Tag: building

  • Building failures: Causes, issues and way forward

    Building failures: Causes, issues and way forward

    By Odinaka Victor Okonkwo

    There are three basic needs of man: food, shelter and clothing. A building is another name for shelter and is therefore one of the basic needs of man. We construct buildings to provide shelter for man, animals, machines, properties and work places. A building protects us, our properties and our animals from harsh environmental conditions. The building also helps to suspend us in space as in multi-storey buildings hence enabling a large number of people to occupy a small area of land.

    A building has failed if it is unable to perform its intended function. The failure of a building could be as a result of many factors. It is best traced by looking into the building team. Like a football team, the construction of a building requires the input of different professionals. Each professional, like each member of a football team, supplies one or more of some of the ingredients needed for the building structure to meet its intended needs. The absence or failure of which leaves the project deficient. Just like in food and nutrition classes, the deficiency points to what is lacking in the product. The addition of the ingredients/input lacking heals or restores the product.

    The architect conceives the building project. He is the one with the mental picture of the building before it is built. This he puts down on paper in the form of a set of drawings. The drawings show the size, shape, look etc of the building to the nearest millimetre. He is usually regarded as the head of the building team.

    The civil/structural engineer studies the architectural drawings and produces the structural drawing. The structural drawings are a set of instructions (ingredients) needed to enable the building to stand firm meeting both the requirements for stability and serviceability. He must be able to understand the architectural drawings. He must understand the soil characteristics of the chosen site and the available building materials in the market.

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    The electrical and mechanical engineers produce the electrical and mechanical drawings respectively. Modern buildings come with electrical and mechanical components like sockets, heater, lifts etc. Their drawings provide information on the electrical and mechanical components of the structure to enable them work as envisaged by the architect.

    The quantity surveyor collects the drawings (ingredients) provided by the architect, civil/structural engineers, electrical and mechanical engineers and works out an estimate of the resources needed to execute the project. He facilitates an estimate of the project cost.

    The land surveyor helps us in positioning the building project accurately on land as provided for in the site plan. Hence in large building projects, they are often hired to enable the contractor locate the exact place/point to erect the building. They are excellent at transferring geometry from paper to land. They can also be hired to position building components like columns as specified by the civil/structural engineers.

    The town planner plans our city. He prepares its layout to enable easy movement of people and access to basic facilities.

    The builder is the professional trained in school to become the contractor (the cook). He is the one that collects the instructions (ingredients) from the other professionals and sets out to execute (cook) the project (food).

    These professionals have inputs to make in our building structure. While the input of some like the town planner is only pre-contractual, others like the architect and civil/structural engineer are pre-contractual and post-contractual.

    A building fails when one or more of the inputs of any of the building team is deficient.

    The reactions to the failure of buildings are often politicized. Whenever a building collapses it becomes an opportunity to invite all the building professionals. Expert views are requested from all building professionals even when it’s a known fact that it has to do with the contribution of the civil/structural engineer. This is to enable each professional gain from the largesse or government spending that often goes with such investigations. Committees set up by government to investigate building collapse often have engineers in the minority. It’s not strange to see such committees being chaired by non-engineers. This shows the value our political leaders place on the problem.

    Our building regulation and adherence to standards is still very low. Our building construction industry is still like a student who is not bothered about what he scores in an exam. He is happy to score anything from 2% to 100%. He is only bothered when he scores 0%. Sure 0% is a failure. But failure actually starts from 39% and below.

    A building that is wrongly sited is a failure. A building that offers poor circulation/movement within the building is a failure. A building that is poorly ventilated or poorly lit is a failure. A building that could not be completed after the release of the estimated cost is a failure. A building that has no safety features is a failure. In each of these cases the building scores below 39%. But we usually react only when the building collapses that is when it scored 0%. Well that too is a failure.

    One of the professionals offers a very essential input which not utilized can plunge the building into a total failure (0%). That is the civil/structural engineer. This should make the civil/structural engineer occupy a special position in our building industry. This should be so because we often ignore or tolerate the failures due to the inputs of other building professionals.

    The government has instituted agencies for monitoring and ensuring our buildings do not fail. These agencies are to ensure that the inputs of the relevant building professionals are not lacking. These agencies to say to least have performed below expectation.

    They do not seem to appreciate the enormous task of monitoring building projects as different from just being a revenue generating asset of government. In fact the latter seems to be their priority and the instrument for assessing their performance.

    The staffing of the agencies is usually poor both in quality and quantity. The agency is supposed to house all the professionals in building construction. To meeting this requirement is however very expensive.

    Synergy with the professional associations will release to the regulatory agencies a pool of ready and viable hands for effective building regulation. The agency will tap from their expertise and numerical strength. They (the professionals) being one of the ultimate beneficiaries of a well regulated industry are willing to assist the agency. The civil/structural engineer is the first culprit when a building collapses. It is therefore necessary to ensure that he makes the necessary input to every building project we want to stand. If however he is careless in discharging his duties for reasons entirely his, he should be reported to his regulating agency COREN for appropriate sanctions.

    A well maintained data or record of work done and by who will enable easy recourse to the culprits in the event of poor implementation of professional duties. People are more cautious when they know that their files are kept properly and can be referred to if occasion warrants. These records should be accessible to the public.

    The relevant professional should be the contractor (cook). As painful as this may sound, the cook (the person that interprets the instructions of the other professionals with the aim of producing the finished product) should be a professional that is able to interpret the instructions from the architect and civil/structural engineer. The most threatening danger faced by the construction industry is the lack of regulation on who should be the contractor. In our construction industry, the contractor can be anybody. He needs not know how to interpret the information supplied by the other professionals. He needs not know the consequences of flouting their instructions. He only needs gut and the ability to imitate what a professional elsewhere did to be a contractor. This leaves our regulatory agencies stretched to their limits.

    Building collapse will remain until we begin to regulate who and who executes building projects and if possible criminalize the execution of building projects by non-building professionals. Building professionals are people who by training are equipped to interpret the instructions from the other professionals. The architect has a smattering knowledge of structures, quantities etc to be able to work effectively in a building team. The civil/structural engineer is taught the very rudiments of architecture to enable him interpret the drawing and hence recommend the appropriate structural elements. This also applies to the quantity surveyor. Building construction must be executed by the person who can interpret appropriately the instructions from other professionals.

    • Engr. Okonkwo Ph.D is of Department of Civil Engineering, Nnamdi Azikiwe University Awka, Anambra State.

  • One dies in Lagos building collapse

    One dies in Lagos building collapse

    An unidentified woman was confirmed dead following a partial building collapse in the Oyingbo axis of Lagos State.

    The Lagos State Emergency Management Agency (LASEMA) confirmed the fatality in a situation report sent to The Nation by Permanent Secretary, Dr. Olufemi Oke-Osanyintolu. It said the collapse happened at approximately 7:45am when the ‘aging and poorly maintained’ structure gave way, resulting in the collapse of an internal suspended beam within one of the rooms.

    The statement read: “Situation report on the partially collapsed building at 34, Oloto Street, by Borno Way, off Freeman Street, Oyingbo. The agency responded to distress calls concerning the above and, upon arrival, discovered a storey building in a state of partial collapse.

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    “Further information gathered at the incident scene revealed that an internal suspended beam in a room collapsed about 7:45am due to the aging and non-maintenance of the structure. Unfortunately, an old woman died from the impact of the partial collapse.”

    Oke-Osanyintolu said search and rescue operation is currently underway, with a number of emergency response teams including LASEMA Response Team, Lagos State Ambulance Service (LASAMBUS), LRU Paramedics, and Lagos State Fire and Rescue Service at the site providing assistance. He added that the building has been cordoned off, and the Lagos State Building Control Agency (LASBCA) informed of the situation.

  • Building directors’ capacity for growth

    By Omobola Tolu-Kusimo

    Directors’ interference in the management of insurance firms by engaging in malpractices or misconduct without minding the impact on the company may soon be reversed, Omobola Tolu-Kusimo reports.

    The responsibility of directors of insurance companies in adhering to corporate governance is key to achieving sustainable growth and development of the business.

    Over the years, attempts at entrenching good corporate governance culture in the sector has not yielded the desired result, despite the enatment of the Corporate Governance Code in 2009 and the Market Conduct Guidelines in 2014 by the National Insurance Commission (NAICOM).

    The primary role of the boards, either in a private or public entity, remains the oversight of management to ensure the corporate goals, vision, mission and values of the entity, are strictly upheld.

    The board is also expected to ensure the financial soundness and well-being of the organisation by monitoring the management, to guarantee effective and efficient deployment of human and capital resources in the benefit of stakeholders.

    The observance of this role has been lacking in some of firms, a development, which has contributed to the challenges of these firms.

    Rather than perform their roles without  interfering in management, the boards abuse the system, by engaging in malpractices and or misconduct without minding the impact on the company. Many times, such firms, become insolvent and unable to meet the primary obligation of claims payment.

    To solve the problem, NAICOM brought together chairmen and chairpersons, managing directors, directors, non-executive directors and executive directors to promote better understanding and appreciation of the  industry and their roles and responsibilities  at capacity building conference with the theme, “Corporate governance: The panacea for sustainable growth and development of insurance business in Nigeria”.

    At the event, the directors said they were aware of the importance of repositioning the industry, promising to reverse the trend.

    Acting Commissioner for Insurance, Mr. Olorundare Sunday Thomas said: ‘’It is imperative for me to remind us that your companies are in the business of insurance primarily to settle genuine claims made by policyholders. In all policy formulations of the board, I am appealing that the prompt settlement of claims be given a high priority. The commission will view seriously any case of late or non-payment of genuine claims.

    ‘’The recapitalisation is on and the reports submitted by the companies on their recapitalisation plans have been good, I can only encourage sustained efforts at early completion of the plans.

    ‘’Meanwhile, the Commission is engaging other relevant regulatory bodies and agencies of government for possible palliatives that will reduce the cost of recapitalisation and the response is looking good.

    ‘’I have no doubt that at the end of this programme, we will be going back home with a better understanding of the sector, our roles as directors and the benefits that will result from effective performance of these roles.’’

    Thomas said the low level of effectiveness of corporate governance oversights in the sector remains one of the major regulatory concern to the Commission.

    ‘’This is for the simple fact that the failure of corporate governance in the past has played a prominent role in the death or distress of most corporate organisations the world over, Nigeria inclusive,’’ he said.

    He stated that the desire of the Commission is to work with stakeholders, including directors to reverse this trend.

    He said: “It is imperative to remind you that your companies are in the business of insurance primarily to settle genuine claims made by policyholders.

    “In all policy formulations of the board I am appealing that the prompt settlement of claims be given a high priority. The Commission will view seriously any case of late or non-payment of genuine claims,” he added.

    The Chairman, FBNInsurance Limited, Mrs Aderele Kehinde, said the programme was  informative.

    She said she initially felt it was not necessary, but was happy that she attended because she found value in it.

    She said: “I have seen a lot of value in attending the conference. There are some things many of us didn’t know or put to mind at a point but reemphasising our responsibilities makes us conscious of the importance of our positions and the responsibility expected of you.

    Leadway Assurance Chairman Gen Martin Luther Agwai (rtd), said: “I am glad that I came because I was not into insurance or finance before coming into the industry. I enjoyed the fact that the discussion was brought to those of us who are learning gradually in the field and I have found a very useful day and I am leaving a happy person.

    “The fact that I know that if something goes wrong while I am the chairman, I can be dragged back to the company by law even when I retire from the company is something that I find enlightening. I know that it is another risky business. But I believe what any director or chairman should be doing is to take calculative risk and he or she will not have any problem.”

    KBL Insurance Director, Mr Simpson Eimiakhena, also said he had listened to experiences not just from the regulator but practitioners. It was very well-intended and the knowledge that was given was good.

    “The conference is like a sensitalisation forum, where directors get to know their responsibility and is not just knowing their responsibility, but to appreciate it and to be able to put the right structure and framework in place. In everything that we do, there is element of risk. but we must be able to mitigate those risk. so it is not just that you are liable or responsible for decisions taken or not, but it is about the fact that as a director, you must be responsible to do the right things. And if you do the right thing I don’t think you have anything to fear.

    “We were told in one of the discussions, it was very clear that you must have good fate. In other words, there must be adequate disclosure in anything that you are involved in. It doesn’t stop any transaction but let it be known that you are involved and part of it. Follow the procedure and processing. So for me, I think it was good,” he said.

  • Firm urges Muslims on nation building

    A foremost foam and mattress firm, Mouka Limited, has advised the Muslims to promote the spirit of nation-building across the country.

    Its Chief Executive Officer, Raymond Murphy urged them to use the season of fast to pray for peace and unity in the country.

    “It is our hope that the virtues associated with engaging in this divine obligation would be the reward of all Muslims,” he said.

    Murphy enjoined the faithful to remember the essence of the sacred exercise and ensure its reflection in all their dealings beyond this holy month.

    “As a company committed to nights of quality sleep, Mouka admonishes Muslims to remember to have a healthy sleep culture during this period to prepare them for each day’s holy task. It is hoped that this Ramadan will indeed yield its essence and enhance the faith of all Muslims as they diligently observe this fast and undertake this divine assignment,” he added.

  • Sultan tasks FG, states on building, equipment of hospitals

    The sultan of Sokoto, His Eminence, Alhaji Saad Abubakar III, has on Tuesday tasked government at all levels on adequate construction and equipment of healthcare facilities to help in effective delivery of healthcare.

    The Sultan made the call in his keynote address to the first quarter review meeting of Northern Traditional Leaders Committee on Primary Health Care, which was held in Kaduna.

    The major focus of the meeting was to receive update on Community Health Influencers, Promoters and Services (CHIP) initiative launched by President Muhammadu Buhari in 2018.

    The CHIPS initiative is aimed at using community-based women to improve maternal and child healthcare,  part of which includes educating women on importance of visiting health facilities when need arises in order to avert deaths from preventable diseases.

    The sultan who decried the deplorable status of healthcare facilities in the country said, “I will like us to talk about the position of our health care facilities across the towns and villages.

    “You can’t come around with such  programs, (CHIPS)   advocating about going to clinics for antenatal and you don’t have the clinics. There are so many buildings across the villages in the name of clinics,  but there’s no nurses, nothing.

    “So, we will want to see states and Federal Government embark on construction and equipment of full healthcare facilities across the villages and towns where we have large population of our people.”

    While assuring that traditional leaders in the north will do everything humanly possible to ensuring that new born and mothers live healthy, the sultan said  provision for man power, drugs and shelter are very paramount in ensuring such is achievable.

    The sultan who admitted that the traditional leaders in ten years have recorded tremendous success in the Polio eradication program  however,  noted that, the disease is not the only  health challenge bedeviling the country, “We also have so many other diseases —and one of them is hunger.”

    Meanwhile, the Executive Director of National Primary Health Care Development Agency, Dr. Faisal Shuaib said the meeting is focused on how the traditional rulers can use their unique positions,  as custodians of heritage and culture to mobilize people in communities for improved primary health care, especially  on CHIPS.

    He said the traditional leaders have recorded success in polio eradication program and such success can be replicated in the CHIPS initiative.

    According to Shuaib, “The point to note is how they have have been able to provide leadership in all ramifications towards polio eradication, especially  as they have assisted in casting away doubts on polio vaccines and immunization.

    “When community members saw their leaders are advocating for immunization and vaccines,  they came out and started receiving it. As you can see,  we are just five months away from been declared a polio free nation. This is significant.

    “So in this first quarter meeting,  we are now expanding the horizon of this traditional leaders in terms of what they will be engaging in. Moving forward,  they will be taking up the role President Buhari asked them to take—which is providing leadership around CHIPS program.

    “President Buhari has put in place and laid a solid foundation  for a day in future where no Nigerian will be denied access to health care because they can’t afford it,” the Executive Director explained.

     

  • Poll postponement: building on past disappointments

    Election dates are no more sacrosanct in Nigeria. What is only certain is that orderly succession or periodic transfer of power is still constitutionally guaranteed within the time frame determined by the electoral law and as implemented by the umpire.

    The mistakes of the past were just simply repeated when the Chairman of the Independent National Electoral Commission (INEC) shifted the scheduled presidential and National Assembly elections from yesterday, February 16 to February 23 and the governorship and House of Assembly elections from March 2 to March 9.

    The implication is that the electoral agency is overwhelmed; it is unable to learn from the past in its bid to conduct polls involving 84 million voters.

    However, historically, poll postponement is not new. Under the military rule, military President Ibrahim Babangida was fond of influencing the National Electoral Commission to shift polls, following the postponement of the hand over dates.

    Even, parliamentary elections already conducted under military Head of State Gen. Sani Abacha were cancelled by his successor, Gen. Abdulsalami Abubakar.

    But, since the restoration of civil rule, Nigerians expected that the election management body should be up and doing; almost infallible. What is worrisome is that the most recent postponement may be a predictor and attestation of general incompetence on the part of the umpire

    It may also be due to factors imposed by the electoral environment where participants view the democratic contest as war. Part of that unforeseen contingencies was nature. INEC is now blaming bad weather. It did not contact the meteorological department for advice in time.

    It is more worrisome, according to observers, because INEC had enough time to plan and implement the electoral timetable, and the hitherto over-confident Chairman, Prof. Mahmud Yakubu, had also heightened public expectation through repeated assurances that the exercise will be smooth and there will be no postponement.

    INEC had resisted undue political influence. It was not starved of funds. The electoral body has often asserted itself as an independent agency.

    The postponement was not due to war or insecurity. It was not due to the outbreak of epidemics. It was not due to any disaster that threatened Nigeria and INEC operations.

    The reasons given by INEC were that certain operational constraints and logistical impediments threatened to abort the exercise. Yakubu obviously reasoned that a postponed exercise was better than an inconclusive poll.

    In 2011, the National Assembly elections had kicked off nationwide when Yakubu’s predecessor, Prof Attahiru Jega, in a statement, shifted the polls, following the non-deployment of poll materials to voting units.

    The political parties-the then ruling Peoples Democratic Party (PDP)-was criticised by the opposition parties-the defunct

  • 75-yr-old escapes death as car rams into building, injures daughter

    There was pandemonium on Sunday December 16, 2018, after the driver of a Toyota Camry car marked LND 233 AE lost control and rammed into a building on Santos Avenue in Abule Egba area of Lagos State.

    The incident happened at about 10.30 pm.

    The owner of the building, Pa Ayinla Busari, who runs a pool betting shop outside the building escaped death by whiskers in a bid to avoid being crushed by the car, whose impact left a hole on the building.

    Pa Busari however sustained bruises on his arm and legs, while one of his daughters, Bilikis, was unlucky as the car crushed one of her legs. She is currently receiving treatment at a hospital.

    Witnesses said the driver of the car was drunk and over sped when he lost control and crashed into the bungalow.

    It was said that bottles of beer were found in the car, after the driver escaped from the scene unhurt.

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    ‘’ It was like a scene from the movies, when the young driver of the car veered off the road and crashed into the building. Bilikis, who was standing outside the house told her father to run inside the building, but one of her legs was smashed by the car,’’ said one of her brothers who asked for anonymity.

    When The Nation visited the scene, residents urged the state government to provide speed breakers on the road to prevent reckless drivers from causing havoc on the road.

    ‘’ This is not the first time we are witnessing accidents like this on this road. Recently, there was a motorcycle accident which almost claim the life of a teenager. The motorcycle’s rider was very reckless and if there were speed breakers, he would not have sped the way he did causing unnecessary accident here.

    ‘’ I therefore want to urge the state government to provide speed breakers on this road and save us from being killed by reckless drivers or commercial motorcycle operators popularly called okada.’’

    Policemen from Oko Oba Division later visited the scene and evacuated the car to their station.

  • Building local capacity for food fortification

    Fortification is used to increase the micronutrient content of foods.International organisations are empowering firms to end hunger by increasing their capacity to provide quality and nutritious fortified foods for local communities. One of them is Techno Serve, an international non-profit body, which is promoting business solutions to poverty in the developing world by linking people to information, capital and markets. DANIEL ESSIET reports.

    With vast array of foods on offer to most Nigerians, dietary deficiencies should be a thing of the past. However, the widespread deficiencies of certain micronutrients, including iodine, folic acid, calcium and vitamin D have been observed nationally.

    Studies have shown that nutrients intake from fortified foods differs considerably from state to state and that there are nutritional inadequacies in foods currently consumed with selected micronutrients. Major staples such as   garri, flour, oil, milk, rice and salt have to be fortified to tackle the deficiency of micronutrients.

    For stakeholders, fortification of food with specific micronutrients and vitamins can resolve nutritional deficiencies in women and children, which negatively affect growth, survival, and development.

    International organisations are, therefore, promoting food fortification, where essential micronutrients are added during food processing, to address micronutrient malnutrition at scale. They see immense potential for food processing and value addition in fortified foods.

    One of them is Techno Serve, an international nonprofit organisation, which promotes business solutions to poverty in the developing world by linking people to information, capital and markets.

    Techno Serve is supporting the inclusion of food processors into the national fortification programme by providing them with technical support and helping to create demand for their fortified products.

     

    Strengthening fortified foods processors

     

    Through its Strengthening African Processors of Fortified Foods (SAPFF) project, Techno Serve is addressing nutrition issues through food fortification.

    SAPFF helps food firms to improve their capacity to produce and sell fortified foods for local markets, and provide consumers the nutrition they need to lead healthy and productive lives.

    In view of this, a two-day seminar on the Fundamental and Sustainable Approaches to New Product Development in the Nigerian Food Processing Sector held in Lagos.

    It was attended by over 60 participants drawn from food processors of wheat flour, edible oil, sugar and salt across the country.

    The faculty was a select of industry leaders and experts in micronutrient fortification, research and development, digital marketing and manufacturing.

    The SAPFF Programme Manager, Ms. Ayodele Tella, said while food fortification alone cannot end malnutrition in Nigeria, it was critical to micronutrient deficiency prevention and control strategies, therefore, Techno Serve will continue to work with processors to increase consumers assess to fortified foods to enable them live healthier and happier lives.

    One of the collaborators of the project and Managing Director, BioAnalyt, Dr. Anna Zhenchuk, said her organisation was working with others in the fight against malnutrition through fortified foods.

    Participants described the training as very useful, rewarding and timely. One of them was Mr. Nyebuchi Nwodo, who represented New RIVOC Company Limited, Port Harcourt, makers of vegetable and palm kernel oil, among other products. He said the workshop would add tremendous value to his company. His words: “We fortify our vegetable oil with nutrients like Vitamin A and E3. Given the background the fortification of food and oil has in the larger society, especially the growing youths, these nutrients contribute tremendously to mental growth.”

    Nnenna Acholonu from Honeywell Flour Mill said the two-day workshop was quite resourceful. “Today we are looking at holistic margin management. I find it a very critical topic, which every business minded person needs to know,” she said.

    Other participants expressed their appreciation for the training and showed eagerness in putting their new-found knowledge into immediate use. The four-year, $10 million SAPFF project is funded by the Gates Foundation, and implemented by Techno Serve in collaboration with Partners in Food Solutions (PFS), the Global Alliance for Improved Nutrition (GAIN), and other non-profit and government partners.

  • Building entrepreneurial skills in students while on campus

    With funding and right training, students can become job creators while still on campus. They do not necessarily have wait to finish and end up as job seekers. This is what Federal College of Agriculture, Akure (FECA) is trying to achieve, DANIEL ESSIET reports.

    From running garri processing business to offering extension services, students at Federal College of Agriculture, Akure (FECA) are encouraged to launch fast growing agribusinesses.

    Besides extension services, the Provost, FECA, Dr  Samson Odedina, told reporters in Lagos that the institute has  trained the students on how to brand their products, whom to approach to get the correct market prices and funding and how to present and preserve their products to shield them from loses and poultry management aspects.

    Because of the value chain practical approach introduced into the curriculum, students undertaking classes did not have their minds entirely set for the lecture hall. Partly, they were thinking about their agribusinesses, which they run as side hustles within the campus.

    Through the business, they have been able to pay their bills. Their services include agribusiness development, consultancy and extension services in all fields of farming.

    Odedina said students need to utilise opportunities on campus to become job creators.

    For instance, he said the college created projects and ventures to equip students with business skills that they utilise when they leave college.

    According to him, the ventures are a great opportunity for students to develop business proposals and get grants, a skill many do not have.

    Whatever the amount of money the students make, he noted, that it belongs to them.

    Another opportunity provided the students, according to him, is to make good use of the experts at the college by seeking advice to sharpen their enterprise skills.

    He said the huge population at the college and Ondo State offers students a ready-made market for their products and services.

    Once they complete campus, the students leave to continue with their agribusinesses outside college, creating room for others.

    Odedina said he brought business orientation to agric education when he saw how disconnected students were to agriculture, how they were missing job opportunities, and how propaganda and misinformation were shaping their opinions.

    So he did something about it – he created a practical approach to help college students connect back to agriculture. And guess what? The class has had such a positive impact on its students.

    According to him, FECA, will continue its activities in stimulating youth to become successful agri-entrepreneurs through linking, learning and leadership activities.

  • Building palm oil value chain

    With a supply gap of about 500,000 metric tonnes (mt) and arable land for cultivation, the untapped potential of the Nigerian palm oil sector is large. Corporate giants are making efforts to increase their plantation area to meet their 2020 targets, DANIEL ESSIET reports.

    Palm oil is an important vegetable oil, which has many positive attributes. It is used as a key ingredient in both food and non-food products. A large number of companies producing consumer goods use palm oil and its derivatives. They include palm kernel oil, soaps, palm kernel cake (pk), fatty acid, distillates, palm stearin and crude palm oil, among others.

    The oil palm tree gives the highest yield per hectare of any vegetable oil and is the most efficient land-use vegetable oil crop.

    According to Nigerian Institute for Oil Palm Research (NIFOR), the gross value of the palm oil production at plantation level is between N180billion to N250billion annually.

    Palm oil production in Nigeria is 930,000 tonnes, significantly below  estimated consumption  of 1.4 million tonnes. A recent study from an independent research stated that an investment gap of N2 trillion is needed over the next 20 years for Nigeria to achieve self-sufficiency in oil palm production. Major challenges facing the industry include the use of unimproved seedlings, difficulty in acquiring land due to the land tenure system, inefficient milling methods with poor oil extraction rates and low levels of mechanisation.

    Others are ageing oil palm trees, uncertain land tenure systems, which affect land  allocation for cultivation, and productive inefficiencies, which lead to less competitive pricing. These combined challenges reduce the competitiveness of locally produced crude palm oil (CPO) and influence high prices compared to imported CPO even with the 35 per cent import tariff duty on imported CPO.

    Despite the challenges facing the palm oil sector, a range of investors, especially multinational compa-nies, have been attracted to the potential in the production and processing of oil palm and the largest players in the country are Presco, Okomu Oil and PZ-Wilmar.

    This rise in investment interest is driven by oil palm companies seeking suitable land for its cultivation. Most of them are involved in various aspects of the palm oil value chain: plantations, milling, refining, and distribution.

    Speaking with The Nation, Federation of Agricultural Commodities (FACAN) President, Dr Victor Iyama said oil palm is one of the most profitable commercial high-tree crops. This is because blended palm oil and palm kernel oil form an important share of the global vegetable oil market.  Its main use are as cooking oil and ingredient in domestic products such as  processed foods, detergents, cosmetics, among others.

    The oil palm industry’s expansion, according to him, will lead to positive benefits in generating fiscal earnings and regular income streams for a large number of large and small-scale growers involved in palm oil production.

    According to him, FACAN is interested in any partnership  that offers  Nigerians  from rural areas the opportunity to become oil palm farmers or plasma smallholders.

    The association, he added, is interested in a programme that will help it develop the land and teach skills needed to grow oil palm trees.

    Iyama said the nation needs to  start producing palm oil. According to him, Nigeria currently produces about 970,000 metric tons of CPO, while local consumption is estimated at 2.7 million tons per year, indicating an estimated demand-supply gap of over 1.7 million.

    Experts expect the country’s population to hit 450 million by 2050. This   will drive continued demand for palm oil and its derivatives.