which imposed tariffs on four categories of imported drugs,” Akpa said.

    He stressed the need for an import strategy that will hand over importation to those who are already manufacturing medicines. This, he said, means that they have plans to start producing the drugs.

    “When you hand importation to those who are not manufacturing and have no plan to do so, you are discouraging local manufacturing,” Akpa said.

    PHN Managing Director/CEO, Muntaqa Umar-Sadiq, said there was the need to create an enabling environment for local manufacturers to thrive through effective supply chain management.

    “At the heart of this vision is the Africa Resource Centre, which is targeted at mobilising the private sector and the academia to complement other actors currently supporting the public health supply chain, to accelerate and sustain improvement in key supply chain outcomes,” he said.

    Umar-Sadiq stressed the need for collaboration by all stakeholders in the value chain to ensure efficiency in drug distribution and enable the country achieve self-sufficiency in drug production.

    Fidson Healthcare Plc Managing Director/CEO, Mr. Fidelis Ayebae, said N20 billion had been spent by pharmaceutical firms in the last five years in factory, quality and facility upgrades, describing this as “a monumental achievement”.

    Dangote Industries Limited President, Alhaji Aliko Dangote, said that logistics remained the biggest challenge facing manufacturers after energy problem, stressing the need for synergy to save costs.

    “How do we partner with the government in such a way that it brings returns on investment?” Dangote asked, noting that “as pharmaceuticals, we should not all bid for the same contract, but create efficiency in warehousing.”

    National Health Insurance Scheme (NHIS) Executive Secretary, Usman Yusuf, called for partnership between drug makers and the agency to widen health insurance coverage.

    He said the only way to ensure efficiency in drug distribution was to see a good healthcare system as a human right and a tool for poverty alleviation.

    “Our health insurance coverage is still very low. We need partnership with all the stakeholders to ensure the insurance scheme is implemented at all levels,” he said.

  • Made-in-Nigeria goods ’ ll boost SMEs, create jobs

    The Federal Government’s strong push to encourage Nigerians to support locally- made goods and services will help encourage entrepreneurship at the Small and Medium Enterprise (SME) segment.

    This could spur diversification of the economy, create local jobs, and reduce unemployment.

    The Regional Director for Sage in West Africa, Mr. Magnus Nmonwu, made this known on the sideline of the Africa Day celebration with the theme, “Building a better Africa and a better world.”

    Sage is the market and technology leader for integrated accounting, payroll, and payment systems, supporting the ambition of entrepreneurs and business builders.

    Nmonwu said: “Small businesses and start-ups are the engines that will power Nigeria’s growth into the future.

    “The sooner we start supporting our proudly Nigerian suppliers and service providers, the better for us. With our support, they can create wealth and jobs for the country, and many of them could grow into globally competitive exporters.”

    Nmonwu said the Federal Government should be praised for putting the spotlight on local manufacturers through initiatives such as the Made-in-Nigeria Dress Days and an Executive Order compelling state agencies to direct at least 40 per cent of procurement to Made-in-Nigeria goods and services.

    He stressed that local service providers and manufacturers could play an important role in the revival of Nigeria’s economy.

    “We welcome the effort to encourage industrialisation and diversify the economy from commodities into new areas. Strong local demand is the foundation of a manufacturing sector that can grow into an export industry,” Nmonwu said.

    According to him, government was putting its money where its mouth is with its Executive Order and giving the public a good example to follow.

    The Sage Regional Director, however, said there was scope for the public sector to do more to encourage the growth of SMEs.

    Such encouragement, he said, includes tax incentives for local producers, support in accessing finance, and facilitating mentoring and skills development programmes between small business and bigger companies.

    “The government should encourage small businesses to adopt business software so that they can improve regulatory compliance and financial controls. This could also help in tracking the performance of those that benefit from state loans and incentives, and hold them accountable,” Nmonwu said.

    He added that infrastructure investment across roads, power, communications and ports are also important in spurring development of local industries.

  • Businessmen fellowship to hold seminar June 9

    To find solution to the nation’s economic woes, the Full Gospel Business Men’s Fellowship International (FGBMF) is organising a  business seminar in Lagos from June 9 to 10.

    FGBMF is a global network of business, career and professional men and women.

    At a briefing in Lagos, the body said the seminar, a yearly event, would take place in various loations.

    The first seminar with the theme: Building resilient small businesses, would expose participants to ways of building small scale businesses that could withstand the vagaries and shocks of the gestation, particularly during the recession.

    ‘’As the country battles with the effects of infrastructure deficit where 85 percent of small businesses collapse within  five years of their establishment, the seminar is providing alternatives to the hostile atmosphere, building resilience to overcome unexpected setbacks. The seminar would provide processes and skills required that would make small businesses withstand and survive adverse circumstances, such as the recession,’’ the organisers said.

    Topics to be discussed include: developing viable business strategies; managing self (capacities and energies); commercial vegetable farming; critical negotiation skills. Scholars and experienced chief executives expected are Adeniyi Ogunnusi;Charles Aladewolu; Toks Obayan, and Mrs Wonuola Adetayo, among others.

    The venue is the NECA House Event Centre, Alausa, Ikeja.

    The second seminar with the theme: Transiting from recession to growth is to see how recession could be turned into  opportunities for individuals and corporate entities to diversify, strategise and reload to drive growth when good times return, the body added.

    The seminar would teach how to look inward for raw materials for local industries and outward for exports of finished and semi-finished products. It would explain how businesses can leverage critical talent, team and interorganisational collaboration to bridge skill gaps and enhance productivity and how low-cost funding could be accessed by SMEs for ventures, it said.

    Topics include: Talents, teams, collaboration and productivity, cultivating hybrid coconut for local and export markets.

    Experts expected are Mazi Sam Ohuabunwa, Prof Pat Utomi, Mr Goddy Odiowaya, Dr Biodun  Adedipe, Prof Olugenga Okunola, Mr Babatunde Falele.

    The venue for the second seminar is  Lagos Sheraton and Towers, Ikeja, Lagos.

  • Lagos to explore tourism through biodiversity

    The Lagos State Government plans to explore tourism through biodiversity, Commissioner for the Environment Dr, Samuel Babatunde Adejare, has said.

    He spoke during this year’s International Day for Biological Diversity, held at Muri Okunola Park, Victoria Island, Lagos.

    The Commissioner, represented by the Special Adviser to the Governor on the Environment, Mr. Babatunde Hunpe, stressed that the government’s commitment to sustainable management of its biodiversity is unwavering.

    He said this is demonstrated through various laudable plans and programmes such as  the 10-year framework of programmes for sustainable consumption and production patterns, and the deliberate exposure of students to wetlands, zoological gardens and conservation areas in the state.

    This is through the introduction of Ecotourism programme and the annual Tree Planting Day through which over seven million trees of various species have been planted across the state to enrich its biodiversity.

    He further said that Lagos State is set to explore the linkage between tourism and biological diversity by preserving in their pristine state two major wetlands, which are Yaafin Wetland, Badagry and Itoikin Wetland, Epe.

    According to him, these preserved wetlands are expected to serve as tourist centres in the nearest future.

    “It is significant to note that a well-managed tourist sector can contribute significantly to reducing threats to the ecosystem, while maintaining/increasing key wildlife populations and biodiversity values through tourism revenue” Adejare said.

    He, however, cautioned that the environment must not be destroyed for development and survival, adding that biodiversity should be preserved because of its wildlife and natural attributes, which would attract people to the location.

    “Today as we join the rest of the world in marking this day, I urge us all (government, private sector, academia, religious and cultural institutions, old, young, everyone) to head the clarion call by resolving individually and collectively to work for the protection of the environment through biological resource conservation,” the Commissioner said.

  • ‘Over 50% of imported goods is counterfeit’

    Standards Organisation of Nigeria (SON) Director-General, Mr. Osita Aboloma has lamented the large presence of fake, counterfeit and sub-standard goods in the country. He put the figure at about 50 per cent.

    He said his agency is equipped more than ever to fight the menace especially with the implementation of SON ACT 14, 2015, which empowers the agency to prosecute any offender.

    Aboloma, who spoke to The Nation in his office in Lagos, said the agency is in the 36 States of the Federation including Abuja.

    He said they have over 41 life threatening items that are in the prohibition list with the mandate to seize them where ever they are found within 24 hours.

    While condemning the unscrupulous business men who import counterfeit goods, he explained that SON only destroys those goods as a last result when they cannot be corrected.

    Abaloma explained that if the contravention has to do with only packaging or minor correction they assist the importer or manufacturer to make the necessary adjustment.

    He said SON is determined to encourage the growth of Micro Small Medium Enterprises (MSMEs) and National Association of Small Scale Industries (NASSI) especially those who are not in the Mandatory Assessment Programme (MANCAP) yet to bring their product up to the Nigeria Industrial Standard (NIS).

    According to him, a programme tailored towards their size of business is in place where they are given reasonable rates to enable them go through the process of standardization of their products while they are also granted waivers in vehicle importation to mechanise their production processes.

    Abaloma said: “SON market surveillance covers the 36 states of the federation; the idea is to grow market confidence on imported and locally manufactured goods by making them go either through the SON Mandatory Assessment Programme (SONCAP) for imported products and MANCAP for locally manufactured products.

    “We want economic development and growth through adherence to standardization because standardization means order besides production cost savings”.

  • How Nigeria will improve trade ties with US, by Osinbajo

    How Nigeria will improve trade ties with US, by Osinbajo

    To improve trade ties with the United States (US), Nigeria will continue to seek potential and greater areas of cooperation with the Corporate Council on Africa (CCA), Acting President Yemi Osinbajo has said.

    He spoke when CCA President and CEO  Ms. Florizelle Liser visited him at the State House, Abuja, during her maiden trip to West Africa as part of the ongoing efforts to promote trade, investment and business engagement between the US and Africa.

    CCA, a Washington D.C.-based organisation, is the leading US business association focused solely on connecting business interests between the US and Africa.

    The Acting President said Nigeria would take advantage of the African Growth and Opportunity Act (AGOA) to the US market beyond oil.

    Osinbajo noted the importance of Nigeria being positioned in global supply chains; the progress being made in Niger Delta and the efforts at regaining the ease of doing business.

    On this inaugural visit to West Africa as CCA’s CEO, Ms. Liser visited Ghana and Nigeria. In Nigeria, aside meeting with the Acting President, she also met with other high level government officials and business leaders including Minister for Foreign Affairs, Geoffrey Onyeama and Minister of Industry, Trade And Investment, Dr. Okechukwu Enelamah.

    Others were Minister of State for Petroleum, Dr. Ibe Kachikwu; CEO, Nigerian Investment Promotion Commission (NIPC), Mrs. Yewande Sadiku; Executive Director and CEO, Nigerian Export Promotion Council (NEPC), Mr. Olusegun Awolowo, as well as the US Ambassador to Nigeria.

    At the Ministry of Foreign Affairs, Onyeama spoke about his plan to drive economic diplomacy and leverage Nigeria’s 114 foreign offices to drive Foreign Direct Investments (FDIs) into Nigeria.

    “At the last United Nations General Assembly (UNGA), we were in touch with CCA and we were very impressed with the enthusiasm of US businesses to engage with Nigeria,” Onyeama said.

    Enelamah commended Ms. Liser and CCA for their work in supporting Nigeria’s efforts to create an enabling business environment in Nigeria and promote US.-Nigeria business partnerships.

    On his part, Kachikwu discussed plans for modular refineries with the CCA President. According to him, the modular refineries model being introduced will be tailor-made to the Niger Delta, adding that the ministry would support investors looking to navigate the complex business environment.

    The Ministry also asked for CCA and its members’ support in streamlining and standardizing technology in the oil and gas sector in Nigeria. “We look to CCA when we have something strategic to do with the governments of Africa and promoting greater US FDI into Africa. We are in a trying period and we are looking at whatever investments that comes into Nigeria” the Minister said.

    Ms. Liser commended his efforts on “7-big wins” in the oil sector and stressed the importance of Africa to the US especially in the oil and gas sectors.

    She also had individual meetings with CCA members including Mr. Aliko Dangote of Dangote Group and Mr. Jim Ovia of Zenith Bank, both of whom sit on CCA’s Board of Directors.

    Ms. Liser was thereafter hosted to a special dinner by Dangote, which was attended by Ovia and a dozen leading Nigerian private sector stakeholders to discuss ways to promote greater US.-Nigeria investment and business partnerships, and more broadly, to raise the continent’s profile as an important US partner for global business.

    They also discussed CCA’s upcoming US-Africa Business Summit in June in Washington, D.C. as an important opportunity to showcase that partnership.

    CCA has 30 member companies in Ghana and Nigeria – indigenous and multinationals – including leading businesses like Dangote Group, Microsoft, Zenith Bank, ExxonMobil, Procter & Gamble, Adepetun Caxton-Martins Agbor& Segun (ACAS-LAW), Caterpillar, Kusamotu & Kusamotu and Afro Tourism.

    About 15 per cent of CCA member-companies are Africans, and Nigerian firms make up almost 50 per cent of that number. CCA has a satellite office in Abuja, which is led by Mr. Ekenem Isichei, Director for West Africa.

  • ‘We can reverse economic woes without external help’

    ‘We can reverse economic woes without external help’

    Nigeria’s economic woes can be reversed by the people’s change of attitude, Major Hamza Al-Mustapha, former chief security officer to the late of Head of State, Gen Sani Abacha, has said.

    Speaking at a book launch in Port Harcourt, the Rivers State capital, he advocated what he called  an ‘’inward looking policy’’ that would enable the country unlock its potential.

    The book titled: ‘’Wisdom Quotes and Statements’’ was written by Long John Inimgba, Senior Pastor of the House of Liberation Ministries, Port Harcourt.

    According to him, the economic situation calls for a change of approach and strategy that would involve Nigerians investing in their abilities.

    Nigerians, he said, should develop a sense of pride and patriotism which, according to him, are the two major motivating factors that can prop people to greatness.

    He said the experience of great nations showed that their people trusted in their abilities before firing their sense of pride with a patriotic zeal.

    Citing China and Japan, which he noted once confronted their challenges with what was available in their countries, Nigeria, he said, could learn from them to attain greatness.

    “Look at China. At a point in their history, the Chinese, after discovering that communism had failed them, closed their borders, examined their history and realised that they can provide leadership to the world. Today, the story is different”, Al-Mustapha said.

    He said there was a bigger lesson to learn from Japan, which had to first contend with devastating natural disasters “but out of pride and patriotism, the Japanese locked their borders and remained inside even with all the earthquakes. They dusted the ancient books of their forebears  and today without oil, Japan is a member of the G8 countries and is the world leader in electronics”.

    “What they did not have we have in abundance but ironically, we do not look inwards to see ways of harnessing and maximising the benefits of what we have”, he said, adding : ‘’It is still not late for Nigerians to have a rethink and redraw the strategy and scientifically chart a new course as I can see light at the end of the tunnel”.

    Imploring Nigerians to cohabit peacefully as ‘’we are one, North or South’’, Al- Mustapha said those who say the country is too big to be united and pursue a common destiny are wrong.

    ‘’We are just about the same size with Texas, one state in the United States of America”, he said.

  • Q1 economic growth negative, says NESG

    Q1 economic growth negative, says NESG

    Nigeria’s economic growth in first quarter (Q1) of the year remains negative, the Nigerian Economic Summit Group (NESG) Business Confidence Monitor (BCM) Q1-2017, has said.

    The report is a survey-based quarterly report that tracks actual performance of business activities and reveals the expectations of business managers in the short term.

    The report signed  by  NESG Chief Economist & Head of Research, Dr. Olusegun Omisakin, stated that actual performance of businesses in the first quarter of the year revealed that the business index stood at -5.4.

    He said the negative value was an indication that many businesses experienced sluggish performance during the period relative to the previous quarter.

    The statement, which was made available to The Nation, said on a sectoral basis, two sectors, manufacturing and services, showed positive performances with indices of 14.7 and 4.8.

    On the flip side, the trade sector showed a decline with an index of -10.4, while industrial sector (excluding manufacturing) recorded an index of -0.4, representing mild decline in activities.

    “Indices for the leading business indicators reviewed such as production, operating profit and employment were at positive readings of 9.8, 8.2 and 4.7 respectively, while cost of doing business and access to credit indices stood at negative trajectories of -41.3 and -23.7,” Omisakin said.

    According to him, in terms of future expectations, the BCM revealed a positive index of 34, which indicated positive sentiments and perception of business activities in the next two quarters-Q2 and Q3 2017.

  • Chamber of Commerce hails Executive Order on Ease of Doing Business

    Chamber of Commerce hails Executive Order on Ease of Doing Business

    The Lagos Chamber of Commerce & Industry (LCCI) has hailed the Executive Order aimed at changing the ways business are conducted in the country.

    In a statement signed by LCCI President, Mrs. Nike Akande, the Chamber appreciated the level of consultations on ease of doing business that preceded the signing of the orders.

    The statement maintained that the three main pillars of the executive orders namely promotion of transparency and efficiency in the business environment, support for local contents in public procurement by the Federal Government, and efficient operation and implementation of the federal budget, have been key focus areas of LCCI advocacy campaign over the last few years.

    LCCI noted that the executive orders will impact the ease of doing business, fast-track budgetary administration as well as promote made in Nigeria products. It urged the government to ensure that stipulated timelines are strictly adhered to by all the parties affected by the orders.

    It further asked for continued consultations and engagement with the business community and the bureaucracy in building understanding and buy-in of all stakeholders.

    The advocacy group pledged their preparedness to track the compliance with these orders by relevant Ministries Departments and Agencies (MDAs) with follow up compliance and report outcomes and feedback from private sector players on an ongoing basis.

    LCCI called on the State Governments to replicate these reforms as applicable in their respective state. According to the statement, this is required to complement the efforts of the Federal Government on Ease of Doing Business in Nigeria.

  • Japanese firm chief visits Lagos

    To  boost his firm’s sales in the country, Managing Director of Brothers International (Gulf) Japan Mr Soichi Murakami has visited the Computer Village, Ikeja, Lagos.

    Speaking at the event, Murakami said he was happy to be in the country, especially the Computer Village. He said he came to showcase his firm’s business lines and products. Noting that Brothers International is over 100 years old, he said the firm, which started as family sewing concern, has since diversified into the production of scanners, and printers, among others. He said it has presence in Europe and Asia, adding that its products are unique.  He promised to train technicians and engineers in the country.

    Murakami later opened an outlet owned by a sub-dealer of the firm Rolling Technology Communication at Awolowo House, Ikeja.

    Brothers International Sole Distributor Skysat Technologies Limited Managing Director Mr Izzat Debs said the products would do well in the market. He praised the Computer Allied Dealers Association of Nigeria (CAPDAN) for their support, urging them to continue to do so.

    CAPDAN Vice President Boniface Ania said Murakami’s visit was not a waste as every investor comes to Nigeria for business,, noting that it is profitable to do so. He said the village has the highest number of graduates in any market in the country  with over 135 plazas, adding that the firm should assist his colleagues in empowerment initiatives.