The Nation Newspaper

Tag: incentives

  • Fed Govt to provide special incentives for sugar producers

    Fed Govt to provide special incentives for sugar producers

    The Federal Government has said that it would provide special incentives for investors in the sugar industry, especially those that have keyed into government’s Backward Integration Policy.

    The Minister of Industry, Trade and Investment, Mr. Olusegun Aganga, spoke during his tour of existing facilities of major sugar refineries in Lagos.

    The refineries are : Dangote Sugar Refinery, BUA Sugar Refinery and Golden Sugar Refinery.

    Aganga noted that the incentives would be similar to what was given to investors who had keyed into government’s Backward Integration Policy in the cement industry, adding that the move would help the country to achieve self sufficiency in sugar production for both domestic consumption and export.

    The minister said: “We are fully aware that the processes of optimising the whole value chain in terms of moving from sugarcane to sugar, take quite some time and require huge investment. That is why we have asked the operators of sugar refineries to provide us with their strategic and detailed action plans on backward integration in terms of what they want to do in 2013, 2014, 2015 and 2016. In addition, we want to see the practical demonstration of their commitment to the implementation of the policy.

    “So, based on their demonstration of commitment to those things in their backward integration plans as it relates to moving from sugar cane to sugar production, we will give them special incentives. This is similar to what we did during the implementation of the Backward Integration Policy in the cement sector until we got to the point where we saw a significant increase in local cement production and we tied importation to production to bridge gap between supply and demand.”

     

    “By so doing, local production increased and importation was reduced drastically. That was how were able to move from a country that was producing about two million metric tons of sugar to a country that has the capacity to produce 28.6 million metric tons of cement. It is the same principle and approach that we want to apply in the sugar sector.”

    Aganga said the development of the National Sugar Master Plan by the National Sugar Development Council, had opened the sector for fresh local and foreign investments, adding that the Ministry of Industry, Trade and Investment was committed to working together with the state governments and the private sector to ensure the successful implementation of the Backward Integration Policy in the sugar industry.

    Aganga went on: “The new sugar policy has opened up the sector for new investors to come in to invest in the sugarcane to sugar value chain .Currently, we have a number of interested investors from Brazil that are partnering with local investors and we already two new green fields in addition to other interested investors that are doing their feasibility studies. This shows that the implementation of our policy of Backward Integration in the sugar is gaining momentum, and is in the right direction.

    “Currently, Nigeria produces only about three per cent of our local demand but our objective is not only to achieve self-sufficiency in sugar production but to become a major exporter in the global market. But most importantly, I want to see more commitment of the part of Sugar companies in terms of aggressive implementation of our Backward Integration Policy for the sector which entails moving up in the entire value chain from sugarcane to sugar, production of ethanol and generation of power, among other things. We will do everything possible to assist them to succeed because they are very critical for job creation, revenue generation and economic diversification.

    The minister said the successful implementation of the Backward Integration Policy in the sugar industry would unlock the potentials of the sector in terms of job creation, and wealth generation, stressed that the Federal Government was committed to providing the enabling environment for the growth and development of the manufacturing sector in line with the Nigeria Industrial Revolution Plan.

    He said: “If we successfully implement our Backward Integration Programme, which is a very important component of the National Sugar Master Plan developed by the Ministry of Industry Trade and Investment , the sugar sector will be able to create more than 20 times the number of jobs they have already created. Today, an average sugar refinery employs about 1, 400 people but if the Backward Integration Policy is well implemented, they can employ an average of about 100,000 people.

    “This is what makes sugar sector different from other sectors of the economy. It is in recognition of the importance of the sector that the government has introduced the Backward Integration Policy for the sector. But for the policy to be successful, we all have t o work today as partners. Our job is to make sure that we create the enabling environment for them to do well through consistent manufacturing friendly policies.”

     

  • Surveyors seek incentives for housing

    THE Federal Government has been asked to fashion out policies and incentives that will encourage housing production to bridge the widening gap in the sector.

    Chairman, Nigeria Institution of Estate Surveyors &Valuers (NIESV), Lagos branch, Mr Shola  Fatoki, told The Nation that the govrnment should address infrastructure, such as roads, potable water and electricity to encourage developers and release up funds to build more houses.

    He canvassed a deliberate policy to encourage the use of local building materials, adding that most of the researched local building materials have been left on the shelf of the research institutes, unused by either the government or individuals.

    Also, the President of the body, Emeka Eleh, urged the government to address leakages in the sector to create employment in the sector.

    He noted that if players in the sector were encouraged by some policies the huge youth unemployment figure could be reduced as an average of 70 people is needed to build a three bedroom house.

     

     

     

     

     

  • NFF rules out financial incentives for Eaglets

    NFF rules out financial incentives for Eaglets

    General Secretary of the Nigeria Football Federation (NFF), Musa Amadu has waved off calls in some quarters that the national Under-17 football team, Golden Eaglets be financially motivated following their scintillating displays in the build-up to the Africa Junior Championship billed for Morocco in April.

    It has been the trend in Nigeria of rewarding sportsmen with financial incentives after making the country proud in any major competition. It is then believed that the Manu Garba led team would not be different following their impressive performance in the build-up matches to the Africa Junior Championship, which they have been tipped to come home victorious.

    After beating Diamond Zebras of Botswana 9-0 to complete an aggregate win of 12-0 over two international friendlies at the weekend, the Golden Eaglets remain unbeaten in 23 competitive and friendly matches. They have remarkably scored a total of 104 goals and conceded just a goal much to the satisfaction of the team’ officials in particular and Nigerians in general.

    Amodu believes the exposure and opportunity to play for Nigeria is enough motivation for the players.

    “Let’s take it one at a time, these are young boys, I don’t think the motivation is the money they are getting but the exposure they are getting. If they continue to do very well and excel at this level and when they go to higher level, of course the financial motivation will come.

    “I want to deemphasis monetary motivations for teams at this level, I’m not saying the coaches don’t deserve better but for clear we have seen that some other countries like Germany, England, Argentina, Mexico that are into U-17 don’t really give them anything, these are young lads and I don’t think we should inculcate in them financial motivation.

    “What should motivate them is patriotism to do Nigeria proud and also to make a name for themselves. There will be scouts all over Morocco and if they are able to play well I’m sure scouts out there will be interested to sign a contract with them,” he noted.

  • Fed Govt to provide incentives for steel producers

    Fed Govt to provide incentives for steel producers

    THE Federal Government has assured that it will do every thing possible to assist in steel production in the country.

    The Minister of Mines and Steel Development, Mohammed Musa Sada, who gave the assurance during a visit to Western Metal Products Company Limited (WEMPCO) in Lagos over the weekend, said the government believes that steel is the backbone of industrialisation.

    “Government is passionate about what is happening in WEMPCO because we believe that steel is the backbone of industrialisation anywhere. There is no country that industrialises without using steel. That is why we are not leaving anything to chance that is available to us to participate in the production of steel products. It is something that we have to support and encourage for the interest of the economy and the country, “ he said.

    Sada said the 700,000 metric tonnes projected steel output from WEMPCO, would go a long way to meeting the government’s target of three million metric tonnes steel output for the country.

    He said products from the company would find use in the auto mobile and truck-body building sector, roofing sheets, pipes, as well as all kinds of metal containers for food storage.

    The Minister said steel furniture, enamelware, electric appliances and input for motor cycles are some of the products to be obtained from the WEMPCO plant.

    He described the WEMPCO plant as part of a comprehensive effort to actualise the country’s industrialisation effort, adding that the production of flat sheets is central to attaining an appreciable level of growth and development.

    On the nature of assistance for the sector, he said the government would provide “an enabling and appropriate environment for the private sector to function.”

    He said the government’s support for the sector is segmented and that “the government has introduced sector specific incentives.”

    He explained that machinery for the mining industry are brought in duty free. He said there are other areas the government is supporting the private sector initiatives. He listed these as tax holidays, waivers and capital gain tax, adding that the government was relaxing the rules to encourage the private sector.

    Musa said the biggest incentive to drive development in the steel industry is for the government to partner with the operators in setting up rules for the sector.

    The Group Managing Director, WEMPCO, Lewis S.N.Tung, who conducted the the Minister round the factory, said the steel plant was built with the strictest adherence to safety in mind, adding that there is full complement of water treatment plant, air and other waste products.

    He said the plant’s design eliminates human contact with machines in the production process, thus eliminating the possibility of work place accidents.