Category: Small Business and Entreprenuership

TO identify the best innovators, makers and technical entrepreneurs in Sub-Saharan Africa, TechCrunch Startup Battlefield in partnership with Facebook, will hold in Lagos this year.

The competition, which is the second edition, is scheduled from December 11.

According to the organisers, the first edition held last year in Nairobi where startups from across the Sub-Saharan continent highlighted how technology was optimising supply chains, increasing access to education, strengthening farmer’s revenues, and so much more.

The event will have senior partner at TLcom Capital, Omobola Johnson, as keynote speaker as well as other industry leaders such as senior partner at TLcom Capital, and Lexi Novitske of Singularity Investments.

The judges will have to select a winner to be dubbed “Sub-Saharan Africa’s Most Promising Startup”.

The winning startup’s founder will be awarded $25,000 in cash plus a trip for two to compete in Startup Battlefield at TechCrunch’s flagship event, Disrupt, in 2019.

Kunu is a fermented cereal-based food drink which is a good source of cheap calorie supply. It is rich in vitamins especially B1 and B2 and essential mineral elements.  Kunu drink is very refreshing and filling.

Kunu can be produced from Sorghum and millet or a combination of both. Sorghum is a genus of numerous species of grasses, one of which is raised for grain. Sorghum is an important tropical cereal food, feed and fodder crop. The plants are cultivated in warmer climates worldwide. Botanically, sorghum belongs to the Genus Sorghum and Family Gramineae. There are several types of sorghum, including grain sorghums, grass sorghums (for pasture and hay), sweet sorghums (for syrups), and Broomcorn. Among known species the genus, Sorghum bicolor (L) Moench is important.  Other  names  of  this  species  are Sorghum  vulgare  pers  and  Andropogon  sorghum  (L)  Brot.  Common names of sorghum in different countries are sorghum (United States, Australia), Durra (Africa), Jowar (India) and Bachanta (Ethiopia). It is an important grain and forage crop of semiarid regions due to its high adaptability and suitability to rain-fed low input agriculture.  It  has  substantial  popularity  amongst  farmers  due  to  its greater adaptability and various forms of utilisation like green fodder, stover,  silage  and  hay  to  suit  the  diverse  needs  of  farming  system, besides its grain.

Kunu prepared by the traditional method has short shelf-life, and requires adequate preservation to make it shelf-stable and of high keeping quality.  The main raw material i.e. sorghum is readily available in commercial quantity in Nigeria.  It is especially grown in large quantities in the Northern parts of the country.

Market information

The demand for bottled Kunu is quite high in Nigeria.   Kunu like juices are served at occasions such as naming, wedding, burial, house warming, seminars, workshops, and so on.  The national demand estimate for kunu is estimated in excess of 25million litres/annum.   The current supply is less than 25% of the estimated demand and met mainly through cottage producers who produce for subsistence living.  Some few producers are now producing kunu on commercial basis employing mechanized machinery and equipment.  The average retail price per 50cl bottle of kunu is N100.00.

Raw materials

The major raw material for Kunu production is sorghum.  Sodium Benzoate is used as preservative. Sugar could be used as sweetener. Nigeria is one of the largest producers of sorghum in the world with total production output of 6.75milion metric tones in year 2010 coming second after India with total output of 7.0million metric tones.

Machinery and equipment

The major machinery and equipment for production of Kunu production and preservation are: Kunu reactor, Hammer mill (wet), Pasteurizer, Vibro sifter, Sedimentation tank, soaking tank, filling machine, weighing machine and other accessories.

The cost of machinery however, depends on the capacity which varies from 1,000L/day to 5,000L/day.

Small scale Kunu Processing Plant

Production technology

Kunu production and preservation includes the following simple unit operations:

Sorting

The grains sorted to obtain wholesome grains for processing.

Weighing

Sorted grains are weighed accurately.

Washing and soaking

The weighed grains are washed thoroughly and soaked over a specific period of time.

Washing and draining

The soaked grains are washed thoroughly again and allowed to drain.

Wet milling

The grains are wet milled in a hammer mill.

Sieving

The wet milled grains are sieved with adequate quantity of potable water.

Heating

The filtrate after sieving is heated over a period of time.

Addition of preservative

The right quantity of preservatives and flavour are added followed by thorough mixing.

Filtration

The Kunu is filtered to remove suspended particles.

Pasteurization

The Kunu is subjected to heat treatment to destroy micro-organism, prevent fermentation and inhibit undesirable enzyme activities.

Cooling and packaging

Pasteurised Kunu is cooled at room temperature, labeled and packaged in cartons ready for sales.

Production programme

Production programme for a small to medium scale Kunu production is shown below:

Production Days/Annum –                                        300

Production Volume/Day                                            2,500L or 5,000 Bottles (50cl)

Production Volume/Annum –                                   750,000L or 1,500,0000 Bottles (50cl))

Projected 5- Year Production Plan

Year          Quantity

(Litres)                                              Quantity

(50Cl Bottles   – Pieces)

1            450,000                             900,000

2            487,500                             975,000

3            525,000                             1,050,000

4            562,500                             1,125,000

5            600,000                            1,200,000

Labour requirement

The required manpower for successful operation of this venture consists of both skilled and unskilled personnel. These consist of the production, administrative/account and marketing personnel.  Staff matters, finance/account, store management, security, purchasing and other administrative functions are handled by the administration/account division, while the production division takes charge of production.   Marketing activities are the responsibilities of all the staff especially the marketing division staff. About fifty (50) personnel are required for the project to take off.

 

Total initial capital investment

Initial Fixed Capital                                                                                                N14,208,320.00

Initial Working Capital                                                                                         N9,843,680.00

Pre-production Expenses                                                                                    N1,854,530.00

Contingencies                                                                                                           N1,295,326.50

TOTAL                      N27,201,856.50

 

Profitability indicators                                                                                                             Return on Investment (Year 1)                                                                           45.8%

Return on Equity (Year 1)   97.8%

Net Profit to Sales                 9.5%

Gross Profit to Sales              16.4%

Profitability Index                                     2.3

Breakeven Point (Year 1)       60.1%

Payback Period                       2.1Years

Net Present Value at 25%                                                                                                    N1, 565,240.00

The Development Bank of Nigeria has introduced its first television commercial to be broadcast across various platforms to educate the Nigerian Micro, Small and Medium Enterprises on how to access the DBN loans, through the various Participating Financial Institutions.

In a statement, the series of 60 second TV commercials recount the struggles of entrepreneurs who must meet their customers’ orders despite seemingly impossible deadlines.

“The stories progress with the protagonist in a frantic search for loans to help them meet their client’s orders; family and friends disappoint them but at the climax of their struggle, the DBN provides a solution through its financing which is available through commercial banks, microfinance banks, and other financial institutions with tenors of up to 10 years and 18 months moratorium, where necessary,” it stated.

Commenting on the launch of the TV commercial, the Managing Director of the bank, Mr Tony Okpanachi, said, “There are a lot of innovative and brilliant entrepreneurs out there who are critically challenged by access to financing and have no clue on how to address it. The commercial is intended to educate the public on the available funds from the DBN for the development of the MSMEs, which is globally acknowledged to be the engine room of growth for any economy.

“The visibility of the bank to the business community in Nigeria has brought about a lot of enquiries. We are using the TVC to educate the business owners on how to access funds for their businesses.”

According to the statement, the DBN is a wholesale Development Finance Institution providing sustainable financing through eligible PFIs that in turn lend to end-borrowers – Micro, Small and Medium Enterprises for the development of that segment.

The bank recently opened an office in the commercial capital of the country, Lagos, for proximity to the PFIs, it added.

Olivia Onyemaobi is the founder of PadUp Creations, a social enterprise company with bias for the production of washable and reusable pads for women. In this interview with Dorcas Egede, Onyemaobi who had a thriving banking career for almost a decade took up girl child advocacy which has since metamorphosed into a bugdeoning business, she tells her riveting story. Excerpts:

Why did you decide to go into the production of reusable pads?

I decided to go into the production of washable and reusable pads to solve a problem. Initially, I volunteered in 2015 to administer therapy on sexually abused girls and educating them on how to avoid sexual abuse. But after administering therapy on these girls, we discovered that most of them still went back to their abusers, so when we inquired to know the reason, most of them complained that they didn’t have access to sanitary pads and most of the men provide sanitary pads in exchange for sex.

This was a very common response we got from secondary school girls between ages 12-17. So, I started looking for the most sustainable way of keeping them away from their abusers. I thought of buying and distributing always sanitary pads to them, but on a second thought, I discovered that I will only solve their problem once in a month, so I started making research on a more sustainable option, that’s how I came about washable and reusable sanitary pads.

So, between July 2015 and June 2016, I made research on how to make reusable sanitary pads that will be sustainable and last these girls for a period of one year. As I discovered this problem, I told myself that nobody could better solve it than myself, that was why I quit the job to give full concentration to the business.

Did you have any training to prepare you for what you do?

Seriously, I want to be spiritual this time around. When I discovered the problem, I wasn’t just having passion for solving the problem; I had compassion on these girls. So, I first went into prayer. The first inspiration on how to do this came through dreams. Within that period, I had no formal training; I didn’t even know how to operate most of the machines. I did the first prototype without some of the components and it worked, so I had to travel out to look for a solution on how to make the more sustainable one. But prior to that, I didn’t have any formal training on menstruation and menstrual hygiene. I studied accountancy for my first degree and did my masters in business administration, so I had no training in any medical discipline.

We kept researching for a period of one year, tried so many things that didn’t work, until we were able to come up with what we are currently using.

What are the regulatory and legal requirements to meet in this kind of business?

The basic thing is to get the business incorporated, depending on what type of incorporation you want, sole proprietorship, limited liability or even as an NGO. The first thing you have to do is secure the name of what you want and have value to what to define in your registration. With that, you can start. You don’t need any formal regulatory requirement to start, because even when you go to NAFDAC or SON, they will require you to develop a prototype, test it on people or yourself, find out some things that you know should be corrected before they give you NAFDAC number.

So, the basic regulatory requirement is to have your business registered and you can start up something. After you have developed the prototype and tested it to be sure that you can defend it anywhere, you can now approach NAFDAC for certification and other regulatory bodies like the SON.

Do you need to belong in an association?

No. One important thing to note here is that we are the only ones who have commercialised the making of washable and reusable pads at the moment. There might be other people who are still trying to come up with something like this but have not commercialised it, we are the only ones who have done that, and we are currently serving 13 African countries. So, there’s really no association for you to belong to. However, to improve on yourself and what you’re doing, you can belong to associations that have to do with menstrual hygiene management and reproductive health for your own personal growth. But association in terms of business, there’s no such thing.

Which body regulates your activities?

This depends on the angle you’re looking at it from. If you’re talking about certification of the product, we have IPAN, NAFDAC, SON. But if it’s in terms of remittance to government, you have FIRS for the payment of your taxes and all that. Quality control has to do with NAFDAC because they are in charge of everything that has to do with health, hygiene and whatsoever. They certify that a product is good for human use.

What does it take to start this business in terms of staffing, funding and other logistics?

Seriously, it is important to state that the most difficult business I’ve ever done in my life is selling reusable pads. But I think we have done a greater work that it will be easier for anybody coming into this line of business, because we have been able to sensitise over a million people in Africa about reusable pads, not just about the cost effectiveness or affordability, but the health benefits.

In terms of funding, I started with $5,000 fixed capital support from the Tony Elumelu Foundation in addition to the $10,000 I had in savings. This business requires you to acquire a facility and according to NAFDAC regulation, you must be the only company in the facility you occupy. You cannot share the building with anyone, the building must not be residential. It must also be a building that has not less than three rooms, one for production, store, cutting room, logistics room and a lot of other rooms. We started with a minimum of five rooms because we needed to acquire the machine, we needed space for the raw materials we were bringing in, the processed and the finished ones. So, it’s really space consuming. There are so many regulatory requirements that make it somewhat difficult to start. You can’t start small, NAFDAC considers the space you use for this kind of business as a health facility, so your space can’t be compromised.

Apart from the facility, you also need money to buy the machines that you need, and you know that Nigeria manufactures none of these machines. You need to get put so many things in place, like a system that you will be operating from, having a place that you keep your records. If you don’t have enough money, you can decide to start with few machines, but the problem with this is how many would you be able to produce in a day?

In terms of logistics, of course you know Nigeria’s system isn’t really favourable in the sense that the rail system is not working, everything has to go through roads, so this makes dispatching more expensive, such that when the product reaches the final consumer it is very expensive. So, we devised another means of dispatching to consumers without going through the public system. It depends on the individual, like I told you earlier, we took one whole year researching this business. This is one thing that is not common in Nigeria. A Nigerian man who thinks about a business, just goes into it and starts producing. They don’t take time to study the terrain, the requirement, the possible future challenges and how they’ll be able to mitigate it.

So, before you begin a business, I think it is really important to study that business intensively, so that when you start and meet some of those challenges, you’ll be able to know how to handle them. You should learn to plan for challenges so that when they come, as they certainly will come, you will be prepared to face them.

How many staff did you start with and how many have you today?

From the time of developing a prototype, we had two staff developing the prototype. I was still in the service of the bank. Once we completed the prototype development and we had tested it on 202 people, I quit the banking job and started with 16 staff, of which two were university graduates. Currently, we have 93 people that are working with us. We are targeting to get them to 233 by June next year, because we are hoping to start a franchise in Botswana by February 2019. We started in 2016 with research and developing the prototype. It took us six months to develop the prototype and test on people to determine its acceptability. Commercial activities of this business didn’t take off until January of 2017. So, it is okay to say that we actually started operations in 2017.

What is the gestation period before you start making profit from the venture?

Profit? This is where I keep hammering that if you really want to start a business, do so for the solution you want to create, take your mind off profit, especially when you want to solve a social problem. If you want to solve a social problem, you don’t address it like someone who wants to make money. Unlike those making food or drink to sell, our product lasts for a period of one year. Some people that bought since 2016 have not returned to buy again, but we still need to keep exploring new markets for us to sustain the business and the idea. If you go into this business simply because you have passion, it may not sustain you when the heat comes, so be focused on the compassion you have on the people who are the users of your solution, otherwise you’ll quit along the way.

Profit isn’t something that you get in business in the first two years. There are some businesses you start today and start making profit tomorrow, but how sustainable is such profit? Every single profit you make has to be reinvested into the business for it to grow. For instance, if I have started with 20 machines, I don’t expect that in the next two years the machines should still be 20, I should have been exploring new markets and my machines should be up to 80. Before you can start anticipating to make profit in this business, you should give yourself a minimum of three years.

Do you consider this business lucrative enough?

This is the most amazing job I have ever seen in my life. People may not understand it. The most lucrative business anyone can imagine is this business I’m doing now, because we are not just focused on producing sanitary pads, we also take menstrual hygiene management training to schools, villages, we train girls and women; we make them know about their bodies and train them about reproductive health. The joy we see on these girls’ faces makes this business much more lucrative than any other thing you can think of.

Now, you’ve talked about lucrativeness in terms of impact created, can you talk about lucrativeness in terms of profit?

I will not lie to you that the business is not lucrative, it is lucrative. But it isn’t something that is a daily thing. If I’m making drinks for instance, I’m sure that I will sell everyday because people will definitely buy drinks, but now this is something that people come to buy once a year, so any time you make sales, you consider it very lucrative.

I’ve taken a whole year to study this business. We have our peak periods and our injury time. This month is the worse period for us. In August demand is so high because most people are going back to school and most organisations want to sponsor girls going back to school, so at that time, sales are high. But then, as long as you are getting money to pay salaries, buy materials, and take care of all operational expenses, you can’t say the business is not lucrative. It is. If we have not gone to borrow money and have not shut down for a period because we can’t keep up with production, then we can say the business is lucrative.

What’s the profit margin between what you made in 2017 and what you’ve made so far in 2018?

There is marginal difference in profit. In 2017 we set operational standards that have so far helped the business in 2018. So, while we didn’t make so much money in 2017, the groundwork we set rolling paved way for more profit in 2018. There was over 300% increase in our sales and returns.

What are some low points in this business?

They are many, from getting people to believe in your idea, even your staff, to power and sales. Most times, we spend like N93,000 in two weeks on power. There is also the battle for sales because you are going to sell to people who need to believe in what you have to offer before you can get them to buy, this isn’t a very easy thing you do. You have to have strong belief in your product to be able to convince someone.

Osun State is putting Yoruba fashion industry at the forefront of new trends and technology through its Ijinle traditional fashion initiative. The aim is to create an industry through support for aspiring fashion start-ups and entrepreneurs, giving them access to a wealth of knowledge and business experience from real-world industry mentors. DANIEL ESSIET reports.

There are millions of youths in Nigeria. Worryingly,   more   than 70 per cent of young people  are unemployed.

With growing economic challenges, providing jobs and training  for youths is one of the major challenges of the times.

Not only is youth unemployment a road-block for current and future economic growth and international trade, analysts believed it also prevents the economy from harnessing their future knowledge and skills.

What is needed for many youth  today  are  opportunities  to  participate  in  the economy. One of those who believe this is the out-going Osun State Governor, Ogbeni Rauf Aregbesola, who spoke in Lagos during the graduation ceremony of 15 trainees, who are graduates of the Osun Youth Empowerment Scheme (OYES) programme under the Ijinle Project

 

Osun Youth Empowerment Scheme (OYES)

Aregbesola said through OYES, the government implemented a roadmap, to help tackle the root causes of youth unemployment and competitive market constraints, which are at the heart of irregular migration to the cities.

He said the programme has helped young people move from being job seekers to creators through entrepreneurship. The programme, he added, served as a guiding compass to bolster competitiveness and develop economic opportunities for youth in line with the government’s priorities.

He said the government through OYES  focused on fostering value addition in the priority sectors of agriculture, information and communications technologies and fashion.

The youths, he said, were equipped with a business mind-set and entrepreneurial skills to become their own engines of growth.

In the quest to create jobs for the youth, Aregbesola urged a focus on the development of the fashion industry to support economic growth.

He said Nigeria needs to take advantage of the multi-trillion dollar fashion industry, as a highly viable option for job generation.

Governments, he explained, could contribute by introducing a national wear policy for all workers so as to promote locally made fabrics and to cut the overreliance on foreign clothing which rather generates employment and revenue for other countries.

He called for the empowerment of small and medium operators in the fashion industry   as a deliberate job creation strategy.

 

Promoting Yoruba fashion

Aregbesola said fashion remained a powerful vector for ideas and significant contributor to Yoruba’s international influence.

As governor, he has seen thriving communities with rural tailors and   entrepreneurship at work. He has seen in the past, old men seated in a long room full of looms used to weave fabrics for homeware, and using traditional techniques to create beautiful Yoruba designs. Though the set-up provided a micro-ecosystem of empowerment, skills upgrading and market connection, however, so many of such products have not  found themselves in stores and living spaces around the world.  Many of the designers have not taken home reasonable income in their lives.

Against the background, he said the government established the Ijinle Project with a view to revitalising the Yoruba fashion industry and having Osun State serve as a fashion hub.

According to him, the initiative is meant to support the development of micro, small and medium-sized businesses (MSMEs) and youths operating in the traditional Yoruba fashion industry.

He said SMEs have the great potential of fuelling growth and spur job creation.

Not only with the Ijinle project help to showcase the Southwest continued leadership in the fields of fashion, according to him, it will help traditional Yoruba designers to gain new expertise or translating their knowledge into marketable skills.

He said they will be able to increase confidence, and their contributions to their family income while also finding dignity in work.

 

Style, substance

Aregbesola said Yoruba fashion scenario is known for its cultural heritage, elegance and colourfulness.  Fashion, according to him, has always been an important part of how Yoruba define themselves and others.

Through traditional Yoruba fashion, the Governor said real designers bring beauty, which has sustained through innumerable decades.

He said the market for Yoruba fashion industry is quite lucrative in terms of scope and variety.

According to him, Ijinle is built on the premise that fashion entrepreneurship must be a critical component of any poverty alleviation strategy.

He stressed that livelihoods of people will improve through Ijinle Fashion initiative, which connects artisans with the international market place.

The project, according to him, gives artisans the opportunity to manufacture well woven fabrics and produce fashion accessories. The workers, he added, would benefit from the increased income for their families and communities, while buyers are able to source well produced goods that meet their quality standards.

The Ijinle Project empowers indigenes of Osun State with a lucrative craft, which provides economic empowerment for the beneficiaries in a sustainable manner.

Beneficiaries of the programme are carefully tutored to master the craft by Mr. Kabir Durojaiye, a veteran, who has mastered the craft of bespoke vintage wears for over 30 years and whose clients are the crème-de-la-crème of Yoruba elite all over Nigeria.

 

A regional fashion incubator and hub

Osun State wants to redefine  what it means to be a fashion entrepreneur and bring traditional business back to Nigeria in a big way. Governor Aregbesola said the state is determined to establish a regional Yoruba fashion hub. The goal is to support and keep talents that are passionate about revolutionising Yoruba traditional fashion.

While  the hub is  expected to  attract  designers by stimulating job creation and retention, the other  specialists that will  move to the area, include, pattern-makers; contractors and graders;  models; stylists; photographers; videographers; graphic designers; printers; service technicians for the sewing machines; sales agents; book keepers and more.

For him, revitalising the fashion industry will help to revitalise the local economy. Already, Osogbo is an area rich with niche market businesses, artisan production and visionary entrepreneurs.

With the trend towards artisan showing no signs of slowing, stakeholders expect the hub to help support businesses by providing workforce training and easy access to experienced professionals and a host of other resources.

The governor said new capacity building opportunities continue to be provided to local fashion entrepreneurs. This, according to him, is  aimed at increasing the commercial impact of the local fashion sector.

The industry, according to him, has untapped potential that can contribute significantly to income generation and job creation.

The strategic plan for the industry, he stressed, has aggressively driven the business development activity of the industry.

He congratulated participants at the inaugural cohort on their success, adding that the project will facilitate access to funding for participating designers.

 

Connecting Yoruba designers to markets

The Programme Co-ordinator, Muinat Atunnise said the idea of having the forum was to induce the general public to take a greater interest in Yoruba fashion.

Specifically, she said the project, which is envisioned as a ‘Train-the Trainer’ concept with a training centre in Lagos, seeks to preserve the fast-dying master-craftsmanship used in producing vintage Yoruba pieces such as  the traditional Agbada, Kembe, Agadashi, Danshiki, among other conventional wears of the people of the Southwest.

Ms Atunnise said the project will focus on creating opportunities for men and women in the trade, adding that it aims to foster change by going beyond the traditional approach of merely improving the quality of products and services to getting them connected to regional and global market opportunities.  She said the producers were trained to improve their produce and be linked to high-end consumers.  Partnerships, according to her, are crucial to increasing the reach, quality and sustainability of the initiative. So far, she said the project team is teaming up with different partners to ensured support for the entrepreneurs.

So far many institutions have committed themselves to participate in the effort to promote Yoruba fashion.

 

Easing office dress codes

Spurred by the growing calls for more diversity in work culture, Osun State is easing office dress codes to give employees more freedom to wear made in Nigeria clothes, especially Yoruba attires to office.

The Governor is a notable Yoruba attire ambassador. He is among few governors, who have shed the traditional suit in favour of traditional fashion. Because of him, Yoruba attire is taking roots in Osogbo. The governor is always seen clad in traditional attires. He looks out of place if he wears suits. His wish is that Yoruba traditional attires become the norm in the workplace.

He said although the “Made in Nigeria Wear” concept introduced in the country was good, it has become necessary to introduce an “Everyday Nigerian Wear”.

This, according to him, will increase patronage of local clothing, create millions of jobs for the youth and generate revenue for individuals and the economy.

Director, Arts, West Africa, British Council, Ojoma  Ochai, said  overhaul of the dress code will help  to promote Made-in–Nigeria outfits  as  well as the ability to come up with ideas flexibly.

She said for the traditional fashion industry to grow, there must be a national campaign to allow workers dress in traditional outfits everyday. She noted that the local fashion industry, thus far has been favoured by an animated domestic market, but lamented that not so much efforts have been channelled towards promoting its high-grade fashion products to the world.

Nevertheless, she maintained that Nigeria, which possesses immense potential as a fashion centre as evidenced by the tradition of excellent sensibilities and techniques that support fashion.

 

Kabir Durojaiye’s role

Chairman, Federal Mortgage Bank of Nigeria, Mr. Wale Adeeyo said Kabir Durojaiye has found it hard passing the skills of vintage Yoruba tailoring to the new generation.

With the project, he said they have been able to work with him to train craftsmen and women to produce the fast-dying vintage Yoruba pieces like the traditional Agbada, Kembe, Agadashi, Danshiki among other conventional Yoruba wears.

 

Opportunities

Executive Director, Fate Foundation, Mrs Nike Adeyemi,  said the sector is a crucial source of employment and one of the few industries of scale the nation can boast of.

According to Mrs Adeyemi,  there was new sense of optimism in the industry, adding that the fashion industry in Nigeria is witnessing fast growth with young entrepreneurs exploring opportunities across the industry.

She added that fashion designers, both male and female, have flourished with the recent collection of the most innovative clothing designs.

To her, the local market is getting more and more attractive on the back of rising income of middle class households. Therefore, more textile producers are consciously making efforts to increase their exposure in the local retail apparel market.

The fashion industry, she said, requires originality in fashion designs instead of merely copying the foreign designers. This, she added, the Yoruba fashion sub-sector will provide for those, who look for opportunities for modernising concepts.

She urged the government to remove existing hindrances and expediting growth in fashion to capture more production and create more employment.

 

Training

During the training, the participants were exposed to mentored sketching, fabric sourcing and product development.

The  project trained, equipped and set up 15 master-craftsmen and master-craftswomen from Osun State as entrepreneurs in making vintage Yoruba dresses, which are going into extinction.

 

Tolu Caleb, a graduate of Economics is the Managing Director of Rotimax Integrated Services Limited, who was forced out by circumstances to venture into pest control and fumigation services has a riveting story to tell. He was in paid employment for some years until the first global financial meltdown of 2008, which had rippled negative effects on businesses including Nigeria, rendered him jobless. With the prospect of getting another job uncertain, he decided to set up shop as a pest control company. He speaks with Medinat Kanabe on the pros and cons of the business.

Companies have over the years started the business of providing the service of fumigation in this regards creating jobs for many.  One of such is Rotimax Integrated Services, run by Tolu Caleb.

According to the graduate of Economics, he was motivated towards the line of pest control business because he loves field work and because of a retrenchment that happened in his former place of work in 2008.

Justifying the reason for going into the line of work,  the soft-spoken gentleman said, “Naturally I don’t like to be in an office. I love jobs that will take me from place to place. Going into pest control job was not planned as I studied Economics which doesn’t have anything to do with pest control, but I love everything environment, I love hygiene and clean environment. I am a very detailed person and don’t like to see dirt around me.

“But one major incident that made me choose this part happened in 2008 during the first global financial crisis; there was a lot of downsizing where I was working. It was so bad that more than half of the staff from some branches were retrenched so I started to think about what to do,” he recounted.

“Even if I was not affected I asked myself what I would have done if I was involved. At that time, there was this guy that used to come to my office then to fumigate; he was also in charge of GOA feed Apapa branch. I usually see him collect cheque of over N1million every month so I approached him one of those months and asked him about the business. Being a very friendly person he guided me and told me to go for training which I eventually did.”

Still speaking on training, he said he went for training as far as South Africa in 2008 because there was no training on pest control going on anywhere in Nigeria; “in fact that is what motivated us to go into trainings on pest control and fumigation in Nigeria.

“My company is the only company doing training on pest control and fumigation in Nigeria; because I benefitted from going to get knowledge before starting what I am doing, I think other people should also get trained before they start because one of the major challenges of pest control in Nigeria is proliferation of quacks. We have more quacks than professionals and people are patronizing them because of ignorance so with the training we are helping the government to reduce quacks in the country.

“I have attended so many trainings in the past and just returned from one organized by the federal ministry of environment in Abuja. Training is continuous especially for our field.”

Talking about the regulatory and legal requirements needed to set up a pest control agency, Mr Caleb said first there is a law that mandates that one must be licensed by the Federal Ministry of Environment before they start.

Continuing, he said the agency under the Federal Ministry of Environment that makes sure of this is called the Environmental Health Officials Registration Council of Nigeria, EHORECON. “What the law says is if you want to do pest control business you must get your license from EHORECON which is the body regulating the industry at the federal level. For the state level in Lagos State you still get to deal with the Lagos State Environmental Protection Agency, in Ogun State it is called the Ogun State Environmental Protection Agency.”

On association guiding the industry, he said they have the Pest Control Association of Nigeria, PECAN which has been in existence since 1987 adding that they have members across the country and it is a functional association that holds Annual General Meetings, AGM every year. “This year’s AGM is coming up next week.  Other states also have their state agencies but what the law recognises is the federal license from EHORECON,” he said.

Explaining how affordable it is to start up a pest control agency, he said he can say the industry is one of the industries that allow low startups. “On the average I can say between N100, 000 to N300, 000 if you wish. You can get equipment to rent. We rent equipment to people a lot so you can start a pest control company without having any equipment. They give you the equipment; you pay, use and return. The client will not know where you got the equipment from, all he cares about is for you to do his job so N100, 000 to N150, 000 is enough to register a company, EHORECON license but every other thing can be done little by little.”

He further said that as the business is growing one can invest back into the business saying that if he rents equipment to someone for N200, 000, he can take N30, 000 from that money to buy another equipment or chemical and keep it.

“So on a very serious level; you need about N150, 000 to start. You can start with N20, 000 or even N30, 000 but on a serious scale, N150, 000.”

Caleb whose company is 9 years old now said profit from the pest control business is immediate.  “For example, one of the participants in our just concluded training just got a job with Niger state government to help in the control of malaria programme in the state.

“You can start and start making profit that same day and you can also start and nothing comes up in three months but something must come up. There are a lot of opportunities in the business. Pest will always constitute nuisance and people must seek the service of the pest control agency.

“Pest constitute nuisance globally irrespective of where you are or what you do. A few days ago we were privileged to fumigate the house of Linda Ikeji in Banana Island and that is not the first time we have been to Banana Island to work so with the kinds of facilities in Banana Island, if someone calls you to say they have rats you can imagine.”

Speaking about the downsides of the business, he said he will not say that there is a downside to the business because it is caused by their inability to go through the proper regulatory agency before they start the business which poses danger for them. “For this kind of business one needs a license to operate so if you are not licensed there are some organizations that will not patronize you so I will say the downside comes up when we focus on the low earners.

“The Nigerian environment does not make pest control a thing for everybody but the high class. It is only a man that is well to do that will call you to come and fumigate his house when he can go to the market like the poor man to buy chemicals by himself and apply in his house. It is a big business in Abuja, Lagos and Port Harcourt because they are commercial nerves and a lot of activities goes on in these states; ordinarily it should be a big business in Nigeria but only companies that are well to do use the services. Some will say you should leave the rats to be playing around that they won’t do anything.”

Caleb didn’t give a particular monthly turnover for the business as he explains that it fluctuates. He said they have 6 in-house staff and they don’t owe salaries. “One thing about this business is retaining your customers. When you do a job on the first of January the law says first of April, you are going back to do the job so there is an opportunity to go back if you did well the first time.”

Rotimax Integrated Services  has branches in Lagos and Abuja but Caleb said that they are considering Port-Harcourt and Akwa-Ibom because those are states that are oil serving and value the service a lot.

The former military administrator of Ondo state, Rear Admiral Abiodun Olukoya (rtd), has called on corporate organisations and individuals on safety awareness in their workplaces.

Olukoya who stated this at the fourth annual 9jaSAFE Dinner and Awards noted that achieving a safe workplace and nation will remain elusive except all and sundry accept personal responsibility in the task of safety.

He observed that unalloyed commitment of stakeholders, especially Nigerian leaders is the only way to meet safety goal in line with ILO’s constitutional principles that workers should be protected from sickness, disease and injury arising from their employment.

Olukoya who is the chairman governing board of the award, observed that HSE practice in Nigeria is yet to attain international standard due to several reasons, mainly inadequate governmental support.

He commended the 9jaSAFE awardees for their achievements despite the inadequate structural and infrastructural support facing safety in the Nigeria shore.

Also speaking at the event, the Chief Coordinating Officer, Safety Award for Excellence (9jaSAFE), Femi Da-Silva, said individuals and organisations awarded in the event had, through their experience, expertise and resources, helped to build a country that can be proud of.

He recalled that when the award started four years ago, the vision was to celebrate organisations and individuals who have committed themselves to promoting and raising safety consciousness in their various workplace environments.

He identified paucity of funds and nomination process as some of the challenges militating against the organisation’s operation, saying apart from recognising people who had done well in promoting health and safety, they could have raised more awareness about health and safety on various media platforms.

All over the world, sanitary wares are made from variety of materials each of them having certain advantages over the others, though sanitary wares made from ceramic has numerous advantages over ones made of other materials.

Sanitary wares are used for hygiene purposes, the product ranges from washbasins, closets, urinals, sinks, baths to hoppers. It resistance to weathering, chemical erosion, mechanical strength and resistance to abrasion. Its use in sanitation has preference over other materials.

Market potential:

The market for ceramic sanitary ware is very bright since its demand is increasing though at a high rate. The reasons are not farfetched, the huge housing and accommodation deficit in the country as individuals, private and public sectors are trying to bridge the gap in the housing sector.

The demand of ceramic sanitary wares is increasing day by day in rural and urban areas due to increased construction activities and changing sanitation habits. The small scale industries are manufacturing mostly white coloured opaque sanitary ware which has a large demand in the rural areas. A number of SMEs have also started manufacturing coloured variety of sanitary ware which is in great demand not only in the cities areas but has created a good export market also.

Manufacturing Process

The non-plastic raw materials like quartz, feldspar and some clay are crushed and ground to required fineness. They are unloaded in an agitator where more clay is added as per composition. The slip is screened, magnetided and kept in an agitating tank with addition of required flocculants. The wares are cast in plaster moulds. The wares are dried and finished and are kept on open racks for drying. The dried wares are tested for cracks and then applied glaze by spraying. It is then loaded in the kilns for firing at a temperature of about 1260OC. After firing they are sorted out and packed for sale.

Production Capacity (per annum)

Quantity:  1,200 M.T.

Value:  N25200000

Motive power:  95 HP.

Monetary requirement:

Fixed capital

( i ) Land and Building

Land 2400 sq.mtrs. at N2000 per sq.mtr. N4800000

Building

Office, stores, laboratory 300 sq.mtr at   N3500 per sq. mtr. N1050000

Working shed 900 sq.mtr at N3000 per sq.mtr.             N2700000

Total                  N8550000

 

(ii) Machinery and Equipment Production Unit

Description               Qty. Nos.

Ball mill size 6ftx6ft complete with porcelain lining and grinding media with 1.0 HP motor two (2) N400000

Ball mill size 3ftx3ft complete with porcelain lining grinding media with 5 HP motor four (4) N400000

Agitator vat dia 10.5 ft and height 10.5 ft. Complete with 5 HP motor        three (3) N120000

Slurry pump cap.1000 ltrs. Per hr. with 5 HP motor one (1) N30000

Magnetic separator of permanent type one (1)         N10000

Spray booths complete with complete with air compressor spray guns etc. four (4) N60000

Testing Laboratory equipment and apparatus N40000

Ceramic fibre lined, shuttle kilns, oil fired, capacity 5 tonnes complete with firing system, loading cars and setters etc. with one extra car each three (3)                            N3600000

Oil pipe fitting for furnace N80000

Oil storage tank and pre heating system                      L N60000

Deep well pump set with over- head storage tank (2 HP) N100000

Installation and erection charges               N80000

Drying racks and working table, slurry container etc. N250000

Office equipment and furniture                 N100000

Total cost of machinery and equipment N5330000

 

(iii) Pre-operative (project deposits etc. and other unforeseen expenses)   N1,00,000 cost, non-refundable,

Total fixed capital(i+ii+iii)                                                     N13980000

Working capital (Per month)

(i)          Raw Materials Including Packing Requirements (per month)

China clay 13MT    N2000    N26000

Ball clay/fire clay 40MT N800 N32000

Felspar powder 30MT   N1400 N42000

Quartz powder 25MT   N1800 N45000

Plaster of paris                   8MT              N2000 N16000

Other colours and chemicals N15000

Packing material N16000

 Total  N192000