The Nation Newspaper

Category: Industry

  • BoI canvasses more women enterprise financing

    BoI canvasses more women enterprise financing

    here is a need to increase funding  to women-owned enterprises, Bank of Industry (BoI) has said.

    Its Group Head, Gender Business Department, Adebisi Ajayi, said fund disbursement to firms owned by women constituted three per cent of its lendings.

    Ajayi, who spoke at a BoI’s event to honour women, said only 49 per cent of women entrepreneurs accessed finance from banks, adding that the N13 billion earmarked for women enterprises should be reviewed upward.

    According to her, women have migrated from seeking micro credit business support to focusing on large-scale enterprises with huge capital requirement.

    Ajayi urged banks to support BoI in financing the real sector, and not just traders, to facilitate job creation and develop the economy.

    She said the department had increased its capital base from N90 million to N160 million, ensure increase in its risk asset to women and maintain a single digit interest rate.

    “In 2007, gender financing commenced with N90 million. It generated 51 businesses in seven sectors and created 600 jobs. Cumulatively, that seed money is now about N160 million. These were to micro credit businesses. The BoI realised we cannot stay with micro credits because there are women who have the capacity to do big business. In 2015, a gender enhancement   desk was set up to focus on only women big businesses. This has led to the bank’s risk assets increase in women. The N13billion supported 232 women business.”

    BoI Acting Managing Director Waheed Olagunju, represented by the Executive Director, Micro Enterprises, Toyin Adeniji, urged women to be brace for change by achieving business strides and setting the pace with new ideas.

    “We want it to be a day to encourage other women to start as Micro, Small and Medium Enterprises (MSMEs) entrepreneurs to access bigger loans. One thing that is clear is that, women have to be bold, have a dream and know where they are going. We are here to let them know they can grow as there is access to finance, market, training, growth and opportunities. Women have to be bold and lean forward for change.”

    The bank’s Divisional Head, Large Enterprises, Mr Joseph Babatunde, harped on the need for increased women participation in businesses, saying the bank was committed to easing their access to finance.

    “There is a need for women to come out with all the creativity that is in them not only to add value to  the family, but also to the nation. That’s why the bank has a gender department where women can bring their applications. There are about four women in the department who advise women entrepreneurs, monitor and go out to support them. We have given a lot of loans to women related entrepreneurs. Unlike, we can give loans of N5million upwards without necessarily having collateral; just two guarantors so that you can at least start small and become big.”

    Making a case for financing the healthcare sector, Chief Executive Officer, Pathcare Laboratories, Pamela Ajayi, urged BoI to channel funds to boost the sector, noting that it is a viable investment sector.

    “The healthcare sector in Nigeria really requires a lot of funding as there is a huge need for infrastructural development. The finance industry needs to recognise the health sector and give it priority. Intervention fund and all that is necessary should be put in place. In terms of investment, healthcare is a vibrant area that can rake in returns. It’s just about recognition,” she said.

  • LCCI unveils trade fair prospectus

    LCCI unveils trade fair prospectus

    •Industrial promotion, economic recovery to be addressed

    The Lagos Chamber of Commerce and Industry (LCCI) has unveiled the prospectus for its yearly Lagos International Trade Fair (LITF).

    Tagged “Promoting industrialisation for economic recovery and sustainable growth”, the fair will afford all sectors, including manufacturing, agriculture, solid mineral and services, a platform to display their products.

    LCCI President Mrs Nike Akande, who spoke at the presentation of the document in Lagos, said efforts to improve the economic condition might not yield results unless inter-sectorial potential were harnessed. She enjoined industry players to support the efforts of the government at revamping and stabilising the economy to drive investments in agriculture, manufacturing, trade, services and technology.

    “The recently-unveiled Federal Government’s Economic & Growth Plan (ERGP) 2017-2020 is expected to promote macroeconomic stability and economic diversification through fiscal stimulus, monetary stability and improvement of external balance of trade.

    ‘’Also, the 60-day National Action Plan on Ease of Doing business is expected to impact on the investment climate through these priority key areas, which are the international trade and immigration processes as well as transparency and inclusion in public sector procurement.

    ‘’These reforms are expected to enhance Nigeria’s ranking in the Ease of Doing Business. The private sector is expected to plug into these efforts and make complementary contribution towards rescuing our economy from recession,” she said.

    Trade Promotion Board Chairman, Mr Sola Oyetayo said the early campaign for the fair was part of the chamber’s resolve to reposition the exhibition and fit into plans of our stakeholders from the beginning of the year.

    He said: “It is pertinent to note that for the economy to recover from the  situation, there is a need to provide sustained policies targeted towards a friendly business environment that would give room for job creation through industrialisation, economic diversification that could elude our nation. It is imperative to begin to focus on how the economy can experience sustainable and inclusive growth through industrialisation.”

    According to Oyetayo, the fair will feature consumer fair, an international conference on the theme and the competitive essay writing by secondary school pupils sustained to inculcate in the young, the relevance of commerce and exhibition for development. It will also encompass Entrepreneur Master Class Competition aimed at encouraging budding entrepreneurs.

  • Obsolete machinery, equipment bane of manufacturing, says MAN

    Obsolete machinery, equipment bane of manufacturing, says MAN

    •Equipment & raw material expo hosts over 4,000 exhibitors, visitors

    The diversification effort of the Federal Government may have received a boost with the interest shown by foreign and local investors in manufacturing at the ongoing Nigerian Manufacturing Equipment Expo in Lagos.

    Organised by the Manufacturers Association of Nigeria (MAN), Raw Materials Research Development Council (RMRDC) and Clarion Events West Africa, the expo is targeted at boosting the technological base of the manufacturing sector.

    MAN President Dr Frank Udemba Jacobs said the major challenge of the sector is obsolete machinery and equipment, which impede manufacturers’ efficiency, especially small and medium-scale ones, as they slow down production and inhibit economy of scale.

    He said MAN was poised to lead 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.

    He urged SMEs to learn new processes on how to boost their production output, reduce cost, improve product quality and manufacture for new markets. Jacobs observed that the infusion of Nigeria Raw Materials (NIRAM) expo into the Nigeria Manufacturing  Equipment (NME) would afford exhibitors and visitors a rare opportunity of exposure to the entire manufacturing value chain including machinery, equipment, financial services, professional consultancy and information on raw materials.

    Minister of Science & Technology Dr. Ogbonnaya Onu urged  manufacturers to patronise indigeneous raw materials for their production. He said that was the only way the economy could grow as it had a multiplier effect.

    The minister, who was represented by RMRDC Director, Investment Consultancy Services Department, Dr. Zainab Hammanga, said the Federal Government was in support of the growth of the private sector. He urged them to make use of RMRDC raw materials technology data. He further asked investors to show interest in sponsoring alternative raw material investigation and subsequent usage in the sector.

    RMRDC Director-General Dr. Hussaini D. Ibrahim noted that over 10 billion raw materials were available in the country with every state having over 10,000 metric tonnes of solid materials. He argued that indigenous manufacturers had no reason to import raw materials or machinery.

    On what RMRDC has achieved over time, Ibrahim, who was represented by a Director, Dr. Moses Omojola, said their studies made the nation a net exporter of cement with over 25 million metric tonnes yearly compared to 2002 when the nation imported the product.

    On ceramics, he said the nation had stopped the importation of ceramic materials for tiles and was working on having alternative raw material for water closet (WC).

    A fish processor, Mr. Tunde Sanni, urged RMRDC to seek alternative ways to ensure locally-processed fish were competitive. He said the nation’s smoked fish were not competitive because of too much smoke.

    He challenged RMRDC to come up with a kiln that would be globally competitive. He criticised a policy which does not allow exporters to earn their proceeds in dollars but are given the dollar equivalent.

    Sanni stated that this had remained a challenge for indigenous small-scale fish processors. He wondered how the entrepreneurs could earn forex and grow the economy.

    President, Nigeria Society of Engineers (NSE), Mr.Otis Oliver Tabugbo Anyaeji, an engineer, encouraged the urged on the need to integrate the human resources with available raw material in the production process.

    Managing Director, Clarion Events West Africa, Mr. Dele Alimi, said their belief in the economy encouraged them to be part of the equipment & raw materials expo.

    He predicted that the economy would grow beyond projection as a result of the confidence of foreign direct investors who daily draw a stake in the economy.

    On the expo, he said: “The expo gives an opportunity to bridge the gap between the small and medium sized organisations in the production of raw material and the thousands of manufacturers. By this we have helped to bridge the gap and provided the needed linkage between the two key aspects of industrialisation. By exposing the raw materials available in different parts of the country through this medium, manufacturers will be saved the rigours of sourcing for forex to import raw materials for their production.”

    He also said during the expo, there would be free training, access to finance, retooling and networking across all major sub-sectors of manufacturing. He said the idea was for the expo  to provide solutions to the much-clamoured resource-based production as canvassed by the Federal Government.

     

  • Nigeria to ‘export processed cashew nuts by 2019’

    The Minister of Agriculture and Rural Development, Chief Audu Ogbeh, has said the country will start processing cashew nuts for export by 2019.

    Ogbeh spoke at the maiden edition of FirstBank Agric Expo in Lagos.

    The expo was tagged: Reinventing agriculture for sustainable national development.

    According to him, the current worth of a tonne of roasted or processed cashew nut for export is $10,000 while the raw cashew nut is sold for $1,200. He said it would be better to process the nuts for export.

    “So, in the next two years, we will no longer export raw cashew nuts, but roast the cashew nuts for export. If we produce a tonne of roasted cashew it will be sold at the international price of $10,000, whereas a tone of raw cashew nuts sells for $1,200,” he said.

    Ogbeh also said that Nigeria shipped a total of $600,000 worth of raw cashew nuts to Vietnam alone last year.

  • Fed Govt to restructure BoA

    Fed Govt to restructure BoA

    The Federal Government is to restructure the Bank of Agriculture (BoA) to support its diversification programme.

    The Minister of Agriculture, Chief Audu Ogbeh, gave the hint at the launch of Capacity building and institutional strengthening of Bank of Agriculture in Kaduna.

    Ogbeh, represented by Mr. Godwin Obinna-Opara, said the restructuring was aimed at strengthening the bank for optimal service delivery to farmers.

    He said restructuring, re-capitalising and repositioning BoA was one of the programmes President Muhammadu Buhari had given approval.

    He said the bank remained a key instrument for funding agricultural activities to help diversify the economy and move away from over reliance on oil.

    “At no other time in the history of Nigeria that government had taken such interest and time to assess the operations of BoA to explore these potentials by adopting appropriate financing measures needed. Our country needs a financing mechanism that will help small holder farmers, agro-prenurials and SMEs access credit facilities at affordable cost. As a matter of fact, we’re looking at a single digit interest rate, that is what we believe in the ministry,” Ogbeh said.

    Meanwhile, the Special Adviser to Central Bank of Nigeria (CBN) Governor on Development Finance Institutions (DFIs), Mr Paul Eluhaiwe, said the Bank of Agriculture (BoA) “is sick and needs restructuring”.

    He said BoA had the needed resources to turn its fortunes for the better.

    “Posterity will not forgive us if we fail to turn it around because the bank has all the resources in this world to be turned around for the good of Nigerian farmers.

    Bureau of Public Enterprises (BPE) Director-General Dr Vincent Akpotaire said BoA would be restructured to meet a model that would assist in doing agro- business, particularly with rural populace who are mostly farmers.

    Akpotaire said: “Specifically, policy and regulation of the bank would undergo the needed restructuring, staff capacity and financial base. “Its Information and Communication Technology (ICT) will also be restructured to meet international standard in agro-allied enterprises. I wonder why BoA will not succeed in Nigeria, if others have succeeded somewhere else in the world; there must be checks and balances in loan being given out. BoA should not just be a conduit for giving out loan, it should also be a conduit to recovering the loan being given out.”

    Meanwhile, AfDB Chief Country Programme Officer Mr Andoh Mensah said the economic downturn had weakened BoA in bridging the gap between rural and urban populace in terms of accessing loans.

    He pledged the support of the AfDB to BoA, saying: “We remain committed to working with BoA.’’

    Earlier, BoA’s Acting Managing Director Mr Babatunde Igun said the bank was financially weak in addition to other challenges militating against its optimal performance.

    He said the bank was working to improve its staff skills to enhance their capacity for effective service delivery.

    Igun assured that the bank would brace for modern agricultural activities that would attract competitiveness and deliver its core mandate to farmers.

    The AfDB recently approved a grant of $1.1 million for the Bank of Agriculture for its restructuring  aimed at staff training to strengthen service delivery.

  • ‘Infrastructure vital to economic growth’

    ‘Infrastructure vital to economic growth’

    Sohail Ahmed Khan is the new Managing Director of MAN Diesel & Turbo Nigeria Pvt. Ltd. With its Nigerian subsidiary, the German engineering company seeks to contribute to industrial growth in Nigeria and the West Africa sub-region. Assistant Editor Okwy Iroegbu-Chikezie  met him.

    What is MAN Diesel & Turbo’s business focus in Nigeria?

    Our products are at the heart of various key industries. Examples include large diesel engines and power plants, as well as compressors and turbines, especially in Nigeria. We are a strong partner for the oil and gas industry, for power generation and large-scale industrial production. And from here, we serve customers across the West African region, namely the ECOWAS countries.

    Your company opened its subsidiary in Lagos in 2015. Now the industrial growth rate in Nigeria is declining, how does it impact on your plans?

    It is true that the economy has suffered lately, mainly from dropping oil prices. But we are convinced that this will not interfere with the long-term growth potential. A positive example is a multi-million dollar order that we were able to book some weeks ago, to provide turbo machinery equipment for the Dangote Refinery in Lagos. It is nothing less than Africa’s largest refinery that is being built here in Nigeria. This billion-dollar investment by the Dangote Group is a good example of the added value we bring in terms of technology.

    What is the most important need of the economy?

    Infrastructure is the important need the economy can build on, whether a stable power supply or a dependable transport network for oil and gas. An example, one can think of the West African pipeline and the Trans Sahara pipeline project, the second one still to be built. Both are infrastructure projects opening up new markets for natural gas from Nigeria, requiring a safe and reliable technologybase.

    On the other hand, an evolving economy like Nigeria requires more depth of added value, and this has  started.We see it in projects with our customers, including requirements for in-country value. The country will profit from broadening its industrial footprint. An illuminating example is again the Dangote Refinery project: by prolonging the value chain into the downstream sector, more value will be created within the country, while also reducing the need for fuel imports.

    What about the industries not related to oil and gas?

    Irrespective of business sectors,  reliable energy supply is crucial for Nigeria. Whether for the booming banking sector, or just for powering the many mobile phones, the country needs electricity. We see an instant demand here for generation capacities of around 4 GW.

    As a country rich in oil and gas, many economic questions are obviously related to that business. But apart from that, or from power generation, MAN Diesel & Turbo provides products and services to a range of industries. We are here to support the Nigerian growth path as a whole, be it with equipment for the fertiliser industry, for the steel or cement industry oreven for paper production.

    Your company is one of the oldest in Europe, with a history of more than 250 years. What experience does it have in doing business in Africa?

    We have been doing business in Africa for about six decades. The initial projects of the company date back to the 1950s, when we first delivered power generation technology to Mali and Senegal. Today, we have an installed base of almost 1000 turbo machinery casings and an engine base of far more than 3 GW, delivered to more than 35 countries in Africa.

    As an ambassador of Germany-based technology, MAN Diesel & Turbo also has subsidiaries in Kenya, South Africa and Egypt, and we are about to expand this network in Africa in the near future. Our service workshops enable us to process service and maintenance orders regionally. And with more than 250 employees on the continent and a pool of field service engineers, we are available with a single call, wherever our customers in Africa are.

    What about your projection for Nigeria in the near future?

    Nigeria is surely more than oil and gas, if you just think of the booming online sector, especially for mobile payment and banking. Yet, the country’s economy still strongly depends on the worldwide oil prices. Happily, we are  seeing first signs of relief here.

    I see more diversification and a growing industry base in Nigeria. Again, the refinery sector is a good example, which the government is opening up for private investment. Not the least, this will help Nigeria to profit from increased in-country value. The country is about to choose its path when it comes tostrengthening its industrialinfrastructure with reliable and even eco-friendly technology.

  • Dangote Tomato Company to resume production on Sunday

    Dangote Tomato Company to resume production on Sunday

    The Managing Director, Dangote Tomato Processing Company, Alhaji Abdulkarim Kaita, has said the factory will resume production on Sunday.

    In an interview, he said the company, located in Kadawa, Kano State, was expecting a team of engineers from Italy.

    “As part of preparations to resume production on Sunday, we are expecting a team of engineers from Italy today. The machines are under guarantee and we are not able to operate last year due to the scarcity of fresh tomato in Kano and other neighboring states,” he said.

    Kaita said the engineers would assess the quality parameters as well as the installed capacity of the machines before they could finally hand them over to the company. “Our engineers are ready to begin work and as soon as the other team of engineers arrive, we hope to resume operation on Sunday,” he said.

    He said the company had decided to resume production following availability of the commodity and the recent crash of its prices in the market.

    “The price of the commodity has come down as a big basket, which was selling at N4,000, now cost between N1,200 and N1,400,” Kaita said.

    The company last year stopped production due to scarcity of fresh tomato as a result of pest that ravaged farms in Kano and other tomato producing states.

    However, to ensure sufficient supply of the commodity, the company  signed an agreement with farmers in Gombe and Sokoto states.

  • High-technology for Africa’s largest refinery

    High-technology for Africa’s largest refinery

    Dangote Group orders compressors and turbines from MAN Diesel & Turbo for a refinery to be erected in Nigeria.

    With a double-digit million dollar order volume, Germany-based MAN Diesel & Turbo will deliver two compressor trains to Nigerian Dangote Oil Refining Company, to be employed in the company’s refinery in the capital of Lagos.

    Dangote Corporation is currently building Africa’s largest refinery in the Lekki Free Trade Zone of Lagos, investing a total of around 12 billion US dollar. “This one we are building will satisfy 100% of the fuel needs of Nigeria,” so Alhaji Aliko Dangote, President and CEO of the Dangote Group. The new building should enable the country of Nigeria as Africa’s biggest crude oil producer to also raise its processing capacities, finally getting more independent from imported fuels.

    Wayne Jones, Member of the Executive Board and Chief Sales Officer of MAN Diesel & Turbo: “This is a milestone project and will have a huge impact on the economy of not only Nigeria but the whole of the West African region. We are very proud to be a part of this project and gladly offer our equipment and technological expertise in order to help to make the Dangote refinery not only Africa’s biggest but also one of the most efficient operations on the continent.”

    Sohail A. Khan, Managing Director of MAN Diesel & Turbo in Nigeria: “This refinery new building is underlining the long-term growth perspective Nigeria and the region of West Africa have. We are here to serve customers with highperformance technology for the oil and gas industry, process industry or the ever-rising need for efficient power generation.”

    The highly efficient machinery trains from MAN Diesel & Turbo each consist of an axial compressor driven by a steam turbine with about 30 MW power. Delivered with a comprehensive auxiliary package, they will come into operation for the refinery process of Fluid Catalytic Cracking (FCC), thereby supporting the production of fuel.

    Axial compressors will support fuel production in the Dangote refinery in Lagos (example picture MAN_axial_compressor.jpg / © MAN)
    Axial compressors will support fuel production in the Dangote refinery in Lagos (example picture
    MAN_axial_compressor.jpg / © MAN)

    MAN Diesel & Turbo convinced here with proven and reliable technology, together with its extensive expertise in the refinery sector. The order also comprises erection and commissioning of the machinery trains, being developed and build at the company’s Turbomachinery technology site in Germany. Delivery will take place in the course of 2018, while commissioning of the whole refinery is planned for the year 2019.

    Beside Nigeria as the largest national economy, MAN Diesel & Turbo holds subsidiaries also in other countries on the African continent. With 250 employees across various sales and service sites, regional workshops and a pool of field service engineers, the company serves customers that are mainly active in the oil and gas industry, the power generation business or the process industry. The company’s history in Africa dates back to the 1950s, when the first engines for power generation were delivered to the countries of Mali and Senegal.

  • LCCI commends women’s resilience in economy

    LCCI commends women’s resilience in economy

    President, Lagos Chamber of Commerce and Industry (LCCI),  Mrs. Nike Akande has hailed Nigerian women on the occasion of the International Day for women – a day set aside by the United Nations to celebrate women worldwide, adding that the theme “Women in the Changing World of Work: Planet 50-50 by 2030,” is apt.

    In a statement made available to The Nation, Akande said the importance of this day cannot be over emphasized as women remain the foundation of any society having regard to their critical role in the family structure.  She said the contribution of women to the growth and development of the economy has been phenomenal. Since independence, women have continuously braced the odds to emerge leaders in politics, business, sports, academics and in every other profession, she added.

    She said: “The role of women in shaping families is one worthy of celebration as women have selflessly dedicated themselves to the nurturing and upbringing of their children. The quality of this upbringing has a major influence on the quality of leadership in any society. The values of integrity, humility, fear of God, love, selflessness, sacrifice and hard work is best imbibed at the level of the family.  The quality of parenting is a critical factor in this process”.

    She called on the Federal Government to put in place programmes and policies that will ensure equal opportunities for women and men in the country.  She further appealed to government to protect  women who have been affected by conflicts and other forms of dislocations and economically empower them.

    She said: “The various Internally Displaced Persons’ Camps (IDPs) are populated largely by women and children.  We appreciate the efforts of government and humanitarian organisations in alleviating their plights.  But evidently, a lot more needs to be done to bring normalcy to their lives.  We urge the government, corporate bodies, and individuals to scale up their support for the IDPs in all parts of the country”.

    While we celebrate the social, economic, cultural, and political achievements of women it is also a call to action for accelerating gender parity, a time to reflect on progress made, to call for change and to celebrate acts of courage and determination by ordinary women who have played an extraordinary role in the history of our nation, she added.

  • NBCC holds meeting March 22

    The diversification drive of the Federal Government is set to get a boost as the Nigerian-Belgian Chamber of Commerce (NBCC) hosts its first breakfast meeting for the year in Lagos. The theme is: The challenges of funding for agriculture in Nigeria.

    The Chamber’s President, Tunde Okoya, said the session, which holds at the Eko Hotel, Victoria Island, March 22, would be a platform for information sharing and uncommon business networking, with unique opportunities for partnerships with the Chamber.

    He said lack of adequate funding, high bank interest rates and difficult access to credit still remained challenges to agricultural growth.

    “Development in the agricultural sector is a major key to improving the economic situation,” Okoya said at a press conference to announce the meeting.

    Head of event, Arum Sukmawanto, a member of the Chamber, said the Chamber was committed to strengthening the growing bilateral relationship between Belgium and Nigeria via opportunities of credible trade linkages.

    Belgian business concerns are looking to invest in the agric sector, food packaging and processing, manufacturing, among others.

    Several speakers drawn from the agribusiness community will be on hand for dialogue and networking.