Category: Industry

  • Counterfeit products: Count us out, says China

    The Chinese Government has debunked claims by some Nigerian businessmen that it dumps fake and substandard goods in their market.

    Rather, the Asian citizens accused Nigerian business men of insisting that quality specification be reduced to reduce cost when they want to import products from them.

    The Organising Committee of China International Auto Products EXPO (CIAPE) Vice Chairman, Mrs. Zhang Yazhu, who stated this, urged the Federal Government to put policies in place to bar importers from asking for and importing low quality goods.

    He spoke in Lagos at the Lagos Chamber of Commerce & Industry (LCCI) and Nigeria- China Auto Parts Economic & Trade Seminar & Business Matchmaking Meeting.

    She expressed regrets over the dubiousness of a majority of importers who she accused of rubbishing the name of her country for business.

    She said when the goods were imported what the public would know is that they were worthless.

    According to Yazhu, Chinese businessmen love money just like their Nigerian counterparts and may be lured into making quick money due to the pressure of quick gain.

    She, however, said Chinese products were sold all over the world without complaints of sub- standardisation.

    She, therefore, urged policy makers to embark on advocacy that would encourage importers to act with good conscience as far as the lives of their citizenry were concerned.

    She said: “We have big and reliable manufacturers in China recognised by our home government, but if a Nigerian importer decides to buy from the streets, the Government of China will not be held responsible for buying poor quality goods.

    Yazhu said the essence of the expo was to showcase reliable manufacturers from China. “My argument and sincere advice is that Nigerians should stop asking our manufacturers for lower quality goods.

    “The Chinese auto parts market is growing in leaps and bounds and we have even gone past that to engage in energy cars. As a country with a huge population, we are happy doing business with Nigeria but their business men must play by the rules,” she said.

    Advisory Partner & Chief Economist, PriceWaterHouseCoopers (PWC), Dr. Andrew S. Nevin, said Nigeria could be a top car manufacturer if the right policy was in place. He regretted that over 86 per cent of cars sold last year in Nigeria were second hand.

    Nevin urged that the gap between cars made outside Nigeria and those  inside it be bridged, noting that it is the only way the economy would grow. He regretted that South Africa with smaller population has a thriving car industry unlike in Nigeria where used cars are the order of the day.

    On why the auto sector is not developed, Nevin attributed it to lack of an effective auto finance system. He regretted that 87 per cent of cars sold locally were sold in cash, while only a miserly 17 per cent of the cars are financed, especially for those who work in blue chip companies.

    While stressing that no economy could grow without basic structures in place, Nevin said: “There is the need to check the uncontrolled dumping of Tokunbo cars in the country in addition to the importers paying the right duties for imported cars.

    “The government should also work on the structuring of auto parts to ensure strategic distribution and marketing that will ensure that only genuine products are sold unlike the current situation where counterfeit products are passed as genuine parts.”

    Nevin said Nigeria could become a car hub where various brands of cars were manufactured in five years, if the right policies were in place and implemented.

    A Chevrolet brand importer, Mr. Gabrial Omowunmi, narrated his experience on his first visit to China. He said he was apprehensive as he thought every Chinese product was fake. He, however, said that to his dismay, his Chinese partners complained that it is only Nigerians and Angolans that insisted on their producing fake and substandard products.

    Omowunmi advised that stricter measures be put in place for imported products to ensure that quality goods are imported, especially now that there is recession.

    Earlier, LCCI President Mrs. Nike Akande said the auto and allied products sector was crucial to economic growth.

    She observed that over 90 per cent of the haulage of goods and the movement of persons were done through road transportation. She, therefore, canvassed the revitalisation of the railways.

  • Nigeria, others to enjoy China’s zero tariff for imports 

    Nigeria, Congo-Brazzaville, and Ethiopia, among others, are to enjoy zero tariff set by the Chinese Government for imported products from the African continent, China’s Deputy Director-General, Department of Africa Affairs, in the Ministry of Finance, Ambassador Dai Bing, has said.

    He added that Nigeria and other beneficiary African countries would enjoy several poverty alleviation programmes under the Chinese intensive development programme for the African continent.

    Dai stated that under the programme, China started with four provinces: Shantou; Chenzhen; Xiamen and Zhuhai. He said if the succeeds, it can expand to other areas, but if it doesn’t, the negative effect can be curtailed. “We have chosen some African countries for industrial cooperation namely Nigeria, Congo-Brazzaville, Ethiopia and others,” he said.

    The Chinese envoy added that China already has a 10-point action plan for and with Africa. They are industrialisation, agriculture modernisation, infrastructure, financial services, and development.

    Other include trade and investment facilities (which will centre mostly on promotion of African trade in China); poverty alleviation (Dai made reference to China’s poverty alleviation programme, which he said has already taken 730 million people out of poverty, with only 50 poor people remaining.

    According to him, China also hopes to get rid of poverty in Africa in five years and hopes to share its experience in poverty alleviation with Nigeria. He said in the area of public health, China has good medication for malaria eradication, which Nigeria can benefit from.

    With regards to the Forum of China and Africa Cooperation (FOCAC), Dai said that the 10 action plan was closely linked with Africa’s 2063 development agenda, which the country has already keyed into. He said this was agreed at a summit in Johannesburg, South Africa, in 2015.

    “At the summit, our President announced the 10 point agenda plan between China and Africa. And this 10 point cooperation plan has closed relations with your agenda 2063. We have started deeply on the 2063 agenda. We know the priority and the directions of the African continent,” Dai stated.

    He noted that in China’s cooperation plan, the priority was industralisation and agriculture, which are also the African continent’s priority. “The Chinese Government also promised $60 billion as supporting fund for our cooperation.

    “This $60 billion funding support is not only the cash. So, in this $60 billion, only $5 billion is used for non -interest loans; or $8 billion for the next three years. They are based on an all -beneficial principle, to help African countries promote their living standards and capability-building,” he explained.

    Dai said the other $35 billion is a beneficial loan; $20 billion is for capital projects. The money will be invested in sustainable development of infrastructure and assistance in Africa to help improve their business environment.

    “We are here to learn two principles; the first principle is that any country that wishes to absorb any foreign investment must have sound funds and complete laws and regulations and fair environment for law enforcement, which would ensure that investors feel safe.

    “It must have beneficial/proficient policies to ensure investors feel pleased to make profit. It must have light efficient and practical one-stop government services to make investors feel comfortable…” he said.

  • CBN creates special forex window for investors, exporters

    CBN creates special forex window for investors, exporters

    The Central Bank of Nigeria (CBN) has established a special Foreign Exchange (forex) widow for investors and exporters.

    Its Director, Financial Markets, Dr. Alvan Ikoku, said the purpose of the window was to boost liquidity in the forex market and ensure timely execution and settlement of eligible transactions.

    He listed eligible transactions under the new window to include invisible transactions such as loan repayments, loan interest payments, dividends, income remittances, capital repatriation, management service fees and consultancy fees.

    Other transactions on the eligible list are software subscription fees, technology transfer Agreements, personal home remittances including ‘miscellaneous payments’ as detailed under Memorandum 15 of the CBN Foreign Exchange Manual.

    Ikoku said the invisible transactions under this window excluded international airlines ticket sales’ remittances.

    He said the window covered bills for collection and any other trade-related payment obligations, which are at the instance of the customer.

    The CBN director clarified that the permitted invisible transactions and bills for collection were eligible to purchase forex sourced from the CBN forex window limited to secondary market intervention sales (SMIS) wholesale, which is spot and forwards sales.

    “International airlines ticket sales’ remittances shall only be eligible to access the CBN FX window (SMIS-Retail and Wholesale) spot and forwards. The supply of foreign currency to the window shall be through portfolio investors, exporters, authorised dealers and other parties with foreign currency to exchange to Naira,” he explained.

    Ikoku explained that the CBN shall also be a market participant at the window to promote liquidity and professional market conduct.

    He added that ýparticipants at the new window would trade via telephone until appreciable progress is made with the FX trading systems on-boarding process, which is the FMDQ OTC Securities Exchange (FMDQ) Thomson Reuters FX Trading & Auction Systems.

    He, however, advised authorised dealers to promote market transparency by encouraging their corporate clients to ensure the activities of the window are operated on the forex trading systems.ý

    As part of the operational requirements of the window, the CBN director said the exchange rates of the transactions in the window shall be as agreed between authorised dealers and their counterparties.

    He also said that the CBN reserved the right to intervene as a buyer or seller, as it deems fit, in the window, adding that information on transactions between authorised dealers would be reported to the CBN on a daily basis.

  • How to make economic recovery plan work, by experts

    How to make economic recovery plan work, by experts

    For Nigeria to achieve the strategic objectives outlined in the Economic Recovery and Growth Plan (ERGP), there is need for consistency in its implementation, experts have said.

    The experts, among them, Prof. Olu Ajakaiye and the Rwandan High Commissioner, Stanislas Kamanzi, spoke at the second edition of the Bullion Lecture organised by Centre for Financial Journalism in Lagos. They said the Federal Government must be consistent in implementing the policy.

    Noting that the ERGP could propel the country’s economic growth and development, they, urged the government to be committed, creative and determined to see it through.

    Ajakaiye, Chairman of African Centre for Shared Development Capacity Building (ACSDCB) in Ibadan, the Oyo State capital,   said past efforts to turn around the nation’s economic fortunes failed primarily because of  inconsistent implementation.

    In his lecture titled: “Nigeria’s economic recovery and growth plan: options for low cost financing of the programmes”, Ajakaiye expressed optimism that the recently-launched ERGP would not go the way of others before it.

    According to him, there are indications that the ERGP-2017-2020 will be accompanied by a Federal Government’s investment programmes, raising the prospects of a strong plan-budget link, a pre-requisite for an orderly effective and efficient plan implementation.

    He also expressed hope that state governments as well as private sector operators would be guided by the Federal Government’s Investment Programme (FGIP) in their investment plans.

    Ajakaiye, who also serves on the Federal Government’s Economic Advisory Group, said it was important for the government to be mindful of the dangers of another round of external debt overhang.

    He, spelt out options for low-cost financing of the programmes articulated in the plan. For instance, he stressed the need to broaden the tax base and improve the nation’s tax administration capacity and processes.

    According to him, this was to mobilise additional non-oil revenue to support the various programmes and activities aimed at structural transformation of the economy envisaged in the ERGP.

    Ajakaiye also suggested that Federal Government should consider using the stock market to privatise commercially viable national assets. “The government should list all of its commercial enterprises on the stock exchange (SE). This way, the government portfolio can be divested to the general public, including foreign investors and avoid the controversial and sometimes questionable privatisation arrangements,” he said.

    The ACSDCB chairman said in this case, the government divestment could be instrumental in mobilising financial resources to support worthy development activities, including infrastructure projects.

    “Clearly, the major attraction for Nigeria is the oil industry, making it imperative to ensure peace and stability in Niger Delta region if the projected annual foreign direct investment flow of around N970 billion is to be realised,” he further said.

    Ajakaiye regretted that Nigeria was experiencing stagflation, which, according to him, is marked by high inflation, low employment and negative growth. These, he pointed out, made it necessary for the government to pursue low cost measures to financing the multi-trillion naira investments envisaged in the ERGP.

    For the Chief Consultant, B. Adedipe Associates, Dr. Biodu Adedipe, there is need to deploy the over N7 trillion Pension Fund to finance the growth of the economy. He also noted that Pension Fund Administrators (PFA) can be encouraged to invest in bonds.

    The expert argued that the nation’s economic recovery would depend on the government’s commitment, creativity and determination to see through her well-thought out ideas and bring them into fruition. He advised on the need for the country to stand its ground on its convictions and economic models to stimulate the economy.

    Adedipe, for instance, recalled how the World Bank campaigned against the development of the steel sector in South Korea, but because of the country’s resolve, it now boasts cars that are sold all over the world.

    Citing instances with other countries that rejected some so-called expert advice by some global financial institutions and overseas countries, Adedipe advised government to pursue the policy without recourse to what anybody outside the country says.

    He regretted, for instance, that while South Korea took Nigeria’s model from Ajaokuta steel rolling mill and made something out of it, Nigeria sold hers as scrap, helping foreigners to engage in asset stripping. “No economy can grow with the way we do things,” he said.

    The expert, therefore, advised the Federal Government and policy makers to take time to study the country’s peculiar situation to determine what is good for her and insist on that path of growth rather than being dictated to by development partners and other countries.

    Kamanzi said micro finance was a  tool for poverty alleviation and wealth creation.

    The envoy said micro finance was essential to people-centred development, as it is an important stimulant of the creation of a middle income class that is critical for African economies to substantially take off.

    Ambassador Kamanzi, who was special guest at the lecture, added that it was important for lay people to understand the tenets and mechanisms of micro finance. He, therefore, challenged financial journalists to play a key role in this connection and to build on synergies with the operators in micro finance.

    He said in the past decade, Rwanda has been able to move more than a million people above the poverty line through a combination of strategic investment meant to uplift livelihoods of identified poor communities and tapping their own capacity to solve their problem, with a minimal push from Government.

    Former Acting Managing Director of Niger Delta Development Commission (NDDC), Mrs Ibim Semenitari, urged the government to be consistent in the implementation of its programmes.

    Mrs Semenitari challenged players in the private sector to show interest by identifying with government programmes and the need for them to see themselves as partners in progress with the government.

    Listing some factors that could aid the realisation of teh government’s programmes, Mrs Semenitari said: “There must be transparency on the part of government and all its agencies; the elite must show interest to the point of insisting that the right things must be done.

    “There must be a justice sector that guarantees transparency and fairness; there must be strong institutions that guarantee the actualisation of the plans, and matter of security is something we cannot wish away.”

  • Lagos’ fifth top destination of Fortune 500 companies

    Lagos is the fifth leading destination of Fortune 500 companies within the Middle East and Africa (MEA), a new report  by Infomineo, a global business research company specialising in the region, has said.

    Nigeria’s   commercial   nerve   centre   was   ahead   of   Cairo,   but   queues   behind   Dubai,     Johannesburg, Casablanca and Nairobi. Casablanca and Nairobi rank as leading destinations for Fortune 500 companies establishing international headquarters, the report said.

    The report said overall, there was a 17 per cent increase in the number of Fortune 500 companies   in   MEA  in   2016   compared   to   2015,   with   Johannesburg   being   the   leading destination for Africa Egypt remains behind the leaders due to political instability. However, it has seen a 250 percent increase in Fortune 500 investment since 2015, the report said. Germany and France are leading in terms of coverage rate while China has the lowest presence in the region.

    The MEA region has become increasingly important for the majority of global Fortune 500 companies. The report focuses on multinationals looking at entering, or already present, in the MEA region.

    The Infomineo analysis includes the regional footprint of multinationals in the MEA region, the most commonly chosen cities, and the factors which influence the selection of a region, country and city – each element revealing the dynamic growth patterns within the region and a clear trend of Fortune 500 companies establishing presence in MEA.

    Last year, 196 Fortune 500 companies had established a dedicated regional headquarters in the MEA  region. In the Middle-East, Dubai is the most  popular choice with  138 companies   establishing a dedicated entity in the city.

    There has also been a marked uptick in companies deciding to cover MEA from outside of the region – 38 companies up from 22 have established a regional headquarters in areas such as London, Brussels and Paris.

    Industry type plays a pivotal role in the selection of city and country. Financial services are  more likely to base  MEA coverage from London, while technology companies are  more inclined towards Casablanca or Lagos.

    The   latter   city   is   also   the   premier   location   for   organisations   looking   to   manage   their operations across Western Africa with 12 Fortune 500 companies already established in the city.

  • Germany urges Nigeria to step up vocational training

    The German Government has charged Nigeria to strengthen her  efforts at pulling  out  of   recession with vocational skills development, especially among youths.

    The Head, Delegation of German Industry and Commerce, Nigeria, Dr. Marc Lucassen, urged the Federal Government to learn from her German counterpart who, despite not having crude oil and agricultural   resources,   boosted   her   Gross   Domestic  Product (GDP) and reduced  unemployment through Dual Vocational Training (DVT).

    He spoke during at the graduation of the first batch of apprentices in Office Administration Profession in Ogun State of the on-going German Dual Vocational Training Partnership with Nigeria (G-DVTPW-N).

    Lucassen said for Nigeria to exit recession it must integrate DVT and collaborate with the private sector, stressing that DVT is better driven with Public-Private Partnership (PPP) initiative.

    The G-DVTPW-N Programme Coordinator, Kehinde Stephen Awoyele, explained that  G-DVTPW-N was an initiative of the Federal Republic of Germany geared towards raising the employability bar of youths and reducing poverty in the country.

    He said the programme was being financed by the German Federal Ministry for Economic Cooperation   and   Development   and   conducted   by  sequagGmbH.   It’s   steered   by   the   CCI Giessen-Friedberg as the German project partner.

  • ECA gets first woman Executive Secretary

    ECA gets first woman Executive Secretary

    United Nations (UN) Secretary General António Guterres has appointed Ms Vera Songwe as  the first female Executive Secretary of the Economic Commission for Africa (ECA).

    A statement on the commission’s website on Monday said Ms Songwe, a Cameroonian, is an economist and banking executive.

    It also said she was the first woman to ever be appointed to the position.

    Ms Songwe has been working as the International Finance Corporation’s (IFC’s) regional director for Africa covering West and Central Africa since 2015.

    She is also a non-resident Senior Fellow at The Brookings Institute: Global Development and    Africa Growth Initiative (since 2011).

    The commission said she would be bringing to the position a longstanding track record of    policy   advice   and   result   oriented   implementation   in   the   region,   coupled   with   a   strong strategic vision for the region.

    Ms Songwe  is a former Country Director for Senegal, Cape Verde, The Gambia, Guinea    Bissau and Mauritania at the World Bank.

    She is also a former Adviser to the Managing Director of the World Bank for Africa, Europe, Central Asia and South Asia Regions and Lead Country Sector Coordinator, it added.

  • Fertiliser price crash reignites hope for agric

    Fertiliser price crash reignites hope for agric

    The Federal Government’s plan to end food import by 2019 is on course. Its agreement with Morocco on the production of fertliser has started yielding results. The deal may have given fillip to using agricuture to drive economic diversification. Assistant Editor CHIKODI OKEREOCHA reports.

    For long, the greatest pain in the neck of local farmers remained the non-availability of fertiliser. Where the critical input was available, its price was beyond farmers’ reach, selling sometimes as high as between N9, 000 and N10, 000, depending on the location.

    Rural farmers naturally paid more because of the added cost of transporting the product from the city centres to the rural areas.

    Expectedly, this was a major disincentive to farmers wishing to embark on small, medium and large scale agriculture. It was also, by extension, a stumbling block on Federal Government’s plan to halt the importation of food by 2019. Besides, without timely supply of quality fertiliser in adequate quantities and in a cost–effective manner to rural areas, hope of anchoring the ongoing economic diversification agenda was under threat.

    But the situation may have started changing. This was on the strength of the signing of a Memorandum of Understanding (MoU) between Nigerian and Morocco for the supply of phosphate to rejuvenate agriculture by making fertiliser available and affordable. The deal, consummated last December, for the production of one million tons of fertliser, has started pushing possibilities into the hands of farmers and operators the local fertiliser industry.

    For instance, it has forced down the price of fertiliser from between N10, 000 and N11, 000 to as low as N5, 000. The drastic price slash was sequel to the arrival of the first consignment of fertiliser into Nigeria from Morocco early this year. The product was delivered to various blending plants across the country, even as more cargoes are expected  soon.

    Nigerian National Petroleum Corporation (NNPC), Group Managing Director, Dr. Maikanti Kacalla Baru, who made this known recently, said that 11 blending plants across the country have started production because of the supply. This was when he received the National Coordinator of the New Partnership for African Development (NEPAD-Nigeria), Princess Gloria Akobundu, at the NNPC Towers in Abuja.

    The NEPAD National Coordinator was at the NNPC to seek for areas of collaboration with the Corporation especially in the area of promoting regional integration on the continent. “As NEPAD, we are mandated to identify and work with strategic partners to facilitate, monitor and promote the implementation of developmental projects across the continent,” Akobundu said.

    The NNPC told his visitors that apart from being a huge boost to the  agricultural sector and the economy, the Nigerian, Moroccan deal was expected to boost bilateral relationship between both countries, in line with NEPAD’s objective of championing regional economic ties and integration.

    The Nation learnt that the Nigerian, Moroccan fertiliser deal, which gladdened the hearts of farmers, including Minister of Agriculture and Rural Development Chief Audu Ogbeh, was anchored by the Fertiliser Producers and Suppliers of Nigeria (FEPSAN) and OCP Group, a Moroccan company. OCP specialises in phosphate and its derivatives, and is committed to the development of agriculture in Africa.

    The MoU was signed during the visit of King Mohammed VI of Morocco to Nigeria by FEPSAN President Mr. Thomas Etuh and OCP Group Chairman and Chief Executive Officer Dr. Mostafa Terrab. Essentially, the agreement was for the promotion of innovation aimed at contributing to productivity-led agricultural growth and improving farmers’ income.

    Recall that the Federal Government had set up the National Fertiliser Technical Committee under the Federal Ministry of Agriculture and Rural Development. The Committee was mandated to seek ways of putting the country on the path of sustainable production of quality fertiliser for both local consumption and export.

     Why the deal was imperative

    According to experts, Nigeria’s fertiliser industry has a blending capacity of four million tons of Nitrogen, Phosphate, and Potash (NPK) annually. The country’s production capacity for Urea was put at about two million tons yearly, with capacity to employ over 250,000 people in both direct and indirect jobs.

    The snag, however, is that less than 10 per cent of these production capacities are being utilised. This was what prompted the Federal Government to intervene in the fertiliser industry hence the deal with the Moroccan Government.

    The deal covered such areas as securing a supply of quality fertiliser by bringing in raw materials required for the production of the item in line with the crops and soils adaptable to Nigeria; strengthening blending capabilities by leveraging on technical know-how and engineering capabilities.

    It also sought to strengthen the capacity to ensure a timely supply of quality fertiliser in adequate quantities and in a cost–effective manner to rural areas, as well as an efficient supply chain and improvement of logistics management, including warehousing and transportation services; and strengthening the agricultural extension services system.

    One deal, multiple agains

    Apart from forcing a drop in the cost of fertiliser and boosting farmers’ productivity and income, the deal, according to the NNPC boss, has created about 50, 000 jobs.

    “Already, 11 blending plants have come into production because of the supply. This development has translated to the creation of about 50, 000 jobs and led to the production of about 1.3 million tonnes of fertiliser in the country,” Baru said.

    Some of the fertiliser plants that has come on stream following the intervention include the Ebonyi State Fertiliser Company, Golden Fertiliser Company, Lagos, Superphosphate Fertiliser and Chemicals, Kaduna, Bejafta Fertiliser Company, Plateau among others.

    The NNPC chief also said the Moroccans had given Nigeria a generous credit term of 90 days and that they were planning to bring in more cargoes that would fit the various blending plants in the country.

    The thinking of experts and operators in the agric sector is that when the next consignment of fertiliser arrives the country, more blending plants will kick-start production. This will not only create more job opportunities in the agric value chain, but also give more impetus to government’s push to end food importation by 2019.

    Already, following the arrival of the first consignment, the Kano State Government was said to have procured 50, 000 metric tons worth N5 billion to be distributed to farmers across the state. Same for Jigawa State Government, which purchased about 4, 000 bags of the farm input for its farmers.

    More states governments across the country have also indicated interest to purchase fertiliser for onward distribution to farmers. This would ultimately save Nigeria the huge foreign exchange for fertiliser import and food.

  • Nigeria, Israel to strengthen bilateral trade ties

    Nigeria and the Israel have entered into a partnership to strengthen their bilateral trade relation.

    Bank of Industry (BOI) Acting Managing Director Mr. Waheed Olagunju,told Israeli Ambassador to Nigeria Mr. Guy Feldman, who visited him that the deal was timely.

    He said the ambassador came when Nigeria was trying to increase its agro-processing capacity, urging domestic and foreign investors to take advantage of the opportunity to invest in the agricultural sector.

    Olagunju said the deal would also seek areas of collaboration in the Federal Government’s recently launched Economic Recovery and Growth Plan (ERGP).

    The BoI chief maintained that there is a lot of money to be made by Isreali investors in Nigeria. “Most foreign companies that invested in Nigeria reaped profitably. We believe if the Israeli business model is right, they can reap much more in the Nigerian economy because of our vast natural and resource endowments,” he said.

    While pointing out that there is no country as blessed as Nigeria, Olagunju assured that BoI was  ready to work with Israelis who want to do business in Nigeria.

    “Whoever wants to do business in Nigeria can always work with BoI and we will give them all our support. We are on ground in Nigeria to hold the hands of both domestic and foreign investors who want to do business in the country,” he said.

    According to Olagunju, the  Development Finance Institution (DFI) was looking forward to a very good time with its foreign and domestic development partners, with Israeli investors being one of the most outstanding.

    “You are coming at the right time when the country is trying to improve and increase its agro processing capacity because we have had bumper harvest last year and we are still going to have more in the coming years. If steps are not taken urgently to improve the agro processing industry, there could be post harvest losses and this will serve as a disincentive to farmers,” Olagunju noted.

    He explained that Nigeria was stepping up her agro-processing capacity to ensure that she preserves and adds value to her agricultural produce, while also preparing them for the export market.

    Responding, Feldman said the Israeli Government believes that there is much more both economies can do in terms of trade, stating that the partnership would identify areas on how to improve and strengthen bilateral trade agreements between Nigeria and Israel.

    “Israel has ideas and innovations where Nigeria can tap from to drive any sector of the economy. The trade between the two countries is something which we have more with the smallest countries in Europe and other places and this shows that something is definitely wrong somewhere, because we believe Nigeria is a huge economy and we believe we can do na whole lot more,” he said.

    The Israeli envoy said he believes that if both countries do what they should to make the trade bigger than what it presently is, Nigeria, in the middle of this century, will be comparable with China because the growth in any aspect of Africa is the biggest in the world.

    “Nigeria is a huge market where the possibilities are incredible. We can support the Nigerian economy with communication, cyber security intelligence, agricultural and small business support. We share lots of things we can do together, but we need to find the mechanism to strengthen our partnership,” Feldman said.

    He, however, added that the Israeli government has decided to push very hard on coming back to Africa, saying that Nigeria is one of the top 20 biggest economies in world in terms of Gross Domestic Product (GDP).

    “This is why we are yearning to come back to be a part of it. We are here to some good business,” Feldman noted.

  • Forex policy has killed 200 factories, claims MAN

    Forex policy has killed 200 factories, claims MAN

    The foreign exchange (Forex) of the Central Bank of Nigeria (CBN) banning importation of 41 items has forced more than 200 factories to close down in the last two years, the Manufactueres Association of Nigeria (MAN) has said.

    MAN’s Director-General Mr. Segun Ajayi-Kadir, called for a review of the policy to save the sector. He spoke when he led some members of the association to visit   Nigerian Shippers’ Council (NSC) Executive Secretary, Hassan Bello.

    “The restriction on the 41 items should be reviewed to remove the raw materials that are in it,” he said.

    Ajayi Kadir said 95 out of the more than 680 tariff lines in the 41 items were raw materials that are not locally available. “The way out is to take out those materials that are listed on the 41 items. It is not the right thing to do to deny any manufacturing industry the material it needs to produce,” he pointed out.

    Ajayi-Kadir argued that the inclusion of essential raw materials in the restriction basket does not make sense; that it was an error that was made and must be corrected. “The raw materials that are needed to produce must be brought in especially because they are not locally available.

    “To deny us access to those raw materials was ill advised and it should be changed. We are engaging government, the CBN and the Presidency. We have been having positive reactions, but something just needs to be done,” he insisted.

    The MAN boss further said there is the need for government to provide a conducive and friendly operating environment for manufacturers. Ne noted that a conducive environment is a prerequisite for a successful manufacturing company.

    Bello said the NSC would continue to promote the ease of doing business and a reduction in the cost of doing business in Nigeria.

    His words: “The essence of privatisation is to bring down the cost of doing business comparative to what we have in other climes.

    “We can only do that through negotiations and we have been doing that to see that prices are reasonable and competitive together with the service providers. Everything we do, we need to get their buy-in because our regulation is democratic and we will achieve the same aim that we set out to achieve.”